Senate Bill sb0416c1

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    Florida Senate - 2001                            CS for SB 416

    By the Committee on Health, Aging and Long-Term Care





    317-1592-01

  1                      A bill to be entitled

  2         An act relating to Medicaid; amending s.

  3         409.904, F.S.; establishing the medically needy

  4         income level; providing for the annual increase

  5         of the medically needy income level; creating

  6         s. 409.9045, F.S.; requiring coverage for

  7         certain individuals awaiting for Medicare

  8         coverage; amending s. 409.914, F.S.; amending

  9         procedures relating to the Medicaid buy-in

10         program to provide medical assistance to a

11         specified category of individuals; amending

12         criteria of eligibility for the buy-in program;

13         allowing the Agency for Health Care

14         Administration to apply for federal waivers to

15         ensure that the buy-in program operates within

16         specified constraints; providing legislative

17         intent; directing the agency to seek approval

18         from the Health Care Financing Administration

19         of a specified methodology for calculating

20         medical expenses under the medically needy

21         program; amending s. 409.908, F.S.; requiring

22         Medicaid to pay deductibles, coinsurance, or

23         copayments for Medicare cost sharing for

24         medications necessary to prevent rejection of

25         transplanted organs; providing an effective

26         date.

27

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

29

30         Section 1.  Subsection (2) of section 409.904, Florida

31  Statutes, is amended to read:

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    Florida Senate - 2001                            CS for SB 416
    317-1592-01




  1         409.904  Optional payments for eligible persons.--The

  2  agency may make payments for medical assistance and related

  3  services on behalf of the following persons who are determined

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

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

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

  7  availability of moneys and any limitations established by the

  8  General Appropriations Act or chapter 216.

  9         (2)  A family, a pregnant woman, a child under age 18,

10  a person age 65 or over, or a blind or disabled person who

11  would be eligible under any group listed in s. 409.903(1),

12  (2), or (3), except that the income or assets of such family

13  or person exceed established limitations. The medically needy

14  income level is 133-1/3 percent of the income limit used for

15  the persons described in s. 409.903(1). For a family or person

16  in this group, medical expenses are deductible from income in

17  accordance with federal requirements in order to make a

18  determination of eligibility.  A family or person in this

19  group, which group is known as the "medically needy," is

20  eligible to receive the same services as other Medicaid

21  recipients, with the exception of services in skilled nursing

22  facilities and intermediate care facilities for the

23  developmentally disabled. Annually, beginning July 1, 2002,

24  the Department of Children and Family Services shall increase

25  the medically needy income level by the amount of the

26  "consumer price index for all urban consumers" as published by

27  the Bureau of Labor Statistics of the United States Department

28  of Labor.

29         Section 2.  Section 409.9045, Florida Statutes is

30  created to read:

31

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    Florida Senate - 2001                            CS for SB 416
    317-1592-01




  1         409.9045 Medical assistance for disabled persons.--The

  2  agency may make payments for medical assistance and related

  3  services for persons who are receiving payments under the

  4  Social Security Disability Insurance program and who are in

  5  the 2-year Medicare waiting period. The agency is directed to

  6  seek federal waivers necessary to earn federal matching funds

  7  for these services.

  8         Section 3.  Subsection (2) of section 409.914, Florida

  9  Statutes, is amended to read:

10         409.914  Assistance for the uninsured.--

11         (2)(a)  The agency shall seek federal statutory or

12  regulatory reforms to establish a Medicaid buy-in program to

13  provide medical assistance to disabled Medicaid recipients

14  who, after at least 6 months of Medicaid eligibility, become

15  persons ineligible for Medicaid because of increased current

16  income obtained from gainful employment and categorical

17  restrictions. The agency shall develop use funds provided by

18  the Robert Wood Johnson Foundation to assist in developing the

19  buy-in program, including, but not limited to, the

20  determination of eligibility and service coverages;

21  cost-sharing cost sharing requirements; managed-care managed

22  care provisions; changes needed to the Medicaid program's

23  claims processing, utilization control, cost control, case

24  management, and provider enrollment systems to operate a

25  buy-in program. The agency may apply for federal waivers

26  necessary to ensure that the buy-in program operates within

27  existing general revenue and is limited to individuals who

28  would otherwise remain unemployed and on Medicaid.

29         (b)  The agency shall seek federal authorization and

30  financial support for a buy-in program that provides federally

31  supported medical assistance coverage for persons with incomes

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    Florida Senate - 2001                            CS for SB 416
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  1  up to 250 percent of the federal poverty level. The agency

  2  shall not implement the Medicaid buy-in program until it has

  3  received necessary federal authorization and financial

  4  participation and state appropriations.

  5         Section 4.  It is the intent of the Legislature to

  6  reduce the repetitive nature and complexity of the application

  7  process for the medically needy program authorized under

  8  section 490.904(2), Florida Statutes. The Legislature

  9  therefore directs the Agency for Health Care Administration

10  and the Department of Children and Family Services, by January

11  1, 2002, to seek from the Health Care Financing Administration

12  approval to use a methodology for calculating medical expenses

13  under the medically needy program which allows the department,

14  upon certification by a physician that the applicant suffers

15  from a chronic condition and that the individual's medical

16  expenses are likely to remain constant, to prospectively

17  assume that the amount of the individual's medical expenses

18  for the subsequent 6 months will remain equal to the amount of

19  such expenses for the previous 6 months.

20         Section 5.  Subsection (13) of section 409.908, Florida

21  Statutes, is amended to read:

22         409.908  Reimbursement of Medicaid providers.--Subject

23  to specific appropriations, the agency shall reimburse

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

25  according to methodologies set forth in the rules of the

26  agency and in policy manuals and handbooks incorporated by

27  reference therein.  These methodologies may include fee

28  schedules, reimbursement methods based on cost reporting,

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

30  and other mechanisms the agency considers efficient and

31  effective for purchasing services or goods on behalf of

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    Florida Senate - 2001                            CS for SB 416
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  1  recipients.  Payment for Medicaid compensable services made on

  2  behalf of Medicaid eligible persons is subject to the

  3  availability of moneys and any limitations or directions

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

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

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

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

  8  making any other adjustments necessary to comply with the

  9  availability of moneys and any limitations or directions

10  provided for in the General Appropriations Act, provided the

11  adjustment is consistent with legislative intent.

12         (13)  Medicare premiums for persons eligible for both

13  Medicare and Medicaid coverage shall be paid at the rates

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

15  Medicare services rendered to Medicaid-eligible persons,

16  Medicaid shall pay Medicare deductibles and coinsurance as

17  follows:

18         (a)  Medicaid shall make no payment toward deductibles

19  and coinsurance for any service that is not covered by

20  Medicaid.

21         (b)  Medicaid's financial obligation for deductibles

22  and coinsurance payments shall be based on Medicare allowable

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

24         (c)  Medicaid will pay no portion of Medicare

25  deductibles and coinsurance when payment that Medicare has

26  made for the service equals or exceeds what Medicaid would

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

28  of Medicare and Medicaid shall not exceed the amount Medicaid

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

30  finds that there has been confusion regarding the

31  reimbursement for services rendered to dually eligible

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    Florida Senate - 2001                            CS for SB 416
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  1  Medicare beneficiaries. Accordingly, the Legislature clarifies

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

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

  4  established by Title XVIII for premiums, deductibles, and

  5  coinsurance for Medicare services rendered by physicians to

  6  Medicaid eligible persons, physicians be reimbursed at the

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

  8  maximum allowable fee established by the Agency for Health

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

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

11  services rendered by physicians that Medicaid be required to

12  provide any payment for deductibles, coinsurance, or

13  copayments for Medicare cost sharing, or any expenses incurred

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

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

16  methodology is applicable even in those situations in which

17  the payment for Medicare cost sharing for a qualified Medicare

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

19  eliminated. This expression of the Legislature is in

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

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

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

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

24  and services furnished before the effective date of this act

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

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

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

28         (d)  The following provisions are exceptions to

29  paragraphs (a)-(c):

30

31

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    Florida Senate - 2001                            CS for SB 416
    317-1592-01




  1         1.  Medicaid payments for Nursing Home Medicare part A

  2  coinsurance shall be the lesser of the Medicare coinsurance

  3  amount or the Medicaid nursing home per diem rate.

  4         2.  Medicaid shall pay all deductibles and coinsurance

  5  for Nursing Home Medicare part B services.

  6         3.  Medicaid shall pay all deductibles and coinsurance

  7  for Medicare-eligible recipients receiving freestanding end

  8  stage renal dialysis center services.

  9         4.  Medicaid shall pay all deductibles and coinsurance

10  for hospital outpatient Medicare part B services.

11         5.  Medicaid payments for general hospital inpatient

12  services shall be limited to the Medicare deductible per spell

13  of illness.  Medicaid shall make no payment toward coinsurance

14  for Medicare general hospital inpatient services.

15         6.  Medicaid shall pay all deductibles and coinsurance

16  for Medicare emergency transportation services provided by

17  ambulances licensed pursuant to chapter 401.

18         7.  Medicaid shall pay all deductibles, coinsurance, or

19  copayments for Medicare cost sharing, for medications

20  medically necessary for organ-transplant recipients to prevent

21  rejection of transplanted organs.

22         Section 6.  This act shall take effect upon becoming a

23  law.

24

25          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
26                         Senate Bill 416

27

28  The Committee Substitute for Senate Bill 416 extends Medicaid
    coverage to individuals in the 2-year Medicare waiting period
29  and requires Medicaid to pay the 20 percent Medicare co-pay
    for anti-rejection drugs for individuals have had organ
30  transplants and who are eligible for both Medicaid and
    Medicare.
31

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