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The Florida Statutes

The 2023 Florida Statutes (including Special Session C)

Chapter 631
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F.S. 631.820
631.820 Plan of operation.
(1) The plan shall submit to the office a proposed plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the plan. The proposed plan of operation and any amendments thereto shall become effective upon approval in writing by the office.
(2) All member HMOs shall comply with the approved plan of operation.
(3) The plan of operation shall, in addition to requirements enumerated elsewhere in this part:
(a) Establish procedures for handling the assets of the plan.
(b) Establish the amount and method of reimbursing members of the board of directors.
(c) Establish regular places and times for meetings of the board of directors.
(d) Establish procedures for keeping records of all financial transactions of the plan, its agents, and the board of directors.
(e) Establish procedures whereby selections for the board of directors shall be made and submitted to the department.
1(f) Establish any additional procedures for assessments under this part, including procedures to coordinate the administration and collection of member HMO assessments for long-term care insurer impairments and insolvencies with the board of directors of the Florida Life and Health Insurance Guaranty Association.
(g) Contain additional provisions necessary or proper for the execution of the powers and duties of the plan.
(4)1(a) The plan of operation may provide that any or all powers and duties of the plan, except those under ss. 631.818(7)(b) and (c) and 631.819, are delegated to an administrator that may be a corporation, association, or other organization that performs or will perform functions similar to those of this plan, or its equivalent.
(b) The board may select an administrator through a competitive bidding process to administer the plan. The board shall evaluate bids submitted under this subsection based on criteria established by the board, which criteria shall include:
1. The administrator’s proven ability to manage large group health insurance plans and HMOs.
2. The efficiency of the administrator’s claims-paying procedures.
3. An estimate of total charges for administering the plan.
4. Any other reasonable factors as set by the board.
(c) The administrator shall be reimbursed for any payments made on behalf of the plan and shall be paid for its performance of any function of the plan.
(d) A delegation under this subsection shall take effect only with the approval of both the board of directors and the office and may be made only to an administrator which extends protection not substantially less favorable and effective than that provided by this part. 1, 23, ch. 88-388; ss. 108, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 1367, ch. 2003-261; s. 10, ch. 2019-83.
1Note.Section 12, ch. 2019-83, provides that “[s]ection 631.738, Florida Statutes, as created by this act, and the amendments made to ss. 631.713, 631.717, 631.718, 631.721, 631.818, 631.819, and 631.820, Florida Statutes, by this act apply only to long-term care insurer impairment and insolvency assessments that result from an insurer being adjudged insolvent by a court of competent jurisdiction or being determined by the office to be impaired on or after [June 7, 2019].”