| 1 | Representative(s) Garcia offered the following: | 
| 2 | 
 | 
| 3 | Amendment (with title amendment) | 
| 4 | Between lines 116 and 117, insert: | 
| 5 | Section 4.  Paragraph (i) of subsection (2) of section | 
| 6 | 636.204, Florida Statutes, is amended to read: | 
| 7 | 636.204  License required.-- | 
| 8 | (2)  An application for a license to operate as a discount | 
| 9 | medical plan organization must be filed with the office on a | 
| 10 | form prescribed by the commission. Such application must be | 
| 11 | sworn to by an officer or authorized representative of the | 
| 12 | applicant and be accompanied by the following, if applicable: | 
| 13 | (i)  A copy of the applicant's most recent financial | 
| 14 | statements audited by an independent certified public | 
| 15 | accountant. An applicant that is a subsidiary of a parent entity | 
| 16 | that is publicly traded and that prepares audited financial | 
| 17 | statements reflecting the consolidated operations of the parent | 
| 18 | entity and the subsidiary may submit petition the office to | 
| 19 | accept, in lieu of the audited financial statement of the | 
| 20 | applicant, the audited financial statement of the parent entity | 
| 21 | and a written guaranty by the parent entity that the minimum | 
| 22 | capital requirements of the applicant required by this part will | 
| 23 | be met by the parent entity. | 
| 24 | Section 5.  Subsection (1) of section 636.206, Florida | 
| 25 | Statutes, is amended to read: | 
| 26 | 636.206  Examinations and investigations.-- | 
| 27 | (1)  The office may examine or investigate the business and | 
| 28 | affairs of any discount medical plan organization if the | 
| 29 | commissioner has reason to believe that the discount medical | 
| 30 | plan organization is not complying with the requirements of this | 
| 31 | act. The office may order any discount medical plan organization | 
| 32 | or applicant to produce any records, books, files, advertising | 
| 33 | and solicitation materials, or other information and may take | 
| 34 | statements under oath to determine whether the discount medical | 
| 35 | plan organization or applicant is in violation of the law or is | 
| 36 | acting contrary to the public interest. The expenses incurred in | 
| 37 | conducting any examination or investigation must be paid by the | 
| 38 | discount medical plan organization or applicant. Examinations | 
| 39 | and investigations must be conducted as provided in chapter 624. | 
| 40 | Section 6.  Subsection (1) of section 636.210, Florida | 
| 41 | Statutes, is amended to read: | 
| 42 | 636.210  Prohibited activities of a discount medical plan | 
| 43 | organization.-- | 
| 44 | (1)  A discount medical plan organization may not: | 
| 45 | (a)  Use in its advertisements, marketing material, | 
| 46 | brochures, and discount cards the term "insurance" except as | 
| 47 | otherwise provided in this part or as a disclaimer of any | 
| 48 | relationship between discount medical plan organization benefits | 
| 49 | and insurance; | 
| 50 | (b)  Use in its advertisements, marketing material, | 
| 51 | brochures, and discount cards the terms "health plan," | 
| 52 | "coverage," "copay," "copayments," "preexisting conditions," | 
| 53 | "guaranteed issue," "premium," "PPO," "preferred provider | 
| 54 | organization," or other terms in a manner that could reasonably | 
| 55 | mislead a person into believing the discount medical plan was | 
| 56 | health insurance; | 
| 57 | (c)  Have restrictions on free access to plan providers, | 
| 58 | except for hospital services, including, but not limited to, | 
| 59 | waiting periods and notification periods; or | 
| 60 | (d)  Pay providers any fees for medical services. | 
| 61 | Section 7.  Subsections (1), (3), and (4) of section | 
| 62 | 636.216, Florida Statutes, are amended to read: | 
| 63 | 636.216  Charge or form filings.-- | 
| 64 | (1)  All charges to members must be filed with the office. | 
| 65 | andAny charge to members greater than $30 per month or $360 per | 
| 66 | year for access to healthcare services, other than those | 
| 67 | provided by physicians licensed under chapter 458 or chapter 459 | 
| 68 | or by hospitals licensed under chapter 395, must be approved by | 
| 69 | the office before the charges can be used. Any charge to members | 
| 70 | greater than $60 dollars per month or $720 per year for | 
| 71 | healthcare services that include services provided by physicians | 
| 72 | licensed under chapters 458 and 459 or by hospitals licensed | 
| 73 | under chapter 395 must be approved by the office before the | 
| 74 | charges can be used. The discount medical plan organization has | 
| 75 | the burden of proof that the charges bear a reasonable relation | 
| 76 | to the benefits received by the member. | 
| 77 | (3)  All forms used, including the written agreement | 
| 78 | pursuant to subsection (2), must first be filed with and | 
| 79 | approved bythe office. Every form filed shall be identified by | 
| 80 | a unique form number placed in the lower left corner of each | 
| 81 | form. | 
| 82 | (4)  A charge or formis considered approved on the 60th | 
| 83 | day after its date of filing unless it has been previously | 
| 84 | disapproved by the office. The office shall disapprove any form | 
| 85 | that does not meet the requirements of this part or that is | 
| 86 | unreasonable, discriminatory, misleading, or unfair.If such | 
| 87 | filing is filings aredisapproved, the office shall notify the | 
| 88 | discount medical plan organization and shall specify in the | 
| 89 | notice the reasons for disapproval. | 
| 90 | Section 8.  Subsection (2) of section 636.218, Florida | 
| 91 | Statutes, is amended to read: | 
| 92 | 636.218  Annual reports.-- | 
| 93 | (2)  Such reports must be on forms prescribed by the | 
| 94 | commission and must include: | 
| 95 | (a)  Audited financial statements prepared in accordance | 
| 96 | with generally accepted accounting principles certified by an | 
| 97 | independent certified public accountant, including the | 
| 98 | organization's balance sheet, income statement, and statement of | 
| 99 | changes in cash flow for the preceding year. An organization | 
| 100 | that is a subsidiary of a parent entity that is publicly traded | 
| 101 | and that prepares audited financial statements reflecting the | 
| 102 | consolidated operations of the parent entity and the | 
| 103 | organization may petition the office to accept, in lieu of the | 
| 104 | audited financial statement of the organization, the audited | 
| 105 | financial statement of the parent entity and a written guaranty | 
| 106 | by the parent entity that the minimum capital requirements of | 
| 107 | the organization required by this part will be met by the parent | 
| 108 | entity. | 
| 109 | (a) (b)If different from the initial application or the | 
| 110 | last annual report, a list of the names and residence addresses | 
| 111 | of all persons responsible for the conduct of the organization's | 
| 112 | affairs, together with a disclosure of the extent and nature of | 
| 113 | any contracts or arrangements between such persons and the | 
| 114 | discount medical plan organization, including any possible | 
| 115 | conflicts of interest. | 
| 116 | (b) (c)The number of discount medical plan members in the | 
| 117 | state. | 
| 118 | (c) (d)Such other information relating to the performance | 
| 119 | of the discount medical plan organization as is reasonably | 
| 120 | required by the commission or office. | 
| 121 | Section 9.  Subsection (1) of section 636.220, Florida | 
| 122 | Statutes, is amended to read: | 
| 123 | 636.220  Minimum capital requirements.-- | 
| 124 | (1)  Each discount medical plan organization must at all | 
| 125 | times maintain a net worth of at least $150,000 and each | 
| 126 | discount medical plan organization shall certify in writing | 
| 127 | under oath at licensure and annually that the minimum | 
| 128 | capitalization requirements of this part are satisfied. | 
| 129 | Section 10.  Section 636.232, Florida Statutes, is amended | 
| 130 | to read: | 
| 131 | 636.232  Rules.--The commission may adopt rules to | 
| 132 | administer this part, including rules for the licensing of | 
| 133 | discount medical plan organizations; establishing standards for | 
| 134 | evaluating forms,advertisements, marketing materials, | 
| 135 | brochures, and discount cards; providing for the collection of | 
| 136 | data; relating to disclosures to plan members; and defining | 
| 137 | terms used in this part. | 
| 138 | Section 11.  Section 636.230, Florida Statutes, is | 
| 139 | repealed. | 
| 140 | 
 | 
| 141 | ======= T I T L E  A M E N D M E N T ======= | 
| 142 | Remove line(s) 15 and insert: | 
| 143 | under group health insurance policies; amending s. 636.204, | 
| 144 | F.S.; revising a license application provision for discount | 
| 145 | medical plan organizations; amending s. 636.206, F.S.; revising | 
| 146 | examination and investigative authority; amending s. 636.210, | 
| 147 | F.S.; providing an exception to prohibited activities; amending | 
| 148 | s. 636.216, F.S.; providing exception to review of certain | 
| 149 | charges to members of the plan; amending s. 636.218, F.S.; | 
| 150 | removing certain information from the annual report; amending s. | 
| 151 | 636.220, F.S.; revising certain minimum capital requirements of | 
| 152 | discount medical plan organizations; amending s. 636.232, F.S.; | 
| 153 | revising commission rulemaking authority; repealing s. 636.230, | 
| 154 | F.S., relating to the bundling of discount medical plans with | 
| 155 | other products; amending s. 641.31, |