Florida Senate - 2011                                    SB 1600
       By Senator Rich
       34-01108A-11                                          20111600__
    1                        A bill to be entitled                      
    2         An act relating to health insurance; providing a short
    3         title; providing a definition; authorizing an employee
    4         of a corporation that employs a specified number of
    5         employees to participate in the state group health
    6         insurance plan; providing conditions for eligibility
    7         to participate in the state group health insurance
    8         plan; authorizing a state resident to participate in
    9         the state group health insurance plan under certain
   10         conditions; requiring certain premium payments to be
   11         made electronically; requiring a corporation to apply
   12         for participation in the state group health insurance
   13         plan; requiring a corporation to agree to specified
   14         terms and conditions before participating in the plan;
   15         providing for open enrollment in the state group
   16         health insurance plan for eligible corporate employees
   17         and state residents; providing a corporate income tax
   18         credit to corporations participating in the plan for a
   19         specified percentage of contributions made towards
   20         employee premiums; limiting the total amount of tax
   21         credits available to all eligible corporations to a
   22         specified amount; authorizing the Department of
   23         Management Services to adopt rules for the
   24         implementation and administration of the act;
   25         authorizing the Department of Revenue to adopt rules
   26         for implementing the act and allocating tax credits;
   27         creating s. 625.083, F.S.; requiring financial reports
   28         of certain health insurers to be reported on a
   29         combined corporate basis; providing an effective date.
   31  Be It Enacted by the Legislature of the State of Florida:
   33         Section 1. Short title.—Sections 2 through 7 of this act
   34  may be cited as the “Middle Class and Small Business Free to
   35  Choose Act.”
   36         Section 2. Eligibility to participate in the state group
   37  health insurance plan.—
   38         (1) For purposes of this section, the term “total premium
   39  cost of the plan” means the sum of the state’s contribution
   40  towards the premium for a state employee’s participation in a
   41  state group health insurance plan and the state employee’s
   42  premium payment for participation in the plan.
   43         (2) An employee of any business employing fewer than 25
   44  employees that is duly incorporated under the laws of this state
   45  is eligible to participate in the state group health insurance
   46  plan as defined in s. 110.123, Florida Statues, under the
   47  following conditions:
   48         (a) The corporation employing the employee must pay at
   49  least the same contribution towards the premium for each
   50  employee who enrolls in the plan as the state pays towards the
   51  premium for a state employee who enrolls in the same plan.
   52         (b) Each employee of the corporation who enrolls in the
   53  plan must pay the difference between the corporation’s
   54  contribution to the plan and the total premium cost of the plan.
   55         (c) An employee of the corporation may enroll only in a
   56  plan available to a state employee employed in the same
   57  locality.
   58         (3) Any state resident is eligible to participate in the
   59  state group health insurance plan as defined in s. 110.123,
   60  Florida Statutes, and may enroll in any plan available to a
   61  state employee residing in the same locality if such state
   62  resident agrees to pay the total premium cost of the plan.
   63         (4) All corporate contributions towards a premium and all
   64  payments for the cost of a premium made by a corporate employee
   65  or state resident enrolling in a state group health insurance
   66  plan must be remitted electronically to the Department of
   67  Management Services.
   68         Section 3. Participation by a corporation in the state
   69  group health insurance plan.—
   70         (1) The board of directors of a corporation eligible for
   71  participation in the state group health insurance plan under
   72  section 2 may apply for participation in the plan by submitting
   73  an application to the Department of Management Services.
   74         (2) If the Department of Management Services determines
   75  that the corporation is eligible to participate in the state
   76  group health insurance plan, the corporation must agree to the
   77  following terms and conditions:
   78         (a) The minimum enrollment or contractual period is 3
   79  years.
   80         (b) Termination of participation in the plan by the
   81  corporation requires written notice 1 year before the
   82  termination date.
   83         (c) If participation in the plan is terminated, the
   84  corporation may not reapply for participation in the plan for a
   85  period of at least 2 years.
   86         (d) The corporation must reimburse the state for 100
   87  percent of the state’s costs, including administrative costs.
   88         (e) The corporation must furnish the Department of
   89  Management Services with any information requested by the
   90  department which the department considers necessary to
   91  administer the state group health insurance plan for the
   92  employees of the corporation.
   93         Section 4. Open enrollment period for eligible corporate
   94  employees and state residents.—On or before January 1, 2012, the
   95  Department of Management Services must provide for an open
   96  enrollment period of not less than 45 days for eligible
   97  corporate employees or state residents who want to obtain the
   98  health insurance coverage provided under this act. The options
   99  offered during the open enrollment period must provide the same
  100  health insurance coverage as the coverage provided for active
  101  state employees under the premium payment conditions specified
  102  in section 2.
  103         Section 5. The Department of Management Services may adopt
  104  rules for the implementation and administration of this act.
  105         Section 6. Tax credit for corporate contributions towards
  106  employee health insurance premiums.—
  107         (1) A corporation whose employees are eligible to
  108  participate in the state group health insurance plan under this
  109  act is eligible for a credit against the corporate income tax
  110  imposed under chapter 220, Florida Statutes, in an amount equal
  111  to 50 percent of the total amount contributed in the calendar
  112  year towards payment of premiums for its employees who are
  113  enrolled in a state group health insurance plan.
  114         (2) The combined total amount of tax credits that may be
  115  granted and approved for all eligible corporations under this
  116  section during any calendar year is $250 million. Applications
  117  must be filed with the Department of Revenue for contributions
  118  made in the preceding calendar year, and credits must be granted
  119  in the order in which completed applications are received. If
  120  the combined total amount of available credits is exceeded in
  121  any calendar year, credits otherwise available under this
  122  section may be taken by a corporation only if the corporation’s
  123  application has already been granted and approved.
  124         Section 7. The Department of Revenue may adopt rules for
  125  the purpose of implementing this act and allocating the tax
  126  credits provided in this act to corporations contributing
  127  towards the cost of their employees’ health insurance premiums.
  128         Section 8. Section 625.083, Florida Statutes, is created to
  129  read:
  130         625.083 Financial reports; health insurers.—A financial
  131  report of any health insurer who is required to file such report
  132  under the insurance code, including any financial report filed
  133  for the purpose of determining the financial condition of the
  134  health insurer, must report the health insurer’s finances on a
  135  combined corporate basis that includes any and all subsidiaries
  136  of the health insurer.
  137         Section 9. This act shall take effect July 1, 2011.