Bill Text: FL H0635 | 2011 | Regular Session | Introduced


Bill Title: Group Insurance for Public Employees

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H0635 Detail]

Download: Florida-2011-H0635-Introduced.html
HB 635

1
A bill to be entitled
2An act relating to group insurance for public employees;
3amending s. 112.08, F.S.; requiring that school districts
4procure certain types of insurance through interlocal
5agreements; providing an exception; requiring that each
6school district in this state enter into a specified type
7of interlocal agreement and establish the School District
8Insurance Consortium; providing purposes of the
9consortium; requiring that the consortium be governed by a
10board of directors consisting of a specified number of
11members; providing requirements for membership on the
12board; specifying terms of office for board members;
13authorizing the board to employ staff or contract for
14staffing services to be provided to the consortium;
15requiring that the Department of Management Services
16provide technical services to the consortium as requested
17by the board; requiring the consortium to advertise for
18competitive bids for health, accident, or hospitalization
19insurance, as well as certain insurance plans; requiring
20that the contracts for such insurance be let upon the
21basis of such bids; requiring that the consortium take
22certain actions and consider certain factors when defining
23coverage regions; authorizing the awarding of bids on a
24statewide or regional basis and the selection of multiple
25insurance providers; requiring that school districts
26engage in collective bargaining with the certified
27bargaining agent for any unit of employees for which
28health, accident, or hospitalization insurance is
29provided; providing an effective date.
30
31Be It Enacted by the Legislature of the State of Florida:
32
33     Section 1.  Paragraph (a) of subsection (2) of section
34112.08, Florida Statutes, is amended, and paragraph (d) is added
35to that subsection, to read:
36     112.08  Group insurance for public officers, employees, and
37certain volunteers; physical examinations.-
38     (2)(a)  Notwithstanding any general law or special act to
39the contrary, every local governmental unit is authorized to
40provide and pay out of its available funds for all or part of
41the premium for life, health, accident, hospitalization, legal
42expense, or annuity insurance, or all or any kinds of such
43insurance, for the officers and employees of the local
44governmental unit and for health, accident, hospitalization, and
45legal expense insurance for the dependents of such officers and
46employees upon a group insurance plan and, to that end, to enter
47into contracts with insurance companies or professional
48administrators to provide such insurance. Before entering any
49contract for insurance, the local governmental unit shall
50advertise for competitive bids; and such contract shall be let
51upon the basis of such bids. Beginning on July 1, 2012, or upon
52the expiration or renewal date of any existing contract,
53whichever occurs later, school districts shall procure such
54insurance through a purchasing interlocal agreement as provided
55in paragraph (d) unless the school board, at a duly noticed
56public meeting, determines that the purchase of insurance
57outside the plan procured through the interlocal agreement is
58financially advantageous to the school district. If a
59contracting health insurance provider becomes financially
60impaired as determined by the Office of Insurance Regulation of
61the Financial Services Commission or otherwise fails or refuses
62to provide the contracted-for coverage or coverages, the local
63government may purchase insurance, enter into risk management
64programs, or contract with third-party administrators and may
65make such acquisitions by advertising for competitive bids or by
66direct negotiations and contract. The local governmental unit
67may undertake simultaneous negotiations with those companies
68that which have submitted reasonable and timely bids and are
69found by the local governmental unit to be fully qualified and
70capable of meeting all servicing requirements. Each local
71governmental unit may self-insure any plan for health, accident,
72and hospitalization coverage or enter into a risk management
73consortium to provide such coverage, subject to approval based
74on actuarial soundness by the Office of Insurance Regulation;
75and each shall contract with an insurance company or
76professional administrator qualified and approved by the office
77to administer such a plan.
78     (d)1.  Each school district in this state shall enter into
79an interlocal agreement as provided in s. 163.01 to establish
80the School District Insurance Consortium through which health,
81accident, and hospitalization insurance shall be procured for
82officers and employees of the school district and their
83dependents unless the school board opts out in the manner set
84forth in paragraph (a).
85     2.  The consortium shall be governed by a board of
86directors comprised of nine members, three of whom shall be
87elected school board members appointed by the Florida School
88Boards Association, Inc., three of whom shall be elected or
89appointed superintendents of schools appointed by the Florida
90Association of District School Superintendents, Inc., two of
91whom shall be public school teachers or support personnel
92appointed by the Florida Education Association, and one of whom
93shall have experience in running employee-benefit systems, to be
94appointed by the other members of the consortium. Consortium
95board members shall be appointed to 2-year terms. The board may
96employ staff or contract for staffing services to be provided to
97the consortium. The Department of Management Services shall
98provide technical services to the consortium as requested by the
99board.
100     3.  Notwithstanding any other provision of law, the
101consortium shall advertise for competitive bids for such
102insurance, and the contracts for such insurance shall be let
103upon the basis of such bids. The consortium shall advertise for
104proposals for a statewide insurance plan as well as plans
105providing coverage on a regional basis. In determining
106appropriate regions, the consortium shall group school districts
107geographically in a manner that includes school districts of
108varying sizes for the purpose of ensuring the availability of
109coverage for all districts in the region. Contracts may be
110awarded on a statewide or regional basis, and more than one
111provider may be selected to provide insurance. School districts
112shall engage in collective bargaining with the certified
113bargaining agent for any unit of employees for which health,
114accident, or hospitalization insurance is provided, as required
115by part II of chapter 447, with regard to coverage offered, cost
116for dependent coverage, deductibles, optional coverage, and
117other matters that are subject to collective bargaining as
118required by state law.
119     Section 2.  This act shall take effect July 1, 2011.


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