Florida Senate - 2013                                    SB 1842
       
       
       
       By the Committee on Banking and Insurance
       
       
       
       
       597-03435-13                                          20131842__
    1                        A bill to be entitled                      
    2         An act relating to health insurance; creating s.
    3         624.25, F.S.; providing that a provision of the
    4         Florida Insurance Code applies unless it conflicts
    5         with a provision of the Patient Protection and
    6         Affordable Care Act (PPACA); creating s. 624.26, F.S.;
    7         authorizing the Office of Insurance Regulation to
    8         review forms and conduct market conduct examinations
    9         for compliance with PPACA and to report potential
   10         violations to the federal Department of Health and
   11         Human Services; authorizing the Division of Consumer
   12         Services of the Department of Financial Services to
   13         respond to complaints related to PPACA and to report
   14         violations to the office and the Department of Health
   15         and Human Services; providing that certain
   16         determinations by the office or the Department of
   17         Financial Services are not subject to certain
   18         challenges under ch. 120, F.S.; amending ss. 624.34,
   19         626.022, and 626.207, F.S.; conforming provisions to
   20         changes made by this act with respect to the licensure
   21         of navigators under the Florida Insurance Code;
   22         providing a directive to the Division of Law Revision
   23         and Information; creating s. 626.995, F.S.; providing
   24         for the licensure of navigators; providing
   25         definitions; providing license requirements and
   26         qualifications; specifying licensure conduct;
   27         providing for disciplinary actions; providing for the
   28         discontinuance of the license; prohibiting concurrent
   29         licensure as an insurance agent; authorizing the
   30         Department of Financial Services to adopt rules;
   31         amending s. 627.402, F.S.; providing definitions for
   32         “grandfathered health plan,” “nongrandfathered health
   33         plan,” and “PPACA”; amending s. 627.410, F.S.;
   34         providing an exception to the prohibition against an
   35         insurer issuing a new policy form after discontinuing
   36         the availability of a similar policy form when the
   37         form does not comply with PPACA; requiring the
   38         experience of grandfathered health plans and
   39         nongrandfathered health plans to be separated;
   40         providing that nongrandfathered health plans are not
   41         subject to rate review or approval by the office;
   42         specifying that such rates for such health plans must
   43         be filed with the office and are exempt from other
   44         specified rate requirements; requiring insurers and
   45         health maintenance organizations issuing such health
   46         plans to include a notice of the estimated impact of
   47         PPACA on monthly premiums with the first issuance or
   48         renewal of the policy; requiring the Financial
   49         Services Commission to adopt the notice format by
   50         rule; requiring the notice to be filed with the office
   51         for informational purposes; providing for the
   52         calculation of the estimated premium impact, which
   53         must be included in the notice; requiring the office,
   54         in consultation with the department, to develop a
   55         summary of the impact to be made available on their
   56         respective websites; providing for future repeal;
   57         amending s. 627.411, F.S.; providing that grounds for
   58         disapproval of rates do not apply to nongrandfathered
   59         health plans; providing for future repeal of this
   60         provision; amending s. 627.6425, F.S.; allowing an
   61         insurer to nonrenew coverage only for all
   62         nongrandfathered health plans under certain
   63         conditions; amending s. 627.6484, F.S.; providing that
   64         coverage for policyholders of the Florida
   65         Comprehensive Health Association terminates on a
   66         specified date; requiring the association to provide
   67         specified assistance to policyholders in obtaining
   68         other health insurance coverage; requiring the
   69         association to notify policyholders of termination of
   70         coverage and information on how to obtain other
   71         coverage; requiring the association to determine the
   72         amount of a final assessment or to refund any surplus
   73         funds to member insurers, and to otherwise complete
   74         program responsibilities; repealing s. 627.64872,
   75         related to the Florida Health Insurance Plan;
   76         providing for the future repeal of ss. 627.648,
   77         627.6482, 627.6484, 627.6486, 627.6488, 627.6489,
   78         627.649, 627.6492, 627.6494, 627.6496, 627.6498, and
   79         627.6499, F.S., relating to the Florida Comprehensive
   80         Health Association; amending s. 627.6571, F.S.;
   81         allowing an insurer to nonrenew coverage only for all
   82         nongrandfathered health plans under certain
   83         conditions; amending s. 627.6699, F.S.; adding and
   84         revising definitions used in the Employee Health Care
   85         Access Act; providing that a small employer carrier is
   86         not required to use gender as a rating factor for a
   87         nongrandfathered health plan; requiring carriers to
   88         separate the experience of grandfathered health plans
   89         and nongrandfathered health plans for determining
   90         rates; amending s. 641.31, F.S.; providing that
   91         nongrandfathered health plans are not subject to rate
   92         review or approval by the office; providing for future
   93         repeal of this provision; providing effective dates.
   94  
   95  Be It Enacted by the Legislature of the State of Florida:
   96  
   97         Section 1. Section 624.25, Florida Statutes, is created to
   98  read:
   99         624.25 Patient Protection and Affordable Care Act.—A
  100  provision of the Florida Insurance Code, or rule adopted
  101  pursuant to the code, applies unless such provision or rule
  102  prevents the application of a provision of PPACA. As used in
  103  this section, the term “PPACA” has the same meaning as provided
  104  in s. 627.402.
  105         Section 2. Section 624.26, Florida Statutes, is created to
  106  read:
  107         624.26Collaborative arrangement with the Department of
  108  Health and Human Services.—
  109         (1) As used in this section, the term “PPACA” has the same
  110  meaning as provided in s. 627.402.
  111         (2) When reviewing forms filed by health insurers or health
  112  maintenance organizations pursuant to s. 627.410 or s. 641.31(3)
  113  for compliance with state law, the office may also review such
  114  forms for compliance with PPACA. If the office determines that a
  115  form does not comply with PPACA, the office shall inform the
  116  insurer or organization of the reason for noncompliance. If the
  117  office determines that a form ultimately used by an insurer or
  118  organization does not comply with PPACA, the office may report
  119  such potential violation to the federal Department of Health and
  120  Human Services. The review of forms by the office under this
  121  subsection does not include review of the rates, rating
  122  practices, or the relationship of benefits to the rates.
  123         (3) When performing market conduct examinations or
  124  investigations of health insurers or health maintenance
  125  organizations as authorized under s. 624.307, s. 624.3161, or s.
  126  641.3905 for compliance with state law, the office may include
  127  compliance with PPACA within the scope of such examination or
  128  investigation. If the office determines that an insurer’s or
  129  organization’s operations do not comply with PPACA, the office
  130  shall inform the insurer or organization of the reason for such
  131  determination. If the insurer or organization does not take
  132  action to comply with PPACA, the office may report such
  133  potential violation to the federal Department of Health and
  134  Human Resources.
  135         (4) The department’s Division of Consumer Services may
  136  respond to complaints by consumers relating to a requirement of
  137  PPACA as authorized under s. 20.121(2)(h), and report apparent
  138  or potential violations to the office and to the federal
  139  Department of Health and Human Services.
  140         (5) A determination made by the office or department
  141  pursuant to this section regarding compliance with PPACA does
  142  not constitute a determination that affects the substantial
  143  interests of any party for purposes of chapter 120.
  144         Section 3. Effective October 1, 2014, subsection (2) of
  145  section 624.34, Florida Statutes, is amended to read:
  146         624.34 Authority of Department of Law Enforcement to accept
  147  fingerprints of, and exchange criminal history records with
  148  respect to, certain persons.—
  149         (2) The Department of Law Enforcement may accept
  150  fingerprints of individuals who apply for a license as an agent,
  151  customer representative, adjuster, service representative,
  152  navigator, or managing general agent or the fingerprints of the
  153  majority owner, sole proprietor, partners, officers, and
  154  directors of a corporation or other legal entity that applies
  155  for licensure with the department or office under the provisions
  156  of the Florida Insurance Code.
  157         Section 4. Effective October 1, 2014, subsection (1) of
  158  section 626.022, Florida Statutes, is amended to read:
  159         626.022 Scope of part.—
  160         (1) This part applies as to insurance agents, service
  161  representatives, adjusters, navigators, and insurance agencies;
  162  as to any and all kinds of insurance; and as to stock insurers,
  163  mutual insurers, reciprocal insurers, and all other types of
  164  insurers, except that:
  165         (a) It does not apply as to reinsurance, except that ss.
  166  626.011-626.022, ss. 626.112-626.181, ss. 626.191-626.211, ss.
  167  626.291-626.301, s. 626.331, ss. 626.342-626.521, ss. 626.541
  168  626.591, and ss. 626.601-626.711 shall apply as to reinsurance
  169  intermediaries as defined in s. 626.7492.
  170         (b) The applicability of this chapter as to fraternal
  171  benefit societies shall be as provided in chapter 632.
  172         (c) It does not apply to a bail bond agent, as defined in
  173  s. 648.25, except as provided in chapter 648 or chapter 903.
  174         (d) It This part does not apply to a certified public
  175  accountant licensed under chapter 473 who is acting within the
  176  scope of the practice of public accounting, as defined in s.
  177  473.302 if, provided that the activities of the certified public
  178  accountant are limited to advising a client of the necessity of
  179  obtaining insurance, the amount of insurance needed, or the line
  180  of coverage needed, and if provided that the certified public
  181  accountant does not directly or indirectly receive or share in
  182  any commission or referral fee.
  183         Section 5. Effective October 1, 2014, subsection (9) of
  184  section 626.207, Florida Statutes, is amended to read:
  185         626.207 Disqualification of applicants and licensees;
  186  penalties against licensees; rulemaking authority.—
  187         (9) Section 112.011 does not apply to any applicants for
  188  licensure under the Florida Insurance Code, including, but not
  189  limited to, agents, agencies, adjusters, adjusting firms,
  190  customer representatives, navigators, or managing general
  191  agents.
  192         Section 6. The Division of Law Revision and Information is
  193  directed to create part XII of chapter 626, Florida Statutes,
  194  consisting of s. 626.995, Florida Statutes, and to title that
  195  part as “Navigators.”
  196         Section 7. Effective October 1, 2014, section 626.995,
  197  Florida Statutes, is created to read:
  198         626.995Qualification and licensure of navigators.—
  199         (1) All navigators must be licensed and have such licenses
  200  renewed, continued, reinstated, or terminated as prescribed for
  201  licensure or appointment under parts I and IV of this chapter.
  202  Parts VIII and IX of this chapter also apply to navigators.
  203         (2) DEFINITIONS.—As used in this section, the term:
  204         (a) “Exchange” means an approved state, federal, or
  205  partnership exchange operating in this state pursuant 42 U.S.C.
  206  s. 18031.
  207         (b) “Facilitate,” with regard to the selection of a
  208  qualified health plan, means providing assistance and
  209  information to an individual regarding choices for enrollment in
  210  a qualified health plan available through an exchange.
  211         (c) “Navigator” means an individual, as defined in 45
  212  C.F.R. s. 155.20, who provides the services and performs the
  213  duties of a navigator as set forth in 45 C.F.R. s. 155.210(e).
  214         (d) “Qualified health plan” means a health plan as defined
  215  in 45 C.F.R. s. 155.20 which has been approved to be offered
  216  through an exchange.
  217         (3) LICENSE REQUIRED.—
  218         (a) An individual or entity may not act, offer to act, or
  219  advertise any service as a navigator in this state unless
  220  licensed as a navigator by the department pursuant to this
  221  section.
  222         (b) A navigator license may not be issued unless the
  223  applicant establishes, to the satisfaction of the department,
  224  that he or she has the background, experience, knowledge, and
  225  competency that will enable him or her to deliver unbiased and
  226  accurate information to individuals in this state seeking to
  227  obtain affordable health insurance coverage through an exchange
  228  and meets the license qualifications required under this
  229  section.
  230         (c) Each license application must be accompanied by a
  231  nonrefundable $50 application filing fee.
  232         (4) LICENSE QUALIFICATIONS.—An individual may not be
  233  licensed as a navigator unless the individual meets all of the
  234  following qualifications:
  235         (a) Is at least 18 years of age.
  236         (b) Has submitted a license application to the department
  237  on a form approved by the department and provided such
  238  information as the department deems necessary to determine the
  239  applicant’s fitness to be licensed as a navigator in this state.
  240         (c) Has been subjected to a criminal history and regulatory
  241  background check following the submission fingerprints to the
  242  department and is not disqualified as provided under part I of
  243  this chapter.
  244         (d) Has not committed any act that constitutes grounds for
  245  refusal, suspension, or revocation as provided under part I of
  246  this chapter.
  247         (e) Has successfully completed a 10-hour classroom course,
  248  satisfactory to the department, at a school or college or
  249  extension division thereof, or other authorized course of study
  250  approved by the department. Courses must include instruction on
  251  the subject matter of health insurance plans, health maintenance
  252  organizations, unauthorized entities engaging in the business of
  253  insurance, the Patient Protection Affordable Care Act, Pub. L.
  254  No. 111-152, the availability of premium tax credits under 26
  255  U.S.C. s. 36B, cost-sharing reductions under 45 C.F.R s.
  256  155.305, prohibitions against the unlicensed transaction of
  257  insurance, and ethics.
  258         (f) Has passed an examination authorized by the department.
  259         (5) NAVIGATOR CONDUCT.—
  260         (a) A navigator shall:
  261         1. Facilitate the selection of a qualified health plan
  262  through an exchange by providing factually accurate information
  263  to an individual regarding qualified health plans, the
  264  availability of premium tax credits under 26 U.S.C. s. 36B, and
  265  cost sharing reductions under 45 C.F.R. s. 155.305;
  266         2. Inform an individual that the insurance agent, insurance
  267  company, or employer can provide information and assistance
  268  regarding coverage upon determining that an individual has
  269  existing health insurance coverage purchased outside the
  270  exchange; and
  271         3. Indicate he or she is not permitted to recommend the
  272  purchase of, give opinions about, or advise that any health plan
  273  is superior to or worse than another health plan.
  274         (b) A navigator may not:
  275         1. Conduct activities that may only be performed by a
  276  licensed insurance agent;
  277         2. Solicit, negotiate, or sell health insurance;
  278         3. Recommend the purchase of, give opinions about, or
  279  advise that any health plan is superior to or worse than
  280  another;
  281         4. Violate the provisions of 42 U.S.C. s. 18031 or 45
  282  C.F.R. part 155;
  283         5. Receive compensation or anything of value from an
  284  insurer, health plan, business, or consumer in connection with
  285  performing activities of a navigator, other than from an entity
  286  or individual who has received a navigator grant pursuant to 45
  287  C.F.R. s. 155.210; or
  288         6. Recommend or assist with the cancellation of coverage
  289  purchased outside of the exchange.
  290         (c) DISCIPLINARY ACTIONS.—The department may suspend,
  291  revoke, or refuse to issue a navigator license or may fine or
  292  place on probation a licensee for a violation of this section in
  293  the same manner as prescribed under chapter 626 for insurance
  294  representatives.
  295         (6) DISCONTINUANCE OF LICENSE.—If 42 U.S.C. s. 18031 or 45
  296  C.F.R. part 155 no longer authorizes an exchange to validly
  297  operate in this state or no longer requires navigators to assist
  298  individuals, the department shall discontinue licensing
  299  navigators under this section and existing licenses shall
  300  automatically expire 30 days after notice is given to the
  301  licensee.
  302         (7) CONCURRENT LICENSURE PROHIBITED.—An individual may not
  303  be concurrently licensed as a navigator and an insurance agent.
  304         (8) RULES.—The department may adopt rules to administer
  305  this section.
  306         Section 8. Section 627.402, Florida Statutes, is amended to
  307  read:
  308         627.402 Definitions; specified certificates not included.
  309  As used in this part, the term:
  310         (1) “Grandfathered health plan” has the same meaning as
  311  provided in 42 U.S.C. s. 18011, subject to the conditions for
  312  maintaining status as a grandfathered health plan specified in
  313  regulations adopted by the federal Department of Health and
  314  Human Services in 45 C.F.R. s. 147.140.
  315         (2) “Nongrandfathered health plan” is a health insurance
  316  policy or health maintenance organization contract that is not a
  317  grandfathered health plan and does not provide the benefits or
  318  coverages specified under s. 627.6561(5)(b)-(e).
  319         (3)(1) “Policy” means a written contract of insurance or
  320  written agreement for or effecting insurance, or the certificate
  321  thereof, by whatever name called, and includes all clauses,
  322  riders, endorsements, and papers that which are a part thereof.
  323         (2) The term word “certificate” as used in this subsection
  324  section does not include certificates as to group life or health
  325  insurance or as to group annuities issued to individual
  326  insureds.
  327         (4) “PPACA” means the Patient Protection and Affordable
  328  Care Act, Pub. L. No. 111-148, as amended by the Health Care and
  329  Education Reconciliation Act of 2010, Pub. L. No. 111-152, and
  330  regulations adopted pursuant to those acts.
  331         Section 9. Subsections (2), (6), and (7) of section
  332  627.410, Florida Statutes, are amended, and subsection (9) is
  333  added to that section, to read:
  334         627.410 Filing, approval of forms.—
  335         (2) Every such filing must be made at least not less than
  336  30 days in advance of any such use or delivery. At the
  337  expiration of the such 30 days, the form so filed will be deemed
  338  approved unless prior thereto it has been affirmatively approved
  339  or disapproved by order of the office. The approval of any such
  340  form by the office constitutes a waiver of any unexpired portion
  341  of such waiting period. The office may extend by not more than
  342  an additional 15 days the period within which it may so
  343  affirmatively approve or disapprove any such form by up to 15
  344  days, by giving notice of such extension before expiration of
  345  the initial 30-day period. At the expiration of any such
  346  extended period as so extended, and in the absence of such prior
  347  affirmative approval or disapproval, any such form shall be
  348  deemed approved.
  349         (6)(a) An insurer may shall not deliver, or issue for
  350  delivery, or renew in this state any health insurance policy
  351  form until it has filed with the office a copy of every
  352  applicable rating manual, rating schedule, change in rating
  353  manual, and change in rating schedule; if rating manuals and
  354  rating schedules are not applicable, the insurer must file with
  355  the office applicable premium rates and any change in applicable
  356  premium rates. This paragraph does not apply to group health
  357  insurance policies, effectuated and delivered in this state,
  358  insuring groups of 51 or more persons, except for Medicare
  359  supplement insurance, long-term care insurance, and any coverage
  360  under which the increase in claim costs over the lifetime of the
  361  contract due to advancing age or duration is prefunded in the
  362  premium.
  363         (b) The commission may establish by rule, for each type of
  364  health insurance form, procedures to be used in ascertaining the
  365  reasonableness of benefits in relation to premium rates and may,
  366  by rule, exempt from any requirement of paragraph (a) any health
  367  insurance policy form or type thereof, (as specified in such
  368  rule,) to which form or type such requirements may not be
  369  practically applied or to which form or type the application of
  370  such requirements is not desirable or necessary for the
  371  protection of the public. With respect to any health insurance
  372  policy form or type thereof which is exempted by rule from any
  373  requirement of paragraph (a), premium rates filed pursuant to
  374  ss. 627.640 and 627.662 are shall be for informational purposes.
  375         (c) Every filing made pursuant to this subsection shall be
  376  made within the same time period provided in, and shall be
  377  deemed to be approved under the same conditions, as those
  378  provided in, subsection (2).
  379         (d) Every filing made pursuant to this subsection, except
  380  disability income policies and accidental death policies, are
  381  shall be prohibited from applying the following rating
  382  practices:
  383         1. Select and ultimate premium schedules.
  384         2. Premium class definitions that which classify insured
  385  based on year of issue or duration since issue.
  386         3. Attained age premium structures on policy forms under
  387  which more than 50 percent of the policies are issued to persons
  388  age 65 or over.
  389         (e) Except as provided in subparagraph 1., an insurer shall
  390  continue to make available for purchase any individual policy
  391  form issued on or after October 1, 1993. A policy form is shall
  392  not be considered to be available for purchase unless the
  393  insurer has actively offered it for sale during in the previous
  394  12 months.
  395         1. An insurer may discontinue the availability of a policy
  396  form if the insurer provides its decision to the office in
  397  writing its decision at least 30 days before prior to
  398  discontinuing the availability of the form of the policy or
  399  certificate. After receipt of the notice by the office, the
  400  insurer may shall no longer offer for sale the policy form or
  401  certificate form for sale in this state.
  402         2. An insurer that discontinues the availability of a
  403  policy form pursuant to subparagraph 1. may shall not file for
  404  approval a new policy form providing similar benefits similar to
  405  as the discontinued form for a period of 5 years after the
  406  insurer provides notice to the office of the discontinuance. The
  407  period of discontinuance may be reduced if the office determines
  408  that a shorter period is appropriate. The requirements of this
  409  subparagraph do not apply to the discontinuance of a policy form
  410  because it does not comply with PPACA.
  411         3. The experience of all policy forms providing similar
  412  benefits shall be combined for all rating purposes, except that
  413  the experience of grandfathered health plans and
  414  nongrandfathered health plans shall be separated.
  415         (7)(a) Each insurer subject to the requirements of
  416  subsection (6) shall make an annual filing with the office
  417  within no later than 12 months after its previous filing,
  418  demonstrating the reasonableness of benefits in relation to
  419  premium rates. The office, After receiving a request to be
  420  exempted from the provisions of this section, the office may,
  421  for good cause due to insignificant numbers of policies in force
  422  or insignificant premium volume, exempt a company, by line of
  423  coverage, from filing rates or rate certification as required by
  424  this section.
  425         (a)(b) The filing required by this subsection shall be
  426  satisfied by one of the following methods:
  427         1. A rate filing prepared by an actuary which contains
  428  documentation demonstrating the reasonableness of benefits in
  429  relation to premiums charged in accordance with the applicable
  430  rating laws and rules adopted promulgated by the commission.
  431         2. If no rate change is proposed, a filing that which
  432  consists of a certification by an actuary that benefits are
  433  reasonable in relation to premiums currently charged in
  434  accordance with applicable laws and rules promulgated by the
  435  commission.
  436         (b)(c) As used in this section, the term “actuary” means an
  437  individual who is a member of the Society of Actuaries or the
  438  American Academy of Actuaries. If an insurer does not employ or
  439  otherwise retain the services of an actuary, the insurer’s
  440  certification shall be prepared by insurer personnel or
  441  consultants who have with a minimum of 5 years’ experience in
  442  insurance ratemaking. The chief executive officer of the insurer
  443  shall review and sign the certification indicating his or her
  444  agreement with its conclusions.
  445         (c)(d) If at the time a filing is required under this
  446  section an insurer is in the process of completing a rate
  447  review, the insurer may apply to the office for an extension of
  448  up to an additional 30 days in which to make the filing. The
  449  request for extension must be received by the office by no later
  450  than the date the filing is due.
  451         (d)(e) If an insurer fails to meet the filing requirements
  452  of this subsection and does not submit the filing within 60 days
  453  after following the date the filing is due, the office may, in
  454  addition to any other penalty authorized by law, order the
  455  insurer to discontinue the issuance of policies for which the
  456  required filing was not made, until such time as the office
  457  determines that the required filing is properly submitted.
  458         (9) For plan years 2014 and 2015, nongrandfathered health
  459  plans for the individual or small group market are not subject
  460  to rate review or approval by the office. An insurer or health
  461  maintenance organization issuing or renewing such health plans
  462  shall file rates and any change in rates with the office as
  463  required by paragraph (6)(a), but the filing and rates are not
  464  subject to subsection (2), paragraphs (b), (c), or (d) of
  465  subsection (6), or subsection (7).
  466         (a) For each individual and small group nongrandfathered
  467  health plan, an insurer or health maintenance organization shall
  468  include a notice describing or illustrating the estimated impact
  469  of PPACA on monthly premiums with the delivery of the policy or
  470  contract or, upon renewal, the premium renewal notice. The
  471  notice must be in a format established by rule of the
  472  commission. All notices shall be submitted to the office for
  473  informational purposes by September 1, 2013. The notice is
  474  required only for the first issuance or renewal of the policy or
  475  contract on or after January 1, 2014.
  476         (b) The information provided in the notice shall be based
  477  on the statewide average premium for the policy or contract for
  478  the bronze, silver, gold, or platinum level plan, whichever is
  479  applicable to the policy or contract, and provide an estimate of
  480  the following effects of PPACA requirements:
  481         1. The dollar amount of the premium which is attributable
  482  to the impact of guaranteed issuance of coverage. This estimate
  483  must include, but is not required to itemize, the impact of the
  484  requirement that rates be based on factors unrelated to health
  485  status, how the individual coverage mandate and subsidies
  486  provided in the health insurance exchange established in this
  487  state pursuant to PPACA affect the impact of guaranteed issuance
  488  of coverage, and estimated reinsurance credits.
  489         2. The dollar amount of the premium which is attributable
  490  to fees, taxes, and assessments.
  491         3. For individual policies or contracts, the dollar amount
  492  of the premium increase or decrease from the premium that would
  493  have otherwise been due which is attributable to the combined
  494  impact of the requirement that rates for age be limited to a 3
  495  to-1 ratio and the prohibition against using gender as a rating
  496  factor. This estimate must be displayed for the average rates
  497  for male and female insureds, respectively, for the following
  498  three age categories: age 21 years to 29 years, age 30 years to
  499  54 years, and age 55 years to 64 years.
  500         4. The dollar amount which is attributable to the
  501  requirement that essential health benefits be provided and to
  502  meet the required actuarial value for the product, as compared
  503  to the statewide average premium for the policy or contract for
  504  the plan issued by that insurer or organization that has the
  505  highest enrollment in the individual or small group market on
  506  July 1, 2013, whichever is applicable. The statewide average
  507  premiums for the plan that has the highest enrollment must
  508  include all policyholders, including those that have health
  509  conditions that increase the standard premium.
  510         (c) The office, in consultation with the department, shall
  511  develop a summary of the estimated impact of PPACA on monthly
  512  premiums as contained in the notices submitted by insurers and
  513  health maintenance organizations, which must be available on the
  514  respective websites of the office and department by October 1,
  515  2013.
  516         (d) This subsection is repealed on March 1, 2015.
  517         Section 10. Subsection (4) is added to section 627.411,
  518  Florida Statutes, to read:
  519         627.411 Grounds for disapproval.—
  520         (4) The provisions of this section which apply to rates,
  521  rating practices, or the relationship of benefits to the premium
  522  charged do not apply to nongrandfathered health plans described
  523  in s. 627.410(9). This subsection is repealed on March 1, 2015.
  524         Section 11. Paragraph (a) of subsection (3) of section
  525  627.6425, Florida Statutes, is amended to read:
  526         627.6425 Renewability of individual coverage.—
  527         (3)(a) If In any case in which an insurer decides to
  528  discontinue offering a particular policy form for health
  529  insurance coverage offered in the individual market, coverage
  530  under such form may be discontinued by the insurer only if:
  531         1. The insurer provides notice to each covered individual
  532  provided coverage under this policy form in the individual
  533  market of such discontinuation at least 90 days before prior to
  534  the date of the nonrenewal of such coverage;
  535         2. The insurer offers to each individual in the individual
  536  market provided coverage under this policy form the option to
  537  purchase any other individual health insurance coverage
  538  currently being offered by the insurer for individuals in such
  539  market in the state; and
  540         3. In exercising the option to discontinue coverage of a
  541  this policy form and in offering the option of coverage under
  542  subparagraph 2., the insurer acts uniformly without regard to
  543  any health-status-related factor of enrolled individuals or
  544  individuals who may become eligible for such coverage. If a
  545  policy form covers both grandfathered and nongrandfathered
  546  health plans, an insurer may nonrenew coverage only for the
  547  nongrandfathered health plans, in which case the requirements of
  548  subparagraphs 1. and 2. apply only to the nongrandfathered
  549  health plans. As used in this subparagraph, the terms
  550  “grandfathered health plan” and “nongrandfathered health plan”
  551  have the same meaning as provided in s. 627.402.
  552         Section 12. Section 627.6484, Florida Statutes, is amended
  553  to read:
  554         627.6484 Dissolution of association; termination of
  555  enrollment; availability of other coverage.—
  556         (1) The association shall accept applications for insurance
  557  only until June 30, 1991, after which date no further
  558  applications may be accepted.
  559         (2) Coverage for each policyholder of the association
  560  terminates at midnight, June 30, 2014, or on the date that
  561  health insurance coverage is effective with another insurer,
  562  whichever occurs first, and such terminated coverage may not be
  563  renewed.
  564         (3) The association must provide assistance to each
  565  policyholder concerning how to obtain health insurance coverage.
  566  Such assistance must include the identification of insurers and
  567  health maintenance organizations offering coverage in the
  568  individual market, including inside and outside of the health
  569  insurance exchange established in this state pursuant to PPACA
  570  as defined in s. 627.402, a basic explanation of the levels of
  571  coverage available, and specific information relating to local
  572  and online sources from which a policyholder may obtain detailed
  573  policy and premium comparisons and directly obtain coverage.
  574         (4) The association shall provide written notice to all
  575  policyholders by September 1, 2013, which informs each
  576  policyholder with respect to:
  577         (a) The date that coverage with the association is
  578  terminated and that such coverage may not be renewed.
  579         (b) The opportunity for the policyholder to obtain
  580  individual health insurance coverage on a guaranteed-issue
  581  basis, regardless of the policyholder’s health status, from any
  582  health insurer or health maintenance organization that offers
  583  coverage in the individual market, including the dates of open
  584  enrollment periods for obtaining such coverage.
  585         (c) How to access coverage through the health insurance
  586  exchange established for this state and the potential for
  587  obtaining reduced premiums and cost-sharing provisions depending
  588  on the policyholder’s family income level.
  589         (d) Contact information for a representative of the
  590  association who is able to provide additional information about
  591  obtaining individual health insurance coverage both inside and
  592  outside of the Health Insurance Exchange.
  593         (5) After termination of coverage, the association must
  594  continue to receive and process timely submitted claims in
  595  accordance with the laws of this state.
  596         (6) By March 15, 2015, the association must determine the
  597  final assessment to be collected from insurers for funding
  598  claims and administrative expenses of the association or, if
  599  surplus funds remain, determine the refund amount to be provided
  600  to each insurer based on the same pro rata formula used in
  601  determining each insurer’s assessment.
  602         (7) By September 1, 2015, the board must:
  603         (a) Complete performance of all program responsibilities.
  604         (b) Sell or otherwise dispose of all physical assets of the
  605  association.
  606         (c) Make a final accounting of the finances of the
  607  association.
  608         (d) Transfer all records to the Department of Financial
  609  Services, which shall serve as custodian of such records.
  610         (e) Execute a legal dissolution of the association and
  611  report such action to the Chief Financial Officer, the Insurance
  612  Commissioner, the President of the Senate, and the Speaker of
  613  the House of Representatives. Upon receipt of an application for
  614  insurance, the association shall issue coverage for an eligible
  615  applicant. When appropriate, the administrator shall forward a
  616  copy of the application to a market assistance plan created by
  617  the office, which shall conduct a diligent search of the private
  618  marketplace for a carrier willing to accept the application.
  619         (2) The office shall, after consultation with the health
  620  insurers licensed in this state, adopt a market assistance plan
  621  to assist in the placement of risks of Florida Comprehensive
  622  Health Association applicants. All health insurers and health
  623  maintenance organizations licensed in this state shall
  624  participate in the plan.
  625         (3) Guidelines for the use of such program shall be a part
  626  of the association’s plan of operation. The guidelines shall
  627  describe which types of applications are to be exempt from
  628  submission to the market assistance plan. An exemption shall be
  629  based upon a determination that due to a specific health
  630  condition an applicant is ineligible for coverage in the
  631  standard market. The guidelines shall also describe how the
  632  market assistance plan is to be conducted, and how the periodic
  633  reviews to depopulate the association are to be conducted.
  634         (4) If a carrier is found through the market assistance
  635  plan, the individual shall apply to that company. If the
  636  individual’s application is accepted, association coverage shall
  637  terminate upon the effective date of the coverage with the
  638  private carrier. For the purpose of applying a preexisting
  639  condition limitation or exclusion, any carrier accepting a risk
  640  pursuant to this section shall provide coverage as if it began
  641  on the date coverage was effectuated on behalf of the
  642  association, and shall be indemnified by the association for
  643  claims costs incurred as a result of utilizing such effective
  644  date.
  645         (5) The association shall establish a policyholder
  646  assistance program by July 1, 1991, to assist in placing
  647  eligible policyholders in other coverage programs, including
  648  Medicare and Medicaid.
  649         Section 13. Section 627.64872, Florida Statutes, is
  650  repealed.
  651         Section 14. Effective October 1, 2015, sections 627.648,
  652  627.6482, 627.6484, 627.6486, 627.6488, 627.6489, 627.649,
  653  627.6492, 627.6494, 627.6496, 627.6498, and 627.6499, Florida
  654  Statutes, are repealed.
  655         Section 15. Paragraph (a) of subsection (3) of section
  656  627.6571, Florida Statutes, is amended to read:
  657         627.6571 Guaranteed renewability of coverage.—
  658         (3)(a) An insurer may discontinue offering a particular
  659  policy form of group health insurance coverage offered in the
  660  small-group market or large-group market only if:
  661         1. The insurer provides notice to each policyholder
  662  provided coverage under of this policy form in such market, and
  663  to participants and beneficiaries covered under such coverage,
  664  of such discontinuation at least 90 days before prior to the
  665  date of the nonrenewal of such coverage;
  666         2. The insurer offers to each policyholder provided
  667  coverage under of this policy form in such market the option to
  668  purchase all, or in the case of the large-group market, any
  669  other health insurance coverage currently being offered by the
  670  insurer in such market; and
  671         3. In exercising the option to discontinue coverage of this
  672  form and in offering the option of coverage under subparagraph
  673  2., the insurer acts uniformly without regard to the claims
  674  experience of those policyholders or any health-status-related
  675  factor that relates to any participants or beneficiaries covered
  676  or new participants or beneficiaries who may become eligible for
  677  such coverage. If a policy form covers both grandfathered and
  678  nongrandfathered health plans, an insurer may nonrenew coverage
  679  only for nongrandfathered health plans, in which case the
  680  requirements of subparagraphs 1. and 2. apply only to the
  681  nongrandfathered health plans. As used in this subparagraph, the
  682  terms “grandfathered health planand “nongrandfathered health
  683  plan” have the same meanings as provided in s. 627.402.
  684         Section 16. Paragraphs (j) through (w) of subsection (3) of
  685  section 627.6699, Florida Statutes, are redesignated as
  686  paragraphs (k) through (x), respectively, a new paragraph (j) is
  687  added to that subsection, present paragraphs (v) and (w) of that
  688  subsection are amended, and paragraph (b) of subsection (6) is
  689  amended, to read:
  690         627.6699 Employee Health Care Access Act.—
  691         (3) DEFINITIONS.—As used in this section, the term:
  692         (j) “Grandfathered health plan” and “nongrandfathered
  693  health plan” have the same meaning as provided in s. 627.402.
  694         (w)(v) “Small employer” means, in connection with a health
  695  benefit plan with respect to a calendar year and a plan year:,
  696         1. For a grandfathered health plan, any person, sole
  697  proprietor, self-employed individual, independent contractor,
  698  firm, corporation, partnership, or association that is actively
  699  engaged in business, has its principal place of business in this
  700  state, employed an average of at least 1 but not more than 50
  701  eligible employees on business days during the preceding
  702  calendar year, the majority of whom were employed in this state,
  703  employs at least 1 employee on the first day of the plan year,
  704  and is not formed primarily for purposes of purchasing
  705  insurance. In determining the number of eligible employees,
  706  companies that are an affiliated group as defined in s. 1504(a)
  707  of the Internal Revenue Code of 1986, as amended, are considered
  708  a single employer. For purposes of this section, a sole
  709  proprietor, an independent contractor, or a self-employed
  710  individual is considered a small employer only if all of the
  711  conditions and criteria established in this section are met.
  712         2. For a nongrandfathered health plan, any employer that
  713  has its principal place of business in this state, employed an
  714  average of at least 1 but not more than 50 employees on business
  715  days during the preceding calendar year, and employs at least 1
  716  employee on the first day of the plan year. As used in this
  717  subparagraph, the terms “employee” and “employer” have the same
  718  meaning as provided in s. 3 of the Employee Retirement Income
  719  Security Act of 1974, as amended, 29 U.S.C. 1002.
  720         (x)(w) “Small employer carrier” means a carrier that offers
  721  health benefit plans covering eligible employees of one or more
  722  small employers.
  723         (6) RESTRICTIONS RELATING TO PREMIUM RATES.—
  724         (b) For all small employer health benefit plans that are
  725  subject to this section and are issued by small employer
  726  carriers on or after January 1, 1994, premium rates for health
  727  benefit plans subject to this section are subject to the
  728  following:
  729         1. Small employer carriers must use a modified community
  730  rating methodology in which the premium for each small employer
  731  is must be determined solely on the basis of the eligible
  732  employee’s and eligible dependent’s gender, age, family
  733  composition, tobacco use, or geographic area as determined under
  734  paragraph (5)(j) and in which the premium may be adjusted as
  735  permitted by this paragraph. A small employer carrier is not
  736  required to use gender as a rating factor for a nongrandfathered
  737  health plan.
  738         2. Rating factors related to age, gender, family
  739  composition, tobacco use, or geographic location may be
  740  developed by each carrier to reflect the carrier’s experience.
  741  The factors used by carriers are subject to office review and
  742  approval.
  743         3. Small employer carriers may not modify the rate for a
  744  small employer for 12 months from the initial issue date or
  745  renewal date, unless the composition of the group changes or
  746  benefits are changed. However, a small employer carrier may
  747  modify the rate one time within the prior to 12 months after the
  748  initial issue date for a small employer who enrolls under a
  749  previously issued group policy that has a common anniversary
  750  date for all employers covered under the policy if:
  751         a. The carrier discloses to the employer in a clear and
  752  conspicuous manner the date of the first renewal and the fact
  753  that the premium may increase on or after that date.
  754         b. The insurer demonstrates to the office that efficiencies
  755  in administration are achieved and reflected in the rates
  756  charged to small employers covered under the policy.
  757         4. A carrier may issue a group health insurance policy to a
  758  small employer health alliance or other group association with
  759  rates that reflect a premium credit for expense savings
  760  attributable to administrative activities being performed by the
  761  alliance or group association if such expense savings are
  762  specifically documented in the insurer’s rate filing and are
  763  approved by the office. Any such credit may not be based on
  764  different morbidity assumptions or on any other factor related
  765  to the health status or claims experience of any person covered
  766  under the policy. Nothing in This subparagraph does not exempt
  767  exempts an alliance or group association from licensure for any
  768  activities that require licensure under the insurance code. A
  769  carrier issuing a group health insurance policy to a small
  770  employer health alliance or other group association shall allow
  771  any properly licensed and appointed agent of that carrier to
  772  market and sell the small employer health alliance or other
  773  group association policy. Such agent shall be paid the usual and
  774  customary commission paid to any agent selling the policy.
  775         5. Any adjustments in rates for claims experience, health
  776  status, or duration of coverage may not be charged to individual
  777  employees or dependents. For a small employer’s policy, such
  778  adjustments may not result in a rate for the small employer
  779  which deviates more than 15 percent from the carrier’s approved
  780  rate. Any such adjustment must be applied uniformly to the rates
  781  charged for all employees and dependents of the small employer.
  782  A small employer carrier may make an adjustment to a small
  783  employer’s renewal premium, up to not to exceed 10 percent
  784  annually, due to the claims experience, health status, or
  785  duration of coverage of the employees or dependents of the small
  786  employer. Semiannually, small group carriers shall report
  787  information on forms adopted by rule by the commission, to
  788  enable the office to monitor the relationship of aggregate
  789  adjusted premiums actually charged policyholders by each carrier
  790  to the premiums that would have been charged by application of
  791  the carrier’s approved modified community rates. If the
  792  aggregate resulting from the application of such adjustment
  793  exceeds the premium that would have been charged by application
  794  of the approved modified community rate by 4 percent for the
  795  current reporting period, the carrier shall limit the
  796  application of such adjustments only to minus adjustments
  797  beginning within not more than 60 days after the report is sent
  798  to the office. For any subsequent reporting period, if the total
  799  aggregate adjusted premium actually charged does not exceed the
  800  premium that would have been charged by application of the
  801  approved modified community rate by 4 percent, the carrier may
  802  apply both plus and minus adjustments. A small employer carrier
  803  may provide a credit to a small employer’s premium based on
  804  administrative and acquisition expense differences resulting
  805  from the size of the group. Group size administrative and
  806  acquisition expense factors may be developed by each carrier to
  807  reflect the carrier’s experience and are subject to office
  808  review and approval.
  809         6. A small employer carrier rating methodology may include
  810  separate rating categories for one dependent child, for two
  811  dependent children, and for three or more dependent children for
  812  family coverage of employees having a spouse and dependent
  813  children or employees having dependent children only. A small
  814  employer carrier may have fewer, but not greater, numbers of
  815  categories for dependent children than those specified in this
  816  subparagraph.
  817         7. Small employer carriers may not use a composite rating
  818  methodology to rate a small employer with fewer than 10
  819  employees. For the purposes of this subparagraph, the term a
  820  “composite rating methodology” means a rating methodology that
  821  averages the impact of the rating factors for age and gender in
  822  the premiums charged to all of the employees of a small
  823  employer.
  824         8.a. A carrier may separate the experience of small
  825  employer groups with fewer less than 2 eligible employees from
  826  the experience of small employer groups with 2-50 eligible
  827  employees for purposes of determining an alternative modified
  828  community rating.
  829         a.b. If a carrier separates the experience of small
  830  employer groups as provided in sub-subparagraph a., the rate to
  831  be charged to small employer groups of fewer less than 2
  832  eligible employees may not exceed 150 percent of the rate
  833  determined for small employer groups of 2-50 eligible employees.
  834  However, the carrier may charge excess losses of the experience
  835  pool consisting of small employer groups with less than 2
  836  eligible employees to the experience pool consisting of small
  837  employer groups with 2-50 eligible employees so that all losses
  838  are allocated and the 150-percent rate limit on the experience
  839  pool consisting of small employer groups with less than 2
  840  eligible employees is maintained.
  841         b. Notwithstanding s. 627.411(1), the rate to be charged to
  842  a small employer group of fewer than 2 eligible employees,
  843  insured as of July 1, 2002, may be up to 125 percent of the rate
  844  determined for small employer groups of 2-50 eligible employees
  845  for the first annual renewal and 150 percent for subsequent
  846  annual renewals.
  847         9. A carrier shall separate the experience of grandfathered
  848  health plans from nongrandfathered health plans for determining
  849  rates.
  850         Section 17. Paragraph (f) is added to subsection (3) of
  851  section 641.31, Florida Statutes, to read:
  852         641.31 Health maintenance contracts.—
  853         (3)
  854         (f)1. For plan years 2014 and 2015, nongrandfathered health
  855  plans for the individual or small group market are not subject
  856  to rate review or approval by the office. A health maintenance
  857  organization that issues or renews a nongrandfathered health
  858  plan is subject to s. 627.410(9). As used in this paragraph, the
  859  terms “PPACA” and “nongrandfathered health plan” have the same
  860  meanings as those terms are defined in s. 627.402.
  861         2. This paragraph is repealed effective March 1, 2015.
  862         Section 18. Except as otherwise expressly provided in this
  863  act, this act shall take effect upon becoming a law.