Florida House Expected To Approve Plan Allowing Groups To Sell ‘Bare-Bones’ Health Plans to Uninsured

The Florida House appears "poised" to approve measures that would expand the number of insured residents by allowing insurance companies and other groups to sell low-cost, "bare-bones" health plans, the Orlando Sentinel reports (Hollis, Orlando Sentinel, 3/8). The plans would be exempt from state laws that, in an effort to protect consumers from fraud, require health plans to cover 51 benefit areas, including mammograms, HIV-related treatment and certain emergency care services (Dorschner, Miami Herald, 3/8). The so-called "health-flex plans," which according to insurance industry lobbyist Sam Miller could be 30% to 40% less expensive than traditional health plans, would offer another option to uninsured Florida residents who earn too much to qualify for Medicaid or cannot afford employer-based coverage. The state House is considering two measures that would set up the health-flex plans. One bill (HB 111), up for a floor vote next week, would establish a pilot program in Broward and Miami-Dade counties and a "multi-county area" in the Panhandle, under which a "wide range" of groups, including private insurers, local governments, social service organizations and churches, could sell the plans (Orlando Sentinel, 3/8). Gov. Jeb Bush (R) backs HB 111 (Miami Herald, 3/8). The other bill -- HB 913, which was "tentatively approved" by the House March 7 -- would allow small businesses around the state to offer their employees the health-flex plans (Orlando Sentinel, 3/8). State Sen. Durell Peaden (R) said the health-flex plans would allow the state to "offer a whole array of options." He added, "If you want the Cadillac, go buy the Cadillac. But we don't want to stop somebody who only can afford a Ford" (Miami Herald, 3/8). But Democrats, consumer groups and other critics have called the new plans "dangerous," saying they "would lack sufficient safeguards to keep people from being defrauded" (Orlando Sentinel, 3/8). Ross Tucker, who runs an insurance company in Crawfordville, Fla., said, "A Ford's OK, but buyers better be very careful. You may be getting half a car" (Miami Herald, 3/8).