Senate Bill sb0596c1

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    Florida Senate - 2002                            CS for SB 596

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





    317-1717-02

  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; amending s.

10         408.034, F.S.; providing additional

11         requirements for the Agency for Health Care

12         Administration in determining the need for

13         additional nursing-facility beds; amending s.

14         409.912; requiring the Agency for Health Care

15         Administration to establish a nursing facility

16         preadmission screening program; authorizing the

17         agency to operate the program by contract;

18         requiring an annual report to the Legislature

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

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

21         of the Department of Elderly Affairs with

22         respect to developing policy, making

23         recommendations, and coordinating activities;

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

25         of the Department of Elderly Affairs with

26         respect to developing programs and policies

27         related to aging; creating s. 430.041, F.S.;

28         establishing the Office of Long-Term-Care

29         Policy within the Department of Elderly

30         Affairs; requiring the office to develop a

31         State Long-Term-Care Plan; requiring the office

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  1         to make recommendations for coordinating the

  2         services provided by state agencies; providing

  3         for the appointment of an advisory board to the

  4         Office of Long-Term-Care Policy; specifying

  5         membership in the advisory board; providing for

  6         reimbursement of per diem and travel expenses

  7         for members of the advisory board; requiring

  8         that the office submit an annual report to the

  9         Governor and Legislature; requiring the Agency

10         for Health Care Administration and the

11         Department of Elderly Affairs to provide staff

12         and support services for the Office of

13         Long-Term-Care Policy; creating s. 430.7031,

14         F.S.; requiring the Department of Elderly

15         Affairs and the Agency for Health Care

16         Administration to implement a nursing home

17         transition program; providing requirements for

18         the program; amending ss. 409.908, 430.708,

19         641.386, F.S., relating to reimbursement of

20         Medicaid providers, certificates of need, and

21         agent 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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    Florida Senate - 2002                            CS for SB 596
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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 in consultation with the

19  Department of Elderly Affairs shall submit to the Governor,

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

21  Representatives a plan to reduce the number of

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

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

24  less costly alternative settings.

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

26  Medicaid-funded bed days and recommend specific statutory and

27  operational changes necessary to achieve such reduction.

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

29  cost-effectiveness and the relative strengths and weaknesses

30  of programs that serve as alternatives to nursing homes.

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    Florida Senate - 2002                            CS for SB 596
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  1         Section 3.  Section 408.034, Florida Statutes, is

  2  amended to read:

  3         408.034  Duties and responsibilities of agency;

  4  rules.--

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

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

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

  8  review in accordance with the district plans and present and

  9  future federal and state statutes.  The agency is designated

10  as the state health planning agency for purposes of federal

11  law.

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

13  to health care facilities and health service providers, as

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

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

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

17  health care facility which fails to receive a certificate of

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

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

20  methodologies for health services and health facilities. In

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

22  minimum, consider the demographic characteristics of the

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

24  patterns, standards and trends, geographic accessibility, and

25  market economics.

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

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

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

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

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

31  shall examine nursing-home-placement patterns and demographic

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    Florida Senate - 2002                            CS for SB 596
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  1  patterns of persons entering nursing homes and the

  2  availability of and effectiveness of existing home-based and

  3  community-based service delivery systems at meeting the

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

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

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

  7  delivery systems to lessen the need for additional

  8  nursing-facility beds.

  9         (5)(4)  The agency shall establish by rule a

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

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

12  agency establishes pilot community diversion programs through

13  the Title XIX aging waiver program.

14         (6)(5)  The agency may adopt rules necessary to

15  implement ss. 408.031-408.045.

16         Section 4.  Present subsections (13) through (39) of

17  section 409.912, Florida Statutes, are redesignated as

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

19  added to that section to read:

20         409.912  Cost-effective purchasing of health care.--The

21  agency shall purchase goods and services for Medicaid

22  recipients in the most cost-effective manner consistent with

23  the delivery of quality medical care.  The agency shall

24  maximize the use of prepaid per capita and prepaid aggregate

25  fixed-sum basis services when appropriate and other

26  alternative service delivery and reimbursement methodologies,

27  including competitive bidding pursuant to s. 287.057, designed

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

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

30  minimize the exposure of recipients to the need for acute

31  inpatient, custodial, and other institutional care and the

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    Florida Senate - 2002                            CS for SB 596
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  1  inappropriate or unnecessary use of high-cost services. The

  2  agency may establish prior authorization requirements for

  3  certain populations of Medicaid beneficiaries, certain drug

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

  5  and possible dangerous drug interactions. The Pharmaceutical

  6  and Therapeutics Committee shall make recommendations to the

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

  8  agency shall inform the Pharmaceutical and Therapeutics

  9  Committee of its decisions regarding drugs subject to prior

10  authorization.

11         (13)(a)  The agency shall operate the Comprehensive

12  Assessment and Review (CARES) nursing facility preadmission

13  screening program to ensure that Medicaid payment for nursing

14  facility care is made only for individuals whose conditions

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

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

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

18  CARES program shall also ensure that individuals participating

19  in Medicaid home and community-based waiver programs meet

20  criteria for those programs, consistent with approved federal

21  waivers.

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

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

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

25  program, the agency must maintain policy control of all

26  operations of the program, including the criteria applied and

27  forms used, and perform regular monitoring to assure effective

28  and efficient operation of the program and ensure that the

29  operation of the program is consistent with state and federal

30  law and rules.

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  1         (c)  The agency shall develop performance standards for

  2  the CARES program.

  3         (d)  Prior to making payment for nursing facility

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

  5  the nursing facility preadmission screening program has

  6  determined that the individual requires nursing facility care

  7  and that the individual cannot be safely served in

  8  community-based programs. The nursing facility preadmission

  9  screening program shall refer a Medicaid recipient to a

10  community-based program if the individual could be safely

11  served at a lower cost and the recipient chooses to

12  participate in such program.

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

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

15  Policy describing the operations of the CARES program. The

16  report must describe:

17         1.  Rate of diversion to community alternative

18  programs;

19         2.  CARES program staffing needs to achieve additional

20  diversions;

21         3.  Reasons the program is unable to place individuals

22  in less restrictive settings when such individuals desired

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

24         4.  Barriers to appropriate placement, including

25  barriers due to policies or operations of other agencies or

26  state-funded programs; and

27         5.  Statutory changes necessary to ensure that

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

29  the least-restrictive environment.

30         Section 5.  Section 430.03, Florida Statutes, is

31  amended to read:

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  1         430.03  Purposes.--The purposes of the Department of

  2  Elderly Affairs are to:

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

  4  administering human services programs for the elderly and for

  5  developing policy recommendations for long-term care.

  6         (2)  Combat ageism and create public awareness and

  7  understanding of the potentials and needs of elderly persons.

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

  9  identified and projected needs and to provide opportunities

10  for personal development and achievement of persons aged 60

11  years and older.

12         (4)  Advocate quality programs and services for the

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

14  citizen's needs.

15         (5)  Coordinate interdepartmental policy development

16  and program planning for all state agencies that provide

17  services for the elderly population in order to prevent

18  duplicative efforts, to maximize utilization of resources, and

19  to ensure cooperation, communication, and departmental

20  linkages.

21         (6)  Recommend state and local level organizational

22  models for the planning, coordination, implementation, and

23  evaluation of programs serving the elderly population.

24         (5)(7)  Oversee implementation of federally funded and

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

26  population.

27         (6)(8)  Recommend legislative budget requests for

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

29         (7)(9)  Serve as a state-level information

30  clearinghouse and encourage the development of local-level

31  identifiable points of information and referral regarding all

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

  2  citizens.

  3         (8)(10)  Assist elderly persons to secure needed

  4  services in accordance with personal choice and in a manner

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

  6  eliminates dependency.

  7         (9)(11)  Promote the maintenance and improvement of the

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

  9         (10)(12)  Promote opportunities for volunteerism among

10  the elderly population.

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

12  exploitation of elderly persons unable to protect their own

13  interests.

14         (12)(14)  Eliminate and prevent inappropriate

15  institutionalization of elderly persons by promoting

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

17  intensive care.

18         (13)(15)  Aid in the support of families and other

19  caregivers of elderly persons.

20         (14)(16)  Promote intergenerational relationships.

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

22  state agency to ensure that such activities are coordinated

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

24         Section 6.  Section 430.04, Florida Statutes, is

25  amended to read:

26         430.04  Duties and responsibilities of the Department

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

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

29  programs, including programs funded under the federal Older

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

31  assigned to it by law.

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

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

  3  this state receive the best services possible.  The department

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

  5  intermediate measures against the agency, including corrective

  6  action, unannounced special monitoring, temporary assumption

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

  8  placement on probationary status, imposing a moratorium on

  9  agency action, imposing financial penalties for

10  nonperformance, or other administrative action pursuant to

11  chapter 120, if the department finds that:

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

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

14  or substantially and negatively affected the operation of an

15  aging services program.

16         (b)  The agency lacks financial stability sufficient to

17  meet contractual obligations or that contractual funds have

18  been misappropriated.

19         (c)  The agency has committed multiple or repeated

20  violations of legal and regulatory requirements or department

21  standards.

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

23  expansion of services after the declaration of a state of

24  emergency.

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

26  its contract with the department.

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

28  department-approved client grievance resolution procedure.

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

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

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

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

  2  House and Senate, and chairpersons of appropriate House and

  3  Senate committees a master plan for policies and programs in

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

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

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

  7  care, preventive care, protective services, social services,

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

  9  and other areas considered appropriate by the department.  The

10  plan must assess the needs of particular subgroups of the

11  population and evaluate the capacity of existing programs,

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

13  respond effectively to identified needs.  If the plan

14  recommends the transfer of any program or service from the

15  Department of Children and Family Services to another state

16  department, the plan must also include recommendations that

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

18  exists in the Florida advocacy councils established in ss.

19  402.165 and 402.166, for protecting the constitutional and

20  human rights of recipients of departmental services. The plan

21  must include policy goals and program strategies designed to

22  respond efficiently to current and projected needs. The plan

23  must also include policy goals and program strategies to

24  promote intergenerational relationships and activities.

25  Public hearings and other appropriate processes shall be

26  utilized by the department to solicit input for the

27  development and updating of the master plan from parties

28  including, but not limited to, the following:

29         (a)  Elderly citizens and their families and

30  caregivers.

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

  2  advocacy organizations, and other organizations relating to

  3  the elderly.

  4         (c)  Local governments.

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

  6  elderly.

  7         (e)  University centers on aging.

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

  9  elderly lead agencies.

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

11  level, and assist local-level information and referral

12  resources as a repository and means for dissemination of

13  information regarding all federal, state, and local resources

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

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

16  services, consumer protection, education and training,

17  housing, employment, recreation, transportation, insurance,

18  and retirement.

19         (5)  Recommend guidelines for the development of roles

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

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

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

23  the Senate, the Speaker of the House of Representatives, the

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

25  appropriate House and Senate committees.

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

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

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

29  and chairpersons of appropriate House and Senate committees an

30  organizational framework for the planning, coordination,

31  implementation, and evaluation of programs related to aging,

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  1  with the purpose of expanding and improving programs and

  2  opportunities available to the state's elderly population and

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

  4  assure that:

  5         (a)  Performance objectives are established.

  6         (b)  Program reviews are conducted statewide.

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

  8  every 3 years.

  9         (d)  Agency budget requests reflect the results and

10  recommendations of such program reviews.

11         (e)  Program decisions lead to the distinctive roles

12  established for state agencies that provide aging services.

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

14  President of the Senate, the Speaker of the House of

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

16  and the chairpersons of appropriate House and Senate

17  committees regarding the need for and location of programs

18  related to aging.

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

20  state agencies to ensure the conformance of research

21  objectives to issues and needs addressed in the master plan

22  for policies and programs related to aging.  The research

23  activities that must be reviewed and coordinated by the

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

25  academic institutions, development of educational and training

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

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

28  and design of adaptive or modified living environments.

29         (9)  Review budget requests for programs related to

30  aging for compliance with the master plan for policies and

31

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  1  programs related to aging before submission to the Governor

  2  and the Legislature.

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

  4  related to aging every 3 years.

  5         (11)  Review implementation of the master plan for

  6  programs and policies related to aging and annually report to

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

  8  Senate, the Speaker of the House of Representatives, the

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

10  of appropriate House and Senate committees the progress

11  towards implementation of the plan.

12         (12)  Request other departments that administer

13  programs affecting the state's elderly population to amend

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

15  necessary to conform with the master plan for policies and

16  programs related to aging.

17         (5)(13)  Hold public meetings regularly throughout the

18  state for purposes of receiving information and maximizing the

19  visibility of important issues.

20         (6)(14)  Conduct policy analysis and program evaluation

21  studies assigned by the Legislature.

22         (7)(15)  Assist the Governor, each Cabinet member, the

23  President of the Senate, the Speaker of the House of

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

25  and the chairpersons of appropriate House and Senate

26  committees in the conduct of their responsibilities in such

27  capacities as they consider appropriate.

28         (8)(16)  Call upon appropriate agencies of state

29  government for such assistance as is needed in the discharge

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

31  department in carrying out its responsibilities as prescribed

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

  2  confidentiality of information may be violated.

  3         Section 7.  Section 430.041, Florida Statutes, is

  4  created to read:

  5         430.041  Office of Long-Term-Care Policy.--

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

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

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

  9  and the use of noninstitutional settings to provide care to

10  the elderly and to ensure coordination among the agencies

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

12  of Elderly Affairs shall provide administrative support and

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

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

15  Department of Elderly Affairs in the performance of its

16  duties.

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

18         (a)  Ensure close communication and coordination among

19  state agencies involved in developing and administering a more

20  efficient and coordinated long-term-care service delivery

21  system in this state;

22         (b)  Ensure that state agencies involved in developing

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

24  consumers, providers, and local elected officials;

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

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

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

28  recommendations to ensure that appropriate long-term care is

29  available in institutional and community-based settings;

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

31  years;

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  1         (f)  Recommend state and local organizational models

  2  for the planning, coordination, implementation, and evaluation

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

  4         (g)  Make recommendations to agencies for budget

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

  6  with the State Long-Term-Care Plan;

  7         (h)  Develop and recommend strategies for ensuring

  8  compliance with all federal requirements regarding access to

  9  and choice of services and providers;

10         (i)  Identify duplication and unnecessary service

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

12  recommendations to decrease inappropriate service provision;

13         (j)  Make recommendations to increase consistency in

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

15         (k)  Ensure regular periodic evaluations of all

16  programs providing long-term-care services to determine

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

18  operating efficiently, and consistent with state policy;

19         (l)  Monitor characteristics of people applying for and

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

21  changes to these characteristics over time, to determine the

22  reasons and causes for changing levels of state expenditures

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

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

25  facility-based care;

26         (m)  Recommend changes to the preadmission screening

27  system of state nursing homes to ensure that individuals in

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

29  to their needs;

30

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  1         (n)  Recommend mechanisms to encourage families and

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

  3  services to remain as independent as possible;

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

  5  and recommend strategies to reduce the time applicants wait

  6  for services; and

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

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

  9  coordinated and directed to fulfill the intent and purposes of

10  this act.

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

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

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

14  shall report to the Governor.

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

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

17  The board shall consist of:

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

19  of the Senate;

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

21  appointed by the Speaker of the House of Representatives;

22         (c)  The Secretary of Health Care Administration;

23         (d)  The Secretary of Elderly Affairs;

24         (e)  The state Medicaid Director;

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

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

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

28  services, appointed by the Governor from groups representing

29  elderly persons.

30

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

  2  compensation, but are entitled to receive reimbursement for

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

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

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

  6  majority of its members.

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

  8  legislative, and funding recommendations to the Governor and

  9  the Legislature by January 1 of each year.

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

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

12  Agency for Health Care Administration and the Department of

13  Elderly Affairs. The office shall call upon appropriate

14  agencies of state government, including the centers on aging

15  in the State University System, for assistance needed in

16  discharging its duties. All agencies shall assist the office

17  in carrying out its responsibilities prescribed by this

18  section.

19         Section 8.  Section 430.7031, Florida Statutes, is

20  created to read:

21         430.7031  Nursing home transition program.--The

22  department and the Agency for Health Care Administration:

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

24  assist individuals residing in nursing homes to regain

25  independence and to move to less-costly settings.

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

27  nursing home residents who are able to move to community

28  placements, and to provide case management and supportive

29  services to such individuals while they are in nursing homes

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

31  less-restrictive settings.

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  1         (3)  Shall modify existing service delivery systems or

  2  develop new service delivery systems to economically and

  3  efficiently meet such individuals' care needs.

  4         (4)  Shall offer such individuals priority placement

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

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

  7  services to individuals to whom services are offered.

  8         (5)  May seek federal waivers necessary to administer

  9  this section.

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

11  Statutes, is amended to read:

12         409.908  Reimbursement of Medicaid providers.--Subject

13  to specific appropriations, the agency shall reimburse

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

15  according to methodologies set forth in the rules of the

16  agency and in policy manuals and handbooks incorporated by

17  reference therein.  These methodologies may include fee

18  schedules, reimbursement methods based on cost reporting,

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

20  and other mechanisms the agency considers efficient and

21  effective for purchasing services or goods on behalf of

22  recipients.  Payment for Medicaid compensable services made on

23  behalf of Medicaid eligible persons is subject to the

24  availability of moneys and any limitations or directions

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

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

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

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

29  making any other adjustments necessary to comply with the

30  availability of moneys and any limitations or directions

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  1  provided for in the General Appropriations Act, provided the

  2  adjustment is consistent with legislative intent.

  3         (4)  Subject to any limitations or directions provided

  4  for in the General Appropriations Act, alternative health

  5  plans, health maintenance organizations, and prepaid health

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

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

  8  prospectively paid to the provider monthly for each Medicaid

  9  recipient enrolled.  The amount may not exceed the average

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

11  claims experience, for recipients in the same or similar

12  category of eligibility.  The agency shall calculate

13  capitation rates on a regional basis and, beginning September

14  1, 1995, shall include age-band differentials in such

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

16  statutory teaching hospitals, specialty hospitals, and

17  community hospital education program hospitals from

18  reimbursement ceilings and the cost of special Medicaid

19  payments shall not be included in premiums paid to health

20  maintenance organizations or prepaid health care plans. Each

21  rate semester, the agency shall calculate and publish a

22  Medicaid hospital rate schedule that does not reflect either

23  special Medicaid payments or the elimination of rate

24  reimbursement ceilings, to be used by hospitals and Medicaid

25  health maintenance organizations, in order to determine the

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

27  409.9128(5), and 641.513(6).

28         Section 10.  Section 430.708, Florida Statutes, is

29  amended to read:

30         430.708  Certificate of need.--To ensure that Medicaid

31  community diversion pilot projects result in a reduction in

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  1  the projected average monthly nursing home caseload, the

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

  3  408.034(5) s. 408.034(4):

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

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

  6  pilot project areas.

  7         (2)  Reduce the conditions imposed on existing nursing

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

  9  number of projected community diversion slots.

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

11  Medicaid-participating nursing homes eligible for Medicaid,

12  through a Medicaid-selective contracting process or some other

13  appropriate method.

14         (4)  Determine the feasibility of increasing the

15  nursing home occupancy threshold used in determining nursing

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

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

18  Statutes, is amended to read:

19         641.386  Agent licensing and appointment required;

20  exceptions.--

21         (4)  All agents and health maintenance organizations

22  shall comply with and be subject to the applicable provisions

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

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

25  when marketing for any health maintenance organization

26  licensed pursuant to this part, including those organizations

27  under contract with the Agency for Health Care Administration

28  to provide health care services to Medicaid recipients or any

29  private entity providing health care services to Medicaid

30  recipients pursuant to a prepaid health plan contract with the

31  Agency for Health Care Administration.

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

  2

  3          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  4                         Senate Bill 596

  5

  6  The Committee Substitute for SB 596 requires AHCA to submit a
    plan to reduce nursing-home-bed days in consultation with
  7  DOEA; modifies the methodology by which AHCA determines need
    for additional community nursing facility beds; names the
  8  nursing home preadmission screening program the Comprehensive
    Assessment and Review (CARES) program; and establishes the
  9  Office of Long-Term Care Policy in the Department of Elderly
    Affairs, not subject to the control, supervision or direction
10  of the department in the performance of its duties.

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