Final 2007 Florida Legislative Report: Health Insurance

Many of the bills filed during Florida’s 2007 Regular Legislative Session regarding health insurance issues failed.

Although the KidCare bill was thoroughly debated in several committees, it ultimately did not pass.  Senator Durell Peaden (R-Crestview) offered a controversial amendment that excluded certain groups from the KidCare program, such as children of state employees. This provision and others relating to coverage ultimately led to the bill’s defeat.

Democratic leaders are urging Governor Charlie Crist to include KidCare as part of the Special Session scheduled for June 12 – 22.  However, at this time, House Speaker Marco Rubio (R-Miami) and Senate President Ken Pruitt (R- Port St. Lucie) called the Special Session solely on the issue of Property Tax Relief and Reform.

Below is a brief summary of the pertinent bills passed that we are continuing to monitor for action by the Governor: 

 

Committee Substitute for Committee Substitute for House Bill 1381 by Representative Garrett Richter (R-Naples) relating to Insurance Agents

Authorizes agencies that have business in this state prior to January 1, 2003, and who are subject to supervision as a branch office under the National Association of Securities Dealers to file an application for registration in lieu of licensure. This bill authorizes a licensed agent in charge of an insurance agency to be the agent in charge of additional branch office locations if insurance activities requiring licensure do not occur at the agency when the licensed agent is not present. This bill defines a “risk-bearing entity” as a reciprocal insurer as defined in s. 629.021, a commercial self-insurance fund as defined in s.624.462, a group self-insurance fund as defined in s. 624.4621, a local government self-insurance fund as defined in s. 624.4622, a self-insured public utility as defined in s. 624.46225, or an independent educational institution self insurance fund as defined in s. 624.4623.  For the purposes of this section, the term “risk bearing entity” does not include an authorized insurer as defined in s. 624.09.  Further, the bill requires agents to clearly indicate they are acting as agents with regard to insurance products for risk bearing entities. Also, agents are granted immunity from civil action if a risk bearing agency becomes insolvent, but could be subject to administrative penalty. The bill further requires surplus lines insurance agents licensed in Florida to comply with the agent’s manual.

This act is effective July 1, 2007, except as otherwise provided.

 

Committee Substitute for House Bill 97 by Representative Alan Hayes (R-Umatilla) relating to Medicare supplement policies

This bill exempts from the Medicare supplement policy employers that have 50 or more eligible employees, if upon termination of eligibility, group members age 65 or older are offered continuation of coverage with the same benefits.

This act is effective July 1, 2007.

 

Committee Substitute for Senate Bill 590 by Senator Burt Saunders (R-Naples) relating to health maintenance contracts (HMOs)

This bill changes the language regarding primary care physicians and permits them to refer a subscriber to a skilled nursing unit when they deem it is “medically necessary.” Previously, the standard was “in the best interest of the patient.” The bill also adds assisted living facilities as covered facilities. The HMO must also inform subscribers in writing of their rights under this section.

This act is effective July 1, 2007.

 

Senate Bill 666 by Senator Mike Fasano (R-New Port Richie) relating to fiscal intermediary services organizations (FISOs)

This bill removes FISOs that are owned, operated or controlled by certain licensed entities such as hospitals, HMOs, and other licensed insurers from the definition of a FISO. Also, the current exemption for physician group practices would be limited to group practices providing services under the scope of licenses of the members of that group practice. Further, the bill subjects not-for-profit corporations that provide health care services directly to patients through employed, salaried physicians and that are affiliated with an accredited hospital licensed in this state to registration with the Office of Insurance Regulation. However, this section does not apply to a fiscal intermediary services organization that is owned, operated, or controlled by a third-party administrator holding certificate of authority under part VII of chapter 626.

This act is effective October 1, 2007

 

Committee Substitute for Senate Bill 1508 by Senator Durell Peaden (R-Crestview) relating to informed consent

The bill adds advanced registered nurse practitioners or physician assistants to the provisions allowing immunity for certain emergency examination or treatment of incapacitated persons done without consent if informed consent would have reasonably been given under medical consent law.

This act is effective July 1, 2007.

 

Committee Substitute for Senate Bill 430 by Senator Burt Saunders (R-Naples) relating to mental health facilities

This bill requires mental health and treatment facilities designated by the Department of Children and Family Services (“Department) to report certain financial and health service data to the Department including the number of licensed beds, contract days, number of admissions by payer class and diagnosis, etc. This bill also provides for reporting deadlines.

This act is effective July 1, 2007.

 

Committee Substitute for Committee Substitute for Senate Bill 770 by Senator Jeff Atwater (R-North Palm Beach) relating to physician workforce

This bill creates the physician workforce and development program. The Department of Health (DOH) is the coordinating entity charged with assessing the current workforce needs. The bill further requires licensed physicians to fill out a physician survey administered by the DOH.

This act is effective upon becoming law.

 

Committee Substitute for Senate Bill 1758 by Sen. Durell Peaden (R-Crestview) relating to hospitals

This bill prohibits the licensing of off premises emergency departments of hospitals until January 1, 2009 with limited exceptions.

This act is effective July 1, 2007.

 

The above information is intended to provide you with a general analysis of the legislative activity and bills that passed during the 2007 Regular Legislative Session. It is not intended to be offered, or to be relied upon, as specific legal or regulatory advice regarding any issue. Should you have specific questions or require additional information, please do not hesitate to contact this office.