House Bill 2087e1

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                                      HB 2087, First Engrossed/ntc



  1                      A bill to be entitled

  2         An act relating to Medicaid managed health

  3         care; amending s. 409.912, F.S.; authorizing

  4         the Agency for Health Care Administration to

  5         contract with entities providing behavioral

  6         health care services to certain Medicaid

  7         recipients in certain counties under certain

  8         circumstances; providing requirements;

  9         providing limitations; providing definitions;

10         providing an effective date.

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

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14         Section 1.  Paragraph (b) of subsection (3) of section

15  409.912 is amended to read:

16         409.912  Cost-effective purchasing of health care.--The

17  agency shall purchase goods and services for Medicaid

18  recipients in the most cost-effective manner consistent with

19  the delivery of quality medical care.  The agency shall

20  maximize the use of prepaid per capita and prepaid aggregate

21  fixed-sum basis services when appropriate and other

22  alternative service delivery and reimbursement methodologies,

23  including competitive bidding pursuant to s. 287.057, designed

24  to facilitate the cost-effective purchase of a case-managed

25  continuum of care. The agency shall also require providers to

26  minimize the exposure of recipients to the need for acute

27  inpatient, custodial, and other institutional care and the

28  inappropriate or unnecessary use of high-cost services.

29         (3)  The agency may contract with:

30         (b)  An entity that is providing comprehensive

31  inpatient and outpatient behavioral mental health care


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                                      HB 2087, First Engrossed/ntc



  1  services plan licensed under chapter 624, chapter 636, or

  2  chapter 641. Unless otherwise authorized by law, the agency

  3  shall limit such contract to services provided to certain

  4  Medicaid recipients in Hillsborough, Highlands, Hardee,

  5  Manatee, and Polk, Escambia, Santa Rosa, Okaloosa, Walton,

  6  Baker, Nassau, Duval, Clay, St. Johns, and Dade Counties,

  7  through a capitated, prepaid arrangement pursuant to the

  8  federal waiver provided for by s. 409.905(5). Such an entity

  9  must become licensed under chapter 624, chapter 636, or

10  chapter 641 by December 31, 1998, and is exempt from the

11  provisions of part I of chapter 641 until then. However, if

12  the entity assumes risk, the Department of Insurance shall

13  develop appropriate regulatory requirements by rule under the

14  insurance code before the entity becomes operational.

15         1.  A county in which the agency seeks to implement its

16  authority to award contracts as provided in this subparagraph

17  that has a Medicaid population in excess of 300,000, the

18  agency shall award one contract for every 100,000 Medicaid

19  recipients.

20         2.  The agency shall set as part of the competitive

21  procurement an allowable medical/loss ratio to limit

22  administrative costs and shall use industry standards, which

23  shall be adjusted based upon size of the plan.

24         3.  In developing the behavioral health care prepaid

25  plan procurement document the agency shall consult and

26  coordinate with Department of Children and Family Services and

27  the Department of Juvenile Justice. The Department of Children

28  and Family Services shall approve the sections of the

29  behavioral health care prepaid plan procurement document that

30  relates to children in the care and custody of Department of

31  Children and Family Services and their families. The


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                                      HB 2087, First Engrossed/ntc



  1  Department of Juvenile Justice shall approve the sections of

  2  the behavioral health care prepaid plan procurement document

  3  that relates to children in the care and custody of Department

  4  of Juvenile Justice and their families.

  5         4.  A county that has a provider service network as

  6  authorized in section 409.912, which provides behavioral

  7  health care services and is an operation as of October 1,

  8  1999, the agency shall not include those recipients served by

  9  the provider service network in the behavioral health prepaid

10  plan, pursuant to this subsection.

11         5.  As used in this paragraph:

12         a.  "Behavioral health care" includes mental health and

13  substance abuse services.

14         b  "District" means any district of the Department of

15  Children and Family Services.

16         c.  "Therapeutic or Supportive Foster Care Homes" means

17  any foster care program operated by a Medicaid Community

18  Mental Health provider which is a licensed residential child

19  caring or child placing agency as defined in section 409.175.

20         d.  "Specialized Therapeutic Foster Care" means any

21  foster care program provided under the Medicaid Community

22  Mental Health Program service entitled specialized therapeutic

23  foster care.

24         6.  Children residing in a Department of Juvenile

25  Justice residential program approved as a Medicaid Behavioral

26  Health Overlay Services provider shall not be included in

27  behavioral health care prepaid plan pursuant to this

28  subparagraph.

29         7.  When implementing the Behavioral Health Care

30  prepaid program in Baker, Nassau, Duval, Clay, St. Johns, and

31  Dade Counties, the agency shall not include the following:


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                                      HB 2087, First Engrossed/ntc



  1         a.  dependent children placed by the Department of

  2  Children and Family Services or children placed by a licensed

  3  child placing agency into a licensed residential group care

  4  facility which is operated by a Medicaid Community Mental

  5  Health provider.

  6         b.  dependent children of the department receiving

  7  therapeutic or supportive foster home care.

  8         c.  services to children in the care or custody of the

  9  department while they are in emergency shelter.

10         d.  children served under the Community Mental Health

11  program specialized therapeutic foster care.

12         8.  When implementing the Behavioral Health Care

13  prepaid program in Baker, Nassau, Duval, Clay, St. Johns, and

14  Dade counties, the agency shall require that any existing

15  licensed child caring or child placing agency that is also a

16  Medicaid Community Mental Health Program provider will be part

17  of the provider network.

18         9.  The agency and the department shall approve

19  behavioral health care criteria and protocols for services

20  provided to children referred from the child protection team

21  for follow-up services.

22         10.  In all the behavioral health care prepaid plans,

23  substance abuse services shall be reimbursed fee for service

24  from State Medicaid funds until such time as the agency

25  determines that adequate funds are available for prepaid

26  methods. The agency shall insure that any contractors for

27  pre-paid behavioral health services shall propose practical

28  methods of integrating mental health and substance abuse

29  services, including opportunities for community-based

30  substance abuse agencies to become partners in the provider

31  networks established at a district or area level, and to


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                                      HB 2087, First Engrossed/ntc



  1  participate in the development of protocols for substance

  2  abuse services.

  3         11.  In developing the behavioral health care prepaid

  4  plan procurement document, the agency must ensure that

  5  conversion to a prepaid system of delivery shall not result in

  6  the displacement of indigent care patients from facilities

  7  receiving state funding to provide indigent behavioral health

  8  care to facilities licensed under chapter 395 which do not

  9  receive state subsidies unless the unsubsidized facilities are

10  reimbursed for the costs of all treatment, including medical

11  treatment which is a precondition to admission into a

12  subsidized facility. Traditional inpatient mental health

13  providers licensed pursuant to chapter 395 must be included in

14  any provider network for prepaid behavioral health services.

15         12.  The agency shall notify the Legislature of the

16  status and plans to expand the behavioral managed care

17  projects to those counties designated in this paragraph by

18  October 1, 2000. With respect to any county or district in

19  which expansion of behavioral managed care projects cannot be

20  accomplished within the 3-year time frame, the plan must

21  clearly state the reasons the time frame cannot be met and the

22  efforts that should be made to address the obstacles, which

23  may include alternatives to behavioral managed care. The plan

24  must also address the status of services to children and their

25  families in the care and custody of the department and

26  Juvenile Justice. The plan must address how the services for

27  those children and families will be integrated into the

28  comprehensive behavioral health care program or how services

29  will be provided using alternative methods over the 3-year

30  phase in.

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                                      HB 2087, First Engrossed/ntc



  1         13.  For counties not specifically designated in this

  2  paragraph, a local planning process shall be completed prior

  3  to the agency expanding behavioral managed care projects to

  4  other areas. The planning process shall be completed with

  5  local community participation including, but not limited to,

  6  input from community-based mental health, substance abuse,

  7  child welfare, and delinquency providers currently under

  8  contract with the Department of Children and Family Services,

  9  Department of Juvenile Justice or the agency. Facilities

10  licensed under chapter 395 will be included in the local

11  planning process.

12         Section 2.  This act shall take effect October 1, 1999.

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