Florida passes bill to boost private health coverage for uninsured

The state hopes to foster development of new, affordable options for uninsured individuals and small-business employees.

By Doug Trapp, AMNews staff. June 2, 2008.

Washington -- Florida lawmakers early last month adopted a bill that aims to increase access to affordable health coverage by allowing insurers to offer plans not subject to state benefit mandates.

Under the legislation, private health insurers would contract with the state through a new program called Cover Florida to offer coverage options to anyone who has been uninsured for at least six months. Eligibility would be faster for people who have lost their jobs. The bill would require the state to approve at least one statewide plan.

In addition, the measure would allow insurers and other companies to offer more flexible insurance options and other products geared toward businesses with 50 or fewer employees through a new initiative called Health Choices. These products also would be exempt from insurance mandates. About 3.8 million Floridians lack health coverage.

The Florida Medical Assn. supports the legislation, which Gov. Charlie Crist is expected to sign. "If this is done right, you'll vastly increase the number of insured patients and give them things like catastrophic care they need and perhaps preventive services they want," said David McKalip, MD, an FMA board member and chair of its council on medical economics.

The Florida Assn. of Health Plans' 21 members are excited about the new flexibility the bill would provide by exempting the new plans from the state's health benefit mandates, said Jim Bracher, the association's executive vice president. "The idea that you could develop a plan that would be more tailored to the kinds of things that your potential customers would want, we believe is a big plus."