2017 Florida Statutes
Plan of operation.
Plan of operation.
631.820 Plan of operation.—
(1) The plan shall submit to the office a proposed plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the plan. The proposed plan of operation and any amendments thereto shall become effective upon approval in writing by the office.
(2) All member HMOs shall comply with the approved plan of operation.
(3) The plan of operation shall, in addition to requirements enumerated elsewhere in this part:
(a) Establish procedures for handling the assets of the plan.
(b) Establish the amount and method of reimbursing members of the board of directors.
(c) Establish regular places and times for meetings of the board of directors.
(d) Establish procedures for keeping records of all financial transactions of the plan, its agents, and the board of directors.
(e) Establish procedures whereby selections for the board of directors shall be made and submitted to the department.
(f) Establish any additional procedures for assessments under this part.
(g) Contain additional provisions necessary or proper for the execution of the powers and duties of the plan.
(4)(a) The plan of operation may provide that any or all powers and duties of the plan, except those under ss. 631.818(6)(b) and (c) and 631.819, are delegated to an administrator which may be a corporation, association, or other organization which performs or will perform functions similar to those of this plan, or its equivalent.
(b) The board may select an administrator through a competitive bidding process to administer the plan. The board shall evaluate bids submitted under this subsection based on criteria established by the board, which criteria shall include:
1. The administrator’s proven ability to manage large group health insurance plans and HMOs.
2. The efficiency of the administrator’s claims-paying procedures.
3. An estimate of total charges for administering the plan.
4. Any other reasonable factors as set by the board.
(c) The administrator shall be reimbursed for any payments made on behalf of the plan and shall be paid for its performance of any function of the plan.
(d) A delegation under this subsection shall take effect only with the approval of both the board of directors and the office and may be made only to an administrator which extends protection not substantially less favorable and effective than that provided by this part.
History.—ss. 1, 23, ch. 88-388; ss. 108, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 1367, ch. 2003-261.