Florida Senate - 2017                                    SB 2514
       
       
        
       By the Committee on Appropriations
       
       
       
       
       
       576-03477-17                                          20172514__
    1                        A bill to be entitled                      
    2         An act relating to health care; amending s. 210.20,
    3         F.S.; providing that a specified percentage of the
    4         cigarette tax, up to a specified amount, be paid
    5         annually to the Florida Consortium of National Cancer
    6         Institute Centers Program, rather than the Sanford
    7         Burnham Medical Research Institute; requiring that the
    8         funds be used to advance cures for cancers afflicting
    9         pediatric populations through basic or applied
   10         research; amending s. 381.922, F.S.; revising the
   11         goals of the William G. “Bill” Bankhead, Jr., and
   12         David Coley Cancer Research Program to include
   13         identifying ways to increase pediatric enrollment in
   14         cancer clinical trials; establishing the Live Like
   15         Bella Initiative to advance progress toward curing
   16         pediatric cancer, subject to an appropriation;
   17         amending s. 394.9082, F.S.; creating the Substance
   18         Abuse and Mental Health (SAMH) Safety Net Network;
   19         providing legislative intent; requiring the Department
   20         of Children and Families and the Agency for Health
   21         Care Administration to determine the scope of services
   22         to be offered through providers contracted with the
   23         SAMH Safety Net Network; authorizing the SAMH Safety
   24         Net Network to provide Medicaid reimbursable services
   25         beyond the limits of the state Medicaid plan under
   26         certain circumstances; providing that general revenue
   27         matching funds for the services shall be derived from
   28         the existing unmatched general revenue funds within
   29         the substance abuse and mental health program and
   30         documented through general revenue expenditure
   31         submissions by the department; requiring the agency,
   32         in consultation with the department, to seek federal
   33         authorization for administrative claiming pursuant to
   34         a specified federal program to fund certain
   35         interventions, case managers, and facility services;
   36         requiring the department, in collaboration with the
   37         agency, to document local funding of behavioral health
   38         services; requiring the agency to seek certain federal
   39         matching funds; amending s. 395.602, F.S.; revising
   40         the definition of the term “rural hospital” to include
   41         a hospital classified as a sole community hospital,
   42         regardless of the number of licensed beds; amending s.
   43         409.904, F.S.; authorizing the agency to make payments
   44         for medical assistance and related services on behalf
   45         of a person diagnosed with acquired immune deficiency
   46         syndrome who meets certain criteria, subject to the
   47         availability of moneys and specified limitations;
   48         amending s. 409.908, F.S.; revising requirements
   49         related to the long-term care reimbursement plan and
   50         cost reporting system; requiring the calculation of
   51         separate prices for each patient care subcomponent
   52         based on specified cost reports; providing that
   53         certain ceilings and targets apply only to providers
   54         being reimbursed on a cost-based system; expanding the
   55         direct care subcomponent to include allowable therapy
   56         and dietary costs; specifying that allowable ancillary
   57         costs are included in the indirect care cost
   58         subcomponent; requiring the agency to establish, by a
   59         specified date, a technical advisory council to assist
   60         in ongoing development and refining of quality
   61         measures used in the nursing home prospective payment
   62         system; providing for membership; requiring that
   63         nursing home prospective payment rates be rebased at a
   64         specified interval; authorizing the payment of a
   65         direct care supplemental payment to certain providers;
   66         specifying the amount providers will be reimbursed for
   67         a specified period of time, which may be a cost-based
   68         rate or a prospective payment rate; providing for
   69         expiration of this reimbursement mechanism on a
   70         specified date; requiring the agency to reimburse
   71         providers on a cost-based rate or a rebased
   72         prospective payment rate, beginning on a specified
   73         date; requiring that Medicaid pay deductibles and
   74         coinsurance for certain X-ray services provided in an
   75         assisted living facility or in the patient’s home;
   76         amending s. 409.909, F.S.; providing that the agency
   77         shall make payments and distribute funds to qualifying
   78         institutions in addition to hospitals under the
   79         Statewide Medicaid Residency Program; amending s.
   80         409.9082; revising the uses of quality assessment and
   81         federal matching funds to include the partial funding
   82         of the quality incentive payment program for nursing
   83         facilities that exceed quality benchmarks; amending s.
   84         409.911, F.S.; updating obsolete language; amending s.
   85         409.9119, F.S.; revising criteria for the
   86         participation of hospitals in the disproportionate
   87         share program for specialty hospitals for children;
   88         amending s. 409.913, F.S.; removing a requirement that
   89         the agency provide each Medicaid recipient with an
   90         explanation of benefits; authorizing the agency to
   91         provide an explanation of benefits to a sample of
   92         Medicaid recipients or their representatives; amending
   93         s. 409.975, F.S.; authorizing, rather than requiring,
   94         a managed care plan to offer a network contract to
   95         certain medical equipment and supplies providers in
   96         the region; requiring the agency to contract with the
   97         SAMH Safety Net Network; specifying that the contract
   98         must require managing entities to provide specified
   99         services to certain individuals; requiring the agency
  100         to conduct a comprehensive readiness assessment before
  101         contracting with the SAMH Safety Net Network;
  102         requiring the agency and the department to develop
  103         performance measures for the SAMH Safety Net Network;
  104         requiring the agency and the department to develop
  105         performance measures to evaluate the SAMH Safety Net
  106         Network and its services; requiring the agency, in
  107         consultation with the department and managing
  108         entities, to determine the rates for services added to
  109         the state Medicaid plan; amending s. 409.979, F.S.;
  110         expanding eligibility for long-term care services to
  111         include hospital level of care for certain individuals
  112         diagnosed with cystic fibrosis; revising eligibility
  113         for certain Medicaid recipients in the long-term care
  114         managed care program; requiring the agency to contract
  115         with an additional, not-for-profit organization that
  116         meets certain conditions and offers specified services
  117         to frail elders who reside in Miami-Dade County,
  118         subject to federal approval; exempting the
  119         organization from ch. 641, F.S., relating to health
  120         care service programs; requiring the agency, in
  121         consultation with the Department of Elderly Affairs,
  122         to approve a certain number of initial enrollees in
  123         the Program of All-inclusive Care for the Elderly
  124         (PACE); requiring the agency to contract with a
  125         specified not-for-profit organization, a not-for
  126         profit agency serving elders, and a not-for-profit
  127         hospice in Leon County to be a site for PACE, subject
  128         to federal approval; authorizing PACE to serve
  129         eligible enrollees in Gadsden, Jefferson, Leon, and
  130         Wakulla Counties; requiring the agency, in
  131         consultation with the department, to approve a certain
  132         number of initial enrollees in PACE at the new site,
  133         subject to an appropriation; amending s. 17 of chapter
  134         2011-61, Laws of Florida; requiring the agency, in
  135         consultation with the department, to approve a certain
  136         number of initial enrollees in PACE to serve frail
  137         elders who reside in certain counties; amending s. 9
  138         of chapter 2016-65, Laws of Florida; revising an
  139         effective date; revising the date that rates for
  140         hospital outpatient services must take effect;
  141         amending s. 29 of chapter 2016-65, Laws of Florida;
  142         requiring the agency, in consultation with the
  143         department, to approve a certain number of enrollees
  144         in the PACE established to serve frail elders who
  145         reside in Hospice Service Area 7; requiring the agency
  146         to contract with a not-for-profit organization that
  147         meets certain criteria to offer specified services to
  148         frail elders who reside in Alachua County, subject to
  149         federal approval; exempting the organization from ch.
  150         641, F.S., relating to health care service programs;
  151         requiring the agency, in consultation with the
  152         department, to approve a certain number of initial
  153         enrollees in PACE at the new site, subject to certain
  154         conditions; requiring the agency to contract with an
  155         organization that meets certain criteria to offer
  156         specified services to frail elders who reside in
  157         certain counties, subject to federal approval;
  158         exempting the organization from ch. 641, F.S.,
  159         relating to health care service programs; requiring
  160         the agency, in consultation with the department, to
  161         approve a certain number of initial enrollees in PACE
  162         at the new site, subject to certain conditions;
  163         providing that the agency may seek any necessary
  164         waiver or state plan amendments to serve a certain
  165         purpose; providing effective dates.
  166          
  167  Be It Enacted by the Legislature of the State of Florida:
  168  
  169         Section 1. Paragraph (c) of subsection (2) of section
  170  210.20, Florida Statutes, is amended to read:
  171         210.20 Employees and assistants; distribution of funds.—
  172         (2) As collections are received by the division from such
  173  cigarette taxes, it shall pay the same into a trust fund in the
  174  State Treasury designated “Cigarette Tax Collection Trust Fund”
  175  which shall be paid and distributed as follows:
  176         (c) Beginning July 1, 2017 2013, and continuing through
  177  June 30, 2033, the division shall from month to month certify to
  178  the Chief Financial Officer the amount derived from the
  179  cigarette tax imposed by s. 210.02, less the service charges
  180  provided for in s. 215.20 and less 0.9 percent of the amount
  181  derived from the cigarette tax imposed by s. 210.02, which shall
  182  be deposited into the Alcoholic Beverage and Tobacco Trust Fund,
  183  specifying an amount equal to 1 percent of the net collections,
  184  not to exceed $3 million annually, and that amount shall be
  185  deposited into the Biomedical Research Trust Fund in the
  186  Department of Health. These funds are appropriated annually in
  187  an amount not to exceed $3 million from the Biomedical Research
  188  Trust Fund for the advancement of cures for cancers afflicting
  189  pediatric populations through basic or applied research,
  190  including, but not limited to, clinical trials and nontoxic drug
  191  discovery. These funds are not included in the calculation for
  192  the distribution of funds pursuant to s. 381.915; however, these
  193  funds shall be distributed to cancer centers participating in
  194  the Florida Consortium of National Cancer Institute Centers
  195  Program in the same proportion as is allocated to each cancer
  196  center in accordance with s. 381.915 and are in addition to any
  197  funds distributed pursuant to that section Department of Health
  198  and the Sanford-Burnham Medical Research Institute to work in
  199  conjunction for the purpose of establishing activities and grant
  200  opportunities in relation to biomedical research.
  201         Section 2. Subsection (2) of section 381.922, Florida
  202  Statutes, is amended to read:
  203         381.922 William G. “Bill” Bankhead, Jr., and David Coley
  204  Cancer Research Program.—
  205         (2) The program shall provide grants for cancer research to
  206  further the search for cures for cancer.
  207         (a) Emphasis shall be given to the following goals, as
  208  those goals support the advancement of such cures:
  209         1. Efforts to significantly expand cancer research capacity
  210  in the state by:
  211         a. Identifying ways to attract new research talent and
  212  attendant national grant-producing researchers to cancer
  213  research facilities in this state;
  214         b. Implementing a peer-reviewed, competitive process to
  215  identify and fund the best proposals to expand cancer research
  216  institutes in this state;
  217         c. Funding through available resources for those proposals
  218  that demonstrate the greatest opportunity to attract federal
  219  research grants and private financial support;
  220         d. Encouraging the employment of bioinformatics in order to
  221  create a cancer informatics infrastructure that enhances
  222  information and resource exchange and integration through
  223  researchers working in diverse disciplines, to facilitate the
  224  full spectrum of cancer investigations;
  225         e. Facilitating the technical coordination, business
  226  development, and support of intellectual property as it relates
  227  to the advancement of cancer research; and
  228         f. Aiding in other multidisciplinary research-support
  229  activities as they inure to the advancement of cancer research.
  230         2. Efforts to improve both research and treatment through
  231  greater participation in clinical trials networks by:
  232         a. Identifying ways to increase pediatric and adult
  233  enrollment in cancer clinical trials;
  234         b. Supporting public and private professional education
  235  programs designed to increase the awareness and knowledge about
  236  cancer clinical trials;
  237         c. Providing tools to cancer patients and community-based
  238  oncologists to aid in the identification of cancer clinical
  239  trials available in the state; and
  240         d. Creating opportunities for the state’s academic cancer
  241  centers to collaborate with community-based oncologists in
  242  cancer clinical trials networks.
  243         3. Efforts to reduce the impact of cancer on disparate
  244  groups by:
  245         a. Identifying those cancers that disproportionately impact
  246  certain demographic groups; and
  247         b. Building collaborations designed to reduce health
  248  disparities as they relate to cancer.
  249         (b) Preference may be given to grant proposals that foster
  250  collaborations among institutions, researchers, and community
  251  practitioners, as such proposals support the advancement of
  252  cures through basic or applied research, including clinical
  253  trials involving cancer patients and related networks.
  254         (c) There is established within the program the Live Like
  255  Bella Initiative. The purpose of the initiative is to advance
  256  progress toward curing pediatric cancer by awarding grants
  257  through the peer-reviewed, competitive process established under
  258  subsection (3). This paragraph is subject to the annual
  259  appropriation of funds by the Legislature.
  260         Section 3. Subsection (11) is added to section 394.9082,
  261  Florida Statutes, to read:
  262         394.9082 Behavioral health managing entities.—
  263         (11)SUBSTANCE ABUSE AND MENTAL HEALTH (SAMH) SAFETY NET
  264  NETWORK.—
  265         (a)It is the intent of the Legislature to create the
  266  Substance Abuse and Mental Health (SAMH) Safety Net Network to
  267  support and enhance the community mental health and substance
  268  abuse services currently provided by managing entities. The SAMH
  269  Safety Net Network as used in this section means the managing
  270  entities and their contracted network of providers. Contracted
  271  providers are considered vendors and not subrecipients, as
  272  defined in s. 215.97. Managing entities and their contracted
  273  providers are not public employees for purposes of chapter 112.
  274         (b) The department and the agency shall establish the SAMH
  275  Safety Net Network by adding specific behavioral health services
  276  currently provided by managing entities to the state Medicaid
  277  plan and adjusting the amount of units of services for specific
  278  Medicaid services to better serve Medicaid-eligible individuals
  279  with severe and persistent mental health or substance use
  280  disorders, and their families, who are currently served by
  281  managing entities. It is the intent of the Legislature to have
  282  the department submit documentation of general revenue
  283  expenditures to the agency for the state match for the services
  284  and for the agency to pay managing entities the federal Medicaid
  285  portion for services provided.
  286         1. Behavioral health services currently funded by managing
  287  entities through the substance abuse and mental health program
  288  shall be added by the agency to the state Medicaid plan through
  289  a state plan amendment. These services shall be provided
  290  exclusively through the providers contracted with the SAMH
  291  Safety Net Network. The department and the agency shall
  292  determine which services are essential for individuals served by
  293  managing entities through coordinated systems of care and which
  294  services will most efficiently use state and federal resources.
  295         2. The state Medicaid plan currently limits the amount of
  296  behavioral health services that may be provided to a covered
  297  individual. However, the SAMH Safety Net Network is authorized
  298  to provide Medicaid reimbursable services beyond these limits
  299  when providing services, including, but not limited to,
  300  assessment, group therapy, individual therapy, psychosocial
  301  rehabilitation, day treatment, medication management,
  302  therapeutic onsite services, substance abuse inpatient or
  303  residential detoxification, inpatient hospital services, and
  304  crisis stabilization unit or as appropriate in lieu of services.
  305         (c) The required general revenue matching funds for the
  306  services shall be derived from the existing unmatched general
  307  revenue funds within the substance abuse and mental health
  308  program and documented through general revenue expenditure
  309  submissions by the department. The Medicaid reimbursement for
  310  services provided by the SAMH Safety Net Network shall be
  311  limited to the availability of general revenue matching funds
  312  within the substance abuse and mental health program for such
  313  purpose.
  314         (d) Except as otherwise provided in this part, the state
  315  share of funds sufficient to implement the provisions of this
  316  act shall be redirected from existing general revenue funds in
  317  the department which are used for funding mental health and
  318  substance abuse services, excluding funding for residential
  319  services. The need for these state-only funds must be offset by
  320  the infusion of federal funds made available to the SAMH Safety
  321  Net Network under the provisions of this act.
  322         Section 4. The Agency for Health Care Administration, in
  323  consultation with the Department of Children and Families, shall
  324  seek federal authorization for administrative claiming pursuant
  325  to the Medicaid Administrative Claiming program to fund:
  326         (1)The department’s team-based interventions, including,
  327  but not limited to, community action treatment teams and family
  328  intervention treatment teams, which focus on the entire family
  329  to prevent out-of-home placements in the child welfare,
  330  behavioral health, and criminal justice systems.
  331         (2)Case managers employed by the department’s child
  332  welfare community-based care lead agency who are responsible for
  333  locating, coordinating, and monitoring necessary and appropriate
  334  services extending beyond direct services for Medicaid-eligible
  335  children, including, but not limited to, outreach, referral,
  336  eligibility determination, and case management.
  337         (3)Central receiving facility services for individuals
  338  with mental health or substance use disorders.
  339         Section 5. The Department of Children and Families, in
  340  collaboration with the Agency for Health Care Administration,
  341  shall document the extent to which behavioral health services
  342  are funded with contributions from units of local government.
  343  The agency shall seek federal authority to have these funds
  344  qualify for federal matching funds as certified public
  345  expenditures.
  346         Section 6. Paragraph (e) of subsection (2) of section
  347  395.602, Florida Statutes, is amended to read:
  348         395.602 Rural hospitals.—
  349         (2) DEFINITIONS.—As used in this part, the term:
  350         (e) “Rural hospital” means an acute care hospital licensed
  351  under this chapter, having 100 or fewer licensed beds and an
  352  emergency room, which is:
  353         1. The sole provider within a county with a population
  354  density of up to 100 persons per square mile;
  355         2. An acute care hospital, in a county with a population
  356  density of up to 100 persons per square mile, which is at least
  357  30 minutes of travel time, on normally traveled roads under
  358  normal traffic conditions, from any other acute care hospital
  359  within the same county;
  360         3. A hospital supported by a tax district or subdistrict
  361  whose boundaries encompass a population of up to 100 persons per
  362  square mile;
  363         4. A hospital classified as a sole community hospital under
  364  42 C.F.R. s. 412.92, regardless of the number of which has up to
  365  175 licensed beds;
  366         5. A hospital with a service area that has a population of
  367  up to 100 persons per square mile. As used in this subparagraph,
  368  the term “service area” means the fewest number of zip codes
  369  that account for 75 percent of the hospital’s discharges for the
  370  most recent 5-year period, based on information available from
  371  the hospital inpatient discharge database in the Florida Center
  372  for Health Information and Transparency at the agency; or
  373         6. A hospital designated as a critical access hospital, as
  374  defined in s. 408.07.
  375  
  376  Population densities used in this paragraph must be based upon
  377  the most recently completed United States census. A hospital
  378  that received funds under s. 409.9116 for a quarter beginning no
  379  later than July 1, 2002, is deemed to have been and shall
  380  continue to be a rural hospital from that date through June 30,
  381  2021, if the hospital continues to have up to 100 licensed beds
  382  and an emergency room. An acute care hospital that has not
  383  previously been designated as a rural hospital and that meets
  384  the criteria of this paragraph shall be granted such designation
  385  upon application, including supporting documentation, to the
  386  agency. A hospital that was licensed as a rural hospital during
  387  the 2010-2011 or 2011-2012 fiscal year shall continue to be a
  388  rural hospital from the date of designation through June 30,
  389  2021, if the hospital continues to have up to 100 licensed beds
  390  and an emergency room.
  391         Section 7. Subsection (11) is added to section 409.904,
  392  Florida Statutes, to read:
  393         409.904 Optional payments for eligible persons.—The agency
  394  may make payments for medical assistance and related services on
  395  behalf of the following persons who are determined to be
  396  eligible subject to the income, assets, and categorical
  397  eligibility tests set forth in federal and state law. Payment on
  398  behalf of these Medicaid eligible persons is subject to the
  399  availability of moneys and any limitations established by the
  400  General Appropriations Act or chapter 216.
  401         (11) Subject to federal waiver approval, a person diagnosed
  402  with acquired immune deficiency syndrome (AIDS) who has an AIDS
  403  related opportunistic infection and is at risk of
  404  hospitalization as determined by the agency and whose income is
  405  at or below 300 percent of the Federal Benefit Rate.
  406         Section 8. Subsections (2) and (14) of section 409.908,
  407  Florida Statutes, are amended to read:
  408         409.908 Reimbursement of Medicaid providers.—Subject to
  409  specific appropriations, the agency shall reimburse Medicaid
  410  providers, in accordance with state and federal law, according
  411  to methodologies set forth in the rules of the agency and in
  412  policy manuals and handbooks incorporated by reference therein.
  413  These methodologies may include fee schedules, reimbursement
  414  methods based on cost reporting, negotiated fees, competitive
  415  bidding pursuant to s. 287.057, and other mechanisms the agency
  416  considers efficient and effective for purchasing services or
  417  goods on behalf of recipients. If a provider is reimbursed based
  418  on cost reporting and submits a cost report late and that cost
  419  report would have been used to set a lower reimbursement rate
  420  for a rate semester, then the provider’s rate for that semester
  421  shall be retroactively calculated using the new cost report, and
  422  full payment at the recalculated rate shall be effected
  423  retroactively. Medicare-granted extensions for filing cost
  424  reports, if applicable, shall also apply to Medicaid cost
  425  reports. Payment for Medicaid compensable services made on
  426  behalf of Medicaid eligible persons is subject to the
  427  availability of moneys and any limitations or directions
  428  provided for in the General Appropriations Act or chapter 216.
  429  Further, nothing in this section shall be construed to prevent
  430  or limit the agency from adjusting fees, reimbursement rates,
  431  lengths of stay, number of visits, or number of services, or
  432  making any other adjustments necessary to comply with the
  433  availability of moneys and any limitations or directions
  434  provided for in the General Appropriations Act, provided the
  435  adjustment is consistent with legislative intent.
  436         (2)(a)1. Reimbursement to nursing homes licensed under part
  437  II of chapter 400 and state-owned-and-operated intermediate care
  438  facilities for the developmentally disabled licensed under part
  439  VIII of chapter 400 must be made prospectively.
  440         2. Unless otherwise limited or directed in the General
  441  Appropriations Act, reimbursement to hospitals licensed under
  442  part I of chapter 395 for the provision of swing-bed nursing
  443  home services must be made on the basis of the average statewide
  444  nursing home payment, and reimbursement to a hospital licensed
  445  under part I of chapter 395 for the provision of skilled nursing
  446  services must be made on the basis of the average nursing home
  447  payment for those services in the county in which the hospital
  448  is located. When a hospital is located in a county that does not
  449  have any community nursing homes, reimbursement shall be
  450  determined by averaging the nursing home payments in counties
  451  that surround the county in which the hospital is located.
  452  Reimbursement to hospitals, including Medicaid payment of
  453  Medicare copayments, for skilled nursing services shall be
  454  limited to 30 days, unless a prior authorization has been
  455  obtained from the agency. Medicaid reimbursement may be extended
  456  by the agency beyond 30 days, and approval must be based upon
  457  verification by the patient’s physician that the patient
  458  requires short-term rehabilitative and recuperative services
  459  only, in which case an extension of no more than 15 days may be
  460  approved. Reimbursement to a hospital licensed under part I of
  461  chapter 395 for the temporary provision of skilled nursing
  462  services to nursing home residents who have been displaced as
  463  the result of a natural disaster or other emergency may not
  464  exceed the average county nursing home payment for those
  465  services in the county in which the hospital is located and is
  466  limited to the period of time which the agency considers
  467  necessary for continued placement of the nursing home residents
  468  in the hospital.
  469         (b) Subject to any limitations or directions in the General
  470  Appropriations Act, the agency shall establish and implement a
  471  state Title XIX Long-Term Care Reimbursement Plan for nursing
  472  home care in order to provide care and services in conformance
  473  with the applicable state and federal laws, rules, regulations,
  474  and quality and safety standards and to ensure that individuals
  475  eligible for medical assistance have reasonable geographic
  476  access to such care.
  477         1. The agency shall amend the long-term care reimbursement
  478  plan and cost reporting system to create direct care and
  479  indirect care subcomponents of the patient care component of the
  480  per diem rate. These two subcomponents together shall equal the
  481  patient care component of the per diem rate. Separate prices
  482  cost-based ceilings shall be calculated for each patient care
  483  subcomponent, initially based on the September 2016 rate setting
  484  cost reports and subsequently based on the most recently audited
  485  cost report used during a rebasing year. The direct care
  486  subcomponent of the per diem rate for any providers still being
  487  reimbursed on a cost basis shall be limited by the cost-based
  488  class ceiling, and the indirect care subcomponent may be limited
  489  by the lower of the cost-based class ceiling, the target rate
  490  class ceiling, or the individual provider target. The ceilings
  491  and targets apply only to providers being reimbursed on a cost
  492  based system.
  493         2. The direct care subcomponent shall include salaries and
  494  benefits of direct care staff providing nursing services
  495  including registered nurses, licensed practical nurses, and
  496  certified nursing assistants who deliver care directly to
  497  residents in the nursing home facility, allowable therapy costs,
  498  and dietary costs. This excludes nursing administration, staff
  499  development, the staffing coordinator, and the administrative
  500  portion of the minimum data set and care plan coordinators. The
  501  direct care subcomponent also includes medically necessary
  502  dental care, vision care, hearing care, and podiatric care.
  503         3. All other patient care costs shall be included in the
  504  indirect care cost subcomponent of the patient care per diem
  505  rate, including complex medical equipment, medical supplies, and
  506  other allowable ancillary costs. Costs may not be allocated
  507  directly or indirectly to the direct care subcomponent from a
  508  home office or management company.
  509         4. On July 1 of each year, the agency shall report to the
  510  Legislature direct and indirect care costs, including average
  511  direct and indirect care costs per resident per facility and
  512  direct care and indirect care salaries and benefits per category
  513  of staff member per facility.
  514         5. Before December 31, 2017, the agency must establish a
  515  technical advisory council to assist in ongoing development and
  516  refining of the quality measures used in the nursing home
  517  prospective payment system. The advisory council must include,
  518  but need not be limited to, representatives of nursing home
  519  providers and other interested stakeholders. In order to offset
  520  the cost of general and professional liability insurance, the
  521  agency shall amend the plan to allow for interim rate
  522  adjustments to reflect increases in the cost of general or
  523  professional liability insurance for nursing homes. This
  524  provision shall be implemented to the extent existing
  525  appropriations are available.
  526         6. Every fourth year, the agency shall rebase nursing home
  527  prospective payment rates to reflect changes in cost based on
  528  the most recently audited cost report for each participating
  529  provider.
  530         7. A direct care supplemental payment may be made to
  531  providers whose direct care hours per patient day are above the
  532  80th percentile and who provide Medicaid services to a larger
  533  percentage of Medicaid patients than the state average.
  534         8. For the period beginning on October 1, 2017, and ending
  535  on September 30, 2020, the agency shall reimburse providers the
  536  greater of their September 2016 cost-based rate or their
  537  prospective payment rate. Effective October 1, 2020, the agency
  538  shall reimburse providers the greater of 95 percent of their
  539  cost-based rate or their rebased prospective payment rate, using
  540  the most recently audited cost report for each facility. This
  541  subsection shall expire September 30, 2022.
  542         9. Pediatric, Florida Department of Veterans Affairs, and
  543  government-owned facilities are exempt from the pricing model
  544  established in this subsection and shall remain on a cost-based
  545  prospective payment system. Effective October 1, 2018, the
  546  agency shall set rates for all facilities remaining on a cost
  547  based prospective payment system using each facility’s most
  548  recently audited cost report, eliminating retroactive
  549  settlements.
  550  
  551  It is the intent of the Legislature that the reimbursement plan
  552  achieve the goal of providing access to health care for nursing
  553  home residents who require large amounts of care while
  554  encouraging diversion services as an alternative to nursing home
  555  care for residents who can be served within the community. The
  556  agency shall base the establishment of any maximum rate of
  557  payment, whether overall or component, on the available moneys
  558  as provided for in the General Appropriations Act. The agency
  559  may base the maximum rate of payment on the results of
  560  scientifically valid analysis and conclusions derived from
  561  objective statistical data pertinent to the particular maximum
  562  rate of payment.
  563         (14) Medicare premiums for persons eligible for both
  564  Medicare and Medicaid coverage shall be paid at the rates
  565  established by Title XVIII of the Social Security Act. For
  566  Medicare services rendered to Medicaid-eligible persons,
  567  Medicaid shall pay Medicare deductibles and coinsurance as
  568  follows:
  569         (a) Medicaid’s financial obligation for deductibles and
  570  coinsurance payments shall be based on Medicare allowable fees,
  571  not on a provider’s billed charges.
  572         (b) Medicaid will pay no portion of Medicare deductibles
  573  and coinsurance when payment that Medicare has made for the
  574  service equals or exceeds what Medicaid would have paid if it
  575  had been the sole payor. The combined payment of Medicare and
  576  Medicaid shall not exceed the amount Medicaid would have paid
  577  had it been the sole payor. The Legislature finds that there has
  578  been confusion regarding the reimbursement for services rendered
  579  to dually eligible Medicare beneficiaries. Accordingly, the
  580  Legislature clarifies that it has always been the intent of the
  581  Legislature before and after 1991 that, in reimbursing in
  582  accordance with fees established by Title XVIII for premiums,
  583  deductibles, and coinsurance for Medicare services rendered by
  584  physicians to Medicaid eligible persons, physicians be
  585  reimbursed at the lesser of the amount billed by the physician
  586  or the Medicaid maximum allowable fee established by the Agency
  587  for Health Care Administration, as is permitted by federal law.
  588  It has never been the intent of the Legislature with regard to
  589  such services rendered by physicians that Medicaid be required
  590  to provide any payment for deductibles, coinsurance, or
  591  copayments for Medicare cost sharing, or any expenses incurred
  592  relating thereto, in excess of the payment amount provided for
  593  under the State Medicaid plan for such service. This payment
  594  methodology is applicable even in those situations in which the
  595  payment for Medicare cost sharing for a qualified Medicare
  596  beneficiary with respect to an item or service is reduced or
  597  eliminated. This expression of the Legislature is in
  598  clarification of existing law and shall apply to payment for,
  599  and with respect to provider agreements with respect to, items
  600  or services furnished on or after the effective date of this
  601  act. This paragraph applies to payment by Medicaid for items and
  602  services furnished before the effective date of this act if such
  603  payment is the subject of a lawsuit that is based on the
  604  provisions of this section, and that is pending as of, or is
  605  initiated after, the effective date of this act.
  606         (c) Notwithstanding paragraphs (a) and (b):
  607         1. Medicaid payments for Nursing Home Medicare part A
  608  coinsurance are limited to the Medicaid nursing home per diem
  609  rate less any amounts paid by Medicare, but only up to the
  610  amount of Medicare coinsurance. The Medicaid per diem rate shall
  611  be the rate in effect for the dates of service of the crossover
  612  claims and may not be subsequently adjusted due to subsequent
  613  per diem rate adjustments.
  614         2. Medicaid shall pay all deductibles and coinsurance for
  615  Medicare-eligible recipients receiving freestanding end stage
  616  renal dialysis center services.
  617         3. Medicaid payments for general and specialty hospital
  618  inpatient services are limited to the Medicare deductible and
  619  coinsurance per spell of illness. Medicaid payments for hospital
  620  Medicare Part A coinsurance shall be limited to the Medicaid
  621  hospital per diem rate less any amounts paid by Medicare, but
  622  only up to the amount of Medicare coinsurance. Medicaid payments
  623  for coinsurance shall be limited to the Medicaid per diem rate
  624  in effect for the dates of service of the crossover claims and
  625  may not be subsequently adjusted due to subsequent per diem
  626  adjustments.
  627         4. Medicaid shall pay all deductibles and coinsurance for
  628  Medicare emergency transportation services provided by
  629  ambulances licensed pursuant to chapter 401.
  630         5. Medicaid shall pay all deductibles and coinsurance for
  631  portable X-ray Medicare Part B services provided in a nursing
  632  home, in an assisted living facility, or in the patient’s home.
  633         Section 9. Subsection (4) of section 409.9082, Florida
  634  Statutes, is amended to read:
  635         409.9082 Quality assessment on nursing home facility
  636  providers; exemptions; purpose; federal approval required;
  637  remedies.—
  638         (4) The purpose of the nursing home facility quality
  639  assessment is to ensure continued quality of care. Collected
  640  assessment funds shall be used to obtain federal financial
  641  participation through the Medicaid program to make Medicaid
  642  payments for nursing home facility services up to the amount of
  643  nursing home facility Medicaid rates as calculated in accordance
  644  with the approved state Medicaid plan in effect on December 31,
  645  2007. The quality assessment and federal matching funds shall be
  646  used exclusively for the following purposes and in the following
  647  order of priority:
  648         (a) To reimburse the Medicaid share of the quality
  649  assessment as a pass-through, Medicaid-allowable cost;
  650         (b) To increase to each nursing home facility’s Medicaid
  651  rate, as needed, an amount that restores rate reductions
  652  effective on or after January 1, 2008, as provided in the
  653  General Appropriations Act; and
  654         (c) To partially fund the quality incentive payment program
  655  for nursing facilities that exceed quality benchmarks increase
  656  each nursing home facility’s Medicaid rate that accounts for the
  657  portion of the total assessment not included in paragraphs (a)
  658  and (b) which begins a phase-in to a pricing model for the
  659  operating cost component.
  660         Section 10. Section 409.909, Florida Statutes, is amended
  661  to read:
  662         409.909 Statewide Medicaid Residency Program.—
  663         (1) The Statewide Medicaid Residency Program is established
  664  to improve the quality of care and access to care for Medicaid
  665  recipients, expand graduate medical education on an equitable
  666  basis, and increase the supply of highly trained physicians
  667  statewide. The agency shall make payments to hospitals licensed
  668  under part I of chapter 395 and to qualifying institutions as
  669  defined in paragraph (2)(c) for graduate medical education
  670  associated with the Medicaid program. This system of payments is
  671  designed to generate federal matching funds under Medicaid and
  672  distribute the resulting funds to participating hospitals on a
  673  quarterly basis in each fiscal year for which an appropriation
  674  is made.
  675         (2) On or before September 15 of each year, the agency
  676  shall calculate an allocation fraction to be used for
  677  distributing funds to participating hospitals and to qualifying
  678  institutions as defined in paragraph (2)(c). On or before the
  679  final business day of each quarter of a state fiscal year, the
  680  agency shall distribute to each participating hospital one
  681  fourth of that hospital’s annual allocation calculated under
  682  subsection (4). The allocation fraction for each participating
  683  hospital is based on the hospital’s number of full-time
  684  equivalent residents and the amount of its Medicaid payments. As
  685  used in this section, the term:
  686         (a) “Full-time equivalent,” or “FTE,” means a resident who
  687  is in his or her residency period, with the initial residency
  688  period defined as the minimum number of years of training
  689  required before the resident may become eligible for board
  690  certification by the American Osteopathic Association Bureau of
  691  Osteopathic Specialists or the American Board of Medical
  692  Specialties in the specialty in which he or she first began
  693  training, not to exceed 5 years. The residency specialty is
  694  defined as reported using the current residency type codes in
  695  the Intern and Resident Information System (IRIS), required by
  696  Medicare. A resident training beyond the initial residency
  697  period is counted as 0.5 FTE, unless his or her chosen specialty
  698  is in primary care, in which case the resident is counted as 1.0
  699  FTE. For the purposes of this section, primary care specialties
  700  include:
  701         1. Family medicine;
  702         2. General internal medicine;
  703         3. General pediatrics;
  704         4. Preventive medicine;
  705         5. Geriatric medicine;
  706         6. Osteopathic general practice;
  707         7. Obstetrics and gynecology;
  708         8. Emergency medicine;
  709         9. General surgery; and
  710         10. Psychiatry.
  711         (b) “Medicaid payments” means the estimated total payments
  712  for reimbursing a hospital for direct inpatient services for the
  713  fiscal year in which the allocation fraction is calculated based
  714  on the hospital inpatient appropriation and the parameters for
  715  the inpatient diagnosis-related group base rate, including
  716  applicable intergovernmental transfers, specified in the General
  717  Appropriations Act, as determined by the agency. Effective July
  718  1, 2017, the term “Medicaid payments” means the estimated total
  719  payments for reimbursing a hospital and qualifying institutions
  720  as defined in paragraph (2)(c) for direct inpatient and
  721  outpatient services for the fiscal year in which the allocation
  722  fraction is calculated based on the hospital inpatient
  723  appropriation and outpatient appropriation and the parameters
  724  for the inpatient diagnosis-related group base rate, including
  725  applicable intergovernmental transfers, specified in the General
  726  Appropriations Act, as determined by the agency.
  727         (c) “Qualifying institution” means a federally Qualified
  728  Health Center holding an Accreditation Council for Graduate
  729  Medical Education institutional accreditation.
  730         (d) “Resident” means a medical intern, fellow, or resident
  731  enrolled in a program accredited by the Accreditation Council
  732  for Graduate Medical Education, the American Association of
  733  Colleges of Osteopathic Medicine, or the American Osteopathic
  734  Association at the beginning of the state fiscal year during
  735  which the allocation fraction is calculated, as reported by the
  736  hospital to the agency.
  737         (3) The agency shall use the following formula to calculate
  738  a participating hospital’s and qualifying institution’s
  739  allocation fraction:
  740  
  741             HAF=[0.9 x (HFTE/TFTE)] + [0.1 x (HMP/TMP)]           
  742  
  743         Where:
  744         HAF=A hospital’s and qualifying institution’s allocation
  745  fraction.
  746         HFTE=A hospital’s and qualifying institution’s total number
  747  of FTE residents.
  748         TFTE=The total FTE residents for all participating
  749  hospitals and qualifying institutions.
  750         HMP=A hospital’s and qualifying institution’s Medicaid
  751  payments.
  752         TMP=The total Medicaid payments for all participating
  753  hospitals and qualifying institutions.
  754  
  755         (4) A hospital’s and qualifying institution’s annual
  756  allocation shall be calculated by multiplying the funds
  757  appropriated for the Statewide Medicaid Residency Program in the
  758  General Appropriations Act by that hospital’s and qualifying
  759  institution’s allocation fraction. If the calculation results in
  760  an annual allocation that exceeds two times the average per FTE
  761  resident amount for all hospitals and qualifying institutions,
  762  the hospital’s and qualifying institution’s annual allocation
  763  shall be reduced to a sum equaling no more than two times the
  764  average per FTE resident. The funds calculated for that hospital
  765  and qualifying institution in excess of two times the average
  766  per FTE resident amount for all hospitals and qualifying
  767  institutions shall be redistributed to participating hospitals
  768  and qualifying institutions whose annual allocation does not
  769  exceed two times the average per FTE resident amount for all
  770  hospitals and qualifying institutions, using the same
  771  methodology and payment schedule specified in this section.
  772         (5) The Graduate Medical Education Startup Bonus Program is
  773  established to provide resources for the education and training
  774  of physicians in specialties which are in a statewide supply
  775  and-demand deficit. Hospitals and qualifying institutions as
  776  defined in paragraph (2)(c) eligible for participation in
  777  subsection (1) are eligible to participate in the Graduate
  778  Medical Education Startup Bonus Program established under this
  779  subsection. Notwithstanding subsection (4) or an FTE’s residency
  780  period, and in any state fiscal year in which funds are
  781  appropriated for the startup bonus program, the agency shall
  782  allocate a $100,000 startup bonus for each newly created
  783  resident position that is authorized by the Accreditation
  784  Council for Graduate Medical Education or Osteopathic
  785  Postdoctoral Training Institution in an initial or established
  786  accredited training program that is in a physician specialty in
  787  statewide supply-and-demand deficit. In any year in which
  788  funding is not sufficient to provide $100,000 for each newly
  789  created resident position, funding shall be reduced pro rata
  790  across all newly created resident positions in physician
  791  specialties in statewide supply-and-demand deficit.
  792         (a) Hospitals and qualifying institutions as defined in
  793  paragraph (2)(c) applying for a startup bonus must submit to the
  794  agency by March 1 their Accreditation Council for Graduate
  795  Medical Education or Osteopathic Postdoctoral Training
  796  Institution approval validating the new resident positions
  797  approved on or after March 2 of the prior fiscal year through
  798  March 1 of the current fiscal year for the physician specialties
  799  identified in a statewide supply-and-demand deficit as provided
  800  in the current fiscal year’s General Appropriations Act. An
  801  applicant hospital or qualifying institution as defined in
  802  paragraph (2)(c) may validate a change in the number of
  803  residents by comparing the number in the prior period
  804  Accreditation Council for Graduate Medical Education or
  805  Osteopathic Postdoctoral Training Institution approval to the
  806  number in the current year.
  807         (b) Any unobligated startup bonus funds on April 15 of each
  808  fiscal year shall be proportionally allocated to hospitals and
  809  to qualifying institutions as defined in paragraph (2)(c)
  810  participating under subsection (3) for existing FTE residents in
  811  the physician specialties in statewide supply-and-demand
  812  deficit. This nonrecurring allocation shall be in addition to
  813  the funds allocated in subsection (4). Notwithstanding
  814  subsection (4), the allocation under this subsection may not
  815  exceed $100,000 per FTE resident.
  816         (c) For purposes of this subsection, physician specialties
  817  and subspecialties, both adult and pediatric, in statewide
  818  supply-and-demand deficit are those identified in the General
  819  Appropriations Act.
  820         (d) The agency shall distribute all funds authorized under
  821  the Graduate Medical Education Startup Bonus Program on or
  822  before the final business day of the fourth quarter of a state
  823  fiscal year.
  824         (6) Beginning in the 2015-2016 state fiscal year, the
  825  agency shall reconcile each participating hospital’s total
  826  number of FTE residents calculated for the state fiscal year 2
  827  years before with its most recently available Medicare cost
  828  reports covering the same time period. Reconciled FTE counts
  829  shall be prorated according to the portion of the state fiscal
  830  year covered by a Medicare cost report. Using the same
  831  definitions, methodology, and payment schedule specified in this
  832  section, the reconciliation shall apply any differences in
  833  annual allocations calculated under subsection (4) to the
  834  current year’s annual allocations.
  835         (7) The agency may adopt rules to administer this section.
  836         Section 11. Paragraph (a) of subsection (2) of section
  837  409.911, Florida Statutes, is amended, and paragraph (b) of that
  838  subsection is republished, to read:
  839         409.911 Disproportionate share program.—Subject to specific
  840  allocations established within the General Appropriations Act
  841  and any limitations established pursuant to chapter 216, the
  842  agency shall distribute, pursuant to this section, moneys to
  843  hospitals providing a disproportionate share of Medicaid or
  844  charity care services by making quarterly Medicaid payments as
  845  required. Notwithstanding the provisions of s. 409.915, counties
  846  are exempt from contributing toward the cost of this special
  847  reimbursement for hospitals serving a disproportionate share of
  848  low-income patients.
  849         (2) The Agency for Health Care Administration shall use the
  850  following actual audited data to determine the Medicaid days and
  851  charity care to be used in calculating the disproportionate
  852  share payment:
  853         (a) The average of the 2009, 2010, and 2011 2007, 2008, and
  854  2009 audited disproportionate share data to determine each
  855  hospital’s Medicaid days and charity care for the 2017-2018
  856  2015-2016 state fiscal year.
  857         (b) If the Agency for Health Care Administration does not
  858  have the prescribed 3 years of audited disproportionate share
  859  data as noted in paragraph (a) for a hospital, the agency shall
  860  use the average of the years of the audited disproportionate
  861  share data as noted in paragraph (a) which is available.
  862         Section 12. Section 409.9119, Florida Statutes, is amended
  863  to read:
  864         409.9119 Disproportionate share program for specialty
  865  hospitals for children.—In addition to the payments made under
  866  s. 409.911, the Agency for Health Care Administration shall
  867  develop and implement a system under which disproportionate
  868  share payments are made to those hospitals that are separately
  869  licensed by the state as specialty hospitals for children, have
  870  a federal Centers for Medicare and Medicaid Services
  871  certification number in the 3300-3399 range, have Medicaid days
  872  that exceed 55 percent of their total days and Medicare days
  873  that are less than 5 percent of their total days, and were
  874  licensed on January 1, 2012 January 1, 2000, as specialty
  875  hospitals for children. This system of payments must conform to
  876  federal requirements and must distribute funds in each fiscal
  877  year for which an appropriation is made by making quarterly
  878  Medicaid payments. Notwithstanding s. 409.915, counties are
  879  exempt from contributing toward the cost of this special
  880  reimbursement for hospitals that serve a disproportionate share
  881  of low-income patients. The agency may make disproportionate
  882  share payments to specialty hospitals for children as provided
  883  for in the General Appropriations Act.
  884         (1) Unless specified in the General Appropriations Act, the
  885  agency shall use the following formula to calculate the total
  886  amount earned for hospitals that participate in the specialty
  887  hospital for children disproportionate share program:
  888  
  889                        TAE = DSR x BMPD x MD                      
  890  
  891  Where:
  892         TAE = total amount earned by a specialty hospital for
  893  children.
  894         DSR = disproportionate share rate.
  895         BMPD = base Medicaid per diem.
  896         MD = Medicaid days.
  897  
  898         (2) The agency shall calculate the total additional payment
  899  for hospitals that participate in the specialty hospital for
  900  children disproportionate share program as follows:
  901  
  902                       TAP = (TAE x TA) ÷ STAE                     
  903  
  904  Where:
  905         TAP = total additional payment for a specialty hospital for
  906  children.
  907         TAE = total amount earned by a specialty hospital for
  908  children.
  909         TA = total appropriation for the specialty hospital for
  910  children disproportionate share program.
  911         STAE = sum of total amount earned by each hospital that
  912  participates in the specialty hospital for children
  913  disproportionate share program.
  914  
  915         (3) A hospital may not receive any payments under this
  916  section until it achieves full compliance with the applicable
  917  rules of the agency. A hospital that is not in compliance for
  918  two or more consecutive quarters may not receive its share of
  919  the funds. Any forfeited funds must be distributed to the
  920  remaining participating specialty hospitals for children that
  921  are in compliance.
  922         (4) Notwithstanding any provision of this section to the
  923  contrary, for the 2017-2018 2016-2017 state fiscal year, for
  924  hospitals achieving full compliance under subsection (3), the
  925  agency shall make disproportionate share payments to specialty
  926  hospitals for children as provided in the 2017-2018 2016-2017
  927  General Appropriations Act. This subsection expires July 1, 2018
  928  2017.
  929         Section 13. Subsection (36) of section 409.913, Florida
  930  Statutes, is amended to read:
  931         409.913 Oversight of the integrity of the Medicaid
  932  program.—The agency shall operate a program to oversee the
  933  activities of Florida Medicaid recipients, and providers and
  934  their representatives, to ensure that fraudulent and abusive
  935  behavior and neglect of recipients occur to the minimum extent
  936  possible, and to recover overpayments and impose sanctions as
  937  appropriate. Beginning January 1, 2003, and each year
  938  thereafter, the agency and the Medicaid Fraud Control Unit of
  939  the Department of Legal Affairs shall submit a joint report to
  940  the Legislature documenting the effectiveness of the state’s
  941  efforts to control Medicaid fraud and abuse and to recover
  942  Medicaid overpayments during the previous fiscal year. The
  943  report must describe the number of cases opened and investigated
  944  each year; the sources of the cases opened; the disposition of
  945  the cases closed each year; the amount of overpayments alleged
  946  in preliminary and final audit letters; the number and amount of
  947  fines or penalties imposed; any reductions in overpayment
  948  amounts negotiated in settlement agreements or by other means;
  949  the amount of final agency determinations of overpayments; the
  950  amount deducted from federal claiming as a result of
  951  overpayments; the amount of overpayments recovered each year;
  952  the amount of cost of investigation recovered each year; the
  953  average length of time to collect from the time the case was
  954  opened until the overpayment is paid in full; the amount
  955  determined as uncollectible and the portion of the uncollectible
  956  amount subsequently reclaimed from the Federal Government; the
  957  number of providers, by type, that are terminated from
  958  participation in the Medicaid program as a result of fraud and
  959  abuse; and all costs associated with discovering and prosecuting
  960  cases of Medicaid overpayments and making recoveries in such
  961  cases. The report must also document actions taken to prevent
  962  overpayments and the number of providers prevented from
  963  enrolling in or reenrolling in the Medicaid program as a result
  964  of documented Medicaid fraud and abuse and must include policy
  965  recommendations necessary to prevent or recover overpayments and
  966  changes necessary to prevent and detect Medicaid fraud. All
  967  policy recommendations in the report must include a detailed
  968  fiscal analysis, including, but not limited to, implementation
  969  costs, estimated savings to the Medicaid program, and the return
  970  on investment. The agency must submit the policy recommendations
  971  and fiscal analyses in the report to the appropriate estimating
  972  conference, pursuant to s. 216.137, by February 15 of each year.
  973  The agency and the Medicaid Fraud Control Unit of the Department
  974  of Legal Affairs each must include detailed unit-specific
  975  performance standards, benchmarks, and metrics in the report,
  976  including projected cost savings to the state Medicaid program
  977  during the following fiscal year.
  978         (36) At least three times a year, The agency may shall
  979  provide to a sample of each Medicaid recipients recipient or
  980  their representatives through the distribution of explanations
  981  his or her representative an explanation of benefits information
  982  about services reimbursed by the Medicaid program for goods and
  983  services to such recipients, including in the form of a letter
  984  that is mailed to the most recent address of the recipient on
  985  the record with the Department of Children and Families. The
  986  explanation of benefits must include the patient’s name, the
  987  name of the health care provider and the address of the location
  988  where the service was provided, a description of all services
  989  billed to Medicaid in terminology that should be understood by a
  990  reasonable person, and information on how to report
  991  inappropriate or incorrect billing to the agency or other law
  992  enforcement entities for review or investigation. At least once
  993  a year, the letter also must include information on how to
  994  report criminal Medicaid fraud to, the Medicaid Fraud Control
  995  Unit’s toll-free hotline number, and information about the
  996  rewards available under s. 409.9203. The explanation of benefits
  997  may not be mailed for Medicaid independent laboratory services
  998  as described in s. 409.905(7) or for Medicaid certified match
  999  services as described in ss. 409.9071 and 1011.70.
 1000         Section 14. Paragraph (e) of subsection (1) of section
 1001  409.975, Florida Statutes, is amended, and subsection (7) is
 1002  added to that section, to read:
 1003         409.975 Managed care plan accountability.—In addition to
 1004  the requirements of s. 409.967, plans and providers
 1005  participating in the managed medical assistance program shall
 1006  comply with the requirements of this section.
 1007         (1) PROVIDER NETWORKS.—Managed care plans must develop and
 1008  maintain provider networks that meet the medical needs of their
 1009  enrollees in accordance with standards established pursuant to
 1010  s. 409.967(2)(c). Except as provided in this section, managed
 1011  care plans may limit the providers in their networks based on
 1012  credentials, quality indicators, and price.
 1013         (e) Each managed care plan may must offer a network
 1014  contract to each home medical equipment and supplies provider in
 1015  the region which meets quality and fraud prevention and
 1016  detection standards established by the plan and which agrees to
 1017  accept the lowest price previously negotiated between the plan
 1018  and another such provider.
 1019         (7) SUBSTANCE ABUSE AND MENTAL HEALTH (SAMH) SAFETY NET
 1020  NETWORK.—
 1021         (a) The agency shall contract with the Substance Abuse and
 1022  Mental Health (SAMH) Safety Net Network, established under s.
 1023  394.9082(11), to plan, coordinate, and contract for delivering
 1024  certain community mental health and substance abuse services,
 1025  thereby improving access to behavioral health care, promoting
 1026  the continuity of such services, and supporting efficient and
 1027  effective delivery of such services under this section. The
 1028  contract must require managing entities to provide specified
 1029  services to Medicaid-eligible individuals with specified
 1030  behaviors, diagnoses, or addictions.
 1031         (b) Before contracting, the agency must conduct a
 1032  comprehensive readiness assessment to ensure that the SAMH
 1033  Safety Net Network has the necessary infrastructure, financial
 1034  resources, and relevant experience to implement the contract.
 1035  The agency and the department shall develop performance measures
 1036  to evaluate the impact of the SAMH Safety Net Network and to
 1037  determine the adequacy, timeliness, and quality of the services
 1038  provided for specified target populations and the efficiency of
 1039  the services in addressing mental health and substance use
 1040  disorders within a community.
 1041         (c) The agency, in consultation with the department and
 1042  managing entities, shall determine the rates for services added
 1043  to the state Medicaid plan. The rates shall be developed based
 1044  on the full cost of the services and reasonable administrative
 1045  costs for providers and managing entities.
 1046         Section 15. Subsection (1) and (2) of section 409.979,
 1047  Florida Statutes, are amended to read:
 1048         409.979 Eligibility.—
 1049         (1) PREREQUISITE CRITERIA FOR ELIGIBILITY.—Medicaid
 1050  recipients who meet all of the following criteria are eligible
 1051  to receive long-term care services and must receive long-term
 1052  care services by participating in the long-term care managed
 1053  care program. The recipient must be:
 1054         (a) Sixty-five years of age or older, or age 18 or older
 1055  and eligible for Medicaid by reason of a disability.
 1056         (b) Determined by the Comprehensive Assessment Review and
 1057  Evaluation for Long-Term Care Services (CARES) preadmission
 1058  screening program to require:
 1059         1. Nursing facility care as defined in s. 409.985(3); or
 1060         2. Hospital level of care for individuals diagnosed with
 1061  cystic fibrosis.
 1062         (2) ENROLLMENT OFFERS.—Subject to the availability of
 1063  funds, the Department of Elderly Affairs shall make offers for
 1064  enrollment to eligible individuals based on a wait-list
 1065  prioritization. Before making enrollment offers, the agency and
 1066  the Department of Elderly Affairs shall determine that
 1067  sufficient funds exist to support additional enrollment into
 1068  plans.
 1069         (a) A Medicaid recipient enrolled in one of the following
 1070  Medicaid home and community-based services waiver programs who
 1071  meets the eligibility criteria established in subsection (1) is
 1072  eligible to participate in the long-term care managed care
 1073  program and must be transitioned into the long-term care managed
 1074  care program by January 1, 2018:
 1075         1. Traumatic Brain and Spinal Cord Injury Waiver.
 1076         2. Adult Cystic Fibrosis Waiver.
 1077         3. Project AIDS Care Waiver.
 1078         (b) The agency shall seek federal approval to terminate the
 1079  Traumatic Brain and Spinal Cord Injury Waiver, the Adult Cystic
 1080  Fibrosis Waiver, and the Project AIDS Care Waiver once all
 1081  eligible Medicaid recipients have transitioned into the long
 1082  term care managed care program.
 1083         Section 16. Subject to federal approval of the application
 1084  to be a site for the Program of All-inclusive Care for the
 1085  Elderly (PACE), the Agency for Health Care Administration shall
 1086  contract with an additional not-for-profit organization to serve
 1087  individuals and families in Miami-Dade County. The not-for
 1088  profit organization must have a history of serving primarily the
 1089  Hispanic population by providing primary care services,
 1090  nutrition, meals, and adult day care to senior citizens. The
 1091  not-for-profit organization shall leverage existing community
 1092  based care providers and health care organizations to provide
 1093  PACE services to frail elders who reside in Miami-Dade County.
 1094  The organization is exempt from the requirements of chapter 641,
 1095  Florida Statutes. The agency, in consultation with the
 1096  Department of Elderly Affairs and subject to an appropriation,
 1097  shall approve up to 250 initial enrollees in the additional PACE
 1098  site established by this organization to serve frail elders who
 1099  reside in Miami-Dade County.
 1100         Section 17. Notwithstanding section 27 of chapter 2016-65,
 1101  Laws of Florida, and subject to federal approval of the
 1102  application to be a site for the Program of All-inclusive Care
 1103  for the Elderly (PACE), the Agency for Health Care
 1104  Administration shall contract with a not-for-profit
 1105  organization, formed by a partnership with a not-for-profit
 1106  hospital, a not-for-profit agency serving elders, and a not-for
 1107  profit hospice in Leon County. The not-for-profit PACE shall
 1108  serve eligible PACE enrollees in Gadsden, Jefferson, Leon, and
 1109  Wakulla Counties. The Agency for Health Care Administration, in
 1110  consultation with the Department of Elderly Affairs and subject
 1111  to an appropriation, shall approve up to 300 initial enrollees
 1112  for the additional PACE site.
 1113         Section 18. Section 17 of chapter 2011-61, Laws of Florida,
 1114  is amended to read:
 1115         Section 17. Notwithstanding s. 430.707, Florida Statutes,
 1116  and subject to federal approval of the application to be a site
 1117  for the Program of All-inclusive Care for the Elderly, the
 1118  Agency for Health Care Administration shall contract with one
 1119  private health care organization, the sole member of which is a
 1120  private, not-for-profit corporation that owns and manages health
 1121  care organizations which provide comprehensive long-term care
 1122  services, including nursing home, assisted living, independent
 1123  housing, home care, adult day care, and care management, with a
 1124  board-certified, trained geriatrician as the medical director.
 1125  This organization shall provide these services to frail and
 1126  elderly persons who reside in Indian River, Martin, Okeechobee,
 1127  Palm Beach, and St. Lucie Counties County. The organization is
 1128  exempt from the requirements of chapter 641, Florida Statutes.
 1129  The agency, in consultation with the Department of Elderly
 1130  Affairs and subject to an appropriation, shall approve up to 150
 1131  initial enrollees who reside in Palm Beach County and up to 150
 1132  initial enrollees who reside in Martin County in the Program of
 1133  All-inclusive Care for the Elderly established by this
 1134  organization to serve elderly persons who reside in Palm Beach
 1135  County.
 1136         Section 19. Effective June 30, 2017, section 9 of chapter
 1137  2016-65, Laws of Florida, is amended to read:
 1138         Section 9. Effective July 1, 2018 2017, paragraph (b) of
 1139  subsection (6) of section 409.905, Florida Statutes, is amended
 1140  to read:
 1141         409.905 Mandatory Medicaid services.—The agency may make
 1142  payments for the following services, which are required of the
 1143  state by Title XIX of the Social Security Act, furnished by
 1144  Medicaid providers to recipients who are determined to be
 1145  eligible on the dates on which the services were provided. Any
 1146  service under this section shall be provided only when medically
 1147  necessary and in accordance with state and federal law.
 1148  Mandatory services rendered by providers in mobile units to
 1149  Medicaid recipients may be restricted by the agency. Nothing in
 1150  this section shall be construed to prevent or limit the agency
 1151  from adjusting fees, reimbursement rates, lengths of stay,
 1152  number of visits, number of services, or any other adjustments
 1153  necessary to comply with the availability of moneys and any
 1154  limitations or directions provided for in the General
 1155  Appropriations Act or chapter 216.
 1156         (6) HOSPITAL OUTPATIENT SERVICES.—
 1157         (b) The agency shall implement a prospective payment
 1158  methodology for establishing reimbursement rates for outpatient
 1159  hospital services. Rates shall be calculated annually and take
 1160  effect July 1, 2018 2017, and July 1 of each year thereafter.
 1161  The methodology shall categorize the amount and type of services
 1162  used in various ambulatory visits which group together
 1163  procedures and medical visits that share similar characteristics
 1164  and resource utilization.
 1165         1. Adjustments may not be made to the rates after July 31
 1166  of the state fiscal year in which the rates take effect.
 1167         2. Errors in source data or calculations discovered after
 1168  July 31 of each state fiscal year must be reconciled in a
 1169  subsequent rate period. However, the agency may not make any
 1170  adjustment to a hospital’s reimbursement more than 5 years after
 1171  a hospital is notified of an audited rate established by the
 1172  agency. The prohibition against adjustments more than 5 years
 1173  after notification is remedial and applies to actions by
 1174  providers involving Medicaid claims for hospital services.
 1175  Hospital reimbursement is subject to such limits or ceilings as
 1176  may be established in law or described in the agency’s hospital
 1177  reimbursement plan. Specific exemptions to the limits or
 1178  ceilings may be provided in the General Appropriations Act.
 1179         Section 20. Section 29 of chapter 2016-65, Laws of Florida,
 1180  is amended to read:
 1181         Section 29. Subject to federal approval of the application
 1182  to be a site for the Program of All-inclusive Care for the
 1183  Elderly (PACE), the Agency for Health Care Administration shall
 1184  contract with one private, not-for-profit hospice organization
 1185  located in Lake County which operates health care organizations
 1186  licensed in Hospice Areas 7B and 3E and which provides
 1187  comprehensive services, including hospice and palliative care,
 1188  to frail elders who reside in these service areas. The
 1189  organization is exempt from the requirements of chapter 641,
 1190  Florida Statutes. The agency, in consultation with the
 1191  Department of Elderly Affairs and subject to the appropriation
 1192  of funds by the Legislature, shall approve up to 150 initial
 1193  enrollees in the Program of All-inclusive Care for the Elderly
 1194  established by the organization to serve frail elders who reside
 1195  in Hospice Service Areas 7B and 3E. The agency, in consultation
 1196  with the department and subject to an appropriation, shall
 1197  approve up to 150 enrollees in the Program of All-inclusive Care
 1198  for the Elderly established by this organization to serve frail
 1199  elders who reside in Hospice Service Area 7C.
 1200         Section 21. Subject to federal approval of the application
 1201  to be a site for the Program of All-inclusive Care for the
 1202  Elderly (PACE), the Agency for Health Care Administration shall
 1203  contract with one not-for-profit organization that satisfies
 1204  each of the following conditions:
 1205         (1) The organization is exempt from federal income taxation
 1206  as an entity described in s. 501(c)(3) of the Internal Revenue
 1207  Code of 1986, as amended;
 1208         (2) The organization is licensed pursuant to part IV of
 1209  chapter 400, Florida Statutes, to provide hospice services in
 1210  the Agency for Health Care Administration Areas 3 and 4 and
 1211  operates inpatient hospice care centers in each of the following
 1212  counties within those regions: Alachua, Citrus, Clay, Columbia,
 1213  and Putnam;
 1214         (3) The organization has more than 30 years of experience
 1215  as a licensed hospice provider in this state; and
 1216         (4) The organization is affiliated, through common
 1217  ownership or control, with other not-for-profit organizations
 1218  licensed by the agency to provide home health services, to
 1219  operate a nursing home, and to operate an assisted living
 1220  facility.
 1221  
 1222  The approved not-for-profit organization shall provide PACE
 1223  services to frail and elderly persons who reside in Alachua
 1224  County. The organization is exempt from the requirements of
 1225  chapter 641, Florida Statutes. The agency, in consultation with
 1226  the Department of Elder Affairs and subject to an appropriation,
 1227  shall approve up to 150 initial enrollees in the PACE site
 1228  established by this organization to serve frail and elderly
 1229  persons who reside in Alachua County.
 1230         Section 22. Subject to federal approval of the application
 1231  to be a site for the Program of All-inclusive Care for the
 1232  Elderly (PACE), the Agency for Health Care Administration shall
 1233  contract with an organization located in Miami-Dade County that
 1234  owns and operates primary care medical centers in South Florida.
 1235  The organization shall leverage its existing community-based
 1236  care providers to provide PACE services to frail elders who
 1237  reside in Broward, Miami-Dade, and Palm Beach Counties. The
 1238  organization is exempt from the requirements of chapter 641,
 1239  Florida Statutes. The agency, in consultation with the
 1240  Department of Elderly Affairs and subject to an appropriation of
 1241  funds by the Legislature, shall approve up to 300 initial
 1242  enrollees in the PACE site established by the organization for
 1243  frail elders who reside in Broward, Miami-Dade, and Palm Beach
 1244  Counties. The agency may seek any necessary waiver or state plan
 1245  amendments to implement this section.
 1246         Section 23. Except as otherwise expressly provided in this
 1247  act and except for this section, which shall take effect upon
 1248  becoming a law, this act shall take effect July 1, 2017.