Senate Bill 1800
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Florida Senate - 1999 SB 1800
By Senator Latvala
19-912B-99
1 A bill to be entitled
2 An act relating to health insurance; creating
3 the Florida Health Endowment Association as a
4 nonprofit entity to provide insurance coverage
5 to individuals whose health insurance has been
6 involuntarily terminated for reasons other than
7 nonpayment of premiums; providing for the
8 association to be governed by a board of
9 directors; providing membership of the board;
10 providing terms of office; providing for the
11 board members to be reimbursed for expenses;
12 providing immunity from liability for board
13 members and employees of the association;
14 requiring the board to adopt a plan and rules
15 to administer the act; providing additional
16 duties of the board; requiring that the board
17 report to the Governor and Legislature each
18 year; specifying the powers of the board;
19 requiring the board to select a plan
20 administrator; specifying the period of service
21 of the administrator; providing duties of the
22 administrator; providing for payment of the
23 administrator for expenses; requiring that the
24 plan offer a renewable policy that provides
25 specified coverage; requiring that the plan
26 offer major medical expense coverage similar to
27 that provided by the state group health
28 insurance program; providing for covered
29 expenses; providing for premiums, deductibles,
30 and coinsurance; requiring that the board
31 establish premium schedules; providing for
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1 payment of coverage if the costs exceed the
2 deductible within a policy year; providing an
3 exclusion for preexisting conditions under
4 specified circumstances; providing for other
5 sources of insurance to be primary; providing a
6 cause of action for the association for the
7 recovery of benefits; providing that the
8 provision of health insurance is not an
9 entitlement; providing for coverage to be
10 insured by the Florida Health Endowment
11 Association; authorizing the board to contract
12 with insurers for disease management services;
13 providing tax credits for insurance companies
14 that contribute to the Florida Health Endowment
15 Association; providing for unused tax credits
16 to be claimed by a transferee; providing for
17 the plan to be terminated if it becomes
18 financially infeasible; repealing ss. 627.648,
19 627.6482, 627.6484, 627.6486, 627.6487,
20 627.64871, 627.6488, 627.6489, 627.649,
21 627.6492, 627.6494, 627.6496, 627.6498, Florida
22 Statutes, contingent upon the opening of the
23 plan; providing an appropriation; providing an
24 effective date.
25
26 Be It Enacted by the Legislature of the State of Florida:
27
28 Section 1. Florida Health Endowment Association.--
29 (1) There is created a nonprofit legal entity to be
30 known as the "Florida Health Endowment Association."
31
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1 (2)(a) The association shall operate subject to the
2 supervision and approval of a five-member board of directors.
3 The board of directors shall be composed as follows:
4 1. The Secretary of Health, or his or her designee,
5 who shall be the chairperson of the board.
6 2. The Insurance Commissioner, or his or her designee.
7 3. The Governor shall appoint three members as
8 follows:
9 a. One representative of policyholders who is not
10 associated with the medical profession or a hospital.
11 b. One representative of the health insurance
12 industry.
13 c. One member of the public.
14
15 The administrator of the plan, or his or her affiliate, may
16 not be a member of the board. Any board member appointed may
17 be removed and replaced by his or her appointor at any time
18 without cause.
19 (b) All board members, including the chairperson,
20 shall be appointed to staggered 3-year terms beginning on a
21 date established in the plan of operation.
22 (c) The board of directors may employ persons to
23 perform the administrative and financial transactions and
24 responsibilities of the association and to perform other
25 necessary and proper functions not prohibited by law.
26 (d) Board members may be reimbursed from moneys of the
27 association for actual and necessary expenses incurred by them
28 as members, but may not otherwise be compensated for their
29 services.
30 (e) There is no liability on the part of, and no cause
31 of action of any nature shall arise against, any employee of
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1 the association, member of the board of directors of the
2 association, or a representative of the Department of Health
3 for any act or omission taken by them in the performance of
4 their powers and duties under this act, unless such act or
5 omission by such person is in intentional disregard of the
6 rights of the claimant.
7 (f) Meetings of the board are subject to section
8 286.011, Florida Statutes.
9 (3) The board of directors of the association shall
10 adopt a plan pursuant to this act and submit its articles,
11 bylaws, and operating rules to the Department of Health for
12 approval. If the board of directors fails to adopt such plan
13 and suitable articles, bylaws, and operating rules within 180
14 days after the appointment of the board, the department shall
15 adopt rules to implement this act, and such rules shall remain
16 in effect until superseded by a plan and articles, bylaws, and
17 operating rules submitted by the board of directors and
18 approved by the department.
19 (4) The board of directors of the association shall:
20 (a) Establish administrative and accounting procedures
21 for the operation of the association.
22 (b) Contract with an actuary to evaluate the pool of
23 insureds in the plan and monitor the financial status of the
24 Florida Health Endowment Trust Fund. The actuary shall
25 recommend to the board the opening and closing of the plan,
26 which must be based on an analysis of the trust fund; the
27 income of the trust fund; and any premiums, deductibles, and
28 coinsurance paid to the association.
29 (c) Establish eligibility requirements for individuals
30 participating in the plan to ensure an actuarially sound
31 insurance pool.
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1 (d) Establish procedures under which applicants and
2 participants in the plan may have grievances reviewed by an
3 impartial body and reported to the board.
4 (e) Select an administrator in accordance with section
5 2 of this act.
6 (f) Require that all policy forms issued by the
7 association conform to standard forms developed by the
8 association. The forms shall be approved by the Department of
9 Insurance.
10 (g) Develop and implement a program to publicize the
11 existence of the plan, the eligibility requirements for the
12 plan, and the procedures for enrollment in the plan, and
13 maintain public awareness of the plan.
14 (h) Design and employ cost-containment measures and
15 requirements that shall include, but are not limited to,
16 preadmission certification, any out-of-state health care, home
17 health care, hospice care, negotiated purchase of medical and
18 pharmaceutical supplies, and individual case management.
19 (i) Contract with preferred provider organizations and
20 health maintenance organizations giving due consideration to
21 the preferred provider organizations. If cost-effective and
22 available in the county where the policyholder resides, the
23 board, upon application or renewal of a policy, shall place a
24 high-risk individual, as established under section 3 of this
25 act, with the plan case manager who shall determine the most
26 cost-effective quality care system or health care provider and
27 shall place the individual in such system or with such health
28 care provider. If cost-effective and available in the county
29 where the policyholder resides, the board, with the consent of
30 the policyholder, may place a low-risk or medium-risk
31 individual, as established under section 3 of this act, with
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1 the plan case manager who may determine the most
2 cost-effective quality care system or health care provider and
3 shall place the individual in such system or with such health
4 care provider. Prior to and during the implementation of case
5 management, the plan case manager shall obtain input from the
6 policyholder, parent, guardian, and health care providers.
7 (j) Employ a case manager or managers to supervise and
8 manage the medical care or coordinate the supervision and
9 management of the medical care of specified individuals. The
10 case manager, with the approval of the board, shall have final
11 approval over the case management for any specific individual.
12 (k) Appoint an executive director to serve as the
13 chief administrative and operational officer of the board and
14 to perform other duties assigned to him or her by the board.
15 (l) Administer the Florida Health Endowment Trust Fund
16 in a manner that is sufficiently actuarially sound to defray
17 the obligations of the program. The board shall annually
18 evaluate or cause to be evaluated the actuarial soundness of
19 the fund. If the board perceives a need for additional assets
20 in order to preserve actuarial soundness, the board may adjust
21 the benefits of the plan to ensure such soundness.
22 (m) Establish a comprehensive investment plan with the
23 approval of the State Board of Administration. The
24 comprehensive investment plan must specify the investment
25 policies to be used by the board in administering the fund.
26 The board may place assets of the fund in savings accounts or
27 use the fund to purchase fixed or variable life insurance or
28 annuity contracts, securities, evidence of indebtedness, or
29 other investment products pursuant to the comprehensive
30 investment plan and in such proportions as are designated or
31 approved under the investment plan. Such insurance, annuity,
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1 savings, or investment products must be underwritten and
2 offered in compliance with the applicable federal and state
3 laws and rules by persons who are authorized by applicable
4 federal and state authorities. Within the comprehensive
5 investment plan, the board may authorize investment vehicles,
6 or products incident thereto, as are available or offered by
7 qualified companies or persons.
8 (n) Solicit proposals and contract, pursuant to
9 section 287.057, Florida Statutes, for a trustee services firm
10 to select and supervise investment programs on behalf of the
11 board. The goals of the board in selecting a trustee services
12 firm shall be to obtain the highest standards of professional
13 trustee services, to allow all qualified firms interested in
14 providing such services equal consideration, and to provide
15 such services to the state at no cost and to the purchasers at
16 the lowest cost possible. The trustee services firm must agree
17 to meet the obligations of the board to qualified
18 beneficiaries if moneys in the fund fail to offset the
19 obligations of the board as a result of imprudent selection or
20 supervision of investment programs by such firm. Evaluations
21 of proposals submitted under this paragraph must include, but
22 not be limited to, the following criteria:
23 1. Adequacy of trustee services for supervising and
24 managing the program, including current operations and staff
25 organization and commitment of management to the proposal.
26 2. Capability to execute plan responsibilities within
27 time and regulatory constraints.
28 3. Past experience in trustee services and current
29 ability to maintain regular and continuous interactions with
30 the board, records administrator, and product provider.
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1 4. The minimum purchaser participation assumed within
2 the proposal and any additional requirements of purchasers.
3 5. Adequacy of technical assistance and services
4 proposed for the staff.
5 6. Adequacy of a management system for evaluating and
6 improving overall trustee services to the plan.
7 7. Adequacy of facilities, equipment, and electronic
8 data processing services.
9 8. Detailed projections of administrative costs of
10 trustee services, including the amount and type of insurance
11 coverage, and detailed projections of total costs.
12 (o) Make a report to the Governor, the President of
13 the Senate, the Speaker of the House of Representatives, and
14 the Minority Leaders of the Senate and the House of
15 Representatives not later than October 1 of each year. The
16 report must summarize the activities of the plan for the
17 12-month period ending December 31 of the previous year,
18 including then-current data and estimates as to net written
19 and earned premiums, the expense of administration, the paid
20 and incurred losses for the year, the financial status of the
21 Florida Health Endowment Trust Fund, and any recommendations
22 by the actuary for the opening or closing of the plan. The
23 report shall also include analysis and recommendations for
24 legislative changes regarding utilization review, quality
25 assurance, an evaluation of the administrator of the plan,
26 access to cost-effective health care, and the cost-containment
27 and case-management policy and recommendations concerning the
28 opening of enrollment.
29 (p) Establish a plan of operation which must include
30 the assumption of all liabilities of the Florida Comprehensive
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1 Health Association and the transition of its remaining
2 policyholders into the plan.
3 (5) The board of directors of the association shall
4 have the powers necessary or proper to carry out the
5 provisions of this act, including, but not limited to, the
6 power to:
7 (a) Adopt an official seal and rules.
8 (b) Exercise powers granted to insurers under the laws
9 of this state.
10 (c) Sue or be sued.
11 (d) Make and execute contracts and other necessary
12 instruments.
13 (e) Prepare or contract for a performance audit of the
14 administrator of the association.
15 (f) Invest funds not required for immediate
16 disbursement.
17 (g) Appear in its own behalf before boards,
18 commissions, or other governmental agencies.
19 (h) Hold, buy, and sell any instruments, obligations,
20 securities, and property determined appropriate by the board.
21 (i) Restrict the number of participants in the plan
22 based on actuarial estimates. However, any person denied
23 participation solely on the basis of such restriction shall be
24 granted priority on a first-come, first-served basis for
25 participation in the succeeding years in which the plan is
26 reopened for participants.
27 (j) Contract for necessary goods and services; employ
28 necessary personnel; and engage the services of private
29 consultants, actuaries, managers, legal counsel, and auditors
30 for administrative or technical assistance.
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1 (k) Solicit and accept gifts, grants, loans, and other
2 aids from any source or participate in any other way in any
3 government program to carry out the purposes of this section.
4 (l) Require and collect administrative fees and
5 charges in connection with any transaction and impose
6 reasonable penalties, including default, for delinquent
7 payments or for entering into the plan on a fraudulent basis.
8 (m) Procure insurance against any loss in connection
9 with the property, assets, and activities of the fund or the
10 board.
11 (n) Establish other policies, procedures, and criteria
12 to implement and administer this section.
13 (o) Adopt procedures to govern contract dispute
14 proceedings between the board and its vendors.
15 Section 2. Administrator.--
16 (1) The board shall select an administrator, through a
17 competitive bidding process, to administer the plan. The board
18 shall evaluate bids submitted under this subsection based on
19 criteria established by the board, which criteria must
20 include:
21 (a) The administrator's proven ability to handle
22 individual accident and health insurance.
23 (b) The extent to which the administrator has
24 developed a network of health care providers for providing
25 managed health care on a statewide basis.
26 (c) The efficiency of the administrator's
27 claims-paying procedures.
28 (d) An estimate of total charges for administering the
29 plan.
30 (2) The administrator shall serve for a period of 3
31 years. At least 1 year prior to the expiration of each 3-year
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1 period of service by an administrator, the board shall invite
2 all insurers, including the current administering insurer, to
3 submit bids to serve as the administrator for the succeeding
4 3-year period. The selection of the administrator for the
5 succeeding period must be made at least 6 months prior to the
6 end of the current 3-year period.
7 (3) The administrator shall:
8 (a) Perform all eligibility and administrative
9 claims-payment functions relating to the plan, as prescribed
10 by the board.
11 (b) Pay an agent's referral fee as established by the
12 board to each insurance agent who refers an applicant to the
13 plan, if the applicant's application is accepted. The selling
14 or marketing of plans is not limited to the administrator or
15 its agents. However, any agent must be selected by the board
16 and licensed by the Department of Insurance to sell health
17 insurance in this state. The referral fees shall be paid by
18 the administrator from moneys received as premiums for the
19 plan.
20 (c) Establish a premium-billing procedure for
21 collecting premiums from insured persons. Billings shall be
22 made periodically as determined by the board.
23 (d) Perform all necessary functions to assure timely
24 payment of benefits under the plan, including:
25 1. Making available information relating to the proper
26 manner of submitting a claim for benefits under the plan and
27 distributing forms upon which submissions are made.
28 2. Evaluating the eligibility of each claim for
29 payment under the plan.
30 3. Notifying each claimant, within the time limits
31 prescribed by law, as to insurers after receiving a properly
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1 completed and executed proof of loss whether the claim is
2 accepted, rejected, or compromised.
3 (e) Submit regular reports to the board regarding the
4 operation of the plan. The frequency, content, and form of the
5 reports shall be determined by the board.
6 (f) Following the close of each calendar year,
7 determine net premiums, reinsurance premiums less
8 administrative expense allowance, and the expense of
9 administration pertaining to the reinsurance operations of the
10 association.
11 (g) Pay claims expenses from the premium payments
12 received from or on behalf of covered persons under the plan.
13 If the payments by the administrator for claims expenses
14 exceed the portion of premiums allocated by the board for
15 payment of claims expenses, the board shall provide the
16 administrator with additional funds for payment of claims
17 expenses to the extent that such funds are available.
18 (4)(a) The administrator shall be paid, as provided in
19 the contract of the association, for its direct and indirect
20 expenses incurred in the performance of its services.
21 (b) As used in this subsection, the term "direct and
22 indirect expenses" includes that portion of the audited
23 administrative costs, printing expenses, claims administration
24 expenses, management expenses, building overhead expenses, and
25 other actual operating and administrative expenses of the
26 administering insurer which are approved by the board as
27 allocable to the administration of the plan and included in
28 the bid specifications.
29 Section 3. Minimum benefits coverage; exclusions;
30 premiums; deductibles.--
31 (1) COVERAGE OFFERED.--
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1 (a) The plan shall offer in an annually renewable
2 policy the coverage specified in this section for each
3 eligible person.
4 (b) If an eligible person is also eligible for
5 Medicare coverage, the plan may not pay or reimburse any
6 person for expenses paid by Medicare.
7 (c) Any person whose health insurance coverage is
8 involuntarily terminated for any reason other than nonpayment
9 of premium may apply for coverage under the plan. If such
10 coverage is applied for within 60 days after the involuntary
11 termination and if premiums are paid for the entire period of
12 coverage, the effective date of the coverage shall be the date
13 of termination of the previous coverage.
14 (d) Coverage provided to a person who is eligible for
15 Medicare benefits may not be issued as a Medicare supplement
16 policy as defined in section 627.672, Florida Statutes.
17 (2) BENEFITS.--
18 (a) The plan shall offer major medical expense
19 coverage to every eligible person, subject to limitations set
20 by the board. Major medical expense coverage offered under the
21 plan shall pay an eligible person's covered expenses, subject
22 to limits on the deductible and coinsurance payments
23 authorized under subsection (4), up to a lifetime limit of
24 $500,000 per covered individual. The maximum limit under this
25 paragraph may not be altered by the board, and no actuarially
26 equivalent benefit may be substituted by the board.
27 (b) The plan shall provide that any policy issued to a
28 person eligible for Medicare shall be separately rated to
29 reflect differences in experience reasonably expected to occur
30 as a result of Medicare payments.
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1 (3) COVERED EXPENSES.--The coverage to be issued by
2 the association shall, at a minimum, be patterned after the
3 standard individual health insurance plan approved by the
4 Department of Insurance.
5 (4) PREMIUMS, DEDUCTIBLES, AND COINSURANCE.--
6 (a) The plan shall provide for annual deductibles for
7 major medical expense coverage in the amount of $1,000 or any
8 higher amounts proposed by the board and approved by the
9 department, plus the benefits payable under any other type of
10 insurance coverage or workers' compensation. The schedule of
11 premiums and deductibles shall be established by the
12 association. With regard to any preferred provider arrangement
13 used by the association, the deductibles provided in this
14 paragraph shall be the minimum deductibles applicable to the
15 preferred providers and higher deductibles, as approved by the
16 department, may be applied to providers who are not preferred
17 providers.
18 1. Separate schedules of premium rates based on age
19 may apply for individual risks.
20 2. Rates are subject to approval by the department.
21 3. Standard risk rates for coverages issued by the
22 association shall be established under section 627.6675(3),
23 Florida Statutes.
24 4. The board shall establish separate premium
25 schedules for low-risk individuals, medium-risk individuals,
26 and high-risk individuals and shall revise premium schedules
27 annually beginning January 2000. A rate may not exceed 150
28 percent of the standard risk rate for low-risk individuals,
29 200 percent of the standard risk rate for medium-risk
30 individuals, or 250 percent of the standard risk rate for
31 high-risk individuals. For the purpose of determining what
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1 constitutes a low-risk individual, medium-risk individual, or
2 high-risk individual, the board shall consider the anticipated
3 claims payment for individuals based upon an individual's
4 health condition.
5 (b) If the covered costs incurred by the eligible
6 person exceed the deductible for major medical expense
7 coverage selected by the person in a policy year, the plan
8 shall pay in the following manner:
9 1. For individuals placed under case management, after
10 satisfaction of the deductible, the plan shall pay 90 percent
11 of the additional covered costs incurred by the person during
12 the policy year for the first $10,000, after which the plan
13 shall pay 100 percent of the covered costs incurred by the
14 person during the policy year.
15 2. For individuals using the preferred provider
16 network, after satisfaction of the deductible, the plan shall
17 pay 80 percent of the additional covered costs incurred by the
18 person during the policy year for the first $10,000, after
19 which the plan shall pay 90 percent of covered costs incurred
20 by the person during the policy year.
21 3. If the person does not use the case management
22 system or the preferred provider network, after satisfaction
23 of the deductible, the plan shall pay 60 percent of the
24 additional covered costs incurred by the person for the first
25 $10,000, after which the plan shall pay 70 percent of the
26 additional covered costs incurred by the person during the
27 policy year.
28 4. For individuals placed under case management or
29 individuals using the preferred provider network, the maximum
30 out-of-pocket expense, after satisfaction of the deductible,
31 is limited to $10,000 per calendar year.
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1 (c) All premiums, deductibles, and coinsurance paid to
2 the association shall be deposited with the Florida Health
3 Endowment Association.
4 (d) Notwithstanding the provisions of section 624.509,
5 Florida Statutes, premiums for coverage shall, as to the
6 association and participating insurers, be exempt from premium
7 taxation.
8 (5) PREEXISTING CONDITIONS.--An association policy may
9 contain provisions under which coverage is excluded during a
10 period of 12 months following the effective date of coverage
11 with respect to a given covered individual for any preexisting
12 condition, if:
13 (a) The condition manifested itself within 6 months
14 before the effective date of coverage; or
15 (b) Medical advice or treatment was recommended or
16 received within 6 months before the effective date of
17 coverage.
18 (6) OTHER SOURCES PRIMARY.--
19 (a) Any amounts paid or payable by Medicare or any
20 other governmental program or any other insurance, or
21 self-insurance maintained in lieu of otherwise statutorily
22 required insurance, may not be made or recognized as claims
23 under such policy or be recognized as or towards satisfaction
24 of applicable deductibles or out-of-pocket maximums or to
25 reduce the limits of benefits available.
26 (b) The association has a cause of action against a
27 participant for any benefits paid to the participant which
28 should not have been claimed or recognized as claims because
29 of the provisions of this subsection or because the condition
30 is not covered.
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1 (7) NONENTITLEMENT.--This section does not provide an
2 individual with an entitlement to health care services or
3 health insurance. No cause of action shall arise against the
4 state, the board, or a unit of local government for failure to
5 make health services or health insurance available under this
6 section.
7 (8) ISSUING OF POLICIES.--The coverage provided by
8 this plan shall be directly insured by the Florida Health
9 Endowment Association, and the policies shall be issued
10 through the administrator.
11 Section 4. Disease management services.--
12 (1) The association may contract with insurers to
13 provide disease management services for insurers that elect to
14 participate in the association disease management program.
15 (2) An insurer that elects to contract for such
16 services shall provide the association with all medical
17 records and claims information necessary for the association
18 to effectively manage the services.
19 (3) Moneys collected by the association for providing
20 disease management services shall be used by the association
21 to pay administrative expenses associated with the disease
22 management program and any remaining moneys shall be deposited
23 in the Florida Health Endowment Trust Fund.
24 Section 5. Tax credits.--
25 (1)(a) Any insurance company subject to premium tax
26 liability pursuant to section 624.509, Florida Statutes, who
27 makes a contribution to the Florida Health Endowment
28 Association shall earn a vested credit against premium tax
29 liability equal to 100 percent of the contribution. Insurance
30 companies may use not more than 25 percentage points of the
31 vested premium tax credit, including any carryforward credits
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1 under this act, per year beginning with premium tax filings
2 for calendar year 2001. Any premium tax credits not used in
3 any single year may be carried forward and applied against the
4 premium tax liabilities for subsequent calendar years.
5 (b) The credit to be applied against premium tax
6 liability in any single year may not exceed the premium tax
7 liability of the insurance company for that taxable year.
8 (c) An insurance company claiming a credit against
9 premium tax liability earned through an investment in the
10 Florida Health Endowment Association is not required to pay
11 any additional retaliatory tax levied under section 624.5091,
12 Florida Statutes, as a result of claiming such credit. Because
13 credits under this section are available to an insurance
14 company, section 624.5091, Florida Statutes, does not limit
15 such credit in any manner.
16 (2) The claim of a transferee of an insurance
17 company's unused premium tax credit shall be permitted in the
18 same manner and subject to the same provisions and limitations
19 of this act as the original insurance company. The term
20 "transferee" means any person who:
21 (a) Through the voluntary sale, assignment, or other
22 transfer of the business or control of the business of the
23 insurance company, including the sale or other transfer of
24 stock or assets by merger, consolidation, or dissolution,
25 succeeds to all or substantially all of the business and
26 property of the insurance company;
27 (b) Becomes by operation of law or otherwise the
28 parent company or a wholly owned subsidiary of the insurance
29 company; or
30 (c) Directly or indirectly owns, whether through
31 rights, options, convertible interests, or otherwise,
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1 controls, or holds power to vote 10 percent or more of the
2 outstanding voting securities or other ownership interest of
3 the insurance company.
4 Section 6. Plan termination.--If the state determines
5 the plan to be financially infeasible, the state may
6 discontinue the plan. Any participants shall be entitled to
7 exercise the complete benefits for which he or she has
8 contracted. However, additional participants may not be
9 permitted to enter the plan.
10 Section 7. Section 627.648, Florida Statutes; section
11 627.6482, Florida Statutes, as amended by sections 224 and 292
12 of chapter 98-166, Laws of Florida; sections 627.6484 and
13 627.6486, Florida Statutes; section 627.6487, Florida
14 Statutes, as amended by section 5 of chapter 98-159, Laws of
15 Florida; sections 627.64871, 627.6488, 627.6489, 627.649, and
16 627.6496, Florida Statutes; and section 627.6498, Florida
17 Statutes, as amended by section 6 of chapter 98-159, Laws of
18 Florida, are repealed effective upon the opening of the plan
19 by the board. Sections 627.6492 and 627.6494, Florida
20 Statutes, are repealed January 1, 2003. Effective upon the
21 date of the opening of the plan, all individuals who have
22 insurance coverage issued by the Florida Comprehensive Health
23 Association on that date shall be issued insurance coverage
24 under the plan. The association shall assume all liabilities
25 of the Florida Comprehensive Health Association and be vested
26 with all statutory powers of the Florida Comprehensive Health
27 Association under sections 627.6492 and 627.6494, Florida
28 Statutes.
29 Section 8. The sum of $ is appropriated from the
30 General Revenue Fund to the Florida Health Endowment Trust
31 Fund.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1999 SB 1800
19-912B-99
1 Section 9. This act shall take effect July 1, 1999.
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4 SENATE SUMMARY
5 Creates the Florida Health Endowment Association to offer
health insurance coverage to persons whose health
6 insurance has been involuntarily terminated for any
reason other than nonpayment. Provides for the
7 association to be governed by a board of directors.
Requires that the board adopt a plan and rules to
8 administer the health insurance plan. Requires that the
board select a plan administrator. Requires that the plan
9 offer major medical expense coverage similar to that
provided by the state group health insurance program.
10 Provides for premiums, deductibles, and coinsurance.
Requires that the board establish premium schedules.
11 Authorizes the board of directors to contract with
insurers for disease-management services. Provides for
12 tax credits for insurance companies that contribute to
the Florida Health Endowment Association. Repeals the
13 Florida Comprehensive Health Association Act and provides
for individuals that have coverage under that act to be
14 transferred to the Florida Health Endowment Association.
(See bill for details.)
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