Florida Senate - 2018                                     SB 364
       
       
        
       By Senator Grimsley
       
       
       
       
       
       26-00394A-18                                           2018364__
    1                        A bill to be entitled                      
    2         An act relating to the state group health insurance
    3         and prescription drug programs; amending s. 110.1228,
    4         F.S.; defining the term “water management district”;
    5         authorizing a water management district to participate
    6         in the state group health insurance program and the
    7         prescription drug coverage program upon the
    8         affirmative vote of a district’s governing board;
    9         establishing conditions and restrictions regarding
   10         participation; providing that monthly premium amounts
   11         be based on an actuarial analysis conducted by the
   12         Department of Management Services; requiring small
   13         counties, small municipalities, district school
   14         boards, and water management districts participating
   15         in the programs to bear the costs of the actuarial
   16         analysis; conforming provisions to changes made by the
   17         act; amending s. 373.605, F.S.; conforming a
   18         provision; providing an effective date.
   19          
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Section 110.1228, Florida Statutes, is amended
   23  to read:
   24         110.1228 Participation by small counties, small
   25  municipalities, and district school boards, and water management
   26  districts located in small counties.—
   27         (1) As used in this section, the term:
   28         (a) “District school board” means a district school board
   29  located in a small county or a district school board that
   30  receives funding pursuant to s. 1011.62(7).
   31         (b) “Small municipality” means an incorporated municipality
   32  that has a population of 12,500 or fewer according to the most
   33  recent decennial census.
   34         (c) “Small county” means a county that has a population of
   35  100,000 or fewer according to the most recent decennial census.
   36         (d)“Water management district” has the same meaning as in
   37  s. 373.019.
   38         (2) The governing body of a small county, or small
   39  municipality, or water management district or a district school
   40  board may apply for participation in the state group health
   41  insurance program authorized in s. 110.123 and the prescription
   42  drug coverage program authorized by s. 110.12315 by submitting
   43  an application along with a $500 nonrefundable fee to the
   44  department.
   45         (3) Any costs or savings to the state group health
   46  insurance program or the prescription drug coverage program
   47  resulting from such participation shall be passed on to the
   48  local government and water management district participants and
   49  their employees. Such costs or savings shall be delineated based
   50  on the impact to the state, state officers and employees, and
   51  local government employers and their employees, and water
   52  management districts and their employees.
   53         (4) As a prerequisite to the adoption of an ordinance or
   54  resolution or the affirmative vote of a governing board, for
   55  participation in the state group health insurance program and
   56  prescription drug coverage program, a small county, small
   57  municipality, or district school board, or water management
   58  district shall issue a request for proposals to provide health
   59  insurance and prescription drug coverage. Such request for
   60  proposals shall seek coverages equivalent to those offered
   61  currently by the small county, small municipality, or district
   62  school board, or water management district and coverages
   63  equivalent to the state group health insurance program and
   64  prescription drug coverage program. Such request for proposals
   65  must provide an opportunity for the receipt of competitive
   66  proposals from all interested parties without restriction. The
   67  small county, small municipality, and district school board, and
   68  water management district shall review and consider all
   69  responsive proposals before prior to the adoption of any
   70  ordinance or resolution or the affirmative vote of any governing
   71  board for participation in the state group health insurance
   72  program and prescription drug coverage program.
   73         (5) If the department determines that a small county, small
   74  municipality, or district school board, or water management
   75  district is eligible to enroll, the small county, small
   76  municipality, or district school board, or water management
   77  district must agree to the following terms and conditions:
   78         (a) The minimum enrollment or contractual period will be 3
   79  years.
   80         (b) The small county, small municipality, or district
   81  school board, or water management district must pay to the
   82  department an initial administrative fee of not less than $2.61
   83  per enrollee per month, or such other amount established
   84  annually to fully reimburse the department for its costs.
   85         (c) Termination of participation of a small county, small
   86  municipality, or district school board, or water management
   87  district requires written notice 1 year before the termination
   88  date.
   89         (d) If participation is terminated, a small county, small
   90  municipality, or district school board, or water management
   91  district may not reapply for participation for a period of 2
   92  years.
   93         (e) Small counties, small municipalities, and district
   94  school boards, and water management districts shall reimburse
   95  the state for 100 percent of its costs, including administrative
   96  costs.
   97         (f) If a small county, small municipality, or district
   98  school board employer, or water management district fails to
   99  make the payments required by this section to fully reimburse
  100  the state, the Department of Revenue or the Department of
  101  Financial Services shall, upon the request of the Department of
  102  Management Services, deduct the amount owed by the employer from
  103  any funds not pledged to bond debt service satisfaction that are
  104  to be distributed by it to the small county, small municipality,
  105  or district school board, or water management district. The
  106  amounts so deducted shall be transferred to the Department of
  107  Management Services for further distribution to the trust funds
  108  in accordance with this chapter.
  109         (g) The small county, small municipality, or district
  110  school board, or water management district shall furnish the
  111  department any information requested by the department which the
  112  department considers necessary to administer the state group
  113  health insurance program and the prescription drug coverage
  114  program.
  115         (h) The small county, small municipality, or district
  116  school board, or water management district shall adopt the
  117  state’s eligibility rules.
  118         (i) The small county, small municipality, or district
  119  school board, or water management district may not participate
  120  in the state’s cafeteria plan that allows for pretax treatment
  121  of premium contributions. If pretax treatment is desirable for
  122  employees of these participating employers, each employee of a
  123  participating employer shall execute a salary reduction
  124  agreement with that employer, and each participating employer
  125  shall establish its own cafeteria plan.
  126         (j) The small county, small municipality, or district
  127  school board, or water management district shall pay monthly
  128  premiums in amounts sufficient to cover claims costs, department
  129  administrative costs, and third-party administrative costs and
  130  provide for adequate reserves and cash flow by contributing 3
  131  months’ premiums and costs in advance of the coverage effective
  132  date. The premiums must be established by an actuarial analysis
  133  conducted by the department in which the requesting party is
  134  considered both a distinct health insurance risk pool and as
  135  part of the state group health insurance program risk pool. The
  136  actuarial analysis must be paid for by the participating small
  137  county, small municipality, district school board, or water
  138  management district.
  139         (6) Sections The provisions of ss. 624.436-624.446 do not
  140  apply to the State Group Insurance Program or to this section.
  141         Section 2. Section 373.605, Florida Statutes, is amended to
  142  read:
  143         373.605 Group insurance for water management districts.—The
  144  governing board of a water management district may provide group
  145  insurance for its employees, and the employees of another water
  146  management district, in the same manner and with the same
  147  provisions and limitations authorized for other public employees
  148  under ss. 112.08, 112.09, 112.10, 112.11, and 112.14.
  149  Alternatively, a water management district, after an affirmative
  150  vote of its governing board, may participate in the state group
  151  health insurance program and the prescription drug coverage
  152  program under s. 110.1228.
  153         Section 3. This act shall take effect July 1, 2018.