The Florida Senate

408.01  Voluntary private health insurance coverage and insurance cost containment.--

(1)  The agency shall promote the availability and affordability of health insurance for employers and their employees through pooled health care purchasing arrangements, pooled insuring arrangements for small-sized employers, and other reforms, such as managed care, that aid employers in offering health insurance coverage to their employees. The agency shall submit proposed legislation and resource requirements to the Governor and the Legislature by December 31, 1992, to fully implement this section.

(2)  For the period of July 1, 1992, through December 31, 1994, a voluntary private health insurance coverage program shall encourage each employer to offer basic health insurance to its employees and their dependents. The agency shall establish, by rule, annual health insurance coverage targets, including targets relative to the percentage of employees and their dependents covered and percentage of employers offering coverage by firm size and industry sector.

(3)  From July 1, 1992, through December 31, 1994, a voluntary cost containment program shall encourage employers, insurers, providers, and consumers to substantially reduce the rate of health care cost inflation. This program includes using voluntary price controls, reduced administrative overhead, volume discounting, and other measures to reduce the cost of health care. The agency shall establish, by rule, annual cost containment targets which will provide a benchmark against which participants in the voluntary plan can measure the effectiveness of their specific efforts.

(4)  If voluntary targets are not met, substantially increasing the health insurance coverage of employees and their dependents and reducing the rate of health care costs, the agency may impose other strategies to ensure access to health care that have been approved by the Legislature.

(5)  In order to promote the development of employer-based health insurance options, the agency shall:

(a)  Identify and evaluate incentives, including tax credits, to encourage employers to voluntarily purchase health insurance, join a multiple employer trust, or contribute to a state pool that purchases a private basic benefit health insurance plan for employees.

(b)  Identify and evaluate potential cost containment and quality measures, such as prevention, education, utilization review, and practice parameters.

(c)  Identify and evaluate incentives to stimulate private health insurance companies to seek out employers for the purpose of providing them with affordable basic benefit coverage.

(6)  Prior to the 1993 Regular Session of the Legislature, the agency shall submit to the Legislature the information enumerated in subsection (5) and such other information as may be necessary for the state to provide incentives, including tax incentives, for the purpose of encouraging employers to purchase health insurance, join a multiple health insurance trust, or contribute to a state pool to purchase health insurance for their employees.

(7)  The agency shall establish an advisory council of employers, providers, insurers, and consumers to aid in establishing the voluntary private health insurance coverage and cost containment program and to consider administrative and legislative reforms that will assist the private sector in meeting coverage and cost containment targets.

History.--s. 66, ch. 92-33.