Senate Bill 1228

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    Florida Senate - 1998                                  SB 1228

    By Senators Brown-Waite, Myers, Bankhead, Burt and Silver





    10-899A-98

  1                      A bill to be entitled

  2         An act relating to children's health care;

  3         amending s. 409.904, F.S.; providing for

  4         children under specified ages who are not

  5         otherwise eligible for the Medicaid program to

  6         be eligible for optional payments for medical

  7         assistance; amending s. 409.9126, F.S.; making

  8         the Children's Medical Services network

  9         available to certain children who are eligible

10         for the Florida Kids Health program; revising

11         provisions to reflect the transfer of duties to

12         the Department of Health; creating s. 409.810,

13         F.S.; providing a short title; creating s.

14         409.811, F.S.; providing definitions; creating

15         s. 409.812, F.S.; creating and providing the

16         purpose for the Florida Kids Health program;

17         creating s. 409.813, F.S.; specifying program

18         components; specifying that certain program

19         components are not an entitlement; creating s.

20         409.8135, F.S.; providing for program

21         enrollment and expenditure ceilings; creating

22         s. 409.814, F.S.; providing eligibility

23         requirements; creating s. 409.815, F.S.;

24         establishing requirements for health benefits

25         coverage under the Florida Kids Health program;

26         creating s. 409.816, F.S.; providing for

27         limitations on premiums and cost-sharing;

28         creating s. 409.817, F.S.; providing for

29         approval of health benefits coverage as a

30         condition of financial assistance; creating s.

31         409.818, F.S.; providing for program

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  1         administration; specifying duties of the

  2         Department of Children and Family Services, the

  3         Department of Health, the Agency for Health

  4         Care Administration, the Department of

  5         Insurance, and the Florida Healthy Kids

  6         Corporation; authorizing application for

  7         federal waiver for alternative coverage;

  8         transferring, renumbering, and amending s.

  9         154.508, F.S., relating to outreach activities

10         to identify low-income, uninsured children;

11         creating s. 409.820, F.S.; requiring that the

12         Department of Health develop standards for

13         quality assurance and program access;

14         establishing performance measures and standards

15         for the Florida Kids Health program; providing

16         an appropriation; providing for application of

17         the act to certain contracts between providers

18         and the Florida Healthy Kids Corporation;

19         providing an effective date.

20

21  Be It Enacted by the Legislature of the State of Florida:

22

23         Section 1.  Section 409.904, Florida Statutes, is

24  amended to read:

25         409.904  Optional payments for eligible persons.--The

26  agency may make payments for medical assistance and related

27  services on behalf of the following persons who are determined

28  to be eligible subject to the income, assets, and categorical

29  eligibility tests set forth in federal and state law.  Payment

30  on behalf of these Medicaid eligible persons is subject to the

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  1  availability of moneys and any limitations established by the

  2  General Appropriations Act or chapter 216.

  3         (1)  A person who is age 65 or older or is determined

  4  to be disabled, whose income is at or below 100 percent of

  5  federal poverty level, and whose assets do not exceed

  6  established limitations.

  7         (2)  A family, a pregnant woman, a child under age 18,

  8  a person age 65 or over, or a blind or disabled person who

  9  would be eligible under any group listed in s. 409.903(1),

10  (2), or (3), except that the income or assets of such family

11  or person exceed established limitations. For a family or

12  person in this group, medical expenses are deductible from

13  income in accordance with federal requirements in order to

14  make a determination of eligibility.  A family or person in

15  this group, which group is known as the "medically needy," is

16  eligible to receive the same services as other Medicaid

17  recipients, with the exception of services in skilled nursing

18  facilities and intermediate care facilities for the

19  developmentally disabled.

20         (3)  A person who is in need of the services of a

21  licensed nursing facility, a licensed intermediate care

22  facility for the developmentally disabled, or a state mental

23  hospital, whose income does not exceed 300 percent of the SSI

24  income standard, and who meets the assets standards

25  established under federal and state law.

26         (4)  A low-income person who meets all other

27  requirements for Medicaid eligibility except citizenship and

28  who is in need of emergency medical services.  The eligibility

29  of such a recipient is limited to the period of the emergency,

30  in accordance with federal regulations.

31

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  1         (5)  Subject to specific federal authorization, a

  2  postpartum woman living in a family that has an income that is

  3  at or below 185 percent of the most current federal poverty

  4  level is eligible for family planning services as specified in

  5  s. 409.905(3) for a period of up to 24 months following a

  6  pregnancy for which Medicaid paid for pregnancy-related

  7  services.

  8         (6)  A child under 1 year of age who lives in a family

  9  whose income is above 185 percent of the most current federal

10  poverty level but equal to or below 200 percent of the most

11  current federal poverty level. In determining the eligibility

12  of such a child, an assets test is not required.

13         (7)  A child under 19 years of age who is not eligible

14  for coverage under subsection (6) or under s. 409.903(5), (6),

15  or (7) and who lives in a family whose income is at or below

16  100 percent of the most current federal poverty level. In

17  determining the eligibility of such a child, an assets test is

18  not required.

19         Section 2.  Subsections (2), (3), and (10) of section

20  409.9126, Florida Statutes, are amended to read:

21         409.9126  Children with special health care needs.--

22         (2)  The Legislature finds that Medicaid-eligible

23  children with special health care needs require a

24  comprehensive, continuous, and coordinated system of health

25  care that links community-based health care with

26  multidisciplinary, regional, and tertiary care.  The

27  Legislature finds that Florida's Children's Medical Services

28  program provides a full continuum of coordinated,

29  comprehensive services for children with special health care

30  needs.

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  1         (3)  Except as provided in subsections (8) and (9),

  2  children eligible for Children's Medical Services who receive

  3  Medicaid benefits, and other Medicaid-eligible children with

  4  special health care needs, shall be exempt from the provisions

  5  of s. 409.9122 and shall be served through the Children's

  6  Medical Services network. The Children's Medical Services

  7  network shall also be available to children with special

  8  health care needs who are eligible for health benefits

  9  coverage other that Medicaid through the Florida Kids Health

10  program.

11         (10)  The agency, in consultation with the Department

12  of Health and Rehabilitative Services, shall adopt rules that

13  address Medicaid requirements for referral, enrollment, and

14  disenrollment of children with special health care needs who

15  are enrolled in Medicaid managed care plans and who may

16  benefit from the Children's Medical Services network.

17         Section 3.  Section 409.810, Florida Statutes, is

18  created to read:

19         409.810  Short title.--Sections 409.810-409.820 may be

20  cited as the "Florida Kids Health Act."

21         Section 4.  Section 409.811, Florida Statutes, is

22  created to read:

23         409.811  Definitions.--As used in ss. 409.810-409.820,

24  the term:

25         (1)  "Agency" means the Agency for Health Care

26  Administration.

27         (2)  "Alternative coverage" means health benefits

28  coverage provided through a community-based health-delivery

29  system authorized under s. 2105 of Title XXI of the Social

30  Security Act, subject to federal approval of a waiver request.

31  Such health-delivery system may include:

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  1         (a)  A network of health care providers owned,

  2  operated, or under contract with a county, political

  3  subdivision, or tax district;

  4         (b)  A rural health network established under s.

  5  381.0406;

  6         (c)  A federally qualified health center that receives

  7  funds under s. 330 of the Public Health Service Act;

  8         (d)  A migrant health center that receives funds under

  9  s. 329 of the Public Health Service Act;

10         (e)  The Children's Medical Services network

11  established in s. 409.9126; or

12         (f)  A hospital that receives Medicaid disproportionate

13  share payments under s. 409.911.

14         (3)  "Applicant" means a parent or guardian of a child

15  or a child whose disability of nonage has been removed under

16  chapter 743 who applies for determination of eligibility for

17  health benefits coverage under ss. 409.810-409.820.

18         (4)  "Benchmark benefit plan" means the form and level

19  of health benefits coverage established in s. 409.815.

20         (5)  "Benchmark premium" means the premium ceiling

21  price for which federal and state assistance payments are

22  available.

23         (6)  "Child" means any person under 19 years of age.

24         (7)  "Child with special health care needs" means a

25  child whose serious or chronic physical or developmental

26  condition requires extensive preventive and maintenance care

27  beyond that required by typically healthy children. Health

28  care utilization by such a child exceeds the statistically

29  expected usage of the normal child matched for chronological

30  age and such child often needs complex care requiring multiple

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  1  providers, rehabilitation services, and specialized equipment

  2  in a number of different settings.

  3         (8)  "Community rate" means a method used to develop

  4  premiums for a health insurance plan that spreads financial

  5  risk across a large population.

  6         (9)  "Enrollee" means a child who has been determined

  7  eligible for and is receiving coverage under ss.

  8  409.810-409.820.

  9         (10)  "Enrollment ceiling" means the maximum number of

10  children, excluding children enrolled in Medicaid, that may be

11  enrolled at any time in the Florida Kids Health program. The

12  maximum number shall be established annually in the General

13  Appropriations Act or by general law.

14         (11)  "Family" means the group or the individuals whose

15  income is considered in determining eligibility for the

16  Florida Kids Health program. The family includes a child,

17  custodial parent, or caretaker relative who resides in the

18  same house or living unit or, in the case of a child whose

19  disability of nonage has been removed under chapter 473, the

20  child. The family may also include individuals whose income

21  and resources are considered in whole or in part in

22  determining eligibility of the child.

23         (12)  "Family income" means cash received at periodic

24  intervals from any source, such as wages, benefits,

25  contributions, or rental property. Income also may include any

26  money that would have been counted as income under the AFDC

27  state plan in effect prior to August 22, 1996.

28         (13)  "Guarantee issue" means the health benefits

29  coverage that must be offered to an individual regardless of

30  the individual's health status, preexisting condition, or

31  claims history.

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  1         (14)  "Health benefits coverage" means protection that

  2  provides payment of benefits for covered health care services

  3  or that otherwise provides, either directly or through

  4  arrangements with other persons, covered health care services

  5  on a prepaid per capita basis or on a prepaid aggregate

  6  fixed-sum basis.

  7         (15)  "Health insurance plan" means health benefits

  8  coverage under the following:

  9         (a)  A health plan offered by any certified health

10  maintenance organization or authorized health insurer, except

11  a plan that is limited to the following: a limited benefit,

12  specified disease, or specified accident; hospital indemnity;

13  accident only; limited benefit convalescent care; Medicare

14  supplement; credit disability; dental; vision; long-term care;

15  disability income; coverage issued as a supplement to another

16  health plan; workers' compensation liability or other

17  insurance; or motor vehicle medical payment only; or

18         (b)  An employee welfare benefit plan that includes

19  health benefits established under the Employee Retirement

20  Income Security Act of 1974, as amended.

21         (16)  "Medicaid" means the medical assistance program

22  authorized by Title XIX of the Social Security Act, and

23  regulations thereunder, and ss. 409.901-409.9205, as

24  administered in this state by the agency.

25         (17)  "Medically necessary" means the use of any

26  medical treatment, service, equipment, or supply necessary to

27  palliate the effects of a terminal condition, or to prevent,

28  diagnose, correct, cure, alleviate, or preclude deterioration

29  of a condition that threatens life, causes pain or suffering,

30  or results in illness or infirmity and which is:

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  1         (a)  Consistent with the symptom, diagnosis, and

  2  treatment of the enrollee's condition;

  3         (b)  Provided in accordance with generally accepted

  4  standards of medical practice;

  5         (c)  Not primarily intended for the convenience of the

  6  enrollee, the enrollee's family, or the health care provider;

  7         (d)  The most appropriate level of supply or service

  8  for the diagnosis and treatment of the enrollee's condition;

  9  and

10         (e)  Approved by the appropriate medical body or health

11  care specialty involved as effective, appropriate, and

12  essential for the care and treatment of the enrollee's

13  condition.

14         (18)  "Preexisting condition exclusion" means, with

15  respect to coverage, a limitation or exclusion of benefits

16  relating to a condition based on the fact that the condition

17  was present before the date of enrollment for such coverage,

18  whether or not any medical advice, diagnosis, care, or

19  treatment was recommended or received before such date.

20         (19)  "Premium" means the entire cost of an insurance

21  plan, including the administration fee or the risk assumption

22  charge.

23         (20)  "Premium assistance payment" means the monthly

24  consideration paid by the agency per enrollee in the Florida

25  Kids Health program towards health insurance premiums.

26         (21)  "Program" means the Florida Kids Health program,

27  the medical assistance program authorized by Title XXI of the

28  Social Security Act as part of the federal Balanced Budget Act

29  of 1997.

30

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  1         (22)  "Qualified alien" means an alien as defined in s.

  2  431 of the Personal Responsibility and Work Opportunity

  3  Reconciliation Act of 1996, as amended, Pub. L. No. 104-193.

  4         (23)  "Resident" means a United States citizen, or

  5  qualified alien, who is domiciled in this state.

  6         Section 5.  Section 409.812, Florida Statutes, is

  7  created to read:

  8         409.812  Program created; purpose.--The Florida Kids

  9  Health program is created to provide a defined set of health

10  benefits to previously uninsured, low-income children through

11  the establishment of a variety of affordable health benefits

12  coverage options from which families may select coverage and

13  through which families may contribute financially to the

14  health care of their children.

15         Section 6.  Section 409.813, Florida Statutes, is

16  created to read:

17         409.813  Program components; entitlement and

18  nonentitlement.--The Florida Kids Health program includes

19  health benefits coverage provided to children through:

20         (1)  Medicaid;

21         (2)  The Florida Healthy Kids Corporation program as

22  created in s. 624.91;

23         (3)  Health insurance plans approved under ss.

24  409.810-409.820; and

25         (4)  Alternative coverage approved under ss.

26  409.810-409.820.

27

28  Except for coverage under the Medicaid program, coverage under

29  the Florida Kids Health program is not an entitlement.

30         Section 7.  Section 409.8135, Florida Statutes, is

31  created to read:

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  1         409.8135  Program enrollment and expenditure

  2  ceilings.--

  3         (1)  Except for the Medicaid program, a ceiling shall

  4  be placed on annual federal and state expenditures and on

  5  enrollment in the Florida Kids Health program as provided each

  6  year in the General Appropriations Act. The agency, in

  7  consultation with the Department of Health, may propose to

  8  increase the enrollment ceiling in accordance with chapter

  9  216.

10         (2)  Except for the Medicaid program, whenever the

11  Social Services Estimating Conference determines that there is

12  presently, or will be by the end of the current fiscal year,

13  insufficient funds to finance the current or projected

14  enrollment in the program, all additional enrollment must

15  cease and additional enrollment may not resume until

16  sufficient funds are available to finance such enrollment.

17         (3)  The agency shall collect and analyze the data

18  needed to project program enrollment, including participation

19  rates, caseloads, and expenditures. The agency shall report

20  the caseload and expenditure trends to the Social Services

21  Estimating Conference in accordance with chapter 216.

22         Section 8.  Section 409.814, Florida Statutes, is

23  created to read:

24         409.814  Eligibility.--A child whose family income is

25  equal to or below 200 percent of the federal poverty level is

26  eligible for the Florida Kids Health program as provided in

27  this section. In determining the eligibility of such a child,

28  an assets test is not required.

29         (1)  A child who is eligible for Medicaid coverage

30  under s. 409.903 or s. 409.904 must be enrolled in Medicaid

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  1  and is not eligible to receive health benefits under any other

  2  health benefits coverage authorized under ss. 409.810-409.820.

  3         (2)  A child who is not eligible for Medicaid, but who

  4  is eligible for the program, may obtain coverage under any of

  5  the other types of health benefits coverage authorized in ss.

  6  409.810-409.820 if such coverage is approved and available in

  7  the county in which the child resides.

  8         (3)  A child who is eligible for the program under

  9  subsection (1) or (2) and who is a child with special health

10  care needs, as determined through a risk-screening instrument,

11  is eligible for health benefits coverage from and may be

12  referred to the Children's Medical Services network.

13  Eligibility for coverage under the Children's Medical Services

14  network for a child who is eligible for the program under

15  subsection (2) is subject to federal approval of the network

16  as alternative coverage.

17         (4)  The following children are not eligible to receive

18  health benefits coverage under ss. 409.810-409.820, except

19  under Medicaid if the child would have been eligible for

20  Medicaid under s. 409.903 or s. 409.904 as of June 1, 1997:

21         (a)  A child who is eligible for coverage under a state

22  health benefits plan on the basis of a family member's

23  employment with a public agency in the state;

24         (b)  A child who is covered under a group health

25  benefit plan or under other health insurance coverage,

26  excluding coverage provided under the Florida Healthy Kids

27  Corporation as established under s. 624.91;

28         (c)  A child who is an alien, but who does not meet the

29  definition of qualified alien, in the United States; or

30         (d)  A child who is an inmate of a public institution

31  or a patient in an institution for mental diseases.

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  1         (5)  A child whose family income is above 200 percent

  2  of the federal poverty level may participate in the program;

  3  however, the family is not eligible for premium assistance

  4  payments and must pay the full cost of the premium. Children

  5  described in this subsection may not be counted in the annual

  6  enrollment ceiling for the Florida Kids Health program.

  7         (6)  Once a child is determined eligible for the

  8  program, the child is eligible for coverage under the program

  9  for 6 months without a redetermination or reverification of

10  eligibility if the family continues to pay the applicable

11  premium.

12         Section 9.  Section 409.815, Florida Statutes, is

13  created to read:

14         409.815  Health benefits coverage; limitations.--

15         (1)  MEDICAID BENEFITS.--For purposes of this program,

16  benefits available under the Medicaid program include those

17  goods and services provided under the medical assistance

18  program authorized by Title XIX of the Social Security Act,

19  and regulations thereunder, as administered in this state by

20  the agency. This includes those mandatory Medicaid services

21  authorized under s. 409.905 and optional Medicaid services

22  authorized under s. 409.906, rendered on behalf of eligible

23  individuals by qualified providers, in accordance with federal

24  requirements for Title XIX, subject to any limitations or

25  directions provided for in the General Appropriations Act or

26  chapter 216, and according to methodologies and limitations

27  set forth in agency rules and policy manuals and handbooks

28  incorporated by reference thereto.

29         (2)  BENCHMARK BENEFITS.--In order for health benefits

30  coverage to qualify for premium assistance payments for an

31  eligible child under ss. 409.810-409.820, the health benefits

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  1  coverage, except for coverage under the Medicaid program, must

  2  include the following minimum benefits as medically necessary.

  3         (a)  Preventive health services.--Covered services

  4  include:

  5         1.  Well-child care, including services recommended in

  6  the Guidelines for Health Supervision of Children and Youth as

  7  developed by the American Academy of Pediatrics;

  8         2.  Immunizations and injections;

  9         3.  Health education counseling and clinical services;

10         4.  Vision screening; and

11         5.  Hearing screening.

12         (b)  Inpatient hospital services.--All covered services

13  provided for the medical care and treatment of an enrollee who

14  is admitted as an inpatient to a hospital licensed under part

15  I of chapter 395, with the following exceptions:

16         1.  All admissions must be authorized by the enrollee's

17  health benefits coverage provider.

18         2.  The length of the patient stay shall be determined

19  on the medical condition of the enrollee in relation to the

20  necessary and appropriate level of care.

21         3.  Room and board may be limited to semiprivate

22  accommodations unless a private room is considered medically

23  necessary or semiprivate accommodations are not available.

24         4.  Admissions for rehabilitation and physical therapy

25  are limited to 15 days per contract year.

26         (c)  Emergency services.--Covered services include

27  visits to an emergency room or other licensed facility if

28  needed immediately due to an injury or illness and delay means

29  risk of permanent damage to the enrollee's health.

30

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  1         (d)  Maternity services.--Covered services include

  2  maternity and newborn care, including prenatal and postnatal

  3  care with the following limitations:

  4         1.  Coverage may be limited to vaginal deliveries; and

  5         2.  Initial inpatient care for newborn infants of

  6  enrolled adolescents shall be covered, including normal

  7  newborn care, nursery charges, and the initial pediatric or

  8  neonatal examination, and the infant may be covered for up to

  9  3 days following birth.

10         (e)  Organ transplantation services.--Covered services

11  include pretransplant, transplant, and postdischarge services

12  and treatment of complications after transplantation for

13  transplants deemed necessary and appropriate within the

14  guidelines set by the Agency for Health Care Administration

15  Organ Transplant Advisory Council under s. 381.0602 or the

16  Agency for Health Care Administration Bone Marrow Transplant

17  Advisory Panel under s. 627.4236.

18         (f)  Outpatient services.--Covered services include

19  preventive, diagnostic, therapeutic, palliative care, and

20  other services provided to an enrollee in the outpatient

21  portion of a health facility licensed under chapter 395,

22  except for the following limitations:

23         1.  Services must be authorized by the enrollee's

24  health benefits coverage provider; and

25         2.  Treatment for temporomandibular joint disease (TMJ)

26  is specifically excluded.

27         (g)  Behavioral health services.--

28         1.  Mental health benefits include:

29         a.  Inpatient services, limited to not more than 15

30  inpatient days per contract year for psychiatric admissions;

31  and

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  1         b.  Outpatient services, including outpatient visits

  2  for psychological or psychiatric evaluation, diagnosis, and

  3  treatment by a licensed mental health professional, limited to

  4  a maximum of twenty outpatient visits each contract year.

  5         2.  Drug abuse detoxification and rehabilitation

  6  services for pregnant adolescents, including inpatient and

  7  outpatient services, with inpatient admissions for alcoholism

  8  and drug addiction limited to diagnosis and medical

  9  detoxification.

10         (h)  Durable medical equipment.--Covered services

11  include equipment and devices that are medically indicated to

12  assist in the treatment of a medical condition and

13  specifically prescribed as medically necessary, with the

14  following limitations:

15         1.  Low vision and telescopic aides are not included.

16         2.  Corrective lenses and frames may be limited to one

17  pair every 2 years, unless the prescription or head size of

18  the enrollee changes.

19         3.  Hearing aids shall be covered only when medically

20  indicated to assist in the treatment of a medical condition.

21         4.  Covered prosthetic devices include artificial eyes

22  and limbs, braces, and other artificial aids.

23         (i)  Health practitioner services.--Covered services

24  include services and procedures rendered to an enrollee when

25  performed to diagnose and treat diseases, injuries, or other

26  conditions, including care rendered by health practitioners

27  acting within the scope of their practice, with the following

28  exceptions:

29         1.  Chiropractic services may be limited to six visits

30  in 6 months and one service per day for manual manipulation of

31  the spine and screenings.

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  1         2.  Podiatric services may be limited to one visit per

  2  day totaling two visits per month for specific foot disorders.

  3         (j)  Home health services.--Covered services include

  4  prescribed home visits by both registered and licensed

  5  practical nurses to provide skilled nursing services on a

  6  part-time intermittent basis, subject to the following

  7  limitations:

  8         1.  Coverage may be limited to include skilled nursing

  9  services only;

10         2.  Meals, housekeeping, and personal comfort items may

11  be excluded; and

12         3.  Private duty nursing is limited to circumstances

13  where such care is medically necessary.

14         (k)  Hospice services.--Covered services include

15  reasonable and necessary services for palliation or management

16  of an enrollee's terminal illness, with the following

17  exceptions:

18         1.  Once a family elects to receive hospice care for an

19  enrollee, other services that treat the terminal condition

20  will not be covered; and

21         2.  Services required for conditions totally unrelated

22  to the terminal condition are covered to the extent that the

23  services are included in this section.

24         (l)  Laboratory and X-ray services.--Covered services

25  include diagnostic testing, including clinical radiologic,

26  laboratory, and other diagnostic tests.

27         (m)  Nursing facility services.--Covered services

28  include regular nursing services, rehabilitation services,

29  drugs and biologicals, medical supplies, and the use of

30  appliances and equipment furnished by the facility, with the

31  following limitations:

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  1         1.  All admissions must be authorized by the health

  2  benefits coverage provider.

  3         2.  The length of the patient stay shall be determined

  4  on the medical condition of the enrollee in relation to the

  5  necessary and appropriate level of care, but is limited to not

  6  more than 100 days per contract year.

  7         3.  Room and board may be limited to semiprivate

  8  accommodations, unless a private room is considered medically

  9  necessary or semiprivate accommodations are not available.

10         4.  Specialized treatment centers and independent

11  kidney disease treatment centers are excluded.

12         5.  Private duty nurses, television, and custodial care

13  are excluded.

14         6.  Admissions for rehabilitation and physical therapy

15  are limited to 15 days per contract year.

16         (n)  Prescribed drugs.--

17         1.  Coverage shall include drugs prescribed for the

18  treatment of illness or injury when prescribed by a licensed

19  health practitioner acting within the scope of his or her

20  practice.

21         2.  Prescribed drugs may be limited to generics if

22  available and brand name products if a generic substitution is

23  not available, unless the prescribing licensed health

24  practitioner indicates that a brand name is medically

25  necessary.

26         3.  Prescribed drugs covered under this section shall

27  include all prescribed drugs covered under the Florida

28  Medicaid program.

29         (o)  Therapy services.--Covered services include

30  rehabilitative services, including occupational, physical,

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  1  respiratory, and speech therapies, with the following

  2  limitations:

  3         1.  Services must be for short-term rehabilitation

  4  where significant improvement in the enrollee's condition will

  5  result; and

  6         2.  Services shall be no more than twenty-four

  7  treatment sessions within a 60-day period per episode or

  8  injury, with the 60-day period beginning with the first

  9  treatment.

10         (p)  Transportation services.--Covered services include

11  emergency transportation required in response to an emergency

12  situation.

13         (q)  Lifetime maximum.--Health benefits coverage

14  obtained under ss. 409.810-409.820 shall pay an enrollee's

15  covered expenses at a lifetime maximum of $1 million per

16  covered child.

17         (r)  Cost-sharing.--Cost-sharing provisions must comply

18  with s. 409.816.

19         (s)  Exclusions.--

20         1.  Experimental or investigational procedures that

21  have not been clinically proven by reliable evidence are

22  excluded;

23         2.  Services performed for cosmetic purposes only or

24  for the convenience of the enrollee are excluded; and

25         3.  Abortion may be covered only if necessary to save

26  the life of the mother or if the pregnancy is the result of an

27  act of rape or incest.

28         (t)  Enhancements to minimum requirements.--

29         1.  This section sets the minimum benefits that must be

30  included in any health benefits coverage, other than Medicaid

31  coverage, offered under ss. 409.810-409.820. Health benefits

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  1  coverage may include additional benefits not included under

  2  this subsection, but may not include benefits excluded under

  3  paragraph (h).

  4         2.  Health benefits coverage may extend any limitations

  5  beyond the minimum benefits described in this section.

  6

  7  The agency may not adjust the benchmark premium for either

  8  additional benefits provided beyond the minimum benefits

  9  described in this section or the imposition of less

10  restrictive service limitations.

11         (u)  Applicability of other state laws.--Health

12  insurers, health maintenance organizations, and their agents

13  are subject to the provisions of the Florida Insurance Code,

14  except for any such provisions waived in this section.

15         1.  Except as expressly provided in this section, a law

16  requiring coverage for a specific health care service or

17  benefit, or a law requiring reimbursement, utilization, or

18  consideration of a specific category of licensed health care

19  practitioner, does not apply to an insurance health plan

20  policy or contract offered or delivered under ss.

21  409.810-409.820 unless that law is made expressly applicable

22  to such policies or contracts.

23         2.  Notwithstanding chapter 641, a health maintenance

24  organization may issue contracts providing benefits equal to

25  the benchmark benefit plan authorized by this section.

26         Section 10.  Section 409.816, Florida Statutes, is

27  created to read:

28         409.816  Limitations on premiums and cost-sharing.--The

29  following limitations on premiums and cost-sharing are

30  established for the program.

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  1         (1)  Enrollees who receive coverage under the Medicaid

  2  program may not be required to pay:

  3         (a)  Enrollment fees, premiums, or similar charges; or

  4         (b)  Copayments, deductibles, coinsurance, or similar

  5  charges.

  6         (2)  Enrollees in families with a family income equal

  7  to or below 150 percent of the federal poverty level and who

  8  are not receiving coverage under the Medicaid program may not

  9  be required to pay:

10         (a)  Enrollment fees, premiums, or similar charges that

11  exceed the maximum monthly charge permitted under s.

12  1916(b)(1) of the Social Security Act; or

13         (b)  Copayments, deductibles, coinsurance, or similar

14  charges that exceed a nominal amount, as determined consistent

15  with regulations referred to in s. 1916(a)(3) of the Social

16  Security Act. However, such charges may not be imposed for

17  preventive services, including well-baby and well-child care,

18  age-appropriate immunizations, and routine hearing and vision

19  screenings.

20         (3)  Enrollees in families with a family income above

21  150 percent of the federal poverty level and who are not

22  receiving coverage under the Medicaid program may be required

23  to pay enrollment fees, premiums, copayments, deductibles,

24  coinsurance, or similar charges on a sliding scale related to

25  income, except that the total annual aggregate cost-sharing

26  with respect to all children in a family may not exceed 5

27  percent of the family's income. However, copayments,

28  deductibles, coinsurance, or similar charges may not be

29  imposed for preventive services, including well-baby and

30  well-child care, age-appropriate immunizations, and routine

31  hearing and vision screenings.

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  1         Section 11.  Section 409.817, Florida Statutes, is

  2  created to read:

  3         409.817  Approval of health benefits coverage;

  4  financial assistance.--In order for health benefits coverage

  5  to qualify for premium assistance payments for an eligible

  6  child under ss. 409.810-409.820, the health benefits coverage

  7  must:

  8         (1)  Be certified by the Department of Insurance under

  9  s. 409.818 as meeting, or exceeding, the benchmark benefit

10  plan;

11         (2)  Be guarantee issued;

12         (3)  For health insurance coverage, be community rated;

13         (4)  Not impose any preexisting condition exclusion for

14  covered benefits; however, group health insurance plans may

15  permit the imposition of a preexisting condition exclusion,

16  but only insofar as it is permitted under s. 627.6561;

17         (5)  Comply with the applicable limitations on premiums

18  and cost-sharing in s. 409.816;

19         (6)  Comply with the quality assurance and access

20  standards developed under s. 409.820;

21         (7)  Establish periodic open enrollment periods, which

22  may not occur more frequent than quarterly; and

23         (8)  For alternative coverage, not cost more for the

24  benchmark benefit plan, on an average per child basis, than

25  the cost of coverage under the health insurance component of

26  the program.

27         Section 12.  Section 409.818, Florida Statutes, is

28  created to read:

29         409.818  Administration.--In order to implement ss.

30  409.810-409.820, the following agencies shall have the

31  following duties:

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  1         (1)  The Department of Children and Family Services

  2  shall:

  3         (a)  Develop a simplified eligibility application form

  4  to be used for determining the eligibility of children for

  5  coverage under the program in consultation with the agency,

  6  the Department of Health, and the Florida Healthy Kids

  7  Corporation. The simplified eligibility application form must

  8  include an item that provides an opportunity for the applicant

  9  to indicate whether coverage is being sought for a child with

10  special health care needs.

11         (b)  Establish and maintain the eligibility

12  determination process under the program. The department shall

13  directly, or through the services of a contracted third-party

14  administrator, establish and maintain a process for

15  determining eligibility of children for coverage under the

16  program. The eligibility determination process must include an

17  initial determination of eligibility for any coverage offered

18  under the program, as well as a redetermination or

19  reverification of eligibility each subsequent 6 months. In

20  conducting an eligibility determination, the department shall

21  determine if the child has special health care needs.

22         (c)  Inform program applicants about eligibility

23  determinations and that eligibility information may be shared

24  with the Medicaid program, the Florida Healthy Kids

25  Corporation, insurers and their agents, and alternative

26  coverage providers through a centralized coordinating office.

27         (d)  Adopt rules necessary for conducting program

28  eligibility functions.

29         (2)  The Department of Health shall:

30         (a)  Design an eligibility intake process. The

31  eligibility intake process may include local intake points

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  1  that are determined by the Department of Health in

  2  coordination with the Department of Children and Family

  3  Services.

  4         (b)  Design and implement program outreach activities

  5  under s. 409.819.

  6         (c)  Adopt rules necessary to implement outreach

  7  activities.

  8         (3)  The Agency for Health Care Administration, under

  9  the authority granted in s. 409.914(1), shall:

10         (a)  Calculate the annual benchmark premium. For the

11  first year of program operation, the benchmark premium shall

12  be an actuarially determined premium for the benchmark benefit

13  plan. For subsequent years, the benchmark premium shall be

14  calculated based on the average premiums for all health

15  insurance plans provided under the program.

16         (b)  Calculate the premium assistance payment necessary

17  to comply with the premium and cost-sharing limitations

18  specified in s. 409.816. In calculating the premium assistance

19  payment levels for children with family coverage, the agency

20  shall set the premium assistance payment levels for each child

21  proportionately to the total cost of family coverage.

22         (c)  Annually calculate the program enrollment ceiling

23  based on estimated per-child premium assistance payments and

24  the estimated appropriation available for the program.

25         (d)  Make premium assistance payments to health

26  insurance plans on a periodic basis and reimburse alternative

27  coverage providers for covered services at Medicaid

28  reimbursement rates. The agency may use its Medicaid fiscal

29  agent or a contracted third-party administrator in making

30  these payments.

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  1         (e)  Monitor compliance with quality assurance and

  2  access standards developed under s. 409.820.

  3         (f)  Establish a mechanism for investigating and

  4  resolving complaints and grievances from program applicants,

  5  enrollees, and health benefits coverage providers, and

  6  maintain a record of complaints and confirmed problems. In the

  7  case of a child who is enrolled in a health maintenance

  8  organization, the agency must use the provisions of s. 641.511

  9  to address grievance reporting and resolution requirements.

10         (g)  Approve health benefits coverage for participation

11  in the program, following certification by the Department of

12  Insurance under subsection (3).

13         (h)  Adopt rules necessary for calculating the annual

14  benchmark premium, calculating premium assistance payment

15  levels, calculating the program enrollment ceiling, making

16  premium assistance payments, monitoring access and quality

17  assurance standards, investigating and resolving complaints

18  and grievances, and approving health benefits coverage.

19         (4)  The Department of Insurance shall certify that

20  health benefits coverage plans that seek to provide services

21  under the program, except those offered through the Florida

22  Healthy Kids Corporation, meet or exceed the benchmark benefit

23  plan and that health insurance plans will be offered at an

24  approved rate. The department shall adopt rules necessary for

25  certifying health benefits coverage plans.

26         (5)  The Florida Healthy Kids Corporation shall retain

27  its functions as authorized in s. 624.91, with the exception

28  of its eligibility determination functions relating to

29  coverage under the Florida Kids Health program which shall be

30  assumed by the Department of Children and Family Services.

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  1         (6)  The Agency for Health Care Administration, in

  2  conjunction with the Department of Health, shall seek a

  3  federal waiver to authorize providers of alternative coverage

  4  to participate in the program.

  5         Section 13.  Section 154.508, Florida Statutes, is

  6  transferred, renumbered as section 409.819, Florida Statutes,

  7  and amended to read:

  8         409.819 154.508  Identification of low-income,

  9  uninsured children; determination of Medicaid eligibility for

10  the Florida Kids Health program; alternative health care

11  information.--The Department of Health Agency for Health Care

12  Administration shall develop a program, in conjunction with

13  the Department of Education, the Department of Children and

14  Family Services, the Agency for Health Care Administration,

15  the Florida Healthy Kids Corporation the Department of Health,

16  local governments, employers school districts, and other

17  stakeholders to identify low-income, uninsured children and,

18  to the extent possible and subject to appropriation, refer

19  them to the Department of Children and Family Services for a

20  Medicaid eligibility determination and provide parents with

21  information about choices alternative sources of health

22  benefits coverage under the Florida Kids Health program care.

23         Section 14.  Section 409.820, Florida Statutes, is

24  created to read:

25         409.820  Quality assurance and access standards.--The

26  Department of Health, in consultation with the agency and the

27  Florida Healthy Kids Corporation, shall develop a common set

28  of quality assurance and access standards for all program

29  components. The standards must include a process for granting

30  exceptions to specific requirements for quality assurance and

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  1  access. Compliance with the standards shall be a condition of

  2  program participation by health benefits coverage providers.

  3         Section 15.  The following performance measures and

  4  standards are adopted for the Florida Kids Health program.--

  5         (1)  The total number of previously uninsured children

  6  who receive health benefits coverage as a result of state

  7  activities under Title XXI of the Social Security Act: 235,000

  8  uninsured children expected to obtain coverage during the

  9  1998-1999 fiscal year.

10         (a)  The number of children enrolled in the Medicaid

11  program as a result of eligibility expansions under Title XXI

12  of the Social Security Act: 35,000 children enrolled in

13  Medicaid under new eligibility groups during the 1998-1999

14  fiscal year.

15         (b)  The number of children enrolled in the Medicaid

16  program as a result of outreach efforts under Title XXI of the

17  Social Security Act who are eligible for Medicaid but who have

18  not enrolled in the program: 80,000 children previously

19  eligible for Medicaid, but not enrolled in Medicaid, who

20  enroll in Medicaid during the 1998-1999 fiscal year.

21         (c)  The number of uninsured children added to the

22  enrollment for the Florida Healthy Kids Corporation program

23  under Title XXI of the Social Security Act: 60,000 additional

24  children enrolled in the Florida Healthy Kids Corporation

25  program during the 1998-1999 fiscal year.

26         (d)  The number of uninsured children enrolled in

27  health insurance coverage under Title XXI of the Social

28  Security Act: 50,000 uninsured children enrolled in health

29  insurance coverage during the 1998-1999 fiscal year.

30         (e)  The number of uninsured children enrolled in

31  alternative coverage offered under Title XXI of the Social

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  1  Security Act: 10,000 uninsured children enrolled in

  2  alternative coverage during the 1998-1999 fiscal year.

  3         (2)  The percentage of uninsured children in this state

  4  as of July 1, 1998, who receive health benefits coverage under

  5  the Florida Kids Health program: 28.5 percent of uninsured

  6  children enrolled in the Florida Kids Health program during

  7  the 1998-1999 fiscal year.

  8         (3)  The percentage of children enrolled in the Florida

  9  Kids Health program with up-to-date immunizations: 80 percent

10  of enrolled children with up-to-date immunizations.

11         (4)  The percentage of compliance with the standards

12  established in the Guidelines for Health Supervision of

13  Children and Youth as developed by the American Academy of

14  Pediatrics for children eligible for the Florida Kids Health

15  program and served under:

16         (a)  Medicaid;

17         (b)  The Florida Healthy Kids Corporation program;

18         (c)  Health insurance products; and

19         (d)  Alternative coverage.

20

21  For each category of coverage, the health care provided is in

22  compliance with the health supervision standards for 80

23  percent of enrolled children.

24         Section 16.  The sum of $20,360,500 is appropriated

25  from funds available under Title XXI of the Social Security

26  Act and shall be used for school health services during the

27  1998-1999 fiscal year.

28         Section 17.  The provisions of this act which would

29  require changes to contracts in existence on June 30, 1998,

30  between the Florida Healthy Kids Corporation and its

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  1  contracted providers shall be applied to such contracts upon

  2  the renewal of the contracts, but not later than July 1, 1999.

  3         Section 18.  This act shall take effect July 1, 1998.

  4

  5            *****************************************

  6                          SENATE SUMMARY

  7    Creates the Florida Kids Health program to provide health
      care benefits to uninsured, low-income children. Provides
  8    for the program to include benefits provided under the
      Medicaid program and the Florida Healthy Kids Corporation
  9    program. Provides for an enrollment ceiling for the
      program to be established each year in the General
10    Appropriations Act. Specifies the minimum benefits to be
      provided under the program. Provides certain limitations
11    on and requirements for enrollment fees, copayments, and
      similar charges. Requires the Department of Children and
12    Family Services to develop a process for determining
      eligibility. Requires the Department of Health to design
13    an intake process and outreach activities for
      administering the program. Requires that the Agency for
14    Health Care Administration calculate the annual benchmark
      premium and enrollment ceiling, establish a mechanism for
15    investigating and resolving grievances, and approve
      health benefits provided under the program. (See bill for
16    details.)

17

18

19

20

21

22

23

24

25

26

27

28

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