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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  4  ______________________________________________________________

  5                                           ORIGINAL STAMP BELOW

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10  ______________________________________________________________

11  The Council for Healthy Communities offered the following:

12

13         Amendment (with title amendment) 

14         On page 7, between 17 and 18 of the bill

15

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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13

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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