Senate Bill sb0390e1

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    CS for SB 390                                  First Engrossed



  1                      A bill to be entitled

  2         An act relating to health care; amending s.

  3         400.23, F.S.; delaying the effective date of

  4         certain requirements concerning hours of direct

  5         care per resident for nursing home facilities;

  6         amending s. 409.904, F.S.; revising

  7         requirements for certain optional payments

  8         under the Medicaid program; amending s.

  9         409.906, F.S.; deleting provisions authorizing

10         payment for adult dental services; revising

11         requirements for hearing and visual services to

12         limit such services to persons younger than 21

13         years of age; amending s. 409.908, F.S.,

14         relating to reimbursement of Medicaid

15         providers; conforming a cross-reference;

16         amending s. 409.9081, F.S.; providing a

17         copayment under the Medicaid program for

18         certain nonemergency hospital visits; amending

19         s. 409.912, F.S.; authorizing the Agency for

20         Health Care Administration to establish certain

21         protocols for categories of drugs; removing

22         certain requirements for prior authorization

23         for nursing home residents and

24         institutionalized adults; prohibiting

25         value-added rebates to a pharmaceutical

26         manufacturer; deleting provisions authorizing

27         certain benefits in conjunction with

28         supplemental rebates; amending s. 409.9122,

29         F.S.; revising the percentage of Medicaid

30         recipients required to be enrolled in managed

31         care; amending s. 409.915, F.S.; increasing the


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    CS for SB 390                                  First Engrossed



 1         requirements for county contributions to

 2         Medicaid; amending s. 409.815, F.S., relating

 3         to benefits coverage; specifying a maximum

 4         annual benefit for children's dental services;

 5         revising requirements for the Agency for Health

 6         Care Administration in distributing moneys

 7         under the regular disproportionate share

 8         program for the 2003-2004 fiscal year;

 9         providing legislative findings; providing a

10         contingency with respect to specified

11         provisions of the act taking effect; providing

12         an effective date.

13  

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

15  

16         Section 1.  Paragraph (a) of subsection (3) of section

17  400.23, Florida Statutes, is amended to read:

18         400.23  Rules; evaluation and deficiencies; licensure

19  status.--

20         (3)(a)  The agency shall adopt rules providing for the

21  minimum staffing requirements for nursing homes. These

22  requirements shall include, for each nursing home facility, a

23  minimum certified nursing assistant staffing of 2.3 hours of

24  direct care per resident per day beginning January 1, 2002,

25  increasing to 2.6 hours of direct care per resident per day

26  beginning January 1, 2003, and increasing to 2.9 hours of

27  direct care per resident per day beginning July January 1,

28  2004. Beginning January 1, 2002, no facility shall staff below

29  one certified nursing assistant per 20 residents, and a

30  minimum licensed nursing staffing of 1.0 hour of direct

31  resident care per resident per day but never below one


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    CS for SB 390                                  First Engrossed



 1  licensed nurse per 40 residents. Nursing assistants employed

 2  under s. 400.211(2) may be included in computing the staffing

 3  ratio for certified nursing assistants only if they provide

 4  nursing assistance services to residents on a full-time basis.

 5  Each nursing home must document compliance with staffing

 6  standards as required under this paragraph and post daily the

 7  names of staff on duty for the benefit of facility residents

 8  and the public. The agency shall recognize the use of licensed

 9  nurses for compliance with minimum staffing requirements for

10  certified nursing assistants, provided that the facility

11  otherwise meets the minimum staffing requirements for licensed

12  nurses and that the licensed nurses so recognized are

13  performing the duties of a certified nursing assistant. Unless

14  otherwise approved by the agency, licensed nurses counted

15  towards the minimum staffing requirements for certified

16  nursing assistants must exclusively perform the duties of a

17  certified nursing assistant for the entire shift and shall not

18  also be counted towards the minimum staffing requirements for

19  licensed nurses. If the agency approved a facility's request

20  to use a licensed nurse to perform both licensed nursing and

21  certified nursing assistant duties, the facility must allocate

22  the amount of staff time specifically spent on certified

23  nursing assistant duties for the purpose of documenting

24  compliance with minimum staffing requirements for certified

25  and licensed nursing staff. In no event may the hours of a

26  licensed nurse with dual job responsibilities be counted

27  twice.

28         Section 2.  Subsection (2) of section 409.904, Florida

29  Statutes, is amended to read:

30         409.904  Optional payments for eligible persons.--The

31  agency may make payments for medical assistance and related


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    CS for SB 390                                  First Engrossed



 1  services on behalf of the following persons who are determined

 2  to be eligible subject to the income, assets, and categorical

 3  eligibility tests set forth in federal and state law.  Payment

 4  on behalf of these Medicaid eligible persons is subject to the

 5  availability of moneys and any limitations established by the

 6  General Appropriations Act or chapter 216.

 7         (2)  A caretaker relative or parent, A pregnant woman,

 8  a child under age 19 who would otherwise qualify for Florida

 9  Kidcare Medicaid, or a child up to age 21 who would otherwise

10  qualify under s. 409.903(1), a person age 65 or over, or a

11  blind or disabled person, who would otherwise be eligible for

12  Florida Medicaid, except that the income or assets of such

13  family or person exceed established limitations. For a family

14  or person in one of these coverage groups, medical expenses

15  are deductible from income in accordance with federal

16  requirements in order to make a determination of eligibility.

17  Expenses used to meet spend-down liability are not

18  reimbursable by Medicaid. Effective May 1, 2003, when

19  determining the eligibility of a pregnant woman or, a child,

20  or an aged, blind, or disabled individual, $270 shall be

21  deducted from the countable income of the filing unit. When

22  determining the eligibility of the parent or caretaker

23  relative as defined by Title XIX of the Social Security Act,

24  the additional income disregard of $270 does not apply. A

25  family or person eligible under the coverage known as the

26  "medically needy," is eligible to receive the same services as

27  other Medicaid recipients, with the exception of services in

28  skilled nursing facilities and intermediate care facilities

29  for the developmentally disabled.

30         Section 3.  Section 409.906, Florida Statutes, is

31  amended to read:


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    CS for SB 390                                  First Engrossed



 1         409.906  Optional Medicaid services.--Subject to

 2  specific appropriations, the agency may make payments for

 3  services which are optional to the state under Title XIX of

 4  the Social Security Act and are furnished by Medicaid

 5  providers to recipients who are determined to be eligible on

 6  the dates on which the services were provided.  Any optional

 7  service that is provided shall be provided only when medically

 8  necessary and in accordance with state and federal law.

 9  Optional services rendered by providers in mobile units to

10  Medicaid recipients may be restricted or prohibited by the

11  agency. Nothing in this section shall be construed to prevent

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

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

14  making any other adjustments necessary to comply with the

15  availability of moneys and any limitations or directions

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

17  If necessary to safeguard the state's systems of providing

18  services to elderly and disabled persons and subject to the

19  notice and review provisions of s. 216.177, the Governor may

20  direct the Agency for Health Care Administration to amend the

21  Medicaid state plan to delete the optional Medicaid service

22  known as "Intermediate Care Facilities for the Developmentally

23  Disabled."  Optional services may include:

24         (1)  ADULT DENTAL SERVICES.--The agency may pay for

25  medically necessary, emergency dental procedures to alleviate

26  pain or infection. Emergency dental care shall be limited to

27  emergency oral examinations, necessary radiographs,

28  extractions, and incision and drainage of abscess, for a

29  recipient who is age 21 or older. However, Medicaid will not

30  provide reimbursement for dental services provided in a mobile

31  dental unit, except for a mobile dental unit:


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    CS for SB 390                                  First Engrossed



 1         (a)  Owned by, operated by, or having a contractual

 2  agreement with the Department of Health and complying with

 3  Medicaid's county health department clinic services program

 4  specifications as a county health department clinic services

 5  provider.

 6         (b)  Owned by, operated by, or having a contractual

 7  arrangement with a federally qualified health center and

 8  complying with Medicaid's federally qualified health center

 9  specifications as a federally qualified health center

10  provider.

11         (c)  Rendering dental services to Medicaid recipients,

12  21 years of age and older, at nursing facilities.

13         (d)  Owned by, operated by, or having a contractual

14  agreement with a state-approved dental educational

15  institution.

16         (1)(2)  ADULT HEALTH SCREENING SERVICES.--The agency

17  may pay for an annual routine physical examination, conducted

18  by or under the direction of a licensed physician, for a

19  recipient age 21 or older, without regard to medical

20  necessity, in order to detect and prevent disease, disability,

21  or other health condition or its progression.

22         (2)(3)  AMBULATORY SURGICAL CENTER SERVICES.--The

23  agency may pay for services provided to a recipient in an

24  ambulatory surgical center licensed under part I of chapter

25  395, by or under the direction of a licensed physician or

26  dentist.

27         (3)(4)  BIRTH CENTER SERVICES.--The agency may pay for

28  examinations and delivery, recovery, and newborn assessment,

29  and related services, provided in a licensed birth center

30  staffed with licensed physicians, certified nurse midwives,

31  and midwives licensed in accordance with chapter 467, to a


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    CS for SB 390                                  First Engrossed



 1  recipient expected to experience a low-risk pregnancy and

 2  delivery.

 3         (4)(5)  CASE MANAGEMENT SERVICES.--The agency may pay

 4  for primary care case management services rendered to a

 5  recipient pursuant to a federally approved waiver, and

 6  targeted case management services for specific groups of

 7  targeted recipients, for which funding has been provided and

 8  which are rendered pursuant to federal guidelines. The agency

 9  is authorized to limit reimbursement for targeted case

10  management services in order to comply with any limitations or

11  directions provided for in the General Appropriations Act.

12  Notwithstanding s. 216.292, the Department of Children and

13  Family Services may transfer general funds to the Agency for

14  Health Care Administration to fund state match requirements

15  exceeding the amount specified in the General Appropriations

16  Act for targeted case management services.

17         (5)(6)  CHILDREN'S DENTAL SERVICES.--The agency may pay

18  for diagnostic, preventive, or corrective procedures,

19  including orthodontia in severe cases, provided to a recipient

20  under age 21, by or under the supervision of a licensed

21  dentist.  Services provided under this program include

22  treatment of the teeth and associated structures of the oral

23  cavity, as well as treatment of disease, injury, or impairment

24  that may affect the oral or general health of the individual.

25  However, Medicaid will not provide reimbursement for dental

26  services provided in a mobile dental unit, except for a mobile

27  dental unit:

28         (a)  Owned by, operated by, or having a contractual

29  agreement with the Department of Health and complying with

30  Medicaid's county health department clinic services program

31  


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    CS for SB 390                                  First Engrossed



 1  specifications as a county health department clinic services

 2  provider.

 3         (b)  Owned by, operated by, or having a contractual

 4  arrangement with a federally qualified health center and

 5  complying with Medicaid's federally qualified health center

 6  specifications as a federally qualified health center

 7  provider.

 8         (c)  Rendering dental services to Medicaid recipients,

 9  21 years of age and older, at nursing facilities.

10         (d)  Owned by, operated by, or having a contractual

11  agreement with a state-approved dental educational

12  institution.

13         (6)(7)  CHIROPRACTIC SERVICES.--The agency may pay for

14  manual manipulation of the spine and initial services,

15  screening, and X rays provided to a recipient by a licensed

16  chiropractic physician.

17         (7)(8)  COMMUNITY MENTAL HEALTH SERVICES.--

18         (a)  The agency may pay for rehabilitative services

19  provided to a recipient by a mental health or substance abuse

20  provider under contract with the agency or the Department of

21  Children and Family Services to provide such services.  Those

22  services which are psychiatric in nature shall be rendered or

23  recommended by a psychiatrist, and those services which are

24  medical in nature shall be rendered or recommended by a

25  physician or psychiatrist. The agency must develop a provider

26  enrollment process for community mental health providers which

27  bases provider enrollment on an assessment of service need.

28  The provider enrollment process shall be designed to control

29  costs, prevent fraud and abuse, consider provider expertise

30  and capacity, and assess provider success in managing

31  utilization of care and measuring treatment outcomes.


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    CS for SB 390                                  First Engrossed



 1  Providers will be selected through a competitive procurement

 2  or selective contracting process. In addition to other

 3  community mental health providers, the agency shall consider

 4  for enrollment mental health programs licensed under chapter

 5  395 and group practices licensed under chapter 458, chapter

 6  459, chapter 490, or chapter 491. The agency is also

 7  authorized to continue operation of its behavioral health

 8  utilization management program and may develop new services if

 9  these actions are necessary to ensure savings from the

10  implementation of the utilization management system. The

11  agency shall coordinate the implementation of this enrollment

12  process with the Department of Children and Family Services

13  and the Department of Juvenile Justice. The agency is

14  authorized to utilize diagnostic criteria in setting

15  reimbursement rates, to preauthorize certain high-cost or

16  highly utilized services, to limit or eliminate coverage for

17  certain services, or to make any other adjustments necessary

18  to comply with any limitations or directions provided for in

19  the General Appropriations Act.

20         (b)  The agency is authorized to implement

21  reimbursement and use management reforms in order to comply

22  with any limitations or directions in the General

23  Appropriations Act, which may include, but are not limited to:

24  prior authorization of treatment and service plans; prior

25  authorization of services; enhanced use review programs for

26  highly used services; and limits on services for those

27  determined to be abusing their benefit coverages.

28         (8)(9)  DIALYSIS FACILITY SERVICES.--Subject to

29  specific appropriations being provided for this purpose, the

30  agency may pay a dialysis facility that is approved as a

31  dialysis facility in accordance with Title XVIII of the Social


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    CS for SB 390                                  First Engrossed



 1  Security Act, for dialysis services that are provided to a

 2  Medicaid recipient under the direction of a physician licensed

 3  to practice medicine or osteopathic medicine in this state,

 4  including dialysis services provided in the recipient's home

 5  by a hospital-based or freestanding dialysis facility.

 6         (9)(10)  DURABLE MEDICAL EQUIPMENT.--The agency may

 7  authorize and pay for certain durable medical equipment and

 8  supplies provided to a Medicaid recipient as medically

 9  necessary.

10         (10)(11)  HEALTHY START SERVICES.--The agency may pay

11  for a continuum of risk-appropriate medical and psychosocial

12  services for the Healthy Start program in accordance with a

13  federal waiver. The agency may not implement the federal

14  waiver unless the waiver permits the state to limit enrollment

15  or the amount, duration, and scope of services to ensure that

16  expenditures will not exceed funds appropriated by the

17  Legislature or available from local sources. If the Health

18  Care Financing Administration does not approve a federal

19  waiver for Healthy Start services, the agency, in consultation

20  with the Department of Health and the Florida Association of

21  Healthy Start Coalitions, is authorized to establish a

22  Medicaid certified-match program for Healthy Start services.

23  Participation in the Healthy Start certified-match program

24  shall be voluntary, and reimbursement shall be limited to the

25  federal Medicaid share to Medicaid-enrolled Healthy Start

26  coalitions for services provided to Medicaid recipients. The

27  agency shall take no action to implement a certified-match

28  program without ensuring that the amendment and review

29  requirements of ss. 216.177 and 216.181 have been met.

30         (11)(12)  CHILDREN'S HEARING SERVICES.--The agency may

31  pay for hearing and related services, including hearing


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    CS for SB 390                                  First Engrossed



 1  evaluations, hearing aid devices, dispensing of the hearing

 2  aid, and related repairs, if provided to a recipient younger

 3  than 21 years of age by a licensed hearing aid specialist,

 4  otolaryngologist, otologist, audiologist, or physician.

 5         (12)(13)  HOME AND COMMUNITY-BASED SERVICES.--The

 6  agency may pay for home-based or community-based services that

 7  are rendered to a recipient in accordance with a federally

 8  approved waiver program. The agency may limit or eliminate

 9  coverage for certain Project AIDS Care Waiver services,

10  preauthorize high-cost or highly utilized services, or make

11  any other adjustments necessary to comply with any limitations

12  or directions provided for in the General Appropriations Act.

13         (13)(14)  HOSPICE CARE SERVICES.--The agency may pay

14  for all reasonable and necessary services for the palliation

15  or management of a recipient's terminal illness, if the

16  services are provided by a hospice that is licensed under part

17  VI of chapter 400 and meets Medicare certification

18  requirements.

19         (14)(15)  INTERMEDIATE CARE FACILITY FOR THE

20  DEVELOPMENTALLY DISABLED SERVICES.--The agency may pay for

21  health-related care and services provided on a 24-hour-a-day

22  basis by a facility licensed and certified as a Medicaid

23  Intermediate Care Facility for the Developmentally Disabled,

24  for a recipient who needs such care because of a developmental

25  disability.

26         (15)(16)  INTERMEDIATE CARE SERVICES.--The agency may

27  pay for 24-hour-a-day intermediate care nursing and

28  rehabilitation services rendered to a recipient in a nursing

29  facility licensed under part II of chapter 400, if the

30  services are ordered by and provided under the direction of a

31  physician.


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    CS for SB 390                                  First Engrossed



 1         (16)(17)  OPTOMETRIC SERVICES.--The agency may pay for

 2  services provided to a recipient, including examination,

 3  diagnosis, treatment, and management, related to ocular

 4  pathology, if the services are provided by a licensed

 5  optometrist or physician.

 6         (17)(18)  PHYSICIAN ASSISTANT SERVICES.--The agency may

 7  pay for all services provided to a recipient by a physician

 8  assistant licensed under s. 458.347 or s. 459.022.

 9  Reimbursement for such services must be not less than 80

10  percent of the reimbursement that would be paid to a physician

11  who provided the same services.

12         (18)(19)  PODIATRIC SERVICES.--The agency may pay for

13  services, including diagnosis and medical, surgical,

14  palliative, and mechanical treatment, related to ailments of

15  the human foot and lower leg, if provided to a recipient by a

16  podiatric physician licensed under state law.

17         (19)(20)  PRESCRIBED DRUG SERVICES.--The agency may pay

18  for medications that are prescribed for a recipient by a

19  physician or other licensed practitioner of the healing arts

20  authorized to prescribe medications and that are dispensed to

21  the recipient by a licensed pharmacist or physician in

22  accordance with applicable state and federal law.

23         (20)(21)  REGISTERED NURSE FIRST ASSISTANT

24  SERVICES.--The agency may pay for all services provided to a

25  recipient by a registered nurse first assistant as described

26  in s. 464.027.  Reimbursement for such services may not be

27  less than 80 percent of the reimbursement that would be paid

28  to a physician providing the same services.

29         (21)(22)  STATE HOSPITAL SERVICES.--The agency may pay

30  for all-inclusive psychiatric inpatient hospital care provided

31  to a recipient age 65 or older in a state mental hospital.


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    CS for SB 390                                  First Engrossed



 1         (22)(23)  CHILDREN'S VISUAL SERVICES.--The agency may

 2  pay for visual examinations, eyeglasses, and eyeglass repairs

 3  for a recipient younger than 21 years of age, if they are

 4  prescribed by a licensed physician specializing in diseases of

 5  the eye or by a licensed optometrist.

 6         (23)(24)  CHILD-WELFARE-TARGETED CASE MANAGEMENT.--The

 7  Agency for Health Care Administration, in consultation with

 8  the Department of Children and Family Services, may establish

 9  a targeted case-management project in those counties

10  identified by the Department of Children and Family Services

11  and for all counties with a community-based child welfare

12  project, as authorized under s. 409.1671, which have been

13  specifically approved by the department. Results of targeted

14  case management projects shall be reported to the Social

15  Services Estimating Conference established under s. 216.136.

16  The covered group of individuals who are eligible to receive

17  targeted case management include children who are eligible for

18  Medicaid; who are between the ages of birth through 21; and

19  who are under protective supervision or postplacement

20  supervision, under foster-care supervision, or in shelter care

21  or foster care. The number of individuals who are eligible to

22  receive targeted case management shall be limited to the

23  number for whom the Department of Children and Family Services

24  has available matching funds to cover the costs. The general

25  revenue funds required to match the funds for services

26  provided by the community-based child welfare projects are

27  limited to funds available for services described under s.

28  409.1671. The Department of Children and Family Services may

29  transfer the general revenue matching funds as billed by the

30  Agency for Health Care Administration.

31  


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    CS for SB 390                                  First Engrossed



 1         (24)(25)  ASSISTIVE-CARE SERVICES.--The agency may pay

 2  for assistive-care services provided to recipients with

 3  functional or cognitive impairments residing in assisted

 4  living facilities, adult family-care homes, or residential

 5  treatment facilities. These services may include health

 6  support, assistance with the activities of daily living and

 7  the instrumental acts of daily living, assistance with

 8  medication administration, and arrangements for health care.

 9         Section 4.  Subsection (20) of section 409.908, Florida

10  Statutes, is amended to read:

11         409.908  Reimbursement of Medicaid providers.--Subject

12  to specific appropriations, the agency shall reimburse

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

14  according to methodologies set forth in the rules of the

15  agency and in policy manuals and handbooks incorporated by

16  reference therein.  These methodologies may include fee

17  schedules, reimbursement methods based on cost reporting,

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

19  and other mechanisms the agency considers efficient and

20  effective for purchasing services or goods on behalf of

21  recipients. If a provider is reimbursed based on cost

22  reporting and submits a cost report late and that cost report

23  would have been used to set a lower reimbursement rate for a

24  rate semester, then the provider's rate for that semester

25  shall be retroactively calculated using the new cost report,

26  and full payment at the recalculated rate shall be affected

27  retroactively. Medicare-granted extensions for filing cost

28  reports, if applicable, shall also apply to Medicaid cost

29  reports. Payment for Medicaid compensable services made on

30  behalf of Medicaid eligible persons is subject to the

31  availability of moneys and any limitations or directions


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    CS for SB 390                                  First Engrossed



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

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

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

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

 5  making any other adjustments necessary to comply with the

 6  availability of moneys and any limitations or directions

 7  provided for in the General Appropriations Act, provided the

 8  adjustment is consistent with legislative intent.

 9         (20)  A renal dialysis facility that provides dialysis

10  services under s. 409.906(8) s. 409.906(9) must be reimbursed

11  the lesser of the amount billed by the provider, the

12  provider's usual and customary charge, or the maximum

13  allowable fee established by the agency, whichever amount is

14  less.

15         Section 5.  Subsection (1) of section 409.9081, Florida

16  Statutes, is amended to read:

17         409.9081  Copayments.--

18         (1)  The agency shall require, subject to federal

19  regulations and limitations, each Medicaid recipient to pay at

20  the time of service a nominal copayment for the following

21  Medicaid services:

22         (a)  Hospital outpatient services:  up to $3 for each

23  hospital outpatient visit.

24         (b)  Physician services: up to $2 copayment for each

25  visit with a physician licensed under chapter 458, chapter

26  459, chapter 460, chapter 461, or chapter 463.

27         (c)  Hospital emergency department visits for

28  nonemergency care: $15 for each emergency department visit.

29         Section 6.  Section 409.912, Florida Statutes, is

30  amended to read:

31  


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    CS for SB 390                                  First Engrossed



 1         409.912  Cost-effective purchasing of health care.--The

 2  agency shall purchase goods and services for Medicaid

 3  recipients in the most cost-effective manner consistent with

 4  the delivery of quality medical care.  The agency shall

 5  maximize the use of prepaid per capita and prepaid aggregate

 6  fixed-sum basis services when appropriate and other

 7  alternative service delivery and reimbursement methodologies,

 8  including competitive bidding pursuant to s. 287.057, designed

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

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

11  minimize the exposure of recipients to the need for acute

12  inpatient, custodial, and other institutional care and the

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

14  agency may establish prior authorization requirements for

15  certain populations of Medicaid beneficiaries, certain drug

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

17  and possible dangerous drug interactions. The agency may also

18  establish step-therapy protocols for the categories of drugs

19  representing Cox II and proton pump inhibitor drugs. The

20  Pharmaceutical and Therapeutics Committee shall make

21  recommendations to the agency on drugs for which prior

22  authorization is required. The agency shall inform the

23  Pharmaceutical and Therapeutics Committee of its decisions

24  regarding drugs subject to prior authorization.

25         (1)  The agency may enter into agreements with

26  appropriate agents of other state agencies or of any agency of

27  the Federal Government and accept such duties in respect to

28  social welfare or public aid as may be necessary to implement

29  the provisions of Title XIX of the Social Security Act and ss.

30  409.901-409.920.

31  


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    CS for SB 390                                  First Engrossed



 1         (2)  The agency may contract with health maintenance

 2  organizations certified pursuant to part I of chapter 641 for

 3  the provision of services to recipients.

 4         (3)  The agency may contract with:

 5         (a)  An entity that provides no prepaid health care

 6  services other than Medicaid services under contract with the

 7  agency and which is owned and operated by a county, county

 8  health department, or county-owned and operated hospital to

 9  provide health care services on a prepaid or fixed-sum basis

10  to recipients, which entity may provide such prepaid services

11  either directly or through arrangements with other providers.

12  Such prepaid health care services entities must be licensed

13  under parts I and III by January 1, 1998, and until then are

14  exempt from the provisions of part I of chapter 641. An entity

15  recognized under this paragraph which demonstrates to the

16  satisfaction of the Department of Insurance that it is backed

17  by the full faith and credit of the county in which it is

18  located may be exempted from s. 641.225.

19         (b)  An entity that is providing comprehensive

20  behavioral health care services to certain Medicaid recipients

21  through a capitated, prepaid arrangement pursuant to the

22  federal waiver provided for by s. 409.905(5). Such an entity

23  must be licensed under chapter 624, chapter 636, or chapter

24  641 and must possess the clinical systems and operational

25  competence to manage risk and provide comprehensive behavioral

26  health care to Medicaid recipients. As used in this paragraph,

27  the term "comprehensive behavioral health care services" means

28  covered mental health and substance abuse treatment services

29  that are available to Medicaid recipients. The secretary of

30  the Department of Children and Family Services shall approve

31  provisions of procurements related to children in the


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    CS for SB 390                                  First Engrossed



 1  department's care or custody prior to enrolling such children

 2  in a prepaid behavioral health plan. Any contract awarded

 3  under this paragraph must be competitively procured. In

 4  developing the behavioral health care prepaid plan procurement

 5  document, the agency shall ensure that the procurement

 6  document requires the contractor to develop and implement a

 7  plan to ensure compliance with s. 394.4574 related to services

 8  provided to residents of licensed assisted living facilities

 9  that hold a limited mental health license. The agency must

10  ensure that Medicaid recipients have available the choice of

11  at least two managed care plans for their behavioral health

12  care services. To ensure unimpaired access to behavioral

13  health care services by Medicaid recipients, all contracts

14  issued pursuant to this paragraph shall require 80 percent of

15  the capitation paid to the managed care plan, including health

16  maintenance organizations, to be expended for the provision of

17  behavioral health care services. In the event the managed care

18  plan expends less than 80 percent of the capitation paid

19  pursuant to this paragraph for the provision of behavioral

20  health care services, the difference shall be returned to the

21  agency. The agency shall provide the managed care plan with a

22  certification letter indicating the amount of capitation paid

23  during each calendar year for the provision of behavioral

24  health care services pursuant to this section. The agency may

25  reimburse for substance-abuse-treatment services on a

26  fee-for-service basis until the agency finds that adequate

27  funds are available for capitated, prepaid arrangements.

28         1.  By January 1, 2001, the agency shall modify the

29  contracts with the entities providing comprehensive inpatient

30  and outpatient mental health care services to Medicaid

31  


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    CS for SB 390                                  First Engrossed



 1  recipients in Hillsborough, Highlands, Hardee, Manatee, and

 2  Polk Counties, to include substance-abuse-treatment services.

 3         2.  By December 31, 2001, the agency shall contract

 4  with entities providing comprehensive behavioral health care

 5  services to Medicaid recipients through capitated, prepaid

 6  arrangements in Charlotte, Collier, DeSoto, Escambia, Glades,

 7  Hendry, Lee, Okaloosa, Pasco, Pinellas, Santa Rosa, Sarasota,

 8  and Walton Counties. The agency may contract with entities

 9  providing comprehensive behavioral health care services to

10  Medicaid recipients through capitated, prepaid arrangements in

11  Alachua County. The agency may determine if Sarasota County

12  shall be included as a separate catchment area or included in

13  any other agency geographic area.

14         3.  Children residing in a Department of Juvenile

15  Justice residential program approved as a Medicaid behavioral

16  health overlay services provider shall not be included in a

17  behavioral health care prepaid health plan pursuant to this

18  paragraph.

19         4.  In converting to a prepaid system of delivery, the

20  agency shall in its procurement document require an entity

21  providing comprehensive behavioral health care services to

22  prevent the displacement of indigent care patients by

23  enrollees in the Medicaid prepaid health plan providing

24  behavioral health care services from facilities receiving

25  state funding to provide indigent behavioral health care, to

26  facilities licensed under chapter 395 which do not receive

27  state funding for indigent behavioral health care, or

28  reimburse the unsubsidized facility for the cost of behavioral

29  health care provided to the displaced indigent care patient.

30         5.  Traditional community mental health providers under

31  contract with the Department of Children and Family Services


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    CS for SB 390                                  First Engrossed



 1  pursuant to part IV of chapter 394 and inpatient mental health

 2  providers licensed pursuant to chapter 395 must be offered an

 3  opportunity to accept or decline a contract to participate in

 4  any provider network for prepaid behavioral health services.

 5         (c)  A federally qualified health center or an entity

 6  owned by one or more federally qualified health centers or an

 7  entity owned by other migrant and community health centers

 8  receiving non-Medicaid financial support from the Federal

 9  Government to provide health care services on a prepaid or

10  fixed-sum basis to recipients.  Such prepaid health care

11  services entity must be licensed under parts I and III of

12  chapter 641, but shall be prohibited from serving Medicaid

13  recipients on a prepaid basis, until such licensure has been

14  obtained.  However, such an entity is exempt from s. 641.225

15  if the entity meets the requirements specified in subsections

16  (14) and (15).

17         (d)  No more than four provider service networks for

18  demonstration projects to test Medicaid direct contracting.

19  The demonstration projects may be reimbursed on a

20  fee-for-service or prepaid basis.  A provider service network

21  which is reimbursed by the agency on a prepaid basis shall be

22  exempt from parts I and III of chapter 641, but must meet

23  appropriate financial reserve, quality assurance, and patient

24  rights requirements as established by the agency.  The agency

25  shall award contracts on a competitive bid basis and shall

26  select bidders based upon price and quality of care. Medicaid

27  recipients assigned to a demonstration project shall be chosen

28  equally from those who would otherwise have been assigned to

29  prepaid plans and MediPass.  The agency is authorized to seek

30  federal Medicaid waivers as necessary to implement the

31  provisions of this section.  A demonstration project awarded


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    CS for SB 390                                  First Engrossed



 1  pursuant to this paragraph shall be for 4 years from the date

 2  of implementation.

 3         (e)  An entity that provides comprehensive behavioral

 4  health care services to certain Medicaid recipients through an

 5  administrative services organization agreement. Such an entity

 6  must possess the clinical systems and operational competence

 7  to provide comprehensive health care to Medicaid recipients.

 8  As used in this paragraph, the term "comprehensive behavioral

 9  health care services" means covered mental health and

10  substance abuse treatment services that are available to

11  Medicaid recipients. Any contract awarded under this paragraph

12  must be competitively procured. The agency must ensure that

13  Medicaid recipients have available the choice of at least two

14  managed care plans for their behavioral health care services.

15         (f)  An entity that provides in-home physician services

16  to test the cost-effectiveness of enhanced home-based medical

17  care to Medicaid recipients with degenerative neurological

18  diseases and other diseases or disabling conditions associated

19  with high costs to Medicaid. The program shall be designed to

20  serve very disabled persons and to reduce Medicaid reimbursed

21  costs for inpatient, outpatient, and emergency department

22  services. The agency shall contract with vendors on a

23  risk-sharing basis.

24         (g)  Children's provider networks that provide care

25  coordination and care management for Medicaid-eligible

26  pediatric patients, primary care, authorization of specialty

27  care, and other urgent and emergency care through organized

28  providers designed to service Medicaid eligibles under age 18

29  and pediatric emergency departments' diversion programs. The

30  networks shall provide after-hour operations, including

31  evening and weekend hours, to promote, when appropriate, the


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    CS for SB 390                                  First Engrossed



 1  use of the children's networks rather than hospital emergency

 2  departments.

 3         (h)  An entity authorized in s. 430.205 to contract

 4  with the agency and the Department of Elderly Affairs to

 5  provide health care and social services on a prepaid or

 6  fixed-sum basis to elderly recipients. Such prepaid health

 7  care services entities are exempt from the provisions of part

 8  I of chapter 641 for the first 3 years of operation. An entity

 9  recognized under this paragraph that demonstrates to the

10  satisfaction of the Department of Insurance that it is backed

11  by the full faith and credit of one or more counties in which

12  it operates may be exempted from s. 641.225.

13         (i)  A Children's Medical Services network, as defined

14  in s. 391.021.

15         (4)  The agency may contract with any public or private

16  entity otherwise authorized by this section on a prepaid or

17  fixed-sum basis for the provision of health care services to

18  recipients. An entity may provide prepaid services to

19  recipients, either directly or through arrangements with other

20  entities, if each entity involved in providing services:

21         (a)  Is organized primarily for the purpose of

22  providing health care or other services of the type regularly

23  offered to Medicaid recipients;

24         (b)  Ensures that services meet the standards set by

25  the agency for quality, appropriateness, and timeliness;

26         (c)  Makes provisions satisfactory to the agency for

27  insolvency protection and ensures that neither enrolled

28  Medicaid recipients nor the agency will be liable for the

29  debts of the entity;

30         (d)  Submits to the agency, if a private entity, a

31  financial plan that the agency finds to be fiscally sound and


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    CS for SB 390                                  First Engrossed



 1  that provides for working capital in the form of cash or

 2  equivalent liquid assets excluding revenues from Medicaid

 3  premium payments equal to at least the first 3 months of

 4  operating expenses or $200,000, whichever is greater;

 5         (e)  Furnishes evidence satisfactory to the agency of

 6  adequate liability insurance coverage or an adequate plan of

 7  self-insurance to respond to claims for injuries arising out

 8  of the furnishing of health care;

 9         (f)  Provides, through contract or otherwise, for

10  periodic review of its medical facilities and services, as

11  required by the agency; and

12         (g)  Provides organizational, operational, financial,

13  and other information required by the agency.

14         (5)  The agency may contract on a prepaid or fixed-sum

15  basis with any health insurer that:

16         (a)  Pays for health care services provided to enrolled

17  Medicaid recipients in exchange for a premium payment paid by

18  the agency;

19         (b)  Assumes the underwriting risk; and

20         (c)  Is organized and licensed under applicable

21  provisions of the Florida Insurance Code and is currently in

22  good standing with the Department of Insurance.

23         (6)  The agency may contract on a prepaid or fixed-sum

24  basis with an exclusive provider organization to provide

25  health care services to Medicaid recipients provided that the

26  exclusive provider organization meets applicable managed care

27  plan requirements in this section, ss. 409.9122, 409.9123,

28  409.9128, and 627.6472, and other applicable provisions of

29  law.

30         (7)  The Agency for Health Care Administration may

31  provide cost-effective purchasing of chiropractic services on


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    CS for SB 390                                  First Engrossed



 1  a fee-for-service basis to Medicaid recipients through

 2  arrangements with a statewide chiropractic preferred provider

 3  organization incorporated in this state as a not-for-profit

 4  corporation.  The agency shall ensure that the benefit limits

 5  and prior authorization requirements in the current Medicaid

 6  program shall apply to the services provided by the

 7  chiropractic preferred provider organization.

 8         (8)  The agency shall not contract on a prepaid or

 9  fixed-sum basis for Medicaid services with an entity which

10  knows or reasonably should know that any officer, director,

11  agent, managing employee, or owner of stock or beneficial

12  interest in excess of 5 percent common or preferred stock, or

13  the entity itself, has been found guilty of, regardless of

14  adjudication, or entered a plea of nolo contendere, or guilty,

15  to:

16         (a)  Fraud;

17         (b)  Violation of federal or state antitrust statutes,

18  including those proscribing price fixing between competitors

19  and the allocation of customers among competitors;

20         (c)  Commission of a felony involving embezzlement,

21  theft, forgery, income tax evasion, bribery, falsification or

22  destruction of records, making false statements, receiving

23  stolen property, making false claims, or obstruction of

24  justice; or

25         (d)  Any crime in any jurisdiction which directly

26  relates to the provision of health services on a prepaid or

27  fixed-sum basis.

28         (9)  The agency, after notifying the Legislature, may

29  apply for waivers of applicable federal laws and regulations

30  as necessary to implement more appropriate systems of health

31  care for Medicaid recipients and reduce the cost of the


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    CS for SB 390                                  First Engrossed



 1  Medicaid program to the state and federal governments and

 2  shall implement such programs, after legislative approval,

 3  within a reasonable period of time after federal approval.

 4  These programs must be designed primarily to reduce the need

 5  for inpatient care, custodial care and other long-term or

 6  institutional care, and other high-cost services.

 7         (a)  Prior to seeking legislative approval of such a

 8  waiver as authorized by this subsection, the agency shall

 9  provide notice and an opportunity for public comment.  Notice

10  shall be provided to all persons who have made requests of the

11  agency for advance notice and shall be published in the

12  Florida Administrative Weekly not less than 28 days prior to

13  the intended action.

14         (b)  Notwithstanding s. 216.292, funds that are

15  appropriated to the Department of Elderly Affairs for the

16  Assisted Living for the Elderly Medicaid waiver and are not

17  expended shall be transferred to the agency to fund

18  Medicaid-reimbursed nursing home care.

19         (10)  The agency shall establish a postpayment

20  utilization control program designed to identify recipients

21  who may inappropriately overuse or underuse Medicaid services

22  and shall provide methods to correct such misuse.

23         (11)  The agency shall develop and provide coordinated

24  systems of care for Medicaid recipients and may contract with

25  public or private entities to develop and administer such

26  systems of care among public and private health care providers

27  in a given geographic area.

28         (12)  The agency shall operate or contract for the

29  operation of utilization management and incentive systems

30  designed to encourage cost-effective use services.

31  


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    CS for SB 390                                  First Engrossed



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

 2  Assessment and Review (CARES) nursing facility preadmission

 3  screening program to ensure that Medicaid payment for nursing

 4  facility care is made only for individuals whose conditions

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

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

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

 8  CARES program shall also ensure that individuals participating

 9  in Medicaid home and community-based waiver programs meet

10  criteria for those programs, consistent with approved federal

11  waivers.

12         (b)  The agency shall operate the CARES program through

13  an interagency agreement with the Department of Elderly

14  Affairs.

15         (c)  Prior to making payment for nursing facility

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

17  the nursing facility preadmission screening program has

18  determined that the individual requires nursing facility care

19  and that the individual cannot be safely served in

20  community-based programs. The nursing facility preadmission

21  screening program shall refer a Medicaid recipient to a

22  community-based program if the individual could be safely

23  served at a lower cost and the recipient chooses to

24  participate in such program.

25         (d)  By January 1 of each year, the agency shall submit

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

27  Policy describing the operations of the CARES program. The

28  report must describe:

29         1.  Rate of diversion to community alternative

30  programs;

31  


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    CS for SB 390                                  First Engrossed



 1         2.  CARES program staffing needs to achieve additional

 2  diversions;

 3         3.  Reasons the program is unable to place individuals

 4  in less restrictive settings when such individuals desired

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

 6         4.  Barriers to appropriate placement, including

 7  barriers due to policies or operations of other agencies or

 8  state-funded programs; and

 9         5.  Statutory changes necessary to ensure that

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

11  the least restrictive environment.

12         (14)(a)  The agency shall identify health care

13  utilization and price patterns within the Medicaid program

14  which are not cost-effective or medically appropriate and

15  assess the effectiveness of new or alternate methods of

16  providing and monitoring service, and may implement such

17  methods as it considers appropriate. Such methods may include

18  disease management initiatives, an integrated and systematic

19  approach for managing the health care needs of recipients who

20  are at risk of or diagnosed with a specific disease by using

21  best practices, prevention strategies, clinical-practice

22  improvement, clinical interventions and protocols, outcomes

23  research, information technology, and other tools and

24  resources to reduce overall costs and improve measurable

25  outcomes.

26         (b)  The responsibility of the agency under this

27  subsection shall include the development of capabilities to

28  identify actual and optimal practice patterns; patient and

29  provider educational initiatives; methods for determining

30  patient compliance with prescribed treatments; fraud, waste,

31  


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    CS for SB 390                                  First Engrossed



 1  and abuse prevention and detection programs; and beneficiary

 2  case management programs.

 3         1.  The practice pattern identification program shall

 4  evaluate practitioner prescribing patterns based on national

 5  and regional practice guidelines, comparing practitioners to

 6  their peer groups. The agency and its Drug Utilization Review

 7  Board shall consult with a panel of practicing health care

 8  professionals consisting of the following: the Speaker of the

 9  House of Representatives and the President of the Senate shall

10  each appoint three physicians licensed under chapter 458 or

11  chapter 459; and the Governor shall appoint two pharmacists

12  licensed under chapter 465 and one dentist licensed under

13  chapter 466 who is an oral surgeon. Terms of the panel members

14  shall expire at the discretion of the appointing official. The

15  panel shall begin its work by August 1, 1999, regardless of

16  the number of appointments made by that date. The advisory

17  panel shall be responsible for evaluating treatment guidelines

18  and recommending ways to incorporate their use in the practice

19  pattern identification program. Practitioners who are

20  prescribing inappropriately or inefficiently, as determined by

21  the agency, may have their prescribing of certain drugs

22  subject to prior authorization.

23         2.  The agency shall also develop educational

24  interventions designed to promote the proper use of

25  medications by providers and beneficiaries.

26         3.  The agency shall implement a pharmacy fraud, waste,

27  and abuse initiative that may include a surety bond or letter

28  of credit requirement for participating pharmacies, enhanced

29  provider auditing practices, the use of additional fraud and

30  abuse software, recipient management programs for

31  beneficiaries inappropriately using their benefits, and other


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    CS for SB 390                                  First Engrossed



 1  steps that will eliminate provider and recipient fraud, waste,

 2  and abuse. The initiative shall address enforcement efforts to

 3  reduce the number and use of counterfeit prescriptions.

 4         4.  By September 30, 2002, the agency shall contract

 5  with an entity in the state to implement a wireless handheld

 6  clinical pharmacology drug information database for

 7  practitioners. The initiative shall be designed to enhance the

 8  agency's efforts to reduce fraud, abuse, and errors in the

 9  prescription drug benefit program and to otherwise further the

10  intent of this paragraph.

11         5.  The agency may apply for any federal waivers needed

12  to implement this paragraph.

13         (15)  An entity contracting on a prepaid or fixed-sum

14  basis shall, in addition to meeting any applicable statutory

15  surplus requirements, also maintain at all times in the form

16  of cash, investments that mature in less than 180 days

17  allowable as admitted assets by the Department of Insurance,

18  and restricted funds or deposits controlled by the agency or

19  the Department of Insurance, a surplus amount equal to

20  one-and-one-half times the entity's monthly Medicaid prepaid

21  revenues. As used in this subsection, the term "surplus" means

22  the entity's total assets minus total liabilities. If an

23  entity's surplus falls below an amount equal to

24  one-and-one-half times the entity's monthly Medicaid prepaid

25  revenues, the agency shall prohibit the entity from engaging

26  in marketing and preenrollment activities, shall cease to

27  process new enrollments, and shall not renew the entity's

28  contract until the required balance is achieved.  The

29  requirements of this subsection do not apply:

30         (a)  Where a public entity agrees to fund any deficit

31  incurred by the contracting entity; or


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    CS for SB 390                                  First Engrossed



 1         (b)  Where the entity's performance and obligations are

 2  guaranteed in writing by a guaranteeing organization which:

 3         1.  Has been in operation for at least 5 years and has

 4  assets in excess of $50 million; or

 5         2.  Submits a written guarantee acceptable to the

 6  agency which is irrevocable during the term of the contracting

 7  entity's contract with the agency and, upon termination of the

 8  contract, until the agency receives proof of satisfaction of

 9  all outstanding obligations incurred under the contract.

10         (16)(a)  The agency may require an entity contracting

11  on a prepaid or fixed-sum basis to establish a restricted

12  insolvency protection account with a federally guaranteed

13  financial institution licensed to do business in this state.

14  The entity shall deposit into that account 5 percent of the

15  capitation payments made by the agency each month until a

16  maximum total of 2 percent of the total current contract

17  amount is reached. The restricted insolvency protection

18  account may be drawn upon with the authorized signatures of

19  two persons designated by the entity and two representatives

20  of the agency. If the agency finds that the entity is

21  insolvent, the agency may draw upon the account solely with

22  the two authorized signatures of representatives of the

23  agency, and the funds may be disbursed to meet financial

24  obligations incurred by the entity under the prepaid contract.

25  If the contract is terminated, expired, or not continued, the

26  account balance must be released by the agency to the entity

27  upon receipt of proof of satisfaction of all outstanding

28  obligations incurred under this contract.

29         (b)  The agency may waive the insolvency protection

30  account requirement in writing when evidence is on file with

31  the agency of adequate insolvency insurance and reinsurance


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    CS for SB 390                                  First Engrossed



 1  that will protect enrollees if the entity becomes unable to

 2  meet its obligations.

 3         (17)  An entity that contracts with the agency on a

 4  prepaid or fixed-sum basis for the provision of Medicaid

 5  services shall reimburse any hospital or physician that is

 6  outside the entity's authorized geographic service area as

 7  specified in its contract with the agency, and that provides

 8  services authorized by the entity to its members, at a rate

 9  negotiated with the hospital or physician for the provision of

10  services or according to the lesser of the following:

11         (a)  The usual and customary charges made to the

12  general public by the hospital or physician; or

13         (b)  The Florida Medicaid reimbursement rate

14  established for the hospital or physician.

15         (18)  When a merger or acquisition of a Medicaid

16  prepaid contractor has been approved by the Department of

17  Insurance pursuant to s. 628.4615, the agency shall approve

18  the assignment or transfer of the appropriate Medicaid prepaid

19  contract upon request of the surviving entity of the merger or

20  acquisition if the contractor and the other entity have been

21  in good standing with the agency for the most recent 12-month

22  period, unless the agency determines that the assignment or

23  transfer would be detrimental to the Medicaid recipients or

24  the Medicaid program.  To be in good standing, an entity must

25  not have failed accreditation or committed any material

26  violation of the requirements of s. 641.52 and must meet the

27  Medicaid contract requirements.  For purposes of this section,

28  a merger or acquisition means a change in controlling interest

29  of an entity, including an asset or stock purchase.

30         (19)  Any entity contracting with the agency pursuant

31  to this section to provide health care services to Medicaid


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    CS for SB 390                                  First Engrossed



 1  recipients is prohibited from engaging in any of the following

 2  practices or activities:

 3         (a)  Practices that are discriminatory, including, but

 4  not limited to, attempts to discourage participation on the

 5  basis of actual or perceived health status.

 6         (b)  Activities that could mislead or confuse

 7  recipients, or misrepresent the organization, its marketing

 8  representatives, or the agency. Violations of this paragraph

 9  include, but are not limited to:

10         1.  False or misleading claims that marketing

11  representatives are employees or representatives of the state

12  or county, or of anyone other than the entity or the

13  organization by whom they are reimbursed.

14         2.  False or misleading claims that the entity is

15  recommended or endorsed by any state or county agency, or by

16  any other organization which has not certified its endorsement

17  in writing to the entity.

18         3.  False or misleading claims that the state or county

19  recommends that a Medicaid recipient enroll with an entity.

20         4.  Claims that a Medicaid recipient will lose benefits

21  under the Medicaid program, or any other health or welfare

22  benefits to which the recipient is legally entitled, if the

23  recipient does not enroll with the entity.

24         (c)  Granting or offering of any monetary or other

25  valuable consideration for enrollment, except as authorized by

26  subsection (21).

27         (d)  Door-to-door solicitation of recipients who have

28  not contacted the entity or who have not invited the entity to

29  make a presentation.

30         (e)  Solicitation of Medicaid recipients by marketing

31  representatives stationed in state offices unless approved and


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    CS for SB 390                                  First Engrossed



 1  supervised by the agency or its agent and approved by the

 2  affected state agency when solicitation occurs in an office of

 3  the state agency.  The agency shall ensure that marketing

 4  representatives stationed in state offices shall market their

 5  managed care plans to Medicaid recipients only in designated

 6  areas and in such a way as to not interfere with the

 7  recipients' activities in the state office.

 8         (f)  Enrollment of Medicaid recipients.

 9         (20)  The agency may impose a fine for a violation of

10  this section or the contract with the agency by a person or

11  entity that is under contract with the agency.  With respect

12  to any nonwillful violation, such fine shall not exceed $2,500

13  per violation.  In no event shall such fine exceed an

14  aggregate amount of $10,000 for all nonwillful violations

15  arising out of the same action.  With respect to any knowing

16  and willful violation of this section or the contract with the

17  agency, the agency may impose a fine upon the entity in an

18  amount not to exceed $20,000 for each such violation.  In no

19  event shall such fine exceed an aggregate amount of $100,000

20  for all knowing and willful violations arising out of the same

21  action.

22         (21)  A health maintenance organization or a person or

23  entity exempt from chapter 641 that is under contract with the

24  agency for the provision of health care services to Medicaid

25  recipients may not use or distribute marketing materials used

26  to solicit Medicaid recipients, unless such materials have

27  been approved by the agency. The provisions of this subsection

28  do not apply to general advertising and marketing materials

29  used by a health maintenance organization to solicit both

30  non-Medicaid subscribers and Medicaid recipients.

31  


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    CS for SB 390                                  First Engrossed



 1         (22)  Upon approval by the agency, health maintenance

 2  organizations and persons or entities exempt from chapter 641

 3  that are under contract with the agency for the provision of

 4  health care services to Medicaid recipients may be permitted

 5  within the capitation rate to provide additional health

 6  benefits that the agency has found are of high quality, are

 7  practicably available, provide reasonable value to the

 8  recipient, and are provided at no additional cost to the

 9  state.

10         (23)  The agency shall utilize the statewide health

11  maintenance organization complaint hotline for the purpose of

12  investigating and resolving Medicaid and prepaid health plan

13  complaints, maintaining a record of complaints and confirmed

14  problems, and receiving disenrollment requests made by

15  recipients.

16         (24)  The agency shall require the publication of the

17  health maintenance organization's and the prepaid health

18  plan's consumer services telephone numbers and the "800"

19  telephone number of the statewide health maintenance

20  organization complaint hotline on each Medicaid identification

21  card issued by a health maintenance organization or prepaid

22  health plan contracting with the agency to serve Medicaid

23  recipients and on each subscriber handbook issued to a

24  Medicaid recipient.

25         (25)  The agency shall establish a health care quality

26  improvement system for those entities contracting with the

27  agency pursuant to this section, incorporating all the

28  standards and guidelines developed by the Medicaid Bureau of

29  the Health Care Financing Administration as a part of the

30  quality assurance reform initiative.  The system shall

31  include, but need not be limited to, the following:


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    CS for SB 390                                  First Engrossed



 1         (a)  Guidelines for internal quality assurance

 2  programs, including standards for:

 3         1.  Written quality assurance program descriptions.

 4         2.  Responsibilities of the governing body for

 5  monitoring, evaluating, and making improvements to care.

 6         3.  An active quality assurance committee.

 7         4.  Quality assurance program supervision.

 8         5.  Requiring the program to have adequate resources to

 9  effectively carry out its specified activities.

10         6.  Provider participation in the quality assurance

11  program.

12         7.  Delegation of quality assurance program activities.

13         8.  Credentialing and recredentialing.

14         9.  Enrollee rights and responsibilities.

15         10.  Availability and accessibility to services and

16  care.

17         11.  Ambulatory care facilities.

18         12.  Accessibility and availability of medical records,

19  as well as proper recordkeeping and process for record review.

20         13.  Utilization review.

21         14.  A continuity of care system.

22         15.  Quality assurance program documentation.

23         16.  Coordination of quality assurance activity with

24  other management activity.

25         17.  Delivering care to pregnant women and infants; to

26  elderly and disabled recipients, especially those who are at

27  risk of institutional placement; to persons with developmental

28  disabilities; and to adults who have chronic, high-cost

29  medical conditions.

30         (b)  Guidelines which require the entities to conduct

31  quality-of-care studies which:


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    CS for SB 390                                  First Engrossed



 1         1.  Target specific conditions and specific health

 2  service delivery issues for focused monitoring and evaluation.

 3         2.  Use clinical care standards or practice guidelines

 4  to objectively evaluate the care the entity delivers or fails

 5  to deliver for the targeted clinical conditions and health

 6  services delivery issues.

 7         3.  Use quality indicators derived from the clinical

 8  care standards or practice guidelines to screen and monitor

 9  care and services delivered.

10         (c)  Guidelines for external quality review of each

11  contractor which require: focused studies of patterns of care;

12  individual care review in specific situations; and followup

13  activities on previous pattern-of-care study findings and

14  individual-care-review findings.  In designing the external

15  quality review function and determining how it is to operate

16  as part of the state's overall quality improvement system, the

17  agency shall construct its external quality review

18  organization and entity contracts to address each of the

19  following:

20         1.  Delineating the role of the external quality review

21  organization.

22         2.  Length of the external quality review organization

23  contract with the state.

24         3.  Participation of the contracting entities in

25  designing external quality review organization review

26  activities.

27         4.  Potential variation in the type of clinical

28  conditions and health services delivery issues to be studied

29  at each plan.

30         5.  Determining the number of focused pattern-of-care

31  studies to be conducted for each plan.


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    CS for SB 390                                  First Engrossed



 1         6.  Methods for implementing focused studies.

 2         7.  Individual care review.

 3         8.  Followup activities.

 4         (26)  In order to ensure that children receive health

 5  care services for which an entity has already been

 6  compensated, an entity contracting with the agency pursuant to

 7  this section shall achieve an annual Early and Periodic

 8  Screening, Diagnosis, and Treatment (EPSDT) Service screening

 9  rate of at least 60 percent for those recipients continuously

10  enrolled for at least 8 months. The agency shall develop a

11  method by which the EPSDT screening rate shall be calculated.

12  For any entity which does not achieve the annual 60 percent

13  rate, the entity must submit a corrective action plan for the

14  agency's approval.  If the entity does not meet the standard

15  established in the corrective action plan during the specified

16  timeframe, the agency is authorized to impose appropriate

17  contract sanctions.  At least annually, the agency shall

18  publicly release the EPSDT Services screening rates of each

19  entity it has contracted with on a prepaid basis to serve

20  Medicaid recipients.

21         (27)  The agency shall perform enrollments and

22  disenrollments for Medicaid recipients who are eligible for

23  MediPass or managed care plans. Notwithstanding the

24  prohibition contained in paragraph (18)(f), managed care plans

25  may perform preenrollments of Medicaid recipients under the

26  supervision of the agency or its agents. For the purposes of

27  this section, "preenrollment" means the provision of marketing

28  and educational materials to a Medicaid recipient and

29  assistance in completing the application forms, but shall not

30  include actual enrollment into a managed care plan.  An

31  application for enrollment shall not be deemed complete until


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    CS for SB 390                                  First Engrossed



 1  the agency or its agent verifies that the recipient made an

 2  informed, voluntary choice.  The agency, in cooperation with

 3  the Department of Children and Family Services, may test new

 4  marketing initiatives to inform Medicaid recipients about

 5  their managed care options at selected sites. The agency shall

 6  report to the Legislature on the effectiveness of such

 7  initiatives. The agency may contract with a third party to

 8  perform managed care plan and MediPass enrollment and

 9  disenrollment services for Medicaid recipients and is

10  authorized to adopt rules to implement such services. The

11  agency may adjust the capitation rate only to cover the costs

12  of a third-party enrollment and disenrollment contract, and

13  for agency supervision and management of the managed care plan

14  enrollment and disenrollment contract.

15         (28)  Any lists of providers made available to Medicaid

16  recipients, MediPass enrollees, or managed care plan enrollees

17  shall be arranged alphabetically showing the provider's name

18  and specialty and, separately, by specialty in alphabetical

19  order.

20         (29)  The agency shall establish an enhanced managed

21  care quality assurance oversight function, to include at least

22  the following components:

23         (a)  At least quarterly analysis and followup,

24  including sanctions as appropriate, of managed care

25  participant utilization of services.

26         (b)  At least quarterly analysis and followup,

27  including sanctions as appropriate, of quality findings of the

28  Medicaid peer review organization and other external quality

29  assurance programs.

30  

31  


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    CS for SB 390                                  First Engrossed



 1         (c)  At least quarterly analysis and followup,

 2  including sanctions as appropriate, of the fiscal viability of

 3  managed care plans.

 4         (d)  At least quarterly analysis and followup,

 5  including sanctions as appropriate, of managed care

 6  participant satisfaction and disenrollment surveys.

 7         (e)  The agency shall conduct regular and ongoing

 8  Medicaid recipient satisfaction surveys.

 9  

10  The analyses and followup activities conducted by the agency

11  under its enhanced managed care quality assurance oversight

12  function shall not duplicate the activities of accreditation

13  reviewers for entities regulated under part III of chapter

14  641, but may include a review of the finding of such

15  reviewers.

16         (30)  Each managed care plan that is under contract

17  with the agency to provide health care services to Medicaid

18  recipients shall annually conduct a background check with the

19  Florida Department of Law Enforcement of all persons with

20  ownership interest of 5 percent or more or executive

21  management responsibility for the managed care plan and shall

22  submit to the agency information concerning any such person

23  who has been found guilty of, regardless of adjudication, or

24  has entered a plea of nolo contendere or guilty to, any of the

25  offenses listed in s. 435.03.

26         (31)  The agency shall, by rule, develop a process

27  whereby a Medicaid managed care plan enrollee who wishes to

28  enter hospice care may be disenrolled from the managed care

29  plan within 24 hours after contacting the agency regarding

30  such request. The agency rule shall include a methodology for

31  the agency to recoup managed care plan payments on a pro rata


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    CS for SB 390                                  First Engrossed



 1  basis if payment has been made for the enrollment month when

 2  disenrollment occurs.

 3         (32)  The agency and entities which contract with the

 4  agency to provide health care services to Medicaid recipients

 5  under this section or s. 409.9122 must comply with the

 6  provisions of s. 641.513 in providing emergency services and

 7  care to Medicaid recipients and MediPass recipients.

 8         (33)  All entities providing health care services to

 9  Medicaid recipients shall make available, and encourage all

10  pregnant women and mothers with infants to receive, and

11  provide documentation in the medical records to reflect, the

12  following:

13         (a)  Healthy Start prenatal or infant screening.

14         (b)  Healthy Start care coordination, when screening or

15  other factors indicate need.

16         (c)  Healthy Start enhanced services in accordance with

17  the prenatal or infant screening results.

18         (d)  Immunizations in accordance with recommendations

19  of the Advisory Committee on Immunization Practices of the

20  United States Public Health Service and the American Academy

21  of Pediatrics, as appropriate.

22         (e)  Counseling and services for family planning to all

23  women and their partners.

24         (f)  A scheduled postpartum visit for the purpose of

25  voluntary family planning, to include discussion of all

26  methods of contraception, as appropriate.

27         (g)  Referral to the Special Supplemental Nutrition

28  Program for Women, Infants, and Children (WIC).

29         (34)  Any entity that provides Medicaid prepaid health

30  plan services shall ensure the appropriate coordination of

31  health care services with an assisted living facility in cases


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    CS for SB 390                                  First Engrossed



 1  where a Medicaid recipient is both a member of the entity's

 2  prepaid health plan and a resident of the assisted living

 3  facility. If the entity is at risk for Medicaid targeted case

 4  management and behavioral health services, the entity shall

 5  inform the assisted living facility of the procedures to

 6  follow should an emergent condition arise.

 7         (35)  The agency may seek and implement federal waivers

 8  necessary to provide for cost-effective purchasing of home

 9  health services, private duty nursing services,

10  transportation, independent laboratory services, and durable

11  medical equipment and supplies through competitive bidding

12  pursuant to s. 287.057. The agency may request appropriate

13  waivers from the federal Health Care Financing Administration

14  in order to competitively bid such services. The agency may

15  exclude providers not selected through the bidding process

16  from the Medicaid provider network.

17         (36)  The Agency for Health Care Administration is

18  directed to issue a request for proposal or intent to

19  negotiate to implement on a demonstration basis an outpatient

20  specialty services pilot project in a rural and urban county

21  in the state.  As used in this subsection, the term

22  "outpatient specialty services" means clinical laboratory,

23  diagnostic imaging, and specified home medical services to

24  include durable medical equipment, prosthetics and orthotics,

25  and infusion therapy.

26         (a)  The entity that is awarded the contract to provide

27  Medicaid managed care outpatient specialty services must, at a

28  minimum, meet the following criteria:

29         1.  The entity must be licensed by the Department of

30  Insurance under part II of chapter 641.

31  


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    CS for SB 390                                  First Engrossed



 1         2.  The entity must be experienced in providing

 2  outpatient specialty services.

 3         3.  The entity must demonstrate to the satisfaction of

 4  the agency that it provides high-quality services to its

 5  patients.

 6         4.  The entity must demonstrate that it has in place a

 7  complaints and grievance process to assist Medicaid recipients

 8  enrolled in the pilot managed care program to resolve

 9  complaints and grievances.

10         (b)  The pilot managed care program shall operate for a

11  period of 3 years.  The objective of the pilot program shall

12  be to determine the cost-effectiveness and effects on

13  utilization, access, and quality of providing outpatient

14  specialty services to Medicaid recipients on a prepaid,

15  capitated basis.

16         (c)  The agency shall conduct a quality assurance

17  review of the prepaid health clinic each year that the

18  demonstration program is in effect. The prepaid health clinic

19  is responsible for all expenses incurred by the agency in

20  conducting a quality assurance review.

21         (d)  The entity that is awarded the contract to provide

22  outpatient specialty services to Medicaid recipients shall

23  report data required by the agency in a format specified by

24  the agency, for the purpose of conducting the evaluation

25  required in paragraph (e).

26         (e)  The agency shall conduct an evaluation of the

27  pilot managed care program and report its findings to the

28  Governor and the Legislature by no later than January 1, 2001.

29         (37)  The agency shall enter into agreements with

30  not-for-profit organizations based in this state for the

31  purpose of providing vision screening.


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    CS for SB 390                                  First Engrossed



 1         (38)(a)  The agency shall implement a Medicaid

 2  prescribed-drug spending-control program that includes the

 3  following components:

 4         1.  Medicaid prescribed-drug coverage for brand-name

 5  drugs for adult Medicaid recipients is limited to the

 6  dispensing of four brand-name drugs per month per recipient.

 7  Children are exempt from this restriction. Antiretroviral

 8  agents are excluded from this limitation. No requirements for

 9  prior authorization or other restrictions on medications used

10  to treat mental illnesses such as schizophrenia, severe

11  depression, or bipolar disorder may be imposed on Medicaid

12  recipients. Medications that will be available without

13  restriction for persons with mental illnesses include atypical

14  antipsychotic medications, conventional antipsychotic

15  medications, selective serotonin reuptake inhibitors, and

16  other medications used for the treatment of serious mental

17  illnesses. The agency shall also limit the amount of a

18  prescribed drug dispensed to no more than a 34-day supply. The

19  agency shall continue to provide unlimited generic drugs,

20  contraceptive drugs and items, and diabetic supplies. Although

21  a drug may be included on the preferred drug formulary, it

22  would not be exempt from the four-brand limit. The agency may

23  authorize exceptions to the brand-name-drug restriction based

24  upon the treatment needs of the patients, only when such

25  exceptions are based on prior consultation provided by the

26  agency or an agency contractor, but the agency must establish

27  procedures to ensure that:

28         a.  There will be a response to a request for prior

29  consultation by telephone or other telecommunication device

30  within 24 hours after receipt of a request for prior

31  consultation;


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    CS for SB 390                                  First Engrossed



 1         b.  A 72-hour supply of the drug prescribed will be

 2  provided in an emergency or when the agency does not provide a

 3  response within 24 hours as required by sub-subparagraph a.;

 4  and

 5         c.  Except for the exception for nursing home residents

 6  and other institutionalized adults and Except for drugs on the

 7  restricted formulary for which prior authorization may be

 8  sought by an institutional or community pharmacy, prior

 9  authorization for an exception to the brand-name-drug

10  restriction is sought by the prescriber and not by the

11  pharmacy. When prior authorization is granted for a patient in

12  an institutional setting beyond the brand-name-drug

13  restriction, such approval is authorized for 12 months and

14  monthly prior authorization is not required for that patient.

15         2.  Reimbursement to pharmacies for Medicaid prescribed

16  drugs shall be set at the average wholesale price less 13.25

17  percent.

18         3.  The agency shall develop and implement a process

19  for managing the drug therapies of Medicaid recipients who are

20  using significant numbers of prescribed drugs each month. The

21  management process may include, but is not limited to,

22  comprehensive, physician-directed medical-record reviews,

23  claims analyses, and case evaluations to determine the medical

24  necessity and appropriateness of a patient's treatment plan

25  and drug therapies. The agency may contract with a private

26  organization to provide drug-program-management services. The

27  Medicaid drug benefit management program shall include

28  initiatives to manage drug therapies for HIV/AIDS patients,

29  patients using 20 or more unique prescriptions in a 180-day

30  period, and the top 1,000 patients in annual spending.

31  


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    CS for SB 390                                  First Engrossed



 1         4.  The agency may limit the size of its pharmacy

 2  network based on need, competitive bidding, price

 3  negotiations, credentialing, or similar criteria. The agency

 4  shall give special consideration to rural areas in determining

 5  the size and location of pharmacies included in the Medicaid

 6  pharmacy network. A pharmacy credentialing process may include

 7  criteria such as a pharmacy's full-service status, location,

 8  size, patient educational programs, patient consultation,

 9  disease-management services, and other characteristics. The

10  agency may impose a moratorium on Medicaid pharmacy enrollment

11  when it is determined that it has a sufficient number of

12  Medicaid-participating providers.

13         5.  The agency shall develop and implement a program

14  that requires Medicaid practitioners who prescribe drugs to

15  use a counterfeit-proof prescription pad for Medicaid

16  prescriptions. The agency shall require the use of

17  standardized counterfeit-proof prescription pads by

18  Medicaid-participating prescribers or prescribers who write

19  prescriptions for Medicaid recipients. The agency may

20  implement the program in targeted geographic areas or

21  statewide.

22         6.  The agency may enter into arrangements that require

23  manufacturers of generic drugs prescribed to Medicaid

24  recipients to provide rebates of at least 15.1 percent of the

25  average manufacturer price for the manufacturer's generic

26  products. These arrangements shall require that if a

27  generic-drug manufacturer pays federal rebates for

28  Medicaid-reimbursed drugs at a level below 15.1 percent, the

29  manufacturer must provide a supplemental rebate to the state

30  in an amount necessary to achieve a 15.1-percent rebate level.

31  


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    CS for SB 390                                  First Engrossed



 1         7.  The agency may establish a preferred drug formulary

 2  in accordance with 42 U.S.C. s. 1396r-8, and, pursuant to the

 3  establishment of such formulary, it is authorized to negotiate

 4  supplemental rebates from manufacturers that are in addition

 5  to those required by Title XIX of the Social Security Act and

 6  at no less than 10 percent of the average manufacturer price

 7  as defined in 42 U.S.C. s. 1936 on the last day of a quarter

 8  unless the federal or supplemental rebate, or both, equals or

 9  exceeds 25 percent. There is no upper limit on the

10  supplemental rebates the agency may negotiate. The agency may

11  determine that specific products, brand-name or generic, are

12  competitive at lower rebate percentages. Agreement to pay the

13  minimum supplemental rebate percentage will guarantee a

14  manufacturer that the Medicaid Pharmaceutical and Therapeutics

15  Committee will consider a product for inclusion on the

16  preferred drug formulary. However, a pharmaceutical

17  manufacturer is not guaranteed placement on the formulary by

18  simply paying the minimum supplemental rebate. Agency

19  decisions will be made on the clinical efficacy of a drug and

20  recommendations of the Medicaid Pharmaceutical and

21  Therapeutics Committee, as well as the price of competing

22  products minus federal and state rebates. The agency is

23  authorized to contract with an outside agency or contractor to

24  conduct negotiations for supplemental rebates. For the

25  purposes of this section, the term "supplemental rebates" may

26  include, at the agency's discretion, cash rebates and other

27  program benefits that offset a Medicaid expenditure. Effective

28  July 1, 2003, value-added programs as a substitution for

29  supplemental rebates are prohibited. Such other program

30  benefits may include, but are not limited to, disease

31  management programs, drug product donation programs, drug


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    CS for SB 390                                  First Engrossed



 1  utilization control programs, prescriber and beneficiary

 2  counseling and education, fraud and abuse initiatives, and

 3  other services or administrative investments with guaranteed

 4  savings to the Medicaid program in the same year the rebate

 5  reduction is included in the General Appropriations Act. The

 6  agency is authorized to seek any federal waivers to implement

 7  this initiative.

 8         8.  The agency shall establish an advisory committee

 9  for the purposes of studying the feasibility of using a

10  restricted drug formulary for nursing home residents and other

11  institutionalized adults. The committee shall be comprised of

12  seven members appointed by the Secretary of Health Care

13  Administration. The committee members shall include two

14  physicians licensed under chapter 458 or chapter 459; three

15  pharmacists licensed under chapter 465 and appointed from a

16  list of recommendations provided by the Florida Long-Term Care

17  Pharmacy Alliance; and two pharmacists licensed under chapter

18  465.

19         9.  The Agency for Health Care Administration shall

20  expand home delivery of pharmacy products. To assist Medicaid

21  patients in securing their prescriptions and reduce program

22  costs, the agency shall expand its current mail-order-pharmacy

23  diabetes-supply program to include all generic and brand-name

24  drugs used by Medicaid patients with diabetes. Medicaid

25  recipients in the current program may obtain nondiabetes drugs

26  on a voluntary basis. This initiative is limited to the

27  geographic area covered by the current contract. The agency

28  may seek and implement any federal waivers necessary to

29  implement this subparagraph.

30         (b)  The agency shall implement this subsection to the

31  extent that funds are appropriated to administer the Medicaid


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    CS for SB 390                                  First Engrossed



 1  prescribed-drug spending-control program. The agency may

 2  contract all or any part of this program to private

 3  organizations.

 4         (c)  The agency shall submit quarterly reports to the

 5  Governor, the President of the Senate, and the Speaker of the

 6  House of Representatives which must include, but need not be

 7  limited to, the progress made in implementing this subsection

 8  and its effect on Medicaid prescribed-drug expenditures.

 9         (39)  Notwithstanding the provisions of chapter 287,

10  the agency may, at its discretion, renew a contract or

11  contracts for fiscal intermediary services one or more times

12  for such periods as the agency may decide; however, all such

13  renewals may not combine to exceed a total period longer than

14  the term of the original contract.

15         (40)  The agency shall provide for the development of a

16  demonstration project by establishment in Miami-Dade County of

17  a long-term-care facility licensed pursuant to chapter 395 to

18  improve access to health care for a predominantly minority,

19  medically underserved, and medically complex population and to

20  evaluate alternatives to nursing home care and general acute

21  care for such population.  Such project is to be located in a

22  health care condominium and colocated with licensed facilities

23  providing a continuum of care.  The establishment of this

24  project is not subject to the provisions of s. 408.036 or s.

25  408.039.  The agency shall report its findings to the

26  Governor, the President of the Senate, and the Speaker of the

27  House of Representatives by January 1, 2003.

28         Section 7.  Paragraphs (f) and (k) of subsection (2) of

29  section 409.9122, Florida Statutes, are amended to read:

30         409.9122  Mandatory Medicaid managed care enrollment;

31  programs and procedures.--


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    CS for SB 390                                  First Engrossed



 1         (2)

 2         (f)  When a Medicaid recipient does not choose a

 3  managed care plan or MediPass provider, the agency shall

 4  assign the Medicaid recipient to a managed care plan or

 5  MediPass provider. Medicaid recipients who are subject to

 6  mandatory assignment but who fail to make a choice shall be

 7  assigned to managed care plans until an enrollment of 40 45

 8  percent in MediPass and 60 55 percent in managed care plans is

 9  achieved. Once this enrollment is achieved, the assignments

10  shall be divided in order to maintain an enrollment in

11  MediPass and managed care plans which is in a 40 45 percent

12  and 60 55 percent proportion, respectively. Thereafter,

13  assignment of Medicaid recipients who fail to make a choice

14  shall be based proportionally on the preferences of recipients

15  who have made a choice in the previous period. Such

16  proportions shall be revised at least quarterly to reflect an

17  update of the preferences of Medicaid recipients. The agency

18  shall disproportionately assign Medicaid-eligible recipients

19  who are required to but have failed to make a choice of

20  managed care plan or MediPass, including children, and who are

21  to be assigned to the MediPass program to children's networks

22  as described in s. 409.912(3)(g), Children's Medical Services

23  network as defined in s. 391.021, exclusive provider

24  organizations, provider service networks, minority physician

25  networks, and pediatric emergency department diversion

26  programs authorized by this chapter or the General

27  Appropriations Act, in such manner as the agency deems

28  appropriate, until the agency has determined that the networks

29  and programs have sufficient numbers to be economically

30  operated. For purposes of this paragraph, when referring to

31  assignment, the term "managed care plans" includes health


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    CS for SB 390                                  First Engrossed



 1  maintenance organizations, exclusive provider organizations,

 2  provider service networks, minority physician networks,

 3  Children's Medical Services network, and pediatric emergency

 4  department diversion programs authorized by this chapter or

 5  the General Appropriations Act. Beginning July 1, 2002, the

 6  agency shall assign all children in families who have not made

 7  a choice of a managed care plan or MediPass in the required

 8  timeframe to a pediatric emergency room diversion program

 9  described in s. 409.912(3)(g) that, as of July 1, 2002, has

10  executed a contract with the agency, until such network or

11  program has reached an enrollment of 15,000 children. Once

12  that minimum enrollment level has been reached, the agency

13  shall assign children who have not chosen a managed care plan

14  or MediPass to the network or program in a manner that

15  maintains the minimum enrollment in the network or program at

16  not less than 15,000 children. To the extent practicable, the

17  agency shall also assign all eligible children in the same

18  family to such network or program. When making assignments,

19  the agency shall take into account the following criteria:

20         1.  A managed care plan has sufficient network capacity

21  to meet the need of members.

22         2.  The managed care plan or MediPass has previously

23  enrolled the recipient as a member, or one of the managed care

24  plan's primary care providers or MediPass providers has

25  previously provided health care to the recipient.

26         3.  The agency has knowledge that the member has

27  previously expressed a preference for a particular managed

28  care plan or MediPass provider as indicated by Medicaid

29  fee-for-service claims data, but has failed to make a choice.

30  

31  


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    CS for SB 390                                  First Engrossed



 1         4.  The managed care plan's or MediPass primary care

 2  providers are geographically accessible to the recipient's

 3  residence.

 4         (k)  When a Medicaid recipient does not choose a

 5  managed care plan or MediPass provider, the agency shall

 6  assign the Medicaid recipient to a managed care plan, except

 7  in those counties in which there are fewer than two managed

 8  care plans accepting Medicaid enrollees, in which case

 9  assignment shall be to a managed care plan or a MediPass

10  provider. Medicaid recipients in counties with fewer than two

11  managed care plans accepting Medicaid enrollees who are

12  subject to mandatory assignment but who fail to make a choice

13  shall be assigned to managed care plans until an enrollment of

14  40 45 percent in MediPass and 60 55 percent in managed care

15  plans is achieved. Once that enrollment is achieved, the

16  assignments shall be divided in order to maintain an

17  enrollment in MediPass and managed care plans which is in a 40

18  45 percent and 60 55 percent proportion, respectively. In

19  geographic areas where the agency is contracting for the

20  provision of comprehensive behavioral health services through

21  a capitated prepaid arrangement, recipients who fail to make a

22  choice shall be assigned equally to MediPass or a managed care

23  plan. For purposes of this paragraph, when referring to

24  assignment, the term "managed care plans" includes exclusive

25  provider organizations, provider service networks, Children's

26  Medical Services network, minority physician networks, and

27  pediatric emergency department diversion programs authorized

28  by this chapter or the General Appropriations Act. When making

29  assignments, the agency shall take into account the following

30  criteria:

31  


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    CS for SB 390                                  First Engrossed



 1         1.  A managed care plan has sufficient network capacity

 2  to meet the need of members.

 3         2.  The managed care plan or MediPass has previously

 4  enrolled the recipient as a member, or one of the managed care

 5  plan's primary care providers or MediPass providers has

 6  previously provided health care to the recipient.

 7         3.  The agency has knowledge that the member has

 8  previously expressed a preference for a particular managed

 9  care plan or MediPass provider as indicated by Medicaid

10  fee-for-service claims data, but has failed to make a choice.

11         4.  The managed care plan's or MediPass primary care

12  providers are geographically accessible to the recipient's

13  residence.

14         5.  The agency has authority to make mandatory

15  assignments based on quality of service and performance of

16  managed care plans.

17         Section 8.  Subsection (2) of section 409.915, Florida

18  Statutes, is amended to read:

19         409.915  County contributions to Medicaid.--Although

20  the state is responsible for the full portion of the state

21  share of the matching funds required for the Medicaid program,

22  in order to acquire a certain portion of these funds, the

23  state shall charge the counties for certain items of care and

24  service as provided in this section.

25         (2)  A county's participation must be 35 percent of the

26  total cost, or the applicable discounted cost paid by the

27  state for Medicaid recipients enrolled in health maintenance

28  organizations or prepaid health plans, of providing the items

29  listed in subsection (1), except that the payments for items

30  listed in paragraph (1)(b) may not exceed $70 $55 per month

31  per person.


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    CS for SB 390                                  First Engrossed



 1         Section 9.  Paragraph (q) of subsection (2) of section

 2  409.815, Florida Statutes, is amended to read:

 3         409.815  Health benefits coverage; limitations.--

 4         (2)  BENCHMARK BENEFITS.--In order for health benefits

 5  coverage to qualify for premium assistance payments for an

 6  eligible child under ss. 409.810-409.820, the health benefits

 7  coverage, except for coverage under Medicaid and Medikids,

 8  must include the following minimum benefits, as medically

 9  necessary.

10         (q)  Dental services.--Subject to a specific

11  appropriation for this benefit, Covered services include those

12  dental services provided to children by the Florida Medicaid

13  program under s. 409.906(5), up to a maximum benefit of $750

14  per enrollee per year.

15         Section 10.  (1)  Notwithstanding section 409.911(3),

16  Florida Statutes, for the state fiscal year 2003-2004 only,

17  the agency shall distribute moneys under the regular

18  disproportionate share program only to hospitals that meet the

19  federal minimum requirements and to public hospitals. Public

20  hospitals are defined as those hospitals identified as

21  government owned or operated in the Financial Hospital Uniform

22  Reporting System (FHURS) data available to the agency as of

23  January 1, 2002. The following methodology shall be used to

24  distribute disproportionate share dollars to hospitals that

25  meet the federal minimum requirements and to the public

26  hospitals:

27         (a)  For hospitals that meet the federal minimum

28  requirements and do not qualify as a public hospital, the

29  following formula shall be used:

30  

31  DSHP = (HMD/TMSD)*$1 million


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    CS for SB 390                                  First Engrossed



 1  

 2  DSHP = disproportionate share hospital payment.

 3  HMD = hospital Medicaid days.

 4  TSD = total state Medicaid days.

 5  

 6         (b)  The following formulas shall be used to pay

 7  disproportionate share dollars to public hospitals:

 8         1.  For state mental health hospitals:

 9  

10  DSHP = (HMD/TMDMH) * TAAMH

11  

12  The total amount available for the state mental health

13  hospitals shall be the difference between the federal cap for

14  Institutions for Mental Diseases and the amounts paid under

15  the mental health disproportionate share program.

16         2.  For non-state government owned or operated

17  hospitals with 3,200 or more Medicaid days:

18  

19  DSHP = [(.82*HCCD/TCCD) + (.18*HMD/TMD)] * TAAPH

20  TAAPH = TAA - TAAMH

21  

22         3.  For non-state government owned or operated

23  hospitals with less than 3,200 Medicaid days, a total of

24  $400,000 shall be distributed equally among these hospitals.

25  

26  Where:

27  

28  TAA = total available appropriation.

29  TAAPH = total amount available for public hospitals.

30  TAAMH = total amount available for mental health hospitals.

31  DSHP = disproportionate share hospital payments.


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    CS for SB 390                                  First Engrossed



 1  HMD = hospital Medicaid days.

 2  TMDMH = total state Medicaid days for mental health days.

 3  TMD = total state Medicaid days for public hospitals.

 4  HCCD = hospital charity care dollars.

 5  TCCD = total state charity care dollars for public non-state

 6  hospitals.

 7  

 8  In computing the above amounts for public hospitals and

 9  hospitals that qualify under the federal minimum requirements,

10  the agency shall use the 1997 audited data. In the event there

11  is no complete 1997 audited data for a hospital, the agency

12  shall use the 1994 audited data.

13         (2)  Notwithstanding section 409.9112, Florida

14  Statutes, for state fiscal year 2003-2004, only

15  disproportionate share payments to regional perinatal

16  intensive care centers shall be distributed in the same

17  proportion as the disproportionate share payments made to the

18  regional perinatal intensive care centers in the state fiscal

19  year 2001-2002.

20         (3)  Notwithstanding section 409.9117, Florida

21  Statutes, for state fiscal year 2003-2004 only,

22  disproportionate share payments to hospitals that qualify for

23  primary care disproportionate share payments shall be

24  distributed in the same proportion as the primary care

25  disproportionate share payments made to those hospitals in the

26  state fiscal year 2001-2002.

27         (4)  For state fiscal year 2003-2004 only, no

28  disproportionate share payments for specialty hospitals for

29  children shall be made to hospitals under the provisions of

30  section 409.9119, Florida Statutes.

31         (5)  This section is repealed on July 1, 2004.


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    CS for SB 390                                  First Engrossed



 1         Section 11.  The Legislature finds and declares that

 2  this act fulfills an important state interest.

 3         Section 12.  Sections 1, 2, 3, 4, 8, and 11 of this

 4  act, and the part of section 6 of this act which amends the

 5  introductory portion of section 409.912, Florida Statutes,

 6  shall not take effect if one or more bills enacted during the

 7  2003 legislative session, or an extension thereof, become law

 8  which increase receipts to the General Revenue Fund in an

 9  amount sufficient to support contingent appropriations in the

10  2003-2004 General Appropriations Act to:

11         (1)  Increase certified nursing assistant staffing to

12  2.9 hours of direct care per resident per day, effective

13  January 1, 2004;

14         (2)  Provide Medicaid coverage for adults under the

15  Medically Needy Program;

16         (3)  Provide Medicaid coverage for adult emergency

17  dental, visual, and hearing services;

18         (4)  Not implement step-therapy protocols for Cox II

19  drugs; and

20         (5)  Continue county contributions for Medicaid nursing

21  home care at the current level rather than an increased level.

22         Section 13.  Except as otherwise expressly provided in

23  this act, this act shall take effect July 1, 2003.

24  

25  

26  

27  

28  

29  

30  

31  


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