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. 30 31 Be It Enacted by the Legislature of the State of Florida: 32 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.