Florida Senate - 2017                   (PROPOSED BILL) SPB 2508
       
       
        
       FOR CONSIDERATION By the Committee on Appropriations
       
       
       
       
       
       576-02347B-17                                         20172508pb
    1                        A bill to be entitled                      
    2         An act relating to the Division of State Group
    3         Insurance; amending s. 110.12301, F.S.; removing a
    4         requirement that a contract for dependent eligibility
    5         verification services for the state group insurance
    6         program be contingency-based; requiring the division
    7         to notify subscribers of dependent eligibility rules
    8         by a certain date; requiring the division to hold a
    9         subscriber harmless for past claims of ineligible
   10         dependents for a specified timeframe; providing for
   11         applicability; removing a requirement that the
   12         Department of Management Services submit budget
   13         amendments pursuant to ch. 216, F.S., regarding vendor
   14         payments for dependent eligibility verification
   15         services; authorizing the contractor providing
   16         dependent eligibility verification services to request
   17         certain information from subscribers; requiring the
   18         division and the contractor to disclose to subscribers
   19         that dependent eligibility verification information
   20         may be subject to disclosure and inspection under
   21         public records requirements under certain
   22         circumstances; specifying requirements for marriage
   23         licenses or certificates or birth certificates
   24         submitted for dependent eligibility verification;
   25         requiring the contractor to retain documentation
   26         obtained for dependent eligibility verification
   27         services for a specified timeframe; requiring the
   28         department and the contractor to destroy such
   29         documentation after a specified date; amending s.
   30         110.12315, F.S.; providing that retail, mail order,
   31         and specialty pharmacies participating in the program
   32         shall be reimbursed as established by contract;
   33         revising supply limitations under the program;
   34         providing that the pharmacy dispensing fee be
   35         negotiated by the department; revising provisions
   36         governing the reimbursement schedule for prescription
   37         drugs and supplies dispensed under the program;
   38         requiring the department to maintain certain lists;
   39         establishing supply limitations for maintenance drugs
   40         and supplies; specifying pricing of certain copayments
   41         by health plan members; deleting a provision requiring
   42         the department to implement additional cost-saving
   43         measures and adjustments; revising copayment and
   44         coinsurance amounts for the State Group Health
   45         Insurance Standard Plan and the State Group Health
   46         Insurance High Deductible Plan; requiring the
   47         department to implement formulary management for
   48         prescription drugs and supplies by a specified date;
   49         requiring that certain prescription drugs and supplies
   50         remain available unless specifically excluded from the
   51         list of approved prescription drugs and supplies;
   52         providing that prescription drugs and supplies first
   53         made available after a specified date may not be
   54         covered by the prescription drug program unless
   55         otherwise approved; requiring the department to submit
   56         the list of excluded prescription drugs and supplies
   57         to the Executive Office of the Governor by a specified
   58         date; requiring the list of excluded prescription
   59         drugs and supplies approved by the Executive Office of
   60         the Governor to be submitted to the Legislature by a
   61         specified date; authorizing the department to
   62         implement the exclusions if no objection is submitted
   63         by the Legislature by a certain date; authorizing the
   64         department to propose additional exclusions from
   65         coverage, make modifications to the formulary, and
   66         move drugs and supplies between copayment tiers;
   67         prescribing procedures and requirements with respect
   68         to the proposal of additional exclusions or
   69         modifications; requiring the department to submit
   70         certain information regarding the initial formulary
   71         and any subsequent modifications to the Executive
   72         Office of the Governor and the Legislature; repealing
   73         s. 8 of chapter 99-255, Laws of Florida; repealing a
   74         provision prohibiting the department from implementing
   75         a prior authorization program or a restricted
   76         formulary program that meets certain criteria;
   77         providing an effective date.
   78          
   79  Be It Enacted by the Legislature of the State of Florida:
   80  
   81         Section 1. Section 110.12301, Florida Statutes, is amended
   82  to read:
   83         110.12301 Competitive procurement of postpayment claims
   84  review services.—The Division of State Group Insurance is
   85  directed to competitively procure:
   86         (1) Postpayment claims review services for the state group
   87  health insurance plans established pursuant to s. 110.123.
   88  Compensation under the contract shall be paid from amounts
   89  identified as claim overpayments that are made by or on behalf
   90  of the health plans and that are recovered by the vendor. The
   91  vendor may retain that portion of the amount recovered as
   92  provided in the contract. The contract must require the vendor
   93  to maintain all necessary documentation supporting the amounts
   94  recovered, retained, and remitted to the division; and
   95         (2) A contingency-based contract for dependent eligibility
   96  verification services for the state group insurance program;
   97  however, compensation under the contract may not exceed
   98  historical claim costs for the prior 12 months for the dependent
   99  populations disenrolled as a result of the contractor’s vendor’s
  100  services.
  101         (a)1. By September 1, 2017, the division shall notify all
  102  subscribers regarding the eligibility rules for dependents.
  103  Through November 30, 2017, the division must may establish a 3
  104  month grace period and hold subscribers harmless for past claims
  105  of ineligible dependents if such dependents are removed from
  106  plan membership before December 1, 2017.
  107         2. Subparagraph 1. does not apply to any dependent
  108  identified as ineligible before July 1, 2017, for which the
  109  department has notified the state agency employing the
  110  associated subscriber The Department of Management Services
  111  shall submit budget amendments pursuant to chapter 216 in order
  112  to obtain budget authority necessary to expend funds from the
  113  State Employees’ Group Health Self-Insurance Trust Fund for
  114  payments to the vendor as provided in the contract.
  115         (b) The contractor providing dependent eligibility
  116  verification services may request the following information from
  117  subscribers:
  118         1. To prove a spouse’s eligibility:
  119         a. If married less than 12 months and the subscriber and
  120  his or her spouse have not filed a joint federal income tax
  121  return, a government-issued marriage certificate; or
  122         b. If married for 12 or more months, a transcript of the
  123  most recently filed federal income tax return.
  124         2. To prove a biological child’s or a newborn grandchild’s
  125  eligibility, a government-issued birth certificate.
  126         3. To prove an adopted child’s eligibility:
  127         a. An adoption certificate; or
  128         b. An adoption placement agreement and a petition for
  129  adoption.
  130         4. To prove a stepchild’s eligibility:
  131         a. A government-issued birth certificate for the stepchild;
  132  and
  133         b. The transcript of the subscriber’s most recently filed
  134  federal income tax return.
  135         5. Any other information necessary to verify the
  136  dependent’s eligibility for enrollment in the state group
  137  insurance program.
  138         (c) If a document requested from a subscriber is not
  139  confidential or exempt from public records requirements, the
  140  division and the contractor shall disclose to all subscribers
  141  that such information submitted to verify the eligibility of
  142  dependents may be subject to disclosure and inspection under
  143  chapter 119.
  144         (d) A government-issued marriage license or marriage
  145  certificate submitted for dependent eligibility verification
  146  must include the date of the marriage between the subscriber and
  147  the spouse.
  148         (e) A government-issued birth certificate submitted for
  149  dependent eligibility verification must list the parents’ names.
  150         (f) All documentation obtained by the contractor to conduct
  151  the dependent eligibility verification services must be retained
  152  until June 30, 2019. The department or the contractor are not
  153  required to retain such documentation after June 30, 2019, and
  154  shall destroy such documentation as soon as practicable after
  155  such date.
  156         Section 2. Upon the expiration and reversion of the
  157  amendments made to section 110.12315, Florida Statutes, pursuant
  158  to section 123 of chapter 2016-62, Laws of Florida, section
  159  110.12315, Florida Statutes, is amended to read:
  160         110.12315 Prescription drug program.—The state employees’
  161  prescription drug program is established. This program shall be
  162  administered by the Department of Management Services, according
  163  to the terms and conditions of the plan as established by the
  164  relevant provisions of the annual General Appropriations Act and
  165  implementing legislation, subject to the following conditions:
  166         (1) The department shall allow prescriptions written by
  167  health care providers under the plan to be filled by any
  168  licensed pharmacy and reimbursed pursuant to subsection (2)
  169  contractual claims-processing provisions. Nothing in This
  170  section may not be construed as prohibiting a mail order
  171  prescription drug program distinct from the service provided by
  172  retail pharmacies.
  173         (2) In providing for reimbursement of pharmacies for
  174  prescription drugs and supplies medicines dispensed to members
  175  of the state group health insurance plan and their dependents
  176  under the state employees’ prescription drug program:
  177         (a) Retail, mail order, and specialty pharmacies
  178  participating in the program must be reimbursed as established
  179  by contract and at a uniform rate and subject to uniform
  180  conditions, according to the terms and conditions of the plan.
  181         (b) There is shall be a 30-day supply limit for retail
  182  pharmacy fills, a 90-day supply limit for mail order fills, and
  183  a 90-day supply limit for fills by retail pharmacies
  184  participating in a 90-day supply network prescription card
  185  purchases and 90-day supply limit for mail order or mail order
  186  prescription drug purchases. This paragraph may not be construed
  187  to prohibit fills at any amount less than the applicable supply
  188  limit.
  189         (c) The current pharmacy dispensing fee shall be negotiated
  190  by the department remains in effect.
  191         (d)(3) The department of Management Services shall
  192  establish the reimbursement schedule for prescription drugs and
  193  supplies pharmaceuticals dispensed under the program.
  194  Reimbursement rates for a prescription drug or supply
  195  pharmaceutical must be based on the cost of the generic
  196  equivalent drug or supply if a generic equivalent exists, unless
  197  the physician, advanced registered nurse practitioner, or
  198  physician assistant prescribing the drug or supply
  199  pharmaceutical clearly states on the prescription that the brand
  200  name drug or supply is medically necessary or that the drug or
  201  supply product is included on the formulary of drugs and
  202  supplies drug products that may not be interchanged as provided
  203  in chapter 465, in which case reimbursement must be based on the
  204  cost of the brand name drug or supply as specified in the
  205  reimbursement schedule adopted by the department of Management
  206  Services.
  207         (3) The department shall maintain the generic, preferred
  208  brand name, and the nonpreferred brand name lists of drugs and
  209  supplies to be used in the administration of the state
  210  employees’ prescription drug program.
  211         (4) The department shall maintain a list of maintenance
  212  drugs and supplies.
  213         (a) Preferred provider organization health plan members may
  214  have prescriptions for maintenance drugs and supplies filled up
  215  to 3 times as a supply for up to 30 days through a retail
  216  pharmacy; thereafter, prescriptions for the same maintenance
  217  drug or supply must be filled for up to 90 days either through
  218  the department’s contracted mail order pharmacy or through a
  219  retail pharmacy participating in a 90-day supply network.
  220         (b) Health maintenance organization health plan members may
  221  have prescriptions for maintenance drugs and supplies filled for
  222  up to 90 days either through a mail order pharmacy or through a
  223  retail pharmacy participating in a 90-day supply network.
  224         (5) Copayments made by health plan members for a supply for
  225  up to 90 days through a retail pharmacy participating in a 90
  226  day supply network shall be the same as copayments made for a
  227  similar supply through the department’s contracted mail order
  228  pharmacy.
  229         (6)(4) The department of Management Services shall conduct
  230  a prescription utilization review program. In order to
  231  participate in the state employees’ prescription drug program,
  232  retail pharmacies dispensing prescription drugs and supplies
  233  medicines to members of the state group health insurance plan or
  234  their covered dependents, or to subscribers or covered
  235  dependents of a health maintenance organization plan under the
  236  state group insurance program, shall make their records
  237  available for this review.
  238         (5) The Department of Management Services shall implement
  239  such additional cost-saving measures and adjustments as may be
  240  required to balance program funding within appropriations
  241  provided, including a trial or starter dose program and
  242  dispensing of long-term-maintenance medication in lieu of acute
  243  therapy medication.
  244         (7)(6) Participating pharmacies must use a point-of-sale
  245  device or an online computer system to verify a participant’s
  246  eligibility for coverage. The state is not liable for
  247  reimbursement of a participating pharmacy for dispensing
  248  prescription drugs and supplies to any person whose current
  249  eligibility for coverage has not been verified by the state’s
  250  contracted administrator or by the department of Management
  251  Services.
  252         (7) Under the state employees’ prescription drug program
  253  copayments must be made as follows:
  254         (8)(a) Effective July 1, 2017 January 1, 2006, for the
  255  State Group Health Insurance Standard Plan, copayments must be
  256  made as follows:
  257         1. For a supply for up to 30 days from a retail pharmacy:
  258         a. For generic drug with card.....................$7 $10.
  259         b.2. For preferred brand name drug with card.....$30 $25.
  260         c.3. For nonpreferred brand name drug with card..$50 $40.
  261         2. For a supply for up to 90 days from a mail order
  262  pharmacy or a retail pharmacy participating in a 90-day supply
  263  network:
  264         a.4. For generic mail order drug.................$14 $20.
  265         b.5. For preferred brand name mail order drug....$60 $50.
  266         c.6. For nonpreferred brand name mail order drug$100 $80.
  267         (b) Effective July 1, 2017 January 1, 2006, for the State
  268  Group Health Insurance High Deductible Plan, coinsurance must be
  269  paid as follows:
  270         1. For a supply for up to 30 days from a retail pharmacy:
  271         a.Retail coinsurance For generic drug with card.....30%.
  272         b.2.Retail coinsurance For preferred brand name drug with
  273  card........................................................30%.
  274         c.3.Retail coinsurance For nonpreferred brand name drug
  275  with card...................................................50%.
  276         2. For a supply for up to 90 days from a mail order
  277  pharmacy or a retail pharmacy participating in a 90-day supply
  278  network:
  279         a.4. Mail order coinsurance For generic drug.........30%.
  280         b.5. Mail order coinsurance For preferred brand name
  281  drug........................................................30%.
  282         c.6. Mail order coinsurance For nonpreferred brand name
  283  drug........................................................50%.
  284         (9)(a) Beginning January 1, 2018, the department shall
  285  implement formulary management for prescription drugs and
  286  supplies but may not restrict access to the most clinically
  287  appropriate, clinically effective, and lowest net cost
  288  prescription drugs and supplies. Prescription drugs and supplies
  289  available for coverage through the prescription drug program as
  290  of July 1, 2017, must remain available unless specifically
  291  excluded from coverage in accordance with the list developed
  292  pursuant to this subsection. Prescription drugs and supplies
  293  first made available after July 1, 2017, may not be covered by
  294  the prescription drug program unless specifically included in
  295  the list of approved prescription drugs and supplies.
  296         (b) The department must submit the list of excluded
  297  prescription drugs and supplies to the Executive Office of the
  298  Governor for review and approval by July 21, 2017. The approved
  299  formulary must be submitted to the Legislature for review by
  300  August 18, 2017. The implementation of the initial list of
  301  excluded prescription drugs and supplies shall be treated as an
  302  action subject to the notice, review, and objection procedures
  303  under s. 216.177. If no objection is submitted in writing by
  304  September 15, 2017, the department may implement the exclusions,
  305  as approved by the Executive Office of the Governor, beginning
  306  January 1, 2018.
  307         (c) The department may propose additional exclusions from
  308  coverage under the prescription drug program once each plan
  309  year, for implementation on January 1 of the next plan year or
  310  as otherwise directed by the Legislature. The department must
  311  submit its proposed exclusions to the Executive Office of the
  312  Governor for review and approval at least 30 days before the
  313  date the Governor’s recommended budget is required to be
  314  submitted to the Legislature. Any recommendations by the
  315  Governor to exclude drugs or supplies from coverage under the
  316  prescription drug program must be submitted to the Legislature
  317  with the Governor’s recommended budget.
  318         (d) The department may propose modifications to the
  319  formulary to include prescription drugs or supplies not covered
  320  under the program or to move the drugs or supplies between
  321  copayment tiers. Such modifications may be implemented on
  322  January 1, April 1, July 1, or October 1 of the plan year.
  323         (e) With each proposed change to the status of prescription
  324  drugs and supplies under the program, the department shall
  325  submit the following information to the Executive Office of the
  326  Governor and the Legislature:
  327         1. The drugs and supplies excluded or proposed for a change
  328  in copayment tier;
  329         2. The drugs that remain available under the program as a
  330  substitute for the excluded drug;
  331         3. The number of prescriptions written for the affected
  332  drug or supply during the prior plan year and the current plan
  333  year and the number of plan members affected by the change;
  334         4. The expected financial impact to the prescription drug
  335  program, including the impact by drug on plan payments and
  336  rebates to the plan; and
  337         5. The expected financial impact to the plan members,
  338  including the impact on member copayments and coinsurance, and
  339  the cost of the drug to the plan members if the drug is
  340  excluded.
  341         (c) The Department of Management Services shall create a
  342  preferred brand name drug list to be used in the administration
  343  of the state employees’ prescription drug program.
  344         Section 3. Section 8 of ch. 99-255, Laws of Florida, is
  345  repealed.
  346         Section 4. This act shall take effect July 1, 2017.