Senate Bill sb1740

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    Florida Senate - 2007                                  SB 1740

    By Senator Fasano





    11-1208-07

  1                      A bill to be entitled

  2         An act relating to the Florida Kidcare program;

  3         amending s. 409.811, F.S.; defining the term

  4         "maximum income threshold"; amending s.

  5         409.8132, F.S.; revising the income eligibility

  6         requirements for enrollment in the Medikids

  7         program; amending s. 409.8134, F.S.; providing

  8         for year-round enrollment only when funding is

  9         available to finance increased enrollment;

10         amending s. 409.814, F.S.; revising the income

11         eligibility requirements for enrollment in the

12         Florida Kidcare program and the Florida Healthy

13         Kids program; amending s. 409.818, F.S.;

14         providing requirements for the maximum income

15         threshold; authorizing the Agency for Health

16         Care Administration to seek a state plan

17         amendment and waiver authority if necessary;

18         amending s. 624.91, F.S.; revising legislative

19         intent concerning eligibility for the Florida

20         Healthy Kids program; providing an effective

21         date.

22  

23  Be It Enacted by the Legislature of the State of Florida:

24  

25         Section 1.  Section 409.811, Florida Statutes, is

26  amended to read:

27         409.811  Definitions relating to Florida Kidcare

28  Act.--As used in ss. 409.810-409.820, the term:

29         (1)  "Actuarially equivalent" means that:

30  

31  

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 1         (a)  The aggregate value of the benefits included in

 2  health benefits coverage is equal to the value of the benefits

 3  in the benchmark benefit plan; and

 4         (b)  The benefits included in health benefits coverage

 5  are substantially similar to the benefits included in the

 6  benchmark benefit plan, except that preventive health services

 7  must be the same as in the benchmark benefit plan.

 8         (2)  "Agency" means the Agency for Health Care

 9  Administration.

10         (3)  "Applicant" means a parent or guardian of a child

11  or a child whose disability of nonage has been removed under

12  chapter 743, who applies for determination of eligibility for

13  health benefits coverage under ss. 409.810-409.820.

14         (4)  "Benchmark benefit plan" means the form and level

15  of health benefits coverage established in s. 409.815.

16         (5)  "Child" means any person under 19 years of age.

17         (6)  "Child with special health care needs" means a

18  child whose serious or chronic physical or developmental

19  condition requires extensive preventive and maintenance care

20  beyond that required by typically healthy children. Health

21  care utilization by such a child exceeds the statistically

22  expected usage of the normal child adjusted for chronological

23  age, and such a child often needs complex care requiring

24  multiple providers, rehabilitation services, and specialized

25  equipment in a number of different settings.

26         (7)  "Children's Medical Services Network" or "network"

27  means a statewide managed care service system as defined in s.

28  391.021(1).

29         (8)  "Community rate" means a method used to develop

30  premiums for a health insurance plan that spreads financial

31  

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 1  risk across a large population and allows adjustments only for

 2  age, gender, family composition, and geographic area.

 3         (9)  "Department" means the Department of Health.

 4         (10)  "Enrollee" means a child who has been determined

 5  eligible for and is receiving coverage under ss.

 6  409.810-409.820.

 7         (11)  "Family" means the group or the individuals whose

 8  income is considered in determining eligibility for the

 9  Florida Kidcare program. The family includes a child with a

10  custodial parent or caretaker relative who resides in the same

11  house or living unit or, in the case of a child whose

12  disability of nonage has been removed under chapter 743, the

13  child. The family may also include other individuals whose

14  income and resources are considered in whole or in part in

15  determining eligibility of the child.

16         (12)  "Family income" means cash received at periodic

17  intervals from any source, such as wages, benefits,

18  contributions, or rental property. Income also may include any

19  money that would have been counted as income under the Aid to

20  Families with Dependent Children (AFDC) state plan in effect

21  prior to August 22, 1996.

22         (13)  "Florida Kidcare program," "Kidcare program," or

23  "program" means the health benefits program administered

24  through ss. 409.810-409.820.

25         (14)  "Guarantee issue" means that health benefits

26  coverage must be offered to an individual regardless of the

27  individual's health status, preexisting condition, or claims

28  history.

29         (15)  "Health benefits coverage" means protection that

30  provides payment of benefits for covered health care services

31  or that otherwise provides, either directly or through

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 1  arrangements with other persons, covered health care services

 2  on a prepaid per capita basis or on a prepaid aggregate

 3  fixed-sum basis.

 4         (16)  "Health insurance plan" means health benefits

 5  coverage under the following:

 6         (a)  A health plan offered by any certified health

 7  maintenance organization or authorized health insurer, except

 8  a plan that is limited to the following: a limited benefit,

 9  specified disease, or specified accident; hospital indemnity;

10  accident only; limited benefit convalescent care; Medicare

11  supplement; credit disability; dental; vision; long-term care;

12  disability income; coverage issued as a supplement to another

13  health plan; workers' compensation liability or other

14  insurance; or motor vehicle medical payment only; or

15         (b)  An employee welfare benefit plan that includes

16  health benefits established under the Employee Retirement

17  Income Security Act of 1974, as amended.

18         (17)  "Maximum income threshold" means a percentage of

19  the current federal poverty level used to determine

20  eligibility for certain program components, as approved by

21  federal waiver or an amendment to the state plan.

22         (18)(17)  "Medicaid" means the medical assistance

23  program authorized by Title XIX of the Social Security Act,

24  and regulations thereunder, and ss. 409.901-409.920, as

25  administered in this state by the agency.

26         (19)(18)  "Medically necessary" means the use of any

27  medical treatment, service, equipment, or supply necessary to

28  palliate the effects of a terminal condition, or to prevent,

29  diagnose, correct, cure, alleviate, or preclude deterioration

30  of a condition that threatens life, causes pain or suffering,

31  or results in illness or infirmity and which is:

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 1         (a)  Consistent with the symptom, diagnosis, and

 2  treatment of the enrollee's condition;

 3         (b)  Provided in accordance with generally accepted

 4  standards of medical practice;

 5         (c)  Not primarily intended for the convenience of the

 6  enrollee, the enrollee's family, or the health care provider;

 7         (d)  The most appropriate level of supply or service

 8  for the diagnosis and treatment of the enrollee's condition;

 9  and

10         (e)  Approved by the appropriate medical body or health

11  care specialty involved as effective, appropriate, and

12  essential for the care and treatment of the enrollee's

13  condition.

14         (20)(19)  "Medikids" means a component of the Florida

15  Kidcare program of medical assistance authorized by Title XXI

16  of the Social Security Act, and regulations thereunder, and s.

17  409.8132, as administered in the state by the agency.

18         (21)(20)  "Preexisting condition exclusion" means, with

19  respect to coverage, a limitation or exclusion of benefits

20  relating to a condition based on the fact that the condition

21  was present before the date of enrollment for such coverage,

22  whether or not any medical advice, diagnosis, care, or

23  treatment was recommended or received before such date.

24         (22)(21)  "Premium" means the entire cost of a health

25  insurance plan, including the administration fee or the risk

26  assumption charge.

27         (23)(22)  "Premium assistance payment" means the

28  monthly consideration paid by the agency per enrollee in the

29  Florida Kidcare program towards health insurance premiums.

30  

31  

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 1         (24)(23)  "Qualified alien" means an alien as defined

 2  in s. 431 of the Personal Responsibility and Work Opportunity

 3  Reconciliation Act of 1996, as amended, Pub. L. No. 104-193.

 4         (25)(24)  "Resident" means a United States citizen, or

 5  qualified alien, who is domiciled in this state.

 6         (26)(25)  "Rural county" means a county having a

 7  population density of less than 100 persons per square mile,

 8  or a county defined by the most recent United States Census as

 9  rural, in which there is no prepaid health plan participating

10  in the Medicaid program as of July 1, 1998.

11         (27)(26)  "Substantially similar" means that, with

12  respect to additional services as defined in s. 2103(c)(2) of

13  Title XXI of the Social Security Act, these services must have

14  an actuarial value equal to at least 75 percent of the

15  actuarial value of the coverage for that service in the

16  benchmark benefit plan and, with respect to the basic services

17  as defined in s. 2103(c)(1) of Title XXI of the Social

18  Security Act, these services must be the same as the services

19  in the benchmark benefit plan.

20         Section 2.  Subsection (6) of section 409.8132, Florida

21  Statutes, is amended to read:

22         409.8132  Medikids program component.--

23         (6)  ELIGIBILITY.--

24         (a)  A child who has attained the age of 1 year but who

25  is under the age of 5 years is eligible to enroll in the

26  Medikids program component of the Florida Kidcare program, if

27  the child is a member of a family that has a family income

28  which exceeds the Medicaid applicable income level as

29  specified in s. 409.903, but which is equal to or below the

30  maximum income threshold 200 percent of the current federal

31  poverty level.  In determining the eligibility of such a

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 1  child, an assets test is not required. A child who is eligible

 2  for Medikids may elect to enroll in Florida Healthy Kids

 3  coverage or employer-sponsored group coverage. However, a

 4  child who is eligible for Medikids may participate in the

 5  Florida Healthy Kids program only if the child has a sibling

 6  participating in the Florida Healthy Kids program and the

 7  child's county of residence permits such enrollment.

 8         (b)  The provisions of s. 409.814(3), (4), and (5)

 9  shall be applicable to the Medikids program.

10         Section 3.  Subsection (2) of section 409.8134, Florida

11  Statutes, is amended to read:

12         409.8134  Program expenditure ceiling.--

13         (2)  The Florida Kidcare program may conduct enrollment

14  at any time throughout the year for the purpose of enrolling

15  children eligible for all program components listed in s.

16  409.813 except Medicaid. The four Florida Kidcare

17  administrators shall work together to ensure that the

18  year-round enrollment period is announced statewide. Eligible

19  children shall be enrolled on a first-come, first-served basis

20  using the date the enrollment application is received.

21  Enrollment shall immediately cease when the expenditure

22  ceiling is reached. Year-round enrollment shall only be held

23  only if the Social Services Estimating Conference determines

24  that sufficient federal and state funds will be available to

25  finance the increased enrollment through federal fiscal year

26  2007. Any individual who is not enrolled must reapply by

27  submitting a new application. The application for the Florida

28  Kidcare program shall be valid for a period of 120 days after

29  the date it was received. At the end of the 120-day period, if

30  the applicant has not been enrolled in the program, the

31  application shall be invalid and the applicant shall be

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 1  notified of the action. The applicant may resubmit the

 2  application after notification of the action taken by the

 3  program. Except for the Medicaid program, whenever the Social

 4  Services Estimating Conference determines that there are

 5  presently, or will be by the end of the current fiscal year,

 6  insufficient funds to finance the current or projected

 7  enrollment in the Florida Kidcare program, all additional

 8  enrollment must cease and additional enrollment may not resume

 9  until sufficient funds are available to finance such

10  enrollment.

11         Section 4.  Section 409.814, Florida Statutes, is

12  amended to read:

13         409.814  Eligibility.--A child who has not reached 19

14  years of age whose family income is equal to or below the

15  maximum income threshold 200 percent of the federal poverty

16  level is eligible for the Florida Kidcare program as provided

17  in this section. For enrollment in the Children's Medical

18  Services Network, a complete application includes the medical

19  or behavioral health screening. If, subsequently, an

20  individual is determined to be ineligible for coverage, he or

21  she must immediately be disenrolled from the respective

22  Florida Kidcare program component.

23         (1)  A child who is eligible for Medicaid coverage

24  under s. 409.903 or s. 409.904 must be enrolled in Medicaid

25  and is not eligible to receive health benefits under any other

26  health benefits coverage authorized under the Florida Kidcare

27  program.

28         (2)  A child who is not eligible for Medicaid, but who

29  is eligible for the Florida Kidcare program, may obtain health

30  benefits coverage under any of the other components listed in

31  s. 409.813 if such coverage is approved and available in the

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 1  county in which the child resides. However, a child who is

 2  eligible for Medikids may participate in the Florida Healthy

 3  Kids program only if the child has a sibling participating in

 4  the Florida Healthy Kids program and the child's county of

 5  residence permits such enrollment.

 6         (3)  A child who is eligible for the Florida Kidcare

 7  program who is a child with special health care needs, as

 8  determined through a medical or behavioral screening

 9  instrument, is eligible for health benefits coverage from and

10  shall be referred to the Children's Medical Services Network.

11         (4)  The following children are not eligible to receive

12  premium assistance for health benefits coverage under the

13  Florida Kidcare program, except under Medicaid if the child

14  would have been eligible for Medicaid under s. 409.903 or s.

15  409.904 as of June 1, 1997:

16         (a)  A child who is eligible for coverage under a state

17  health benefit plan on the basis of a family member's

18  employment with a public agency in the state.

19         (b)  A child who is currently eligible for or covered

20  under a family member's group health benefit plan or under

21  other employer health insurance coverage, excluding coverage

22  provided under the Florida Healthy Kids Corporation as

23  established under s. 624.91, provided that the cost of the

24  child's participation is not greater than 5 percent of the

25  family's income. This provision shall be applied during

26  redetermination for children who were enrolled prior to July

27  1, 2004. These enrollees shall have 6 months of eligibility

28  following redetermination to allow for a transition to the

29  other health benefit plan.

30         (c)  A child who is seeking premium assistance for the

31  Florida Kidcare program through employer-sponsored group

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 1  coverage, if the child has been covered by the same employer's

 2  group coverage during the 6 months prior to the family's

 3  submitting an application for determination of eligibility

 4  under the program.

 5         (d)  A child who is an alien, but who does not meet the

 6  definition of qualified alien, in the United States.

 7         (e)  A child who is an inmate of a public institution

 8  or a patient in an institution for mental diseases.

 9         (f)  A child who has had his or her coverage in an

10  employer-sponsored health benefit plan voluntarily canceled in

11  the last 6 months, except those children who were on the

12  waiting list prior to March 12, 2004.

13         (g)  A child who is otherwise eligible for Kidcare and

14  who has a preexisting condition that prevents coverage under

15  another insurance plan as described in paragraph (b) which

16  would have disqualified the child for Kidcare if the child

17  were able to enroll in the plan shall be eligible for Kidcare

18  coverage when enrollment is possible.

19         (5)  A child whose family income is above the maximum

20  income threshold 200 percent of the federal poverty level or a

21  child who is excluded under the provisions of subsection (4)

22  may participate in the Medikids program as provided in s.

23  409.8132 or, if the child is ineligible for Medikids by reason

24  of age, in the Florida Healthy Kids program, subject to the

25  following provisions:

26         (a)  The family is not eligible for premium assistance

27  payments and must pay the full cost of the premium, including

28  any administrative costs.

29         (b)  The agency is authorized to place limits on

30  enrollment in Medikids by these children in order to avoid

31  adverse selection. The number of children participating in

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 1  Medikids whose family income exceeds the maximum income

 2  threshold 200 percent of the federal poverty level must not

 3  exceed 10 percent of total enrollees in the Medikids program.

 4         (c)  The board of directors of the Florida Healthy Kids

 5  Corporation is authorized to place limits on enrollment of

 6  these children in order to avoid adverse selection. In

 7  addition, the board is authorized to offer a reduced benefit

 8  package to these children in order to limit program costs for

 9  such families. The number of children participating in the

10  Florida Healthy Kids program whose family income exceeds the

11  maximum income threshold 200 percent of the federal poverty

12  level must not exceed 10 percent of total enrollees in the

13  Florida Healthy Kids program.

14         (6)  Once a child is enrolled in the Florida Kidcare

15  program, the child is eligible for coverage under the program

16  for 12 months without a redetermination or reverification of

17  eligibility, if the family continues to pay the applicable

18  premium. Eligibility for program components funded through

19  Title XXI of the Social Security Act shall terminate when a

20  child attains the age of 19. Effective January 1, 1999, a

21  child who has not attained the age of 5 and who has been

22  determined eligible for the Medicaid program is eligible for

23  coverage for 12 months without a redetermination or

24  reverification of eligibility.

25         (7)  When determining or reviewing a child's

26  eligibility under the Florida Kidcare program, the applicant

27  shall be provided with reasonable notice of changes in

28  eligibility which may affect enrollment in one or more of the

29  program components. When a transition from one program

30  component to another is authorized, there shall be cooperation

31  between the program components and the affected family which

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 1  promotes continuity of health care coverage. Any authorized

 2  transfers must be managed within the program's overall

 3  appropriated or authorized levels of funding. Each component

 4  of the program shall establish a reserve to ensure that

 5  transfers between components will be accomplished within

 6  current year appropriations. These reserves shall be reviewed

 7  by each convening of the Social Services Estimating Conference

 8  to determine the adequacy of such reserves to meet actual

 9  experience.

10         (8)  In determining the eligibility of a child, an

11  assets test is not required. Each applicant shall provide

12  written documentation during the application process and the

13  redetermination process, including, but not limited to, the

14  following:

15         (a)  Proof of family income, which must include a copy

16  of the applicant's most recent federal income tax return. In

17  the absence of a federal income tax return, an applicant may

18  submit wages and earnings statements (pay stubs), W-2 forms,

19  or other appropriate documents.

20         (b)  A statement from all family members that:

21         1.  Their employer does not sponsor a health benefit

22  plan for employees; or

23         2.  The potential enrollee is not covered by the

24  employer-sponsored health benefit plan because the potential

25  enrollee is not eligible for coverage, or, if the potential

26  enrollee is eligible but not covered, a statement of the cost

27  to enroll the potential enrollee in the employer-sponsored

28  health benefit plan.

29         (9)  Subject to paragraph (4)(b) and s. 624.91(4), the

30  Florida Kidcare program shall withhold benefits from an

31  enrollee if the program obtains evidence that the enrollee is

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 1  no longer eligible, submitted incorrect or fraudulent

 2  information in order to establish eligibility, or failed to

 3  provide verification of eligibility. The applicant or enrollee

 4  shall be notified that because of such evidence program

 5  benefits will be withheld unless the applicant or enrollee

 6  contacts a designated representative of the program by a

 7  specified date, which must be within 10 days after the date of

 8  notice, to discuss and resolve the matter. The program shall

 9  make every effort to resolve the matter within a timeframe

10  that will not cause benefits to be withheld from an eligible

11  enrollee.

12         (10)  The following individuals may be subject to

13  prosecution in accordance with s. 414.39:

14         (a)  An applicant obtaining or attempting to obtain

15  benefits for a potential enrollee under the Florida Kidcare

16  program when the applicant knows or should have known the

17  potential enrollee does not qualify for the Florida Kidcare

18  program.

19         (b)  An individual who assists an applicant in

20  obtaining or attempting to obtain benefits for a potential

21  enrollee under the Florida Kidcare program when the individual

22  knows or should have known the potential enrollee does not

23  qualify for the Florida Kidcare program.

24         Section 5.  Subsection (3) of section 409.818, Florida

25  Statutes, is amended to read:

26         409.818  Administration.--In order to implement ss.

27  409.810-409.820, the following agencies shall have the

28  following duties:

29         (3)  The Agency for Health Care Administration, under

30  the authority granted in s. 409.914(1), shall:

31  

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 1         (a)  Calculate the premium assistance payment necessary

 2  to comply with the premium and cost-sharing limitations

 3  specified in s. 409.816. The premium assistance payment for

 4  each enrollee in a health insurance plan participating in the

 5  Florida Healthy Kids Corporation shall equal the premium

 6  approved by the Florida Healthy Kids Corporation and the

 7  Office of Insurance Regulation of the Financial Services

 8  Commission pursuant to ss. 627.410 and 641.31, less any

 9  enrollee's share of the premium established within the

10  limitations specified in s. 409.816. The premium assistance

11  payment for each enrollee in an employer-sponsored health

12  insurance plan approved under ss. 409.810-409.820 shall equal

13  the premium for the plan adjusted for any benchmark benefit

14  plan actuarial equivalent benefit rider approved by the Office

15  of Insurance Regulation pursuant to ss. 627.410 and 641.31,

16  less any enrollee's share of the premium established within

17  the limitations specified in s. 409.816. In calculating the

18  premium assistance payment levels for children with family

19  coverage, the agency shall set the premium assistance payment

20  levels for each child proportionately to the total cost of

21  family coverage.

22         (b)  Make premium assistance payments to health

23  insurance plans on a periodic basis. The agency may use its

24  Medicaid fiscal agent or a contracted third-party

25  administrator in making these payments.  The agency may

26  require health insurance plans that participate in the

27  Medikids program or employer-sponsored group health insurance

28  to collect premium payments from an enrollee's family.

29  Participating health insurance plans shall report premium

30  payments collected on behalf of enrollees in the program to

31  

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 1  the agency in accordance with a schedule established by the

 2  agency.

 3         (c)  Monitor compliance with quality assurance and

 4  access standards developed under s. 409.820.

 5         (d)  Establish a mechanism for investigating and

 6  resolving complaints and grievances from program applicants,

 7  enrollees, and health benefits coverage providers, and

 8  maintain a record of complaints and confirmed problems. In the

 9  case of a child who is enrolled in a health maintenance

10  organization, the agency must use the provisions of s. 641.511

11  to address grievance reporting and resolution requirements.

12         (e)  Approve health benefits coverage for participation

13  in the program, following certification by the Office of

14  Insurance Regulation under subsection (4).

15         (f)  Adopt rules necessary for calculating premium

16  assistance payment levels, making premium assistance payments,

17  monitoring access and quality assurance standards,

18  investigating and resolving complaints and grievances,

19  administering the Medikids program, and approving health

20  benefits coverage.

21  

22  The agency is designated the lead state agency for Title XXI

23  of the Social Security Act for purposes of receipt of federal

24  funds, for reporting purposes, and for ensuring compliance

25  with federal and state regulations and rules. The agency shall

26  seek a state plan amendment and waiver authority, if

27  necessary, from the federal Centers for Medicare and Medicaid

28  Services for the highest maximum income threshold of up to 300

29  percent of the most recently stated federal poverty limit.

30  Until the federal agency approves the request, the maximum

31  income threshold used for the Florida Kidcare program shall be

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 1  200 percent of the most recently stated federal poverty limit

 2  or the highest income threshold allowed under current federal

 3  law and the state plan amendment, whichever is higher. Any

 4  such expansion under this subsection is subject to a specified

 5  appropriation for such purpose.

 6         Section 6.  Paragraph (b) of subsection (2) of section

 7  624.91, Florida Statutes, is amended to read:

 8         624.91  The Florida Healthy Kids Corporation Act.--

 9         (2)  LEGISLATIVE INTENT.--

10         (b)  It is the intent of the Legislature that the

11  Florida Healthy Kids Corporation serve as one of several

12  providers of services to children eligible for medical

13  assistance under Title XXI of the Social Security Act.

14  Although the corporation may serve other children, the

15  Legislature intends the primary recipients of services

16  provided through the corporation be school-age children with a

17  family income below the maximum income threshold as defined in

18  s. 409.811(17) 200 percent of the federal poverty level, who

19  do not qualify for Medicaid. It is also the intent of the

20  Legislature that state and local government Florida Healthy

21  Kids funds be used to continue coverage, subject to specific

22  appropriations in the General Appropriations Act, to children

23  not eligible for federal matching funds under Title XXI.

24         Section 7.  This act shall take effect upon becoming a

25  law.

26  

27  

28  

29  

30  

31  

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Defines "maximum income threshold." Provides income
      eligibility requirements for enrollment in the Medikids
 4    program. Provides for year-round enrollment only when
      funding is available to finance increased enrollment.
 5    Provides income eligibility requirements for enrollment
      in the Florida Kidcare program. Provides requirements for
 6    the maximum income threshold. Authorizes the Agency for
      Health Care Administration to seek a state plan amendment
 7    and waiver authority if necessary. Provides legislative
      intent.
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CODING: Words stricken are deletions; words underlined are additions.