ENROLLED
       2012 Legislature                    CS for SB 730, 1st Engrossed
       
       
       
       
       
       
                                                              2012730er
    1  
    2         An act relating to Medicaid managed care; amending s.
    3         408.7056, F.S.; specifying which health plan entities
    4         are subject to the subscriber assistance program;
    5         amending s. 409.912, F.S.; authorizing the Agency for
    6         Health Care Administration to extend or modify certain
    7         contracts with behavioral health care providers under
    8         specified circumstances; removing the expiration of
    9         the authority of the agency to impose fines against
   10         entities under contract with the department under
   11         specified circumstances; amending s. 409.9122, F.S.;
   12         directing the agency to calculate a medical loss ratio
   13         for managed care plans under specified circumstances
   14         and providing the method of calculation; amending s.
   15         409.961, F.S.; specifying that contracts necessary to
   16         administer the Medicaid program are not rules and are
   17         not subject to ch. 120, F.S., the Administrative
   18         Procedure Act; amending s. 409.962, F.S.; including
   19         certain Medicare plans in the definition of the term
   20         “comprehensive long-term care plan”; including certain
   21         Medicare plans in the managed medical assistance
   22         program by amending the definition of the term
   23         “eligible plan”; amending s. 409.966, F.S.; modifying
   24         a preference for plans with in-state operations;
   25         revising a definition; amending s. 409.967, F.S.;
   26         limiting the penalty that a plan must pay if it leaves
   27         a region before the end of the contract term;
   28         directing the agency to calculate a medical loss ratio
   29         for managed care plans under specified circumstances
   30         and providing the method of calculation; amending s.
   31         409.973, F.S.; requiring a managed care plan to inform
   32         the enrollee of the importance of having a primary
   33         care provider; amending s. 409.974, F.S.; revising
   34         requirements for participation by specialty plans;
   35         revising requirements for participation by certain
   36         Medicare plans; requiring contracts to meet certain
   37         standards; setting enrollment requirements; amending
   38         s. 409.981, F.S.; modifying requirements for
   39         participation by Medicare Advantage Special Needs
   40         Plans; requiring contracts to meet certain standards;
   41         establishing enrollment requirements; amending s.
   42         627.602, F.S.; applying federal internal grievance
   43         procedures to certain health insurance policies;
   44         providing exceptions; creating s. 627.6513, F.S.;
   45         applying federal internal grievance procedures to
   46         certain group health insurance policies; providing
   47         exceptions; creating s. 641.312, F.S.; authorizing the
   48         Office of Insurance Regulation to adopt rules to
   49         administer the federal procedures; providing effective
   50         dates.
   51  
   52  Be It Enacted by the Legislature of the State of Florida:
   53  
   54         Section 1. Effective May 12, 2012, subsection (15) is added
   55  to section 408.7056, Florida Statutes, to read:
   56         408.7056 Subscriber Assistance Program.—
   57         (15) This section applies only to prepaid health clinics
   58  certified under chapter 641, Florida Healthy Kids plans, and
   59  health plan health insurance policies or health maintenance
   60  contracts that meet the requirements of 45 C.F.R. s. 147.140,
   61  but only if the health plan does not elect to have all of its
   62  health insurance policies or health maintenance contracts
   63  subject to applicable internal grievance and external review
   64  processes by an independent review organization. A health plan
   65  must notify the agency in writing if it elects to have all of
   66  its health insurance policies or health maintenance contracts
   67  subject to such external review.
   68         Section 2. Paragraph (b) of subsection (4) and subsection
   69  (21) of section 409.912, Florida Statutes, are amended to read:
   70         409.912 Cost-effective purchasing of health care.—The
   71  agency shall purchase goods and services for Medicaid recipients
   72  in the most cost-effective manner consistent with the delivery
   73  of quality medical care. To ensure that medical services are
   74  effectively utilized, the agency may, in any case, require a
   75  confirmation or second physician’s opinion of the correct
   76  diagnosis for purposes of authorizing future services under the
   77  Medicaid program. This section does not restrict access to
   78  emergency services or poststabilization care services as defined
   79  in 42 C.F.R. part 438.114. Such confirmation or second opinion
   80  shall be rendered in a manner approved by the agency. The agency
   81  shall maximize the use of prepaid per capita and prepaid
   82  aggregate fixed-sum basis services when appropriate and other
   83  alternative service delivery and reimbursement methodologies,
   84  including competitive bidding pursuant to s. 287.057, designed
   85  to facilitate the cost-effective purchase of a case-managed
   86  continuum of care. The agency shall also require providers to
   87  minimize the exposure of recipients to the need for acute
   88  inpatient, custodial, and other institutional care and the
   89  inappropriate or unnecessary use of high-cost services. The
   90  agency shall contract with a vendor to monitor and evaluate the
   91  clinical practice patterns of providers in order to identify
   92  trends that are outside the normal practice patterns of a
   93  provider’s professional peers or the national guidelines of a
   94  provider’s professional association. The vendor must be able to
   95  provide information and counseling to a provider whose practice
   96  patterns are outside the norms, in consultation with the agency,
   97  to improve patient care and reduce inappropriate utilization.
   98  The agency may mandate prior authorization, drug therapy
   99  management, or disease management participation for certain
  100  populations of Medicaid beneficiaries, certain drug classes, or
  101  particular drugs to prevent fraud, abuse, overuse, and possible
  102  dangerous drug interactions. The Pharmaceutical and Therapeutics
  103  Committee shall make recommendations to the agency on drugs for
  104  which prior authorization is required. The agency shall inform
  105  the Pharmaceutical and Therapeutics Committee of its decisions
  106  regarding drugs subject to prior authorization. The agency is
  107  authorized to limit the entities it contracts with or enrolls as
  108  Medicaid providers by developing a provider network through
  109  provider credentialing. The agency may competitively bid single
  110  source-provider contracts if procurement of goods or services
  111  results in demonstrated cost savings to the state without
  112  limiting access to care. The agency may limit its network based
  113  on the assessment of beneficiary access to care, provider
  114  availability, provider quality standards, time and distance
  115  standards for access to care, the cultural competence of the
  116  provider network, demographic characteristics of Medicaid
  117  beneficiaries, practice and provider-to-beneficiary standards,
  118  appointment wait times, beneficiary use of services, provider
  119  turnover, provider profiling, provider licensure history,
  120  previous program integrity investigations and findings, peer
  121  review, provider Medicaid policy and billing compliance records,
  122  clinical and medical record audits, and other factors. Providers
  123  are not entitled to enrollment in the Medicaid provider network.
  124  The agency shall determine instances in which allowing Medicaid
  125  beneficiaries to purchase durable medical equipment and other
  126  goods is less expensive to the Medicaid program than long-term
  127  rental of the equipment or goods. The agency may establish rules
  128  to facilitate purchases in lieu of long-term rentals in order to
  129  protect against fraud and abuse in the Medicaid program as
  130  defined in s. 409.913. The agency may seek federal waivers
  131  necessary to administer these policies.
  132         (4) The agency may contract with:
  133         (b) An entity that is providing comprehensive behavioral
  134  health care services to certain Medicaid recipients through a
  135  capitated, prepaid arrangement pursuant to the federal waiver
  136  provided for by s. 409.905(5). Such entity must be licensed
  137  under chapter 624, chapter 636, or chapter 641, or authorized
  138  under paragraph (c) or paragraph (d), and must possess the
  139  clinical systems and operational competence to manage risk and
  140  provide comprehensive behavioral health care to Medicaid
  141  recipients. As used in this paragraph, the term “comprehensive
  142  behavioral health care services” means covered mental health and
  143  substance abuse treatment services that are available to
  144  Medicaid recipients. The secretary of the Department of Children
  145  and Family Services shall approve provisions of procurements
  146  related to children in the department’s care or custody before
  147  enrolling such children in a prepaid behavioral health plan. Any
  148  contract awarded under this paragraph must be competitively
  149  procured. In developing the behavioral health care prepaid plan
  150  procurement document, the agency shall ensure that the
  151  procurement document requires the contractor to develop and
  152  implement a plan to ensure compliance with s. 394.4574 related
  153  to services provided to residents of licensed assisted living
  154  facilities that hold a limited mental health license. Except as
  155  provided in subparagraph 5., and except in counties where the
  156  Medicaid managed care pilot program is authorized pursuant to s.
  157  409.91211, the agency shall seek federal approval to contract
  158  with a single entity meeting these requirements to provide
  159  comprehensive behavioral health care services to all Medicaid
  160  recipients not enrolled in a Medicaid managed care plan
  161  authorized under s. 409.91211, a provider service network
  162  authorized under paragraph (d), or a Medicaid health maintenance
  163  organization in an AHCA area. In an AHCA area where the Medicaid
  164  managed care pilot program is authorized pursuant to s.
  165  409.91211 in one or more counties, the agency may procure a
  166  contract with a single entity to serve the remaining counties as
  167  an AHCA area or the remaining counties may be included with an
  168  adjacent AHCA area and are subject to this paragraph. Each
  169  entity must offer a sufficient choice of providers in its
  170  network to ensure recipient access to care and the opportunity
  171  to select a provider with whom they are satisfied. The network
  172  shall include all public mental health hospitals. To ensure
  173  unimpaired access to behavioral health care services by Medicaid
  174  recipients, all contracts issued pursuant to this paragraph must
  175  require 80 percent of the capitation paid to the managed care
  176  plan, including health maintenance organizations and capitated
  177  provider service networks, to be expended for the provision of
  178  behavioral health care services. If the managed care plan
  179  expends less than 80 percent of the capitation paid for the
  180  provision of behavioral health care services, the difference
  181  shall be returned to the agency. The agency shall provide the
  182  plan with a certification letter indicating the amount of
  183  capitation paid during each calendar year for behavioral health
  184  care services pursuant to this section. The agency may reimburse
  185  for substance abuse treatment services on a fee-for-service
  186  basis until the agency finds that adequate funds are available
  187  for capitated, prepaid arrangements.
  188         1. The agency shall modify the contracts with the entities
  189  providing comprehensive inpatient and outpatient mental health
  190  care services to Medicaid recipients in Hillsborough, Highlands,
  191  Hardee, Manatee, and Polk Counties, to include substance abuse
  192  treatment services.
  193         2. Except as provided in subparagraph 5., the agency and
  194  the Department of Children and Family Services shall contract
  195  with managed care entities in each AHCA area except area 6 or
  196  arrange to provide comprehensive inpatient and outpatient mental
  197  health and substance abuse services through capitated prepaid
  198  arrangements to all Medicaid recipients who are eligible to
  199  participate in such plans under federal law and regulation. In
  200  AHCA areas where eligible individuals number less than 150,000,
  201  the agency shall contract with a single managed care plan to
  202  provide comprehensive behavioral health services to all
  203  recipients who are not enrolled in a Medicaid health maintenance
  204  organization, a provider service network authorized under
  205  paragraph (d), or a Medicaid capitated managed care plan
  206  authorized under s. 409.91211. The agency may contract with more
  207  than one comprehensive behavioral health provider to provide
  208  care to recipients who are not enrolled in a Medicaid capitated
  209  managed care plan authorized under s. 409.91211, a provider
  210  service network authorized under paragraph (d), or a Medicaid
  211  health maintenance organization in AHCA areas where the eligible
  212  population exceeds 150,000. In an AHCA area where the Medicaid
  213  managed care pilot program is authorized pursuant to s.
  214  409.91211 in one or more counties, the agency may procure a
  215  contract with a single entity to serve the remaining counties as
  216  an AHCA area or the remaining counties may be included with an
  217  adjacent AHCA area and shall be subject to this paragraph.
  218  Contracts for comprehensive behavioral health providers awarded
  219  pursuant to this section shall be competitively procured. Both
  220  for-profit and not-for-profit corporations are eligible to
  221  compete. Managed care plans contracting with the agency under
  222  subsection (3) or paragraph (d) shall provide and receive
  223  payment for the same comprehensive behavioral health benefits as
  224  provided in AHCA rules, including handbooks incorporated by
  225  reference. In AHCA area 11, the agency shall contract with at
  226  least two comprehensive behavioral health care providers to
  227  provide behavioral health care to recipients in that area who
  228  are enrolled in, or assigned to, the MediPass program. One of
  229  the behavioral health care contracts must be with the existing
  230  provider service network pilot project, as described in
  231  paragraph (d), for the purpose of demonstrating the cost
  232  effectiveness of the provision of quality mental health services
  233  through a public hospital-operated managed care model. Payment
  234  shall be at an agreed-upon capitated rate to ensure cost
  235  savings. Of the recipients in area 11 who are assigned to
  236  MediPass under s. 409.9122(2)(k), a minimum of 50,000 of those
  237  MediPass-enrolled recipients shall be assigned to the existing
  238  provider service network in area 11 for their behavioral care.
  239         3. Children residing in a statewide inpatient psychiatric
  240  program, or in a Department of Juvenile Justice or a Department
  241  of Children and Family Services residential program approved as
  242  a Medicaid behavioral health overlay services provider may not
  243  be included in a behavioral health care prepaid health plan or
  244  any other Medicaid managed care plan pursuant to this paragraph.
  245         4. Traditional community mental health providers under
  246  contract with the Department of Children and Family Services
  247  pursuant to part IV of chapter 394, child welfare providers
  248  under contract with the Department of Children and Family
  249  Services in areas 1 and 6, and inpatient mental health providers
  250  licensed pursuant to chapter 395 must be offered an opportunity
  251  to accept or decline a contract to participate in any provider
  252  network for prepaid behavioral health services.
  253         5. All Medicaid-eligible children, except children in area
  254  1 and children in Highlands County, Hardee County, Polk County,
  255  or Manatee County of area 6, that are open for child welfare
  256  services in the statewide automated child welfare information
  257  system, shall receive their behavioral health care services
  258  through a specialty prepaid plan operated by community-based
  259  lead agencies through a single agency or formal agreements among
  260  several agencies. The agency shall work with the specialty plan
  261  to develop clinically effective, evidence-based alternatives as
  262  a downward substitution for the statewide inpatient psychiatric
  263  program and similar residential care and institutional services.
  264  The specialty prepaid plan must result in savings to the state
  265  comparable to savings achieved in other Medicaid managed care
  266  and prepaid programs. Such plan must provide mechanisms to
  267  maximize state and local revenues. The specialty prepaid plan
  268  shall be developed by the agency and the Department of Children
  269  and Family Services. The agency may seek federal waivers to
  270  implement this initiative. Medicaid-eligible children whose
  271  cases are open for child welfare services in the statewide
  272  automated child welfare information system and who reside in
  273  AHCA area 10 shall be enrolled in a capitated provider service
  274  network or other capitated managed care plan, which, in
  275  coordination with available community-based care providers
  276  specified in s. 409.1671, shall provide sufficient medical,
  277  developmental, and behavioral health services to meet the needs
  278  of these children.
  279  
  280  Effective July, 1, 2012, in order to ensure continuity of care,
  281  the agency is authorized to extend or modify current contracts
  282  based on current service areas or on a regional basis, as
  283  determined appropriate by the agency, with comprehensive
  284  behavioral health care providers as described in this paragraph
  285  during the period prior to its expiration. This paragraph
  286  expires October 1, 2014.
  287         (21) The agency may impose a fine for a violation of this
  288  section or the contract with the agency by a person or entity
  289  that is under contract with the agency. With respect to any
  290  nonwillful violation, such fine shall not exceed $2,500 per
  291  violation. In no event shall such fine exceed an aggregate
  292  amount of $10,000 for all nonwillful violations arising out of
  293  the same action. With respect to any knowing and willful
  294  violation of this section or the contract with the agency, the
  295  agency may impose a fine upon the entity in an amount not to
  296  exceed $20,000 for each such violation. In no event shall such
  297  fine exceed an aggregate amount of $100,000 for all knowing and
  298  willful violations arising out of the same action. This
  299  subsection expires October 1, 2014.
  300         Section 3. Subsection (21) is added to section 409.9122,
  301  Florida Statutes, to read:
  302         409.9122 Mandatory Medicaid managed care enrollment;
  303  programs and procedures.—
  304         (21) If required as a condition of a waiver, the agency may
  305  calculate a medical loss ratio for managed care plans. The
  306  calculation shall utilize uniform financial data collected from
  307  all plans and shall be computed for each plan on a statewide
  308  basis. The method for calculating the medical loss ratio shall
  309  meet the following criteria:
  310         (a) Except as provided in paragraphs (b) and (c),
  311  expenditures shall be classified in a manner consistent with 45
  312  C.F.R. part 158.
  313         (b) Funds provided by plans to graduate medical education
  314  institutions to underwrite the costs of residency positions
  315  shall be classified as medical expenditures, provided the
  316  funding is sufficient to sustain the position for the number of
  317  years necessary to complete the residency requirements and the
  318  residency positions funded by the plans are active providers of
  319  care to Medicaid and uninsured patients.
  320         (c) Prior to final determination of the medical loss ratio
  321  for any period, a plan may contribute to a designated state
  322  trust fund for the purpose of supporting Medicaid and indigent
  323  care and have the contribution counted as a medical expenditure
  324  for the period.
  325         Section 4. Section 409.961, Florida Statutes, is amended to
  326  read:
  327         409.961 Statutory construction; applicability; rules.—It is
  328  the intent of the Legislature that if any conflict exists
  329  between the provisions contained in this part and in other parts
  330  of this chapter, the provisions in this part control. Sections
  331  409.961–409.985 apply only to the Medicaid managed medical
  332  assistance program and long-term care managed care program, as
  333  provided in this part. The agency shall adopt any rules
  334  necessary to comply with or administer this part and all rules
  335  necessary to comply with federal requirements. In addition, the
  336  department shall adopt and accept the transfer of any rules
  337  necessary to carry out the department’s responsibilities for
  338  receiving and processing Medicaid applications and determining
  339  Medicaid eligibility and for ensuring compliance with and
  340  administering this part, as those rules relate to the
  341  department’s responsibilities, and any other provisions related
  342  to the department’s responsibility for the determination of
  343  Medicaid eligibility. Contracts with the agency and a person or
  344  entity, including Medicaid providers and managed care plans,
  345  necessary to administer the Medicaid program are not rules and
  346  are not subject to chapter 120.
  347         Section 5. Subsections (4) and (6) of section 409.962,
  348  Florida Statutes, are amended to read:
  349         409.962 Definitions.—As used in this part, except as
  350  otherwise specifically provided, the term:
  351         (4) “Comprehensive long-term care plan” means a managed
  352  care plan, including a Medicare Advantage Special Needs Plan
  353  organized as a preferred provider organization, provider
  354  sponsored organization, health maintenance organization, or
  355  coordinated care plan, that provides services described in s.
  356  409.973 and also provides the services described in s. 409.98.
  357         (6) “Eligible plan” means a health insurer authorized under
  358  chapter 624, an exclusive provider organization authorized under
  359  chapter 627, a health maintenance organization authorized under
  360  chapter 641, or a provider service network authorized under s.
  361  409.912(4)(d) or an accountable care organization authorized
  362  under federal law. For purposes of the managed medical
  363  assistance program, the term also includes the Children’s
  364  Medical Services Network authorized under chapter 391 and. For
  365  purposes of the long-term care managed care program, the term
  366  also includes entities qualified under 42 C.F.R. part 422 as
  367  Medicare Advantage Preferred Provider Organizations, Medicare
  368  Advantage Provider-sponsored Organizations, Medicare Advantage
  369  Health Maintenance Organizations, Medicare Advantage Coordinated
  370  Care Plans, and Medicare Advantage Special Needs Plans, and the
  371  Program of All-inclusive Care for the Elderly.
  372         Section 6. Paragraph (c) of subsection (3) of section
  373  409.966, Florida Statutes, is amended to read:
  374         409.966 Eligible plans; selection.—
  375         (3) QUALITY SELECTION CRITERIA.—
  376         (c) After negotiations are conducted, the agency shall
  377  select the eligible plans that are determined to be responsive
  378  and provide the best value to the state. Preference shall be
  379  given to plans that:
  380         1. Have signed contracts with primary and specialty
  381  physicians in sufficient numbers to meet the specific standards
  382  established pursuant to s. 409.967(2)(b).
  383         2. Have well-defined programs for recognizing patient
  384  centered medical homes and providing for increased compensation
  385  for recognized medical homes, as defined by the plan.
  386         3. Are organizations that are based in and perform
  387  operational functions in this state, in-house or through
  388  contractual arrangements, by staff located in this state. Using
  389  a tiered approach, the highest number of points shall be awarded
  390  to a plan that has all or substantially all of its operational
  391  functions performed in the state. The second highest number of
  392  points shall be awarded to a plan that has a majority of its
  393  operational functions performed in the state. The agency may
  394  establish a third tier; however, preference points may not be
  395  awarded to plans that perform only community outreach, medical
  396  director functions, and state administrative functions in the
  397  state. For purposes of this subparagraph, operational functions
  398  include corporate headquarters, claims processing, member
  399  services, provider relations, utilization and prior
  400  authorization, case management, disease and quality functions,
  401  and finance and administration. For purposes of this
  402  subparagraph, the term “corporate headquarters” “based in this
  403  state” means that the entity’s principal office of is in this
  404  state and the organization, which may not be plan is not a
  405  subsidiary, directly or indirectly through one or more
  406  subsidiaries of, or a joint venture with, any other entity whose
  407  principal office is not located in the state.
  408         4. Have contracts or other arrangements for cancer disease
  409  management programs that have a proven record of clinical
  410  efficiencies and cost savings.
  411         5. Have contracts or other arrangements for diabetes
  412  disease management programs that have a proven record of
  413  clinical efficiencies and cost savings.
  414         6. Have a claims payment process that ensures that claims
  415  that are not contested or denied will be promptly paid pursuant
  416  to s. 641.3155.
  417         Section 7. Paragraph (h) of subsection (2) of section
  418  409.967, Florida Statutes, is amended, and subsection (4) is
  419  added to that section, to read:
  420         409.967 Managed care plan accountability.—
  421         (2) The agency shall establish such contract requirements
  422  as are necessary for the operation of the statewide managed care
  423  program. In addition to any other provisions the agency may deem
  424  necessary, the contract must require:
  425         (h) Penalties.—
  426         1. Withdrawal and enrollment reduction.—Managed care plans
  427  that reduce enrollment levels or leave a region before the end
  428  of the contract term must reimburse the agency for the cost of
  429  enrollment changes and other transition activities. If more than
  430  one plan leaves a region at the same time, costs must be shared
  431  by the departing plans proportionate to their enrollments. In
  432  addition to the payment of costs, departing provider services
  433  networks must pay a per-enrollee per enrollee penalty of up to 3
  434  months’ payment and continue to provide services to the enrollee
  435  for 90 days or until the enrollee is enrolled in another plan,
  436  whichever occurs first. In addition to payment of costs, all
  437  other departing plans must pay a penalty of 25 percent of that
  438  portion of the minimum surplus maintained requirement pursuant
  439  to s. 641.225(1) which is attributable to the provision of
  440  coverage to Medicaid enrollees. Plans shall provide at least 180
  441  days’ notice to the agency before withdrawing from a region. If
  442  a managed care plan leaves a region before the end of the
  443  contract term, the agency shall terminate all contracts with
  444  that plan in other regions, pursuant to the termination
  445  procedures in subparagraph 3.
  446         2. Encounter data.—If a plan fails to comply with the
  447  encounter data reporting requirements of this section for 30
  448  days, the agency must assess a fine of $5,000 per day for each
  449  day of noncompliance beginning on the 31st day. On the 31st day,
  450  the agency must notify the plan that the agency will initiate
  451  contract termination procedures on the 90th day unless the plan
  452  comes into compliance before that date.
  453         3. Termination.—If the agency terminates more than one
  454  regional contract with the same managed care plan due to
  455  noncompliance with the requirements of this section, the agency
  456  shall terminate all the regional contracts held by that plan.
  457  When terminating multiple contracts, the agency must develop a
  458  plan to provide for the transition of enrollees to other plans,
  459  and phase in phase-in the terminations over a time period
  460  sufficient to ensure a smooth transition.
  461         (4) MEDICAL LOSS RATIO.—If required as a condition of a
  462  waiver, the agency may calculate a medical loss ratio for
  463  managed care plans. The calculation shall use uniform financial
  464  data collected from all plans and shall be computed for each
  465  plan on a statewide basis. The method for calculating the
  466  medical loss ratio shall meet the following criteria:
  467         (a) Except as provided in paragraphs (b) and (c),
  468  expenditures shall be classified in a manner consistent with 45
  469  C.F.R. part 158.
  470         (b) Funds provided by plans to graduate medical education
  471  institutions to underwrite the costs of residency positions
  472  shall be classified as medical expenditures, provided the
  473  funding is sufficient to sustain the position for the number of
  474  years necessary to complete the residency requirements and the
  475  residency positions funded by the plans are active providers of
  476  care to Medicaid and uninsured patients.
  477         (c) Prior to final determination of the medical loss ratio
  478  for any period, a plan may contribute to a designated state
  479  trust fund for the purpose of supporting Medicaid and indigent
  480  care and have the contribution counted as a medical expenditure
  481  for the period.
  482         Section 8. Subsection (4) of section 409.973, Florida
  483  Statutes, is amended to read:
  484         409.973 Benefits.—
  485         (4) PRIMARY CARE INITIATIVE.—Each plan operating in the
  486  managed medical assistance program shall establish a program to
  487  encourage enrollees to establish a relationship with their
  488  primary care provider. Each plan shall:
  489         (a) Provide information to each enrollee on the importance
  490  of and procedure for selecting a primary care provider
  491  physician, and thereafter automatically assign to a primary care
  492  provider any enrollee who fails to choose a primary care
  493  provider.
  494         (b) If the enrollee was not a Medicaid recipient before
  495  enrollment in the plan, assist the enrollee in scheduling an
  496  appointment with the primary care provider. If possible the
  497  appointment should be made within 30 days after enrollment in
  498  the plan. For enrollees who become eligible for Medicaid between
  499  January 1, 2014, and December 31, 2015, the appointment should
  500  be scheduled within 6 months after enrollment in the plan.
  501         (c) Report to the agency the number of enrollees assigned
  502  to each primary care provider within the plan’s network.
  503         (d) Report to the agency the number of enrollees who have
  504  not had an appointment with their primary care provider within
  505  their first year of enrollment.
  506         (e) Report to the agency the number of emergency room
  507  visits by enrollees who have not had at least one appointment
  508  with their primary care provider.
  509         Section 9. Subsection (3) of section 409.974, Florida
  510  Statutes, is amended, and subsection (5) is added to that
  511  section, to read:
  512         409.974 Eligible plans.—
  513         (3) SPECIALTY PLANS.—Participation by specialty plans shall
  514  be subject to the procurement requirements and regional plan
  515  number limits of this section. The aggregate enrollment of all
  516  specialty plans in a region may not exceed 10 percent of the
  517  total enrollees of that region. However, a specialty plan whose
  518  target population includes no more than 10 percent of the
  519  enrollees of that region is not subject to the regional plan
  520  number limits of this section.
  521         (5) MEDICARE PLANS.—Participation by a Medicare Advantage
  522  Preferred Provider Organization, Medicare Advantage Provider
  523  sponsored Organization, Medicare Advantage Health Maintenance
  524  Organization, Medicare Advantage Coordinated Care Plan, or
  525  Medicare Advantage Special Needs Plan shall be pursuant to a
  526  contract with the agency that is consistent with the Medicare
  527  Improvement for Patients and Providers Act of 2008, Pub. L. No.
  528  110-275. Such plans are not subject to the procurement
  529  requirements if the plan’s Medicaid enrollees consist
  530  exclusively of dually eligible recipients who are enrolled in
  531  the plan in order to receive Medicare benefits as of the date
  532  that the invitation to negotiate is issued. Otherwise, such
  533  plans are subject to all procurement requirements.
  534         Section 10. Subsection (5) of section 409.981, Florida
  535  Statutes, is amended to read:
  536         409.981 Eligible long-term care plans.—
  537         (5) MEDICARE ADVANTAGE SPECIAL NEEDS PLANS.—Participation
  538  by a Medicare Advantage Preferred Provider Organization,
  539  Medicare Advantage Provider-sponsored Organization, or Medicare
  540  Advantage Special Needs Plan shall be pursuant to a contract
  541  with the agency that is consistent with the Medicare Improvement
  542  for Patients and Providers Act of 2008, Pub. L. No. 110-275.
  543  Such plans are and not subject to the procurement requirements
  544  if the plan’s Medicaid enrollees consist exclusively of dually
  545  eligible recipients who are enrolled in the plan in order to
  546  receive Medicare benefits as of the date the invitation to
  547  negotiate is issued deemed dually eligible for Medicaid and
  548  Medicare services. Otherwise, Medicare Advantage Preferred
  549  Provider Organizations, Medicare Advantage Provider-sponsored
  550  Organizations, and Medicare Advantage Special Needs Plans are
  551  subject to all procurement requirements.
  552         Section 11. Effective May 12, 2012, paragraph (h) is added
  553  to subsection (1) of section 627.602, Florida Statutes, to read:
  554         627.602 Scope, format of policy.—
  555         (1) Each health insurance policy delivered or issued for
  556  delivery to any person in this state must comply with all
  557  applicable provisions of this code and all of the following
  558  requirements:
  559         (h) Section 641.312 and the provisions of the Employee
  560  Retirement Income Security Act of 1974, as implemented by 29
  561  C.F.R. s. 2560.503-1, relating to internal grievances. This
  562  paragraph does not apply to a health insurance policy that is
  563  subject to the subscriber assistance program under s. 408.7056
  564  or to the types of benefits or coverages provided under s.
  565  627.6561(5)(b)-(e) issued in any market.
  566         Section 12. Effective May 12, 2012, section 627.6513,
  567  Florida Statutes, is created to read:
  568         627.6513Scope.—Section 641.312 and the provisions of the
  569  Employee Retirement Income Security Act of 1974, as implemented
  570  by 29 C.F.R. s. 2560.503-1, relating to internal grievances,
  571  apply to all group health insurance policies issued under this
  572  part. This section does not apply to a group health insurance
  573  policy that is subject to the subscriber assistance program in
  574  s. 408.7056 or to the types of benefits or coverages provided
  575  under s. 627.6561(5)(b)-(e) issued in any market.
  576         Section 13. Effective May 12, 2012, section 641.312,
  577  Florida Statutes, is created to read:
  578         641.312Scope.—The Office of Insurance Regulation may adopt
  579  rules to administer the provisions of the National Association
  580  of Insurance Commissioners’ Uniform Health Carrier External
  581  Review Model Act, issued by the National Association of
  582  Insurance Commissioners and dated April 2010. This section does
  583  not apply to a health maintenance contract that is subject to
  584  the subscriber assistance program under s. 408.7056 or to the
  585  types of benefits or coverages provided under s. 625.6561(5)(b)
  586  (e) issued in any market.
  587         Section 14. Except as otherwise expressly provided in this
  588  act and except for this section, which shall take effect upon
  589  this act becoming a law, this act shall take effect July 1,
  590  2012.