In May, Governor Charlie Crist signed into law a bill (S.B. 2534) that creates a new health insurance option, Cover Florida, for Florida’s uninsured residents starting January 2009. The bill outlines a plan that allows private insurers to competitively negotiate with the state to provide benefit plans which should cost approximately $150 or less per month[i]. Cover Florida sponsors must offer at least two plans: one with lower-level coverage, and one with catastrophic coverage. Nine carriers submitted proposals and six of those were selected by the state to participate in Cover Florida[ii]. The benefit designs must focus on primary and preventive care in order to discourage people from using emergency rooms as their source of primary care. At minimum, all benefits plans must include:
- Coverage for preventive services
- Screenings
- Office visits
- Urgent care
- Prescription drugs
- Durable medical equipmen
- Diabetic supplies
- Hospital care
The higher level plan must also include catastrophic coverage. Generally speaking, only individuals who have been uninsured for at least six months will be eligible for the program. Health plans in the future may also competitively negotiate with the state to provide supplemental coverage, such as vision, dental, and cancer care.
The legislation also creates the Florida Health Choices Corporation, described as a clearinghouse designed to promote health insurance choices for small business and help them fill out the necessary forms and paperwork. Through the Corporation, small employers with 50 or fewer employees will be able to access coverage for their employees. Employees will have the ability to choose from a variety of health plans and services, including prepaid services, flexible savings accounts, and traditional insurance products. Employers will be required to establish Section 125 plans. The program will be administered by a 15-member board made up of appointees chosen by the Governor, the Senate president, and the House speaker
[iii].
[i] “Governor Crist Signs Cover Florida Legislation to Provide Health Insurance Options to Florida’s 3.8 Million Uninsured,” Office of Florida Governor Charlie Crist, press release, May 21, 2008; “Recent State Updates,” St@teside, State Coverage Initiatives, May 2008, available at www.statecoverage.org.
[ii] “Nine Health Insurance Companies Submit Proposals for ‘Cover Florida’ Program,” Kaiser Daily Health Policy Report, August 20, 2008.
[iii] “Governor Crist Signs Cover Florida Legislation to Provide Health Insurance Options to Florida’s 3.8 Million Uninsured” op. cit.; St@teside, State Coverage Initiatives, May 2008, available at www.statecoverage.org.
