Florida Senate - 2016                        COMMITTEE AMENDMENT
       Bill No. SB 1170
       
       
       
       
       
       
                                Ì747432$Î747432                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/26/2016           .                                
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       The Committee on Banking and Insurance (Detert) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Paragraph (d) of subsection (2) of section
    6  408.909, Florida Statutes, is amended to read:
    7         408.909 Health flex plans.—
    8         (2) DEFINITIONS.—As used in this section, the term:
    9         (d) “Health care coverage” or “health flex plan coverage”
   10  means health care services that are covered as benefits under an
   11  approved health flex plan or that are otherwise provided, either
   12  directly or through arrangements with other persons, via a
   13  health flex plan on a prepaid per capita basis or on a prepaid
   14  aggregate fixed-sum basis. The terms may also include one or
   15  more of the excepted benefits under s. 627.6513(1)-(13) s.
   16  627.6561(5)(b), the benefits under s. 627.6561(5)(c), if offered
   17  separately, or the benefits under s. 627.6561(5)(d), if offered
   18  as independent, noncoordinated benefits.
   19         Section 2. Section 409.817, Florida Statutes, is amended to
   20  read:
   21         409.817 Approval of health benefits coverage; financial
   22  assistance.—In order for health insurance coverage to qualify
   23  for premium assistance payments for an eligible child under ss.
   24  409.810-409.821, the health benefits coverage must:
   25         (1) Be certified by the Office of Insurance Regulation of
   26  the Financial Services Commission under s. 409.818 as meeting,
   27  exceeding, or being actuarially equivalent to the benchmark
   28  benefit plan;
   29         (2) Be guarantee issued;
   30         (3) Be community rated;
   31         (4) Not impose any preexisting condition exclusion for
   32  covered benefits; however, group health insurance plans may
   33  permit the imposition of a preexisting condition exclusion, but
   34  only insofar as it is permitted under s. 627.6561;
   35         (5) Comply with the applicable limitations on premiums and
   36  cost sharing in s. 409.816;
   37         (6) Comply with the quality assurance and access standards
   38  developed under s. 409.820; and
   39         (7) Establish periodic open enrollment periods, which may
   40  not occur more frequently than quarterly.
   41         Section 3. Paragraph (b) of subsection (1) of section
   42  624.123, Florida Statutes, is amended to read:
   43         624.123 Certain international health insurance policies;
   44  exemption from code.—
   45         (1) International health insurance policies and
   46  applications may be solicited and sold in this state at any
   47  international airport to a resident of a foreign country. Such
   48  international health insurance policies shall be solicited and
   49  sold only by a licensed health insurance agent and underwritten
   50  only by an admitted insurer. For purposes of this subsection:
   51         (b) “International health insurance policy” means health
   52  insurance, as provided defined in s. 627.6562(3)(a)2. s.
   53  627.6561(5)(a)2., which is offered to an individual, covering
   54  only a resident of a foreign country on an annual basis.
   55         Section 4. Subsection (2) of section 627.402, Florida
   56  Statutes, is amended to read:
   57         627.402 Definitions.—As used in this part, the term:
   58         (2) “Nongrandfathered health plan” is a health insurance
   59  policy or health maintenance organization contract that is not a
   60  grandfathered health plan and does not provide the benefits or
   61  coverages specified under s. 627.6513(1)-(14) s. 627.6561(5)(b)
   62  (e).
   63         Section 5. Subsection (3) of section 627.411, Florida
   64  Statutes, is amended to read:
   65         627.411 Grounds for disapproval.—
   66         (3)(a) For health insurance coverage as described in s.
   67  627.6561(5)(a)2., the minimum loss ratio standard of incurred
   68  claims to earned premium for the form shall be 65 percent.
   69         (b) Incurred claims are claims occurring within a fixed
   70  period, whether or not paid during the same period, under the
   71  terms of the policy period.
   72         1. Claims include scheduled benefit payments or services
   73  provided by a provider or through a provider network for dental,
   74  vision, disability, and similar health benefits.
   75         2. Claims do not include state assessments, taxes, company
   76  expenses, or any expense incurred by the company for the cost of
   77  adjusting and settling a claim, including the review,
   78  qualification, oversight, management, or monitoring of a claim
   79  or incentives or compensation to providers for other than the
   80  provisions of health care services.
   81         3. A company may at its discretion include costs that are
   82  demonstrated to reduce claims, such as fraud intervention
   83  programs or case management costs, which are identified in each
   84  filing, are demonstrated to reduce claims costs, and do not
   85  result in increasing the experience period loss ratio by more
   86  than 5 percent.
   87         4. For scheduled claim payments, such as disability income
   88  or long-term care, the incurred claims shall be the present
   89  value of the benefit payments discounted for continuance and
   90  interest.
   91         Section 6. Section 627.6011, Florida Statutes, is amended
   92  to read:
   93         627.6011 Mandated coverages.—Mandatory health benefits
   94  regulated under this chapter are not intended to apply to the
   95  types of health benefit plans listed in s. 627.6513(1)-(14) s.
   96  627.6561(5)(b)-(e), issued in any market, unless specifically
   97  designated otherwise. For purposes of this section, the term
   98  “mandatory health benefits” means those benefits set forth in
   99  ss. 627.6401-627.64193, and any other mandatory treatment or
  100  health coverages or benefits enacted on or after July 1, 2012.
  101         Section 7. Paragraph (h) of subsection (1) of section
  102  627.602, Florida Statutes, is amended to read:
  103         627.602 Scope, format of policy.—
  104         (1) Each health insurance policy delivered or issued for
  105  delivery to any person in this state must comply with all
  106  applicable provisions of this code and all of the following
  107  requirements:
  108         (h) Section 641.312 and the provisions of the Employee
  109  Retirement Income Security Act of 1974, as implemented by 29
  110  C.F.R. s. 2560.503-1, relating to internal grievances. This
  111  paragraph does not apply to a health insurance policy that is
  112  subject to the Subscriber Assistance Program under s. 408.7056
  113  or to the types of benefits or coverages provided under s.
  114  627.6513(1)-(14) s. 627.6561(5)(b)-(e) issued in any market.
  115         Section 8. Subsection (1) of section 627.642, Florida
  116  Statutes, is amended to read:
  117         627.642 Outline of coverage.—
  118         (1) A policy offering benefits defined in s. 627.6513(1)
  119  (14) or a large group no individual or family accident and
  120  health insurance policy may not shall be delivered, or issued
  121  for delivery, in this state unless:
  122         (a) It is accompanied by an appropriate outline of
  123  coverage; or
  124         (b) An appropriate outline of coverage is completed and
  125  delivered to the applicant at the time application is made, and
  126  an acknowledgment of receipt or certificate of delivery of such
  127  outline is provided to the insurer with the application.
  128  
  129  In the case of a direct response, such as a written application
  130  to the insurance company from an applicant, the outline of
  131  coverage shall accompany the policy when issued.
  132         Section 9. Subsections (1), (6), and (7) of section
  133  627.6425, Florida Statutes, are amended, to read:
  134         627.6425 Renewability of individual coverage.—
  135         (1) Except as otherwise provided in this section, an
  136  insurer that provides individual health insurance coverage to an
  137  individual shall renew or continue in force such coverage at the
  138  option of the individual. For the purpose of this section, the
  139  term “individual health insurance” means health insurance
  140  coverage, as described in s. 624.603 s. 627.6561(5)(a)2.,
  141  offered to an individual in this state, including certificates
  142  of coverage offered to individuals in this state as part of a
  143  group policy issued to an association outside this state, but
  144  the term does not include short-term limited duration insurance
  145  or excepted benefits specified in s. 627.6513(1)-(14) subsection
  146  (6) or subsection (7).
  147         (6) The requirements of this section do not apply to any
  148  health insurance coverage in relation to its provision of
  149  excepted benefits described in s. 627.6561(5)(b).
  150         (7) The requirements of this section do not apply to any
  151  health insurance coverage in relation to its provision of
  152  excepted benefits described in s. 627.6561(5)(c), (d), or (e),
  153  if the benefits are provided under a separate policy,
  154  certificate, or contract of insurance.
  155         Section 10. Paragraph (b) of subsection (2) and subsection
  156  (3) of section 627.6487, Florida Statutes, are amended to read:
  157         627.6487 Guaranteed availability of individual health
  158  insurance coverage to eligible individuals.—
  159         (2) For the purposes of this section:
  160         (b) “Individual health insurance” means health insurance,
  161  as defined in s. 624.603 s. 627.6561(5)(a)2., which is offered
  162  to an individual, including certificates of coverage offered to
  163  individuals in this state as part of a group policy issued to an
  164  association outside this state, but the term does not include
  165  short-term limited duration insurance or excepted benefits
  166  specified in s. 627.6513(1)-(14) s. 627.6561(5)(b) or, if the
  167  benefits are provided under a separate policy, certificate, or
  168  contract, the term does not include excepted benefits specified
  169  in s. 627.6561(5)(c), (d), or (e).
  170         (3) For the purposes of this section, the term “eligible
  171  individual” means an individual:
  172         (a)1. For whom, as of the date on which the individual
  173  seeks coverage under this section, the aggregate of the periods
  174  of creditable coverage, as defined in s. 627.6562(3) s.
  175  627.6561(5) and (6), is 18 or more months; and
  176         2.a. Whose most recent prior creditable coverage was under
  177  a group health plan, governmental plan, or church plan, or
  178  health insurance coverage offered in connection with any such
  179  plan; or
  180         b. Whose most recent prior creditable coverage was under an
  181  individual plan issued in this state by a health insurer or
  182  health maintenance organization, which coverage is terminated
  183  due to the insurer or health maintenance organization becoming
  184  insolvent or discontinuing the offering of all individual
  185  coverage in the State of Florida, or due to the insured no
  186  longer living in the service area in the State of Florida of the
  187  insurer or health maintenance organization that provides
  188  coverage through a network plan in the State of Florida;
  189         (b) Who is not eligible for coverage under:
  190         1. A group health plan, as defined in s. 2791 of the Public
  191  Health Service Act;
  192         2. A conversion policy or contract issued by an authorized
  193  insurer or health maintenance organization under s. 627.6675 or
  194  s. 641.3921, respectively, offered to an individual who is no
  195  longer eligible for coverage under either an insured or self
  196  insured employer plan;
  197         3. Part A or part B of Title XVIII of the Social Security
  198  Act; or
  199         4. A state plan under Title XIX of such act, or any
  200  successor program, and does not have other health insurance
  201  coverage;
  202         (c) With respect to whom the most recent coverage within
  203  the coverage period described in paragraph (a) was not
  204  terminated based on a factor described in s. 627.6571(2)(a) or
  205  (b), relating to nonpayment of premiums or fraud, unless such
  206  nonpayment of premiums or fraud was due to acts of an employer
  207  or person other than the individual;
  208         (d) Who, having been offered the option of continuation
  209  coverage under a COBRA continuation provision or under s.
  210  627.6692, elected such coverage; and
  211         (e) Who, if the individual elected such continuation
  212  provision, has exhausted such continuation coverage under such
  213  provision or program.
  214         Section 11. Section 627.64871, Florida Statutes, is
  215  repealed.
  216         Section 12. Section 627.6512, Florida Statutes, is amended
  217  to read:
  218         627.6512 Exemption of certain group health insurance
  219  policies.—Sections 627.6561, 627.65615, 627.65625, and 627.6571
  220  do not apply to:
  221         (1) any group insurance policy in relation to its provision
  222  of excepted benefits described in s. 627.6513(1)-(14) s.
  223  627.6561(5)(b).
  224         (2) Any group health insurance policy in relation to its
  225  provision of excepted benefits described in s. 627.6561(5)(c),
  226  if the benefits:
  227         (a) Are provided under a separate policy, certificate, or
  228  contract of insurance; or
  229         (b) Are otherwise not an integral part of the policy.
  230         (3) Any group health insurance policy in relation to its
  231  provision of excepted benefits described in s. 627.6561(5)(d),
  232  if all of the following conditions are met:
  233         (a) The benefits are provided under a separate policy,
  234  certificate, or contract of insurance;
  235         (b) There is no coordination between the provision of such
  236  benefits and any exclusion of benefits under any group policy
  237  maintained by the same policyholder; and
  238         (c) Such benefits are paid with respect to an event without
  239  regard to whether benefits are provided with respect to such an
  240  event under any group health policy maintained by the same
  241  policyholder.
  242         (4) Any group health policy in relation to its provision of
  243  excepted benefits described in s. 627.6561(5)(e), if the
  244  benefits are provided under a separate policy, certificate, or
  245  contract of insurance.
  246         Section 13. Section 627.6513, Florida Statutes, is amended
  247  to read:
  248         627.6513 Scope.—Section 641.312 and the provisions of the
  249  Employee Retirement Income Security Act of 1974, as implemented
  250  by 29 C.F.R. s. 2560.503-1, relating to internal grievances,
  251  apply to all group health insurance policies issued under this
  252  part. This section does not apply to a group health insurance
  253  policy that is subject to the Subscriber Assistance Program in
  254  s. 408.7056 or to: the types of benefits or coverages provided
  255  under s. 627.6561(5)(b)-(e) issued in any market.
  256         (1) Coverage only for accident insurance or disability
  257  income insurance, or any combination thereof.
  258         (2) Coverage issued as a supplement to liability insurance.
  259         (3) Liability insurance, including general liability
  260  insurance and automobile liability insurance.
  261         (4) Workers’ compensation or similar insurance.
  262         (5) Automobile medical payment insurance.
  263         (6) Credit-only insurance.
  264         (7) Coverage for onsite medical clinics, including prepaid
  265  health clinics under part II of chapter 641.
  266         (8)Other similar insurance coverage, specified in rules
  267  adopted by the commission, under which benefits for medical care
  268  are secondary or incidental to other insurance benefits. To the
  269  extent possible, such rules must be consistent with regulations
  270  adopted by the United States Department of Health and Human
  271  Services.
  272         (9) Limited scope dental or vision benefits, if offered
  273  separately.
  274         (10) Benefits for long-term care, nursing home care, home
  275  health care, or community-based care, or any combination
  276  thereof, if offered separately.
  277         (11) Other similar limited benefits, if offered separately,
  278  as specified in rules adopted by the commission.
  279         (12) Coverage only for a specified disease or illness, if
  280  offered as independent, noncoordinated benefits.
  281         (13) Hospital indemnity or other fixed indemnity insurance,
  282  if offered as independent, noncoordinated benefits.
  283         (14) Benefits provided through a Medicare supplemental
  284  health insurance policy, as defined under s. 1882(g)(1) of the
  285  Social Security Act, coverage supplemental to the coverage
  286  provided under 10 U.S.C. chapter 55, and similar supplemental
  287  coverage provided to coverage under a group health plan, which
  288  are offered as a separate insurance policy and as independent,
  289  noncoordinated benefits.
  290         Section 14. Section 627.6561, Florida Statutes, is
  291  repealed.
  292         Section 15. Subsection (3) of section 627.6562, Florida
  293  Statutes, is amended to read:
  294         627.6562 Dependent coverage.—
  295         (3) If, pursuant to subsection (2), a child is provided
  296  coverage under the parent’s policy after the end of the calendar
  297  year in which the child reaches age 25 and coverage for the
  298  child is subsequently terminated, the child is not eligible to
  299  be covered under the parent’s policy unless the child was
  300  continuously covered by other creditable coverage without a gap
  301  in coverage of more than 63 days.
  302         (a) For the purposes of this subsection, the term
  303  “creditable coverage” means, with respect to an individual,
  304  coverage of the individual under any of the following: has the
  305  same meaning as provided in s. 627.6561(5).
  306         1. A group health plan, as defined in s. 2791 of the Public
  307  Health Service Act.
  308         2. Health insurance coverage consisting of medical care
  309  provided directly through insurance or reimbursement or
  310  otherwise, and including terms and services paid for as medical
  311  care, under any hospital or medical service policy or
  312  certificate, hospital or medical service plan contract, or
  313  health maintenance contract offered by a health insurance
  314  issuer.
  315         3. Part A or part B of Title XVIII of the Social Security
  316  Act.
  317         4. Title XIX of the Social Security Act, other than
  318  coverage consisting solely of benefits under s. 1928.
  319         5. 10 U.S.C. chapter 55.
  320         6. A medical care program of the Indian Health Service or
  321  of a tribal organization.
  322         7. The Florida Comprehensive Health Association or another
  323  state health benefit risk pool.
  324         8. A health plan offered under 5 U.S.C. chapter 89.
  325         9. A public health plan as defined by rules adopted by the
  326  commission. To the greatest extent possible, such rules must be
  327  consistent with regulations adopted by the United States
  328  Department of Health and Human Services.
  329         10. A health benefit plan under s. 5(e) of the Peace Corps
  330  Act, 22 U.S.C. s. 2504(e).
  331         (b) Creditable coverage does not include coverage that
  332  consists of one or more, or any combination thereof, of the
  333  following excepted benefits:
  334         1. Coverage only for accident insurance or disability
  335  income insurance, or any combination thereof.
  336         2. Coverage issued as a supplement to liability insurance.
  337         3. Liability insurance, including general liability
  338  insurance and automobile liability insurance.
  339         4. Workers’ compensation or similar insurance.
  340         5. Automobile medical payment insurance.
  341         6. Credit-only insurance.
  342         7. Coverage for onsite medical clinics, including prepaid
  343  health clinics under part II of chapter 641.
  344         8. Other similar insurance coverage specified in rules
  345  adopted by the commission under which benefits for medical care
  346  are secondary or incidental to other insurance benefits. To the
  347  extent possible, such rules must be consistent with regulations
  348  adopted by the United States Department of Health and Human
  349  Services.
  350         (c) The following benefits are not subject to the
  351  creditable coverage requirements, if offered separately:
  352         1. Limited scope dental or vision benefits.
  353         2. Benefits for long-term care, nursing home care, home
  354  health care, or community-based care, or any combination
  355  thereof.
  356         3. Other similar, limited benefits specified in rules
  357  adopted by the commission.
  358         (d) The following benefits are not subject to creditable
  359  coverage requirements if offered as independent, noncoordinated
  360  benefits:
  361         1. Coverage only for a specified disease or illness.
  362         2. Hospital indemnity or other fixed indemnity insurance.
  363         (e) Benefits provided through a Medicare supplemental
  364  health insurance policy, as defined under s. 1882(g)(1) of the
  365  Social Security Act, coverage supplemental to the coverage
  366  provided under 10 U.S.C. chapter 55, and similar supplemental
  367  coverage provided to coverage under a group health plan are not
  368  considered creditable coverage if offered as a separate
  369  insurance policy.
  370         Section 16. Subsection (1) of section 627.65626, Florida
  371  Statutes, is amended to read:
  372         627.65626 Insurance rebates for healthy lifestyles.—
  373         (1) Any rate, rating schedule, or rating manual for a
  374  health insurance policy that provides creditable coverage as
  375  defined in s. 627.6562(3) s. 627.6561(5) filed with the office
  376  shall provide for an appropriate rebate of premiums paid in the
  377  last policy year, contract year, or calendar year when the
  378  majority of members of a health plan have enrolled and
  379  maintained participation in any health wellness, maintenance, or
  380  improvement program offered by the group policyholder and health
  381  plan. The rebate may be based upon premiums paid in the last
  382  calendar year or policy year. The group must provide evidence of
  383  demonstrative maintenance or improvement of the enrollees’
  384  health status as determined by assessments of agreed-upon health
  385  status indicators between the policyholder and the health
  386  insurer, including, but not limited to, reduction in weight,
  387  body mass index, and smoking cessation. The group or health
  388  insurer may contract with a third-party administrator to
  389  assemble and report the health status required in this
  390  subsection between the policyholder and the health insurer. Any
  391  rebate provided by the health insurer is presumed to be
  392  appropriate unless credible data demonstrates otherwise, or
  393  unless the rebate program requires the insured to incur costs to
  394  qualify for the rebate which equal or exceed the value of the
  395  rebate, but the rebate may not exceed 10 percent of paid
  396  premiums.
  397         Section 17. Paragraphs (e), (l), and (n) of subsection (3),
  398  paragraphs (c) and (d) of subsection (5), and paragraph (b) of
  399  subsection (6) of section 627.6699, Florida Statutes, are
  400  amended to read:
  401         627.6699 Employee Health Care Access Act.—
  402         (3) DEFINITIONS.—As used in this section, the term:
  403         (e) “Creditable coverage” has the same meaning ascribed in
  404  s. 627.6562(3) s. 627.6561.
  405         (l) “Late enrollee” means an eligible employee or dependent
  406  who, with respect to coverage under a group health policy, is a
  407  participant or beneficiary who enrolls under the policy other
  408  than during:
  409         1. The first period in which the individual is eligible to
  410  enroll under the policy.
  411         2. A special enrollment period, as provided under s.
  412  627.65615 as defined under s. 627.6561(1)(b).
  413         (n) “Modified community rating” means a method used to
  414  develop carrier premiums which spreads financial risk across a
  415  large population; allows the use of separate rating factors for
  416  age, gender, family composition, tobacco usage, and geographic
  417  area as determined under paragraph (5)(e) (5)(f); and allows
  418  adjustments for: claims experience, health status, or duration
  419  of coverage as permitted under subparagraph (6)(b)5.; and
  420  administrative and acquisition expenses as permitted under
  421  subparagraph (6)(b)5.
  422         (5) AVAILABILITY OF COVERAGE.—
  423         (c) Except as provided in paragraph (d), a health benefit
  424  plan covering small employers must comply with preexisting
  425  condition provisions specified in s. 627.6561 or, for health
  426  maintenance contracts, in s. 641.31071.
  427         (c)(d) A health benefit plan covering small employers,
  428  issued or renewed on or after January 1, 1994, must comply with
  429  the following conditions:
  430         1. All health benefit plans must be offered and issued on a
  431  guaranteed-issue basis. Additional or increased benefits may
  432  only be offered by riders.
  433         2. Paragraph (c) applies to health benefit plans issued to
  434  a small employer who has two or more eligible employees and to
  435  health benefit plans that are issued to a small employer who has
  436  fewer than two eligible employees and that cover an employee who
  437  has had creditable coverage continually to a date not more than
  438  63 days before the effective date of the new coverage.
  439         2.3. For health benefit plans that are issued to a small
  440  employer who has fewer than two employees and that cover an
  441  employee who has not been continually covered by creditable
  442  coverage within 63 days before the effective date of the new
  443  coverage, preexisting condition provisions must not exclude
  444  coverage for a period beyond 24 months following the employee’s
  445  effective date of coverage and may relate only to:
  446         a. Conditions that, during the 24-month period immediately
  447  preceding the effective date of coverage, had manifested
  448  themselves in such a manner as would cause an ordinarily prudent
  449  person to seek medical advice, diagnosis, care, or treatment or
  450  for which medical advice, diagnosis, care, or treatment was
  451  recommended or received; or
  452         b. A pregnancy existing on the effective date of coverage.
  453         (6) RESTRICTIONS RELATING TO PREMIUM RATES.—
  454         (b) For all small employer health benefit plans that are
  455  subject to this section and issued by small employer carriers on
  456  or after January 1, 1994, premium rates for health benefit plans
  457  are subject to the following:
  458         1. Small employer carriers must use a modified community
  459  rating methodology in which the premium for each small employer
  460  is determined solely on the basis of the eligible employee’s and
  461  eligible dependent’s gender, age, family composition, tobacco
  462  use, or geographic area as determined under paragraph (5)(e)
  463  (5)(f) and in which the premium may be adjusted as permitted by
  464  this paragraph. A small employer carrier is not required to use
  465  gender as a rating factor for a nongrandfathered health plan.
  466         2. Rating factors related to age, gender, family
  467  composition, tobacco use, or geographic location may be
  468  developed by each carrier to reflect the carrier’s experience.
  469  The factors used by carriers are subject to office review and
  470  approval.
  471         3. Small employer carriers may not modify the rate for a
  472  small employer for 12 months from the initial issue date or
  473  renewal date, unless the composition of the group changes or
  474  benefits are changed. However, a small employer carrier may
  475  modify the rate one time within the 12 months after the initial
  476  issue date for a small employer who enrolls under a previously
  477  issued group policy that has a common anniversary date for all
  478  employers covered under the policy if:
  479         a. The carrier discloses to the employer in a clear and
  480  conspicuous manner the date of the first renewal and the fact
  481  that the premium may increase on or after that date.
  482         b. The insurer demonstrates to the office that efficiencies
  483  in administration are achieved and reflected in the rates
  484  charged to small employers covered under the policy.
  485         4. A carrier may issue a group health insurance policy to a
  486  small employer health alliance or other group association with
  487  rates that reflect a premium credit for expense savings
  488  attributable to administrative activities being performed by the
  489  alliance or group association if such expense savings are
  490  specifically documented in the insurer’s rate filing and are
  491  approved by the office. Any such credit may not be based on
  492  different morbidity assumptions or on any other factor related
  493  to the health status or claims experience of any person covered
  494  under the policy. This subparagraph does not exempt an alliance
  495  or group association from licensure for activities that require
  496  licensure under the insurance code. A carrier issuing a group
  497  health insurance policy to a small employer health alliance or
  498  other group association shall allow any properly licensed and
  499  appointed agent of that carrier to market and sell the small
  500  employer health alliance or other group association policy. Such
  501  agent shall be paid the usual and customary commission paid to
  502  any agent selling the policy.
  503         5. Any adjustments in rates for claims experience, health
  504  status, or duration of coverage may not be charged to individual
  505  employees or dependents. For a small employer’s policy, such
  506  adjustments may not result in a rate for the small employer
  507  which deviates more than 15 percent from the carrier’s approved
  508  rate. Any such adjustment must be applied uniformly to the rates
  509  charged for all employees and dependents of the small employer.
  510  A small employer carrier may make an adjustment to a small
  511  employer’s renewal premium, up to 10 percent annually, due to
  512  the claims experience, health status, or duration of coverage of
  513  the employees or dependents of the small employer. If the
  514  aggregate resulting from the application of such adjustment
  515  exceeds the premium that would have been charged by application
  516  of the approved modified community rate by 4 percent for the
  517  current policy term, the carrier shall limit the application of
  518  such adjustments only to minus adjustments. For any subsequent
  519  policy term, if the total aggregate adjusted premium actually
  520  charged does not exceed the premium that would have been charged
  521  by application of the approved modified community rate by 4
  522  percent, the carrier may apply both plus and minus adjustments.
  523  A small employer carrier may provide a credit to a small
  524  employer’s premium based on administrative and acquisition
  525  expense differences resulting from the size of the group. Group
  526  size administrative and acquisition expense factors may be
  527  developed by each carrier to reflect the carrier’s experience
  528  and are subject to office review and approval.
  529         6. A small employer carrier rating methodology may include
  530  separate rating categories for one dependent child, for two
  531  dependent children, and for three or more dependent children for
  532  family coverage of employees having a spouse and dependent
  533  children or employees having dependent children only. A small
  534  employer carrier may have fewer, but not greater, numbers of
  535  categories for dependent children than those specified in this
  536  subparagraph.
  537         7. Small employer carriers may not use a composite rating
  538  methodology to rate a small employer with fewer than 10
  539  employees. For the purposes of this subparagraph, the term
  540  “composite rating methodology” means a rating methodology that
  541  averages the impact of the rating factors for age and gender in
  542  the premiums charged to all of the employees of a small
  543  employer.
  544         8. A carrier may separate the experience of small employer
  545  groups with fewer than 2 eligible employees from the experience
  546  of small employer groups with 2-50 eligible employees for
  547  purposes of determining an alternative modified community
  548  rating.
  549         a. If a carrier separates the experience of small employer
  550  groups, the rate to be charged to small employer groups of fewer
  551  than 2 eligible employees may not exceed 150 percent of the rate
  552  determined for small employer groups of 2-50 eligible employees.
  553  However, the carrier may charge excess losses of the experience
  554  pool consisting of small employer groups with less than 2
  555  eligible employees to the experience pool consisting of small
  556  employer groups with 2-50 eligible employees so that all losses
  557  are allocated and the 150-percent rate limit on the experience
  558  pool consisting of small employer groups with less than 2
  559  eligible employees is maintained.
  560         b. Notwithstanding s. 627.411(1), the rate to be charged to
  561  a small employer group of fewer than 2 eligible employees,
  562  insured as of July 1, 2002, may be up to 125 percent of the rate
  563  determined for small employer groups of 2-50 eligible employees
  564  for the first annual renewal and 150 percent for subsequent
  565  annual renewals.
  566         9. A carrier shall separate the experience of grandfathered
  567  health plans from nongrandfathered health plans for determining
  568  rates.
  569         Section 18. Subsection (1) and paragraph (c) of subsection
  570  (2) of section 627.6741, Florida Statutes, are amended to read:
  571         627.6741 Issuance, cancellation, nonrenewal, and
  572  replacement.—
  573         (1)(a) An insurer issuing Medicare supplement policies in
  574  this state shall offer the opportunity of enrolling in a
  575  Medicare supplement policy, without conditioning the issuance or
  576  effectiveness of the policy on, and without discriminating in
  577  the price of the policy based on, the medical or health status
  578  or receipt of health care by the individual:
  579         1. To any individual who is 65 years of age or older, or
  580  under 65 years of age and eligible for Medicare by reason of
  581  disability or end-stage renal disease, and who resides in this
  582  state, upon the request of the individual during the 6-month
  583  period beginning with the first month in which the individual
  584  has attained 65 years of age and is enrolled in Medicare Part B,
  585  or is eligible for Medicare by reason of a disability or end
  586  stage renal disease, and is enrolled in Medicare Part B; or
  587         2. To any individual who is 65 years of age or older, or
  588  under 65 years of age and eligible for Medicare by reason of a
  589  disability or end-stage renal disease, who is enrolled in
  590  Medicare Part B, and who resides in this state, upon the request
  591  of the individual during the 2-month period following
  592  termination of coverage under a group health insurance policy.
  593         (b) The 6-month period to enroll in a Medicare supplement
  594  policy for an individual who is under 65 years of age and is
  595  eligible for Medicare by reason of disability or end-stage renal
  596  disease and otherwise eligible under subparagraph (a)1. or
  597  subparagraph (a)2. and first enrolled in Medicare Part B before
  598  October 1, 2009, begins on October 1, 2009.
  599         (c) A company that has offered Medicare supplement policies
  600  to individuals under 65 years of age who are eligible for
  601  Medicare by reason of disability or end-stage renal disease
  602  before October 1, 2009, may, for one time only, effect a rate
  603  schedule change that redefines the age bands of the premium
  604  classes without activating the period of discontinuance required
  605  by s. 627.410(6)(e)2.
  606         (d) As a part of an insurer’s rate filings, before and
  607  including the insurer’s first rate filing for a block of policy
  608  forms in 2015, notwithstanding the provisions of s.
  609  627.410(6)(e)3., an insurer shall consider the experience of the
  610  policies or certificates for the premium classes including
  611  individuals under 65 years of age and eligible for Medicare by
  612  reason of disability or end-stage renal disease separately from
  613  the balance of the block so as not to affect the other premium
  614  classes. For filings in such time period only, credibility of
  615  that experience shall be as follows: if a block of policy forms
  616  has 1,250 or more policies or certificates in force in the age
  617  band including ages under 65 years of age, full or 100-percent
  618  credibility shall be given to the experience; and if fewer than
  619  250 policies or certificates are in force, no or zero-percent
  620  credibility shall be given. Linear interpolation shall be used
  621  for in-force amounts between the low and high values. Florida
  622  only experience shall be used if it is 100-percent credible. If
  623  Florida-only experience is not 100-percent credible, a
  624  combination of Florida-only and nationwide experience shall be
  625  used. If Florida-only experience is zero-percent credible,
  626  nationwide experience shall be used. The insurer may file its
  627  initial rates and any rate adjustment based upon the experience
  628  of these policies or certificates or based upon expected claim
  629  experience using experience data of the same company, other
  630  companies in the same or other states, or using data publicly
  631  available from the Centers for Medicaid and Medicare Services if
  632  the insurer’s combined Florida and nationwide experience is not
  633  100-percent credible, separate from the balance of all other
  634  Medicare supplement policies.
  635  
  636  A Medicare supplement policy issued to an individual under
  637  subparagraph (a)1. or subparagraph (a)2. may not exclude
  638  benefits based on a preexisting condition if the individual has
  639  a continuous period of creditable coverage, as defined in s.
  640  627.6562(3) s. 627.6561(5), of at least 6 months as of the date
  641  of application for coverage.
  642         (2) For both individual and group Medicare supplement
  643  policies:
  644         (c) If a Medicare supplement policy or certificate replaces
  645  another Medicare supplement policy or certificate or creditable
  646  coverage as defined in s. 627.6562(3) s. 627.6561(5), the
  647  replacing insurer shall waive any time periods applicable to
  648  preexisting conditions, waiting periods, elimination periods,
  649  and probationary periods in the new Medicare supplement policy
  650  for similar benefits to the extent such time was spent under the
  651  original policy, subject to the requirements of s. 627.6561(6)
  652  (11).
  653         Section 19. Paragraphs (f) and (h) of subsection (1) of
  654  section 641.185, Florida Statutes, are amended to read:
  655         641.185 Health maintenance organization subscriber
  656  protections.—
  657         (1) With respect to the provisions of this part and part
  658  III, the principles expressed in the following statements shall
  659  serve as standards to be followed by the commission, the office,
  660  the department, and the Agency for Health Care Administration in
  661  exercising their powers and duties, in exercising administrative
  662  discretion, in administrative interpretations of the law, in
  663  enforcing its provisions, and in adopting rules:
  664         (f) A health maintenance organization subscriber should
  665  receive the flexibility to transfer to another Florida health
  666  maintenance organization, regardless of health status, pursuant
  667  to ss. 641.228, 641.3104, 641.3107, 641.3111, 641.3921, and
  668  641.3922.
  669         (h) A health maintenance organization that issues a group
  670  health contract must: provide coverage for preexisting
  671  conditions pursuant to s. 641.31071; guarantee renewability of
  672  coverage pursuant to s. 641.31074,; provide notice of
  673  cancellation pursuant to s. 641.3108,; provide extension of
  674  benefits pursuant to s. 641.3111,; provide for conversion on
  675  termination of eligibility pursuant to s. 641.3921,; and provide
  676  for conversion contracts and conditions pursuant to s. 641.3922.
  677         Section 20. Subsection (2) and paragraph (a) of subsection
  678  (40) of section 641.31, Florida Statutes, are amended to read:
  679         641.31 Health maintenance contracts.—
  680         (2) The rates charged by any health maintenance
  681  organization to its subscribers shall not be excessive,
  682  inadequate, or unfairly discriminatory or follow a rating
  683  methodology that is inconsistent, indeterminate, or ambiguous or
  684  encourages misrepresentation or misunderstanding. A law
  685  restricting or limiting deductibles, coinsurance, copayments, or
  686  annual or lifetime maximum payments shall not apply to any
  687  health maintenance organization contract that provides coverage
  688  as described in s. 641.31071(5)(a)2., offered or delivered to an
  689  individual or a group of 51 or more persons. The commission, in
  690  accordance with generally accepted actuarial practice as applied
  691  to health maintenance organizations, may define by rule what
  692  constitutes excessive, inadequate, or unfairly discriminatory
  693  rates and may require whatever information it deems necessary to
  694  determine that a rate or proposed rate meets the requirements of
  695  this subsection.
  696         (40)(a) Any group rate, rating schedule, or rating manual
  697  for a health maintenance organization policy, which provides
  698  creditable coverage as defined in s. 627.6562(3) s. 627.6561(5),
  699  filed with the office shall provide for an appropriate rebate of
  700  premiums paid in the last policy year, contract year, or
  701  calendar year when the majority of members of a health plan are
  702  enrolled in and have maintained participation in any health
  703  wellness, maintenance, or improvement program offered by the
  704  group contract holder. The group must provide evidence of
  705  demonstrative maintenance or improvement of his or her health
  706  status as determined by assessments of agreed-upon health status
  707  indicators between the group and the health insurer, including,
  708  but not limited to, reduction in weight, body mass index, and
  709  smoking cessation. Any rebate provided by the health maintenance
  710  organization is presumed to be appropriate unless credible data
  711  demonstrates otherwise, or unless the rebate program requires
  712  the insured to incur costs to qualify for the rebate which
  713  equals or exceeds the value of the rebate but the rebate may not
  714  exceed 10 percent of paid premiums.
  715         Section 21. Section 641.31071, Florida Statutes, is
  716  repealed.
  717         Section 22. Subsection (4) of section 641.3111, Florida
  718  Statutes, is amended to read:
  719         641.3111 Extension of benefits.—
  720         (4) Except as provided in subsection (1), no subscriber is
  721  entitled to an extension of benefits if the termination of the
  722  contract by the health maintenance organization is based upon
  723  any event referred to in s. 641.3922(7)(a), (b), or (e).
  724         Section 23. Section 641.312, Florida Statutes, is amended
  725  to read:
  726         641.312 Scope.—The Office of Insurance Regulation may adopt
  727  rules to administer the provisions of the National Association
  728  of Insurance Commissioners’ Uniform Health Carrier External
  729  Review Model Act, issued by the National Association of
  730  Insurance Commissioners and dated April 2010. This section does
  731  not apply to a health maintenance contract that is subject to
  732  the Subscriber Assistance Program under s. 408.7056 or to the
  733  types of benefits or coverages provided under s. 627.6513(1)
  734  (14) s. 627.6561(5)(b)-(e) issued in any market.
  735         Section 24. This act shall take effect July 1, 2016.
  736  
  737  ================= T I T L E  A M E N D M E N T ================
  738  And the title is amended as follows:
  739         Delete everything before the enacting clause
  740  and insert:
  741                        A bill to be entitled                      
  742         An act relating to health plan regulatory
  743         administration; amending s. 408.909, F.S.; redefining
  744         the term “health care coverage” or “health flex plan
  745         coverage”; amending s. 409.817, F.S.; deleting a
  746         provision authorizing group insurance plans to impose
  747         a certain preexisting condition exclusion; amending s.
  748         624.123, F.S.; conforming a cross-reference; amending
  749         s. 627.402, F.S.; redefining the term
  750         “nongrandfathered health plan”; amending s. 627.411,
  751         F.S.; deleting a provision relating to a minimum loss
  752         ratio standard for specified health insurance
  753         coverage; deleting provisions specifying certain
  754         incurred claims; amending s. 627.6011, F.S.,
  755         conforming a cross-reference; amending s. 627.602,
  756         F.S.; conforming a cross-reference; amending s.
  757         627.642, F.S.; revising the policies to which certain
  758         outline of coverage requirements apply; amending s.
  759         627.6425, F.S.; redefining the term “individual health
  760         insurance”; revising applicability; amending s.
  761         627.6487, F.S.; redefining terms; repealing s.
  762         627.64871, F.S., relating to certification of
  763         coverage; amending s. 627.6512, F.S.; revising a
  764         provision specifying that certain sections of the
  765         Florida Insurance Code do not apply to a group health
  766         insurance policy as that policy relates to specified
  767         benefits, under certain circumstances; amending s.
  768         627.6513, F.S.; excluding applicability as to certain
  769         types of benefits or coverages; repealing s. 627.6561,
  770         F.S., relating to preexisting conditions; amending s.
  771         627.6562, F.S.; redefining the term “creditable
  772         coverage”; providing exceptions and applicability;
  773         amending s. 627.65626, F.S.; conforming a cross
  774         reference; amending s. 627.6699, F.S.; redefining
  775         terms; deleting a provision that requires a certain
  776         health benefit plan to comply with specified
  777         preexisting condition provisions; conforming
  778         provisions to changes made by the act; amending s.
  779         627.6741, F.S.; conforming cross-references;
  780         conforming a provision to changes made by the act;
  781         amending s. 641.185, F.S.; revising certain standards
  782         to remove requirements for a health maintenance
  783         organization to provide specified coverage for
  784         preexisting conditions; conforming provisions to
  785         changes made by the act; amending s. 641.31, F.S.;
  786         deleting a provision specifying that a law restricting
  787         or limiting deductibles, coinsurance, copayments, or
  788         annual or lifetime maximum payments may not apply to a
  789         certain health maintenance organization contract;
  790         conforming a cross-reference; repealing s. 641.31071,
  791         F.S., relating to preexisting conditions; amending s.
  792         641.3111, F.S.; deleting a provision specifying that a
  793         subscriber is not entitled to an extension of benefits
  794         under certain circumstances after termination of a
  795         group health maintenance contract; amending s.
  796         641.312, F.S.; conforming a cross-reference; providing
  797         an effective date.