Crist signs health insurance bill and hopes to offer coverage in 2009

TALLAHASSEE, Fla. – May 21, 2008 – Governor Charlie Crist signed SB 2534, which will provide affordable health insurance options to 3.8 million uninsured Floridians. The Cover Florida plan will allow the state to negotiate with health insurers to develop affordable health coverage for uninsured Floridians ages 19 to 64. Small businesses will also be able to offer employees a variety of limited health care plans and services through a centralized clearinghouse.
 
“One in five Floridians goes to bed at night worrying about how to pay for medical care, and they wait to go to the doctor until they have a medical emergency,” Governor Crist said. “Now, Floridians will have health insurance options that will go a long way toward freeing them from worry about health care. What Florida is doing is a model for the nation.”
 
Private insurers have indicated that the Governor’s Cover Florida plan would allow them to create benefits packages for about $150 per month or less. All benefit plans would include, at a minimum, coverage for preventive services, screenings, office visits, outpatient and inpatient surgery, urgent care, prescription drugs, durable medical equipment and diabetic supplies. Approved insurance companies also must offer consumers a plan that includes catastrophic and hospital coverage. Insurers would also competitively bid to provide supplemental coverage, such as vision, dental and cancer care.
 
Cover Florida focuses on primary and preventive care to discourage unnecessary and costly visits to the emergency room. Individuals who have been without insurance for at least six months will be eligible, and no mandates require individuals or employers to participate; however, employers will be permitted to assist employees by allowing payroll deduction or cost-sharing premiums.
 
Coverage options for children are also expanded by the legislation. The bill includes provisions to permit all Florida families to pay full premiums and “buy in” to the Florida Kid Care Program. Current law has a 10 percent cap on enrollment for “full pay” families. The bill also requires insurance companies to offer families the option to keep children enrolled on the family health policy until age 30, as long as the child is unmarried and does not have any dependents. Current law requires this option only for children who are under age 25 and students. Under the new law, student status is required only if the child lives outside Florida.
 
The legislation also creates the Florida Health Choices Corporation, a centralized clearinghouse or “marketplace,” where small businesses with less than 50 employees may allow employees to choose from a variety of health care plans and services, including prepaid services, flexible savings accounts and traditional insurance products.
 
The corporation will be governed by a Board of Directors, comprised of appointees of the Governor, President of the Senate and Speaker of the House. The board will also include ex-officio members who represent affected Florida state agencies. In order to ensure the integrity of board decisions, no board member may be appointed who has a vested interest in the regulation of marketplace products. The corporation will also be subject to Florida’s public record and open government laws.
 
The Office of Insurance Regulation (OIR) will review all risk-based products offered by the corporation and offer recommendations. OIR will also provide information to consumers about each risk-based product offered in the marketplace.
 
© 2008 FLORIDA ASSOCIATION OF REALTORS®
 

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