Senate Bill sb0596

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    Florida Senate - 2002                                   SB 596

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





    317-667A-02

  1                      A bill to be entitled

  2         An act relating to long-term care; providing

  3         legislative findings and intent with respect to

  4         the needs of the state's elderly population;

  5         requiring the Agency for Health Care

  6         Administration and the Department of Elderly

  7         Affairs to submit a plan to the Governor and

  8         Legislature for reducing nursing-home-bed days

  9         funded under the Medicaid program; creating s.

10         14.275, F.S.; establishing the Office of

11         Long-Term-Care Policy within the Executive

12         Office of the Governor; requiring the office to

13         develop a State Long-Term-Care Plan; requiring

14         the office to make recommendations for

15         coordinating the services provided by state

16         agencies; providing for the appointment of an

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

18         Policy; specifying membership in the advisory

19         board; providing for reimbursement of per diem

20         and travel expenses for members of the advisory

21         board; requiring that the office submit an

22         annual report to the Governor and Legislature;

23         requiring the Agency for Health Care

24         Administration and the Department of Elderly

25         Affairs to provide staff and support services

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

27         amending s. 408.034, F.S.; providing additional

28         requirements for the Agency for Health Care

29         Administration in determining the need for

30         additional nursing-facility beds; amending s.

31         409.912; requiring the Agency for Health Care

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  1         Administration to establish a nursing facility

  2         preadmission screening program; authorizing the

  3         agency to operate the program by contract;

  4         requiring an annual report to the Legislature

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

  6         amending s. 430.03, F.S.; revising the purposes

  7         of the Department of Elderly Affairs with

  8         respect to developing policy, making

  9         recommendations, and coordinating activities;

10         amending s. 430.04, F.S.; revising the duties

11         of the Department of Elderly Affairs with

12         respect to developing programs and policies

13         related to aging; creating s. 430.7031, F.S.;

14         requiring the Department of Elderly Affairs and

15         the Agency for Health Care Administration to

16         implement a nursing home transition program;

17         providing requirements for the program;

18         amending ss. 409.908, 430.708, 641.386, F.S.,

19         relating to reimbursement of Medicaid

20         providers, certificates of need, and agent

21         licensing and appointment; conforming

22         cross-references to changes made by the act;

23         providing an effective date.

24

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

26

27         Section 1.  The Legislature finds that the State of

28  Florida does not have a comprehensive and effective strategy

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

30  needs of an increasingly elderly population; that multiple

31  state agencies have responsibilities for oversight, planning,

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

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

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

  4  evaluation of innovative and pilot projects and expansion of

  5  pilot projects that are successful; that the provision of

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

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

  8  long-term-care programs are effectively and efficiently

  9  operated and coordinated to comply with the policies set out

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

11  Legislature to increase the rate of diversion of elderly

12  persons in need of long-term care to noninstitutional

13  alternatives; to increase coordination, evaluation, and

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

15  successful pilot programs; and to establish a nursing facility

16  preadmission screening program.

17         Section 2.  (1)  Prior to December 1, 2002, the Agency

18  for Health Care Administration and the Department of Elderly

19  Affairs shall submit to the Governor, the President of the

20  Senate, and the Speaker of the House of Representatives a plan

21  to reduce the number of nursing-home-bed days purchased by the

22  state Medicaid program and to replace such nursing home care

23  with care provided in less costly alternative settings.

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

25  Medicaid-funded bed days and recommend specific statutory and

26  operational changes necessary to achieve such reduction.

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

28  cost-effectiveness and the relative strengths and weaknesses

29  of programs that serve as alternatives to nursing homes.

30         Section 3.  Section 14.275, Florida Statutes, is

31  created to read:

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  1         14.275  Office of Long-Term-Care Policy.--

  2         (1)  There is established in the Executive Office of

  3  the Governor the Office of Long-Term-Care Policy to analyze

  4  the state's long-term-care system and increase the

  5  availability and the use of noninstitutional settings to

  6  provide care to the elderly and to ensure coordination among

  7  the agencies responsible for the long-term-care continuum.

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

  9         (a)  Ensure close communication and coordination among

10  state agencies involved in developing and administering

11  long-term-care programs in this state;

12         (b)  Ensure that state agencies involved in developing

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

14  consumers, providers, and local elected officials;

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

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

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

18  recommendations to ensure that appropriate long-term care is

19  available in institutional and community-based settings;

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

21  years;

22         (f)  Recommend state and local organizational models

23  for the planning, coordination, implementation, and evaluation

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

25         (g)  Make recommendations to agencies for budget

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

27  with the State Long-Term-Care Plan;

28         (h)  Develop and recommend strategies for ensuring

29  compliance with all federal requirements regarding access to

30  and choice of services and providers;

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  1         (i)  Identify duplication and unnecessary service

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

  3  recommendations to decrease inappropriate service provision;

  4         (j)  Make recommendations to increase consistency in

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

  6         (k)  Ensure regular periodic evaluations of all

  7  programs providing long-term-care services to determine

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

  9  operating efficiently, and consistent with state policy;

10         (l)  Monitor characteristics of people applying for and

11  entering institutional and community-based long-term care to

12  determine the reasons and causes for changing levels of state

13  expenditures and to determine services that the state's system

14  of community-based care could provide to lessen the need for

15  facility-based care;

16         (m)  Recommend changes to the preadmission screening

17  system of state nursing homes to ensure that individuals in

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

19  to their needs;

20         (n)  Recommend mechanisms to encourage families and

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

22  services to remain as independent as possible;

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

24  and recommend strategies to reduce the time applicants wait

25  for services; and

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

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

28  coordinated and directed to fulfill the intent and purposes of

29  this act.

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

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

  3  Governor.

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

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

  6  The board shall consist of:

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

  8  of the Senate;

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

10  appointed by the Speaker of the House of Representatives;

11         (c)  The Secretary of Health Care Administration;

12         (d)  The Secretary of Elderly Affairs;

13         (e)  The state Medicaid Director;

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

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

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

17  services, appointed by the Governor from groups representing

18  elderly persons.

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

20  compensation, but are entitled to receive reimbursement for

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

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

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

24  majority of its members.

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

26  legislative, and funding recommendations to the Governor and

27  the Legislature by January 1 of each year.

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

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

30  Agency for Health Care Administration and the Department of

31  Elderly Affairs. The office shall call upon appropriate

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  1  agencies of state government, including the centers on aging

  2  in the State University System, for assistance needed in

  3  discharging its duties. All agencies shall assist the office

  4  in carrying out its responsibilities prescribed by this

  5  section.

  6         Section 4.  Section 408.034, Florida Statutes, is

  7  amended to read:

  8         408.034  Duties and responsibilities of agency;

  9  rules.--

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

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

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

13  review in accordance with the district plans and present and

14  future federal and state statutes.  The agency is designated

15  as the state health planning agency for purposes of federal

16  law.

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

18  to health care facilities and health service providers, as

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

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

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

22  health care facility which fails to receive a certificate of

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

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

25  methodologies for health services and health facilities. In

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

27  minimum, consider the demographic characteristics of the

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

29  patterns, standards and trends, geographic accessibility, and

30  market economics.

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

  2  additional skilled or intermediate nursing-facility beds in

  3  any area of the state, the agency shall determine that the

  4  need cannot be met through the provision, enhancement, or

  5  expansion of home and community-based services. In determining

  6  such need, the agency shall examine nursing-home-placement

  7  patterns and demographic patterns of persons entering nursing

  8  homes and the availability of and effectiveness of existing

  9  home-based and community-based service delivery systems at

10  meeting the long-term-care needs of the population. The agency

11  shall recommend to the Office of Long-Term-Care Policy changes

12  that could be made to existing home-based and community-based

13  delivery systems to lessen the need for additional

14  nursing-facility beds.

15         (5)(4)  The agency shall establish by rule a

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

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

18  agency establishes pilot community diversion programs through

19  the Title XIX aging waiver program.

20         (6)(5)  The agency may adopt rules necessary to

21  implement ss. 408.031-408.045.

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

23  section 409.912, Florida Statutes, are redesignated as

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

25  added to that section to read:

26         409.912  Cost-effective purchasing of health care.--The

27  agency shall purchase goods and services for Medicaid

28  recipients in the most cost-effective manner consistent with

29  the delivery of quality medical care.  The agency shall

30  maximize the use of prepaid per capita and prepaid aggregate

31  fixed-sum basis services when appropriate and other

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  1  alternative service delivery and reimbursement methodologies,

  2  including competitive bidding pursuant to s. 287.057, designed

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

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

  5  minimize the exposure of recipients to the need for acute

  6  inpatient, custodial, and other institutional care and the

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

  8  agency may establish prior authorization requirements for

  9  certain populations of Medicaid beneficiaries, certain drug

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

11  and possible dangerous drug interactions. The Pharmaceutical

12  and Therapeutics Committee shall make recommendations to the

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

14  agency shall inform the Pharmaceutical and Therapeutics

15  Committee of its decisions regarding drugs subject to prior

16  authorization.

17         (13)(a)  The agency shall operate a nursing facility

18  preadmission screening program to ensure that Medicaid payment

19  for nursing facility care is made only for individuals whose

20  conditions require such care and to ensure that long-term-care

21  services are provided in the setting most appropriate to the

22  needs of the person and in the most economical manner

23  possible. The nursing facility preadmission screening program

24  shall also ensure that individuals participating in Medicaid

25  home and community-based waiver programs meet criteria for

26  those programs, consistent with approved federal waivers.

27         (b)  The agency may operate the nursing facility

28  preadmission screening program using its own staff or may

29  contract with another state agency or other provider. If the

30  agency contracts for the operation of the program, the agency

31  must maintain policy control of all operations of the program,

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  1  including the criteria applied and forms used, and perform

  2  regular monitoring to assure effective and efficient operation

  3  of the program and ensure that the operation of the program is

  4  consistent with state and federal law and rules.

  5         (c)  The agency shall develop performance standards for

  6  the nursing facility preadmission screening program.

  7         (d)  Prior to making payment for nursing facility

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

  9  the nursing facility preadmission screening program has

10  determined that the individual requires nursing facility care

11  and that the individual cannot be safely served in

12  community-based programs. The nursing facility preadmission

13  screening program shall refer a Medicaid recipient to a

14  community-based program if the individual could be safely

15  served at a lower cost in such program.

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

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

18  Policy describing the operations of the nursing facility

19  preadmission screening program. The report must describe:

20         1.  Rate of diversion to community alternative

21  programs;

22         2.  Staffing needs to achieve additional diversions;

23         3.  Reasons the program is unable to place individuals

24  in less restrictive settings when such individuals could have

25  been served in such settings;

26         4.  Barriers to appropriate placement, including

27  barriers due to policies or operations of other agencies or

28  state-funded programs; and

29         5.  Statutory changes necessary to ensure that

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

31  the least-restrictive environment.

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  1         Section 6.  Section 430.03, Florida Statutes, is

  2  amended to read:

  3         430.03  Purposes.--The purposes of the Department of

  4  Elderly Affairs are to:

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

  6  administering human services programs for the elderly and for

  7  developing policy recommendations for long-term care.

  8         (2)  Combat ageism and create public awareness and

  9  understanding of the potentials and needs of elderly persons.

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

11  identified and projected needs and to provide opportunities

12  for personal development and achievement of persons aged 60

13  years and older.

14         (4)  Advocate quality programs and services for the

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

16  citizen's needs.

17         (5)  Coordinate interdepartmental policy development

18  and program planning for all state agencies that provide

19  services for the elderly population in order to prevent

20  duplicative efforts, to maximize utilization of resources, and

21  to ensure cooperation, communication, and departmental

22  linkages.

23         (6)  Recommend state and local level organizational

24  models for the planning, coordination, implementation, and

25  evaluation of programs serving the elderly population.

26         (5)(7)  Oversee implementation of federally funded and

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

28  population.

29         (6)(8)  Recommend legislative budget requests for

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

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  1         (7)(9)  Serve as a state-level information

  2  clearinghouse and encourage the development of local-level

  3  identifiable points of information and referral regarding all

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

  5  citizens.

  6         (8)(10)  Assist elderly persons to secure needed

  7  services in accordance with personal choice and in a manner

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

  9  eliminates dependency.

10         (9)(11)  Promote the maintenance and improvement of the

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

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

13  the elderly population.

14         (11)(13)  Promote the prevention of neglect, abuse, or

15  exploitation of elderly persons unable to protect their own

16  interests.

17         (12)(14)  Eliminate and prevent inappropriate

18  institutionalization of elderly persons by promoting

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

20  intensive care.

21         (13)(15)  Aid in the support of families and other

22  caregivers of elderly persons.

23         (14)(16)  Promote intergenerational relationships.

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

25  state agency to ensure that such activities are coordinated

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

27         Section 7.  Section 430.04, Florida Statutes, is

28  amended to read:

29         430.04  Duties and responsibilities of the Department

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

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

  2  programs, including programs funded under the federal Older

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

  4  assigned to it by law.

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

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

  7  this state receive the best services possible.  The department

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

  9  intermediate measures against the agency, including corrective

10  action, unannounced special monitoring, temporary assumption

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

12  placement on probationary status, imposing a moratorium on

13  agency action, imposing financial penalties for

14  nonperformance, or other administrative action pursuant to

15  chapter 120, if the department finds that:

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

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

18  or substantially and negatively affected the operation of an

19  aging services program.

20         (b)  The agency lacks financial stability sufficient to

21  meet contractual obligations or that contractual funds have

22  been misappropriated.

23         (c)  The agency has committed multiple or repeated

24  violations of legal and regulatory requirements or department

25  standards.

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

27  expansion of services after the declaration of a state of

28  emergency.

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

30  its contract with the department.

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

  2  department-approved client grievance resolution procedure.

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

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

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

  6  of the House of Representatives, the minority leaders of the

  7  House and Senate, and chairpersons of appropriate House and

  8  Senate committees a master plan for policies and programs in

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

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

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

12  care, preventive care, protective services, social services,

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

14  and other areas considered appropriate by the department.  The

15  plan must assess the needs of particular subgroups of the

16  population and evaluate the capacity of existing programs,

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

18  respond effectively to identified needs.  If the plan

19  recommends the transfer of any program or service from the

20  Department of Children and Family Services to another state

21  department, the plan must also include recommendations that

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

23  exists in the Florida advocacy councils established in ss.

24  402.165 and 402.166, for protecting the constitutional and

25  human rights of recipients of departmental services. The plan

26  must include policy goals and program strategies designed to

27  respond efficiently to current and projected needs. The plan

28  must also include policy goals and program strategies to

29  promote intergenerational relationships and activities.

30  Public hearings and other appropriate processes shall be

31  utilized by the department to solicit input for the

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  1  development and updating of the master plan from parties

  2  including, but not limited to, the following:

  3         (a)  Elderly citizens and their families and

  4  caregivers.

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

  6  advocacy organizations, and other organizations relating to

  7  the elderly.

  8         (c)  Local governments.

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

10  elderly.

11         (e)  University centers on aging.

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

13  elderly lead agencies.

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

15  level, and assist local-level information and referral

16  resources as a repository and means for dissemination of

17  information regarding all federal, state, and local resources

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

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

20  services, consumer protection, education and training,

21  housing, employment, recreation, transportation, insurance,

22  and retirement.

23         (5)  Recommend guidelines for the development of roles

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

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

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

27  the Senate, the Speaker of the House of Representatives, the

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

29  appropriate House and Senate committees.

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

31  the President of the Senate, the Speaker of the House of

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

  2  and chairpersons of appropriate House and Senate committees an

  3  organizational framework for the planning, coordination,

  4  implementation, and evaluation of programs related to aging,

  5  with the purpose of expanding and improving programs and

  6  opportunities available to the state's elderly population and

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

  8  assure that:

  9         (a)  Performance objectives are established.

10         (b)  Program reviews are conducted statewide.

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

12  every 3 years.

13         (d)  Agency budget requests reflect the results and

14  recommendations of such program reviews.

15         (e)  Program decisions lead to the distinctive roles

16  established for state agencies that provide aging services.

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

18  President of the Senate, the Speaker of the House of

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

20  and the chairpersons of appropriate House and Senate

21  committees regarding the need for and location of programs

22  related to aging.

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

24  state agencies to ensure the conformance of research

25  objectives to issues and needs addressed in the master plan

26  for policies and programs related to aging.  The research

27  activities that must be reviewed and coordinated by the

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

29  academic institutions, development of educational and training

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

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

  2  and design of adaptive or modified living environments.

  3         (9)  Review budget requests for programs related to

  4  aging for compliance with the master plan for policies and

  5  programs related to aging before submission to the Governor

  6  and the Legislature.

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

  8  related to aging every 3 years.

  9         (11)  Review implementation of the master plan for

10  programs and policies related to aging and annually report to

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

12  Senate, the Speaker of the House of Representatives, the

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

14  of appropriate House and Senate committees the progress

15  towards implementation of the plan.

16         (12)  Request other departments that administer

17  programs affecting the state's elderly population to amend

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

19  necessary to conform with the master plan for policies and

20  programs related to aging.

21         (5)(13)  Hold public meetings regularly throughout the

22  state for purposes of receiving information and maximizing the

23  visibility of important issues.

24         (6)(14)  Conduct policy analysis and program evaluation

25  studies assigned by the Legislature.

26         (7)(15)  Assist the Governor, each Cabinet member, the

27  President of the Senate, the Speaker of the House of

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

29  and the chairpersons of appropriate House and Senate

30  committees in the conduct of their responsibilities in such

31  capacities as they consider appropriate.

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  1         (8)(16)  Call upon appropriate agencies of state

  2  government for such assistance as is needed in the discharge

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

  4  department in carrying out its responsibilities as prescribed

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

  6  confidentiality of information may be violated.

  7         Section 8.  Section 430.7031, Florida Statutes, is

  8  created to read:

  9         430.7031  Nursing home transition program.--The

10  department and the Agency for Health Care Administration:

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

12  assist individuals residing in nursing homes to regain

13  independence and to move to less-costly settings.

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

15  nursing home residents who are able to move to community

16  placements, and to provide case management and supportive

17  services to such individuals while they are in nursing homes

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

19  less-restrictive settings.

20         (3)  Shall modify existing service delivery systems or

21  develop new service delivery systems to economically and

22  efficiently meet such individuals' care needs.

23         (4)  Shall offer such individuals priority placement

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

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

26  services to individuals to whom services are offered.

27         (5)  May seek federal waivers necessary to administer

28  this section.

29         Section 9.  Subsection (4) of section 409.908, Florida

30  Statutes, is amended to read:

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  1         409.908  Reimbursement of Medicaid providers.--Subject

  2  to specific appropriations, the agency shall reimburse

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

  4  according to methodologies set forth in the rules of the

  5  agency and in policy manuals and handbooks incorporated by

  6  reference therein.  These methodologies may include fee

  7  schedules, reimbursement methods based on cost reporting,

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

  9  and other mechanisms the agency considers efficient and

10  effective for purchasing services or goods on behalf of

11  recipients.  Payment for Medicaid compensable services made on

12  behalf of Medicaid eligible persons is subject to the

13  availability of moneys and any limitations or directions

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

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

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

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

18  making any other adjustments necessary to comply with the

19  availability of moneys and any limitations or directions

20  provided for in the General Appropriations Act, provided the

21  adjustment is consistent with legislative intent.

22         (4)  Subject to any limitations or directions provided

23  for in the General Appropriations Act, alternative health

24  plans, health maintenance organizations, and prepaid health

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

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

27  prospectively paid to the provider monthly for each Medicaid

28  recipient enrolled.  The amount may not exceed the average

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

30  claims experience, for recipients in the same or similar

31  category of eligibility.  The agency shall calculate

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  1  capitation rates on a regional basis and, beginning September

  2  1, 1995, shall include age-band differentials in such

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

  4  statutory teaching hospitals, specialty hospitals, and

  5  community hospital education program hospitals from

  6  reimbursement ceilings and the cost of special Medicaid

  7  payments shall not be included in premiums paid to health

  8  maintenance organizations or prepaid health care plans. Each

  9  rate semester, the agency shall calculate and publish a

10  Medicaid hospital rate schedule that does not reflect either

11  special Medicaid payments or the elimination of rate

12  reimbursement ceilings, to be used by hospitals and Medicaid

13  health maintenance organizations, in order to determine the

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

15  409.9128(5), and 641.513(6).

16         Section 10.  Section 430.708, Florida Statutes, is

17  amended to read:

18         430.708  Certificate of need.--To ensure that Medicaid

19  community diversion pilot projects result in a reduction in

20  the projected average monthly nursing home caseload, the

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

22  408.034(5) s. 408.034(4):

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

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

25  pilot project areas.

26         (2)  Reduce the conditions imposed on existing nursing

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

28  number of projected community diversion slots.

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

30  Medicaid-participating nursing homes eligible for Medicaid,

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  1  through a Medicaid-selective contracting process or some other

  2  appropriate method.

  3         (4)  Determine the feasibility of increasing the

  4  nursing home occupancy threshold used in determining nursing

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

  6         Section 11.  Subsection (4) of section 641.386, Florida

  7  Statutes, is amended to read:

  8         641.386  Agent licensing and appointment required;

  9  exceptions.--

10         (4)  All agents and health maintenance organizations

11  shall comply with and be subject to the applicable provisions

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

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

14  when marketing for any health maintenance organization

15  licensed pursuant to this part, including those organizations

16  under contract with the Agency for Health Care Administration

17  to provide health care services to Medicaid recipients or any

18  private entity providing health care services to Medicaid

19  recipients pursuant to a prepaid health plan contract with the

20  Agency for Health Care Administration.

21         Section 12.  This act shall take effect July 1, 2002.

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  2                          SENATE SUMMARY

  3    Revises the duties of the Agency for Health Care
      Administration and the Department of Elderly Affairs with
  4    respect to the development of policies and programs for
      the elderly. Establishes the Office of Long-Term-Care
  5    Policy within the Executive Office of the Governor.
      Requires that the office develop a State Long-Term-Care
  6    Plan and make recommendations for coordinating the
      services provided by state agencies. Provides for an
  7    advisory board to the Office of Long-Term-Care Policy.
      Requires the Office of Long-Term-Care Policy to submit an
  8    annual report to the Governor and Legislature. Requires
      the Agency for Health Care Administration to establish a
  9    nursing facility preadmission screening program. Requires
      that the Department of Elderly Affairs and the Agency for
10    Health Care Administration implement a nursing home
      transition program. (See bill for details.)
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