HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
                            CHAMBER ACTION
              Senate                               House
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11  Representative(s) Frankel offered the following:
12  
13         Amendment (with title amendment) 
14  Remove from the bill:  Everything after the enacting clause
15  
16  and insert in lieu thereof:  
17         Section 1.  Subsection (7) of section 409.8132, Florida
18  Statutes, is amended to read:
19         409.8132  Medikids program component.--
20         (7)  ENROLLMENT.--Enrollment in the Medikids program
21  component may only occur during periodic open enrollment
22  periods as specified by the agency. An applicant may apply for
23  enrollment in the Medikids program component and proceed
24  through the eligibility determination process at any time
25  throughout the year. However, enrollment in Medikids shall not
26  begin until the next open enrollment period; and a child may
27  not receive services under the Medikids program until the
28  child is enrolled in a managed care plan or MediPass. In
29  addition, Once determined eligible, an applicant may choose
30  receive choice counseling and select a managed care plan or
31  MediPass. The agency may initiate mandatory assignment for a
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  Medikids applicant who has not chosen a managed care plan or
 2  MediPass provider after the applicant's voluntary choice
 3  period ends. An applicant may select MediPass under the
 4  Medikids program component only in counties that have fewer
 5  than two managed care plans available to serve Medicaid
 6  recipients and only if the federal Health Care Financing
 7  Administration determines that MediPass constitutes "health
 8  insurance coverage" as defined in Title XXI of the Social
 9  Security Act.
10         Section 2.  Subsection (9) is added to section 40.904,
11  Florida Statutes, to read:
12         409.904  Optional payments for eligible persons.--The
13  agency may make payments for medical assistance and related
14  services on behalf of the following persons who are determined
15  to be eligible subject to the income, assets, and categorical
16  eligibility tests set forth in federal and state law.  Payment
17  on behalf of these Medicaid-eligible persons is subject to the
18  availability of moneys and any limitations established by the
19  General Appropriations Act or chapter 216.
20         (9)  A Medicaid-eligible individual for the
21  individual's health insurance premiums, if the agency
22  determines that such payments are cost-effective.
23         Section 3.  Subsection (5) of section 409.905, Florida
24  Statutes, is amended to read:
25         409.905  Mandatory Medicaid services.--The agency may
26  make payments for the following services, which are required
27  of the state by Title XIX of the Social Security Act,
28  furnished by Medicaid providers to recipients who are
29  determined to be eligible on the dates on which the services
30  were provided.  Any service under this section shall be
31  provided only when medically necessary and in accordance with
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  state and federal law. Nothing in this section shall be
 2  construed to prevent or limit the agency from adjusting fees,
 3  reimbursement rates, lengths of stay, number of visits, number
 4  of services, or any other adjustments necessary to comply with
 5  the availability of moneys and any limitations or directions
 6  provided for in the General Appropriations Act or chapter 216.
 7         (5)  HOSPITAL INPATIENT SERVICES.--The agency shall pay
 8  for all covered services provided for the medical care and
 9  treatment of a recipient who is admitted as an inpatient by a
10  licensed physician or dentist to a hospital licensed under
11  part I of chapter 395.  However, the agency shall limit the
12  payment for inpatient hospital services for a Medicaid
13  recipient 21 years of age or older to 45 days or the number of
14  days necessary to comply with the General Appropriations Act.
15         (a)  The agency is authorized to implement
16  reimbursement and utilization management reforms in order to
17  comply with any limitations or directions in the General
18  Appropriations Act, which may include, but are not limited to:
19  prior authorization for inpatient psychiatric days; enhanced
20  utilization and concurrent review programs for highly utilized
21  services; reduction or elimination of covered days of service;
22  adjusting reimbursement ceilings for variable costs; adjusting
23  reimbursement ceilings for fixed and property costs; and
24  implementing target rates of increase.
25         (b)  A licensed hospital maintained primarily for the
26  care and treatment of patients having mental disorders or
27  mental diseases is not eligible to participate in the hospital
28  inpatient portion of the Medicaid program except as provided
29  under in federal law or pursuant to a federally approved
30  waiver.  However, the department shall apply for a waiver,
31  within 9 months after June 5, 1991, designed to provide
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  behavioral health hospitalization services for mental health
 2  reasons to children and adults in the most cost-effective and
 3  lowest cost setting possible.  Such waiver shall include a
 4  request for the opportunity to pay for care in hospitals known
 5  under federal law as "institutions for mental disease" or
 6  "IMD's."  The behavioral health waiver proposal shall propose
 7  no additional aggregate cost to the state or Federal
 8  Government, and shall be conducted in Hillsborough County,
 9  Highlands County, Hardee County, Manatee County, and Polk
10  County. Implementation of the behavioral health waiver
11  proposal shall not be the basis for adjusting a hospital's
12  Medicaid inpatient or outpatient rate. The waiver proposal may
13  incorporate competitive bidding for hospital services,
14  comprehensive brokering, prepaid capitated arrangements, or
15  other mechanisms deemed by the department to show promise in
16  reducing the cost of acute care and increasing the
17  effectiveness of preventive care.  When developing The waiver
18  proposal, the department shall take into account price,
19  quality, accessibility, linkages of the hospital to community
20  services and family support programs, plans of the hospital to
21  ensure the earliest discharge possible, and the
22  comprehensiveness of the mental health and other health care
23  services offered by participating providers.
24         (c)  Agency for Health Care Administration shall adjust
25  a hospital's current inpatient per diem rate to reflect the
26  cost of serving the Medicaid population at that institution
27  if:
28         1.  The hospital experiences an increase in Medicaid
29  caseload by more than 25 percent in any year, primarily
30  resulting from the closure of a hospital in the same service
31  area occurring after July 1, 1995; or
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1         2.  The hospital's Medicaid per diem rate is at least
 2  25 percent below the Medicaid per patient cost for that year.
 3  
 4  No later than November 1, 2000, the agency must provide
 5  estimated costs for any adjustment in a hospital inpatient per
 6  diem pursuant to this paragraph to the Executive Office of the
 7  Governor, the House of Representatives General Appropriations
 8  Committee, and the Senate Budget Committee. Before the agency
 9  implements a change in a hospital's inpatient per diem rate
10  pursuant to this paragraph, the Legislature must have
11  specifically appropriated sufficient funds in the 2001-2002
12  General Appropriations Act to support the increase in cost as
13  estimated by the agency. This paragraph is repealed on July 1,
14  2001.
15         Section 4.  Subsection (16) of Section 409.906, Florida
16  Statutes, is amended, and subsection (25) is added to said
17  subsection, to read:
18         409.906  Optional Medicaid services.--Subject to
19  specific appropriations, the agency may make payments for
20  services which are optional to the state under Title XIX of
21  the Social Security Act and are furnished by Medicaid
22  providers to recipients who are determined to be eligible on
23  the dates on which the services were provided.  Any optional
24  service that is provided shall be provided only when medically
25  necessary and in accordance with state and federal law.
26  Nothing in this section shall be construed to prevent or limit
27  the agency from adjusting fees, reimbursement rates, lengths
28  of stay, number of visits, or number of services, or making
29  any other adjustments necessary to comply with the
30  availability of moneys and any limitations or directions
31  provided for in the General Appropriations Act or chapter 216.
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  If necessary to safeguard the state's systems of providing
 2  services to elderly and disabled persons and subject to the
 3  notice and review provisions of s. 216.177, the Governor may
 4  direct the Agency for Health Care Administration to amend the
 5  Medicaid state plan to delete the optional Medicaid service
 6  known as "Intermediate Care Facilities for the Developmentally
 7  Disabled."  Optional services may include:
 8         (16)  INTERMEDIATE CARE SERVICES.--The agency may pay
 9  for 24-hour-a-day intermediate care nursing and rehabilitation
10  services rendered to a recipient in a nursing facility
11  licensed under part II of chapter 400, if the services are
12  ordered by and provided under the direction of a physician,
13  meet nursing home level of care criteria as determined by the
14  Comprehensive Assessment and Review Long-Term Care (CARE)
15  Program of the Department of Elderly Affairs, and do not meet
16  the definition of "general care" as used in the Medicaid
17  budget estimating process.
18         (25)  ASSISTIVE CARE SERVICES.--The agency may pay for
19  assistive care services provided to recipients with functional
20  or cognitive impairments residing in assisted living
21  facilities, adult family-care homes, or residential treatment
22  facilities with 16 or fewer beds. These services may include
23  health support, assistance with the activities of daily living
24  and the instrumental acts of daily living, assistance with
25  medication administration, and arrangements for health care.
26         Section 5.  Section 409.908, Florida Statutes, is
27  amended to read:
28         409.908  Reimbursement of Medicaid providers.--Subject
29  to specific appropriations, the agency shall reimburse
30  Medicaid providers, in accordance with state and federal law,
31  according to methodologies set forth in the rules of the
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  agency and in policy manuals and handbooks incorporated by
 2  reference therein.  These methodologies may include fee
 3  schedules, reimbursement methods based on cost reporting,
 4  negotiated fees, competitive bidding pursuant to s. 287.057,
 5  and other mechanisms the agency considers efficient and
 6  effective for purchasing services or goods on behalf of
 7  recipients.  Payment for Medicaid compensable services made on
 8  behalf of Medicaid eligible persons is subject to the
 9  availability of moneys and any limitations or directions
10  provided for in the General Appropriations Act or chapter 216.
11  Further, nothing in this section shall be construed to prevent
12  or limit the agency from adjusting fees, reimbursement rates,
13  lengths of stay, number of visits, or number of services, or
14  making any other adjustments necessary to comply with the
15  availability of moneys and any limitations or directions
16  provided for in the General Appropriations Act, provided the
17  adjustment is consistent with legislative intent.
18         (1)  Reimbursement to hospitals licensed under part I
19  of chapter 395 must be made prospectively or on the basis of
20  negotiation. The agency shall reimburse for hospital inpatient
21  and outpatient services under this subsection at rates no
22  greater than 95 percent of the reimbursement rates in effect
23  for the 2000-2001 state fiscal year.
24         (a)  Reimbursement for inpatient care is limited as
25  provided for in s. 409.905(5), except for:
26         1.  The raising of rate reimbursement caps, excluding
27  rural hospitals.
28         2.  Recognition of the costs of graduate medical
29  education.
30         3.  Other methodologies recognized in the General
31  Appropriations Act.
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  
 2  During the years funds are transferred from the Board of
 3  Regents, any reimbursement supported by such funds shall be
 4  subject to certification by the Board of Regents that the
 5  hospital has complied with s. 381.0403. The agency is
 6  authorized to receive funds from state entities, including,
 7  but not limited to, the Board of Regents, local governments,
 8  and other local political subdivisions, for the purpose of
 9  making special exception payments, including federal matching
10  funds, through the Medicaid inpatient reimbursement
11  methodologies. Funds received from state entities or local
12  governments for this purpose shall be separately accounted for
13  and shall not be commingled with other state or local funds in
14  any manner. Notwithstanding this section and s. 409.915,
15  counties are exempt from contributing toward the cost of the
16  special exception reimbursement for hospitals serving a
17  disproportionate share of low-income persons and providing
18  graduate medical education.
19         (b)  Reimbursement for hospital outpatient care is
20  limited to $1,500 per state fiscal year per recipient, except
21  for:
22         1.  Such care provided to a Medicaid recipient under
23  age 21, in which case the only limitation is medical
24  necessity.
25         2.  Renal dialysis services.
26         3.  Other exceptions made by the agency.
27  
28  The agency is authorized to receive funds from state entities,
29  including, but not limited to, the Board of Regents, local
30  governments, and other local political subdivisions, for the
31  purpose of making payments, including federal matching funds,
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  through the Medicaid outpatient reimbursement methodologies.
 2  Funds received from state entities and local governments for
 3  this purpose shall be separately accounted for and shall not
 4  be commingled with other state or local funds in any manner.
 5         (c)  Hospitals that provide services to a
 6  disproportionate share of low-income Medicaid recipients, or
 7  that participate in the regional perinatal intensive care
 8  center program under chapter 383, or that participate in the
 9  statutory teaching hospital disproportionate share program may
10  receive additional reimbursement. The total amount of payment
11  for disproportionate share hospitals shall be fixed by the
12  General Appropriations Act. The computation of these payments
13  must be made in compliance with all federal regulations and
14  the methodologies described in ss. 409.911, 409.9112, and
15  409.9113.
16         (d)  The agency is authorized to limit inflationary
17  increases for outpatient hospital services as directed by the
18  General Appropriations Act.
19         (2)(a)1.  Reimbursement to nursing homes licensed under
20  part II of chapter 400 and state-owned-and-operated
21  intermediate care facilities for the developmentally disabled
22  licensed under chapter 393 must be made prospectively.
23         2.  Unless otherwise limited or directed in the General
24  Appropriations Act, reimbursement to hospitals licensed under
25  part I of chapter 395 for the provision of swing-bed nursing
26  home services must be made on the basis of the average
27  statewide nursing home payment, and reimbursement to a
28  hospital licensed under part I of chapter 395 for the
29  provision of skilled nursing services must be made on the
30  basis of the average nursing home payment for those services
31  in the county in which the hospital is located. When a
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  hospital is located in a county that does not have any
 2  community nursing homes, reimbursement must be determined by
 3  averaging the nursing home payments, in counties that surround
 4  the county in which the hospital is located. Reimbursement to
 5  hospitals, including Medicaid payment of Medicare copayments,
 6  for skilled nursing services shall be limited to 30 days,
 7  unless a prior authorization has been obtained from the
 8  agency. Medicaid reimbursement may be extended by the agency
 9  beyond 30 days, and approval must be based upon verification
10  by the patient's physician that the patient requires
11  short-term rehabilitative and recuperative services only, in
12  which case an extension of no more than 15 days may be
13  approved. Reimbursement to a hospital licensed under part I of
14  chapter 395 for the temporary provision of skilled nursing
15  services to nursing home residents who have been displaced as
16  the result of a natural disaster or other emergency may not
17  exceed the average county nursing home payment for those
18  services in the county in which the hospital is located and is
19  limited to the period of time which the agency considers
20  necessary for continued placement of the nursing home
21  residents in the hospital.
22         (b)  Subject to any limitations or directions provided
23  for in the General Appropriations Act, the agency shall
24  establish and implement a Florida Title XIX Long-Term Care
25  Reimbursement Plan (Medicaid) for nursing home care in order
26  to provide care and services in conformance with the
27  applicable state and federal laws, rules, regulations, and
28  quality and safety standards and to ensure that individuals
29  eligible for medical assistance have reasonable geographic
30  access to such care. The agency shall not provide for any
31  increases in reimbursement rates to nursing homes associated
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  with changes in ownership. Under the plan, interim rate
 2  adjustments shall not be granted to reflect increases in the
 3  cost of general or professional liability insurance for
 4  nursing homes unless the following criteria are met: have at
 5  least a 65 percent Medicaid utilization in the most recent
 6  cost report submitted to the agency, and the increase in
 7  general or professional liability costs to the facility for
 8  the most recent policy period affects the total Medicaid per
 9  diem by at least 5 percent. This rate adjustment shall not
10  result in the per diem exceeding the class ceiling. This
11  provision shall apply only to fiscal year 2000-2001 and shall
12  be implemented to the extent existing appropriations are
13  available. The agency shall report to the Governor, the
14  Speaker of the House of Representatives, and the President of
15  the Senate by December 31, 2000, on the cost of liability
16  insurance for Florida nursing homes for fiscal years 1999 and
17  2000 and the extent to which these costs are not being
18  compensated by the Medicaid program. Medicaid-participating
19  nursing homes shall be required to report to the agency
20  information necessary to compile this report. Effective no
21  earlier than the rate-setting period beginning April 1, 1999,
22  the agency shall establish a case-mix reimbursement
23  methodology for the rate of payment for long-term care
24  services for nursing home residents. The agency shall compute
25  a per diem rate for Medicaid residents, adjusted for case mix,
26  which is based on a resident classification system that
27  accounts for the relative resource utilization by different
28  types of residents and which is based on level-of-care data
29  and other appropriate data. The case-mix methodology developed
30  by the agency shall take into account the medical, behavioral,
31  and cognitive deficits of residents. In developing the
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  reimbursement methodology, the agency shall evaluate and
 2  modify other aspects of the reimbursement plan as necessary to
 3  improve the overall effectiveness of the plan with respect to
 4  the costs of patient care, operating costs, and property
 5  costs. In the event adequate data are not available, the
 6  agency is authorized to adjust the patient's care component or
 7  the per diem rate to more adequately cover the cost of
 8  services provided in the patient's care component. The agency
 9  shall work with the Department of Elderly Affairs, the Florida
10  Health Care Association, and the Florida Association of Homes
11  for the Aging in developing the methodology. It is the intent
12  of the Legislature that the reimbursement plan achieve the
13  goal of providing access to health care for nursing home
14  residents who require large amounts of care while encouraging
15  diversion services as an alternative to nursing home care for
16  residents who can be served within the community. The agency
17  shall base the establishment of any maximum rate of payment,
18  whether overall or component, on the available moneys as
19  provided for in the General Appropriations Act. The agency may
20  base the maximum rate of payment on the results of
21  scientifically valid analysis and conclusions derived from
22  objective statistical data pertinent to the particular maximum
23  rate of payment.
24         (3)  Subject to any limitations or directions provided
25  for in the General Appropriations Act, the following Medicaid
26  services and goods may be reimbursed on a fee-for-service
27  basis. For each allowable service or goods furnished in
28  accordance with Medicaid rules, policy manuals, handbooks, and
29  state and federal law, the payment shall be the amount billed
30  by the provider, the provider's usual and customary charge, or
31  the maximum allowable fee established by the agency, whichever
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  amount is less, with the exception of those services or goods
 2  for which the agency makes payment using a methodology based
 3  on capitation rates, average costs, or negotiated fees.
 4         (a)  Advanced registered nurse practitioner services.
 5         (b)  Birth center services.
 6         (c)  Chiropractic services.
 7         (d)  Community mental health services.
 8         (e)  Dental services, including oral and maxillofacial
 9  surgery.
10         (f)  Durable medical equipment.
11         (g)  Hearing services.
12         (h)  Occupational therapy for Medicaid recipients under
13  age 21.
14         (i)  Optometric services.
15         (j)  Orthodontic services.
16         (k)  Personal care for Medicaid recipients under age
17  21.
18         (l)  Physical therapy for Medicaid recipients under age
19  21.
20         (m)  Physician assistant services.
21         (n)  Podiatric services.
22         (o)  Portable X-ray services.
23         (p)  Private-duty nursing for Medicaid recipients under
24  age 21.
25         (q)  Registered nurse first assistant services.
26         (r)  Respiratory therapy for Medicaid recipients under
27  age 21.
28         (s)  Speech therapy for Medicaid recipients under age
29  21.
30         (t)  Visual services.
31         (4)  Subject to any limitations or directions provided
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  for in the General Appropriations Act, alternative health
 2  plans, health maintenance organizations, and prepaid health
 3  plans shall be reimbursed a fixed, prepaid amount negotiated,
 4  or competitively bid pursuant to s. 287.057, by the agency and
 5  prospectively paid to the provider monthly for each Medicaid
 6  recipient enrolled.  The amount may not exceed the average
 7  amount the agency determines it would have paid, based on
 8  claims experience, for recipients in the same or similar
 9  category of eligibility.  The agency shall calculate
10  capitation rates on a regional basis and, beginning September
11  1, 1995, shall include age-band differentials in such
12  calculations.  Effective July 1, 2001, the cost of exempting
13  statutory teaching hospitals, specialty hospitals, and
14  community hospital education program hospitals from
15  reimbursement ceilings and the cost of special Medicaid
16  payments shall not be included in premiums paid to health
17  maintenance organizations or prepaid health care plans.
18         (5)  An ambulatory surgical center shall be reimbursed
19  the lesser of the amount billed by the provider or the
20  Medicare-established allowable amount for the facility.
21         (6)  A provider of early and periodic screening,
22  diagnosis, and treatment services to Medicaid recipients who
23  are children under age 21 shall be reimbursed using an
24  all-inclusive rate stipulated in a fee schedule established by
25  the agency. A provider of the visual, dental, and hearing
26  components of such services shall be reimbursed the lesser of
27  the amount billed by the provider or the Medicaid maximum
28  allowable fee established by the agency.
29         (7)  A provider of family planning services shall be
30  reimbursed the lesser of the amount billed by the provider or
31  an all-inclusive amount per type of visit for physicians and
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  advanced registered nurse practitioners, as established by the
 2  agency in a fee schedule.
 3         (8)  A provider of home-based or community-based
 4  services rendered pursuant to a federally approved waiver
 5  shall be reimbursed based on an established or negotiated rate
 6  for each service. These rates shall be established according
 7  to an analysis of the expenditure history and prospective
 8  budget developed by each contract provider participating in
 9  the waiver program, or under any other methodology adopted by
10  the agency and approved by the Federal Government in
11  accordance with the waiver. Effective July 1, 1996, privately
12  owned and operated community-based residential facilities
13  which meet agency requirements and which formerly received
14  Medicaid reimbursement for the optional intermediate care
15  facility for the mentally retarded service may participate in
16  the developmental services waiver as part of a
17  home-and-community-based continuum of care for Medicaid
18  recipients who receive waiver services.
19         (9)  A provider of home health care services or of
20  medical supplies and appliances shall be reimbursed on the
21  basis of competitive bidding or for the lesser of the amount
22  billed by the provider or the agency's established maximum
23  allowable amount, except that, in the case of the rental of
24  durable medical equipment, the total rental payments may not
25  exceed the purchase price of the equipment over its expected
26  useful life or the agency's established maximum allowable
27  amount, whichever amount is less.
28         (10)  A hospice shall be reimbursed through a
29  prospective system for each Medicaid hospice patient at
30  Medicaid rates using the methodology established for hospice
31  reimbursement pursuant to Title XVIII of the federal Social
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  Security Act.
 2         (11)  A provider of independent laboratory services
 3  shall be reimbursed the least of the amount billed by the
 4  provider, the provider's usual and customary charge, or the
 5  Medicaid maximum allowable fee established by the agency.
 6         (12)(a)  A physician shall be reimbursed the lesser of
 7  the amount billed by the provider or the Medicaid maximum
 8  allowable fee established by the agency.
 9         (b)  The agency shall adopt a fee schedule, subject to
10  any limitations or directions provided for in the General
11  Appropriations Act, based on a resource-based relative value
12  scale for pricing Medicaid physician services. Under this fee
13  schedule, physicians shall be paid a dollar amount for each
14  service based on the average resources required to provide the
15  service, including, but not limited to, estimates of average
16  physician time and effort, practice expense, and the costs of
17  professional liability insurance.  The fee schedule shall
18  provide increased reimbursement for preventive and primary
19  care services and lowered reimbursement for specialty services
20  by using at least two conversion factors, one for cognitive
21  services and another for procedural services.  The fee
22  schedule shall not increase total Medicaid physician
23  expenditures unless funds are specifically provided for such
24  increase. However, in no case may any increase result in
25  physicians being paid more than the Medicare fee moneys are
26  available, and shall be phased in over a 2-year period
27  beginning on July 1, 1994. The Agency for Health Care
28  Administration shall seek the advice of a 16-member advisory
29  panel in formulating and adopting the fee schedule.  The panel
30  shall consist of Medicaid physicians licensed under chapters
31  458 and 459 and shall be composed of 50 percent primary care
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    Amendment No. ___ (for drafter's use only)
 1  physicians and 50 percent specialty care physicians.
 2         (c)  Notwithstanding paragraph (b), reimbursement fees
 3  to physicians for providing total obstetrical services to
 4  Medicaid recipients, which include prenatal, delivery, and
 5  postpartum care, shall be at least $1,500 per delivery for a
 6  pregnant woman with low medical risk and at least $2,000 per
 7  delivery for a pregnant woman with high medical risk. However,
 8  reimbursement to physicians working in Regional Perinatal
 9  Intensive Care Centers designated pursuant to chapter 383, for
10  services to certain pregnant Medicaid recipients with a high
11  medical risk, may be made according to obstetrical care and
12  neonatal care groupings and rates established by the agency.
13  Nurse midwives licensed under part I of chapter 464 or
14  midwives licensed under chapter 467 shall be reimbursed at no
15  less than 80 percent of the low medical risk fee. The agency
16  shall by rule determine, for the purpose of this paragraph,
17  what constitutes a high or low medical risk pregnant woman and
18  shall not pay more based solely on the fact that a caesarean
19  section was performed, rather than a vaginal delivery. The
20  agency shall by rule determine a prorated payment for
21  obstetrical services in cases where only part of the total
22  prenatal, delivery, or postpartum care was performed. The
23  Department of Health shall adopt rules for appropriate
24  insurance coverage for midwives licensed under chapter 467.
25  Prior to the issuance and renewal of an active license, or
26  reactivation of an inactive license for midwives licensed
27  under chapter 467, such licensees shall submit proof of
28  coverage with each application.
29         (13)  Medicare premiums for persons eligible for both
30  Medicare and Medicaid coverage shall be paid at the rates
31  established by Title XVIII of the Social Security Act.  For
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                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  Medicare services rendered to Medicaid-eligible persons,
 2  Medicaid shall pay Medicare deductibles and coinsurance as
 3  follows:
 4         (a)  Medicaid shall make no payment toward deductibles
 5  and coinsurance for any service that is not covered by
 6  Medicaid.
 7         (b)  Medicaid's financial obligation for deductibles
 8  and coinsurance payments shall be based on Medicare allowable
 9  fees, not on a provider's billed charges.
10         (c)  Medicaid will pay no portion of Medicare
11  deductibles and coinsurance when payment that Medicare has
12  made for the service equals or exceeds what Medicaid would
13  have paid if it had been the sole payor.  The combined payment
14  of Medicare and Medicaid shall not exceed the amount Medicaid
15  would have paid had it been the sole payor. The Legislature
16  finds that there has been confusion regarding the
17  reimbursement for services rendered to dually eligible
18  Medicare beneficiaries. Accordingly, the Legislature clarifies
19  that it has always been the intent of the Legislature before
20  and after 1991 that, in reimbursing in accordance with fees
21  established by Title XVIII for premiums, deductibles, and
22  coinsurance for Medicare services rendered by physicians to
23  Medicaid eligible persons, physicians be reimbursed at the
24  lesser of the amount billed by the physician or the Medicaid
25  maximum allowable fee established by the Agency for Health
26  Care Administration, as is permitted by federal law. It has
27  never been the intent of the Legislature with regard to such
28  services rendered by physicians that Medicaid be required to
29  provide any payment for deductibles, coinsurance, or
30  copayments for Medicare cost sharing, or any expenses incurred
31  relating thereto, in excess of the payment amount provided for
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                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  under the State Medicaid plan for such service. This payment
 2  methodology is applicable even in those situations in which
 3  the payment for Medicare cost sharing for a qualified Medicare
 4  beneficiary with respect to an item or service is reduced or
 5  eliminated. This expression of the Legislature is in
 6  clarification of existing law and shall apply to payment for,
 7  and with respect to provider agreements with respect to, items
 8  or services furnished on or after the effective date of this
 9  act. This paragraph applies to payment by Medicaid for items
10  and services furnished before the effective date of this act
11  if such payment is the subject of a lawsuit that is based on
12  the provisions of this section, and that is pending as of, or
13  is initiated after, the effective date of this act.
14         (d)  Notwithstanding The following provisions are
15  exceptions to paragraphs (a)-(c):
16         1.  Medicaid payments for Nursing Home Medicare part A
17  coinsurance shall be the lesser of the Medicare coinsurance
18  amount or the Medicaid nursing home per diem rate.
19         2.  Medicaid shall pay all deductibles and coinsurance
20  for Nursing Home Medicare part B services.
21         2.3.  Medicaid shall pay all deductibles and
22  coinsurance for Medicare-eligible recipients receiving
23  freestanding end stage renal dialysis center services.
24         4.  Medicaid shall pay all deductibles and coinsurance
25  for hospital outpatient Medicare part B services.
26         3.5.  Medicaid payments for general hospital inpatient
27  services shall be limited to the Medicare deductible per spell
28  of illness.  Medicaid shall make no payment toward coinsurance
29  for Medicare general hospital inpatient services.
30         4.6.  Medicaid shall pay all deductibles and
31  coinsurance for Medicare emergency transportation services
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  provided by ambulances licensed pursuant to chapter 401.
 2         (14)  A provider of prescribed drugs shall be
 3  reimbursed the least of the amount billed by the provider, the
 4  provider's usual and customary charge, or the Medicaid maximum
 5  allowable fee established by the agency, plus a dispensing
 6  fee. The agency is directed to implement a variable dispensing
 7  fee for payments for prescribed medicines while ensuring
 8  continued access for Medicaid recipients.  The variable
 9  dispensing fee may be based upon, but not limited to, either
10  or both the volume of prescriptions dispensed by a specific
11  pharmacy provider and the volume of prescriptions dispensed to
12  an individual recipient. The agency is authorized to limit
13  reimbursement for prescribed medicine in order to comply with
14  any limitations or directions provided for in the General
15  Appropriations Act, which may include implementing a
16  prospective or concurrent utilization review program.
17         (15)  A provider of primary care case management
18  services rendered pursuant to a federally approved waiver
19  shall be reimbursed by payment of a fixed, prepaid monthly sum
20  for each Medicaid recipient enrolled with the provider.
21         (16)  A provider of rural health clinic services and
22  federally qualified health center services shall be reimbursed
23  a rate per visit based on total reasonable costs of the
24  clinic, as determined by the agency in accordance with federal
25  regulations.
26         (17)  A provider of targeted case management services
27  shall be reimbursed pursuant to an established fee, except
28  where the Federal Government requires a public provider be
29  reimbursed on the basis of average actual costs.
30         (18)  Unless otherwise provided for in the General
31  Appropriations Act, a provider of transportation services
                                  20
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  shall be reimbursed the lesser of the amount billed by the
 2  provider or the Medicaid maximum allowable fee established by
 3  the agency, except when the agency has entered into a direct
 4  contract with the provider, or with a community transportation
 5  coordinator, for the provision of an all-inclusive service, or
 6  when services are provided pursuant to an agreement negotiated
 7  between the agency and the provider.  The agency, as provided
 8  for in s. 427.0135, shall purchase transportation services
 9  through the community coordinated transportation system, if
10  available, unless the agency determines a more cost-effective
11  method for Medicaid clients. Nothing in this subsection shall
12  be construed to limit or preclude the agency from contracting
13  for services using a prepaid capitation rate or from
14  establishing maximum fee schedules, individualized
15  reimbursement policies by provider type, negotiated fees,
16  prior authorization, competitive bidding, increased use of
17  mass transit, or any other mechanism that the agency considers
18  efficient and effective for the purchase of services on behalf
19  of Medicaid clients, including implementing a transportation
20  eligibility process. The agency shall not be required to
21  contract with any community transportation coordinator or
22  transportation operator that has been determined by the
23  agency, the Department of Legal Affairs Medicaid Fraud Control
24  Unit, or any other state or federal agency to have engaged in
25  any abusive or fraudulent billing activities. The agency is
26  authorized to make other changes necessary to secure approval
27  of federal waivers needed to permit federal financing of
28  Medicaid transportation services at the service matching rate
29  rather than the administrative matching rate.
30         (19)  County health department services may be
31  reimbursed a rate per visit based on total reasonable costs of
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  the clinic, as determined by the agency in accordance with
 2  federal regulations under the authority of 42 C.F.R. s.
 3  431.615.
 4         (20)  A renal dialysis facility that provides dialysis
 5  services under s. 409.906(9) must be reimbursed the lesser of
 6  the amount billed by the provider, the provider's usual and
 7  customary charge, or the maximum allowable fee established by
 8  the agency, whichever amount is less.
 9         (21)  The agency shall reimburse school districts which
10  certify the state match pursuant to ss. 236.0812 and 409.9071
11  for the federal portion of the school district's allowable
12  costs to deliver the services, based on the reimbursement
13  schedule.  The school district shall determine the costs for
14  delivering services as authorized in ss. 236.0812 and 409.9071
15  for which the state match will be certified. Reimbursement of
16  school-based providers is contingent on such providers being
17  enrolled as Medicaid providers and meeting the qualifications
18  contained in 42 C.F.R. s. 440.110, unless otherwise waived by
19  the federal Health Care Financing Administration. Speech
20  therapy providers who are certified through the Department of
21  Education pursuant to rule 6A-4.0176, Florida Administrative
22  Code, are eligible for reimbursement for services that are
23  provided on school premises. Any employee of the school
24  district who has been fingerprinted and has received a
25  criminal background check in accordance with Department of
26  Education rules and guidelines shall be exempt from any agency
27  requirements relating to criminal background checks.
28  Elementary, middle, and secondary schools affiliated with
29  Florida universities may separately enroll in the Medicaid
30  certified school match program and may certify local
31  expenditures for Medicaid school health services and the
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  administrative claiming program.
 2         (22)  Reimbursement to state-owned-and-operated
 3  intermediate care facilities for the developmentally disabled
 4  licensed under chapter 393 must be made prospectively.
 5         Section 6.  Paragraph (c) of subsection (1), paragraph
 6  (b) of subsection (3), and subsection (7) of section 409.911,
 7  Florida Statutes, are amended to read:
 8         409.911  Disproportionate share program.--Subject to
 9  specific allocations established within the General
10  Appropriations Act and any limitations established pursuant to
11  chapter 216, the agency shall distribute, pursuant to this
12  section, moneys to hospitals providing a disproportionate
13  share of Medicaid or charity care services by making quarterly
14  Medicaid payments as required. Notwithstanding the provisions
15  of s. 409.915, counties are exempt from contributing toward
16  the cost of this special reimbursement for hospitals serving a
17  disproportionate share of low-income patients.
18         (1)  Definitions.--As used in this section and s.
19  409.9112:
20         (c)  "Base Medicaid per diem" means the hospital's
21  Medicaid per diem rate initially established by the Agency for
22  Health Care Administration on January 1, 1999 prior to the
23  beginning of each state fiscal year.  The base Medicaid per
24  diem rate shall not include any additional per diem increases
25  received as a result of the disproportionate share
26  distribution.
27         (3)  In computing the disproportionate share rate:
28         (b)  The agency shall use 1994 the most recent calendar
29  year audited financial data available at the beginning of each
30  state fiscal year for the calculation of disproportionate
31  share payments under this section.
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                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1         (7)  For fiscal year 1991-1992 and all years other than
 2  1992-1993, The following criteria shall be used in determining
 3  the disproportionate share percentage:
 4         (a)  If the disproportionate share rate is less than 10
 5  percent, the disproportionate share percentage is zero and
 6  there is no additional payment.
 7         (b)  If the disproportionate share rate is greater than
 8  or equal to 10 percent, but less than 20 percent, then the
 9  disproportionate share percentage is 1.8478498 2.1544347.
10         (c)  If the disproportionate share rate is greater than
11  or equal to 20 percent, but less than 30 percent, then the
12  disproportionate share percentage is 3.4145488 4.6415888766.
13         (d)  If the disproportionate share rate is greater than
14  or equal to 30 percent, but less than 40 percent, then the
15  disproportionate share percentage is 6.3095734 10.0000001388.
16         (e)  If the disproportionate share rate is greater than
17  or equal to 40 percent, but less than 50 percent, then the
18  disproportionate share percentage is 11.6591440 21.544347299.
19         (f)  If the disproportionate share rate is greater than
20  or equal to 50 percent, but less than 60 percent, then the
21  disproportionate share percentage is 73.5642254 46.41588941.
22         (g)  If the disproportionate share rate is greater than
23  or equal to 60 percent but less than 72.5 percent, then the
24  disproportionate share percentage is 135.9356391 100.
25         (h)  If the disproportionate share rate is greater than
26  or equal to 72.5 percent, then the disproportionate share
27  percentage is 170.
28         Section 7.  Section 409.91195, Florida Statutes, is
29  amended to read:
30         409.91195  Medicaid Pharmaceutical and Therapeutics
31  Committee; restricted drug formulary.--There is created a
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  Medicaid Pharmaceutical and Therapeutics Committee for the
 2  purpose of developing a restricted drug formulary. The
 3  committee shall develop and implement a voluntary Medicaid
 4  preferred prescribed drug designation program. The program
 5  established under this section shall provide information to
 6  Medicaid providers on medically appropriate and cost-efficient
 7  prescription drug therapies through the development and
 8  publication of a restricted drug formulary voluntary Medicaid
 9  preferred prescribed-drug list.
10         (1)  The Medicaid Pharmaceutical and Therapeutics
11  Committee shall be comprised of nine members as specified in
12  42 U.S.C. s. 1396 appointed as follows:  one practicing
13  physician licensed under chapter 458, appointed by the Speaker
14  of the House of Representatives from a list of recommendations
15  from the Florida Medical Association; one practicing physician
16  licensed under chapter 459, appointed by the Speaker of the
17  House of Representatives from a list of recommendations from
18  the Florida Osteopathic Medical Association; one practicing
19  physician licensed under chapter 458, appointed by the
20  President of the Senate from a list of recommendations from
21  the Florida Academy of Family Physicians; one practicing
22  podiatric physician licensed under chapter 461, appointed by
23  the President of the Senate from a list of recommendations
24  from the Florida Podiatric Medical Association; one trauma
25  surgeon licensed under chapter 458, appointed by the Speaker
26  of the House of Representatives from a list of recommendations
27  from the American College of Surgeons; one practicing dentist
28  licensed under chapter 466, appointed by the President of the
29  Senate from a list of recommendations from the Florida Dental
30  Association; one practicing pharmacist licensed under chapter
31  465, appointed by the Governor from a list of recommendations
                                  25
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                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  from the Florida Pharmacy Association; one practicing
 2  pharmacist licensed under chapter 465, appointed by the
 3  Governor from a list of recommendations from the Florida
 4  Society of Health System Pharmacists; and one health care
 5  professional with expertise in clinical pharmacology appointed
 6  by the Governor from a list of recommendations from the
 7  Pharmaceutical Research and Manufacturers Association. The
 8  members shall be appointed to serve for terms of 2 years from
 9  the date of their appointment. Members may be appointed to
10  more than one term. The Agency for Health Care Administration
11  shall serve as staff for the committee and assist them with
12  all ministerial duties.
13         (2)  With the advice of Upon recommendation by the
14  committee, the Agency for Health Care Administration shall
15  establish a restricted drug formulary the voluntary Medicaid
16  preferred prescribed-drug list. Upon further recommendation by
17  the committee, the agency shall add to, delete from, or modify
18  the list. The committee shall also review requests for
19  additions to, deletions from, or modifications of the
20  formulary as presented to it by the agency; and, upon further
21  recommendation by the committee, the agency shall add to,
22  delete from, or modify the formulary as appropriate list. The
23  list shall be adopted by the committee in consultation with
24  medical specialists, when appropriate, using the following
25  criteria:  use of the list shall be voluntary by providers and
26  the list must provide for medically appropriate drug therapies
27  for Medicaid patients which achieve cost savings in the
28  Medicaid program.
29         (3)  The Agency for Health Care Administration shall
30  publish and disseminate the restricted drug formulary
31  voluntary Medicaid preferred prescribed drug list to all
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  Medicaid prescribing providers in the state.
 2         Section 8.  Subsection (2) of section 409.9116, Florida
 3  Statutes, is amended to read:
 4         409.9116  Disproportionate share/financial assistance
 5  program for rural hospitals.--In addition to the payments made
 6  under s. 409.911, the Agency for Health Care Administration
 7  shall administer a federally matched disproportionate share
 8  program and a state-funded financial assistance program for
 9  statutory rural hospitals. The agency shall make
10  disproportionate share payments to statutory rural hospitals
11  that qualify for such payments and financial assistance
12  payments to statutory rural hospitals that do not qualify for
13  disproportionate share payments. The disproportionate share
14  program payments shall be limited by and conform with federal
15  requirements. Funds shall be distributed quarterly in each
16  fiscal year for which an appropriation is made.
17  Notwithstanding the provisions of s. 409.915, counties are
18  exempt from contributing toward the cost of this special
19  reimbursement for hospitals serving a disproportionate share
20  of low-income patients.
21         (2)  The agency shall use the following formula for
22  distribution of funds for the disproportionate share/financial
23  assistance program for rural hospitals:
24         (a)  The agency shall first determine a preliminary
25  payment amount for each rural hospital by allocating all
26  available state funds using the following formula:
27  
28                  PDAER = (TAERH x TARH)/STAERH
29  
30  Where:
31         PDAER = preliminary distribution amount for each rural
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                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  hospital.
 2         TAERH = total amount earned by each rural hospital.
 3         TARH = total amount appropriated or distributed under
 4  this section.
 5         STAERH = sum of total amount earned by each rural
 6  hospital.
 7         (b)  Federal matching funds for the disproportionate
 8  share program shall then be calculated for those hospitals
 9  that qualify for disproportionate share in paragraph (a).
10         (c)  The state-funds-only payment amount shall then be
11  calculated for each hospital using the following formula:
12  
13         SFOER = Maximum value of (1) SFOL - PDAER or (2) 0
14  
15  Where:
16         SFOER = state-funds-only payment amount for each rural
17  hospital.
18         SFOL = state-funds-only payment level, which is set at
19  4 percent of TARH.
20  
21  In calculating the SFOER, PDAER includes federal matching
22  funds from paragraph (b).
23         (d)  The adjusted total amount allocated to the rural
24  disproportionate share program shall then be calculated using
25  the following formula:
26  
27                     ATARH = (TARH - SSFOER)
28  
29  Where:
30         ATARH = adjusted total amount appropriated or
31  distributed under this section.
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                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1         SSFOER = sum of the state-funds-only payment amount
 2  calculated under paragraph (c) for all rural hospitals.
 3         (e)  The distribution of the adjusted total amount of
 4  rural disproportionate share hospital funds shall then be
 5  calculated using the following formula:
 6  
 7                 DAERH = [(TAERH x ATARH)/STAERH]
 8  
 9  Where:
10         DAERH = distribution amount for each rural hospital.
11         (f)  Federal matching funds for the disproportionate
12  share program shall then be calculated for those hospitals
13  that qualify for disproportionate share in paragraph (e).
14         (g)  State-funds-only payment amounts calculated under
15  paragraph (c) and corresponding federal matching funds are
16  then added to the results of paragraph (f) to determine the
17  total distribution amount for each rural hospital.  In
18  determining the payment amount for each rural hospital under
19  this section, the agency shall first allocate all available
20  state funds by the following formula:
21  
22                   DAER = (TAERH x TARH)/STAERH
23  
24  Where:
25         DAER = distribution amount for each rural hospital.
26         STAERH = sum of total amount earned by each rural
27  hospital.
28         TAERH = total amount earned by each rural hospital.
29         TARH = total amount appropriated or distributed under
30  this section.
31  
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  Federal matching funds for the disproportionate share program
 2  shall then be calculated for those hospitals that qualify for
 3  disproportionate share payments under this section.
 4         Section 9.  Paragraph (b) of subsection (3),
 5  subsections (26), and paragraph (a) of subsection (37) of
 6  section 409.912, Florida Statutes, are amended to read:
 7         409.912  Cost-effective purchasing of health care.--The
 8  agency shall purchase goods and services for Medicaid
 9  recipients in the most cost-effective manner consistent with
10  the delivery of quality medical care.  The agency shall
11  maximize the use of prepaid per capita and prepaid aggregate
12  fixed-sum basis services when appropriate and other
13  alternative service delivery and reimbursement methodologies,
14  including competitive bidding pursuant to s. 287.057, designed
15  to facilitate the cost-effective purchase of a case-managed
16  continuum of care. The agency shall also require providers to
17  minimize the exposure of recipients to the need for acute
18  inpatient, custodial, and other institutional care and the
19  inappropriate or unnecessary use of high-cost services.
20         (3)  The agency may contract with:
21         (b)  An entity that provides is providing comprehensive
22  behavioral health care services to certain Medicaid recipients
23  through a capitated, prepaid arrangement pursuant to the
24  federal waiver provided for by s. 409.905(5). Such an entity
25  must be licensed under chapter 624, chapter 636, or chapter
26  641 and must possess the clinical systems and operational
27  competence to manage risk and provide comprehensive behavioral
28  health care to Medicaid recipients. As used in this paragraph,
29  the term "comprehensive behavioral health care services" means
30  covered mental health and substance abuse treatment services
31  that are available to Medicaid recipients. The secretary of
                                  30
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  the Department of Children and Family Services shall approve
 2  provisions of procurements related to children in the
 3  department's care or custody prior to enrolling such children
 4  in a prepaid behavioral health plan. Any contract awarded
 5  under this paragraph must be competitively procured. In
 6  developing the behavioral health care prepaid plan procurement
 7  document, the agency shall ensure that the procurement
 8  document requires the contractor to develop and implement a
 9  plan to ensure compliance with s. 394.4574 related to services
10  provided to residents of licensed assisted living facilities
11  that hold a limited mental health license. The agency must
12  ensure that Medicaid recipients have available the choice of
13  at least two managed care plans for their behavioral health
14  care services. The agency may continue to reimburse for
15  substance abuse treatment services on a fee-for-service basis
16  until the agency finds that adequate funds are available for
17  capitated, prepaid arrangements or until the agency determines
18  that a capitated arrangement will not adversely affect the
19  availability of substance abuse treatment services.
20         1.  By January 1, 2001, the agency shall modify the
21  contracts with the entities providing comprehensive inpatient
22  and outpatient mental health care services to Medicaid
23  recipients in Hillsborough, Highlands, Hardee, Manatee, and
24  Polk Counties, to include substance-abuse-treatment services.
25         2.  By December 31, 2001, the agency shall contract
26  with entities providing comprehensive behavioral health care
27  services to Medicaid recipients through capitated, prepaid
28  arrangements in Charlotte, Collier, DeSoto, Escambia, Glades,
29  Hendry, Lee, Okaloosa, Pasco, Pinellas, Santa Rosa, Sarasota,
30  and Walton Counties. The agency may contract with entities
31  providing comprehensive behavioral health care services to
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  Medicaid recipients through capitated, prepaid arrangements in
 2  Alachua County. The agency may determine if Sarasota County
 3  shall be included as a separate catchment area or included in
 4  any other agency geographic area.
 5         1.3.  Children residing in a Department of Juvenile
 6  Justice residential program approved as a Medicaid behavioral
 7  health overlay services provider shall not be included in a
 8  behavioral health care prepaid health plan pursuant to this
 9  paragraph.
10         2.4.  In converting to a prepaid system of delivery,
11  the agency shall in its procurement document require an entity
12  providing comprehensive behavioral health care services to
13  prevent the displacement of indigent care patients by
14  enrollees in the Medicaid prepaid health plan providing
15  behavioral health care services from facilities receiving
16  state funding to provide indigent behavioral health care, to
17  facilities licensed under chapter 395 which do not receive
18  state funding for indigent behavioral health care, or
19  reimburse the unsubsidized facility for the cost of behavioral
20  health care provided to the displaced indigent care patient.
21         3.5.  Traditional community mental health providers
22  under contract with the Department of Children and Family
23  Services pursuant to part IV of chapter 394 and inpatient
24  mental health providers licensed pursuant to chapter 395 must
25  be offered an opportunity to accept or decline a contract to
26  participate in any provider network for prepaid behavioral
27  health services.
28         (26)  The agency shall conduct perform choice
29  counseling, enrollments, and disenrollments for Medicaid
30  recipients who are eligible for MediPass or managed care
31  plans.  Notwithstanding the prohibition contained in paragraph
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  (18)(f), managed care plans may perform preenrollments of
 2  Medicaid recipients under the supervision of the agency or its
 3  agents.  For the purposes of this section, "preenrollment"
 4  means the provision of marketing and educational materials to
 5  a Medicaid recipient and assistance in completing the
 6  application forms, but shall not include actual enrollment
 7  into a managed care plan.  An application for enrollment shall
 8  not be deemed complete until the agency or its agent verifies
 9  that the recipient made an informed, voluntary choice.  The
10  agency, in cooperation with the Department of Children and
11  Family Services, may test new marketing initiatives to inform
12  Medicaid recipients about their managed care options at
13  selected sites.  The agency shall report to the Legislature on
14  the effectiveness of such initiatives.  The agency may
15  contract with a third party to perform managed care plan and
16  MediPass choice-counseling, enrollment, and disenrollment
17  services for Medicaid recipients and is authorized to adopt
18  rules to implement such services. The agency may adjust the
19  capitation rate only to cover the costs of a third-party
20  choice-counseling, enrollment, and disenrollment contract, and
21  for agency supervision and management of the managed care plan
22  choice-counseling, enrollment, and disenrollment contract.
23         (37)(a)  The agency shall implement a Medicaid
24  prescribed-drug spending-control program that includes the
25  following components:
26         1.  Medicaid prescribed-drug coverage for brand-name
27  drugs for adult Medicaid recipients not residing in nursing
28  homes or other institutions is limited to the dispensing of
29  four brand-name drugs per month per recipient. Children and
30  institutionalized adults are exempt from this restriction.
31  Antiretroviral agents are excluded from this limitation. No
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  requirements for prior authorization or other restrictions on
 2  medications used to treat mental illnesses such as
 3  schizophrenia, severe depression, or bipolar disorder may be
 4  imposed on Medicaid recipients. Medications that will be
 5  available without restriction for persons with mental
 6  illnesses include atypical antipsychotic medications,
 7  conventional antipsychotic medications, selective serotonin
 8  reuptake inhibitors, and other medications used for the
 9  treatment of serious mental illnesses. The agency shall also
10  limit the amount of a prescribed drug dispensed to no more
11  than a 34-day supply. The agency shall continue to provide
12  unlimited generic drugs, contraceptive drugs and items, and
13  diabetic supplies. The agency may authorize exceptions to the
14  brand-name-drug restriction or to the restricted drug
15  formulary, based upon the treatment needs of the patients,
16  only when such exceptions are based on prior consultation
17  provided by the agency or an agency contractor, but the agency
18  must establish procedures to ensure that:
19         a.  There will be a response to a request for prior
20  consultation by telephone or other telecommunication device
21  within 24 hours after receipt of a request for prior
22  consultation; and
23         b.  A 72-hour supply of the drug prescribed will be
24  provided in an emergency or when the agency does not provide a
25  response within 24 hours as required by sub-subparagraph a.
26         2.  Reimbursement to pharmacies for Medicaid prescribed
27  drugs shall be set at the lowest of the average wholesale
28  price less 13.25 percent, the wholesaler acquisition cost plus
29  7 percent, the federal or state pricing limit, or the
30  provider's usual and customary charge.
31         3.  The agency shall develop and implement a process
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  for managing the drug therapies of Medicaid recipients who are
 2  using significant numbers of prescribed drugs each month. The
 3  management process may include, but is not limited to,
 4  comprehensive, physician-directed medical-record reviews,
 5  claims analyses, and case evaluations to determine the medical
 6  necessity and appropriateness of a patient's treatment plan
 7  and drug therapies. The agency may contract with a private
 8  organization to provide drug-program-management services.
 9         4.  The agency may limit the size of its pharmacy
10  network based on need, competitive bidding, price
11  negotiations, credentialing, or similar criteria. The agency
12  shall give special consideration to rural areas in determining
13  the size and location of pharmacies included in the Medicaid
14  pharmacy network. A pharmacy credentialing process may include
15  criteria such as a pharmacy's full-service status, location,
16  size, patient educational programs, patient consultation,
17  disease-management services, and other characteristics. The
18  agency may impose a moratorium on Medicaid pharmacy enrollment
19  when it is determined that it has a sufficient number of
20  Medicaid-participating providers.
21         5.  The agency shall develop and implement a program
22  that requires Medicaid practitioners who prescribe drugs to
23  use a counterfeit-proof prescription pad for Medicaid
24  prescriptions. The agency shall require the use of
25  standardized counterfeit-proof prescription pads by
26  Medicaid-participating prescribers or prescribers who write
27  prescriptions for Medicaid recipients. The agency may
28  implement the program in targeted geographic areas or
29  statewide.
30         6.  The agency may enter into arrangements that require
31  manufacturers of generic drugs prescribed to Medicaid
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  recipients to provide rebates of at least 15.1 percent of the
 2  average manufacturer price for the manufacturer's generic
 3  products. These arrangements shall require that if a
 4  generic-drug manufacturer pays federal rebates for
 5  Medicaid-reimbursed drugs at a level below 15.1 percent, the
 6  manufacturer must provide a supplemental rebate to the state
 7  in an amount necessary to achieve a 15.1-percent rebate level.
 8  If a generic-drug manufacturer raises its price in excess of
 9  the Consumer Price Index (Urban), the excess amount shall be
10  included in the supplemental rebate to the state.
11         7.  The agency may establish a restricted drug
12  formulary in accordance with 42 U.S.C. s. 1396r and, pursuant
13  to the establishment of such formulary, is authorized to
14  negotiate supplemental rebates from manufacturers at no less
15  than 10 percent of the average wholesale price on the last day
16  of each quarter. State supplemental manufacturer rebates shall
17  be invoiced concurrently with federal rebates.
18         Section 10.  Paragraph (a) of subsection (1) and
19  subsection (7) of section 409.915, Florida Statutes, are
20  amended to read:
21         409.915  County contributions to Medicaid.--Although
22  the state is responsible for the full portion of the state
23  share of the matching funds required for the Medicaid program,
24  in order to acquire a certain portion of these funds, the
25  state shall charge the counties for certain items of care and
26  service as provided in this section.
27         (1)  Each county shall participate in the following
28  items of care and service:
29         (a)  Payments for inpatient hospitalization in excess
30  of 10 12 days, but not in excess of 45 days, with the
31  exception of pregnant women and children whose income is in
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1  excess of the federal poverty level and who do not participate
 2  in the Medicaid medically needy program.
 3         (7)  Counties are exempt from contributing toward the
 4  cost of new exemptions on inpatient ceilings for statutory
 5  teaching hospitals, specialty hospitals, and community
 6  hospital education program hospitals that came into effect
 7  July 1, 2000, and for special Medicaid payments that came into
 8  effect on or after July 1, 2000.  Notwithstanding any
 9  provision of this section to the contrary, counties are exempt
10  from contributing toward the increased cost of hospital
11  inpatient services due to the elimination of ceilings on
12  Medicaid inpatient reimbursement rates paid to teaching
13  hospitals, specialty hospitals, and community health education
14  program hospitals and for special Medicaid reimbursements to
15  hospitals for which the Legislature has specifically
16  appropriated funds. This subsection is repealed on July 1,
17  2001.
18         Section 11.  Section 636.0145, Florida Statutes, is
19  repealed:
20         636.0145  Certain entities contracting with
21  Medicaid.--Notwithstanding the requirements of s.
22  409.912(3)(b), an entity that is providing comprehensive
23  inpatient and outpatient mental health care services to
24  certain Medicaid recipients in Hillsborough, Highlands,
25  Hardee, Manatee, and Polk Counties through a capitated,
26  prepaid arrangement pursuant to the federal waiver provided
27  for in s. 409.905(5) must become licensed under chapter 636 by
28  December 31, 1998. Any entity licensed under this chapter
29  which provides services solely to Medicaid recipients under a
30  contract with Medicaid shall be exempt from ss. 636.017,
31  636.018, 636.022, 636.028, and 636.034.
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1         Section 12.  The Legislature determines and declares
 2  that this act fulfills an important state interest.
 3         Section 13.  This act shall take effect July 1, 2001.
 4  
 5  
 6  ================ T I T L E   A M E N D M E N T ===============
 7  And the title is amended as follows:
 8         On page ,
 9  remove from the title of the bill:  
10  
11  and insert in lieu thereof:
12                  A bill to be entitled
13         An act relating to the Agency for Health Care
14         Administration; amending s. 409.8132, F.S.;
15         deleting the requirement to provide choice
16         counseling to eligible applicants under the
17         Medikids program component; amending s.
18         409.904, F.S.; authorizing payment for health
19         insurance premiums of Medicaid-eligible
20         individuals under certain circumstances;
21         amending s. 409.905, F.S.; updating and
22         revising provisions relating to hospital
23         inpatient behavioral health services provided
24         pursuant to federally approved waiver;
25         expanding provision of such services statewide;
26         amending s. 490.906, F.S.; providing additional
27         requirements for authorized intermediate care
28         services; adding assistive care services as an
29         optional Medicaid service for certain
30         recipients; amending s. 409.908, F.S.;
31         providing for reimbursement of hospital
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1         inpatient and outpatient services at certain
 2         rates; deleting redundant provisions;
 3         prohibiting increases in reimbursement rates to
 4         nursing homes associated with changes in
 5         ownership; precluding premium adjustments to
 6         managed care organizations under certain
 7         circumstances; revising provisions relating to
 8         physician reimbursement and the reimbursement
 9         fee schedule; deleting certain preferential
10         Medicaid payments for dually eligible
11         recipients; authorizing the securing through
12         waivers of federal financing of transportation
13         services at certain rates; authorizing public
14         schools affiliated with Florida universities to
15         separately enroll in the Medicaid certified
16         school match program and certify local
17         expenditures; amending s. 409.911, F.S.;
18         updating data requirements and share rates for
19         disproportionate share distributions; amending
20         s. 409.91195, F.S.; revising provisions
21         relating to the membership of the Medicaid
22         Pharmaceutical and Therapeutics Committee;
23         providing for development and distribution of a
24         restricted drug formulary for Medicaid
25         providers; amending s. 409.9116, F.S.;
26         modifying the formula for disproportionate
27         share/financial assistance distributions to
28         rural hospitals; amending s. 409.912, F.S.;
29         authorizing continued reimbursement of
30         substance abuse treatment services on a
31         fee-for-service basis under certain conditions;
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                                                   HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
 1         expanding Medicaid managed care behavioral
 2         health services statewide; deleting requirement
 3         for choice counseling; deleting authorization
 4         to test new marketing initiatives relating to
 5         managed care options; deleting a restriction on
 6         adjustment of capitation rates; modifying
 7         reimbursement to pharmacies; permitting use of
 8         a restricted drug formulary, authorizing
 9         exemptions therefrom, and authorizing
10         negotiation of supplemental rebates from
11         manufacturers pursuant thereto; requiring
12         prescriptions for Medicaid recipients to be on
13         certain standardized forms; amending s.
14         409.915, F.S.; increasing county contributions
15         to Medicaid for inpatient hospitalization;
16         exempting counties from contributing toward the
17         cost of inpatient services provided by certain
18         hospitals and for special Medicaid payments
19         under certain conditions; repealing s.
20         636.0145, F.S., relating to requirement for
21         licensure of certain entities contracting with
22         Medicaid to provide mental health care services
23         in certain counties pursuant to federal waiver,
24         to conform to changes made in this act;
25         providing a finding of important state
26         interest; providing an effective date.
27  
28  
29  
30  
31  
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