CODING: Words stricken are deletions; words underlined are additions.
                                                   HOUSE AMENDMENT
                                                   Bill No. HB 703
    Amendment No. 0001 (for drafter's use only)
                            CHAMBER ACTION
              Senate                               House
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  5                                           ORIGINAL STAMP BELOW
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11  The Council for Healthy Communities offered the following:
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13         Amendment (with title amendment) 
14         On page 7, between 17 and 18 of the bill
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16  insert:
17         Section 2, Paragraph (f) of section 409.912(3) is
18  amended to read:
19         409.912  Cost-effective purchasing of health care.--The
20  agency shall purchase goods and services for Medicaid
21  recipients in the most cost-effective manner consistent with
22  the delivery of quality medical care.  The agency shall
23  maximize the use of prepaid per capita and prepaid aggregate
24  fixed-sum basis services when appropriate and other
25  alternative service delivery and reimbursement methodologies,
26  including competitive bidding pursuant to s. 287.057, designed
27  to facilitate the cost-effective purchase of a case-managed
28  continuum of care. The agency shall also require providers to
29  minimize the exposure of recipients to the need for acute
30  inpatient, custodial, and other institutional care and the
31  inappropriate or unnecessary use of high-cost services. The
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                                                   HOUSE AMENDMENT
                                                   Bill No. HB 703
    Amendment No. 0001 (for drafter's use only)
  1  agency may establish prior authorization requirements for
  2  certain populations of Medicaid beneficiaries, certain drug
  3  classes, or particular drugs to prevent fraud, abuse, overuse,
  4  and possible dangerous drug interactions. The Pharmaceutical
  5  and Therapeutics Committee shall make recommendations to the
  6  agency on drugs for which prior authorization is required. The
  7  agency shall inform the Pharmaceutical and Therapeutics
  8  Committee of its decisions regarding drugs subject to prior
  9  authorization.
10         (1)  The agency may enter into agreements with
11  appropriate agents of other state agencies or of any agency of
12  the Federal Government and accept such duties in respect to
13  social welfare or public aid as may be necessary to implement
14  the provisions of Title XIX of the Social Security Act and ss.
15  409.901-409.920.
16         (2)  The agency may contract with health maintenance
17  organizations certified pursuant to part I of chapter 641 for
18  the provision of services to recipients.
19         (3)  The agency may contract with:
20         (a)  An entity that provides no prepaid health care
21  services other than Medicaid services under contract with the
22  agency and which is owned and operated by a county, county
23  health department, or county-owned and operated hospital to
24  provide health care services on a prepaid or fixed-sum basis
25  to recipients, which entity may provide such prepaid services
26  either directly or through arrangements with other providers.
27  Such prepaid health care services entities must be licensed
28  under parts I and III by January 1, 1998, and until then are
29  exempt from the provisions of part I of chapter 641. An entity
30  recognized under this paragraph which demonstrates to the
31  satisfaction of the Department of Insurance that it is backed
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                                                   HOUSE AMENDMENT
                                                   Bill No. HB 703
    Amendment No. 0001 (for drafter's use only)
  1  by the full faith and credit of the county in which it is
  2  located may be exempted from s. 641.225.
  3         (b)  An entity that is providing comprehensive
  4  behavioral health care services to certain Medicaid recipients
  5  through a capitated, prepaid arrangement pursuant to the
  6  federal waiver provided for by s. 409.905(5). Such an entity
  7  must be licensed under chapter 624, chapter 636, or chapter
  8  641 and must possess the clinical systems and operational
  9  competence to manage risk and provide comprehensive behavioral
10  health care to Medicaid recipients. As used in this paragraph,
11  the term "comprehensive behavioral health care services" means
12  covered mental health and substance abuse treatment services
13  that are available to Medicaid recipients. The secretary of
14  the Department of Children and Family Services shall approve
15  provisions of procurements related to children in the
16  department's care or custody prior to enrolling such children
17  in a prepaid behavioral health plan. Any contract awarded
18  under this paragraph must be competitively procured. In
19  developing the behavioral health care prepaid plan procurement
20  document, the agency shall ensure that the procurement
21  document requires the contractor to develop and implement a
22  plan to ensure compliance with s. 394.4574 related to services
23  provided to residents of licensed assisted living facilities
24  that hold a limited mental health license. The agency must
25  ensure that Medicaid recipients have available the choice of
26  at least two managed care plans for their behavioral health
27  care services. The agency may reimburse for
28  substance-abuse-treatment services on a fee-for-service basis
29  until the agency finds that adequate funds are available for
30  capitated, prepaid arrangements.
31         1.  By January 1, 2001, the agency shall modify the
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                                                   HOUSE AMENDMENT
                                                   Bill No. HB 703
    Amendment No. 0001 (for drafter's use only)
  1  contracts with the entities providing comprehensive inpatient
  2  and outpatient mental health care services to Medicaid
  3  recipients in Hillsborough, Highlands, Hardee, Manatee, and
  4  Polk Counties, to include substance-abuse-treatment services.
  5         2.  By December 31, 2001, the agency shall contract
  6  with entities providing comprehensive behavioral health care
  7  services to Medicaid recipients through capitated, prepaid
  8  arrangements in Charlotte, Collier, DeSoto, Escambia, Glades,
  9  Hendry, Lee, Okaloosa, Pasco, Pinellas, Santa Rosa, Sarasota,
10  and Walton Counties. The agency may contract with entities
11  providing comprehensive behavioral health care services to
12  Medicaid recipients through capitated, prepaid arrangements in
13  Alachua County. The agency may determine if Sarasota County
14  shall be included as a separate catchment area or included in
15  any other agency geographic area.
16         3.  Children residing in a Department of Juvenile
17  Justice residential program approved as a Medicaid behavioral
18  health overlay services provider shall not be included in a
19  behavioral health care prepaid health plan pursuant to this
20  paragraph.
21         4.  In converting to a prepaid system of delivery, the
22  agency shall in its procurement document require an entity
23  providing comprehensive behavioral health care services to
24  prevent the displacement of indigent care patients by
25  enrollees in the Medicaid prepaid health plan providing
26  behavioral health care services from facilities receiving
27  state funding to provide indigent behavioral health care, to
28  facilities licensed under chapter 395 which do not receive
29  state funding for indigent behavioral health care, or
30  reimburse the unsubsidized facility for the cost of behavioral
31  health care provided to the displaced indigent care patient.
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                                                   HOUSE AMENDMENT
                                                   Bill No. HB 703
    Amendment No. 0001 (for drafter's use only)
  1         5.  Traditional community mental health providers under
  2  contract with the Department of Children and Family Services
  3  pursuant to part IV of chapter 394 and inpatient mental health
  4  providers licensed pursuant to chapter 395 must be offered an
  5  opportunity to accept or decline a contract to participate in
  6  any provider network for prepaid behavioral health services.
  7         (c)  A federally qualified health center or an entity
  8  owned by one or more federally qualified health centers or an
  9  entity owned by other migrant and community health centers
10  receiving non-Medicaid financial support from the Federal
11  Government to provide health care services on a prepaid or
12  fixed-sum basis to recipients.  Such prepaid health care
13  services entity must be licensed under parts I and III of
14  chapter 641, but shall be prohibited from serving Medicaid
15  recipients on a prepaid basis, until such licensure has been
16  obtained.  However, such an entity is exempt from s. 641.225
17  if the entity meets the requirements specified in subsections
18  (14) and (15).
19         (d)  No more than four provider service networks for
20  demonstration projects to test Medicaid direct contracting.
21  The demonstration projects may be reimbursed on a
22  fee-for-service or prepaid basis.  A provider service network
23  which is reimbursed by the agency on a prepaid basis shall be
24  exempt from parts I and III of chapter 641, but must meet
25  appropriate financial reserve, quality assurance, and patient
26  rights requirements as established by the agency.  The agency
27  shall award contracts on a competitive bid basis and shall
28  select bidders based upon price and quality of care. Medicaid
29  recipients assigned to a demonstration project shall be chosen
30  equally from those who would otherwise have been assigned to
31  prepaid plans and MediPass.  The agency is authorized to seek
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                                                   HOUSE AMENDMENT
                                                   Bill No. HB 703
    Amendment No. 0001 (for drafter's use only)
  1  federal Medicaid waivers as necessary to implement the
  2  provisions of this section.  A demonstration project awarded
  3  pursuant to this paragraph shall be for 4 years from the date
  4  of implementation.
  5         (e)  An entity that provides comprehensive behavioral
  6  health care services to certain Medicaid recipients through an
  7  administrative services organization agreement. Such an entity
  8  must possess the clinical systems and operational competence
  9  to provide comprehensive health care to Medicaid recipients.
10  As used in this paragraph, the term "comprehensive behavioral
11  health care services" means covered mental health and
12  substance abuse treatment services that are available to
13  Medicaid recipients. Any contract awarded under this paragraph
14  must be competitively procured. The agency must ensure that
15  Medicaid recipients have available the choice of at least two
16  managed care plans for their behavioral health care services.
17         (f)  An entity that provides in-home physician services
18  to test the cost effectiveness of enhanced home-based medical
19  care to Medicaid recipients with degenerative neurological
20  diseases and other diseases or disabling conditions associated
21  with high costs to Medicaid. The program shall be designed to
22  serve very disabled persons and to reduce Medicaid reimbursed
23  costs for inpatient, outpatient, and emergency department
24  services. The agency shall contract with vendors on a
25  risk-sharing basis.in Pasco County or Pinellas County that
26  provides in-home physician services to Medicaid recipients
27  with degenerative neurological diseases in order to test the
28  cost-effectiveness of enhanced home-based medical care. The
29  entity providing the services shall be reimbursed on a
30  fee-for-service basis at a rate not less than comparable
31  Medicare reimbursement rates. The agency may apply for waivers
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                                                   HOUSE AMENDMENT
                                                   Bill No. HB 703
    Amendment No. 0001 (for drafter's use only)
  1  of federal regulations necessary to implement such program.
  2  This paragraph shall be repealed on July 1, 2002.
  3         (g)  Children's provider networks that provide care
  4  coordination and care management for Medicaid-eligible
  5  pediatric patients, primary care, authorization of specialty
  6  care, and other urgent and emergency care through organized
  7  providers designed to service Medicaid eligibles under age 18.
  8  The networks shall provide after-hour operations, including
  9  evening and weekend hours, to promote, when appropriate, the
10  use of the children's networks rather than hospital emergency
11  departments.
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14  ================ T I T L E   A M E N D M E N T ===============
15  And the title is amended as follows:
16         On page 1, line 25 after the semicolon
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18  and insert:  amending s. 409.912; authorizing the agency to
19  contract with vendors on a risk-sharing basis for in-home
20  physician services;
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