Senate Bill sb1838c1

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    Florida Senate - 2002                           CS for SB 1838

    By the Committee on Health, Aging and Long-Term Care; and
    Senator Brown-Waite




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  1                      A bill to be entitled

  2         An act relating to long-term care; creating s.

  3         409.221, F.S.; creating the "Florida

  4         Consumer-Directed Care Act"; providing

  5         legislative findings; providing legislative

  6         intent; establishing the consumer-directed care

  7         program; providing for consumer selection of

  8         certain long-term-care services and providers;

  9         providing for interagency agreements between

10         the Agency for Health Care Administration and

11         the Department of Elderly Affairs, the

12         Department of Health, and the Department of

13         Children and Family Services; providing for

14         program eligibility and enrollment; providing

15         definitions; providing for consumer budget

16         allowances and purchasing guidelines;

17         specifying authorized services; providing roles

18         and responsibilities of consumers, the agency

19         and departments, and fiduciary intermediaries;

20         providing background screening requirements for

21         persons who render care under the program;

22         providing rulemaking authority of the agency

23         and departments; requiring the agency to apply

24         for federal waivers as necessary; requiring

25         ongoing program reviews and annual reports;

26         providing legislative findings and intent with

27         respect to the needs of the state's elderly

28         population; requiring the Agency for Health

29         Care Administration and the Department of

30         Elderly Affairs to submit a plan to the

31         Governor and Legislature for reducing

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  1         nursing-home-bed days funded under the Medicaid

  2         program; amending s. 408.034, F.S.; providing

  3         additional requirements for the Agency for

  4         Health Care Administration in determining the

  5         need for additional nursing-facility beds;

  6         amending s. 409.912; requiring the Agency for

  7         Health Care Administration to establish a

  8         nursing facility preadmission screening

  9         program; authorizing the agency to operate the

10         program by contract; requiring an annual report

11         to the Legislature and the Office of

12         Long-Term-Care Policy; amending s. 430.03,

13         F.S.; revising the purposes of the Department

14         of Elderly Affairs with respect to developing

15         policy, making recommendations, and

16         coordinating activities; amending s. 430.04,

17         F.S.; revising the duties of the Department of

18         Elderly Affairs with respect to developing

19         programs and policies related to aging;

20         creating s. 430.041, F.S.; establishing the

21         Office of Long-Term-Care Policy within the

22         Department of Elderly Affairs; requiring the

23         office to develop a State Long-Term-Care Plan;

24         requiring the office to make recommendations

25         for coordinating the services provided by state

26         agencies; providing for the appointment of an

27         advisory board to the Office of Long-Term-Care

28         Policy; specifying membership in the advisory

29         board; providing for reimbursement of per diem

30         and travel expenses for members of the advisory

31         board; requiring that the office submit an

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    Florida Senate - 2002                           CS for SB 1838
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  1         annual report to the Governor and Legislature;

  2         requiring the Agency for Health Care

  3         Administration and the Department of Elderly

  4         Affairs to provide staff and support services

  5         for the Office of Long-Term-Care Policy;

  6         creating s. 430.7031, F.S.; requiring the

  7         Department of Elderly Affairs and the Agency

  8         for Health Care Administration to implement a

  9         nursing home transition program; providing

10         requirements for the program; amending ss.

11         409.908, 430.708, 641.386, F.S., relating to

12         reimbursement of Medicaid providers,

13         certificates of need, and agent licensing and

14         appointment; conforming cross-references to

15         changes made by the act; providing an effective

16         date.

17

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

19

20         Section 1.  Section 409.221, Florida Statutes, is

21  created to read:

22         409.221  Consumer-directed care program.--

23         (1)  SHORT TITLE.--This section may be cited as the

24  "Florida Consumer-Directed Care Act."

25         (2)  LEGISLATIVE FINDINGS.--The Legislature finds that

26  alternatives to institutional care, such as in-home and

27  community-based care, should be encouraged. The Legislature

28  finds that giving recipients of in-home and community-based

29  services the opportunity to select the services they need and

30  the providers they want, including family and friends,

31  enhances their sense of dignity and autonomy. The Legislature

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  1  also finds that providing consumers choice and control, as

  2  tested in current research and demonstration projects, has

  3  been beneficial and should be developed further and

  4  implemented statewide.

  5         (3)  LEGISLATIVE INTENT.--It is the intent of the

  6  Legislature to nurture the autonomy of those citizens of the

  7  state, of all ages, who have disabilities by providing the

  8  long-term care services they need in the least restrictive,

  9  appropriate setting. It is the intent of the Legislature to

10  give such individuals more choices in and greater control over

11  the purchased long-term care services they receive.

12         (4)  CONSUMER-DIRECTED CARE.--

13         (a)  Program established.--The Agency for Health Care

14  Administration shall establish the consumer-directed care

15  program which shall be based on the principles of consumer

16  choice and control. The agency shall implement the program

17  upon federal approval. The agency shall establish interagency

18  cooperative agreements with and shall work with the

19  Departments of Elderly Affairs, Health, and Children and

20  Family Services to implement and administer the program. The

21  program shall allow enrolled persons to choose the providers

22  of services and to direct the delivery of services, to best

23  meet their long-term care needs. The program must operate

24  within the funds appropriated by the Legislature.

25         (b)  Eligibility and enrollment.--Persons who are

26  enrolled in one of the Medicaid home and community-based

27  waiver programs and are able to direct their own care, or to

28  designate an eligible representative, may choose to

29  participate in the consumer-directed care program.

30         (c)  Definitions.--For purposes of this section, the

31  term:

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  1         1.  "Budget allowance" means the amount of money made

  2  available each month to a consumer to purchase needed

  3  long-term care services, based on the results of a functional

  4  needs assessment.

  5         2.  "Consultant" means an individual who provides

  6  technical assistance to consumers in meeting their

  7  responsibilities under this section.

  8         3.  "Consumer" means a person who has chosen to

  9  participate in the program, has met the enrollment

10  requirements, and has received an approved budget allowance.

11         4.  "Fiscal intermediary" means an entity approved by

12  the agency that helps the consumer manage the consumer's

13  budget allowance, retains the funds, processes employment

14  information, if any, and tax information, reviews records to

15  ensure correctness, writes paychecks to providers, and

16  delivers paychecks to the consumer for distribution to

17  providers and caregivers.

18         5.  "Provider" means:

19         a.  A person licensed or otherwise permitted to render

20  services eligible for reimbursement under this program for

21  whom the consumer is not the employer of record; or

22         b.  A consumer-employed caregiver for whom the consumer

23  is the employer of record.

24         6.  "Representative" means an uncompensated individual

25  designated by the consumer to assist in managing the

26  consumer's budget allowance and needed services.

27         (d)  Budget allowances.--Consumers enrolled in the

28  program shall be given a monthly budget allowance based on the

29  results of their assessed functional needs and the financial

30  resources of the program. Consumers shall receive the budget

31  allowance directly from an agency-approved fiscal

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  1  intermediary. Each department shall develop purchasing

  2  guidelines, approved by the agency, to assist consumers in

  3  using the budget allowance to purchase needed, cost-effective

  4  services.

  5         (e)  Services.--Consumers shall use the budget

  6  allowance only to pay for home and community-based services

  7  that meet the consumer's long-term care needs and are a

  8  cost-efficient use of funds. Such services may include, but

  9  are not limited to, the following:

10         1.  Personal care.

11         2.  Homemaking and chores, including housework, meals,

12  shopping, and transportation.

13         3.  Home modifications and assistive devices which may

14  increase the consumer's independence or make it possible to

15  avoid institutional placement.

16         4.  Assistance in taking self-administered medication.

17         5.  Day care and respite care services, including those

18  provided by nursing home facilities pursuant to s. 400.141(6)

19  or by adult day care facilities licensed pursuant to s.

20  400.554.

21         6.  Personal care and support services provided in an

22  assisted living facility.

23         (f)  Consumer roles and responsibilities.--Consumers

24  shall be allowed to choose the providers of services, as well

25  as when and how the services are provided. Providers may

26  include a consumer's neighbor, friend, spouse, or relative.

27         1.  In cases where a consumer is the employer of

28  record, the consumer's roles and responsibilities include, but

29  are not limited to, the following:

30         a.  Developing a job description.

31

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  1         b.  Selecting caregivers and submitting information for

  2  the background screening as required in s. 435.05.

  3         c.  Communicating needs, preferences, and expectations

  4  about services being purchased.

  5         d.  Providing the fiscal intermediary with all

  6  information necessary for provider payments and tax

  7  requirements.

  8         e.  Ending the employment of an unsatisfactory

  9  caregiver.

10         2.  In cases where a consumer is not the employer of

11  record, the consumer's roles and responsibilities include, but

12  are not limited to, the following:

13         a.  Communicating needs, preferences, and expectations

14  about services being purchased.

15         b.  Ending the services of an unsatisfactory provider.

16         c.  Providing the fiscal agent with all information

17  necessary for provider payments and tax requirements.

18         (g)  Agency and departments roles and

19  responsibilities.--The agency's and the departments' roles and

20  responsibilities include, but are not limited to, the

21  following:

22         1.  Assessing each consumer's functional needs, helping

23  with the service plan, and providing ongoing assistance with

24  the service plan.

25         2.  Offering the services of consultants who shall

26  provide training, technical assistance, and support to the

27  consumer.

28         3.  Completing the background screening for providers.

29         4.  Approving fiscal intermediaries.

30

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  1         5.  Establishing the minimum qualifications for all

  2  caregivers and providers and being the final arbiter of the

  3  fitness of any individual to be a caregiver or provider.

  4         (h)  Fiscal intermediary roles and

  5  responsibilities.--The fiscal intermediary's roles and

  6  responsibilities include, but are not limited to, the

  7  following:

  8         1.  Providing recordkeeping services.

  9         2.  Retaining the consumer-directed care funds,

10  processing employment and tax information, reviewing records

11  to ensure correctness, writing paychecks to providers, and

12  delivering paychecks to the consumer for distribution.

13         (i)  Background screening requirements.--All persons

14  who render care under this section shall comply with the

15  requirements of s. 435.05. Persons shall be excluded from

16  employment pursuant to s. 435.06.

17         1.  Persons excluded from employment may request an

18  exemption from disqualification, as provided in s. 435.07.

19  Persons not subject to certification or professional licensure

20  may request an exemption from the agency. In considering a

21  request for an exemption, the agency shall comply with the

22  provisions of s. 435.07.

23         2.  The agency shall, as allowable, reimburse

24  consumer-employed caregivers for the cost of conducting

25  background screening as required by this section.

26         (j)  Rules; federal waivers.--In order to implement

27  this section:

28         1.  The agency and the Departments of Elderly Affairs,

29  Health, and Children and Family Services are authorized to

30  adopt and enforce rules.

31

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  1         2.  The agency shall take all necessary action to

  2  ensure state compliance with federal regulations. The agency

  3  shall apply for any necessary federal waivers or waiver

  4  amendments needed to implement the program.

  5         (k)  Reviews and reports.--The agency and the

  6  Departments of Elderly Affairs, Health, and Children and

  7  Family Services shall each, on an ongoing basis, review and

  8  assess the implementation of the consumer-directed care

  9  program. By January 15 of each year, the agency shall submit a

10  written report to the Legislature that includes each

11  department's review of the program and contains

12  recommendations for improvements to the program.

13         Section 2.  The Legislature finds that the State of

14  Florida does not have a comprehensive and effective strategy

15  for economically and efficiently meeting the long-term-care

16  needs of an increasingly elderly population; that multiple

17  state agencies have responsibilities for oversight, planning,

18  and operation of long-term-care programs; that long-term care

19  is provided by a complex array of public and private entities

20  delivering services; that there has not been a focus on

21  evaluation of innovative and pilot projects and expansion of

22  pilot projects that are successful; that the provision of

23  long-term-care services has not been approached holistically;

24  and that the state does not have a mechanism for ensuring that

25  long-term-care programs are effectively and efficiently

26  operated and coordinated to comply with the policies set out

27  in Florida Statutes. It is therefore the intent of the

28  Legislature to increase the rate of diversion of elderly

29  persons in need of long-term care to noninstitutional

30  alternatives; to increase coordination, evaluation, and

31  planning for the state's long-term-care system; to expand

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  1  successful pilot programs; and to establish a nursing facility

  2  preadmission screening program.

  3         Section 3.  (1)  Prior to December 1, 2002, the Agency

  4  for Health Care Administration in consultation with the

  5  Department of Elderly Affairs shall submit to the Governor,

  6  the President of the Senate, and the Speaker of the House of

  7  Representatives a plan to reduce the number of

  8  nursing-home-bed days purchased by the state Medicaid program

  9  and to replace such nursing home care with care provided in

10  less costly alternative settings.

11         (2)  The plan must include specific goals for reducing

12  Medicaid-funded bed days and recommend specific statutory and

13  operational changes necessary to achieve such reduction.

14         (3)  The plan must include an evaluation of the

15  cost-effectiveness and the relative strengths and weaknesses

16  of programs that serve as alternatives to nursing homes.

17         Section 4.  Section 408.034, Florida Statutes, is

18  amended to read:

19         408.034  Duties and responsibilities of agency;

20  rules.--

21         (1)  The agency is designated as the single state

22  agency to issue, revoke, or deny certificates of need and to

23  issue, revoke, or deny exemptions from certificate-of-need

24  review in accordance with the district plans and present and

25  future federal and state statutes.  The agency is designated

26  as the state health planning agency for purposes of federal

27  law.

28         (2)  In the exercise of its authority to issue licenses

29  to health care facilities and health service providers, as

30  provided under chapters 393, 395, and parts II and VI of

31  chapter 400, the agency may not issue a license to any health

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  1  care facility, health service provider, hospice, or part of a

  2  health care facility which fails to receive a certificate of

  3  need or an exemption for the licensed facility or service.

  4         (3)  The agency shall establish, by rule, uniform need

  5  methodologies for health services and health facilities. In

  6  developing uniform need methodologies, the agency shall, at a

  7  minimum, consider the demographic characteristics of the

  8  population, the health status of the population, service use

  9  patterns, standards and trends, geographic accessibility, and

10  market economics.

11         (4)  Prior to determining that there is a need for

12  additional community nursing-facility beds in any area of the

13  state, the agency shall determine that the need cannot be met

14  through the provision, enhancement, or expansion of home and

15  community-based services. In determining such need, the agency

16  shall examine nursing-home-placement patterns and demographic

17  patterns of persons entering nursing homes and the

18  availability of and effectiveness of existing home-based and

19  community-based service delivery systems at meeting the

20  long-term-care needs of the population. The agency shall

21  recommend to the Office of Long-Term-Care Policy changes that

22  could be made to existing home-based and community-based

23  delivery systems to lessen the need for additional

24  nursing-facility beds.

25         (5)(4)  The agency shall establish by rule a

26  nursing-home-bed-need methodology that reduces the community

27  nursing home bed need for the areas of the state where the

28  agency establishes pilot community diversion programs through

29  the Title XIX aging waiver program.

30         (6)(5)  The agency may adopt rules necessary to

31  implement ss. 408.031-408.045.

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  1         Section 5.  Present subsections (13) through (39) of

  2  section 409.912, Florida Statutes, are redesignated as

  3  subsections (14) through (40) and a new subsection (13) is

  4  added to that section 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         (13)(a)  The agency shall operate the Comprehensive

28  Assessment and Review (CARES) nursing facility preadmission

29  screening program to ensure that Medicaid payment for nursing

30  facility care is made only for individuals whose conditions

31  require such care and to ensure that long-term-care services

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  1  are provided in the setting most appropriate to the needs of

  2  the person and in the most economical manner possible. The

  3  CARES program shall also ensure that individuals participating

  4  in Medicaid home and community-based waiver programs meet

  5  criteria for those programs, consistent with approved federal

  6  waivers.

  7         (b)  The agency may operate the CARES program using its

  8  own staff or may contract with another state agency or other

  9  provider. If the agency contracts for the operation of the

10  program, the agency must maintain policy control of all

11  operations of the program, including the criteria applied and

12  forms used, and perform regular monitoring to assure effective

13  and efficient operation of the program and ensure that the

14  operation of the program is consistent with state and federal

15  law and rules.

16         (c)  The agency shall develop performance standards for

17  the CARES program.

18         (d)  Prior to making payment for nursing facility

19  services for a Medicaid recipient, the agency must verify that

20  the nursing facility preadmission screening program has

21  determined that the individual requires nursing facility care

22  and that the individual cannot be safely served in

23  community-based programs. The nursing facility preadmission

24  screening program shall refer a Medicaid recipient to a

25  community-based program if the individual could be safely

26  served at a lower cost and the recipient chooses to

27  participate in such program.

28         (e)  By January 1 of each year, the agency shall submit

29  a report to the Legislature and the Office of Long-Term-Care

30  Policy describing the operations of the CARES program. The

31  report must describe:

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  1         1.  Rate of diversion to community alternative

  2  programs;

  3         2.  CARES program staffing needs to achieve additional

  4  diversions;

  5         3.  Reasons the program is unable to place individuals

  6  in less restrictive settings when such individuals desired

  7  such services and could have been served in such settings;

  8         4.  Barriers to appropriate placement, including

  9  barriers due to policies or operations of other agencies or

10  state-funded programs; and

11         5.  Statutory changes necessary to ensure that

12  individuals in need of long-term-care services receive care in

13  the least-restrictive environment.

14         Section 6.  Section 430.03, Florida Statutes, is

15  amended to read:

16         430.03  Purposes.--The purposes of the Department of

17  Elderly Affairs are to:

18         (1)  Serve as the primary state agency responsible for

19  administering human services programs for the elderly and for

20  developing policy recommendations for long-term care.

21         (2)  Combat ageism and create public awareness and

22  understanding of the potentials and needs of elderly persons.

23         (3)  Study and plan for programs and services to meet

24  identified and projected needs and to provide opportunities

25  for personal development and achievement of persons aged 60

26  years and older.

27         (4)  Advocate quality programs and services for the

28  state's elderly population and on behalf of the individual

29  citizen's needs.

30         (5)  Coordinate interdepartmental policy development

31  and program planning for all state agencies that provide

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  1  services for the elderly population in order to prevent

  2  duplicative efforts, to maximize utilization of resources, and

  3  to ensure cooperation, communication, and departmental

  4  linkages.

  5         (6)  Recommend state and local level organizational

  6  models for the planning, coordination, implementation, and

  7  evaluation of programs serving the elderly population.

  8         (5)(7)  Oversee implementation of federally funded and

  9  state-funded programs and services for the state's elderly

10  population.

11         (6)(8)  Recommend legislative budget requests for

12  programs and services for the state's elderly population.

13         (7)(9)  Serve as a state-level information

14  clearinghouse and encourage the development of local-level

15  identifiable points of information and referral regarding all

16  federal, state, and local resources of assistance to elderly

17  citizens.

18         (8)(10)  Assist elderly persons to secure needed

19  services in accordance with personal choice and in a manner

20  that achieves or maintains autonomy and prevents, reduces, or

21  eliminates dependency.

22         (9)(11)  Promote the maintenance and improvement of the

23  physical well-being and mental health of elderly persons.

24         (10)(12)  Promote opportunities for volunteerism among

25  the elderly population.

26         (11)(13)  Promote the prevention of neglect, abuse, or

27  exploitation of elderly persons unable to protect their own

28  interests.

29         (12)(14)  Eliminate and prevent inappropriate

30  institutionalization of elderly persons by promoting

31

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  1  community-based care, home-based care, or other forms of less

  2  intensive care.

  3         (13)(15)  Aid in the support of families and other

  4  caregivers of elderly persons.

  5         (14)(16)  Promote intergenerational relationships.

  6         (17)  Oversee aging research conducted or funded by any

  7  state agency to ensure that such activities are coordinated

  8  and directed to fulfill the intent and purposes of this act.

  9         Section 7.  Section 430.04, Florida Statutes, is

10  amended to read:

11         430.04  Duties and responsibilities of the Department

12  of Elderly Affairs.--The Department of Elderly Affairs shall:

13         (1)  Administer human services and long-term care

14  programs, including programs funded under the federal Older

15  Americans Act of 1965, as amended, and other programs that are

16  assigned to it by law.

17         (2)  Be responsible for ensuring that each area agency

18  on aging operates in a manner to ensure that the elderly of

19  this state receive the best services possible.  The department

20  shall rescind designation of an area agency on aging or take

21  intermediate measures against the agency, including corrective

22  action, unannounced special monitoring, temporary assumption

23  of operation of one or more programs by the department,

24  placement on probationary status, imposing a moratorium on

25  agency action, imposing financial penalties for

26  nonperformance, or other administrative action pursuant to

27  chapter 120, if the department finds that:

28         (a)  An intentional or negligent act of the agency has

29  materially affected the health, welfare, or safety of clients,

30  or substantially and negatively affected the operation of an

31  aging services program.

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  1         (b)  The agency lacks financial stability sufficient to

  2  meet contractual obligations or that contractual funds have

  3  been misappropriated.

  4         (c)  The agency has committed multiple or repeated

  5  violations of legal and regulatory requirements or department

  6  standards.

  7         (d)  The agency has failed to continue the provision or

  8  expansion of services after the declaration of a state of

  9  emergency.

10         (e)  The agency has failed to adhere to the terms of

11  its contract with the department.

12         (f)  The agency has failed to implement and maintain a

13  department-approved client grievance resolution procedure.

14         (3)  Prepare and submit the state plan as required by

15  the United States Administration on Aging. to the Governor,

16  each Cabinet member, the President of the Senate, the Speaker

17  of the House of Representatives, the minority leaders of the

18  House and Senate, and chairpersons of appropriate House and

19  Senate committees a master plan for policies and programs in

20  the state related to aging. The plan must identify and assess

21  the needs of the elderly population in the areas of housing,

22  employment, education and training, medical care, long-term

23  care, preventive care, protective services, social services,

24  mental health, transportation, and long-term care insurance,

25  and other areas considered appropriate by the department.  The

26  plan must assess the needs of particular subgroups of the

27  population and evaluate the capacity of existing programs,

28  both public and private and in state and local agencies, to

29  respond effectively to identified needs.  If the plan

30  recommends the transfer of any program or service from the

31  Department of Children and Family Services to another state

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  1  department, the plan must also include recommendations that

  2  provide for an independent third-party mechanism, as currently

  3  exists in the Florida advocacy councils established in ss.

  4  402.165 and 402.166, for protecting the constitutional and

  5  human rights of recipients of departmental services. The plan

  6  must include policy goals and program strategies designed to

  7  respond efficiently to current and projected needs. The plan

  8  must also include policy goals and program strategies to

  9  promote intergenerational relationships and activities.

10  Public hearings and other appropriate processes shall be

11  utilized by the department to solicit input for the

12  development and updating of the master plan from parties

13  including, but not limited to, the following:

14         (a)  Elderly citizens and their families and

15  caregivers.

16         (b)  Local-level public and private service providers,

17  advocacy organizations, and other organizations relating to

18  the elderly.

19         (c)  Local governments.

20         (d)  All state agencies that provide services to the

21  elderly.

22         (e)  University centers on aging.

23         (f)  Area agency on aging and community care for the

24  elderly lead agencies.

25         (4)  Serve as an information clearinghouse at the state

26  level, and assist local-level information and referral

27  resources as a repository and means for dissemination of

28  information regarding all federal, state, and local resources

29  for assistance to the elderly in the areas of, but not limited

30  to, health, social welfare, long-term care, protective

31  services, consumer protection, education and training,

                                  18

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  1  housing, employment, recreation, transportation, insurance,

  2  and retirement.

  3         (5)  Recommend guidelines for the development of roles

  4  for state agencies that provide services for the aging, review

  5  plans of agencies that provide such services, and relay these

  6  plans to the Governor, each Cabinet member, the President of

  7  the Senate, the Speaker of the House of Representatives, the

  8  minority leaders of the House and Senate, and chairpersons of

  9  appropriate House and Senate committees.

10         (6)  Recommend to the Governor, each Cabinet member,

11  the President of the Senate, the Speaker of the House of

12  Representatives, the minority leaders of the House and Senate,

13  and chairpersons of appropriate House and Senate committees an

14  organizational framework for the planning, coordination,

15  implementation, and evaluation of programs related to aging,

16  with the purpose of expanding and improving programs and

17  opportunities available to the state's elderly population and

18  enhancing a continuum of long-term care.  This framework must

19  assure that:

20         (a)  Performance objectives are established.

21         (b)  Program reviews are conducted statewide.

22         (c)  Each major program related to aging is reviewed

23  every 3 years.

24         (d)  Agency budget requests reflect the results and

25  recommendations of such program reviews.

26         (e)  Program decisions lead to the distinctive roles

27  established for state agencies that provide aging services.

28         (7)  Advise the Governor, each Cabinet member, the

29  President of the Senate, the Speaker of the House of

30  Representatives, the minority leaders of the House and Senate,

31  and the chairpersons of appropriate House and Senate

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  1  committees regarding the need for and location of programs

  2  related to aging.

  3         (8)  Review and coordinate aging research plans of all

  4  state agencies to ensure the conformance of research

  5  objectives to issues and needs addressed in the master plan

  6  for policies and programs related to aging.  The research

  7  activities that must be reviewed and coordinated by the

  8  department include, but are not limited to, contracts with

  9  academic institutions, development of educational and training

10  curriculums, Alzheimer's disease and other medical research,

11  studies of long-term care and other personal assistance needs,

12  and design of adaptive or modified living environments.

13         (9)  Review budget requests for programs related to

14  aging for compliance with the master plan for policies and

15  programs related to aging before submission to the Governor

16  and the Legislature.

17         (10)  Update the master plan for policies and programs

18  related to aging every 3 years.

19         (11)  Review implementation of the master plan for

20  programs and policies related to aging and annually report to

21  the Governor, each Cabinet member, the President of the

22  Senate, the Speaker of the House of Representatives, the

23  minority leaders of the House and Senate, and the chairpersons

24  of appropriate House and Senate committees the progress

25  towards implementation of the plan.

26         (12)  Request other departments that administer

27  programs affecting the state's elderly population to amend

28  their plans, rules, policies, and research objectives as

29  necessary to conform with the master plan for policies and

30  programs related to aging.

31

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  1         (5)(13)  Hold public meetings regularly throughout the

  2  state for purposes of receiving information and maximizing the

  3  visibility of important issues.

  4         (6)(14)  Conduct policy analysis and program evaluation

  5  studies assigned by the Legislature.

  6         (7)(15)  Assist the Governor, each Cabinet member, the

  7  President of the Senate, the Speaker of the House of

  8  Representatives, the minority leaders of the House and Senate,

  9  and the chairpersons of appropriate House and Senate

10  committees in the conduct of their responsibilities in such

11  capacities as they consider appropriate.

12         (8)(16)  Call upon appropriate agencies of state

13  government for such assistance as is needed in the discharge

14  of its duties. All agencies shall cooperate in assisting the

15  department in carrying out its responsibilities as prescribed

16  by this section. However, no provision of law with respect to

17  confidentiality of information may be violated.

18         Section 8.  Section 430.041, Florida Statutes, is

19  created to read:

20         430.041  Office of Long-Term-Care Policy.--

21         (1)  There is established in the Department of Elderly

22  Affairs the Office of Long-Term-Care Policy to analyze the

23  state's long-term-care system and increase the availability

24  and the use of noninstitutional settings to provide care to

25  the elderly and to ensure coordination among the agencies

26  responsible for the long-term-care continuum. The Department

27  of Elderly Affairs shall provide administrative support and

28  service to the Office of Long-Term-Care Policy. The Office is

29  not subject to control, supervision, or direction by the

30  Department of Elderly Affairs in the performance of its

31  duties.

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  1         (2)  The Office of Long-Term-Care Policy shall:

  2         (a)  Ensure close communication and coordination among

  3  state agencies involved in developing and administering a more

  4  efficient and coordinated long-term-care service delivery

  5  system in this state;

  6         (b)  Ensure that state agencies involved in developing

  7  long-term-care policy have considered the preferences of

  8  consumers, providers, and local elected officials;

  9         (c)  Study and plan for programs to meet identified and

10  projected needs of people who need long-term care;

11         (d)  Develop a State Long-Term Care Plan and policy

12  recommendations to ensure that appropriate long-term care is

13  available in institutional and community-based settings;

14         (e)  Update the State Long-Term-Care Plan every 3

15  years;

16         (f)  Recommend state and local organizational models

17  for the planning, coordination, implementation, and evaluation

18  of programs serving people with long-term-care needs;

19         (g)  Make recommendations to agencies for budget

20  requests for long-term-care programs to ensure consistency

21  with the State Long-Term-Care Plan;

22         (h)  Develop and recommend strategies for ensuring

23  compliance with all federal requirements regarding access to

24  and choice of services and providers;

25         (i)  Identify duplication and unnecessary service

26  provision in the long-term-care system and make

27  recommendations to decrease inappropriate service provision;

28         (j)  Make recommendations to increase consistency in

29  administering the state's long-term-care programs;

30         (k)  Ensure regular periodic evaluations of all

31  programs providing long-term-care services to determine

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  1  whether the programs are cost-effective, of high quality,

  2  operating efficiently, and consistent with state policy;

  3         (l)  Monitor characteristics of people applying for and

  4  entering institutional and community-based long-term care, and

  5  changes to these characteristics over time, to determine the

  6  reasons and causes for changing levels of state expenditures

  7  and to determine services that the state's system of

  8  community-based care could provide to lessen the need for

  9  facility-based care;

10         (m)  Recommend changes to the preadmission screening

11  system of state nursing homes to ensure that individuals in

12  need of long-term care are served in settings most appropriate

13  to their needs;

14         (n)  Recommend mechanisms to encourage families and

15  other caregivers to assist people in need of long-term-care

16  services to remain as independent as possible;

17         (o)  Analyze waiting lists for long-term-care services

18  and recommend strategies to reduce the time applicants wait

19  for services; and

20         (p)  Oversee research on aging which is conducted or

21  funded by any state agency to ensure that such research is

22  coordinated and directed to fulfill the intent and purposes of

23  this act.

24         (3)  The director of the Office of Long-Term-Care

25  Policy shall be appointed by and serve at the pleasure of the

26  Governor. The director of the Office of Long-Term-Care Policy

27  shall report to the Governor.

28         (4)  The Office of Long-Term-Care Policy shall have an

29  advisory board, whose chair is to be selected by the board.

30  The board shall consist of:

31

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  1         (a)  A member of the Senate, appointed by the President

  2  of the Senate;

  3         (b)  A member of the House of Representatives,

  4  appointed by the Speaker of the House of Representatives;

  5         (c)  The Secretary of Health Care Administration;

  6         (d)  The Secretary of Elderly Affairs;

  7         (e)  The state Medicaid Director;

  8         (f)  Two representatives of providers of long-term-care

  9  services for elderly persons, appointed by the Governor; and

10         (g)  Two representatives of people using long-term-care

11  services, appointed by the Governor from groups representing

12  elderly persons.

13         (5) Members of the advisory board shall serve without

14  compensation, but are entitled to receive reimbursement for

15  travel and per diem as provided in s. 112.061.

16         (6)  The advisory board shall meet at least monthly or

17  more often at the call of its chair or at the request of a

18  majority of its members.

19         (7)  The office shall submit a report of its policy,

20  legislative, and funding recommendations to the Governor and

21  the Legislature by January 1 of each year.

22         (8)  Personnel who are solely under the direction of

23  the Office of Long-Term-Care Policy shall be provided by the

24  Agency for Health Care Administration and the Department of

25  Elderly Affairs. The office shall call upon appropriate

26  agencies of state government, including the centers on aging

27  in the State University System, for assistance needed in

28  discharging its duties. All agencies shall assist the office

29  in carrying out its responsibilities prescribed by this

30  section.

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  1         Section 9.  Section 430.7031, Florida Statutes, is

  2  created to read:

  3         430.7031  Nursing home transition program.--The

  4  department and the Agency for Health Care Administration:

  5         (1)  Shall implement a system of care designed to

  6  assist individuals residing in nursing homes to regain

  7  independence and to move to less-costly settings.

  8         (2)  Shall collaboratively work to identify long-stay

  9  nursing home residents who are able to move to community

10  placements, and to provide case management and supportive

11  services to such individuals while they are in nursing homes

12  to assist such individuals in moving to less-expensive and

13  less-restrictive settings.

14         (3)  Shall modify existing service delivery systems or

15  develop new service delivery systems to economically and

16  efficiently meet such individuals' care needs.

17         (4)  Shall offer such individuals priority placement

18  and services in all home-based and community-based care

19  programs, and shall ensure that funds are available to provide

20  services to individuals to whom services are offered.

21         (5)  May seek federal waivers necessary to administer

22  this section.

23         Section 10.  Subsection (4) of section 409.908, Florida

24  Statutes, is amended to read:

25         409.908  Reimbursement of Medicaid providers.--Subject

26  to specific appropriations, the agency shall reimburse

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

28  according to methodologies set forth in the rules of the

29  agency and in policy manuals and handbooks incorporated by

30  reference therein.  These methodologies may include fee

31  schedules, reimbursement methods based on cost reporting,

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

  2  and other mechanisms the agency considers efficient and

  3  effective for purchasing services or goods on behalf of

  4  recipients.  Payment for Medicaid compensable services made on

  5  behalf of Medicaid eligible persons is subject to the

  6  availability of moneys and any limitations or directions

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

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

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

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

11  making any other adjustments necessary to comply with the

12  availability of moneys and any limitations or directions

13  provided for in the General Appropriations Act, provided the

14  adjustment is consistent with legislative intent.

15         (4)  Subject to any limitations or directions provided

16  for in the General Appropriations Act, alternative health

17  plans, health maintenance organizations, and prepaid health

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

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

20  prospectively paid to the provider monthly for each Medicaid

21  recipient enrolled.  The amount may not exceed the average

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

23  claims experience, for recipients in the same or similar

24  category of eligibility.  The agency shall calculate

25  capitation rates on a regional basis and, beginning September

26  1, 1995, shall include age-band differentials in such

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

28  statutory teaching hospitals, specialty hospitals, and

29  community hospital education program hospitals from

30  reimbursement ceilings and the cost of special Medicaid

31  payments shall not be included in premiums paid to health

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  1  maintenance organizations or prepaid health care plans. Each

  2  rate semester, the agency shall calculate and publish a

  3  Medicaid hospital rate schedule that does not reflect either

  4  special Medicaid payments or the elimination of rate

  5  reimbursement ceilings, to be used by hospitals and Medicaid

  6  health maintenance organizations, in order to determine the

  7  Medicaid rate referred to in ss. 409.912(17) 409.912(16),

  8  409.9128(5), and 641.513(6).

  9         Section 11.  Section 430.708, Florida Statutes, is

10  amended to read:

11         430.708  Certificate of need.--To ensure that Medicaid

12  community diversion pilot projects result in a reduction in

13  the projected average monthly nursing home caseload, the

14  agency shall, in accordance with the provisions of s.

15  408.034(5) s. 408.034(4):

16         (1)  Reduce the projected nursing home bed need in each

17  certificate-of-need batching cycle in the community diversion

18  pilot project areas.

19         (2)  Reduce the conditions imposed on existing nursing

20  homes or those to be constructed, in accordance with the

21  number of projected community diversion slots.

22         (3)  Adopt rules to reduce the number of beds in

23  Medicaid-participating nursing homes eligible for Medicaid,

24  through a Medicaid-selective contracting process or some other

25  appropriate method.

26         (4)  Determine the feasibility of increasing the

27  nursing home occupancy threshold used in determining nursing

28  home bed needs under the certificate-of-need process.

29         Section 12.  Subsection (4) of section 641.386, Florida

30  Statutes, is amended to read:

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  1         641.386  Agent licensing and appointment required;

  2  exceptions.--

  3         (4)  All agents and health maintenance organizations

  4  shall comply with and be subject to the applicable provisions

  5  of ss. 641.309 and 409.912(19) 409.912(18), and all companies

  6  and entities appointing agents shall comply with s. 626.451,

  7  when marketing for any health maintenance organization

  8  licensed pursuant to this part, including those organizations

  9  under contract with the Agency for Health Care Administration

10  to provide health care services to Medicaid recipients or any

11  private entity providing health care services to Medicaid

12  recipients pursuant to a prepaid health plan contract with the

13  Agency for Health Care Administration.

14         Section 13.  This act shall take effect July 1, 2002.

15

16          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
17                         Senate Bill 1838

18

19  CS/SB 1838 specifies that the consumer directed care program
    is to be implemented upon federal approval of waivers or
20  waiver amendments; allows consumers to receive services in an
    assisted living facility; adds findings regarding the need for
21  a more comprehensive strategy to meet the needs of an
    increasingly elderly population; requires the Agency for
22  Health Care Administration, in consultation with the
    Department of Elderly Affairs, to develop a plan to reduce the
23  number of Medicaid-funded nursing home days; establishes an
    Office of Long-Term Care Policy within the Department of
24  Elderly Affairs; delineates the duties of the office;
    establishes an advisory board for the office; modifies the
25  agency's duties with respect to the certificate-of-need
    program to require that prior to issuing certificates of need
26  to construct additional nursing homes, the agency must
    determine that such need cannot be met through enhanced home
27  and community-based services; establishes statutory
    requirements for the Comprehensive Assessment and Review
28  (CARES) nursing home pre-admission screening program; revises
    the purposes and duties of the Department of Elderly Affairs
29  to reflect creation of the Office of Long-Term Care Policy;
    and requires the department and agency to implement a program
30  to assist individuals residing in nursing homes to move to
    less restrictive settings.
31

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