Senate Bill sb0934c1

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    Florida Senate - 2007                            CS for SB 934

    By the Committee on Health Policy; and Senator Dawson





    587-2149-07

  1                      A bill to be entitled

  2         An act relating to Medicaid services for

  3         children; amending s. 409.912, F.S.; providing

  4         for children who are eligible for Medicaid and

  5         who reside in an area in which a managed care

  6         pilot program has been implemented to receive

  7         behavioral health care services under the pilot

  8         program rather than under a specialty prepaid

  9         plan developed by the Agency for Health Care

10         Administration and the Department of Children

11         and Family Services; amending s. 409.91211,

12         F.S., relating to the Medicaid managed care

13         pilot program; revising duties of the agency

14         with respect to providing Medicaid services to

15         children; requiring that such services include

16         certain behavioral health services; requiring

17         that the service-delivery mechanisms be

18         implemented by a specified date; providing an

19         effective date.

20  

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

22  

23         Section 1.  Paragraph (b) of subsection (4) of section

24  409.912, Florida Statutes, is amended to read:

25         409.912  Cost-effective purchasing of health care.--The

26  agency shall purchase goods and services for Medicaid

27  recipients in the most cost-effective manner consistent with

28  the delivery of quality medical care. To ensure that medical

29  services are effectively utilized, the agency may, in any

30  case, require a confirmation or second physician's opinion of

31  the correct diagnosis for purposes of authorizing future

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    Florida Senate - 2007                            CS for SB 934
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 1  services under the Medicaid program. This section does not

 2  restrict access to emergency services or poststabilization

 3  care services as defined in 42 C.F.R. part 438.114. Such

 4  confirmation or second opinion shall be rendered in a manner

 5  approved by the agency. The agency shall maximize the use of

 6  prepaid per capita and prepaid aggregate fixed-sum basis

 7  services when appropriate and other alternative service

 8  delivery and reimbursement methodologies, including

 9  competitive bidding pursuant to s. 287.057, designed to

10  facilitate the cost-effective purchase of a case-managed

11  continuum of care. The agency shall also require providers to

12  minimize the exposure of recipients to the need for acute

13  inpatient, custodial, and other institutional care and the

14  inappropriate or unnecessary use of high-cost services. The

15  agency shall contract with a vendor to monitor and evaluate

16  the clinical practice patterns of providers in order to

17  identify trends that are outside the normal practice patterns

18  of a provider's professional peers or the national guidelines

19  of a provider's professional association. The vendor must be

20  able to provide information and counseling to a provider whose

21  practice patterns are outside the norms, in consultation with

22  the agency, to improve patient care and reduce inappropriate

23  utilization. The agency may mandate prior authorization, drug

24  therapy management, or disease management participation for

25  certain populations of Medicaid beneficiaries, certain drug

26  classes, or particular drugs to prevent fraud, abuse, overuse,

27  and possible dangerous drug interactions. The Pharmaceutical

28  and Therapeutics Committee shall make recommendations to the

29  agency on drugs for which prior authorization is required. The

30  agency shall inform the Pharmaceutical and Therapeutics

31  Committee of its decisions regarding drugs subject to prior

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    Florida Senate - 2007                            CS for SB 934
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 1  authorization. The agency is authorized to limit the entities

 2  it contracts with or enrolls as Medicaid providers by

 3  developing a provider network through provider credentialing.

 4  The agency may competitively bid single-source-provider

 5  contracts if procurement of goods or services results in

 6  demonstrated cost savings to the state without limiting access

 7  to care. The agency may limit its network based on the

 8  assessment of beneficiary access to care, provider

 9  availability, provider quality standards, time and distance

10  standards for access to care, the cultural competence of the

11  provider network, demographic characteristics of Medicaid

12  beneficiaries, practice and provider-to-beneficiary standards,

13  appointment wait times, beneficiary use of services, provider

14  turnover, provider profiling, provider licensure history,

15  previous program integrity investigations and findings, peer

16  review, provider Medicaid policy and billing compliance

17  records, clinical and medical record audits, and other

18  factors. Providers shall not be entitled to enrollment in the

19  Medicaid provider network. The agency shall determine

20  instances in which allowing Medicaid beneficiaries to purchase

21  durable medical equipment and other goods is less expensive to

22  the Medicaid program than long-term rental of the equipment or

23  goods. The agency may establish rules to facilitate purchases

24  in lieu of long-term rentals in order to protect against fraud

25  and abuse in the Medicaid program as defined in s. 409.913.

26  The agency may seek federal waivers necessary to administer

27  these policies.

28         (4)  The agency may contract with:

29         (b)  An entity that is providing comprehensive

30  behavioral health care services to certain Medicaid recipients

31  through a capitated, prepaid arrangement pursuant to the

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    Florida Senate - 2007                            CS for SB 934
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 1  federal waiver provided for by s. 409.905(5). Such an entity

 2  must be licensed under chapter 624, chapter 636, or chapter

 3  641 and must possess the clinical systems and operational

 4  competence to manage risk and provide comprehensive behavioral

 5  health care to Medicaid recipients. As used in this paragraph,

 6  the term "comprehensive behavioral health care services" means

 7  covered mental health and substance abuse treatment services

 8  that are available to Medicaid recipients. The secretary of

 9  the Department of Children and Family Services shall approve

10  provisions of procurements related to children in the

11  department's care or custody prior to enrolling such children

12  in a prepaid behavioral health plan. Any contract awarded

13  under this paragraph must be competitively procured. In

14  developing the behavioral health care prepaid plan procurement

15  document, the agency shall ensure that the procurement

16  document requires the contractor to develop and implement a

17  plan to ensure compliance with s. 394.4574 related to services

18  provided to residents of licensed assisted living facilities

19  that hold a limited mental health license. Except as provided

20  in subparagraph 8., and except in counties where the Medicaid

21  managed care pilot program is authorized pursuant to s.

22  409.91211, the agency shall seek federal approval to contract

23  with a single entity meeting these requirements to provide

24  comprehensive behavioral health care services to all Medicaid

25  recipients not enrolled in a Medicaid managed care plan

26  authorized under s. 409.91211 or a Medicaid health maintenance

27  organization in an AHCA area. In an AHCA area where the

28  Medicaid managed care pilot program is authorized pursuant to

29  s. 409.91211 in one or more counties, the agency may procure a

30  contract with a single entity to serve the remaining counties

31  as an AHCA area or the remaining counties may be included with

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    Florida Senate - 2007                            CS for SB 934
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 1  an adjacent AHCA area and shall be subject to this paragraph.

 2  Each entity must offer sufficient choice of providers in its

 3  network to ensure recipient access to care and the opportunity

 4  to select a provider with whom they are satisfied. The network

 5  shall include all public mental health hospitals. To ensure

 6  unimpaired access to behavioral health care services by

 7  Medicaid recipients, all contracts issued pursuant to this

 8  paragraph shall require 80 percent of the capitation paid to

 9  the managed care plan, including health maintenance

10  organizations, to be expended for the provision of behavioral

11  health care services. In the event the managed care plan

12  expends less than 80 percent of the capitation paid pursuant

13  to this paragraph for the provision of behavioral health care

14  services, the difference shall be returned to the agency. The

15  agency shall provide the managed care plan with a

16  certification letter indicating the amount of capitation paid

17  during each calendar year for the provision of behavioral

18  health care services pursuant to this section. The agency may

19  reimburse for substance abuse treatment services on a

20  fee-for-service basis until the agency finds that adequate

21  funds are available for capitated, prepaid arrangements.

22         1.  By January 1, 2001, the agency shall modify the

23  contracts with the entities providing comprehensive inpatient

24  and outpatient mental health care services to Medicaid

25  recipients in Hillsborough, Highlands, Hardee, Manatee, and

26  Polk Counties, to include substance abuse treatment services.

27         2.  By July 1, 2003, the agency and the Department of

28  Children and Family Services shall execute a written agreement

29  that requires collaboration and joint development of all

30  policy, budgets, procurement documents, contracts, and

31  

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    Florida Senate - 2007                            CS for SB 934
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 1  monitoring plans that have an impact on the state and Medicaid

 2  community mental health and targeted case management programs.

 3         3.  Except as provided in subparagraph 8., by July 1,

 4  2006, the agency and the Department of Children and Family

 5  Services shall contract with managed care entities in each

 6  AHCA area except area 6 or arrange to provide comprehensive

 7  inpatient and outpatient mental health and substance abuse

 8  services through capitated prepaid arrangements to all

 9  Medicaid recipients who are eligible to participate in such

10  plans under federal law and regulation. In AHCA areas where

11  eligible individuals number less than 150,000, the agency

12  shall contract with a single managed care plan to provide

13  comprehensive behavioral health services to all recipients who

14  are not enrolled in a Medicaid health maintenance organization

15  or a Medicaid capitated managed care plan authorized under s.

16  409.91211. The agency may contract with more than one

17  comprehensive behavioral health provider to provide care to

18  recipients who are not enrolled in a Medicaid capitated

19  managed care plan authorized under s. 409.91211 or a Medicaid

20  health maintenance organization in AHCA areas where the

21  eligible population exceeds 150,000. In an AHCA area where the

22  Medicaid managed care pilot program is authorized pursuant to

23  s. 409.91211 in one or more counties, the agency may procure a

24  contract with a single entity to serve the remaining counties

25  as an AHCA area or the remaining counties may be included with

26  an adjacent AHCA area and shall be subject to this paragraph.

27  Contracts for comprehensive behavioral health providers

28  awarded pursuant to this section shall be competitively

29  procured. Both for-profit and not-for-profit corporations

30  shall be eligible to compete. Managed care plans contracting

31  with the agency under subsection (3) shall provide and receive

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    Florida Senate - 2007                            CS for SB 934
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 1  payment for the same comprehensive behavioral health benefits

 2  as provided in AHCA rules, including handbooks incorporated by

 3  reference. In AHCA area 11, the agency shall contract with at

 4  least two comprehensive behavioral health care providers to

 5  provide behavioral health care to recipients in that area who

 6  are enrolled in, or assigned to, the MediPass program. One of

 7  the behavioral health care contracts shall be with the

 8  existing provider service network pilot project, as described

 9  in paragraph (d), for the purpose of demonstrating the

10  cost-effectiveness of the provision of quality mental health

11  services through a public hospital-operated managed care

12  model. Payment shall be at an agreed-upon capitated rate to

13  ensure cost savings. Of the recipients in area 11 who are

14  assigned to MediPass under the provisions of s.

15  409.9122(2)(k), a minimum of 50,000 of those MediPass-enrolled

16  recipients shall be assigned to the existing provider service

17  network in area 11 for their behavioral care.

18         4.  By October 1, 2003, the agency and the department

19  shall submit a plan to the Governor, the President of the

20  Senate, and the Speaker of the House of Representatives which

21  provides for the full implementation of capitated prepaid

22  behavioral health care in all areas of the state.

23         a.  Implementation shall begin in 2003 in those AHCA

24  areas of the state where the agency is able to establish

25  sufficient capitation rates.

26         b.  If the agency determines that the proposed

27  capitation rate in any area is insufficient to provide

28  appropriate services, the agency may adjust the capitation

29  rate to ensure that care will be available. The agency and the

30  department may use existing general revenue to address any

31  

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    Florida Senate - 2007                            CS for SB 934
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 1  additional required match but may not over-obligate existing

 2  funds on an annualized basis.

 3         c.  Subject to any limitations provided for in the

 4  General Appropriations Act, the agency, in compliance with

 5  appropriate federal authorization, shall develop policies and

 6  procedures that allow for certification of local and state

 7  funds.

 8         5.  Children residing in a statewide inpatient

 9  psychiatric program, or in a Department of Juvenile Justice or

10  a Department of Children and Family Services residential

11  program approved as a Medicaid behavioral health overlay

12  services provider shall not be included in a behavioral health

13  care prepaid health plan or any other Medicaid managed care

14  plan pursuant to this paragraph.

15         6.  In converting to a prepaid system of delivery, the

16  agency shall in its procurement document require an entity

17  providing only comprehensive behavioral health care services

18  to prevent the displacement of indigent care patients by

19  enrollees in the Medicaid prepaid health plan providing

20  behavioral health care services from facilities receiving

21  state funding to provide indigent behavioral health care, to

22  facilities licensed under chapter 395 which do not receive

23  state funding for indigent behavioral health care, or

24  reimburse the unsubsidized facility for the cost of behavioral

25  health care provided to the displaced indigent care patient.

26         7.  Traditional community mental health providers under

27  contract with the Department of Children and Family Services

28  pursuant to part IV of chapter 394, child welfare providers

29  under contract with the Department of Children and Family

30  Services in areas 1 and 6, and inpatient mental health

31  providers licensed pursuant to chapter 395 must be offered an

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    Florida Senate - 2007                            CS for SB 934
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 1  opportunity to accept or decline a contract to participate in

 2  any provider network for prepaid behavioral health services.

 3         8.  For fiscal year 2004-2005, all Medicaid eligible

 4  children, except children in areas 1 and 6, whose cases are

 5  open for child welfare services in the HomeSafeNet system,

 6  shall be enrolled in MediPass or in Medicaid fee-for-service

 7  and all their behavioral health care services including

 8  inpatient, outpatient psychiatric, community mental health,

 9  and case management shall be reimbursed on a fee-for-service

10  basis. Beginning July 1, 2005, such children, who are open for

11  child welfare services in the HomeSafeNet system, shall

12  receive their behavioral health care services through a

13  specialty prepaid plan operated by community-based lead

14  agencies either through a single agency or formal agreements

15  among several agencies. The specialty prepaid plan must result

16  in savings to the state comparable to savings achieved in

17  other Medicaid managed care and prepaid programs. Such plan

18  must provide mechanisms to maximize state and local revenues.

19  The specialty prepaid plan shall be developed by the agency

20  and the Department of Children and Family Services. The agency

21  is authorized to seek any federal waivers to implement this

22  initiative. Medicaid-eligible children whose cases are open

23  for child welfare services in the HomeSafeNet system and who

24  reside in an area in which Medicaid reform, as provided for in

25  s. 409.91211, has been implemented are exempt from this plan

26  upon the development of a service delivery system for these

27  children in the reform area pursuant to the terms in s.

28  409.91211(3)(dd).

29         Section 2.  Paragraph (dd) of subsection (3) of section

30  409.91211, Florida Statutes, is amended to read:

31         409.91211  Medicaid managed care pilot program.--

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    Florida Senate - 2007                            CS for SB 934
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 1         (3)  The agency shall have the following powers,

 2  duties, and responsibilities with respect to the pilot

 3  program:

 4         (dd)  To implement develop and recommend service

 5  delivery mechanisms within a provider service network or

 6  capitated managed care plan plans to provide Medicaid services

 7  as specified in ss. 409.905 and 409.906 to Medicaid-eligible

 8  children who are open for child welfare services in the

 9  HomeSafeNet system in foster care. These services must be

10  coordinated with community-based care providers as specified

11  in s. 409.1671 s. 409.1675, where available, and be sufficient

12  to meet the medical, developmental, behavioral, and emotional

13  needs of these children. Covered behavioral health services

14  must include all services currently included in the specialty

15  prepaid plan as implemented pursuant to s. 409.912(4)(b)8.

16  These service-delivery mechanisms must be implemented by July

17  1, 2008, in order for these children to remain exempt from the

18  statewide plan pursuant to s. 409.912(4)(b)8.

19         Section 3.  This act shall take effect July 1, 2007.

20  

21          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
22                         Senate Bill 934

23                                 

24  The committee substitute no longer provides legislative intent
    to revise laws relating to Medicaid. Instead the committee
25  substitute allows children whose cases are open for child
    welfare services in the HomeSafetNet system and who reside in
26  a Medicaid reform county to receive services through a
    Medicaid reform plan as long as the covered behavioral health
27  services include all services currently included in the
    specialty prepaid plan as operated under s. 409.912(4)(b)8,
28  F.S.

29  

30  

31  

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