HB 1101

A bill to be entitled
2An act relating to health insurance; providing a short
3title; providing a definition; authorizing an employee of
4a corporation that employs a specified number of employees
5to participate in the state group health insurance plan;
6providing conditions for eligibility to participate in the
7state group health insurance plan; authorizing a state
8resident to participate in the state group health
9insurance plan under certain conditions; requiring certain
10premium payments to be made electronically; requiring a
11corporation to apply for participation in the state group
12health insurance plan; requiring a corporation to agree to
13specified terms and conditions before participating in the
14plan; providing for open enrollment in the state group
15health insurance plan for eligible corporate employees and
16state residents; providing a corporate income tax credit
17to corporations participating in the plan for a specified
18percentage of contributions made towards employee
19premiums; limiting the total amount of tax credits
20available to all eligible corporations to a specified
21amount; authorizing the Department of Management Services
22to adopt rules for the implementation and administration
23of the act; authorizing the Department of Revenue to adopt
24rules for implementing the act and allocating tax credits;
25creating s. 625.083, F.S.; requiring financial reports of
26certain health insurers to be reported on a combined
27corporate basis; providing an effective date.
29Be It Enacted by the Legislature of the State of Florida:
31     Section 1.  Short title.-Sections 2 through 7 of this act
32may be cited as the "Middle Class and Small Business Free to
33Choose Act."
34     Section 2.  Eligibility to participate in the state group
35health insurance plan.-
36     (1)  For purposes of this section, the term "total premium
37cost of the plan" means the sum of the state's contribution
38towards the premium for a state employee's participation in a
39state group health insurance plan and the state employee's
40premium payment for participation in the plan.
41     (2)  An employee of any business employing fewer than 25
42employees that is duly incorporated under the laws of this state
43is eligible to participate in the state group health insurance
44plan as defined in s. 110.123, Florida Statues, under the
45following conditions:
46     (a)  The corporation employing the employee must pay at
47least the same contribution towards the premium for each
48employee who enrolls in the plan as the state pays towards the
49premium for a state employee who enrolls in the same plan.
50     (b)  Each employee of the corporation who enrolls in the
51plan must pay the difference between the corporation's
52contribution to the plan and the total premium cost of the plan.
53     (c)  An employee of the corporation may enroll only in a
54plan available to a state employee employed in the same
56     (3)  Any state resident is eligible to participate in the
57state group health insurance plan as defined in s. 110.123,
58Florida Statutes, and may enroll in any plan available to a
59state employee residing in the same locality if such state
60resident agrees to pay the total premium cost of the plan.
61     (4)  All corporate contributions towards a premium and all
62payments for the cost of a premium made by a corporate employee
63or state resident enrolling in a state group health insurance
64plan must be remitted electronically to the Department of
65Management Services.
66     Section 3.  Participation by a corporation in the state
67group health insurance plan.-
68     (1)  The board of directors of a corporation eligible for
69participation in the state group health insurance plan under
70section 2 may apply for participation in the plan by submitting
71an application to the Department of Management Services.
72     (2)  If the Department of Management Services determines
73that the corporation is eligible to participate in the state
74group health insurance plan, the corporation must agree to the
75following terms and conditions:
76     (a)  The minimum enrollment or contractual period is 3
78     (b)  Termination of participation in the plan by the
79corporation requires written notice 1 year before the
80termination date.
81     (c)  If participation in the plan is terminated, the
82corporation may not reapply for participation in the plan for a
83period of at least 2 years.
84     (d)  The corporation must reimburse the state for 100
85percent of the state's costs, including administrative costs.
86     (e)  The corporation must furnish the Department of
87Management Services with any information requested by the
88department which the department considers necessary to
89administer the state group health insurance plan for the
90employees of the corporation.
91     Section 4.  Open enrollment period for eligible corporate
92employees and state residents.-On or before January 1, 2012, the
93Department of Management Services must provide for an open
94enrollment period of not less than 45 days for eligible
95corporate employees or state residents who want to obtain the
96health insurance coverage provided under this act. The options
97offered during the open enrollment period must provide the same
98health insurance coverage as the coverage provided for active
99state employees under the premium payment conditions specified
100in section 2.
101     Section 5.  The Department of Management Services may adopt
102rules for the implementation and administration of this act.
103     Section 6.  Tax credit for corporate contributions towards
104employee health insurance premiums.-
105     (1)  A corporation whose employees are eligible to
106participate in the state group health insurance plan under this
107act is eligible for a credit against the corporate income tax
108imposed under chapter 220, Florida Statutes, in an amount equal
109to 50 percent of the total amount contributed in the calendar
110year towards payment of premiums for its employees who are
111enrolled in a state group health insurance plan.
112     (2)  The combined total amount of tax credits that may be
113granted and approved for all eligible corporations under this
114section during any calendar year is $250 million. Applications
115must be filed with the Department of Revenue for contributions
116made in the preceding calendar year, and credits must be granted
117in the order in which completed applications are received. If
118the combined total amount of available credits is exceeded in
119any calendar year, credits otherwise available under this
120section may be taken by a corporation only if the corporation's
121application has already been granted and approved.
122     Section 7.  The Department of Revenue may adopt rules for
123the purpose of implementing this act and allocating the tax
124credits provided in this act to corporations contributing
125towards the cost of their employees' health insurance premiums.
126     Section 8.  Section 625.083, Florida Statutes, is created
127to read:
128     625.083  Financial reports; health insurers.-A financial
129report of any health insurer who is required to file such report
130under the insurance code, including any financial report filed
131for the purpose of determining the financial condition of the
132health insurer, must report the health insurer's finances on a
133combined corporate basis that includes any and all subsidiaries
134of the health insurer.
135     Section 9.  This act shall take effect July 1, 2011.

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