House Bill 4415e2

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                                      CS/HB 4415, Second Engrossed



  1                      A bill to be entitled

  2         An act relating to health care; directing the

  3         Agency for Health Care Administration to seek a

  4         federal waiver for the Healthy Start Program;

  5         amending s. 391.011, F.S.; providing a short

  6         title; amending s. 391.016, F.S.; providing

  7         legislative intent relating to the Children's

  8         Medical Services program; amending s. 391.021,

  9         F.S.; providing definitions; creating s.

10         391.025, F.S.; providing for applicability and

11         scope; amending s. 391.026, F.S.; providing

12         powers and duties of the Department of Health;

13         creating s. 391.028, F.S., and renumbering and

14         amending s. 391.051, F.S.; providing for

15         administration of the program; creating s.

16         391.029, F.S., and renumbering and amending ss.

17         391.046 and 391.07, F.S.; providing program

18         eligibility; creating s. 391.031, F.S.;

19         establishing benefits; creating s. 391.035,

20         F.S., and renumbering and amending ss. 391.036

21         and 391.041, F.S.; establishing provider

22         qualifications; creating s. 391.045, F.S.;

23         providing for provider reimbursement; creating

24         s. 391.047, F.S.; establishing responsibility

25         for payments on behalf of program participants

26         when other parties are liable; creating s.

27         391.055, F.S.; establishing service delivery

28         systems; creating s. 391.065, F.S.; providing

29         for health care provider agreements; creating

30         s. 391.071, F.S.; providing for quality of care

31         requirements; creating s. 391.081, F.S.;


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                                      CS/HB 4415, Second Engrossed



  1         establishing grievance reporting and resolution

  2         requirements; creating s. 391.095, F.S.;

  3         providing for program integrity; renumbering

  4         and amending s. 391.061, F.S.; providing for

  5         research and evaluation; renumbering ss.

  6         391.201-391.217, F.S., relating to prescribed

  7         pediatric extended care centers; designating

  8         said sections as pt. IX of ch. 400, F.S.;

  9         amending ss. 391.206 and 391.217, F.S.;

10         conforming cross-references; designating ss.

11         391.221, 391.222, and 391.223, F.S., as pt. II

12         of ch. 391, F.S., entitled "Children's Medical

13         Services Councils and Panels"; creating s.

14         391.221, F.S.; establishing the Statewide

15         Children's Medical Services Network Advisory

16         Council; renumbering and amending s. 391.091,

17         F.S., relating to the Cardiac Advisory Council;

18         deleting meeting and reporting requirements;

19         creating s. 391.223, F.S.; providing for

20         technical advisory panels; amending ss.

21         391.301, 391.303, 391.304, 391.305, and

22         391.307, F.S.; revising provisions relating to

23         developmental evaluation and intervention

24         programs; amending s. 408.701, F.S.; conforming

25         cross-references; creating s. 409.810, F.S.;

26         providing a short title; creating s. 409.811,

27         F.S.; providing definitions; creating s.

28         409.812, F.S.; creating and establishing the

29         purpose of the Florida Kidcare program;

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

31         components; specifying that certain program


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                                      CS/HB 4415, Second Engrossed



  1         components are not an entitlement; creating s.

  2         409.8132, F.S.; creating and establishing the

  3         purpose of the Medikids program component;

  4         providing for administration by the Agency for

  5         Health Care Administration; exempting Medikids

  6         from licensure under the Florida Insurance

  7         Code; providing applicability of certain

  8         Medicaid requirements; establishing benefit

  9         requirements; providing for eligibility;

10         providing enrollment requirements; authorizing

11         penalties for nonpayment of premiums; creating

12         s. 409.8134, F.S.; providing for program

13         enrollment and expenditure ceilings; creating

14         s. 409.8135, F.S., providing behavior health

15         benefits to non-Medicaid-eligible children with

16         serious emotional needs; creating s. 409.814,

17         F.S.; providing eligibility requirements;

18         creating s. 409.815, F.S.; establishing

19         requirements for health benefits coverage under

20         the Florida Kidcare program; creating s.

21         409.816, F.S.; providing for limitations on

22         premiums and cost-sharing; creating s. 409.817,

23         F.S.; providing for approval of health benefits

24         coverage as a condition of financial

25         assistance; creating s. 409.8175, F.S.;

26         authorizing health maintenance organizations

27         and health insurers to reimburse providers in

28         rural counties according to the Medicaid fee

29         schedule; creating 409.8177, F.S.; providing

30         for program evaluation; requiring annual

31         reports; creating s. 409.818, F.S.; providing


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                                      CS/HB 4415, Second Engrossed



  1         for program administration; specifying duties

  2         of the Department of Children and Family

  3         Services, the Department of Health, the Agency

  4         for Health Care Administration, the Department

  5         of Insurance, and the Florida Healthy Kids

  6         Corporation; authorizing certain program

  7         modifications related to federal approval;

  8         renumbering and amending s. 154.508, F.S.,

  9         relating to outreach activities to identify

10         low-income, uninsured children; creating s.

11         409.820, F.S.; requiring the Department of

12         Health to develop standards for quality

13         assurance and program access; establishing

14         performance measures and standards for the

15         Florida Kidcare program; directing the Agency

16         for Health Care Administration to conduct a

17         study of Medicaid presumptive eligibility and

18         report its findings to the Legislature;

19         providing an enrollment ceiling; amending s.

20         409.904, F.S.; expanding Medicaid optional

21         eligibility to certain children and providing

22         for continuous eligibility; amending s.

23         409.906, F.S.; authorizing the Agency for

24         Health Care Administration to pay for certain

25         services for the Healthy Start program pursuant

26         to a federal waiver; providing for limitations;

27         amending s. 409.9126, F.S., relating to the

28         provision of Children's Medical Services

29         network services for children with special

30         health care needs; deleting definitions;

31         deleting standards for referral of certain


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                                      CS/HB 4415, Second Engrossed



  1         children to the network; providing for certain

  2         provider reimbursement; amending s. 624.91,

  3         F.S., relating to the Florida Healthy Kids

  4         Corporation; providing legislative intent;

  5         specifying that the program is not an

  6         entitlement; revising standards; providing for

  7         competitive bids for health plans; providing

  8         additional duties; repealing ss. 391.031 and

  9         391.056, F.S., relating to patient care centers

10         and district children's medical program

11         supervisors; repealing s. 624.92, F.S.,

12         relating to application for a Medicaid waiver

13         for funds to expand the Florida Healthy Kids

14         Corporation; providing that the provisions of

15         this act do not apply to certain existing

16         contracts; providing for future repeal and

17         review of ss. 409.810-409.820, F.S., relating

18         to the "Florida Kidcare Act," based on

19         specified changes in federal policy; providing

20         an effective date.

21

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

23

24         Section 1.  The Agency for Health Care Administration,

25  working jointly with the Department of Health and the Florida

26  Association of Healthy Start Coalitions, is directed to seek a

27  federal waiver to secure matching funds under Title XIX of the

28  Social Security Act for the Healthy Start program. The federal

29  waiver application must seek Medicaid matching funds utilizing

30  appropriated general revenue and local contributions.

31


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                                      CS/HB 4415, Second Engrossed



  1         Section 2.  Section 391.011, Florida Statutes, is

  2  amended to read:

  3         391.011  Short title.--The provisions of this chapter

  4  This act shall be known and may be cited as the "Children's

  5  Medical Services Act."

  6         Section 3.  Section 391.016, Florida Statutes, is

  7  amended to read:

  8         391.016  Legislative intent.--The Legislature intends

  9  that the Children's Medical Services program:

10         (1)  Provide to children with special health care needs

11  a family-centered, comprehensive, and coordinated statewide

12  managed system of care that links community-based health care

13  with multidisciplinary, regional, and tertiary pediatric

14  specialty care.  The program may provide for the coordination

15  and maintenance of consistency of the medical home for

16  children in families with a Children's Medical Services

17  program participant, in order to achieve family-centered care

18  finds and declares that there is a need to provide medical

19  services for needy children, particularly those with chronic,

20  crippling or potentially crippling and physically handicapping

21  diseases or conditions, and to provide leadership and

22  direction in promoting, planning, and coordinating children's

23  medical care programs so that the full development of each

24  child's potential may be realized.

25         (2)  Provide essential preventive, evaluative, and

26  early intervention services for children at risk for or having

27  special health care needs, in order to prevent or reduce long

28  term disabilities.

29         (3)  Serve as a principal provider for children with

30  special health care needs under Titles XIX and XXI of the

31  Social Security Act.


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                                      CS/HB 4415, Second Engrossed



  1         (4)  Be complementary to children's health training

  2  programs essential for the maintenance of a skilled pediatric

  3  health care workforce for all Floridians.

  4         Section 4.  Section 391.021, Florida Statutes, is

  5  amended to read:

  6         391.021  Definitions.--When used in this act, unless

  7  the context clearly indicates otherwise:

  8         (1)  "Children's Medical Services network" or "network"

  9  means a statewide managed care service system that includes

10  health care providers, as defined in this section.

11         (2)  "Children with special health care needs" means

12  those children under age 21 years whose serious or chronic

13  physical or developmental conditions require extensive

14  preventive and maintenance care beyond that required by

15  typically healthy children.  Health care utilization by these

16  children exceeds the statistically expected usage of the

17  normal child adjusted for chronological age.  These children

18  often need complex care requiring multiple providers,

19  rehabilitation services, and specialized equipment in a number

20  of different settings.

21         (3)(1)  "Department" means the Department of Health.

22         (4)(2)  "Eligible individual" means a child with a

23  special health care need or a female of any age with a

24  high-risk pregnancy, or an individual below the age of 21

25  years who has an organic disease, defect, or condition which

26  may hinder the achievement of his or her normal growth and

27  development,  and who meets the financial and medical

28  eligibility standards established in s. 391.029. by the

29  department.  In addition, where specific legislative

30  appropriation exists, individuals with long-term chronic

31  diseases, such as cystic fibrosis, which originated during


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                                      CS/HB 4415, Second Engrossed



  1  childhood and who received services under this act before the

  2  age of 21 years shall continue to be eligible beyond that age.

  3         (5)  "Health care provider" means a health care

  4  professional, health care facility, or entity licensed or

  5  certified to provide health services in this state that meets

  6  the criteria as established by the department.

  7         (6)(3)  "Health Medical services" includes the

  8  prevention, diagnosis, and treatment of human disease, pain,

  9  injury, deformity, or disabling physical conditions.

10         (7)  "Participant" means an eligible individual who is

11  enrolled in the Children's Medical Services program.

12         (8)  "Program" means the Children's Medical Services

13  program established in the Division of Children's Medical

14  Services of the department.

15         Section 5.  Section 391.025, Florida Statutes, is

16  created to read:

17         391.025  Applicability and scope.--

18         (1)  This act applies to health services provided to

19  eligible individuals who are:

20         (a)  Enrolled in the Medicaid program;

21         (b)  Enrolled in the Florida Kidcare program; and

22         (c)  Uninsured or underinsured, provided that they meet

23  the financial eligibility requirements established in this

24  act, and to the extent that resources are appropriated for

25  their care.

26         (2)  The Children's Medical Services program consists

27  of the following components:

28         (a)  The infant metabolic screening program established

29  in s. 383.14.

30         (b)  The regional perinatal intensive care centers

31  program established in ss. 383.15-383.21.


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                                      CS/HB 4415, Second Engrossed



  1         (c)  A federal or state program authorized by the

  2  Legislature.

  3         (d)  The developmental evaluation and intervention

  4  program.

  5         (e)  The Children's Medical Services network.

  6         (3)  The Children's Medical Services program shall not

  7  be deemed an insurer and is not subject to the licensing

  8  requirements of the Florida Insurance Code or the rules of the

  9  Department of Insurance, when providing services to children

10  who receive Medicaid benefits, other Medicaid-eligible

11  children with special health care needs, and children

12  participating in the Florida Kidcare program.  This exemption

13  shall not extend to contractors.

14         Section 6.  Section 391.026, Florida Statutes, is

15  amended to read:

16         391.026  Powers and duties of the department.--To

17  administer its programs of children's medical services, The

18  department shall have the following powers, duties, and

19  responsibilities:

20         (1)  To provide or contract for the provision of health

21  medical services to eligible individuals.

22         (2)  To determine the medical and financial eligibility

23  standards for the program and to determine the medical and

24  financial eligibility of individuals seeking health medical

25  services from the program.

26         (3)  To recommend priorities for the implementation of

27  comprehensive plans and budgets.

28         (4)  To coordinate a comprehensive delivery system for

29  eligible individuals to take maximum advantage of all

30  available federal funds.

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                                      CS/HB 4415, Second Engrossed



  1         (5)  To promote, establish, and coordinate programs

  2  relating to children's medical services in cooperation with

  3  other public and private agencies and to coordinate funding of

  4  health care programs with federal, state, or local indigent

  5  health care funding mechanisms.

  6         (6)  To initiate, coordinate, and request review of

  7  applications to federal and state agencies for funds,

  8  services, or commodities relating to children's medical

  9  programs.

10         (7)  To sponsor or promote grants for projects,

11  programs, education, or research in the field of medical needs

12  of children, with an emphasis on early diagnosis and

13  treatment.

14         (8)  To oversee and operate the Children's Medical

15  Services network contract or be contracted with.

16         (9)  To establish reimbursement mechanisms for the

17  Children's Medical Services network standards of eligibility

18  for patients of children's medical services programs.

19         (10)  To establish Children's Medical Services network

20  standards and credentialing requirements for health care

21  providers and health care services coordinate funding of

22  medical care programs with state or local indigent health care

23  funding mechanisms.

24         (11)  To serve as a provider and principal case manager

25  for children with special health care needs under Titles XIX

26  and XXI of the Social Security Act establish standards for

27  patient care and facilities.

28         (12)  To monitor the provision of health services in

29  the program, including the utilization and quality of health

30  services.

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                                      CS/HB 4415, Second Engrossed



  1         (13)  To administer the Children with Special Health

  2  Care Needs program in accordance with Title V of the Social

  3  Security Act.

  4         (14)  To establish and operate a grievance resolution

  5  process for participants and health care providers.

  6         (15)  To maintain program integrity in the Children's

  7  Medical Services program.

  8         (16)  To receive and manage health care premiums,

  9  capitation payments, and funds from federal, state, local, and

10  private entities for the program.

11         (17)  To appoint health care consultants for the

12  purpose of providing peer review and making recommendations to

13  enhance the delivery and quality of services in the Children's

14  Medical Services program.

15         (18)(12)  To make rules to carry out the provisions of

16  this act.

17         Section 7.  Section 391.028, Florida Statutes, is

18  created, and section 391.051, Florida Statutes, is renumbered

19  as subsection (1) of said section and amended, to read:

20         391.028  Administration.--The Children's Medical

21  Services program shall have a central office and area offices.

22         (1) 391.051  Qualifications of director.--The Director

23  of the Division of for Children's Medical Services must be a

24  physician licensed under chapter 458 or chapter 459 who has

25  specialized training and experience in the provision of health

26  medical care to children and who has recognized skills in

27  leadership and the promotion of children's health programs.

28  The division director for Children's Medical Services shall be

29  the deputy secretary and the Deputy State Health Officer for

30  Children's Medical Services and is appointed by and reports to

31  the secretary.


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                                      CS/HB 4415, Second Engrossed



  1         (2)  The division director shall designate Children's

  2  Medical Services area offices to perform operational

  3  activities, including, but not limited to:

  4         (a)  Providing case management services for the

  5  network.

  6         (b)  Providing local oversight of the program.

  7         (c)  Determining an individual's medical and financial

  8  eligibility for the program.

  9         (d)  Participating in the determination of a level of

10  care and medical complexity for long-term care services.

11         (e)  Authorizing services in the program and developing

12  spending plans.

13         (f)  Participating in the development of treatment

14  plans.

15         (g)  Taking part in the resolution of complaints and

16  grievances from participants and health care providers.

17         (3)  Each Children's Medical Services area office shall

18  be directed by a physician licensed under chapter 458 or

19  chapter 459 who has specialized training and experience in the

20  provision of health care to children.  The director of a

21  Children's Medical Services area office shall be appointed by

22  the division director from the active panel of Children's

23  Medical Services physician consultants.

24         Section 8.  Section 391.029, Florida Statutes, is

25  created, section 391.046, Florida Statutes, is renumbered as

26  subsection (3) of said section and amended, and section

27  391.07, Florida Statutes, is renumbered as subsection (4) of

28  said section and amended, to read:

29         391.029  Program eligibility.--

30

31


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                                      CS/HB 4415, Second Engrossed



  1         (1)  The department shall establish the medical

  2  criteria to determine if an applicant for the Children's

  3  Medical Services program is an eligible individual.

  4         (2)  The following individuals are financially eligible

  5  for the program:

  6         (a)  A high-risk pregnant female who is eligible for

  7  Medicaid.

  8         (b)  A child with special health care needs from birth

  9  to age 21 years who is eligible for Medicaid.

10         (c)  A child with special health care needs from birth

11  to age 19 years who is eligible for a program under Title XXI

12  of the Social Security Act.

13         (d)  A child with special health care needs from birth

14  to age 21 years whose projected annual cost of care adjusts

15  the family income to Medicaid financial criteria.  In cases

16  where the family income is adjusted based on a projected

17  annual cost of care, the family shall participate financially

18  in the cost of care based on criteria established by the

19  department.

20         (e)  A child with special health care needs as defined

21  in Title V of the Social Security Act relating to children

22  with special health care needs.

23

24  The department may continue to serve certain children with

25  special health care needs who are 21 years of age or older and

26  who were receiving services from the program prior to April 1,

27  1998.  Such children may be served by the department until

28  July 1, 2000.

29         (3) 391.046  Financial determination.--The department

30  shall determine the financial and medical eligibility of

31  children for the program. The department shall also determine


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                                      CS/HB 4415, Second Engrossed



  1  ability of individuals seeking medical services, or the

  2  financial ability of the parents, or persons or other agencies

  3  having legal custody over such individuals, to pay the costs

  4  of health such medical services under the program. The

  5  department may pay reasonable travel expenses related to the

  6  determination of eligibility for or the provision of health

  7  medical services.

  8         (4) 391.07  Indigent and semi-indigent cases.--Any

  9  child who has been provided with surgical or medical care or

10  treatment under this act prior to being adopted shall continue

11  to be eligible to be provided with such care or treatment

12  after his or her adoption, regardless of the financial ability

13  of the persons adopting the child.

14         Section 9.  Section 391.031, Florida Statutes, is

15  created to read:

16         391.031  Benefits.--Benefits provided under the program

17  shall be the same benefits provided to children as specified

18  in ss. 409.905 and 409.906. The department may offer

19  additional benefits for early intervention services, respite

20  services, genetic testing, genetic and nutritional counseling,

21  and parent support services, if such services are determined

22  to be medically necessary. No child or person determined

23  eligible for the program who is eligible under Title XIX or

24  Title XXI of the Social Security Act shall receive any service

25  other than an initial health care screening or treatment of an

26  emergency medical condition as defined in s. 395.002, until

27  such child or person is enrolled in Medicaid or a Title XXI

28  program.

29         Section 10.  Section 391.035, Florida Statutes, is

30  created, section 391.036, Florida Statutes, is renumbered as

31  subsection (2) of said section and amended, and section


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                                      CS/HB 4415, Second Engrossed



  1  391.041, Florida Statutes, is renumbered as subsection (3) of

  2  said section and amended, to read:

  3         391.035  Provider qualifications.--

  4         (1)  The department shall establish the criteria to

  5  designate health care providers to participate in the

  6  Children's Medical Services network.  The department shall

  7  follow, whenever available, national guidelines for selecting

  8  health care providers to serve children with special health

  9  care needs.

10         (2) 391.036  Medical services providers;

11  qualifications.--The department shall require that all health

12  care providers under contract with the program of medical

13  services under this act be duly licensed in the state, if such

14  licensure is available, and meet such criteria as may be

15  established by the department.

16         (3) 391.041  Services to other state or local programs

17  or institutions.--The department may initiate agreements with

18  other state or local governmental programs or institutions for

19  the coordination of health medical care to eligible

20  individuals receiving services from such programs or

21  institutions.

22         Section 11.  Section 391.045, Florida Statutes, is

23  created to read:

24         391.045  Reimbursement.--

25         (1)  The department shall reimburse health care

26  providers for services rendered through the Children's Medical

27  Services network using cost-effective methods, including, but

28  not limited to, capitation, discounted fee-for-service, unit

29  costs, and cost reimbursement.  Medicaid reimbursement rates

30  shall be utilized to the maximum extent possible, where

31  applicable.


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                                      CS/HB 4415, Second Engrossed



  1         (2)  Reimbursement to the Children's Medical Services

  2  program for services provided to children with special health

  3  care needs who participate in the Florida Kidcare program and

  4  who are not Medicaid recipients shall be on a capitated basis.

  5         Section 12.  Section 391.047, Florida Statutes, is

  6  created to read:

  7         391.047  Responsibility for payments on behalf of

  8  Children's Medical Services program participants when other

  9  parties are liable.--The Children's Medical Services program

10  shall comply with s. 402.24, concerning third-party

11  liabilities and recovery of third-party payments for health

12  services.

13         Section 13.  Section 391.055, Florida Statutes, is

14  created to read:

15         391.055  Service delivery systems.--

16         (1)  The program shall apply managed care methods to

17  ensure the efficient operation of the Children's Medical

18  Services network.  Such methods include, but are not limited

19  to, capitation payments, utilization management and review,

20  prior authorization, and case management.

21         (2)  The components of the network are:

22         (a)  Qualified primary care physicians who shall serve

23  as the gatekeepers and who shall be responsible for the

24  provision or authorization of health services to an eligible

25  individual who is enrolled in the Children's Medical Services

26  network.

27         (b)  Comprehensive specialty care arrangements that

28  meet the requirements of s. 391.035 to provide acute care,

29  specialty care, long-term care, and chronic disease management

30  for eligible individuals.

31         (c)  Case management services.


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                                      CS/HB 4415, Second Engrossed



  1         (3)  The Children's Medical Services network may

  2  contract with school districts participating in the certified

  3  school match program pursuant to ss. 236.0812 and 409.908(21)

  4  for the provision of school-based services, as provided for in

  5  s. 409.9071, for Medicaid-eligible children who are enrolled

  6  in the Children's Medical Services network.

  7         Section 14.  Section 391.065, Florida Statutes, is

  8  created to read:

  9         391.065  Health care provider agreements.--The

10  department is authorized to establish health care provider

11  agreements for participation in the Children's Medical

12  Services program.

13         Section 15.  Section 391.071, Florida Statutes, is

14  created to read:

15         391.071  Quality of care requirements.--The Children's

16  Medical Services program shall develop quality of care and

17  service integration standards and reporting requirements for

18  health care providers that participate in the Children's

19  Medical Services program.  The program shall ensure that these

20  standards are not duplicative of other standards and

21  requirements for health care providers.

22         Section 16.  Section 391.081, Florida Statutes, is

23  created to read:

24         391.081  Grievance reporting and resolution

25  requirements.--The department shall adopt and implement a

26  system to provide assistance to eligible individuals and

27  health care providers to resolve complaints and grievances.

28  To the greatest extent possible, the department shall use

29  existing grievance reporting and resolution processes.  The

30  department shall ensure that the system developed for the

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                                      CS/HB 4415, Second Engrossed



  1  Children's Medical Services program does not duplicate

  2  existing grievance reporting and resolution processes.

  3         Section 17.  Section 391.095, Florida Statutes, is

  4  created to read:

  5         391.095  Program integrity.--The department shall

  6  operate a system to oversee the activities of Children's

  7  Medical Services program participants, and health care

  8  providers and their representatives, to prevent fraudulent and

  9  abusive behavior, overutilization and duplicative utilization,

10  and neglect of participants and to recover overpayments as

11  appropriate.  For the purposes of this section, the terms

12  "abuse" and "fraud" have the meanings provided in s. 409.913.

13  The department shall refer incidents of suspected fraud and

14  abuse, and overutilization and duplicative utilization, to the

15  appropriate regulatory agency.

16         Section 18.  Section 391.061, Florida Statutes, is

17  renumbered as section 391.097, Florida Statutes, and is

18  amended to read:

19         391.097 391.061  Research and evaluation.--

20         (1)  The department may initiate, fund, and conduct

21  research and evaluation projects to improve the delivery of

22  children's medical services. The department may cooperate with

23  public and private agencies engaged in work of a similar

24  nature.

25         (2)  The Children's Medical Services network shall be

26  included in any evaluation conducted in accordance with the

27  provisions of Title XXI of the Social Security Act as enacted

28  by the Legislature.

29         Section 19.  Sections 391.201 through 391.217, Florida

30  Statutes, are renumbered as sections 400.901 through 400.917,

31


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                                      CS/HB 4415, Second Engrossed



  1  Florida Statutes, and designated as part IX of chapter 400,

  2  Florida Statutes.

  3         Section 20.  Section 391.206, Florida Statutes, is

  4  renumbered as section 400.906, Florida Statutes, and

  5  subsection (1) of said section is amended to read:

  6         400.906 391.206  Initial application for license.--

  7         (1)  Application for a license shall be made to the

  8  agency on forms furnished by it and shall be accompanied by

  9  the appropriate license fee unless the applicant is exempt

10  from payment of the fee as provided in s. 400.905 391.205.

11         Section 21.  Section 391.217, Florida Statutes, is

12  renumbered as section 400.917, Florida Statutes, and amended

13  to read:

14         400.917 391.217  Disposition of moneys from fines and

15  fees.--All moneys received from administrative fines pursuant

16  to s. 400.908 391.208 and all moneys received from fees

17  collected pursuant to s. 400.905 391.205 shall be deposited in

18  the Health Care Trust Fund created in s. 408.16 455.2205.

19         Section 22.  Sections 391.221, 391.222, and 391.223,

20  Florida Statutes, as created by this act, are designated as

21  part II of chapter 391, Florida Statutes, entitled "Children's

22  Medical Services Councils and Panels."

23         Section 23.  Section 391.221, Florida Statutes, is

24  created to read:

25         391.221  Statewide Children's Medical Services Network

26  Advisory Council.--

27         (1)  The secretary of the department may appoint a

28  Statewide Children's Medical Services Network Advisory Council

29  for the purpose of acting as an advisory body to the

30  department.  Specifically, the duties of the council shall

31  include, but not be limited to:


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                                      CS/HB 4415, Second Engrossed



  1         (a)  Recommending standards and credentialing

  2  requirements for health care providers rendering health

  3  services to Children's Medical Services network participants.

  4         (b)  Making recommendations to the Director of the

  5  Division of Children's Medical Services concerning the

  6  selection of health care providers for the Children's Medical

  7  Services network.

  8         (c)  Reviewing and making recommendations concerning

  9  network health care provider or participant disputes that are

10  brought to the attention of the advisory council.

11         (d)  Providing input to the Children's Medical Services

12  program on the policies governing the Children's Medical

13  Services network.

14         (e)  Reviewing the financial reports and financial

15  status of the network and making recommendations concerning

16  the methods of payment and cost controls for the network.

17         (f)  Reviewing and recommending the scope of benefits

18  for the network.

19         (g)  Reviewing network performance measures and

20  outcomes and making recommendations for improvements to the

21  network and its maintenance and collection of data and

22  information.

23         (2)  The council shall be composed of 12 members

24  representing the private health care provider sector, families

25  with children who have special health care needs, the Agency

26  for Health Care Administration, the Department of Insurance,

27  the Florida Chapter of the American Academy of Pediatrics, an

28  academic health center pediatric program, and the health

29  insurance industry.  Members shall be appointed for 4-year,

30  staggered terms.  In no case shall an employee of the

31  Department of Health serve as a member or as an ex officio


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                                      CS/HB 4415, Second Engrossed



  1  member of the advisory council.  A vacancy shall be filled for

  2  the remainder of the unexpired term in the same manner as the

  3  original appointment.  A member may not be appointed to more

  4  than two consecutive terms.  However, a member may be

  5  reappointed after being off the council for at least 2 years.

  6         (3)  Members shall receive no compensation, but shall

  7  be reimbursed for per diem and travel expenses in accordance

  8  with the provisions of s. 112.061.

  9         Section 24.  Section 391.091, Florida Statutes, is

10  renumbered as section 391.222, Florida Statutes, and amended

11  to read:

12         391.222 391.091  Cardiac Advisory Council.--

13         (1)(a)  The secretary of the department may appoint a

14  Cardiac Advisory Council for the purpose of acting as the

15  advisory body to the Division of Children's Medical Services

16  Program Office in the delivery of cardiac services to

17  children. Specifically, the duties of the council shall

18  include, but not be limited to:

19         (a)1.  Recommending standards for personnel and

20  facilities rendering cardiac services for the Division of

21  Children's Medical Services;

22         (b)2.  Receiving reports of the periodic review of

23  cardiac personnel and facilities to determine if established

24  standards for the Division of Children's Medical Services

25  cardiac services are met;

26         (c)3.  Making recommendations to the division

27  Children's Medical Services staff director as to the approval

28  or disapproval of reviewed personnel and facilities;

29         (d)4.  Making recommendations as to the intervals for

30  reinspection of approved personnel and facilities; and

31


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                                      CS/HB 4415, Second Engrossed



  1         (e)5.  Providing input to the Division of Children's

  2  Medical Services on all aspects of Children's Medical Services

  3  cardiac programs, including the rulemaking process.

  4         (2)  The council shall be composed of eight members

  5  with technical expertise in cardiac medicine.  Members shall

  6  be appointed for 4-year, staggered terms. In no case shall an

  7  employee of the Department of Health serve as a member or as

  8  an ex officio member of the advisory council. A vacancy shall

  9  be filled for the remainder of the unexpired term in the same

10  manner as the original appointment.  A member may not be

11  appointed to more than two consecutive terms.  However, a

12  member may be reappointed after being off the council for at

13  least 2 years.

14         (3)(b)  Members shall receive no compensation, but

15  shall be reimbursed for per diem and travel expenses in

16  accordance with the provisions of s. 112.061.

17         (2)  The Cardiac Advisory Council shall meet at the

18  call of the chair, at the request of a majority of its

19  membership, or at the call of the staff director of the

20  Children's Medical Services Program Office, but no more

21  frequently than quarterly.  Minutes shall be recorded for all

22  meetings of such council and shall be kept on file in the

23  Children's Medical Services Program Office.

24         (3)  No later than December 1 of each year preceding a

25  legislative session in which a biennial budget will be

26  adopted, the department shall present a summary report to the

27  President of the Senate and the Speaker of the House of

28  Representatives documenting compliance with this act and the

29  accomplishments and expenditures of the Cardiac Advisory

30  Council.

31


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                                      CS/HB 4415, Second Engrossed



  1         Section 25.  Section 391.223, Florida Statutes, is

  2  created to read:

  3         391.223  Technical advisory panels.--The secretary of

  4  the department may establish technical advisory panels to

  5  assist the Division of Children's Medical Services in

  6  developing specific policies and procedures for the Children's

  7  Medical Services program.

  8         Section 26.  Section 391.301, Florida Statutes, is

  9  amended to read:

10         391.301  Developmental evaluation and intervention

11  programs; legislative findings and intent.--

12         (1)  The Legislature finds that the high-risk and

13  disabled newborn infants in this state need in-hospital and

14  outpatient developmental evaluation and intervention and that

15  their families need training and support services. The

16  Legislature further finds that there is an identifiable and

17  increasing number of infants who need developmental evaluation

18  and intervention and family support due to the fact that

19  increased numbers of low-birthweight and sick full-term

20  newborn infants are now surviving because of due to the

21  advances in neonatal intensive care medicine; increased

22  numbers of medically involved infants are remaining

23  inappropriately in hospitals because their parents lack the

24  confidence or skills to care for these infants without

25  support; and increased numbers of infants are at risk due to

26  parent risk factors, such as substance abuse, teenage

27  pregnancy, and other high-risk conditions.

28         (2)  It is the intent of the Legislature to establish

29  developmental evaluation and intervention services programs at

30  all hospitals providing Level II or Level III neonatal

31  intensive care services, in order that families with high-risk


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                                      CS/HB 4415, Second Engrossed



  1  or disabled infants may gain the services and skills they need

  2  to support their infants.

  3         (3)  It is the intent of the Legislature to provide a

  4  statewide coordinated program to screen, diagnose, and manage

  5  high-risk infants identified as hearing-impaired. The program

  6  shall develop criteria to identify infants who are at risk of

  7  having hearing impairments, and shall ensure that all parents

  8  or guardians of newborn infants are provided with materials

  9  regarding hearing impairments prior to discharge of the

10  newborn infants from the hospital.

11         (4)  It is the intent of the Legislature that a

12  methodology be developed to integrate information on infants

13  with potentially disabling conditions with other early

14  intervention programs, including Part C of Pub. L. No. 105-17

15  and the reporting system to be established under the Healthy

16  Start program.

17         Section 27.  Section 391.303, Florida Statutes, is

18  amended to read:

19         391.303  Program requirements.--

20         (1)  A Developmental evaluation and intervention

21  services program shall be established at each hospital that

22  provides Level II or Level III neonatal intensive care

23  services. Program services shall be made available to an

24  infant or toddler identified as being at risk for

25  developmental disabilities, or identified as medically

26  involved, who, along with his or her family, would benefit

27  from program services. Program services shall be made

28  available to infants or toddlers in a Level II or Level III

29  neonatal intensive care unit or in a pediatric intensive care

30  unit, infants who are identified as being at high risk for

31  hearing impairment or who are hearing-impaired, or infants who


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                                      CS/HB 4415, Second Engrossed



  1  have a metabolic or genetic disorder. The developmental

  2  evaluation and intervention programs are subject to the

  3  availability of moneys and the limitations established by the

  4  General Appropriations Act or chapter 216. Hearing screening,

  5  evaluation and referral services, and initial developmental

  6  assessments services shall be provided to each infant or

  7  toddler. Other program services may be provided to an infant

  8  or toddler, and the family of the infant or toddler, who do

  9  not meet the financial eligibility criteria for the Children's

10  Medical Services program based on the availability of funding,

11  including insurance and fees.

12         (2)  Each developmental evaluation and intervention

13  program shall have a program director, a medical director, and

14  necessary staff to carry out the program. The program director

15  shall establish and coordinate the developmental evaluation

16  and intervention program. The program shall include, but is

17  not limited to:

18         (a)  In-hospital evaluation and intervention services,

19  parent support and training, and family support planning and

20  case management.

21         (b)  Screening and evaluation services to identify each

22  infant at risk of hearing impairment, and a medical and

23  educational followup and care management program for an infant

24  who is identified as hearing-impaired, with management

25  beginning as soon after birth as practicable. The medical

26  management program must include the genetic evaluation of an

27  infant suspected to have genetically determined deafness and

28  an evaluation of the relative risk.

29         (c)  Regularly held multidisciplinary team meetings to

30  develop and update the family support plan. In addition to the

31  family, a multidisciplinary team may include a physician,


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                                      CS/HB 4415, Second Engrossed



  1  physician assistant, psychologist, psychotherapist, educator,

  2  social worker, nurse, physical or occupational therapist,

  3  speech pathologist, developmental evaluation and intervention

  4  program director, case manager, and others who are involved

  5  with the in-hospital and posthospital discharge care plan, and

  6  anyone the family wishes to include as a member of the team.

  7  The family support plan is a written plan that describes the

  8  infant or toddler, and the therapies and services the infant

  9  or toddler and his or her family need, and the intended

10  outcomes of the services.

11         (d)  Discharge planning by the multidisciplinary team,

12  including referral and followup to primary medical care and

13  modification of the family support plan.

14         (e)  Education and training for neonatal and pediatric

15  intensive care services staff, volunteers, and others, as

16  needed, in order to expand the services provided to high-risk,

17  developmentally disabled, medically involved, or

18  hearing-impaired infants and toddlers and their families.

19         (f)  Followup intervention services after hospital

20  discharge, to aid the family and the high-risk,

21  developmentally disabled, medically involved, or

22  hearing-impaired infant's or toddler's transition into the

23  community. These services shall include, but are not limited

24  to, home intervention services and other intervention

25  services, both contractual and voluntary. Support services

26  shall be coordinated at the request of the family and within

27  the context of the family support plan.

28         (g)  Referral to and coordination of services with

29  community providers.

30         (h)  Educational materials about infant care, infant

31  growth and development, community resources, medical


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                                      CS/HB 4415, Second Engrossed



  1  conditions and treatments, and family advocacy. Materials

  2  regarding hearing impairments shall be provided to each parent

  3  or guardian of a hearing-impaired infant or toddler.

  4         (i)  Involvement of the parents and guardians of each

  5  identified high-risk, developmentally disabled, medically

  6  involved, or hearing-impaired infant or toddler.

  7         Section 28.  Paragraph (a) of subsection (1) of section

  8  391.304, Florida Statutes, is amended to read:

  9         391.304  Program coordination.--

10         (1)  The Department of Health shall:

11         (a)  Coordinate with the Department of Education, the

12  Offices of Prevention, Early Assistance, and Child

13  Development, the Florida Interagency Coordinating Council for

14  Infants and Toddlers, and the State Coordinating Council for

15  Early Childhood Services in planning and administering ss.

16  391.301-391.307. This coordination shall be in accordance with

17  s. 411.222.

18         Section 29.  Subsection (1) of section 391.305, Florida

19  Statutes, is amended to read:

20         391.305  Program standards; rules.--The Department of

21  Health shall adopt rules for the administration of the

22  developmental evaluation and intervention program. The rules

23  shall specify standards for the development and operation of

24  the program, including, but not limited to:

25         (1)  Standards governing the eligibility need for

26  program services and the requirements of the population to be

27  served.

28         Section 30.  Subsection (1) of section 391.307, Florida

29  Statutes, is amended to read:

30         391.307  Program review.--

31


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                                      CS/HB 4415, Second Engrossed



  1         (1)  At least annually during the contract period, the

  2  Department of Health shall evaluate each developmental

  3  evaluation and intervention program. The department shall

  4  develop criteria to evaluate child and family outcomes patient

  5  outcome, program participation, service coordination case

  6  management, and program effectiveness.

  7         Section 31.  Subsection (13) of section 408.701,

  8  Florida Statutes, is amended to read:

  9         408.701  Community health purchasing; definitions.--As

10  used in ss. 408.70-408.706, the term:

11         (13)  "Health care provider" or "provider" means a

12  state-licensed or state-authorized facility, a facility

13  principally supported by a local government or by funds from a

14  charitable organization that holds a current exemption from

15  federal income tax under s. 501(c)(3) of the Internal Revenue

16  Code, a licensed practitioner, a county health department

17  established under part I of chapter 154, a patient care center

18  described in s. 391.031, a prescribed pediatric extended care

19  center defined in s. 400.902 391.202, a federally supported

20  primary care program such as a migrant health center or a

21  community health center authorized under s. 329 or s. 330 of

22  the United States Public Health Services Act that delivers

23  health care services to individuals, or a community facility

24  that receives funds from the state under the Community

25  Alcohol, Drug Abuse, and Mental Health Services Act and

26  provides mental health services to individuals.

27         Section 32.  Section 409.810, Florida Statutes, is

28  created to read:

29         409.810  Short title.--Sections 409.810-409.820 may be

30  cited as the "Florida Kidcare Act."

31


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                                      CS/HB 4415, Second Engrossed



  1         Section 33.  Section 409.811, Florida Statutes, is

  2  created to read:

  3         409.811  Definitions.--As used in ss. 409.810-409.820,

  4  the term:

  5         (1)  "Actuarially equivalent" means that:

  6         (a)  The aggregate value of the benefits included in

  7  health benefits coverage is equal to the value of the benefits

  8  in the benchmark benefit plan; and

  9         (b)  The benefits included in health benefits coverage

10  are substantially similar to the benefits included in the

11  benchmark benefit plan, except that preventive health services

12  must be the same as in the benchmark benefit plan.

13         (2)  "Agency" means the Agency for Health Care

14  Administration.

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

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

17  chapter 743, who applies for determination of eligibility for

18  health benefits coverage under ss. 409.810-409.820.

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

20  of health benefits coverage established in s. 409.815.

21         (5)  "Child" means any person under 19 years of age.

22         (6)  "Child with special health care needs" means a

23  child whose serious or chronic physical or developmental

24  condition requires extensive preventive and maintenance care

25  beyond that required by typically healthy children. Health

26  care utilization by such a child exceeds the statistically

27  expected usage of the normal child adjusted for chronological

28  age, and such a child often needs complex care requiring

29  multiple providers, rehabilitation services, and specialized

30  equipment in a number of different settings.

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                                      CS/HB 4415, Second Engrossed



  1         (7)  "Children's Medical Services network" or "network"

  2  means a statewide managed care service system as defined in s.

  3  391.021(1).

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

  5  premiums for a health insurance plan that spreads financial

  6  risk across a large population and allows adjustments only for

  7  age, gender, family composition, and geographic area.

  8         (9)  "Department" means the Department of Health.

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

10  eligible for and is receiving coverage under ss.

11  409.810-409.820.

12         (11)  "Enrollment ceiling" means the maximum number of

13  children receiving premium assistance payments, excluding

14  children enrolled in Medicaid, that may be enrolled at any

15  time in the Florida Kidcare program. The maximum number shall

16  be established annually in the General Appropriations Act or

17  by general law.

18         (12)  "Family" means the group or the individuals whose

19  income is considered in determining eligibility for the

20  Florida Kidcare program. The family includes a child with a

21  custodial parent or caretaker relative who resides in the same

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

23  disability of nonage has been removed under chapter 743, the

24  child. The family may also include other individuals whose

25  income and resources are considered in whole or in part in

26  determining eligibility of the child.

27         (13)  "Family income" means cash received at periodic

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

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

30  money that would have been counted as income under the Aid to

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                                      CS/HB 4415, Second Engrossed



  1  Families with Dependent Children (AFDC) state plan in effect

  2  prior to August 22, 1996.

  3         (14)  "Guarantee issue" means that health benefits

  4  coverage must be offered to an individual regardless of the

  5  individual's health status, preexisting condition, or claims

  6  history.

  7         (15)  "Health benefits coverage" means protection that

  8  provides payment of benefits for covered health care services

  9  or that otherwise provides, either directly or through

10  arrangements with other persons, covered health care services

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

12  fixed-sum basis.

13         (16)  "Health insurance plan" means health benefits

14  coverage under the following:

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

16  maintenance organization or authorized health insurer, except

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

18  specified disease, or specified accident; hospital indemnity;

19  accident only; limited benefit convalescent care; Medicare

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

21  disability income; coverage issued as a supplement to another

22  health plan; workers' compensation liability or other

23  insurance; or motor vehicle medical payment only; or

24         (b)  An employee welfare benefit plan that includes

25  health benefits established under the Employee Retirement

26  Income Security Act of 1974, as amended.

27         (17)  "Medicaid" means the medical assistance program

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

29  regulations thereunder, and ss. 409.901-409.920, as

30  administered in this state by the agency.

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                                      CS/HB 4415, Second Engrossed



  1         (18)  "Medically necessary" means the use of any

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

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

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

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

  6  or results in illness or infirmity and which is:

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

  8  treatment of the enrollee's condition;

  9         (b)  Provided in accordance with generally accepted

10  standards of medical practice;

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

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

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

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

15  and

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

17  care specialty involved as effective, appropriate, and

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

19  condition.

20         (19)  "Medikids" means a component of the Florida

21  Kidcare program of medical assistance authorized by Title XXI

22  of the Social Security Act, and regulations thereunder, and s.

23  409.8132, as administered in the state by the agency.

24         (20)  "Preexisting condition exclusion" means, with

25  respect to coverage, a limitation or exclusion of benefits

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

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

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

29  treatment was recommended or received before such date.

30

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                                      CS/HB 4415, Second Engrossed



  1         (21)  "Premium" means the entire cost of a health

  2  insurance plan, including the administration fee or the risk

  3  assumption charge.

  4         (22)  "Premium assistance payment" means the monthly

  5  consideration paid by the agency per enrollee in the Florida

  6  Kidcare program towards health insurance premiums.

  7         (23)  "Program" means the Florida Kidcare program, the

  8  medical assistance program authorized by Title XXI of the

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

10  of 1997.

11         (24)  "Qualified alien" means an alien as defined in s.

12  431 of the Personal Responsibility and Work Opportunity

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

14         (25)  "Resident" means a United States citizen, or

15  qualified alien, who is domiciled in this state.

16         (26)  "Rural county" means a county having a population

17  density of less than 100 persons per square mile, or a county

18  defined by the most recent United States Census as rural, in

19  which there is no prepaid health plan participating in the

20  Medicaid program as of July 1, 1998.

21         (27)  "Substantially similar" means that, with respect

22  to additional services as defined in s. 2103(c)(2) of Title

23  XXI of the Social Security Act, these services must have an

24  actuarial value equal to at least 75 percent of the actuarial

25  value of the coverage for that service in the benchmark

26  benefit plan and, with respect to the basic services as

27  defined in s. 2103(c)(1) of Title XXI of the Social Security

28  Act, these services must be the same as the services in the

29  benchmark benefit plan.

30         Section 34.  Section 409.812, Florida Statutes, is

31  created to read:


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                                      CS/HB 4415, Second Engrossed



  1         409.812  Program created; purpose.--The Florida Kidcare

  2  program is created to provide a defined set of health benefits

  3  to previously uninsured, low-income children through the

  4  establishment of a variety of affordable health benefits

  5  coverage options from which families may select coverage and

  6  through which families may contribute financially to the

  7  health care of their children.

  8         Section 35.  Section 409.813, Florida Statutes, is

  9  created to read:

10         409.813  Program components; entitlement and

11  nonentitlement.--The Florida Kidcare program includes health

12  benefits coverage provided to children through:

13         (1)  Medicaid;

14         (2)  Medikids as created in s. 409.8132;

15         (3)  The Florida Healthy Kids Corporation as created in

16  s. 624.91;

17         (4)  Employer-sponsored group health insurance plans

18  approved under ss. 409.810-409.820; and

19         (5)  The Children's Medical Services network

20  established in chapter 391.

21

22  Except for coverage under the Medicaid program, coverage under

23  the Florida Kidcare program is not an entitlement.  No cause

24  of action shall arise against the state, the department, the

25  Department of Children and Family Services, or the agency for

26  failure to make health services available to any person under

27  ss. 409.810-409.820.

28         Section 36.  Section 409.8132, Florida Statutes, is

29  created to read:

30         409.8132  Medikids program component.--

31


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                                      CS/HB 4415, Second Engrossed



  1         (1)  PROGRAM COMPONENT CREATED; PURPOSE.--The Medikids

  2  program component is created in the Agency for Health Care

  3  Administration to provide health care services under the

  4  Florida Kidcare program to eligible children using the

  5  administrative structure and provider network of the Medicaid

  6  program.

  7         (2)  ADMINISTRATION.--The director of the agency shall

  8  appoint an administrator of the Medikids program component,

  9  which shall be located in the Division of State Health

10  Purchasing. The Agency for Health Care Administration is

11  designated as the state agency authorized to make payments for

12  medical assistance and related services for the Medikids

13  program component of the Florida Kidcare program. Payments

14  shall be made, subject to any limitations or directions in the

15  General Appropriations Act, only for covered services provided

16  to eligible children by qualified health care providers under

17  the Florida Kidcare program.

18         (3)  INSURANCE LICENSURE NOT REQUIRED.--The Medikids

19  program component shall not be subject to the licensing

20  requirements of the Florida Insurance Code or rules of the

21  Department of Insurance.

22         (4)  APPLICABILITY OF LAWS RELATING TO MEDICAID.--The

23  provisions of ss. 409.902, 409.905, 409.906, 409.907, 409.908,

24  409.910, 409.912, 409.9121, 409.9122, 409.9123, 409.9124,

25  409.9127, 409.9128, 409.913, 409.916, 409.919, 409.920, and

26  409.9205 apply to the administration of the Medikids program

27  component of the Florida Kidcare program, except that s.

28  409.9122 applies to Medikids as modified by the provisions of

29  subsection (7).

30

31


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                                      CS/HB 4415, Second Engrossed



  1         (5)  BENEFITS.--Benefits provided under the Medikids

  2  program component shall be the same benefits provided to

  3  children as specified in ss. 409.905 and 409.906.

  4         (6)  ELIGIBILITY.--

  5         (a)  A child who is under the age of 5 years is

  6  eligible to enroll in the Medikids program component of the

  7  Florida Kidcare program, if the child is a member of a family

  8  that has a family income which exceeds the Medicaid applicable

  9  income level as specified in s. 409.903, but which is equal to

10  or below 200 percent of the current federal poverty level.  In

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

12  not required. A child who is eligible for Medikids may elect

13  to enroll in Florida Healthy Kids coverage or

14  employer-sponsored group coverage.  However, a child who is

15  eligible for Medikids may participate in the Florida Healthy

16  Kids program only if the child has a sibling participating in

17  the Florida Healthy Kids program and the child's county of

18  residence permits such enrollment.

19         (b)  The provisions of s. 409.814(3), (4), and (5)

20  shall be applicable to the Medikids program.

21         (7)  ENROLLMENT.--Enrollment in the Medikids program

22  component may only occur during periodic open enrollment

23  periods as specified by the agency. During the first 12 months

24  of the program, there shall be at least one, but no more than

25  three, open enrollment periods. The initial open enrollment

26  period shall be for 90 days, and subsequent open enrollment

27  periods during the first year of operation of the program

28  shall be for 30 days. After the first year of the program, the

29  agency shall determine the frequency and duration of open

30  enrollment periods. An applicant may apply for enrollment in

31  the Medikids program component and proceed through the


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                                      CS/HB 4415, Second Engrossed



  1  eligibility determination process at any time throughout the

  2  year. However, enrollment in Medikids shall not begin until

  3  the next open enrollment period; and a child may not receive

  4  services under the Medikids program until the child is

  5  enrolled in a managed care plan or MediPass. In addition, once

  6  determined eligible, an applicant may receive choice

  7  counseling and select a managed care plan or MediPass. An

  8  applicant may select MediPass under the Medikids program

  9  component only in counties that have fewer than two managed

10  care plans available to serve Medicaid recipients and only if

11  the federal Health Care Financing Administration determines

12  that MediPass constitutes "health insurance coverage" as

13  defined in Title XXI of the Social Security Act.

14         (8)  SPECIAL ENROLLMENT PERIODS.--The agency shall

15  establish a special enrollment period of 30 days' duration for

16  any newborn child who is eligible for Medikids, or for any

17  child who is enrolled in Medicaid if such child loses Medicaid

18  eligibility and becomes eligible for Medikids, or for any

19  child who is enrolled in Medikids if such child moves to

20  another county that is not within the coverage area of the

21  child's Medikids managed care plan or MediPass provider.

22         (9)  PENALTIES FOR VOLUNTARY CANCELLATION.--The agency

23  shall establish enrollment criteria that must include

24  penalties or waiting periods of not fewer than 60 days for

25  reinstatement of coverage upon voluntary cancellation for

26  nonpayment of premiums.

27         Section 37.  Section 409.8134, Florida Statutes, is

28  created to read:

29         409.8134  Program enrollment and expenditure

30  ceilings.--

31


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                                      CS/HB 4415, Second Engrossed



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

  2  be placed on annual federal and state expenditures and on

  3  enrollment in the Florida Kidcare program as provided each

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

  5  consultation with the Department of Health, may propose to

  6  increase the enrollment ceiling in accordance with chapter

  7  216.

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

  9  Social Services Estimating Conference determines that there is

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

11  insufficient funds to finance the current or projected

12  enrollment in the Florida Kidcare program, all additional

13  enrollment must cease and additional enrollment may not resume

14  until sufficient funds are available to finance such

15  enrollment.

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

17  needed to project Florida Kidcare program enrollment,

18  including participation rates, caseloads, and expenditures.

19  The agency shall report the caseload and expenditure trends to

20  the Social Services Estimating Conference in accordance with

21  chapter 216.

22         Section 38.  Section 409.8135, Florida Statutes, is

23  created to read:

24         409.8135  Behavioral health services.--In order to

25  ensure a high level of integration of physical and behavioral

26  health care and to meet the more intensive treatment needs of

27  enrollees with the most serious emotional disturbances or

28  substance abuse problems, the Department of Health shall

29  contract with the Department of Children and Family Services

30  to provide behavioral health services to non-Medicaid-eligible

31  children with special health care needs. The Department of


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                                      CS/HB 4415, Second Engrossed



  1  Children and Family Services, in consultation with the

  2  Department of Health and the agency, is authorized to

  3  establish the following:

  4         (1)  The scope of behavioral health services, including

  5  duration and frequency.

  6         (2)  Clinical guidelines for referral to behavioral

  7  health services.

  8         (3)  Behavioral health services standards.

  9         (4)  Performance-based measures and outcomes for

10  behavioral health services.

11         (5)  Practice guidelines for behavioral health services

12  to ensure cost-effective treatment and to prevent unnecessary

13  expenditures.

14         (6)  Rules to implement this section.

15         Section 39.  Section 409.814, Florida Statutes, is

16  created to read:

17         409.814  Eligibility.--A child whose family income is

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

19  eligible for the Florida Kidcare program as provided in this

20  section. In determining the eligibility of such a child, an

21  assets test is not required.

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

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

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

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

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

27  is eligible for the Florida Kidcare program, may obtain

28  coverage under any of the other types of health benefits

29  coverage authorized in ss. 409.810-409.820 if such coverage is

30  approved and available in the county in which the child

31  resides.  However, a child who is eligible for Medikids may


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                                      CS/HB 4415, Second Engrossed



  1  participate in the Florida Healthy Kids program only if the

  2  child has a sibling participating in the Florida Healthy Kids

  3  program and the child's county of residence permits such

  4  enrollment.

  5         (3)  A child who is eligible for the Florida Kidcare

  6  program who is a child with special health care needs, as

  7  determined through a risk-screening instrument, is eligible

  8  for health benefits coverage from and may be referred to the

  9  Children's Medical Services network.

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

11  premium assistance for health benefits coverage under ss.

12  409.810-409.820, except under Medicaid if the child would have

13  been eligible for Medicaid under s. 409.903 or s. 409.904 as

14  of June 1, 1997:

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

16  health benefit plan on the basis of a family member's

17  employment with a public agency in the state;

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

19  benefit plan or under other health insurance coverage,

20  excluding coverage provided under the Florida Healthy Kids

21  Corporation as established under s. 624.91;

22         (c)  A child who is seeking premium assistance for

23  employer-sponsored group coverage, if the child has been

24  covered by the same employer's group coverage during the 6

25  months prior to the family's submitting an application for

26  determination of eligibility under the Florida Kidcare

27  program;

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

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

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

31  or a patient in an institution for mental diseases.


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                                      CS/HB 4415, Second Engrossed



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

  2  of the federal poverty level or a child who is excluded under

  3  the provisions of subsection (4) may participate in the

  4  Florida Kidcare program, excluding the Medicaid program, but

  5  is subject to the following provisions:

  6         (a)  The family is not eligible for premium assistance

  7  payments and must pay the full cost of the premium, including

  8  any administrative costs.

  9         (b)  The agency is authorized to place limits on

10  enrollment in Medikids by these children in order to avoid

11  adverse selection.  The number of children participating in

12  Medikids whose family income exceeds 200 percent of the

13  federal poverty level must not exceed 10 percent of total

14  enrollees in the Medikids program.

15         (c)  The board of directors of the Florida Healthy Kids

16  Corporation is authorized to place limits on enrollment of

17  these children in order to avoid adverse selection. In

18  addition, the board is authorized to offer a reduced benefit

19  package to these children in order to limit program costs for

20  such families. The number of children participating in the

21  Florida Healthy Kids program whose family income exceeds 200

22  percent of the federal poverty level must not exceed 10

23  percent of total enrollees in the Florida Healthy Kids

24  program.

25         (d)  Children described in this subsection are not

26  counted in the annual enrollment ceiling for the Florida

27  Kidcare program.

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

29  Florida Kidcare program, the child is eligible for coverage

30  under the program for 6 months without a redetermination or

31  reverification of eligibility, if the family continues to pay


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                                      CS/HB 4415, Second Engrossed



  1  the applicable premium. Effective January 1, 1999, a child who

  2  has not attained the age of 5 and who has been determined

  3  eligible for the Medicaid program is eligible for coverage for

  4  12 months without a redetermination or reverification of

  5  eligibility.

  6         Section 40.  Section 409.815, Florida Statutes, is

  7  created to read:

  8         409.815  Health benefits coverage; limitations.--

  9         (1)  MEDICAID BENEFITS.--For purposes of the Florida

10  Kidcare program, benefits available under Medicaid and

11  Medikids include those goods and services provided under the

12  medical assistance program authorized by Title XIX of the

13  Social Security Act, and regulations thereunder, as

14  administered in this state by the agency. This includes those

15  mandatory Medicaid services authorized under s. 409.905 and

16  optional Medicaid services authorized under s. 409.906,

17  rendered on behalf of eligible individuals by qualified

18  providers, in accordance with federal requirements for Title

19  XIX, subject to any limitations or directions provided for in

20  the General Appropriations Act or chapter 216, and according

21  to methodologies and limitations set forth in agency rules and

22  policy manuals and handbooks incorporated by reference

23  thereto.

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

25  coverage to qualify for premium assistance payments for an

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

27  coverage, except for coverage under Medicaid and Medikids,

28  must include the following minimum benefits, as medically

29  necessary.

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

31  include:


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                                      CS/HB 4415, Second Engrossed



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

  2  the Guidelines for Health Supervision of Children and Youth as

  3  developed by the American Academy of Pediatrics;

  4         2.  Immunizations and injections;

  5         3.  Health education counseling and clinical services;

  6         4.  Vision screening; and

  7         5.  Hearing screening.

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

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

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

11  I of chapter 395, with the following exceptions:

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

13  health benefits coverage provider.

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

15  based on the medical condition of the enrollee in relation to

16  the necessary and appropriate level of care.

17         3.  Room and board may be limited to semiprivate

18  accommodations, unless a private room is considered medically

19  necessary or semiprivate accommodations are not available.

20         4.  Admissions for rehabilitation and physical therapy

21  are limited to 15 days per contract year.

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

23  visits to an emergency room or other licensed facility if

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

25  risk of permanent damage to the enrollee's health. Health

26  maintenance organizations shall comply with the provisions of

27  s. 641.513.

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

29  maternity and newborn care, including prenatal and postnatal

30  care, with the following limitations:

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                                      CS/HB 4415, Second Engrossed



  1         1.  Coverage may be limited to the fee for vaginal

  2  deliveries; and

  3         2.  Initial inpatient care for newborn infants of

  4  enrolled adolescents shall be covered, including normal

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

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

  7  3 days following birth.

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

  9  include pretransplant, transplant, and postdischarge services

10  and treatment of complications after transplantation for

11  transplants deemed necessary and appropriate within the

12  guidelines set by the Organ Transplant Advisory Council under

13  s. 381.0602 or the Bone Marrow Transplant Advisory Panel under

14  s. 627.4236.

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

16  preventive, diagnostic, therapeutic, palliative care, and

17  other services provided to an enrollee in the outpatient

18  portion of a health facility licensed under chapter 395,

19  except for the following limitations:

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

21  health benefits coverage provider; and

22         2.  Treatment for temporomandibular joint disease (TMJ)

23  is specifically excluded.

24         (g)  Behavioral health services.--

25         1.  Mental health benefits include:

26         a.  Inpatient services, limited to not more than 30

27  inpatient days per contract year for psychiatric admissions,

28  or residential services in facilities licensed under s.

29  394.875(8) or s. 395.003 in lieu of inpatient psychiatric

30  admissions; however, a minimum of 10 of the 30 days shall be

31


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                                      CS/HB 4415, Second Engrossed



  1  available only for inpatient psychiatric services when

  2  authorized by a physician; and

  3         b.  Outpatient services, including outpatient visits

  4  for psychological or psychiatric evaluation, diagnosis, and

  5  treatment by a licensed mental health professional, limited to

  6  a maximum of 40 outpatient visits each contract year.

  7         2.  Substance abuse services include:

  8         a.  Inpatient services, limited to not more than 7

  9  inpatient days per contract year for medical detoxification

10  only and 30 days of residential services; and

11         b.  Outpatient services, including evaluation,

12  diagnosis, and treatment by a licensed practitioner, limited

13  to a maximum of 40 outpatient visits per contract year.

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

15  include equipment and devices that are medically indicated to

16  assist in the treatment of a medical condition and

17  specifically prescribed as medically necessary, with the

18  following limitations:

19         1.  Low-vision and telescopic aides are not included.

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

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

22  the enrollee changes.

23         3.  Hearing aids shall be covered only when medically

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

25         4.  Covered prosthetic devices include artificial eyes

26  and limbs, braces, and other artificial aids.

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

28  include services and procedures rendered to an enrollee when

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

30  conditions, including care rendered by health practitioners

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                                      CS/HB 4415, Second Engrossed



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

  2  exceptions:

  3         1.  Chiropractic services shall be provided in the same

  4  manner as in the Florida Medicaid program.

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

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

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

  8  prescribed home visits by both registered and licensed

  9  practical nurses to provide skilled nursing services on a

10  part-time intermittent basis, subject to the following

11  limitations:

12         1.  Coverage may be limited to include skilled nursing

13  services only;

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

15  be excluded; and

16         3.  Private duty nursing is limited to circumstances

17  where such care is medically necessary.

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

19  reasonable and necessary services for palliation or management

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

21  exceptions:

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

23  enrollee, other services that treat the terminal condition

24  will not be covered; and

25         2.  Services required for conditions totally unrelated

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

27  services are included in this section.

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

29  include diagnostic testing, including clinical radiologic,

30  laboratory, and other diagnostic tests.

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                                      CS/HB 4415, Second Engrossed



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

  2  include regular nursing services, rehabilitation services,

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

  4  appliances and equipment furnished by the facility, with the

  5  following limitations:

  6         1.  All admissions must be authorized by the health

  7  benefits coverage provider.

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

  9  based on the medical condition of the enrollee in relation to

10  the necessary and appropriate level of care, but is limited to

11  not more than 100 days per contract year.

12         3.  Room and board may be limited to semiprivate

13  accommodations, unless a private room is considered medically

14  necessary or semiprivate accommodations are not available.

15         4.  Specialized treatment centers and independent

16  kidney disease treatment centers are excluded.

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

18  are excluded.

19         6.  Admissions for rehabilitation and physical therapy

20  are limited to 15 days per contract year.

21         (n)  Prescribed drugs.--

22         1.  Coverage shall include drugs prescribed for the

23  treatment of illness or injury when prescribed by a licensed

24  health practitioner acting within the scope of his or her

25  practice.

26         2.  Prescribed drugs may be limited to generics if

27  available and brand name products if a generic substitution is

28  not available, unless the prescribing licensed health

29  practitioner indicates that a brand name is medically

30  necessary.

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                                      CS/HB 4415, Second Engrossed



  1         3.  Prescribed drugs covered under this section shall

  2  include all prescribed drugs covered under the Florida

  3  Medicaid program.

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

  5  rehabilitative services, including occupational, physical,

  6  respiratory, and speech therapies, with the following

  7  limitations:

  8         1.  Services must be for short-term rehabilitation

  9  where significant improvement in the enrollee's condition will

10  result; and

11         2.  Services shall be limited to not more than 24

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

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

14  treatment.

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

16  emergency transportation required in response to an emergency

17  situation.

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

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

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

21  covered child.

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

23  with s. 409.816.

24         (s)  Exclusions.--

25         1.  Experimental or investigational procedures that

26  have not been clinically proven by reliable evidence are

27  excluded;

28         2.  Services performed for cosmetic purposes only or

29  for the convenience of the enrollee are excluded; and

30

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                                      CS/HB 4415, Second Engrossed



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

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

  3  act of rape or incest.

  4         (t)  Enhancements to minimum requirements.--

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

  6  included in any health benefits coverage, other than Medicaid

  7  or Medikids coverage, offered under ss. 409.810-409.820.

  8  Health benefits coverage may include additional benefits not

  9  included under this subsection, but may not include benefits

10  excluded under paragraph (s).

11         2.  Health benefits coverage may extend any limitations

12  beyond the minimum benefits described in this section.

13

14  Except for the Children's Medical Services network, the agency

15  may not increase the premium assistance payment for either

16  additional benefits provided beyond the minimum benefits

17  described in this section or the imposition of less

18  restrictive service limitations.

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

20  insurers, health maintenance organizations, and their agents

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

22  except for any such provisions waived in this section.

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

24  requiring coverage for a specific health care service or

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

26  consideration of a specific category of licensed health care

27  practitioner, does not apply to a health insurance plan policy

28  or contract offered or delivered under ss. 409.810-409.820

29  unless that law is made expressly applicable to such policies

30  or contracts.

31


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                                      CS/HB 4415, Second Engrossed



  1         2.  Notwithstanding chapter 641, a health maintenance

  2  organization may issue contracts providing benefits equal to,

  3  exceeding, or actuarially equivalent to the benchmark benefit

  4  plan authorized by this section and may pay providers located

  5  in a rural county negotiated fees or Medicaid reimbursement

  6  rates for services provided to enrollees who are residents of

  7  the rural county.

  8         Section 41.  Section 409.816, Florida Statutes, is

  9  created to read:

10         409.816  Limitations on premiums and cost-sharing.--The

11  following limitations on premiums and cost-sharing are

12  established for the program.

13         (1)  Enrollees who receive coverage under the Medicaid

14  program may not be required to pay:

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

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

17  charges.

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

19  to or below 150 percent of the federal poverty level, who are

20  not receiving coverage under the Medicaid program, may not be

21  required to pay:

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

23  exceed the maximum monthly charge permitted under s.

24  1916(b)(1) of the Social Security Act; or

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

26  charges that exceed a nominal amount, as determined consistent

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

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

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

30  age-appropriate immunizations, and routine hearing and vision

31  screenings.


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                                      CS/HB 4415, Second Engrossed



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

  2  150 percent of the federal poverty level, who are not

  3  receiving coverage under the Medicaid program or who are not

  4  eligible under s. 409.814(5), may be required to pay

  5  enrollment fees, premiums, copayments, deductibles,

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

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

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

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

10  deductibles, coinsurance, or similar charges may not be

11  imposed for preventive services, including well-baby and

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

13  hearing and vision screenings.

14         Section 42.  Section 409.817, Florida Statutes, is

15  created to read:

16         409.817  Approval of health benefits coverage;

17  financial assistance.--In order for health insurance coverage

18  to qualify for premium assistance payments for an eligible

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

20  must:

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

22  s. 409.818 as meeting, exceeding, or being actuarially

23  equivalent to the benchmark benefit plan;

24         (2)  Be guarantee issued;

25         (3)  Be community rated;

26         (4)  Not impose any preexisting condition exclusion for

27  covered benefits; however, group health insurance plans may

28  permit the imposition of a preexisting condition exclusion,

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

30         (5)  Comply with the applicable limitations on premiums

31  and cost-sharing in s. 409.816;


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                                      CS/HB 4415, Second Engrossed



  1         (6)  Comply with the quality assurance and access

  2  standards developed under s. 409.820; and

  3         (7)  Establish periodic open enrollment periods, which

  4  may not occur more frequently than quarterly.

  5         Section 43.  Section 409.8175, Florida Statutes, is

  6  created to read:

  7         409.8175  Delivery of services in rural counties.--A

  8  health maintenance organization or a health insurer may

  9  reimburse providers located in a rural county according to the

10  Medicaid fee schedule for services provided to enrollees in

11  rural counties if the provider agrees to accept such fee

12  schedule.

13         Section 44.  Section 409.8177, Florida Statutes, is

14  created to read:

15         409.8177  Program evaluation.--The agency, in

16  consultation with the Department of Health, the Department of

17  Children and Family Services, and the Florida Healthy Kids

18  Corporation, shall by January 1 of each year submit to the

19  Governor and the Legislature a report of the Florida Kidcare

20  program. In addition to the items specified under s. 2108 of

21  Title XXI of the Social Security Act, the report shall include

22  an assessment of crowd-out and access to health care, as well

23  as the following:

24         (1)  An assessment of the operation of the program,

25  including the progress made in reducing the number of

26  uncovered low-income children.

27         (2)  An assessment of the effectiveness in increasing

28  the number of children with creditable health coverage.

29         (3)  The characteristics of the children and families

30  assisted under the program, including ages of the children,

31  family income, and access to or coverage by other health


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                                      CS/HB 4415, Second Engrossed



  1  insurance prior to the program and after disenrollment from

  2  the program.

  3         (4)  The quality of health coverage provided, including

  4  the types of benefits provided.

  5         (5)  The amount and level, including payment of part or

  6  all of any premium, of assistance provided.

  7         (6)  The average length of coverage of a child under

  8  the program.

  9         (7)  The program's choice of health benefits coverage

10  and other methods used for providing child health assistance.

11         (8)  The sources of nonfederal funding used in the

12  program.

13         (9)  An assessment of the effectiveness of Medikids,

14  Children's Medical Services network, and other public and

15  private programs in the state in increasing the availability

16  of affordable quality health insurance and health care for

17  children.

18         (10)  A review and assessment of state activities to

19  coordinate the program with other public and private programs.

20         (11)  An analysis of changes and trends in the state

21  that affect the provision of health insurance and health care

22  to children.

23         (12)  A description of any plans the state has for

24  improving the availability of health insurance and health care

25  for children.

26         (13)  Recommendations for improving the program.

27         (14)  Other studies as necessary.

28         Section 45.  Section 409.818, Florida Statutes, is

29  created to read:

30

31


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                                      CS/HB 4415, Second Engrossed



  1         409.818  Administration.--In order to implement ss.

  2  409.810-409.820, the following agencies shall have the

  3  following duties:

  4         (1)  The Department of Children and Family Services

  5  shall:

  6         (a)  Develop a simplified eligibility application

  7  mail-in form to be used for determining the eligibility of

  8  children for coverage under the Florida Kidcare program, in

  9  consultation with the agency, the Department of Health, and

10  the Florida Healthy Kids Corporation. The simplified

11  eligibility application form must include an item that

12  provides an opportunity for the applicant to indicate whether

13  coverage is being sought for a child with special health care

14  needs. Families applying for children's Medicaid coverage must

15  also be able to use the simplified application form without

16  having to pay a premium.

17         (b)  Establish and maintain the eligibility

18  determination process under the program except as specified in

19  subsection (5). The department shall directly, or through the

20  services of a contracted third-party administrator, establish

21  and maintain a process for determining eligibility of children

22  for coverage under the program. The eligibility determination

23  process must be used solely for determining eligibility of

24  applicants for health benefits coverage under the program. The

25  eligibility determination process must include an initial

26  determination of eligibility for any coverage offered under

27  the program, as well as a redetermination or reverification of

28  eligibility each subsequent 6 months. Effective January 1,

29  1999, a child who has not attained the age of 5 and who has

30  been determined eligible for the Medicaid program is eligible

31  for coverage for 12 months without a redetermination or


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                                      CS/HB 4415, Second Engrossed



  1  reverification of eligibility. In conducting an eligibility

  2  determination, the department shall determine if the child has

  3  special health care needs.

  4         (c)  Inform program applicants about eligibility

  5  determinations and provide information about eligibility of

  6  applicants to Medicaid, Medikids, the Children's Medical

  7  Services network, and the Florida Healthy Kids Corporation,

  8  and to insurers and their agents, through a centralized

  9  coordinating office.

10         (d)  Adopt rules necessary for conducting program

11  eligibility functions.

12         (2)  The Department of Health shall:

13         (a)  Design an eligibility intake process for the

14  program, in coordination with the Department of Children and

15  Family Services, the agency, and the Florida Healthy Kids

16  Corporation. The eligibility intake process may include local

17  intake points that are determined by the Department of Health

18  in coordination with the Department of Children and Family

19  Services.

20         (b)  Design and implement program outreach activities

21  under s. 409.819.

22         (c)  Chair a state-level coordinating council to review

23  and make recommendations concerning the implementation and

24  operation of the program. The coordinating council shall

25  include representatives from the department, the Department of

26  Children and Family Services, the agency, the Florida Healthy

27  Kids Corporation, the Department of Insurance, local

28  government, health insurers, health maintenance organizations,

29  health care providers, families participating in the program,

30  and organizations representing low-income families.

31


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                                      CS/HB 4415, Second Engrossed



  1         (d)  In consultation with the Florida Healthy Kids

  2  Corporation and the Department of Children and Family

  3  Services, establishing a toll-free telephone line to assist

  4  families with questions about the program.

  5         (e)  Adopt rules necessary to implement outreach

  6  activities.

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

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

  9         (a)  Calculate the premium assistance payment necessary

10  to comply with the premium and cost-sharing limitations

11  specified in s. 409.816. The premium assistance payment for

12  each enrollee in a health insurance plan participating in the

13  Florida Healthy Kids Corporation shall equal the premium

14  approved by the Florida Healthy Kids Corporation and the

15  Department of Insurance pursuant to ss. 627.410 and 641.31,

16  less any enrollee's share of the premium established within

17  the limitations specified in s. 409.816. The premium

18  assistance payment for each enrollee in an employer-sponsored

19  health insurance plan approved under ss. 409.810-409.820 shall

20  equal the premium for the plan adjusted for any benchmark

21  benefit plan actuarial equivalent benefit rider approved by

22  the Department of Insurance pursuant to ss. 627.410 and

23  641.31, less any enrollee's share of the premium  established

24  within the limitations specified in s. 409.816. In calculating

25  the premium assistance payment levels for children with family

26  coverage, the agency shall set the premium assistance payment

27  levels for each child proportionately to the total cost of

28  family coverage.

29         (b)  Annually calculate the program enrollment ceiling

30  based on estimated per-child premium assistance payments and

31  the estimated appropriation available for the program.


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                                      CS/HB 4415, Second Engrossed



  1         (c)  Make premium assistance payments to health

  2  insurance plans on a periodic basis. The agency may use its

  3  Medicaid fiscal agent or a contracted third-party

  4  administrator in making these payments.  The agency may

  5  require health insurance plans that participate in the

  6  Medikids program or employer-sponsored group health insurance

  7  to collect premium payments from an enrollee's family.

  8  Participating health insurance plans shall report premium

  9  payments collected on behalf of enrollees in the program to

10  the agency in accordance with a schedule established by the

11  agency.

12         (d)  Monitor compliance with quality assurance and

13  access standards developed under s. 409.820.

14         (e)  Establish a mechanism for investigating and

15  resolving complaints and grievances from program applicants,

16  enrollees, and health benefits coverage providers, and

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

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

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

20  to address grievance reporting and resolution requirements.

21         (f)  Approve health benefits coverage for participation

22  in the program, following certification by the Department of

23  Insurance under subsection (4).

24         (g)  Adopt rules necessary for calculating premium

25  assistance payment levels, calculating the program enrollment

26  ceiling, making premium assistance payments, monitoring access

27  and quality assurance standards, investigating and resolving

28  complaints and grievances, administering the Medikids program,

29  and approving health benefits coverage.

30

31


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                                      CS/HB 4415, Second Engrossed



  1  The agency is designated the lead state agency for Title XXI

  2  of the Social Security Act for purposes of receipt of federal

  3  funds, for reporting purposes, and for ensuring compliance

  4  with federal and state regulations and rules.

  5         (4)  The Department of Insurance shall certify that

  6  health benefits coverage plans that seek to provide services

  7  under the Florida Kidcare program, except those offered

  8  through the Florida Healthy Kids Corporation or the Children's

  9  Medical Services network, meet, exceed, or are actuarially

10  equivalent to the benchmark benefit plan and that health

11  insurance plans will be offered at an approved rate. In

12  determining actuarial equivalence of benefits coverage, the

13  Department of Insurance and health insurance plans must comply

14  with the requirements of s. 2103 of Title XXI of the Social

15  Security Act. The department shall adopt rules necessary for

16  certifying health benefits coverage plans.

17         (5)  The Florida Healthy Kids Corporation shall retain

18  its functions as authorized in s. 624.91, including

19  eligibility determination for participation in the Healthy

20  Kids program.

21         (6)  The agency, the Department of Health, the

22  Department of Children and Family Services, the Florida

23  Healthy Kids Corporation, and the Department of Insurance,

24  after consultation with and approval of the Speaker of the

25  House of Representatives and the President of the Senate, are

26  authorized to make program modifications that are necessary to

27  overcome any objections of the United States Department of

28  Health and Human Services to obtain approval of the state's

29  child health insurance plan under Title XXI of the Social

30  Security Act.

31


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                                      CS/HB 4415, Second Engrossed



  1         Section 46.  Section 154.508, Florida Statutes, is

  2  transferred, renumbered as section 409.819, Florida Statutes,

  3  and amended to read:

  4         409.819 154.508  Identification of low-income,

  5  uninsured children; determination of Medicaid eligibility for

  6  the Florida Kidcare program; alternative health care

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

  8  Administration shall develop a program, in conjunction with

  9  the Department of Education, the Department of Children and

10  Family Services, the Agency for Health Care Administration,

11  the Florida Healthy Kids Corporation the Department of Health,

12  local governments, employers school districts, and other

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

14  to the extent possible and subject to appropriation, refer

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

16  Medicaid eligibility determination and provide parents with

17  information about choices alternative sources of health

18  benefits coverage under the Florida Kidcare program care.

19  These activities shall include, but not be limited to:

20  training community providers in effective methods of outreach;

21  conducting public information campaigns designed to publicize

22  the Florida Kidcare program, the eligibility requirements of

23  the program, and the procedures for enrollment in the program;

24  and maintaining public awareness of the Florida Kidcare

25  program. Special emphasis shall be placed on the

26  identification of minority children for referral to and

27  participation in the Florida Kidcare program.

28         Section 47.  Section 409.820, Florida Statutes, is

29  created to read:

30         409.820  Quality assurance and access

31  standards.--Except for Medicaid, the Department of Health, in


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                                      CS/HB 4415, Second Engrossed



  1  consultation with the agency and the Florida Healthy Kids

  2  Corporation, shall develop a minimum set of quality assurance

  3  and access standards for all program components. The standards

  4  must include a process for granting exceptions to specific

  5  requirements for quality assurance and access. Compliance with

  6  the standards shall be a condition of program participation by

  7  health benefits coverage providers.  These standards shall

  8  comply with the provisions of chapters 409 and 641 and Title

  9  XXI of the Social Security Act.

10         Section 48.  The following performance measures and

11  standards are adopted for the Florida Kidcare program:

12         (1)  The total number of previously uninsured children

13  who receive health benefits coverage as a result of state

14  activities under Title XXI of the Social Security Act: 254,000

15  uninsured children expected to obtain coverage during the

16  1998-1999 fiscal year.

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

18  program as a result of eligibility expansions under Title XXI

19  of the Social Security Act: 29,500 children enrolled in

20  Medicaid under new eligibility groups during the 1998-1999

21  fiscal year.

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

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

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

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

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

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

28         (c)  The number of uninsured children enrolled in

29  Medikids under Title XXI of the Social Security Act:  17,000

30  children enrolled in Medikids during the 1998-1999 fiscal

31  year.


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                                      CS/HB 4415, Second Engrossed



  1         (d)  The number of uninsured children added to the

  2  enrollment for the Florida Healthy Kids Corporation program

  3  under Title XXI of the Social Security Act: 70,000 additional

  4  children enrolled in the Florida Healthy Kids Corporation

  5  program during the 1998-1999 fiscal year.

  6         (e)  The number of uninsured children enrolled in

  7  employer-sponsored group health insurance coverage under Title

  8  XXI of the Social Security Act: 48,000 uninsured children

  9  enrolled in health insurance coverage during the 1998-1999

10  fiscal year.

11         (f)  The number of uninsured children enrolled in the

12  Children's Medical Services network under Title XXI of the

13  Social Security Act: 9,500 uninsured children enrolled in the

14  Children's Medical Services network during the 1998-1999

15  fiscal year.

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

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

18  the Florida Kidcare program: 30.9 percent of uninsured

19  children enrolled in the Florida Kidcare program during the

20  1998-1999 fiscal year.

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

22  Kidcare program with up-to-date immunizations: 80 percent of

23  enrolled children with up-to-date immunizations.

24         (4)  The percentage of compliance with the standards

25  established in the Guidelines for Health Supervision of

26  Children and Youth as developed by the American Academy of

27  Pediatrics for children eligible for the Florida Kidcare

28  program and served under:

29         (a)  Medicaid;

30         (b)  Medikids;

31         (c)  The Florida Healthy Kids Corporation program;


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                                      CS/HB 4415, Second Engrossed



  1         (d)  Employer-sponsored group health insurance plans;

  2  and

  3         (e)  The Children's Medical Services network.

  4

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

  6  compliance with the health supervision standards for 80

  7  percent of enrolled children.

  8         (5)  The perception of the enrollee or the enrollee's

  9  family concerning coverage provided to children enrolled in

10  the Florida Kidcare program and served under:

11         (a)  Medicaid;

12         (b)  Medikids;

13         (c)  Florida Healthy Kids Corporation;

14         (d)  Employer-sponsored group health insurance plans;

15  and

16         (e)  The Children's Medical Services network.

17

18  For each category of coverage, 90 percent of the enrollees or

19  the enrollee families indicate satisfaction with the care

20  provided under the program.

21         Section 49.  The Agency for Health Care Administration

22  shall conduct a study of the feasibility of extending

23  presumptive eligibility for Medicaid to children who have not

24  attained the age of 19.  The study shall assess whether

25  families delay seeking health care services or health care

26  coverage because of the lack of presumptive eligibility. The

27  agency shall report its findings to the President of the

28  Senate, the Speaker of the House of Representatives, and the

29  chairpersons of the respective health care committees no later

30  than December 31, 1998.

31


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                                      CS/HB 4415, Second Engrossed



  1         Section 50.  For fiscal year 1998-1999, the enrollment

  2  ceiling for the non-Medicaid portion of the Florida Kidcare

  3  program is 270,000 children. Thereafter, the enrollment

  4  ceiling shall be established in the General Appropriations Act

  5  or general law.

  6         Section 51.  Subsections (6) and (7) are added to

  7  section 409.904, Florida Statutes, to read:

  8         409.904  Optional payments for eligible persons.--The

  9  agency may make payments for medical assistance and related

10  services on behalf of the following persons who are determined

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

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

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

14  availability of moneys and any limitations established by the

15  General Appropriations Act or chapter 216.

16         (6)  A child born before October 1, 1983, living in a

17  family that has an income which is at or below 100 percent of

18  the current federal poverty level, who has attained the age of

19  6, but has not attained the age of 19, and who would be

20  eligible in s. 409.903(6), if the child had been born on or

21  after such date.  In determining the eligibility of such a

22  child, an assets test is not required.

23         (7)  A child who has not attained the age of 19 who has

24  been determined eligible for the Medicaid program is deemed to

25  be eligible for a total of 6 months, regardless of changes in

26  circumstances other than attainment of the maximum age.

27  Effective January 1, 1999, a child who has not attained the

28  age of 5 and who has been determined eligible for the Medicaid

29  program is deemed to be eligible for a total of 12 months

30  regardless of changes in circumstances other than attainment

31  of the maximum age.


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                                      CS/HB 4415, Second Engrossed



  1         Section 52.  Subsections (11) through (22) of section

  2  409.906, Florida Statutes, are renumbered as subsections (12)

  3  through (23), respectively, and a new subsection (11) is added

  4  to that section to read:

  5         409.906  Optional Medicaid services.--Subject to

  6  specific appropriations, the agency may make payments for

  7  services which are optional to the state under Title XIX of

  8  the Social Security Act and are furnished by Medicaid

  9  providers to recipients who are determined to be eligible on

10  the dates on which the services were provided.  Any optional

11  service that is provided shall be provided only when medically

12  necessary and in accordance with state and federal law.

13  Nothing in this section shall be construed to prevent or limit

14  the agency from adjusting fees, reimbursement rates, lengths

15  of stay, number of visits, or number of services, or making

16  any other adjustments necessary to comply with the

17  availability of moneys and any limitations or directions

18  provided for in the General Appropriations Act or chapter 216.

19  Optional services may include:

20         (11)  HEALTHY START SERVICES.--The agency may pay for a

21  continuum of risk-appropriate medical and psychosocial

22  services for the Healthy Start program in accordance with a

23  federal waiver. The agency may not implement the federal

24  waiver unless the waiver permits the state to limit enrollment

25  or the amount, duration, and scope of services to ensure that

26  expenditures will not exceed funds appropriated by the

27  Legislature or available from local sources.

28         Section 53.  Section 409.9126, Florida Statutes, is

29  amended to read:

30         409.9126  Children with special health care needs.--

31         (1)  As used in this section:


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                                      CS/HB 4415, Second Engrossed



  1         (a)  "Children's Medical Services network" means an

  2  alternative service network that includes health care

  3  providers and health care facilities specified in chapter 391

  4  and ss. 383.15-383.21, 383.216, and 415.5055.

  5         (b)  "Children with special health care needs" means

  6  those children whose serious or chronic physical or

  7  developmental conditions require extensive preventive and

  8  maintenance care beyond that required by typically healthy

  9  children.  Health care utilization by these children exceeds

10  the statistically expected usage of the normal child matched

11  for chronological age and often needs complex care requiring

12  multiple providers, rehabilitation services, and specialized

13  equipment in a number of different settings.

14         (2)  The Legislature finds that Medicaid-eligible

15  children with special health care needs require a

16  comprehensive, continuous, and coordinated system of health

17  care that links community-based health care with

18  multidisciplinary, regional, and tertiary care.  The

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

20  program provides a full continuum of coordinated,

21  comprehensive services for children with special health care

22  needs.

23         (1)(3)  Except as provided in subsection (4)

24  subsections (8) and (9), children eligible for Children's

25  Medical Services who receive Medicaid benefits, and other

26  Medicaid-eligible children with special health care needs,

27  shall be exempt from the provisions of s. 409.9122 and shall

28  be served through the Children's Medical Services network

29  established in chapter 391.

30         (2)(4)  The Legislature directs the agency to apply to

31  the federal Health Care Financing Administration for a waiver


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                                      CS/HB 4415, Second Engrossed



  1  to assign to the Children's Medical Services network all

  2  Medicaid-eligible children who meet the criteria for

  3  participation in the Children's Medical Services program as

  4  specified in s. 391.021(2), and other Medicaid-eligible

  5  children with special health care needs.

  6         (5)  The Children's Medical Services program shall

  7  assign a qualified MediPass primary care provider from the

  8  Children's Medical Services network who shall serve as the

  9  gatekeeper and who shall be responsible for the provision or

10  authorization of all health services to a child who has been

11  assigned to the Children's Medical Services network by the

12  Medicaid program.

13         (3)(6)  Services provided through the Children's

14  Medical Services network shall be reimbursed on a

15  fee-for-service basis and shall utilize a primary care case

16  management process. However, effective July 1, 1999,

17  reimbursement to the Children's Medical Services program for

18  services provided to Medicaid-eligible children with special

19  health care needs through the Children's Medical Services

20  network shall be on a capitated basis.

21         (7)  The agency, in consultation with the Children's

22  Medical Services program, shall develop by rule

23  quality-of-care and service integration standards.

24         (8)  The agency may issue a request for proposals,

25  based on the quality-of-care and service integration

26  standards, to allow managed care plans that have contracts

27  with the Medicaid program to provide services to

28  Medicaid-eligible children with special health care needs.

29         (4)(9)  The agency may shall approve requests to

30  provide services to Medicaid-eligible children with special

31  health care needs from managed care plans that meet access,


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                                      CS/HB 4415, Second Engrossed



  1  quality-of-care, network, and service integration standards

  2  and are in good standing with the agency.  The agency shall

  3  monitor on a quarterly basis managed care plans which have

  4  been approved to provide services to Medicaid-eligible

  5  children with special health care needs.  The agency may

  6  determine the number of enrollment slots approved for a

  7  managed care plan based on the managed care plan's network

  8  capacity to serve children with special health care needs.

  9         (5)(10)  The agency, in consultation with the

10  Department of Health and Rehabilitative Services, shall adopt

11  rules that address Medicaid requirements for referral,

12  enrollment, and disenrollment of children with special health

13  care needs who are enrolled in Medicaid managed care plans and

14  who may benefit from the Children's Medical Services network.

15         (11)  The Children's Medical Services network may

16  contract with school districts participating in the certified

17  school match program pursuant to ss. 236.0812 and 409.908(21)

18  for the provision of school-based services, as provided for in

19  s. 409.9071, for Medicaid-eligible children who are enrolled

20  in the Children's Medical Services network.

21         (12)  After 1 complete year of operation, the agency

22  shall conduct an evaluation of the Children's Medical Services

23  network.  The evaluation shall include, but not be limited to,

24  an assessment of whether the use of the Children's Medical

25  Services network is less costly than the provision of the

26  services would have been in the Medicaid fee-for-service

27  program.  The evaluation also shall include an assessment of

28  patient satisfaction with the Children's Medical Services

29  network, an assessment of the quality of care delivered

30  through the network, and recommendations for further improving

31  the performance of the network.  The agency shall report the


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                                      CS/HB 4415, Second Engrossed



  1  evaluation findings to the Governor and the chairpersons of

  2  the appropriations and health care committees of each chamber

  3  of the Legislature.

  4         Section 54.  Section 624.91, Florida Statutes, is

  5  amended to read:

  6         624.91  The Florida Healthy Kids Corporation Act.--

  7         (1)  SHORT TITLE.--This section may be cited as the

  8  "William G. 'Doc' Myers Healthy Kids Corporation Act."

  9         (2)  LEGISLATIVE INTENT.--

10         (a)  The Legislature finds that increased access to

11  health care services could improve children's health and

12  reduce the incidence and costs of childhood illness and

13  disabilities among children in this state.  Many children do

14  not have comprehensive, affordable health care preventive

15  services available or funded, and for those who do, lack of

16  access is a restriction to getting service.  It is the intent

17  of the Legislature that the Florida Healthy Kids a nonprofit

18  Corporation be organized to facilitate a program to bring

19  preventive health care services to children, if necessary

20  through the use of school facilities in this state when more

21  appropriate sites are unavailable, and to provide

22  comprehensive health insurance coverage to such children. A

23  goal for The corporation is encouraged to cooperate with any

24  existing health preventive service programs funded by the

25  public or the private sector.

26         (b)  It is the intent of the Legislature that the

27  Florida Healthy Kids Corporation serve as one of several

28  providers of services to children eligible for medical

29  assistance under Title XXI of the Social Security Act.

30  Although the corporation may serve other children, the

31  Legislature intends the primary recipients of services


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                                      CS/HB 4415, Second Engrossed



  1  provided through the corporation be school-age children with a

  2  family income below 200 percent of the federal poverty level,

  3  who do not qualify for Medicaid.  It is also the intent of the

  4  Legislature that state and local government Florida Healthy

  5  Kids funds, to the extent permissible under federal law, be

  6  used to obtain matching federal dollars.

  7         (3)  NONENTITLEMENT.--Nothing in this section shall be

  8  construed as providing an individual with an entitlement to

  9  health care services.  No cause of action shall arise against

10  the state, the Florida Healthy Kids Corporation, or a unit of

11  local government for failure to make health services available

12  under this section.

13         (4)(3)  CORPORATION AUTHORIZATION, DUTIES, POWERS.--

14         (a)  There is created The Legislature hereby creates

15  the Florida Healthy Kids Corporation, a not-for-profit

16  corporation which operates shall operate on sites to be

17  designated by the corporation.

18         (b)  The Florida Healthy Kids Corporation shall phase

19  in a program to:

20         1.  Organize school children groups to facilitate the

21  provision of preventive health care services to children and

22  to provide comprehensive health insurance coverage to

23  children;

24         2.  Arrange for the collection of any family, local

25  contributions, or employer payment or premium, in an amount to

26  be determined by the board of directors, from all participant

27  families or employers to provide for payment of for preventive

28  health care services or premiums for comprehensive insurance

29  coverage and for the actual or estimated administrative

30  expenses incurred during the period for which family or

31  employer payments are made;


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                                      CS/HB 4415, Second Engrossed



  1         3.  Establish the administrative and accounting

  2  procedures for the operation of the corporation;

  3         4.  Establish, with consultation from appropriate

  4  professional organizations, standards for preventive health

  5  services and providers and comprehensive insurance benefits

  6  appropriate to children; provided that such standards for

  7  rural areas shall not limit primary care providers to

  8  board-certified pediatricians;

  9         5.  Establish eligibility criteria which children must

10  meet in order to participate in the program;

11         6.  Establish procedures under which applicants to and

12  participants in the program may have grievances reviewed by an

13  impartial body and reported to the board of directors of the

14  corporation;

15         7.  Establish participation criteria and, if

16  appropriate, contract with an authorized insurer, health

17  maintenance organization, or insurance administrator to

18  provide administrative services to the corporation;

19         8.  Establish enrollment criteria which shall include

20  penalties or waiting periods of not fewer than 60 days for

21  reinstatement of coverage upon voluntary cancellation for

22  nonpayment of family premiums;

23         9.  If a space is available, establish a special open

24  enrollment period of 30 days' duration for any child who is

25  enrolled in Medicaid or Medikids if such child loses Medicaid

26  or Medikids eligibility and becomes eligible for the Florida

27  Healthy Kids program;

28         10.8.  Contract with authorized insurers or any

29  provider of health care services, meeting standards

30  established by the corporation, for the provision of

31  comprehensive insurance coverage and preventive health care


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                                      CS/HB 4415, Second Engrossed



  1  services to participants.  Such standards shall include

  2  criteria under which the corporation may contract with more

  3  than one provider of health care services in program sites.

  4  Health plans shall be selected through a competitive bid

  5  process. The selection of health plans shall be based

  6  primarily on quality criteria established by the board. The

  7  health plan selection criteria and scoring system, and the

  8  scoring results, shall be available upon request for

  9  inspection after the bids have been awarded;

10         11.9.  Develop and implement a plan to publicize the

11  Florida Healthy Kids Corporation, the eligibility requirements

12  of the program, and the procedures for enrollment in the

13  program and to maintain public awareness of the corporation

14  and the program;

15         12.10.  Secure staff necessary to properly administer

16  the corporation. Staff costs shall be funded from state and

17  local matching funds and such other private or public funds as

18  become available.  The board of directors shall determine the

19  number of staff members necessary to administer the

20  corporation;

21         13.11.  As appropriate, enter into contracts with local

22  school boards or other agencies to provide onsite information,

23  enrollment, and other services necessary to the operation of

24  the corporation; and

25         14.12.  Provide a report on an annual basis to the

26  Governor, Insurance Commissioner, Commissioner of Education,

27  Senate President, Speaker of the House of Representatives, and

28  Minority Leaders of the Senate and the House of

29  Representatives;.

30         15.13.  Each fiscal year, establish a maximum number of

31  participants by county, on a statewide basis, who may enroll


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                                      CS/HB 4415, Second Engrossed



  1  in the program without the benefit of local matching funds.

  2  Thereafter, the corporation may establish local matching

  3  requirements for supplemental participation in the program.

  4  The corporation may vary local matching requirements and

  5  enrollment by county depending on factors which may influence

  6  the generation of local match, including, but not limited to,

  7  population density, per capita income, existing local tax

  8  effort, and other factors. The corporation also may accept

  9  in-kind match in lieu of cash for the local match requirement

10  to the extent allowed by Title XXI of the Social Security Act;

11  and For the 1996-1997 fiscal year only, funds may be

12  appropriated to the Florida Healthy Kids Corporation to

13  organize school children groups to facilitate the provision of

14  preventive health care services to children at sites in

15  addition to those allowed in subparagraph 1.  This

16  subparagraph is repealed on July 1, 1997.

17         16.  Establish eligibility criteria, premium and

18  cost-sharing requirements, and benefit packages which conform

19  to the provisions of the Florida Kidcare program, as created

20  in ss. 409.810-409.820.

21         (c)  Coverage under the corporation's program is

22  secondary to any other available private coverage held by the

23  participant child or family member.  The corporation may

24  establish procedures for coordinating benefits under this

25  program with benefits under other public and private coverage.

26         (d)  The Florida Healthy Kids Corporation shall be a

27  private corporation not for profit, organized pursuant to

28  chapter 617, and shall have all powers necessary to carry out

29  the purposes of this act, including, but not limited to, the

30  power to receive and accept grants, loans, or advances of

31  funds from any public or private agency and to receive and


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                                      CS/HB 4415, Second Engrossed



  1  accept from any source contributions of money, property,

  2  labor, or any other thing of value, to be held, used, and

  3  applied for the purposes of this act.

  4         (5)(4)  BOARD OF DIRECTORS.--

  5         (a)  The Florida Healthy Kids Corporation shall operate

  6  subject to the supervision and approval of a board of

  7  directors chaired by the Insurance Commissioner or her or his

  8  designee, and composed of 12 other members selected for 3-year

  9  terms of office as follows:

10         1.  One member appointed by the Commissioner of

11  Education from among three persons nominated by the Florida

12  Association of School Administrators;

13         2.  One member appointed by the Commissioner of

14  Education from among three persons nominated by the Florida

15  Association of School Boards;

16         3.  One member appointed by the Commissioner of

17  Education from the Office of School Health Programs of the

18  Florida Department of Education;

19         4.  One member appointed by the Governor from among

20  three members nominated by the Florida Pediatric Society;

21         5.  One member, appointed by the Governor, who

22  represents the Children's Medical Services Program;

23         6.  One member appointed by the Insurance Commissioner

24  from among three members nominated by the Florida Hospital

25  Association;

26         7.  Two members, appointed by the Insurance

27  Commissioner, who are representatives of authorized health

28  care insurers or health maintenance organizations;

29         8.  One member, appointed by the Insurance

30  Commissioner, who represents the Institute for Child Health

31  Policy;


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                                      CS/HB 4415, Second Engrossed



  1         9.  One member, appointed by the Governor, from among

  2  three members nominated by the Florida Academy of Family

  3  Physicians;

  4         10.  One member, appointed by the Governor, who

  5  represents the Agency for Health Care Administration; and

  6         11.  The State Health Officer or her or his designee.

  7

  8  In order to provide for staggered terms, the initial term of

  9  the members appointed under subparagraphs 1., 4., and 6. shall

10  be for 2 years and the initial term of the members appointed

11  under subparagraphs 2., 5., 8., and 10. shall be for 4 years.

12         (b)  A member of the board of directors may be removed

13  by the official who appointed that member.  The board shall

14  appoint an executive director, who is responsible for other

15  staff authorized by the board.

16         (c)  Board members are entitled to receive, from funds

17  of the corporation, reimbursement for per diem and travel

18  expenses as provided by s. 112.061.

19         (d)  There shall be no liability on the part of, and no

20  cause of action shall arise against, any member of the board

21  of directors, or its employees or agents, for any action they

22  take in the performance of their powers and duties under this

23  act.

24         (6)(5)  LICENSING NOT REQUIRED; FISCAL OPERATION.--

25         (a)  The corporation shall not be deemed an insurer.

26  The officers, directors, and employees of the corporation

27  shall not be deemed to be agents of an insurer. Neither the

28  corporation nor any officer, director, or employee of the

29  corporation is subject to the licensing requirements of the

30  insurance code or the rules of the Department of Insurance.

31  However, the Department of Insurance may require that any


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                                      CS/HB 4415, Second Engrossed



  1  marketing representative utilized and compensated by the

  2  corporation must be appointed as a representative of the

  3  insurers or health services providers with which the

  4  corporation contracts.

  5         (b)  The board has complete fiscal control over the

  6  corporation and is responsible for all corporate operations.

  7         (c)  The Department of Insurance shall supervise any

  8  liquidation or dissolution of the corporation and shall have,

  9  with respect to such liquidation or dissolution, all power

10  granted to it pursuant to the insurance code.

11         (7)(6)  ACCESS TO RECORDS; CONFIDENTIALITY;

12  PENALTIES.--Notwithstanding any other laws to the contrary,

13  the Florida Healthy Kids Corporation shall have access to the

14  medical records of a student upon receipt of permission from a

15  parent or guardian of the student.  Such medical records may

16  be maintained by state and local agencies.  Any identifying

17  information, including medical records and family financial

18  information, obtained by the corporation pursuant to this

19  subsection is confidential and is exempt from the provisions

20  of s. 119.07(1).  Neither the corporation nor the staff or

21  agents of the corporation may release, without the written

22  consent of the participant or the parent or guardian of the

23  participant, to any state or federal agency, to any private

24  business or person, or to any other entity, any confidential

25  information received pursuant to this subsection.  A violation

26  of this subsection is a misdemeanor of the second degree,

27  punishable as provided in s. 775.082 or s. 775.083.

28         Section 55.  (1)  Sections 391.031 and 391.056, Florida

29  Statutes, are hereby repealed.

30

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                                      CS/HB 4415, Second Engrossed



  1         (2)  Section 624.92, Florida Statutes, as created by

  2  section 9 of chapter 97-260, Laws of Florida, is hereby

  3  repealed.

  4         Section 56.  The provisions of this act which would

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

  6  between the Florida Healthy Kids Corporation and its

  7  contracted providers shall be applied to such contracts upon

  8  the renewal of the contracts, but not later than July 1, 2000.

  9         Section 57.  Sections 409.810 through 409.820, Florida

10  Statutes, as created by this act, are repealed, subject to

11  prior legislative review, on the first July 1 occurring at

12  least 1 year after the effective date of an act of the United

13  States Congress or the federal Health Care Financing

14  Administration which:

15         (1)  Reduces Florida's federal matching rate under

16  Title XXI of the Social Security Act to less than 65 percent

17  federal match; or

18         (2)  Reduces the federal funds allotted to Florida

19  under Title XXI of the Social Security Act to less than $250

20  million annually.

21         Section 58.  This act shall take effect July 1 of the

22  year in which enacted.

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