Florida Senate - 2011               CS for CS for CS for SB 1972
       
       
       
       By the Committees on Budget; Budget Subcommittee on Health and
       Human Services Appropriations; and Health Regulation; and
       Senators Negron, Gaetz, Garcia, and Hays
       
       
       576-04635-11                                          20111972c3
    1                        A bill to be entitled                      
    2         An act relating to health and human services; amending
    3         s. 163.387, F.S.; exempting hospital districts from
    4         the requirement to provide funding to a community
    5         redevelopment agency; creating s. 200.186, F.S.;
    6         requiring hospital district ad valorem revenues
    7         dispersed to other entities to be spent only on health
    8         care services; amending s. 393.0661, F.S.; conforming
    9         provisions to changes made by the act; amending s.
   10         409.016, F.S.; conforming provisions to changes made
   11         by the act; creating s. 409.16713, F.S.; providing for
   12         medical assistance for children in out-of-home care
   13         and adopted children; specifying how those services
   14         will be funded under certain circumstances; providing
   15         legislative intent; providing a directive to the
   16         Division of Statutory Revision; transferring,
   17         renumbering, and amending s. 624.91, F.S.; decreasing
   18         the administrative cost and raising the minimum loss
   19         ratio for health plans; increasing compensation to the
   20         insurer or provider for dental contracts; requiring
   21         the Florida Healthy Kids Corporation to include use of
   22         the school breakfast and lunch application form in the
   23         corporation’s plan for publicizing the program;
   24         conforming provisions to changes made by the act;
   25         amending ss. 409.813, 409.8132, 409.815, 409.818,
   26         154.503, and 408.915, F.S.; conforming provisions to
   27         changes made by the act; amending s. 1006.06, F.S.;
   28         requiring school districts to collaborate with the
   29         Florida Kidcare program to use the application form
   30         for the school breakfast and lunch programs to provide
   31         information about the Florida Kidcare program and to
   32         authorize data on the application form be shared with
   33         state agencies and the Florida Healthy Kids
   34         Corporation and its agents; authorizing each school
   35         district the option to share the data electronically;
   36         requiring interagency agreements to ensure that the
   37         data exchanged is protected from unauthorized
   38         disclosure and is used only for enrollment in the
   39         Florida Kidcare program; amending s. 409.901, F.S.;
   40         revising definitions relating to Medicaid; amending s.
   41         409.902, F.S.; revising provisions relating to the
   42         designation of the Agency for Health Care
   43         Administration as the state Medicaid agency;
   44         specifying that eligibility and state funds for
   45         medical services apply only to citizens and certain
   46         noncitizens; providing exceptions; providing a
   47         limitation on persons transferring assets in order to
   48         become eligible for certain services; amending s.
   49         409.9021, F.S.; revising provisions relating to
   50         conditions for Medicaid eligibility; increasing the
   51         number of years a Medicaid applicant forfeits
   52         entitlements to the Medicaid program if he or she has
   53         committed fraud; providing for the payment of monthly
   54         premiums by Medicaid recipients; providing exemptions
   55         to the premium requirement; requiring applicants to
   56         agree to participate in certain health programs;
   57         prohibiting a recipient who has access to employer
   58         sponsored health care from obtaining services
   59         reimbursed through the Medicaid fee-for-service
   60         system; requiring the agency to develop a process to
   61         allow the Medicaid premium that would have been
   62         received to be used to pay employer premiums;
   63         requiring that the agency allow opt-out opportunities
   64         for certain recipients; creating s. 409.9022, F.S.;
   65         specifying procedures to be implemented by a state
   66         agency if the Medicaid expenditures exceed
   67         appropriations; amending s. 409.903, F.S.; conforming
   68         provisions to changes made by the act; deleting
   69         obsolete provisions; amending s. 409.904, F.S.;
   70         conforming provisions to changes made by the act;
   71         renaming the “medically needy” program as the
   72         “Medicaid nonpoverty medical subsidy”; narrowing the
   73         subsidy to cover only certain services for a family,
   74         persons age 65 or older, or blind or disabled persons;
   75         revising the criteria for the agency’s assessment of
   76         need for private duty nursing services; amending s.
   77         409.905, F.S.; conforming provisions to changes made
   78         by the act; requiring prior authorization for home
   79         health services; amending s. 409.906, F.S.; providing
   80         for a parental fee based on family income to be
   81         assessed against the parents of children with
   82         developmental disabilities served by home and
   83         community-based waivers; prohibiting the agency from
   84         paying for certain psychotropic medications prescribed
   85         for a child; conforming provisions to changes made by
   86         the act; amending ss. 409.9062 and 409.907, F.S.;
   87         conforming provisions to changes made by the act;
   88         amending s. 409.908, F.S.; modifying the nursing home
   89         patient care per diem rate to include dental care,
   90         vision care, hearing care, and podiatric care;
   91         directing the agency to seek a waiver to treat a
   92         portion of the nursing home per diem as capital for
   93         self-insurance purposes; requiring primary physicians
   94         to be paid the Medicare fee-for-service rate by a
   95         certain date; deleting the requirement that the agency
   96         contract for transportation services with the
   97         community transportation system; authorizing qualified
   98         plans to contract for transportation services;
   99         deleting obsolete provisions; conforming provisions to
  100         changes made by the act; amending s. 409.9081, F.S.;
  101         revising copayments for physician visits; requiring
  102         the agency to seek a waiver to allow the increase of
  103         copayments for nonemergency services furnished in a
  104         hospital emergency department; amending s. 409.912,
  105         F.S.; providing for alternatives to the statewide
  106         inpatient psychiatric program; requiring Medicaid
  107         eligible children who have open child welfare cases
  108         and who reside in AHCA area 10 to be enrolled in
  109         specified capitated managed care plans; expanding the
  110         number of children eligible to receive behavioral
  111         health care services through a specialty prepaid plan;
  112         repealing provisions relating to a provider lock-in
  113         program; eliminating obsolete provisions and updating
  114         provisions; conforming cross-references; amending s.
  115         409.915, F.S.; conforming provisions to changes made
  116         by the act; transferring, renumbering, and amending s.
  117         409.9301, F.S.; conforming provisions to changes made
  118         by the act; amending s. 409.9126, F.S.; conforming a
  119         cross-reference; providing a directive to the Division
  120         of Statutory Revision; creating s. 409.961, F.S.;
  121         providing for statutory construction of provisions
  122         relating to Medicaid managed care; creating s.
  123         409.962, F.S.; providing definitions; creating s.
  124         409.963, F.S.; establishing the Medicaid managed care
  125         program as the statewide, integrated managed care
  126         program for medical assistance and long-term care
  127         services; directing the agency to apply for and
  128         implement waivers; providing for public notice and
  129         comment; providing for a limited managed care program
  130         if waivers are not approved; creating s. 409.964,
  131         F.S.; requiring all Medicaid recipients to be enrolled
  132         in Medicaid managed care; providing exemptions;
  133         prohibiting a recipient who has access to employer
  134         sponsored health care from enrolling in Medicaid
  135         managed care; requiring the agency to develop a
  136         process to allow the Medicaid premium that would have
  137         been received to be used to pay employer premiums;
  138         requiring that the agency allow opt-out opportunities
  139         for certain recipients; providing for voluntary
  140         enrollment; creating s. 409.965, F.S.; providing
  141         requirements for qualified plans that provide services
  142         in the Medicaid managed care program; requiring the
  143         agency to issue an invitation to negotiate; requiring
  144         the agency to compile and publish certain information;
  145         establishing regions for separate procurement of
  146         plans; establishing selection criteria for plan
  147         selection; limiting the number of plans in a region;
  148         authorizing the agency to conduct negotiations if
  149         funding is insufficient; specifying circumstances
  150         under which the agency may issue a new invitation to
  151         negotiate; providing that the Children’s Medical
  152         Service Network is a qualified plan; directing the
  153         agency to assign Medicaid provider agreements for a
  154         limited time to a provider services network
  155         participating in the managed care program in a rural
  156         area; creating s. 409.966, F.S.; providing managed
  157         care plan contract requirements; establishing contract
  158         terms; providing for annual rate setting; providing
  159         for contract extension under certain circumstances;
  160         establishing access requirements; requiring the agency
  161         to establish performance standards for plans;
  162         requiring each plan to publish specified measures on
  163         the plan’s website; providing for program integrity;
  164         requiring plans to provide encounter data; providing
  165         penalties for failure to submit data; requiring plans
  166         to accept electronic claims and electronic prior
  167         authorization requests for medication exceptions;
  168         requiring plans to provide the criteria for approval
  169         and reasons for denial of prior authorization
  170         requests; providing for prompt payment; providing for
  171         payments to noncontract emergency providers; requiring
  172         a qualified plan to post a surety bond or establish a
  173         letter of credit or a deposit in a trust account;
  174         requiring plans to establish a grievance resolution
  175         process; requiring plan solvency; requiring guaranteed
  176         savings; providing costs and penalties for early
  177         termination of contracts or reduction in enrollment
  178         levels; requiring the agency to terminate qualified
  179         plans for noncompliance under certain circumstances;
  180         requiring plans to adopt and publish a preferred drug
  181         list; requiring plans that contract for fiscal
  182         intermediary services to contract only with registered
  183         fiscal intermediary services organizations; creating
  184         s. 409.967, F.S.; providing for managed care plan
  185         accountability; requiring plans to use a uniform
  186         method of accounting for medical costs; establishing a
  187         medical loss ratio; requiring that a plan pay back to
  188         the agency a specified amount in specified
  189         circumstances; authorizing plans to limit providers in
  190         networks; mandating that certain providers be offered
  191         contracts during the first year; authorizing plans to
  192         exclude certain providers in certain circumstances;
  193         requiring plans to include certain providers;
  194         requiring plans to monitor the quality and performance
  195         history of providers; requiring plans to hold primary
  196         care physicians responsible for certain activities;
  197         requiring plans to offer certain programs and
  198         procedures; requiring plans to pay primary care
  199         providers the same rate as Medicare by a certain date;
  200         providing for conflict resolution between plans and
  201         providers; creating s. 409.968, F.S.; providing for
  202         managed care plan payments on a per-member, per-month
  203         basis; requiring the agency to establish a methodology
  204         to ensure the availability of certain types of
  205         payments to specified providers; requiring the
  206         development of rate cells; requiring that the amount
  207         paid to the plans for supplemental payments or
  208         enhanced rates be reconciled to the amount required to
  209         pay providers; requiring that plans make certain
  210         payments to providers within a certain time; requiring
  211         the agency to develop a methodology and request a
  212         state plan amendment to ensure the availability of
  213         certified public expenditures in the Medicaid managed
  214         care program to support certain noninstitutional
  215         teaching faculty providers; creating s. 409.969, F.S.;
  216         authorizing Medicaid recipients to select any plan
  217         within a region; providing for automatic enrollment of
  218         recipients by the agency in specified circumstances;
  219         providing criteria for automatic enrollment;
  220         authorizing disenrollment under certain circumstances;
  221         providing for a grievance process; defining the term
  222         “good cause” for purposes of disenrollment; requiring
  223         recipients to stay in plans for a specified time;
  224         providing for reenrollment of recipients who move out
  225         of a region; creating s. 409.970, F.S.; requiring the
  226         agency to maintain an encounter data system; providing
  227         requirements for prepaid plans to submit data in a
  228         certain format; requiring the agency to analyze the
  229         data; requiring the agency to test the data for
  230         certain purposes by a certain date; creating s.
  231         409.971, F.S.; providing for managed care medical
  232         assistance; providing deadlines for beginning and
  233         finalizing implementation; creating s. 409.972, F.S.;
  234         establishing minimum services for the managed medical
  235         assistance; providing for optional services;
  236         authorizing plans to customize benefit packages;
  237         requiring the agency to provide certain services to
  238         hemophiliacs; creating s. 409.973, F.S.; providing for
  239         managed long-term care; providing deadlines for
  240         beginning and finalizing implementation; providing
  241         duties for the Department of Elderly Affairs relating
  242         to the program; creating s. 409.974, F.S.; providing
  243         recipient eligibility requirements for managed long
  244         term care; listing programs for which certain
  245         recipients are eligible; specifying that an
  246         entitlement to home and community-based services is
  247         not created; creating s. 409.975, F.S.; establishing
  248         minimum services for managed long-term care; creating
  249         s. 409.976, F.S.; providing criteria for the selection
  250         of plans to provide managed long-term care; creating
  251         s. 409.977, F.S.; providing for managed long-term care
  252         plan accountability; requiring the agency to establish
  253         standards for specified providers; creating s.
  254         409.978, F.S.; requiring that the agency operate the
  255         Comprehensive Assessment and Review for Long-Term Care
  256         Services program through an interagency agreement with
  257         the Department of Elderly Affairs; providing duties of
  258         the program; requiring the program to assign plan
  259         enrollees to a level of care; providing for the
  260         evaluation of dually eligible nursing home residents;
  261         creating s. 409.980, F.S.; providing minimum
  262         requirements for prescription drug benefits provided
  263         by a qualified plan; transferring, renumbering, and
  264         amending ss. 409.91207, 409.91211, and 409.9122, F.S.;
  265         conforming provisions to changes made by the act;
  266         updating provisions and deleting obsolete provisions;
  267         transferring and renumbering ss. 409.9123 and
  268         409.9124, F.S.; amending s. 430.04, F.S.; eliminating
  269         outdated provisions; requiring the Department of
  270         Elderly Affairs to develop a transition plan for
  271         specified elders and disabled adults receiving long
  272         term care Medicaid services if qualified plans become
  273         available; amending s. 430.2053, F.S.; eliminating
  274         outdated provisions; providing additional duties of
  275         aging resource centers; providing an additional
  276         exception to direct services that may not be provided
  277         by an aging resource center; providing for the
  278         cessation of specified payments by the department as
  279         qualified plans become available; eliminating
  280         provisions requiring reports; amending s. 641.316,
  281         F.S.; redefining the term “fiscal intermediary
  282         services organization” to include certain qualified
  283         plans that contract with health care professionals for
  284         fiscal intermediary services; amending s. 39.407,
  285         F.S.; requiring a motion by the Department of Children
  286         and Family Services to provide psychotropic medication
  287         to a child 10 years of age or younger to include a
  288         review by a child psychiatrist; providing that a court
  289         may not authorize the administration of such
  290         medication absent a finding of compelling state
  291         interest based on the review; amending s. 216.262,
  292         F.S.; providing that limitations on an agency’s total
  293         number of positions does not apply to certain
  294         positions in the Department of Health; amending s.
  295         381.06014, F.S.; redefining the term “blood
  296         establishment” and defining the term “volunteer
  297         donor”; requiring that blood establishments disclose
  298         specified information on their Internet website;
  299         providing an exception for certain hospitals;
  300         authorizing the Department of Legal Affairs to assess
  301         a civil penalty against a blood establishment that
  302         fails to disclose the information; providing that the
  303         civil penalty accrues to the state and requiring that
  304         it be deposited into the General Revenue Fund;
  305         prohibiting local governments from restricting access
  306         to public facilities or infrastructure for certain
  307         activities based on whether a blood establishment is
  308         operating as a for-profit or not-for-profit
  309         organization; prohibiting a blood establishment from
  310         considering whether certain customers are operating as
  311         for-profit or not-for-profit organizations when
  312         determining service fees for blood or blood
  313         components; amending s. 395.4025, F.S.; providing
  314         additional time extensions to hospital applicants
  315         seeking to become trauma centers under certain
  316         circumstances; amending s. 400.023, F.S.; requiring
  317         the trial judge to conduct an evidentiary hearing to
  318         determine the sufficiency of evidence for claims
  319         against certain persons relating to a nursing home;
  320         limiting noneconomic damages in a wrongful death
  321         action against the nursing home; amending s. 400.0237,
  322         F.S.; revising provisions relating to punitive damages
  323         against a nursing home; authorizing a defendant to
  324         proffer admissible evidence to refute a claimant’s
  325         proffer of evidence for punitive damages; requiring
  326         the trial judge to conduct an evidentiary hearing and
  327         the plaintiff to demonstrate that a reasonable basis
  328         exists for the recovery of punitive damages;
  329         prohibiting discovery of the defendant’s financial
  330         worth until the judge approves the pleading on
  331         punitive damages; revising definitions; amending s.
  332         408.7057, F.S.; requiring that the dispute resolution
  333         program include a hearing in specified circumstances;
  334         providing that the dispute resolution program
  335         established to resolve claims disputes between
  336         providers and health plans does not provide an
  337         independent right of recovery; requiring that the
  338         conclusions of law in the written recommendation of
  339         the resolution organization identify certain
  340         information; amending s. 465.014, F.S.; providing that
  341         certain practitioners or anyone under the direct
  342         supervision of such practitioner may dispense drugs
  343         without being licensed as a medical technician;
  344         amending s. 456.0635, F.S.; revising the grounds under
  345         which the Department of Health or corresponding board
  346         is required to refuse to admit a candidate to an
  347         examination and to refuse to issue or renew a license,
  348         certificate, or registration of a health care
  349         practitioner; providing an exception; amending s.
  350         456.036, F.S.; requiring a delinquent licensee whose
  351         license becomes delinquent before the final resolution
  352         of a case regarding Medicaid fraud to affirmatively
  353         apply by submitting a complete application for active
  354         or inactive status during the licensure cycle in which
  355         the case achieves final resolution by order of the
  356         court; providing that failure by a delinquent licensee
  357         to become active or inactive before the expiration of
  358         that licensure cycle renders the license null;
  359         requiring that any subsequent licensure be as a result
  360         of applying for and meeting all requirements imposed
  361         on an applicant for new licensure; creating ss.
  362         458.3167 and 459.0078, F.S.; providing for an expert
  363         witness certificate for allopathic and osteopathic
  364         physicians licensed in other states or Canada which
  365         authorizes such physicians to provide expert medical
  366         opinions in this state; providing application
  367         requirements and timeframes for approval or denial by
  368         the Board of Medicine and Board of Osteopathic
  369         Medicine, respectively; requiring the boards to adopt
  370         rules and set fees; providing for expiration of a
  371         certificate; amending ss. 458.331 and 459.015, F.S.;
  372         providing grounds for disciplinary action for
  373         providing misleading, deceptive, or fraudulent expert
  374         witness testimony relating to the practice of medicine
  375         and of osteopathic medicine, respectively; providing
  376         for construction with respect to the doctrine of
  377         incorporation by reference; amending s. 499.003, F.S.;
  378         redefining the term “health care entity” to clarify
  379         that a blood establishment is a health care entity
  380         that may engage in certain activities; amending s.
  381         499.005, F.S.; clarifying provisions that prohibit the
  382         unauthorized wholesale distribution of a prescription
  383         drug that was purchased by a hospital or other health
  384         care entity or donated or supplied at a reduced price
  385         to a charitable organization, to conform to changes
  386         made by the act; amending s. 499.01, F.S.; exempting
  387         certain blood establishments from the requirements to
  388         be permitted as a prescription drug manufacturer and
  389         register products; requiring that certain blood
  390         establishments obtain a restricted prescription drug
  391         distributor permit under specified conditions;
  392         limiting the prescription drugs that a blood
  393         establishment may distribute under a restricted
  394         prescription drug distributor permit; authorizing the
  395         Department of Health to adopt rules regarding the
  396         distribution of prescription drugs by blood
  397         establishments; amending s. 626.9541, F.S.;
  398         authorizing insurers to offer rewards or incentives to
  399         health benefit plan members to encourage or reward
  400         participation in wellness or health improvement
  401         programs; authorizing insurers to require plan members
  402         not participating in programs to provide verification
  403         that their medical condition warrants
  404         nonparticipation; providing application; amending s.
  405         627.4147, F.S.; deleting a requirement that a medical
  406         malpractice insurance contract include a clause
  407         authorizing an insurer to admit liability and make a
  408         settlement offer if the offer is within policy limits
  409         without the insured’s permission; amending s. 641.19,
  410         F.S.; defining the term “provider service network”;
  411         creating s. 641.2019, F.S.; providing that a provider
  412         service network that meets the requirements of ch.
  413         641, F.S., may obtain a certificate of authority under
  414         that chapter; amending s. 641.47, F.S.; redefining the
  415         term “organization” to include a provider service
  416         network; amending s. 641.49, F.S.; providing that a
  417         provider service network may apply for a health care
  418         provider certificate; amending s. 430.705, F.S.;
  419         conforming a cross-reference; amending s. 766.102,
  420         F.S.; providing that a physician who is an expert
  421         witness in a medical malpractice presuit action must
  422         meet certain requirements; amending s. 766.104, F.S.;
  423         requiring a good faith demonstration in a medical
  424         malpractice case that there has been a breach of the
  425         standard of care; amending s. 766.106, F.S.;
  426         clarifying that a physician acting as an expert
  427         witness is subject to disciplinary actions; amending
  428         s. 766.1115, F.S.; conforming provisions to changes
  429         made by the act; creating s. 766.1183, F.S.; defining
  430         terms; providing for the recovery of civil damages by
  431         Medicaid recipients according to a modified standard
  432         of care; providing for recovery of certain excess
  433         judgments by act of the Legislature; requiring the
  434         Department of Children and Family Services to provide
  435         notice to program applicants; creating s. 766.1184,
  436         F.S.; defining terms; providing for the recovery of
  437         civil damages by certain recipients of primary care
  438         services at primary care clinics receiving specified
  439         low-income pool funds according to a modified standard
  440         of care; providing for recovery of certain excess
  441         judgments by act of the Legislature; providing
  442         requirements of health care providers receiving such
  443         funds in order for the liability provisions to apply;
  444         requiring notice to low-income pool recipients;
  445         amending s. 766.202, F.S.; redefining the term “health
  446         care provider” to include persons licensed to provide
  447         orthotics, prosthetics, and pedorthics; amending s.
  448         766.203, F.S.; requiring the presuit investigations
  449         conducted by the claimant and the prospective
  450         defendant in a medical malpractice action to provide
  451         grounds for a breach of the standard of care; amending
  452         s. 768.28, F.S.; revising a definition; providing that
  453         certain colleges and universities that own or operate
  454         an accredited medical school and their employees and
  455         agents providing patient services in a teaching
  456         hospital pursuant to an affiliation agreement or
  457         contract with the teaching hospital are considered
  458         agents of the hospital for the purposes of sovereign
  459         immunity; providing definitions; requiring patients of
  460         such hospitals to be provided with notice of their
  461         remedies under sovereign immunity; providing an
  462         exception; providing that providers and vendors
  463         providing services to certain persons with
  464         disabilities on behalf of the state are agents of the
  465         state for the purposes of sovereign immunity;
  466         providing legislative findings and intent with respect
  467         to including certain colleges and universities and
  468         their employees and agents under sovereign immunity;
  469         providing a statement of public necessity; amending s.
  470         1004.41, F.S.; correcting the name of one of the
  471         health center’s colleges; specifying that the
  472         University of Florida Board of Trustees shall lease
  473         Shands Teaching Hospital and Clinics on the
  474         Gainesville campus to Shands Teaching Hospital and
  475         Clinics, Inc.; specifying the primary purpose of
  476         Shands Teaching Hospital and Clinics, Inc.; providing
  477         requirements for the lease, contract, or agreement
  478         between the University of Florida Board of Trustees
  479         and Shands Teaching Hospital and Clinics, Inc.;
  480         authorizing the creation of corporate subsidiaries and
  481         affiliates; providing the right of control; providing
  482         for sovereign immunity; providing that Shands
  483         Jacksonville Medical Center, Inc., and its parent,
  484         Shands Jacksonville HealthCare, Inc., are private not
  485         for-profit corporations organized primarily to support
  486         the health affairs mission of the University of
  487         Florida Board of Trustees; authorizing the creation of
  488         corporate subsidiaries and affiliates; providing
  489         requirements for the lease, contract, or agreement
  490         between the University of Florida Board of Trustees
  491         and the corporations; providing the right of control;
  492         providing for sovereign immunity; repealing s.
  493         409.9121, F.S., relating to legislative intent
  494         concerning managed care; repealing s. 409.919, F.S.,
  495         relating to rule authority; repealing s. 624.915,
  496         F.S., relating to the Florida Healthy Kids Corporation
  497         operating fund; renumbering and transferring ss.
  498         409.942, 409.944, 409.945, 409.946, 409.953, and
  499         409.9531, F.S., as ss. 414.29, 163.464, 163.465,
  500         163.466, 402.81, and 402.82, F.S., respectively;
  501         amending s. 443.111, F.S.; conforming a cross
  502         reference; directing the Agency for Health Care
  503         Administration to submit a reorganization plan to the
  504         Legislature; providing for the state’s withdrawal from
  505         the Medicaid program under certain circumstances;
  506         providing for severability; providing an effective
  507         date.
  508  
  509  Be It Enacted by the Legislature of the State of Florida:
  510  
  511         Section 1. Paragraph (c) of subsection (2) of section
  512  163.387, Florida Statutes, is amended to read:
  513         163.387 Redevelopment trust fund.—
  514         (2)
  515         (c) The following public bodies or taxing authorities are
  516  exempt from paragraph (a):
  517         1. A special district that levies ad valorem taxes on
  518  taxable real property in more than one county.
  519         2. A special district for which the sole available source
  520  of revenue the district has the authority to levy is ad valorem
  521  taxes at the time an ordinance is adopted under this section.
  522  However, revenues or aid that may be dispensed or appropriated
  523  to a district as defined in s. 388.011 at the discretion of an
  524  entity other than such district shall not be deemed available.
  525         3. A library district, except a library district in a
  526  jurisdiction where the community redevelopment agency had
  527  validated bonds as of April 30, 1984.
  528         4. A neighborhood improvement district created under the
  529  Safe Neighborhoods Act.
  530         5. A metropolitan transportation authority.
  531         6. A water management district created under s. 373.069.
  532         7. A hospital district that is a special district as
  533  defined in s. 189.403, a county hospital that has taxing
  534  authority under chapter 155, or a public health trust
  535  established pursuant to s. 154.07.
  536         Section 2. Section 200.186, Florida Statutes, is created to
  537  read:
  538         200.186Hospital districts.—Notwithstanding any special act
  539  or other law governing the expenditure of ad valorem revenues,
  540  ad valorem revenues raised pursuant to a special act
  541  establishing a hospital district, by a county hospital pursuant
  542  to chapter 155, or a public health trust established pursuant to
  543  s. 154.07, and disbursed by the district, county hospital, or
  544  trust to municipalities or other organizations, may be used only
  545  to pay for health care services.
  546         Section 3. Present subsections (7) and (8) of section
  547  393.0661, Florida Statutes, are redesignated as subsections (8)
  548  and (9), respectively, a new subsection (7) is added to that
  549  section, and present subsection (7) of that section is amended,
  550  to read:
  551         393.0661 Home and community-based services delivery system;
  552  comprehensive redesign.—The Legislature finds that the home and
  553  community-based services delivery system for persons with
  554  developmental disabilities and the availability of appropriated
  555  funds are two of the critical elements in making services
  556  available. Therefore, it is the intent of the Legislature that
  557  the Agency for Persons with Disabilities shall develop and
  558  implement a comprehensive redesign of the system.
  559         (7) The agency shall impose and collect the fee authorized
  560  by s. 409.906(13)(d) upon approval by the Centers for Medicare
  561  and Medicaid Services.
  562         (8)(7)Nothing in This section or related in any
  563  administrative rule does not shall be construed to prevent or
  564  limit the Agency for Health Care Administration, in consultation
  565  with the Agency for Persons with Disabilities, from adjusting
  566  fees, reimbursement rates, lengths of stay, number of visits, or
  567  number of services, or from limiting enrollment, or making any
  568  other adjustment necessary to comply with the availability of
  569  moneys and any limitations or directions provided for in the
  570  General Appropriations Act or pursuant to s. 409.9022.
  571         Section 4. The Division of Statutory Revision is requested
  572  to designate ss. 409.016-409.803, Florida Statutes, as part I of
  573  chapter 409, Florida Statutes, entitled “SOCIAL AND ECONOMIC
  574  ASSISTANCE.
  575         Section 5. Section 409.016, Florida Statutes, is amended to
  576  read:
  577         409.016 Definitions.—As used in this part, the term
  578  chapter:
  579         (1) “Department,unless otherwise specified, means the
  580  Department of Children and Family Services.
  581         (2) “Secretary” means the Secretary of the Department of
  582  Children and Family Services.
  583         (3) “Social and economic services,within the meaning of
  584  this chapter, means the providing of financial assistance as
  585  well as preventive and rehabilitative social services for
  586  children, adults, and families.
  587         Section 6. Section 409.16713, Florida Statutes, is created
  588  to read:
  589         409.16713 Medical assistance for children in out-of-home
  590  care and adopted children.—
  591         (1) A child who is eligible under Title IV-E of the Social
  592  Security Act, as amended, for subsidized board payments, foster
  593  care, or adoption subsidies, and a child for whom the state has
  594  assumed temporary or permanent responsibility and who does not
  595  qualify for Title IV-E assistance but is in foster care, shelter
  596  or emergency shelter care, or subsidized adoption is eligible
  597  for medical assistance as provided in s. 409.903(4). This
  598  includes a young adult who is eligible to receive services under
  599  s. 409.1451(5) until the young adult reaches 21 years of age,
  600  and a person who was eligible, as a child, under Title IV-E for
  601  foster care or the state-provided foster care and who is a
  602  participant in the Road-to-Independence Program.
  603         (2) If medical assistance under Title XIX of the Social
  604  Security Act, as amended, is not available due to the refusal of
  605  the federal Department of Health and Human Services to provide
  606  federal funds, a child or young adult described in subsection
  607  (1) is eligible for medical services under the Medicaid managed
  608  care program established in s. 409.963. Such medical assistance
  609  shall be obtained by the community-based care lead agencies
  610  established under s. 409.1671 and is subject to the availability
  611  of funds appropriated for such purpose in the General
  612  Appropriations Act.
  613         (3) It is the intent of the Legislature that the provision
  614  of medical assistance meet the requirements of s. 471(a)(21) of
  615  the Social Security Act, as amended, 42 U.S.C. s. 671(a)(21),
  616  related to eligibility for Title IV-E of the Social Security
  617  Act, and that compliance with such provisions meet the
  618  requirements of s. 402(a)(3) of the Social Security Act, as
  619  amended, 42 U.S.C. s. 602(a)(3), relating to the Temporary
  620  Assistance for Needy Families Block Grant Program.
  621         Section 7. The Division of Statutory Revision is requested
  622  to designate ss. 409.810-409.821, Florida Statutes, as part II
  623  of chapter 409, Florida Statutes, entitled “KIDCARE.
  624         Section 8. Section 624.91, Florida Statutes, is
  625  transferred, renumbered as section 409.8115, Florida Statutes,
  626  paragraph (b) of subsection (5) of that section is amended, and
  627  subsection (8) is added to that section, to read:
  628         409.8115 624.91 The Florida Healthy Kids Corporation Act.—
  629         (5) CORPORATION AUTHORIZATION, DUTIES, POWERS.—
  630         (b) The Florida Healthy Kids Corporation shall:
  631         1. Arrange for the collection of any family, local
  632  contributions, or employer payment or premium, in an amount to
  633  be determined by the board of directors, to provide for payment
  634  of premiums for comprehensive insurance coverage and for the
  635  actual or estimated administrative expenses.
  636         2. Arrange for the collection of any voluntary
  637  contributions to provide for payment of Florida Kidcare program
  638  premiums for children who are not eligible for medical
  639  assistance under Title XIX or Title XXI of the Social Security
  640  Act.
  641         3. Subject to the provisions of s. 409.8134, accept
  642  voluntary supplemental local match contributions that comply
  643  with the requirements of Title XXI of the Social Security Act
  644  for the purpose of providing additional Florida Kidcare coverage
  645  in contributing counties under Title XXI.
  646         4. Establish the administrative and accounting procedures
  647  for the operation of the corporation.
  648         5. Establish, with consultation from appropriate
  649  professional organizations, standards for preventive health
  650  services and providers and comprehensive insurance benefits
  651  appropriate to children if, provided that such standards for
  652  rural areas do shall not limit primary care providers to board
  653  certified pediatricians.
  654         6. Determine eligibility for children seeking to
  655  participate in the Title XXI-funded components of the Florida
  656  Kidcare program consistent with the requirements specified in s.
  657  409.814, as well as the non-Title-XXI-eligible children as
  658  provided in subsection (3).
  659         7. Establish procedures under which providers of local
  660  match to, applicants to, and participants in the program may
  661  have grievances reviewed by an impartial body and reported to
  662  the board of directors of the corporation.
  663         8. Establish participation criteria and, if appropriate,
  664  contract with an authorized insurer, health maintenance
  665  organization, or third-party administrator to provide
  666  administrative services to the corporation.
  667         9. Establish enrollment criteria that include penalties or
  668  30-day waiting periods of 30 days for reinstatement of coverage
  669  upon voluntary cancellation for nonpayment of family premiums.
  670         10. Contract with authorized insurers or providers any
  671  provider of health care services, who meet meeting standards
  672  established by the corporation, for the provision of
  673  comprehensive insurance coverage to participants. Such standards
  674  must shall include criteria under which the corporation may
  675  contract with more than one provider of health care services in
  676  program sites. Health plans shall be selected through a
  677  competitive bid process. The Florida Healthy Kids Corporation
  678  shall purchase goods and services in the most cost-effective
  679  manner consistent with the delivery of quality medical care. The
  680  maximum administrative cost for a Florida Healthy Kids
  681  Corporation contract shall be 10 15 percent. For health care
  682  contracts, the minimum medical loss ratio for a Florida Healthy
  683  Kids Corporation contract shall be 90 85 percent. For dental
  684  contracts, the remaining compensation to be paid to the
  685  authorized insurer or provider must be at least 90 under a
  686  Florida Healthy Kids Corporation contract shall be no less than
  687  an amount which is 85 percent of the premium, and; to the extent
  688  any contract provision does not provide for this minimum
  689  compensation, this section prevails shall prevail. The health
  690  plan selection criteria and scoring system, and the scoring
  691  results, shall be available upon request for inspection after
  692  the bids have been awarded.
  693         11. Establish disenrollment criteria if in the event local
  694  matching funds are insufficient to cover enrollments.
  695         12. Develop and implement a plan to publicize the Florida
  696  Kidcare program, the eligibility requirements of the program,
  697  and the procedures for enrollment in the program and to maintain
  698  public awareness of the corporation and the program. Such plan
  699  must include using the application form for the school lunch and
  700  breakfast programs as provided under s. 1006.06(7).
  701         13. Secure staff necessary to properly administer the
  702  corporation. Staff costs shall be funded from state and local
  703  matching funds and such other private or public funds as become
  704  available. The board of directors shall determine the number of
  705  staff members necessary to administer the corporation.
  706         14. In consultation with the partner agencies, provide an
  707  annual a report on the Florida Kidcare program annually to the
  708  Governor, the Chief Financial Officer, the Commissioner of
  709  Education, the President of the Senate, the Speaker of the House
  710  of Representatives, and the Minority Leaders of the Senate and
  711  the House of Representatives.
  712         15. Provide information on a quarterly basis to the
  713  Legislature and the Governor which compares the costs and
  714  utilization of the full-pay enrolled population and the Title
  715  XXI-subsidized enrolled population in the Florida Kidcare
  716  program. The information, At a minimum, the information must
  717  include:
  718         a. The monthly enrollment and expenditure for full-pay
  719  enrollees in the Medikids and Florida Healthy Kids programs
  720  compared to the Title XXI-subsidized enrolled population; and
  721         b. The costs and utilization by service of the full-pay
  722  enrollees in the Medikids and Florida Healthy Kids programs and
  723  the Title XXI-subsidized enrolled population.
  724  
  725  By February 1, 2010, the Florida Healthy Kids Corporation shall
  726  provide a study to the Legislature and the Governor on premium
  727  impacts to the subsidized portion of the program from the
  728  inclusion of the full-pay program, which must shall include
  729  recommendations on how to eliminate or mitigate possible impacts
  730  to the subsidized premiums.
  731         16. Establish benefit packages that conform to the
  732  provisions of the Florida Kidcare program, as created under this
  733  part in ss. 409.810-409.821.
  734         (8) OPERATING FUND.—The Florida Healthy Kids Corporation
  735  may establish and manage an operating fund for the purposes of
  736  addressing the corporation’s unique cash-flow needs and
  737  facilitating the fiscal management of the corporation. At any
  738  given time, the corporation may accumulate and maintain in the
  739  operating fund a cash balance reserve equal to no more than 25
  740  percent of its annualized operating expenses. Upon dissolution
  741  of the corporation, any remaining cash balances of state funds
  742  shall revert to the General Revenue Fund, or such other state
  743  funds consistent with the appropriated funding, as provided by
  744  law.
  745         Section 9. Subsection (1) of section 409.813, Florida
  746  Statutes, is amended to read:
  747         409.813 Health benefits coverage; program components;
  748  entitlement and nonentitlement.—
  749         (1) The Florida Kidcare program includes health benefits
  750  coverage provided to children through the following program
  751  components, which shall be marketed as the Florida Kidcare
  752  program:
  753         (a) Medicaid.;
  754         (b) Medikids as created in s. 409.8132.;
  755         (c) The Florida Healthy Kids Corporation as created in s.
  756  409.8115. 624.91;
  757         (d) Employer-sponsored group health insurance plans
  758  approved under this part. ss. 409.810-409.821; and
  759         (e) The Children’s Medical Services network established in
  760  chapter 391.
  761         Section 10. Subsection (4) of section 409.8132, Florida
  762  Statutes, is amended to read:
  763         409.8132 Medikids program component.—
  764         (4) APPLICABILITY OF LAWS RELATING TO MEDICAID.—The
  765  provisions of ss. 409.902, 409.905, 409.906, 409.907, 409.908,
  766  409.912, 409.9121, 409.9122, 409.9123, 409.9124, 409.9127,
  767  409.9128, 409.913, 409.916, 409.919, 409.920, and 409.9205,
  768  409.987, 409.988, and 409.989 apply to the administration of the
  769  Medikids program component of the Florida Kidcare program,
  770  except that s. 409.987 409.9122 applies to Medikids as modified
  771  by the provisions of subsection (7).
  772         Section 11. Subsection (1) of section 409.815, Florida
  773  Statutes, is amended to read:
  774         409.815 Health benefits coverage; limitations.—
  775         (1) MEDICAID BENEFITS.—For purposes of the Florida Kidcare
  776  program, benefits available under Medicaid and Medikids include
  777  those goods and services provided under the medical assistance
  778  program authorized by Title XIX of the Social Security Act, and
  779  regulations thereunder, as administered in this state by the
  780  agency. This includes those mandatory Medicaid services
  781  authorized under s. 409.905 and optional Medicaid services
  782  authorized under s. 409.906, rendered on behalf of eligible
  783  individuals by qualified providers, in accordance with federal
  784  requirements for Title XIX, subject to any limitations or
  785  directions provided for in the General Appropriations Act, or
  786  chapter 216, or s. 409.9022, and according to methodologies and
  787  limitations set forth in agency rules and policy manuals and
  788  handbooks incorporated by reference thereto.
  789         Section 12. Subsection (5) of section 409.818, Florida
  790  Statutes, is amended to read:
  791         409.818 Administration.—In order to implement ss. 409.810
  792  409.821, the following agencies shall have the following duties:
  793         (5) The Florida Healthy Kids Corporation shall retain its
  794  functions as authorized in s. 409.8115 624.91, including
  795  eligibility determination for participation in the Healthy Kids
  796  program.
  797         Section 13. Paragraph (e) of subsection (2) of section
  798  154.503, Florida Statutes, is amended to read:
  799         154.503 Primary Care for Children and Families Challenge
  800  Grant Program; creation; administration.—
  801         (2) The department shall:
  802         (e) Coordinate with the primary care program developed
  803  pursuant to s. 154.011, the Florida Healthy Kids Corporation
  804  program created in s. 409.8115 624.91, the school health
  805  services program created in ss. 381.0056 and 381.0057, the
  806  Healthy Communities, Healthy People Program created in s.
  807  381.734, and the volunteer health care provider program
  808  established developed pursuant to s. 766.1115.
  809         Section 14. Paragraph (c) of subsection (4) of section
  810  408.915, Florida Statutes, is amended to read:
  811         408.915 Eligibility pilot project.—The Agency for Health
  812  Care Administration, in consultation with the steering committee
  813  established in s. 408.916, shall develop and implement a pilot
  814  project to integrate the determination of eligibility for health
  815  care services with information and referral services.
  816         (4) The pilot project shall include eligibility
  817  determinations for the following programs:
  818         (c) Florida Healthy Kids as described in s. 409.8115 624.91
  819  and within eligibility guidelines provided in s. 409.814.
  820         Section 15. Subsection (7) is added to section 1006.06,
  821  Florida Statutes, to read:
  822         1006.06 School food service programs.—
  823         (7)Each school district shall collaborate with the Florida
  824  Kidcare program created pursuant to ss. 409.810-409.821 to:
  825         (a)At a minimum:
  826         1.Provide application information about the Kidcare
  827  program or an application for Kidcare to students at the
  828  beginning of each school year.
  829         2.Modify the school district’s application form for the
  830  lunch program under subsection (4) and the breakfast program
  831  under subsection (5) to incorporate a provision that permits the
  832  school district to share data from the application form with the
  833  state agencies and the Florida Healthy Kids Corporation and its
  834  agents that administer the Kidcare program unless the child’s
  835  parent or guardian opts out of the provision.
  836         (b)At the option of the school district, share income and
  837  other demographic data through an electronic interchange with
  838  the Florida Healthy Kids Corporation and other state agencies in
  839  order to determine eligibility for the Kidcare program on a
  840  regular and periodic basis.
  841         (c)Establish interagency agreements ensuring that data
  842  exchanged under this subsection is used only to enroll eligible
  843  children in the Florida Kidcare program and is protected from
  844  unauthorized disclosure pursuant to 42 U.S.C. s. 1758(b)(6).
  845         Section 16. The Division of Statutory Revision is requested
  846  to designate ss. 409.901 through 409.9205, Florida Statutes, as
  847  part III of chapter 409, Florida Statutes, entitled “MEDICAID.
  848         Section 17. Section 409.901, Florida Statutes, is amended
  849  to read:
  850         409.901 Definitions; ss. 409.901-409.920.—As used in this
  851  part and part IV ss. 409.901-409.920, except as otherwise
  852  specifically provided, the term:
  853         (1) “Affiliate” or “affiliated person” means any person who
  854  directly or indirectly manages, controls, or oversees the
  855  operation of a corporation or other business entity that is a
  856  Medicaid provider, regardless of whether such person is a
  857  partner, shareholder, owner, officer, director, agent, or
  858  employee of the entity.
  859         (2) “Agency” means the Agency for Health Care
  860  Administration. The agency is the Medicaid agency for the state,
  861  as provided under federal law.
  862         (3) “Applicant” means an individual whose written
  863  application for medical assistance provided by Medicaid under
  864  ss. 409.903-409.906 has been submitted to the Department of
  865  Children and Family Services, or to the Social Security
  866  Administration if the application is for Supplemental Security
  867  Income, but has not received final action. The This term
  868  includes an individual, who need not be alive at the time of
  869  application, and whose application is submitted through a
  870  representative or a person acting for the individual.
  871         (4) “Benefit” means any benefit, assistance, aid,
  872  obligation, promise, debt, liability, or the like, related to
  873  any covered injury, illness, or necessary medical care, goods,
  874  or services.
  875         (5) “Capitation” means a prospective per-member, per-month
  876  payment designed to represent, in the aggregate, an actuarially
  877  sound estimate of expenditures required for the management and
  878  provision of a specified set of medical services or long-term
  879  care services needed by members enrolled in a prepaid health
  880  plan.
  881         (6)(5) “Change of ownership” has the same meaning as in s.
  882  408.803 and includes means:
  883         (a) An event in which the provider ownership changes to a
  884  different individual entity as evidenced by a change in federal
  885  employer identification number or taxpayer identification
  886  number;
  887         (b) An event in which 51 percent or more of the ownership,
  888  shares, membership, or controlling interest of a provider is in
  889  any manner transferred or otherwise assigned. This paragraph
  890  does not apply to a licensee that is publicly traded on a
  891  recognized stock exchange; or
  892         (c) When the provider is licensed or registered by the
  893  agency, an event considered a change of ownership under part II
  894  of chapter 408 for licensure as defined in s. 408.803.
  895  
  896  A change solely in the management company or board of directors
  897  is not a change of ownership.
  898         (7)(6) “Claim” means any communication, whether written or
  899  electronic (electronic impulse or magnetic), which is used by
  900  any person to apply for payment from the Medicaid program, or
  901  its fiscal agent, or a qualified plan under part IV of this
  902  chapter for each item or service purported by any person to have
  903  been provided by a person to a any Medicaid recipient.
  904         (8)(7) “Collateral” means:
  905         (a) Any and all causes of action, suits, claims,
  906  counterclaims, and demands that accrue to a the recipient or to
  907  a the recipient’s legal representative, related to any covered
  908  injury, illness, or necessary medical care, goods, or services
  909  that resulted in necessitated that Medicaid providing provide
  910  medical assistance.
  911         (b) All judgments, settlements, and settlement agreements
  912  rendered or entered into and related to such causes of action,
  913  suits, claims, counterclaims, demands, or judgments.
  914         (c) Proceeds, as defined in this section.
  915         (9)(8) “Convicted” or “conviction” means a finding of
  916  guilt, with or without an adjudication of guilt, in any federal
  917  or state trial court of record relating to charges brought by
  918  indictment or information, as a result of a jury verdict,
  919  nonjury trial, or entry of a plea of guilty or nolo contendere,
  920  regardless of whether an appeal from judgment is pending.
  921         (10)(9) “Covered injury or illness” means any sickness,
  922  injury, disease, disability, deformity, abnormality disease,
  923  necessary medical care, pregnancy, or death for which a third
  924  party is, may be, could be, should be, or has been liable, and
  925  for which Medicaid is, or may be, obligated to provide, or has
  926  provided, medical assistance.
  927         (11)(10) “Emergency medical condition” has the same meaning
  928  as in s. 395.002. means:
  929         (a) A medical condition manifesting itself by acute
  930  symptoms of sufficient severity, which may include severe pain
  931  or other acute symptoms, such that the absence of immediate
  932  medical attention could reasonably be expected to result in any
  933  of the following:
  934         1. Serious jeopardy to the health of a patient, including a
  935  pregnant woman or a fetus.
  936         2. Serious impairment to bodily functions.
  937         3. Serious dysfunction of any bodily organ or part.
  938         (b) With respect to a pregnant woman:
  939         1. That there is inadequate time to effect safe transfer to
  940  another hospital prior to delivery.
  941         2. That a transfer may pose a threat to the health and
  942  safety of the patient or fetus.
  943         3. That there is evidence of the onset and persistence of
  944  uterine contractions or rupture of the membranes.
  945         (12)(11) “Emergency services and care” has the same meaning
  946  as in s. 395.002 means medical screening, examination, and
  947  evaluation by a physician, or, to the extent permitted by
  948  applicable laws, by other appropriate personnel under the
  949  supervision of a physician, to determine whether an emergency
  950  medical condition exists and, if it does, the care, treatment,
  951  or surgery for a covered service by a physician which is
  952  necessary to relieve or eliminate the emergency medical
  953  condition, within the service capability of a hospital.
  954         (13)(12) “Legal representative” means a guardian,
  955  conservator, survivor, or personal representative of a recipient
  956  or applicant, or of the property or estate of a recipient or
  957  applicant.
  958         (14)(13) “Managed care plan” means a health insurer
  959  authorized under chapter 624, an exclusive provider organization
  960  authorized under chapter 627, a health maintenance organization
  961  authorized under chapter 641, a provider service network
  962  authorized under s. 409.912(4)(d), or an accountable care
  963  organization authorized under federal law health maintenance
  964  organization authorized pursuant to chapter 641 or a prepaid
  965  health plan authorized pursuant to s. 409.912.
  966         (15)(14) “Medicaid” or Medicaid program means the medical
  967  assistance program authorized by Title XIX of the Social
  968  Security Act, 42 U.S.C. s. 1396 et seq., and regulations
  969  thereunder, as administered in this state by the agency.
  970         (15) “Medicaid agency” or “agency” means the single state
  971  agency that administers or supervises the administration of the
  972  state Medicaid plan under federal law.
  973         (16) “Medicaid program” means the program authorized under
  974  Title XIX of the federal Social Security Act which provides for
  975  payments for medical items or services, or both, on behalf of
  976  any person who is determined by the Department of Children and
  977  Family Services, or, for Supplemental Security Income, by the
  978  Social Security Administration, to be eligible on the date of
  979  service for Medicaid assistance.
  980         (16)(17) “Medicaid provider” or “provider” means a person
  981  or entity that has a Medicaid provider agreement in effect with
  982  the agency and is in good standing with the agency. The term
  983  also includes a person or entity that provides medical services
  984  to a Medicaid recipient under the Medicaid managed care program
  985  in part IV of this chapter.
  986         (17)(18) “Medicaid provider agreement” or “provider
  987  agreement” means a contract between the agency and a provider
  988  for the provision of services or goods, or both, to Medicaid
  989  recipients pursuant to Medicaid.
  990         (18)(19) “Medicaid recipient” or “recipient” means an
  991  individual whom the Department of Children and Family Services,
  992  or, for Supplemental Security Income, by the Social Security
  993  Administration, determines is eligible, pursuant to federal and
  994  state law, to receive medical assistance and related services
  995  for which the agency may make payments under the Medicaid
  996  program. For the purposes of determining third-party liability,
  997  the term includes an individual formerly determined to be
  998  eligible for Medicaid, an individual who has received medical
  999  assistance under the Medicaid program, or an individual on whose
 1000  behalf Medicaid has become obligated.
 1001         (19)(20) “Medicaid-related records” means records that
 1002  relate to the provider’s business or profession and to a
 1003  Medicaid recipient. The term includes Medicaid-related records
 1004  include records related to non-Medicaid customers, clients, or
 1005  patients but only to the extent that the documentation is shown
 1006  by the agency to be necessary for determining to determine a
 1007  provider’s entitlement to payments under the Medicaid program.
 1008         (20)(21) “Medical assistance” means any provision of,
 1009  payment for, or liability for medical services or care by
 1010  Medicaid to, or on behalf of, a Medicaid any recipient.
 1011         (21)(22) “Medical services” or “medical care” means medical
 1012  or medically related institutional or noninstitutional care,
 1013  goods, or services covered by the Medicaid program. The term
 1014  includes any services authorized and funded in the General
 1015  Appropriations Act.
 1016         (22)(23) “MediPass” means a primary care case management
 1017  program operated by the agency.
 1018         (23)(24) “Minority physician network” means a network of
 1019  primary care physicians with experience in managing Medicaid or
 1020  Medicare recipients which that is predominantly owned by
 1021  minorities, as defined in s. 288.703, and which may have a
 1022  collaborative partnership with a public college or university
 1023  and a tax-exempt charitable corporation.
 1024         (24)(25) “Payment,” as it relates to third-party benefits,
 1025  means performance of a duty, promise, or obligation, or
 1026  discharge of a debt or liability, by the delivery, provision, or
 1027  transfer of third-party benefits for medical services. To “pay”
 1028  means to do any of the acts set forth in this subsection.
 1029         (25)(26) “Proceeds” means whatever is received upon the
 1030  sale, exchange, collection, or other disposition of the
 1031  collateral or proceeds thereon and includes insurance payable by
 1032  reason of loss or damage to the collateral or proceeds. Money,
 1033  checks, deposit accounts, and the like are “cash proceeds.” All
 1034  other proceeds are “noncash proceeds.”
 1035         (26)(27) “Third party” means an individual, entity, or
 1036  program, excluding Medicaid, that is, may be, could be, should
 1037  be, or has been liable for all or part of the cost of medical
 1038  services related to any medical assistance covered by Medicaid.
 1039  A third party includes a third-party administrator or a pharmacy
 1040  benefits manager.
 1041         (27)(28) “Third-party benefit” means any benefit that is or
 1042  may be available at any time through contract, court award,
 1043  judgment, settlement, agreement, or any arrangement between a
 1044  third party and any person or entity, including, without
 1045  limitation, a Medicaid recipient, a provider, another third
 1046  party, an insurer, or the agency, for any Medicaid-covered
 1047  injury, illness, goods, or services, including costs of medical
 1048  services related thereto, for personal injury or for death of
 1049  the recipient, but specifically excluding policies of life
 1050  insurance on the recipient, unless available under terms of the
 1051  policy to pay medical expenses prior to death. The term
 1052  includes, without limitation, collateral, as defined in this
 1053  section, health insurance, any benefit under a health
 1054  maintenance organization, a preferred provider arrangement, a
 1055  prepaid health clinic, liability insurance, uninsured motorist
 1056  insurance or personal injury protection coverage, medical
 1057  benefits under workers’ compensation, and any obligation under
 1058  law or equity to provide medical support.
 1059         Section 18. Section 409.902, Florida Statutes, is amended
 1060  to read:
 1061         409.902 Designated single state agency; eligibility
 1062  determinations; rules payment requirements; program title;
 1063  release of medical records.—
 1064         (1) The agency for Health Care Administration is designated
 1065  as the single state agency authorized to administer the Medicaid
 1066  state plan and to make payments for medical assistance and
 1067  related services under Title XIX of the Social Security Act.
 1068  These payments shall be made, subject to any limitations or
 1069  directions provided for in the General Appropriations Act, only
 1070  for services included in the Medicaid program, shall be made
 1071  only on behalf of eligible individuals, and shall be made only
 1072  to qualified providers in accordance with federal requirements
 1073  under for Title XIX of the Social Security Act and the
 1074  provisions of state law.
 1075         (a) The agency must notify the Legislature before seeking
 1076  an amendment to the state plan for purposes of implementing
 1077  provisions authorized by the Deficit Reduction Act of 2005.
 1078         (b) The agency shall adopt any rules necessary to carry out
 1079  its statutory duties under this subsection and any other
 1080  statutory provisions related to its responsibility for the
 1081  Medicaid program and state compliance with federal Medicaid
 1082  requirements, including the Medicaid managed care program. This
 1083  program of medical assistance is designated the “Medicaid
 1084  program.”
 1085         (2) The Department of Children and Family Services is
 1086  responsible for determining Medicaid eligibility determinations,
 1087  including, but not limited to, policy, rules, and the agreement
 1088  with the Social Security Administration for Medicaid eligibility
 1089  determinations for Supplemental Security Income recipients, as
 1090  well as the actual determination of eligibility. As a condition
 1091  of Medicaid eligibility, subject to federal approval, the agency
 1092  for Health Care Administration and the Department of Children
 1093  and Family Services shall ensure that each recipient of Medicaid
 1094  consents to the release of her or his medical records to the
 1095  agency for Health Care Administration and the Medicaid Fraud
 1096  Control Unit of the Department of Legal Affairs.
 1097         (a) Eligibility is restricted to United States citizens and
 1098  to lawfully admitted noncitizens who meet the criteria provided
 1099  in s. 414.095(3).
 1100         1. Citizenship or immigration status must be verified. For
 1101  noncitizens, this includes verification of the validity of
 1102  documents with the United States Citizenship and Immigration
 1103  Services using the federal SAVE verification process.
 1104         2. State funds may not be used to provide medical services
 1105  to individuals who do not meet the requirements of this
 1106  paragraph unless the services are necessary to treat an
 1107  emergency medical condition or are for pregnant women. Such
 1108  services are authorized only to the extent provided under
 1109  federal law and in accordance with federal regulations as
 1110  provided in 42 C.F.R. s. 440.255.
 1111         (b) When adopting rules relating to eligibility for
 1112  institutional care services, hospice services, and home and
 1113  community-based waiver programs, and regardless of whether a
 1114  penalty will be applied due to the unlawful transfer of assets,
 1115  the payment of fair compensation by an applicant for a personal
 1116  care services contract entered into on or after October 1, 2011,
 1117  shall be evaluated using the following criteria:
 1118         1. The contracted services do not duplicate services
 1119  available through other sources or providers, such as Medicaid,
 1120  Medicare, private insurance, or another legally obligated third
 1121  party;
 1122         2. The contracted services directly benefit the individual
 1123  and are not services normally provided out of love and
 1124  consideration for the individual;
 1125         3. The actual cost to deliver services is computed in a
 1126  manner that clearly reflects the actual number of hours to be
 1127  expended, and the contract clearly identifies each specific
 1128  service and the average number of hours of each service to be
 1129  delivered each month;
 1130         4. The hourly rate for each contracted service is equal to
 1131  or less than the amount normally charged by a professional who
 1132  traditionally provides the same or similar services;
 1133         5. The contracted services are provided on a prospective
 1134  basis only and not for services provided in the past; and
 1135         6. The contract provides fair compensation to the
 1136  individual in his or her lifetime as set forth in life
 1137  expectancy tables adopted in rule 65A-1.716, Florida
 1138  Administrative Code.
 1139         (c) The department shall adopt any rules necessary to carry
 1140  out its statutory duties under this subsection for receiving and
 1141  processing Medicaid applications and determining Medicaid
 1142  eligibility, and any other statutory provisions related to
 1143  responsibility for the determination of Medicaid eligibility.
 1144         Section 19. Section 409.9021, Florida Statutes, is amended
 1145  to read:
 1146         409.9021 Conditions for Medicaid Forfeiture of eligibility
 1147  agreement.—As a condition of Medicaid eligibility, subject to
 1148  federal regulation and approval:,
 1149         (1) A Medicaid applicant must consent shall agree in
 1150  writing to:
 1151         (a) Have her or his medical records released to the agency
 1152  and the Medicaid Fraud Control Unit of the Department of Legal
 1153  Affairs.
 1154         (b) Forfeit all entitlements to any goods or services
 1155  provided through the Medicaid program for the next 10 years if
 1156  he or she has been found to have committed Medicaid fraud,
 1157  through judicial or administrative determination, two times in a
 1158  period of 5 years. This provision applies only to the Medicaid
 1159  recipient found to have committed or participated in Medicaid
 1160  the fraud and does not apply to any family member of the
 1161  recipient who was not involved in the fraud.
 1162         (2) A Medicaid applicant must pay a $10 monthly premium
 1163  that covers all Medicaid-eligible recipients in the applicant’s
 1164  family. However, an individual who is eligible for the
 1165  Supplemental Security Income related Medicaid and is receiving
 1166  institutional care payments is exempt from this requirement. The
 1167  agency shall seek a federal waiver to authorize the imposition
 1168  and collection of this premium effective December 31, 2011. Upon
 1169  approval, the agency shall establish by rule procedures for
 1170  collecting premiums from recipients, advance notice of
 1171  cancellation, and waiting periods for reinstatement of coverage
 1172  upon voluntary cancellation for nonpayment of premiums.
 1173         (3) A Medicaid applicant must participate, in good faith,
 1174  in:
 1175         (a) A medically approved smoking cessation program if the
 1176  applicant smokes.
 1177         (b) A medically directed weight loss program if the
 1178  applicant is or becomes morbidly obese.
 1179         (c) A medically approved alcohol or substance abuse
 1180  recovery program if the applicant is or becomes diagnosed as a
 1181  substance abuser.
 1182  
 1183  The agency shall seek a federal waiver to authorize the
 1184  implementation of this subsection in order to assist the
 1185  recipient in mitigating lifestyle choices and avoiding behaviors
 1186  associated with the use of high-cost medical services.
 1187         (4)A person who is eligible for Medicaid services and who
 1188  has access to health care coverage through an employer-sponsored
 1189  health plan may not receive Medicaid services reimbursed under
 1190  s. 409.908, s. 409.912,or s. 409.986, but may use Medicaid
 1191  financial assistance to pay the cost of premiums for the
 1192  employer-sponsored health plan for the eligible person and his
 1193  or her Medicaid-eligible family members.
 1194         (5) A Medicaid recipient who has access to other insurance
 1195  or coverage created pursuant to state or federal law may opt out
 1196  of the Medicaid services provided under s. 409.908, s. 409.912,
 1197  or s. 409.986 and use Medicaid financial assistance to pay the
 1198  cost of premiums for the recipient and the recipient’s Medicaid
 1199  eligible family members.
 1200         (6) Subsections (4) and (5) shall be administered by the
 1201  agency in accordance with s. 409.964(1)(j). The maximum amount
 1202  available for the Medicaid financial assistance shall be
 1203  calculated based on the Medicaid capitated rate as if the
 1204  Medicaid recipient and the recipient’s eligible family members
 1205  participated in a qualified plan for Medicaid managed care under
 1206  part IV of this chapter.
 1207         Section 20. Section 409.9022, Florida Statutes, is created
 1208  to read:
 1209         409.9022 Limitations on Medicaid expenditures.—
 1210         (1) Except as specifically authorized in this section, a
 1211  state agency may not obligate or expend funds for the Medicaid
 1212  program in excess of the amount appropriated in the General
 1213  Appropriations Act.
 1214         (2) If, at any time during the fiscal year, a state agency
 1215  determines that Medicaid expenditures may exceed the amount
 1216  appropriated during the fiscal year, the state agency shall
 1217  notify the Social Services Estimating Conference, which shall
 1218  meet to estimate Medicaid expenditures for the remainder of the
 1219  fiscal year. If, pursuant to this paragraph or for any other
 1220  purpose, the conference determines that Medicaid expenditures
 1221  will exceed appropriations for the fiscal year, the state agency
 1222  shall develop and submit a plan for revising Medicaid
 1223  expenditures in order to remain within the annual appropriation.
 1224  The plan must include cost-mitigating strategies to negate the
 1225  projected deficit for the remainder of the fiscal year and shall
 1226  be submitted in the form of a budget amendment to the
 1227  Legislative Budget Commission. The conference shall also
 1228  estimate the amount of savings which will result from such cost
 1229  mitigating strategies proposed by the state agency as well as
 1230  any other strategies the conference may consider and recommend.
 1231         (3) In preparing the budget amendment to revise Medicaid
 1232  expenditures in order to remain within appropriations, a state
 1233  agency shall include the following revisions to the Medicaid
 1234  state plan, in the priority order listed below:
 1235         (a) Reduction in administrative costs.
 1236         (b) Elimination of optional benefits.
 1237         (c) Elimination of optional eligibility groups.
 1238         (d) Reduction to institutional and provider reimbursement
 1239  rates.
 1240         (e) Reduction in the amount, duration, and scope of
 1241  mandatory benefits.
 1242  
 1243  The state agency may not implement any of these cost-containment
 1244  measures until the amendment is approved by the Legislative
 1245  Budget Commission.
 1246         (4) In order to remedy a projected expenditure in excess of
 1247  the amount appropriated in a specific appropriation within the
 1248  Medicaid budget, a state agency may, consistent with chapter
 1249  216:
 1250         (a) Submit a budget amendment to transfer budget authority
 1251  between appropriation categories;
 1252         (b) Submit a budget amendment to increase federal trust
 1253  authority or grants and donations trust authority if additional
 1254  federal or local funds are available; or
 1255         (c) Submit any other budget amendment consistent with
 1256  chapter 216.
 1257         (5) The agency shall amend the Medicaid state plan to
 1258  incorporate the provisions of this section.
 1259         (6) Chapter 216 does not permit the transfer of funds from
 1260  any other program into the Medicaid program or the transfer of
 1261  funds out of the Medicaid program into any other program.
 1262         Section 21. Section 409.903, Florida Statutes, is amended
 1263  to read:
 1264         409.903 Mandatory payments for eligible persons.—The agency
 1265  shall make payments for medical assistance and related services
 1266  on behalf of the following categories of persons who the
 1267  Department of Children and Family Services, or the Social
 1268  Security Administration by contract with the department of
 1269  Children and Family Services, determines to be eligible for
 1270  Medicaid, subject to the income, assets, and categorical
 1271  eligibility tests set forth in federal and state law. Payment on
 1272  behalf of these recipients Medicaid eligible persons is subject
 1273  to the availability of moneys and any limitations established by
 1274  the General Appropriations Act, or chapter 216, or s. 409.9022.
 1275         (1) Low-income families with children if are eligible for
 1276  Medicaid provided they meet the following requirements:
 1277         (a) The family includes a dependent child who is living
 1278  with a caretaker relative.
 1279         (b) The family’s income does not exceed the gross income
 1280  test limit.
 1281         (c) The family’s countable income and resources do not
 1282  exceed the applicable Aid to Families with Dependent Children
 1283  (AFDC) income and resource standards under the AFDC state plan
 1284  in effect on in July 1996, except as amended in the Medicaid
 1285  state plan to conform as closely as possible to the requirements
 1286  of the welfare transition program, to the extent permitted by
 1287  federal law.
 1288         (2) A person who receives payments from, who is determined
 1289  eligible for, or who was eligible for but lost cash benefits
 1290  from the federal program known as the Supplemental Security
 1291  Income program (SSI). This category includes a low-income person
 1292  age 65 or over and a low-income person under age 65 considered
 1293  to be permanently and totally disabled.
 1294         (3) A child under age 21 living in a low-income, two-parent
 1295  family, and a child under age 7 living with a nonrelative, if
 1296  the income and assets of the family or child, as applicable, do
 1297  not exceed the resource limits under the Temporary Cash
 1298  Assistance Program.
 1299         (4) A child who is eligible under Title IV-E of the Social
 1300  Security Act for subsidized board payments, foster care, or
 1301  adoption subsidies, and a child for whom the state has assumed
 1302  temporary or permanent responsibility and who does not qualify
 1303  for Title IV-E assistance but is in foster care, shelter or
 1304  emergency shelter care, or subsidized adoption. This category
 1305  includes a young adult who is eligible to receive services under
 1306  s. 409.1451(5), until the young adult reaches 21 years of age,
 1307  without regard to any income, resource, or categorical
 1308  eligibility test that is otherwise required. This category also
 1309  includes a person who as a child was eligible under Title IV-E
 1310  of the Social Security Act for foster care or the state-provided
 1311  foster care and who is a participant in the Road-to-Independence
 1312  Program.
 1313         (5) A pregnant woman for the duration of her pregnancy and
 1314  for the postpartum period as defined in federal law and rule, or
 1315  a child under age 1, if either is living in a family that has an
 1316  income which is at or below 150 percent of the most current
 1317  federal poverty level, or, effective January 1, 1992, that has
 1318  an income which is at or below 185 percent of the most current
 1319  federal poverty level. Such a person is not subject to an assets
 1320  test. Further, A pregnant woman who applies for eligibility for
 1321  the Medicaid program through a qualified Medicaid provider must
 1322  be offered the opportunity, subject to federal rules, to be made
 1323  presumptively eligible for the Medicaid program.
 1324         (6) A child born after September 30, 1983, living in a
 1325  family that has an income which is at or below 100 percent of
 1326  the current federal poverty level, who has attained the age of
 1327  6, but has not attained the age of 19. In determining the
 1328  eligibility of such a child, an assets test is not required. A
 1329  child who is eligible for Medicaid under this subsection must be
 1330  offered the opportunity, subject to federal rules, to be made
 1331  presumptively eligible. A child who has been deemed
 1332  presumptively eligible may for Medicaid shall not be enrolled in
 1333  a managed care plan until the child’s full eligibility
 1334  determination for Medicaid has been determined completed.
 1335         (7) A child living in a family that has an income that
 1336  which is at or below 133 percent of the current federal poverty
 1337  level, who has attained the age of 1, but has not attained the
 1338  age of 6. In determining the eligibility of such a child, an
 1339  assets test is not required. A child who is eligible for
 1340  Medicaid under this subsection must be offered the opportunity,
 1341  subject to federal rules, to be made presumptively eligible. A
 1342  child who has been deemed presumptively eligible may for
 1343  Medicaid shall not be enrolled in a managed care plan until the
 1344  child’s full eligibility determination for Medicaid has been
 1345  determined completed.
 1346         (8) A person who is age 65 or over or is determined by the
 1347  agency to be disabled, whose income is at or below 100 percent
 1348  of the most current federal poverty level and whose assets do
 1349  not exceed limitations established by the agency. However, the
 1350  agency may only pay for premiums, coinsurance, and deductibles,
 1351  as required by federal law, unless additional coverage is
 1352  provided for any or all members of this group under by s.
 1353  409.904(1).
 1354         Section 22. Section 409.904, Florida Statutes, is amended
 1355  to read:
 1356         409.904 Optional payments for eligible persons.—The agency
 1357  may make payments for medical assistance and related services on
 1358  behalf of the following categories of persons who are determined
 1359  to be eligible for Medicaid, subject to the income, assets, and
 1360  categorical eligibility tests set forth in federal and state
 1361  law. Payment on behalf of these Medicaid eligible persons is
 1362  subject to the availability of moneys and any limitations
 1363  established by the General Appropriations Act, or chapter 216,
 1364  or s. 409.9022.
 1365         (1) Effective January 1, 2006, and Subject to federal
 1366  waiver approval, a person who is age 65 or older or is
 1367  determined to be disabled, whose income is at or below 88
 1368  percent of the federal poverty level, whose assets do not exceed
 1369  established limitations, and who is not eligible for Medicare
 1370  or, if eligible for Medicare, is also eligible for and receiving
 1371  Medicaid-covered institutional care services, hospice services,
 1372  or home and community-based services. The agency shall seek
 1373  federal authorization through a waiver to provide this coverage.
 1374  This subsection expires June 30, 2011.
 1375         (2) The following persons who are eligible for the Medicaid
 1376  nonpoverty medical subsidy, which includes the same services as
 1377  those provided to other Medicaid recipients, with the exception
 1378  of services in skilled nursing facilities and intermediate care
 1379  facilities for the developmentally disabled:
 1380         (a) A family, a pregnant woman, a child under age 21, a
 1381  person age 65 or over, or a blind or disabled person, who would
 1382  be eligible under any group listed in s. 409.903(1), (2), or
 1383  (3), except that the income or assets of such family or person
 1384  exceed established limitations. For a family or person in one of
 1385  these coverage groups, medical expenses are deductible from
 1386  income in accordance with federal requirements in order to make
 1387  a determination of eligibility. A family or person eligible
 1388  under the coverage known as the “medically needy,” is eligible
 1389  to receive the same services as other Medicaid recipients, with
 1390  the exception of services in skilled nursing facilities and
 1391  intermediate care facilities for the developmentally disabled.
 1392  This paragraph expires June 30, 2011.
 1393         (b) Effective June 30 July 1, 2011, a pregnant woman or a
 1394  child younger than 21 years of age who would be eligible under
 1395  any group listed in s. 409.903, except that the income or assets
 1396  of such group exceed established limitations. For a person in
 1397  one of these coverage groups, medical expenses are deductible
 1398  from income in accordance with federal requirements in order to
 1399  make a determination of eligibility. A person eligible under the
 1400  coverage known as the “medically needy” is eligible to receive
 1401  the same services as other Medicaid recipients, with the
 1402  exception of services in skilled nursing facilities and
 1403  intermediate care facilities for the developmentally disabled.
 1404         (c)A family, a person age 65 or older, or a blind or
 1405  disabled person, who would be eligible under any group listed in
 1406  s. 409.903(1), (2), or (3), except that the income or assets of
 1407  such family or person exceed established limitations. For a
 1408  family or person in one of these coverage groups, medical
 1409  expenses are deductible from income in accordance with federal
 1410  requirements in order to make a determination of eligibility. A
 1411  family, a person age 65 or older, or a blind or disabled person,
 1412  covered under the Medicaid nonpoverty medical subsidy, is
 1413  eligible to receive physician services only.
 1414         (3) A person who is in need of the services of a licensed
 1415  nursing facility, a licensed intermediate care facility for the
 1416  developmentally disabled, or a state mental hospital, whose
 1417  income does not exceed 300 percent of the SSI income standard,
 1418  and who meets the assets standards established under federal and
 1419  state law. In determining the person’s responsibility for the
 1420  cost of care, the following amounts must be deducted from the
 1421  person’s income:
 1422         (a) The monthly personal allowance for residents as set
 1423  based on appropriations.
 1424         (b) The reasonable costs of medically necessary services
 1425  and supplies that are not reimbursable by the Medicaid program.
 1426         (c) The cost of premiums, copayments, coinsurance, and
 1427  deductibles for supplemental health insurance.
 1428         (4) A low-income person who meets all other requirements
 1429  for Medicaid eligibility except citizenship and who is in need
 1430  of emergency medical services. The eligibility of such a
 1431  recipient is limited to the period of the emergency, in
 1432  accordance with federal regulations.
 1433         (5) Subject to specific federal authorization, a woman
 1434  living in a family that has an income that is at or below 185
 1435  percent of the most current federal poverty level. Coverage is
 1436  limited to is eligible for family planning services as specified
 1437  in s. 409.905(3) for a period of up to 24 months following a
 1438  loss of Medicaid benefits.
 1439         (6) A child who has not attained the age of 19 who has been
 1440  determined eligible for the Medicaid program is deemed to be
 1441  eligible for a total of 6 months, regardless of changes in
 1442  circumstances other than attainment of the maximum age.
 1443  Effective January 1, 1999, A child who has not attained the age
 1444  of 5 and who has been determined eligible for the Medicaid
 1445  program is deemed to be eligible for a total of 12 months
 1446  regardless of changes in circumstances other than attainment of
 1447  the maximum age.
 1448         (7) A child under 1 year of age who lives in a family that
 1449  has an income above 185 percent of the most recently published
 1450  federal poverty level, but which is at or below 200 percent of
 1451  such poverty level. In determining the eligibility of such
 1452  child, an assets test is not required. A child who is eligible
 1453  for Medicaid under this subsection must be offered the
 1454  opportunity, subject to federal rules, to be made presumptively
 1455  eligible.
 1456         (8) An eligible person A Medicaid-eligible individual for
 1457  the individual’s health insurance premiums, if the agency
 1458  determines that such payments are cost-effective.
 1459         (9) Eligible women with incomes at or below 200 percent of
 1460  the federal poverty level and under age 65, for cancer treatment
 1461  pursuant to the federal Breast and Cervical Cancer Prevention
 1462  and Treatment Act of 2000, screened through the Mary Brogan
 1463  Breast and Cervical Cancer Early Detection Program established
 1464  under s. 381.93.
 1465         Section 23. Section 409.905, Florida Statutes, is amended
 1466  to read:
 1467         409.905 Mandatory Medicaid services.—The agency shall may
 1468  make payments for the following services, which are required of
 1469  the state by Title XIX of the Social Security Act, furnished by
 1470  Medicaid providers to recipients who are determined to be
 1471  eligible on the dates on which the services were provided. Any
 1472  service under this section shall be provided only when medically
 1473  necessary and in accordance with state and federal law.
 1474  Mandatory services rendered by providers in mobile units to
 1475  Medicaid recipients may be restricted by the agency. This
 1476  section does not Nothing in this section shall be construed to
 1477  prevent or limit the agency from adjusting fees, reimbursement
 1478  rates, lengths of stay, number of visits, number of services, or
 1479  any other adjustments necessary to comply with the availability
 1480  of moneys and any limitations or directions provided for in the
 1481  General Appropriations Act, or chapter 216, or s. 409.9022.
 1482         (1) ADVANCED REGISTERED NURSE PRACTITIONER SERVICES.—The
 1483  agency shall pay for services provided to a recipient by a
 1484  licensed advanced registered nurse practitioner who has a valid
 1485  collaboration agreement with a licensed physician on file with
 1486  the Department of Health or who provides anesthesia services in
 1487  accordance with established protocol required by state law and
 1488  approved by the medical staff of the facility in which the
 1489  anesthetic service is performed. Reimbursement for such services
 1490  must be provided in an amount that equals at least not less than
 1491  80 percent of the reimbursement to a physician who provides the
 1492  same services, unless otherwise provided for in the General
 1493  Appropriations Act.
 1494         (2) EARLY AND PERIODIC SCREENING, DIAGNOSIS, AND TREATMENT
 1495  SERVICES.—The agency shall pay for early and periodic screening
 1496  and diagnosis of a recipient under age 21 to ascertain physical
 1497  and mental problems and conditions and provide treatment to
 1498  correct or ameliorate these problems and conditions. These
 1499  services include all services determined by the agency to be
 1500  medically necessary for the treatment, correction, or
 1501  amelioration of these problems and conditions, including
 1502  personal care, private duty nursing, durable medical equipment,
 1503  physical therapy, occupational therapy, speech therapy,
 1504  respiratory therapy, and immunizations.
 1505         (3) FAMILY PLANNING SERVICES.—The agency shall pay for
 1506  services necessary to enable a recipient voluntarily to plan
 1507  family size or to space children. These services include
 1508  information; education; counseling regarding the availability,
 1509  benefits, and risks of each method of pregnancy prevention;
 1510  drugs and supplies; and necessary medical care and followup.
 1511  Each recipient participating in the family planning portion of
 1512  the Medicaid program must be provided the choice of freedom to
 1513  choose any alternative method of family planning, as required by
 1514  federal law.
 1515         (4) HOME HEALTH CARE SERVICES.—The agency shall pay for
 1516  nursing and home health aide services, supplies, appliances, and
 1517  durable medical equipment, necessary to assist a recipient
 1518  living at home. An entity that provides such services must
 1519  pursuant to this subsection shall be licensed under part III of
 1520  chapter 400. These services, equipment, and supplies, or
 1521  reimbursement therefor, may be limited as provided in the
 1522  General Appropriations Act and do not include services,
 1523  equipment, or supplies provided to a person residing in a
 1524  hospital or nursing facility.
 1525         (a) In providing home health care services, The agency
 1526  shall may require prior authorization of home health services
 1527  care based on diagnosis, utilization rates, and or billing
 1528  rates. The agency shall require prior authorization for visits
 1529  for home health services that are not associated with a skilled
 1530  nursing visit when the home health agency billing rates exceed
 1531  the state average by 50 percent or more. The home health agency
 1532  must submit the recipient’s plan of care and documentation that
 1533  supports the recipient’s diagnosis to the agency when requesting
 1534  prior authorization.
 1535         (b) The agency shall implement a comprehensive utilization
 1536  management program that requires prior authorization of all
 1537  private duty nursing services, an individualized treatment plan
 1538  that includes information about medication and treatment orders,
 1539  treatment goals, methods of care to be used, and plans for care
 1540  coordination by nurses and other health professionals. The
 1541  utilization management program must shall also include a process
 1542  for periodically reviewing the ongoing use of private duty
 1543  nursing services. The assessment of need shall be based on a
 1544  child’s condition;, family support and care supplements;, a
 1545  family’s ability to provide care;, and a family’s and child’s
 1546  schedule regarding work, school, sleep, and care for other
 1547  family dependents; and a determination of the medical necessity
 1548  for private duty nursing instead of other more cost-effective
 1549  in-home services. When implemented, the private duty nursing
 1550  utilization management program shall replace the current
 1551  authorization program used by the agency for Health Care
 1552  Administration and the Children’s Medical Services program of
 1553  the Department of Health. The agency may competitively bid on a
 1554  contract to select a qualified organization to provide
 1555  utilization management of private duty nursing services. The
 1556  agency may is authorized to seek federal waivers to implement
 1557  this initiative.
 1558         (c) The agency may not pay for home health services unless
 1559  the services are medically necessary and:
 1560         1. The services are ordered by a physician.
 1561         2. The written prescription for the services is signed and
 1562  dated by the recipient’s physician before the development of a
 1563  plan of care and before any request requiring prior
 1564  authorization.
 1565         3. The physician ordering the services is not employed,
 1566  under contract with, or otherwise affiliated with the home
 1567  health agency rendering the services. However, this subparagraph
 1568  does not apply to a home health agency affiliated with a
 1569  retirement community, of which the parent corporation or a
 1570  related legal entity owns a rural health clinic certified under
 1571  42 C.F.R. part 491, subpart A, ss. 1-11, a nursing home licensed
 1572  under part II of chapter 400, or an apartment or single-family
 1573  home for independent living. For purposes of this subparagraph,
 1574  the agency may, on a case-by-case basis, provide an exception
 1575  for medically fragile children who are younger than 21 years of
 1576  age.
 1577         4. The physician ordering the services has examined the
 1578  recipient within the 30 days preceding the initial request for
 1579  the services and biannually thereafter.
 1580         5. The written prescription for the services includes the
 1581  recipient’s acute or chronic medical condition or diagnosis, the
 1582  home health service required, and, for skilled nursing services,
 1583  the frequency and duration of the services.
 1584         6. The national provider identifier, Medicaid
 1585  identification number, or medical practitioner license number of
 1586  the physician ordering the services is listed on the written
 1587  prescription for the services, the claim for home health
 1588  reimbursement, and the prior authorization request.
 1589         (5) HOSPITAL INPATIENT SERVICES.—The agency shall pay for
 1590  all covered services provided for the medical care and treatment
 1591  of a recipient who is admitted as an inpatient by a licensed
 1592  physician or dentist to a hospital licensed under part I of
 1593  chapter 395. However, the agency shall limit the payment for
 1594  inpatient hospital services for a Medicaid recipient 21 years of
 1595  age or older to 45 days or the number of days necessary to
 1596  comply with the General Appropriations Act.
 1597         (a) The agency may is authorized to implement reimbursement
 1598  and utilization management reforms in order to comply with any
 1599  limitations or directions in the General Appropriations Act,
 1600  which may include, but are not limited to: prior authorization
 1601  for inpatient psychiatric days; prior authorization for
 1602  nonemergency hospital inpatient admissions for individuals 21
 1603  years of age and older; authorization of emergency and urgent
 1604  care admissions within 24 hours after admission; enhanced
 1605  utilization and concurrent review programs for highly utilized
 1606  services; reduction or elimination of covered days of service;
 1607  adjusting reimbursement ceilings for variable costs; adjusting
 1608  reimbursement ceilings for fixed and property costs; and
 1609  implementing target rates of increase. The agency may limit
 1610  prior authorization for hospital inpatient services to selected
 1611  diagnosis-related groups, based on an analysis of the cost and
 1612  potential for unnecessary hospitalizations represented by
 1613  certain diagnoses. Admissions for normal delivery and newborns
 1614  are exempt from requirements for prior authorization. In
 1615  implementing the provisions of this section related to prior
 1616  authorization, the agency must shall ensure that the process for
 1617  authorization is accessible 24 hours per day, 7 days per week
 1618  and that authorization is automatically granted if when not
 1619  denied within 4 hours after the request. Authorization
 1620  procedures must include steps for reviewing review of denials.
 1621  Upon implementing the prior authorization program for hospital
 1622  inpatient services, the agency shall discontinue its hospital
 1623  retrospective review program.
 1624         (b) A licensed hospital maintained primarily for the care
 1625  and treatment of patients having mental disorders or mental
 1626  diseases may is not eligible to participate in the hospital
 1627  inpatient portion of the Medicaid program except as provided in
 1628  federal law. However, the Department of Children and Family
 1629  Services shall apply for a waiver, within 9 months after June 5,
 1630  1991, designed to provide hospitalization services for mental
 1631  health reasons to children and adults in the most cost-effective
 1632  and lowest cost setting possible. Such waiver shall include a
 1633  request for the opportunity to pay for care in hospitals known
 1634  under federal law as “institutions for mental disease” or
 1635  “IMD’s.” The waiver proposal shall propose no additional
 1636  aggregate cost to the state or Federal Government, and shall be
 1637  conducted in Hillsborough County, Highlands County, Hardee
 1638  County, Manatee County, and Polk County. The waiver proposal may
 1639  incorporate competitive bidding for hospital services,
 1640  comprehensive brokering, prepaid capitated arrangements, or
 1641  other mechanisms deemed by the department to show promise in
 1642  reducing the cost of acute care and increasing the effectiveness
 1643  of preventive care. When developing the waiver proposal, the
 1644  department shall take into account price, quality,
 1645  accessibility, linkages of the hospital to community services
 1646  and family support programs, plans of the hospital to ensure the
 1647  earliest discharge possible, and the comprehensiveness of the
 1648  mental health and other health care services offered by
 1649  participating providers.
 1650         (c) The agency shall adjust a hospital’s current inpatient
 1651  per diem rate to reflect the cost of serving the Medicaid
 1652  population at that institution if:
 1653         1. The hospital experiences an increase in Medicaid
 1654  caseload by more than 25 percent in any year, primarily
 1655  resulting from the closure of a hospital in the same service
 1656  area occurring after July 1, 1995;
 1657         2. The hospital’s Medicaid per diem rate is at least 25
 1658  percent below the Medicaid per patient cost for that year; or
 1659         3. The hospital is located in a county that has six or
 1660  fewer general acute care hospitals, began offering obstetrical
 1661  services on or after September 1999, and has submitted a request
 1662  in writing to the agency for a rate adjustment after July 1,
 1663  2000, but before September 30, 2000, in which case such
 1664  hospital’s Medicaid inpatient per diem rate shall be adjusted to
 1665  cost, effective July 1, 2002. By October 1 of each year, the
 1666  agency must provide estimated costs for any adjustment in a
 1667  hospital inpatient per diem rate to the Executive Office of the
 1668  Governor, the House of Representatives General Appropriations
 1669  Committee, and the Senate Appropriations Committee. Before the
 1670  agency implements a change in a hospital’s inpatient per diem
 1671  rate pursuant to this paragraph, the Legislature must have
 1672  specifically appropriated sufficient funds in the General
 1673  Appropriations Act to support the increase in cost as estimated
 1674  by the agency.
 1675         (d) The agency shall implement a hospitalist program in
 1676  nonteaching hospitals, select counties, or statewide. The
 1677  program shall require hospitalists to manage Medicaid
 1678  recipients’ hospital admissions and lengths of stay. Individuals
 1679  who are dually eligible for Medicare and Medicaid are exempted
 1680  from this requirement. Medicaid participating physicians and
 1681  other practitioners with hospital admitting privileges shall
 1682  coordinate and review admissions of Medicaid recipients with the
 1683  hospitalist. The agency may competitively bid a contract for
 1684  selection of a single qualified organization to provide
 1685  hospitalist services. The agency may procure hospitalist
 1686  services by individual county or may combine counties in a
 1687  single procurement. The qualified organization shall contract
 1688  with or employ board-eligible physicians in Miami-Dade, Palm
 1689  Beach, Hillsborough, Pasco, and Pinellas Counties. The agency
 1690  may is authorized to seek federal waivers to implement this
 1691  program.
 1692         (e) The agency shall implement a comprehensive utilization
 1693  management program for hospital neonatal intensive care stays in
 1694  certain high-volume participating hospitals, select counties, or
 1695  statewide, and shall replace existing hospital inpatient
 1696  utilization management programs for neonatal intensive care
 1697  admissions. The program shall be designed to manage the lengths
 1698  of stay for children being treated in neonatal intensive care
 1699  units and must seek the earliest medically appropriate discharge
 1700  to the child’s home or other less costly treatment setting. The
 1701  agency may competitively bid a contract for selection of a
 1702  qualified organization to provide neonatal intensive care
 1703  utilization management services. The agency may is authorized to
 1704  seek any federal waivers to implement this initiative.
 1705         (f) The agency may develop and implement a program to
 1706  reduce the number of hospital readmissions among the non
 1707  Medicare population eligible in areas 9, 10, and 11.
 1708         (6) HOSPITAL OUTPATIENT SERVICES.—The agency shall pay for
 1709  preventive, diagnostic, therapeutic, or palliative care and
 1710  other services provided to a recipient in the outpatient portion
 1711  of a hospital licensed under part I of chapter 395, and provided
 1712  under the direction of a licensed physician or licensed dentist,
 1713  except that payment for such care and services is limited to
 1714  $1,500 per state fiscal year per recipient, unless an exception
 1715  has been made by the agency, and with the exception of a
 1716  Medicaid recipient under age 21, in which case the only
 1717  limitation is medical necessity.
 1718         (7) INDEPENDENT LABORATORY SERVICES.—The agency shall pay
 1719  for medically necessary diagnostic laboratory procedures ordered
 1720  by a licensed physician or other licensed health care
 1721  practitioner of the healing arts which are provided for a
 1722  recipient in a laboratory that meets the requirements for
 1723  Medicare participation and is licensed under chapter 483, if
 1724  required.
 1725         (8) NURSING FACILITY SERVICES.—The agency shall pay for 24
 1726  hour-a-day nursing and rehabilitative services for a recipient
 1727  in a nursing facility licensed under part II of chapter 400 or
 1728  in a rural hospital, as defined in s. 395.602, or in a Medicare
 1729  certified skilled nursing facility operated by a general
 1730  hospital, as defined in by s. 395.002(10), which that is
 1731  licensed under part I of chapter 395, and in accordance with
 1732  provisions set forth in s. 409.908(2)(a), which services are
 1733  ordered by and provided under the direction of a licensed
 1734  physician. However, if a nursing facility has been destroyed or
 1735  otherwise made uninhabitable by natural disaster or other
 1736  emergency and another nursing facility is not available, the
 1737  agency must pay for similar services temporarily in a hospital
 1738  licensed under part I of chapter 395 provided federal funding is
 1739  approved and available. The agency shall pay only for bed-hold
 1740  days if the facility has an occupancy rate of 95 percent or
 1741  greater. The agency is authorized to seek any federal waivers to
 1742  implement this policy.
 1743         (9) PHYSICIAN SERVICES.—The agency shall pay for covered
 1744  services and procedures rendered to a Medicaid recipient by, or
 1745  under the personal supervision of, a person licensed under state
 1746  law to practice medicine or osteopathic medicine. These services
 1747  may be furnished in the physician’s office, the Medicaid
 1748  recipient’s home, a hospital, a nursing facility, or elsewhere,
 1749  but must shall be medically necessary for the treatment of a
 1750  covered an injury or, illness, or disease within the scope of
 1751  the practice of medicine or osteopathic medicine as defined by
 1752  state law. The agency may shall not pay for services that are
 1753  clinically unproven, experimental, or for purely cosmetic
 1754  purposes.
 1755         (10) PORTABLE X-RAY SERVICES.—The agency shall pay for
 1756  professional and technical portable radiological services
 1757  ordered by a licensed physician or other licensed health care
 1758  practitioner of the healing arts which are provided by a
 1759  licensed professional in a setting other than a hospital,
 1760  clinic, or office of a physician or practitioner of the healing
 1761  arts, on behalf of a recipient.
 1762         (11) RURAL HEALTH CLINIC SERVICES.—The agency shall pay for
 1763  outpatient primary health care services for a recipient provided
 1764  by a clinic certified by and participating in the Medicare
 1765  program which is located in a federally designated, rural,
 1766  medically underserved area and has on its staff one or more
 1767  licensed primary care nurse practitioners or physician
 1768  assistants, and a licensed staff supervising physician or a
 1769  consulting supervising physician.
 1770         (12) TRANSPORTATION SERVICES.—The agency shall ensure that
 1771  appropriate transportation services are available for a Medicaid
 1772  recipient in need of transport to a qualified Medicaid provider
 1773  for medically necessary and Medicaid-compensable services, if
 1774  the recipient’s provided a client’s ability to choose a specific
 1775  transportation provider is shall be limited to those options
 1776  resulting from policies established by the agency to meet the
 1777  fiscal limitations of the General Appropriations Act. The agency
 1778  may pay for necessary transportation and other related travel
 1779  expenses as necessary only if these services are not otherwise
 1780  available.
 1781         Section 24. Section 409.906, Florida Statutes, is amended
 1782  to read:
 1783         409.906 Optional Medicaid services.—Subject to specific
 1784  appropriations, the agency may make payments for services which
 1785  are optional to the state under Title XIX of the Social Security
 1786  Act and are furnished by Medicaid providers to recipients who
 1787  are determined to be eligible on the dates on which the services
 1788  were provided. Any optional service that is provided shall be
 1789  provided only when medically necessary and in accordance with
 1790  state and federal law. Optional services rendered by providers
 1791  in mobile units to Medicaid recipients may be restricted or
 1792  prohibited by the agency. Nothing in This section does not shall
 1793  be construed to prevent or limit the agency from adjusting fees,
 1794  reimbursement rates, lengths of stay, number of visits, or
 1795  number of services, or making any other adjustments necessary to
 1796  comply with the availability of moneys and any limitations or
 1797  directions provided for in the General Appropriations Act, or
 1798  chapter 216, or s. 409.9022. If necessary to safeguard the
 1799  state’s systems of providing services to elderly and disabled
 1800  persons and subject to the notice and review provisions of s.
 1801  216.177, the Governor may direct the Agency for Health Care
 1802  Administration to amend the Medicaid state plan to delete the
 1803  optional Medicaid service known as “Intermediate Care Facilities
 1804  for the Developmentally Disabled.” Optional services may
 1805  include:
 1806         (1) ADULT DENTAL SERVICES.—For a recipient who is 21 years
 1807  of age or older:
 1808         (a) The agency may pay for medically necessary, emergency
 1809  dental procedures to alleviate pain or infection. Emergency
 1810  dental care is shall be limited to emergency oral examinations,
 1811  necessary radiographs, extractions, and incision and drainage of
 1812  abscess, for a recipient who is 21 years of age or older.
 1813         (b) Beginning July 1, 2006, The agency may pay for full or
 1814  partial dentures, the procedures required to seat full or
 1815  partial dentures, and the repair and reline of full or partial
 1816  dentures, provided by or under the direction of a licensed
 1817  dentist, for a recipient who is 21 years of age or older.
 1818         (c) However, Medicaid will not provide reimbursement for
 1819  dental services provided in a mobile dental unit, except for a
 1820  mobile dental unit:
 1821         1. Owned by, operated by, or having a contractual agreement
 1822  with the Department of Health and complying with Medicaid’s
 1823  county health department clinic services program specifications
 1824  as a county health department clinic services provider.
 1825         2. Owned by, operated by, or having a contractual
 1826  arrangement with a federally qualified health center and
 1827  complying with Medicaid’s federally qualified health center
 1828  specifications as a federally qualified health center provider.
 1829         3. Rendering dental services to Medicaid recipients, 21
 1830  years of age and older, at nursing facilities.
 1831         4. Owned by, operated by, or having a contractual agreement
 1832  with a state-approved dental educational institution.
 1833         (2) ADULT HEALTH SCREENING SERVICES.—The agency may pay for
 1834  an annual routine physical examination, conducted by or under
 1835  the direction of a licensed physician, for a recipient age 21 or
 1836  older, without regard to medical necessity, in order to detect
 1837  and prevent disease, disability, or other health condition or
 1838  its progression.
 1839         (3) AMBULATORY SURGICAL CENTER SERVICES.—The agency may pay
 1840  for services provided to a recipient in an ambulatory surgical
 1841  center licensed under part I of chapter 395, by or under the
 1842  direction of a licensed physician or dentist.
 1843         (4) BIRTH CENTER SERVICES.—The agency may pay for
 1844  examinations and delivery, recovery, and newborn assessment, and
 1845  related services, provided in a licensed birth center staffed
 1846  with licensed physicians, certified nurse midwives, and midwives
 1847  licensed in accordance with chapter 467, to a recipient expected
 1848  to experience a low-risk pregnancy and delivery.
 1849         (5) CASE MANAGEMENT SERVICES.—The agency may pay for
 1850  primary care case management services rendered to a recipient
 1851  pursuant to a federally approved waiver, and targeted case
 1852  management services for specific groups of targeted recipients,
 1853  for which funding has been provided and which are rendered
 1854  pursuant to federal guidelines. The agency may is authorized to
 1855  limit reimbursement for targeted case management services in
 1856  order to comply with any limitations or directions provided for
 1857  in the General Appropriations Act.
 1858         (6) CHILDREN’S DENTAL SERVICES.—The agency may pay for
 1859  diagnostic, preventive, or corrective procedures, including
 1860  orthodontia in severe cases, provided to a recipient under age
 1861  21, by or under the supervision of a licensed dentist. Services
 1862  provided under this program include treatment of the teeth and
 1863  associated structures of the oral cavity, as well as treatment
 1864  of disease, injury, or impairment that may affect the oral or
 1865  general health of the individual. However, Medicaid may will not
 1866  provide reimbursement for dental services provided in a mobile
 1867  dental unit, except for a mobile dental unit:
 1868         (a) Owned by, operated by, or having a contractual
 1869  agreement with the Department of Health and complying with
 1870  Medicaid’s county health department clinic services program
 1871  specifications as a county health department clinic services
 1872  provider.
 1873         (b) Owned by, operated by, or having a contractual
 1874  arrangement with a federally qualified health center and
 1875  complying with Medicaid’s federally qualified health center
 1876  specifications as a federally qualified health center provider.
 1877         (c) Rendering dental services to Medicaid recipients, 21
 1878  years of age and older, at nursing facilities.
 1879         (d) Owned by, operated by, or having a contractual
 1880  agreement with a state-approved dental educational institution.
 1881         (7) CHIROPRACTIC SERVICES.—The agency may pay for manual
 1882  manipulation of the spine and initial services, screening, and X
 1883  rays provided to a recipient by a licensed chiropractic
 1884  physician.
 1885         (8) COMMUNITY MENTAL HEALTH SERVICES.—
 1886         (a) The agency may pay for rehabilitative services provided
 1887  to a recipient by a mental health or substance abuse provider
 1888  under contract with the agency or the Department of Children and
 1889  Family Services to provide such services. Those Services that
 1890  which are psychiatric in nature must shall be rendered or
 1891  recommended by a psychiatrist, and those services that which are
 1892  medical in nature must shall be rendered or recommended by a
 1893  physician or psychiatrist.
 1894         (a) The agency shall must develop a provider enrollment
 1895  process for community mental health providers which bases
 1896  provider enrollment on an assessment of service need. The
 1897  provider enrollment process shall be designed to control costs,
 1898  prevent fraud and abuse, consider provider expertise and
 1899  capacity, and assess provider success in managing utilization of
 1900  care and measuring treatment outcomes. Providers must will be
 1901  selected through a competitive procurement or selective
 1902  contracting process. In addition to other community mental
 1903  health providers, the agency shall consider enrolling for
 1904  enrollment mental health programs licensed under chapter 395 and
 1905  group practices licensed under chapter 458, chapter 459, chapter
 1906  490, or chapter 491. The agency may is also authorized to
 1907  continue the operation of its behavioral health utilization
 1908  management program and may develop new services, if these
 1909  actions are necessary, to ensure savings from the implementation
 1910  of the utilization management system. The agency shall
 1911  coordinate the implementation of this enrollment process with
 1912  the Department of Children and Family Services and the
 1913  Department of Juvenile Justice. The agency may use is authorized
 1914  to utilize diagnostic criteria in setting reimbursement rates,
 1915  to preauthorize certain high-cost or highly utilized services,
 1916  to limit or eliminate coverage for certain services, or to make
 1917  any other adjustments necessary to comply with any limitations
 1918  or directions provided for in the General Appropriations Act.
 1919         (b) The agency may is authorized to implement reimbursement
 1920  and use management reforms in order to comply with any
 1921  limitations or directions in the General Appropriations Act,
 1922  which may include, but are not limited to: prior authorization
 1923  of treatment and service plans; prior authorization of services;
 1924  enhanced use review programs for highly used services; and
 1925  limits on services for recipients those determined to be abusing
 1926  their benefit coverages.
 1927         (9) DIALYSIS FACILITY SERVICES.—Subject to specific
 1928  appropriations being provided for this purpose, the agency may
 1929  pay a dialysis facility that is approved as a dialysis facility
 1930  in accordance with Title XVIII of the Social Security Act, for
 1931  dialysis services that are provided to a Medicaid recipient
 1932  under the direction of a physician licensed to practice medicine
 1933  or osteopathic medicine in this state, including dialysis
 1934  services provided in the recipient’s home by a hospital-based or
 1935  freestanding dialysis facility.
 1936         (10) DURABLE MEDICAL EQUIPMENT.—The agency may authorize
 1937  and pay for certain durable medical equipment and supplies
 1938  provided to a Medicaid recipient as medically necessary.
 1939         (11) HEALTHY START SERVICES.—The agency may pay for a
 1940  continuum of risk-appropriate medical and psychosocial services
 1941  for the Healthy Start program in accordance with a federal
 1942  waiver. The agency may not implement the federal waiver unless
 1943  the waiver permits the state to limit enrollment or the amount,
 1944  duration, and scope of services to ensure that expenditures will
 1945  not exceed funds appropriated by the Legislature or available
 1946  from local sources. If the Health Care Financing Administration
 1947  does not approve a federal waiver for Healthy Start services is
 1948  not approved, the agency, in consultation with the Department of
 1949  Health and the Florida Association of Healthy Start Coalitions,
 1950  may is authorized to establish a Medicaid certified-match
 1951  program for Healthy Start services. Participation in the Healthy
 1952  Start certified-match program is shall be voluntary, and
 1953  reimbursement is shall be limited to the federal Medicaid share
 1954  provided to Medicaid-enrolled Healthy Start coalitions for
 1955  services provided to Medicaid recipients. The agency may not
 1956  shall take no action to implement a certified-match program
 1957  without ensuring that the amendment and review requirements of
 1958  ss. 216.177 and 216.181 have been met.
 1959         (12) HEARING SERVICES.—The agency may pay for hearing and
 1960  related services, including hearing evaluations, hearing aid
 1961  devices, dispensing of the hearing aid, and related repairs, if
 1962  provided to a recipient by a licensed hearing aid specialist,
 1963  otolaryngologist, otologist, audiologist, or physician.
 1964         (13) HOME AND COMMUNITY-BASED SERVICES.—
 1965         (a) The agency may pay for home-based or community-based
 1966  services that are rendered to a recipient in accordance with a
 1967  federally approved waiver program. The agency may limit or
 1968  eliminate coverage for certain services, preauthorize high-cost
 1969  or highly utilized services, or make any other adjustments
 1970  necessary to comply with any limitations or directions provided
 1971  for in the General Appropriations Act.
 1972         (b) The agency may consolidate types of services offered in
 1973  the Aged and Disabled Waiver, the Channeling Waiver, the Project
 1974  AIDS Care Waiver, and the Traumatic Brain and Spinal Cord Injury
 1975  Waiver programs in order to group similar services under a
 1976  single service, or continue a service upon evidence of the need
 1977  for including a particular service type in a particular waiver.
 1978  The agency may is authorized to seek a Medicaid state plan
 1979  amendment or federal waiver approval to implement this policy.
 1980         (c) The agency may implement a utilization management
 1981  program designed to prior-authorize home and community-based
 1982  service plans which and includes, but is not limited to,
 1983  assessing proposed quantity and duration of services and
 1984  monitoring ongoing service use by participants in the program.
 1985  The agency may is authorized to competitively procure a
 1986  qualified organization to provide utilization management of home
 1987  and community-based services. The agency may is authorized to
 1988  seek any federal waivers to implement this initiative.
 1989         (d) The agency shall assess a fee against the parents of a
 1990  child who is being served by a waiver under this subsection if
 1991  the adjusted household income is greater than 100 percent of the
 1992  federal poverty level. The amount of the fee shall be calculated
 1993  using a sliding scale based on the size of the family, the
 1994  amount of the parent’s adjusted gross income, and the federal
 1995  poverty guidelines. The agency shall seek a federal waiver to
 1996  implement this provision.
 1997         (14) HOSPICE CARE SERVICES.—The agency may pay for all
 1998  reasonable and necessary services for the palliation or
 1999  management of a recipient’s terminal illness, if the services
 2000  are provided by a hospice that is licensed under part IV of
 2001  chapter 400 and meets Medicare certification requirements.
 2002         (15) INTERMEDIATE CARE FACILITY FOR THE DEVELOPMENTALLY
 2003  DISABLED SERVICES.—The agency may pay for health-related care
 2004  and services provided on a 24-hour-a-day basis by a facility
 2005  licensed and certified as a Medicaid Intermediate Care Facility
 2006  for the Developmentally Disabled, for a recipient who needs such
 2007  care because of a developmental disability. Payment may shall
 2008  not include bed-hold days except in facilities with occupancy
 2009  rates of 95 percent or greater. The agency may is authorized to
 2010  seek any federal waiver approvals to implement this policy. If
 2011  necessary to safeguard the state’s systems of providing services
 2012  to elderly and disabled persons and subject to notice and review
 2013  under s. 216.177, the Governor may direct the agency to amend
 2014  the Medicaid state plan to delete these services.
 2015         (16) INTERMEDIATE CARE SERVICES.—The agency may pay for 24
 2016  hour-a-day intermediate care nursing and rehabilitation services
 2017  rendered to a recipient in a nursing facility licensed under
 2018  part II of chapter 400, if the services are ordered by and
 2019  provided under the direction of a physician.
 2020         (17) OPTOMETRIC SERVICES.—The agency may pay for services
 2021  provided to a recipient, including examination, diagnosis,
 2022  treatment, and management, related to ocular pathology, if the
 2023  services are provided by a licensed optometrist or physician.
 2024         (18) PHYSICIAN ASSISTANT SERVICES.—The agency may pay for
 2025  all services provided to a recipient by a physician assistant
 2026  licensed under s. 458.347 or s. 459.022. Reimbursement for such
 2027  services must be at least not less than 80 percent of the
 2028  reimbursement that would be paid to a physician who provided the
 2029  same services.
 2030         (19) PODIATRIC SERVICES.—The agency may pay for services,
 2031  including diagnosis and medical, surgical, palliative, and
 2032  mechanical treatment, related to ailments of the human foot and
 2033  lower leg, if provided to a recipient by a podiatric physician
 2034  licensed under state law.
 2035         (20) PRESCRIBED DRUG SERVICES.—The agency may pay for
 2036  medications that are prescribed for a recipient by a physician
 2037  or other licensed health care practitioner of the healing arts
 2038  authorized to prescribe medications and that are dispensed to
 2039  the recipient by a licensed pharmacist or physician in
 2040  accordance with applicable state and federal law. However, the
 2041  agency may not pay for any psychotropic medication prescribed
 2042  for a child younger than the age for which the federal Food and
 2043  Drug Administration has approved its use.
 2044         (21) REGISTERED NURSE FIRST ASSISTANT SERVICES.—The agency
 2045  may pay for all services provided to a recipient by a registered
 2046  nurse first assistant as described in s. 464.027. Reimbursement
 2047  for such services must be at least may not be less than 80
 2048  percent of the reimbursement that would be paid to a physician
 2049  providing the same services.
 2050         (22) STATE HOSPITAL SERVICES.—The agency may pay for all
 2051  inclusive psychiatric inpatient hospital care provided to a
 2052  recipient age 65 or older in a state mental hospital.
 2053         (23) VISUAL SERVICES.—The agency may pay for visual
 2054  examinations, eyeglasses, and eyeglass repairs for a recipient
 2055  if they are prescribed by a licensed physician specializing in
 2056  diseases of the eye or by a licensed optometrist. Eyeglass
 2057  frames for adult recipients are shall be limited to one pair per
 2058  recipient every 2 years, except a second pair may be provided
 2059  during that period after prior authorization. Eyeglass lenses
 2060  for adult recipients are shall be limited to one pair per year
 2061  except a second pair may be provided during that period after
 2062  prior authorization.
 2063         (24) CHILD-WELFARE-TARGETED CASE MANAGEMENT.—The agency for
 2064  Health Care Administration, in consultation with the Department
 2065  of Children and Family Services, may establish a targeted case
 2066  management project in those counties identified by the
 2067  department of Children and Family Services and for all counties
 2068  with a community-based child welfare project, as authorized
 2069  under s. 409.1671, which have been specifically approved by the
 2070  department. The covered group that is of individuals who are
 2071  eligible for to receive targeted case management include
 2072  children who are eligible for Medicaid; who are between the ages
 2073  of birth through 21; and who are under protective supervision or
 2074  postplacement supervision, under foster-care supervision, or in
 2075  shelter care or foster care. The number of eligible children
 2076  individuals who are eligible to receive targeted case management
 2077  is limited to the number for whom the department of Children and
 2078  Family Services has matching funds to cover the costs. The
 2079  general revenue funds required to match the funds for services
 2080  provided by the community-based child welfare projects are
 2081  limited to funds available for services described under s.
 2082  409.1671. The department of Children and Family Services may
 2083  transfer the general revenue matching funds as billed by the
 2084  agency for Health Care Administration.
 2085         (25) ASSISTIVE-CARE SERVICES.—The agency may pay for
 2086  assistive-care services provided to recipients with functional
 2087  or cognitive impairments residing in assisted living facilities,
 2088  adult family-care homes, or residential treatment facilities.
 2089  These services may include health support, assistance with the
 2090  activities of daily living and the instrumental acts of daily
 2091  living, assistance with medication administration, and
 2092  arrangements for health care.
 2093         (26) HOME AND COMMUNITY-BASED SERVICES FOR AUTISM SPECTRUM
 2094  DISORDER AND OTHER DEVELOPMENTAL DISABILITIES.—The agency may is
 2095  authorized to seek federal approval through a Medicaid waiver or
 2096  a state plan amendment for the provision of occupational
 2097  therapy, speech therapy, physical therapy, behavior analysis,
 2098  and behavior assistant services to individuals who are 5 years
 2099  of age and under and have a diagnosed developmental disability
 2100  as defined in s. 393.063, or autism spectrum disorder as defined
 2101  in s. 627.6686, or Down syndrome, a genetic disorder caused by
 2102  the presence of extra chromosomal material on chromosome 21.
 2103  Causes of the syndrome may include Trisomy 21, Mosaicism,
 2104  Robertsonian Translocation, and other duplications of a portion
 2105  of chromosome 21. Coverage for such services is shall be limited
 2106  to $36,000 annually and may not exceed $108,000 in total
 2107  lifetime benefits. The agency shall submit an annual report
 2108  beginning on January 1, 2009, to the President of the Senate,
 2109  the Speaker of the House of Representatives, and the relevant
 2110  committees of the Senate and the House of Representatives
 2111  regarding progress on obtaining federal approval and
 2112  recommendations for the implementation of these home and
 2113  community-based services. The agency may not implement this
 2114  subsection without prior legislative approval.
 2115         (27) ANESTHESIOLOGIST ASSISTANT SERVICES.—The agency may
 2116  pay for all services provided to a recipient by an
 2117  anesthesiologist assistant licensed under s. 458.3475 or s.
 2118  459.023. Reimbursement for such services must be at least not
 2119  less than 80 percent of the reimbursement that would be paid to
 2120  a physician who provided the same services.
 2121         Section 25. Section 409.9062, Florida Statutes, is amended
 2122  to read:
 2123         409.9062 Lung transplant services for Medicaid recipients.
 2124  Subject to the availability of funds and subject to any
 2125  limitations or directions provided for in the General
 2126  Appropriations Act, or chapter 216, or s. 409.9022, the Agency
 2127  for Health Care Administration Medicaid program shall pay for
 2128  medically necessary lung transplant services for Medicaid
 2129  recipients. These payments must be used to reimburse approved
 2130  lung transplant facilities a global fee for providing lung
 2131  transplant services to Medicaid recipients.
 2132         Section 26. Paragraph (h) of subsection (3) of section
 2133  409.907, Florida Statutes, is amended to read:
 2134         409.907 Medicaid provider agreements.—The agency may make
 2135  payments for medical assistance and related services rendered to
 2136  Medicaid recipients only to an individual or entity who has a
 2137  provider agreement in effect with the agency, who is performing
 2138  services or supplying goods in accordance with federal, state,
 2139  and local law, and who agrees that no person shall, on the
 2140  grounds of handicap, race, color, or national origin, or for any
 2141  other reason, be subjected to discrimination under any program
 2142  or activity for which the provider receives payment from the
 2143  agency.
 2144         (3) The provider agreement developed by the agency, in
 2145  addition to the requirements specified in subsections (1) and
 2146  (2), shall require the provider to:
 2147         (h) Be liable for and indemnify, defend, and hold the
 2148  agency harmless from all claims, suits, judgments, or damages,
 2149  including court costs and attorney’s fees, arising out of the
 2150  negligence or omissions of the provider in the course of
 2151  providing services to a recipient or a person believed to be a
 2152  recipient, subject to s. 766.1183 or s. 766.1184.
 2153         Section 27. Section 409.908, Florida Statutes, is amended
 2154  to read:
 2155         409.908 Reimbursement of Medicaid providers.—Subject to
 2156  specific appropriations, the agency shall reimburse Medicaid
 2157  providers, in accordance with state and federal law, according
 2158  to methodologies set forth in the rules of the agency and in
 2159  policy manuals and handbooks incorporated by reference therein.
 2160  These methodologies may include fee schedules, reimbursement
 2161  methods based on cost reporting, negotiated fees, competitive
 2162  bidding pursuant to s. 287.057, and other mechanisms the agency
 2163  considers efficient and effective for purchasing services or
 2164  goods on behalf of recipients. If a provider is reimbursed based
 2165  on cost reporting and submits a cost report late and that cost
 2166  report would have been used to set a lower reimbursement rate
 2167  for a rate semester, then the provider’s rate for that semester
 2168  shall be retroactively calculated using the new cost report, and
 2169  full payment at the recalculated rate shall be effected
 2170  retroactively. Medicare-granted extensions for filing cost
 2171  reports, if applicable, shall also apply to Medicaid cost
 2172  reports. Payment for Medicaid compensable services made on
 2173  behalf of Medicaid eligible persons is subject to the
 2174  availability of moneys and any limitations or directions
 2175  provided for in the General Appropriations Act, or chapter 216,
 2176  or s. 409.9022. Further, nothing in This section does not shall
 2177  be construed to prevent or limit the agency from adjusting fees,
 2178  reimbursement rates, lengths of stay, number of visits, or
 2179  number of services, or making any other adjustments necessary to
 2180  comply with the availability of moneys and any limitations or
 2181  directions provided for in the General Appropriations Act if,
 2182  provided the adjustment is consistent with legislative intent.
 2183         (1) HOSPITAL SERVICES.Reimbursement to hospitals licensed
 2184  under part I of chapter 395 must be made prospectively or on the
 2185  basis of negotiation.
 2186         (a) Inpatient care.
 2187         1. Reimbursement for inpatient care is limited as provided
 2188  for in s. 409.905(5), except for:
 2189         a.1. The raising of rate reimbursement caps, excluding
 2190  rural hospitals.
 2191         b.2. Recognition of the costs of graduate medical
 2192  education.
 2193         c.3. Other methodologies recognized in the General
 2194  Appropriations Act.
 2195         2.If During the years funds are transferred from the
 2196  Department of Health, any reimbursement supported by such funds
 2197  is shall be subject to certification by the Department of Health
 2198  that the hospital has complied with s. 381.0403. The agency may
 2199  is authorized to receive funds from state entities, including,
 2200  but not limited to, the Department of Health, local governments,
 2201  and other local political subdivisions, for the purpose of
 2202  making special exception payments, including federal matching
 2203  funds, through the Medicaid inpatient reimbursement
 2204  methodologies. Funds received from state entities or local
 2205  governments for this purpose shall be separately accounted for
 2206  and may shall not be commingled with other state or local funds
 2207  in any manner. The agency may certify all local governmental
 2208  funds used as state match under Title XIX of the Social Security
 2209  Act, to the extent that the identified local health care
 2210  provider that is otherwise entitled to and is contracted to
 2211  receive such local funds is the benefactor under the state’s
 2212  Medicaid program as determined under the General Appropriations
 2213  Act and pursuant to an agreement between the agency for Health
 2214  Care Administration and the local governmental entity. The local
 2215  governmental entity shall use a certification form prescribed by
 2216  the agency. At a minimum, the certification form must shall
 2217  identify the amount being certified and describe the
 2218  relationship between the certifying local governmental entity
 2219  and the local health care provider. The agency shall prepare an
 2220  annual statement of impact which documents the specific
 2221  activities undertaken during the previous fiscal year pursuant
 2222  to this paragraph, to be submitted to the Legislature annually
 2223  by no later than January 1, annually.
 2224         (b) Outpatient care.
 2225         1. Reimbursement for hospital outpatient care is limited to
 2226  $1,500 per state fiscal year per recipient, except for:
 2227         a.1.Such Care provided to a Medicaid recipient under age
 2228  21, in which case the only limitation is medical necessity.
 2229         b.2. Renal dialysis services.
 2230         c.3. Other exceptions made by the agency.
 2231         2. The agency may is authorized to receive funds from state
 2232  entities, including, but not limited to, the Department of
 2233  Health, the Board of Governors of the State University System,
 2234  local governments, and other local political subdivisions, for
 2235  the purpose of making payments, including federal matching
 2236  funds, through the Medicaid outpatient reimbursement
 2237  methodologies. Funds received from state entities and local
 2238  governments for this purpose shall be separately accounted for
 2239  and may shall not be commingled with other state or local funds
 2240  in any manner.
 2241         3. The agency may limit inflationary increases for
 2242  outpatient hospital services as directed by the General
 2243  Appropriations Act.
 2244         (c) Disproportionate share.Hospitals that provide services
 2245  to a disproportionate share of low-income Medicaid recipients,
 2246  or that participate in the regional perinatal intensive care
 2247  center program under chapter 383, or that participate in the
 2248  statutory teaching hospital disproportionate share program may
 2249  receive additional reimbursement. The total amount of payment
 2250  for disproportionate share hospitals shall be fixed by the
 2251  General Appropriations Act. The computation of these payments
 2252  must comply be made in compliance with all federal regulations
 2253  and the methodologies described in ss. 409.911, 409.9112, and
 2254  409.9113.
 2255         (d) The agency is authorized to limit inflationary
 2256  increases for outpatient hospital services as directed by the
 2257  General Appropriations Act.
 2258         (2) NURSING HOME CARE.
 2259         (a)1. Reimbursement to nursing homes licensed under part II
 2260  of chapter 400 and state-owned-and-operated intermediate care
 2261  facilities for the developmentally disabled licensed under part
 2262  VIII of chapter 400 must be made prospectively.
 2263         (a)2. Unless otherwise limited or directed in the General
 2264  Appropriations Act, reimbursement to hospitals licensed under
 2265  part I of chapter 395 for the provision of swing-bed nursing
 2266  home services must be based made on the basis of the average
 2267  statewide nursing home payment, and reimbursement to a hospital
 2268  licensed under part I of chapter 395 for the provision of
 2269  skilled nursing services must be based made on the basis of the
 2270  average nursing home payment for those services in the county in
 2271  which the hospital is located. If When a hospital is located in
 2272  a county that does not have any community nursing homes,
 2273  reimbursement shall be determined by averaging the nursing home
 2274  payments in counties that surround the county in which the
 2275  hospital is located. Reimbursement to hospitals, including
 2276  Medicaid payment of Medicare copayments, for skilled nursing
 2277  services is shall be limited to 30 days, unless a prior
 2278  authorization has been obtained from the agency. Medicaid
 2279  reimbursement may be extended by the agency beyond 30 days, and
 2280  approval must be based upon verification by the patient’s
 2281  physician that the patient requires short-term rehabilitative
 2282  and recuperative services only, in which case an extension of no
 2283  more than 15 days may be approved. Reimbursement to a hospital
 2284  licensed under part I of chapter 395 for the temporary provision
 2285  of skilled nursing services to nursing home residents who have
 2286  been displaced as the result of a natural disaster or other
 2287  emergency may not exceed the average county nursing home payment
 2288  for those services in the county in which the hospital is
 2289  located and is limited to the period of time which the agency
 2290  considers necessary for continued placement of the nursing home
 2291  residents in the hospital.
 2292         (b) Subject to any limitations or directions provided for
 2293  in the General Appropriations Act, the agency shall establish
 2294  and implement a Florida Title XIX Long-Term Care Reimbursement
 2295  Plan (Medicaid) for nursing home care in order to provide care
 2296  and services that conform to in conformance with the applicable
 2297  state and federal laws, rules, regulations, and quality and
 2298  safety standards and to ensure that individuals eligible for
 2299  medical assistance have reasonable geographic access to such
 2300  care.
 2301         1. The agency shall amend the long-term care reimbursement
 2302  plan and cost reporting system to create direct care and
 2303  indirect care subcomponents of the patient care component of the
 2304  per diem rate. These two subcomponents together must shall equal
 2305  the patient care component of the per diem rate. Separate cost
 2306  based ceilings shall be calculated for each patient care
 2307  subcomponent. The direct care subcomponent of the per diem rate
 2308  is shall be limited by the cost-based class ceiling, and the
 2309  indirect care subcomponent may be limited by the lower of the
 2310  cost-based class ceiling, the target rate class ceiling, or the
 2311  individual provider target.
 2312         2. The direct care subcomponent includes shall include
 2313  salaries and benefits of direct care staff providing nursing
 2314  services, including registered nurses, licensed practical
 2315  nurses, and certified nursing assistants who deliver care
 2316  directly to residents in the nursing home facility. This
 2317  excludes nursing administration, minimum data set, and care plan
 2318  coordinators, staff development, and the staffing coordinator.
 2319  The direct care subcomponent also includes medically necessary
 2320  dental care, vision care, hearing care, and podiatric care.
 2321         3. All other patient care costs are shall be included in
 2322  the indirect care cost subcomponent of the patient care per diem
 2323  rate. There shall be no Costs may not be directly or indirectly
 2324  allocated to the direct care subcomponent from a home office or
 2325  management company.
 2326         4. On July 1 of each year, the agency shall report to the
 2327  Legislature direct and indirect care costs, including average
 2328  direct and indirect care costs per resident per facility and
 2329  direct care and indirect care salaries and benefits per category
 2330  of staff member per facility.
 2331         5. In order to offset the cost of general and professional
 2332  liability insurance, the agency shall amend the plan to allow
 2333  for interim rate adjustments to reflect increases in the cost of
 2334  general or professional liability insurance for nursing homes.
 2335  This provision shall be implemented to the extent existing
 2336  appropriations are available.
 2337  
 2338  It is the intent of the Legislature that the reimbursement plan
 2339  achieve the goal of providing access to health care for nursing
 2340  home residents who require large amounts of care while
 2341  encouraging diversion services as an alternative to nursing home
 2342  care for residents who can be served within the community. The
 2343  agency shall base the establishment of any maximum rate of
 2344  payment, whether overall or component, on the available moneys
 2345  as provided for in the General Appropriations Act. The agency
 2346  may base the maximum rate of payment on the results of
 2347  scientifically valid analysis and conclusions derived from
 2348  objective statistical data pertinent to the particular maximum
 2349  rate of payment.
 2350         (c) The agency shall request and implement Medicaid waivers
 2351  approved by the federal Centers for Medicare and Medicaid
 2352  Services to advance and treat a portion of the Medicaid nursing
 2353  home per diem as capital for creating and operating a risk
 2354  retention group for self-insurance purposes, consistent with
 2355  federal and state laws and rules.
 2356         (3) FEE-FOR-SERVICE REIMBURSEMENT.Subject to any
 2357  limitations or directions provided for in the General
 2358  Appropriations Act, the following Medicaid services and goods
 2359  may be reimbursed on a fee-for-service basis. For each allowable
 2360  service or goods furnished in accordance with Medicaid rules,
 2361  policy manuals, handbooks, and state and federal law, the
 2362  payment shall be the amount billed by the provider, the
 2363  provider’s usual and customary charge, or the maximum allowable
 2364  fee established by the agency, whichever amount is less, with
 2365  the exception of those services or goods for which the agency
 2366  makes payment using a methodology based on capitation rates,
 2367  average costs, or negotiated fees.
 2368         (a) Advanced registered nurse practitioner services.
 2369         (b) Birth center services.
 2370         (c) Chiropractic services.
 2371         (d) Community mental health services.
 2372         (e) Dental services, including oral and maxillofacial
 2373  surgery.
 2374         (f) Durable medical equipment.
 2375         (g) Hearing services.
 2376         (h) Occupational therapy for Medicaid recipients under age
 2377  21.
 2378         (i) Optometric services.
 2379         (j) Orthodontic services.
 2380         (k) Personal care for Medicaid recipients under age 21.
 2381         (l) Physical therapy for Medicaid recipients under age 21.
 2382         (m) Physician assistant services.
 2383         (n) Podiatric services.
 2384         (o) Portable X-ray services.
 2385         (p) Private-duty nursing for Medicaid recipients under age
 2386  21.
 2387         (q) Registered nurse first assistant services.
 2388         (r) Respiratory therapy for Medicaid recipients under age
 2389  21.
 2390         (s) Speech therapy for Medicaid recipients under age 21.
 2391         (t) Visual services.
 2392         (4) MANAGED CARE SERVICES.Subject to any limitations or
 2393  directions provided for in the General Appropriations Act,
 2394  alternative health plans, health maintenance organizations, and
 2395  prepaid health plans shall be reimbursed a fixed, prepaid amount
 2396  negotiated, or competitively bid pursuant to s. 287.057, by the
 2397  agency and prospectively paid to the provider monthly for each
 2398  Medicaid recipient enrolled. The amount may not exceed the
 2399  average amount the agency determines it would have paid, based
 2400  on claims experience, for recipients in the same or similar
 2401  category of eligibility. The agency shall calculate capitation
 2402  rates on a regional basis and, beginning September 1, 1995,
 2403  shall include age-band differentials in such calculations.
 2404         (5) AMBULATORY SURGICAL CENTERS.An ambulatory surgical
 2405  center shall be reimbursed the lesser of the amount billed by
 2406  the provider or the Medicare-established allowable amount for
 2407  the facility.
 2408         (6) EPSDT SERVICES.A provider of early and periodic
 2409  screening, diagnosis, and treatment services to Medicaid
 2410  recipients who are children under age 21 shall be reimbursed
 2411  using an all-inclusive rate stipulated in a fee schedule
 2412  established by the agency. A provider of the visual, dental, and
 2413  hearing components of such services shall be reimbursed the
 2414  lesser of the amount billed by the provider or the Medicaid
 2415  maximum allowable fee established by the agency.
 2416         (7) FAMILY PLANNING SERVICES.A provider of family planning
 2417  services shall be reimbursed the lesser of the amount billed by
 2418  the provider or an all-inclusive amount per type of visit for
 2419  physicians and advanced registered nurse practitioners, as
 2420  established by the agency in a fee schedule.
 2421         (8) HOME OR COMMUNITY-BASED SERVICES.A provider of home
 2422  based or community-based services rendered pursuant to a
 2423  federally approved waiver shall be reimbursed based on an
 2424  established or negotiated rate for each service. These rates
 2425  shall be established according to an analysis of the expenditure
 2426  history and prospective budget developed by each contract
 2427  provider participating in the waiver program, or under any other
 2428  methodology adopted by the agency and approved by the Federal
 2429  Government in accordance with the waiver. Privately owned and
 2430  operated community-based residential facilities that which meet
 2431  agency requirements and which formerly received Medicaid
 2432  reimbursement for the optional intermediate care facility for
 2433  the mentally retarded service may participate in the
 2434  developmental services waiver as part of a home-and-community
 2435  based continuum of care for Medicaid recipients who receive
 2436  waiver services.
 2437         (9) HOME HEALTH SERVICES AND MEDICAL SUPPLIES.A provider
 2438  of home health care services or of medical supplies and
 2439  appliances shall be reimbursed on the basis of competitive
 2440  bidding or for the lesser of the amount billed by the provider
 2441  or the agency’s established maximum allowable amount, except
 2442  that, in the case of the rental of durable medical equipment,
 2443  the total rental payments for durable medical equipment may not
 2444  exceed the purchase price of the equipment over its expected
 2445  useful life or the agency’s established maximum allowable
 2446  amount, whichever amount is less.
 2447         (10) HOSPICE.A hospice shall be reimbursed through a
 2448  prospective system for each Medicaid hospice patient at Medicaid
 2449  rates using the methodology established for hospice
 2450  reimbursement pursuant to Title XVIII of the federal Social
 2451  Security Act.
 2452         (11) LABORATORY SERVICES.A provider of independent
 2453  laboratory services shall be reimbursed on the basis of
 2454  competitive bidding or for the least of the amount billed by the
 2455  provider, the provider’s usual and customary charge, or the
 2456  Medicaid maximum allowable fee established by the agency.
 2457         (12) PHYSICIAN SERVICES.
 2458         (a) A physician shall be reimbursed the lesser of the
 2459  amount billed by the provider or the Medicaid maximum allowable
 2460  fee established by the agency.
 2461         (b) The agency shall adopt a fee schedule, subject to any
 2462  limitations or directions provided for in the General
 2463  Appropriations Act, based on a resource-based relative value
 2464  scale for pricing Medicaid physician services. Under the this
 2465  fee schedule, physicians shall be paid a dollar amount for each
 2466  service based on the average resources required to provide the
 2467  service, including, but not limited to, estimates of average
 2468  physician time and effort, practice expense, and the costs of
 2469  professional liability insurance. The fee schedule must shall
 2470  provide increased reimbursement for preventive and primary care
 2471  services and lowered reimbursement for specialty services by
 2472  using at least two conversion factors, one for cognitive
 2473  services and another for procedural services. The fee schedule
 2474  may shall not increase total Medicaid physician expenditures
 2475  unless moneys are available. The agency for Health Care
 2476  Administration shall seek the advice of a 16-member advisory
 2477  panel in formulating and adopting the fee schedule. The panel
 2478  shall consist of Medicaid physicians licensed under chapters 458
 2479  and 459 and shall be composed of 50 percent primary care
 2480  physicians and 50 percent specialty care physicians.
 2481         (c) Notwithstanding paragraph (b), reimbursement fees to
 2482  physicians for providing total obstetrical services to Medicaid
 2483  recipients, which include prenatal, delivery, and postpartum
 2484  care, must shall be at least $1,500 per delivery for a pregnant
 2485  woman with low medical risk and at least $2,000 per delivery for
 2486  a pregnant woman with high medical risk. However, reimbursement
 2487  to physicians working in regional perinatal intensive care
 2488  centers designated pursuant to chapter 383, for services to
 2489  certain pregnant Medicaid recipients with a high medical risk,
 2490  may be made according to obstetrical care and neonatal care
 2491  groupings and rates established by the agency. Nurse midwives
 2492  licensed under part I of chapter 464 or midwives licensed under
 2493  chapter 467 shall be reimbursed at least no less than 80 percent
 2494  of the low medical risk fee. The agency shall by rule determine,
 2495  for the purpose of this paragraph, what constitutes a high or
 2496  low medical risk pregnant woman and may shall not pay more based
 2497  solely on the fact that a caesarean section was performed,
 2498  rather than a vaginal delivery. The agency shall by rule
 2499  determine a prorated payment for obstetrical services in cases
 2500  where only part of the total prenatal, delivery, or postpartum
 2501  care was performed. The Department of Health shall adopt rules
 2502  for appropriate insurance coverage for midwives licensed under
 2503  chapter 467. Before issuing and renewing Prior to the issuance
 2504  and renewal of an active license, or reactivating reactivation
 2505  of an inactive license for midwives licensed under chapter 467,
 2506  such licensees must shall submit proof of coverage with each
 2507  application.
 2508         (d) Effective January 1, 2013, Medicaid fee-for-service
 2509  payments to primary care physicians for primary care services
 2510  must be at least 100 percent of the Medicare payment rate for
 2511  such services.
 2512         (13) DUALLY ELIGIBLE RECIPIENTS.Medicare premiums for
 2513  persons eligible for both Medicare and Medicaid coverage shall
 2514  be paid at the rates established by Title XVIII of the Social
 2515  Security Act. For Medicare services rendered to Medicaid
 2516  eligible persons, Medicaid shall pay Medicare deductibles and
 2517  coinsurance as follows:
 2518         (a) Medicaid’s financial obligation for deductibles and
 2519  coinsurance payments shall be based on Medicare allowable fees,
 2520  not on a provider’s billed charges.
 2521         (b) Medicaid may not will pay any no portion of Medicare
 2522  deductibles and coinsurance if when payment that Medicare has
 2523  made for the service equals or exceeds what Medicaid would have
 2524  paid if it had been the sole payor. The combined payment of
 2525  Medicare and Medicaid may shall not exceed the amount Medicaid
 2526  would have paid had it been the sole payor. The Legislature
 2527  finds that there has been confusion regarding the reimbursement
 2528  for services rendered to dually eligible Medicare beneficiaries.
 2529  Accordingly, the Legislature clarifies that it has always been
 2530  the intent of the Legislature before and after 1991 that, in
 2531  reimbursing in accordance with fees established by Title XVIII
 2532  for premiums, deductibles, and coinsurance for Medicare services
 2533  rendered by physicians to Medicaid eligible persons, physicians
 2534  be reimbursed at the lesser of the amount billed by the
 2535  physician or the Medicaid maximum allowable fee established by
 2536  the agency for Health Care Administration, as is permitted by
 2537  federal law. It has never been the intent of the Legislature
 2538  with regard to such services rendered by physicians that
 2539  Medicaid be required to provide any payment for deductibles,
 2540  coinsurance, or copayments for Medicare cost sharing, or any
 2541  expenses incurred relating thereto, in excess of the payment
 2542  amount provided for under the State Medicaid plan for physician
 2543  services such service. This payment methodology is applicable
 2544  even in those situations in which the payment for Medicare cost
 2545  sharing for a qualified Medicare beneficiary with respect to an
 2546  item or service is reduced or eliminated. This expression of the
 2547  Legislature clarifies is in clarification of existing law and
 2548  applies shall apply to payment for, and with respect to provider
 2549  agreements with respect to, items or services furnished on or
 2550  after July 1, 2000 the effective date of this act. This
 2551  paragraph applies to payment by Medicaid for items and services
 2552  furnished before July 1, 2000, the effective date of this act if
 2553  such payment is the subject of a lawsuit that is based on the
 2554  provisions of this section, and that is pending as of, or is
 2555  initiated after that date, the effective date of this act.
 2556         (c) Notwithstanding paragraphs (a) and (b):
 2557         1. Medicaid payments for Nursing Home Medicare part A
 2558  coinsurance are limited to the Medicaid nursing home per diem
 2559  rate less any amounts paid by Medicare, but only up to the
 2560  amount of Medicare coinsurance. The Medicaid per diem rate is
 2561  shall be the rate in effect for the dates of service of the
 2562  crossover claims and may not be subsequently adjusted due to
 2563  subsequent per diem rate adjustments.
 2564         2. Medicaid shall pay all deductibles and coinsurance for
 2565  Medicare-eligible recipients receiving freestanding end stage
 2566  renal dialysis center services.
 2567         3. Medicaid payments for general and specialty hospital
 2568  inpatient services are limited to the Medicare deductible and
 2569  coinsurance per spell of illness. Medicaid payments for hospital
 2570  Medicare Part A coinsurance are shall be limited to the Medicaid
 2571  hospital per diem rate less any amounts paid by Medicare, but
 2572  only up to the amount of Medicare coinsurance. Medicaid payments
 2573  for coinsurance are shall be limited to the Medicaid per diem
 2574  rate in effect for the dates of service of the crossover claims
 2575  and may not be subsequently adjusted due to subsequent per diem
 2576  adjustments.
 2577         4. Medicaid shall pay all deductibles and coinsurance for
 2578  Medicare emergency transportation services provided by
 2579  ambulances licensed pursuant to chapter 401.
 2580         5. Medicaid shall pay all deductibles and coinsurance for
 2581  portable X-ray Medicare Part B services provided in a nursing
 2582  home.
 2583         (14) PRESCRIBED DRUGS.A provider of prescribed drugs shall
 2584  be reimbursed the least of the amount billed by the provider,
 2585  the provider’s usual and customary charge, or the Medicaid
 2586  maximum allowable fee established by the agency, plus a
 2587  dispensing fee. The Medicaid maximum allowable fee for
 2588  ingredient cost must will be based on the lower of the: average
 2589  wholesale price (AWP) minus 16.4 percent, wholesaler acquisition
 2590  cost (WAC) plus 4.75 percent, the federal upper limit (FUL), the
 2591  state maximum allowable cost (SMAC), or the usual and customary
 2592  (UAC) charge billed by the provider.
 2593         (a) Medicaid providers must are required to dispense
 2594  generic drugs if available at lower cost and the agency has not
 2595  determined that the branded product is more cost-effective,
 2596  unless the prescriber has requested and received approval to
 2597  require the branded product.
 2598         (b) The agency shall is directed to implement a variable
 2599  dispensing fee for payments for prescribed medicines while
 2600  ensuring continued access for Medicaid recipients. The variable
 2601  dispensing fee may be based upon, but not limited to, either or
 2602  both the volume of prescriptions dispensed by a specific
 2603  pharmacy provider, the volume of prescriptions dispensed to an
 2604  individual recipient, and dispensing of preferred-drug-list
 2605  products.
 2606         (c) The agency may increase the pharmacy dispensing fee
 2607  authorized by statute and in the annual General Appropriations
 2608  Act by $0.50 for the dispensing of a Medicaid preferred-drug
 2609  list product and reduce the pharmacy dispensing fee by $0.50 for
 2610  the dispensing of a Medicaid product that is not included on the
 2611  preferred drug list.
 2612         (d) The agency may establish a supplemental pharmaceutical
 2613  dispensing fee to be paid to providers returning unused unit
 2614  dose packaged medications to stock and crediting the Medicaid
 2615  program for the ingredient cost of those medications if the
 2616  ingredient costs to be credited exceed the value of the
 2617  supplemental dispensing fee.
 2618         (e) The agency may is authorized to limit reimbursement for
 2619  prescribed medicine in order to comply with any limitations or
 2620  directions provided for in the General Appropriations Act, which
 2621  may include implementing a prospective or concurrent utilization
 2622  review program.
 2623         (15) PRIMARY CARE CASE MANAGEMENT.A provider of primary
 2624  care case management services rendered pursuant to a federally
 2625  approved waiver shall be reimbursed by payment of a fixed,
 2626  prepaid monthly sum for each Medicaid recipient enrolled with
 2627  the provider.
 2628         (16) RURAL HEALTH CLINICS.A provider of rural health
 2629  clinic services and federally qualified health center services
 2630  shall be reimbursed a rate per visit based on total reasonable
 2631  costs of the clinic, as determined by the agency in accordance
 2632  with federal regulations.
 2633         (17) TARGETED CASE MANAGEMENT.A provider of targeted case
 2634  management services shall be reimbursed pursuant to an
 2635  established fee, except where the Federal Government requires a
 2636  public provider be reimbursed on the basis of average actual
 2637  costs.
 2638         (18) TRANSPORTATION.Unless otherwise provided for in the
 2639  General Appropriations Act, a provider of transportation
 2640  services shall be reimbursed the lesser of the amount billed by
 2641  the provider or the Medicaid maximum allowable fee established
 2642  by the agency, except if when the agency has entered into a
 2643  direct contract with the provider, or with a community
 2644  transportation coordinator, for the provision of an all
 2645  inclusive service, or if when services are provided pursuant to
 2646  an agreement negotiated between the agency and the provider. The
 2647  agency, as provided for in s. 427.0135, shall purchase
 2648  transportation services through the community coordinated
 2649  transportation system, if available, unless the agency, after
 2650  consultation with the commission, determines that it cannot
 2651  reach mutually acceptable contract terms with the commission.
 2652  The agency may then contract for the same transportation
 2653  services provided in a more cost-effective manner and of
 2654  comparable or higher quality and standards. Nothing in
 2655         (a) This subsection does not shall be construed to limit or
 2656  preclude the agency from contracting for services using a
 2657  prepaid capitation rate or from establishing maximum fee
 2658  schedules, individualized reimbursement policies by provider
 2659  type, negotiated fees, prior authorization, competitive bidding,
 2660  increased use of mass transit, or any other mechanism that the
 2661  agency considers efficient and effective for the purchase of
 2662  services on behalf of Medicaid clients, including implementing a
 2663  transportation eligibility process.
 2664         (b) The agency may shall not be required to contract with
 2665  any community transportation coordinator or transportation
 2666  operator that has been determined by the agency, the Department
 2667  of Legal Affairs Medicaid Fraud Control Unit, or any other state
 2668  or federal agency to have engaged in any abusive or fraudulent
 2669  billing activities.
 2670         (c) The agency shall is authorized to competitively procure
 2671  transportation services or make other changes necessary to
 2672  secure approval of federal waivers needed to permit federal
 2673  financing of Medicaid transportation services at the service
 2674  matching rate rather than the administrative matching rate.
 2675  Notwithstanding chapter 427, the agency is authorized to
 2676  continue contracting for Medicaid nonemergency transportation
 2677  services in agency service area 11 with managed care plans that
 2678  were under contract for those services before July 1, 2004.
 2679         (d) Transportation to access covered services provided by a
 2680  qualified plan pursuant to part IV of this chapter shall be
 2681  contracted for by the plan. A qualified plan is not required to
 2682  purchase such services through a coordinated transportation
 2683  system established pursuant to part I of chapter 427.
 2684         (19) COUNTY HEALTH DEPARTMENTS.County health department
 2685  services shall be reimbursed a rate per visit based on total
 2686  reasonable costs of the clinic, as determined by the agency in
 2687  accordance with federal regulations under the authority of 42
 2688  C.F.R. s. 431.615.
 2689         (20) DIALYSIS.A renal dialysis facility that provides
 2690  dialysis services under s. 409.906(9) must be reimbursed the
 2691  lesser of the amount billed by the provider, the provider’s
 2692  usual and customary charge, or the maximum allowable fee
 2693  established by the agency, whichever amount is less.
 2694         (21) SCHOOL-BASED SERVICES.The agency shall reimburse
 2695  school districts that which certify the state match pursuant to
 2696  ss. 409.9071 and 1011.70 for the federal portion of the school
 2697  district’s allowable costs to deliver the services, based on the
 2698  reimbursement schedule. The school district shall determine the
 2699  costs for delivering services as authorized in ss. 409.9071 and
 2700  1011.70 for which the state match will be certified.
 2701  Reimbursement of school-based providers is contingent on such
 2702  providers being enrolled as Medicaid providers and meeting the
 2703  qualifications contained in 42 C.F.R. s. 440.110, unless
 2704  otherwise waived by the federal Centers for Medicare and
 2705  Medicaid Services Health Care Financing Administration. Speech
 2706  therapy providers who are certified through the Department of
 2707  Education pursuant to rule 6A-4.0176, Florida Administrative
 2708  Code, are eligible for reimbursement for services that are
 2709  provided on school premises. Any employee of the school district
 2710  who has been fingerprinted and has received a criminal
 2711  background check in accordance with Department of Education
 2712  rules and guidelines is shall be exempt from any agency
 2713  requirements relating to criminal background checks.
 2714         (22) The agency shall request and implement Medicaid
 2715  waivers from the federal Health Care Financing Administration to
 2716  advance and treat a portion of the Medicaid nursing home per
 2717  diem as capital for creating and operating a risk-retention
 2718  group for self-insurance purposes, consistent with federal and
 2719  state laws and rules.
 2720         (22)(23)(a)LIMITATION ON REIMBURSEMENT RATES.The agency
 2721  shall establish rates at a level that ensures no increase in
 2722  statewide expenditures resulting from a change in unit costs for
 2723  2 fiscal years effective July 1, 2009. Reimbursement rates for
 2724  the 2 fiscal years shall be as provided in the General
 2725  Appropriations Act.
 2726         (a)(b) This subsection applies to the following provider
 2727  types:
 2728         1. Inpatient hospitals.
 2729         2. Outpatient hospitals.
 2730         3. Nursing homes.
 2731         4. County health departments.
 2732         5. Community intermediate care facilities for the
 2733  developmentally disabled.
 2734         6. Prepaid health plans.
 2735         (b) The agency shall apply the effect of this subsection to
 2736  the reimbursement rates for nursing home diversion programs.
 2737         (c) The agency shall create a workgroup on hospital
 2738  reimbursement, a workgroup on nursing facility reimbursement,
 2739  and a workgroup on managed care plan payment. The workgroups
 2740  shall evaluate alternative reimbursement and payment
 2741  methodologies for hospitals, nursing facilities, and managed
 2742  care plans, including prospective payment methodologies for
 2743  hospitals and nursing facilities. The nursing facility workgroup
 2744  shall also consider price-based methodologies for indirect care
 2745  and acuity adjustments for direct care. The agency shall submit
 2746  a report on the evaluated alternative reimbursement
 2747  methodologies to the relevant committees of the Senate and the
 2748  House of Representatives by November 1, 2009.
 2749         (c)(d) This subsection expires June 30, 2011.
 2750         (23) PAYMENT METHODOLOGIES.If a provider is reimbursed
 2751  based on cost reporting and submits a cost report late and that
 2752  cost report would have been used to set a lower reimbursement
 2753  rate for a rate semester, the provider’s rate for that semester
 2754  shall be retroactively calculated using the new cost report, and
 2755  full payment at the recalculated rate shall be applied
 2756  retroactively. Medicare-granted extensions for filing cost
 2757  reports, if applicable, also apply to Medicaid cost reports.
 2758         (24) RETURN OF PAYMENTS.If a provider fails to notify the
 2759  agency within 5 business days after suspension or disenrollment
 2760  from Medicare, sanctions may be imposed pursuant to this
 2761  chapter, and the provider may be required to return funds paid
 2762  to the provider during the period of time that the provider was
 2763  suspended or disenrolled as a Medicare provider.
 2764         Section 28. Subsection (1) of section 409.9081, Florida
 2765  Statutes, is amended to read:
 2766         409.9081 Copayments.—
 2767         (1) The agency shall require, Subject to federal
 2768  regulations and limitations, each Medicaid recipient must to pay
 2769  at the time of service a nominal copayment for the following
 2770  Medicaid services:
 2771         (a) Hospital outpatient services: up to $3 for each
 2772  hospital outpatient visit.
 2773         (b) Physician services: up to $2 copayment for each visit
 2774  with a primary care physician and up to $3 copayment for each
 2775  visit with a specialty care physician licensed under chapter
 2776  458, chapter 459, chapter 460, chapter 461, or chapter 463.
 2777         (c) Hospital emergency department visits for nonemergency
 2778  care: 5 percent of up to the first $300 of the Medicaid payment
 2779  for emergency room services, not to exceed $15. The agency shall
 2780  seek a federal waiver of the requirement that cost-sharing
 2781  amounts for nonemergency services and care furnished in a
 2782  hospital emergency department be nominal. Upon waiver approval,
 2783  a Medicaid recipient who requests such services and care, must
 2784  pay a $100 copayment to the hospital for the nonemergency
 2785  services and care provided in the hospital emergency department.
 2786         (d) Prescription drugs: a coinsurance equal to 2.5 percent
 2787  of the Medicaid cost of the prescription drug at the time of
 2788  purchase. The maximum coinsurance is shall be $7.50 per
 2789  prescription drug purchased.
 2790         Section 29. Paragraphs (b) and (d) of subsection (4) and
 2791  subsections (8), (34), (44), (47), and (53) of section 409.912,
 2792  Florida Statutes, are amended, and subsections (48) through (52)
 2793  of that section are renumbered as subsections (47) through (51)
 2794  respectively, to read:
 2795         409.912 Cost-effective purchasing of health care.—The
 2796  agency shall purchase goods and services for Medicaid recipients
 2797  in the most cost-effective manner consistent with the delivery
 2798  of quality medical care. To ensure that medical services are
 2799  effectively utilized, the agency may, in any case, require a
 2800  confirmation or second physician’s opinion of the correct
 2801  diagnosis for purposes of authorizing future services under the
 2802  Medicaid program. This section does not restrict access to
 2803  emergency services or poststabilization care services as defined
 2804  in 42 C.F.R. part 438.114. Such confirmation or second opinion
 2805  shall be rendered in a manner approved by the agency. The agency
 2806  shall maximize the use of prepaid per capita and prepaid
 2807  aggregate fixed-sum basis services when appropriate and other
 2808  alternative service delivery and reimbursement methodologies,
 2809  including competitive bidding pursuant to s. 287.057, designed
 2810  to facilitate the cost-effective purchase of a case-managed
 2811  continuum of care. The agency shall also require providers to
 2812  minimize the exposure of recipients to the need for acute
 2813  inpatient, custodial, and other institutional care and the
 2814  inappropriate or unnecessary use of high-cost services. The
 2815  agency shall contract with a vendor to monitor and evaluate the
 2816  clinical practice patterns of providers in order to identify
 2817  trends that are outside the normal practice patterns of a
 2818  provider’s professional peers or the national guidelines of a
 2819  provider’s professional association. The vendor must be able to
 2820  provide information and counseling to a provider whose practice
 2821  patterns are outside the norms, in consultation with the agency,
 2822  to improve patient care and reduce inappropriate utilization.
 2823  The agency may mandate prior authorization, drug therapy
 2824  management, or disease management participation for certain
 2825  populations of Medicaid beneficiaries, certain drug classes, or
 2826  particular drugs to prevent fraud, abuse, overuse, and possible
 2827  dangerous drug interactions. The Pharmaceutical and Therapeutics
 2828  Committee shall make recommendations to the agency on drugs for
 2829  which prior authorization is required. The agency shall inform
 2830  the Pharmaceutical and Therapeutics Committee of its decisions
 2831  regarding drugs subject to prior authorization. The agency is
 2832  authorized to limit the entities it contracts with or enrolls as
 2833  Medicaid providers by developing a provider network through
 2834  provider credentialing. The agency may competitively bid single
 2835  source-provider contracts if procurement of goods or services
 2836  results in demonstrated cost savings to the state without
 2837  limiting access to care. The agency may limit its network based
 2838  on the assessment of beneficiary access to care, provider
 2839  availability, provider quality standards, time and distance
 2840  standards for access to care, the cultural competence of the
 2841  provider network, demographic characteristics of Medicaid
 2842  beneficiaries, practice and provider-to-beneficiary standards,
 2843  appointment wait times, beneficiary use of services, provider
 2844  turnover, provider profiling, provider licensure history,
 2845  previous program integrity investigations and findings, peer
 2846  review, provider Medicaid policy and billing compliance records,
 2847  clinical and medical record audits, and other factors. Providers
 2848  shall not be entitled to enrollment in the Medicaid provider
 2849  network. The agency shall determine instances in which allowing
 2850  Medicaid beneficiaries to purchase durable medical equipment and
 2851  other goods is less expensive to the Medicaid program than long
 2852  term rental of the equipment or goods. The agency may establish
 2853  rules to facilitate purchases in lieu of long-term rentals in
 2854  order to protect against fraud and abuse in the Medicaid program
 2855  as defined in s. 409.913. The agency may seek federal waivers
 2856  necessary to administer these policies.
 2857         (4) The agency may contract with:
 2858         (b) An entity that is providing comprehensive behavioral
 2859  health care services to certain Medicaid recipients through a
 2860  capitated, prepaid arrangement pursuant to the federal waiver
 2861  authorized under s. 409.905(5)(b) provided for by s. 409.905(5).
 2862  Such entity must be licensed under chapter 624, chapter 636, or
 2863  chapter 641, or authorized under paragraph (c) or paragraph (d),
 2864  and must possess the clinical systems and operational competence
 2865  to manage risk and provide comprehensive behavioral health care
 2866  to Medicaid recipients. As used in this paragraph, the term
 2867  “comprehensive behavioral health care services” means covered
 2868  mental health and substance abuse treatment services that are
 2869  available to Medicaid recipients. The Secretary of the
 2870  Department of Children and Family Services must shall approve
 2871  provisions of procurements related to children in the
 2872  department’s care or custody before enrolling such children in a
 2873  prepaid behavioral health plan. Any contract awarded under this
 2874  paragraph must be competitively procured. In developing The
 2875  behavioral health care prepaid plan procurement document must
 2876  require, the agency shall ensure that the procurement document
 2877  requires the contractor to develop and implement a plan to
 2878  ensure compliance with s. 394.4574 related to services provided
 2879  to residents of licensed assisted living facilities that hold a
 2880  limited mental health license. Except as provided in
 2881  subparagraph 5. 8., and except in counties where the Medicaid
 2882  managed care pilot program is authorized pursuant to s. 409.986
 2883  409.91211, the agency shall seek federal approval to contract
 2884  with a single entity meeting these requirements to provide
 2885  comprehensive behavioral health care services to all Medicaid
 2886  recipients not enrolled in a Medicaid managed care plan
 2887  authorized under s. 409.986 409.91211, a provider service
 2888  network authorized under paragraph (d), or a Medicaid health
 2889  maintenance organization in an AHCA area. In an AHCA area where
 2890  the Medicaid managed care pilot program is authorized pursuant
 2891  to s. 409.986 409.91211 in one or more counties, the agency may
 2892  procure a contract with a single entity to serve the remaining
 2893  counties as an AHCA area or the remaining counties may be
 2894  included with an adjacent AHCA area and are subject to this
 2895  paragraph. Each entity must offer a sufficient choice of
 2896  providers in its network to ensure recipient access to care and
 2897  the opportunity to select a provider with whom they are
 2898  satisfied. The network shall include all public mental health
 2899  hospitals. To ensure unimpaired access to behavioral health care
 2900  services by Medicaid recipients, all contracts issued pursuant
 2901  to this paragraph must require that 90 80 percent of the
 2902  capitation paid to the managed care plan, including health
 2903  maintenance organizations and capitated provider service
 2904  networks, to be expended for the provision of behavioral health
 2905  care services. If the managed care plan expends less than 90 80
 2906  percent of the capitation paid for the provision of behavioral
 2907  health care services, the difference shall be returned to the
 2908  agency. The agency shall provide the plan with a certification
 2909  letter indicating the amount of capitation paid during each
 2910  calendar year for behavioral health care services pursuant to
 2911  this section. The agency may reimburse for substance abuse
 2912  treatment services on a fee-for-service basis until the agency
 2913  finds that adequate funds are available for capitated, prepaid
 2914  arrangements.
 2915         1. By January 1, 2001, The agency shall modify the
 2916  contracts with the entities providing comprehensive inpatient
 2917  and outpatient mental health care services to Medicaid
 2918  recipients in Hillsborough, Highlands, Hardee, Manatee, and Polk
 2919  Counties, to include substance abuse treatment services.
 2920         2. By July 1, 2003, the agency and the Department of
 2921  Children and Family Services shall execute a written agreement
 2922  that requires collaboration and joint development of all policy,
 2923  budgets, procurement documents, contracts, and monitoring plans
 2924  that have an impact on the state and Medicaid community mental
 2925  health and targeted case management programs.
 2926         2.3. Except as provided in subparagraph 5. 8., by July 1,
 2927  2006, the agency and the Department of Children and Family
 2928  Services shall contract with managed care entities in each AHCA
 2929  area except area 6 or arrange to provide comprehensive inpatient
 2930  and outpatient mental health and substance abuse services
 2931  through capitated prepaid arrangements to all Medicaid
 2932  recipients who are eligible to participate in such plans under
 2933  federal law and regulation. In AHCA areas where there are fewer
 2934  than 150,000 eligible individuals number less than 150,000, the
 2935  agency shall contract with a single managed care plan to provide
 2936  comprehensive behavioral health services to all recipients who
 2937  are not enrolled in a Medicaid health maintenance organization,
 2938  a provider service network authorized under paragraph (d), or a
 2939  Medicaid capitated managed care plan authorized under s. 409.986
 2940  409.91211. The agency may contract with more than one
 2941  comprehensive behavioral health provider to provide care to
 2942  recipients who are not enrolled in a Medicaid capitated managed
 2943  care plan authorized under s. 409.986 409.91211, a provider
 2944  service network authorized under paragraph (d), or a Medicaid
 2945  health maintenance organization in AHCA areas where the eligible
 2946  population exceeds 150,000. In an AHCA area where the Medicaid
 2947  managed care pilot program is authorized pursuant to s. 409.986
 2948  409.91211 in one or more counties, the agency may procure a
 2949  contract with a single entity to serve the remaining counties as
 2950  an AHCA area or the remaining counties may be included with an
 2951  adjacent AHCA area and shall be subject to this paragraph.
 2952  Contracts for comprehensive behavioral health providers awarded
 2953  pursuant to this section must shall be competitively procured.
 2954  Both for-profit and not-for-profit corporations are eligible to
 2955  compete. Managed care plans contracting with the agency under
 2956  subsection (3) or paragraph (d), shall provide and receive
 2957  payment for the same comprehensive behavioral health benefits as
 2958  provided in AHCA rules, including handbooks incorporated by
 2959  reference. In AHCA area 11, the agency shall contract with at
 2960  least two comprehensive behavioral health care providers to
 2961  provide behavioral health care to recipients in that area who
 2962  are enrolled in, or assigned to, the MediPass program. One of
 2963  the behavioral health care contracts must be with the existing
 2964  provider service network pilot project, as described in
 2965  paragraph (d), for the purpose of demonstrating the cost
 2966  effectiveness of the provision of quality mental health services
 2967  through a public hospital-operated managed care model. Payment
 2968  shall be at an agreed-upon capitated rate to ensure cost
 2969  savings. Of the recipients in area 11 who are assigned to
 2970  MediPass under s. 409.9122(2)(k), a minimum of 50,000 of those
 2971  MediPass-enrolled recipients shall be assigned to the existing
 2972  provider service network in area 11 for their behavioral care.
 2973         4. By October 1, 2003, the agency and the department shall
 2974  submit a plan to the Governor, the President of the Senate, and
 2975  the Speaker of the House of Representatives which provides for
 2976  the full implementation of capitated prepaid behavioral health
 2977  care in all areas of the state.
 2978         a. Implementation shall begin in 2003 in those AHCA areas
 2979  of the state where the agency is able to establish sufficient
 2980  capitation rates.
 2981         b. If the agency determines that the proposed capitation
 2982  rate in any area is insufficient to provide appropriate
 2983  services, the agency may adjust the capitation rate to ensure
 2984  that care will be available. The agency and the department may
 2985  use existing general revenue to address any additional required
 2986  match but may not over-obligate existing funds on an annualized
 2987  basis.
 2988         c. Subject to any limitations provided in the General
 2989  Appropriations Act, the agency, in compliance with appropriate
 2990  federal authorization, shall develop policies and procedures
 2991  that allow for certification of local and state funds.
 2992         3.5. Children residing in a statewide inpatient psychiatric
 2993  program, or in a Department of Juvenile Justice or a Department
 2994  of Children and Family Services residential program approved as
 2995  a Medicaid behavioral health overlay services provider may not
 2996  be included in a behavioral health care prepaid health plan or
 2997  any other Medicaid managed care plan pursuant to this paragraph.
 2998         6. In converting to a prepaid system of delivery, the
 2999  agency shall in its procurement document require an entity
 3000  providing only comprehensive behavioral health care services to
 3001  prevent the displacement of indigent care patients by enrollees
 3002  in the Medicaid prepaid health plan providing behavioral health
 3003  care services from facilities receiving state funding to provide
 3004  indigent behavioral health care, to facilities licensed under
 3005  chapter 395 which do not receive state funding for indigent
 3006  behavioral health care, or reimburse the unsubsidized facility
 3007  for the cost of behavioral health care provided to the displaced
 3008  indigent care patient.
 3009         4.7. Traditional community mental health providers under
 3010  contract with the Department of Children and Family Services
 3011  pursuant to part IV of chapter 394, child welfare providers
 3012  under contract with the Department of Children and Family
 3013  Services in areas 1 and 6, and inpatient mental health providers
 3014  licensed pursuant to chapter 395 must be offered an opportunity
 3015  to accept or decline a contract to participate in any provider
 3016  network for prepaid behavioral health services.
 3017         5.8. All Medicaid-eligible children, except children in
 3018  area 1 and children in Highlands County, Hardee County, Polk
 3019  County, or Manatee County in of area 6, whose cases that are
 3020  open for child welfare services in the statewide automated child
 3021  welfare information HomeSafeNet system, shall receive their
 3022  behavioral health care services through a specialty prepaid plan
 3023  operated by community-based lead agencies through a single
 3024  agency or formal agreements among several agencies. The agency
 3025  shall work with the specialty plan to develop clinically
 3026  effective, evidence-based alternatives as a downward
 3027  substitution for the statewide inpatient psychiatric program and
 3028  similar residential care and institutional services. The
 3029  specialty prepaid plan must result in savings to the state
 3030  comparable to savings achieved in other Medicaid managed care
 3031  and prepaid programs. Such plan must provide mechanisms to
 3032  maximize state and local revenues. The specialty prepaid plan
 3033  shall be developed by the agency and the Department of Children
 3034  and Family Services. The agency may seek federal waivers to
 3035  implement this initiative. Medicaid-eligible children whose
 3036  cases are open for child welfare services in the statewide
 3037  automated child welfare information HomeSafeNet system and who
 3038  reside in AHCA area 10 shall be enrolled in a capitated managed
 3039  care plan, which includes provider service networks, which, in
 3040  coordination with available community-based care providers
 3041  specified in s. 409.1671, shall provide sufficient medical,
 3042  developmental, behavioral, and emotional services to meet the
 3043  needs of these children, subject to funding as provided in the
 3044  General Appropriations Act are exempt from the specialty prepaid
 3045  plan upon the development of a service delivery mechanism for
 3046  children who reside in area 10 as specified in s.
 3047  409.91211(3)(dd).
 3048         (d) A provider service network, which may be reimbursed on
 3049  a fee-for-service or prepaid basis.
 3050         1. A provider service network that which is reimbursed by
 3051  the agency on a prepaid basis is shall be exempt from parts I
 3052  and III of chapter 641, but must comply with the solvency
 3053  requirements in s. 641.2261(2) and meet appropriate financial
 3054  reserve, quality assurance, and patient rights requirements as
 3055  established by the agency.
 3056         2.Medicaid recipients assigned to a provider service
 3057  network shall be chosen equally from those who would otherwise
 3058  have been assigned to prepaid plans and MediPass. The agency may
 3059  is authorized to seek federal Medicaid waivers as necessary to
 3060  implement the provisions of this section. Any contract
 3061  previously awarded to a provider service network operated by a
 3062  hospital pursuant to this subsection shall remain in effect for
 3063  a period of 3 years following the current contract expiration
 3064  date, regardless of any contractual provisions to the contrary.
 3065         3. A provider service network is a network established or
 3066  organized and operated by a health care provider, or group of
 3067  affiliated health care providers, including minority physician
 3068  networks and emergency room diversion programs that meet the
 3069  requirements of s. 409.986 409.91211, which provides a
 3070  substantial proportion of the health care items and services
 3071  under a contract directly through the provider or affiliated
 3072  group of providers and may make arrangements with physicians or
 3073  other health care professionals, health care institutions, or
 3074  any combination of such individuals or institutions to assume
 3075  all or part of the financial risk on a prospective basis for the
 3076  provision of basic health services by the physicians, by other
 3077  health professionals, or through the institutions. The health
 3078  care providers must have a controlling interest in the governing
 3079  body of the provider service network organization.
 3080         (8)(a) The agency may contract on a prepaid or fixed-sum
 3081  basis with an exclusive provider organization to provide health
 3082  care services to Medicaid recipients if provided that the
 3083  exclusive provider organization meets applicable managed care
 3084  plan requirements in this section, ss. 409.987, 409.988
 3085  409.9122, 409.9123, 409.9128, and 627.6472, and other applicable
 3086  provisions of law.
 3087         (b) For a period of no longer than 24 months after the
 3088  effective date of this paragraph, when a member of an exclusive
 3089  provider organization that is contracted by the agency to
 3090  provide health care services to Medicaid recipients in rural
 3091  areas without a health maintenance organization obtains services
 3092  from a provider that participates in the Medicaid program in
 3093  this state, the provider shall be paid in accordance with the
 3094  appropriate fee schedule for services provided to eligible
 3095  Medicaid recipients. The agency may seek waiver authority to
 3096  implement this paragraph.
 3097         (34) The agency and entities that contract with the agency
 3098  to provide health care services to Medicaid recipients under
 3099  this section or ss. 409.986 and 409.987 409.91211 and 409.9122
 3100  must comply with the provisions of s. 641.513 in providing
 3101  emergency services and care to Medicaid recipients and MediPass
 3102  recipients. Where feasible, safe, and cost-effective, the agency
 3103  shall encourage hospitals, emergency medical services providers,
 3104  and other public and private health care providers to work
 3105  together in their local communities to enter into agreements or
 3106  arrangements to ensure access to alternatives to emergency
 3107  services and care for those Medicaid recipients who need
 3108  nonemergent care. The agency shall coordinate with hospitals,
 3109  emergency medical services providers, private health plans,
 3110  capitated managed care networks as established in s. 409.986
 3111  409.91211, and other public and private health care providers to
 3112  implement the provisions of ss. 395.1041(7), 409.91255(3)(g),
 3113  627.6405, and 641.31097 to develop and implement emergency
 3114  department diversion programs for Medicaid recipients.
 3115         (44) The agency for Health Care Administration shall ensure
 3116  that any Medicaid managed care plan as defined in s.
 3117  409.987(2)(f) 409.9122(2)(f), whether paid on a capitated basis
 3118  or a shared savings basis, is cost-effective. For purposes of
 3119  this subsection, the term “cost-effective” means that a
 3120  network’s per-member, per-month costs to the state, including,
 3121  but not limited to, fee-for-service costs, administrative costs,
 3122  and case-management fees, if any, must be no greater than the
 3123  state’s costs associated with contracts for Medicaid services
 3124  established under subsection (3), which may be adjusted for
 3125  health status. The agency shall conduct actuarially sound
 3126  adjustments for health status in order to ensure such cost
 3127  effectiveness and shall annually publish the results on its
 3128  Internet website. Contracts established pursuant to this
 3129  subsection which are not cost-effective may not be renewed.
 3130         (47) The agency shall conduct a study of available
 3131  electronic systems for the purpose of verifying the identity and
 3132  eligibility of a Medicaid recipient. The agency shall recommend
 3133  to the Legislature a plan to implement an electronic
 3134  verification system for Medicaid recipients by January 31, 2005.
 3135         (53) Before seeking an amendment to the state plan for
 3136  purposes of implementing programs authorized by the Deficit
 3137  Reduction Act of 2005, the agency shall notify the Legislature.
 3138         Section 30. Paragraph (a) of subsection (1) of section
 3139  409.915, Florida Statutes, is amended to read:
 3140         409.915 County contributions to Medicaid.—Although the
 3141  state is responsible for the full portion of the state share of
 3142  the matching funds required for the Medicaid program, in order
 3143  to acquire a certain portion of these funds, the state shall
 3144  charge the counties for certain items of care and service as
 3145  provided in this section.
 3146         (1) Each county shall participate in the following items of
 3147  care and service:
 3148         (a) For both health maintenance members and fee-for-service
 3149  beneficiaries, payments for inpatient hospitalization in excess
 3150  of 10 days, but not in excess of 45 days, with the exception of
 3151  pregnant women and children whose income is greater than in
 3152  excess of the federal poverty level and who do not receive a
 3153  Medicaid nonpoverty medical subsidy participate in the Medicaid
 3154  medically needy Program, and for adult lung transplant services.
 3155         Section 31. Section 409.9301, Florida Statutes, is
 3156  transferred, renumbered as section 409.9067, Florida Statutes,
 3157  and subsections (1) and (2) of that section are amended, to
 3158  read:
 3159         409.9067 409.9301 Pharmaceutical expense assistance.—
 3160         (1) PROGRAM ESTABLISHED.—A program is established in the
 3161  agency for Health Care Administration to provide pharmaceutical
 3162  expense assistance to individuals diagnosed with cancer or
 3163  individuals who have obtained received organ transplants who
 3164  received a Medicaid nonpoverty medical subsidy before were
 3165  medically needy recipients prior to January 1, 2006.
 3166         (2) ELIGIBILITY.—Eligibility for the program is limited to
 3167  an individual who:
 3168         (a) Is a resident of this state;
 3169         (b) Was a Medicaid recipient who received a nonpoverty
 3170  medical subsidy before under the Florida Medicaid medically
 3171  needy program prior to January 1, 2006;
 3172         (c) Is eligible for Medicare;
 3173         (d) Is a cancer patient or an organ transplant recipient;
 3174  and
 3175         (e) Requests to be enrolled in the program.
 3176         Section 32. Subsection (1) of section 409.9126, Florida
 3177  Statutes, is amended to read:
 3178         409.9126 Children with special health care needs.—
 3179         (1) Except as provided in subsection (4), children eligible
 3180  for Children’s Medical Services who receive Medicaid benefits,
 3181  and other Medicaid-eligible children with special health care
 3182  needs, are shall be exempt from the provisions of s. 409.987
 3183  409.9122 and shall be served through the Children’s Medical
 3184  Services network established in chapter 391.
 3185         Section 33. The Division of Statutory Revision is requested
 3186  to create part IV of chapter 409, Florida Statutes, consisting
 3187  of sections 409.961-409.978, Florida Statutes, entitled
 3188  “MEDICAID MANAGED CARE.”
 3189         Section 34. Section 409.961, Florida Statutes, is created
 3190  to read:
 3191         409.961Construction; applicability.—It is the intent of
 3192  the Legislature that if any conflict exists between ss. 409.961
 3193  409.978 and other parts or sections of this chapter, the
 3194  provisions in ss. 409.961-409.978 control. Sections 409.961
 3195  409.978 apply only to the Medicaid managed care program, as
 3196  provided in this part.
 3197         Section 35. Section 409.962, Florida Statutes, is created
 3198  to read:
 3199         409.962Definitions.—As used in this part, and including
 3200  the terms defined in s. 409.901, the term:
 3201         (1) “Direct care management” means care management
 3202  activities that involve direct interaction between providers and
 3203  patients.
 3204         (2) “Home and community-based services” means a specific
 3205  set of services designed to assist recipients qualifying under
 3206  s. 409.974 in avoiding institutionalization.
 3207         (3) “Medicaid managed care program” means the integrated,
 3208  statewide Medicaid program created in this part, which includes
 3209  the provision of managed care medical assistance services
 3210  described in ss. 409.971 and 409.972 and managed long-term care
 3211  services described in ss. 409.973-409.978.
 3212         (4)“Provider service network” means an entity of which a
 3213  controlling interest is owned by, or a controlling interest in
 3214  the governing body of the entity is composed of, a health care
 3215  provider, a group of affiliated providers, or a public agency or
 3216  entity that delivers health services. For purposes of this
 3217  chapter, health care providers include Florida-licensed health
 3218  care professionals, Florida-licensed health care facilities,
 3219  federally qualified health centers, and home health care
 3220  agencies.
 3221         (5) “Qualified plan” means a managed care plan that is
 3222  determined eligible to participate in the Medicaid managed care
 3223  program pursuant to s. 409.965.
 3224         (6) “Specialty plan” means a qualified plan that serves
 3225  Medicaid recipients who meet specified criteria based on age,
 3226  medical condition, or diagnosis.
 3227         Section 36. Section 409.963, Florida Statutes, is created
 3228  to read:
 3229         409.963Medicaid managed care program.—The Medicaid managed
 3230  care program is established as a statewide, integrated managed
 3231  care program for all covered medical assistance services and
 3232  long-term care services as provided under this part. Pursuant to
 3233  s. 409.902, the program shall be administered by the agency, and
 3234  eligibility for the program shall be determined by the
 3235  Department of Children and Family Services.
 3236         (1) The agency shall submit amendments to the Medicaid
 3237  state plan or to existing waivers, or submit new waiver requests
 3238  under section 1115 or other applicable sections of the Social
 3239  Security Act, by August 1, 2011, as needed to implement the
 3240  managed care program. At a minimum, the waiver requests must
 3241  include a waiver that allows home and community-based services
 3242  to be preferred over nursing home services for persons who can
 3243  be safely managed in the home and community, and a waiver that
 3244  requires dually eligible recipients to participate in the
 3245  Medicaid managed care program. The waiver requests must also
 3246  include provisions authorizing the state to limit enrollment in
 3247  managed long-term care, establish waiting lists, and limit the
 3248  amount, duration, and scope of home and community-based services
 3249  to ensure that expenditures for persons eligible for managed
 3250  long-term care services do not exceed funds provided in the
 3251  General Appropriations Act.
 3252         (a) The agency shall initiate any necessary procurements
 3253  required to implement the managed care program as soon as
 3254  practicable, but no later than July 1, 2011, in anticipation of
 3255  prompt approval of the waivers needed for the managed care
 3256  program by the United States Department of Health and Human
 3257  Services.
 3258         (b) In submitting waivers, the agency shall work with the
 3259  federal Centers for Medicare and Medicaid Services to accomplish
 3260  approval of all waivers by December 1, 2011, in order to begin
 3261  implementation of the managed care program by December 31, 2011.
 3262         (c) Before seeking a waiver, the agency shall provide
 3263  public notice and the opportunity for public comment and include
 3264  public feedback in the waiver application.
 3265         (2) The agency shall begin implementation of the Medicaid
 3266  managed care program on December 31, 2011. If waiver approval is
 3267  obtained, the program shall be implemented in accordance with
 3268  the terms and conditions of the waiver. If necessary waivers
 3269  have not been timely received, the agency shall notify the
 3270  Centers for Medicare and Medicaid Services of the state’s
 3271  implementation of the managed care program and request the
 3272  federal agency to continue providing federal funds equivalent to
 3273  the funding level provided under the Federal Medical Assistance
 3274  Percentage in order to implement the managed care program.
 3275         (a) If the Centers for Medicare and Medicaid Services
 3276  refuses to continue providing federal funds, the managed care
 3277  program shall be implemented as a state-only funded program to
 3278  the extent state funds are available.
 3279         (b) If implemented as a state-only funded program, priority
 3280  shall be given to providing:
 3281         1. Nursing home services to persons eligible for nursing
 3282  home care.
 3283         2. Medical services to persons served by the Agency for
 3284  Persons with Disabilities.
 3285         3. Medical services to pregnant women.
 3286         4. Physician and hospital services to persons who are
 3287  determined to be eligible for Medicaid subject to the income,
 3288  assets, and categorical eligibility tests set forth in federal
 3289  and state law.
 3290         5. Services provided under the Healthy Start waiver.
 3291         6. Medical services provided to persons in the Nursing Home
 3292  Diversion waiver.
 3293         7. Medical services provided to persons in intermediate
 3294  care facilities for the developmentally disabled.
 3295         8. Services to children in the child welfare system whose
 3296  medical care is provided in accordance with s. 409.16713, as
 3297  authorized by the General Appropriations Act.
 3298         (c)If implemented as a state-only funded program pursuant
 3299  to paragraph (b), provisions related to the eligibility
 3300  standards of the state and federally funded Medicaid program
 3301  remain in effect, except as otherwise provided under the managed
 3302  care program.
 3303         (d) If implemented as a state-only funded program pursuant
 3304  to paragraph (a), provider agreements and other contracts that
 3305  provide for Medicaid services to recipients identified in
 3306  paragraph (b) continue in effect.
 3307         Section 37. Section 409.964, Florida Statutes, is created
 3308  to read:
 3309         409.964Enrollment.—All Medicaid recipients shall receive
 3310  medical services through the Medicaid managed care program
 3311  established under this part unless excluded under this section.
 3312         (1) The following recipients are excluded from
 3313  participation in the Medicaid managed care program:
 3314         (a) Women who are eligible only for family planning
 3315  services.
 3316         (b) Women who are eligible only for breast and cervical
 3317  cancer services.
 3318         (c) Persons who have a developmental disability as defined
 3319  in s. 393.063.
 3320         (d) Persons who are eligible for a Medicaid nonpoverty
 3321  medical subsidy.
 3322         (e) Persons who receive eligible services under emergency
 3323  Medicaid for aliens.
 3324         (f) Persons who are residing in a nursing home facility or
 3325  are considered residents under the nursing home’s bed-hold
 3326  policy on or before July 1, 2011.
 3327         (g) Persons who are eligible for and receiving prescribed
 3328  pediatric extended care.
 3329         (h)Persons who are dependent on a respirator by medical
 3330  necessity and who meet the definition of a medically dependent
 3331  or technologically dependent child under s. 400.902.
 3332         (i) Persons who select the Medicaid hospice benefit and are
 3333  receiving hospice services from a hospice licensed under part IV
 3334  of chapter 400.
 3335         (j)Children residing in a statewide inpatient psychiatric
 3336  program.
 3337         (k)A person who is eligible for services under the
 3338  Medicaid program who has access to health care coverage through
 3339  an employer-sponsored health plan. Such person may not receive
 3340  Medicaid services under the fee-for-service program but may use
 3341  Medicaid financial assistance to pay the cost of premiums for
 3342  the employer-sponsored health plan. For purposes of this
 3343  paragraph, access to health care coverage through an employer
 3344  sponsored health plan means that the Medicaid financial
 3345  assistance available to the person is sufficient to pay the
 3346  premium for the employer-sponsored health plan for the eligible
 3347  person and his or her Medicaid eligible family members.
 3348         1.The agency shall develop a process that allows a
 3349  recipient who has access to employer-sponsored health coverage
 3350  to use Medicaid financial assistance to pay the cost of the
 3351  premium for the recipient and the recipient’s Medicaid-eligible
 3352  family members for such coverage. The amount of financial
 3353  assistance may not exceed the Medicaid capitated rate that would
 3354  have been paid to a qualified plan for that recipient and the
 3355  recipient’s family members.
 3356         2.Contingent upon federal approval, the agency shall also
 3357  allow recipients who have access to other insurance or coverage
 3358  created pursuant to state or federal law to opt out of Medicaid
 3359  managed care and apply the Medicaid capitated rate that would
 3360  have been paid to a qualified plan for that recipient and the
 3361  recipient’s family to pay for the other insurance product.
 3362         (2) The following Medicaid recipients are exempt from
 3363  mandatory enrollment in the managed care program but may
 3364  volunteer to participate in the program:
 3365         (a) Recipients residing in residential commitment
 3366  facilities operated through the Department of Juvenile Justice,
 3367  group care facilities operated by the Department of Children and
 3368  Family Services, or treatment facilities funded through the
 3369  substance abuse and mental health program of the Department of
 3370  Children and Family Services.
 3371         (b) Persons eligible for refugee assistance.
 3372         (3) Medicaid recipients who are exempt from mandatory
 3373  participation under this section and who do not choose to enroll
 3374  in the Medicaid managed care program shall be served though the
 3375  Medicaid fee-for-service program as provided under part III of
 3376  this chapter.
 3377         Section 38. Section 409.965, Florida Statutes, is created
 3378  to read:
 3379         409.965Qualified plans; regions; selection criteria.
 3380  Services in the Medicaid managed care program shall be provided
 3381  by qualified plans.
 3382         (1) The agency shall select qualified plans to participate
 3383  in the Medicaid managed care program using an invitation to
 3384  negotiate issued pursuant to s. 287.057.
 3385         (a) The agency shall notice separate invitations to
 3386  negotiate for the managed medical assistance component and the
 3387  managed long-term care component of the managed care program.
 3388         (b) At least 30 days before noticing the invitation to
 3389  negotiate and annually thereafter, the agency shall compile and
 3390  publish a databook consisting of a comprehensive set of
 3391  utilization and spending data for the 3 most recent contract
 3392  years, consistent with the rate-setting periods for all Medicaid
 3393  recipients by region and county. Pursuant to s. 409.970, the
 3394  source of the data must include both historic fee-for-service
 3395  claims and validated data from the Medicaid Encounter Data
 3396  System. The report shall be made available electronically and
 3397  must delineate utilization by age, gender, eligibility group,
 3398  geographic area, and acuity level.
 3399         (2) Separate and simultaneous procurements shall be
 3400  conducted in each of the following regions:
 3401         (a) Region 1, which consists of Escambia, Okaloosa, Santa
 3402  Rosa, and Walton counties.
 3403         (b) Region 2, which consists of Franklin, Gadsden,
 3404  Jefferson, Leon, Liberty, and Wakulla counties.
 3405         (c) Region 3, which consists of Columbia, Dixie, Hamilton,
 3406  Lafayette, Madison, Suwannee, and Taylor counties.
 3407         (d) Region 4, which consists of Baker, Clay, Duval, and
 3408  Nassau counties.
 3409         (e) Region 5, which consists of Citrus, Hernando, Lake,
 3410  Marion, and Sumter counties.
 3411         (f) Region 6, which consists of Pasco and Pinellas
 3412  counties.
 3413         (g) Region 7, which consists of Flagler, Putnam, St. Johns,
 3414  and Volusia counties.
 3415         (h) Region 8, which consists of Alachua, Bradford,
 3416  Gilchrist, Levy, and Union counties.
 3417         (i) Region 9, which consists of Orange and Osceola
 3418  counties.
 3419         (j) Region 10, which consists of Hardee, Highlands, and
 3420  Polk counties.
 3421         (k) Region 11, which consists of Miami-Dade and Monroe
 3422  counties.
 3423         (l) Region 12, which consists of DeSoto, Manatee, and
 3424  Sarasota counties.
 3425         (m) Region 13, which consists of Hillsborough County.
 3426         (n) Region 14, which consists of Bay, Calhoun, Gulf,
 3427  Holmes, Jackson, and Washington counties.
 3428         (o) Region 15, which consists of Palm Beach County.
 3429         (p) Region 16, which consists of Broward County.
 3430         (q) Region 17, which consists of Brevard and Seminole
 3431  counties.
 3432         (r) Region 18, which consists of Indian River, Martin,
 3433  Okeechobee, and St. Lucie counties.
 3434         (s) Region 19, which consists of Charlotte, Collier,
 3435  Glades, Hendry, and Lee counties.
 3436         (3) The invitation to negotiate must specify the criteria
 3437  and the relative weight of the criteria to be used for
 3438  determining the acceptability of a reply and guiding the
 3439  selection of qualified plans with which the agency shall
 3440  contract. In addition to other criteria developed by the agency,
 3441  the agency shall give preference to the following factors in
 3442  selecting qualified plans:
 3443         (a) Accreditation by the National Committee for Quality
 3444  Assurance or another nationally recognized accrediting body.
 3445         (b) Experience serving similar populations, including the
 3446  organization’s record in achieving specific quality standards
 3447  for similar populations.
 3448         (c) Availability and accessibility of primary care and
 3449  specialty physicians in the provider network.
 3450         (d) Establishment of partnerships with community providers
 3451  that provide community-based services.
 3452         (e) The organization’s commitment to quality improvement
 3453  and documentation of achievements in specific quality
 3454  improvement projects, including active involvement by the
 3455  organization’s leadership.
 3456         (f) Provision of additional benefits, particularly dental
 3457  care for all recipients, disease management, and other programs
 3458  offering additional benefits.
 3459         (g) Establishment of incentive programs that reward
 3460  specific behaviors with health-related benefits not otherwise
 3461  covered by the organizations’ benefit plan. Such behaviors may
 3462  include participation in smoking-cessation programs, weight-loss
 3463  programs, or other activities designed to mitigate lifestyle
 3464  choices and avoid behaviors associated with the use of high-cost
 3465  medical services.
 3466         (h) Organizations without a history of voluntary or
 3467  involuntary withdrawal from any state Medicaid program or
 3468  program area.
 3469         (i) Evidence that an organization has written agreements or
 3470  signed contracts or has made substantial progress in
 3471  establishing relationships with providers before the
 3472  organization submits a reply. The agency shall evaluate such
 3473  evidence based on the following factors:
 3474         1. Contracts with primary care and specialty physicians in
 3475  sufficient numbers to meet the specific performance standards
 3476  established pursuant to s. 409.966(2)(b).
 3477         2. Specific arrangements that provide evidence that the
 3478  compensation offered by the plan is sufficient to retain primary
 3479  care and specialty physicians in sufficient numbers to comply
 3480  with the performance standards established pursuant to s.
 3481  409.966(2) throughout the 5-year contract term. The agency shall
 3482  give preference to plans that provide evidence that primary care
 3483  physicians within the plan’s provider network will be
 3484  compensated for primary care services with payments equivalent
 3485  to or greater than payments for such services under the Medicare
 3486  program, whether compensation is made on a fee-for-service basis
 3487  or by sub-capitation.
 3488         3. Contracts with community pharmacies located in rural
 3489  areas; contracts with community pharmacies serving specialty
 3490  disease populations, including, but not limited to, HIV/AIDS
 3491  patients, hemophiliacs, patients suffering from end-stage renal
 3492  disease, diabetes, or cancer; community pharmacies located
 3493  within distinct cultural communities that reflect the unique
 3494  cultural dynamics of such communities, including, but not
 3495  limited to, languages spoken, ethnicities served, unique disease
 3496  states serviced, and geographic location within the
 3497  neighborhoods of culturally distinct populations; and community
 3498  pharmacies providing value-added services to patients, such as
 3499  free delivery, immunizations, disease management, diabetes
 3500  education, and medication utilization review.
 3501         4. Contracts with cancer disease management programs that
 3502  have a proven record of clinical efficiencies and cost savings.
 3503         5. Contracts with diabetes disease management programs that
 3504  have a proven record of clinical efficiencies and cost savings.
 3505         (j) The capitated rates provided in the reply to the
 3506  invitation to negotiate.
 3507         (k) Establishment of a claims payment process to ensure
 3508  that claims that are not contested or denied will be paid within
 3509  20 days after receipt.
 3510         (l)Utilizing a tiered approach, organizations that are
 3511  based in Florida and have operational functions performed in
 3512  Florida, either performed in-house or through contractual
 3513  arrangements, by Florida-employed staff. The highest number of
 3514  points shall be awarded to any plan with all or substantially
 3515  all of its operational functions performed in the state. The
 3516  second highest number of points shall be awarded to any plan
 3517  with a majority of its operational functions performed in the
 3518  state. The agency may establish a third tier; however, no
 3519  preference points shall be awarded to plans that perform only
 3520  community outreach, medical director functions, and state
 3521  administrative functions in the state. For purposes of this
 3522  paragraph, operational functions include claims processing,
 3523  member services, provider relations, utilization and prior
 3524  authorization, case management, disease and quality functions,
 3525  and finance and administration. For purposes of this paragraph,
 3526  based in Florida means that the entity’s principal office is
 3527  in Florida and the plan is not a subsidiary, directly or
 3528  indirectly through one or more subsidiaries of, or a joint
 3529  venture with, any other entity whose principal office is not
 3530  located in the state.
 3531         (m)For long-term care plans, additional criteria as
 3532  specified in s. 409.976(3).
 3533         (4) Acceptable replies to the invitation to negotiate for
 3534  each region shall be ranked, and the agency shall select the
 3535  number of qualified plans with which to contract in each region.
 3536         (a) The agency may not select more than one plan per 20,000
 3537  Medicaid recipients residing in the region who are subject to
 3538  mandatory managed care enrollment, except that, in addition to
 3539  the Children’s Medical Services Network, a region may not have
 3540  fewer than three or more than 10 qualified plans for the managed
 3541  medical assistance or the managed long-term care components of
 3542  the program.
 3543         (b) If the funding available in the General Appropriations
 3544  Act is not adequate to meet the proposed statewide requirement
 3545  under the Medicaid managed care program, the agency shall enter
 3546  into negotiations with qualified plans that responded to the
 3547  invitation to negotiate. The negotiation process may alter the
 3548  rank of a qualified plan. If negotiations are conducted, the
 3549  agency shall select qualified plans that are responsive and
 3550  provide the best value to the state.
 3551         (5)The agency may issue a new invitation to negotiate in
 3552  any region:
 3553         (a) At any time if:
 3554         1.Data becomes available to the agency indicating that the
 3555  population of recipients residing in the region who are subject
 3556  to mandatory managed care enrollment cannot be served by the
 3557  plans under contract with the agency in that region or has
 3558  increased by more than 20,000 since the most recent invitation
 3559  to negotiate was issued in that region; and
 3560         2.The agency has not contracted with the maximum number of
 3561  plans authorized for that region.
 3562         (b) At any time during the first 2 years after the initial
 3563  contract period and upon the request of a qualified plan under
 3564  contract in one or more regions if:
 3565         1. Data becomes available to the agency indicating that the
 3566  population of Medicaid recipients residing in the region who are
 3567  subject to mandatory managed care enrollment has increased by
 3568  more than 20,000 since the initial invitation to negotiate was
 3569  issued for the contract period; and
 3570         2. The agency has not contracted with the maximum number of
 3571  plans authorized for that region.
 3572  
 3573  The term of a contract executed under this subsection shall be
 3574  for the remainder of the 5-year contract cycle.
 3575         (6) The Children’s Medical Services Network authorized
 3576  under chapter 391 is a qualified plan for purposes of the
 3577  managed care medical assistance component of the Medicaid
 3578  managed care program. Participation by the network shall be
 3579  pursuant to a single statewide contract with the agency which is
 3580  not subject to the procurement requirements of this section. The
 3581  network must meet all other plan requirements for the managed
 3582  care medical assistance component of the program.
 3583         (7) In order to allow a provider service network in rural
 3584  areas sufficient time to develop an adequate provider network to
 3585  participate in the Medicaid managed care program on a capitated
 3586  basis, the network may submit an application or invitation to
 3587  negotiate after July 1, 2011, as required by the agency, for a
 3588  region where there was no Medicaid-contracted health maintenance
 3589  organization or provider service network on July 1, 2011. For
 3590  the first 12 months that the network operates in the region, the
 3591  agency shall assign existing Medicaid provider agreements to the
 3592  provider service network for purposes of administering managed
 3593  care services and building an adequate provider network to meet
 3594  the access standards established by the agency.
 3595         Section 39. Section 409.966, Florida Statutes, is created
 3596  to read:
 3597         409.966Plan contracts.—
 3598         (1) The agency shall execute a 5-year contract with each
 3599  qualified plan selected through the procurement process
 3600  described in s. 409.965. A contract between the agency and the
 3601  qualified plan may be amended annually, or as needed, to reflect
 3602  capitated rate adjustments due to funding availability pursuant
 3603  to the General Appropriations Act and ss. 409.9022, 409.972, and
 3604  409.975(2).
 3605         (a) A plan contract may not be renewed; however, the agency
 3606  may extend the term of a contract, keeping intact all
 3607  operational provisions in the contract, including capitation
 3608  rates, to cover any delays in transitioning to a new plan.
 3609         (b) If a plan applies for a rate increase that is not the
 3610  result of a solicitation from the agency and the application for
 3611  rate increase is not timely withdrawn, the plan will be deemed
 3612  to have submitted a notice of intent to leave the region before
 3613  the end of the contract term.
 3614         (2) The agency shall establish such contract requirements
 3615  as are necessary for the operation of the Medicaid managed care
 3616  program. In addition to any other provisions the agency may deem
 3617  necessary, the contract must require:
 3618         (a) Access.—The agency shall establish specific standards
 3619  for the number, type, and regional distribution of providers in
 3620  plan networks in order to ensure access to care. Each qualified
 3621  plan shall:
 3622         1. Maintain a network of providers in sufficient numbers to
 3623  meet the access standards for specified services for all
 3624  recipients enrolled in the plan.
 3625         2. Establish and maintain an accurate and complete
 3626  electronic database of contracted providers, including
 3627  information about licensure or registration, locations and hours
 3628  of operation, specialty credentials and other certifications,
 3629  specific performance indicators, and such other information as
 3630  the agency deems necessary. The provider database must be
 3631  available online to both the agency and the public and allow
 3632  comparison of the availability of providers to network adequacy
 3633  standards, and accept and display feedback from each provider’s
 3634  patients.
 3635         3. Provide for reasonable and adequate hours of operation,
 3636  including 24-hour availability of information, referral, and
 3637  treatment for emergency medical conditions.
 3638         4. Assign each new enrollee to a primary care provider and
 3639  ensure that an appointment with that provider has been scheduled
 3640  within 30 days after the enrollment in the plan.
 3641         5. Submit quarterly reports to the agency identifying the
 3642  number of enrollees assigned to each primary care provider.
 3643         (b) Performance standards.—The agency shall establish
 3644  specific performance standards and expected milestones or
 3645  timelines for improving plan performance over the term of the
 3646  contract.
 3647         1. Each plan shall establish an internal health care
 3648  quality improvement system that includes enrollee satisfaction
 3649  and disenrollment surveys and incentives and disincentives for
 3650  network providers.
 3651         2. Each plan must collect and report the Health Plan
 3652  Employer Data and Information Set (HEDIS) measures, as specified
 3653  by the agency. These measures must be published on the plan’s
 3654  website in a manner that allows recipients to reliably compare
 3655  the performance of plans. The agency shall use the HEDIS
 3656  measures as a tool to monitor plan performance.
 3657         3. A qualified plan that is not accredited when the
 3658  contract is executed with the agency must become accredited or
 3659  have initiated the accreditation process within 1 year after the
 3660  contract is executed. If the plan is not accredited within 18
 3661  months after executing the contract, the plan shall be suspended
 3662  from automated enrollments pursuant to s. 409.969(2).
 3663         4. In addition to agency standards, a qualified plan must
 3664  ensure that the agency is notified of the impending birth of a
 3665  child to an enrollee or as soon as practicable after the child’s
 3666  birth. Upon the birth, the child is deemed enrolled with the
 3667  qualified plan, regardless of the administrative enrollment
 3668  procedures, and the qualified plan is responsible for providing
 3669  Medicaid services to the child on a capitated basis.
 3670         (c) Program integrity.—Each plan shall establish program
 3671  integrity functions and activities in order to reduce the
 3672  incidence of fraud and abuse, including, at a minimum:
 3673         1. A provider credentialing system and ongoing provider
 3674  monitoring. Each plan must maintain written provider
 3675  credentialing policies and procedures that are compliant with
 3676  federal and agency guidelines. Each plan must verify at least
 3677  annually that all providers have a valid and unencumbered
 3678  license or permit to provide services to Medicaid recipients,
 3679  and shall establish a procedure for providers to notify the plan
 3680  when the provider has been notified by a licensing or regulatory
 3681  agency that the provider’s license or permit is to be revoked or
 3682  suspended, or when an event has occurred which would prevent the
 3683  provider from renewing its license or permit. The provider must
 3684  also notify the plan if the license or permit is revoked or
 3685  suspended, if renewal of the license or permit is denied or
 3686  expires by operation of law, or if the provider requests that
 3687  the license or permit be inactivated. The plan must immediately
 3688  exclude a provider from the plan’s provider network if the
 3689  provider’s license is suspended or invalid. However, this
 3690  section does not preclude a plan from contracting with a
 3691  provider that is approved via a final order, has commenced
 3692  construction, and will be licensed and operational within 18
 3693  months after the effective date of this act;
 3694         2. An effective prepayment and postpayment review process
 3695  that includes, at a minimum, data analysis, system editing, and
 3696  auditing of network providers;
 3697         3. Procedures for reporting instances of fraud and abuse
 3698  pursuant to s. 409.91212;
 3699         4. The establishment of an anti-fraud plan pursuant to s.
 3700  409.91212; and
 3701         5. Designation of a program integrity compliance officer.
 3702         (d) Encounter data.—Each plan must comply with the agency’s
 3703  reporting requirements for the Medicaid Encounter Data System
 3704  under s. 409.970. The agency shall assess a fine of $5,000 per
 3705  day against a qualified plan for failing to comply with this
 3706  requirement. If a plan fails to comply for more than 30 days,
 3707  the agency shall assess a fine of $10,000 per day beginning on
 3708  the 31st day. If a plan is fined $300,000 or more for failing to
 3709  comply, in addition to paying the fine, the plan shall be
 3710  disqualified from the Medicaid managed care program for 3 years.
 3711  If the plan is disqualified, the plan shall be deemed to have
 3712  terminated its contract before the scheduled end date and shall
 3713  also be subject to applicable penalties under paragraph (l).
 3714  However, the agency may waive or reduce the fine upon a showing
 3715  of good cause for the failure to comply.
 3716         (e)Electronic claims and prior authorization requests.
 3717  Plans shall accept electronic claims that are in compliance with
 3718  federal standards and accept electronic prior authorization
 3719  requests from prescribers and pharmacists for medication
 3720  exceptions to the preferred drug list or formulary. The criteria
 3721  for the approval and the reasons for denial of prior
 3722  authorization requests shall be made readily available to
 3723  prescribers and pharmacists submitting the request. Plans shall
 3724  require any vendor or subcontractor providing fiscal
 3725  intermediary services to the plan pursuant to s. 641.316, which
 3726  involve the acceptance of provider claims, to accept electronic
 3727  claims in compliance with federal standards.
 3728         (f) Prompt payment.—All qualified plans must comply with
 3729  ss. 641.315, 641.3155, and 641.513. Qualified plans shall pay
 3730  nursing homes by the 10th day of the month for enrollees who are
 3731  residing in the nursing home on the 1st day of the month.
 3732  Payment for the month in which an enrollee initiates residency
 3733  in a nursing home shall be in accordance with s. 641.3155. On an
 3734  annual basis, qualified plans shall submit a report certifying
 3735  compliance with the prompt payment requirements for the plan
 3736  year.
 3737         (g) Emergency services.—Qualified plans must pay for
 3738  emergency services and care required under ss. 395.1041 and
 3739  401.45 and rendered by a noncontracted provider in accordance
 3740  with the prompt payment standards established in s. 641.3155.
 3741  The payment rate shall be the fee-for-service rate the agency
 3742  would pay the noncontracted provider for such services, unless
 3743  the agency has developed an average rate for the noncontracted
 3744  provider for such services under s. 409.967(3)(c). If the agency
 3745  has developed an average rate for the noncontracted provider for
 3746  such services under s. 409.967(3)(c), the payment rate for such
 3747  services under this paragraph shall be the average rate
 3748  developed by the agency for the noncontracted provider for such
 3749  services under s. 409.967(3)(c).
 3750         (h) Surety bond.—A qualified plan shall post and maintain a
 3751  surety bond with the agency, payable to the agency, or in lieu
 3752  of a surety bond, establish and maintain an irrevocable letter
 3753  of credit or a deposit in a trust account in a financial
 3754  institution, payable to the agency.
 3755         1. The amount of the surety bond, letter of credit, or
 3756  trust account shall be 125 percent of the estimated annual
 3757  guaranteed savings for each qualified plan, and at least $2
 3758  million but no more than $15 million for each qualified plan.
 3759  The estimated guaranteed savings shall be calculated before the
 3760  execution of the contract as follows:
 3761         a. The agreed-upon monthly contractual capitated rate for
 3762  each level of acuity multiplied by the estimated population in
 3763  the region for the plan for each level of acuity, multiplied by
 3764  12 months, multiplied by 7 percent, multiplied by 125 percent.
 3765         b. The estimated population in the region for the plan
 3766  under sub-subparagraph a. shall be based on the maximum enrollee
 3767  level that the agency initially authorizes. The factors that the
 3768  agency may consider in determining the maximum enrollee level
 3769  include, but are not limited to, requested capacity, projected
 3770  enrollment, network adequacy, and the available budget in the
 3771  General Appropriations Act.
 3772         2. The purpose of the surety bond, letter of credit, or
 3773  trust account is to protect the agency if the entity terminates
 3774  its contract with the agency before the scheduled end date for
 3775  the contract, if the plan fails to comply with the terms of the
 3776  contract, including, but not limited to, the timely submission
 3777  of encounter data, if the agency imposes fines or penalties for
 3778  noncompliance, or if the plan fails to achieve the guaranteed
 3779  savings. If any of those events occurs, the agency shall first
 3780  request payment from the qualified plan. If the qualified plan
 3781  does not pay all costs, fines, penalties, or the differential in
 3782  the guaranteed savings in full within 30 days, the agency shall
 3783  pursue a claim against the surety bond, letter of credit, or
 3784  trust account for all applicable moneys and the legal and
 3785  administrative costs associated with pursuing such claim.
 3786         (i) Grievance resolution.—Each plan shall establish and the
 3787  agency shall approve an internal process for reviewing and
 3788  responding to grievances from enrollees consistent with s.
 3789  641.511. Each plan shall submit quarterly reports to the agency
 3790  on the number, description, and outcome of grievances filed by
 3791  enrollees.
 3792         (j) Solvency.—A qualified plan must meet and maintain the
 3793  surplus and solvency requirements under s. 409.912(17) and (18).
 3794  A provider service network may satisfy the surplus and solvency
 3795  requirements if the network’s performance and financial
 3796  obligations are guaranteed in writing by an entity licensed by
 3797  the Office of Insurance Regulation which meets the surplus and
 3798  solvency requirements of s. 624.408 or s. 641.225.
 3799         (k)Guaranteed savings.During the first contract period, a
 3800  qualified plan must agree to provide a guaranteed minimum
 3801  savings of 7 percent to the state. The agency shall conduct a
 3802  cost reconciliation to determine the amount of cost savings
 3803  achieved by the qualified plan compared with the reimbursements
 3804  the agency would have incurred under fee-for-service provisions.
 3805         (l) Costs and penalties.—Plans that reduce enrollment
 3806  levels or leave a region before the end of the contract term
 3807  must reimburse the agency for the cost of enrollment changes and
 3808  other transition activities. If more than one plan leaves a
 3809  region at the same time, costs shall be shared by the departing
 3810  plans proportionate to their enrollment. In addition to the
 3811  payment of costs, departing plans must pay a penalty of 1
 3812  month’s payment calculated as an average of the past 12 months
 3813  of payments, or since inception if the plan has not contracted
 3814  with the agency for 12 months, plus the differential of the
 3815  guaranteed savings based on the original contract term and the
 3816  corresponding termination date. Plans must provide the agency
 3817  with at least 180 days notice before withdrawing from a region.
 3818         (m)Formulary.—Upon recommendation of the Medicaid
 3819  Pharmaceutical and Therapeutics Committee as defined in s.
 3820  409.91195, all qualified plans must adopt a standard minimum
 3821  preferred drug list as described in s. 409.912(39). A plan may
 3822  offer additional products on its formulary. Each plan must
 3823  publish an up-to-date listing of its formulary on a publicly
 3824  available website.
 3825         (n) Fiscal intermediary services.If a qualified plan
 3826  contracts for fiscal intermediary services as defined in s.
 3827  641.316(1), the plan shall contract only with a fiscal
 3828  intermediary services organization registered with the Office of
 3829  Insurance Regulation as required under s. 641.316(6). All
 3830  noncapitated payments to a health care provider by a fiscal
 3831  intermediary services organization under contract with a
 3832  qualified plan must include an explanation of benefits for which
 3833  payment is being made and include, at a minimum, the enrollee’s
 3834  name, the date of service, the procedure code, the amount of
 3835  reimbursement, and the identification of the qualified plan on
 3836  whose behalf the payment is being made.
 3837         (3) If the agency terminates more than one regional
 3838  contract with a qualified plan due to the plan’s noncompliance
 3839  with one or more requirements of this section, the agency shall
 3840  terminate all regional contracts with the plan under the
 3841  Medicaid managed care program, as well as any other contracts or
 3842  agreements for other programs or services, and the plan may not
 3843  be awarded new contracts for 3 years.
 3844         Section 40. Section 409.967, Florida Statutes, is created
 3845  to read:
 3846         409.967Plan accountability.—In addition to the contract
 3847  requirements of s. 409.966, plans and providers participating in
 3848  the Medicaid managed care program must comply with this section.
 3849         (1) The agency shall require qualified plans to use a
 3850  uniform method of reporting and accounting for medical, direct
 3851  care management, and nonmedical costs and shall evaluate plan
 3852  spending patterns after the plan completes 2 full years of
 3853  operation and at least annually thereafter.
 3854         (2) The agency shall implement the following thresholds and
 3855  consequences of various spending patterns for qualified plans
 3856  under the managed medical assistance component of the Medicaid
 3857  managed care program:
 3858         (a)The minimum medical loss ratio shall be 90 percent.
 3859         (b) A plan and its subcontractors that spend less than 90
 3860  percent of the plan’s Medicaid capitation revenue on medical
 3861  services and direct care management, as determined by the
 3862  agency, must pay back to the agency a share of the dollar
 3863  difference between the plan’s actual medical loss ratio and the
 3864  minimum medical loss ratio, as follows:
 3865         1. If the plan’s actual medical loss ratio is not lower
 3866  than 87 percent, the plan must pay back 50 percent of the dollar
 3867  difference between the actual medical loss ratio and the minimum
 3868  medical loss ratio of 90 percent.
 3869         2. If the plan’s actual medical loss ratio is lower than 87
 3870  percent, the plan must pay back 50 percent of the dollar
 3871  difference between a medical loss ratio of 87 percent and the
 3872  minimum medical loss ratio of 90 percent, plus 100 percent of
 3873  the dollar difference between the actual medical loss ratio and
 3874  a medical loss ratio of 87 percent.
 3875         (c) To administer this subsection, the agency shall adopt
 3876  rules that specify a methodology for calculating medical loss
 3877  ratios and the requirements for plans to annually report
 3878  information related to medical loss ratios. Repayments required
 3879  by this subsection must be made annually.
 3880         (3) Plans may limit the providers in their networks.
 3881         (a) However, during the first year in which a qualified
 3882  plan is operating in a region after the initial plan procurement
 3883  for that region, the plan must offer a network contract to the
 3884  following providers in the region:
 3885         1. Federally qualified health centers.
 3886         2. Nursing homes if the plan is providing managed long-term
 3887  care services.
 3888         3. Aging network service providers that have previously
 3889  participated in home and community-based waivers serving elders,
 3890  or community-service programs administered by the Department of
 3891  Elderly Affairs if the plan is providing managed long-term care
 3892  services.
 3893         (b) After 12 months of active participation in a plan’s
 3894  network, the plan may exclude any of the providers listed in
 3895  paragraph (a) from the network while maintaining the network
 3896  performance standards required under s. 409.966(2)(b). If the
 3897  plan excludes a nursing home that meets the standards for
 3898  ongoing Medicaid certification, the plan must provide an
 3899  alternative residence in that community for Medicaid recipients
 3900  residing in that nursing home. If a Medicaid recipient residing
 3901  in an excluded nursing home does not choose to change residence,
 3902  the plan must continue to pay for the recipient’s care in that
 3903  nursing home. If the plan excludes a provider, the plan must
 3904  provide written notice to all enrollees who have chosen that
 3905  provider for care. Notice to excluded providers must be
 3906  delivered at least 30 days before the effective date of the
 3907  exclusion.
 3908         (c) Notwithstanding the limitation provided in this
 3909  subsection, qualified plans must include the following essential
 3910  providers in their networks:
 3911         1. Faculty plans of state medical schools, unless the
 3912  medical school and an affiliated teaching hospital owns or
 3913  collaboratively operates a provider service network in the
 3914  region; and
 3915         2. Hospitals licensed as a children’s specialty hospital as
 3916  defined in s. 395.002.
 3917  
 3918  Qualified plans that have not contracted with all statewide
 3919  essential providers as of the first date of recipient enrollment
 3920  must continue to negotiate in good faith. Payments to a
 3921  nonparticipating essential provider must be equal to the highest
 3922  rate established by contract between that provider and any other
 3923  Medicaid managed care plan.
 3924         (d) Qualified plans and providers shall engage in good
 3925  faith negotiations to reach contract terms.
 3926         1. If a qualified plan seeks to develop a provider network
 3927  in a county or region that, as of June 30, 2011, does not have a
 3928  capitated managed care plan providing comprehensive acute care
 3929  for Medicaid recipients, and the qualified plan has made at
 3930  least three documented, unsuccessful, good faith attempts to
 3931  contract with a specific provider, the plan may request the
 3932  agency to examine the negotiation process. During the
 3933  examination, the agency shall consider similar counties or
 3934  regions in which qualified plans have contracted with providers
 3935  under similar circumstances, as well as the contracted rates
 3936  between qualified plans and that provider and similar providers
 3937  in the same region. If the agency determines that the plan has
 3938  made three good faith attempts to contract with the provider,
 3939  the agency shall consider that provider to be part of the
 3940  qualified plan’s provider network for the purpose of determining
 3941  network adequacy, and the plan shall pay the provider for
 3942  services to Medicaid recipients on a noncontracted basis at a
 3943  rate or rates determined by the agency to be the average of
 3944  rates for corresponding services paid by the qualified plan and
 3945  other qualified plans in the region and in similar counties or
 3946  regions under similar circumstances.
 3947         2. The agency may continue to calculate Medicaid hospital
 3948  inpatient per diem rates and outpatient rates. However, these
 3949  rates may not be the basis for contract negotiations between a
 3950  managed care plan and a hospital.
 3951         (4) Each qualified plan shall monitor the quality and
 3952  performance of each provider within its network based on metrics
 3953  established by the agency for evaluating and documenting
 3954  provider performance and determining continued participation in
 3955  the network. However, qualified plans are not required to
 3956  conduct surveys of health care facilities that the agency
 3957  surveys periodically for licensure or certification purposes and
 3958  shall accept the results of such surveys. The agency shall
 3959  establish requirements for qualified plans to report, at least
 3960  annually, provider performance data compiled under this
 3961  subsection. If a plan uses additional metrics to evaluate the
 3962  provider’s performance and to determine continued participation
 3963  in the network, the plan must notify the network providers of
 3964  these metrics at the beginning of the contract period.
 3965         (a) At a minimum, a qualified plan shall hold primary care
 3966  physicians responsible for the following activities:
 3967         1. Supervision, coordination, and provision of care to each
 3968  assigned enrollee.
 3969         2. Initiation of referrals for medically necessary
 3970  specialty care and other services.
 3971         3. Maintaining continuity of care for each assigned
 3972  enrollee.
 3973         4. Maintaining the enrollee’s medical record, including
 3974  documentation of all medical services provided to the enrollee
 3975  by the primary care physician, as well as any specialty or
 3976  referral services.
 3977         (b) Qualified plans shall establish and implement policies
 3978  and procedures to monitor primary care physician activities and
 3979  ensure that primary care physicians are adequately notified and
 3980  receive documentation of specialty and referral services
 3981  provided to enrollees by specialty physicians and other health
 3982  care providers within the plan’s provider network.
 3983         (5) Each qualified plan shall establish specific programs
 3984  and procedures to improve pregnancy outcomes and infant health,
 3985  including, but not limited to, coordination with the Healthy
 3986  Start program, immunization programs, and referral to the
 3987  Special Supplemental Nutrition Program for Women, Infants, and
 3988  Children, and the Children’s Medical Services Program for
 3989  children with special health care needs.
 3990         (a) Qualified plans must ensure that primary care
 3991  physicians who provide obstetrical care are available to
 3992  pregnant recipients and that an obstetrical care provider is
 3993  assigned to each pregnant recipient for the duration of her
 3994  pregnancy and postpartum care, by referral of the recipient’s
 3995  primary care physician if necessary.
 3996         (b) Qualified plans within the managed long-term care
 3997  component are exempt from this subsection.
 3998         (6) Each qualified plan shall achieve an annual screening
 3999  rate for early and periodic screening, diagnosis, and treatment
 4000  services of at least 80 percent of those recipients continuously
 4001  enrolled for at least 8 months. Qualified plans within the
 4002  managed long-term care component are exempt from this
 4003  requirement.
 4004         (7) Effective January 1, 2013, qualified plans must
 4005  compensate primary care physicians for primary care services at
 4006  payment rates that are equivalent to or greater than payments
 4007  under the federal Medicare program, whether compensation is made
 4008  on a fee-for-service basis or by sub-capitation.
 4009         (8) In order to protect the continued operation of the
 4010  Medicaid managed care program, unresolved disputes, including
 4011  claim and other types of disputes, between a qualified plan and
 4012  a provider shall proceed in accordance with s. 408.7057. This
 4013  process may not be used to review or reverse a decision by a
 4014  qualified plan to exclude a provider from its network if the
 4015  decision does not conflict with s. 409.967(3).
 4016         Section 41. Section 409.968, Florida Statutes, is created
 4017  to read:
 4018         409.968Plan payment.—Payments for managed medical
 4019  assistance and managed long-term care services under this part
 4020  shall be made in accordance with a capitated managed care model.
 4021  Qualified plans shall receive per-member, per-month payments
 4022  pursuant to the procurements described in s. 409.965 and annual
 4023  adjustments as described in s. 409.966(1). Payment rates must be
 4024  based on the acuity level for each member pursuant to ss.
 4025  409.972 and 409.978, and must encourage plans to use the most
 4026  cost-effective modalities for the treatment of chronic disease,
 4027  such as peritoneal dialysis over hemodialysis if the patient and
 4028  physician choose this form of treatment. Payment rates for
 4029  managed long-term care plans shall be combined with rates for
 4030  managed medical assistance plans.
 4031         (1) The agency shall develop a methodology and request a
 4032  waiver that ensures the availability of intergovernmental
 4033  transfers in the Medicaid managed care program to support
 4034  providers that have historically served Medicaid recipients.
 4035  Such providers include, but are not limited to, safety net
 4036  providers, trauma hospitals, children’s hospitals, and statutory
 4037  teaching hospitals. The agency may develop a supplemental
 4038  capitation rate, risk pool, or incentive payment for plans that
 4039  contract with these providers. A plan is eligible for a
 4040  supplemental payment only if there are sufficient
 4041  intergovernmental transfers available from allowable sources.
 4042         (2) The agency shall evaluate the development of the rate
 4043  cell to accurately reflect the underlying utilization to the
 4044  maximum extent possible. This methodology may include interim
 4045  rate adjustments as permitted under federal regulations. Any
 4046  such methodology must preserve federal funding to these entities
 4047  and be actuarially sound. In the absence of federal approval of
 4048  the methodology, the agency may set an enhanced rate and require
 4049  that plans pay the rate if the agency determines the enhanced
 4050  rate is necessary to ensure access to care by the providers
 4051  described in this subsection.
 4052         (3) The amount paid to the plans to make supplemental
 4053  payments or to enhance provider rates pursuant to this
 4054  subsection must be reconciled to the exact amounts the plans are
 4055  required to pay providers. The plans shall make the designated
 4056  payments to providers within 15 business days after notification
 4057  by the agency regarding provider-specific distributions.
 4058         (4) The agency shall develop a methodology and request a
 4059  state plan amendment or waiver that ensures the availability of
 4060  certified public expenditures in the Medicaid managed care
 4061  program to support noninstitutional teaching faculty providers
 4062  that have historically served Medicaid recipients. Such
 4063  providers include allopathic and osteopathic physicians employed
 4064  by or under contract with a medical school in this state. The
 4065  agency shall directly make supplemental payments to teaching
 4066  faculty providers or to a statewide entity acting on behalf of
 4067  state medical schools and teaching faculty providers that
 4068  contract with qualified plans and provide care to Medicaid
 4069  recipients in recognition of the costs associated with graduate
 4070  medical education and training, educating medical school
 4071  students, and access to primary and specialty care provided to
 4072  Medicaid recipients. Physicians employed by or under contract
 4073  with a medical school in this state are eligible for a
 4074  supplemental payment only if there are sufficient certified
 4075  public expenditures available from allowable sources. The agency
 4076  shall evaluate the development of teaching faculty provider
 4077  payments for managed care to accurately reflect the historical
 4078  and underlying as well as current and prospective utilization to
 4079  the maximum extent possible. Any such methodology must preserve
 4080  federal funding to these entities.
 4081         Section 42. Section 409.969, Florida Statutes, is created
 4082  to read:
 4083         409.969Enrollment; disenrollment; grievance procedure.—
 4084         (1) Each Medicaid recipient may choose any available plan
 4085  within the region in which the recipient resides unless that
 4086  plan is a specialty plan for which the recipient does not
 4087  qualify. The agency may not provide or contract for choice
 4088  counseling services for persons enrolling in the Medicaid
 4089  managed care program.
 4090         (2) If a recipient has not made a choice of plans within 30
 4091  days after having been notified to choose a plan, the agency
 4092  shall assign the recipient to a plan in accordance with the
 4093  following:
 4094         (a) A recipient who was previously enrolled in a plan
 4095  within the preceding 90 days shall automatically be enrolled in
 4096  the same plan, if available.
 4097         (b) Newborns of eligible mothers enrolled in a plan at the
 4098  time of the child’s birth shall be enrolled in the mother’s
 4099  plan; however, the mother may choose another plan for the
 4100  newborn within 90 days after the child’s birth.
 4101         (c) If the recipient is diagnosed with HIV/AIDS and resides
 4102  in region 11, region 15, or region 16, the agency shall assign
 4103  the recipient to a plan that:
 4104         1.Is a specialty plan under contract with the agency
 4105  pursuant to s. 409.965; and
 4106         2. Offers a delivery system through a teaching- and
 4107  research-oriented organization that specializes in providing
 4108  health care services and treatment for individuals diagnosed
 4109  with HIV/AIDS.
 4110  
 4111  The agency shall assign recipients under this paragraph on an
 4112  even basis among all such plans within a region under contract
 4113  with the agency.
 4114         (d)A recipient who is currently receiving Medicare
 4115  services from an entity qualified under 42 C.F.R. part 422 as a
 4116  Medicare Advantage health maintenance organization, Medicare
 4117  Advantage coordinated care plan, Medicare Advantage preferred
 4118  provider organization, Medicare Advantage provider-sponsored
 4119  organization, or Medicare Advantage special needs plan that is
 4120  under contract with the agency shall be assigned to that plan
 4121  for the Medicaid services not covered by Medicare for which the
 4122  recipient is eligible.
 4123         (e) Other recipients shall be enrolled into a qualified
 4124  plan in accordance with an auto-assignment enrollment algorithm
 4125  that the agency develops by rule. The algorithm must heavily
 4126  weigh family continuity.
 4127         1. Automatic enrollment of recipients in plans must be
 4128  based on the following criteria:
 4129         a. Whether the plan has sufficient network capacity to meet
 4130  the needs of recipients.
 4131         b. Whether the recipient has previously received services
 4132  from one of the plan’s primary care providers.
 4133         c. Whether primary care providers in one plan are more
 4134  geographically accessible to the recipient’s residence than
 4135  providers in other plans.
 4136         d.If a recipient is eligible for long-term care services,
 4137  whether the recipient has previously received services from one
 4138  of the plan’s home and community-based service providers.
 4139         e.If a recipient is eligible for long-term care services,
 4140  whether the home and community-based providers in one plan are
 4141  more geographically accessible to the recipient’s residence than
 4142  providers in other plans.
 4143         2.The agency shall automatically enroll recipients in
 4144  plans that meet or exceed the performance or quality standards
 4145  established pursuant to s. 409.967, and may not automatically
 4146  enroll recipients in a plan that is not meeting those standards.
 4147  Except as provided by law or rule, the agency may not engage in
 4148  practices that favor one qualified plan over another.
 4149         (3) After a recipient has enrolled in a qualified plan, the
 4150  enrollee shall have 90 days to voluntarily disenroll and select
 4151  another plan. After 90 days, no further changes may be made
 4152  except for good cause. Good cause includes, but is not limited
 4153  to, poor quality of care, lack of access to necessary specialty
 4154  services, an unreasonable delay or denial of service, or
 4155  fraudulent enrollment. The agency shall determine whether good
 4156  cause exists. The agency may require an enrollee to use the
 4157  plan’s grievance process before the agency makes a determination
 4158  of good cause, unless an immediate risk of permanent damage to
 4159  the enrollee’s health is alleged.
 4160         (a) If used, the qualified plan’s internal grievance
 4161  process must be completed in time to allow the enrollee to
 4162  disenroll by the first day of the second month after the month
 4163  the disenrollment request was made. If the grievance process
 4164  approves an enrollee’s request to disenroll, the agency is not
 4165  required to make a determination of good cause.
 4166         (b) The agency must make a determination of good cause and
 4167  take final action on an enrollee’s request so that disenrollment
 4168  occurs by the first day of the second month after the month the
 4169  request was made. If the agency fails to act within this
 4170  timeframe, the enrollee’s request to disenroll is deemed
 4171  approved as of the date agency action was required. Enrollees
 4172  who disagree with the agency’s finding that good cause for
 4173  disenrollment does not exist shall be advised of their right to
 4174  pursue a Medicaid fair hearing to dispute the agency’s finding.
 4175         (c) Medicaid recipients enrolled in a qualified plan after
 4176  the 90-day period must remain in the plan for the remainder of
 4177  the 12-month period. After 12 months, the enrollee may select
 4178  another plan. However, a recipient who is referred for nursing
 4179  home or assisted living facility services may change plans
 4180  within 30 days after such referral. An enrollee may change
 4181  primary care providers within the plan at any time.
 4182         (d) On the first day of the next month after receiving
 4183  notice from a recipient that the recipient has moved to another
 4184  region, the agency shall automatically disenroll the recipient
 4185  from the plan the recipient is currently enrolled in and treat
 4186  the recipient as if the recipient is a new enrollee. At that
 4187  time, the recipient may choose another plan pursuant to the
 4188  enrollment process established in this section.
 4189         Section 43. Section 409.970, Florida Statutes, is created
 4190  to read:
 4191         409.970Medicaid Encounter Data System.—The agency shall
 4192  maintain and operate the Medicaid Encounter Data System to
 4193  collect, process, and report on covered services provided to all
 4194  Medicaid recipients enrolled in qualified plans.
 4195         (1) Qualified plans shall submit encounter data
 4196  electronically in a format that complies with provisions of the
 4197  federal Health Insurance Portability and Accountability Act for
 4198  electronic claims and in accordance with deadlines established
 4199  by the agency. Plans must certify that the data reported is
 4200  accurate and complete. The agency is responsible for validating
 4201  the data submitted by the plans.
 4202         (2) The agency shall develop methods and protocols for
 4203  ongoing analysis of the encounter data, which must adjust for
 4204  differences in the characteristics of enrollees in order to
 4205  allow for the comparison of service utilization among plans. The
 4206  analysis shall be used to identify possible cases of systemic
 4207  overutilization, underutilization, inappropriate denials of
 4208  claims, and inappropriate utilization of covered services, such
 4209  as higher than expected emergency department and pharmacy
 4210  encounters. One of the primary focus areas for the analysis
 4211  shall be the use of prescription drugs.
 4212         (3) The agency shall provide periodic feedback to the plans
 4213  based on the analysis and establish corrective action plans if
 4214  necessary.
 4215         (4) The agency shall make encounter data available to plans
 4216  accepting enrollees who are reassigned to them from other plans
 4217  leaving a region.
 4218         (5) Beginning July 1, 2011, the agency shall conduct
 4219  appropriate tests and establish specific criteria for
 4220  determining whether the Medicaid Encounter Data System has
 4221  valid, complete, and sound data for a sufficient period of time
 4222  to provide qualified plans with a reliable basis for determining
 4223  and proposing actuarially sound payment rates.
 4224         Section 44. Section 409.971, Florida Statutes, is created
 4225  to read:
 4226         409.971Managed care medical assistance.—Pursuant to s.
 4227  409.902, the agency shall administer the managed care medical
 4228  assistance component of the Medicaid managed care program
 4229  described in this section and s. 409.972. Unless otherwise
 4230  specified, the provisions of ss. 409.961-409.970 apply to the
 4231  provision of managed care medical assistance. By December 31,
 4232  2011, the agency shall begin implementation of managed care
 4233  medical assistance, and full implementation in all regions must
 4234  be completed by December 31, 2012.
 4235         Section 45. Section 409.972, Florida Statutes, is created
 4236  to read:
 4237         409.972Managed care medical assistance services.—
 4238         (1) Qualified plans providing managed care medical
 4239  assistance must, at a minimum, cover the following services:
 4240         (a) Ambulatory patient services.
 4241         (b) Dental services for a recipient who is under age 21.
 4242         (c) Dental services as provided in s. 627.419(7) for a
 4243  recipient who is 21 years of age or older.
 4244         (d) Dialysis services.
 4245         (e) Durable medical equipment and supplies.
 4246         (f) Early periodic screening diagnosis and treatment
 4247  services, hearing services and hearing aids, and vision services
 4248  and eyeglasses for enrollees under age 21.
 4249         (g) Emergency services.
 4250         (h) Family planning services. Pursuant to 42 C.F.R. s.
 4251  438.102, plans may elect to not provide this service due to an
 4252  objection on moral or religious grounds, and must notify the
 4253  agency of that election when submitting a reply to the
 4254  invitation to negotiate pursuant to s. 409.963.
 4255         (i) Hearing services for a recipient who is under age 21.
 4256         (j) Hearing services that are medically indicated for a
 4257  recipient who is 21 years of age or older.
 4258         (k) Home health services.
 4259         (l) Hospital inpatient services.
 4260         (m) Hospital outpatient services.
 4261         (n) Laboratory and imaging services.
 4262         (o) Maternity and newborn care and birth center services.
 4263         (p) Mental health services, substance abuse disorder
 4264  services, and behavioral health treatment.
 4265         (q) Prescription drugs.
 4266         (r) Primary care service, referred specialty care services,
 4267  preventive services, and wellness services.
 4268         (s) Skilled nursing facility or inpatient rehabilitation
 4269  facility services.
 4270         (t) Transplant services.
 4271         (u) Transportation to access covered services.
 4272         (v) Vision services for a recipient who is under age 21.
 4273         (w)Vision services that are medically indicated for a
 4274  recipient who is 21 years of age or older.
 4275         (2) Subject to specific appropriations, the agency may make
 4276  payments for services that are optional.
 4277         (3) Qualified plans may customize benefit packages for
 4278  nonpregnant adults, vary cost-sharing provisions, and provide
 4279  coverage for additional services. The agency shall evaluate the
 4280  proposed benefit packages to ensure that services are sufficient
 4281  to meet the needs of the plans’ enrollees and to verify
 4282  actuarial equivalence.
 4283         (4) For Medicaid recipients diagnosed with hemophilia who
 4284  have been prescribed anti-hemophilic-factor replacement
 4285  products, the agency shall provide for those products and
 4286  hemophilia overlay services through the agency’s hemophilia
 4287  disease management program authorized under s. 409.912.
 4288         (5) Managed care medical assistance services provided under
 4289  this section must be medically necessary and provided in
 4290  accordance with state and federal law. This section does not
 4291  prevent the agency from adjusting fees, reimbursement rates,
 4292  lengths of stay, number of visits, or number of services, or
 4293  from making any other adjustments necessary to comply with the
 4294  availability of funding and any limitations or directions
 4295  provided in the General Appropriations Act, chapter 216, or s.
 4296  409.9022.
 4297         Section 46. Section 409.973, Florida Statutes, is created
 4298  to read:
 4299         409.973Managed long-term care.—
 4300         (1) Qualified plans providing managed care medical
 4301  assistance may also participate in the managed long-term care
 4302  component of the Medicaid managed care program. Unless otherwise
 4303  specified, the provisions of ss. 409.961-409.970 apply to the
 4304  managed long-term care component of the managed care program.
 4305         (2) Pursuant to s. 409.902, the agency shall administer the
 4306  managed long-term care component described in this section and
 4307  ss. 409.974-409.978, but may delegate specific duties and
 4308  responsibilities to the Department of Elderly Affairs and other
 4309  state agencies. By March 31, 2012, the agency shall begin
 4310  implementation of the managed long-term care component, with
 4311  full implementation in all regions by March 31, 2013.
 4312         (3) The Department of Elderly Affairs shall assist the
 4313  agency in developing specifications for use in the invitation to
 4314  negotiate and the model contract, determining clinical
 4315  eligibility for enrollment in managed long-term care plans,
 4316  monitoring plan performance and measuring quality of service
 4317  delivery, assisting clients and families in order to address
 4318  complaints with the plans, facilitating working relationships
 4319  between plans and providers serving elders and disabled adults,
 4320  and performing other functions specified in a memorandum of
 4321  agreement.
 4322         Section 47. Section 409.974, Florida Statutes, is created
 4323  to read:
 4324         409.974Recipient eligibility for managed long-term care.—
 4325         (1) Medicaid recipients shall receive covered long-term
 4326  care services through the managed long-term care component of
 4327  the Medicaid managed care program unless excluded pursuant to s.
 4328  409.964. In order to participate in the managed long-term care
 4329  component, the recipient must be:
 4330         (a) Sixty-five years of age or older or eligible for
 4331  Medicaid by reason of a disability; and
 4332         (b)Determined by the Comprehensive Assessment and Review
 4333  for Long-Term Care Services (CARES) Program to meet the criteria
 4334  for nursing facility care.
 4335         (2) Medicaid recipients who are enrolled in one of the
 4336  following Medicaid long-term care waiver programs on the date
 4337  that a managed long-term care plan becomes available in the
 4338  recipient’s region may remain in that program if it is
 4339  operational on that date:
 4340         (a) The Assisted Living for the Frail Elderly Waiver.
 4341         (b) The Aged and Disabled Adult Waiver.
 4342         (c) The Adult Day Health Care Waiver.
 4343         (d) The Consumer-Directed Care Program as described in s.
 4344  409.221.
 4345         (e) The Program of All-inclusive Care for the Elderly.
 4346         (f) The Long-Term Care Community Diversion Pilot Project as
 4347  described in s. 430.705.
 4348         (g) The Channeling Services Waiver for Frail Elders.
 4349         (3) If a long-term care waiver program in which the
 4350  recipient is enrolled ceases to operate, the Medicaid recipient
 4351  may transfer to another long-term care waiver program or to the
 4352  Medicaid managed long-term care component of the Medicaid
 4353  managed care program. If no waivers are operational in the
 4354  recipient’s region and the recipient continues to participate in
 4355  Medicaid, the recipient must transfer to the managed long-term
 4356  care component of the Medicaid managed care program.
 4357         (4) New enrollment in a waiver program ends on the date
 4358  that a managed long-term care plan becomes available in a
 4359  region.
 4360         (5) Medicaid recipients who are residing in a nursing home
 4361  facility on the date that a managed long-term care plan becomes
 4362  available in the recipient’s region are eligible for the long
 4363  term care Medicaid waiver programs.
 4364         (6) This section does not create an entitlement to any home
 4365  and community-based services provided under the managed long
 4366  term care component.
 4367         Section 48. Section 409.975, Florida Statutes, is created
 4368  to read:
 4369         409.975Managed long-term care services.—
 4370         (1) Qualified plans participating in the managed long-term
 4371  care component of the Medicaid managed care program, at a
 4372  minimum, shall cover the following services:
 4373         (a) The services listed in s. 409.972.
 4374         (b) Nursing facility services.
 4375         (c) Home and community-based services, including, but not
 4376  limited to, assisted living facility services.
 4377         (2) Services provided under this section must be medically
 4378  necessary and provided in accordance with state and federal law.
 4379  This section does not prevent the agency from adjusting fees,
 4380  reimbursement rates, lengths of stay, number of visits, or
 4381  number of services, or from making any other adjustments
 4382  necessary to comply with the availability of funding and any
 4383  limitations or directions provided in the General Appropriations
 4384  Act, chapter 216, or s. 409.9022.
 4385         Section 49. Section 409.976, Florida Statutes, is created
 4386  to read:
 4387         409.976Qualified managed long-term care plans.—
 4388         (1) For purposes of managed long-term care, qualified plans
 4389  also include:
 4390         (a) Entities who are qualified under 42 C.F.R. part 422 as
 4391  Medicare Advantage Preferred Provider Organizations, Medicare
 4392  Advantage Provider-sponsored Organizations, and Medicare
 4393  Advantage Special Needs Plans. Such plans may participate in the
 4394  managed long-term care component. A plan submitting a response
 4395  to the invitation to negotiate for the managed long-term care
 4396  component may reference one or more of these entities as part of
 4397  its demonstration of network adequacy for the provision of
 4398  services required under s. 409.972 for dually eligible
 4399  enrollees.
 4400         (b)The Program of All-inclusive Care for the Elderly
 4401  (PACE). Participation by PACE shall be pursuant to a contract
 4402  with the agency and is not subject to the procurement
 4403  requirements of this section. PACE plans may continue to provide
 4404  services to recipients at such levels and enrollment caps as
 4405  authorized by the General Appropriations Act.
 4406         (c) Provider service networks formed by community care for
 4407  the elderly lead agencies. Participation by such networks must
 4408  be pursuant to a contract with the agency and is not subject to
 4409  the procurement requirements of this section.
 4410         (2) The agency shall select qualified plans through the
 4411  procurement described in s. 409.965. The agency shall notice the
 4412  invitation to negotiate by November 14, 2011.
 4413         (3) In addition to the criteria established in s. 409.965,
 4414  the agency shall give preference to the following factors in
 4415  selecting qualified plans:
 4416         (a) The plan’s employment of executive managers having
 4417  expertise and experience in serving aged and disabled persons
 4418  who require long-term care.
 4419         (b) The plan’s establishment of a network of service
 4420  providers dispersed throughout the region and in sufficient
 4421  numbers to meet specific service standards established by the
 4422  agency for a continuum of care, beginning from the provision of
 4423  assistance with the activities of daily living at a recipient’s
 4424  home and the provision of other home and community-based care
 4425  through the provision of nursing home care. These providers
 4426  include:
 4427         1. Adult day centers.
 4428         2. Adult family care homes.
 4429         3. Assisted living facilities.
 4430         4. Health care services pools.
 4431         5. Home health agencies.
 4432         6. Homemaker and companion services.
 4433         7. Community Care for the Elderly lead agencies.
 4434         8. Nurse registries.
 4435         9. Nursing homes.
 4436  
 4437  All providers are not required to be located within the region;
 4438  however, the provider network must be sufficient to ensure that
 4439  services are available throughout the region.
 4440         (c) Whether a plan offers consumer-directed care services
 4441  to enrollees pursuant to s. 409.221 or includes attendant care
 4442  or paid family caregivers in the benefit package. Consumer
 4443  directed care services must provide a flexible budget, which is
 4444  managed by enrollees and their families or representatives, and
 4445  allows them to choose service providers, determine provider
 4446  rates of payment, and direct the delivery of services to best
 4447  meet their special long-term care needs. If all other factors
 4448  are equal among competing qualified plans, the agency shall give
 4449  preference to such plans.
 4450         (d) Evidence that a qualified plan has written agreements
 4451  or signed contracts or has made substantial progress in
 4452  establishing relationships with providers before the plan
 4453  submits a response.
 4454         (e) The availability and accessibility of case managers in
 4455  the plan and provider network.
 4456         Section 50. Section 409.977, Florida Statutes, is created
 4457  to read:
 4458         409.977Managed long-term plan and provider
 4459  accountability.—In addition to the requirements of ss. 409.966
 4460  and 409.967, plans and providers participating in managed long
 4461  term care must comply with s. 641.31(25) and with the specific
 4462  standards established by the agency for the number, type, and
 4463  regional distribution of the following providers in the plan’s
 4464  network, which must include:
 4465         (1) Adult day centers.
 4466         (2) Adult family care homes.
 4467         (3) Assisted living facilities.
 4468         (4) Health care services pools.
 4469         (5) Home health agencies.
 4470         (6) Homemaker and companion services.
 4471         (7) Community Care for the Elderly lead agencies.
 4472         (8) Nurse registries.
 4473         (9) Nursing homes.
 4474         Section 51. Section 409.978, Florida Statutes, is created
 4475  to read:
 4476         409.978CARES program screening; levels of care.—
 4477         (1) The agency shall operate the Comprehensive Assessment
 4478  and Review for Long-Term Care Services (CARES) preadmission
 4479  screening program to ensure that only recipients whose
 4480  conditions require long-term care services are enrolled in
 4481  managed long-term care plans.
 4482         (2) The agency shall operate the CARES program through an
 4483  interagency agreement with the Department of Elderly Affairs.
 4484  The agency, in consultation with the department, may contract
 4485  for any function or activity of the CARES program, including any
 4486  function or activity required by 42 C.F.R. part 483.20, relating
 4487  to preadmission screening and review.
 4488         (3) The CARES program shall determine if a recipient
 4489  requires nursing facility care and, if so, assign the recipient
 4490  to one of the following levels of care:
 4491         (a) Level of care 1 consists of enrollees who require the
 4492  constant availability of routine medical and nursing treatment
 4493  and care, have a limited need for health-related care and
 4494  services, are mildly medically or physically incapacitated, and
 4495  cannot be managed at home due to inadequacy of home-based
 4496  services.
 4497         (b) Level of care 2 consists of enrollees who require the
 4498  constant availability of routine medical and nursing treatment
 4499  and care, and require extensive health-related care and services
 4500  because of mental or physical incapacitation. Current enrollees
 4501  in home and community-based waiver programs for persons who are
 4502  elderly or adults with physical disability, or both, who remain
 4503  financially eligible for Medicaid are not required to meet new
 4504  level-of-care criteria except for immediate placement in a
 4505  nursing home.
 4506         (c) Level of care 3 consists of enrollees residing in
 4507  nursing homes, or needing immediate placement in a nursing home,
 4508  and who have a priority score of 5 or above as determined by
 4509  CARES.
 4510         (4) For recipients whose nursing home stay is initially
 4511  funded by Medicare and Medicare coverage is being terminated for
 4512  lack of progress towards rehabilitation, CARES staff shall
 4513  consult with the person determining the recipient’s progress
 4514  toward rehabilitation in order to ensure that the recipient is
 4515  not being inappropriately disqualified from Medicare coverage.
 4516  If, in their professional judgment, CARES staff believes that a
 4517  Medicare beneficiary is still making progress, they may assist
 4518  the Medicare beneficiary with appealing the disqualification
 4519  from Medicare coverage. The CARES teams may review Medicare
 4520  denials for coverage under this section only if it is determined
 4521  that such reviews qualify for federal matching funds through
 4522  Medicaid. The agency shall seek or amend federal waivers as
 4523  necessary to implement this section.
 4524         Section 52. Section 409.980, Florida Statutes, is created
 4525  to read:
 4526         409.980Prescribed drug services for qualified plans.—The
 4527  agency shall ensure that a qualified plan has transparency and
 4528  patient protections in its prescription drug benefit. The
 4529  qualified plan must, at a minimum:
 4530         (1) Include at least two products, when available, in each
 4531  therapeutic class.
 4532         (2) Make available those drugs and dosage forms listed in
 4533  its preferred drug list.
 4534         (3) Ensure that the prior-authorization process is readily
 4535  available to health care providers, including posting
 4536  appropriate contact information on its website and providing
 4537  timely responses to providers.
 4538         (4) Not arbitrarily deny or reduce the amount, duration, or
 4539  scope of prescriptions based solely on the enrollee’s diagnosis,
 4540  type of illness, or condition. The qualified plan may place
 4541  appropriate limits on prescriptions based on criteria such as
 4542  medical necessity, or for the purpose of utilization control, if
 4543  the plan reasonably expects such limits to achieve the purpose
 4544  of the prescribed drug services set forth in the Medicaid state
 4545  plan.
 4546         (5) Make available those drugs not on its preferred drug
 4547  list, when requested and approved, if drugs on the list have
 4548  been used in a step therapy sequence or if other medical
 4549  documentation is provided.
 4550         (6) Cover the cost of a brand name drug if the prescriber
 4551  writes in his or her own handwriting on the prescription that
 4552  the brand name drug is medically necessary and submits a
 4553  completed multisource drug and miscellaneous prior authorization
 4554  form to the qualified plan indicating that the enrollee has had
 4555  an adverse reaction to a generic drug or has had, in the
 4556  prescriber’s medical opinion, better results when taking the
 4557  brand name drug.
 4558         (7) Ensure that antiretroviral agents are not subject to
 4559  the preferred drug list.
 4560         Section 53. Section 409.91207, Florida Statutes, is
 4561  transferred, renumbered as section 409.985, Florida Statutes,
 4562  and subsection (1) of that section is amended to read:
 4563         409.985 409.91207 Medical home pilot project.—
 4564         (1) The agency shall develop a plan to implement a medical
 4565  home pilot project that uses utilizes primary care case
 4566  management enhanced by medical home networks to provide
 4567  coordinated and cost-effective care that is reimbursed on a fee
 4568  for-service basis and to compare the performance of the medical
 4569  home networks with other existing Medicaid managed care models.
 4570  The agency may is authorized to seek a federal Medicaid waiver
 4571  or an amendment to any existing Medicaid waiver, except for the
 4572  current 1115 Medicaid waiver authorized in s. 409.986 409.91211,
 4573  as needed, to develop the pilot project created in this section
 4574  but must obtain approval of the Legislature before prior to
 4575  implementing the pilot project.
 4576         Section 54. Section 409.91211, Florida Statutes, is
 4577  transferred, renumbered as section 409.986, Florida Statutes,
 4578  and paragraph (aa) of subsection (3) and paragraph (a) of
 4579  subsection (4) of that section are amended, to read:
 4580         409.986 409.91211 Medicaid managed care pilot program.—
 4581         (3) The agency shall have the following powers, duties, and
 4582  responsibilities with respect to the pilot program:
 4583         (aa) To implement a mechanism whereby Medicaid recipients
 4584  who are already enrolled in a managed care plan or the MediPass
 4585  program in the pilot areas are shall be offered the opportunity
 4586  to change to capitated managed care plans on a staggered basis,
 4587  as defined by the agency. All Medicaid recipients shall have 30
 4588  days in which to make a choice of capitated managed care plans.
 4589  Those Medicaid recipients who do not make a choice shall be
 4590  assigned to a capitated managed care plan in accordance with
 4591  paragraph (4)(a) and shall be exempt from s. 409.987 409.9122.
 4592  To facilitate continuity of care for a Medicaid recipient who is
 4593  also a recipient of Supplemental Security Income (SSI), prior to
 4594  assigning the SSI recipient to a capitated managed care plan,
 4595  the agency shall determine whether the SSI recipient has an
 4596  ongoing relationship with a provider or capitated managed care
 4597  plan, and, if so, the agency shall assign the SSI recipient to
 4598  that provider or capitated managed care plan where feasible.
 4599  Those SSI recipients who do not have such a provider
 4600  relationship shall be assigned to a capitated managed care plan
 4601  provider in accordance with paragraph (4)(a) and shall be exempt
 4602  from s. 409.987 409.9122.
 4603         (4)(a) A Medicaid recipient in the pilot area who is not
 4604  currently enrolled in a capitated managed care plan upon
 4605  implementation is not eligible for services as specified in ss.
 4606  409.905 and 409.906, for the amount of time that the recipient
 4607  does not enroll in a capitated managed care network. If a
 4608  Medicaid recipient has not enrolled in a capitated managed care
 4609  plan within 30 days after eligibility, the agency shall assign
 4610  the Medicaid recipient to a capitated managed care plan based on
 4611  the assessed needs of the recipient as determined by the agency
 4612  and the recipient shall be exempt from s. 409.987 409.9122. When
 4613  making assignments, the agency shall take into account the
 4614  following criteria:
 4615         1. A capitated managed care network has sufficient network
 4616  capacity to meet the needs of members.
 4617         2. The capitated managed care network has previously
 4618  enrolled the recipient as a member, or one of the capitated
 4619  managed care network’s primary care providers has previously
 4620  provided health care to the recipient.
 4621         3. The agency has knowledge that the member has previously
 4622  expressed a preference for a particular capitated managed care
 4623  network as indicated by Medicaid fee-for-service claims data,
 4624  but has failed to make a choice.
 4625         4. The capitated managed care network’s primary care
 4626  providers are geographically accessible to the recipient’s
 4627  residence.
 4628         Section 55. Section 409.9122, Florida Statutes, is
 4629  transferred, renumbered as section 409.987, and paragraph (a) of
 4630  subsection (2) of that section is amended to read:
 4631         409.987 409.9122 Mandatory Medicaid managed care
 4632  enrollment; programs and procedures.—
 4633         (2)(a) The agency shall enroll all Medicaid recipients in a
 4634  managed care plan or MediPass all Medicaid recipients, except
 4635  those Medicaid recipients who are: in an institution, receiving
 4636  a Medicaid nonpoverty medical subsidy,; enrolled in the Medicaid
 4637  medically needy Program; or eligible for both Medicaid and
 4638  Medicare. Upon enrollment, recipients may individuals will be
 4639  able to change their managed care option during the 90-day opt
 4640  out period required by federal Medicaid regulations. The agency
 4641  may is authorized to seek the necessary Medicaid state plan
 4642  amendment to implement this policy. However, to the extent
 4643         1. If permitted by federal law, the agency may enroll in a
 4644  managed care plan or MediPass a Medicaid recipient who is exempt
 4645  from mandatory managed care enrollment in a managed care plan or
 4646  MediPass if, provided that:
 4647         a.1. The recipient’s decision to enroll in a managed care
 4648  plan or MediPass is voluntary;
 4649         b.2.If The recipient chooses to enroll in a managed care
 4650  plan, the agency has determined that the managed care plan
 4651  provides specific programs and services that which address the
 4652  special health needs of the recipient; and
 4653         c.3. The agency receives the any necessary waivers from the
 4654  federal Centers for Medicare and Medicaid Services.
 4655         2. The agency shall develop rules to establish policies by
 4656  which exceptions to the mandatory managed care enrollment
 4657  requirement may be made on a case-by-case basis. The rules must
 4658  shall include the specific criteria to be applied when
 4659  determining making a determination as to whether to exempt a
 4660  recipient from mandatory enrollment in a managed care plan or
 4661  MediPass.
 4662         3. School districts participating in the certified school
 4663  match program pursuant to ss. 409.908(21) and 1011.70 shall be
 4664  reimbursed by Medicaid, subject to the limitations of s.
 4665  1011.70(1), for a Medicaid-eligible child participating in the
 4666  services as authorized in s. 1011.70, as provided for in s.
 4667  409.9071, regardless of whether the child is enrolled in
 4668  MediPass or a managed care plan. Managed care plans must shall
 4669  make a good faith effort to execute agreements with school
 4670  districts regarding the coordinated provision of services
 4671  authorized under s. 1011.70.
 4672         4. County health departments delivering school-based
 4673  services pursuant to ss. 381.0056 and 381.0057 shall be
 4674  reimbursed by Medicaid for the federal share for a Medicaid
 4675  eligible child who receives Medicaid-covered services in a
 4676  school setting, regardless of whether the child is enrolled in
 4677  MediPass or a managed care plan. Managed care plans shall make a
 4678  good faith effort to execute agreements with county health
 4679  departments that coordinate the regarding the coordinated
 4680  provision of services to a Medicaid-eligible child. To ensure
 4681  continuity of care for Medicaid patients, the agency, the
 4682  Department of Health, and the Department of Education shall
 4683  develop procedures for ensuring that a student’s managed care
 4684  plan or MediPass provider receives information relating to
 4685  services provided in accordance with ss. 381.0056, 381.0057,
 4686  409.9071, and 1011.70.
 4687         Section 56. Section 409.9123, Florida Statutes, is
 4688  transferred and renumbered as section 409.988, Florida Statutes.
 4689         Section 57. Section 409.9124, Florida Statutes, is
 4690  transferred and renumbered as section 409.989.
 4691         Section 58. Subsection (15) of section 430.04, Florida
 4692  Statutes, is amended to read:
 4693         430.04 Duties and responsibilities of the Department of
 4694  Elderly Affairs.—The Department of Elderly Affairs shall:
 4695         (15) Administer all Medicaid waivers and programs relating
 4696  to elders and their appropriations. The waivers include, but are
 4697  not limited to:
 4698         (a) The Alzheimer’s Dementia-Specific Medicaid Waiver as
 4699  established in s. 430.502(7), (8), and (9).
 4700         (a)(b) The Assisted Living for the Frail Elderly Waiver.
 4701         (b)(c) The Aged and Disabled Adult Waiver.
 4702         (c)(d) The Adult Day Health Care Waiver.
 4703         (d)(e) The Consumer-Directed Care Plus Program as defined
 4704  in s. 409.221.
 4705         (e)(f) The Program of All-inclusive Care for the Elderly.
 4706         (f)(g) The Long-Term Care Community-Based Diversion Pilot
 4707  Project as described in s. 430.705.
 4708         (g)(h) The Channeling Services Waiver for Frail Elders.
 4709  
 4710  The department shall develop a transition plan for recipients
 4711  receiving services under long-term care Medicaid waivers for
 4712  elders or disabled adults on the date qualified plans become
 4713  available in each recipient’s region pursuant to s. 409.973(2)
 4714  in order to enroll those recipients in qualified plans.
 4715         Section 59. Section 430.2053, Florida Statutes, is amended
 4716  to read:
 4717         430.2053 Aging resource centers.—
 4718         (1) The department, in consultation with the Agency for
 4719  Health Care Administration and the Department of Children and
 4720  Family Services, shall develop pilot projects for aging resource
 4721  centers. By October 31, 2004, the department, in consultation
 4722  with the agency and the Department of Children and Family
 4723  Services, shall develop an implementation plan for aging
 4724  resource centers and submit the plan to the Governor, the
 4725  President of the Senate, and the Speaker of the House of
 4726  Representatives. The plan must include qualifications for
 4727  designation as a center, the functions to be performed by each
 4728  center, and a process for determining that a current area agency
 4729  on aging is ready to assume the functions of an aging resource
 4730  center.
 4731         (2) Each area agency on aging shall develop, in
 4732  consultation with the existing community care for the elderly
 4733  lead agencies within their planning and service areas, a
 4734  proposal that describes the process the area agency on aging
 4735  intends to undertake to transition to an aging resource center
 4736  prior to July 1, 2005, and that describes the area agency’s
 4737  compliance with the requirements of this section. The proposals
 4738  must be submitted to the department prior to December 31, 2004.
 4739  The department shall evaluate all proposals for readiness and,
 4740  prior to March 1, 2005, shall select three area agencies on
 4741  aging which meet the requirements of this section to begin the
 4742  transition to aging resource centers. Those area agencies on
 4743  aging which are not selected to begin the transition to aging
 4744  resource centers shall, in consultation with the department and
 4745  the existing community care for the elderly lead agencies within
 4746  their planning and service areas, amend their proposals as
 4747  necessary and resubmit them to the department prior to July 1,
 4748  2005. The department may transition additional area agencies to
 4749  aging resource centers as it determines that area agencies are
 4750  in compliance with the requirements of this section.
 4751         (3) The Auditor General and the Office of Program Policy
 4752  Analysis and Government Accountability (OPPAGA) shall jointly
 4753  review and assess the department’s process for determining an
 4754  area agency’s readiness to transition to an aging resource
 4755  center.
 4756         (a) The review must, at a minimum, address the
 4757  appropriateness of the department’s criteria for selection of an
 4758  area agency to transition to an aging resource center, the
 4759  instruments applied, the degree to which the department
 4760  accurately determined each area agency’s compliance with the
 4761  readiness criteria, the quality of the technical assistance
 4762  provided by the department to an area agency in correcting any
 4763  weaknesses identified in the readiness assessment, and the
 4764  degree to which each area agency overcame any identified
 4765  weaknesses.
 4766         (b) Reports of these reviews must be submitted to the
 4767  appropriate substantive and appropriations committees in the
 4768  Senate and the House of Representatives on March 1 and September
 4769  1 of each year until full transition to aging resource centers
 4770  has been accomplished statewide, except that the first report
 4771  must be submitted by February 1, 2005, and must address all
 4772  readiness activities undertaken through December 31, 2004. The
 4773  perspectives of all participants in this review process must be
 4774  included in each report.
 4775         (2)(4) The purposes of an aging resource center are shall
 4776  be:
 4777         (a) To provide Florida’s elders and their families with a
 4778  locally focused, coordinated approach to integrating information
 4779  and referral for all available services for elders with the
 4780  eligibility determination entities for state and federally
 4781  funded long-term-care services.
 4782         (b) To provide for easier access to long-term-care services
 4783  by Florida’s elders and their families by creating multiple
 4784  access points to the long-term-care network that flow through
 4785  one established entity with wide community recognition.
 4786         (3)(5) The duties of an aging resource center are to:
 4787         (a) Develop referral agreements with local community
 4788  service organizations, such as senior centers, existing elder
 4789  service providers, volunteer associations, and other similar
 4790  organizations, to better assist clients who do not need or do
 4791  not wish to enroll in programs funded by the department or the
 4792  agency. The referral agreements must also include a protocol,
 4793  developed and approved by the department, which provides
 4794  specific actions that an aging resource center and local
 4795  community service organizations must take when an elder or an
 4796  elder’s representative seeking information on long-term-care
 4797  services contacts a local community service organization prior
 4798  to contacting the aging resource center. The protocol shall be
 4799  designed to ensure that elders and their families are able to
 4800  access information and services in the most efficient and least
 4801  cumbersome manner possible.
 4802         (b) Provide an initial screening of all clients who request
 4803  long-term-care services to determine whether the person would be
 4804  most appropriately served through any combination of federally
 4805  funded programs, state-funded programs, locally funded or
 4806  community volunteer programs, or private funding for services.
 4807         (c) Determine eligibility for the programs and services
 4808  listed in subsection (9) (11) for persons residing within the
 4809  geographic area served by the aging resource center and
 4810  determine a priority ranking for services which is based upon
 4811  the potential recipient’s frailty level and likelihood of
 4812  institutional placement without such services.
 4813         (d) Manage the availability of financial resources for the
 4814  programs and services listed in subsection (9) (11) for persons
 4815  residing within the geographic area served by the aging resource
 4816  center.
 4817         (e) If When financial resources become available, refer a
 4818  client to the most appropriate entity to begin receiving
 4819  services. The aging resource center shall make referrals to lead
 4820  agencies for service provision that ensure that individuals who
 4821  are vulnerable adults in need of services pursuant to s.
 4822  415.104(3)(b), or who are victims of abuse, neglect, or
 4823  exploitation in need of immediate services to prevent further
 4824  harm and are referred by the adult protective services program,
 4825  are given primary consideration for receiving community-care
 4826  for-the-elderly services in compliance with the requirements of
 4827  s. 430.205(5)(a) and that other referrals for services are in
 4828  compliance with s. 430.205(5)(b).
 4829         (f) Convene a work group to advise in the planning,
 4830  implementation, and evaluation of the aging resource center. The
 4831  work group shall be composed comprised of representatives of
 4832  local service providers, Alzheimer’s Association chapters,
 4833  housing authorities, social service organizations, advocacy
 4834  groups, representatives of clients receiving services through
 4835  the aging resource center, and any other persons or groups as
 4836  determined by the department. The aging resource center, in
 4837  consultation with the work group, must develop annual program
 4838  improvement plans that shall be submitted to the department for
 4839  consideration. The department shall review each annual
 4840  improvement plan and make recommendations on how to implement
 4841  the components of the plan.
 4842         (g) Enhance the existing area agency on aging in each
 4843  planning and service area by integrating, either physically or
 4844  virtually, the staff and services of the area agency on aging
 4845  with the staff of the department’s local CARES Medicaid nursing
 4846  home preadmission screening unit and a sufficient number of
 4847  staff from the Department of Children and Family Services’
 4848  Economic Self-Sufficiency Unit necessary to determine the
 4849  financial eligibility for all persons age 60 and older residing
 4850  within the area served by the aging resource center who that are
 4851  seeking Medicaid services, Supplemental Security Income, and
 4852  food assistance.
 4853         (h) Assist clients who request long-term care services in
 4854  being evaluated for eligibility for the long-term care managed
 4855  care component of the Medicaid managed care program as qualified
 4856  plans become available in each of the regions pursuant to s.
 4857  409.973(2).
 4858         (i) Provide enrollment and coverage information to Medicaid
 4859  managed long-term care enrollees as qualified plans become
 4860  available in each of the regions pursuant to s. 409.973(2).
 4861         (j) Assist enrollees in the Medicaid long-term care managed
 4862  care program with informally resolving grievances with a managed
 4863  care network and in accessing the managed care network’s formal
 4864  grievance process as qualified plans become available in each of
 4865  the regions pursuant to s. 409.973(2).
 4866         (4)(6) The department shall select the entities to become
 4867  aging resource centers based on each entity’s readiness and
 4868  ability to perform the duties listed in subsection (3) (5) and
 4869  the entity’s:
 4870         (a) Expertise in the needs of each target population the
 4871  center proposes to serve and a thorough knowledge of the
 4872  providers that serve these populations.
 4873         (b) Strong connections to service providers, volunteer
 4874  agencies, and community institutions.
 4875         (c) Expertise in information and referral activities.
 4876         (d) Knowledge of long-term-care resources, including
 4877  resources designed to provide services in the least restrictive
 4878  setting.
 4879         (e) Financial solvency and stability.
 4880         (f) Ability to collect, monitor, and analyze data in a
 4881  timely and accurate manner, along with systems that meet the
 4882  department’s standards.
 4883         (g) Commitment to adequate staffing by qualified personnel
 4884  to effectively perform all functions.
 4885         (h) Ability to meet all performance standards established
 4886  by the department.
 4887         (5)(7) The aging resource center shall have a governing
 4888  body which shall be the same entity described in s. 20.41(7),
 4889  and an executive director who may be the same person as
 4890  described in s. 20.41(7). The governing body shall annually
 4891  evaluate the performance of the executive director.
 4892         (6)(8) The aging resource center may not be a provider of
 4893  direct services other than information and referral services,
 4894  and screening.
 4895         (7)(9) The aging resource center must agree to allow the
 4896  department to review any financial information the department
 4897  determines is necessary for monitoring or reporting purposes,
 4898  including financial relationships.
 4899         (8)(10) The duties and responsibilities of the community
 4900  care for the elderly lead agencies within each area served by an
 4901  aging resource center shall be to:
 4902         (a) Develop strong community partnerships to maximize the
 4903  use of community resources for the purpose of assisting elders
 4904  to remain in their community settings for as long as it is
 4905  safely possible.
 4906         (b) Conduct comprehensive assessments of clients that have
 4907  been determined eligible and develop a care plan consistent with
 4908  established protocols that ensures that the unique needs of each
 4909  client are met.
 4910         (9)(11) The services to be administered through the aging
 4911  resource center shall include those funded by the following
 4912  programs:
 4913         (a) Community care for the elderly.
 4914         (b) Home care for the elderly.
 4915         (c) Contracted services.
 4916         (d) Alzheimer’s disease initiative.
 4917         (e) Aged and disabled adult Medicaid waiver.
 4918         (f) Assisted living for the frail elderly Medicaid waiver.
 4919         (g) Older Americans Act.
 4920         (10)(12) The department shall, prior to designation of an
 4921  aging resource center, develop by rule operational and quality
 4922  assurance standards and outcome measures to ensure that clients
 4923  receiving services through all long-term-care programs
 4924  administered through an aging resource center are receiving the
 4925  appropriate care they require and that contractors and
 4926  subcontractors are adhering to the terms of their contracts and
 4927  are acting in the best interests of the clients they are
 4928  serving, consistent with the intent of the Legislature to reduce
 4929  the use of and cost of nursing home care. The department shall
 4930  by rule provide operating procedures for aging resource centers,
 4931  which shall include:
 4932         (a) Minimum standards for financial operation, including
 4933  audit procedures.
 4934         (b) Procedures for monitoring and sanctioning of service
 4935  providers.
 4936         (c) Minimum standards for technology utilized by the aging
 4937  resource center.
 4938         (d) Minimum staff requirements which shall ensure that the
 4939  aging resource center employs sufficient quality and quantity of
 4940  staff to adequately meet the needs of the elders residing within
 4941  the area served by the aging resource center.
 4942         (e) Minimum accessibility standards, including hours of
 4943  operation.
 4944         (f) Minimum oversight standards for the governing body of
 4945  the aging resource center to ensure its continuous involvement
 4946  in, and accountability for, all matters related to the
 4947  development, implementation, staffing, administration, and
 4948  operations of the aging resource center.
 4949         (g) Minimum education and experience requirements for
 4950  executive directors and other executive staff positions of aging
 4951  resource centers.
 4952         (h) Minimum requirements regarding any executive staff
 4953  positions that the aging resource center must employ and minimum
 4954  requirements that a candidate must meet in order to be eligible
 4955  for appointment to such positions.
 4956         (11)(13) In an area in which the department has designated
 4957  an area agency on aging as an aging resource center, the
 4958  department and the agency may shall not make payments for the
 4959  services listed in subsection (9) (11) and the Long-Term Care
 4960  Community Diversion Project for such persons who were not
 4961  screened and enrolled through the aging resource center. The
 4962  department shall cease making these payments for enrollees in
 4963  qualified plans as qualified plans become available in each of
 4964  the regions pursuant to s. 409.973(2).
 4965         (12)(14) Each aging resource center shall enter into a
 4966  memorandum of understanding with the department for
 4967  collaboration with the CARES unit staff. The memorandum of
 4968  understanding must shall outline the staff person responsible
 4969  for each function and shall provide the staffing levels
 4970  necessary to carry out the functions of the aging resource
 4971  center.
 4972         (13)(15) Each aging resource center shall enter into a
 4973  memorandum of understanding with the Department of Children and
 4974  Family Services for collaboration with the Economic Self
 4975  Sufficiency Unit staff. The memorandum of understanding must
 4976  shall outline which staff persons are responsible for which
 4977  functions and shall provide the staffing levels necessary to
 4978  carry out the functions of the aging resource center.
 4979         (14)(16) If any of the state activities described in this
 4980  section are outsourced, either in part or in whole, the contract
 4981  executing the outsourcing must shall mandate that the contractor
 4982  or its subcontractors shall, either physically or virtually,
 4983  execute the provisions of the memorandum of understanding
 4984  instead of the state entity whose function the contractor or
 4985  subcontractor now performs.
 4986         (15)(17) In order to be eligible to begin transitioning to
 4987  an aging resource center, an area agency on aging board must
 4988  ensure that the area agency on aging which it oversees meets all
 4989  of the minimum requirements set by law and in rule.
 4990         (18) The department shall monitor the three initial
 4991  projects for aging resource centers and report on the progress
 4992  of those projects to the Governor, the President of the Senate,
 4993  and the Speaker of the House of Representatives by June 30,
 4994  2005. The report must include an evaluation of the
 4995  implementation process.
 4996         (16)(19)(a) Once an aging resource center is operational,
 4997  the department, in consultation with the agency, may develop
 4998  capitation rates for any of the programs administered through
 4999  the aging resource center. Capitation rates for programs must
 5000  shall be based on the historical cost experience of the state in
 5001  providing those same services to the population age 60 or older
 5002  residing within each area served by an aging resource center.
 5003  Each capitated rate may vary by geographic area as determined by
 5004  the department.
 5005         (b) The department and the agency may determine for each
 5006  area served by an aging resource center whether it is
 5007  appropriate, consistent with federal and state laws and
 5008  regulations, to develop and pay separate capitated rates for
 5009  each program administered through the aging resource center or
 5010  to develop and pay capitated rates for service packages which
 5011  include more than one program or service administered through
 5012  the aging resource center.
 5013         (c) Once capitation rates have been developed and certified
 5014  as actuarially sound, the department and the agency may pay
 5015  service providers the capitated rates for services if when
 5016  appropriate.
 5017         (d) The department, in consultation with the agency, shall
 5018  annually reevaluate and recertify the capitation rates,
 5019  adjusting forward to account for inflation, programmatic
 5020  changes.
 5021         (20) The department, in consultation with the agency, shall
 5022  submit to the Governor, the President of the Senate, and the
 5023  Speaker of the House of Representatives, by December 1, 2006, a
 5024  report addressing the feasibility of administering the following
 5025  services through aging resource centers beginning July 1, 2007:
 5026         (a) Medicaid nursing home services.
 5027         (b) Medicaid transportation services.
 5028         (c) Medicaid hospice care services.
 5029         (d) Medicaid intermediate care services.
 5030         (e) Medicaid prescribed drug services.
 5031         (f) Medicaid assistive care services.
 5032         (g) Any other long-term-care program or Medicaid service.
 5033         (17)(21) This section does shall not be construed to allow
 5034  an aging resource center to restrict, manage, or impede the
 5035  local fundraising activities of service providers.
 5036         Section 60. Paragraph (b) of subsection (2) of section
 5037  641.316, Florida Statutes, is amended to read:
 5038         641.316 Fiscal intermediary services.—
 5039         (2)
 5040         (b) The term “fiscal intermediary services organization”
 5041  means a person or entity that performs fiduciary or fiscal
 5042  intermediary services to health care professionals who contract
 5043  with health maintenance organizations other than a hospital
 5044  licensed under chapter 395, an insurer licensed under chapter
 5045  624, a third-party administrator licensed under chapter 626, a
 5046  prepaid limited health service organization licensed under
 5047  chapter 636, a health maintenance organization licensed under
 5048  this chapter, a qualified plan authorized under part IV of
 5049  chapter 409, or a physician group practice as defined in s.
 5050  456.053(3)(h) which provides services under the scope of
 5051  licenses of the members of the group practice.
 5052         Section 61. Paragraphs (c) and (d) of subsection (3) of
 5053  section 39.407, Florida Statutes, are amended to read:
 5054         39.407 Medical, psychiatric, and psychological examination
 5055  and treatment of child; physical, mental, or substance abuse
 5056  examination of person with or requesting child custody.—
 5057         (3)
 5058         (c) Except as provided in paragraphs (b) and (e), the
 5059  department must file a motion seeking the court’s authorization
 5060  to initially provide or continue to provide psychotropic
 5061  medication to a child in its legal custody. The motion must be
 5062  supported by a written report prepared by the department which
 5063  describes the efforts made to enable the prescribing physician
 5064  to obtain express and informed consent to provide for providing
 5065  the medication to the child and other treatments considered or
 5066  recommended for the child. In addition, The motion must also be
 5067  supported by the prescribing physician’s signed medical report
 5068  providing:
 5069         1. The name of the child, the name and range of the dosage
 5070  of the psychotropic medication, and the that there is a need to
 5071  prescribe psychotropic medication to the child based upon a
 5072  diagnosed condition for which such medication is being
 5073  prescribed.
 5074         2. A statement indicating that the physician has reviewed
 5075  all medical information concerning the child which has been
 5076  provided.
 5077         3. A statement indicating that the psychotropic medication,
 5078  at its prescribed dosage, is appropriate for treating the
 5079  child’s diagnosed medical condition, as well as the behaviors
 5080  and symptoms the medication, at its prescribed dosage, is
 5081  expected to address.
 5082         4. An explanation of the nature and purpose of the
 5083  treatment; the recognized side effects, risks, and
 5084  contraindications of the medication; drug-interaction
 5085  precautions; the possible effects of stopping the medication;
 5086  and how the treatment will be monitored, followed by a statement
 5087  indicating that this explanation was provided to the child if
 5088  age appropriate and to the child’s caregiver.
 5089         5. Documentation addressing whether the psychotropic
 5090  medication will replace or supplement any other currently
 5091  prescribed medications or treatments; the length of time the
 5092  child is expected to be taking the medication; and any
 5093  additional medical, mental health, behavioral, counseling, or
 5094  other services that the prescribing physician recommends.
 5095         6. For a child 10 years of age or younger who is in an out
 5096  of-home placement, the results of a review of the administration
 5097  of the medication by a child psychiatrist who is licensed under
 5098  chapter 458 or chapter 459. The review must be provided to the
 5099  child and the parent or legal guardian before final express and
 5100  informed consent is given. The review must include a
 5101  determination of the following:
 5102         a. The presence of a genetic psychiatric disorder or a
 5103  family history of a psychiatric disorder;
 5104         b. Whether the cause of a psychiatric disorder is physical
 5105  or environmental; and
 5106         c. The likelihood of the child being an imminent danger to
 5107  self or others.
 5108         (d)1. The department must notify all parties of the
 5109  proposed action taken under paragraph (c) in writing or by
 5110  whatever other method best ensures that all parties receive
 5111  notification of the proposed action within 48 hours after the
 5112  motion is filed. If any party objects to the department’s
 5113  motion, that party shall file the objection within 2 working
 5114  days after being notified of the department’s motion. If any
 5115  party files an objection to the authorization of the proposed
 5116  psychotropic medication, the court shall hold a hearing as soon
 5117  as possible before authorizing the department to initially
 5118  provide or to continue providing psychotropic medication to a
 5119  child in the legal custody of the department.
 5120         1. At such hearing and notwithstanding s. 90.803, the
 5121  medical report described in paragraph (c) is admissible in
 5122  evidence. The prescribing physician need not attend the hearing
 5123  or testify unless the court specifically orders such attendance
 5124  or testimony, or a party subpoenas the physician to attend the
 5125  hearing or provide testimony.
 5126         2. If, after considering any testimony received, the court
 5127  finds that the department’s motion and the physician’s medical
 5128  report meet the requirements of this subsection and that it is
 5129  in the child’s best interests, the court may order that the
 5130  department provide or continue to provide the psychotropic
 5131  medication to the child without additional testimony or
 5132  evidence.
 5133         3. At any hearing held under this paragraph, the court
 5134  shall further inquire of the department as to whether additional
 5135  medical, mental health, behavioral, counseling, or other
 5136  services are being provided to the child by the department which
 5137  the prescribing physician considers to be necessary or
 5138  beneficial in treating the child’s medical condition and which
 5139  the physician recommends or expects to provide to the child in
 5140  concert with the medication. The court may order additional
 5141  medical consultation, including consultation with the MedConsult
 5142  line at the University of Florida, if available, or require the
 5143  department to obtain a second opinion within a reasonable
 5144  timeframe as established by the court, not to exceed 21 calendar
 5145  days, after such order based upon consideration of the best
 5146  interests of the child. The department must make a referral for
 5147  an appointment for a second opinion with a physician within 1
 5148  working day.
 5149         4. The court may not order the discontinuation of
 5150  prescribed psychotropic medication if such order is contrary to
 5151  the decision of the prescribing physician unless the court first
 5152  obtains an opinion from a licensed psychiatrist, if available,
 5153  or, if not available, a physician licensed under chapter 458 or
 5154  chapter 459, stating that more likely than not, discontinuing
 5155  the medication would not cause significant harm to the child.
 5156  If, however, the prescribing psychiatrist specializes in mental
 5157  health care for children and adolescents, the court may not
 5158  order the discontinuation of prescribed psychotropic medication
 5159  unless the required opinion is also from a psychiatrist who
 5160  specializes in mental health care for children and adolescents.
 5161  The court may also order the discontinuation of prescribed
 5162  psychotropic medication if a child’s treating physician,
 5163  licensed under chapter 458 or chapter 459, states that
 5164  continuing the prescribed psychotropic medication would cause
 5165  significant harm to the child due to a diagnosed nonpsychiatric
 5166  medical condition.
 5167         5. If a child who is in out-of-home placement is 10 years
 5168  of age or younger, psychotropic medication may not be authorized
 5169  by the court absent a finding of a compelling governmental
 5170  interest. In making such finding, the court shall review the
 5171  psychiatric review described in subparagraph (c)6.
 5172         6.2. The burden of proof at any hearing held under this
 5173  paragraph shall be by a preponderance of the evidence.
 5174         Section 62. Paragraph (a) of subsection (1) of section
 5175  216.262, Florida Statutes, is amended to read:
 5176         216.262 Authorized positions.—
 5177         (1)(a) Except as Unless otherwise expressly provided by
 5178  law, the total number of authorized positions may not exceed the
 5179  total provided in the appropriations acts. If a In the event any
 5180  state agency or entity of the judicial branch finds that the
 5181  number of positions so provided is not sufficient to administer
 5182  its authorized programs, it may file an application with the
 5183  Executive Office of the Governor or the Chief Justice; and, if
 5184  the Executive Office of the Governor or Chief Justice certifies
 5185  that there are no authorized positions available for addition,
 5186  deletion, or transfer within the agency or entity as provided in
 5187  paragraph (c), may recommend and recommends an increase in the
 5188  number of positions.,
 5189         1. The Governor or the Chief Justice may recommend an
 5190  increase in the number of positions for the following reasons
 5191  only:
 5192         a.1. To implement or provide for continuing federal grants
 5193  or changes in grants not previously anticipated.
 5194         b.2. To meet emergencies pursuant to s. 252.36.
 5195         c.3. To satisfy new federal regulations or changes therein.
 5196         d.4. To take advantage of opportunities to reduce operating
 5197  expenditures or to increase the revenues of the state or local
 5198  government.
 5199         e.5. To authorize positions that were not fixed by the
 5200  Legislature due to through error in drafting the appropriations
 5201  acts.
 5202         2. Actions recommended pursuant to this paragraph are
 5203  subject to approval by the Legislative Budget Commission. The
 5204  certification and the final authorization shall be provided to
 5205  the Legislative Budget Commission, the legislative
 5206  appropriations committees, and the Auditor General.
 5207         3. The provisions of this paragraph do not apply to
 5208  positions in the Department of Health which are funded by the
 5209  County Health Department Trust Fund.
 5210         Section 63. Section 381.06014, Florida Statutes, is amended
 5211  to read:
 5212         381.06014 Blood establishments.—
 5213         (1) As used in this section, the term:
 5214         (a) “Blood establishment” means any person, entity, or
 5215  organization, operating within the state, which examines an
 5216  individual for the purpose of blood donation or which collects,
 5217  processes, stores, tests, or distributes blood or blood
 5218  components collected from the human body for the purpose of
 5219  transfusion, for any other medical purpose, or for the
 5220  production of any biological product. A person, entity, or
 5221  organization that uses a mobile unit to conduct such activities
 5222  within the state is also a blood establishment.
 5223         (b) “Volunteer donor” means a person who does not receive
 5224  remuneration, other than an incentive, for a blood donation
 5225  intended for transfusion, and the product container of the
 5226  donation from the person qualifies for labeling with the
 5227  statement “volunteer donor” under 21 C.F.R. s. 606.121.
 5228         (2) An entity or organization may not hold itself out and
 5229  engage in the activities of a Any blood establishment in this
 5230  state operating in the state may not conduct any activity
 5231  defined in subsection (1) unless it operates in accordance that
 5232  blood establishment is operated in a manner consistent with the
 5233  provisions of Title 21 C.F.R. parts 211 and 600-640, Code of
 5234  Federal Regulations.
 5235         (3) A Any blood establishment determined to be operating in
 5236  the state in a manner not consistent with the provisions of
 5237  Title 21 C.F.R. parts 211 and 600-640, Code of Federal
 5238  Regulations, and in a manner that constitutes a danger to the
 5239  health or well-being of donors or recipients as evidenced by the
 5240  federal Food and Drug Administration’s inspection reports and
 5241  the revocation of the blood establishment’s license or
 5242  registration is shall be in violation of this chapter, and shall
 5243  immediately cease all operations in the state.
 5244         (4) The operation of a blood establishment in a manner not
 5245  consistent with the provisions of Title 21 parts 211 and 600
 5246  640, Code of Federal Regulations, and in a manner that
 5247  constitutes a danger to the health or well-being of blood donors
 5248  or recipients as evidenced by the federal Food and Drug
 5249  Administration’s inspection process is declared a nuisance and
 5250  inimical to the public health, welfare, and safety, and must
 5251  immediately cease all operations in this state. The Agency for
 5252  Health Care Administration or any state attorney may bring an
 5253  action for an injunction to restrain such operations or enjoin
 5254  the future operation of the blood establishment.
 5255         (4) A local government may not restrict access to or the
 5256  use of any public facility or infrastructure for the collection
 5257  of blood or blood components from volunteer donors based on
 5258  whether the blood establishment is operating as a for-profit or
 5259  not-for-profit organization.
 5260         (5) In determining the service fee of blood or blood
 5261  components received from volunteer donors and sold to hospitals
 5262  or other health care providers, a blood establishment may not
 5263  base the service fee of the blood or blood component solely on
 5264  whether the purchasing entity is a for-profit or not-for-profit
 5265  organization.
 5266         (6) A blood establishment that collects blood or blood
 5267  components from volunteer donors must disclose the following
 5268  information on its Internet website in order to educate and
 5269  inform donors and the public about the blood establishment’s
 5270  activities, and the information required to be disclosed may be
 5271  cumulative for all blood establishments within a business
 5272  entity:
 5273         (a) A description of the steps involved in collecting,
 5274  processing, and distributing volunteer donations.
 5275         (b) By March 1 of each year, the number of units of blood
 5276  components which were:
 5277         1. Produced by the blood establishment during the preceding
 5278  calendar year;
 5279         2. Obtained from other sources during the preceding
 5280  calendar year;
 5281         3. Distributed during the preceding calendar year to health
 5282  care providers located outside this state. However, if the blood
 5283  establishment collects donations in a county outside this state,
 5284  distributions to health care providers in that county are
 5285  excluded. Such information shall be reported in the aggregate
 5286  for health care providers located within the United States and
 5287  its territories or outside the United States and its
 5288  territories; and
 5289         4. Distributed during the preceding calendar year to
 5290  entities that are not health care providers. Such information
 5291  shall be reported in the aggregate for purchasers located within
 5292  the United States and its territories or outside the United
 5293  States and its territories.
 5294         (c) The blood establishment’s conflict-of-interest policy,
 5295  policy concerning related-party transactions, whistleblower
 5296  policy, and policy for determining executive compensation. If a
 5297  change occurs to any of these documents, the revised document
 5298  must be available on the blood establishment’s website by the
 5299  following March 1.
 5300         (d) Except for a hospital that collects blood or blood
 5301  components from volunteer donors:
 5302         1. The most recent 3 years of the Return of Organization
 5303  Exempt from Income Tax, Internal Revenue Service Form 990, if
 5304  the business entity for the blood establishment is eligible to
 5305  file such return. The Form 990 must be available on the blood
 5306  establishment’s website within 60 calendar days after it is
 5307  filed with the Internal Revenue Service; or
 5308         2. If the business entity for the blood establishment is
 5309  not eligible to file the Form 990 return, a balance sheet,
 5310  income statement, and statement of changes in cash flow, along
 5311  with the expression of an opinion thereon by an independent
 5312  certified public accountant who audited or reviewed such
 5313  financial statements. Such documents must be available on the
 5314  blood establishment’s website within 120 days after the end of
 5315  the blood establishment’s fiscal year and must remain on the
 5316  blood establishment’s website for at least 36 months.
 5317  
 5318  A hospital that collects blood or blood components to be used
 5319  only by that hospital’s licensed facilities or by a health care
 5320  provider that is a part of the hospital’s business entity is
 5321  exempt from the disclosure requirements of this subsection.
 5322         (7) A blood establishment is liable for a civil penalty for
 5323  failing to make the disclosures required under subsection (6).
 5324  The Department of Legal Affairs may assess a civil penalty
 5325  against the blood establishment for each day that it fails to
 5326  make such required disclosures, but the penalty may not exceed
 5327  $10,000 per year. If multiple blood establishments operated by a
 5328  single business entity fail to meet such disclosure
 5329  requirements, the civil penalty may be assessed against only one
 5330  of the business entity’s blood establishments. The Department of
 5331  Legal Affairs may terminate an action if the blood establishment
 5332  agrees to pay a stipulated civil penalty. A civil penalty so
 5333  collected accrues to the state and shall be deposited as
 5334  received into the General Revenue Fund unallocated. The
 5335  Department of Legal Affairs may terminate the action and waive
 5336  the civil penalty upon a showing of good cause by the blood
 5337  establishment as to why the required disclosures were not made.
 5338         Section 64. Subsection (9) of section 393.063, Florida
 5339  Statutes, is amended, present subsections (13) through (40) of
 5340  that section are redesignated as subsections (14) through (41),
 5341  respectively, and a new subsection (13) is added to that
 5342  section, to read:
 5343         393.063 Definitions.—For the purposes of this chapter, the
 5344  term:
 5345         (9) “Developmental disability” means a disorder or syndrome
 5346  that is attributable to retardation, cerebral palsy, autism,
 5347  spina bifida, Down syndrome, or Prader-Willi syndrome; that
 5348  manifests before the age of 18; and that constitutes a
 5349  substantial handicap that can reasonably be expected to continue
 5350  indefinitely.
 5351         (13) “Down syndrome” means a disorder that is caused by the
 5352  presence of an extra chromosome 21.
 5353         Section 65. Paragraph (d) of subsection (2) of section
 5354  395.4025, Florida Statutes, is amended to read:
 5355         395.4025 Trauma centers; selection; quality assurance;
 5356  records.—
 5357         (2)
 5358         (d)1. Notwithstanding other provisions in this section, the
 5359  department may grant up to an additional 18 months to a hospital
 5360  applicant that is unable to meet all the requirements under as
 5361  provided in paragraph (c) at the time of application if the
 5362  number of applicants in the service area in which the applicant
 5363  is located is equal to or less than the service area allocation,
 5364  as provided by rule of the department.
 5365         a. An applicant that is granted additional time pursuant to
 5366  this paragraph shall submit a plan for departmental approval
 5367  which includes timelines and activities that the applicant
 5368  proposes to complete in order to meet application requirements.
 5369  An Any applicant that demonstrates an ongoing effort to complete
 5370  the activities within the timelines outlined in the plan shall
 5371  be included in the number of trauma centers when at such time
 5372  that the department conducts has conducted a provisional review
 5373  of the application and determines has determined that the
 5374  application is complete and that the hospital has the critical
 5375  elements required for a trauma center.
 5376         b. If construction related to a critical element is delayed
 5377  due to governmental action or inaction with respect to
 5378  regulations or permitting and a hospital applicant has
 5379  demonstrated that it has made a good faith effort to comply with
 5380  the applicable regulations or obtain the required permits, the
 5381  department shall grant an applicant that has received an
 5382  additional 18 months up to two additional 6-month extensions to
 5383  meet all the requirements under paragraph (c).
 5384         2. Timeframes provided in subsections (1)-(8) shall be
 5385  stayed until the department determines that the application is
 5386  complete and that the hospital has the critical elements
 5387  required for a trauma center.
 5388         Section 66. Section 400.023, Florida Statutes, is reordered
 5389  and amended to read:
 5390         400.023 Civil enforcement.—
 5391         (1) A Any resident who whose alleges negligence or a
 5392  violation of rights as specified in this part has are violated
 5393  shall have a cause of action against the licensee or its
 5394  management company, as identified in the state application for
 5395  nursing home licensure. However, the cause of action may not be
 5396  asserted individually against an officer, director, owner,
 5397  including an owner designated as having a controlling interest
 5398  on the state application for nursing home licensure, or agent of
 5399  a licensee or management company unless, following an
 5400  evidentiary hearing, the court determines there is sufficient
 5401  evidence in the record or proffered by the claimant which
 5402  establishes a reasonable basis for finding that the person or
 5403  entity breached, failed to perform, or acted outside the scope
 5404  of duties as an officer, director, owner, or agent, and that the
 5405  breach, failure to perform, or action outside the scope of
 5406  duties is a legal cause of actual loss, injury, death, or damage
 5407  to the resident.
 5408         (2) The action may be brought by the resident or his or her
 5409  guardian, by a person or organization acting on behalf of a
 5410  resident with the consent of the resident or his or her
 5411  guardian, or by the personal representative of the estate of a
 5412  deceased resident regardless of the cause of death.
 5413         (5) If the action alleges a claim for the resident’s rights
 5414  or for negligence that:
 5415         (a) Caused the death of the resident, the claimant must
 5416  shall be required to elect either survival damages pursuant to
 5417  s. 46.021 or wrongful death damages pursuant to s. 768.21. If
 5418  the claimant elects wrongful death damages, total noneconomic
 5419  damages may not exceed $250,000, regardless of the number of
 5420  claimants.
 5421         (b)If the action alleges a claim for the resident’s rights
 5422  or for negligence that Did not cause the death of the resident,
 5423  the personal representative of the estate may recover damages
 5424  for the negligence that caused injury to the resident.
 5425         (3) The action may be brought in any court of competent
 5426  jurisdiction to enforce such rights and to recover actual and
 5427  punitive damages for any violation of the rights of a resident
 5428  or for negligence.
 5429         (10) Any resident who prevails in seeking injunctive relief
 5430  or a claim for an administrative remedy may is entitled to
 5431  recover the costs of the action, and a reasonable attorney’s fee
 5432  assessed against the defendant not to exceed $25,000. Fees shall
 5433  be awarded solely for the injunctive or administrative relief
 5434  and not for any claim or action for damages whether such claim
 5435  or action is brought together with a request for an injunction
 5436  or administrative relief or as a separate action, except as
 5437  provided under s. 768.79 or the Florida Rules of Civil
 5438  Procedure. Sections 400.023-400.0238 provide the exclusive
 5439  remedy for a cause of action for recovery of damages for the
 5440  personal injury or death of a nursing home resident arising out
 5441  of negligence or a violation of rights specified in s. 400.022.
 5442  This section does not preclude theories of recovery not arising
 5443  out of negligence or s. 400.022 which are available to a
 5444  resident or to the agency. The provisions of chapter 766 do not
 5445  apply to any cause of action brought under ss. 400.023-400.0238.
 5446         (6)(2)If the In any claim brought pursuant to this part
 5447  alleges alleging a violation of resident’s rights or negligence
 5448  causing injury to or the death of a resident, the claimant shall
 5449  have the burden of proving, by a preponderance of the evidence,
 5450  that:
 5451         (a) The defendant owed a duty to the resident;
 5452         (b) The defendant breached the duty to the resident;
 5453         (c) The breach of the duty is a legal cause of loss,
 5454  injury, death, or damage to the resident; and
 5455         (d) The resident sustained loss, injury, death, or damage
 5456  as a result of the breach.
 5457         (12) Nothing in This part does not shall be interpreted to
 5458  create strict liability. A violation of the rights set forth in
 5459  s. 400.022 or in any other standard or guidelines specified in
 5460  this part or in any applicable administrative standard or
 5461  guidelines of this state or a federal regulatory agency is shall
 5462  be evidence of negligence but may shall not be considered
 5463  negligence per se.
 5464         (7)(3) In any claim brought pursuant to this section, a
 5465  licensee, person, or entity has shall have a duty to exercise
 5466  reasonable care. Reasonable care is that degree of care which a
 5467  reasonably careful licensee, person, or entity would use under
 5468  like circumstances.
 5469         (9)(4) In any claim for resident’s rights violation or
 5470  negligence by a nurse licensed under part I of chapter 464, such
 5471  nurse has a shall have the duty to exercise care consistent with
 5472  the prevailing professional standard of care for a nurse. The
 5473  prevailing professional standard of care for a nurse is shall be
 5474  that level of care, skill, and treatment which, in light of all
 5475  relevant surrounding circumstances, is recognized as acceptable
 5476  and appropriate by reasonably prudent similar nurses.
 5477         (8)(5) A licensee is shall not be liable for the medical
 5478  negligence of any physician rendering care or treatment to the
 5479  resident except for the administrative services of a medical
 5480  director as required in this part. Nothing in This subsection
 5481  does not shall be construed to protect a licensee, person, or
 5482  entity from liability for failure to provide a resident with
 5483  appropriate observation, assessment, nursing diagnosis,
 5484  planning, intervention, and evaluation of care by nursing staff.
 5485         (4)(6) The resident or the resident’s legal representative
 5486  shall serve a copy of any complaint alleging in whole or in part
 5487  a violation of any rights specified in this part to the agency
 5488  for Health Care Administration at the time of filing the initial
 5489  complaint with the clerk of the court for the county in which
 5490  the action is pursued. The requirement of Providing a copy of
 5491  the complaint to the agency does not impair the resident’s legal
 5492  rights or ability to seek relief for his or her claim.
 5493         (11)(7) An action under this part for a violation of rights
 5494  or negligence recognized herein is not a claim for medical
 5495  malpractice, and the provisions of s. 768.21(8) do not apply to
 5496  a claim alleging death of the resident.
 5497         Section 67. Subsections (1), (2), and (3) of section
 5498  400.0237, Florida Statutes, are amended to read:
 5499         400.0237 Punitive damages; pleading; burden of proof.—
 5500         (1) In any action for damages brought under this part, a no
 5501  claim for punitive damages is not shall be permitted unless,
 5502  based on admissible there is a reasonable showing by evidence in
 5503  the record or proffered by the claimant, which would provide a
 5504  reasonable basis for recovery of such damages is demonstrated
 5505  upon applying the criteria set forth in this section. The
 5506  defendant may proffer admissible evidence to refute the
 5507  claimant’s proffer of evidence to recover punitive damages. The
 5508  trial judge shall conduct an evidentiary hearing and weigh the
 5509  admissible evidence proffered by the claimant and the defendant
 5510  to ensure that there is a reasonable basis to believe that the
 5511  claimant, at trial, will be able to demonstrate by clear and
 5512  convincing evidence that the recovery of such damages is
 5513  warranted. The claimant may move to amend her or his complaint
 5514  to assert a claim for punitive damages as allowed by the rules
 5515  of civil procedure. The rules of civil procedure shall be
 5516  liberally construed so as to allow the claimant discovery of
 5517  evidence which appears reasonably calculated to lead to
 5518  admissible evidence on the issue of punitive damages. No
 5519  Discovery of financial worth may not shall proceed until after
 5520  the trial judge approves the pleading on concerning punitive
 5521  damages is permitted.
 5522         (2) A defendant, including the licensee or management
 5523  company, against whom punitive damages is sought may be held
 5524  liable for punitive damages only if the trier of fact, based on
 5525  clear and convincing evidence, finds that a specific individual
 5526  or corporate defendant actively and knowingly participated in
 5527  intentional misconduct, or engaged in conduct that constituted
 5528  gross negligence, and that conduct contributed to the loss,
 5529  damages, or injury suffered by the claimant the defendant was
 5530  personally guilty of intentional misconduct or gross negligence.
 5531  As used in this section, the term:
 5532         (a) “Intentional misconduct” means that the defendant
 5533  against whom a claim for punitive damages is sought had actual
 5534  knowledge of the wrongfulness of the conduct and the high
 5535  probability that injury or damage to the claimant would result
 5536  and, despite that knowledge, intentionally pursued that course
 5537  of conduct, resulting in injury or damage.
 5538         (b) “Gross negligence” means that the defendant’s conduct
 5539  was so reckless or wanting in care that it constituted a
 5540  conscious disregard or indifference to the life, safety, or
 5541  rights of persons exposed to such conduct.
 5542         (3) In the case of vicarious liability of an employer,
 5543  principal, corporation, or other legal entity, punitive damages
 5544  may not be imposed for the conduct of an identified employee or
 5545  agent unless only if the conduct of the employee or agent meets
 5546  the criteria specified in subsection (2) and officers,
 5547  directors, or managers of the actual employer corporation or
 5548  legal entity condoned, ratified, or consented to the specific
 5549  conduct as alleged by the claimant in subsection (2).:
 5550         (a) The employer, principal, corporation, or other legal
 5551  entity actively and knowingly participated in such conduct;
 5552         (b) The officers, directors, or managers of the employer,
 5553  principal, corporation, or other legal entity condoned,
 5554  ratified, or consented to such conduct; or
 5555         (c) The employer, principal, corporation, or other legal
 5556  entity engaged in conduct that constituted gross negligence and
 5557  that contributed to the loss, damages, or injury suffered by the
 5558  claimant.
 5559         Section 68. Subsections (3) and (4) of section 408.7057,
 5560  Florida Statutes, are amended, present subsection (7) of that
 5561  section is redesignated as subsection (8), and a new subsection
 5562  (7) is added to that section, to read:
 5563         408.7057 Statewide provider and health plan claim dispute
 5564  resolution program.—
 5565         (3) The agency shall adopt rules to establish a process to
 5566  be used by the resolution organization in considering claim
 5567  disputes submitted by a provider or health plan which must
 5568  include a hearing, if requested by the respondent, and the
 5569  issuance by the resolution organization of a written
 5570  recommendation, supported by findings of fact and conclusions of
 5571  law, to the agency within 60 days after the requested
 5572  information is received by the resolution organization within
 5573  the timeframes specified by the resolution organization. In no
 5574  event shall The review time may not exceed 90 days following
 5575  receipt of the initial claim dispute submission by the
 5576  resolution organization.
 5577         (4) Within 30 days after receipt of the recommendation of
 5578  the resolution organization, the agency shall adopt the
 5579  recommendation as a final order subject to chapter 120.
 5580         (7) This section creates a procedure for dispute resolution
 5581  and not an independent right of recovery. The conclusions of law
 5582  contained in the written recommendation of the resolution
 5583  organization must identify the provisions of law or contract
 5584  which, under the particular facts and circumstances of the case,
 5585  entitle the provider or health plan to the amount awarded, if
 5586  any.
 5587         Section 69. Subsection (9) is added to section 465.014,
 5588  Florida Statutes, to read:
 5589         465.014 Pharmacy technician.—
 5590         (9) This section does not apply to a practitioner
 5591  authorized to dispense drugs under s. 465.0276 or any medical
 5592  personnel under the direct supervision of such practitioner if
 5593  the practitioner is treating a patient who provides proof of
 5594  insurance through a public or private payor source. Medical
 5595  personnel under the direct supervision of the practitioner may
 5596  perform all activities required by s. 465.0276.
 5597         Section 70. Section 456.0635, Florida Statutes, is amended
 5598  to read:
 5599         456.0635 Health care Medicaid fraud; disqualification for
 5600  license, certificate, or registration.—
 5601         (1) Medicaid Fraud in the practice of a health care
 5602  profession is prohibited.
 5603         (2) Each board within the jurisdiction of the department,
 5604  or the department if there is no board, shall refuse to admit a
 5605  candidate to any examination and refuse to issue or renew a
 5606  license, certificate, or registration to any applicant if the
 5607  candidate or applicant or any principal, officer, agent,
 5608  managing employee, or affiliated person of the applicant, has
 5609  been:
 5610         (a) Has been convicted of, or entered a plea of guilty or
 5611  nolo contendere to, regardless of adjudication, a felony under
 5612  chapter 409, chapter 817, or chapter 893, or a similar felony
 5613  offense committed in another state or jurisdiction 21 U.S.C. ss.
 5614  801-970, or 42 U.S.C. ss. 1395-1396, unless the sentence and any
 5615  subsequent period of probation for such conviction or plea pleas
 5616  ended: more than 15 years prior to the date of the application;
 5617         1.For felonies of the first or second degree, more than 15
 5618  years before the date of application.
 5619         2.For felonies of the third degree, more than 10 years
 5620  before the date of application, except for felonies of the third
 5621  degree under s. 893.13(6)(a).
 5622         3.For felonies of the third degree under s. 893.13(6)(a),
 5623  more than 5 years before the date of application.
 5624  
 5625  Notwithstanding s. 120.60, for felonies in which the defendant
 5626  entered a plea of guilty or nolo contendere in an agreement with
 5627  the court to enter a pretrial intervention or drug diversion
 5628  program, the board, or the department if there is no board, may
 5629  not approve or deny the application for a license, certificate,
 5630  or registration until final resolution of the case;
 5631         (b)Has been convicted of, or entered a plea of guilty or
 5632  nolo contendere to, regardless of adjudication, a felony under
 5633  21 U.S.C. ss. 801-970, or 42 U.S.C. ss. 1395-1396, unless the
 5634  sentence and any subsequent period of probation for such
 5635  conviction or plea ended more than 15 years before the date of
 5636  the application;
 5637         (c)(b)Has been terminated for cause from the Florida
 5638  Medicaid program pursuant to s. 409.913, unless the applicant
 5639  has been in good standing with the Florida Medicaid program for
 5640  the most recent 5 years;
 5641         (d)(c)Has been terminated for cause, pursuant to the
 5642  appeals procedures established by the state or Federal
 5643  Government, from any other state Medicaid program or the federal
 5644  Medicare program, unless the applicant has been in good standing
 5645  with a state Medicaid program or the federal Medicare program
 5646  for the most recent 5 years and the termination occurred at
 5647  least 20 years before prior to the date of the application; or.
 5648         (e)Is currently listed on the United States Department of
 5649  Health and Human Services Office of Inspector General’s List of
 5650  Excluded Individuals and Entities.
 5651  
 5652  This subsection does not apply to applicants for initial
 5653  licensure or certification who were enrolled in an educational
 5654  or training program on or before July 1, 2010, which was
 5655  recognized by a board or, if there is no board, recognized by
 5656  the department, and who applied for licensure after July 1,
 5657  2010.
 5658         (3)The department shall refuse to renew a license,
 5659  certificate, or registration of any applicant if the candidate
 5660  or applicant or any principal, officer, agent, managing
 5661  employee, or affiliated person of the applicant:
 5662         (a)Has been convicted of, or entered a plea of guilty or
 5663  nolo contendere to, regardless of adjudication, a felony under:
 5664  chapter 409, chapter 817, or chapter 893, or a similar felony
 5665  offense committed in another state or jurisdiction since July 1,
 5666  2010;
 5667         (b)Has been convicted of, or entered a plea of guilty or
 5668  nolo contendere to, regardless of adjudication, a felony under
 5669  21 U.S.C. ss. 801-970, or 42 U.S.C. ss. 1395-1396 since July 1,
 5670  2010;
 5671         (c)Has been terminated for cause from the Florida Medicaid
 5672  program pursuant to s. 409.913, unless the applicant has been in
 5673  good standing with the Florida Medicaid program for the most
 5674  recent 5 years;
 5675         (d)Has been terminated for cause, pursuant to the appeals
 5676  procedures established by the state, from any other state
 5677  Medicaid program, unless the applicant has been in good standing
 5678  with a state Medicaid program for the most recent 5 years and
 5679  the termination occurred at least 20 years before the date of
 5680  the application; or
 5681         (e)Is currently listed on the United States Department of
 5682  Health and Human Services Office of Inspector General’s List of
 5683  Excluded Individuals and Entities.
 5684  
 5685  For felonies in which the defendant entered a plea of guilty or
 5686  nolo contendere in an agreement with the court to enter a
 5687  pretrial intervention or drug diversion program, the department
 5688  may not approve or deny the application for a renewal of a
 5689  license, certificate, or registration until the final resolution
 5690  of the case.
 5691         (4)(3) Licensed health care practitioners shall report
 5692  allegations of health care Medicaid fraud to the department,
 5693  regardless of the practice setting in which the alleged Medicaid
 5694  fraud occurred.
 5695         (5)(4) The acceptance by a licensing authority of a
 5696  candidate’s relinquishment of a license which is offered in
 5697  response to or anticipation of the filing of administrative
 5698  charges alleging health care Medicaid fraud or similar charges
 5699  constitutes the permanent revocation of the license.
 5700         Section 71. Subsection (6) of section 456.036, Florida
 5701  Statutes, is amended to read:
 5702         456.036 Licenses; active and inactive status; delinquency.—
 5703         (6)(a)Except as provided in paragraph (b), a delinquent
 5704  licensee must affirmatively apply with a complete application,
 5705  as defined by rule of the board, or the department if there is
 5706  no board, for active or inactive status during the licensure
 5707  cycle in which a licensee becomes delinquent. Failure by a
 5708  delinquent licensee to become active or inactive before the
 5709  expiration of the current licensure cycle renders the license
 5710  null without any further action by the board or the department.
 5711  Any subsequent licensure shall be as a result of applying for
 5712  and meeting all requirements imposed on an applicant for new
 5713  licensure.
 5714         (b) A delinquent licensee whose license becomes delinquent
 5715  before the final resolution of a case under s. 456.0635(3) must
 5716  affirmatively apply by submitting a complete application, as
 5717  defined by rule of the board, or the department if there is no
 5718  board, for active or inactive status during the licensure cycle
 5719  in which the case achieves final resolution by order of the
 5720  court. Failure by a delinquent licensee to become active or
 5721  inactive before the expiration of that licensure cycle renders
 5722  the license null without any further action by the board or the
 5723  department. Any subsequent licensure shall be as a result of
 5724  applying for and meeting all requirements imposed on an
 5725  applicant for new licensure.
 5726         Section 72. Section 458.3167, Florida Statutes, is created
 5727  to read:
 5728         458.3167Expert witness certificate.—
 5729         (1) A physician who holds an active and valid license to
 5730  practice allopathic medicine in any other state or in Canada,
 5731  who submits an application form prescribed by the board to
 5732  obtain a certificate to provide expert testimony and pays the
 5733  application fee, and who has not had a previous expert witness
 5734  certificate revoked by the board shall be issued a certificate
 5735  to provide expert testimony.
 5736         (2) A physician possessing an expert witness certificate
 5737  may use the certificate only to give a verified written medical
 5738  expert opinion as provided in s. 766.203 and to provide expert
 5739  testimony concerning the prevailing professional standard of
 5740  care for medical negligence litigation pending in this state
 5741  against a physician licensed under this chapter or chapter 459.
 5742         (3) An application for an expert witness certificate must
 5743  be approved or denied within 5 business days after receipt of a
 5744  completed application. An application that is not approved or
 5745  denied within the required time period is deemed approved. An
 5746  applicant seeking to claim certification by default shall notify
 5747  the board, in writing, of the intent to rely on the default
 5748  certification provision of this subsection. In such case, s.
 5749  458.327 does not apply, and the applicant may provide expert
 5750  testimony as provided in subsection (2).
 5751         (4) All licensure fees, other than the initial certificate
 5752  application fee, including the neurological injury compensation
 5753  assessment, are waived for those persons obtaining an expert
 5754  witness certificate. The possession of an expert witness
 5755  certificate alone does not entitle the physician to engage in
 5756  the practice of medicine as defined in s. 458.305.
 5757         (5) The board shall adopt rules to administer this section,
 5758  including rules setting the amount of the expert witness
 5759  certificate application fee, which may not exceed $50. An expert
 5760  witness certificate expires 2 years after the date of issuance.
 5761         Section 73. Subsection (11) is added to section 458.331,
 5762  Florida Statutes, present paragraphs (oo) through (qq) of
 5763  subsection (1) of that section are redesignated as paragraphs
 5764  (pp) through (rr), respectively, and a new paragraph (oo) is
 5765  added to that subsection, to read:
 5766         458.331 Grounds for disciplinary action; action by the
 5767  board and department.—
 5768         (1) The following acts constitute grounds for denial of a
 5769  license or disciplinary action, as specified in s. 456.072(2):
 5770         (oo) Providing misleading, deceptive, or fraudulent expert
 5771  witness testimony related to the practice of medicine.
 5772         (11) The purpose of this section is to facilitate uniform
 5773  discipline for those acts made punishable under this section
 5774  and, to this end, a reference to this section constitutes a
 5775  general reference under the doctrine of incorporation by
 5776  reference.
 5777         Section 74. Section 459.0078, Florida Statutes, is created
 5778  to read:
 5779         459.0078Expert witness certificate.—
 5780         (1) A physician who holds an active and valid license to
 5781  practice osteopathic medicine in any other state or in Canada,
 5782  who submits an application form prescribed by the board to
 5783  obtain a certificate to provide expert testimony and pays the
 5784  application fee, and who has not had a previous expert witness
 5785  certificate revoked by the board shall be issued a certificate
 5786  to provide expert testimony.
 5787         (2) A physician possessing an expert witness certificate
 5788  may use the certificate only to give a verified written medical
 5789  expert opinion as provided in s. 766.203 and to provide expert
 5790  testimony concerning the prevailing professional standard of
 5791  care for medical negligence litigation pending in this state
 5792  against a physician licensed under this chapter or chapter 458.
 5793         (3) An application for an expert witness certificate must
 5794  be approved or denied within 5 business days after receipt of a
 5795  completed application. An application that is not approved or
 5796  denied within the required time period is deemed approved. An
 5797  applicant seeking to claim certification by default shall notify
 5798  the board, in writing, of the intent to rely on the default
 5799  certification provision of this subsection. In such case, s.
 5800  459.013 does not apply, and the applicant may provide expert
 5801  testimony as provided in subsection (2).
 5802         (4) All licensure fees, other than the initial certificate
 5803  application fee, including the neurological injury compensation
 5804  assessment, are waived for those persons obtaining an expert
 5805  witness certificate. The possession of an expert witness
 5806  certificate alone does not entitle the physician to engage in
 5807  the practice of osteopathic medicine as defined in s. 459.003.
 5808         (5) The board shall adopt rules to administer this section,
 5809  including rules setting the amount of the expert witness
 5810  certificate application fee, which may not exceed $50. An expert
 5811  witness certificate expires 2 years after the date of issuance.
 5812         Section 75. Subsection (11) is added to section 459.015,
 5813  Florida Statutes, present paragraphs (qq) through (ss) of
 5814  subsection (1) of that section are redesignated as paragraphs
 5815  (rr) through (tt), respectively, and a new paragraph (qq) is
 5816  added to that subsection, to read:
 5817         459.015 Grounds for disciplinary action; action by the
 5818  board and department.—
 5819         (1) The following acts constitute grounds for denial of a
 5820  license or disciplinary action, as specified in s. 456.072(2):
 5821         (qq) Providing misleading, deceptive, or fraudulent expert
 5822  witness testimony related to the practice of osteopathic
 5823  medicine.
 5824         (11) The purpose of this section is to facilitate uniform
 5825  discipline for those acts made punishable under this section
 5826  and, to this end, a reference to this section constitutes a
 5827  general reference under the doctrine of incorporation by
 5828  reference.
 5829         Section 76. Subsection (23) of section 499.003, Florida
 5830  Statutes, is amended to read:
 5831         499.003 Definitions of terms used in this part.—As used in
 5832  this part, the term:
 5833         (23) “Health care entity” means a closed pharmacy or any
 5834  person, organization, or business entity that provides
 5835  diagnostic, medical, surgical, or dental treatment or care, or
 5836  chronic or rehabilitative care, but does not include any
 5837  wholesale distributor or retail pharmacy licensed under state
 5838  law to deal in prescription drugs. However, a blood
 5839  establishment is a health care entity that may engage in the
 5840  wholesale distribution of prescription drugs under s.
 5841  499.01(2)(g)1.c.
 5842         Section 77. Subsection (21) of section 499.005, Florida
 5843  Statutes, is amended to read:
 5844         499.005 Prohibited acts.—It is unlawful for a person to
 5845  perform or cause the performance of any of the following acts in
 5846  this state:
 5847         (21) The wholesale distribution of any prescription drug
 5848  that was:
 5849         (a) Purchased by a public or private hospital or other
 5850  health care entity; or
 5851         (b) Donated or supplied at a reduced price to a charitable
 5852  organization,
 5853  
 5854  unless the wholesale distribution of the prescription drug is
 5855  authorized in s. 499.01(2)(g)1.c.
 5856         Section 78. Paragraphs (a) and (g) of subsection (2) of
 5857  section 499.01, Florida Statutes, are amended to read:
 5858         499.01 Permits.—
 5859         (2) The following permits are established:
 5860         (a) Prescription drug manufacturer permit.—A prescription
 5861  drug manufacturer permit is required for any person that is a
 5862  manufacturer of a prescription drug and that manufactures or
 5863  distributes such prescription drugs in this state.
 5864         1. A person that operates an establishment permitted as a
 5865  prescription drug manufacturer may engage in wholesale
 5866  distribution of prescription drugs manufactured at that
 5867  establishment and must comply with all of the provisions of this
 5868  part, except s. 499.01212, and the rules adopted under this
 5869  part, except s. 499.01212, which that apply to a wholesale
 5870  distributor.
 5871         2. A prescription drug manufacturer must comply with all
 5872  appropriate state and federal good manufacturing practices.
 5873         3. A blood establishment, as defined in s. 381.06014,
 5874  operating in a manner consistent with the provisions of Title 21
 5875  C.F.R. parts 211 and 600-640 and manufacturing only the
 5876  prescription drugs described in s. 499.003(54)(d) is not
 5877  required to be permitted as a prescription drug manufacturer
 5878  under this paragraph or to register its products under s.
 5879  499.015.
 5880         (g) Restricted prescription drug distributor permit.—
 5881         1. A restricted prescription drug distributor permit is
 5882  required for:
 5883         a. Any person located in this state that engages in the
 5884  distribution of a prescription drug, which distribution is not
 5885  considered “wholesale distribution” under s. 499.003(54)(a).
 5886         b.1.Any A person located in this state who engages in the
 5887  receipt or distribution of a prescription drug in this state for
 5888  the purpose of processing its return or its destruction must
 5889  obtain a permit as a restricted prescription drug distributor if
 5890  such person is not the person initiating the return, the
 5891  prescription drug wholesale supplier of the person initiating
 5892  the return, or the manufacturer of the drug.
 5893         c.A blood establishment located in this state which
 5894  collects blood and blood components only from volunteer donors
 5895  as defined in s. 381.06014 or pursuant to an authorized
 5896  practitioner’s order for medical treatment or therapy and
 5897  engages in the wholesale distribution of a prescription drug not
 5898  described in s. 499.003(54)(d) to a health care entity. The
 5899  health care entity receiving a prescription drug distributed
 5900  under this sub-subparagraph must be licensed as a closed
 5901  pharmacy or provide health care services at that establishment.
 5902  The blood establishment must operate in accordance with s.
 5903  381.06014 and may distribute only:
 5904         (I) Prescription drugs indicated for a bleeding or clotting
 5905  disorder or anemia;
 5906         (II) Blood-collection containers approved under s. 505 of
 5907  the federal act;
 5908         (III) Drugs that are blood derivatives, or a recombinant or
 5909  synthetic form of a blood derivative;
 5910         (IV) Prescription drugs that are identified in rules
 5911  adopted by the department and that are essential to services
 5912  performed or provided by blood establishments and authorized for
 5913  distribution by blood establishments under federal law; or
 5914         (V) To the extent authorized by federal law, drugs
 5915  necessary to collect blood or blood components from volunteer
 5916  blood donors; for blood establishment personnel to perform
 5917  therapeutic procedures under the direction and supervision of a
 5918  licensed physician; and to diagnose, treat, manage, and prevent
 5919  any reaction of either a volunteer blood donor or a patient
 5920  undergoing a therapeutic procedure performed under the direction
 5921  and supervision of a licensed physician,
 5922  
 5923  as long as all of the health care services provided by the blood
 5924  establishment are related to its activities as a registered
 5925  blood establishment or the health care services consist of
 5926  collecting, processing, storing, or administering human
 5927  hematopoietic stem cells or progenitor cells or performing
 5928  diagnostic testing of specimens if such specimens are tested
 5929  together with specimens undergoing routine donor testing.
 5930         2. Storage, handling, and recordkeeping of these
 5931  distributions by a person required to be permitted as a
 5932  restricted prescription drug distributor must comply with the
 5933  requirements for wholesale distributors under s. 499.0121, but
 5934  not those set forth in s. 499.01212 if the distribution occurs
 5935  pursuant to sub-subparagraph 1.a. or sub-subparagraph 1.b.
 5936         3. A person who applies for a permit as a restricted
 5937  prescription drug distributor, or for the renewal of such a
 5938  permit, must provide to the department the information required
 5939  under s. 499.012.
 5940         4. The department may adopt rules regarding the
 5941  distribution of prescription drugs by hospitals, health care
 5942  entities, charitable organizations, or other persons not
 5943  involved in wholesale distribution, and blood establishments,
 5944  which rules are necessary for the protection of the public
 5945  health, safety, and welfare.
 5946         Section 79. Subsection (4) is added to section 626.9541,
 5947  Florida Statutes, to read:
 5948         626.9541 Unfair methods of competition and unfair or
 5949  deceptive acts or practices defined.—
 5950         (4) WELLNESS OR HEALTH IMPROVEMENT PROGRAMS.—
 5951         (a) An insurer issuing a group or individual health benefit
 5952  plan may offer a voluntary wellness or health improvement
 5953  program and may encourage or reward participation in the program
 5954  by authorizing rewards or incentives, including, but not limited
 5955  to, merchandise, gift cards, debit cards, premium discounts or
 5956  rebates, contributions to a member’s health savings account, or
 5957  modifications to copayment, deductible, or coinsurance amounts.
 5958         (b) An insurer may require a health benefit plan member to
 5959  provide verification, such as an affirming statement from the
 5960  member’s physician, that the member’s medical condition makes it
 5961  unreasonably difficult or inadvisable to participate in the
 5962  wellness or health improvement program.
 5963         (c) A reward or incentive offered under this subsection is
 5964  not an insurance benefit or violation of this section if it is
 5965  disclosed in the policy or certificate. This subsection does not
 5966  prohibit insurers from offering other incentives or rewards for
 5967  adherence to a wellness or health improvement program if
 5968  otherwise authorized by state or federal law.
 5969         Section 80. Paragraph (b) of subsection (1) of section
 5970  627.4147, Florida Statutes, is amended to read:
 5971         627.4147 Medical malpractice insurance contracts.—
 5972         (1) In addition to any other requirements imposed by law,
 5973  each self-insurance policy as authorized under s. 627.357 or s.
 5974  624.462 or insurance policy providing coverage for claims
 5975  arising out of the rendering of, or the failure to render,
 5976  medical care or services, including those of the Florida Medical
 5977  Malpractice Joint Underwriting Association, must shall include:
 5978         (b)1.Except as provided in subparagraph 2., a clause
 5979  authorizing the insurer or self-insurer to determine, to make,
 5980  and to conclude, without the permission of the insured, any
 5981  offer of admission of liability and for arbitration pursuant to
 5982  s. 766.106, settlement offer, or offer of judgment, if the offer
 5983  is within the policy limits. It is against public policy for any
 5984  insurance or self-insurance policy to contain a clause giving
 5985  the insured the exclusive right to veto any offer for admission
 5986  of liability and for arbitration made pursuant to s. 766.106,
 5987  settlement offer, or offer of judgment, when such offer is
 5988  within the policy limits. However, any offer of admission of
 5989  liability, settlement offer, or offer of judgment made by an
 5990  insurer or self-insurer shall be made in good faith and in the
 5991  best interests of the insured.
 5992         1.2.a. With respect to dentists licensed under chapter 466,
 5993  a clause clearly stating whether or not the insured has the
 5994  exclusive right to veto any offer of admission of liability and
 5995  for arbitration pursuant to s. 766.106, settlement offer, or
 5996  offer of judgment if the offer is within policy limits. An
 5997  insurer or self-insurer may shall not make or conclude, without
 5998  the permission of the insured, any offer of admission of
 5999  liability and for arbitration pursuant to s. 766.106, settlement
 6000  offer, or offer of judgment, if such offer is outside the policy
 6001  limits. However, any offer for admission of liability and for
 6002  arbitration made under s. 766.106, settlement offer, or offer of
 6003  judgment made by an insurer or self-insurer must shall be made
 6004  in good faith and in the best interest of the insured.
 6005         2.b. If the policy contains a clause stating the insured
 6006  does not have the exclusive right to veto any offer or admission
 6007  of liability and for arbitration made pursuant to s. 766.106,
 6008  settlement offer or offer of judgment, the insurer or self
 6009  insurer shall provide to the insured or the insured’s legal
 6010  representative by certified mail, return receipt requested, a
 6011  copy of the final offer of admission of liability and for
 6012  arbitration made pursuant to s. 766.106, settlement offer or
 6013  offer of judgment and at the same time such offer is provided to
 6014  the claimant. A copy of any final agreement reached between the
 6015  insurer and claimant shall also be provided to the insurer or
 6016  his or her legal representative by certified mail, return
 6017  receipt requested within not more than 10 days after affecting
 6018  such agreement.
 6019         Section 81. Present subsections (15) through (21) of
 6020  section 641.19, Florida Statutes, are renumbered as subsections
 6021  (16) through (22), respectively, and a new subsection (15) is
 6022  added to that section, to read:
 6023         641.19 Definitions.—As used in this part, the term:
 6024         (15) “Provider service network” means a network established
 6025  or organized and operated by a health care provider or group of
 6026  affiliated health care providers, including minority physician
 6027  networks and emergency room diversion programs that meet the
 6028  requirements of s. 409.91211, which directly provides a
 6029  substantial proportion of the health care items and services
 6030  under a contract and may make arrangements with physicians,
 6031  other health care practitioners, health care institutions, or
 6032  any combination of such practitioners or institutions to assume
 6033  all or part of the financial risk on a prospective basis for the
 6034  provision of basic health services by such physicians,
 6035  practitioners, or institutions. The health care providers
 6036  operating the provider service network must have a controlling
 6037  interest in the governing body of the network.
 6038         Section 82. Section 641.2019, Florida Statutes, is created
 6039  to read:
 6040         641.2019Provider service network certificate of
 6041  authority.—Notwithstanding any other provisions of this chapter,
 6042  a provider service network, including a prepaid provider service
 6043  network described under s. 409.912(4)(d), which meets all of the
 6044  applicable requirements of this part may apply for and obtain a
 6045  health care provider certificate pursuant to part III of this
 6046  chapter and a certificate of authority pursuant to this part
 6047  which states that the network is authorized to operate a
 6048  certified provider service network under this chapter. A
 6049  certified provider service network has the same rights and
 6050  responsibilities as a health maintenance organization certified
 6051  under this part.
 6052         Section 83. Subsection (13) of section 641.47, Florida
 6053  Statutes, is amended to read:
 6054         641.47 Definitions.—As used in this part, the term:
 6055         (13) “Organization” means a any health maintenance
 6056  organization as defined in s. 641.19, a and any prepaid health
 6057  clinic as defined in s. 641.402, and a provider service network
 6058  as defined in s. 641.19.
 6059         Section 84. Section 641.49, Florida Statutes, is amended to
 6060  read:
 6061         641.49 Health care provider certificate certification of
 6062  health maintenance organization and prepaid health clinic as
 6063  health care providers; application procedure.—
 6064         (1) No person or governmental unit shall establish,
 6065  conduct, or maintain a health maintenance organization, or a
 6066  prepaid health clinic, or provider service network in this state
 6067  without first obtaining a health care provider certificate under
 6068  this part.
 6069         (2) The office may shall not issue a certificate of
 6070  authority under part I or part II of this chapter to any
 6071  applicant which does not possess a valid health care provider
 6072  certificate issued by the agency under this part.
 6073         (3) Each application for a health care provider certificate
 6074  shall be on a form prescribed by the agency. The following
 6075  information and documents shall be submitted by an applicant and
 6076  maintained, after certification under this part, by each
 6077  organization and shall be available for inspection or
 6078  examination by the agency at the offices of an organization at
 6079  any time during regular business hours. The agency shall give
 6080  reasonable notice to an organization before prior to any onsite
 6081  inspection or examination of its records or premises conducted
 6082  under this section. The agency may require that the following
 6083  information or documents be submitted with the application:
 6084         (a) A copy of the articles of incorporation and all
 6085  amendments to the articles.
 6086         (b) A copy of the bylaws, rules and regulations, or similar
 6087  form of document, if any, regulating the conduct of the affairs
 6088  of the applicant or organization.
 6089         (c) A list of the names, addresses, and official capacities
 6090  with the applicant or organization of the persons who are to be
 6091  responsible for the conduct of the affairs of the applicant or
 6092  organization, including all officers and directors of the
 6093  corporation. Such persons must shall fully disclose to the
 6094  agency and the directors of the applicant or organization the
 6095  extent and nature of any contracts or arrangements between them
 6096  and the applicant or organization, including any possible
 6097  conflicts of interest.
 6098         (d) The name and address of the applicant and the name by
 6099  which the applicant or organization is to be known.
 6100         (e) A statement generally describing the applicant or
 6101  organization and its operations.
 6102         (f) A copy of the form for each group and individual
 6103  contract, certificate, subscriber handbook, and any other
 6104  similar documents issued to subscribers.
 6105         (g) A statement describing the manner in which health care
 6106  services shall be regularly available.
 6107         (h) A statement that the applicant has an established
 6108  network of health care providers which is capable of providing
 6109  the health care services that are to be offered by the
 6110  organization.
 6111         (i) The locations at which health care services shall be
 6112  regularly available to subscribers.
 6113         (j) The type of health care personnel engaged to provide
 6114  the health care services and the quantity of the personnel of
 6115  each type.
 6116         (k) A statement giving the present and projected number of
 6117  subscribers to be enrolled annually yearly for the next 3 years.
 6118         (l) A statement indicating the source of emergency services
 6119  and care on a 24-hour basis.
 6120         (m) A statement that the physicians employed by the
 6121  applicant have been formally organized as a medical staff and
 6122  that the applicant’s governing body has designated a chief of
 6123  medical staff.
 6124         (n) A statement describing the manner in which the
 6125  applicant or organization assures the maintenance of a medical
 6126  records system in accordance with accepted medical records’
 6127  standards and practices.
 6128         (o) If general anesthesia is to be administered in a
 6129  facility not licensed by the agency, a copy of architectural
 6130  plans that meet the requirements for institutional occupancy
 6131  (NFPA 101 Life Safety Code, current edition as adopted by the
 6132  State Fire Marshal).
 6133         (p) A description of the applicant’s or organization’s
 6134  internal quality assurance program, including committee
 6135  structure, as required under s. 641.51.
 6136         (q) A description and supporting documentation concerning
 6137  how the applicant or health maintenance organization will comply
 6138  with internal risk management program requirements under s.
 6139  641.55.
 6140         (r) An explanation of how coverage for emergency services
 6141  and care is to be effected outside the applicant’s or health
 6142  maintenance organization’s stated geographic area.
 6143         (s) A statement and map describing with reasonable accuracy
 6144  the specific geographic area to be served.
 6145         (t) A nonrefundable application fee of $1,000.
 6146         (u) Such additional information as the agency may
 6147  reasonably require.
 6148         Section 85. Paragraph (b) of subsection (2) of section
 6149  430.705, Florida Statutes, is amended to read:
 6150         430.705 Implementation of the long-term care community
 6151  diversion pilot projects.—
 6152         (2)
 6153         (b) The department shall select providers that meet all of
 6154  the following criteria. Providers shall:
 6155         1. Have a plan administrator who is dedicated to the
 6156  diversion pilot project and project staff who perform the
 6157  necessary project administrative functions, including data
 6158  collection, reporting, and analysis.
 6159         2. Demonstrate the ability to provide program enrollees
 6160  with a choice of care provider by contracting with multiple
 6161  providers that provide the same type of service.
 6162         3. Demonstrate through performance or other documented
 6163  means the capacity for prompt payment of claims as specified
 6164  under s. 641.3155.
 6165         4. Maintain an insolvency protection account in a bank or
 6166  savings and loan association located in the state with a balance
 6167  of at least $100,000 into which monthly deposits equal to at
 6168  least 5 percent of premiums received under the project are made
 6169  until the balance equals 2 percent of the total contract amount.
 6170  The account shall be established with such terms as to ensure
 6171  that funds are may only be withdrawn only with the signature
 6172  approval of designated department representatives.
 6173         5. Maintain a surplus of at least $1.5 million as
 6174  determined by the department. Each applicant and each provider
 6175  shall furnish to the department initial and annual unqualified
 6176  audited financial statements prepared by a certified public
 6177  accountant that expressly confirm that the applicant or provider
 6178  satisfies this surplus requirement. The department may approve a
 6179  waiver of compliance with the surplus requirement for an
 6180  existing diversion provider. The department’s approval of the
 6181  this waiver is must be contingent on the provider demonstrating
 6182  proof to the department that the entity has posted and maintains
 6183  a $1.5 million performance bond, which is written by an insurer
 6184  licensed to transact insurance in this state, in lieu of meeting
 6185  the surplus requirement. The department may not approve a waiver
 6186  of compliance with the surplus requirement that extends beyond
 6187  June 30, 2006. As used in this subparagraph, the term:
 6188         a. “Existing diversion provider” means an entity that is
 6189  approved by the department on or before June 30, 2005, to
 6190  provide services to consumers through any long-term care
 6191  community diversion pilot project authorized under ss. 430.701
 6192  430.709.
 6193         b. “Surplus” has the same meaning as in s. 641.19(19).
 6194         Section 86. Present subsection (12) of section 766.102,
 6195  Florida Statutes, is redesignated as subsection (13), and a new
 6196  subsection (12) is added to that section, to read:
 6197         766.102 Medical negligence; standards of recovery; expert
 6198  witness.—
 6199         (12) If a physician licensed under chapter 458 or chapter
 6200  459 is a party against whom, or on whose behalf, expert
 6201  testimony about the prevailing professional standard of care is
 6202  offered, the expert witness must otherwise meet the requirements
 6203  of this section and be licensed as a physician under chapter 458
 6204  or chapter 459, or must possess a valid expert witness
 6205  certificate issued under s. 458.3167 or s. 459.0078.
 6206         Section 87. Subsection (1) of section 766.104, Florida
 6207  Statutes, is amended to read:
 6208         766.104 Pleading in medical negligence cases; claim for
 6209  punitive damages; authorization for release of records for
 6210  investigation.—
 6211         (1) An No action shall be filed for personal injury or
 6212  wrongful death arising out of medical negligence, whether in
 6213  tort or in contract, may not be filed unless the attorney filing
 6214  the action has made a reasonable investigation, as permitted by
 6215  the circumstances, to determine that there are grounds for a
 6216  good faith belief that there has been negligence in the care or
 6217  treatment of the claimant.
 6218         (a) The complaint or initial pleading must shall contain a
 6219  certificate of counsel that such reasonable investigation gave
 6220  rise to a good faith belief that grounds exist for an action
 6221  against each named defendant. For purposes of this section, good
 6222  faith may be shown to exist if the claimant or his or her
 6223  counsel has received a written opinion, which shall not be
 6224  subject to discovery by an opposing party, of an expert as
 6225  defined in s. 766.102 that there appears to be evidence of
 6226  medical negligence. If the court determines that the such
 6227  certificate of counsel was not made in good faith and that no
 6228  justiciable issue was presented against a health care provider
 6229  that fully cooperated in providing informal discovery, the court
 6230  shall award attorney’s fees and taxable costs against claimant’s
 6231  counsel, and shall submit the matter to The Florida Bar for
 6232  disciplinary review of the attorney.
 6233         (b) If the cause of action requires the plaintiff to
 6234  establish the breach of a standard of care other than negligence
 6235  in order to impose liability or secure specified damages arising
 6236  out of the rendering of, or the failure to render, medical care
 6237  or services, and the plaintiff intends to pursue such liability
 6238  or damages, the investigation and certification required by this
 6239  subsection must demonstrate grounds for a good faith belief that
 6240  the requirement is satisfied.
 6241         Section 88. Subsection (5) of section 766.106, Florida
 6242  Statutes, is amended to read:
 6243         766.106 Notice before filing action for medical negligence;
 6244  presuit screening period; offers for admission of liability and
 6245  for arbitration; informal discovery; review.—
 6246         (5) DISCOVERY AND ADMISSIBILITY.—No statement, discussion,
 6247  written document, report, or other work product generated by the
 6248  presuit screening process is discoverable or admissible in any
 6249  civil action for any purpose by the opposing party. All
 6250  participants, including, but not limited to, physicians,
 6251  investigators, witnesses, and employees or associates of the
 6252  defendant, are immune from civil liability arising from
 6253  participation in the presuit screening process. This subsection
 6254  does not prohibit a physician licensed under chapter 458 or
 6255  chapter 459, or a physician who holds a certificate to provide
 6256  expert testimony under s. 458.3167 or s. 459.0078, who submits a
 6257  verified written expert medical opinion from being subject to
 6258  disciplinary action pursuant to s. 456.073.
 6259         Section 89. Subsection (11) of section 766.1115, Florida
 6260  Statutes, is amended to read:
 6261         766.1115 Health care providers; creation of agency
 6262  relationship with governmental contractors.—
 6263         (11) APPLICABILITY.—
 6264         (a) This section applies to incidents occurring on or after
 6265  April 17, 1992.
 6266         (b) This section does not apply to any health care contract
 6267  entered into by the Department of Corrections which is subject
 6268  to s. 768.28(10)(a).
 6269         (c) This section does not apply to any affiliation
 6270  agreement or other contract subject to s. 768.28(10)(f).
 6271         (d)Nothing in This section does not reduce or limit in any
 6272  way reduces or limits the rights of the state or any of its
 6273  agencies or subdivisions to any benefit currently provided under
 6274  s. 768.28.
 6275         Section 90. Section 766.1183, Florida Statutes, is created
 6276  to read:
 6277         766.1183Standard of care for Medicaid providers.—
 6278         (1) As used in this section:
 6279         (a) The terms “applicant,” “medical assistance,” “medical
 6280  services,” and “Medicaid recipient” have the same meaning as in
 6281  s. 409.901.
 6282         (b) The term “provider” means a health care provider as
 6283  defined in s. 766.202, an ambulance provider licensed under
 6284  chapter 401, or an entity that qualifies for an exemption under
 6285  s. 400.9905(4)(e). The term includes:
 6286         1. Any person or entity for whom a provider is vicariously
 6287  liable; and
 6288         2. Any person or entity whose liability is based solely on
 6289  such person or entity being vicariously liable for the actions
 6290  of a provider.
 6291         (c) The term “wrongful manner” means in bad faith or with
 6292  malicious purpose or in a manner exhibiting wanton and willful
 6293  disregard of human rights, safety, or property, and shall be
 6294  construed in conformity with the standard set forth in s.
 6295  768.28(9)(a).
 6296         (2) A provider is not liable in excess of $200,000 per
 6297  claimant or $300,000 per occurrence for any cause of action
 6298  arising out of the rendering of, or the failure to render,
 6299  medical services to a Medicaid recipient, except as provided
 6300  under subsection (3). However, a judgment may be claimed and
 6301  rendered in excess of the amounts set forth in this subsection.
 6302  That portion of the judgment that exceeds these amounts may be
 6303  reported to the Legislature, but may be paid in part or in whole
 6304  by the state only by further act of the Legislature.
 6305         (3) A provider may be liable for an amount in excess of
 6306  $200,000 per claimant or $300,000 per occurrence only if the
 6307  claimant pleads and proves, by clear and convincing evidence,
 6308  that the provider acted in a wrongful manner. If the claimant so
 6309  pleads, the court, after a reasonable opportunity for discovery,
 6310  shall conduct a hearing before trial to determine if there is a
 6311  reasonable basis in evidence to conclude that the provider acted
 6312  in a wrongful manner. A claim for wrongful conduct is not
 6313  permitted, to the extent it exceeds the amounts set forth in
 6314  subsection (2), unless the claimant makes the showing required
 6315  by this subsection.
 6316         (4) At the time an application for medical assistance is
 6317  submitted, the Department of Children and Family Services shall
 6318  furnish the applicant with written notice of the provisions of
 6319  this section.
 6320         (5) This section does not limit or exclude the application
 6321  of any law, including s. 766.118, which places limitations upon
 6322  the recovery of civil damages.
 6323         (6) This section does not apply to any claim for damages to
 6324  which s. 768.28 applies.
 6325         Section 91. Section 766.1184, Florida Statutes, is created
 6326  to read:
 6327         766.1184Standard of care; low-income pool recipient.—
 6328         (1) As used in this section, the term:
 6329         (a) “Low-income pool recipient” means a low-income
 6330  individual who is uninsured or underinsured and who receives
 6331  primary care services from a provider which are delivered
 6332  exclusively using funding received by that provider under
 6333  proviso language accompanying specific appropriation 191 of the
 6334  2010-2011 fiscal year General Appropriations Act to establish
 6335  new or expand existing primary care clinics for low-income
 6336  persons who are uninsured or underinsured.
 6337         (b) “Provider” means a health care provider, as defined in
 6338  s. 766.202, which received funding under proviso language
 6339  accompanying specific appropriation 191 of the fiscal year 2010
 6340  11 General Appropriations Act to establish new or expand
 6341  existing primary care clinics for low-income persons who are
 6342  uninsured or underinsured. The term includes:
 6343         1. Any person or entity for whom a provider is vicariously
 6344  liable; and
 6345         2. Any person or entity whose liability is based solely on
 6346  such person or entity being vicariously liable for the actions
 6347  of a provider.
 6348         (c) “Wrongful manner” means in bad faith or with malicious
 6349  purpose or in a manner exhibiting wanton and willful disregard
 6350  of human rights, safety, or property, and shall be construed in
 6351  conformity with the standard set forth in s. 768.28(9)(a).
 6352  
 6353  The funding of the provider’s primary care clinic must have been
 6354  awarded pursuant to a plan approved by the Legislative Budget
 6355  Commission, and must be the subject of an agreement between the
 6356  provider and the Agency for Health Care Administration,
 6357  following the competitive solicitation of proposals to use low
 6358  income pool grant funds to provide primary care services in
 6359  general acute hospitals, county health departments, faith-based
 6360  and community clinics, and federally qualified health centers to
 6361  uninsured or underinsured persons.
 6362         (2) A provider is not liable in excess of $200,000 per
 6363  claimant or $300,000 per occurrence for any cause of action
 6364  arising out of the rendering of, or the failure to render,
 6365  primary care services to a low-income pool recipient, except as
 6366  provided under subsection (3). However, a judgment may be
 6367  claimed and rendered in excess of the amounts set forth in this
 6368  subsection. That portion of the judgment that exceeds these
 6369  amounts may be reported to the Legislature, but may be paid in
 6370  part or in whole by the state only by further act of the
 6371  Legislature.
 6372         (3) A provider may be liable for an amount in excess of
 6373  $200,000 per claimant or $300,000 per occurrence only if the
 6374  claimant pleads and proves, by clear and convincing evidence,
 6375  that the provider acted in a wrongful manner. If the claimant so
 6376  pleads, the court, after a reasonable opportunity for discovery,
 6377  shall conduct a hearing before trial to determine if there is a
 6378  reasonable basis in evidence to conclude that the provider acted
 6379  in a wrongful manner. A claim for wrongful conduct is not
 6380  permitted, to the extent it exceeds the amounts set forth in
 6381  subsection (2), unless the claimant makes the showing required
 6382  by this subsection.
 6383         (4) In order for this section to apply, the provider must:
 6384         (a) Develop, implement, and maintain policies and
 6385  procedures to:
 6386         1. Ensure that funds described in subsection (1) are used
 6387  exclusively to serve low-income persons who are uninsured or
 6388  underinsured;
 6389         2. Determine whether funds described in subsection (1) are
 6390  being used to provide primary care services to a particular
 6391  person; and
 6392         3. Identify whether an individual receiving primary care
 6393  services is a low-income pool recipient to whom the provisions
 6394  of this section apply.
 6395         (b) Furnish a low-income pool recipient with written notice
 6396  of the provisions of this section before providing primary care
 6397  services to the recipient.
 6398         (c) Be in compliance with the terms of any agreement
 6399  between the provider and the Agency for Health Care
 6400  Administration governing the receipt of the funds described in
 6401  subsection (1).
 6402         (5) This section does not limit or exclude the application
 6403  of any law, including s. 766.118, which places limitations upon
 6404  the recovery of civil damages.
 6405         (6) This section does not apply to any claim for damages to
 6406  which s. 768.28 applies.
 6407         Section 92. Subsection (4) of section 766.202, Florida
 6408  Statutes, is amended to read:
 6409         766.202 Definitions; ss. 766.201-766.212.—As used in ss.
 6410  766.201-766.212, the term:
 6411         (4) “Health care provider” means any hospital, ambulatory
 6412  surgical center, or mobile surgical facility as defined and
 6413  licensed under chapter 395; a birth center licensed under
 6414  chapter 383; any person licensed under chapter 458, chapter 459,
 6415  chapter 460, chapter 461, chapter 462, chapter 463, part I of
 6416  chapter 464, chapter 466, chapter 467, part XIV of chapter 468,
 6417  or chapter 486; a clinical lab licensed under chapter 483; a
 6418  health maintenance organization certificated under part I of
 6419  chapter 641; a blood bank; a plasma center; an industrial
 6420  clinic; a renal dialysis facility; or a professional association
 6421  partnership, corporation, joint venture, or other association
 6422  for professional activity by health care providers.
 6423         Section 93. Subsection (5) is added to section 766.203,
 6424  Florida Statutes, to read:
 6425         766.203 Presuit investigation of medical negligence claims
 6426  and defenses by prospective parties.—
 6427         (5) STANDARDS OF CARE.—If the cause of action that is the
 6428  basis for the litigation requires the plaintiff to establish the
 6429  breach of a standard of care other than negligence in order to
 6430  impose liability or secure specified damages arising out of the
 6431  rendering of, or the failure to render, medical care or
 6432  services, and the plaintiff intends to pursue such liability or
 6433  damages, the presuit investigations required of the claimant and
 6434  the prospective defendant by this section must ascertain that
 6435  there are reasonable grounds to believe that the requirement is
 6436  satisfied.
 6437         Section 94. Paragraph (b) of subsection (9) of section
 6438  768.28, Florida Statutes, is amended, and paragraphs (f) and (g)
 6439  are added to subsection (10) of that section, to read:
 6440         768.28 Waiver of sovereign immunity in tort actions;
 6441  recovery limits; limitation on attorney fees; statute of
 6442  limitations; exclusions; indemnification; risk management
 6443  programs.—
 6444         (9)
 6445         (b) As used in this subsection, the term:
 6446         1. “Employee” includes any volunteer firefighter.
 6447         2. “Officer, employee, or agent” includes, but is not
 6448  limited to, any health care provider when providing services
 6449  pursuant to s. 766.1115;, any member of the Florida Health
 6450  Services Corps, as defined in s. 381.0302, who provides
 6451  uncompensated care to medically indigent persons referred by the
 6452  Department of Health; any nonprofit independent college or
 6453  university located and chartered in this state which owns or
 6454  operates an accredited medical school, and its employees or
 6455  agents, when providing patient services pursuant to paragraph
 6456  (10)(f);, and any public defender or her or his employee or
 6457  agent, including, among others, an assistant public defender and
 6458  an investigator.
 6459         (10)
 6460         (f) For purposes of this section, any nonprofit independent
 6461  college or university located and chartered in this state which
 6462  owns or operates an accredited medical school, or any of its
 6463  employees or agents, and which has agreed in an affiliation
 6464  agreement or other contract to provide, or to permit its
 6465  employees or agents to provide, patient services as agents of a
 6466  teaching hospital, is considered an agent of the teaching
 6467  hospital while acting within the scope of and pursuant to
 6468  guidelines established in the contract. To the extent allowed by
 6469  law, the contract must provide for the indemnification of the
 6470  state, up to the limits set out in this chapter, by the agent
 6471  for any liability incurred which was caused by the negligence of
 6472  the college or university or its employees or agents.
 6473         1. For purposes of this paragraph, the term:
 6474         a. “Employee or agent” means an officer, employee, agent,
 6475  or servant of a nonprofit independent college or university
 6476  located and chartered in this state which owns or operates an
 6477  accredited medical school, including, but not limited to, the
 6478  faculty of the medical school, any health care practitioner or
 6479  licensee as defined in s. 456.001 for which the college or
 6480  university is vicariously liable, and the staff or administrator
 6481  of the medical school.
 6482         b. “Patient services” mean:
 6483         (I) Comprehensive health care services as defined in s.
 6484  641.19, including any related administrative service, provided
 6485  to patients in a teaching hospital or in a health care facility
 6486  that is a part of a nonprofit independent college or university
 6487  located and chartered in this state which owns or operates an
 6488  accredited medical school, pursuant to an affiliation agreement
 6489  or other contract with a teaching hospital;
 6490         (II) Training and supervision of interns, residents, and
 6491  fellows providing patient services in a teaching hospital or in
 6492  a health care facility that is a part of a nonprofit independent
 6493  college or university located and chartered in this state which
 6494  owns or operates an accredited medical school, pursuant to an
 6495  affiliation agreement or other contract with a teaching
 6496  hospital;
 6497         (III) Participation in medical research protocols; or
 6498         (IV) Training and supervision of medical students in a
 6499  teaching hospital or in a health care facility owned by a not
 6500  for-profit college or university that owns or operates an
 6501  accredited medical school, pursuant to an affiliation agreement
 6502  or other contract with a teaching hospital.
 6503         c. “Teaching hospital” means a teaching hospital as defined
 6504  in s. 408.07 which is owned or operated by the state, a county
 6505  or municipality, a public health trust, a special taxing
 6506  district, a governmental entity having health care
 6507  responsibilities, or a not-for-profit entity that operates such
 6508  facilities as an agent of the state or a political subdivision
 6509  of the state under a lease or other contract.
 6510         2. The teaching hospital or the medical school, or its
 6511  employees or agents, must provide written notice to each
 6512  patient, or the patient’s legal representative, receipt of which
 6513  must be acknowledged in writing, that the college or university
 6514  that owns or operates the medical school and the employees or
 6515  agents of that college or university are acting as agents of the
 6516  teaching hospital and that the exclusive remedy for injury or
 6517  damage suffered as the result of any act or omission of the
 6518  teaching hospital, the college or university that owns or
 6519  operates the medical school, or the employees or agents of the
 6520  college or university while acting within the scope of duties
 6521  pursuant to the affiliation agreement or other contract with a
 6522  teaching hospital, is by commencement of an action pursuant to
 6523  the provisions of this section.
 6524         3. This paragraph does not designate any employee providing
 6525  contracted patient services in a teaching hospital as an
 6526  employee or agent of the state for purposes of chapter 440.
 6527         (g) Providers or vendors, 75 percent of whose client
 6528  population consists of individuals with a developmental
 6529  disability as defined in ss. 393.063 and 400.960, individuals
 6530  who are blind or severely handicapped individuals as defined in
 6531  s. 413.033, individuals who have a mental illness as defined
 6532  under s. 394.455, or individuals who have any combination of
 6533  these conditions, which have contractually agreed to act on
 6534  behalf of the Agency for Persons with Disabilities, the Agency
 6535  for Health Care Administration, the Division of Blind Services
 6536  in the Department of Education, or the Mental Health Program
 6537  Office of the Department of Children and Family Services to
 6538  provide services to such individuals, and their employees or
 6539  agents, are considered agents of the state, solely with respect
 6540  to the provision of such services while acting within the scope
 6541  of and pursuant to guidelines established by contract, a
 6542  Medicaid waiver agreement, or rule. The contracts for such
 6543  services must provide for the indemnification of the state by
 6544  the agent for any liabilities incurred up to the limits
 6545  specified in this section.
 6546         Section 95. Legislative findings and intent.
 6547         (1) The Legislature finds that:
 6548         (a) Access to high-quality, comprehensive, and affordable
 6549  health care for all persons in this state is a necessary state
 6550  goal and that teaching hospitals play an intrinsic and essential
 6551  role in providing that access.
 6552         (b) Graduate medical education, provided by nonprofit
 6553  independent colleges and universities located and chartered in
 6554  this state which own or operate medical schools, helps provide
 6555  the comprehensive specialty training needed by medical school
 6556  graduates to develop and refine the skills essential to the
 6557  provision of high-quality health care for our state residents.
 6558  Much of that education and training is provided in teaching
 6559  hospitals under the direct supervision of medical faculty who
 6560  provide guidance, training, and oversight, and serve as role
 6561  models to their students.
 6562         (c) A large proportion of medical care is provided in
 6563  teaching hospitals that serve as safety nets for many indigent
 6564  and underserved patients who otherwise might not receive the
 6565  medical help they need. Resident physician training that takes
 6566  place in such hospitals provides much of the care provided to
 6567  this population. Medical faculty, supervising such training and
 6568  care, are a vital link between educating and training resident
 6569  physicians and ensuring the provision of quality care for
 6570  indigent and underserved residents. Physicians that assume this
 6571  role are often called upon to juggle the demands of patient
 6572  care, teaching, research, health policy, and budgetary issues
 6573  related to the programs they administer.
 6574         (d) While teaching hospitals are afforded sovereign
 6575  immunity protections under s. 768.28, Florida Statutes, the
 6576  nonprofit independent colleges and universities located and
 6577  chartered in this state which own or operate medical schools and
 6578  which enter into affiliation agreements or contracts with the
 6579  teaching hospitals to provide patient services are not afforded
 6580  such sovereign immunity protections.
 6581         (e) The employees or agents of nonprofit independent
 6582  colleges and universities located and chartered in this state
 6583  which enter into affiliation agreements or contracts with
 6584  teaching hospitals to provide patient services do not have the
 6585  same level of protection against liability claims as teaching
 6586  hospitals and their employees and agents that provide the same
 6587  patient services to the same patients. Thus, these colleges and
 6588  universities and their employees and agents are
 6589  disproportionately affected by claims arising out of alleged
 6590  medical malpractice and other allegedly negligent acts. Given
 6591  the recent growth in medical schools and medical education
 6592  programs and ongoing efforts to support, strengthen, and
 6593  increase physician residency training positions and medical
 6594  faculty in both existing and newly designated teaching
 6595  hospitals, this exposure and the consequent disparity in
 6596  liability exposure will continue to increase. The vulnerability
 6597  of these colleges and universities to claims of medical
 6598  malpractice will only add to the current physician workforce
 6599  crisis in Florida and can be alleviated only through legislative
 6600  action.
 6601         (f) Ensuring that the employees and agents of nonprofit
 6602  independent colleges and universities located and chartered in
 6603  this state which own or operated medical schools are able to
 6604  continue to treat patients, provide graduate medical education,
 6605  supervise medical students, engage in research, and provide
 6606  administrative support and services in teaching hospitals is an
 6607  overwhelming public necessity.
 6608         (2) The Legislature intends that:
 6609         (a) Employees and agents of nonprofit independent colleges
 6610  and universities located and chartered in this state which own
 6611  or operate medical schools, who provide patient services as
 6612  agents of a teaching hospital be immune from lawsuits in the
 6613  same manner and to the same extent as employees and agents of
 6614  teaching hospitals in this state under existing law, and that
 6615  such colleges and universities and their employees and agents
 6616  not be held personally liable in tort or named as a party
 6617  defendant in an action while providing patient services in a
 6618  teaching hospital, unless such services are provided in bad
 6619  faith, with malicious purpose, or in a manner exhibiting wanton
 6620  and willful disregard of human rights, safety, or property.
 6621         (b) Nonprofit independent private colleges and universities
 6622  located and chartered in this state which own or operate medical
 6623  schools and which permit their employees or agents to provide
 6624  patient services in teaching hospitals pursuant to an
 6625  affiliation agreement or other contract, be afforded sovereign
 6626  immunity protections under s. 768.28, Florida Statutes.
 6627         (3) The Legislature declares that there is an overwhelming
 6628  public necessity for extending the state’s sovereign immunity to
 6629  nonprofit independent colleges and universities located and
 6630  chartered in this state which own or operate medical schools and
 6631  provide patient services in teaching hospitals, and to their
 6632  employees and agents, and that there is no alternative method of
 6633  meeting such public necessity.
 6634         (4) The terms “employee or agent,” “patient services,” and
 6635  “teaching hospital” used in this section have the same meaning
 6636  as the terms defined in s. 768.28, Florida Statutes, as amended
 6637  by this act.
 6638         Section 96. Section 1004.41, Florida Statutes, is amended
 6639  to read:
 6640         1004.41 University of Florida; J. Hillis Miller Health
 6641  Center.—
 6642         (1) There is established the J. Hillis Miller Health Center
 6643  at the University of Florida, including campuses at Gainesville
 6644  and Jacksonville and affiliated teaching hospitals, which shall
 6645  include the following colleges:
 6646         (a) College of Dentistry.
 6647         (b) College of Public Health and Health Professions.
 6648         (c) College of Medicine.
 6649         (d) College of Nursing.
 6650         (e) College of Pharmacy.
 6651         (f) College of Veterinary Medicine and related teaching
 6652  hospitals.
 6653         (2) Each college of the health center shall be so
 6654  maintained and operated so as to comply with the standards
 6655  approved by a nationally recognized association for
 6656  accreditation.
 6657         (3)(a) The University of Florida Health Center Operations
 6658  and Maintenance Trust Fund shall be administered by the
 6659  University of Florida Board of Trustees. Funds shall be credited
 6660  to the trust fund from the sale of goods and services performed
 6661  by the University of Florida Veterinary Medicine Teaching
 6662  Hospital. The purpose of the trust fund is to support the
 6663  instruction, research, and service missions of the University of
 6664  Florida College of Veterinary Medicine.
 6665         (b) Notwithstanding the provisions of s. 216.301, and
 6666  pursuant to s. 216.351, any balance in the trust fund at the end
 6667  of any fiscal year shall remain in the trust fund and shall be
 6668  available for carrying out the purposes of the trust fund.
 6669         (4)(a) The University of Florida Board of Trustees shall
 6670  lease the hospital facilities of the health center known as the
 6671  Shands Teaching Hospital and Clinics on the Gainesville campus
 6672  of the University of Florida and all furnishings, equipment, and
 6673  other chattels or choses in action used in the operation of
 6674  Shands Teaching Hospital and Clinics the hospital, to Shands
 6675  Teaching Hospital and Clinics, Inc., a private not-for-profit
 6676  corporation organized solely for the primary purpose of
 6677  supporting the University of Florida Board of Trustees’ health
 6678  affairs mission of community service and patient care, education
 6679  and training of health professionals, and clinical research. In
 6680  furtherance of that primary purpose, Shands Teaching Hospital
 6681  and Clinics, Inc., shall operate operating the hospital and
 6682  ancillary health care facilities as deemed of the health center
 6683  and other health care facilities and programs determined to be
 6684  necessary by the board of Shands Teaching Hospital and Clinics,
 6685  Inc. the nonprofit corporation. The rental for the hospital
 6686  facilities shall be an amount equal to the debt service on bonds
 6687  or revenue certificates issued solely for capital improvements
 6688  to the hospital facilities or as otherwise provided by law.
 6689         (b) The University of Florida Board of Trustees shall
 6690  provide in the lease or by separate contract or agreement with
 6691  Shands Teaching Hospital and Clinics, Inc., the not-for-profit
 6692  corporation for the following:
 6693         1. Approval of the articles of incorporation of Shands
 6694  Teaching Hospital and Clinics, Inc., the not-for-profit
 6695  corporation by the University of Florida Board of Trustees. and
 6696  the
 6697         2. Governance of Shands Teaching Hospital and Clinics,
 6698  Inc., the not-for-profit corporation by a board of directors
 6699  appointed, subject to removal, and chaired by the President of
 6700  the University of Florida, or his or her designee, and vice
 6701  chaired by the Vice President for Health Affairs of the
 6702  University of Florida, or his or her designee.
 6703         3.2.The Use of hospital facilities and personnel in
 6704  support of community service and patient care, the research
 6705  programs, and of the teaching roles role of the health center.
 6706         4.3.The Continued recognition of the collective bargaining
 6707  units and collective bargaining agreements as currently composed
 6708  and recognition of the certified labor organizations
 6709  representing those units and agreements.
 6710         5.4.The Use of hospital facilities and personnel in
 6711  connection with research programs conducted by the health
 6712  center.
 6713         6.5. Reimbursement to Shands Teaching Hospital and Clinics,
 6714  Inc., the hospital for indigent patients, state-mandated
 6715  programs, underfunded state programs, and costs to Shands
 6716  Teaching Hospital and Clinics, Inc., the hospital for support of
 6717  the teaching and research programs of the health center. Such
 6718  reimbursement shall be appropriated to either the health center
 6719  or Shands Teaching Hospital and Clinics, Inc., the hospital each
 6720  year by the Legislature after review and approval of the request
 6721  for funds.
 6722         7. Audit of the financial statements of Shands Teaching
 6723  Hospital and Clinics, Inc., in accordance with generally
 6724  accepted accounting principles as prescribed by the Governmental
 6725  Accounting Standards Board for a separate corporation affiliated
 6726  with a governmental entity that holds a voting majority interest
 6727  of the affiliated corporation’s governing board. The financial
 6728  statements shall be provided to the University of Florida Board
 6729  of Trustees for attachment to its audited financial statement
 6730  that is provided to the Auditor General. The University of
 6731  Florida may obtain additional financial information from Shands
 6732  Teaching Hospital and Clinics, Inc., upon request by the Auditor
 6733  General. This subparagraph applies equally to any not-for-profit
 6734  subsidiary of Shands Teaching Hospitals and Clinics, Inc., which
 6735  directly delivers health care services and also qualifies as an
 6736  instrumentality of the state under the governance control and
 6737  the primary purpose standards specified in this section.
 6738         (c) The University of Florida Board of Trustees may, with
 6739  the approval of the Legislature, increase the hospital
 6740  facilities or remodel or renovate them if, provided that the
 6741  rental paid by Shands Teaching Hospital and Clinics, Inc., the
 6742  hospital for such new, remodeled, or renovated facilities is
 6743  sufficient to amortize the costs thereof over a reasonable
 6744  period of time or fund the debt service for any bonds or revenue
 6745  certificates issued to finance such improvements.
 6746         (d) The University of Florida Board of Trustees may is
 6747  authorized to provide to Shands Teaching Hospital and Clinics,
 6748  Inc., the not-for-profit corporation leasing the hospital
 6749  facilities and its not-for-profit subsidiaries and affiliates,
 6750  and any successor corporation that acts in support of the board
 6751  of trustees, comprehensive general liability insurance,
 6752  including professional liability, from a self-insurance trust
 6753  program established pursuant to s. 1004.24.
 6754         (e) Shands Teaching Hospital and Clinics, Inc., in support
 6755  of the health affairs mission of the University of Florida Board
 6756  of Trustees and with the board’s prior approval, may create or
 6757  have created for-profit or not-for-profit subsidiaries and
 6758  affiliates, or both. The University of Florida Board of
 6759  Trustees, which may act through the president of the university
 6760  or his or her designee, may control Shands Teaching Hospital and
 6761  Clinics, Inc. For purposes of sovereign immunity pursuant to s.
 6762  768.28(2), Shands Teaching Hospital and Clinics, Inc., and any
 6763  not-for-profit subsidiary that directly delivers health care
 6764  services and whose governing board is chaired by the president
 6765  of the university or his or her designee and is controlled by
 6766  the University of Florida Board of Trustees, that may act
 6767  through the president of the university or his or her designee,
 6768  and whose primary purpose is the support of the University of
 6769  Florida Board of Trustees’ health affairs mission, shall be
 6770  conclusively deemed a corporation primarily acting as an
 6771  instrumentality of the state.
 6772         (f)(e)If In the event that the lease of Shands Teaching
 6773  Hospital and Clinics the hospital facilities to Shands Teaching
 6774  Hospital and Clinics, Inc., the not-for-profit corporation is
 6775  terminated for any reason, the University of Florida Board of
 6776  Trustees shall resume management and operation of Shands
 6777  Teaching Hospital and Clinics the hospital facilities. In such
 6778  event, the University of Florida Board of Trustees may use is
 6779  authorized to utilize revenues generated from the operation of
 6780  Shands Teaching Hospital and Clinics the hospital facilities to
 6781  pay the costs and expenses of operating the hospital facility
 6782  for the remainder of the fiscal year in which such termination
 6783  occurs.
 6784         (5)(a) Shands Jacksonville Medical Center, Inc., and its
 6785  parent, Shands Jacksonville HealthCare, Inc., are private not
 6786  for-profit corporations organized primarily to support the
 6787  health affairs mission of the University of Florida Board of
 6788  Trustees in community service and patient care, education and
 6789  training of health affairs professionals, and clinical research.
 6790  Shands Jacksonville Medical Center, Inc., is a teaching hospital
 6791  affiliated with the University of Florida Board of Trustees and
 6792  is located, in part, on the Jacksonville Campus of the
 6793  University of Florida. Shands Jacksonville Medical Center, Inc.,
 6794  and Shands Jacksonville HealthCare, Inc., in support of the
 6795  health affairs mission of the University of Florida Board of
 6796  Trustees and with its prior approval, may create or have created
 6797  for-profit or not-for-profit subsidiaries or affiliates, or
 6798  both.
 6799         (b) The University of Florida Board of Trustees shall
 6800  provide in the lease or by separate contract or agreement with
 6801  Shands Jacksonville Medical Center, Inc., and Shands
 6802  Jacksonville HealthCare, Inc., for the following:
 6803         1. Approval of the articles of incorporation of Shands
 6804  Jacksonville Medical Center, Inc., and of Shands Jacksonville
 6805  HealthCare, Inc., by the University of Florida Board of
 6806  Trustees, which may act through the president of the university
 6807  or his or her designee. In approving the articles of
 6808  incorporation of Shands Jacksonville Medical Center, Inc., and
 6809  of Shands Jacksonville HealthCare, Inc., the president of the
 6810  university, or his or her designee, may act as the chair of the
 6811  board of directors, or the president of the university or his or
 6812  her designee or members of the University of Florida Board of
 6813  Trustees may act as the approving body of Shands Jacksonville
 6814  Medical Center, Inc., or Shands Jacksonville HealthCare, Inc.
 6815         2. Governance of Shands Jacksonville Medical Center, Inc.,
 6816  and of Shands Jacksonville HealthCare, Inc., by boards of
 6817  directors appointed, subject to removal, and chaired by the
 6818  President of the University of Florida, or his or her designee.
 6819  One director of each board may be so appointed after being
 6820  nominated by the mayor of the City of Jacksonville subject to
 6821  the applicable standards for directors of such board. If there
 6822  is a vice chair of the board of directors of Shands Jacksonville
 6823  Medical Center, Inc., or Shands Jacksonville HealthCare, Inc.,
 6824  the Vice President for Health Affairs of the University of
 6825  Florida, or his or her designee or the designee of the president
 6826  of the university, shall hold that position.
 6827         3. Use of the Shands Jacksonville Medical Center, Inc.,
 6828  hospital facilities and personnel in support of community
 6829  service and patient care, research programs, and the teaching
 6830  roles of the health center of the University of Florida Board of
 6831  Trustees.
 6832         4. Reimbursement to Shands Jacksonville Medical Center,
 6833  Inc., for indigent patients, state-mandated programs,
 6834  underfunded state programs, and costs to the not-for-profit
 6835  corporation for support of the teaching and research programs of
 6836  the health center. Such reimbursement shall be appropriated to
 6837  the health center or the not-for-profit corporation each year by
 6838  the Legislature after review and approval of the request for
 6839  funds.
 6840         5. Audit of the financial statements of Shands Jacksonville
 6841  Medical Center, Inc., and Shands Jacksonville HealthCare, Inc.,
 6842  in accordance with generally accepted accounting principles as
 6843  prescribed by the Governmental Accounting Standards Board for a
 6844  separate corporation affiliated with a governmental entity that
 6845  holds a voting majority interest of the affiliated corporation’s
 6846  governing board. The financial statements shall be provided to
 6847  the University of Florida Board of Trustees for attachment to
 6848  its audited financial statement that is provided to the Auditor
 6849  General. The University of Florida may obtain additional
 6850  financial information from Shands Jacksonville Medical Center,
 6851  Inc., and Shands Jacksonville HealthCare, Inc., upon request by
 6852  the Auditor General. This subparagraph applies equally to any
 6853  not-for-profit subsidiary that directly delivers health care
 6854  services and also qualifies as an instrumentality of the state
 6855  under the governance control and primary purpose standards
 6856  specified in this section.
 6857         (c) The University of Florida Board of Trustees, which may
 6858  act through the president of the university or his or her
 6859  designee, may control Shands Jacksonville Medical Center, Inc.,
 6860  and Shands Jacksonville HealthCare, Inc.
 6861         (d) For purposes of sovereign immunity pursuant to s.
 6862  768.28(2), Shands Jacksonville Medical Center, Inc., Shands
 6863  Jacksonville HealthCare, Inc., and any not-for-profit subsidiary
 6864  that directly delivers health care services and whose governing
 6865  board is chaired by the President of the University of Florida
 6866  or his or her designee and is controlled by the University of
 6867  Florida Board of Trustees, that may act through the president of
 6868  the university or his or designee, and whose primary purpose is
 6869  the support of the University of Florida Board of Trustees’
 6870  health affairs mission, shall be conclusively deemed
 6871  corporations primarily acting as instrumentalities of the state.
 6872         (e)(f) The University of Florida Board of Trustees may is
 6873  authorized to provide to Shands Jacksonville HealthCare, Inc.,
 6874  and Shands Jacksonville Medical Center, Inc., and any of their
 6875  its not-for-profit subsidiaries and affiliates and any successor
 6876  corporation that acts in support of the board of trustees,
 6877  comprehensive general liability coverage, including professional
 6878  liability, from the self-insurance programs established pursuant
 6879  to s. 1004.24.
 6880         Section 97. Sections 409.9121, 409.919, and 624.915,
 6881  Florida Statutes, are repealed.
 6882         Section 98. Section 409.942, Florida Statutes, is
 6883  transferred and renumbered as section 414.29, Florida Statutes.
 6884         Section 99. Paragraph (a) of subsection (1) of section
 6885  443.111, Florida Statutes, is amended to read:
 6886         443.111 Payment of benefits.—
 6887         (1) MANNER OF PAYMENT.—Benefits are payable from the fund
 6888  in accordance with rules adopted by the Agency for Workforce
 6889  Innovation, subject to the following requirements:
 6890         (a) Benefits are payable by mail or electronically.
 6891  Notwithstanding s. 414.29 409.942(4), the agency may develop a
 6892  system for the payment of benefits by electronic funds transfer,
 6893  including, but not limited to, debit cards, electronic payment
 6894  cards, or any other means of electronic payment that the agency
 6895  deems to be commercially viable or cost-effective. Commodities
 6896  or services related to the development of such a system shall be
 6897  procured by competitive solicitation, unless they are purchased
 6898  from a state term contract pursuant to s. 287.056. The agency
 6899  shall adopt rules necessary to administer the system.
 6900         Section 100. Sections 409.944, 409.945, and 409.946,
 6901  Florida Statutes, are transferred and renumbered as sections
 6902  163.464, 163.465, and 163.466, Florida Statutes, respectively.
 6903         Section 101. Sections 409.953 and 409.9531, Florida
 6904  Statutes, are transferred and renumbered as sections 402.81 and
 6905  402.82, Florida Statutes, respectively.
 6906         Section 102. The Agency for Health Care Administration
 6907  shall submit a reorganizational plan to the Governor, the
 6908  Speaker of the House of Representatives, and the President of
 6909  the Senate by January 1, 2012, which converts the agency from a
 6910  check-writing and fraud-chasing agency into a contract
 6911  compliance and monitoring agency.
 6912         Section 103. Effective December 1, 2011, if the Legislature
 6913  has not received a letter from the Governor stating that the
 6914  federal Centers for Medicare and Medicaid has approved the
 6915  waivers necessary to implement the Medicaid managed care reforms
 6916  contained in this act, the State of Florida shall withdraw from
 6917  the Medicaid program effective December 31, 2011.
 6918         Section 104. If any provision of this act or its
 6919  application to any person or circumstance is held invalid, the
 6920  invalidity does not affect other provisions or applications of
 6921  the act which can be given effect without the invalid provision
 6922  or application, and to this end the provisions of this act are
 6923  severable.
 6924         Section 105. This act shall take effect upon becoming a
 6925  law.