Florida Senate - 2012         (PROPOSED COMMITTEE BILL) SPB 7094
       
       
       
       FOR CONSIDERATION By the Committee on Budget
       
       
       
       
       576-02536E-12                                         20127094__
    1                        A bill to be entitled                      
    2         An act relating to Medicaid; amending s. 383.15, F.S.;
    3         revising legislative intent relating to funding for
    4         regional perinatal intensive care centers; amending s.
    5         409.902, F.S.; providing for the creation an Internet
    6         based system for determining eligibility for the
    7         Medicaid and Kidcare programs, contingent on the
    8         appropriation; providing system business objectives
    9         and requirements; requiring the Department of Children
   10         and Family Services to develop the system; requiring
   11         the system to be completed and implemented by
   12         specified dates; providing a governance structure
   13         pending implementation of the program, including an
   14         executive steering committee and a project management
   15         team; amending s. 409.905, F.S.; limiting the number
   16         of paid hospital emergency department visits for
   17         nonpregnant adults; authorizing the Agency for Health
   18         Care Administration to request approval by the
   19         Legislative Budget Commission of hospital rate
   20         adjustments; providing components for the agency’s
   21         plan to convert inpatient hospital rates to a
   22         prospective payment system; revising dates for
   23         submitting the plan and implementing the system;
   24         amending 409.908, F.S.; conforming a cross-reference;
   25         authorizing the Agency for Health Care Administration
   26         to accept voluntary intergovernmental transfers of
   27         local taxes and other qualified revenue from counties,
   28         municipalities, or special taxing districts in order
   29         to fund certain costs; limiting the use of
   30         intergovernmental transfer funds for hospital
   31         reimbursements; prohibiting the inclusion of certain
   32         hospital costs in the capitation rates for prepaid
   33         health plans; providing for the inclusion of certain
   34         hospital costs in capitation rates for prepaid health
   35         plans if funded by intergovernmental transfers;
   36         incorporating a transferred provision; amending s.
   37         409.911, F.S.; updating references to data used for
   38         calculations in the disproportionate share program;
   39         repealing s. 409.9112, F.S., relating to the
   40         disproportionate share program for regional perinatal
   41         intensive care centers; amending s. 409.9113, F.S.;
   42         conforming a cross-reference; authorizing the agency
   43         to distribute moneys in the disproportionate share
   44         program for teaching hospitals; repealing s. 409.9117,
   45         F.S., relating to the primary care disproportionate
   46         share program; amending s. 409.912, F.S.; revising the
   47         conditions for contracting with certain managed care
   48         plans for behavioral health care services; deleting
   49         requirements for assigning certain MediPass recipients
   50         to managed care plans for behavioral health care
   51         services; requiring the assignment of recipients to
   52         provider service networks; amending s. 409.9121, F.S.;
   53         revising legislative findings relating to the Medicaid
   54         program; amending s. 409.9122, F.S.; providing
   55         criteria and procedures relating to recipient
   56         enrollment choice and assignment among Medicaid
   57         managed care plans and MediPass; deleting transferred
   58         provisions relating to school districts; amending s.
   59         409.9123, F.S.; revising provisions relating to the
   60         publication of quality measures for managed care
   61         plans; reenacting s. 409.9126, F.S., relating to
   62         children with special health care needs; amending s.
   63         409.915, F.S.; specifying criteria for determining a
   64         county’s eligible recipients; providing for payment of
   65         billings that have been denied by the county from the
   66         county’s tax revenues; providing for refunds;
   67         providing for the transfer of certain refunds to the
   68         Lawton Chiles Endowment Fund; amending ss. 409.979 and
   69         430.04, F.S.; deleting references to the Adult Day
   70         Health Care Waiver in provisions relating to Medicaid
   71         eligibility and duties and responsibilities of the
   72         Department of Elderly Affairs; amending s. 31, chapter
   73         2009-223, Laws of Florida, as amended, and
   74         redesignating that section as s. 409.9132, F.S.;
   75         expanding the home health agency monitoring pilot
   76         project statewide; amending s. 32, chapter 2009-223,
   77         Laws of Florida, and redesignating that section as s.
   78         409.9133, F.S.; expanding the comprehensive care
   79         management pilot project for home health services
   80         statewide and including private-duty nursing and
   81         personal care services; providing an additional site
   82         in Broward County for the Program of All-Inclusive
   83         Care for the Elderly; providing an effective date.
   84  
   85  Be It Enacted by the Legislature of the State of Florida:
   86  
   87         Section 1. Section 383.15, Florida Statutes, is amended to
   88  read:
   89         383.15 Legislative intent; perinatal intensive care
   90  services.—The Legislature finds and declares that many perinatal
   91  diseases and disabilities have debilitating, costly, and often
   92  fatal consequences if left untreated. Many of these debilitating
   93  conditions could be prevented or ameliorated if services were
   94  available to the public through a regional perinatal intensive
   95  care centers program. Perinatal intensive care services are
   96  critical to the well-being and development of a healthy society
   97  and represent a constructive, cost-beneficial, and essential
   98  investment in the future of our state. Therefore, it is the
   99  intent of the Legislature to develop a regional perinatal
  100  intensive care centers program. The Legislature further intends
  101  that development of such a regional perinatal intensive care
  102  centers program shall not reduce or dilute the current financial
  103  commitment of the state, as indicated through appropriation, to
  104  the existing regional perinatal intensive care centers. It is
  105  also the intent of the Legislature that any additional centers
  106  regional perinatal intensive care center authorized under s.
  107  383.19 after July 1, 1993, shall not receive payments under a
  108  disproportionate share program for regional perinatal intensive
  109  care centers authorized under chapter 409 s. 409.9112 unless
  110  specific appropriations are provided to expand such payments to
  111  additional hospitals.
  112         Section 2. Section 409.902, Florida Statutes, is amended to
  113  read:
  114         409.902 Designated single state agency; eligibility
  115  determinations payment requirements; program title; release of
  116  medical records.—
  117         (1) The Agency for Health Care Administration is designated
  118  as the single state agency authorized to make payments for
  119  medical assistance and related services under Title XIX of the
  120  Social Security Act. These payments shall be made, subject to
  121  any limitations or directions provided for in the General
  122  Appropriations Act, only for services included in the program,
  123  shall be made only on behalf of eligible individuals, and shall
  124  be made only to qualified providers in accordance with federal
  125  requirements for Title XIX of the Social Security Act and the
  126  provisions of state law. This program of medical assistance is
  127  designated the “Medicaid program.”
  128         (2) The Department of Children and Family Services is
  129  responsible for determining Medicaid eligibility determinations,
  130  including, but not limited to, policy, rules, and the agreement
  131  with the Social Security Administration for Medicaid eligibility
  132  determinations for Supplemental Security Income recipients, as
  133  well as the actual determination of eligibility. As a condition
  134  of Medicaid eligibility, subject to federal approval, the agency
  135  for Health Care Administration and the department must of
  136  Children and Family Services shall ensure that each recipient of
  137  Medicaid consents to the release of her or his medical records
  138  to the agency for Health Care Administration and the Medicaid
  139  Fraud Control Unit of the Department of Legal Affairs.
  140         (3)(2) Eligibility is restricted to United States citizens
  141  and to lawfully admitted noncitizens who meet the criteria
  142  provided in s. 414.095(3).
  143         (a) Citizenship or immigration status must be verified. For
  144  noncitizens, this includes verification of the validity of
  145  documents with the United States Citizenship and Immigration
  146  Services using the federal SAVE verification process.
  147         (b) State funds may not be used to provide medical services
  148  to individuals who do not meet the requirements of this
  149  subsection unless the services are necessary to treat an
  150  emergency medical condition or are for pregnant women. Such
  151  services are authorized only to the extent provided under
  152  federal law and in accordance with federal regulations as
  153  provided in 42 C.F.R. s. 440.255.
  154         (4) To the extent funds are appropriated, the department
  155  shall collaborate with the agency to develop an Internet-based
  156  system for determining eligibility for the Medicaid and Kidcare
  157  programs which complies with all applicable federal and state
  158  laws and requirements.
  159         (a) The system must accomplish the following primary
  160  business objectives:
  161         1. Provide individuals and families with a single access
  162  point to information that explains benefits, premiums, and cost
  163  sharing available through Medicaid, Kidcare, or any other state
  164  or federal health insurance exchange.
  165         2. Enable timely, accurate, and efficient enrollment of
  166  eligible persons into available assistance programs.
  167         3. Prevent eligibility fraud.
  168         4. Allow for detailed financial analysis of eligibility
  169  based cost drivers.
  170         (b) The system must include, but need not be limited to,
  171  the following business and functional requirements:
  172         1. Allowing for the completion and submission of an online
  173  application for determining eligibility which accepts the use of
  174  electronic signatures.
  175         2.Including a process that enables automatic enrollment of
  176  qualified individuals into Medicaid, Kidcare, or any other state
  177  or federal exchange that offers cost-sharing benefits for the
  178  purchase of health insurance.
  179         3.Allowing for the determination of Medicaid eligibility
  180  based on modified adjusted gross income by using information
  181  submitted in the application and information accessed and
  182  verified through automated and secure interfaces with authorized
  183  databases.
  184         4.Including the ability to determine specific categories
  185  of Medicaid eligibility and interface with the Florida Medicaid
  186  Management Information System to support such determination,
  187  using federally approved assessment methodologies, of state and
  188  federal financial participation rates for persons in each
  189  eligibility category.
  190         5.Allowing for the accurate and timely processing of
  191  eligibility claims and adjudications.
  192         6.Aligning with and incorporating all applicable state and
  193  federal laws, requirements, and standards, including the
  194  information technology security requirements established under
  195  s. 282.318 and the accessibility standards established under
  196  part II of chapter 282.
  197         7.Producing transaction data, reports, and performance
  198  information that contributes to an evaluation of the program,
  199  continuous improvement in business operations, and increased
  200  transparency and accountability.
  201         (c)The department shall develop the system subject to
  202  approval by the Legislative Budget Commission and as required by
  203  the General Appropriations Act for the 2012-2013 fiscal year.
  204         (d)The system must be completed by October 1, 2013, and
  205  ready for implementation by January 1, 2014.
  206         (e)The department shall implement the following project
  207  governance structure until the system is implemented:
  208         1.The director of the department’s Economic Self
  209  Sufficiency Services Program Office shall have overall
  210  responsibility for the project.
  211         2.The project shall be governed by an executive steering
  212  committee composed of three department staff members appointed
  213  by the Secretary of Children and Family Services; three agency
  214  staff members, including at least two state Medicaid program
  215  staff members, appointed by the Secretary of Health Care
  216  Administration; and one staff member from Children’s Medical
  217  Services within the Department of Health appointed by the
  218  Surgeon General.
  219         3.The executive steering committee shall have overall
  220  responsibility for ensuring that the project meets its primary
  221  business objectives and shall:
  222         a.Provide management direction and support to the project
  223  management team.
  224         b.Review and approve any changes to the project’s scope,
  225  schedule, and budget.
  226         c.Review, approve, and determine whether to proceed with
  227  any major deliverable project.
  228         d.Recommend suspension or termination of the project to
  229  the Governor, the President of the Senate, and the Speaker of
  230  the House of Representatives if the committee determines that
  231  the primary business objectives cannot be achieved.
  232         4.A project management team shall be appointed by and work
  233  under the direction of the executive steering committee. The
  234  project management team shall:
  235         a.Provide planning, management, and oversight of the
  236  project.
  237         b.Submit an operational work plan and provide quarterly
  238  updates to the plan to the executive steering committee. The
  239  plan must specify project milestones, deliverables, and
  240  expenditures.
  241         c.Submit written monthly project status reports to the
  242  executive steering committee.
  243         Section 3. Subsections (5) of section 409.905, Florida
  244  Statutes, is amended to read:
  245         409.905 Mandatory Medicaid services.—The agency may make
  246  payments for the following services, which are required of the
  247  state by Title XIX of the Social Security Act, furnished by
  248  Medicaid providers to recipients who are determined to be
  249  eligible on the dates on which the services were provided. Any
  250  service under this section shall be provided only when medically
  251  necessary and in accordance with state and federal law.
  252  Mandatory services rendered by providers in mobile units to
  253  Medicaid recipients may be restricted by the agency. Nothing in
  254  this section shall be construed to prevent or limit the agency
  255  from adjusting fees, reimbursement rates, lengths of stay,
  256  number of visits, number of services, or any other adjustments
  257  necessary to comply with the availability of moneys and any
  258  limitations or directions provided for in the General
  259  Appropriations Act or chapter 216.
  260         (5) HOSPITAL INPATIENT SERVICES.—The agency shall pay for
  261  all covered services provided for the medical care and treatment
  262  of a Medicaid recipient who is admitted as an inpatient by a
  263  licensed physician or dentist to a hospital licensed under part
  264  I of chapter 395. However, the agency shall limit the payment
  265  for inpatient hospital services for a nonpregnant Medicaid
  266  recipient 21 years of age or older to 45 days per fiscal year or
  267  the number of days necessary to comply with the General
  268  Appropriations Act. Effective August 1, 2012, the agency shall
  269  limit payment for hospital emergency department visits for a
  270  nonpregnant recipient 21 years of age or older to six visits per
  271  fiscal year.
  272         (a) The agency may is authorized to implement reimbursement
  273  and utilization management reforms in order to comply with any
  274  limitations or directions in the General Appropriations Act,
  275  which may include, but are not limited to: prior authorization
  276  for inpatient psychiatric days; prior authorization for
  277  nonemergency hospital inpatient admissions for individuals 21
  278  years of age and older; authorization of emergency and urgent
  279  care admissions within 24 hours after admission; enhanced
  280  utilization and concurrent review programs for highly utilized
  281  services; reduction or elimination of covered days of service;
  282  adjusting reimbursement ceilings for variable costs; adjusting
  283  reimbursement ceilings for fixed and property costs; and
  284  implementing target rates of increase. The agency may limit
  285  prior authorization for hospital inpatient services to selected
  286  diagnosis-related groups, based on an analysis of the cost and
  287  potential for unnecessary hospitalizations represented by
  288  certain diagnoses. Admissions for normal delivery and newborns
  289  are exempt from requirements for prior authorization
  290  requirements. In implementing the provisions of this section
  291  related to prior authorization, the agency must shall ensure
  292  that the process for authorization is accessible 24 hours per
  293  day, 7 days per week and authorization is automatically granted
  294  if when not denied within 4 hours after the request.
  295  Authorization procedures must include steps for the review of
  296  denials. Upon implementing the prior authorization program for
  297  hospital inpatient services, the agency shall discontinue its
  298  hospital retrospective review program.
  299         (b) A licensed hospital maintained primarily for the care
  300  and treatment of patients having mental disorders or mental
  301  diseases is not eligible to participate in the hospital
  302  inpatient portion of the Medicaid program except as provided
  303  under in federal law. However, the department shall apply for a
  304  waiver, within 9 months after June 5, 1991, designed to provide
  305  hospitalization services for mental health reasons to children
  306  and adults in the most cost-effective and lowest cost setting
  307  possible. Such waiver must shall include a request for the
  308  opportunity to pay for care in hospitals known under federal law
  309  as “institutions for mental disease” or “IMD’s.” The waiver
  310  proposal may not shall propose no additional aggregate cost to
  311  the state or Federal Government, and shall be conducted in
  312  Hillsborough County, Highlands County, Hardee County, Manatee
  313  County, and Polk County. The waiver proposal may incorporate
  314  competitive bidding for hospital services, comprehensive
  315  brokering, prepaid capitated arrangements, or other mechanisms
  316  deemed by the department to show promise in reducing the cost of
  317  acute care and increasing the effectiveness of preventive care.
  318  When developing the waiver proposal, the department shall take
  319  into account price, quality, accessibility, linkages of the
  320  hospital to community services and family support programs,
  321  plans of the hospital to ensure the earliest discharge possible,
  322  and the comprehensiveness of the mental health and other health
  323  care services offered by participating providers.
  324         (c) The agency shall implement a methodology for
  325  establishing base reimbursement rates for each hospital based on
  326  allowable costs, as defined by the agency. Rates shall be
  327  calculated annually and take effect July 1 of each year based on
  328  the most recent complete and accurate cost report submitted by
  329  each hospital. Adjustments may not be made to the rates after
  330  September 30 of the state fiscal year in which the rate takes
  331  effect, except that the agency may request that adjustments be
  332  approved by the Legislative Budget Commission when needed due to
  333  insufficient commitments or collections of intergovernmental
  334  transfers under s. 409.908(1) or s. 409.908(4). Errors in cost
  335  reporting or calculation of rates discovered after September 30
  336  must be reconciled in a subsequent rate period. The agency may
  337  not make any adjustment to a hospital’s reimbursement rate more
  338  than 5 years after a hospital is notified of an audited rate
  339  established by the agency. The prohibition against requirement
  340  that the agency making may not make any adjustment to a
  341  hospital’s reimbursement rate more than 5 years after a hospital
  342  is notified of an audited rate established by the agency is
  343  remedial and applies shall apply to actions by providers
  344  involving Medicaid claims for hospital services. Hospital rates
  345  shall be subject to such limits or ceilings as may be
  346  established in law or described in the agency’s hospital
  347  reimbursement plan. Specific exemptions to the limits or
  348  ceilings may be provided in the General Appropriations Act.
  349         (d) The agency shall implement a comprehensive utilization
  350  management program for hospital neonatal intensive care stays in
  351  certain high-volume participating hospitals, select counties, or
  352  statewide, and replace existing hospital inpatient utilization
  353  management programs for neonatal intensive care admissions. The
  354  program shall be designed to manage the lengths of stay for
  355  children being treated in neonatal intensive care units and must
  356  seek the earliest medically appropriate discharge to the child’s
  357  home or other less costly treatment setting. The agency may
  358  competitively bid a contract for the selection of a qualified
  359  organization to provide neonatal intensive care utilization
  360  management services. The agency may seek federal waivers to
  361  implement this initiative.
  362         (e) The agency may develop and implement a program to
  363  reduce the number of hospital readmissions among the non
  364  Medicare population eligible in areas 9, 10, and 11.
  365         (f) The agency shall develop a plan to convert Medicaid
  366  inpatient hospital rates to a prospective payment system that
  367  categorizes each case into diagnosis-related groups (DRG) and
  368  assigns a payment weight based on the average resources used to
  369  treat Medicaid patients in that DRG. To the extent possible, the
  370  agency shall propose an adaptation of an existing prospective
  371  payment system, such as the one used by Medicare, and shall
  372  propose such adjustments as are necessary for the Medicaid
  373  population and to maintain budget neutrality for inpatient
  374  hospital expenditures.
  375         1. The plan must:
  376         a. Define and describe DRGs for inpatient hospital care
  377  specific to Medicaid in this state;
  378         b. Develop the use of resources needed for each DRG;
  379         c. Apply current statewide levels of funding to DRGs based
  380  on the associated resource value of DRGs. Current statewide
  381  funding levels shall be calculated both with and without the use
  382  of intergovernmental transfers;
  383         d. Calculate the current number of services provided in the
  384  Medicaid program based on DRGs defined under this subparagraph;
  385         e. Estimate the number of cases in each DRG for future
  386  years based on agency data and the official workload estimates
  387  of the Social Services Estimating Conference;
  388         f. Estimate potential funding for each hospital with a
  389  Medicaid provider agreement, based on the DRGs and estimated
  390  workload;
  391         g. Propose supplemental DRG payments to augment hospital
  392  reimbursements based on patient acuity and individual hospital
  393  characteristics, including classification as a children’s
  394  hospital, rural hospital, trauma center, burn unit, and other
  395  characteristics that could warrant higher reimbursements; and
  396         h. Estimate potential funding for each hospital with a
  397  Medicaid provider agreement for DRGs defined pursuant to this
  398  subparagraph and supplemental DRG payments using current funding
  399  levels, calculated both with and without the use of
  400  intergovernmental transfers.
  401         2. The agency, through a competitive procurement pursuant
  402  to chapter 287, shall engage a consultant with expertise and
  403  experience in the implementation of DRG systems for hospital
  404  reimbursement to develop the DRG plan under subparagraph 1.
  405         3. The agency shall submit the Medicaid DRG plan,
  406  identifying all steps necessary for the transition and any costs
  407  associated with plan implementation, to the Governor, the
  408  President of the Senate, and the Speaker of the House of
  409  Representatives no later than December 1, 2012 January 1, 2013.
  410  Upon receiving legislative authorization, the agency shall begin
  411  making the necessary changes to fiscal agent coding by June 1,
  412  2013, with a target date of November 1, 2013, for full
  413  implementation of the DRG system of hospital reimbursement. If,
  414  during implementation of this paragraph, the agency determines
  415  that these timeframes might not be achievable, the agency shall
  416  report to the Legislative Budget Commission the status of its
  417  implementation efforts, the reasons the timeframes might not be
  418  achievable, and proposals for new timeframes.
  419         Section 4. Paragraph (c) of subsection (1) of section
  420  409.908, Florida Statutes, is amended, paragraph (e) is added to
  421  that subsection, and subsections (4) and (21) of that section
  422  are amended, to read:
  423         409.908 Reimbursement of Medicaid providers.—Subject to
  424  specific appropriations, the agency shall reimburse Medicaid
  425  providers, in accordance with state and federal law, according
  426  to methodologies set forth in the rules of the agency and in
  427  policy manuals and handbooks incorporated by reference therein.
  428  These methodologies may include fee schedules, reimbursement
  429  methods based on cost reporting, negotiated fees, competitive
  430  bidding pursuant to s. 287.057, and other mechanisms the agency
  431  considers efficient and effective for purchasing services or
  432  goods on behalf of recipients. If a provider is reimbursed based
  433  on cost reporting and submits a cost report late and that cost
  434  report would have been used to set a lower reimbursement rate
  435  for a rate semester, then the provider’s rate for that semester
  436  shall be retroactively calculated using the new cost report, and
  437  full payment at the recalculated rate shall be effected
  438  retroactively. Medicare-granted extensions for filing cost
  439  reports, if applicable, shall also apply to Medicaid cost
  440  reports. Payment for Medicaid compensable services made on
  441  behalf of Medicaid eligible persons is subject to the
  442  availability of moneys and any limitations or directions
  443  provided for in the General Appropriations Act or chapter 216.
  444  Further, nothing in this section shall be construed to prevent
  445  or limit the agency from adjusting fees, reimbursement rates,
  446  lengths of stay, number of visits, or number of services, or
  447  making any other adjustments necessary to comply with the
  448  availability of moneys and any limitations or directions
  449  provided for in the General Appropriations Act, provided the
  450  adjustment is consistent with legislative intent.
  451         (1) Reimbursement to hospitals licensed under part I of
  452  chapter 395 must be made prospectively or on the basis of
  453  negotiation.
  454         (c) Hospitals that provide services to a disproportionate
  455  share of low-income Medicaid recipients, or that participate in
  456  the regional perinatal intensive care center program under
  457  chapter 383, or that participate in the statutory teaching
  458  hospital disproportionate share program may receive additional
  459  reimbursement. The total amount of payment for disproportionate
  460  share hospitals shall be fixed by the General Appropriations
  461  Act. The computation of these payments must be made in
  462  compliance with all federal regulations and the methodologies
  463  described in ss. 409.911, 409.9112, and 409.9113.
  464         (e) The agency may accept voluntary intergovernmental
  465  transfers of local taxes and other qualified revenue from
  466  counties, municipalities, or special taxing districts under
  467  paragraphs (a) and (b) or the General Appropriations Act for the
  468  purpose of funding the costs of special Medicaid payments to
  469  hospitals, the costs of exempting hospitals from reimbursement
  470  ceilings, or the costs of buying back hospital Medicaid trend
  471  adjustments authorized under the General Appropriations Act,
  472  except that the use of these intergovernmental transfers for
  473  fee-for-service payments to hospitals is limited to the
  474  proportionate use of such funds accepted by the agency under
  475  subsection (4). As used in this paragraph, the term
  476  “proportionate use” means that the use of intergovernmental
  477  transfer funds under this subsection must be in the same
  478  proportion to the use of such funds under subsection (4)
  479  relative to the need for funding hospital costs under each
  480  subsection.
  481         (4) Subject to any limitations or directions provided for
  482  in the General Appropriations Act, alternative health plans,
  483  health maintenance organizations, and prepaid health plans,
  484  including health maintenance organizations, prepaid provider
  485  service networks, and other capitated managed care plans, shall
  486  be reimbursed a fixed, prepaid amount negotiated, or
  487  competitively bid pursuant to s. 287.057, by the agency and
  488  prospectively paid to the provider monthly for each Medicaid
  489  recipient enrolled. The amount may not exceed the average amount
  490  the agency determines it would have paid, based on claims
  491  experience, for recipients in the same or similar category of
  492  eligibility. The agency shall calculate capitation rates on a
  493  regional basis and, beginning September 1, 1995, shall include
  494  age-band differentials in such calculations.
  495         (a) Effective September 1, 2012:
  496         1. The costs of special Medicaid payments to hospitals, the
  497  costs of exempting hospitals from reimbursement ceilings, and
  498  the costs of buying back hospital Medicaid trend adjustments
  499  authorized under the General Appropriations Act, which are
  500  funded through intergovernmental transfers, may not be included
  501  as inpatient or outpatient costs in the calculation of prepaid
  502  health plan capitations under this part. This provision must be
  503  construed so that inpatient hospital costs included in the
  504  calculation of prepaid health plan capitations are identical to
  505  those represented by county billing rates under s. 409.915.
  506         2. Prepaid health plans may not reimburse hospitals for the
  507  costs described in subparagraph 1., except that plans may
  508  contract with hospitals to pay inpatient per diems that are
  509  between 95 percent and 105 percent of the county billing rate.
  510  Hospitals and prepaid health plans may negotiate mutually
  511  acceptable higher rates for medically complex care.
  512         (b)Notwithstanding paragraph (a):
  513         1. In order to fund the inclusion of costs described in
  514  paragraph (a) in the calculation of capitations paid to prepaid
  515  health plans, the agency may accept voluntary intergovernmental
  516  transfers of local taxes and other qualified revenue from
  517  counties, municipalities, or special taxing districts. After
  518  securing commitments from counties, municipalities, or special
  519  taxing districts to contribute intergovernmental transfers for
  520  that purpose, the agency shall develop capitation payments for
  521  prepaid health plans which include the costs described in
  522  paragraph (a) if those components of the capitation are funded
  523  through intergovernmental transfers and not with general
  524  revenue. The rate-setting methodology must preserve federal
  525  matching funds for the intergovernmental transfers collected
  526  under this paragraph and result in actuarially sound rates. The
  527  agency has the discretion to perform this function using
  528  supplemental capitation payments.
  529         2. The amounts included in a prepaid health plan’s
  530  capitations or supplemental capitations under this paragraph for
  531  funding the costs described in paragraph (a) must be used
  532  exclusively by the prepaid health plan to enhance hospital
  533  payments and be calculated by the agency as accurately as
  534  possible to equal the costs described in paragraph (a) which the
  535  prepaid health plan actually incurs and for which
  536  intergovernmental transfers have been secured.
  537         (21) The agency shall reimburse school districts that which
  538  certify the state match pursuant to ss. 409.9071 and 1011.70 for
  539  the federal portion of the school district’s allowable costs to
  540  deliver the services, based on the reimbursement schedule. The
  541  school district shall determine the costs for delivering
  542  services as authorized in ss. 409.9071 and 1011.70 for which the
  543  state match will be certified.
  544         (a) School districts participating in the certified school
  545  match program pursuant to this subsection and s. 1011.70 shall
  546  be reimbursed by Medicaid, subject to the limitations of s.
  547  1011.70(1), for a Medicaid-eligible child participating in the
  548  services, as authorized under s. 1011.70 and as provided in s.
  549  409.9071, regardless of whether the child is enrolled in
  550  MediPass or a managed care plan. Managed care plans and school
  551  districts shall make good faith efforts to execute agreements
  552  regarding the coordinated provision of services authorized under
  553  s. 1011.70. County health departments delivering school-based
  554  services pursuant to ss. 381.0056 and 381.0057 shall be
  555  reimbursed by Medicaid for the federal share for a Medicaid
  556  eligible child who receives Medicaid-covered services in a
  557  school setting, regardless of whether the child is enrolled in
  558  MediPass or a managed care plan. Managed care plans and county
  559  health departments shall make good faith efforts to execute
  560  agreements regarding the coordinated provision of services to a
  561  Medicaid-eligible child. To ensure continuity of care for
  562  Medicaid patients, the agency, the Department of Health, and the
  563  Department of Education shall develop procedures for ensuring
  564  that a student’s managed care plan or MediPass primary care
  565  provider receives information relating to services provided in
  566  accordance with ss. 381.0056, 381.0057, 409.9071, and 1011.70.
  567         (b) Reimbursement of school-based providers is contingent
  568  on such providers being enrolled as Medicaid providers and
  569  meeting the qualifications contained in 42 C.F.R. s. 440.110,
  570  unless otherwise waived by the federal Centers for Medicare and
  571  Medicaid Services Health Care Financing Administration. Speech
  572  therapy providers who are certified through the Department of
  573  Education pursuant to rule 6A-4.0176, Florida Administrative
  574  Code, are eligible for reimbursement for services that are
  575  provided on school premises. An Any employee of the school
  576  district who has been fingerprinted and has received a criminal
  577  background check in accordance with Department of Education
  578  rules and guidelines is shall be exempt from any agency
  579  requirements relating to criminal background checks.
  580         Section 5. Subsection (1), paragraphs (a) and (b) of
  581  subsection (2), and paragraph (d) of subsection (4) of section
  582  409.911, Florida Statutes, are amended to read:
  583         409.911 Disproportionate share program.—Subject to specific
  584  allocations established within the General Appropriations Act
  585  and any limitations established pursuant to chapter 216, the
  586  agency shall distribute, pursuant to this section, moneys to
  587  hospitals providing a disproportionate share of Medicaid or
  588  charity care services by making quarterly Medicaid payments as
  589  required. Notwithstanding the provisions of s. 409.915, counties
  590  are exempt from contributing toward the cost of this special
  591  reimbursement for hospitals serving a disproportionate share of
  592  low-income patients.
  593         (1) DEFINITIONS.—As used in this section, s. 409.9112, and
  594  the Florida Hospital Uniform Reporting System manual:
  595         (a) “Adjusted patient days” means the sum of acute care
  596  patient days and intensive care patient days as reported to the
  597  agency for Health Care Administration, divided by the ratio of
  598  inpatient revenues generated from acute, intensive, ambulatory,
  599  and ancillary patient services to gross revenues.
  600         (b) “Actual audited data” or “actual audited experience”
  601  means data reported to the agency for Health Care Administration
  602  which has been audited in accordance with generally accepted
  603  auditing standards by the agency or representatives under
  604  contract with the agency.
  605         (c) “Charity care” or “uncompensated charity care” means
  606  that portion of hospital charges reported to the agency for
  607  Health Care Administration for which there is no compensation,
  608  other than restricted or unrestricted revenues provided to a
  609  hospital by local governments or tax districts, regardless of
  610  the method of payment, for care provided to a patient whose
  611  family income for the 12 months preceding the determination is
  612  less than or equal to 200 percent of the federal poverty level,
  613  unless the amount of hospital charges due from the patient
  614  exceeds 25 percent of the annual family income. However, in no
  615  case shall the hospital charges for a patient whose family
  616  income exceeds four times the federal poverty level for a family
  617  of four may not be considered charity.
  618         (d) “Charity care days” means the sum of the deductions
  619  from revenues for charity care minus 50 percent of restricted
  620  and unrestricted revenues provided to a hospital by local
  621  governments or tax districts, divided by gross revenues per
  622  adjusted patient day.
  623         (e) “Hospital” means a health care institution licensed as
  624  a hospital pursuant to chapter 395, but does not include
  625  ambulatory surgical centers.
  626         (f) “Medicaid days” means the number of actual days
  627  attributable to Medicaid recipients patients as determined by
  628  the agency for Health Care Administration.
  629         (2) The agency for Health Care Administration shall use the
  630  following actual audited data to determine the Medicaid days and
  631  charity care to be used in calculating the disproportionate
  632  share payment:
  633         (a) The average of the 2004, 2005, and 2006 audited
  634  disproportionate share data to determine each hospital’s
  635  Medicaid days and charity care for the 2012-2013 2011-2012 state
  636  fiscal year.
  637         (b) If the agency for Health Care Administration does not
  638  have the prescribed 3 years of audited disproportionate share
  639  data as noted in paragraph (a) for a hospital, the agency shall
  640  use the average of the years of the audited disproportionate
  641  share data as noted in paragraph (a) which is available.
  642         (4) The following formulas shall be used to pay
  643  disproportionate share dollars to public hospitals:
  644         (d) Any nonstate government owned or operated hospital
  645  eligible for payments under this section on July 1, 2011,
  646  remains eligible for payments during the 2012-2013 2011-2012
  647  state fiscal year.
  648         Section 6. Section 409.9112, Florida Statutes, is repealed.
  649         Section 7. Section 409.9113, Florida Statutes, is amended
  650  to read:
  651         409.9113 Disproportionate share program for teaching
  652  hospitals.—In addition to the payments made under s. ss. 409.911
  653  and 409.9112, the agency shall make disproportionate share
  654  payments to teaching hospitals, as defined in s. 408.07, for
  655  their increased costs associated with medical education programs
  656  and for tertiary health care services provided to the indigent.
  657  This system of payments must conform to federal requirements and
  658  distribute funds in each fiscal year for which an appropriation
  659  is made by making quarterly Medicaid payments. Notwithstanding
  660  s. 409.915, counties are exempt from contributing toward the
  661  cost of this special reimbursement for hospitals serving a
  662  disproportionate share of low-income patients. For the 2011-2012
  663  state fiscal year, The agency shall distribute the moneys
  664  provided in the General Appropriations Act to statutorily
  665  defined teaching hospitals and family practice teaching
  666  hospitals, as defined in s. 395.805, pursuant to this section.
  667  The funds provided for statutorily defined teaching hospitals
  668  shall be distributed as provided in the General Appropriations
  669  Act. The funds provided for family practice teaching hospitals
  670  shall be distributed equally among family practice teaching
  671  hospitals.
  672         (1) On or before September 15 of each year, the agency
  673  shall calculate an allocation fraction to be used for
  674  distributing funds to statutory teaching hospitals. Subsequent
  675  to the end of each quarter of the state fiscal year, the agency
  676  shall distribute to each statutory teaching hospital an amount
  677  determined by multiplying one-fourth of the funds appropriated
  678  for this purpose by the Legislature times such hospital’s
  679  allocation fraction. The allocation fraction for each such
  680  hospital shall be determined by the sum of the following three
  681  primary factors, divided by three:
  682         (a) The number of nationally accredited graduate medical
  683  education programs offered by the hospital, including programs
  684  accredited by the Accreditation Council for Graduate Medical
  685  Education and the combined Internal Medicine and Pediatrics
  686  programs acceptable to both the American Board of Internal
  687  Medicine and the American Board of Pediatrics at the beginning
  688  of the state fiscal year preceding the date on which the
  689  allocation fraction is calculated. The numerical value of this
  690  factor is the fraction that the hospital represents of the total
  691  number of programs, where the total is computed for all
  692  statutory teaching hospitals.
  693         (b) The number of full-time equivalent trainees in the
  694  hospital, which comprises two components:
  695         1. The number of trainees enrolled in nationally accredited
  696  graduate medical education programs, as defined in paragraph
  697  (a). Full-time equivalents are computed using the fraction of
  698  the year during which each trainee is primarily assigned to the
  699  given institution, over the state fiscal year preceding the date
  700  on which the allocation fraction is calculated. The numerical
  701  value of this factor is the fraction that the hospital
  702  represents of the total number of full-time equivalent trainees
  703  enrolled in accredited graduate programs, where the total is
  704  computed for all statutory teaching hospitals.
  705         2. The number of medical students enrolled in accredited
  706  colleges of medicine and engaged in clinical activities,
  707  including required clinical clerkships and clinical electives.
  708  Full-time equivalents are computed using the fraction of the
  709  year during which each trainee is primarily assigned to the
  710  given institution, over the course of the state fiscal year
  711  preceding the date on which the allocation fraction is
  712  calculated. The numerical value of this factor is the fraction
  713  that the given hospital represents of the total number of full
  714  time equivalent students enrolled in accredited colleges of
  715  medicine, where the total is computed for all statutory teaching
  716  hospitals.
  717  
  718  The primary factor for full-time equivalent trainees is computed
  719  as the sum of these two components, divided by two.
  720         (c) A service index that comprises three components:
  721         1. The Agency for Health Care Administration Service Index,
  722  computed by applying the standard Service Inventory Scores
  723  established by the agency to services offered by the given
  724  hospital, as reported on Worksheet A-2 for the last fiscal year
  725  reported to the agency before the date on which the allocation
  726  fraction is calculated. The numerical value of this factor is
  727  the fraction that the given hospital represents of the total
  728  index values, where the total is computed for all statutory
  729  teaching hospitals.
  730         2. A volume-weighted service index, computed by applying
  731  the standard Service Inventory Scores established by the agency
  732  to the volume of each service, expressed in terms of the
  733  standard units of measure reported on Worksheet A-2 for the last
  734  fiscal year reported to the agency before the date on which the
  735  allocation factor is calculated. The numerical value of this
  736  factor is the fraction that the given hospital represents of the
  737  total volume-weighted service index values, where the total is
  738  computed for all statutory teaching hospitals.
  739         3. Total Medicaid payments to each hospital for direct
  740  inpatient and outpatient services during the fiscal year
  741  preceding the date on which the allocation factor is calculated.
  742  This includes payments made to each hospital for such services
  743  by Medicaid prepaid health plans, whether the plan was
  744  administered by the hospital or not. The numerical value of this
  745  factor is the fraction that each hospital represents of the
  746  total of such Medicaid payments, where the total is computed for
  747  all statutory teaching hospitals.
  748  
  749  The primary factor for the service index is computed as the sum
  750  of these three components, divided by three.
  751         (2) By October 1 of each year, the agency shall use the
  752  following formula to calculate the maximum additional
  753  disproportionate share payment for statutory teaching hospitals:
  754  
  755                           TAP = THAF x A                          
  756  
  757  Where:
  758         TAP = total additional payment.
  759         THAF = teaching hospital allocation factor.
  760         A = amount appropriated for a teaching hospital
  761  disproportionate share program.
  762         Section 8. Section 409.9117, Florida Statutes, is repealed.
  763         Section 9. Paragraphs (b) and (d) of subsection (4) of
  764  section 409.912, Florida Statutes, are amended to read:
  765         409.912 Cost-effective purchasing of health care.—The
  766  agency shall purchase goods and services for Medicaid recipients
  767  in the most cost-effective manner consistent with the delivery
  768  of quality medical care. To ensure that medical services are
  769  effectively utilized, the agency may, in any case, require a
  770  confirmation or second physician’s opinion of the correct
  771  diagnosis for purposes of authorizing future services under the
  772  Medicaid program. This section does not restrict access to
  773  emergency services or poststabilization care services as defined
  774  in 42 C.F.R. part 438.114. Such confirmation or second opinion
  775  shall be rendered in a manner approved by the agency. The agency
  776  shall maximize the use of prepaid per capita and prepaid
  777  aggregate fixed-sum basis services when appropriate and other
  778  alternative service delivery and reimbursement methodologies,
  779  including competitive bidding pursuant to s. 287.057, designed
  780  to facilitate the cost-effective purchase of a case-managed
  781  continuum of care. The agency shall also require providers to
  782  minimize the exposure of recipients to the need for acute
  783  inpatient, custodial, and other institutional care and the
  784  inappropriate or unnecessary use of high-cost services. The
  785  agency shall contract with a vendor to monitor and evaluate the
  786  clinical practice patterns of providers in order to identify
  787  trends that are outside the normal practice patterns of a
  788  provider’s professional peers or the national guidelines of a
  789  provider’s professional association. The vendor must be able to
  790  provide information and counseling to a provider whose practice
  791  patterns are outside the norms, in consultation with the agency,
  792  to improve patient care and reduce inappropriate utilization.
  793  The agency may mandate prior authorization, drug therapy
  794  management, or disease management participation for certain
  795  populations of Medicaid beneficiaries, certain drug classes, or
  796  particular drugs to prevent fraud, abuse, overuse, and possible
  797  dangerous drug interactions. The Pharmaceutical and Therapeutics
  798  Committee shall make recommendations to the agency on drugs for
  799  which prior authorization is required. The agency shall inform
  800  the Pharmaceutical and Therapeutics Committee of its decisions
  801  regarding drugs subject to prior authorization. The agency is
  802  authorized to limit the entities it contracts with or enrolls as
  803  Medicaid providers by developing a provider network through
  804  provider credentialing. The agency may competitively bid single
  805  source-provider contracts if procurement of goods or services
  806  results in demonstrated cost savings to the state without
  807  limiting access to care. The agency may limit its network based
  808  on the assessment of beneficiary access to care, provider
  809  availability, provider quality standards, time and distance
  810  standards for access to care, the cultural competence of the
  811  provider network, demographic characteristics of Medicaid
  812  beneficiaries, practice and provider-to-beneficiary standards,
  813  appointment wait times, beneficiary use of services, provider
  814  turnover, provider profiling, provider licensure history,
  815  previous program integrity investigations and findings, peer
  816  review, provider Medicaid policy and billing compliance records,
  817  clinical and medical record audits, and other factors. Providers
  818  are not entitled to enrollment in the Medicaid provider network.
  819  The agency shall determine instances in which allowing Medicaid
  820  beneficiaries to purchase durable medical equipment and other
  821  goods is less expensive to the Medicaid program than long-term
  822  rental of the equipment or goods. The agency may establish rules
  823  to facilitate purchases in lieu of long-term rentals in order to
  824  protect against fraud and abuse in the Medicaid program as
  825  defined in s. 409.913. The agency may seek federal waivers
  826  necessary to administer these policies.
  827         (4) The agency may contract with:
  828         (b) An entity that is providing comprehensive behavioral
  829  health care services to certain Medicaid recipients through a
  830  capitated, prepaid arrangement pursuant to the federal waiver
  831  provided for by s. 409.905(5). Such entity must be licensed
  832  under chapter 624, chapter 636, or chapter 641, or authorized
  833  under paragraph (c) or paragraph (d), and must possess the
  834  clinical systems and operational competence to manage risk and
  835  provide comprehensive behavioral health care to Medicaid
  836  recipients. As used in this paragraph, the term “comprehensive
  837  behavioral health care services” means covered mental health and
  838  substance abuse treatment services that are available to
  839  Medicaid recipients. The secretary of the Department of Children
  840  and Family Services shall approve provisions of procurements
  841  related to children in the department’s care or custody before
  842  enrolling such children in a prepaid behavioral health plan. Any
  843  contract awarded under this paragraph must be competitively
  844  procured. In developing the behavioral health care prepaid plan
  845  procurement document, the agency must shall ensure that the
  846  procurement document requires the contractor to develop and
  847  implement a plan that ensures to ensure compliance with s.
  848  394.4574 related to services provided to residents of licensed
  849  assisted living facilities that hold a limited mental health
  850  license. Except as provided in subparagraph 5., and except in
  851  counties where the Medicaid managed care pilot program is
  852  authorized pursuant to s. 409.91211, the agency shall seek
  853  federal approval to contract with a single entity meeting these
  854  requirements to provide comprehensive behavioral health care
  855  services to all Medicaid recipients not enrolled in a Medicaid
  856  managed care plan authorized under s. 409.91211, a provider
  857  service network authorized under paragraph (d), or a Medicaid
  858  health maintenance organization in an AHCA area. In an AHCA area
  859  where the Medicaid managed care pilot program is authorized
  860  pursuant to s. 409.91211 in one or more counties, the agency may
  861  procure a contract with a single entity to serve the remaining
  862  counties as an AHCA area or the remaining counties may be
  863  included with an adjacent AHCA area and are subject to this
  864  paragraph. Each entity must offer a sufficient choice of
  865  providers in its network to ensure recipient access to care and
  866  the opportunity to select a provider with whom they are
  867  satisfied. The network must shall include all public mental
  868  health hospitals. To ensure unimpaired access to behavioral
  869  health care services by Medicaid recipients, all contracts
  870  issued pursuant to this paragraph must require 80 percent of the
  871  capitation paid to the managed care plan, including health
  872  maintenance organizations and capitated provider service
  873  networks, to be expended for the provision of behavioral health
  874  care services. If the managed care plan expends less than 80
  875  percent of the capitation paid for the provision of behavioral
  876  health care services, the difference shall be returned to the
  877  agency. The agency shall provide the plan with a certification
  878  letter indicating the amount of capitation paid during each
  879  calendar year for behavioral health care services pursuant to
  880  this section. The agency may reimburse for substance abuse
  881  treatment services on a fee-for-service basis until the agency
  882  finds that adequate funds are available for capitated, prepaid
  883  arrangements.
  884         1. The agency shall modify the contracts with the entities
  885  providing comprehensive inpatient and outpatient mental health
  886  care services to Medicaid recipients in Hillsborough, Highlands,
  887  Hardee, Manatee, and Polk Counties, to include substance abuse
  888  treatment services.
  889         2. Except as provided in subparagraph 5., the agency and
  890  the Department of Children and Family Services shall contract
  891  with managed care entities in each AHCA area except area 6 or
  892  arrange to provide comprehensive inpatient and outpatient mental
  893  health and substance abuse services through capitated prepaid
  894  arrangements to all Medicaid recipients who are eligible to
  895  participate in such plans under federal law and regulation. In
  896  AHCA areas where eligible individuals number less than 150,000,
  897  the agency shall contract with a single managed care plan to
  898  provide comprehensive behavioral health services to all
  899  recipients who are not enrolled in a Medicaid health maintenance
  900  organization, a provider service network authorized under
  901  paragraph (d), or a Medicaid capitated managed care plan
  902  authorized under s. 409.91211. The agency may contract with more
  903  than one comprehensive behavioral health provider to provide
  904  care to recipients who are not enrolled in a Medicaid capitated
  905  managed care plan authorized under s. 409.91211, a provider
  906  service network authorized under paragraph (d), or a Medicaid
  907  health maintenance organization in AHCA areas where the eligible
  908  population exceeds 150,000. In an AHCA area where the Medicaid
  909  managed care pilot program is authorized pursuant to s.
  910  409.91211 in one or more counties, the agency may procure a
  911  contract with a single entity to serve the remaining counties as
  912  an AHCA area or the remaining counties may be included with an
  913  adjacent AHCA area and shall be subject to this paragraph.
  914  Contracts for comprehensive behavioral health providers awarded
  915  pursuant to this section shall be competitively procured. Both
  916  for-profit and not-for-profit corporations are eligible to
  917  compete. Managed care plans contracting with the agency under
  918  subsection (3) or paragraph (d) shall provide and receive
  919  payment for the same comprehensive behavioral health benefits as
  920  provided in AHCA rules, including handbooks incorporated by
  921  reference. In AHCA area 11, prior to any fiscal year for which
  922  the agency expects the number of MediPass enrollees in that area
  923  to exceed 150,000, the agency shall seek to contract with at
  924  least two comprehensive behavioral health care providers to
  925  provide behavioral health care to recipients in that area who
  926  are enrolled in, or assigned to, the MediPass program, and the
  927  agency must offer one. One of the behavioral health care
  928  contracts to must be with the existing public hospital-operated
  929  provider service network pilot project, as described in
  930  paragraph (d), for the purpose of demonstrating the cost
  931  effectiveness of the provision of quality mental health services
  932  through a public hospital-operated managed care model. Payment
  933  shall be at an agreed-upon capitated rate to ensure cost
  934  savings. Of the recipients in area 11 who are assigned to
  935  MediPass under s. 409.9122(2)(k), a minimum of 50,000 of those
  936  MediPass-enrolled recipients shall be assigned to the existing
  937  provider service network in area 11 for their behavioral care.
  938         3. Children residing in a statewide inpatient psychiatric
  939  program, or in a Department of Juvenile Justice or a Department
  940  of Children and Family Services residential program approved as
  941  a Medicaid behavioral health overlay services provider may not
  942  be included in a behavioral health care prepaid health plan or
  943  any other Medicaid managed care plan pursuant to this paragraph.
  944         4. Traditional community mental health providers under
  945  contract with the Department of Children and Family Services
  946  pursuant to part IV of chapter 394, child welfare providers
  947  under contract with the Department of Children and Family
  948  Services in areas 1 and 6, and inpatient mental health providers
  949  licensed pursuant to chapter 395 must be offered an opportunity
  950  to accept or decline a contract to participate in a any provider
  951  network for prepaid behavioral health services.
  952         5. All Medicaid-eligible children, except children in area
  953  1 and children in Highlands County, Hardee County, Polk County,
  954  or Manatee County of area 6, which that are open for child
  955  welfare services in the statewide automated child welfare
  956  information system, shall receive their behavioral health care
  957  services through a specialty prepaid plan operated by community
  958  based lead agencies through a single agency or formal agreements
  959  among several agencies. The agency shall work with the specialty
  960  plan to develop clinically effective, evidence-based
  961  alternatives as a downward substitution for the statewide
  962  inpatient psychiatric program and similar residential care and
  963  institutional services. The specialty prepaid plan must result
  964  in savings to the state comparable to savings achieved in other
  965  Medicaid managed care and prepaid programs. Such plan must
  966  provide mechanisms to maximize state and local revenues. The
  967  specialty prepaid plan shall be developed by the agency and the
  968  Department of Children and Family Services. The agency may seek
  969  federal waivers to implement this initiative. Medicaid-eligible
  970  children whose cases are open for child welfare services in the
  971  statewide automated child welfare information system and who
  972  reside in AHCA area 10 shall be enrolled in a capitated provider
  973  service network or other capitated managed care plan, which, in
  974  coordination with available community-based care providers
  975  specified in s. 409.1671, must shall provide sufficient medical,
  976  developmental, and behavioral health services to meet the needs
  977  of these children.
  978  
  979  This paragraph expires October 1, 2014.
  980         (d)1. A provider service network, which may be reimbursed
  981  on a fee-for-service or prepaid basis. Prepaid provider service
  982  networks shall receive per-member, per-month payments. A
  983  provider service network that does not choose to be a prepaid
  984  plan shall receive fee-for-service rates with a shared savings
  985  settlement. The fee-for-service option shall be available to a
  986  provider service network only for the first 2 years of the
  987  plan’s operation or until the contract year beginning September
  988  1, 2014, whichever is later. The agency shall annually conduct
  989  cost reconciliations to determine the amount of cost savings
  990  achieved by fee-for-service provider service networks for the
  991  dates of service in the period being reconciled. Only payments
  992  for covered services for dates of service within the
  993  reconciliation period and paid within 6 months after the last
  994  date of service in the reconciliation period shall be included.
  995  The agency shall perform the necessary adjustments for the
  996  inclusion of claims incurred but not reported within the
  997  reconciliation for claims that could be received and paid by the
  998  agency after the 6-month claims processing time lag. The agency
  999  shall provide the results of the reconciliations to the fee-for
 1000  service provider service networks within 45 days after the end
 1001  of the reconciliation period. The fee-for-service provider
 1002  service networks shall review and provide written comments or a
 1003  letter of concurrence to the agency within 45 days after receipt
 1004  of the reconciliation results. This reconciliation shall be
 1005  considered final.
 1006         2. A provider service network that which is reimbursed by
 1007  the agency on a prepaid basis is shall be exempt from parts I
 1008  and III of chapter 641, but must comply with the solvency
 1009  requirements in s. 641.2261(2) and meet appropriate financial
 1010  reserve, quality assurance, and patient rights requirements as
 1011  established by the agency.
 1012         3. The agency shall assign Medicaid recipients assigned to
 1013  a provider service network in accordance with s. 409.9122 or s.
 1014  409.91211, as applicable shall be chosen equally from those who
 1015  would otherwise have been assigned to prepaid plans and
 1016  MediPass. The agency may is authorized to seek federal Medicaid
 1017  waivers as necessary to implement the provisions of this
 1018  section. This subparagraph expires October 1, 2014.
 1019         4. A provider service network is a network established or
 1020  organized and operated by a health care provider, or group of
 1021  affiliated health care providers, including minority physician
 1022  networks and emergency room diversion programs that meet the
 1023  requirements of s. 409.91211, which provides a substantial
 1024  proportion of the health care items and services under a
 1025  contract directly through the provider or affiliated group of
 1026  providers and may make arrangements with physicians or other
 1027  health care professionals, health care institutions, or any
 1028  combination of such individuals or institutions to assume all or
 1029  part of the financial risk on a prospective basis for the
 1030  provision of basic health services by the physicians, by other
 1031  health professionals, or through the institutions. The health
 1032  care providers must have a controlling interest in the governing
 1033  body of the provider service network organization.
 1034         Section 10. Section 409.9121, Florida Statutes, is amended
 1035  to read:
 1036         409.9121 Legislative findings and intent.—The Legislature
 1037  hereby finds that the Medicaid program has experienced an annual
 1038  growth rate of approximately 28 percent per year for the past 5
 1039  years, and is consuming more than half of all new general
 1040  revenue growth. The present Medicaid system must be reoriented
 1041  to emphasize, to the maximum extent possible, the delivery of
 1042  health care through entities and mechanisms that which are
 1043  designed to contain costs, to emphasize preventive and primary
 1044  care, and to promote access and continuity of care. The
 1045  Legislature further finds that the concept of “managed care”
 1046  best encompasses these multiple goals. The Legislature also
 1047  finds that, with the cooperation of the physician community,
 1048  MediPass, the Medicaid primary care case management program, is
 1049  responsible for ensuring that there is a sufficient supply of
 1050  primary care to provide access to preventive and primary care
 1051  services to Medicaid recipients. Therefore, the Legislature
 1052  declares its intent that the Medicaid program require, to the
 1053  maximum extent practicable and permitted by federal law, that
 1054  all Medicaid recipients be enrolled in a managed care program.
 1055         Section 11. Subsections (1), (2), (4), (5), and (12) of
 1056  section 409.9122, Florida Statutes, are amended to read:
 1057         409.9122 Mandatory Medicaid managed care enrollment;
 1058  programs and procedures.—
 1059         (1) It is the intent of the Legislature that Medicaid
 1060  managed care the MediPass program be cost-effective, provide
 1061  quality health care, and improve access to health services, and
 1062  that the program be implemented statewide. Medicaid managed care
 1063  shall consist of the enrollment of Medicaid recipients in the
 1064  MediPass program or managed care plans for comprehensive medical
 1065  services. This subsection expires October 1, 2014.
 1066         (2)(a) The agency shall enroll all Medicaid recipients in a
 1067  managed care plan or MediPass all Medicaid recipients, except
 1068  those Medicaid recipients who are: in an institution,; enrolled
 1069  in the Medicaid medically needy program,; or eligible for both
 1070  Medicaid and Medicare. Upon enrollment, recipients may
 1071  individuals will be able to change their managed care option
 1072  during the 90-day opt out period required by federal Medicaid
 1073  regulations. The agency may is authorized to seek the necessary
 1074  Medicaid state plan amendment to implement this policy. However,
 1075         (a) To the extent permitted by federal law, the agency may
 1076  enroll a recipient in a managed care plan or MediPass a Medicaid
 1077  recipient who is exempt from mandatory managed care enrollment
 1078  if, provided that:
 1079         1. The recipient’s decision to enroll in a managed care
 1080  plan or MediPass is voluntary;
 1081         2. If The recipient chooses to enroll in a managed care
 1082  plan and, the agency has determined that the managed care plan
 1083  provides specific programs and services that which address the
 1084  special health needs of the recipient; and
 1085         3. The agency receives any necessary waivers from the
 1086  federal Centers for Medicare and Medicaid Services.
 1087  
 1088  School districts participating in the certified school match
 1089  program pursuant to ss. 409.908(21) and 1011.70 shall be
 1090  reimbursed by Medicaid, subject to the limitations of s.
 1091  1011.70(1), for a Medicaid-eligible child participating in the
 1092  services as authorized in s. 1011.70, as provided for in s.
 1093  409.9071, regardless of whether the child is enrolled in
 1094  MediPass or a managed care plan. Managed care plans shall make a
 1095  good faith effort to execute agreements with school districts
 1096  regarding the coordinated provision of services authorized under
 1097  s. 1011.70. County health departments delivering school-based
 1098  services pursuant to ss. 381.0056 and 381.0057 shall be
 1099  reimbursed by Medicaid for the federal share for a Medicaid
 1100  eligible child who receives Medicaid-covered services in a
 1101  school setting, regardless of whether the child is enrolled in
 1102  MediPass or a managed care plan. Managed care plans shall make a
 1103  good faith effort to execute agreements with county health
 1104  departments regarding the coordinated provision of services to a
 1105  Medicaid-eligible child. To ensure continuity of care for
 1106  Medicaid patients, the agency, the Department of Health, and the
 1107  Department of Education shall develop procedures for ensuring
 1108  that a student’s managed care plan or MediPass provider receives
 1109  information relating to services provided in accordance with ss.
 1110  381.0056, 381.0057, 409.9071, and 1011.70.
 1111         (b) A Medicaid recipient may shall not be enrolled in or
 1112  assigned to a managed care plan or MediPass unless the managed
 1113  care plan or MediPass has complied with the quality-of-care
 1114  standards specified in paragraphs (3)(a) and (b), respectively.
 1115         (c) A Medicaid recipient eligible for managed care
 1116  enrollment recipients shall have a choice of managed care
 1117  options plans or MediPass. The Agency for Health Care
 1118  Administration, the Department of Health, the Department of
 1119  Children and Family Services, and the Department of Elderly
 1120  Affairs shall cooperate to ensure that each Medicaid recipient
 1121  receives clear and easily understandable information that meets
 1122  the following requirements:
 1123         1. Explains the concept of managed care, including
 1124  MediPass.
 1125         2. Provides information on the comparative performance of
 1126  managed care options available to the recipient plans and
 1127  MediPass in the areas of quality, credentialing, preventive
 1128  health programs, network size and availability, and patient
 1129  satisfaction.
 1130         3. Explains where additional information on each managed
 1131  care option plan and MediPass in the recipient’s area can be
 1132  obtained.
 1133         4. Explains that recipients have the right to choose their
 1134  managed care coverage at the time they first enroll in Medicaid
 1135  and again at regular intervals set by the agency. However, if a
 1136  recipient does not choose a managed care option plan or
 1137  MediPass, the agency shall will assign the recipient to a
 1138  managed care plan or MediPass according to the criteria
 1139  specified in this section.
 1140         5. Explains the recipient’s right to complain, file a
 1141  grievance, or change his or her managed care option as specified
 1142  in this section plans or MediPass providers if the recipient is
 1143  not satisfied with the managed care plan or MediPass.
 1144         (d) The agency shall develop a mechanism for providing
 1145  information to Medicaid recipients for the purpose of choosing
 1146  making a managed care option plan or MediPass selection.
 1147  Examples of such mechanisms may include, but are not be limited
 1148  to, interactive information systems, mailings, and mass
 1149  marketing materials. Managed care plans and MediPass providers
 1150  may not provide are prohibited from providing inducements to
 1151  Medicaid recipients to select their plans or prejudice from
 1152  prejudicing Medicaid recipients against other managed care plans
 1153  or MediPass providers.
 1154         (e) Medicaid recipients who are already enrolled in a
 1155  managed care plan or MediPass shall be offered the opportunity
 1156  to change managed care plans or MediPass providers, as
 1157  applicable, on a staggered basis, as defined by the agency. All
 1158  Medicaid recipients shall have 30 days in which to choose a
 1159  managed care option make a choice of managed care plans or
 1160  MediPass providers. Those Medicaid recipients who do not make a
 1161  choice shall be assigned in accordance with paragraph (f). To
 1162  facilitate continuity of care, for a Medicaid recipient who is
 1163  also a recipient of Supplemental Security Income (SSI), prior to
 1164  assigning the SSI recipient to a managed care plan or MediPass,
 1165  the agency shall determine whether the SSI recipient has an
 1166  ongoing relationship with a MediPass provider or managed care
 1167  plan, and if so, the agency shall assign the SSI recipient to
 1168  that MediPass provider or managed care plan. Those SSI
 1169  recipients who do not have such a provider relationship shall be
 1170  assigned to a managed care plan or MediPass provider in
 1171  accordance with paragraph (f).
 1172         1. During the 30-day choice period:
 1173         a. A recipient residing in a county in which two or more
 1174  managed care plans are eligible to accept Medicaid enrollees,
 1175  including a recipient who was enrolled in MediPass at the
 1176  commencement of his or her 30-day choice period, shall choose
 1177  from those managed care plans. A recipient may opt out of his or
 1178  her choice and choose a different managed care plan during the
 1179  90-day opt out period.
 1180         b. A recipient residing in a county in which only one
 1181  managed care plan is eligible to accept Medicaid enrollees shall
 1182  choose the managed care plan or a MediPass provider. A recipient
 1183  who chooses the managed care plan may opt out of the plan and
 1184  choose a MediPass provider during the 90-day opt out period.
 1185         c. A recipient residing in a county in which no managed
 1186  care plan is accepting Medicaid enrollees shall choose a
 1187  MediPass provider.
 1188         2. For the purposes of recipient choice, if a managed care
 1189  plan reaches its enrollment capacity, as determined by the
 1190  agency, the plan may not accept additional Medicaid enrollees
 1191  until the agency determines that the plan’s enrollment is
 1192  sufficiently less than its enrollment capacity, due to a decline
 1193  in enrollment or by an increase in enrollment capacity. If a
 1194  managed care plan notifies the agency of its intent to exit a
 1195  county, the plan may not accept additional Medicaid enrollees in
 1196  that county before the exit date.
 1197         3. As used in this paragraph, when referring to recipient
 1198  choice, the term “managed care plans” includes health
 1199  maintenance organizations, exclusive provider organizations,
 1200  provider service networks, minority physician networks,
 1201  Children’s Medical Services Networks, and pediatric emergency
 1202  department diversion programs authorized by this chapter or the
 1203  General Appropriations Act.
 1204         4. The agency shall seek federal waiver authority or a
 1205  state plan amendment consistent with 42 U.S.C. 1396u-2(a)(1), as
 1206  needed, to implement this paragraph.
 1207         (f) If a Medicaid recipient does not choose a managed care
 1208  option:
 1209         1. If the recipient resides in a county in which two or
 1210  more managed care plans are accepting Medicaid enrollees, the
 1211  agency shall assign the recipient, including a recipient who was
 1212  enrolled in MediPass at the commencement of his or her 30-day
 1213  choice period, to one of those managed care plans. A recipient
 1214  assigned to a managed care plan under this subparagraph may opt
 1215  out of the managed care plan and enroll in a different managed
 1216  care plan during the 90-day opt out period. The agency shall
 1217  seek to make assignments among the managed care plans on an even
 1218  basis under the criteria in subparagraph 6.
 1219         2. If the recipient resides in a county in which only one
 1220  managed care plan is accepting Medicaid enrollees, the agency
 1221  shall assign the recipient, including a recipient who was
 1222  enrolled in MediPass at the commencement of his or her 30-day
 1223  choice period, to the managed care plan. A recipient assigned to
 1224  a managed care plan under this subparagraph may opt out of the
 1225  managed care plan and choose a MediPass provider during the 90
 1226  day opt out period.
 1227         3. If the recipient resides in a county in which no managed
 1228  care plan is accepting Medicaid enrollees, the agency shall
 1229  assign the recipient to a MediPass provider.
 1230         4. For the purpose of assignment, if a managed care plan
 1231  reaches its enrollment capacity, as determined by the agency,
 1232  the plan may not accept additional Medicaid enrollees until the
 1233  agency determines that the plan’s enrollment is sufficiently
 1234  less than its enrollment capacity, due to a decline in
 1235  enrollment or by an increase in enrollment capacity. If a
 1236  managed care plan notifies the agency of its intent to exit a
 1237  county, the agency may not assign additional Medicaid enrollees
 1238  to the plan in that county before the exit date. plan or
 1239  MediPass provider, the agency shall assign the Medicaid
 1240  recipient to a managed care plan or MediPass provider. Medicaid
 1241  recipients eligible for managed care plan enrollment who are
 1242  subject to mandatory assignment but who fail to make a choice
 1243  shall be assigned to managed care plans until an enrollment of
 1244  35 percent in MediPass and 65 percent in managed care plans, of
 1245  all those eligible to choose managed care, is achieved. Once
 1246  this enrollment is achieved, the assignments shall be divided in
 1247  order to maintain an enrollment in MediPass and managed care
 1248  plans which is in a 35 percent and 65 percent proportion,
 1249  respectively. Thereafter, assignment of Medicaid recipients who
 1250  fail to make a choice shall be based proportionally on the
 1251  preferences of recipients who have made a choice in the previous
 1252  period. Such proportions shall be revised at least quarterly to
 1253  reflect an update of the preferences of Medicaid recipients. The
 1254  agency shall disproportionately assign Medicaid-eligible
 1255  recipients who are required to but have failed to make a choice
 1256  of managed care plan or MediPass to the Children’s Medical
 1257  Services Network as defined in s. 391.021, exclusive provider
 1258  organizations, provider service networks, minority physician
 1259  networks, and pediatric emergency department diversion programs
 1260  authorized by this chapter or the General Appropriations Act, in
 1261  such manner as the agency deems appropriate, until the agency
 1262  has determined that the networks and programs have sufficient
 1263  numbers to be operated economically.
 1264         5. As used in For purposes of this paragraph, when
 1265  referring to assignment, the term “managed care plans” includes
 1266  health maintenance organizations, exclusive provider
 1267  organizations, provider service networks, minority physician
 1268  networks, Children’s Medical Services Network, and pediatric
 1269  emergency department diversion programs authorized by this
 1270  chapter or the General Appropriations Act.
 1271         6. When making assignments, the agency shall consider take
 1272  into account the following criteria, as applicable:
 1273         a.1.Whether a managed care plan has sufficient network
 1274  capacity to meet the need of members.
 1275         b.2.Whether the managed care plan or MediPass has
 1276  previously enrolled the recipient as a member, or one of the
 1277  managed care plan’s primary care providers or a MediPass primary
 1278  care provider providers has previously provided health care to
 1279  the recipient.
 1280         c.3.Whether the agency has knowledge that the recipient
 1281  member has previously expressed a preference for a particular
 1282  managed care plan or MediPass primary care provider as indicated
 1283  by Medicaid fee-for-service claims data, but has failed to make
 1284  a choice.
 1285         d.4.Whether the managed care plan’s or MediPass primary
 1286  care providers are geographically accessible to the recipient’s
 1287  residence.
 1288         e. If the recipient was already enrolled in a managed care
 1289  plan at the commencement of his or her 30-day choice period and
 1290  fails to choose a different option, the recipient must remain
 1291  enrolled in that same managed care plan.
 1292         f. To facilitate continuity of care for a Medicaid
 1293  recipient who is also a recipient of Supplemental Security
 1294  Income (SSI), before assigning the SSI recipient, the agency
 1295  shall determine whether the SSI recipient has an ongoing
 1296  relationship with a managed care plan or a MediPass primary care
 1297  provider, and if so, the agency shall assign the SSI recipient
 1298  to that managed care plan or MediPass provider, as applicable.
 1299  However, if the recipient has an ongoing relationship with a
 1300  MediPass primary care provider who is included in the provider
 1301  network of one or more managed care plans, the agency shall
 1302  assign the recipient to one of those managed care plans.
 1303         g. If the recipient is diagnosed with HIV/AIDS and resides
 1304  in Broward County, Miami-Dade County, or Palm Beach County, the
 1305  agency shall assign the Medicaid recipient to a managed care
 1306  plan that is a health maintenance organization authorized under
 1307  chapter 641, that was under contract with the agency on July 1,
 1308  2011, and that offers a delivery system in partnership with a
 1309  university-based teaching and research-oriented organization
 1310  specializing in providing health care services and treatment for
 1311  individuals diagnosed with HIV/AIDS. Recipients not diagnosed
 1312  with HIV/AIDS may not be assigned under this paragraph to a
 1313  managed care plan that specializes in HIV/AIDS.
 1314         7. The agency shall seek federal waiver authority or a
 1315  state plan amendment consistent with 42 U.S.C. 1396u-2(a)(4)(D),
 1316  as needed, to implement this paragraph.
 1317         (g) When more than one managed care plan or MediPass
 1318  provider meets the criteria specified in paragraph (f), the
 1319  agency shall make recipient assignments consecutively by family
 1320  unit.
 1321         (h) The agency may not engage in practices that are
 1322  designed to favor one managed care plan over another or that are
 1323  designed to influence Medicaid recipients to enroll in MediPass
 1324  rather than in a managed care plan or to enroll in a managed
 1325  care plan rather than in MediPass, as applicable. This
 1326  subsection does not prohibit the agency from reporting on the
 1327  performance of MediPass or any managed care plan, as measured by
 1328  performance criteria developed by the agency.
 1329         (i) After a recipient has made his or her selection or has
 1330  been enrolled in a managed care plan or MediPass, the recipient
 1331  shall have 90 days to exercise the opportunity to voluntarily
 1332  disenroll and select another managed care option plan or
 1333  MediPass. After 90 days, no further changes may be made except
 1334  for good cause. Good cause includes, but is not limited to, poor
 1335  quality of care, lack of access to necessary specialty services,
 1336  an unreasonable delay or denial of service, or fraudulent
 1337  enrollment. The agency shall develop criteria for good cause
 1338  disenrollment for chronically ill and disabled populations who
 1339  are assigned to managed care plans if more appropriate care is
 1340  available through the MediPass program. The agency must make a
 1341  determination as to whether good cause exists. However, the
 1342  agency may require a recipient to use the managed care plan’s or
 1343  MediPass grievance process prior to the agency’s determination
 1344  of good cause, except in cases in which immediate risk of
 1345  permanent damage to the recipient’s health is alleged. The
 1346  grievance process, if used when utilized, must be completed in
 1347  time to permit the recipient to disenroll by the first day of
 1348  the second month after the month the disenrollment request was
 1349  made. If the managed care plan or MediPass, as a result of the
 1350  grievance process, approves an enrollee’s request to disenroll,
 1351  the agency is not required to make a determination in the case.
 1352  The agency must make a determination and take final action on a
 1353  recipient’s request so that disenrollment occurs by no later
 1354  than the first day of the second month after the month the
 1355  request was made. If the agency fails to act within the
 1356  specified timeframe, the recipient’s request to disenroll is
 1357  deemed to be approved as of the date agency action was required.
 1358  Recipients who disagree with the agency’s finding that good
 1359  cause does not exist for disenrollment shall be advised of their
 1360  right to pursue a Medicaid fair hearing to dispute the agency’s
 1361  finding.
 1362         (j) Consistent with 42 U.S.C. 1396u-2(a)(4)(A) or under
 1363  federal waiver authority, as needed, the agency shall apply for
 1364  a federal waiver from the Centers for Medicare and Medicaid
 1365  Services to lock eligible Medicaid recipients into a managed
 1366  care plan or MediPass for 12 months after an open enrollment
 1367  period, except for the 90-day opt out period and good cause
 1368  disenrollment. After 12 months’ enrollment, a recipient may
 1369  select another managed care plan or MediPass provider. However,
 1370  nothing shall prevent a Medicaid recipient may not be prevented
 1371  from changing primary care providers within the managed care
 1372  plan or MediPass program, as applicable, during the 12-month
 1373  period.
 1374         (k) The agency shall maintain MediPass provider networks in
 1375  all counties, including those counties in which two or more
 1376  managed care plans are accepting Medicaid enrollees. When a
 1377  Medicaid recipient does not choose a managed care plan or
 1378  MediPass provider, the agency shall assign the Medicaid
 1379  recipient to a managed care plan, except in those counties in
 1380  which there are fewer than two managed care plans accepting
 1381  Medicaid enrollees, in which case assignment shall be to a
 1382  managed care plan or a MediPass provider. Medicaid recipients in
 1383  counties with fewer than two managed care plans accepting
 1384  Medicaid enrollees who are subject to mandatory assignment but
 1385  who fail to make a choice shall be assigned to managed care
 1386  plans until an enrollment of 35 percent in MediPass and 65
 1387  percent in managed care plans, of all those eligible to choose
 1388  managed care, is achieved. Once that enrollment is achieved, the
 1389  assignments shall be divided in order to maintain an enrollment
 1390  in MediPass and managed care plans which is in a 35 percent and
 1391  65 percent proportion, respectively. For purposes of this
 1392  paragraph, when referring to assignment, the term “managed care
 1393  plans” includes exclusive provider organizations, provider
 1394  service networks, Children’s Medical Services Network, minority
 1395  physician networks, and pediatric emergency department diversion
 1396  programs authorized by this chapter or the General
 1397  Appropriations Act. When making assignments, the agency shall
 1398  take into account the following criteria:
 1399         1. A managed care plan has sufficient network capacity to
 1400  meet the need of members.
 1401         2. The managed care plan or MediPass has previously
 1402  enrolled the recipient as a member, or one of the managed care
 1403  plan’s primary care providers or MediPass providers has
 1404  previously provided health care to the recipient.
 1405         3. The agency has knowledge that the member has previously
 1406  expressed a preference for a particular managed care plan or
 1407  MediPass provider as indicated by Medicaid fee-for-service
 1408  claims data, but has failed to make a choice.
 1409         4. The managed care plan’s or MediPass primary care
 1410  providers are geographically accessible to the recipient’s
 1411  residence.
 1412         5. The agency has authority to make mandatory assignments
 1413  based on quality of service and performance of managed care
 1414  plans.
 1415         (l) If the Medicaid recipient is diagnosed with HIV/AIDS
 1416  and resides in Broward County, Miami-Dade County, or Palm Beach
 1417  County, the agency shall assign the Medicaid recipient to a
 1418  managed care plan that is a health maintenance organization
 1419  authorized under chapter 641, is under contract with the agency
 1420  on July 1, 2011, and which offers a delivery system through a
 1421  university-based teaching and research-oriented organization
 1422  that specializes in providing health care services and treatment
 1423  for individuals diagnosed with HIV/AIDS.
 1424         (l)(m) Notwithstanding the provisions of chapter 287, the
 1425  agency may, at its discretion, renew cost-effective contracts
 1426  for choice counseling services once or more for such periods as
 1427  the agency may decide. However, all such renewals may not
 1428  combine to exceed a total period longer than the term of the
 1429  original contract.
 1430  
 1431  This subsection expires October 1, 2014.
 1432         (4)(a) Each female recipient may select as her primary care
 1433  provider an obstetrician/gynecologist who has agreed to
 1434  participate within a managed care plan’s provider network or as
 1435  a MediPass primary care case manager, as applicable.
 1436         (b) The agency shall establish a complaints and grievance
 1437  process to assist Medicaid recipients enrolled in the MediPass
 1438  program to resolve complaints and grievances. The agency shall
 1439  investigate reports of quality-of-care grievances which remain
 1440  unresolved to the satisfaction of the enrollee.
 1441  
 1442  This subsection expires October 1, 2014.
 1443         (5)(a) The agency shall work cooperatively with the Social
 1444  Security Administration to identify recipients beneficiaries who
 1445  are jointly eligible for Medicare and Medicaid and shall develop
 1446  cooperative programs to encourage these recipients beneficiaries
 1447  to enroll in a Medicare participating health maintenance
 1448  organization or prepaid health plans.
 1449         (b) The agency shall work cooperatively with the Department
 1450  of Elderly Affairs to assess the potential cost-effectiveness of
 1451  providing managed care enrollment MediPass to recipients
 1452  beneficiaries who are jointly eligible for Medicare and Medicaid
 1453  on a voluntary choice basis. If the agency determines that
 1454  enrollment of these recipients beneficiaries in managed care
 1455  MediPass has the potential for being cost-effective for the
 1456  state, the agency shall offer managed care enrollment MediPass
 1457  to these recipients beneficiaries on a voluntary choice basis in
 1458  the counties where managed care is available MediPass operates.
 1459  
 1460  This subsection expires October 1, 2014.
 1461         (12) The agency shall include in its calculation of the
 1462  hospital inpatient component of a Medicaid health maintenance
 1463  organization’s capitation rate any special payments, including,
 1464  but not limited to, upper payment limit or disproportionate
 1465  share hospital payments, made to qualifying hospitals through
 1466  the fee-for-service program. The agency may seek federal waiver
 1467  approval or state plan amendment as needed to implement this
 1468  adjustment. This subsection expires September 1, 2012.
 1469         Section 12. Section 409.9123, Florida Statutes, is amended
 1470  to read:
 1471         409.9123 Quality-of-care reporting.—In order to promote
 1472  competition between Medicaid managed care plans and MediPass
 1473  based on quality-of-care indicators, The agency shall annually
 1474  develop and publish a set of measures of managed care plan
 1475  performance based on quality-of-care indicators. This
 1476  information shall be made available to each Medicaid recipient
 1477  who makes a choice of a managed care plan in her or his area.
 1478  This information must shall be easily understandable to the
 1479  Medicaid recipient and shall use nationally recognized standards
 1480  wherever possible. In formulating this information, the agency
 1481  shall, at a minimum, consider take into account at least the
 1482  following:
 1483         (1) The recommendations of the National Committee for
 1484  Quality Assurance Medicaid HEDIS Task Force.
 1485         (2) Requirements and recommendations of the Centers for
 1486  Medicare and Medicaid Services Health Care Financing
 1487  Administration.
 1488         (3) Recommendations of the managed care industry.
 1489         Section 13. For the purpose of incorporating the amendment
 1490  made by this act to section 409.9122, Florida Statutes, in a
 1491  reference thereto, subsection (1) of section 409.9126, Florida
 1492  Statutes, is reenacted to read:
 1493         409.9126 Children with special health care needs.—
 1494         (1) Except as provided in subsection (4), children eligible
 1495  for Children’s Medical Services who receive Medicaid benefits,
 1496  and other Medicaid-eligible children with special health care
 1497  needs, shall be exempt from the provisions of s. 409.9122 and
 1498  shall be served through the Children’s Medical Services network
 1499  established in chapter 391.
 1500         Section 14. Effective upon this act becoming a law,
 1501  subsections (4) through (6) of section 409.915, Florida
 1502  Statutes, are amended, and subsections (7) through (11) are
 1503  added to that section, to read:
 1504         409.915 County contributions to Medicaid.—Although the
 1505  state is responsible for the full portion of the state share of
 1506  the matching funds required for the Medicaid program, in order
 1507  to acquire a certain portion of these funds, the state shall
 1508  charge the counties for certain items of care and service as
 1509  provided in this section.
 1510         (4) Each county shall contribute pay into the General
 1511  Revenue Fund, unallocated, its pro rata share of the total
 1512  county participation based upon statements rendered by the
 1513  agency in consultation with the counties. The agency shall
 1514  render such statements monthly based on each county’s eligible
 1515  recipients. For purposes of this section, each county’s eligible
 1516  recipients shall be determined by the recipients’ address
 1517  information contained in the federally approved Medicaid
 1518  eligibility system within the Department of Children and Family
 1519  Services. The process developed under subsection (10) may be
 1520  used for cases in which the Medicaid eligibility system’s
 1521  address information may indicate a need for revision.
 1522         (5) The Department of Financial Services shall withhold
 1523  from the cigarette tax receipts or any other funds to be
 1524  distributed to the counties the individual county share that has
 1525  not been remitted within 60 days after billing.
 1526         (5)(6) In any county in which a special taxing district or
 1527  authority is located which will benefit from the medical
 1528  assistance programs covered by this section, the board of county
 1529  commissioners may divide the county’s financial responsibility
 1530  for this purpose proportionately, and each such district or
 1531  authority must furnish its share to the board of county
 1532  commissioners in time for the board to comply with the
 1533  provisions of subsection (3). Any appeal of the proration made
 1534  by the board of county commissioners must be made to the
 1535  Department of Financial Services, which shall then set the
 1536  proportionate share of each party.
 1537         (6)(7) Counties are exempt from contributing toward the
 1538  cost of new exemptions on inpatient ceilings for statutory
 1539  teaching hospitals, specialty hospitals, and community hospital
 1540  education program hospitals that came into effect July 1, 2000,
 1541  and for special Medicaid payments that came into effect on or
 1542  after July 1, 2000.
 1543         (7) By September 1, 2012, the agency shall certify to the
 1544  Department of Revenue, for each county, an amount equal to 85
 1545  percent of each county’s billings through April 30, 2012, which
 1546  remain unpaid.
 1547         (8)(a)Beginning with the October 2012 distribution, the
 1548  Department of Revenue shall reduce each county’s distributions
 1549  pursuant to s. 218.26 by one thirty-sixth of the amount
 1550  certified by the agency under subsection (7) for that county.
 1551  However, the amount of the reduction may not exceed 50 percent
 1552  of each county’s distribution. If, after 36 months, the
 1553  reductions for each county do not equal the total amount
 1554  initially certified by the agency, the Department of Revenue
 1555  shall continue to reduce each distribution by up to 50 percent
 1556  until the total amount certified is reached. The amounts by
 1557  which the distributions are reduced shall be transferred to the
 1558  General Revenue Fund.
 1559         (b) As an assurance to holders of bonds issued before the
 1560  effective date of this act to which distributions made pursuant
 1561  to s. 218.26 are pledged, or bonds issued to refund such bonds
 1562  which mature no later than the bonds they refunded and which
 1563  result in a reduction of debt service payable in each fiscal
 1564  year, the amount available for distribution to a county shall
 1565  remain as provided by law and continue to be subject to any lien
 1566  or claim on behalf of the bondholders. The Department of Revenue
 1567  must ensure that any reduction in amounts distributed pursuant
 1568  to paragraph (a) does not reduce the amount of distribution to a
 1569  county below the amount necessary for the payment of principal
 1570  and interest on the bonds and the amount necessary to comply
 1571  with any covenant under the bond resolution or other documents
 1572  relating to the issuance of the bonds.
 1573         (9)(a)Beginning May 1, 2012, and each month thereafter,
 1574  the agency shall certify to the Department of Revenue the amount
 1575  of the monthly statement rendered to each county pursuant to
 1576  subsection (4). The department shall reduce each county’s
 1577  monthly distribution pursuant to s. 218.61 by the amount
 1578  certified. The amounts by which the distributions are reduced
 1579  shall be transferred to the General Revenue Fund.
 1580         (b) As an assurance to holders of bonds issued before the
 1581  effective date of this act to which distributions made pursuant
 1582  to s. 218.61 are pledged, or bonds issued to refund such bonds
 1583  which mature no later than the bonds they refunded and which
 1584  result in a reduction of debt service payable in each fiscal
 1585  year, the amount available for distribution to a county shall
 1586  remain as provided by law and continue to be subject to any lien
 1587  or claim on behalf of the bondholders. The Department of Revenue
 1588  must ensure that any reductions in amounts distributed pursuant
 1589  to paragraph (a) does not reduce the amount of distribution to a
 1590  county below the amount necessary for the payment of principal
 1591  and interest on the bonds and the amount necessary to comply
 1592  with any covenant under the bond resolution or other documents
 1593  relating to the issuance of the bonds.
 1594         (10)The Department of Revenue shall pay certified refund
 1595  requests in accordance with a process developed by the agency
 1596  and the department which:
 1597         (a)Allows counties to submit to the agency written
 1598  requests for refunds of any amounts by which the distributions
 1599  were reduced as provided in subsection (9) and which set forth
 1600  the reasons for the refund requests.
 1601         (b)Requires the agency to make a determination as to
 1602  whether a refund request is appropriate and should be approved,
 1603  in which case the agency shall certify the amount of the refund
 1604  to the department.
 1605         (c)Requires the department to issue the refund for the
 1606  certified amount to the county from the General Revenue Fund.
 1607         (11) Beginning in the 2013-2014 fiscal year and each year
 1608  thereafter until the 2020-2021 fiscal year, the Chief Financial
 1609  Officer shall transfer from the General Revenue Fund to the
 1610  Lawton Chiles Endowment Fund an amount equal to the amounts
 1611  transferred to the General Revenue Fund in the previous fiscal
 1612  year pursuant to subsections (8) and (9), reduced by the amount
 1613  of refunds paid pursuant to subsection (10), which are in excess
 1614  of the official estimate for medical hospital fees for such
 1615  previous fiscal year adopted by the Revenue Estimating
 1616  Conference on January 12, 2012, as reflected in the conference’s
 1617  workpapers. By July 20 of each year, the Office of Economic and
 1618  Demographic Research shall certify the amount to be transferred
 1619  to the Chief Financial Officer. Such transfers must be made
 1620  before July 31 of each year until the total transfers for all
 1621  years equal $265 million. The Office of Economic and Demographic
 1622  Research shall publish the official estimates reflected in the
 1623  conference’s workpapers on its website.
 1624         Section 15. Subsection (2) of section 409.979, Florida
 1625  Statutes, is amended to read:
 1626         409.979 Eligibility.—
 1627         (2) Medicaid recipients who, on the date long-term care
 1628  managed care plans become available in their region, reside in a
 1629  nursing home facility or are enrolled in one of the following
 1630  long-term care Medicaid waiver programs are eligible to
 1631  participate in the long-term care managed care program for up to
 1632  12 months without being reevaluated for their need for nursing
 1633  facility care as defined in s. 409.985(3):
 1634         (a) The Assisted Living for the Frail Elderly Waiver.
 1635         (b) The Aged and Disabled Adult Waiver.
 1636         (c) The Adult Day Health Care Waiver.
 1637         (c)(d) The Consumer-Directed Care Plus Program as described
 1638  in s. 409.221.
 1639         (d)(e) The Program of All-inclusive Care for the Elderly.
 1640         (e)(f) The long-term care community-based diversion pilot
 1641  project as described in s. 430.705.
 1642         (f)(g) The Channeling Services Waiver for Frail Elders.
 1643         Section 16. Subsection (15) of section 430.04, Florida
 1644  Statutes, is amended to read:
 1645         430.04 Duties and responsibilities of the Department of
 1646  Elderly Affairs.—The Department of Elderly Affairs shall:
 1647         (15) Administer all Medicaid waivers and programs relating
 1648  to elders and their appropriations. The waivers include, but are
 1649  not limited to:
 1650         (a) The Assisted Living for the Frail Elderly Waiver.
 1651         (b) The Aged and Disabled Adult Waiver.
 1652         (c) The Adult Day Health Care Waiver.
 1653         (c)(d) The Consumer-Directed Care Plus Program as defined
 1654  in s. 409.221.
 1655         (d)(e) The Program of All-inclusive Care for the Elderly.
 1656         (e)(f) The Long-Term Care Community-Based Diversion Pilot
 1657  Project as described in s. 430.705.
 1658         (f)(g) The Channeling Services Waiver for Frail Elders.
 1659  
 1660  The department shall develop a transition plan for recipients
 1661  receiving services in long-term care Medicaid waivers for elders
 1662  or disabled adults on the date eligible plans become available
 1663  in each recipient’s region defined in s. 409.981(2) to enroll
 1664  those recipients in eligible plans. This subsection expires
 1665  October 1, 2014.
 1666         Section 17. Section 31 of chapter 2009-223, Laws of
 1667  Florida, as amended by section 44 of chapter 2010-151, Laws of
 1668  Florida, is redesignated as section 409.9132, Florida Statutes,
 1669  and amended to read:
 1670         409.9132 Section 31. Pilot project to monitor home health
 1671  services.—The agency for Health Care Administration shall expand
 1672  the develop and implement a home health agency monitoring pilot
 1673  project in Miami-Dade County on a statewide basis effective July
 1674  1, 2012, except in counties in which the program will not be
 1675  cost-effective, as determined by the agency by January 1, 2010.
 1676  The agency shall contract with a vendor to verify the
 1677  utilization and delivery of home health services and provide an
 1678  electronic billing interface for home health services. The
 1679  contract must require the creation of a program to submit claims
 1680  electronically for the delivery of home health services. The
 1681  program must verify telephonically visits for the delivery of
 1682  home health services using voice biometrics. The agency may seek
 1683  amendments to the Medicaid state plan and waivers of federal
 1684  laws, as necessary, to implement or expand the pilot project.
 1685  Notwithstanding s. 287.057(3)(f), Florida Statutes, the agency
 1686  must award the contract through the competitive solicitation
 1687  process and may use the current contract to expand the home
 1688  health agency monitoring pilot project to include additional
 1689  counties as authorized under this section. The agency shall
 1690  submit a report to the Governor, the President of the Senate,
 1691  and the Speaker of the House of Representatives evaluating the
 1692  pilot project by February 1, 2011.
 1693         Section 18. Section 32 of chapter 2009-223, Laws of
 1694  Florida, is redesignated as section 409.9133, Florida Statutes,
 1695  and amended to read:
 1696         409.9133 Section 32. Pilot project for home health care
 1697  management.—The agency for Health Care Administration shall
 1698  expand the implement a comprehensive care management pilot
 1699  project for home health services statewide and include private
 1700  duty nursing and personal care services effective July 1, 2012,
 1701  except in counties in which the program will not be cost
 1702  effective, as determined by the agency by January 1, 2010. The
 1703  program must include, which includes face-to-face assessments by
 1704  a nurse licensed pursuant to chapter 464, Florida Statutes,
 1705  consultation with physicians ordering services to substantiate
 1706  the medical necessity for services, and on-site or desk reviews
 1707  of recipients’ medical records in Miami-Dade County. The agency
 1708  may enter into a contract with a qualified organization to
 1709  implement or expand the pilot project. The agency may use the
 1710  current contract to expand the comprehensive care management
 1711  pilot project to include the additional services and counties
 1712  authorized under this section. The agency may seek amendments to
 1713  the Medicaid state plan and waivers of federal laws, as
 1714  necessary, to implement or expand the pilot project.
 1715         Section 19. Notwithstanding s. 430.707, Florida Statutes,
 1716  and subject to federal approval of an additional site for the
 1717  Program of All-Inclusive Care for the Elderly (PACE), the Agency
 1718  for Health Care Administration shall contract with a current
 1719  PACE organization authorized to provide PACE services in
 1720  Southeast Florida to develop and operate a PACE program in
 1721  Broward County to serve frail elders who reside in Broward
 1722  County. The organization shall be exempt from chapter 641,
 1723  Florida Statutes. The agency, in consultation with the
 1724  Department of Elderly Affairs and subject to an appropriation,
 1725  shall approve up to 150 initial enrollee slots in the Broward
 1726  program established by the organization.
 1727         Section 20. Except as otherwise expressly provided in this
 1728  act and except for this section, which shall take effect upon
 1729  this act becoming a law, this act shall take effect July 1.
 1730  2012.