Florida Proposal Would Re-Open Enrollment of State Program for Otherwise Uninsurable Individuals

Florida residents unable to purchase health insurance due to "serious health conditions" may once again be able to receive coverage from the Florida Comprehensive Health Association under a new plan proposed by the state's insurance commissioner, the St. Petersburg Times reports. FCHA -- the state's "insurance provider of last resort" for individuals with conditions that typically preclude them from obtaining coverage in the private market -- currently covers about 700 people but has been closed to new enrollees for 10 years. Commissioner Tom Gallagher's proposal would require all companies selling health insurance in the state to pay $1 per month per subscriber (with a single fee for family policies) to FCHA, although companies would be given the option of passing this fee along to policyholders. Medicare supplemental insurance (Medigap) policies would be exempt from the fee. Gallagher said that because FCHA has been unable to accept new participants, many people are creating one-person businesses in order to obtain coverage through the small-group market, as they can not be excluded from coverage for health reasons. That market is facing several problems, however, such as annual premium hikes of 15%-20% and an exodus of two-thirds of the market's managed care companies, he said, adding that many individuals with health problems are finding "no legitimate place ... to turn for coverage." Under Gallagher's plan, coverage through FCHA would have an annual deductible of at least $1,000 for major medical expenses, and pre-existing conditions could be excluded from coverage for 12 months in many cases. The plan must be approved by the Legislature before it can be implemented (Huntley, St. Petersburg Times, 2/13).