2010 Florida Legislative Session

End of Session Wrap-Up Report

Around 9:00 P.M. on Friday April 30^th.The Florida Legislature adjourned Sine Die (it is over).The final issue to pass was the $70.4 billion budget.The budget includes 433 million dollars that will be available from a newly crafted state gaming compact with the Seminole Tribe of Florida.The State also put away $1.4 billion in reserves in anticipation of Congress approving the Federal Medical Assistance Percentage.This should equate to around $730 million that will be sent down from the Federal Government.

There was early speculation that the Governor may veto the entire budget and bring the Legislature back; however Governor Crist has recently stated that he would more than likely line item veto.

What Passed? What Failed?

Passed

As we have been reporting since our Health Care Summit in January, the Florida Legislature would not be looking at serious market reforms due to the Federal Health Legislation.That proved to be true.

What did pass included minor tweaks to existing law and two separate measures aimed at prohibiting health insurance as a mandate.

HJR 37, by Rep. Scott Plakin is being tagged the 'health care freedom' amendment.If approved by 60 percent of the voters in the fall, the constitutional amendment would allow Florida to opt out of the national health care plan.

HB 1143 creates a state statute that also says no Floridian can be compelled to purchase health insurance.The legislation also contains a provision that gives Attorney General Bill McCollum firm standing in his Federal law suit against the United States government.

The language states in part that the Attorney General is authorized and has standing to sue on behalf of Floridians whose rights are infringed by the federal health care reform.

In late March, Attorney General McCollum filed suit in federal court in Pensacola contending that the federal health care legislation is unconstitutional and violates the amendment to the U.S. Constitution that preserves the states individual powers.

HB 1143 also contains a highly controversial issue that may draw a veto from Governor Crist.If enacted into law, HB 1143 would require a pregnant woman in her first trimester to have an ultrasound performed at her expense.The woman must be allowed to view the ultrasound while a medical professional explains the images.A woman can decline to view the images if she completes a form.

Annuity Training Clarified

HB 885 clarifies that an agent who has not sold individual life insurance policies or annuity contracts during the CE cycle and does not have active individual life insurance policies or annuity contracts is exempt from the 3 hours of CE in suitability in annuity and life transactions.The agent may be required to submit a certification attesting to the eligibility for exemption.

Failed

Many issues were introduced that never received serious consideration including:

SB 516 Fasano/HB 275 Grimsley, Prescription Drug Insurance Coverage; Prohibits health insurance policies from denying coverage for prescription drugs based on formulary changes.

1122 Justice/589 Roberson, Minimum Loss Ratio's; requires a minimum loss ratio guarantee of at least 85% for health insurance policies including Medicare supplement and long-term care insurance policies.

This proposal is similar to the MLR requirement in the federal health care legislation.

2280 Baker/1191 Wood, Interstate Health Insurance Policies; authorizes for sale in Florida any health insurance product that is governed by the laws of any state, district or commonwealth of the United States.The 'interstate' health insurance policy would not be subject to form approval, rate approval, underwriting restrictions, guaranteed availability or mandates.

Mandates, Resolutions, etc…

An expansion of the current autism mandate as described below was the only filed mandate that garnered serious consideration this year.The annual mental and nervous disorder bill received one hearing each in the House and Senate but did not move further.

· SB 214 Ring/HB 107 Coli, Autism - this expansion of the current mandate would include down syndrome and cerebral palsy coverage.According to the Senate staff analysis there are currently 309 children in the state with down syndrome who would qualify for coverage.As with all mandates, FAHU is opposing this expansion.

· SB 182 Crist/HB 7 Homan, Mental and Nervous Disorders

· SB 190 Joyner/HB 111 Clarke-Reed, Breast Cancer coverage

· SB 408 Bullard - Craniofacial Anomalies coverage

· SB 936 Aronberg/925 Cruz - Breast Cancer early detection

· SB 2508 Sobel - Colorectal exam coverage

· SB 1132 Sobel/591 Roberson - HIV Antiretroviral drug coverage

FAHU raises awareness of existing law and moves the needle on mandates

Florida Statute 624.215 requires individuals or organizations proposing mandates, prior to consideration to have an economic and social impact statement.This statement is required to be submitted to AHCA and the Legislature.

Since this statute was enacted, it has largely been ignored.Today we still do not have an accurate assessment of how much the current 50 plus health care mandates cost the consumer.

During our recent FAHU State Legislative Conference in Tallahassee, FAHU members fanned out throughout the capitol meeting with Legislators and Legislative leadership with this simple message; Enforce the current law on the books before you consider one more costly mandate.

As we expected, from leadership to rank and file members, the legislators were not aware of this law.All expressed appreciation for raising the awareness and we believe this played a role in preventing the expansion of the autism mandate that was making its way through the legislature.

We are fighting on many fronts, and keeping their feet to the fire on mandates is the responsible course of action. We plan to build on this issue in the near future.

Medicaid Reform

Rising Medicaid costs currently devour approximately 20 percent of the entire state budget.Both House and Senate had legislation designed to overhaul the state's Medicaid delivery system.The plans varied from an expansion of the current reform project in Broward and Duval counties, to a statewide shift from the traditional fee for service method to a managed care system.A compromise could not be reached and both proposals died.

What's next?

It is expected that Governor Crist will call multiple special sessions this summer.Issues could include a proposal to constitutionally ban off shore drilling and renewable energy incentives.In the wake of the recent Deepwater Horizon oil spill, there is mounting political pressure to act.Health care issues are not expected to be addressed at this time.

FAHU was asked by the Office of Insurance Regulation to participate at a hearing that was held Tuesday, May 4^th in Orlando. FAHU members, Joan Galletta and Terri Seefeldt and FAHU President, Julian Lago participated on a four person agent panel that provided testimony on potential market disruption created by the federal health care plan.This testimony will be delivered to Department of Health and Human Services Secretary Kathleen Sebelius.

If Florida can demonstrate 'significant market disruption' in the Florida individual/small group market, the mandated 80 percent minimum loss ratio could be modified.

There could be another public hearing in the near future and FAHU will be at the table.

Constitutional Amendments and Fall Voter Guide

There will be a number of constitutional ballot initiatives on the election ballot.We will summarize and provide information on each so our members can be educated before Election Day.In addition, this will be the first time in Florida history that the Governor and entire cabinet will have newly elected members.Coming soon will be a one stop shop of information on the candidates at fahu.org.