Florida enacted insurance reform during the 1990's.
In the 1990's, the state of Florida took action and made laws to reform the health care system. These laws were designed to help those with pre-existing health conditions that did not qualify for state aid through Medicare or Medicaid and protect them from increases in insurance prices.
Individual Coverage
Florida law does not guarantee that all residents have access to health insurance. Most insurance companies take into consideration the health of the individual applying for insurance before determining whether or not to offer insurance coverage. Those that obtain health insurance coverage, however, do have a guarantee to renew the policy. Exceptions to the guaranteed renewability law may be made if the individual moves outside of the insurance plan's coverage area or if the insurance company decides to terminate all insurance coverage across the state of Florida.
Small Group Coverage
Florida insurance companies that offer small group coverage, must become a risk-assuming carrier or become a carrier that offers those high risk individuals with coverage, the option of being re-insured with the company.The definition of a small group in Florida is a company with 50 employees or less. Florida law states that a health insurance company that offers small group coverage must base the individual's premium on age, the number of family members, gender, tobacco use, and location. Insurance rates may not be based on the health of any group or individual or past claims history. Small group insurance companies are required by law to offer a standard policy and a basic policy to those that wish to be covered with their employer. Standard policy is a type of major medical coverage and the basic policy may have lower benefits, but is often more affordable than the standard policy.
Rate Regulation/Disapproval
According to Flsenate.gov, all insurance companies that issue health insurance policies in Florida must file their rates with the Florida Department of Insurance. This must be filed at least 30 days prior to use and allows the Department of Insurance to determine if the rates will be approved or disapproved. The Florida Department of Insurance may decide to disapprove the rates if they are found to provide benefits which are unreasonable in relationship to the amount of the premium charged to the individual for coverage. This helps to discourage insurance companies from charging exorbitant prices for coverage or participate in unfair discrimination in sales practices.
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