Bill Text: FL S0430 | 2017 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Discount Plan Organizations
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-04-26 - Laid on Table, companion bill(s) passed, see CS/HB 577 (Ch. 2017-112) [S0430 Detail]
Download: Florida-2017-S0430-Introduced.html
Bill Title: Discount Plan Organizations
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-04-26 - Laid on Table, companion bill(s) passed, see CS/HB 577 (Ch. 2017-112) [S0430 Detail]
Download: Florida-2017-S0430-Introduced.html
Florida Senate - 2017 SB 430 By Senator Bean 4-00513A-17 2017430__ 1 A bill to be entitled 2 An act relating to discount plan organizations; 3 revising the titles of ch. 636, F.S., and part II of 4 ch. 636, F.S.; amending s. 636.202, F.S.; revising 5 definitions; amending s. 636.204, F.S.; conforming 6 provisions to changes made by the act; requiring a 7 provider to be licensed as a discount plan 8 organization if the provider charges patients fees, 9 dues, charges, or other consideration to receive 10 discounted medical services; amending s. 636.208, 11 F.S.; conforming provisions to changes made by the 12 act; revising a specified condition for a member to 13 receive a reimbursement of certain charges after 14 cancelling a membership in a discount plan 15 organization; amending s. 636.212, F.S.; conforming 16 provisions to changes made by the act; specifying what 17 a first page is for the purpose of a disclosure 18 requirement on certain materials relating to a 19 discount plan; providing for construction; deleting 20 certain requirements that apply if the initial 21 contract is made by telephone; amending s. 636.214, 22 F.S.; making a technical change; conforming provisions 23 to changes made by the act; amending s. 636.216, F.S.; 24 deleting a provision that requires filing charges to 25 members with the Office of Insurance Regulation, that 26 requires approval of the office for specified charges, 27 and that provides for the burden of proving the 28 reasonable relation of charges to benefits received by 29 the members; conforming provisions to changes made by 30 the act; specifying certain forms that must be filed 31 and approved by the office; providing an exception 32 from approval by the office; specifying what is not 33 included in a material change; amending s. 636.228, 34 F.S.; conforming provisions to changes made by the 35 act; authorizing a discount plan organization to 36 delegate functions to its marketers; providing that 37 the discount plan organization is bound to acts of its 38 marketers within the scope of delegation; amending s. 39 636.230, F.S.; conforming provisions to changes made 40 by the act; authorizing a marketer or discount plan 41 organization to commingle certain products on a single 42 page of certain documents; providing for 43 applicability; deleting a requirement for discount 44 medical plan fees to be provided in writing under 45 certain circumstances; amending ss. 408.9091, 408.910, 46 627.64731, 636.003, 636.205, 636.206, 636.207, 47 636.210, 636.218, 636.220, 636.222, 636.223, 636.224, 48 636.226, 636.232, 636.234, 636.236, 636.238, 636.240, 49 and 636.244, F.S.; conforming provisions to changes 50 made by the act; providing an effective date. 51 52 Be It Enacted by the Legislature of the State of Florida: 53 54 Section 1. Chapter 636, Florida Statutes, entitled “Prepaid 55 Limited Health Service Organizations and Discount Medical Plan 56 Organizations,” is retitled “Prepaid Limited Health Service 57 Organizations and Discount Plan Organizations.” 58 Section 2. Part II of chapter 636, Florida Statutes, 59 entitled “Discount Medical Plan Organizations,” is retitled 60 “Discount Plan Organizations.” 61 Section 3. Section 636.202, Florida Statutes, is amended to 62 read: 63 636.202 Definitions.—As used in this part, the term: 64 (1) “Discountmedicalplan” means a business arrangement or 65 contract in which a person, in exchange for fees, dues, charges, 66 or other consideration, provides access for plan members to 67 providers of medical services and the right to receive medical 68 services from those providers at a discount. The term“discount69medical plan”does not include any product regulated under 70 chapter 627, chapter 641, or part I of this chapter;, orany 71 medical services provided through a telecommunications medium 72 that does not offer a discount to the plan member for those 73 medical services; or any plan that does not charge a fee to plan 74 members. Until June 30, 2018, a discount plan may also be 75 referred to as a discount medical plan. 76 (2) “Discountmedicalplan organization” means an entity 77 thatwhich, in exchange for fees, dues, charges, or other 78 consideration, provides access for plan members to providers of 79 medical services and the right to receive medical services from 80 those providers at a discount. Until June 30, 2018, a discount 81 plan organization may also be referred to as a discount medical 82 plan organization. 83 (3) “Marketer” means a person or entity thatwhichmarkets, 84 promotes, sells, or distributes a discountmedicalplan, 85 including a private label entity thatwhichplaces its name on 86 and markets or distributes a discountmedicalplan but does not 87 operate a discountmedicalplan. 88 (4) “Medical services” means any care, service, or 89 treatment of illness or dysfunction of, or injury to, the human 90 body, including, but not limited to, physician care, inpatient 91 care, hospital surgical services, emergency services, ambulance 92 services, dental care services, vision care services, mental 93 health services, substance abuse services, chiropractic 94 services, podiatric care services, laboratory services, and 95 medical equipment and supplies. The term does not include 96 pharmaceutical supplies or prescriptions. 97 (5) “Member” means any person who pays fees, dues, charges, 98 or other consideration for the right to receive the purported 99 benefits of a discountmedicalplan. 100 (6) “Provider” means any person or institution thatwhich101 is contracted, directly or indirectly, with a discountmedical102 plan organization to provide medical services to members. 103 (7) “Provider network” means an entity thatwhich104 negotiates on behalf of more than one provider with a discount 105medicalplan organization to provide medical services to 106 members. 107 Section 4. Subsections (1), (2), (4), and (6) of section 108 636.204, Florida Statutes, are amended to read: 109 636.204 License required.— 110 (1) Before doing business in this state as a discount 111medicalplan organization, an entity must be a corporation, a 112 limited liability company, or a limited partnership, 113 incorporated, organized, formed, or registered under the laws of 114 this state or authorized to transact business in this state in 115 accordance with chapter 605, part I of chapter 607, chapter 617, 116 chapter 620, or chapter 865, and must be licensed by the office 117 as a discountmedicalplan organization or be licensed by the 118 office pursuant to chapter 624, part I of this chapter, or 119 chapter 641. 120 (2) An application for a license to operate as a discount 121medicalplan organization must be filed with the office on a 122 form prescribed by the commission. Such application must be 123 sworn to by an officer or authorized representative of the 124 applicant and be accompanied by the following, if applicable: 125 (a) A copy of the applicant’s articles of incorporation or 126 other organizing documents, including all amendments. 127 (b) A copy of the applicant’s bylaws. 128 (c) A list of the names, addresses, official positions, and 129 biographical information of the individuals who are responsible 130 for conducting the applicant’s affairs, including, but not 131 limited to, all members of the board of directors, board of 132 trustees, executive committee, or other governing board or 133 committee, the officers, contracted management company 134 personnel, and any person or entity owning or having the right 135 to acquire 10 percent or more of the voting securities of the 136 applicant. Such listing must fully disclose the extent and 137 nature of any contracts or arrangements between any individual 138 who is responsible for conducting the applicant’s affairs and 139 the discountmedicalplan organization, including any possible 140 conflicts of interest. 141 (d) A complete biographical statement,on forms prescribed 142 by the commission, an independent investigation report, and a 143 set of fingerprints, as provided in chapter 624, with respect to 144 each individual identified under paragraph (c). 145 (e) A statement generally describing the applicant, its 146 facilities and personnel, and the medical services to be 147 offered. 148 (f) A copy of the form of all contracts made or to be made 149 between the applicant and any providers or provider networks 150 regarding the provision of medical services to members. 151 (g) A copy of the form of any contract made or arrangement 152 to be made between the applicant and any person listed in 153 paragraph (c). 154 (h) A copy of the form of any contract made or to be made 155 between the applicant and any person, corporation, partnership, 156 or other entity for the performance on the applicant’s behalf of 157 any function, including, but not limited to, marketing, 158 administration, enrollment, investment management, and 159 subcontracting for the provision of health services to members. 160 (i) A copy of the applicant’s most recent financial 161 statements audited by an independent certified public 162 accountant. An applicant that is a subsidiary of a parent entity 163 that is publicly traded and that prepares audited financial 164 statements reflecting the consolidated operations of the parent 165 entity and the subsidiary may petition the office to accept, in 166 lieu of the audited financial statement of the applicant, the 167 audited financial statement of the parent entity and a written 168 guaranty by the parent entity that the minimum capital 169 requirements of the applicant required by this part will be met 170 by the parent entity. 171 (j) A description of the proposed method of marketing. 172 (k) A description of the subscriber complaint procedures to 173 be established and maintained. 174 (l) The fee for issuance of a license. 175 (m) Such other information as the commission or office may 176 reasonably require to make the determinations required by this 177 part. 178 (4) BeforePrior tolicensure by the office, each discount 179medicalplan organization must establish an Internet website so 180 as to conform to the requirements of s. 636.226. 181 (6) This part does not requireNothing in this part182requiresa provider who provides discounts to his or her own 183 patients to obtain and maintain a license as a discountmedical184 plan organization unless the provider charges patients fees, 185 dues, charges, or other consideration to receive medical 186 services from the provider at a discount. 187 Section 5. Section 636.208, Florida Statutes, is amended to 188 read: 189 636.208 Fees; charges; reimbursement.— 190 (1) A discountmedicalplan organization may charge a 191 periodic charge as well as a reasonable one-time processing fee 192 for a discountmedicalplan. 193 (2) If the member cancels his or her membership in the 194 discountmedicalplan organization within the first 30 days 195 after the effective date of enrollment in the plan or cancels 196 his or her membership consistent with the open enrollment rules 197 established by an employer or association for a plan having an 198 open enrollment period, the member shall receive a reimbursement 199 of all periodic charges upon return of the discount card to the 200 discountmedicalplan organization. 201 (3) If the discountmedicalplan organization cancels a 202 membership for any reason other than nonpayment of fees by the 203 member, the discountmedicalplan organization mustshallmake a 204 pro rata reimbursement of all periodic charges to the member. 205 (4) In addition to the reimbursement of periodic charges 206 for the reasons stated in subsections (2) and (3), a discount 207medicalplan organization shall also reimburse the member for 208 any portion of a one-time processing fee that exceeds $30 per 209 year. 210 Section 6. Section 636.212, Florida Statutes, is amended to 211 read: 212 636.212 Disclosures.—The following disclosures must be made 213 in writing to any prospective member and must be on the first 214 page of any advertisements, marketing materials, or brochures 215 relating to a discountmedicalplan. The first page is the page 216 that first includes the information describing benefits. The 217 disclosures must be printed in not less than 12-point type: 218 (1) That the plan is not insurance. 219 (2) That the plan provides discounts at certain health care 220 providers for medical services. 221 (3) That the plan does not make payments directly to the 222 providers of medical services. 223 (4) That the plan member is obligated to pay for all health 224 care services but will receive a discount from those health care 225 providers who have contracted with the discount plan 226 organization. 227 (5) The name and address of the licensed discountmedical228 plan organization. 229 230 The requirements of this section are met if the prospective 231 member cannot enroll without being presented with the required 232 disclosures and if the prospective member must acknowledge 233 acceptance of the plan terms and conditions before enrollment. 234 This section does not prohibit the discount plan organization 235 from making additional disclosures to a prospective memberIf236the initial contract is made by telephone, the disclosures237required by this section shall be made orally and provided in238the initial written materials that describe the benefits under239the discount medical plan provided to the prospective or new240member. 241 Section 7. Section 636.214, Florida Statutes, is amended to 242 read: 243 636.214 Provider agreements.— 244 (1) All providers offering medical services to members 245 under a discountmedicalplan must provide such services 246 pursuant to a written agreement. The agreement may be entered 247 into directly by the provider or by a provider network to which 248 the provider belongs. 249 (2) A provider agreement between a discountmedicalplan 250 organization and a provider must provide the following: 251 (a) A list of the services and products to be provided at a 252 discount. 253 (b) The amount or amounts of the discounts or, 254 alternatively, a fee schedule which reflects the provider’s 255 discounted rates. 256 (c) A statement that the provider will not charge members 257 more than the discounted rates. 258 (3) A provider agreement between a discountmedicalplan 259 organization and a provider network mustshallrequire that the 260 provider network have written agreements with its providers 261 which: 262 (a) Contain the terms described in subsection (2). 263 (b) Authorize the provider network to contract with the 264 discountmedicalplan organization on behalf of the provider. 265 (c) Require the network to maintain an up-to-date list of 266 its contracted providers and to provide that list on a monthly 267 basis to the discountmedicalplan organization. 268 (4) The discountmedicalplan organization shall maintain a 269 copy of each active provider agreement into which it has 270 entered. 271 Section 8. Section 636.216, Florida Statutes, is amended to 272 read: 273 636.216Charge orForm filings.— 274 (1)All charges to members must be filed with the office275and any charge to members greater than $30 per month or $360 per276year must be approved by the office before the charges can be277used. The discount medical plan organization has the burden of278proof that the charges bear a reasonable relation to the279benefits received by the member.280(2)There must be a written agreement between the discount 281medicalplan organization and the member specifying the benefits 282 under the discountmedicalplan and complying with the 283 disclosure requirements of this part. 284 (2)(3)All forms used, includingThe written agreement 285 pursuant to subsection (1)(2), membership applications, and 286 fulfillment materials that describe medical services as defined 287 in this part must first be filed with and approved by the 288 office. Every form filed shall be identified by a unique form 289 number placed in the lower left corner of each form. A form 290 previously approved by the office is not required to be approved 291 unless the form is materially changed. For purposes of this 292 subsection, a material change does not include a change in 293 charges, a change to the name of the marketer or entity 294 distributing the plan, the deletion of benefits, or the addition 295 of benefits that are not medical services as defined in this 296 part. 297 (3)(4)Acharge orform is considered approved on the 60th 298 day after its date of filing unless it has been previously 299 disapproved by the office. The office shall disapprove any form 300 that does not meet the requirements of this part or that is 301 unreasonable, discriminatory, misleading, or unfair. If such 302 filings are disapproved, the office mustshallnotify the 303 discountmedicalplan organization and mustshallspecify in the 304 notice the reasons for disapproval. 305 Section 9. Section 636.228, Florida Statutes, is amended to 306 read: 307 636.228 Marketing of discountmedicalplans.— 308 (1) All advertisements, marketing materials, brochures, and 309 discount cards used by marketers must be approved in writing for 310 such use by the discountmedicalplan organization. 311 (2) The discountmedicalplan organization mustshallhave 312 an executed written agreement with a marketer beforeprior to313 the marketer’s marketing, promoting, selling, or distributing 314 the discountmedicalplan. Such agreement mustshallprohibit 315 the marketer from using marketing materials, brochures, and 316 discount cards without the approval in writing by the discount 317medicalplan organization. The discountmedicalplan 318 organization may delegate functions to its marketers but shall 319 be bound by any acts of its marketers, within the scope of the 320 delegation, whichmarketers’ agency, thatdo not comply withthe321provisions ofthis part. 322 Section 10. Section 636.230, Florida Statutes, is amended 323 to read: 324 636.230 Bundling discountmedicalplans with other 325 products.—A marketer or discount plan organization selling a 326 discount plan with medical services and other services may 327 commingle those products on a single page of forms, 328 advertisements, marketing materials, or brochures. The office’s 329 approval of forms only pertains to the medical services 330 regulated by this partWhen a marketer or discount medical plan331organization sells a discount medical plan together with any332other product, the fees for the discount medical plan must be333provided in writing to the member if the fees exceed $30. 334 Section 11. Paragraph (b) of subsection (5) of section 335 408.9091, Florida Statutes, is amended to read: 336 408.9091 Cover Florida Health Care Access Program.— 337 (5) PLAN PROPOSALS.—The agency and the office shall 338 announce, no later than July 1, 2008, an invitation to negotiate 339 for Cover Florida plan entities to design a Cover Florida plan 340 proposal in which benefits and premiums are specified. 341 (b) The agency and the office may announce an invitation to 342 negotiate for the design of Cover Florida Plus products to 343 companies that offer supplemental insurance, discountmedical344 plan organizations licensed under part II of chapter 636, or 345 prepaid health clinics licensed under part II of chapter 641. 346 Section 12. Paragraph (d) of subsection (2) and paragraph 347 (d) of subsection (4) of section 408.910, Florida Statutes, are 348 amended to read: 349 408.910 Florida Health Choices Program.— 350 (2) DEFINITIONS.—As used in this section, the term: 351 (d) “Insurer” means an entity licensed under chapter 624 352 which offers an individual health insurance policy or a group 353 health insurance policy, a preferred provider organization as 354 defined in s. 627.6471, an exclusive provider organization as 355 defined in s. 627.6472,ora health maintenance organization 356 licensed under part I of chapter 641, or a prepaid limited 357 health service organization or discountmedicalplan 358 organization licensed under chapter 636. 359 (4) ELIGIBILITY AND PARTICIPATION.—Participation in the 360 program is voluntary and shall be available to employers, 361 individuals, vendors, and health insurance agents as specified 362 in this subsection. 363 (d) All eligible vendors who choose to participate and the 364 products and services that the vendors are permitted to sell are 365 as follows: 366 1. Insurers licensed under chapter 624 may sell health 367 insurance policies, limited benefit policies, other risk-bearing 368 coverage, and other products or services. 369 2. Health maintenance organizations licensed under part I 370 of chapter 641 may sell health maintenance contracts, limited 371 benefit policies, other risk-bearing products, and other 372 products or services. 373 3. Prepaid limited health service organizations may sell 374 products and services as authorized under part I of chapter 636, 375 and discountmedicalplan organizations may sell products and 376 services as authorized under part II of chapter 636. 377 4. Prepaid health clinic service providers licensed under 378 part II of chapter 641 may sell prepaid service contracts and 379 other arrangements for a specified amount and type of health 380 services or treatments. 381 5. Health care providers, including hospitals and other 382 licensed health facilities, health care clinics, licensed health 383 professionals, pharmacies, and other licensed health care 384 providers, may sell service contracts and arrangements for a 385 specified amount and type of health services or treatments. 386 6. Provider organizations, including service networks, 387 group practices, professional associations, and other 388 incorporated organizations of providers, may sell service 389 contracts and arrangements for a specified amount and type of 390 health services or treatments. 391 7. Corporate entities providing specific health services in 392 accordance with applicable state law may sell service contracts 393 and arrangements for a specified amount and type of health 394 services or treatments. 395 396 A vendor described in subparagraphs 3.-7. may not sell products 397 that provide risk-bearing coverage unless that vendor is 398 authorized under a certificate of authority issued by the Office 399 of Insurance Regulation and is authorized to provide coverage in 400 the relevant geographic area. Otherwise eligible vendors may be 401 excluded from participating in the program for deceptive or 402 predatory practices, financial insolvency, or failure to comply 403 with the terms of the participation agreement or other standards 404 set by the corporation. 405 Section 13. Subsection (11) of section 627.64731, Florida 406 Statutes, is amended to read: 407 627.64731 Leasing, renting, or granting access to a 408 participating provider.— 409 (11) This section does not apply to a contract between a 410 contracting entity and a discountmedicalplan organization 411 licensed or exempt under part II of chapter 636. 412 Section 14. Paragraph (c) of subsection (7) of section 413 636.003, Florida Statutes, is amended to read: 414 636.003 Definitions.—As used in this act, the term: 415 (7) “Prepaid limited health service organization” means any 416 person, corporation, partnership, or any other entity which, in 417 return for a prepayment, undertakes to provide or arrange for, 418 or provide access to, the provision of a limited health service 419 to enrollees through an exclusive panel of providers. Prepaid 420 limited health service organization does not include: 421 (c) Any person who is licensed pursuant to part II as a 422 discountmedicalplan organization. 423 Section 15. Paragraphs (c) and (d) of subsection (1) of 424 section 636.205, Florida Statutes, are amended to read: 425 636.205 Issuance of license; denial.— 426 (1) Following receipt of an application filed pursuant to 427 s. 636.204, the office shall review the application and notify 428 the applicant of any deficiencies contained therein. The office 429 shall issue a license to an applicant who has filed a completed 430 application pursuant to s. 636.204 upon payment of the fees 431 specified in s. 636.204 and upon the office being satisfied that 432 the following conditions are met: 433 (c) The ownership, control, and management of the entity 434 are competent and trustworthy and possess managerial experience 435 that would make the proposed operation beneficial to the 436 subscribers. The office mayshallnot grant or continue to grant 437 authority to transact the business of a discountmedicalplan 438 organization in this state at any time during which the office 439 has good reason to believe that the ownership, control, or 440 management of the organization includes any person whose 441 business operations are or have been marked by business 442 practices or conduct that is detrimental to the public, 443 stockholders, investors, or creditors. 444 (d) The discountmedicalplan organization has a complaint 445 procedure that will facilitate the resolution of subscriber 446 grievances and that includes both formal and informal steps 447 available within the organization. 448 Section 16. Section 636.206, Florida Statutes, is amended 449 to read: 450 636.206 Examinations and investigations.— 451 (1) The office may examine or investigate the business and 452 affairs of any discountmedicalplan organization. The office 453 may order any discountmedicalplan organization or applicant to 454 produce any records, books, files, advertising and solicitation 455 materials, or other information and may take statements under 456 oath to determine whether the discountmedicalplan organization 457 or applicant is in violation of the law or is acting contrary to 458 the public interest. The expenses incurred in conducting any 459 examination or investigation must be paid by the discount 460medicalplan organization or applicant. Examinations and 461 investigations must be conducted as provided in chapter 624. 462 (2) Failure by the discountmedicalplan organization to 463 pay the expenses incurred under subsection (1) is grounds for 464 denial or revocation. 465 Section 17. Section 636.207, Florida Statutes, is amended 466 to read: 467 636.207 Applicability of part.—Except as otherwise provided 468 in this part, discountmedicalplan organizations are governed 469 bythe provisions ofthis part and are exempt from the Florida 470 Insurance Code unless specifically referenced. 471 Section 18. Section 636.210, Florida Statutes, is amended 472 to read: 473 636.210 Prohibited activities of a discountmedicalplan 474 organization.— 475 (1) A discountmedicalplan organization may not: 476 (a) Use in its advertisements, marketing material, 477 brochures, and discount cards the term “insurance” except as 478 otherwise provided in this part or as a disclaimer of any 479 relationship between discountmedicalplan organization benefits 480 and insurance; 481 (b) Use in its advertisements, marketing material, 482 brochures, and discount cards the terms “health plan,” 483 “coverage,” “copay,” “copayments,” “preexisting conditions,” 484 “guaranteed issue,” “premium,” “PPO,” “preferred provider 485 organization,” or other terms in a manner that could reasonably 486 mislead a person into believing the discountmedicalplan was 487 health insurance; 488 (c) Have restrictions on free access to plan providers, 489 including, but not limited to, waiting periods and notification 490 periods; or 491 (d) Pay providers any fees for medical services. 492 (2) A discountmedicalplan organization may not collect or 493 accept money from a member for payment to a provider for 494 specific medical services furnished or to be furnished to the 495 member unless the organization has an active certificate of 496 authority from the office to act as an administrator. 497 Section 19. Subsection (1), paragraphs (b), (c), and (d) of 498 subsection (2), and subsection (3) of section 636.218, Florida 499 Statutes, are amended to read: 500 636.218 Annual reports.— 501 (1) Each discountmedicalplan organization shallmustfile 502 with the office, within 3 months after the end of each fiscal 503 year, an annual report. 504 (2) Such reports must be on forms prescribed by the 505 commission and must include: 506 (b) If different from the initial application or the last 507 annual report, a list of the names and residence addresses of 508 all persons responsible for the conduct of the organization’s 509 affairs, together with a disclosure of the extent and nature of 510 any contracts or arrangements between such persons and the 511 discountmedicalplan organization, including any possible 512 conflicts of interest. 513 (c) The number of discountmedicalplan members in the 514 state. 515 (d) Such other information relating to the performance of 516 the discountmedicalplan organization as is reasonably required 517 by the commission or office. 518 (3) Every discountmedicalplan organization thatwhich519 fails to file an annual report in the form and within the time 520 required by this section shall forfeit up to $500 for each day 521 for the first 10 days during which the neglect continues and 522 shall forfeit up to $1,000 for each day after the first 10 days 523 during which the neglect continues; and, upon notice by the 524 office to that effect, the organization’s authority to enroll 525 new members or to do business in this state ceases while such 526 default continues. The office shall deposit all sums collected 527 by the office under this section to the credit of the Insurance 528 Regulatory Trust Fund. The office may not collect more than 529 $50,000 for each report. 530 Section 20. Section 636.220, Florida Statutes, is amended 531 to read: 532 636.220 Minimum capital requirements.— 533 (1) Each discountmedicalplan organization shallmustat 534 all times maintain a net worth of at least $150,000. 535 (2) The office may not issue a license unless the discount 536medicalplan organization has a net worth of at least $150,000. 537 Section 21. Section 636.222, Florida Statutes, is amended 538 to read: 539 636.222 Suspension or revocation of license; suspension of 540 enrollment of new members; terms of suspension.— 541 (1) The office may suspend the authority of a discount 542medicalplan organization to enroll new members, revoke any 543 license issued to a discountmedicalplan organization, or order 544 compliance if the office finds that any of the following 545 conditions exist: 546 (a) The organization is not operating in compliance with 547 this part. 548 (b) The organization does not have the minimum net worth as 549 required by this part. 550 (c) The organization has advertised, merchandised, or 551 attempted to merchandise its services in such a manner as to 552 misrepresent its services or capacity for service or has engaged 553 in deceptive, misleading, or unfair practices with respect to 554 advertising or merchandising. 555 (d) The organization is not fulfilling its obligations as a 556medicaldiscountmedicalplan organization. 557 (e) The continued operation of the organization would be 558 hazardous to its members. 559 (2) If the office has cause to believe that grounds for the 560 suspension or revocation of a license exist, the office must 561shallnotify the discountmedicalplan organization in writing 562 specifically stating the grounds for suspension or revocation 563 and shall pursue a hearing on the matter in accordance withthe564provisions ofchapter 120. 565 (3) When the license of a discountmedicalplan 566 organization is surrendered or revoked, such organization must 567 proceed, immediately following the effective date of the order 568 of revocation, to wind up its affairs transacted under the 569 license. The organization may not engage in any further 570 advertising, solicitation, collecting of fees, or renewal of 571 contracts. 572 (4) The office shall, in its order suspending the authority 573 of a discountmedicalplan organization to enroll new members, 574 specify the period during which the suspension is to be in 575 effect and the conditions, if any, which must be met by the 576 discountmedicalplan organization beforeprior toreinstatement 577 of its license to enroll new members. The order of suspension is 578 subject to rescission or modification by further order of the 579 office beforeprior tothe expiration of the suspension period. 580 Reinstatement may not be made unless requested by the discount 581medicalplan organization; however, the office may not grant 582 reinstatement if it finds that the circumstances for which the 583 suspension occurred still exist or are likely to recur. 584 Section 22. Section 636.223, Florida Statutes, is amended 585 to read: 586 636.223 Administrative penalty.—In lieu of suspending or 587 revoking a certificate of authority whenever any discount 588medicalplan organization has been found to have violated any 589 provision of this part, the office may: 590 (1) Issue and cause to be served upon the organization 591 charged with the violation a copy of such findings and an order 592 requiring such organization to cease and desist from engaging in 593 the act or practice that constitutes the violation. 594 (2) Impose a monetary penalty of not less than $100 for 595 each violation, but not to exceed an aggregate penalty of 596 $75,000. 597 Section 23. Section 636.224, Florida Statutes, is amended 598 to read: 599 636.224 Notice of change of name or address of discount 600medicalplan organization.—Each discountmedicalplan 601 organization must provide the office at least 30 days’ advance 602 notice of any change in the discountmedicalplan organization’s 603 name, address, principal business address, or mailing address. 604 Section 24. Section 636.226, Florida Statutes, is amended 605 to read: 606 636.226 Provider name listing.—Each discountmedicalplan 607 organization must maintain on an Internet website an up-to-date 608 list of the names and addresses of the providers with which it 609 has contracted, on an Internet website page, the address of 610 which mustshallbe prominently displayed on all its 611 advertisements, marketing materials, brochures, and discount 612 cards. This section applies to those providers with whom the 613 discountmedicalplan organization has contracted directly, as 614 well as those who are members of a provider network with which 615 the discountmedicalplan organization has contracted. 616 Section 25. Section 636.232, Florida Statutes, is amended 617 to read: 618 636.232 Rules.—The commission may adopt rules to administer 619 this part, including rules for the licensing of discountmedical620 plan organizations; establishing standards for evaluating forms, 621 advertisements, marketing materials, brochures, and discount 622 cards; providing for the collection of data; relating to 623 disclosures to plan members; and defining terms used in this 624 part. 625 Section 26. Section 636.234, Florida Statutes, is amended 626 to read: 627 636.234 Service of process on a discountmedicalplan 628 organization.—Sections 624.422 and 624.423 apply to a discount 629medicalplan organization as if the discountmedicalplan 630 organization were an insurer. 631 Section 27. Section 636.236, Florida Statutes, is amended 632 to read: 633 636.236 Surety bond or security deposit.— 634 (1) Each discountmedicalplan organization licensed 635 pursuant tothe provisions ofthis part shallmustmaintain in 636 force a surety bond in its own name in an amount not less than 637 $35,000 to be used at the discretion of the office to protect 638 the financial interests of members who may be adversely affected 639 by the insolvency of a discountmedicalplan organization. The 640 bond must be issued by an insurance company that is licensed to 641 do business in this state. 642 (2) In lieu of the bond specified in subsection (1), a 643 licensed discountmedicalplan organization may deposit and 644 maintain deposited in trust with the department securities 645 eligible for deposit under s. 625.52 having at all times a value 646 of not less than $35,000. If a licensed discountmedicalplan 647 organization substitutes its deposited securities under this 648 subsection with a surety bond authorized in subsection (1), such 649 deposited securities mustshallbe returned to the discount 650medicalplan organization no later than 45 days following the 651 effective date of the surety bond. 652 (3) ANojudgment creditor or other claimant of a discount 653medicalplan organization, other than the office or department, 654 does notshallhave the right to levy upon any of the assets or 655 securities held in this state as a deposit under subsections (1) 656 and (2). 657 Section 28. Subsections (2) and (3) of section 636.238, 658 Florida Statutes, are amended to read: 659 636.238 Penalties for violation of this part.— 660 (2) A person who operates as or willfully aids and abets 661 another operating as a discountmedicalplan organization in 662 violation of s. 636.204(1) commits a felony punishable as 663 provided for in s. 624.401(4)(b), as if the unlicensed discount 664medicalplan organization were an unauthorized insurer, and the 665 fees, dues, charges, or other consideration collected from the 666 members by the unlicensed discountmedicalplan organization or 667 marketer were insurance premium. 668 (3) A person who collects fees for purported membership in 669 a discountmedicalplan but purposefully fails to provide the 670 promised benefits commits a theft, punishable as provided in s. 671 812.014. 672 Section 29. Subsection (1) of section 636.240, Florida 673 Statutes, is amended to read: 674 636.240 Injunctions.— 675 (1) In addition to the penalties and other enforcement 676 provisions of this part, the office may seek both temporary and 677 permanent injunctive relief when: 678 (a) A discountmedicalplan is being operated by any person 679 or entity that is not licensed pursuant to this part. 680 (b) Any person, entity, or discountmedicalplan 681 organization has engaged in any activity prohibited by this part 682 or any rule adopted pursuant to this part. 683 Section 30. Section 636.244, Florida Statutes, is amended 684 to read: 685 636.244 Unlicensed discountmedicalplan organizations. 686 SectionsThe provisions of ss.626.901-626.912 apply to the 687 activities of an unlicensed discountmedicalplan organization 688 as if the unlicensed discountmedicalplan organization were an 689 unauthorized insurer. 690 Section 31. This act shall take effect upon becoming a law.