House Bill hb1753

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    Florida House of Representatives - 2001                HB 1753

        By the Fiscal Responsibility Council and Representative
    Maygarden





  1                      A bill to be entitled

  2         An act relating to the Agency for Health Care

  3         Administration; amending s. 409.8132, F.S.;

  4         deleting the requirement to provide choice

  5         counseling to eligible applicants under the

  6         Medikids program component; amending s.

  7         409.815, F.S.; correcting a cross reference;

  8         amending s. 409.903, F.S.; revising Medicaid

  9         eligibility requirements for pregnant women and

10         children under age 1; amending s. 409.904,

11         F.S.; revising Medicaid eligibility

12         requirements for certain elderly or disabled

13         persons; revising Medicaid eligibility

14         requirements of postpartum women for family

15         planning services; authorizing payment for

16         health insurance premiums of Medicaid-eligible

17         individuals under certain circumstances;

18         amending s. 409.905, F.S.; updating and

19         revising provisions relating to hospital

20         inpatient behavioral health services provided

21         pursuant to a federally approved waiver;

22         expanding provision of such services statewide;

23         amending s. 409.906, F.S.; deleting adult

24         denture services as optional Medicaid services

25         and restricting authorized hearing and visual

26         services to children; 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. 409.9065, F.S.;

31         correcting a cross reference; amending s.

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  1         409.908, F.S.; providing for reimbursement of

  2         hospital inpatient and outpatient services at

  3         certain rates; permitting reimbursement for

  4         certain Medicaid services based on competitive

  5         bidding; deleting redundant provisions;

  6         prohibiting increases in reimbursement rates to

  7         nursing homes associated with changes in

  8         ownership; precluding premium adjustments to

  9         managed care organizations under certain

10         circumstances; revising provisions relating to

11         physician reimbursement and the reimbursement

12         fee schedule; deleting certain preferential

13         Medicaid payments for dually eligible

14         recipients; authorizing competitive procurement

15         of transportation services or the securing

16         through waivers of federal financing of

17         transportation services at certain rates;

18         correcting a cross reference; authorizing

19         public schools affiliated with Florida

20         universities to separately enroll in the

21         Medicaid certified school match program and

22         certify local expenditures; amending s.

23         409.911, F.S.; updating data requirements and

24         share rates for disproportionate share

25         distributions; amending s. 409.91195, F.S.;

26         revising provisions relating to the membership

27         of the Medicaid Pharmaceutical and Therapeutics

28         Committee; providing for development and

29         distribution of a restricted drug formulary for

30         Medicaid providers; amending s. 409.9116, F.S.;

31         modifying the formula for disproportionate

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  1         share/financial assistance distributions to

  2         rural hospitals; amending s. 409.912, F.S.;

  3         authorizing continued reimbursement of

  4         substance abuse treatment services on a

  5         fee-for-service basis under certain conditions;

  6         expanding Medicaid managed care behavioral

  7         health services statewide; deleting requirement

  8         for choice counseling; deleting authorization

  9         to test new marketing initiatives relating to

10         managed care options; deleting a restriction on

11         adjustment of capitation rates; permitting

12         competitive bidding for certain services;

13         modifying reimbursement to pharmacies;

14         permitting use of a restricted drug formulary,

15         authorizing exemptions therefrom, and

16         authorizing negotiation of supplemental rebates

17         from manufacturers pursuant thereto; requiring

18         prescriptions for Medicaid recipients to be on

19         certain standardized forms; amending s.

20         409.915, F.S.; increasing county contributions

21         to Medicaid for inpatient hospitalization;

22         exempting counties from contributing toward the

23         cost of inpatient services provided by certain

24         hospitals and for special Medicaid payments

25         under certain conditions; repealing s.

26         636.0145, F.S., relating to requirement for

27         licensure of certain entities contracting with

28         Medicaid to provide mental health care services

29         in certain counties pursuant to federal waiver,

30         to conform to changes made in this act;

31

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  1         providing a finding of important state

  2         interest; providing an effective date.

  3

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

  5

  6         Section 1.  Subsection (7) of section 409.8132, Florida

  7  Statutes, is amended to read:

  8         409.8132  Medikids program component.--

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

10  component may only occur during periodic open enrollment

11  periods as specified by the agency. An applicant may apply for

12  enrollment in the Medikids program component and proceed

13  through the eligibility determination process at any time

14  throughout the year. However, enrollment in Medikids shall not

15  begin until the next open enrollment period; and a child may

16  not receive services under the Medikids program until the

17  child is enrolled in a managed care plan or MediPass. In

18  addition, Once determined eligible, an applicant may choose

19  receive choice counseling and select a managed care plan or

20  MediPass. The agency may initiate mandatory assignment for a

21  Medikids applicant who has not chosen a managed care plan or

22  MediPass provider after the applicant's voluntary choice

23  period ends. An applicant may select MediPass under the

24  Medikids program component only in counties that have fewer

25  than two managed care plans available to serve Medicaid

26  recipients and only if the federal Health Care Financing

27  Administration determines that MediPass constitutes "health

28  insurance coverage" as defined in Title XXI of the Social

29  Security Act.

30         Section 2.  Paragraph (q) of subsection (2) of section

31  409.815, Florida Statutes, is amended to read:

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  1         409.815  Health benefits coverage; limitations.--

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

  3  coverage to qualify for premium assistance payments for an

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

  5  coverage, except for coverage under Medicaid and Medikids,

  6  must include the following minimum benefits, as medically

  7  necessary.

  8         (q)  Dental services.--Subject to a specific

  9  appropriation for this benefit, covered services include those

10  dental services provided to children by the Florida Medicaid

11  program under s. 409.906(5)(6).

12         Section 3.  Subsection (5) of section 409.903, Florida

13  Statutes, is amended to read:

14         409.903  Mandatory payments for eligible persons.--The

15  agency shall make payments for medical assistance and related

16  services on behalf of the following persons who the

17  department, or the Social Security Administration by contract

18  with the Department of Children and Family Services,

19  determines to be eligible, subject to the income, assets, and

20  categorical eligibility tests set forth in federal and state

21  law.  Payment on behalf of these Medicaid eligible persons is

22  subject to the availability of moneys and any limitations

23  established by the General Appropriations Act or chapter 216.

24         (5)  A pregnant woman for the duration of her pregnancy

25  and for the postpartum period as defined in federal law and

26  rule, or a child under age 1, if either is living in a family

27  that has an income which is at or below 150 percent of the

28  most current federal poverty level, or, effective January 1,

29  1992, that has an income which is at or below 185 percent of

30  the most current federal poverty level.  Such a person is not

31  subject to an assets test. Further, a pregnant woman who

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  1  applies for eligibility for the Medicaid program through a

  2  qualified Medicaid provider must be offered the opportunity,

  3  subject to federal rules, to be made presumptively eligible

  4  for the Medicaid program.

  5         Section 4.  Subsections (1) and (5) of section 409.904,

  6  Florida Statutes, are amended, and subsection (9) is added to

  7  said section, to read:

  8         409.904  Optional payments for eligible persons.--The

  9  agency may make payments for medical assistance and related

10  services on behalf of the following persons who are determined

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

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

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

14  availability of moneys and any limitations established by the

15  General Appropriations Act or chapter 216.

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

17  to be disabled, whose income is at or below 85 100 percent of

18  federal poverty level, and whose assets do not exceed

19  established limitations.

20         (5)  Subject to specific federal authorization, a

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

22  at or below 150 185 percent of the most current federal

23  poverty level is eligible for family planning services as

24  specified in s. 409.905(3) for a period of up to 24 months

25  following a pregnancy for which Medicaid paid for

26  pregnancy-related services.

27         (9)  A Medicaid-eligible individual for the

28  individual's health insurance premiums, if the agency

29  determines that such payments are cost-effective.

30         Section 5.  Subsection (5) of section 409.905, Florida

31  Statutes, is amended to read:

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  1         409.905  Mandatory Medicaid services.--The agency may

  2  make payments for the following services, which are required

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

  4  furnished by Medicaid providers to recipients who are

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

  6  were provided.  Any service under this section shall be

  7  provided only when medically necessary and in accordance with

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

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

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

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

12  the availability of moneys and any limitations or directions

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

14         (5)  HOSPITAL INPATIENT SERVICES.--The agency shall pay

15  for all covered services provided for the medical care and

16  treatment of a recipient who is admitted as an inpatient by a

17  licensed physician or dentist to a hospital licensed under

18  part I of chapter 395.  However, the agency shall limit the

19  payment for inpatient hospital services for a Medicaid

20  recipient 21 years of age or older to 45 days or the number of

21  days necessary to comply with the General Appropriations Act.

22         (a)  The agency is authorized to implement

23  reimbursement and utilization management reforms in order to

24  comply with any limitations or directions in the General

25  Appropriations Act, which may include, but are not limited to:

26  prior authorization for inpatient psychiatric days; prior

27  authorization for nonemergency hospital inpatient admissions;

28  enhanced utilization and concurrent review programs for highly

29  utilized services; reduction or elimination of covered days of

30  service; adjusting reimbursement ceilings for variable costs;

31

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  1  adjusting reimbursement ceilings for fixed and property costs;

  2  and implementing target rates of increase.

  3         (b)  A licensed hospital maintained primarily for the

  4  care and treatment of patients having mental disorders or

  5  mental diseases is not eligible to participate in the hospital

  6  inpatient portion of the Medicaid program except as provided

  7  under in federal law or pursuant to a federally approved

  8  waiver.  However, the department shall apply for a waiver,

  9  within 9 months after June 5, 1991, designed to provide

10  behavioral health hospitalization services for mental health

11  reasons to children and adults in the most cost-effective and

12  lowest cost setting possible.  Such waiver shall include a

13  request for the opportunity to pay for care in hospitals known

14  under federal law as "institutions for mental disease" or

15  "IMD's."  The behavioral health waiver proposal shall propose

16  no additional aggregate cost to the state or Federal

17  Government, and shall be conducted in Hillsborough County,

18  Highlands County, Hardee County, Manatee County, and Polk

19  County. Implementation of the behavioral health waiver

20  proposal shall not be the basis for adjusting a hospital's

21  Medicaid inpatient or outpatient rate. The waiver proposal may

22  incorporate competitive bidding for hospital services,

23  comprehensive brokering, prepaid capitated arrangements, or

24  other mechanisms deemed by the department to show promise in

25  reducing the cost of acute care and increasing the

26  effectiveness of preventive care.  When developing The waiver

27  proposal, the department shall take into account price,

28  quality, accessibility, linkages of the hospital to community

29  services and family support programs, plans of the hospital to

30  ensure the earliest discharge possible, and the

31

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  1  comprehensiveness of the mental health and other health care

  2  services offered by participating providers.

  3         (c)  Agency for Health Care Administration shall adjust

  4  a hospital's current inpatient per diem rate to reflect the

  5  cost of serving the Medicaid population at that institution

  6  if:

  7         1.  The hospital experiences an increase in Medicaid

  8  caseload by more than 25 percent in any year, primarily

  9  resulting from the closure of a hospital in the same service

10  area occurring after July 1, 1995; or

11         2.  The hospital's Medicaid per diem rate is at least

12  25 percent below the Medicaid per patient cost for that year.

13

14  No later than November 1, 2000, the agency must provide

15  estimated costs for any adjustment in a hospital inpatient per

16  diem pursuant to this paragraph to the Executive Office of the

17  Governor, the House of Representatives General Appropriations

18  Committee, and the Senate Budget Committee. Before the agency

19  implements a change in a hospital's inpatient per diem rate

20  pursuant to this paragraph, the Legislature must have

21  specifically appropriated sufficient funds in the 2001-2002

22  General Appropriations Act to support the increase in cost as

23  estimated by the agency. This paragraph is repealed on July 1,

24  2001.

25         Section 6.  Section 409.906, Florida Statutes, is

26  amended to read:

27         409.906  Optional Medicaid services.--Subject to

28  specific appropriations, the agency may make payments for

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

30  the Social Security Act and are furnished by Medicaid

31  providers to recipients who are determined to be eligible on

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

  2  service that is provided shall be provided only when medically

  3  necessary and in accordance with state and federal law.

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

  5  the agency from adjusting fees, reimbursement rates, lengths

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

  7  any other adjustments necessary to comply with the

  8  availability of moneys and any limitations or directions

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

10  If necessary to safeguard the state's systems of providing

11  services to elderly and disabled persons and subject to the

12  notice and review provisions of s. 216.177, the Governor may

13  direct the Agency for Health Care Administration to amend the

14  Medicaid state plan to delete the optional Medicaid service

15  known as "Intermediate Care Facilities for the Developmentally

16  Disabled."  Optional services may include:

17         (1)  ADULT DENTURE SERVICES.--The agency may pay for

18  dentures, the procedures required to seat dentures, and the

19  repair and reline of dentures, provided by or under the

20  direction of a licensed dentist, for a recipient who is age 21

21  or older.

22         (1)(2)  ADULT HEALTH SCREENING SERVICES.--The agency

23  may pay for an annual routine physical examination, conducted

24  by or under the direction of a licensed physician, for a

25  recipient age 21 or older, without regard to medical

26  necessity, in order to detect and prevent disease, disability,

27  or other health condition or its progression.

28         (2)(3)  AMBULATORY SURGICAL CENTER SERVICES.--The

29  agency may pay for services provided to a recipient in an

30  ambulatory surgical center licensed under part I of chapter

31

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  1  395, by or under the direction of a licensed physician or

  2  dentist.

  3         (3)(4)  BIRTH CENTER SERVICES.--The agency may pay for

  4  examinations and delivery, recovery, and newborn assessment,

  5  and related services, provided in a licensed birth center

  6  staffed with licensed physicians, certified nurse midwives,

  7  and midwives licensed in accordance with chapter 467, to a

  8  recipient expected to experience a low-risk pregnancy and

  9  delivery.

10         (4)(5)  CASE MANAGEMENT SERVICES.--The agency may pay

11  for primary care case management services rendered to a

12  recipient pursuant to a federally approved waiver, and

13  targeted case management services for specific groups of

14  targeted recipients, for which funding has been provided and

15  which are rendered pursuant to federal guidelines. The agency

16  is authorized to limit reimbursement for targeted case

17  management services in order to comply with any limitations or

18  directions provided for in the General Appropriations Act.

19  Notwithstanding s. 216.292, the Department of Children and

20  Family Services may transfer general funds to the Agency for

21  Health Care Administration to fund state match requirements

22  exceeding the amount specified in the General Appropriations

23  Act for targeted case management services.

24         (5)(6)  CHILDREN'S DENTAL SERVICES.--The agency may pay

25  for diagnostic, preventive, or corrective procedures,

26  including orthodontia in severe cases, provided to a recipient

27  under age 21, by or under the supervision of a licensed

28  dentist.  Services provided under this program include

29  treatment of the teeth and associated structures of the oral

30  cavity, as well as treatment of disease, injury, or impairment

31  that may affect the oral or general health of the individual.

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  1         (6)(7)  CHIROPRACTIC SERVICES.--The agency may pay for

  2  manual manipulation of the spine and initial services,

  3  screening, and X rays provided to a recipient by a licensed

  4  chiropractic physician.

  5         (7)(8)  COMMUNITY MENTAL HEALTH SERVICES.--The agency

  6  may pay for rehabilitative services provided to a recipient by

  7  a mental health or substance abuse provider licensed by the

  8  agency and under contract with the agency or the Department of

  9  Children and Family Services to provide such services.  Those

10  services which are psychiatric in nature shall be rendered or

11  recommended by a psychiatrist, and those services which are

12  medical in nature shall be rendered or recommended by a

13  physician or psychiatrist. The agency must develop a provider

14  enrollment process for community mental health providers which

15  bases provider enrollment on an assessment of service need.

16  The provider enrollment process shall be designed to control

17  costs, prevent fraud and abuse, consider provider expertise

18  and capacity, and assess provider success in managing

19  utilization of care and measuring treatment outcomes.

20  Providers will be selected through a competitive procurement

21  or selective contracting process. In addition to other

22  community mental health providers, the agency shall consider

23  for enrollment mental health programs licensed under chapter

24  395 and group practices licensed under chapter 458, chapter

25  459, chapter 490, or chapter 491. The agency is also

26  authorized to continue operation of its behavioral health

27  utilization management program and may develop new services if

28  these actions are necessary to ensure savings from the

29  implementation of the utilization management system. The

30  agency shall coordinate the implementation of this enrollment

31  process with the Department of Children and Family Services

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  1  and the Department of Juvenile Justice. The agency is

  2  authorized to utilize diagnostic criteria in setting

  3  reimbursement rates, to preauthorize certain high-cost or

  4  highly utilized services, to limit or eliminate coverage for

  5  certain services, or to make any other adjustments necessary

  6  to comply with any limitations or directions provided for in

  7  the General Appropriations Act.

  8         (8)(9)  DIALYSIS FACILITY SERVICES.--Subject to

  9  specific appropriations being provided for this purpose, the

10  agency may pay a dialysis facility that is approved as a

11  dialysis facility in accordance with Title XVIII of the Social

12  Security Act, for dialysis services that are provided to a

13  Medicaid recipient under the direction of a physician licensed

14  to practice medicine or osteopathic medicine in this state,

15  including dialysis services provided in the recipient's home

16  by a hospital-based or freestanding dialysis facility.

17         (9)(10)  DURABLE MEDICAL EQUIPMENT.--The agency may

18  authorize and pay for certain durable medical equipment and

19  supplies provided to a Medicaid recipient as medically

20  necessary.

21         (10)(11)  HEALTHY START SERVICES.--The agency may pay

22  for a continuum of risk-appropriate medical and psychosocial

23  services for the Healthy Start program in accordance with a

24  federal waiver. The agency may not implement the federal

25  waiver unless the waiver permits the state to limit enrollment

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

27  expenditures will not exceed funds appropriated by the

28  Legislature or available from local sources. If the Health

29  Care Financing Administration does not approve a federal

30  waiver for Healthy Start services, the agency, in consultation

31  with the Department of Health and the Florida Association of

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  1  Healthy Start Coalitions, is authorized to establish a

  2  Medicaid certified-match program for Healthy Start services.

  3  Participation in the Healthy Start certified-match program

  4  shall be voluntary, and reimbursement shall be limited to the

  5  federal Medicaid share to Medicaid-enrolled Healthy Start

  6  coalitions for services provided to Medicaid recipients. The

  7  agency shall take no action to implement a certified-match

  8  program without ensuring that the amendment and review

  9  requirements of ss. 216.177 and 216.181 have been met.

10         (11)(12)  HEARING SERVICES.--Except for individuals 21

11  years of age or older, the agency may pay for hearing and

12  related services, including hearing evaluations, hearing aid

13  devices, dispensing of the hearing aid, and related repairs,

14  if provided to a recipient by a licensed hearing aid

15  specialist, otolaryngologist, otologist, audiologist, or

16  physician.

17         (12)(13)  HOME AND COMMUNITY-BASED SERVICES.--The

18  agency may pay for home-based or community-based services that

19  are rendered to a recipient in accordance with a federally

20  approved waiver program.

21         (13)(14)  HOSPICE CARE SERVICES.--The agency may pay

22  for all reasonable and necessary services for the palliation

23  or management of a recipient's terminal illness, if the

24  services are provided by a hospice that is licensed under part

25  VI of chapter 400 and meets Medicare certification

26  requirements.

27         (14)(15)  INTERMEDIATE CARE FACILITY FOR THE

28  DEVELOPMENTALLY DISABLED SERVICES.--The agency may pay for

29  health-related care and services provided on a 24-hour-a-day

30  basis by a facility licensed and certified as a Medicaid

31  Intermediate Care Facility for the Developmentally Disabled,

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  1  for a recipient who needs such care because of a developmental

  2  disability.

  3         (15)(16)  INTERMEDIATE CARE SERVICES.--The agency may

  4  pay for 24-hour-a-day intermediate care nursing and

  5  rehabilitation services rendered to a recipient in a nursing

  6  facility licensed under part II of chapter 400, if the

  7  services are ordered by and provided under the direction of a

  8  physician, meet nursing home level of care criteria as

  9  determined by the Comprehensive Assessment and Review

10  Long-Term Care (CARE) Program of the Department of Elderly

11  Affairs, and do not meet the definition of "general care" as

12  used in the Medicaid budget estimating process.

13         (16)(17)  OPTOMETRIC SERVICES.--The agency may pay for

14  services provided to a recipient, including examination,

15  diagnosis, treatment, and management, related to ocular

16  pathology, if the services are provided by a licensed

17  optometrist or physician.

18         (17)(18)  PHYSICIAN ASSISTANT SERVICES.--The agency may

19  pay for all services provided to a recipient by a physician

20  assistant licensed under s. 458.347 or s. 459.022.

21  Reimbursement for such services must be not less than 80

22  percent of the reimbursement that would be paid to a physician

23  who provided the same services.

24         (18)(19)  PODIATRIC SERVICES.--The agency may pay for

25  services, including diagnosis and medical, surgical,

26  palliative, and mechanical treatment, related to ailments of

27  the human foot and lower leg, if provided to a recipient by a

28  podiatric physician licensed under state law.

29         (19)(20)  PRESCRIBED DRUG SERVICES.--The agency may pay

30  for medications that are prescribed for a recipient by a

31  physician or other licensed practitioner of the healing arts

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  1  authorized to prescribe medications and that are dispensed to

  2  the recipient by a licensed pharmacist or physician in

  3  accordance with applicable state and federal law.

  4         (20)(21)  REGISTERED NURSE FIRST ASSISTANT

  5  SERVICES.--The agency may pay for all services provided to a

  6  recipient by a registered nurse first assistant as described

  7  in s. 464.027.  Reimbursement for such services may not be

  8  less than 80 percent of the reimbursement that would be paid

  9  to a physician providing the same services.

10         (21)(22)  STATE HOSPITAL SERVICES.--The agency may pay

11  for all-inclusive psychiatric inpatient hospital care provided

12  to a recipient age 65 or older in a state mental hospital.

13         (22)(23)  VISUAL SERVICES.--Except for individuals 21

14  years of age or older, the agency may pay for visual

15  examinations, eyeglasses, and eyeglass repairs for a

16  recipient, if they are prescribed by a licensed physician

17  specializing in diseases of the eye or by a licensed

18  optometrist.

19         (23)(24)  CHILD-WELFARE-TARGETED CASE MANAGEMENT.--The

20  Agency for Health Care Administration, in consultation with

21  the Department of Children and Family Services, may establish

22  a targeted case-management pilot project in those counties

23  identified by the Department of Children and Family Services

24  and for the community-based child welfare project in Sarasota

25  and Manatee counties, as authorized under s. 409.1671. These

26  projects shall be established for the purpose of determining

27  the impact of targeted case management on the child welfare

28  program and the earnings from the child welfare program.

29  Results of the pilot projects shall be reported to the Child

30  Welfare Estimating Conference and the Social Services

31  Estimating Conference established under s. 216.136. The number

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  1  of projects may not be increased until requested by the

  2  Department of Children and Family Services, recommended by the

  3  Child Welfare Estimating Conference and the Social Services

  4  Estimating Conference, and approved by the Legislature. The

  5  covered group of individuals who are eligible to receive

  6  targeted case management include children who are eligible for

  7  Medicaid; who are between the ages of birth through 21; and

  8  who are under protective supervision or postplacement

  9  supervision, under foster-care supervision, or in shelter care

10  or foster care. The number of individuals who are eligible to

11  receive targeted case management shall be limited to the

12  number for whom the Department of Children and Family Services

13  has available matching funds to cover the costs. The general

14  revenue funds required to match the funds for services

15  provided by the community-based child welfare projects are

16  limited to funds available for services described under s.

17  409.1671. The Department of Children and Family Services may

18  transfer the general revenue matching funds as billed by the

19  Agency for Health Care Administration.

20         (24)  ASSISTIVE CARE SERVICES.--The agency may pay for

21  assistive care services provided to recipients with functional

22  or cognitive impairments residing in assisted living

23  facilities, adult family-care homes, or residential treatment

24  facilities with 16 or fewer beds. These services may include

25  health support, assistance with the activities of daily living

26  and the instrumental acts of daily living, assistance with

27  medication administration, and arrangements for health care.

28         Section 7.  Subsection (3) of section 409.9065, Florida

29  Statutes, is amended to read:

30         409.9065  Pharmaceutical expense assistance.--

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  1         (3)  BENEFITS.--Medications covered under the

  2  pharmaceutical expense assistance program are those covered

  3  under the Medicaid program in s. 409.906(19)(20). Monthly

  4  benefit payments shall be limited to $80 per program

  5  participant. Participants are required to make a 10-percent

  6  coinsurance payment for each prescription purchased through

  7  this program.

  8         Section 8.  Section 409.908, Florida Statutes, is

  9  amended to read:

10         409.908  Reimbursement of Medicaid providers.--Subject

11  to specific appropriations, the agency shall reimburse

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

13  according to methodologies set forth in the rules of the

14  agency and in policy manuals and handbooks incorporated by

15  reference therein.  These methodologies may include fee

16  schedules, reimbursement methods based on cost reporting,

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

18  and other mechanisms the agency considers efficient and

19  effective for purchasing services or goods on behalf of

20  recipients.  Payment for Medicaid compensable services made on

21  behalf of Medicaid eligible persons is subject to the

22  availability of moneys and any limitations or directions

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

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

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

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

27  making any other adjustments necessary to comply with the

28  availability of moneys and any limitations or directions

29  provided for in the General Appropriations Act, provided the

30  adjustment is consistent with legislative intent.

31

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  1         (1)  Reimbursement to hospitals licensed under part I

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

  3  negotiation or competitive bidding. The agency shall reimburse

  4  for hospital inpatient and outpatient services under this

  5  subsection at rates no greater than 95 percent of the

  6  reimbursement rates in effect for the 2000-2001 state fiscal

  7  year.

  8         (a)  Reimbursement for inpatient care is limited as

  9  provided for in s. 409.905(5), except for:

10         1.  The raising of rate reimbursement caps, excluding

11  rural hospitals.

12         2.  Recognition of the costs of graduate medical

13  education.

14         3.  Other methodologies recognized in the General

15  Appropriations Act.

16

17  During the years funds are transferred from the Board of

18  Regents, any reimbursement supported by such funds shall be

19  subject to certification by the Board of Regents that the

20  hospital has complied with s. 381.0403. The agency is

21  authorized to receive funds from state entities, including,

22  but not limited to, the Board of Regents, local governments,

23  and other local political subdivisions, for the purpose of

24  making special exception payments, including federal matching

25  funds, through the Medicaid inpatient reimbursement

26  methodologies. Funds received from state entities or local

27  governments for this purpose shall be separately accounted for

28  and shall not be commingled with other state or local funds in

29  any manner. Notwithstanding this section and s. 409.915,

30  counties are exempt from contributing toward the cost of the

31  special exception reimbursement for hospitals serving a

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  1  disproportionate share of low-income persons and providing

  2  graduate medical education.

  3         (b)  Reimbursement for hospital outpatient care is

  4  limited to $1,500 per state fiscal year per recipient, except

  5  for:

  6         1.  Such care provided to a Medicaid recipient under

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

  8  necessity.

  9         2.  Renal dialysis services.

10         3.  Other exceptions made by the agency.

11

12  The agency is authorized to receive funds from state entities,

13  including, but not limited to, the Board of Regents, local

14  governments, and other local political subdivisions, for the

15  purpose of making payments, including federal matching funds,

16  through the Medicaid outpatient reimbursement methodologies.

17  Funds received from state entities and local governments for

18  this purpose shall be separately accounted for and shall not

19  be commingled with other state or local funds in any manner.

20         (c)  Hospitals that provide services to a

21  disproportionate share of low-income Medicaid recipients, or

22  that participate in the regional perinatal intensive care

23  center program under chapter 383, or that participate in the

24  statutory teaching hospital disproportionate share program may

25  receive additional reimbursement. The total amount of payment

26  for disproportionate share hospitals shall be fixed by the

27  General Appropriations Act. The computation of these payments

28  must be made in compliance with all federal regulations and

29  the methodologies described in ss. 409.911, 409.9112, and

30  409.9113.

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  1         (d)  The agency is authorized to limit inflationary

  2  increases for outpatient hospital services as directed by the

  3  General Appropriations Act.

  4         (2)(a)1.  Reimbursement to nursing homes licensed under

  5  part II of chapter 400 and state-owned-and-operated

  6  intermediate care facilities for the developmentally disabled

  7  licensed under chapter 393 must be made prospectively or on

  8  the basis of competitive bidding.

  9         2.  Unless otherwise limited or directed in the General

10  Appropriations Act, reimbursement to hospitals licensed under

11  part I of chapter 395 for the provision of swing-bed nursing

12  home services must be made on the basis of the average

13  statewide nursing home payment, and reimbursement to a

14  hospital licensed under part I of chapter 395 for the

15  provision of skilled nursing services must be made on the

16  basis of the average nursing home payment for those services

17  in the county in which the hospital is located. When a

18  hospital is located in a county that does not have any

19  community nursing homes, reimbursement must be determined by

20  averaging the nursing home payments, in counties that surround

21  the county in which the hospital is located. Reimbursement to

22  hospitals, including Medicaid payment of Medicare copayments,

23  for skilled nursing services shall be limited to 30 days,

24  unless a prior authorization has been obtained from the

25  agency. Medicaid reimbursement may be extended by the agency

26  beyond 30 days, and approval must be based upon verification

27  by the patient's physician that the patient requires

28  short-term rehabilitative and recuperative services only, in

29  which case an extension of no more than 15 days may be

30  approved. Reimbursement to a hospital licensed under part I of

31  chapter 395 for the temporary provision of skilled nursing

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  1  services to nursing home residents who have been displaced as

  2  the result of a natural disaster or other emergency may not

  3  exceed the average county nursing home payment for those

  4  services in the county in which the hospital is located and is

  5  limited to the period of time which the agency considers

  6  necessary for continued placement of the nursing home

  7  residents in the hospital.

  8         (b)  Subject to any limitations or directions provided

  9  for in the General Appropriations Act, the agency shall

10  establish and implement a Florida Title XIX Long-Term Care

11  Reimbursement Plan (Medicaid) for nursing home care in order

12  to provide care and services in conformance with the

13  applicable state and federal laws, rules, regulations, and

14  quality and safety standards and to ensure that individuals

15  eligible for medical assistance have reasonable geographic

16  access to such care. The agency shall not provide for any

17  increases in reimbursement rates to nursing homes associated

18  with changes in ownership. Under the plan, interim rate

19  adjustments shall not be granted to reflect increases in the

20  cost of general or professional liability insurance for

21  nursing homes unless the following criteria are met: have at

22  least a 65 percent Medicaid utilization in the most recent

23  cost report submitted to the agency, and the increase in

24  general or professional liability costs to the facility for

25  the most recent policy period affects the total Medicaid per

26  diem by at least 5 percent. This rate adjustment shall not

27  result in the per diem exceeding the class ceiling. This

28  provision shall apply only to fiscal year 2000-2001 and shall

29  be implemented to the extent existing appropriations are

30  available. The agency shall report to the Governor, the

31  Speaker of the House of Representatives, and the President of

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  1  the Senate by December 31, 2000, on the cost of liability

  2  insurance for Florida nursing homes for fiscal years 1999 and

  3  2000 and the extent to which these costs are not being

  4  compensated by the Medicaid program. Medicaid-participating

  5  nursing homes shall be required to report to the agency

  6  information necessary to compile this report. Effective no

  7  earlier than the rate-setting period beginning April 1, 1999,

  8  the agency shall establish a case-mix reimbursement

  9  methodology for the rate of payment for long-term care

10  services for nursing home residents. The agency shall compute

11  a per diem rate for Medicaid residents, adjusted for case mix,

12  which is based on a resident classification system that

13  accounts for the relative resource utilization by different

14  types of residents and which is based on level-of-care data

15  and other appropriate data. The case-mix methodology developed

16  by the agency shall take into account the medical, behavioral,

17  and cognitive deficits of residents. In developing the

18  reimbursement methodology, the agency shall evaluate and

19  modify other aspects of the reimbursement plan as necessary to

20  improve the overall effectiveness of the plan with respect to

21  the costs of patient care, operating costs, and property

22  costs. In the event adequate data are not available, the

23  agency is authorized to adjust the patient's care component or

24  the per diem rate to more adequately cover the cost of

25  services provided in the patient's care component. The agency

26  shall work with the Department of Elderly Affairs, the Florida

27  Health Care Association, and the Florida Association of Homes

28  for the Aging in developing the methodology. It is the intent

29  of the Legislature that the reimbursement plan achieve the

30  goal of providing access to health care for nursing home

31  residents who require large amounts of care while encouraging

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  1  diversion services as an alternative to nursing home care for

  2  residents who can be served within the community. The agency

  3  shall base the establishment of any maximum rate of payment,

  4  whether overall or component, on the available moneys as

  5  provided for in the General Appropriations Act. The agency may

  6  base the maximum rate of payment on the results of

  7  scientifically valid analysis and conclusions derived from

  8  objective statistical data pertinent to the particular maximum

  9  rate of payment.

10         (3)  Subject to any limitations or directions provided

11  for in the General Appropriations Act, the following Medicaid

12  services and goods may be reimbursed on a fee-for-service

13  basis. For each allowable service or goods furnished in

14  accordance with Medicaid rules, policy manuals, handbooks, and

15  state and federal law, the payment shall be the amount billed

16  by the provider, the provider's usual and customary charge, or

17  the maximum allowable fee established by the agency, whichever

18  amount is less, with the exception of those services or goods

19  for which the agency makes payment using a methodology based

20  on capitation rates, average costs, or negotiated fees, or

21  competitive bidding.

22         (a)  Advanced registered nurse practitioner services.

23         (b)  Birth center services.

24         (c)  Chiropractic services.

25         (d)  Community mental health services.

26         (e)  Dental services, including oral and maxillofacial

27  surgery.

28         (f)  Durable medical equipment.

29         (g)  Hearing services for Medicaid recipients under age

30  21.

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  1         (h)  Occupational therapy for Medicaid recipients under

  2  age 21.

  3         (i)  Optometric services.

  4         (j)  Orthodontic services.

  5         (k)  Personal care for Medicaid recipients under age

  6  21.

  7         (l)  Physical therapy for Medicaid recipients under age

  8  21.

  9         (m)  Physician assistant services.

10         (n)  Podiatric services.

11         (o)  Portable X-ray services.

12         (p)  Private-duty nursing for Medicaid recipients under

13  age 21.

14         (q)  Registered nurse first assistant services.

15         (r)  Respiratory therapy for Medicaid recipients under

16  age 21.

17         (s)  Speech therapy for Medicaid recipients under age

18  21.

19         (t)  Visual services for Medicaid recipients under age

20  21.

21         (4)  Subject to any limitations or directions provided

22  for in the General Appropriations Act, alternative health

23  plans, health maintenance organizations, and prepaid health

24  plans shall be reimbursed a fixed, prepaid amount negotiated,

25  or competitively bid pursuant to s. 287.057, by the agency and

26  prospectively paid to the provider monthly for each Medicaid

27  recipient enrolled.  The amount may not exceed the average

28  amount the agency determines it would have paid, based on

29  claims experience, for recipients in the same or similar

30  category of eligibility.  The agency shall calculate

31  capitation rates on a regional basis and, beginning September

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  1  1, 1995, shall include age-band differentials in such

  2  calculations.  Effective July 1, 2001, the cost of exempting

  3  statutory teaching hospitals, specialty hospitals, and

  4  community hospital education program hospitals from

  5  reimbursement ceilings and the cost of special Medicaid

  6  payments shall not be included in premiums paid to health

  7  maintenance organizations or prepaid health care plans.

  8         (5)  An ambulatory surgical center shall be reimbursed

  9  the lesser of the amount billed by the provider or the

10  Medicare-established allowable amount for the facility.

11         (6)  A provider of early and periodic screening,

12  diagnosis, and treatment services to Medicaid recipients who

13  are children under age 21 shall be reimbursed using an

14  all-inclusive rate stipulated in a fee schedule established by

15  the agency. A provider of the visual, dental, and hearing

16  components of such services shall be reimbursed the lesser of

17  the amount billed by the provider or the Medicaid maximum

18  allowable fee established by the agency.

19         (7)  A provider of family planning services shall be

20  reimbursed the lesser of the amount billed by the provider or

21  an all-inclusive amount per type of visit for physicians and

22  advanced registered nurse practitioners, as established by the

23  agency in a fee schedule.

24         (8)  A provider of home-based or community-based

25  services rendered pursuant to a federally approved waiver

26  shall be reimbursed based on an established or negotiated rate

27  for each service. These rates shall be established according

28  to an analysis of the expenditure history and prospective

29  budget developed by each contract provider participating in

30  the waiver program, or under any other methodology adopted by

31  the agency and approved by the Federal Government in

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  1  accordance with the waiver. Effective July 1, 1996, privately

  2  owned and operated community-based residential facilities

  3  which meet agency requirements and which formerly received

  4  Medicaid reimbursement for the optional intermediate care

  5  facility for the mentally retarded service may participate in

  6  the developmental services waiver as part of a

  7  home-and-community-based continuum of care for Medicaid

  8  recipients who receive waiver services.

  9         (9)  A provider of home health care services or of

10  medical supplies and appliances shall be reimbursed on the

11  basis of competitive bidding or for the lesser of the amount

12  billed by the provider or the agency's established maximum

13  allowable amount, except that, in the case of the rental of

14  durable medical equipment, the total rental payments may not

15  exceed the purchase price of the equipment over its expected

16  useful life or the agency's established maximum allowable

17  amount, whichever amount is less.

18         (10)  A hospice shall be reimbursed through a

19  prospective system for each Medicaid hospice patient at

20  Medicaid rates using the methodology established for hospice

21  reimbursement pursuant to Title XVIII of the federal Social

22  Security Act.

23         (11)  A provider of independent laboratory services

24  shall be reimbursed on the basis of competitive bidding or for

25  the least of the amount billed by the provider, the provider's

26  usual and customary charge, or the Medicaid maximum allowable

27  fee established by the agency.

28         (12)(a)  A physician shall be reimbursed the lesser of

29  the amount billed by the provider or the Medicaid maximum

30  allowable fee established by the agency.

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  1         (b)  The agency shall adopt a fee schedule, subject to

  2  any limitations or directions provided for in the General

  3  Appropriations Act, based on a resource-based relative value

  4  scale for pricing Medicaid physician services. Under this fee

  5  schedule, physicians shall be paid a dollar amount for each

  6  service based on the average resources required to provide the

  7  service, including, but not limited to, estimates of average

  8  physician time and effort, practice expense, and the costs of

  9  professional liability insurance.  The fee schedule shall

10  provide increased reimbursement for preventive and primary

11  care services and lowered reimbursement for specialty services

12  by using at least two conversion factors, one for cognitive

13  services and another for procedural services.  The fee

14  schedule shall not increase total Medicaid physician

15  expenditures unless funds are specifically provided for such

16  increase. However, in no case may any increase result in

17  physicians being paid more than the Medicare fee moneys are

18  available, and shall be phased in over a 2-year period

19  beginning on July 1, 1994. The Agency for Health Care

20  Administration shall seek the advice of a 16-member advisory

21  panel in formulating and adopting the fee schedule.  The panel

22  shall consist of Medicaid physicians licensed under chapters

23  458 and 459 and shall be composed of 50 percent primary care

24  physicians and 50 percent specialty care physicians.

25         (c)  Notwithstanding paragraph (b), reimbursement fees

26  to physicians for providing total obstetrical services to

27  Medicaid recipients, which include prenatal, delivery, and

28  postpartum care, shall be at least $1,500 per delivery for a

29  pregnant woman with low medical risk and at least $2,000 per

30  delivery for a pregnant woman with high medical risk. However,

31  reimbursement to physicians working in Regional Perinatal

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  1  Intensive Care Centers designated pursuant to chapter 383, for

  2  services to certain pregnant Medicaid recipients with a high

  3  medical risk, may be made according to obstetrical care and

  4  neonatal care groupings and rates established by the agency.

  5  Nurse midwives licensed under part I of chapter 464 or

  6  midwives licensed under chapter 467 shall be reimbursed at no

  7  less than 80 percent of the low medical risk fee. The agency

  8  shall by rule determine, for the purpose of this paragraph,

  9  what constitutes a high or low medical risk pregnant woman and

10  shall not pay more based solely on the fact that a caesarean

11  section was performed, rather than a vaginal delivery. The

12  agency shall by rule determine a prorated payment for

13  obstetrical services in cases where only part of the total

14  prenatal, delivery, or postpartum care was performed. The

15  Department of Health shall adopt rules for appropriate

16  insurance coverage for midwives licensed under chapter 467.

17  Prior to the issuance and renewal of an active license, or

18  reactivation of an inactive license for midwives licensed

19  under chapter 467, such licensees shall submit proof of

20  coverage with each application.

21         (13)  Medicare premiums for persons eligible for both

22  Medicare and Medicaid coverage shall be paid at the rates

23  established by Title XVIII of the Social Security Act.  For

24  Medicare services rendered to Medicaid-eligible persons,

25  Medicaid shall pay Medicare deductibles and coinsurance as

26  follows:

27         (a)  Medicaid shall make no payment toward deductibles

28  and coinsurance for any service that is not covered by

29  Medicaid.

30

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  1         (b)  Medicaid's financial obligation for deductibles

  2  and coinsurance payments shall be based on Medicare allowable

  3  fees, not on a provider's billed charges.

  4         (c)  Medicaid will pay no portion of Medicare

  5  deductibles and coinsurance when payment that Medicare has

  6  made for the service equals or exceeds what Medicaid would

  7  have paid if it had been the sole payor.  The combined payment

  8  of Medicare and Medicaid shall not exceed the amount Medicaid

  9  would have paid had it been the sole payor. The Legislature

10  finds that there has been confusion regarding the

11  reimbursement for services rendered to dually eligible

12  Medicare beneficiaries. Accordingly, the Legislature clarifies

13  that it has always been the intent of the Legislature before

14  and after 1991 that, in reimbursing in accordance with fees

15  established by Title XVIII for premiums, deductibles, and

16  coinsurance for Medicare services rendered by physicians to

17  Medicaid eligible persons, physicians be reimbursed at the

18  lesser of the amount billed by the physician or the Medicaid

19  maximum allowable fee established by the Agency for Health

20  Care Administration, as is permitted by federal law. It has

21  never been the intent of the Legislature with regard to such

22  services rendered by physicians that Medicaid be required to

23  provide any payment for deductibles, coinsurance, or

24  copayments for Medicare cost sharing, or any expenses incurred

25  relating thereto, in excess of the payment amount provided for

26  under the State Medicaid plan for such service. This payment

27  methodology is applicable even in those situations in which

28  the payment for Medicare cost sharing for a qualified Medicare

29  beneficiary with respect to an item or service is reduced or

30  eliminated. This expression of the Legislature is in

31  clarification of existing law and shall apply to payment for,

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  1  and with respect to provider agreements with respect to, items

  2  or services furnished on or after the effective date of this

  3  act. This paragraph applies to payment by Medicaid for items

  4  and services furnished before the effective date of this act

  5  if such payment is the subject of a lawsuit that is based on

  6  the provisions of this section, and that is pending as of, or

  7  is initiated after, the effective date of this act.

  8         (d)  Notwithstanding The following provisions are

  9  exceptions to paragraphs (a)-(c):

10         1.  Medicaid payments for Nursing Home Medicare part A

11  coinsurance shall be the lesser of the Medicare coinsurance

12  amount or the Medicaid nursing home per diem rate.

13         2.  Medicaid shall pay all deductibles and coinsurance

14  for Nursing Home Medicare part B services.

15         2.3.  Medicaid shall pay all deductibles and

16  coinsurance for Medicare-eligible recipients receiving

17  freestanding end stage renal dialysis center services.

18         4.  Medicaid shall pay all deductibles and coinsurance

19  for hospital outpatient Medicare part B services.

20         3.5.  Medicaid payments for general hospital inpatient

21  services shall be limited to the Medicare deductible per spell

22  of illness.  Medicaid shall make no payment toward coinsurance

23  for Medicare general hospital inpatient services.

24         4.6.  Medicaid shall pay all deductibles and

25  coinsurance for Medicare emergency transportation services

26  provided by ambulances licensed pursuant to chapter 401.

27         (14)  A provider of prescribed drugs shall be

28  reimbursed on the basis of competitive bidding or for the

29  least of the amount billed by the provider, the provider's

30  usual and customary charge, or the Medicaid maximum allowable

31  fee established by the agency, plus a dispensing fee. The

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  1  agency is directed to implement a variable dispensing fee for

  2  payments for prescribed medicines while ensuring continued

  3  access for Medicaid recipients.  The variable dispensing fee

  4  may be based upon, but not limited to, either or both the

  5  volume of prescriptions dispensed by a specific pharmacy

  6  provider and the volume of prescriptions dispensed to an

  7  individual recipient. The agency is authorized to limit

  8  reimbursement for prescribed medicine in order to comply with

  9  any limitations or directions provided for in the General

10  Appropriations Act, which may include implementing a

11  prospective or concurrent utilization review program.

12         (15)  A provider of primary care case management

13  services rendered pursuant to a federally approved waiver

14  shall be reimbursed by payment of a fixed, prepaid monthly sum

15  for each Medicaid recipient enrolled with the provider.

16         (16)  A provider of rural health clinic services and

17  federally qualified health center services shall be reimbursed

18  a rate per visit based on total reasonable costs of the

19  clinic, as determined by the agency in accordance with federal

20  regulations.

21         (17)  A provider of targeted case management services

22  shall be reimbursed pursuant to an established fee, except

23  where the Federal Government requires a public provider be

24  reimbursed on the basis of average actual costs.

25         (18)  Unless otherwise provided for in the General

26  Appropriations Act, a provider of transportation services

27  shall be reimbursed the lesser of the amount billed by the

28  provider or the Medicaid maximum allowable fee established by

29  the agency, except when the agency has entered into a direct

30  contract with the provider, or with a community transportation

31  coordinator, for the provision of an all-inclusive service, or

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  1  when services are provided pursuant to an agreement negotiated

  2  between the agency and the provider.  The agency, as provided

  3  for in s. 427.0135, shall purchase transportation services

  4  through the community coordinated transportation system, if

  5  available, unless the agency determines a more cost-effective

  6  method for Medicaid clients. Nothing in this subsection shall

  7  be construed to limit or preclude the agency from contracting

  8  for services using a prepaid capitation rate or from

  9  establishing maximum fee schedules, individualized

10  reimbursement policies by provider type, negotiated fees,

11  prior authorization, competitive bidding, increased use of

12  mass transit, or any other mechanism that the agency considers

13  efficient and effective for the purchase of services on behalf

14  of Medicaid clients, including implementing a transportation

15  eligibility process. The agency shall not be required to

16  contract with any community transportation coordinator or

17  transportation operator that has been determined by the

18  agency, the Department of Legal Affairs Medicaid Fraud Control

19  Unit, or any other state or federal agency to have engaged in

20  any abusive or fraudulent billing activities. The agency is

21  authorized to competitively procure transportation services or

22  make other changes necessary to secure approval of federal

23  waivers needed to permit federal financing of Medicaid

24  transportation services at the service matching rate rather

25  than the administrative matching rate.

26         (19)  County health department services may be

27  reimbursed a rate per visit based on total reasonable costs of

28  the clinic, as determined by the agency in accordance with

29  federal regulations under the authority of 42 C.F.R. s.

30  431.615.

31

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  1         (20)  A renal dialysis facility that provides dialysis

  2  services under s. 409.906(8)(9) must be reimbursed the lesser

  3  of the amount billed by the provider, the provider's usual and

  4  customary charge, or the maximum allowable fee established by

  5  the agency, whichever amount is less.

  6         (21)  The agency shall reimburse school districts which

  7  certify the state match pursuant to ss. 236.0812 and 409.9071

  8  for the federal portion of the school district's allowable

  9  costs to deliver the services, based on the reimbursement

10  schedule.  The school district shall determine the costs for

11  delivering services as authorized in ss. 236.0812 and 409.9071

12  for which the state match will be certified. Reimbursement of

13  school-based providers is contingent on such providers being

14  enrolled as Medicaid providers and meeting the qualifications

15  contained in 42 C.F.R. s. 440.110, unless otherwise waived by

16  the federal Health Care Financing Administration. Speech

17  therapy providers who are certified through the Department of

18  Education pursuant to rule 6A-4.0176, Florida Administrative

19  Code, are eligible for reimbursement for services that are

20  provided on school premises. Any employee of the school

21  district who has been fingerprinted and has received a

22  criminal background check in accordance with Department of

23  Education rules and guidelines shall be exempt from any agency

24  requirements relating to criminal background checks.

25  Elementary, middle, and secondary schools affiliated with

26  Florida universities may separately enroll in the Medicaid

27  certified school match program and may certify local

28  expenditures for Medicaid school health services and the

29  administrative claiming program.

30

31

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  1         (22)  Reimbursement to state-owned-and-operated

  2  intermediate care facilities for the developmentally disabled

  3  licensed under chapter 393 must be made prospectively.

  4         Section 9.  Paragraph (c) of subsection (1), paragraph

  5  (b) of subsection (3), and subsection (7) of section 409.911,

  6  Florida Statutes, are amended to read:

  7         409.911  Disproportionate share program.--Subject to

  8  specific allocations established within the General

  9  Appropriations Act and any limitations established pursuant to

10  chapter 216, the agency shall distribute, pursuant to this

11  section, moneys to hospitals providing a disproportionate

12  share of Medicaid or charity care services by making quarterly

13  Medicaid payments as required. Notwithstanding the provisions

14  of s. 409.915, counties are exempt from contributing toward

15  the cost of this special reimbursement for hospitals serving a

16  disproportionate share of low-income patients.

17         (1)  Definitions.--As used in this section and s.

18  409.9112:

19         (c)  "Base Medicaid per diem" means the hospital's

20  Medicaid per diem rate initially established by the Agency for

21  Health Care Administration on January 1, 1999 prior to the

22  beginning of each state fiscal year.  The base Medicaid per

23  diem rate shall not include any additional per diem increases

24  received as a result of the disproportionate share

25  distribution.

26         (3)  In computing the disproportionate share rate:

27         (b)  The agency shall use 1994 the most recent calendar

28  year audited financial data available at the beginning of each

29  state fiscal year for the calculation of disproportionate

30  share payments under this section.

31

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  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 10.  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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  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

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  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

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  1  voluntary Medicaid preferred prescribed drug list to all

  2  Medicaid prescribing providers in the state.

  3         Section 11.  Subsection (2) of section 409.9116,

  4  Florida Statutes, is amended to read:

  5         409.9116  Disproportionate share/financial assistance

  6  program for rural hospitals.--In addition to the payments made

  7  under s. 409.911, the Agency for Health Care Administration

  8  shall administer a federally matched disproportionate share

  9  program and a state-funded financial assistance program for

10  statutory rural hospitals. The agency shall make

11  disproportionate share payments to statutory rural hospitals

12  that qualify for such payments and financial assistance

13  payments to statutory rural hospitals that do not qualify for

14  disproportionate share payments. The disproportionate share

15  program payments shall be limited by and conform with federal

16  requirements. Funds shall be distributed quarterly in each

17  fiscal year for which an appropriation is made.

18  Notwithstanding the provisions of s. 409.915, counties are

19  exempt from contributing toward the cost of this special

20  reimbursement for hospitals serving a disproportionate share

21  of low-income patients.

22         (2)  The agency shall use the following formula for

23  distribution of funds for the disproportionate share/financial

24  assistance program for rural hospitals:

25         (a)  The agency shall first determine a preliminary

26  payment amount for each rural hospital by allocating all

27  available state funds using the following formula:

28

29                  PDAER = (TAERH x TARH)/STAERH

30

31  Where:

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  1         PDAER = preliminary distribution amount for each rural

  2  hospital.

  3         TAERH = total amount earned by each rural hospital.

  4         TARH = total amount appropriated or distributed under

  5  this section.

  6         STAERH = sum of total amount earned by each rural

  7  hospital.

  8         (b)  Federal matching funds for the disproportionate

  9  share program shall then be calculated for those hospitals

10  that qualify for disproportionate share in paragraph (a).

11         (c)  The state-funds-only payment amount shall then be

12  calculated for each hospital using the following formula:

13

14         SFOER = Maximum value of (1) SFOL - PDAER or (2) 0

15

16  Where:

17         SFOER = state-funds-only payment amount for each rural

18  hospital.

19         SFOL = state-funds-only payment level, which is set at

20  4 percent of TARH.

21

22  In calculating the SFOER, PDAER includes federal matching

23  funds from paragraph (b).

24         (d)  The adjusted total amount allocated to the rural

25  disproportionate share program shall then be calculated using

26  the following formula:

27

28                     ATARH = (TARH - SSFOER)

29

30  Where:

31

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  1         ATARH = adjusted total amount appropriated or

  2  distributed under this section.

  3         SSFOER = sum of the state-funds-only payment amount

  4  calculated under paragraph (c) for all rural hospitals.

  5         (e)  The distribution of the adjusted total amount of

  6  rural disproportionate share hospital funds shall then be

  7  calculated using the following formula:

  8

  9                 DAERH = [(TAERH x ATARH)/STAERH]

10

11  Where:

12         DAERH = distribution amount for each rural hospital.

13         (f)  Federal matching funds for the disproportionate

14  share program shall then be calculated for those hospitals

15  that qualify for disproportionate share in paragraph (e).

16         (g)  State-funds-only payment amounts calculated under

17  paragraph (c) and corresponding federal matching funds are

18  then added to the results of paragraph (f) to determine the

19  total distribution amount for each rural hospital.  In

20  determining the payment amount for each rural hospital under

21  this section, the agency shall first allocate all available

22  state funds by the following formula:

23

24                   DAER = (TAERH x TARH)/STAERH

25

26  Where:

27         DAER = distribution amount for each rural hospital.

28         STAERH = sum of total amount earned by each rural

29  hospital.

30         TAERH = total amount earned by each rural hospital.

31

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  1         TARH = total amount appropriated or distributed under

  2  this section.

  3

  4  Federal matching funds for the disproportionate share program

  5  shall then be calculated for those hospitals that qualify for

  6  disproportionate share payments under this section.

  7         Section 12.  Paragraph (b) of subsection (3),

  8  subsections (26) and (34), and paragraph (a) of subsection

  9  (37) of section 409.912, Florida Statutes, are amended to

10  read:

11         409.912  Cost-effective purchasing of health care.--The

12  agency shall purchase goods and services for Medicaid

13  recipients in the most cost-effective manner consistent with

14  the delivery of quality medical care.  The agency shall

15  maximize the use of prepaid per capita and prepaid aggregate

16  fixed-sum basis services when appropriate and other

17  alternative service delivery and reimbursement methodologies,

18  including competitive bidding pursuant to s. 287.057, designed

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

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

21  minimize the exposure of recipients to the need for acute

22  inpatient, custodial, and other institutional care and the

23  inappropriate or unnecessary use of high-cost services.

24         (3)  The agency may contract with:

25         (b)  An entity that provides is providing comprehensive

26  behavioral health care services to certain Medicaid recipients

27  through a capitated, prepaid arrangement pursuant to the

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

29  must be licensed under chapter 624, chapter 636, or chapter

30  641 and must possess the clinical systems and operational

31  competence to manage risk and provide comprehensive behavioral

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  1  health care to Medicaid recipients. As used in this paragraph,

  2  the term "comprehensive behavioral health care services" means

  3  covered mental health and substance abuse treatment services

  4  that are available to Medicaid recipients. The secretary of

  5  the Department of Children and Family Services shall approve

  6  provisions of procurements related to children in the

  7  department's care or custody prior to enrolling such children

  8  in a prepaid behavioral health plan. Any contract awarded

  9  under this paragraph must be competitively procured. In

10  developing the behavioral health care prepaid plan procurement

11  document, the agency shall ensure that the procurement

12  document requires the contractor to develop and implement a

13  plan to ensure compliance with s. 394.4574 related to services

14  provided to residents of licensed assisted living facilities

15  that hold a limited mental health license. The agency must

16  ensure that Medicaid recipients have available the choice of

17  at least two managed care plans for their behavioral health

18  care services. The agency may continue to reimburse for

19  substance abuse treatment services on a fee-for-service basis

20  until the agency finds that adequate funds are available for

21  capitated, prepaid arrangements or until the agency determines

22  that a capitated arrangement will not adversely affect the

23  availability of substance abuse treatment services.

24         1.  By January 1, 2001, the agency shall modify the

25  contracts with the entities providing comprehensive inpatient

26  and outpatient mental health care services to Medicaid

27  recipients in Hillsborough, Highlands, Hardee, Manatee, and

28  Polk Counties, to include substance-abuse-treatment services.

29         2.  By December 31, 2001, the agency shall contract

30  with entities providing comprehensive behavioral health care

31  services to Medicaid recipients through capitated, prepaid

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  1  arrangements in Charlotte, Collier, DeSoto, Escambia, Glades,

  2  Hendry, Lee, Okaloosa, Pasco, Pinellas, Santa Rosa, Sarasota,

  3  and Walton Counties. The agency may contract with entities

  4  providing comprehensive behavioral health care services to

  5  Medicaid recipients through capitated, prepaid arrangements in

  6  Alachua County. The agency may determine if Sarasota County

  7  shall be included as a separate catchment area or included in

  8  any other agency geographic area.

  9         1.3.  Children residing in a Department of Juvenile

10  Justice residential program approved as a Medicaid behavioral

11  health overlay services provider shall not be included in a

12  behavioral health care prepaid health plan pursuant to this

13  paragraph.

14         2.4.  In converting to a prepaid system of delivery,

15  the agency shall in its procurement document require an entity

16  providing comprehensive behavioral health care services to

17  prevent the displacement of indigent care patients by

18  enrollees in the Medicaid prepaid health plan providing

19  behavioral health care services from facilities receiving

20  state funding to provide indigent behavioral health care, to

21  facilities licensed under chapter 395 which do not receive

22  state funding for indigent behavioral health care, or

23  reimburse the unsubsidized facility for the cost of behavioral

24  health care provided to the displaced indigent care patient.

25         3.5.  Traditional community mental health providers

26  under contract with the Department of Children and Family

27  Services pursuant to part IV of chapter 394 and inpatient

28  mental health providers licensed pursuant to chapter 395 must

29  be offered an opportunity to accept or decline a contract to

30  participate in any provider network for prepaid behavioral

31  health services.

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  1         (26)  The agency shall conduct perform choice

  2  counseling, enrollments, and disenrollments for Medicaid

  3  recipients who are eligible for MediPass or managed care

  4  plans.  Notwithstanding the prohibition contained in paragraph

  5  (18)(f), managed care plans may perform preenrollments of

  6  Medicaid recipients under the supervision of the agency or its

  7  agents.  For the purposes of this section, "preenrollment"

  8  means the provision of marketing and educational materials to

  9  a Medicaid recipient and assistance in completing the

10  application forms, but shall not include actual enrollment

11  into a managed care plan.  An application for enrollment shall

12  not be deemed complete until the agency or its agent verifies

13  that the recipient made an informed, voluntary choice.  The

14  agency, in cooperation with the Department of Children and

15  Family Services, may test new marketing initiatives to inform

16  Medicaid recipients about their managed care options at

17  selected sites.  The agency shall report to the Legislature on

18  the effectiveness of such initiatives.  The agency may

19  contract with a third party to perform managed care plan and

20  MediPass choice-counseling, enrollment, and disenrollment

21  services for Medicaid recipients and is authorized to adopt

22  rules to implement such services. The agency may adjust the

23  capitation rate only to cover the costs of a third-party

24  choice-counseling, enrollment, and disenrollment contract, and

25  for agency supervision and management of the managed care plan

26  choice-counseling, enrollment, and disenrollment contract.

27         (34)  The agency may provide for cost-effective

28  purchasing of home health services, hospital inpatient and

29  outpatient services, private duty nursing services,

30  independent laboratory services, durable medical equipment and

31  supplies, nursing home services, other long-term care

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  1  services, and prescribed drug services through competitive

  2  bidding negotiation pursuant to s. 287.057. The agency may

  3  request appropriate waivers from the federal Health Care

  4  Financing Administration in order to competitively bid such

  5  home health services. The agency may exclude providers not

  6  selected through the bidding process from the Medicaid

  7  provider network.

  8         (37)(a)  The agency shall implement a Medicaid

  9  prescribed-drug spending-control program that includes the

10  following components:

11         1.  Medicaid prescribed-drug coverage for brand-name

12  drugs for adult Medicaid recipients not residing in nursing

13  homes or other institutions is limited to the dispensing of

14  four brand-name drugs per month per recipient. Children and

15  institutionalized adults are exempt from this restriction.

16  Antiretroviral agents are excluded from this limitation. No

17  requirements for prior authorization or other restrictions on

18  medications used to treat mental illnesses such as

19  schizophrenia, severe depression, or bipolar disorder may be

20  imposed on Medicaid recipients. Medications that will be

21  available without restriction for persons with mental

22  illnesses include atypical antipsychotic medications,

23  conventional antipsychotic medications, selective serotonin

24  reuptake inhibitors, and other medications used for the

25  treatment of serious mental illnesses. The agency shall also

26  limit the amount of a prescribed drug dispensed to no more

27  than a 34-day supply. The agency shall continue to provide

28  unlimited generic drugs, contraceptive drugs and items, and

29  diabetic supplies. The agency may authorize exceptions to the

30  brand-name-drug restriction or to the restricted drug

31  formulary, based upon the treatment needs of the patients,

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  1  only when such exceptions are based on prior consultation

  2  provided by the agency or an agency contractor, but the agency

  3  must establish procedures to ensure that:

  4         a.  There will be a response to a request for prior

  5  consultation by telephone or other telecommunication device

  6  within 24 hours after receipt of a request for prior

  7  consultation; and

  8         b.  A 72-hour supply of the drug prescribed will be

  9  provided in an emergency or when the agency does not provide a

10  response within 24 hours as required by sub-subparagraph a.

11         2.  Reimbursement to pharmacies for Medicaid prescribed

12  drugs shall be set at the lowest of the average wholesale

13  price less 13.25 percent, the wholesaler acquisition cost plus

14  7 percent, the federal or state pricing limit, or the

15  provider's usual and customary charge.

16         3.  The agency shall develop and implement a process

17  for managing the drug therapies of Medicaid recipients who are

18  using significant numbers of prescribed drugs each month. The

19  management process may include, but is not limited to,

20  comprehensive, physician-directed medical-record reviews,

21  claims analyses, and case evaluations to determine the medical

22  necessity and appropriateness of a patient's treatment plan

23  and drug therapies. The agency may contract with a private

24  organization to provide drug-program-management services.

25         4.  The agency may limit the size of its pharmacy

26  network based on need, competitive bidding, price

27  negotiations, credentialing, or similar criteria. The agency

28  shall give special consideration to rural areas in determining

29  the size and location of pharmacies included in the Medicaid

30  pharmacy network. A pharmacy credentialing process may include

31  criteria such as a pharmacy's full-service status, location,

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  1  size, patient educational programs, patient consultation,

  2  disease-management services, and other characteristics. The

  3  agency may impose a moratorium on Medicaid pharmacy enrollment

  4  when it is determined that it has a sufficient number of

  5  Medicaid-participating providers.

  6         5.  The agency shall develop and implement a program

  7  that requires Medicaid practitioners who prescribe drugs to

  8  use a counterfeit-proof prescription pad for Medicaid

  9  prescriptions. The agency shall require the use of

10  standardized counterfeit-proof prescription pads by

11  Medicaid-participating prescribers or prescribers who write

12  prescriptions for Medicaid recipients. The agency may

13  implement the program in targeted geographic areas or

14  statewide.

15         6.  The agency may enter into arrangements that require

16  manufacturers of generic drugs prescribed to Medicaid

17  recipients to provide rebates of at least 15.1 percent of the

18  average manufacturer price for the manufacturer's generic

19  products. These arrangements shall require that if a

20  generic-drug manufacturer pays federal rebates for

21  Medicaid-reimbursed drugs at a level below 15.1 percent, the

22  manufacturer must provide a supplemental rebate to the state

23  in an amount necessary to achieve a 15.1-percent rebate level.

24  If a generic-drug manufacturer raises its price in excess of

25  the Consumer Price Index (Urban), the excess amount shall be

26  included in the supplemental rebate to the state.

27         7.  The agency may establish a restricted drug

28  formulary in accordance with 42 U.S.C. s. 1396r and, pursuant

29  to the establishment of such formulary, is authorized to

30  negotiate supplemental rebates from manufacturers at no less

31  than 10 percent of the average wholesale price on the last day

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  1  of each quarter. State supplemental manufacturer rebates shall

  2  be invoiced concurrently with federal rebates.

  3         Section 13.  Paragraph (a) of subsection (1) and

  4  subsection (7) of section 409.915, Florida Statutes, are

  5  amended to read:

  6         409.915  County contributions to Medicaid.--Although

  7  the state is responsible for the full portion of the state

  8  share of the matching funds required for the Medicaid program,

  9  in order to acquire a certain portion of these funds, the

10  state shall charge the counties for certain items of care and

11  service as provided in this section.

12         (1)  Each county shall participate in the following

13  items of care and service:

14         (a)  Payments for inpatient hospitalization in excess

15  of 10 12 days, but not in excess of 45 days, with the

16  exception of pregnant women and children whose income is in

17  excess of the federal poverty level and who do not participate

18  in the Medicaid medically needy program.

19         (7)  Counties are exempt from contributing toward the

20  cost of new exemptions on inpatient ceilings for statutory

21  teaching hospitals, specialty hospitals, and community

22  hospital education program hospitals that came into effect

23  July 1, 2000, and for special Medicaid payments that came into

24  effect on or after July 1, 2000.  Notwithstanding any

25  provision of this section to the contrary, counties are exempt

26  from contributing toward the increased cost of hospital

27  inpatient services due to the elimination of ceilings on

28  Medicaid inpatient reimbursement rates paid to teaching

29  hospitals, specialty hospitals, and community health education

30  program hospitals and for special Medicaid reimbursements to

31  hospitals for which the Legislature has specifically

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  1  appropriated funds. This subsection is repealed on July 1,

  2  2001.

  3         Section 14.  Section 636.0145, Florida Statutes, is

  4  repealed:

  5         636.0145  Certain entities contracting with

  6  Medicaid.--Notwithstanding the requirements of s.

  7  409.912(3)(b), an entity that is providing comprehensive

  8  inpatient and outpatient mental health care services to

  9  certain Medicaid recipients in Hillsborough, Highlands,

10  Hardee, Manatee, and Polk Counties through a capitated,

11  prepaid arrangement pursuant to the federal waiver provided

12  for in s. 409.905(5) must become licensed under chapter 636 by

13  December 31, 1998. Any entity licensed under this chapter

14  which provides services solely to Medicaid recipients under a

15  contract with Medicaid shall be exempt from ss. 636.017,

16  636.018, 636.022, 636.028, and 636.034.

17         Section 15.  The Legislature determines and declares

18  that this act fulfills an important state interest.

19         Section 16.  This act shall take effect July 1, 2001.

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    Florida House of Representatives - 2001                HB 1753

    187-883A-01






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  2                          HOUSE SUMMARY

  3
      Revises various provisions relating to duties of the
  4    Agency for Health Care Administration with respect to
      Medicaid.  Deletes the requirement to provide recipients
  5    counseling regarding choice among health care provider
      options.  Revises Medicaid eligibility requirements for
  6    pregnant women and children under age 1.  Revises
      Medicaid eligibility requirements for certain elderly or
  7    disabled persons.  Revises Medicaid eligibility
      requirements of postpartum women for family planning
  8    services.  Authorizes payment for health insurance
      premiums of eligible individuals if cost-effective.
  9    Updates provisions relating to hospital inpatient
      behavioral health services provided pursuant to a
10    federally approved waiver and expands provision of such
      services statewide.  Deletes adult denture services as
11    optional Medicaid services and restricts authorized
      hearing and visual services to children.  Provides
12    additional requirements for authorized intermediate care
      services.  Adds assistive care services as an optional
13    Medicaid service for recipients in certain residential
      living settings.  Provides for reimbursement of hospital
14    inpatient and outpatient services at certain rates.
      Prohibits increases in reimbursement rates to nursing
15    homes associated with changes in ownership.  Precludes
      premium adjustments to managed care organizations under
16    certain circumstances.  Revises provisions relating to
      physician reimbursement and the reimbursement fee
17    schedule.  Deletes certain preferential Medicaid payments
      for dually eligible recipients. Authorizes competitive
18    procurement of transportation services or the securing
      through waivers of federal financing of transportation
19    services at certain rates. Authorizes public schools
      affiliated with Florida universities to separately enroll
20    in the Medicaid certified school match program and
      certify local expenditures therefor.  Updates data
21    requirements and share rates for disproportionate share
      distributions and modifies the formula for
22    disproportionate share/financial assistance distributions
      to rural hospitals.  Revises provisions relating to the
23    membership of the Medicaid Pharmaceutical and
      Therapeutics Committee.  Provides for establishment of a
24    restricted drug formulary for Medicaid providers,
      authorizes exemptions therefrom, and authorizes
25    negotiation of supplemental rebates from drug
      manufacturers pursuant thereto. Authorizes continued
26    reimbursement of substance abuse treatment services on a
      fee-for-service basis under certain conditions.  Deletes
27    authorization to test new marketing initiatives relating
      to managed care options. Deletes a restriction on
28    adjustment of capitation rates.  Permits competitive
      bidding for certain services.  Modifies reimbursement to
29    pharmacies.  Requires prescriptions for Medicaid
      recipients to be on certain standardized forms.
30    Increases county contributions to Medicaid for inpatient
      hospitalization.  Exempts counties from contributing
31    toward the cost of inpatient services provided by certain
      hospitals and for special Medicaid payments under certain
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    Florida House of Representatives - 2001                HB 1753

    187-883A-01






  1    conditions.  Provides a finding of important state
      interest.  See bill for details.
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