Senate Bill sb0022Aer

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  1                                 

  2         An act relating to health care; amending s.

  3         400.179, F.S.; deleting a repeal of provisions

  4         requiring payment of certain fees upon the

  5         transfer of the leasehold license for a nursing

  6         facility; amending s. 400.23, F.S.; delaying

  7         the effective date of certain requirements

  8         concerning hours of direct care per resident

  9         for nursing home facilities; amending ss.

10         400.452 and 400.6211, F.S.; revising training

11         requirements for administrators and staff of

12         assisted living facilities and adult

13         family-care home providers; requiring a

14         competency test; providing rulemaking

15         authority; amending s. 408.909, F.S., relating

16         to health flex plans; revising eligibility for

17         the plan; extending the expiration date of the

18         program; amending s. 409.815, F.S., relating to

19         benefits coverage under the Medicaid program;

20         specifying a maximum annual benefit for

21         children's dental services; amending s.

22         409.901, F.S.; defining the term "third party"

23         to include a third-party administrator or

24         pharmacy benefits manager; amending s. 409.904,

25         F.S.; revising provisions governing the payment

26         of optional medical benefits for certain

27         Medicaid-eligible persons; amending s. 409.906,

28         F.S.; revising requirements for hearing and

29         visual services to limit such services to

30         persons younger than 21 years of age; amending

31         s. 409.9065, F.S.; revising the pharmaceutical


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 1         expense assistance program for low-income

 2         elderly individuals; adding eligibility groups;

 3         providing benefits; requiring the Agency for

 4         Health Care Administration, in administering

 5         the program, to collaborate with both the

 6         Department of Elderly Affairs and the

 7         Department of Children and Family Services;

 8         requiring federal approval of benefits;

 9         amending s. 409.908, F.S., relating to

10         reimbursement of Medicaid providers; providing

11         for a fee to be paid to providers returning

12         unused medications and credited to the Medicaid

13         program; amending s. 409.9081, F.S.; providing

14         a copayment under the Medicaid program for

15         certain nonemergency hospital visits; providing

16         coinsurance of a specified amount for the

17         Medicaid cost of prescription drugs; amending

18         ss. 409.911, 409.9112, 409.9116, and 409.9117,

19         F.S.; revising the disproportionate share

20         program; deleting definitions; requiring the

21         Agency for Health Care Administration to use

22         actual audited data to determine the Medicaid

23         days and charity care to be used to calculate

24         the disproportionate share payment; revising

25         formulas for calculating payments; revising the

26         formula for calculating payments under the

27         disproportionate share program for regional

28         perinatal intensive care centers; providing for

29         estimates of the payments under the rural

30         disproportionate share and financial assistance

31         programs; providing a formula for calculating


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 1         payments under the primary care

 2         disproportionate share program; amending s.

 3         409.9119, F.S., relating to disproportionate

 4         share program for specialty hospitals for

 5         children; providing that payments are subject

 6         to appropriations; amending s. 409.912, F.S.;

 7         providing for reimbursement of provider service

 8         networks; authorizing the agency to implement a

 9         utilization management program for certain

10         services and contract for certain dental

11         services; amending s. 409.9122, F.S.; revising

12         the percentage of Medicaid recipients required

13         to be enrolled in managed care; revising

14         requirements for the enrollment process;

15         creating s. 430.83, F.S.; providing a popular

16         name; providing definitions; providing

17         legislative findings and intent; creating the

18         Sunshine for Seniors Program to assist

19         low-income seniors with obtaining prescription

20         drugs from manufacturers' pharmaceutical

21         assistance programs; providing implementation

22         and oversight duties of the Department of

23         Elderly Affairs; providing for community

24         partnerships; providing for contracts;

25         requiring annual evaluation reports on the

26         program; specifying that the program is not an

27         entitlement; amending s. 624.91, F.S., relating

28         to the Florida Healthy Kids Corporation Act;

29         providing for funding to be subject to specific

30         appropriations; providing contract

31         requirements; revising membership of the board


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 1         of directors of the corporation; repealing s.

 2         57 of chapter 98-288, Laws of Florida;

 3         abrogating a repeal of the Florida Kidcare Act;

 4         authorizing the Agency for Health Care

 5         Administration to make additional payments to

 6         certain hospitals; specifying the amounts and

 7         providing for adjustments; providing for

 8         construction of the act in pari materia with

 9         laws enacted during the Regular Session of the

10         Legislature; providing an effective date.

11  

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

13  

14         Section 1.  Effective upon this act becoming a law,

15  paragraph (d) of subsection (5) of section 400.179, Florida

16  Statutes, is amended to read:

17         400.179  Sale or transfer of ownership of a nursing

18  facility; liability for Medicaid underpayments and

19  overpayments.--

20         (5)  Because any transfer of a nursing facility may

21  expose the fact that Medicaid may have underpaid or overpaid

22  the transferor, and because in most instances, any such

23  underpayment or overpayment can only be determined following a

24  formal field audit, the liabilities for any such underpayments

25  or overpayments shall be as follows:

26         (d)  Where the transfer involves a facility that has

27  been leased by the transferor:

28         1.  The transferee shall, as a condition to being

29  issued a license by the agency, acquire, maintain, and provide

30  proof to the agency of a bond with a term of 30 months,

31  renewable annually, in an amount not less than the total of 3


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 1  months Medicaid payments to the facility computed on the basis

 2  of the preceding 12-month average Medicaid payments to the

 3  facility.

 4         2.  A leasehold licensee may meet the requirements of

 5  subparagraph 1. by payment of a nonrefundable fee, paid at

 6  initial licensure, paid at the time of any subsequent change

 7  of ownership, and paid at the time of any subsequent annual

 8  license renewal, in the amount of 2 percent of the total of 3

 9  months' Medicaid payments to the facility computed on the

10  basis of the preceding 12-month average Medicaid payments to

11  the facility. If a preceding 12-month average is not

12  available, projected Medicaid payments may be used. The fee

13  shall be deposited into the Health Care Trust Fund and shall

14  be accounted for separately as a Medicaid nursing home

15  overpayment account. These fees shall be used at the sole

16  discretion of the agency to repay nursing home Medicaid

17  overpayments. Payment of this fee shall not release the

18  licensee from any liability for any Medicaid overpayments, nor

19  shall payment bar the agency from seeking to recoup

20  overpayments from the licensee and any other liable party. As

21  a condition of exercising this lease bond alternative,

22  licensees paying this fee must maintain an existing lease bond

23  through the end of the 30-month term period of that bond.  The

24  agency is herein granted specific authority to promulgate all

25  rules pertaining to the administration and management of this

26  account, including withdrawals from the account, subject to

27  federal review and approval. This subparagraph is repealed on

28  June 30, 2003. This provision shall take effect upon becoming

29  law and shall apply to any leasehold license application.

30         a.  The financial viability of the Medicaid nursing

31  home overpayment account shall be determined by the agency


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 1  through annual review of the account balance and the amount of

 2  total outstanding, unpaid Medicaid overpayments owing from

 3  leasehold licensees to the agency as determined by final

 4  agency audits.

 5         b.  The agency, in consultation with the Florida Health

 6  Care Association and the Florida Association of Homes for the

 7  Aging, shall study and make recommendations on the minimum

 8  amount to be held in reserve to protect against Medicaid

 9  overpayments to leasehold licensees and on the issue of

10  successor liability for Medicaid overpayments upon sale or

11  transfer of ownership of a nursing facility. The agency shall

12  submit the findings and recommendations of the study to the

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

14  House of Representatives by January 1, 2003.

15         3.  The leasehold licensee may meet the bond

16  requirement through other arrangements acceptable to the

17  agency. The agency is herein granted specific authority to

18  promulgate rules pertaining to lease bond arrangements.

19         4.  All existing nursing facility licensees, operating

20  the facility as a leasehold, shall acquire, maintain, and

21  provide proof to the agency of the 30-month bond required in

22  subparagraph 1., above, on and after July 1, 1993, for each

23  license renewal.

24         5.  It shall be the responsibility of all nursing

25  facility operators, operating the facility as a leasehold, to

26  renew the 30-month bond and to provide proof of such renewal

27  to the agency annually at the time of application for license

28  renewal.

29         6.  Any failure of the nursing facility operator to

30  acquire, maintain, renew annually, or provide proof to the

31  agency shall be grounds for the agency to deny, cancel,


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 1  revoke, or suspend the facility license to operate such

 2  facility and to take any further action, including, but not

 3  limited to, enjoining the facility, asserting a moratorium, or

 4  applying for a receiver, deemed necessary to ensure compliance

 5  with this section and to safeguard and protect the health,

 6  safety, and welfare of the facility's residents. A lease

 7  agreement required as a condition of bond financing or

 8  refinancing under s. 154.213 by a health facilities authority

 9  or required under s. 159.30 by a county or municipality is not

10  a leasehold for purposes of this paragraph and is not subject

11  to the bond requirement of this paragraph.

12         Section 2.  Paragraph (a) of subsection (3) of section

13  400.23, Florida Statutes, as amended by chapter 2003-1, Laws

14  of Florida, is amended to read:

15         400.23  Rules; evaluation and deficiencies; licensure

16  status.--

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

18  minimum staffing requirements for nursing homes. These

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

20  minimum certified nursing assistant staffing of 2.3 hours of

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

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

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

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

25  2004. Beginning January 1, 2002, no facility shall staff below

26  one certified nursing assistant per 20 residents, and a

27  minimum licensed nursing staffing of 1.0 hour of direct

28  resident care per resident per day but never below one

29  licensed nurse per 40 residents. Nursing assistants employed

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

31  ratio for certified nursing assistants only if they provide


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

 2  Each nursing home must document compliance with staffing

 3  standards as required under this paragraph and post daily the

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

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

 6  nurses for compliance with minimum staffing requirements for

 7  certified nursing assistants, provided that the facility

 8  otherwise meets the minimum staffing requirements for licensed

 9  nurses and that the licensed nurses so recognized are

10  performing the duties of a certified nursing assistant. Unless

11  otherwise approved by the agency, licensed nurses counted

12  towards the minimum staffing requirements for certified

13  nursing assistants must exclusively perform the duties of a

14  certified nursing assistant for the entire shift and shall not

15  also be counted towards the minimum staffing requirements for

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

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

18  certified nursing assistant duties, the facility must allocate

19  the amount of staff time specifically spent on certified

20  nursing assistant duties for the purpose of documenting

21  compliance with minimum staffing requirements for certified

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

23  licensed nurse with dual job responsibilities be counted

24  twice.

25         Section 3.  Section 400.452, Florida Statutes, is

26  amended to read:

27         400.452  Staff training and educational programs; core

28  educational requirement.--

29         (1)  The department shall provide, or cause to be

30  provided, training and educational programs for the

31  Administrators and other assisted living facility staff must


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 1  meet minimum training and education requirements established

 2  by the Department of Elderly Affairs by rule. This training

 3  and education is intended to assist facilities to better

 4  enable them to appropriately respond to the needs of

 5  residents, to maintain resident care and facility standards,

 6  and to meet licensure requirements.

 7         (2)  The department shall also establish a competency

 8  test and a minimum required score to indicate successful

 9  completion of the training and core educational requirements

10  requirement to be used in these programs. The competency test

11  must be developed by the department in conjunction with the

12  agency and providers. Successful completion of the core

13  educational requirement must include successful completion of

14  a competency test. Programs must be provided by the department

15  or by a provider approved by the department at least

16  quarterly.  The required training and education core

17  educational requirement must cover at least the following

18  topics:

19         (a)  State law and rules relating to assisted living

20  facilities.

21         (b)  Resident rights and identifying and reporting

22  abuse, neglect, and exploitation.

23         (c)  Special needs of elderly persons, persons with

24  mental illness, and persons with developmental disabilities

25  and how to meet those needs.

26         (d)  Nutrition and food service, including acceptable

27  sanitation practices for preparing, storing, and serving food.

28         (e)  Medication management, recordkeeping, and proper

29  techniques for assisting residents with self-administered

30  medication.

31  


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 1         (f)  Firesafety requirements, including fire evacuation

 2  drill procedures and other emergency procedures.

 3         (g)  Care of persons with Alzheimer's disease and

 4  related disorders.

 5         (3)  Effective January 1, 2004, Such a program must be

 6  available at least quarterly in each planning and service area

 7  of the department.  The competency test must be developed by

 8  the department in conjunction with the agency and providers. a

 9  new facility administrator must complete the required training

10  and education, core educational requirement including the

11  competency test, within a reasonable time 3 months after being

12  employed as an administrator, as determined by the department.

13  Failure to do so complete a core educational requirement

14  specified in this subsection is a violation of this part and

15  subjects the violator to an administrative fine as prescribed

16  in s. 400.419. Administrators licensed in accordance with

17  chapter 468, part II, are exempt from this requirement. Other

18  licensed professionals may be exempted, as determined by the

19  department by rule.

20         (4)  Administrators are required to participate in

21  continuing education for a minimum of 12 contact hours every 2

22  years.

23         (5)  Staff involved with the management of medications

24  and assisting with the self-administration of medications

25  under s. 400.4256 must complete a minimum of 4 additional

26  hours of training pursuant to a curriculum developed by the

27  department and provided by a registered nurse, licensed

28  pharmacist, or department staff. The department shall

29  establish by rule the minimum requirements of this additional

30  training.

31  


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 1         (6)  Other facility staff shall participate in training

 2  relevant to their job duties as specified by rule of the

 3  department.

 4         (7)  A facility that does not have any residents who

 5  receive monthly optional supplementation payments must pay a

 6  reasonable fee for such training and education programs. A

 7  facility that has one or more such residents shall pay a

 8  reduced fee that is proportional to the percentage of such

 9  residents in the facility. Any facility more than 90 percent

10  of whose residents receive monthly optional state

11  supplementation payments is not required to pay for the

12  training and continuing education programs required under this

13  section.

14         (7)(8)  If the department or the agency determines that

15  there are problems in a facility that could be reduced through

16  specific staff training or education beyond that already

17  required under this section, the department or the agency may

18  require, and provide, or cause to be provided, the training or

19  education of any personal care staff in the facility.

20         (8)(9)  The department shall adopt rules related to

21  these establish training programs, standards and curriculum

22  for training, staff training requirements, the competency

23  test, necessary procedures for approving training programs,

24  and competency test training fees.

25         Section 4.  Section 400.6211, Florida Statutes, is

26  amended to read:

27         400.6211  Training and education programs.--

28         (1)  Each adult family-care home provider shall

29  complete The department must provide training and education

30  programs for all adult family-care home providers.

31  


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 1         (2)  Training and education programs must include

 2  information relating to:

 3         (a)  State law and rules governing adult family-care

 4  homes, with emphasis on appropriateness of placement of

 5  residents in an adult family-care home.

 6         (b)  Identifying and reporting abuse, neglect, and

 7  exploitation.

 8         (c)  Identifying and meeting the special needs of

 9  disabled adults and frail elders.

10         (d)  Monitoring the health of residents, including

11  guidelines for prevention and care of pressure ulcers.

12         (3)  Effective January 1, 2004, providers must complete

13  the training and education program within a reasonable time

14  determined by the department. Failure to complete the training

15  and education program within the time set by the department is

16  a violation of this part and subjects the provider to

17  revocation of the license.

18         (4)  If the Department of Children and Family Services,

19  the agency, or the department determines that there are

20  problems in an adult family-care home which could be reduced

21  through specific training or education beyond that required

22  under this section, the agency may require the provider or

23  staff to complete such training or education.

24         (5)  The department may adopt rules shall specify by

25  rule training and education programs, training requirements

26  and the assignment of training responsibilities for staff,

27  training procedures, and training fees as necessary to

28  administer this section.

29         Section 5.  Paragraph (e) of subsection (2) and

30  subsection (10) of section 408.909, Florida Statutes, are

31  amended to read:


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 1         408.909  Health flex plans.--

 2         (2)  DEFINITIONS.--As used in this section, the term:

 3         (e)  "Health flex plan" means a health plan approved

 4  under subsection (3) which guarantees payment for specified

 5  health care coverage provided to the enrollee who purchases

 6  coverage directly from the plan or through a small business

 7  purchasing arrangement sponsored by a local government.

 8         (10)  EXPIRATION.--This section expires July 1, 2008

 9  2004.

10         Section 6.  Paragraph (q) of subsection (2) of section

11  409.815, Florida Statutes, as amended by chapter 2003-1, Laws

12  of Florida, is amended to read:

13         409.815  Health benefits coverage; limitations.--

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

15  coverage to qualify for premium assistance payments for an

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

17  coverage, except for coverage under Medicaid and Medikids,

18  must include the following minimum benefits, as medically

19  necessary.

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

21  appropriation for this benefit, Covered services include those

22  dental services provided to children by the Florida Medicaid

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

24  per enrollee per year.

25         Section 7.  Subsection (25) of section 409.901, Florida

26  Statutes, is amended to read:

27         409.901  Definitions; ss. 409.901-409.920.--As used in

28  ss. 409.901-409.920, except as otherwise specifically

29  provided, the term:

30         (25)  "Third party" means an individual, entity, or

31  program, excluding Medicaid, that is, may be, could be, should


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 1  be, or has been liable for all or part of the cost of medical

 2  services related to any medical assistance covered by

 3  Medicaid. A third party includes a third-party administrator

 4  or a pharmacy benefits manager.

 5         Section 8.  Subsection (2) of section 409.904, Florida

 6  Statutes, as amended by section 1 of chapter 2003-9, Laws of

 7  Florida, is amended to read:

 8         409.904  Optional payments for eligible persons.--The

 9  agency may make payments for medical assistance and related

10  services on behalf of the following persons who are determined

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

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

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

14  availability of moneys and any limitations established by the

15  General Appropriations Act or chapter 216.

16         (2)  A family caretaker relative or parent, a pregnant

17  woman, a child under age 21 19 who would otherwise qualify for

18  Florida Kidcare Medicaid, a child up to age 21 who would

19  otherwise qualify under s. 409.903(1), a person age 65 or

20  over, or a blind or disabled person, who would otherwise be

21  eligible under any group listed in s. 409.903(1), (2), or (3)

22  for Florida Medicaid, except that the income or assets of such

23  family or person exceed established limitations. For a family

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

25  are deductible from income in accordance with federal

26  requirements in order to make a determination of eligibility.

27  Expenses used to meet spend-down liability are not

28  reimbursable by Medicaid. Effective July 1, 2003, when

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

30  an aged, blind, or disabled individual, $270 shall be deducted

31  from the countable income of the filing unit. When determining


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 1  the eligibility of the parent or caretaker relative as defined

 2  by Title XIX of the Social Security Act, the additional income

 3  disregard of $270 does not apply. A family or person eligible

 4  under the coverage known as the "medically needy," is eligible

 5  to receive the same services as other Medicaid recipients,

 6  with the exception of services in skilled nursing facilities

 7  and intermediate care facilities for the developmentally

 8  disabled.

 9         Section 9.  Subsections (12) and (23) of section

10  409.906, Florida Statutes, are amended to read:

11         409.906  Optional Medicaid services.--Subject to

12  specific appropriations, the agency may make payments for

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

14  the Social Security Act and are furnished by Medicaid

15  providers to recipients who are determined to be eligible on

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

17  service that is provided shall be provided only when medically

18  necessary and in accordance with state and federal law.

19  Optional services rendered by providers in mobile units to

20  Medicaid recipients may be restricted or prohibited by the

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

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

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

24  making any other adjustments necessary to comply with the

25  availability of moneys and any limitations or directions

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

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

28  services to elderly and disabled persons and subject to the

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

30  direct the Agency for Health Care Administration to amend the

31  Medicaid state plan to delete the optional Medicaid service


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 1  known as "Intermediate Care Facilities for the Developmentally

 2  Disabled."  Optional services may include:

 3         (12)  CHILDREN'S HEARING SERVICES.--The agency may pay

 4  for hearing and related services, including hearing

 5  evaluations, hearing aid devices, dispensing of the hearing

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

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

 8  otolaryngologist, otologist, audiologist, or physician.

 9         (23)  CHILDREN'S VISUAL SERVICES.--The agency may pay

10  for visual examinations, eyeglasses, and eyeglass repairs for

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

12  prescribed by a licensed physician specializing in diseases of

13  the eye or by a licensed optometrist.

14         Section 10.  Section 409.9065, Florida Statutes, is

15  amended to read:

16         409.9065  Pharmaceutical expense assistance.--

17         (1)  PROGRAM ESTABLISHED.--There is established a

18  program to provide pharmaceutical expense assistance to

19  eligible certain low-income elderly individuals, which shall

20  be known as the "Ron Silver Senior Drug Program" and may be

21  referred to as the "Lifesaver Rx Program."

22         (2)  ELIGIBILITY.--Eligibility for the program is

23  limited to those individuals who qualify for limited

24  assistance under the Florida Medicaid program as a result of

25  being dually eligible for both Medicare and Medicaid, but

26  whose limited assistance or Medicare coverage does not include

27  any pharmacy benefit. To the extent funds are appropriated,

28  specifically eligible individuals are individuals who:

29         (a)  Are Florida residents age 65 and over;

30         (b)  Have an income equal to or less than 200 percent

31  of the federal poverty level;:


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 1         1.  Between 88 and 120 percent of the federal poverty

 2  level;

 3         2.  Between 88 and 150 percent of the federal poverty

 4  level if the Federal Government increases the federal Medicaid

 5  match for persons between 100 and 150 percent of the federal

 6  poverty level; or

 7         3.  Between 88 percent of the federal poverty level and

 8  a level that can be supported with funds provided in the

 9  General Appropriations Act for the program offered under this

10  section along with federal matching funds approved by the

11  Federal Government under a s. 1115 waiver. The agency is

12  authorized to submit and implement a federal waiver pursuant

13  to this subparagraph. The agency shall design a pharmacy

14  benefit that includes annual per-member benefit limits and

15  cost-sharing provisions and limits enrollment to available

16  appropriations and matching federal funds. Prior to

17  implementing this program, the agency must submit a budget

18  amendment pursuant to chapter 216;

19         (c)  Are eligible for both Medicare and Medicaid;

20         (d)  Have exhausted pharmacy benefits under Medicare,

21  Medicaid, or any other insurance plan Are not enrolled in a

22  Medicare health maintenance organization that provides a

23  pharmacy benefit; and

24         (e)  Request to be enrolled in the program.

25         (3)  BENEFITS.--Eligible individuals shall receive a

26  discount for prescription drugs Medications covered under the

27  pharmaceutical expense assistance program are those covered

28  under the Medicaid program in s. 409.906(20)(19). Monthly

29  benefit payments shall be limited to $80 per program

30  participant. Participants are required to make a 10-percent

31  


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 1  coinsurance payment for each prescription purchased through

 2  this program.

 3         (a)  Eligible individuals with incomes equal to or less

 4  than 120 percent of the federal poverty level shall receive a

 5  discount of 100 percent for the first $160 worth of

 6  prescription drugs they receive each month, subject to

 7  copayments that the agency requires on these benefits. For all

 8  other prescription drugs received each month, eligible

 9  individuals shall receive a discount of 50 percent.

10         (b)  Eligible individuals with incomes of more than 120

11  percent but not more than 150 percent of the federal poverty

12  level shall receive a discount of 50 percent.

13         (c)  Eligible individuals with incomes of more than 150

14  percent but not more than 175 percent of the federal poverty

15  level shall receive a discount of 41 percent.

16         (d)  Eligible individuals with incomes of more than 175

17  percent but not more than 200 percent of the federal poverty

18  level shall receive a discount of 37 percent.

19         (4)  ADMINISTRATION.--The pharmaceutical expense

20  assistance program shall be administered by the agency for

21  Health Care Administration, in collaboration consultation with

22  the Department of Elderly Affairs and the Department of

23  Children and Family Services.

24         (a)  The Agency for Health Care Administration and the

25  Department of Elderly Affairs shall develop a single-page

26  application for the pharmaceutical expense assistance program.

27         (a)(b)  The agency for Health Care Administration

28  shall, by rule, establish for the pharmaceutical expense

29  assistance program eligibility requirements;, limits on

30  participation;, benefit limitations, including copayments; a

31  requirement for generic drug substitution;, and other program


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 1  parameters comparable to those of the Medicaid program.

 2  Individuals eligible to participate in this program are not

 3  subject to the limit of four brand name drugs per month per

 4  recipient as specified in s. 409.912(38)(a). There shall be no

 5  monetary limit on prescription drugs purchased with discounts

 6  of less than 51 percent unless the agency determines there is

 7  a risk of a funding shortfall in the program. If the agency

 8  determines there is a risk of a funding shortfall, the agency

 9  may establish monetary limits on prescription drugs which

10  shall not be less than $160 worth of prescription drugs per

11  month.

12         (b)(c)  By January 1 of each year, the agency for

13  Health Care Administration shall report to the Legislature on

14  the operation of the program. The report shall include

15  information on the number of individuals served, use rates,

16  and expenditures under the program. The report shall also

17  address the impact of the program on reducing unmet

18  pharmaceutical drug needs among the elderly and recommend

19  programmatic changes.

20         (5)  NONENTITLEMENT.--The pharmaceutical expense

21  assistance program established by this section is not an

22  entitlement. Enrollment levels are limited to those authorized

23  by the Legislature in the annual General Appropriations Act.

24  If, after establishing monetary limits as required by

25  paragraph (4)(a), funds are insufficient to serve all eligible

26  individuals eligible under subsection (2) and seeking

27  coverage, the agency may develop a waiting list based on

28  application dates to use in enrolling individuals in unfilled

29  enrollment slots.

30  

31  


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    2003 Legislature                        SB 22-A, 2nd Engrossed



 1         (6)  PHARMACEUTICAL MANUFACTURER PARTICIPATION.--In

 2  order for a drug product to be covered under Medicaid or this

 3  program, the product's manufacturer shall:

 4         (a)  Provide a rebate to the state equal to the rebate

 5  required by the Medicaid program; and

 6         (b)  Make the drug product available to the program for

 7  the best price that the manufacturer makes the drug product

 8  available in the Medicaid program.

 9         (7)  REIMBURSEMENT.--Total reimbursements to pharmacies

10  participating in the pharmaceutical expense assistance program

11  established under this section shall be equivalent to

12  reimbursements under the Medicaid program.

13         (8)  FEDERAL APPROVAL.--The benefits provided in this

14  section are limited to those approved by the Federal

15  Government pursuant to a Medicaid waiver or an amendment to

16  the state Medicaid plan.

17         Section 11.  Subsection (14) of section 409.908,

18  Florida Statutes, is amended to read:

19         409.908  Reimbursement of Medicaid providers.--Subject

20  to specific appropriations, the agency shall reimburse

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

22  according to methodologies set forth in the rules of the

23  agency and in policy manuals and handbooks incorporated by

24  reference therein.  These methodologies may include fee

25  schedules, reimbursement methods based on cost reporting,

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

27  and other mechanisms the agency considers efficient and

28  effective for purchasing services or goods on behalf of

29  recipients. If a provider is reimbursed based on cost

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

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


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

 2  shall be retroactively calculated using the new cost report,

 3  and full payment at the recalculated rate shall be affected

 4  retroactively. Medicare-granted extensions for filing cost

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

 6  reports. Payment for Medicaid compensable services made on

 7  behalf of Medicaid eligible persons is subject to the

 8  availability of moneys and any limitations or directions

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

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

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

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

13  making any other adjustments necessary to comply with the

14  availability of moneys and any limitations or directions

15  provided for in the General Appropriations Act, provided the

16  adjustment is consistent with legislative intent.

17         (14)  A provider of prescribed drugs shall be

18  reimbursed the least of the amount billed by the provider, the

19  provider's usual and customary charge, or the Medicaid maximum

20  allowable fee established by the agency, plus a dispensing

21  fee. The agency is directed to implement a variable dispensing

22  fee for payments for prescribed medicines while ensuring

23  continued access for Medicaid recipients.  The variable

24  dispensing fee may be based upon, but not limited to, either

25  or both the volume of prescriptions dispensed by a specific

26  pharmacy provider, the volume of prescriptions dispensed to an

27  individual recipient, and dispensing of preferred-drug-list

28  products. The agency may shall increase the pharmacy

29  dispensing fee authorized by statute and in the annual General

30  Appropriations Act by $0.50 for the dispensing of a Medicaid

31  preferred-drug-list product and reduce the pharmacy dispensing


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 1  fee by $0.50 for the dispensing of a Medicaid product that is

 2  not included on the preferred-drug list. The agency may

 3  establish a supplemental pharmaceutical dispensing fee to be

 4  paid to providers returning unused unit-dose packaged

 5  medications to stock and crediting the Medicaid program for

 6  the ingredient cost of those medications if the ingredient

 7  costs to be credited exceed the value of the supplemental

 8  dispensing fee. The agency is authorized to limit

 9  reimbursement for prescribed medicine in order to comply with

10  any limitations or directions provided for in the General

11  Appropriations Act, which may include implementing a

12  prospective or concurrent utilization review program.

13         Section 12.  Subsection (1) of section 409.9081,

14  Florida Statutes, is amended to read:

15         409.9081  Copayments.--

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

17  regulations and limitations, each Medicaid recipient to pay at

18  the time of service a nominal copayment for the following

19  Medicaid services:

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

21  hospital outpatient visit.

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

23  visit with a physician licensed under chapter 458, chapter

24  459, chapter 460, chapter 461, or chapter 463.

25         (c)  Hospital emergency department visits for

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

27         (d)  Prescription drugs:  a coinsurance equal to 2.5

28  percent of the Medicaid cost of the prescription drug at the

29  time of purchase. The maximum coinsurance shall be $7.50 per

30  prescription drug purchased.

31  


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    2003 Legislature                        SB 22-A, 2nd Engrossed



 1         Section 13.  Section 409.911, Florida Statutes, is

 2  amended to read:

 3         409.911  Disproportionate share program.--Subject to

 4  specific allocations established within the General

 5  Appropriations Act and any limitations established pursuant to

 6  chapter 216, the agency shall distribute, pursuant to this

 7  section, moneys to hospitals providing a disproportionate

 8  share of Medicaid or charity care services by making quarterly

 9  Medicaid payments as required. Notwithstanding the provisions

10  of s. 409.915, counties are exempt from contributing toward

11  the cost of this special reimbursement for hospitals serving a

12  disproportionate share of low-income patients.

13         (1)  Definitions.--As used in this section, s.

14  409.9112, and the Florida Hospital Uniform Reporting System

15  manual:

16         (a)  "Adjusted patient days" means the sum of acute

17  care patient days and intensive care patient days as reported

18  to the Agency for Health Care Administration, divided by the

19  ratio of inpatient revenues generated from acute, intensive,

20  ambulatory, and ancillary patient services to gross revenues.

21         (b)  "Actual audited data" or "actual audited

22  experience" means data reported to the Agency for Health Care

23  Administration which has been audited in accordance with

24  generally accepted auditing standards by the agency or

25  representatives under contract with the agency.

26         (c)  "Base Medicaid per diem" means the hospital's

27  Medicaid per diem rate initially established by the Agency for

28  Health Care Administration on January 1, 1999. The base

29  Medicaid per diem rate shall not include any additional per

30  diem increases received as a result of the disproportionate

31  share distribution.


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 1         (c)(d)  "Charity care" or "uncompensated charity care"

 2  means that portion of hospital charges reported to the Agency

 3  for Health Care Administration for which there is no

 4  compensation, other than restricted or unrestricted revenues

 5  provided to a hospital by local governments or tax districts

 6  regardless of the method of payment, for care provided to a

 7  patient whose family income for the 12 months preceding the

 8  determination is less than or equal to 200 percent of the

 9  federal poverty level, unless the amount of hospital charges

10  due from the patient exceeds 25 percent of the annual family

11  income.  However, in no case shall the hospital charges for a

12  patient whose family income exceeds four times the federal

13  poverty level for a family of four be considered charity.

14         (d)(e)  "Charity care days" means the sum of the

15  deductions from revenues for charity care minus 50 percent of

16  restricted and unrestricted revenues provided to a hospital by

17  local governments or tax districts, divided by gross revenues

18  per adjusted patient day.

19         (f)  "Disproportionate share percentage" means a rate

20  of increase in the Medicaid per diem rate as calculated under

21  this section.

22         (e)(g)  "Hospital" means a health care institution

23  licensed as a hospital pursuant to chapter 395, but does not

24  include ambulatory surgical centers.

25         (f)(h)  "Medicaid days" means the number of actual days

26  attributable to Medicaid patients as determined by the Agency

27  for Health Care Administration.

28         (2)  The Agency for Health Care Administration shall

29  use utilize the following actual audited data criteria to

30  determine the Medicaid days and charity care to be used in

31  


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    2003 Legislature                        SB 22-A, 2nd Engrossed



 1  calculating the if a hospital qualifies for a disproportionate

 2  share payment:

 3         (a)  The average of the 1997, 1998, and 1999 audited

 4  data to determine each hospital's Medicaid days and charity

 5  care.

 6         (b)  The average of the audited disproportionate share

 7  data for the years available if the Agency for Health Care

 8  Administration does not have the prescribed 3 years of audited

 9  disproportionate share data for a hospital.

10         (a)  A hospital's total Medicaid days when combined

11  with its total charity care days must equal or exceed 7

12  percent of its total adjusted patient days.

13         (b)  A hospital's total charity care days weighted by a

14  factor of 4.5, plus its total Medicaid days weighted by a

15  factor of 1, shall be equal to or greater than 10 percent of

16  its total adjusted patient days.

17         (c)  Additionally, In accordance with s. 1923(b) of the

18  Social Security Act the seventh federal Omnibus Budget

19  Reconciliation Act, a hospital with a Medicaid inpatient

20  utilization rate greater than one standard deviation above the

21  statewide mean or a hospital with a low-income utilization

22  rate of 25 percent or greater shall qualify for reimbursement.

23         (3)  In computing the disproportionate share rate:

24         (a)  Per diem increases earned from disproportionate

25  share shall be applied to each hospital's base Medicaid per

26  diem rate and shall be capped at 170 percent.

27         (b)  The agency shall use 1994 audited financial data

28  for the calculation of disproportionate share payments under

29  this section.

30         (c)  If the total amount earned by all hospitals under

31  this section exceeds the amount appropriated, each hospital's


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    2003 Legislature                        SB 22-A, 2nd Engrossed



 1  share shall be reduced on a pro rata basis so that the total

 2  dollars distributed from the trust fund do not exceed the

 3  total amount appropriated.

 4         (d)  The total amount calculated to be distributed

 5  under this section shall be made in quarterly payments

 6  subsequent to each quarter during the fiscal year.

 7         (3)(4)  Hospitals that qualify for a disproportionate

 8  share payment solely under paragraph (2)(c) shall have their

 9  payment calculated in accordance with the following formulas:

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

11  

12         Where:

13  

14         DSHP = disproportionate share hospital payment.

15         HMD = hospital Medicaid days.

16         TSD = total state Medicaid days.

17  

18  

19                        TAA = TA x (1/5.5)

20                     DSHP = (HMD/TSMD) x TAA

21  

22  Where:

23         TAA = total amount available.

24         TA = total appropriation.

25         DSHP = disproportionate share hospital payment.

26         HMD = hospital Medicaid days.

27         TSMD = total state Medicaid days.

28  

29         (4)  The following formulas shall be used to pay

30  disproportionate share dollars to public hospitals:

31         (a)  For state mental health hospitals:


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    2003 Legislature                        SB 22-A, 2nd Engrossed



 1  

 2         DSHP = (HMD/TMDMH) * TAAMH

 3  

 4         shall be the difference between the federal cap

 5         for Institutions for Mental Diseases and the

 6         amounts paid under the mental health

 7         disproportionate share program.

 8  

 9         Where:

10  

11         DSHP = disproportionate share hospital payment.

12         HMD = hospital Medicaid days.

13         TMDHH = total Medicaid days for state mental health

14  hospitals.

15         TAAMH = total amount available for mental health

16  hospitals.

17  

18         (b)  For non-state government owned or operated

19  hospitals with 3,300 or more Medicaid days:

20  

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

22         TAAPH = TAA - TAAMH

23  

24         Where:

25  

26         TAA = total available appropriation.

27         TAAPH = total amount available for public hospitals.

28         DSHP = disproportionate share hospital payments.

29         HMD = hospital Medicaid days.

30         TMD = total state Medicaid days for public hospitals.

31         HCCD = hospital charity care dollars.


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 1         TCCD = total state charity care dollars for public

 2  non-state hospitals.

 3  

 4         (c)  For non-state government owned or operated

 5  hospitals with less than 3,300 Medicaid days, a total of

 6  $400,000 shall be distributed equally among these hospitals.

 7         (5)  The following formula shall be utilized by the

 8  agency to determine the maximum disproportionate share rate to

 9  be used to increase the Medicaid per diem rate for hospitals

10  that qualify pursuant to paragraphs (2)(a) and (b):

11  

12                             CCD                    MD

13                 DSR = (  (........)  x 4.5) +  (........)

14                             APD                   APD

15  Where:

16         APD = adjusted patient days.

17         CCD = charity care days.

18         DSR = disproportionate share rate.

19         MD = Medicaid days.

20  

21         (6)(a)  To calculate the total amount earned by all

22  hospitals under this section, hospitals with a

23  disproportionate share rate less than 50 percent shall divide

24  their Medicaid days by four, and hospitals with a

25  disproportionate share rate greater than or equal to 50

26  percent and with greater than 40,000 Medicaid days shall

27  multiply their Medicaid days by 1.5, and the following formula

28  shall be used by the agency to calculate the total amount

29  earned by all hospitals under this section:

30  

31                      TAE = BMPD x MD x DSP


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    2003 Legislature                        SB 22-A, 2nd Engrossed



 1  

 2  Where:

 3         TAE = total amount earned.

 4         BMPD = base Medicaid per diem.

 5         MD = Medicaid days.

 6         DSP = disproportionate share percentage.

 7  

 8         (5)(b)  In no case shall total payments to a hospital

 9  under this section, with the exception of public non-state

10  facilities or state facilities, exceed the total amount of

11  uncompensated charity care of the hospital, as determined by

12  the agency according to the most recent calendar year audited

13  data available at the beginning of each state fiscal year.

14         (7)  The following criteria shall be used in

15  determining the disproportionate share percentage:

16         (a)  If the disproportionate share rate is less than 10

17  percent, the disproportionate share percentage is zero and

18  there is no additional payment.

19         (b)  If the disproportionate share rate is greater than

20  or equal to 10 percent, but less than 20 percent, then the

21  disproportionate share percentage is 1.8478498.

22         (c)  If the disproportionate share rate is greater than

23  or equal to 20 percent, but less than 30 percent, then the

24  disproportionate share percentage is 3.4145488.

25         (d)  If the disproportionate share rate is greater than

26  or equal to 30 percent, but less than 40 percent, then the

27  disproportionate share percentage is 6.3095734.

28         (e)  If the disproportionate share rate is greater than

29  or equal to 40 percent, but less than 50 percent, then the

30  disproportionate share percentage is 11.6591440.

31  


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    2003 Legislature                        SB 22-A, 2nd Engrossed



 1         (f)  If the disproportionate share rate is greater than

 2  or equal to 50 percent, but less than 60 percent, then the

 3  disproportionate share percentage is 73.5642254.

 4         (g)  If the disproportionate share rate is greater than

 5  or equal to 60 percent but less than 72.5 percent, then the

 6  disproportionate share percentage is 135.9356391.

 7         (h)  If the disproportionate share rate is greater than

 8  or equal to 72.5 percent, then the disproportionate share

 9  percentage is 170.

10         (8)  The following formula shall be used by the agency

11  to calculate the total amount earned by all hospitals under

12  this section:

13  

14                      TAE = BMPD x MD x DSP

15  

16  Where:

17         TAE = total amount earned.

18         BMPD = base Medicaid per diem.

19         MD = Medicaid days.

20         DSP = disproportionate share percentage.

21  

22         (6)(9)  The agency is authorized to receive funds from

23  local governments and other local political subdivisions for

24  the purpose of making payments, including federal matching

25  funds, through the Medicaid disproportionate share program.

26  Funds received from local governments for this purpose shall

27  be separately accounted for and shall not be commingled with

28  other state or local funds in any manner.

29         (7)(10)  Payments made by the agency to hospitals

30  eligible to participate in this program shall be made in

31  accordance with federal rules and regulations.


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    2003 Legislature                        SB 22-A, 2nd Engrossed



 1         (a)  If the Federal Government prohibits, restricts, or

 2  changes in any manner the methods by which funds are

 3  distributed for this program, the agency shall not distribute

 4  any additional funds and shall return all funds to the local

 5  government from which the funds were received, except as

 6  provided in paragraph (b).

 7         (b)  If the Federal Government imposes a restriction

 8  that still permits a partial or different distribution, the

 9  agency may continue to disburse funds to hospitals

10  participating in the disproportionate share program in a

11  federally approved manner, provided:

12         1.  Each local government which contributes to the

13  disproportionate share program agrees to the new manner of

14  distribution as shown by a written document signed by the

15  governing authority of each local government; and

16         2.  The Executive Office of the Governor, the Office of

17  Planning and Budgeting, the House of Representatives, and the

18  Senate are provided at least 7 days' prior notice of the

19  proposed change in the distribution, and do not disapprove

20  such change.

21         (c)  No distribution shall be made under the

22  alternative method specified in paragraph (b) unless all

23  parties agree or unless all funds of those parties that

24  disagree which are not yet disbursed have been returned to

25  those parties.

26         (8)(11)  Notwithstanding the provisions of chapter 216,

27  the Executive Office of the Governor is hereby authorized to

28  establish sufficient trust fund authority to implement the

29  disproportionate share program.

30         Section 14.  Section 409.9112, Florida Statutes, is

31  amended to read:


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    2003 Legislature                        SB 22-A, 2nd Engrossed



 1         409.9112  Disproportionate share program for regional

 2  perinatal intensive care centers.--In addition to the payments

 3  made under s. 409.911, the Agency for Health Care

 4  Administration shall design and implement a system of making

 5  disproportionate share payments to those hospitals that

 6  participate in the regional perinatal intensive care center

 7  program established pursuant to chapter 383. This system of

 8  payments shall conform with federal requirements and shall

 9  distribute funds in each fiscal year for which an

10  appropriation is made by making quarterly Medicaid payments.

11  Notwithstanding the provisions of s. 409.915, counties are

12  exempt from contributing toward the cost of this special

13  reimbursement for hospitals serving a disproportionate share

14  of low-income patients.

15         (1)  The following formula shall be used by the agency

16  to calculate the total amount earned for hospitals that

17  participate in the regional perinatal intensive care center

18  program:

19  

20                         TAE = HDSP/THDSP

21  

22  Where:

23  

24         TAE = total amount earned by a regional perinatal

25  intensive care center.

26         HDSP = the prior state fiscal year regional perinatal

27  intensive care center disproportionate share payment to the

28  individual hospital.

29         THDSP = the prior state fiscal year total regional

30  perinatal intensive care center disproportionate share

31  payments to all hospitals.


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 1  

 2         (2)  The total additional payment for hospitals that

 3  participate in the regional perinatal intensive care center

 4  program shall be calculated by the agency as follows:

 5  

 6                          TAP = TAE * TA

 7  

 8  Where:

 9  

10         TAP = total additional payment for a regional perinatal

11  intensive care center.

12         TAE = total amount earned by a regional perinatal

13  intensive care center.

14         TA = total appropriation for the regional perinatal

15  intensive care center disproportionate share program.

16  

17                      TAE = DSR x BMPD x MD

18  

19  Where:

20         TAE = total amount earned by a regional perinatal

21  intensive care center.

22         DSR = disproportionate share rate.

23         BMPD = base Medicaid per diem.

24         MD = Medicaid days.

25  

26         (2)  The total additional payment for hospitals that

27  participate in the regional perinatal intensive care center

28  program shall be calculated by the agency as follows:

29  

30  

31                               TAE x TA


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    2003 Legislature                        SB 22-A, 2nd Engrossed



 1                      TAP = (............)

 2                                 STAE

 3  

 4  Where:

 5         TAP = total additional payment for a regional perinatal

 6  intensive care center.

 7         TAE = total amount earned by a regional perinatal

 8  intensive care center.

 9         STAE = sum of total amount earned by each hospital that

10  participates in the regional perinatal intensive care center

11  program.

12         TA = total appropriation for the regional perinatal

13  intensive care disproportionate share program.

14  

15         (3)  In order to receive payments under this section, a

16  hospital must be participating in the regional perinatal

17  intensive care center program pursuant to chapter 383 and must

18  meet the following additional requirements:

19         (a)  Agree to conform to all departmental and agency

20  requirements to ensure high quality in the provision of

21  services, including criteria adopted by departmental and

22  agency rule concerning staffing ratios, medical records,

23  standards of care, equipment, space, and such other standards

24  and criteria as the department and agency deem appropriate as

25  specified by rule.

26         (b)  Agree to provide information to the department and

27  agency, in a form and manner to be prescribed by rule of the

28  department and agency, concerning the care provided to all

29  patients in neonatal intensive care centers and high-risk

30  maternity care.

31  


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 1         (c)  Agree to accept all patients for neonatal

 2  intensive care and high-risk maternity care, regardless of

 3  ability to pay, on a functional space-available basis.

 4         (d)  Agree to develop arrangements with other maternity

 5  and neonatal care providers in the hospital's region for the

 6  appropriate receipt and transfer of patients in need of

 7  specialized maternity and neonatal intensive care services.

 8         (e)  Agree to establish and provide a developmental

 9  evaluation and services program for certain high-risk

10  neonates, as prescribed and defined by rule of the department.

11         (f)  Agree to sponsor a program of continuing education

12  in perinatal care for health care professionals within the

13  region of the hospital, as specified by rule.

14         (g)  Agree to provide backup and referral services to

15  the department's county health departments and other

16  low-income perinatal providers within the hospital's region,

17  including the development of written agreements between these

18  organizations and the hospital.

19         (h)  Agree to arrange for transportation for high-risk

20  obstetrical patients and neonates in need of transfer from the

21  community to the hospital or from the hospital to another more

22  appropriate facility.

23         (4)  Hospitals which fail to comply with any of the

24  conditions in subsection (3) or the applicable rules of the

25  department and agency shall not receive any payments under

26  this section until full compliance is achieved.  A hospital

27  which is not in compliance in two or more consecutive quarters

28  shall not receive its share of the funds.  Any forfeited funds

29  shall be distributed by the remaining participating regional

30  perinatal intensive care center program hospitals.

31  


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 1         Section 15.  Subsection (1) of section 409.9116,

 2  Florida Statutes, is amended to read:

 3         409.9116  Disproportionate share/financial assistance

 4  program for rural hospitals.--In addition to the payments made

 5  under s. 409.911, the Agency for Health Care Administration

 6  shall administer a federally matched disproportionate share

 7  program and a state-funded financial assistance program for

 8  statutory rural hospitals. The agency shall make

 9  disproportionate share payments to statutory rural hospitals

10  that qualify for such payments and financial assistance

11  payments to statutory rural hospitals that do not qualify for

12  disproportionate share payments. The disproportionate share

13  program payments shall be limited by and conform with federal

14  requirements. Funds shall be distributed quarterly in each

15  fiscal year for which an appropriation is made.

16  Notwithstanding the provisions of s. 409.915, counties are

17  exempt from contributing toward the cost of this special

18  reimbursement for hospitals serving a disproportionate share

19  of low-income patients.

20         (1)  The following formula shall be used by the agency

21  to calculate the total amount earned for hospitals that

22  participate in the rural hospital disproportionate share

23  program or the financial assistance program:

24  

25                     TAERH = (CCD + MDD)/TPD

26  

27  Where:

28         CCD = total charity care-other, plus charity

29  care-Hill-Burton, minus 50 percent of unrestricted tax revenue

30  from local governments, and restricted funds for indigent

31  care, divided by gross revenue per adjusted patient day;


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 1  however, if CCD is less than zero, then zero shall be used for

 2  CCD.

 3         MDD = Medicaid inpatient days plus Medicaid HMO

 4  inpatient days.

 5         TPD = total inpatient days.

 6         TAERH = total amount earned by each rural hospital.

 7  

 8  In computing the total amount earned by each rural hospital,

 9  the agency must use the average of the 3 most recent years of

10  actual data reported in accordance with s. 408.061(4)(a). The

11  agency shall provide a preliminary estimate of the payments

12  under the rural disproportionate share and financial

13  assistance programs to the rural hospitals by August 31 of

14  each state fiscal year for review. Each rural hospital shall

15  have 30 days to review the preliminary estimates of payments

16  and report any errors to the agency. The agency shall make any

17  corrections deemed necessary and compute the rural

18  disproportionate share and financial assistance program

19  payments.

20         Section 16.  Section 409.9117, Florida Statutes, is

21  amended to read:

22         409.9117  Primary care disproportionate share

23  program.--

24         (1)  If federal funds are available for

25  disproportionate share programs in addition to those otherwise

26  provided by law, there shall be created a primary care

27  disproportionate share program.

28         (2)  The following formula shall be used by the agency

29  to calculate the total amount earned for hospitals that

30  participate in the primary care disproportionate share

31  program:


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 1  

 2                         TAE = HDSP/THDSP

 3  

 4  Where:

 5  

 6         TAE = total amount earned by a hospital participating

 7  in the primary care disproportionate share program.

 8         HDSP = the prior state fiscal year primary care

 9  disproportionate share payment to the individual hospital.

10         THDSP = the prior state fiscal year total primary care

11  disproportionate share payments to all hospitals.

12  

13         (3)  The total additional payment for hospitals that

14  participate in the primary care disproportionate share program

15  shall be calculated by the agency as follows:

16  

17                          TAP = TAE * TA

18  

19  Where:

20  

21         TAP = total additional payment for a primary care

22  hospital.

23         TAE = total amount earned by a primary care hospital.

24         TA = total appropriation for the primary care

25  disproportionate share program.

26         (4)(2)  In the establishment and funding of this

27  program, the agency shall use the following criteria in

28  addition to those specified in s. 409.911, payments may not be

29  made to a hospital unless the hospital agrees to:

30         (a)  Cooperate with a Medicaid prepaid health plan, if

31  one exists in the community.


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 1         (b)  Ensure the availability of primary and specialty

 2  care physicians to Medicaid recipients who are not enrolled in

 3  a prepaid capitated arrangement and who are in need of access

 4  to such physicians.

 5         (c)  Coordinate and provide primary care services free

 6  of charge, except copayments, to all persons with incomes up

 7  to 100 percent of the federal poverty level who are not

 8  otherwise covered by Medicaid or another program administered

 9  by a governmental entity, and to provide such services based

10  on a sliding fee scale to all persons with incomes up to 200

11  percent of the federal poverty level who are not otherwise

12  covered by Medicaid or another program administered by a

13  governmental entity, except that eligibility may be limited to

14  persons who reside within a more limited area, as agreed to by

15  the agency and the hospital.

16         (d)  Contract with any federally qualified health

17  center, if one exists within the agreed geopolitical

18  boundaries, concerning the provision of primary care services,

19  in order to guarantee delivery of services in a nonduplicative

20  fashion, and to provide for referral arrangements, privileges,

21  and admissions, as appropriate.  The hospital shall agree to

22  provide at an onsite or offsite facility primary care services

23  within 24 hours to which all Medicaid recipients and persons

24  eligible under this paragraph who do not require emergency

25  room services are referred during normal daylight hours.

26         (e)  Cooperate with the agency, the county, and other

27  entities to ensure the provision of certain public health

28  services, case management, referral and acceptance of

29  patients, and sharing of epidemiological data, as the agency

30  and the hospital find mutually necessary and desirable to

31  


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 1  promote and protect the public health within the agreed

 2  geopolitical boundaries.

 3         (f)  In cooperation with the county in which the

 4  hospital resides, develop a low-cost, outpatient, prepaid

 5  health care program to persons who are not eligible for the

 6  Medicaid program, and who reside within the area.

 7         (g)  Provide inpatient services to residents within the

 8  area who are not eligible for Medicaid or Medicare, and who do

 9  not have private health insurance, regardless of ability to

10  pay, on the basis of available space, except that nothing

11  shall prevent the hospital from establishing bill collection

12  programs based on ability to pay.

13         (h)  Work with the Florida Healthy Kids Corporation,

14  the Florida Health Care Purchasing Cooperative, and business

15  health coalitions, as appropriate, to develop a feasibility

16  study and plan to provide a low-cost comprehensive health

17  insurance plan to persons who reside within the area and who

18  do not have access to such a plan.

19         (i)  Work with public health officials and other

20  experts to provide community health education and prevention

21  activities designed to promote healthy lifestyles and

22  appropriate use of health services.

23         (j)  Work with the local health council to develop a

24  plan for promoting access to affordable health care services

25  for all persons who reside within the area, including, but not

26  limited to, public health services, primary care services,

27  inpatient services, and affordable health insurance generally.

28  

29  Any hospital that fails to comply with any of the provisions

30  of this subsection, or any other contractual condition, may

31  


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 1  not receive payments under this section until full compliance

 2  is achieved.

 3         Section 17.  Section 409.9119, Florida Statutes, is

 4  amended to read:

 5         409.9119  Disproportionate share program for specialty

 6  hospitals for children.--In addition to the payments made

 7  under s. 409.911, the Agency for Health Care Administration

 8  shall develop and implement a system under which

 9  disproportionate share payments are made to those hospitals

10  that are licensed by the state as specialty hospitals for

11  children and were licensed on January 1, 2000, as specialty

12  hospitals for children. This system of payments must conform

13  to federal requirements and must distribute funds in each

14  fiscal year for which an appropriation is made by making

15  quarterly Medicaid payments. Notwithstanding s. 409.915,

16  counties are exempt from contributing toward the cost of this

17  special reimbursement for hospitals that serve a

18  disproportionate share of low-income patients. Payments are

19  subject to specific appropriations in the General

20  Appropriations Act.

21         (1)  The agency shall use the following formula to

22  calculate the total amount earned for hospitals that

23  participate in the specialty hospital for children

24  disproportionate share program:

25  

26                      TAE = DSR x BMPD x MD

27  

28  Where:

29         TAE = total amount earned by a specialty hospital for

30  children.

31         DSR = disproportionate share rate.


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 1         BMPD = base Medicaid per diem.

 2         MD = Medicaid days.

 3         (2)  The agency shall calculate the total additional

 4  payment for hospitals that participate in the specialty

 5  hospital for children disproportionate share program as

 6  follows:

 7  

 8  

 9                               TAE x TA

10                      TAP = (............)

11                                 STAE

12  Where:

13         TAP = total additional payment for a specialty hospital

14  for children.

15         TAE = total amount earned by a specialty hospital for

16  children.

17         TA = total appropriation for the specialty hospital for

18  children disproportionate share program.

19         STAE = sum of total amount earned by each hospital that

20  participates in the specialty hospital for children

21  disproportionate share program.

22  

23         (3)  A hospital may not receive any payments under this

24  section until it achieves full compliance with the applicable

25  rules of the agency. A hospital that is not in compliance for

26  two or more consecutive quarters may not receive its share of

27  the funds. Any forfeited funds must be distributed to the

28  remaining participating specialty hospitals for children that

29  are in compliance.

30         Section 18.  Paragraph (d) of subsection (3) of section

31  409.912, Florida Statutes, as amended by chapter 2003-1, Laws


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 1  of Florida, is amended, and subsections (41) and (42) are

 2  added to that section, to read:

 3         409.912  Cost-effective purchasing of health care.--The

 4  agency shall purchase goods and services for Medicaid

 5  recipients in the most cost-effective manner consistent with

 6  the delivery of quality medical care.  The agency shall

 7  maximize the use of prepaid per capita and prepaid aggregate

 8  fixed-sum basis services when appropriate and other

 9  alternative service delivery and reimbursement methodologies,

10  including competitive bidding pursuant to s. 287.057, designed

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

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

13  minimize the exposure of recipients to the need for acute

14  inpatient, custodial, and other institutional care and the

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

16  agency may establish prior authorization requirements for

17  certain populations of Medicaid beneficiaries, certain drug

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

19  and possible dangerous drug interactions. The Pharmaceutical

20  and Therapeutics Committee shall make recommendations to the

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

22  agency shall inform the Pharmaceutical and Therapeutics

23  Committee of its decisions regarding drugs subject to prior

24  authorization.

25         (3)  The agency may contract with:

26         (d)  A provider service network No more than four

27  provider service networks for demonstration projects to test

28  Medicaid direct contracting. The demonstration projects may be

29  reimbursed on a fee-for-service or prepaid basis.  A provider

30  service network which is reimbursed by the agency on a prepaid

31  basis shall be exempt from parts I and III of chapter 641, but


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 1  must meet appropriate financial reserve, quality assurance,

 2  and patient rights requirements as established by the agency.

 3  The agency shall award contracts on a competitive bid basis

 4  and shall select bidders based upon price and quality of care.

 5  Medicaid recipients assigned to a demonstration project shall

 6  be chosen equally from those who would otherwise have been

 7  assigned to prepaid plans and MediPass.  The agency is

 8  authorized to seek federal Medicaid waivers as necessary to

 9  implement the provisions of this section.  A demonstration

10  project awarded pursuant to this paragraph shall be for 4

11  years from the date of implementation.

12         (41)  The agency shall develop and implement a

13  utilization management program for Medicaid-eligible

14  recipients for the management of occupational, physical,

15  respiratory, and speech therapies. The agency shall establish

16  a utilization program that may require prior authorization in

17  order to ensure medically necessary and cost-effective

18  treatments. The program shall be operated in accordance with a

19  federally approved waiver program or state plan amendment. The

20  agency may seek a federal waiver or state plan amendment to

21  implement this program. The agency may also competitively

22  procure these services from an outside vendor on a regional or

23  statewide basis.

24         (42)  The agency may contract on a prepaid or fixed-sum

25  basis with appropriately licensed prepaid dental health plans

26  to provide dental services.

27         Section 19.  Paragraphs (f) and (k) of subsection (2)

28  of section 409.9122, Florida Statutes, are amended, and

29  subsection (13) is added to that section, to read:

30         409.9122  Mandatory Medicaid managed care enrollment;

31  programs and procedures.--


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 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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 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.

 6         1.  Beginning July 1, 2002, the agency shall assign all

 7  children in families who have not made a choice of a managed

 8  care plan or MediPass in the required timeframe to a pediatric

 9  emergency room diversion program described in s. 409.912(3)(g)

10  that, as of July 1, 2002, has executed a contract with the

11  agency, until such network or program has reached an

12  enrollment of 15,000 children. Once that minimum enrollment

13  level has been reached, the agency shall assign children who

14  have not chosen a managed care plan or MediPass to the network

15  or program in a manner that maintains the minimum enrollment

16  in the network or program at not less than 15,000 children. To

17  the extent practicable, the agency shall also assign all

18  eligible children in the same family to such network or

19  program. This subparagraph expires January 1, 2004.

20         2.  When making assignments, the agency shall take into

21  account the following criteria:

22         a.1.  A managed care plan has sufficient network

23  capacity to meet the need of members.

24         b.2.  The managed care plan or MediPass has previously

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

26  plan's primary care providers or MediPass providers has

27  previously provided health care to the recipient.

28         c.3.  The agency has knowledge that the member has

29  previously expressed a preference for a particular managed

30  care plan or MediPass provider as indicated by Medicaid

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


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 1         d.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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 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         (13)  Effective July 1, 2003, the agency shall adjust

18  the enrollee assignment process of Medicaid managed prepaid

19  health plans for those Medicaid managed prepaid plans

20  operating in Miami-Dade County which have executed a contract

21  with the agency for a minimum of 8 consecutive years in order

22  for the Medicaid managed prepaid plan to maintain a minimum

23  enrollment level of 15,000 members per month.

24         Section 20.  Section 430.83, Florida Statutes, is

25  created to read:

26         430.83  Sunshine for Seniors Program.--

27         (1)  POPULAR NAME.--This section shall be known by the

28  popular name "The Sunshine for Seniors Act."

29         (2)  DEFINITIONS.--As used in this section, the term:

30         (a)  "Application assistance organization" means any

31  private organization that assists individuals with obtaining


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 1  prescription drugs through manufacturers' pharmaceutical

 2  assistance programs.

 3         (b)  "Eligible individual" means any individual who is

 4  60 years of age or older who lacks adequate pharmaceutical

 5  insurance coverage.

 6         (c)  "Manufacturers' pharmaceutical assistance program"

 7  means any program offered by a pharmaceutical manufacturer

 8  which provides low-income individuals with prescription drugs

 9  free or at reduced prices, including, but not limited to,

10  senior discount card programs and patient assistance programs.

11         (3)  LEGISLATIVE FINDINGS AND INTENT.--The Legislature

12  finds that the pharmaceutical manufacturers, seeing a need,

13  have created charitable programs to aid low-income seniors

14  with the cost of prescription drugs. The Legislature also

15  finds that many low-income seniors are unaware of such

16  programs or either do not know how to apply for or need

17  assistance in completing the applications for such programs.

18  Therefore, it is the intent of the Legislature that the

19  Department of Elderly Affairs, in consultation with the Agency

20  for Health Care Administration, implement and oversee the

21  Sunshine for Seniors Program to help seniors in accessing

22  manufacturers' pharmaceutical assistance programs.

23         (4)  SUNSHINE FOR SENIORS PROGRAM.--There is

24  established a program to assist low-income seniors with

25  obtaining prescription drugs from manufacturers'

26  pharmaceutical assistance programs, which shall be known as

27  the "Sunshine for Seniors Program." Implementation of the

28  program is subject to the availability of funding and any

29  limitations or directions provided for by the General

30  Appropriations Act or chapter 216.

31  


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 1         (5)  IMPLEMENTATION AND OVERSIGHT DUTIES.--In

 2  implementing and overseeing the Sunshine for Seniors Program,

 3  the Department of Elderly Affairs:

 4         (a)  Shall promote the availability of manufacturers'

 5  pharmaceutical assistance programs to eligible individuals

 6  with various outreach initiatives.

 7         (b)  Shall, working cooperatively with pharmaceutical

 8  manufacturers and consumer advocates, develop a uniform

 9  application form to be completed by seniors who wish to

10  participate in the Sunshine for Seniors Program.

11         (c)  May request proposals from application assistance

12  organizations to assist eligible individuals with obtaining

13  prescription drugs through manufacturers' pharmaceutical

14  assistance programs.

15         (d)  Shall train volunteers to help eligible

16  individuals fill out applications for the manufacturers'

17  pharmaceutical assistance programs.

18         (e)  Shall train volunteers to determine when

19  applicants may be eligible for other state programs and refer

20  them to the proper entity for eligibility determination for

21  such programs.

22         (f)  Shall seek federal funds to help fund the Sunshine

23  for Seniors Program.

24         (g)  May seek federal waivers to help fund the Sunshine

25  for Seniors Program.

26         (6)  COMMUNITY PARTNERSHIPS.--The Department of Elderly

27  Affairs may build private-sector and public-sector

28  partnerships with corporations, hospitals, physicians,

29  pharmacists, foundations, volunteers, state agencies,

30  community groups, area agencies on aging, and any other

31  entities that will further the intent of this section. These


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 1  community partnerships may also be used to facilitate other

 2  pro bono benefits for eligible individuals, including, but not

 3  limited to, medical, dental, and prescription services.

 4         (7)  CONTRACTS.--The Department of Elderly Affairs may

 5  select and contract with application assistance organizations

 6  to assist eligible individuals in obtaining their prescription

 7  drugs through the manufacturers' pharmaceutical assistance

 8  programs. If the department contracts with an application

 9  assistance organization, the department shall evaluate

10  quarterly the performance of the application assistance

11  organization to ensure compliance with the contract and the

12  quality of service provided to eligible individuals.

13         (8)  REPORTS AND EVALUATIONS.--By January 1 of each

14  year, while the Sunshine for Seniors Program is operating, the

15  Department of Elderly Affairs shall report to the Legislature

16  regarding the implementation and operation of the Sunshine for

17  Seniors Program.

18         (9)  NONENTITLEMENT.--The Sunshine for Seniors Program

19  established by this section is not an entitlement. If funds

20  are insufficient to assist all eligible individuals, the

21  Department of Elderly Affairs may develop a waiting list

22  prioritized by application date.

23         Section 21.  Paragraph (b) of subsection (2), paragraph

24  (b) of subsection (4), and paragraph (a) of subsection (5) of

25  section 624.91, Florida Statutes, are amended to read:

26         624.91  The Florida Healthy Kids Corporation Act.--

27         (2)  LEGISLATIVE INTENT.--

28         (b)  It is the intent of the Legislature that the

29  Florida Healthy Kids Corporation serve as one of several

30  providers of services to children eligible for medical

31  assistance under Title XXI of the Social Security Act.


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 1  Although the corporation may serve other children, the

 2  Legislature intends the primary recipients of services

 3  provided through the corporation be school-age children with a

 4  family income below 200 percent of the federal poverty level,

 5  who do not qualify for Medicaid.  It is also the intent of the

 6  Legislature that state and local government Florida Healthy

 7  Kids funds be used to continue and expand coverage, subject to

 8  specific within available appropriations in the General

 9  Appropriations Act, to children not eligible for federal

10  matching funds under Title XXI.

11         (4)  CORPORATION AUTHORIZATION, DUTIES, POWERS.--

12         (b)  The Florida Healthy Kids Corporation shall:

13         1.  Organize school children groups to facilitate the

14  provision of comprehensive health insurance coverage to

15  children;

16         1.2.  Arrange for the collection of any family, local

17  contributions, or employer payment or premium, in an amount to

18  be determined by the board of directors, to provide for

19  payment of premiums for comprehensive insurance coverage and

20  for the actual or estimated administrative expenses;

21         2.3.  Arrange for the collection of any voluntary

22  contributions to provide for payment of premiums for children

23  who are not eligible for medical assistance under Title XXI of

24  the Social Security Act. Each fiscal year, the corporation

25  shall establish a local match policy for the enrollment of

26  non-Title-XXI-eligible children in the Healthy Kids program.

27  By May 1 of each year, the corporation shall provide written

28  notification of the amount to be remitted to the corporation

29  for the following fiscal year under that policy. Local match

30  sources may include, but are not limited to, funds provided by

31  municipalities, counties, school boards, hospitals, health


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 1  care providers, charitable organizations, special taxing

 2  districts, and private organizations. The minimum local match

 3  cash contributions required each fiscal year and local match

 4  credits shall be determined by the General Appropriations Act.

 5  The corporation shall calculate a county's local match rate

 6  based upon that county's percentage of the state's total

 7  non-Title-XXI expenditures as reported in the corporation's

 8  most recently audited financial statement. In awarding the

 9  local match credits, the corporation may consider factors

10  including, but not limited to, population density, per capita

11  income, and existing child-health-related expenditures and

12  services;

13         3.4.  Accept voluntary supplemental local match

14  contributions that comply with the requirements of Title XXI

15  of the Social Security Act for the purpose of providing

16  additional coverage in contributing counties under Title XXI;

17         4.5.  Establish the administrative and accounting

18  procedures for the operation of the corporation;

19         5.6.  Establish, with consultation from appropriate

20  professional organizations, standards for preventive health

21  services and providers and comprehensive insurance benefits

22  appropriate to children; provided that such standards for

23  rural areas shall not limit primary care providers to

24  board-certified pediatricians;

25         6.7.  Establish eligibility criteria which children

26  must meet in order to participate in the program;

27         7.8.  Establish procedures under which providers of

28  local match to, applicants to and participants in the program

29  may have grievances reviewed by an impartial body and reported

30  to the board of directors of the corporation;

31  


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 1         8.9.  Establish participation criteria and, if

 2  appropriate, contract with an authorized insurer, health

 3  maintenance organization, or insurance administrator to

 4  provide administrative services to the corporation;

 5         9.10.  Establish enrollment criteria which shall

 6  include penalties or waiting periods of not fewer than 60 days

 7  for reinstatement of coverage upon voluntary cancellation for

 8  nonpayment of family premiums;

 9         10.11.  If a space is available, establish a special

10  open enrollment period of 30 days' duration for any child who

11  is enrolled in Medicaid or Medikids if such child loses

12  Medicaid or Medikids eligibility and becomes eligible for the

13  Florida Healthy Kids program;

14         11.12.  Contract with authorized insurers or any

15  provider of health care services, meeting standards

16  established by the corporation, for the provision of

17  comprehensive insurance coverage to participants.  Such

18  standards shall include criteria under which the corporation

19  may contract with more than one provider of health care

20  services in program sites. Health plans shall be selected

21  through a competitive bid process. The maximum administrative

22  cost for a Florida Healthy Kids Corporation contract shall be

23  15 percent. The minimum medical loss ratio for a Florida

24  Healthy Kids Corporation contract shall be 85 percent. The

25  selection of health plans shall be based primarily on quality

26  criteria established by the board. The health plan selection

27  criteria and scoring system, and the scoring results, shall be

28  available upon request for inspection after the bids have been

29  awarded;

30         12.13.  Establish disenrollment criteria in the event

31  local matching funds are insufficient to cover enrollments;


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 1         13.14.  Develop and implement a plan to publicize the

 2  Florida Healthy Kids Corporation, the eligibility requirements

 3  of the program, and the procedures for enrollment in the

 4  program and to maintain public awareness of the corporation

 5  and the program;

 6         14.15.  Secure staff necessary to properly administer

 7  the corporation. Staff costs shall be funded from state and

 8  local matching funds and such other private or public funds as

 9  become available. The board of directors shall determine the

10  number of staff members necessary to administer the

11  corporation;

12         15.16.  As appropriate, enter into contracts with local

13  school boards or other agencies to provide onsite information,

14  enrollment, and other services necessary to the operation of

15  the corporation;

16         16.17.  Provide a report annually to the Governor,

17  Chief Financial Officer, Commissioner of Education, Senate

18  President, Speaker of the House of Representatives, and

19  Minority Leaders of the Senate and the House of

20  Representatives;

21         17.18.  Each fiscal year, establish a maximum number of

22  participants, on a statewide basis, who may enroll in the

23  program; and

24         18.19.  Establish eligibility criteria, premium and

25  cost-sharing requirements, and benefit packages which conform

26  to the provisions of the Florida Kidcare program, as created

27  in ss. 409.810-409.820.

28         (5)  BOARD OF DIRECTORS.--

29         (a)  The Florida Healthy Kids Corporation shall operate

30  subject to the supervision and approval of a board of

31  directors chaired by the Chief Financial Officer or her or his


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 1  designee, and composed of 10 14 other members selected for

 2  3-year terms of office as follows:

 3         1.  The Secretary of Health Care Administration, or his

 4  or her designee;

 5         1.  One member appointed by the Commissioner of

 6  Education from among three persons nominated by the Florida

 7  Association of School Administrators;

 8         2.  One member appointed by the Commissioner of

 9  Education from among three persons nominated by the Florida

10  Association of School Boards;

11         2.3.  One member appointed by the Commissioner of

12  Education from the Office of School Health Programs of the

13  Florida Department of Education;

14         3.4.  One member appointed by the Chief Financial

15  Officer Governor from among three members nominated by the

16  Florida Pediatric Society;

17         4.5.  One member, appointed by the Governor, who

18  represents the Children's Medical Services Program;

19         5.6.  One member appointed by the Chief Financial

20  Officer from among three members nominated by the Florida

21  Hospital Association;

22         7.  Two members, appointed by the Chief Financial

23  Officer, who are representatives of authorized health care

24  insurers or health maintenance organizations;

25         6.8.  One member, appointed by the Governor Chief

26  Financial Officer, who is an expert on represents the

27  Institute for child health policy;

28         7.9.  One member, appointed by the Chief Financial

29  Officer Governor, from among three members nominated by the

30  Florida Academy of Family Physicians;

31  


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 1         8.10.  One member, appointed by the Governor, who

 2  represents the state Medicaid program Agency for Health Care

 3  Administration;

 4         11.  One member, appointed by the Chief Financial

 5  Officer, from among three members nominated by the Florida

 6  Association of Counties, representing rural counties;

 7         9.12.  One member, appointed by the Chief Financial

 8  Officer Governor, from among three members nominated by the

 9  Florida Association of Counties, representing urban counties;

10  and

11         10.13.  The State Health Officer or her or his

12  designee.

13         Section 22.  Section 57 of chapter 98-288, Laws of

14  Florida, is repealed.

15         Section 23.  Effective upon this act becoming a law,

16  for the 2002-2003 state fiscal year, the Agency for Health

17  Care Administration may make additional payment of up to

18  $7,561,104 from the Grants and Donations Trust Fund and

19  $10,849,182 from the Medical Care Trust Fund to hospitals as

20  special Medicaid payments in order to use the full amount of

21  the upper payment limit available in the public hospital

22  category.

23         (1)  These funds shall be distributed as follows:

24         (a)  Statutory teaching hospitals - $1,355,991.

25         (b)  Family practice teaching hospitals - $181,291.

26         (c)  Primary care hospitals - $1,355,991.

27         (d)  Trauma hospitals - $1,290,000.

28         (e)  Rural hospitals - $931,500.

29         (f)  Hospitals receiving specific special Medicaid

30  payments not included in a payment under paragraphs (a)-(e),

31  $4,359,417.


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 1         (g)  Hospitals providing enhanced services to

 2  low-income individuals - $8,884,298.

 3         (2)  The payments shall be distributed proportionately

 4  to each hospital in the specific payment category based on the

 5  hospital's actual payments for the 2002-2003 state fiscal

 6  year. These payment amounts shall be adjusted downward in a

 7  proportionate manner as to not exceed the available upper

 8  payment limit in the public hospital category. Payment of

 9  these amounts are contingent on the state share being provided

10  through grants and donations from state, county, or other

11  local funds and approval by the Centers of Medicare and

12  Medicaid Services.

13         Section 24.  If any law that is amended by this act was

14  also amended by a law enacted at the 2003 Regular Session of

15  the Legislature, such laws shall be construed as if they had

16  been enacted during the same session of the Legislature, and

17  full effect should be given to each if that is possible.

18         Section 25.  Except as otherwise expressly provided in

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

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  


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