Senate Bill sb0026Be1

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  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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  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; amending s. 400.071, F.S.; eliminating

15         a provision relating to participation in a

16         consumer-satisfaction-measurement process;

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

18         cross-reference; providing effective dates.

19

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

21

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

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

24         409.903  Mandatory payments for eligible persons.--The

25  agency shall make payments for medical assistance and related

26  services on behalf of the following persons who the

27  department, or the Social Security Administration by contract

28  with the Department of Children and Family Services,

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

30  categorical eligibility tests set forth in federal and state

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


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  1  subject to the availability of moneys and any limitations

  2  established by the General Appropriations Act or chapter 216.

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

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

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

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

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

  8  1, if the child is living in a family or, effective January 1,

  9  1992, that has an income which is at or below 185 percent of

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

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

12  applies for eligibility for the Medicaid program through a

13  qualified Medicaid provider must be offered the opportunity,

14  subject to federal rules, to be made presumptively eligible

15  for the Medicaid program.

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

17  Statutes, is repealed.

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

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

20         409.904  Optional payments for eligible persons.--The

21  agency may make payments for medical assistance and related

22  services on behalf of the following persons who are determined

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

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

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

26  availability of moneys and any limitations established by the

27  General Appropriations Act or chapter 216.

28         (2)(a)  A pregnant woman who would otherwise qualify

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

30  income and whose assets fall within the limits established by

31  the Department of Children and Family Services for the


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  1  medically needy.  A pregnant woman who applies for medically

  2  needy eligibility may not be made presumptively eligible.

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

  4  for Medicaid or the Florida Kidcare program except for the

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

  6  limits established by the Department of Children and Family

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

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

  9  disabled person who would be eligible under any group listed

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

11  assets of such family or person exceed established

12  limitations.

13

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

15  deductible from income in accordance with federal requirements

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

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

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

19  Medicaid recipients, with the exception of services in skilled

20  nursing facilities and intermediate care facilities for the

21  developmentally disabled.

22         (5)  Subject to specific federal authorization, a

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

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

25  poverty level is eligible for family planning services as

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

27  following a pregnancy for which Medicaid paid for

28  pregnancy-related services.

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

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

31  amended to read:


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    CS for SB 26-B                                 First Engrossed



  1         409.906  Optional Medicaid services.--Subject to

  2  specific appropriations, the agency may make payments for

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

  4  the Social Security Act and are furnished by Medicaid

  5  providers to recipients who are determined to be eligible on

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

  7  service that is provided shall be provided only when medically

  8  necessary and in accordance with state and federal law.

  9  Optional services rendered by providers in mobile units to

10  Medicaid recipients may be restricted or prohibited by the

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

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

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

14  making any other adjustments necessary to comply with the

15  availability of moneys and any limitations or directions

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

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

18  services to elderly and disabled persons and subject to the

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

20  direct the Agency for Health Care Administration to amend the

21  Medicaid state plan to delete the optional Medicaid service

22  known as "Intermediate Care Facilities for the Developmentally

23  Disabled."  Optional services may include:

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

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

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

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

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

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

30  mobile dental unit:

31


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

  2  agreement with the Department of Health and complying with

  3  Medicaid's county health department clinic services program

  4  specifications as a county health department clinic services

  5  provider.

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

  7  arrangement with a federally qualified health center and

  8  complying with Medicaid's federally qualified health center

  9  specifications as a federally qualified health center

10  provider.

11         (c)  Rendering dental services to Medicaid recipients,

12  21 years of age and older, at nursing facilities.

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

14  agreement with a state-approved dental educational

15  institution.

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

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

18  for hearing and related services, including hearing

19  evaluations, hearing aid devices, dispensing of the hearing

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

21  21 by a licensed hearing aid specialist, otolaryngologist,

22  otologist, audiologist, or physician.

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

24  for visual examinations, eyeglasses, and eyeglass repairs for

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

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

27  optometrist.

28         Section 5.  Subsection (20) of section 409.906, Florida

29  Statutes, is amended to read:

30         409.906  Optional Medicaid services.--Subject to

31  specific appropriations, the agency may make payments for


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

  2  the Social Security Act and are furnished by Medicaid

  3  providers to recipients who are determined to be eligible on

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

  5  service that is provided shall be provided only when medically

  6  necessary and in accordance with state and federal law.

  7  Optional services rendered by providers in mobile units to

  8  Medicaid recipients may be restricted or prohibited by the

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

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

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

12  making any other adjustments necessary to comply with the

13  availability of moneys and any limitations or directions

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

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

16  services to elderly and disabled persons and subject to the

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

18  direct the Agency for Health Care Administration to amend the

19  Medicaid state plan to delete the optional Medicaid service

20  known as "Intermediate Care Facilities for the Developmentally

21  Disabled."  Optional services may include:

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

23  medications that are prescribed for a recipient by a physician

24  or other licensed practitioner of the healing arts authorized

25  to prescribe medications and that are dispensed to the

26  recipient by a licensed pharmacist or physician in accordance

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

28  mail-order pharmacy services for dispensing drugs. For adults

29  eligible through the medically needy program, pharmacies must

30  dispense a generic drug for a product prescribed for a

31


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  1  beneficiary if a generic product exists for the product

  2  prescribed.

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

  4  409.9065, Florida Statutes, are amended to read:

  5         409.9065  Pharmaceutical expense assistance.--

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

  7  pharmaceutical expense assistance program are those covered

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

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

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

11  coinsurance payment for each prescription purchased through

12  this program.

13         (5)  NONENTITLEMENT.--The pharmaceutical expense

14  assistance program established by this section is not an

15  entitlement. Enrollment levels are limited to those authorized

16  by the Legislature in the annual General Appropriations Act.

17  If funds are insufficient to serve all individuals eligible

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

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

20  enrolling individuals in unfilled enrollment slots.

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

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

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

24         409.907  Medicaid provider agreements.--The agency may

25  make payments for medical assistance and related services

26  rendered to Medicaid recipients only to an individual or

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

28  who is performing services or supplying goods in accordance

29  with federal, state, and local law, and who agrees that no

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

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


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  1  discrimination under any program or activity for which the

  2  provider receives payment from the agency.

  3         (5)  The agency:

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

  5  established rate for services or goods furnished to a

  6  recipient by the provider upon receipt of a properly completed

  7  claim form.  The claim form shall require certification that

  8  the services or goods have been completely furnished to the

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

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

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

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

13  abuse investigation by the agency, the agency may withhold

14  payment to that provider for any pending claim until the

15  conclusion of the investigation. When exercising the

16  provisions of this paragraph, the agency must timely complete

17  its investigation.

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

19  participating in the Medicaid program and before entering into

20  the provider agreement, that the provider submit information,

21  in an initial and any required renewal applications,

22  concerning the professional, business, and personal background

23  of the provider and permit an onsite inspection of the

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

25  designated by the agency to perform this function. Before

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

27  continuing participation in the Medicaid program, the agency

28  may also require that Medicaid providers reimbursed on a

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

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

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


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

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

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

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

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

  6  provider to acquire an additional bond equal to the actual

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

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

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

10  percent or greater ownership interest in the provider or if

11  the provider is an assisted living facility licensed under

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

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

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

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

16  information concerning the background of that entity and of

17  any principal of the entity, including any partner or

18  shareholder having an ownership interest in the entity equal

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

20  participates in or intends to participate in Medicaid through

21  the entity. The information must include:

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

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

24  jurisdiction in which the provider is located or if required

25  by the Federal Government.

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

27  suspension, termination, or other administrative action taken

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

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

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

31  Medicare program; any prior violation of the rules or


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

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

  3  regulatory body of this or any other state.

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

  5  ownership interest that the provider, or any principal,

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

  7  Medicaid provider or health care related entity or any other

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

  9  residential care and treatment to persons.

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

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

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

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

14  application, and completion of any necessary background

15  investigation and criminal history record check, the agency

16  must either:

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

18  earlier than the effective date of the approval of the

19  provider application; or

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

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

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

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

24  efficient administration of the program, including, but not

25  limited to, the current availability of medical care,

26  services, or supplies to recipients, taking into account

27  geographic location and reasonable travel time; the number of

28  providers of the same type already enrolled in the same

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

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

31  making application to provide in the Medicaid program.


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  1         Section 8.  Section 409.9116, Florida Statutes, is

  2  amended to read:

  3         409.9116  Disproportionate share share/financial

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

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

  6  Administration shall administer a federally matched

  7  disproportionate share program and a state-funded financial

  8  assistance program for statutory rural hospitals. The agency

  9  shall make disproportionate share payments to statutory rural

10  hospitals that qualify for such payments and financial

11  assistance payments to statutory rural hospitals that do not

12  qualify for disproportionate share payments. The

13  disproportionate share program payments shall be limited by

14  and conform with federal requirements. Funds shall be

15  distributed quarterly in each fiscal year for which an

16  appropriation is made. Notwithstanding the provisions of s.

17  409.915, counties are exempt from contributing toward the cost

18  of this special reimbursement for hospitals serving a

19  disproportionate share of low-income patients.

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

21  to calculate the total amount earned for hospitals that

22  participate in the rural hospital disproportionate share

23  program or the financial assistance program:

24

25                     TAERH = (CCD + MDD)/TPD

26

27  Where:

28         CCD = total charity care-other, plus charity

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

30  from local governments, and restricted funds for indigent

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


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

  2  CCD.

  3         MDD = Medicaid inpatient days plus Medicaid HMO

  4  inpatient days.

  5         TPD = total inpatient days.

  6         TAERH = total amount earned by each rural hospital.

  7

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

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

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

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

12  distribution of funds for the disproportionate share

13  share/financial assistance program for rural hospitals.

14         (a)  The agency shall first determine a preliminary

15  payment amount for each rural hospital by allocating all

16  available state funds using the following formula:

17

18                  PDAER = (TAERH x TARH)/STAERH

19

20  Where:

21         PDAER = preliminary distribution amount for each rural

22  hospital.

23         TAERH = total amount earned by each rural hospital.

24         TARH = total amount appropriated or distributed under

25  this section.

26         STAERH = sum of total amount earned by each rural

27  hospital.

28         (b)  Federal matching funds for the disproportionate

29  share program shall then be calculated for those hospitals

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

31


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

  2  hospital's disproportionate-share limit will be redistributed

  3  proportionately to those hospitals with an available

  4  disproportionate-share limit to maximize available federal

  5  funds.

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

  7  calculated for each hospital using the formula:

  8

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

10

11  Where:

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

13  hospital.

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

15  4 percent of TARH.

16

17  In calculating the SFOER, PDAER includes federal matching

18  funds from paragraph (b).

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

20  disproportionate share program shall then be calculated using

21  the following formula:

22

23                     ATARH = (TARH - SSFOER)

24

25  Where:

26         ATARH = adjusted total amount appropriated or

27  distributed under this section.

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

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

30

31


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

  2  rural disproportionate share hospital funds shall then be

  3  calculated using the following formula:

  4

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

  6

  7  Where:

  8         DAERH = distribution amount for each rural hospital.

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

10  share program shall then be calculated for those hospitals

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

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

13  paragraph (c) and corresponding federal matching funds are

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

15  total distribution amount for each rural hospital.

16         (3)  The Agency for Health Care Administration may

17  recommend to the Legislature a formula to be used in

18  subsequent fiscal years to distribute funds appropriated for

19  this section that includes charity care, uncompensated care to

20  medically indigent patients, and Medicaid inpatient days.

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

22  rural hospital disproportionate share program are not

23  available, state matching funds appropriated for the program

24  may be utilized for the Rural Hospital Financial Assistance

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

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

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

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

29  must meet the following additional requirements:

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

31  ensure high quality in the provision of services, including


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  1  criteria adopted by agency rule concerning staffing ratios,

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

  3  other standards and criteria as the agency deems appropriate

  4  as specified by rule.

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

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

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

  8  the county public health departments and other low-income

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

10  development of written agreements between these organizations

11  and the hospital.

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

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

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

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

16  funds dispersed under this act are spent.

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

18  Health Care Administration shall use the following formula for

19  distribution of the funds in Specific Appropriation 212 of the

20  2000-2001 General Appropriations Act for the disproportionate

21  share/financial assistance program for rural hospitals.

22         (a)  The agency shall first determine a preliminary

23  payment amount for each rural hospital by allocating all

24  available state funds using the following formula:

25

26                  PDAER = (TAERH x TARH)/STAERH

27

28  Where:

29         PDAER = preliminary distribution amount for each rural

30  hospital.

31         TAERH = total amount earned by each rural hospital.


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    CS for SB 26-B                                 First Engrossed



  1         TARH = total amount appropriated or distributed under

  2  this section.

  3         STAERH = sum of total amount earned by each rural

  4  hospital.

  5         (b)  Federal matching funds for the disproportionate

  6  share program shall then be calculated for those hospitals

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

  8         (c)  The state-funds-only payment amount is then

  9  calculated for each hospital using the formula:

10

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

12

13  Where:

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

15  hospital.

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

17  4 percent of TARH.

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

19  disproportionate share program shall then be calculated using

20  the following formula:

21

22                     ATARH = (TARH - SSFOER)

23

24  Where:

25         ATARH = adjusted total amount appropriated or

26  distributed under this section.

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

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

29         (e)  The determination of the amount of rural

30  disproportionate share hospital funds is calculated by the

31  following formula:


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    CS for SB 26-B                                 First Engrossed



  1

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

  3

  4  Where:

  5         TDAERH = total distribution amount for each rural

  6  hospital.

  7         (f)  Federal matching funds for the disproportionate

  8  share program shall then be calculated for those hospitals

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

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

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

12  to determine the total distribution amount for each rural

13  hospital.

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

15         (6)(7)  This section applies only to hospitals that

16  were defined as statutory rural hospitals, or their

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

18  additional hospital that is defined as a statutory rural

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

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

21  unless additional funds are appropriated each fiscal year

22  specifically to the rural hospital disproportionate share

23  programs and financial assistance programs in an amount

24  necessary to prevent any hospital, or its

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

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

27  because of the eligibility of an additional hospital to

28  participate in the programs. A hospital, or its

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

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

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


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    CS for SB 26-B                                 First Engrossed



  1  section and is not required to seek additional appropriations

  2  under this subsection.

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

  4  409.912, Florida Statutes, is amended to read:

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

  6  agency shall purchase goods and services for Medicaid

  7  recipients in the most cost-effective manner consistent with

  8  the delivery of quality medical care.  The agency shall

  9  maximize the use of prepaid per capita and prepaid aggregate

10  fixed-sum basis services when appropriate and other

11  alternative service delivery and reimbursement methodologies,

12  including competitive bidding pursuant to s. 287.057, designed

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

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

15  minimize the exposure of recipients to the need for acute

16  inpatient, custodial, and other institutional care and the

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

18  agency may establish prior authorization requirements for

19  certain populations of Medicaid beneficiaries, certain drug

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

21  and possible dangerous drug interactions. The Pharmaceutical

22  and Therapeutics Committee shall make recommendations to the

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

24  agency shall inform the Pharmaceutical and Therapeutics

25  Committee of its decisions regarding drugs subject to prior

26  authorization.

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

28  prescribed-drug spending-control program that includes the

29  following components:

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

31  drugs for adult Medicaid recipients is limited to the


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    CS for SB 26-B                                 First Engrossed



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

  2  Children are exempt from this restriction. Antiretroviral

  3  agents are excluded from this limitation. No requirements for

  4  prior authorization or other restrictions on medications used

  5  to treat mental illnesses such as schizophrenia, severe

  6  depression, or bipolar disorder may be imposed on Medicaid

  7  recipients. Medications that will be available without

  8  restriction for persons with mental illnesses include atypical

  9  antipsychotic medications, conventional antipsychotic

10  medications, selective serotonin reuptake inhibitors, and

11  other medications used for the treatment of serious mental

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

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

14  agency shall continue to provide unlimited generic drugs,

15  contraceptive drugs and items, and diabetic supplies. Although

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

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

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

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

20  exceptions are based on prior consultation provided by the

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

22  procedures to ensure that:

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

24  consultation by telephone or other telecommunication device

25  within 24 hours after receipt of a request for prior

26  consultation;

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

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

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

30  and

31


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    CS for SB 26-B                                 First Engrossed



  1         c.  Except for the exception for nursing home residents

  2  and other institutionalized adults and except for drugs on the

  3  restricted formulary for which prior authorization may be

  4  sought by an institutional or community pharmacy, prior

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

  6  restriction is sought by the prescriber and not by the

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

  8  an institutional setting beyond the brand-name-drug

  9  restriction, such approval is authorized for 12 months and

10  monthly prior authorization is not required for that patient.

11         2.  Reimbursement to pharmacies for Medicaid prescribed

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

13  13.25 percent.

14         3.  The agency shall develop and implement a process

15  for managing the drug therapies of Medicaid recipients who are

16  using significant numbers of prescribed drugs each month. The

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

18  comprehensive, physician-directed medical-record reviews,

19  claims analyses, and case evaluations to determine the medical

20  necessity and appropriateness of a patient's treatment plan

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

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

23  Medicaid drug benefit management program shall include

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

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

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

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

28  network based on need, competitive bidding, price

29  negotiations, credentialing, or similar criteria. The agency

30  shall give special consideration to rural areas in determining

31  the size and location of pharmacies included in the Medicaid


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    CS for SB 26-B                                 First Engrossed



  1  pharmacy network. A pharmacy credentialing process may include

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

  3  size, patient educational programs, patient consultation,

  4  disease-management services, and other characteristics. The

  5  agency may impose a moratorium on Medicaid pharmacy enrollment

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

  7  Medicaid-participating providers.

  8         5.  The agency shall develop and implement a program

  9  that requires Medicaid practitioners who prescribe drugs to

10  use a counterfeit-proof prescription pad for Medicaid

11  prescriptions. The agency shall require the use of

12  standardized counterfeit-proof prescription pads by

13  Medicaid-participating prescribers or prescribers who write

14  prescriptions for Medicaid recipients. The agency may

15  implement the program in targeted geographic areas or

16  statewide.

17         6.  The agency may enter into arrangements that require

18  manufacturers of generic drugs prescribed to Medicaid

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

20  average manufacturer price for the manufacturer's generic

21  products. These arrangements shall require that if a

22  generic-drug manufacturer pays federal rebates for

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

24  manufacturer must provide a supplemental rebate to the state

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

26         7.  The agency may establish a preferred drug formulary

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

28  establishment of such formulary, it is authorized to negotiate

29  supplemental rebates from manufacturers that are in addition

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

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


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    CS for SB 26-B                                 First Engrossed



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

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

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

  4  supplemental rebates the agency may negotiate. The agency may

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

  6  competitive at lower rebate percentages. Agreement to pay the

  7  minimum supplemental rebate percentage will guarantee a

  8  manufacturer that the Medicaid Pharmaceutical and Therapeutics

  9  Committee will consider a product for inclusion on the

10  preferred drug formulary. However, a pharmaceutical

11  manufacturer is not guaranteed placement on the formulary by

12  simply paying the minimum supplemental rebate. Agency

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

14  recommendations of the Medicaid Pharmaceutical and

15  Therapeutics Committee, as well as the price of competing

16  products minus federal and state rebates. The agency is

17  authorized to contract with an outside agency or contractor to

18  conduct negotiations for supplemental rebates. For the

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

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

21  program benefits that offset a Medicaid expenditure. Such

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

23  disease management programs, drug product donation programs,

24  drug utilization control programs, prescriber and beneficiary

25  counseling and education, fraud and abuse initiatives, and

26  other services or administrative investments with guaranteed

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

28  reduction is included in the General Appropriations Act. The

29  agency is authorized to seek any federal waivers to implement

30  this initiative.

31


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    CS for SB 26-B                                 First Engrossed



  1         8.  The agency shall establish an advisory committee

  2  for the purposes of studying the feasibility of using a

  3  restricted drug formulary for nursing home residents and other

  4  institutionalized adults. The committee shall be comprised of

  5  seven members appointed by the Secretary of Health Care

  6  Administration. The committee members shall include two

  7  physicians licensed under chapter 458 or chapter 459; three

  8  pharmacists licensed under chapter 465 and appointed from a

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

10  Pharmacy Alliance; and two pharmacists licensed under chapter

11  465.

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

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

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

15         409.913  Oversight of the integrity of the Medicaid

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

17  activities of Florida Medicaid recipients, and providers and

18  their representatives, to ensure that fraudulent and abusive

19  behavior and neglect of recipients occur to the minimum extent

20  possible, and to recover overpayments and impose sanctions as

21  appropriate.

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

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

24  described in subsection (14):

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

26  more than 1 year.

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

28  more than 1 year to 20 years.

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

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

31  as refusing to furnish Medicaid-related records or refusing


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    CS for SB 26-B                                 First Engrossed



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

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

  3  improper billing of a Medicaid recipient; each instance of

  4  including an unallowable cost on a hospital or nursing home

  5  Medicaid cost report after the provider or authorized

  6  representative has been advised in an audit exit conference or

  7  previous audit report of the cost unallowability; each

  8  instance of furnishing a Medicaid recipient goods or

  9  professional services that are inappropriate or of inferior

10  quality as determined by competent peer judgment; each

11  instance of knowingly submitting a materially false or

12  erroneous Medicaid provider enrollment application, request

13  for prior authorization for Medicaid services, drug exception

14  request, or cost report; each instance of inappropriate

15  prescribing of drugs for a Medicaid recipient as determined by

16  competent peer judgment; and each false or erroneous Medicaid

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

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

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

20  information of patient abuse or neglect or of any act

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

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

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

24  paragraph (14)(i).

25         (f)  Imposition of liens against provider assets,

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

27  property, not to exceed the amount of fines or recoveries

28  sought, upon entry of an order by a court determining that

29  such moneys are due or recoverable.

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

31  recovery of a fine or overpayment.


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    CS for SB 26-B                                 First Engrossed



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

  2  committed by a provider which is conducted pursuant to this

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

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

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

  6  contested, the agency ultimately prevailed.

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

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

  9         409.915  County contributions to Medicaid.--Although

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

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

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

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

14  service as provided in this section.

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

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

17  state for Medicaid recipients enrolled in health maintenance

18  organizations or prepaid health plans, of providing the items

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

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

21  per person.

22         Section 12.  The Legislature determines and declares

23  that this act fulfills an important state interest.

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

25  Florida Statutes, is amended to read:

26         409.908  Reimbursement of Medicaid providers.--Subject

27  to specific appropriations, the agency shall reimburse

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

29  according to methodologies set forth in the rules of the

30  agency and in policy manuals and handbooks incorporated by

31  reference therein.  These methodologies may include fee


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    CS for SB 26-B                                 First Engrossed



  1  schedules, reimbursement methods based on cost reporting,

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

  3  and other mechanisms the agency considers efficient and

  4  effective for purchasing services or goods on behalf of

  5  recipients.  Payment for Medicaid compensable services made on

  6  behalf of Medicaid eligible persons is subject to the

  7  availability of moneys and any limitations or directions

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

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

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

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

12  making any other adjustments necessary to comply with the

13  availability of moneys and any limitations or directions

14  provided for in the General Appropriations Act, provided the

15  adjustment is consistent with legislative intent.

16         (14)  A provider of prescribed drugs shall be

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

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

19  allowable fee established by the agency, plus a dispensing

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

21  fee for payments for prescribed medicines while ensuring

22  continued access for Medicaid recipients.  The variable

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

24  or both the volume of prescriptions dispensed by a specific

25  pharmacy provider, and the volume of prescriptions dispensed

26  to an individual recipient, and dispensing of

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

28  pharmacy dispensing fee authorized by statute and in the

29  annual General Appropriations Act by $0.50 for the dispensing

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

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


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    CS for SB 26-B                                 First Engrossed



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

  2  list. The agency is authorized to limit reimbursement for

  3  prescribed medicine in order to comply with any limitations or

  4  directions provided for in the General Appropriations Act,

  5  which may include implementing a prospective or concurrent

  6  utilization review program.

  7         Section 14.  Section 400.0225, Florida Statutes, is

  8  repealed.

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

10  400.191, Florida Statutes, is amended to read:

11         400.191  Availability, distribution, and posting of

12  reports and records.--

13         (2)  The agency shall provide additional information in

14  consumer-friendly printed and electronic formats to assist

15  consumers and their families in comparing and evaluating

16  nursing home facilities.

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

18  shall include at least the following information either

19  directly or indirectly through a link to another established

20  site or sites of the agency's choosing:

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

22  facilities in this state.

23         2.  Whether such nursing home facilities are

24  proprietary or nonproprietary.

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

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

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

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

29  organization owning or managing more than one nursing facility

30  in this state.

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


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    CS for SB 26-B                                 First Engrossed



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

  2  facility.

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

  4  facility.

  5         8.  The languages spoken by the administrator and staff

  6  of each facility.

  7         9.  Whether or not each facility accepts Medicare or

  8  Medicaid recipients or insurance, health maintenance

  9  organization, Veterans Administration, CHAMPUS program, or

10  workers' compensation coverage.

11         10.  Recreational and other programs available at each

12  facility.

13         11.  Special care units or programs offered at each

14  facility.

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

16  community that offers other services pursuant to part III,

17  part IV, or part V.

18         13.  The results of consumer and family satisfaction

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

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

21  presented in either numeric or symbolic form for the intended

22  consumer audience.

23         13.14.  Survey and deficiency information contained on

24  the Online Survey Certification and Reporting (OSCAR) system

25  of the federal Health Care Financing Administration, including

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

27  each facility for the past 45 months.  For noncertified

28  nursing homes, state survey and deficiency information,

29  including annual survey, revisit, and complaint survey

30  information for the past 45 months shall be provided.

31


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    CS for SB 26-B                                 First Engrossed



  1         14.15.  A summary of the Online Survey Certification

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

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

  4  comparison ranking with respect to other facilities based on

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

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

  7  citations; and the number of annual recertification surveys

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

  9  rating, or comparison ranking may be presented in either

10  numeric or symbolic form for the intended consumer audience.

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

12  400.235, Florida Statutes, is amended to read:

13         400.235  Nursing home quality and licensure status;

14  Gold Seal Program.--

15         (5)  Facilities must meet the following additional

16  criteria for recognition as a Gold Seal Program facility:

17         (c)  Participate consistently in a the required

18  consumer satisfaction process as prescribed by the agency, and

19  demonstrate that information is elicited from residents,

20  family members, and guardians about satisfaction with the

21  nursing facility, its environment, the services and care

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

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

24  act on information gathered from the consumer satisfaction

25  measures.

26

27  A facility assigned a conditional licensure status may not

28  qualify for consideration for the Gold Seal Program until

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

30  II deficiencies and has completed a regularly scheduled

31  relicensure survey.


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    CS for SB 26-B                                 First Engrossed



  1         Section 17.  Section 400.071, Florida Statutes, is

  2  amended to read:

  3         400.071  Application for license.--

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

  5  400.062 shall be made to the agency on forms furnished by it

  6  and shall be accompanied by the appropriate license fee.

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

  8  contain the following:

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

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

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

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

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

14  be known.

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

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

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

18  service, firm, association, partnership, or corporation

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

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

21  professional service, firm, association, partnership, or

22  corporation in which such interest is held.

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

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

25  that such location conforms to the local zoning ordinances.

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

27  management or supervision the facility will be conducted and

28  the name of the administrator.

29         (e)  A signed affidavit disclosing any financial or

30  ownership interest that a person or entity described in

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


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    CS for SB 26-B                                 First Engrossed



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

  2  provide health or residential care which has closed

  3  voluntarily or involuntarily; has filed for bankruptcy; has

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

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

  6  was initiated by a regulatory agency. The affidavit must

  7  disclose the reason any such entity was closed, whether

  8  voluntarily or involuntarily.

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

10  Medicare and Medicaid certified beds.

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

12  and training of the employees of the facility and of the moral

13  character of the applicant and employees which the agency

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

15  nursing home with which the applicant or employees have been

16  affiliated through ownership or employment within 5 years of

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

18  any criminal convictions involving the applicant and any

19  criminal convictions involving an employee if known by the

20  applicant after inquiring of the employee.  The applicant must

21  demonstrate that sufficient numbers of qualified staff, by

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

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

24  facility.

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

26  the applicant rendered within the 10 years preceding the

27  application, relating to medical negligence, violation of

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

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

30  of any new verdict or judgment involving the applicant,

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


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    CS for SB 26-B                                 First Engrossed



  1  clerk of the court.  The information required in this

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

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

  4  record.

  5         (3)  The applicant shall submit evidence which

  6  establishes the good moral character of the applicant,

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

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

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

10  partnership, association, or corporation; and no licensed

11  nursing home administrator shall have been convicted, or found

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

13  jurisdiction which affects or may potentially affect residents

14  in the facility.

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

16  following requirements:

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

18  application, the agency shall require background screening of

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

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

21  subsection, the term "applicant" means the facility

22  administrator, or similarly titled individual who is

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

24  facility, and the facility financial officer, or similarly

25  titled individual who is responsible for the financial

26  operation of the licensed facility.

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

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

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

30  the agency has probable cause to believe that such individual

31


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    CS for SB 26-B                                 First Engrossed



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

  2  standards for screening set forth in chapter 435.

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

  4  screening requirements of chapter 435 which has been submitted

  5  within the previous 5 years in compliance with any other

  6  health care or assisted living licensure requirements of this

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

  8  compliance with background screening which has been submitted

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

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

11  application for a certificate of authority to operate a

12  continuing care retirement community is acceptable in

13  fulfillment of the Department of Law Enforcement and Federal

14  Bureau of Investigation background check.

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

16  applicant when each individual required by this section to

17  undergo background screening has met the standards for the

18  Department of Law Enforcement background check, but the agency

19  has not yet received background screening results from the

20  Federal Bureau of Investigation, or a request for a

21  disqualification exemption has been submitted to the agency as

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

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

24  agency's receipt of a report of the results of the Federal

25  Bureau of Investigation background screening for each

26  individual required by this section to undergo background

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

28  upon the granting of a disqualification exemption by the

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

30  required to undergo level 2 background screening may serve in

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


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    CS for SB 26-B                                 First Engrossed



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

  2  may not continue to serve if the report indicates any

  3  violation of background screening standards and a

  4  disqualification exemption has not been requested of and

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

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

  7  application, a description and explanation of any exclusions,

  8  permanent suspensions, or terminations of the applicant from

  9  the Medicare or Medicaid programs. Proof of compliance with

10  disclosure of ownership and control interest requirements of

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

12  this submission.

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

14  description and explanation of any conviction of an offense

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

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

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

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

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

20  serves solely in a voluntary capacity for the corporation or

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

22  operational decisions of the corporation or organization,

23  receives no remuneration for his or her services on the

24  corporation or organization's board of directors, and has no

25  financial interest and has no family members with a financial

26  interest in the corporation or organization, provided that the

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

28  include in the application a statement affirming that the

29  director's relationship to the corporation satisfies the

30  requirements of this paragraph.

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    CS for SB 26-B                                 First Engrossed



  1         (g)  An application for license renewal must contain

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

  3         (5)  The applicant shall furnish satisfactory proof of

  4  financial ability to operate and conduct the nursing home in

  5  accordance with the requirements of this part and all rules

  6  adopted under this part, and the agency shall establish

  7  standards for this purpose, including information reported

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

  9  documentation requirements, to be completed by each applicant,

10  that show anticipated facility revenues and expenditures, the

11  basis for financing the anticipated cash-flow requirements of

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

13  financing.

14         (6)  If the applicant offers continuing care agreements

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

16  applicant has obtained a certificate of authority as required

17  for operation under that chapter.

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

19  one offering continuing care agreements as defined in chapter

20  651, must agree to accept recipients of Title XIX of the

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

22  persons whom the agency may require such licensees to accept

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

24  who are residing in a facility in which existing conditions

25  constitute an immediate danger to the health, safety, or

26  security of the residents of the facility.

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

28  agree to participate in a consumer satisfaction measurement

29  process as prescribed by the agency.

30         (8)(9)  The agency may not issue a license to a nursing

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


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    CS for SB 26-B                                 First Engrossed



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

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

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

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

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

  6  applicant otherwise meets the review criteria specified in s.

  7  408.035.

  8         (9)(10)  The agency may develop an abbreviated survey

  9  for licensure renewal applicable to a licensee that has

10  continuously operated as a nursing facility since 1991 or

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

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

13  months no class I or class II deficiencies.

14         (10)(11)  The agency may issue an inactive license to a

15  nursing home that will be temporarily unable to provide

16  services but that is reasonably expected to resume services.

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

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

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

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

21  agency prior to initiating any suspension of service or

22  notifying residents. Upon agency approval, the nursing home

23  shall notify residents of any necessary discharge or transfer

24  as provided in s. 400.0255.

25         (11)(12)  As a condition of licensure, each facility

26  must establish and submit with its application a plan for

27  quality assurance and for conducting risk management.

28         Section 18.  Paragraph (q) of subsection (2) of section

29  409.815, Florida Statutes, is amended to read:

30         409.815  Health benefits coverage; limitations.--

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    CS for SB 26-B                                 First Engrossed



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

  2  coverage to qualify for premium assistance payments for an

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

  4  coverage, except for coverage under Medicaid and Medikids,

  5  must include the following minimum benefits, as medically

  6  necessary.

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

  8  appropriation for this benefit, covered services include those

  9  dental services provided to children by the Florida Medicaid

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

11         Section 19.  Except as otherwise specifically provided

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

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