Senate Bill sb2474

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    Florida Senate - 2007                                  SB 2474

    By Senator Peaden





    2-680A-07

  1                      A bill to be entitled

  2         An act relating to discount medical plans;

  3         amending s. 636.202, F.S.; redefining the term

  4         "discount medical plan"; amending s. 636.208,

  5         F.S.; requiring that a member who cancels his

  6         or her membership within a specified time after

  7         receiving the membership card receive

  8         reimbursement of periodic charges; amending s.

  9         636.216, F.S.; requiring the discount medical

10         plan organization to file with the Office of

11         Insurance Regulation certain yearly or monthly

12         charges if the plan includes services provided

13         by a licensed physician or other specified

14         services; amending s. 636.230, F.S.; requiring

15         the office to approve bundled plans that

16         include a discount medical plan and an

17         insurance product marketed and sold together

18         only if both plans are in compliance with state

19         law; amending s. 636.244, F.S.; prohibiting a

20         person from transacting the business of a

21         discount medical plan organization without

22         complying with applicable statutory provisions;

23         creating s. 636.246, F.S.; requiring the office

24         to appoint an existing employee as the contact

25         person to report potentially unlawful

26         activities of discount medical plan

27         organizations and to maintain information

28         regarding the status of any investigations;

29         providing an effective date.

30  

31  Be It Enacted by the Legislature of the State of Florida:

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    Florida Senate - 2007                                  SB 2474
    2-680A-07




 1         Section 1.  Subsection (1) of section 636.202, Florida

 2  Statutes, is amended to read:

 3         636.202  Definitions.--As used in this part, the term:

 4         (1)  "Discount medical plan" means a business

 5  arrangement or contract in which a person, in exchange for

 6  fees, dues, charges, or other consideration, provides access

 7  for plan members to providers of medical services and the

 8  right to receive medical services from those providers at a

 9  discount. The term "discount medical plan" does not include

10  any product regulated under chapter 627, chapter 641, or part

11  I of this chapter or a plan that does not charge the members a

12  periodic charge to use the plan's discount medical card.

13         Section 2.  Subsection (2) of section 636.208, Florida

14  Statutes, is amended to read:

15         636.208  Fees; charges; reimbursement.--

16         (2)  If the member cancels his or her membership in the

17  discount medical plan organization within the first 30 days

18  after he or she receives the membership card the effective

19  date of enrollment in the plan, the member shall receive a

20  reimbursement of all periodic charges upon return of the

21  discount card to the discount medical plan organization.

22         Section 3.  Subsection (1) of section 636.216, Florida

23  Statutes, is amended to read:

24         636.216  Charge or form filings.--

25         (1)  All charges to members must be filed with the

26  office and any charge to members greater than $30 per month or

27  $360 per year must be approved by the office before the

28  charges can be used, unless the plan includes physician

29  services provided by a physician licensed under chapter 458 or

30  chapter 459, dental services, vision services, chiropractic

31  services, and podiatric services, but does not include

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    Florida Senate - 2007                                  SB 2474
    2-680A-07




 1  hospital services as described in s. 636.202(4), in which case

 2  charges greater than $60 per month or $720 per year must be

 3  approved by the office before such charges can be used. The

 4  discount medical plan organization has the burden of proof

 5  that the charges bear a reasonable relation to the benefits

 6  received by the member. Charges by discount medical plan

 7  organizations to marketers that provide a discount medical

 8  plan to members at no charge are not required to be filed with

 9  the office.

10         Section 4.  Section 636.230, Florida Statutes, is

11  amended to read:

12         636.230  Bundling discount medical plans with other

13  products.--When a marketer or discount medical plan

14  organization sells a discount medical plan together with any

15  insurance other product, the fees for the discount medical

16  plan must be provided in writing to the member if the total

17  monthly charges for the combined product fees exceed the

18  limits of $30 and $60 as set forth in s. 636.216(1). The

19  office shall approve bundled plans that include a discount

20  medical plan and an insurance product marketed and sold

21  together and use a unified set of marketing and fulfillment

22  materials only if both plans are in compliance with state law.

23         Section 5.  Section 636.244, Florida Statutes, is

24  amended to read:

25         636.244  Unlicensed discount medical plan

26  organizations.--

27         (1)  The provisions of ss. 626.901-626.912 apply to the

28  activities of an unlicensed discount medical plan organization

29  as if the unlicensed discount medical plan organization were

30  an unauthorized insurer.

31  

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    Florida Senate - 2007                                  SB 2474
    2-680A-07




 1         (2)  A person may not transact the business of a

 2  discount medical plan organization in this state without

 3  complying with the applicable provisions of this part.

 4         Section 6.  Section 636.246, Florida Statutes, is

 5  created to read:

 6         636.246  Office of Insurance Regulation appointee for

 7  reporting illegal discount medical plan.--The office shall

 8  appoint an existing employee as the contact person to report

 9  potentially unlawful activities of a discount medical plan

10  organization or its marketers, and that person shall maintain

11  information regarding the status of any investigations.

12         Section 7.  This act shall take effect July 1, 2007.

13  

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15                          SENATE SUMMARY

16    Provides that a member of a discount medical plan who
      cancels his or her membership within 30 days after
17    receiving the membership card shall receive a
      reimbursement of all periodic charges upon return of the
18    card. Requires the discount medical plan organization to
      file certain charges with the Office of Insurance
19    Regulation if the plan meets specified criteria. Provides
      that the office may approve bundled plans that include a
20    discount medical plan and an insurance product marketed
      and sold together only if both plans are in compliance
21    with state law. Provides that a person may not transact
      the business of a discount medical plan organization
22    without complying with applicable statutory provisions.
      Requires the office to appoint an existing employee as
23    the contact person to report potentially unlawful
      activities of discount medical plan organizations and to
24    maintain information regarding the status of any
      investigations.
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