(LATE FILED)Amendment
Bill No. 0805
Amendment No. 199665
CHAMBER ACTION
Senate House
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1Representative(s) Garcia offered the following:
2
3     Amendment (with title amendment)
4     Between lines 116 and 117, insert:
5     Section 4.  Paragraph (i) of subsection (2) of section
6636.204, Florida Statutes, is amended to read:
7     636.204  License required.--
8     (2)  An application for a license to operate as a discount
9medical plan organization must be filed with the office on a
10form prescribed by the commission. Such application must be
11sworn to by an officer or authorized representative of the
12applicant and be accompanied by the following, if applicable:
13     (i)  A copy of the applicant's most recent financial
14statements audited by an independent certified public
15accountant. An applicant that is a subsidiary of a parent entity
16that is publicly traded and that prepares audited financial
17statements reflecting the consolidated operations of the parent
18entity and the subsidiary may submit petition the office to
19accept, in lieu of the audited financial statement of the
20applicant, the audited financial statement of the parent entity
21and a written guaranty by the parent entity that the minimum
22capital requirements of the applicant required by this part will
23be met by the parent entity.
24     Section 5.  Subsection (1) of section 636.206, Florida
25Statutes, is amended to read:
26     636.206  Examinations and investigations.--
27     (1)  The office may examine or investigate the business and
28affairs of any discount medical plan organization if the
29commissioner has reason to believe that the discount medical
30plan organization is not complying with the requirements of this
31act. The office may order any discount medical plan organization
32or applicant to produce any records, books, files, advertising
33and solicitation materials, or other information and may take
34statements under oath to determine whether the discount medical
35plan organization or applicant is in violation of the law or is
36acting contrary to the public interest. The expenses incurred in
37conducting any examination or investigation must be paid by the
38discount medical plan organization or applicant. Examinations
39and investigations must be conducted as provided in chapter 624.
40     Section 6.  Subsection (1) of section 636.210, Florida
41Statutes, is amended to read:
42     636.210  Prohibited activities of a discount medical plan
43organization.--
44     (1)  A discount medical plan organization may not:
45     (a)  Use in its advertisements, marketing material,
46brochures, and discount cards the term "insurance" except as
47otherwise provided in this part or as a disclaimer of any
48relationship between discount medical plan organization benefits
49and insurance;
50     (b)  Use in its advertisements, marketing material,
51brochures, and discount cards the terms "health plan,"
52"coverage," "copay," "copayments," "preexisting conditions,"
53"guaranteed issue," "premium," "PPO," "preferred provider
54organization," or other terms in a manner that could reasonably
55mislead a person into believing the discount medical plan was
56health insurance;
57     (c)  Have restrictions on free access to plan providers,
58except for hospital services, including, but not limited to,
59waiting periods and notification periods; or
60     (d)  Pay providers any fees for medical services.
61     Section 7.  Subsections (1), (3), and (4) of section
62636.216, Florida Statutes, are amended to read:
63     636.216  Charge or form filings.--
64     (1)  All charges to members must be filed with the office.
65and Any charge to members greater than $30 per month or $360 per
66year for access to healthcare services, other than those
67provided by physicians licensed under chapter 458 or chapter 459
68or by hospitals licensed under chapter 395, must be approved by
69the office before the charges can be used. Any charge to members
70greater than $60 dollars per month or $720 per year for
71healthcare services that include services provided by physicians
72licensed under chapters 458 and 459 or by hospitals licensed
73under chapter 395 must be approved by the office before the
74charges can be used. The discount medical plan organization has
75the burden of proof that the charges bear a reasonable relation
76to the benefits received by the member.
77     (3)  All forms used, including the written agreement
78pursuant to subsection (2), must first be filed with and
79approved by the office. Every form filed shall be identified by
80a unique form number placed in the lower left corner of each
81form.
82     (4)  A charge or form is considered approved on the 60th
83day after its date of filing unless it has been previously
84disapproved by the office. The office shall disapprove any form
85that does not meet the requirements of this part or that is
86unreasonable, discriminatory, misleading, or unfair. If such
87filing is filings are disapproved, the office shall notify the
88discount medical plan organization and shall specify in the
89notice the reasons for disapproval.
90     Section 8.  Subsection (2) of section 636.218, Florida
91Statutes, is amended to read:
92     636.218  Annual reports.--
93     (2)  Such reports must be on forms prescribed by the
94commission and must include:
95     (a)  Audited financial statements prepared in accordance
96with generally accepted accounting principles certified by an
97independent certified public accountant, including the
98organization's balance sheet, income statement, and statement of
99changes in cash flow for the preceding year. An organization
100that is a subsidiary of a parent entity that is publicly traded
101and that prepares audited financial statements reflecting the
102consolidated operations of the parent entity and the
103organization may petition the office to accept, in lieu of the
104audited financial statement of the organization, the audited
105financial statement of the parent entity and a written guaranty
106by the parent entity that the minimum capital requirements of
107the organization required by this part will be met by the parent
108entity.
109     (a)(b)  If different from the initial application or the
110last annual report, a list of the names and residence addresses
111of all persons responsible for the conduct of the organization's
112affairs, together with a disclosure of the extent and nature of
113any contracts or arrangements between such persons and the
114discount medical plan organization, including any possible
115conflicts of interest.
116     (b)(c)  The number of discount medical plan members in the
117state.
118     (c)(d)  Such other information relating to the performance
119of the discount medical plan organization as is reasonably
120required by the commission or office.
121     Section 9.  Subsection (1) of section 636.220, Florida
122Statutes, is amended to read:
123     636.220  Minimum capital requirements.--
124     (1)  Each discount medical plan organization must at all
125times maintain a net worth of at least $150,000 and each
126discount medical plan organization shall certify in writing
127under oath at licensure and annually that the minimum
128capitalization requirements of this part are satisfied.
129     Section 10.  Section 636.232, Florida Statutes, is amended
130to read:
131     636.232  Rules.--The commission may adopt rules to
132administer this part, including rules for the licensing of
133discount medical plan organizations; establishing standards for
134evaluating forms, advertisements, marketing materials,
135brochures, and discount cards; providing for the collection of
136data; relating to disclosures to plan members; and defining
137terms used in this part.
138     Section 11.  Section 636.230, Florida Statutes, is
139repealed.
140
141======= T I T L E  A M E N D M E N T =======
142     Remove line(s) 15 and insert:
143under group health insurance policies; amending s. 636.204,
144F.S.; revising a license application provision for discount
145medical plan organizations; amending s. 636.206, F.S.; revising
146examination and investigative authority; amending s. 636.210,
147F.S.; providing an exception to prohibited activities; amending
148s. 636.216, F.S.; providing exception to review of certain
149charges to members of the plan; amending s. 636.218, F.S.;
150removing certain information from the annual report; amending s.
151636.220, F.S.; revising certain minimum capital requirements of
152discount medical plan organizations; amending s. 636.232, F.S.;
153revising commission rulemaking authority; repealing s. 636.230,
154F.S., relating to the bundling of discount medical plans with
155other products; amending s. 641.31,


CODING: Words stricken are deletions; words underlined are additions.