Senate Bill sb0026Bc1

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    Florida Senate - 2001                           CS for SB 26-B

    By the Committee on Appropriations; and Senator Silver





    309-524-02

  1                      A bill to be entitled

  2         An act relating to the Agency for Health Care

  3         Administration; amending s. 409.903, F.S.;

  4         revising standards for eligibility for certain

  5         mandatory medical assistance; repealing s.

  6         409.904(11), F.S., which provides eligibility

  7         of specified persons for certain optional

  8         medical assistance; amending s. 409.904, F.S.;

  9         revising standards for eligibility for certain

10         optional medical assistance; amending s.

11         409.906, F.S.; revising eligibility for certain

12         Medicaid services and methods of delivering

13         services; amending s. 409.9065, F.S.;

14         prescribing additional eligibility standards

15         with respect to pharmaceutical expense

16         assistance; amending s. 409.907, F.S.;

17         authorizing withholding of Medicaid payments in

18         certain circumstances; prescribing additional

19         requirements with respect to providers'

20         submission of information; prescribing

21         additional duties for the agency with respect

22         to provider applications; amending s. 409.9116,

23         F.S.; revising the disproportionate share

24         programs for rural hospitals; eliminating

25         financial assistance program for certain rural

26         hospitals; amending s. 409.912, F.S.; revising

27         the reimbursement rate to pharmacies for

28         Medicaid prescribed drugs; amending s. 409.913,

29         F.S.; prescribing additional sanctions that may

30         be imposed upon a Medicaid provider;

31         eliminating a limit on costs that may be

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    Florida Senate - 2001                           CS for SB 26-B
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  1         recovered against a provider; amending s.

  2         409.915, F.S.; revising the limit on a county's

  3         payment for certain Medicaid costs; providing

  4         that the act fulfills an important state

  5         interest; amending s. 409.908, F.S.; revising

  6         pharmacy dispensing fees for Medicaid drugs;

  7         repealing s. 400.0225, F.S., relating to

  8         consumer-satisfaction surveys; amending s.

  9         400.191, F.S.; eliminating a provision relating

10         to consumer-satisfaction and

11         family-satisfaction surveys; amending s.

12         400.235, F.S.; eliminating a provision relating

13         to participation in the consumer-satisfaction

14         process; repealing s. 400.148, F.S., relating

15         to the Medicaid "Up-or-Out" Quality of Care

16         Contract Management Program; amending s.

17         400.071, F.S.; eliminating a provision relating

18         to participation in a

19         consumer-satisfaction-measurement process;

20         amending s. 409.815, F.S.; conforming a

21         cross-reference; providing effective dates.

22

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

24

25         Section 1.  Effective July 1, 2002, subsection (5) of

26  section 409.903, Florida Statutes, is amended to read:

27         409.903  Mandatory payments for eligible persons.--The

28  agency shall make payments for medical assistance and related

29  services on behalf of the following persons who the

30  department, or the Social Security Administration by contract

31  with the Department of Children and Family Services,

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    Florida Senate - 2001                           CS for SB 26-B
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  1  determines to be eligible, subject to the income, assets, and

  2  categorical eligibility tests set forth in federal and state

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

  4  subject to the availability of moneys and any limitations

  5  established by the General Appropriations Act or chapter 216.

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

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

  8  rule, or a child under age 1, if she either is living in a

  9  family that has an income which is at or below 150 percent of

10  the most current federal poverty level, or a child under age

11  1, if the child is living in a family or, effective January 1,

12  1992, that has an income which is at or below 185 percent of

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

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

15  applies for eligibility for the Medicaid program through a

16  qualified Medicaid provider must be offered the opportunity,

17  subject to federal rules, to be made presumptively eligible

18  for the Medicaid program.

19         Section 2.  Subsection (11) of section 409.904, Florida

20  Statutes, is repealed.

21         Section 3.  Effective July 1, 2002, subsections (2) and

22  (5) of section 409.904, Florida Statutes, are amended to read:

23         409.904  Optional payments for eligible persons.--The

24  agency may make payments for medical assistance and related

25  services on behalf of the following persons who are determined

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

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

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

29  availability of moneys and any limitations established by the

30  General Appropriations Act or chapter 216.

31

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    Florida Senate - 2001                           CS for SB 26-B
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  1         (2)(a)  A pregnant woman who would otherwise qualify

  2  for Medicaid under s. 409.903(5) except for her level of

  3  income and whose assets fall within the limits established by

  4  the Department of Children and Family Services for the

  5  medically needy.  A pregnant woman who applies for medically

  6  needy eligibility may not be made presumptively eligible.

  7         (b)  A child under age 21 who would otherwise qualify

  8  for Medicaid or the Florida Kidcare program except for the

  9  family's level of income and whose assets fall within the

10  limits established by the Department of Children and Family

11  Services for the medically needy. A family, a pregnant woman,

12  a child under age 18, a person age 65 or over, or a blind or

13  disabled person who would be eligible under any group listed

14  in s. 409.903(1), (2), or (3), except that the income or

15  assets of such family or person exceed established

16  limitations.

17

18  For a family or person in this group, medical expenses are

19  deductible from income in accordance with federal requirements

20  in order to make a determination of eligibility.  A family or

21  person in this group, which group is known as the "medically

22  needy," is eligible to receive the same services as other

23  Medicaid recipients, with the exception of services in skilled

24  nursing facilities and intermediate care facilities for the

25  developmentally disabled.

26         (5)  Subject to specific federal authorization, a

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

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

29  poverty level is eligible for family planning services as

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

31

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    Florida Senate - 2001                           CS for SB 26-B
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  1  following a pregnancy for which Medicaid paid for

  2  pregnancy-related services.

  3         Section 4.  Effective July 1, 2002, subsections (1),

  4  (12), and (23) of section 409.906, Florida Statutes, are

  5  amended to read:

  6         409.906  Optional Medicaid services.--Subject to

  7  specific appropriations, the agency may make payments for

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

  9  the Social Security Act and are furnished by Medicaid

10  providers to recipients who are determined to be eligible on

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

12  service that is provided shall be provided only when medically

13  necessary and in accordance with state and federal law.

14  Optional services rendered by providers in mobile units to

15  Medicaid recipients may be restricted or prohibited by the

16  agency. Nothing in this section shall be construed to prevent

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

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

19  making any other adjustments necessary to comply with the

20  availability of moneys and any limitations or directions

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

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

23  services to elderly and disabled persons and subject to the

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

25  direct the Agency for Health Care Administration to amend the

26  Medicaid state plan to delete the optional Medicaid service

27  known as "Intermediate Care Facilities for the Developmentally

28  Disabled."  Optional services may include:

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

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

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

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    Florida Senate - 2001                           CS for SB 26-B
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  1  direction of a licensed dentist, for a recipient who is age 21

  2  or older. However, Medicaid will not provide reimbursement for

  3  dental services provided in a mobile dental unit, except for a

  4  mobile dental unit:

  5         (a)  Owned by, operated by, or having a contractual

  6  agreement with the Department of Health and complying with

  7  Medicaid's county health department clinic services program

  8  specifications as a county health department clinic services

  9  provider.

10         (b)  Owned by, operated by, or having a contractual

11  arrangement with a federally qualified health center and

12  complying with Medicaid's federally qualified health center

13  specifications as a federally qualified health center

14  provider.

15         (c)  Rendering dental services to Medicaid recipients,

16  21 years of age and older, at nursing facilities.

17         (d)  Owned by, operated by, or having a contractual

18  agreement with a state-approved dental educational

19  institution.

20         (e)  This subsection is repealed July 1, 2002.

21         (12)  CHILDREN'S HEARING SERVICES.--The agency may pay

22  for hearing and related services, including hearing

23  evaluations, hearing aid devices, dispensing of the hearing

24  aid, and related repairs, if provided to a recipient under age

25  21 by a licensed hearing aid specialist, otolaryngologist,

26  otologist, audiologist, or physician.

27         (23)  CHILDREN'S VISUAL SERVICES.--The agency may pay

28  for visual examinations, eyeglasses, and eyeglass repairs for

29  a recipient under age 21, if they are prescribed by a licensed

30  physician specializing in diseases of the eye or by a licensed

31  optometrist.

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    Florida Senate - 2001                           CS for SB 26-B
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  1         Section 5.  Subsection (20) of section 409.906, Florida

  2  Statutes, is amended to read:

  3         409.906  Optional Medicaid services.--Subject to

  4  specific appropriations, the agency may make payments for

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

  6  the Social Security Act and are furnished by Medicaid

  7  providers to recipients who are determined to be eligible on

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

  9  service that is provided shall be provided only when medically

10  necessary and in accordance with state and federal law.

11  Optional services rendered by providers in mobile units to

12  Medicaid recipients may be restricted or prohibited by the

13  agency. Nothing in this section shall be construed to prevent

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

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

16  making any other adjustments necessary to comply with the

17  availability of moneys and any limitations or directions

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

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

20  services to elderly and disabled persons and subject to the

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

22  direct the Agency for Health Care Administration to amend the

23  Medicaid state plan to delete the optional Medicaid service

24  known as "Intermediate Care Facilities for the Developmentally

25  Disabled."  Optional services may include:

26         (20)  PRESCRIBED DRUG SERVICES.--The agency may pay for

27  medications that are prescribed for a recipient by a physician

28  or other licensed practitioner of the healing arts authorized

29  to prescribe medications and that are dispensed to the

30  recipient by a licensed pharmacist or physician in accordance

31  with applicable state and federal law. The agency may use

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    Florida Senate - 2001                           CS for SB 26-B
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  1  mail-order pharmacy services for dispensing drugs. For adults

  2  eligible through the medically needy program, pharmacies must

  3  dispense a generic drug for a product prescribed for a

  4  beneficiary if a generic product exists for the product

  5  prescribed.

  6         Section 6.  Subsections (3) and (5) of section

  7  409.9065, Florida Statutes, are amended to read:

  8         409.9065  Pharmaceutical expense assistance.--

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

10  pharmaceutical expense assistance program are those covered

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

12  Monthly benefit payments shall be limited to $80 per program

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

14  coinsurance payment for each prescription purchased through

15  this program.

16         (5)  NONENTITLEMENT.--The pharmaceutical expense

17  assistance program established by this section is not an

18  entitlement. Enrollment levels are limited to those authorized

19  by the Legislature in the annual General Appropriations Act.

20  If funds are insufficient to serve all individuals eligible

21  under subsection (2) and seeking coverage, the agency may

22  develop a waiting list based on application dates to use in

23  enrolling individuals in unfilled enrollment slots.

24         Section 7.  Effective upon this act becoming a law,

25  paragraph (a) of subsection (5) and subsections (7) and (9) of

26  section 409.907, Florida Statutes, are amended to read:

27         409.907  Medicaid provider agreements.--The agency may

28  make payments for medical assistance and related services

29  rendered to Medicaid recipients only to an individual or

30  entity who has a provider agreement in effect with the agency,

31  who is performing services or supplying goods in accordance

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    Florida Senate - 2001                           CS for SB 26-B
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  1  with federal, state, and local law, and who agrees that no

  2  person shall, on the grounds of handicap, race, color, or

  3  national origin, or for any other reason, be subjected to

  4  discrimination under any program or activity for which the

  5  provider receives payment from the agency.

  6         (5)  The agency:

  7         (a)  Is required to make timely payment at the

  8  established rate for services or goods furnished to a

  9  recipient by the provider upon receipt of a properly completed

10  claim form.  The claim form shall require certification that

11  the services or goods have been completely furnished to the

12  recipient and that, with the exception of those services or

13  goods specified by the agency, the amount billed does not

14  exceed the provider's usual and customary charge for the same

15  services or goods. When a provider is under an active fraud or

16  abuse investigation by the agency, the agency may withhold

17  payment to that provider for any pending claim until the

18  conclusion of the investigation. When exercising the

19  provisions of this paragraph, the agency must timely complete

20  its investigation.

21         (7)  The agency may require, as a condition of

22  participating in the Medicaid program and before entering into

23  the provider agreement, that the provider submit information,

24  in an initial and any required renewal applications,

25  concerning the professional, business, and personal background

26  of the provider and permit an onsite inspection of the

27  provider's service location by agency staff or other personnel

28  designated by the agency to perform this function. Before

29  entering into the provider agreement, or as a condition of

30  continuing participation in the Medicaid program, the agency

31  may also require that Medicaid providers reimbursed on a

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  1  fee-for-services basis or fee schedule basis which is not

  2  cost-based, post a surety bond not to exceed $50,000 or the

  3  total amount billed by the provider to the program during the

  4  current or most recent calendar year, whichever is greater.

  5  For new providers, the amount of the surety bond shall be

  6  determined by the agency based on the provider's estimate of

  7  its first year's billing. If the provider's billing during the

  8  first year exceeds the bond amount, the agency may require the

  9  provider to acquire an additional bond equal to the actual

10  billing level of the provider. A provider's bond shall not

11  exceed $50,000 if a physician or group of physicians licensed

12  under chapter 458, chapter 459, or chapter 460 has a 50

13  percent or greater ownership interest in the provider or if

14  the provider is an assisted living facility licensed under

15  part III of chapter 400. The bonds permitted by this section

16  are in addition to the bonds referenced in s. 400.179(4)(d).

17  If the provider is a corporation, partnership, association, or

18  other entity, the agency may require the provider to submit

19  information concerning the background of that entity and of

20  any principal of the entity, including any partner or

21  shareholder having an ownership interest in the entity equal

22  to 5 percent or greater, and any treating provider who

23  participates in or intends to participate in Medicaid through

24  the entity. The information must include:

25         (a)  Proof of holding a valid license or operating

26  certificate, as applicable, if required by the state or local

27  jurisdiction in which the provider is located or if required

28  by the Federal Government.

29         (b)  Information concerning any prior violation, fine,

30  suspension, termination, or other administrative action taken

31  under the Medicaid laws, rules, or regulations of this state

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  1  or of any other state or the Federal Government; any prior

  2  violation of the laws, rules, or regulations relating to the

  3  Medicare program; any prior violation of the rules or

  4  regulations of any other public or private insurer; and any

  5  prior violation of the laws, rules, or regulations of any

  6  regulatory body of this or any other state.

  7         (c)  Full and accurate disclosure of any financial or

  8  ownership interest that the provider, or any principal,

  9  partner, or major shareholder thereof, may hold in any other

10  Medicaid provider or health care related entity or any other

11  entity that is licensed by the state to provide health or

12  residential care and treatment to persons.

13         (d)  If a group provider, identification of all members

14  of the group and attestation that all members of the group are

15  enrolled in or have applied to enroll in the Medicaid program.

16         (9)  Upon receipt of a completed, signed, and dated

17  application, and completion of any necessary background

18  investigation and criminal history record check, the agency

19  must either:

20         (a)  Enroll the applicant as a Medicaid provider no

21  earlier than the effective date of the approval of the

22  provider application; or

23         (b)  Deny the application if the agency finds that it

24  is in the best interest of the Medicaid program to do so. The

25  agency may consider the factors listed in subsection (10), as

26  well as any other factor that could affect the effective and

27  efficient administration of the program, including, but not

28  limited to, the current availability of medical care,

29  services, or supplies to recipients, taking into account

30  geographic location and reasonable travel time; the number of

31  providers of the same type already enrolled in the same

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  1  geographic area; and the credentials, experience, success, and

  2  patient outcomes of the provider for the services that it is

  3  making application to provide in the Medicaid program.

  4         Section 8.  Section 409.9116, Florida Statutes, is

  5  amended to read:

  6         409.9116  Disproportionate share share/financial

  7  assistance program for rural hospitals.--In addition to the

  8  payments made under s. 409.911, the Agency for Health Care

  9  Administration shall administer a federally matched

10  disproportionate share program and a state-funded financial

11  assistance program for statutory rural hospitals. The agency

12  shall make disproportionate share payments to statutory rural

13  hospitals that qualify for such payments and financial

14  assistance payments to statutory rural hospitals that do not

15  qualify for disproportionate share payments. The

16  disproportionate share program payments shall be limited by

17  and conform with federal requirements. Funds shall be

18  distributed quarterly in each fiscal year for which an

19  appropriation is made. Notwithstanding the provisions of s.

20  409.915, counties are exempt from contributing toward the cost

21  of this special reimbursement for hospitals serving a

22  disproportionate share of low-income patients.

23         (1)  The following formula shall be used by the agency

24  to calculate the total amount earned for hospitals that

25  participate in the rural hospital disproportionate share

26  program or the financial assistance program:

27

28                     TAERH = (CCD + MDD)/TPD

29

30  Where:

31

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  1         CCD = total charity care-other, plus charity

  2  care-Hill-Burton, minus 50 percent of unrestricted tax revenue

  3  from local governments, and restricted funds for indigent

  4  care, divided by gross revenue per adjusted patient day;

  5  however, if CCD is less than zero, then zero shall be used for

  6  CCD.

  7         MDD = Medicaid inpatient days plus Medicaid HMO

  8  inpatient days.

  9         TPD = total inpatient days.

10         TAERH = total amount earned by each rural hospital.

11

12  In computing the total amount earned by each rural hospital,

13  the agency must use the most recent actual data reported in

14  accordance with s. 408.061(4)(a).

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

16  distribution of funds for the disproportionate share

17  share/financial assistance program for rural hospitals.

18         (a)  The agency shall first determine a preliminary

19  payment amount for each rural hospital by allocating all

20  available state funds using the following formula:

21

22                  PDAER = (TAERH x TARH)/STAERH

23

24  Where:

25         PDAER = preliminary distribution amount for each rural

26  hospital.

27         TAERH = total amount earned by each rural hospital.

28         TARH = total amount appropriated or distributed under

29  this section.

30         STAERH = sum of total amount earned by each rural

31  hospital.

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  1         (b)  Federal matching funds for the disproportionate

  2  share program shall then be calculated for those hospitals

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

  4         (c)  Any state funds not spent due to an individual

  5  hospital's disproportionate-share limit will be redistributed

  6  proportionately to those hospitals with an available

  7  disproportionate-share limit to maximize available federal

  8  funds.

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

10  calculated for each hospital using the formula:

11

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

13

14  Where:

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

16  hospital.

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

18  4 percent of TARH.

19

20  In calculating the SFOER, PDAER includes federal matching

21  funds from paragraph (b).

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

23  disproportionate share program shall then be calculated using

24  the following formula:

25

26                     ATARH = (TARH - SSFOER)

27

28  Where:

29         ATARH = adjusted total amount appropriated or

30  distributed under this section.

31

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

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

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

  4  rural disproportionate share hospital funds shall then be

  5  calculated using the following formula:

  6

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

  8

  9  Where:

10         DAERH = distribution amount for each rural hospital.

11         (d)(f)  Federal matching funds for the disproportionate

12  share program shall then be calculated for those hospitals

13  that qualify for disproportionate share in paragraph (a) (e).

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

15  paragraph (c) and corresponding federal matching funds are

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

17  total distribution amount for each rural hospital.

18         (3)  The Agency for Health Care Administration may

19  recommend to the Legislature a formula to be used in

20  subsequent fiscal years to distribute funds appropriated for

21  this section that includes charity care, uncompensated care to

22  medically indigent patients, and Medicaid inpatient days.

23         (4)  In the event that federal matching funds for the

24  rural hospital disproportionate share program are not

25  available, state matching funds appropriated for the program

26  may be utilized for the Rural Hospital Financial Assistance

27  Program and shall be allocated to rural hospitals based on the

28  formulas in subsections (1) and (2).

29         (5)  In order to receive payments under this section, a

30  hospital must be a rural hospital as defined in s. 395.602 and

31  must meet the following additional requirements:

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  1         (a)  Agree to conform to all agency requirements to

  2  ensure high quality in the provision of services, including

  3  criteria adopted by agency rule concerning staffing ratios,

  4  medical records, standards of care, equipment, space, and such

  5  other standards and criteria as the agency deems appropriate

  6  as specified by rule.

  7         (b)  Agree to accept all patients, regardless of

  8  ability to pay, on a functional space-available basis.

  9         (c)  Agree to provide backup and referral services to

10  the county public health departments and other low-income

11  providers within the hospital's service area, including the

12  development of written agreements between these organizations

13  and the hospital.

14         (d)  For any hospital owned by a county government

15  which is leased to a management company, agree to submit on a

16  quarterly basis a report to the agency, in a format specified

17  by the agency, which provides a specific accounting of how all

18  funds dispersed under this act are spent.

19         (6)  For the 2000-2001 fiscal year only, the Agency for

20  Health Care Administration shall use the following formula for

21  distribution of the funds in Specific Appropriation 212 of the

22  2000-2001 General Appropriations Act for the disproportionate

23  share/financial assistance program for rural hospitals.

24         (a)  The agency shall first determine a preliminary

25  payment amount for each rural hospital by allocating all

26  available state funds using the following formula:

27

28                  PDAER = (TAERH x TARH)/STAERH

29

30  Where:

31

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    Florida Senate - 2001                           CS for SB 26-B
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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 is then

12  calculated for each hospital using the 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         (d)  The adjusted total amount allocated to the rural

22  disproportionate share program shall then be calculated using

23  the following formula:

24

25                     ATARH = (TARH - SSFOER)

26

27  Where:

28         ATARH = adjusted total amount appropriated or

29  distributed under this section.

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

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

                                  17

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  1         (e)  The determination of the amount of rural

  2  disproportionate share hospital funds is calculated by the

  3  following formula:

  4

  5                TDAERH = [(TAERH x ATARH)/STAERH]

  6

  7  Where:

  8         TDAERH = total distribution amount for each rural

  9  hospital.

10         (f)  Federal matching funds for the disproportionate

11  share program shall then be calculated for those hospitals

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

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

14  paragraph (c) are then added to the results of paragraph (f)

15  to determine the total distribution amount for each rural

16  hospital.

17         (h)  This subsection is repealed on July 1, 2001.

18         (6)(7)  This section applies only to hospitals that

19  were defined as statutory rural hospitals, or their

20  successor-in-interest hospital, prior to July 1, 1998. Any

21  additional hospital that is defined as a statutory rural

22  hospital, or its successor-in-interest hospital, on or after

23  July 1, 1998, is not eligible for programs under this section

24  unless additional funds are appropriated each fiscal year

25  specifically to the rural hospital disproportionate share

26  programs and financial assistance programs in an amount

27  necessary to prevent any hospital, or its

28  successor-in-interest hospital, eligible for the programs

29  prior to July 1, 1998, from incurring a reduction in payments

30  because of the eligibility of an additional hospital to

31  participate in the programs. A hospital, or its

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  1  successor-in-interest hospital, which received funds pursuant

  2  to this section before July 1, 1998, and which qualifies under

  3  s. 395.602(2)(e), shall be included in the programs under this

  4  section and is not required to seek additional appropriations

  5  under this subsection.

  6         Section 9.  Paragraph (a) of subsection (37) of section

  7  409.912, Florida Statutes, is amended to read:

  8         409.912  Cost-effective purchasing of health care.--The

  9  agency shall purchase goods and services for Medicaid

10  recipients in the most cost-effective manner consistent with

11  the delivery of quality medical care.  The agency shall

12  maximize the use of prepaid per capita and prepaid aggregate

13  fixed-sum basis services when appropriate and other

14  alternative service delivery and reimbursement methodologies,

15  including competitive bidding pursuant to s. 287.057, designed

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

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

18  minimize the exposure of recipients to the need for acute

19  inpatient, custodial, and other institutional care and the

20  inappropriate or unnecessary use of high-cost services. The

21  agency may establish prior authorization requirements for

22  certain populations of Medicaid beneficiaries, certain drug

23  classes, or particular drugs to prevent fraud, abuse, overuse,

24  and possible dangerous drug interactions. The Pharmaceutical

25  and Therapeutics Committee shall make recommendations to the

26  agency on drugs for which prior authorization is required. The

27  agency shall inform the Pharmaceutical and Therapeutics

28  Committee of its decisions regarding drugs subject to prior

29  authorization.

30

31

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

  2  prescribed-drug spending-control program that includes the

  3  following components:

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

  5  drugs for adult Medicaid recipients is limited to the

  6  dispensing of four brand-name drugs per month per recipient.

  7  Children are exempt from this restriction. Antiretroviral

  8  agents are excluded from this limitation. No requirements for

  9  prior authorization or other restrictions on medications used

10  to treat mental illnesses such as schizophrenia, severe

11  depression, or bipolar disorder may be imposed on Medicaid

12  recipients. Medications that will be available without

13  restriction for persons with mental illnesses include atypical

14  antipsychotic medications, conventional antipsychotic

15  medications, selective serotonin reuptake inhibitors, and

16  other medications used for the treatment of serious mental

17  illnesses. The agency shall also limit the amount of a

18  prescribed drug dispensed to no more than a 34-day supply. The

19  agency shall continue to provide unlimited generic drugs,

20  contraceptive drugs and items, and diabetic supplies. Although

21  a drug may be included on the preferred drug formulary, it

22  would not be exempt from the four-brand limit. The agency may

23  authorize exceptions to the brand-name-drug restriction based

24  upon the treatment needs of the patients, only when such

25  exceptions are based on prior consultation provided by the

26  agency or an agency contractor, but the agency must establish

27  procedures to ensure that:

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

29  consultation by telephone or other telecommunication device

30  within 24 hours after receipt of a request for prior

31  consultation;

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

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

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

  4  and

  5         c.  Except for the exception for nursing home residents

  6  and other institutionalized adults and except for drugs on the

  7  restricted formulary for which prior authorization may be

  8  sought by an institutional or community pharmacy, prior

  9  authorization for an exception to the brand-name-drug

10  restriction is sought by the prescriber and not by the

11  pharmacy. When prior authorization is granted for a patient in

12  an institutional setting beyond the brand-name-drug

13  restriction, such approval is authorized for 12 months and

14  monthly prior authorization is not required for that patient.

15         2.  Reimbursement to pharmacies for Medicaid prescribed

16  drugs shall be set at the average wholesale price less 15

17  13.25 percent.

18         3.  The agency shall develop and implement a process

19  for managing the drug therapies of Medicaid recipients who are

20  using significant numbers of prescribed drugs each month. The

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

22  comprehensive, physician-directed medical-record reviews,

23  claims analyses, and case evaluations to determine the medical

24  necessity and appropriateness of a patient's treatment plan

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

26  organization to provide drug-program-management services. The

27  Medicaid drug benefit management program shall include

28  initiatives to manage drug therapies for HIV/AIDS patients,

29  patients using 20 or more unique prescriptions in a 180-day

30  period, and the top 1,000 patients in annual spending.

31

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

  2  network based on need, competitive bidding, price

  3  negotiations, credentialing, or similar criteria. The agency

  4  shall give special consideration to rural areas in determining

  5  the size and location of pharmacies included in the Medicaid

  6  pharmacy network. A pharmacy credentialing process may include

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

  8  size, patient educational programs, patient consultation,

  9  disease-management services, and other characteristics. The

10  agency may impose a moratorium on Medicaid pharmacy enrollment

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

12  Medicaid-participating providers.

13         5.  The agency shall develop and implement a program

14  that requires Medicaid practitioners who prescribe drugs to

15  use a counterfeit-proof prescription pad for Medicaid

16  prescriptions. The agency shall require the use of

17  standardized counterfeit-proof prescription pads by

18  Medicaid-participating prescribers or prescribers who write

19  prescriptions for Medicaid recipients. The agency may

20  implement the program in targeted geographic areas or

21  statewide.

22         6.  The agency may enter into arrangements that require

23  manufacturers of generic drugs prescribed to Medicaid

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

25  average manufacturer price for the manufacturer's generic

26  products. These arrangements shall require that if a

27  generic-drug manufacturer pays federal rebates for

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

29  manufacturer must provide a supplemental rebate to the state

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

31

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  1         7.  The agency may establish a preferred drug formulary

  2  in accordance with 42 U.S.C. s. 1396r-8, and, pursuant to the

  3  establishment of such formulary, it is authorized to negotiate

  4  supplemental rebates from manufacturers that are in addition

  5  to those required by Title XIX of the Social Security Act and

  6  at no less than 10 percent of the average manufacturer price

  7  as defined in 42 U.S.C. s. 1936 on the last day of a quarter

  8  unless the federal or supplemental rebate, or both, equals or

  9  exceeds 25 percent. There is no upper limit on the

10  supplemental rebates the agency may negotiate. The agency may

11  determine that specific products, brand-name or generic, are

12  competitive at lower rebate percentages. Agreement to pay the

13  minimum supplemental rebate percentage will guarantee a

14  manufacturer that the Medicaid Pharmaceutical and Therapeutics

15  Committee will consider a product for inclusion on the

16  preferred drug formulary. However, a pharmaceutical

17  manufacturer is not guaranteed placement on the formulary by

18  simply paying the minimum supplemental rebate. Agency

19  decisions will be made on the clinical efficacy of a drug and

20  recommendations of the Medicaid Pharmaceutical and

21  Therapeutics Committee, as well as the price of competing

22  products minus federal and state rebates. The agency is

23  authorized to contract with an outside agency or contractor to

24  conduct negotiations for supplemental rebates. For the

25  purposes of this section, the term "supplemental rebates" may

26  include, at the agency's discretion, cash rebates and other

27  program benefits that offset a Medicaid expenditure. Such

28  other program benefits may include, but are not limited to,

29  disease management programs, drug product donation programs,

30  drug utilization control programs, prescriber and beneficiary

31  counseling and education, fraud and abuse initiatives, and

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  1  other services or administrative investments with guaranteed

  2  savings to the Medicaid program in the same year the rebate

  3  reduction is included in the General Appropriations Act. The

  4  agency is authorized to seek any federal waivers to implement

  5  this initiative.

  6         8.  The agency shall establish an advisory committee

  7  for the purposes of studying the feasibility of using a

  8  restricted drug formulary for nursing home residents and other

  9  institutionalized adults. The committee shall be comprised of

10  seven members appointed by the Secretary of Health Care

11  Administration. The committee members shall include two

12  physicians licensed under chapter 458 or chapter 459; three

13  pharmacists licensed under chapter 465 and appointed from a

14  list of recommendations provided by the Florida Long-Term Care

15  Pharmacy Alliance; and two pharmacists licensed under chapter

16  465.

17         Section 10.  Effective upon this act becoming a law,

18  subsection (15) and paragraph (a) of subsection (22) of

19  section 409.913, Florida Statutes, are amended to read:

20         409.913  Oversight of the integrity of the Medicaid

21  program.--The agency shall operate a program to oversee the

22  activities of Florida Medicaid recipients, and providers and

23  their representatives, to ensure that fraudulent and abusive

24  behavior and neglect of recipients occur to the minimum extent

25  possible, and to recover overpayments and impose sanctions as

26  appropriate.

27         (15)  The agency may impose any of the following

28  sanctions on a provider or a person for any of the acts

29  described in subsection (14):

30         (a)  Suspension for a specific period of time of not

31  more than 1 year.

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  1         (b)  Termination for a specific period of time of from

  2  more than 1 year to 20 years.

  3         (c)  Imposition of a fine of up to $5,000 for each

  4  violation.  Each day that an ongoing violation continues, such

  5  as refusing to furnish Medicaid-related records or refusing

  6  access to records, is considered, for the purposes of this

  7  section, to be a separate violation.  Each instance of

  8  improper billing of a Medicaid recipient; each instance of

  9  including an unallowable cost on a hospital or nursing home

10  Medicaid cost report after the provider or authorized

11  representative has been advised in an audit exit conference or

12  previous audit report of the cost unallowability; each

13  instance of furnishing a Medicaid recipient goods or

14  professional services that are inappropriate or of inferior

15  quality as determined by competent peer judgment; each

16  instance of knowingly submitting a materially false or

17  erroneous Medicaid provider enrollment application, request

18  for prior authorization for Medicaid services, drug exception

19  request, or cost report; each instance of inappropriate

20  prescribing of drugs for a Medicaid recipient as determined by

21  competent peer judgment; and each false or erroneous Medicaid

22  claim leading to an overpayment to a provider is considered,

23  for the purposes of this section, to be a separate violation.

24         (d)  Immediate suspension, if the agency has received

25  information of patient abuse or neglect or of any act

26  prohibited by s. 409.920. Upon suspension, the agency must

27  issue an immediate final order under s. 120.569(2)(n).

28         (e)  A fine, not to exceed $10,000, for a violation of

29  paragraph (14)(i).

30         (f)  Imposition of liens against provider assets,

31  including, but not limited to, financial assets and real

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  1  property, not to exceed the amount of the fine or recovery

  2  sought.

  3         (g)  Other remedies as permitted by law to effect the

  4  recovery of a fine or overpayment.

  5         (22)(a)  In an audit or investigation of a violation

  6  committed by a provider which is conducted pursuant to this

  7  section, the agency is entitled to recover all up to $15,000

  8  in investigative, legal, and expert witness costs if the

  9  agency's findings were not contested by the provider or, if

10  contested, the agency ultimately prevailed.

11         Section 11.  Effective April 1, 2002, subsection (2) of

12  section 409.915, Florida Statutes, is amended to read:

13         409.915  County contributions to Medicaid.--Although

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

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

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

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

18  service as provided in this section.

19         (2)  A county's participation must be 35 percent of the

20  total cost, or the applicable discounted cost paid by the

21  state for Medicaid recipients enrolled in health maintenance

22  organizations or prepaid health plans, of providing the items

23  listed in subsection (1), except that the payments for items

24  listed in paragraph (1)(b) may not exceed $90 $55 per month

25  per person.

26         Section 12.  The Legislature determines and declares

27  that this act fulfills an important state interest.

28         Section 13.  Subsection (14) of section 409.908,

29  Florida Statutes, is amended to read:

30         409.908  Reimbursement of Medicaid providers.--Subject

31  to specific appropriations, the agency shall reimburse

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

  2  according to methodologies set forth in the rules of the

  3  agency and in policy manuals and handbooks incorporated by

  4  reference therein.  These methodologies may include fee

  5  schedules, reimbursement methods based on cost reporting,

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

  7  and other mechanisms the agency considers efficient and

  8  effective for purchasing services or goods on behalf of

  9  recipients.  Payment for Medicaid compensable services made on

10  behalf of Medicaid eligible persons is subject to the

11  availability of moneys and any limitations or directions

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

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

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

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

16  making any other adjustments necessary to comply with the

17  availability of moneys and any limitations or directions

18  provided for in the General Appropriations Act, provided the

19  adjustment is consistent with legislative intent.

20         (14)  A provider of prescribed drugs shall be

21  reimbursed the least of the amount billed by the provider, the

22  provider's usual and customary charge, or the Medicaid maximum

23  allowable fee established by the agency, plus a dispensing

24  fee. The agency is directed to implement a variable dispensing

25  fee for payments for prescribed medicines while ensuring

26  continued access for Medicaid recipients.  The variable

27  dispensing fee may be based upon, but not limited to, either

28  or both the volume of prescriptions dispensed by a specific

29  pharmacy provider, and the volume of prescriptions dispensed

30  to an individual recipient, and dispensing of

31  preferred-drug-list products. The agency shall increase the

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  1  pharmacy dispensing fee authorized by statute and in the

  2  annual General Appropriations Act by $0.50 for the dispensing

  3  of a Medicaid preferred-drug-list product and reduce the

  4  pharmacy dispensing fee by $0.50 for the dispensing of a

  5  Medicaid product that is not included on the preferred-drug

  6  list. The agency is authorized to limit reimbursement for

  7  prescribed medicine in order to comply with any limitations or

  8  directions provided for in the General Appropriations Act,

  9  which may include implementing a prospective or concurrent

10  utilization review program.

11         Section 14.  Section 400.0225, Florida Statutes, is

12  repealed.

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

14  400.191, Florida Statutes, is amended to read:

15         400.191  Availability, distribution, and posting of

16  reports and records.--

17         (2)  The agency shall provide additional information in

18  consumer-friendly printed and electronic formats to assist

19  consumers and their families in comparing and evaluating

20  nursing home facilities.

21         (a)  The agency shall provide an Internet site which

22  shall include at least the following information either

23  directly or indirectly through a link to another established

24  site or sites of the agency's choosing:

25         1.  A list by name and address of all nursing home

26  facilities in this state.

27         2.  Whether such nursing home facilities are

28  proprietary or nonproprietary.

29         3.  The current owner of the facility's license and the

30  year that that entity became the owner of the license.

31

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  1         4.  The name of the owner or owners of each facility

  2  and whether the facility is affiliated with a company or other

  3  organization owning or managing more than one nursing facility

  4  in this state.

  5         5.  The total number of beds in each facility.

  6         6.  The number of private and semiprivate rooms in each

  7  facility.

  8         7.  The religious affiliation, if any, of each

  9  facility.

10         8.  The languages spoken by the administrator and staff

11  of each facility.

12         9.  Whether or not each facility accepts Medicare or

13  Medicaid recipients or insurance, health maintenance

14  organization, Veterans Administration, CHAMPUS program, or

15  workers' compensation coverage.

16         10.  Recreational and other programs available at each

17  facility.

18         11.  Special care units or programs offered at each

19  facility.

20         12.  Whether the facility is a part of a retirement

21  community that offers other services pursuant to part III,

22  part IV, or part V.

23         13.  The results of consumer and family satisfaction

24  surveys for each facility, as described in s. 400.0225. The

25  results may be converted to a score or scores, which may be

26  presented in either numeric or symbolic form for the intended

27  consumer audience.

28         13.14.  Survey and deficiency information contained on

29  the Online Survey Certification and Reporting (OSCAR) system

30  of the federal Health Care Financing Administration, including

31  annual survey, revisit, and complaint survey information, for

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  1  each facility for the past 45 months.  For noncertified

  2  nursing homes, state survey and deficiency information,

  3  including annual survey, revisit, and complaint survey

  4  information for the past 45 months shall be provided.

  5         14.15.  A summary of the Online Survey Certification

  6  and Reporting (OSCAR) data for each facility over the past 45

  7  months. Such summary may include a score, rating, or

  8  comparison ranking with respect to other facilities based on

  9  the number of citations received by the facility of annual,

10  revisit, and complaint surveys; the severity and scope of the

11  citations; and the number of annual recertification surveys

12  the facility has had during the past 45 months. The score,

13  rating, or comparison ranking may be presented in either

14  numeric or symbolic form for the intended consumer audience.

15         Section 16.  Paragraph (c) of subsection (5) of section

16  400.235, Florida Statutes, is amended to read:

17         400.235  Nursing home quality and licensure status;

18  Gold Seal Program.--

19         (5)  Facilities must meet the following additional

20  criteria for recognition as a Gold Seal Program facility:

21         (c)  Participate consistently in a the required

22  consumer satisfaction process as prescribed by the agency, and

23  demonstrate that information is elicited from residents,

24  family members, and guardians about satisfaction with the

25  nursing facility, its environment, the services and care

26  provided, the staff's skills and interactions with residents,

27  attention to resident's needs, and the facility's efforts to

28  act on information gathered from the consumer satisfaction

29  measures.

30

31

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  1  A facility assigned a conditional licensure status may not

  2  qualify for consideration for the Gold Seal Program until

  3  after it has operated for 30 months with no class I or class

  4  II deficiencies and has completed a regularly scheduled

  5  relicensure survey.

  6         Section 17.  Section 400.148, Florida Statutes, is

  7  repealed.

  8         Section 18.  Section 400.071, Florida Statutes, is

  9  amended to read:

10         400.071  Application for license.--

11         (1)  An application for a license as required by s.

12  400.062 shall be made to the agency on forms furnished by it

13  and shall be accompanied by the appropriate license fee.

14         (2)  The application shall be under oath and shall

15  contain the following:

16         (a)  The name, address, and social security number of

17  the applicant if an individual; if the applicant is a firm,

18  partnership, or association, its name, address, and employer

19  identification number (EIN), and the name and address of any

20  controlling interest; and the name by which the facility is to

21  be known.

22         (b)  The name of any person whose name is required on

23  the application under the provisions of paragraph (a) and who

24  owns at least a 10-percent interest in any professional

25  service, firm, association, partnership, or corporation

26  providing goods, leases, or services to the facility for which

27  the application is made, and the name and address of the

28  professional service, firm, association, partnership, or

29  corporation in which such interest is held.

30

31

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  1         (c)  The location of the facility for which a license

  2  is sought and an indication, as in the original application,

  3  that such location conforms to the local zoning ordinances.

  4         (d)  The name of the person or persons under whose

  5  management or supervision the facility will be conducted and

  6  the name of the administrator.

  7         (e)  A signed affidavit disclosing any financial or

  8  ownership interest that a person or entity described in

  9  paragraph (a) or paragraph (d) has held in the last 5 years in

10  any entity licensed by this state or any other state to

11  provide health or residential care which has closed

12  voluntarily or involuntarily; has filed for bankruptcy; has

13  had a receiver appointed; has had a license denied, suspended,

14  or revoked; or has had an injunction issued against it which

15  was initiated by a regulatory agency. The affidavit must

16  disclose the reason any such entity was closed, whether

17  voluntarily or involuntarily.

18         (f)  The total number of beds and the total number of

19  Medicare and Medicaid certified beds.

20         (g)  Information relating to the number, experience,

21  and training of the employees of the facility and of the moral

22  character of the applicant and employees which the agency

23  requires by rule, including the name and address of any

24  nursing home with which the applicant or employees have been

25  affiliated through ownership or employment within 5 years of

26  the date of the application for a license and the record of

27  any criminal convictions involving the applicant and any

28  criminal convictions involving an employee if known by the

29  applicant after inquiring of the employee.  The applicant must

30  demonstrate that sufficient numbers of qualified staff, by

31  training or experience, will be employed to properly care for

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  1  the type and number of residents who will reside in the

  2  facility.

  3         (h)  Copies of any civil verdict or judgment involving

  4  the applicant rendered within the 10 years preceding the

  5  application, relating to medical negligence, violation of

  6  residents' rights, or wrongful death.  As a condition of

  7  licensure, the licensee agrees to provide to the agency copies

  8  of any new verdict or judgment involving the applicant,

  9  relating to such matters, within 30 days after filing with the

10  clerk of the court.  The information required in this

11  paragraph shall be maintained in the facility's licensure file

12  and in an agency database which is available as a public

13  record.

14         (3)  The applicant shall submit evidence which

15  establishes the good moral character of the applicant,

16  manager, supervisor, and administrator. No applicant, if the

17  applicant is an individual; no member of a board of directors

18  or officer of an applicant, if the applicant is a firm,

19  partnership, association, or corporation; and no licensed

20  nursing home administrator shall have been convicted, or found

21  guilty, regardless of adjudication, of a crime in any

22  jurisdiction which affects or may potentially affect residents

23  in the facility.

24         (4)  Each applicant for licensure must comply with the

25  following requirements:

26         (a)  Upon receipt of a completed, signed, and dated

27  application, the agency shall require background screening of

28  the applicant, in accordance with the level 2 standards for

29  screening set forth in chapter 435. As used in this

30  subsection, the term "applicant" means the facility

31  administrator, or similarly titled individual who is

                                  33

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    Florida Senate - 2001                           CS for SB 26-B
    309-524-02




  1  responsible for the day-to-day operation of the licensed

  2  facility, and the facility financial officer, or similarly

  3  titled individual who is responsible for the financial

  4  operation of the licensed facility.

  5         (b)  The agency may require background screening for a

  6  member of the board of directors of the licensee or an officer

  7  or an individual owning 5 percent or more of the licensee if

  8  the agency has probable cause to believe that such individual

  9  has been convicted of an offense prohibited under the level 2

10  standards for screening set forth in chapter 435.

11         (c)  Proof of compliance with the level 2 background

12  screening requirements of chapter 435 which has been submitted

13  within the previous 5 years in compliance with any other

14  health care or assisted living licensure requirements of this

15  state is acceptable in fulfillment of paragraph (a). Proof of

16  compliance with background screening which has been submitted

17  within the previous 5 years to fulfill the requirements of the

18  Department of Insurance pursuant to chapter 651 as part of an

19  application for a certificate of authority to operate a

20  continuing care retirement community is acceptable in

21  fulfillment of the Department of Law Enforcement and Federal

22  Bureau of Investigation background check.

23         (d)  A provisional license may be granted to an

24  applicant when each individual required by this section to

25  undergo background screening has met the standards for the

26  Department of Law Enforcement background check, but the agency

27  has not yet received background screening results from the

28  Federal Bureau of Investigation, or a request for a

29  disqualification exemption has been submitted to the agency as

30  set forth in chapter 435, but a response has not yet been

31  issued.  A license may be granted to the applicant upon the

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    Florida Senate - 2001                           CS for SB 26-B
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  1  agency's receipt of a report of the results of the Federal

  2  Bureau of Investigation background screening for each

  3  individual required by this section to undergo background

  4  screening which confirms that all standards have been met, or

  5  upon the granting of a disqualification exemption by the

  6  agency as set forth in chapter 435.  Any other person who is

  7  required to undergo level 2 background screening may serve in

  8  his or her capacity pending the agency's receipt of the report

  9  from the Federal Bureau of Investigation; however, the person

10  may not continue to serve if the report indicates any

11  violation of background screening standards and a

12  disqualification exemption has not been requested of and

13  granted by the agency as set forth in chapter 435.

14         (e)  Each applicant must submit to the agency, with its

15  application, a description and explanation of any exclusions,

16  permanent suspensions, or terminations of the applicant from

17  the Medicare or Medicaid programs. Proof of compliance with

18  disclosure of ownership and control interest requirements of

19  the Medicaid or Medicare programs shall be accepted in lieu of

20  this submission.

21         (f)  Each applicant must submit to the agency a

22  description and explanation of any conviction of an offense

23  prohibited under the level 2 standards of chapter 435 by a

24  member of the board of directors of the applicant, its

25  officers, or any individual owning 5 percent or more of the

26  applicant. This requirement shall not apply to a director of a

27  not-for-profit corporation or organization if the director

28  serves solely in a voluntary capacity for the corporation or

29  organization, does not regularly take part in the day-to-day

30  operational decisions of the corporation or organization,

31  receives no remuneration for his or her services on the

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    Florida Senate - 2001                           CS for SB 26-B
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  1  corporation or organization's board of directors, and has no

  2  financial interest and has no family members with a financial

  3  interest in the corporation or organization, provided that the

  4  director and the not-for-profit corporation or organization

  5  include in the application a statement affirming that the

  6  director's relationship to the corporation satisfies the

  7  requirements of this paragraph.

  8         (g)  An application for license renewal must contain

  9  the information required under paragraphs (e) and (f).

10         (5)  The applicant shall furnish satisfactory proof of

11  financial ability to operate and conduct the nursing home in

12  accordance with the requirements of this part and all rules

13  adopted under this part, and the agency shall establish

14  standards for this purpose, including information reported

15  under paragraph (2)(e). The agency also shall establish

16  documentation requirements, to be completed by each applicant,

17  that show anticipated facility revenues and expenditures, the

18  basis for financing the anticipated cash-flow requirements of

19  the facility, and an applicant's access to contingency

20  financing.

21         (6)  If the applicant offers continuing care agreements

22  as defined in chapter 651, proof shall be furnished that such

23  applicant has obtained a certificate of authority as required

24  for operation under that chapter.

25         (7)  As a condition of licensure, each licensee, except

26  one offering continuing care agreements as defined in chapter

27  651, must agree to accept recipients of Title XIX of the

28  Social Security Act on a temporary, emergency basis.  The

29  persons whom the agency may require such licensees to accept

30  are those recipients of Title XIX of the Social Security Act

31  who are residing in a facility in which existing conditions

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    Florida Senate - 2001                           CS for SB 26-B
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  1  constitute an immediate danger to the health, safety, or

  2  security of the residents of the facility.

  3         (8)  As a condition of licensure, each facility must

  4  agree to participate in a consumer satisfaction measurement

  5  process as prescribed by the agency.

  6         (8)(9)  The agency may not issue a license to a nursing

  7  home that fails to receive a certificate of need under the

  8  provisions of ss. 408.031-408.045. It is the intent of the

  9  Legislature that, in reviewing a certificate-of-need

10  application to add beds to an existing nursing home facility,

11  preference be given to the application of a licensee who has

12  been awarded a Gold Seal as provided for in s. 400.235, if the

13  applicant otherwise meets the review criteria specified in s.

14  408.035.

15         (9)(10)  The agency may develop an abbreviated survey

16  for licensure renewal applicable to a licensee that has

17  continuously operated as a nursing facility since 1991 or

18  earlier, has operated under the same management for at least

19  the preceding 30 months, and has had during the preceding 30

20  months no class I or class II deficiencies.

21         (10)(11)  The agency may issue an inactive license to a

22  nursing home that will be temporarily unable to provide

23  services but that is reasonably expected to resume services.

24  Such designation may be made for a period not to exceed 12

25  months but may be renewed by the agency for up to 6 additional

26  months. Any request by a licensee that a nursing home become

27  inactive must be submitted to the agency and approved by the

28  agency prior to initiating any suspension of service or

29  notifying residents. Upon agency approval, the nursing home

30  shall notify residents of any necessary discharge or transfer

31  as provided in s. 400.0255.

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  1         (11)(12)  As a condition of licensure, each facility

  2  must establish and submit with its application a plan for

  3  quality assurance and for conducting risk management.

  4         Section 19.  Paragraph (q) of subsection (2) of section

  5  409.815, Florida Statutes, is amended to read:

  6         409.815  Health benefits coverage; limitations.--

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

  8  coverage to qualify for premium assistance payments for an

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

10  coverage, except for coverage under Medicaid and Medikids,

11  must include the following minimum benefits, as medically

12  necessary.

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

14  appropriation for this benefit, covered services include those

15  dental services provided to children by the Florida Medicaid

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

17         Section 20.  Except as otherwise specifically provided

18  in this act, this act shall take effect January 1, 2002.

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    Florida Senate - 2001                           CS for SB 26-B
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  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                         Senate Bill 26-B

  3

  4  Removes language that delayed the minimum staffing for nursing
    homes.
  5
    Clarifies continued Medicaid coverage of children under age 1
  6  with family incomes at or below 185 percent of the federal
    poverty level.
  7
    Clarifies continuation of children's Medically Needy coverage.
  8
    Revises the effective date for elimination of Adult Dental,
  9  Visual, and Hearing Services from January 1, 2002 to July 1,
    2002.
10
    Revises the effective date from April 1, 2002 to January 1,
11  2002 for implementation of mail-order pharmacy services.

12  Provides an effective date of April 1, 2002 for implementation
    of the increase in county contributions for nursing home and
13  intermediate care facilities.

14  Adds language that "declares that this act fulfills an
    important state interest" as a result of the increase in
15  county contributions.

16

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