Florida Senate - 2016 COMMITTEE AMENDMENT Bill No. PCS (899852) for CS for SB 1170 Ì880026ÆÎ880026 LEGISLATIVE ACTION Senate . House Comm: RCS . 02/25/2016 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Appropriations (Richter) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Before line 69 4 insert: 5 Section 1. Paragraph (a) of subsection (2) of section 6 112.08, Florida Statutes, is amended to read: 7 112.08 Group insurance for public officers, employees, and 8 certain volunteers; physical examinations.— 9 (2)(a) Notwithstanding any general law or special act to 10 the contrary, every local governmental unit is authorized to 11 provide and pay out of its available funds for all or part of 12 the premium for life, health, accident, hospitalization, legal 13 expense, or annuity insurance, or all or any kinds of such 14 insurance, for the officers and employees of the local 15 governmental unit and for health, accident, hospitalization, and 16 legal expense insurance for the dependents of such officers and 17 employees upon a group insurance plan and, to that end, to enter 18 into contracts with insurance companies or professional 19 administrators to provide such insurance or with a corporation 20 not for profit whose membership consists entirely of local 21 governmental units authorized to enter into risk management 22 consortiums under this subsection. Before entering any contract 23 for insurance, the local governmental unit shall advertise for 24 competitive bids; and such contract shall be let upon the basis 25 of such bids. If a contracting health insurance provider becomes 26 financially impaired as determined by the Office of Insurance 27 Regulation of the Financial Services Commission or otherwise 28 fails or refuses to provide the contracted-for coverage or 29 coverages, the local government may purchase insurance, enter 30 into risk management programs, or contract with third-party 31 administrators and may make such acquisitions by advertising for 32 competitive bids or by direct negotiations and contract. The 33 local governmental unit may undertake simultaneous negotiations 34 with those companies which have submitted reasonable and timely 35 bids and are found by the local governmental unit to be fully 36 qualified and capable of meeting all servicing requirements. 37 Each local governmental unit may self-insure any plan for 38 health, accident, and hospitalization coverage or enter into a 39 risk management consortium to provide such coverage, subject to 40 approval based on actuarial soundness by the Office of Insurance 41 Regulation; and each shall contract with an insurance company or 42 professional administrator qualified and approved by the office 43 or with a corporation not for profit whose membership consists 44 entirely of local governmental units authorized to enter into a 45 risk management consortium under this subsection to administer 46 such a plan. 47 Between lines 118 and 119 48 insert: 49 Section 5. Paragraph (t) is added to subsection (1) of 50 section 626.88, Florida Statutes, to read: 51 626.88 Definitions.—For the purposes of this part, the 52 term: 53 (1) “Administrator” is any person who directly or 54 indirectly solicits or effects coverage of, collects charges or 55 premiums from, or adjusts or settles claims on residents of this 56 state in connection with authorized commercial self-insurance 57 funds or with insured or self-insured programs which provide 58 life or health insurance coverage or coverage of any other 59 expenses described in s. 624.33(1) or any person who, through a 60 health care risk contract as defined in s. 641.234 with an 61 insurer or health maintenance organization, provides billing and 62 collection services to health insurers and health maintenance 63 organizations on behalf of health care providers, other than any 64 of the following persons: 65 (t) A corporation not for profit whose membership consists 66 entirely of local governmental units authorized to enter into 67 risk management consortiums under s. 112.08. 68 69 A person who provides billing and collection services to health 70 insurers and health maintenance organizations on behalf of 71 health care providers shall comply with the provisions of ss. 72 627.6131, 641.3155, and 641.51(4). 73 74 ================= T I T L E A M E N D M E N T ================ 75 And the title is amended as follows: 76 Delete lines 3 - 8 77 and insert: 78 administration; amending s. 112.08, F.S.; authorizing 79 local governmental units to contract for certain group 80 insurance with a corporation not for profit whose 81 membership consists of specified local governmental 82 units; adding such a corporation not for profit as an 83 alternative entity that a local governmental unit must 84 contract with to administer certain insurance plans; 85 amending s. 408.909, F.S.; redefining the terms 86 “health care coverage” and “health flex plan 87 coverage”; amending s. 409.817, F.S.; deleting a 88 provision authorizing group insurance plans to impose 89 a certain preexisting condition exclusion; amending s. 90 624.123, F.S.; conforming a cross-reference; amending 91 s. 626.88, F.S.; revising the definition of the term 92 “administrator”; amending