House Bill 0931e1

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                                           HB 931, First Engrossed



  1                      A bill to be entitled

  2         An act relating to public medical assistance;

  3         amending s. 395.701, F.S.; reducing the annual

  4         assessment on hospitals to fund public medical

  5         assistance; providing for contingent effect;

  6         amending s. 395.7015, F.S.; reducing the annual

  7         assessment on certain health care entities;

  8         amending ss. 408.904, 409.905, and 409.908,

  9         F.S.; increasing benefits for hospital out

10         patient services under the MedAccess and

11         Medicaid programs; amending s. 409.912, F.S.;

12         providing for a contract with reimbursement of

13         an entity in Pasco or Pinellas County that

14         provides in-home physician services to Medicaid

15         recipients with degenerative neurological

16         diseases; providing for future repeal;

17         requiring certain entities to conduct an annual

18         survey and produce an annual report on

19         uncompensated care; providing appropriations;

20         providing an effective date.

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22         WHEREAS, the Legislature finds that the annual

23  assessments on hospitals and certain other health care

24  entities that fund the Public Medical Assistance Trust Fund

25  are not uniformly applied to all health care entities, and

26         WHEREAS, the Legislature also finds that responsibility

27  for indigent care is a broader societal problem, not to be

28  placed just on those that provide or receive health care, and

29         WHEREAS, the Legislature further finds that the

30  economic conditions that exist today for health care entities

31  are different than when the assessment on hospitals was


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                                           HB 931, First Engrossed



  1  instituted in 1984 and the assessment on other health care

  2  entities was instituted in 1991, and

  3         WHEREAS, because these assessments place a greater

  4  burden on the hospitals and other health care entities subject

  5  to such assessments, it is the intent of the Legislature by

  6  this act to provide such hospitals and health care entities

  7  some relief, NOW, THEREFORE,

  8

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

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11         Section 1.  Subsection (2) of section 395.701, Florida

12  Statutes, is amended to read:

13         395.701  Annual assessments on net operating revenues

14  for inpatient services to fund public medical assistance;

15  administrative fines for failure to pay assessments when due;

16  exemption.--

17         (2)(a)  There is imposed upon each hospital an

18  assessment in an amount equal to 1.5 percent of the annual net

19  operating revenue for inpatient services for each hospital,

20  such revenue to be determined by the agency, based on the

21  actual experience of the hospital as reported to the agency.

22  Within 6 months after the end of each hospital fiscal year,

23  the agency shall certify the amount of the assessment for each

24  hospital.  The assessment shall be payable to and collected by

25  the agency in equal quarterly amounts, on or before the first

26  day of each calendar quarter, beginning with the first full

27  calendar quarter that occurs after the agency certifies the

28  amount of the assessment for each hospital. All moneys

29  collected pursuant to this subsection shall be deposited into

30  the Public Medical Assistance Trust Fund.

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                                           HB 931, First Engrossed



  1         (b)  There is imposed upon each hospital an assessment

  2  in an amount equal to 1.0 percent of the annual net operating

  3  revenue for outpatient services for each hospital, such

  4  revenue to be determined by the agency, based on the actual

  5  experience of the hospital as reported to the agency. Within 6

  6  months after the end of each hospital fiscal year, the agency

  7  shall certify the amount of the assessment for each hospital.

  8  The assessment shall be payable to and collected by the agency

  9  in equal quarterly amounts, on or before the first day of each

10  calendar quarter, beginning with the first full calendar

11  quarter that occurs after the agency certifies the amount of

12  the assessment for each hospital. All moneys collected

13  pursuant to this subsection shall be deposited into the Public

14  Medical Assistance Trust Fund.

15         Section 2.  Paragraph (a) of subsection (2) of section

16  395.7015, Florida Statutes, is amended to read:

17         395.7015 Annual assessment on health care entities.--

18         (2)  There is imposed an annual assessment against

19  certain health care entities as described in this section:

20         (a)  The assessment shall be equal to 1.0 1.5 percent

21  of the annual net operating revenues of health care entities.

22  The assessment shall be payable to and collected by the

23  agency. Assessments shall be based on annual net operating

24  revenues for the entity's most recently completed fiscal year

25  as provided in subsection (3).

26         Section 3.  Paragraph (c) of subsection 2 of section

27  408.904, Florida Statutes, is amended to read:

28         408.904  Benefits.--

29         (2)  Covered health services include:

30         (c)  Hospital outpatient services.  Those services

31  provided to a member in the outpatient portion of a hospital


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                                           HB 931, First Engrossed



  1  licensed under part I of chapter 395, up to a limit of $1,500

  2  $1,000 per calendar year per member, that are preventive,

  3  diagnostic, therapeutic, or palliative.

  4         Section 4.  Subsection (6) of section 409.905, Florida

  5  Statutes, is amended to read:

  6         409.905  Mandatory Medicaid services.--The agency may

  7  make payments for the following services, which are required

  8  of the state by Title XIX of the Social Security Act,

  9  furnished by Medicaid providers to recipients who are

10  determined to be eligible on the dates on which the services

11  were provided.  Any service under this section shall be

12  provided only when medically necessary and in accordance with

13  state and federal law. Nothing in this section shall be

14  construed to prevent or limit the agency from adjusting fees,

15  reimbursement rates, lengths of stay, number of visits, number

16  of services, or any other adjustments necessary to comply with

17  the availability of moneys and any limitations or directions

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

19         (6)  HOSPITAL OUTPATIENT SERVICES.--The agency shall

20  pay for preventive, diagnostic, therapeutic, or palliative

21  care and other services provided to a recipient in the

22  outpatient portion of a hospital licensed under part I of

23  chapter 395, and provided under the direction of a licensed

24  physician or licensed dentist, except that payment for such

25  care and services is limited to $1,500 $1,000 per state fiscal

26  year per recipient, unless an exception has been made by the

27  agency, and with the exception of a Medicaid recipient under

28  age 21, in which case the only limitation is medical

29  necessity.

30         Section 5.  Paragraph (a) of subsection (1) of section

31  409.908, Florida Statutes, is amended to read:


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                                           HB 931, First Engrossed



  1         409.908  Reimbursement of Medicaid providers.--Subject

  2  to specific appropriations, the agency shall reimburse

  3  Medicaid providers, in accordance with state and federal law,

  4  according to methodologies set forth in the rules of the

  5  agency and in policy manuals and handbooks incorporated by

  6  reference therein.  These methodologies may include fee

  7  schedules, reimbursement methods based on cost reporting,

  8  negotiated fees, competitive bidding pursuant to s. 287.057,

  9  and other mechanisms the agency considers efficient and

10  effective for purchasing services or goods on behalf of

11  recipients.  Payment for Medicaid compensable services made on

12  behalf of Medicaid eligible persons is subject to the

13  availability of moneys and any limitations or directions

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

15  Further, nothing in this section shall be construed to prevent

16  or limit the agency from adjusting fees, reimbursement rates,

17  lengths of stay, number of visits, or number of services, or

18  making any other adjustments necessary to comply with the

19  availability of moneys and any limitations or directions

20  provided for in the General Appropriations Act, provided the

21  adjustment is consistent with legislative intent.

22         (1)  Reimbursement to hospitals licensed under part I

23  of chapter 395 must be made prospectively or on the basis of

24  negotiation.

25         (a)  Reimbursement for inpatient care is limited as

26  provided for in s. 409.905(5). Reimbursement for hospital

27  outpatient care is limited to $1,500 $1,000 per state fiscal

28  year per recipient, except for:

29         1.  Such care provided to a Medicaid recipient under

30  age 21, in which case the only limitation is medical

31  necessity;


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                                           HB 931, First Engrossed



  1         2.  Renal dialysis services; and

  2         3.  Other exceptions made by the agency.

  3         Section 6.  Paragraph (e) is added to subsection (3) of

  4  section 409.912, Florida Statutes, to read:

  5         409.912  Cost-effective purchasing of health care.--The

  6  agency shall purchase goods and services for Medicaid

  7  recipients in the most cost-effective manner consistent with

  8  the delivery of quality medical care.  The agency shall

  9  maximize the use of prepaid per capita and prepaid aggregate

10  fixed-sum basis services when appropriate and other

11  alternative service delivery and reimbursement methodologies,

12  including competitive bidding pursuant to s. 287.057, designed

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

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

15  minimize the exposure of recipients to the need for acute

16  inpatient, custodial, and other institutional care and the

17  inappropriate or unnecessary use of high-cost services.

18         (3)  The agency may contract with:

19         (e)  An entity in Pasco County or Pinellas County that

20  provides in-home physician services to Medicaid recipients

21  with degenerative neurological diseases in order to test the

22  cost-effectiveness of enhanced home-based medical care. The

23  entity providing the services shall be reimbursed on a

24  fee-for-service basis at a rate not less than comparable

25  Medicare reimbursement rates. The agency may apply for waivers

26  of federal regulations necessary to implement such program.

27  This paragraph shall be repealed on July 1, 2002.

28         Section 7.  The Department of Health's Volunteer Health

29  Care Provider Program, or its successor program, shall

30  coordinate with the Agency for Health Care Administration,

31  Florida Board of Medicine, the Florida Board of Osteopathic


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                                           HB 931, First Engrossed



  1  Medicine, the Florida Medical Association, the Florida

  2  Osteopathic Medical Association, the Florida Hospital

  3  Association, the Association of Community Hospitals and Health

  4  Systems of Florida, Inc., and the Florida League of Health

  5  Care Systems to conduct a survey and produce for the

  6  Legislature by December 31 of each calendar year a report

  7  relative to uncompensated care for which the provider receives

  8  no reimbursement and the Florida Medicaid program. The report

  9  shall include: the dollar amount of uncompensated care for

10  which the physician receives no reimbursement provided by

11  physicians licensed pursuant to chapter 458 and chapter 459 by

12  medical specialty and by county; the dollar amount of

13  uncompensated care for which the hospital receives no

14  reimbursement provided by Florida hospitals licensed under

15  chapter 395 by medical specialty and by county; the number of

16  Medicaid physicians in the state by medical specialty and

17  county, and the average number of encounters per physician.

18  The results of the Medicaid provider survey shall be compared

19  with the projected need for Medicaid services by specialty and

20  county, as determined by the department. The report that is to

21  be filed on December 31, 2000, shall also include the

22  following information: a comparison of Florida Medicaid

23  reimbursement rates with Medicaid reimbursement rates for

24  other states; a comparison of Florida Medicaid reimbursement

25  rates with Medicare reimbursement rates; a comparison of

26  Florida Medicaid reimbursement rates with fee-for-service

27  rates; and a historical report on Florida Medicaid

28  reimbursement rates.

29         Section 8.  The Legislature shall appropriate each

30  fiscal year from the General Revenue Fund to the Public

31  Medical Assistance Trust Fund an amount sufficient to replace


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                                           HB 931, First Engrossed



  1  the funds lost due to the reduction by this act of the

  2  assessment on other health care entities under s. 395.7015,

  3  Florida Statutes, and the reduction by this act in the

  4  assessment on hospitals under s. 395.701, Florida Statutes,

  5  and to maintain federal approval of the reduced amount of

  6  funds deposited into the Public Medical Assistance Trust Fund

  7  under s. 395.701, Florida Statutes, as state match for the

  8  state's Medicaid program.

  9         Section 9.  There is hereby appropriated $28.3 million

10  to the Agency for Health Care Administration to implement this

11  act, provided however, that no portion of this appropriation

12  shall be effective that duplicates a similar appropriation for

13  the same purpose contained in other legislation from the 2000

14  session that becomes law.

15         Section 10.  This act shall take effect July 1, 2000.

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