Senate Bill sb1986

    Florida Senate - 2001                                  SB 1986

    By Senator Sanderson





    31-1330-01

  1                      A bill to be entitled

  2         An act relating to group insurance for public

  3         officers, employees, and volunteers; amending

  4         s. 112.08, F.S.; prescribing procedure for a

  5         local governmental unit to replace health

  6         insurance when the contracting provider becomes

  7         financially impaired or fails or refuses to

  8         provide coverage; providing an effective date.

  9

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

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12         Section 1.  Paragraph (a) of subsection (2) of section

13  112.08, Florida Statutes, is amended to read:

14         112.08  Group insurance for public officers, employees,

15  and certain volunteers; physical examinations.--

16         (2)(a)  Every local governmental unit is authorized to

17  provide and pay out of its available funds for all or part of

18  the premium for life, health, accident, hospitalization, legal

19  expense, or annuity insurance, or all or any kinds of such

20  insurance, for the officers and employees of the local

21  governmental unit and for health, accident, hospitalization,

22  and legal expense insurance for the dependents of such

23  officers and employees upon a group insurance plan and, to

24  that end, to enter into contracts with insurance companies or

25  professional administrators to provide such insurance.  Before

26  entering any contract for insurance, the local governmental

27  unit shall advertise for competitive bids; and such contract

28  shall be let upon the basis of such bids. If a contracting

29  health insurance provider becomes financially impaired as

30  determined by the Department of Insurance or otherwise fails

31  or refuses to provide the contracted-for coverage or

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






    Florida Senate - 2001                                  SB 1986
    31-1330-01




  1  coverages, the local government may purchase insurance, enter

  2  into risk-management programs, or contract with third-party

  3  administrators and may make such acquisitions by advertising

  4  for competitive bids or by direct negotiations and contract.

  5  However, The local governmental unit may undertake

  6  simultaneous negotiations with those companies which have

  7  submitted reasonable and timely bids and are found by the

  8  local governmental unit to be fully qualified and capable of

  9  meeting all servicing requirements.  Each local governmental

10  unit may self-insure any plan for health, accident, and

11  hospitalization coverage or enter into a risk management

12  consortium to provide such coverage, subject to approval based

13  on actuarial soundness by the Department of Insurance; and

14  each shall contract with an insurance company or professional

15  administrator qualified and approved by the Department of

16  Insurance to administer such a plan.

17         Section 2.  This act shall take effect upon becoming a

18  law.

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20            *****************************************

21                          SENATE SUMMARY

22    Allows a local governmental unit to provide health
      insurance coverage for its public officers, employees,
23    and certain volunteers when the contracting carrier
      becomes financially impaired or otherwise fails or
24    refuses to provide coverage. Replacement coverage may be
      obtained by competitive bid or by direct negotiation and
25    contract.

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