Senate Bill 1296

CODING: Words stricken are deletions; words underlined are additions.



    Florida Senate - 1998                                  SB 1296

    By Senator Gutman





    34-1335-98

  1                      A bill to be entitled

  2         An act relating to insurance; amending s.

  3         627.736, F.S.; authorizing insurers to contract

  4         with preferred providers to provide personal

  5         injury protection benefits; providing for a

  6         reduced premium rate; providing coverage;

  7         providing an election form; providing a

  8         presumption; authorizing the Department of

  9         Insurance to adopt rules; providing

10         definitions; specifying procedures; providing

11         an effective date.

12

13  Be It Enacted by the Legislature of the State of Florida:

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15         Section 1.  Subsection (10) of section 627.736, Florida

16  Statutes, 1996 Supplement, is amended to read:

17         627.736  Required personal injury protection benefits;

18  exclusions; priority.--

19         (10)(a)  An insurer may negotiate and enter into

20  contracts with licensed health care providers directly or

21  indirectly through contracts with entities eligible under s.

22  440.134(1)(g) for the benefits described in this section,

23  referred to in this section as "preferred providers," which

24  shall include health care providers licensed under chapters

25  458, 459, 460, 461, and 463, and 466. The insurer may provide

26  an option to an insured to use a preferred provider at the

27  time of purchase of the policy for personal injury protection

28  benefits, referred to as a "preferred provider policy," if the

29  requirements of this subsection are met. The preferred

30  provider policy must be offered at a reduced premium rate. If

31  the insured elects to use a provider who is not a preferred

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    Florida Senate - 1998                                  SB 1296
    34-1335-98




  1  provider, whether the insured purchased a preferred provider

  2  policy or a nonpreferred provider policy, the medical benefits

  3  provided by the insurer shall be as required by this section.

  4  If the insured elects to use a provider who is a preferred

  5  provider, the insurer may pay or provide medical benefits in

  6  excess of the benefits required by this section and may waive

  7  or lower the amount of any deductible or coinsurance that

  8  applies to such medical benefits. The preferred provider

  9  policy may provide that, other than for emergency service and

10  care as defined in s. 395.002, if the insured elects to use a

11  provider who is not a preferred provider, the insurer may

12  apply a deductible and co-insurance that are greater than

13  those provided by ss. 627.736(1)(a) and 627.739.  If the

14  insurer offers a preferred provider policy to a policyholder

15  or applicant, it must also offer a nonpreferred provider

16  policy. If a named insured selects a preferred provider

17  policy, such election is binding on any person who is entitled

18  to coverage under the named insured's policy. If an election

19  form is signed by any named insured, it is conclusively

20  presumed as to both the insurer and the agent that there was

21  an informed, knowing selection of coverage under this

22  subsection on behalf of all insureds. Such selection shall

23  apply to any policy that renews, extends, changes, supersedes,

24  or replaces an existing policy unless the named insured

25  requests deletion of the preferred provider option in writing

26  and pays the appropriate premium for the nonpreferred provider

27  policy.  The insurer shall provide each policyholder with a

28  current roster of preferred providers in the county in which

29  the insured resides at the time of purchase of such policy,

30  and shall make such list available for public inspection

31  during regular business hours at the principal office of the

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    Florida Senate - 1998                                  SB 1296
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  1  insurer within the state. The department may adopt rules to

  2  administer this subsection, including rules prescribing

  3  deductibles and co-insurance under the preferred provider

  4  policy and the form and manner for the selection of the

  5  preferred provider policy.

  6         (b)  After the insurer has received authorization from

  7  the Agency for Health Care Administration pursuant to the

  8  procedures and criteria in s. 440.134(2)(a) and (3)-(15), the

  9  insurer may contract directly or indirectly with any entity

10  that is eligible under s. 440.134(1)(g) to provide or manage

11  appropriate remedial treatment, care, and attendance to

12  insureds under this subsection. The authorization may be

13  suspended as provided in s. 440.134(18)-(22). For purposes of

14  this subsection, references in s. 440.134(1)(l) to the terms

15  "injured worker" and "employee" mean an insured, and the term

16  "workers' compensation managed care arrangement" means a

17  preferred provider policy arrangement.

18         Section 2.  This act shall take effect July 1, 1998.

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21                          SENATE SUMMARY

22    Authorizes insurers to contract with preferred providers
      to provide personal injury protection benefits. Provides
23    for a reduced premium rate. Provides coverage. Provides
      an election form. Provides a presumption. Authorizes the
24    Department of Insurance to adopt rules. Provides
      definitions. Specifies procedures.
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