FL H0703

Requires managed care organizations contracting with Medicaid to spend at least 85 percent of monthly premium revenue on direct health care benefits for enrollees.

Mandates quarterly certification to the Agency for Health Care Administration of medical loss ratios for the organization and all subcontractors, with behavioral health ratios reported separately.

Requires managed care organizations to immediately pay the agency an amount equal to the difference between 85 percent of premium revenue and actual direct health care expenditures if the medical loss ratio falls below 85-to-15.

Directs the Agency for Health Care Administration to adopt rules establishing sanctions for violations, with collected fines supplementing the agency's Medicaid budget rather than reverting to the General Revenue Fund.

Assigns all requirements and penalties to any parent corporation, subsequent owner, or successor in interest of the managed care organization, effective July 1, 2010.