SENATE AMENDMENT
    Bill No. CS for SB 1226
    Amendment No. ___   Barcode 173614
                            CHAMBER ACTION
              Senate                               House
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       04/27/2004 09:54 AM         .                    
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11  Senator Fasano moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         On page 29, between lines 5 and 6,
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16  insert:  
17         (10)  The Legislature finds that preservation of the
18  historic aging network of service providers is essential to
19  the well-being of Florida's elderly population. The
20  Legislature finds that the Florida aging network constitutes a
21  system of essential community providers which should be
22  nurtured and assisted to develop systems of operations which
23  allow the gradual assumption of responsibility and financial
24  risk for managing the entire continuum of long-term-care
25  services and which allow these providers to develop managed
26  systems of service delivery. The department and the agency
27  shall therefore:
28         (a)  Develop a demonstration system in which existing
29  community care for the elderly lead agencies are assisted in
30  transitioning their business model and the service delivery
31  system within their current community care service area, to
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    6:47 PM   04/23/04                              s1226c1c-11c9k

SENATE AMENDMENT Bill No. CS for SB 1226 Amendment No. ___ Barcode 173614 1 enable assumption over a period of time of full risk as a 2 diversion pilot project contractor providing long-term-care 3 services in their areas of operation. The department, in 4 consultation with the Agency for Health Care Administration 5 and the Department of Children and Family Services, shall 6 develop an implementation plan for three lead agencies by 7 October 31, 2004. 8 (b) In the demonstration system, a community care for 9 the elderly lead agency shall be initially reimbursed on a 10 prepaid or fixed-sum basis for services provided under the 11 Aged and Disabled Adult Medicaid waiver program, the Assisted 12 Living for the Elderly Medicaid Waiver Program, state-funded 13 programs serving the aged, including community care for the 14 elderly, home care for the elderly, and the Alzheimer's 15 disease initiative. By the end of the third year of operation, 16 the demonstration shall include services under the 17 long-term-care community diversion pilot project. 18 (c) During the first year of operation, the department 19 and the agency may place the provider at risk to provide the 20 nursing home services for the enrolled individuals who are 21 participating in the demonstration project. During the 3-year 22 development period, the agency and the department may limit 23 the level of custodial nursing home risk that the 24 administering entity assumes, consistent with the intent of 25 the Legislature to reduce the use and cost of nursing home 26 care. Under risk-sharing arrangements, during the first 3 27 years of operation, the agency and the department may 28 reimburse the administering entity for the cost of providing 29 nursing home care for Medicaid-eligible participants who have 30 been permanently placed and remain in nursing home care for 31 more than 1 year, or may disenroll such participants from the 2 6:47 PM 04/23/04 s1226c1c-11c9k
SENATE AMENDMENT Bill No. CS for SB 1226 Amendment No. ___ Barcode 173614 1 demonstration project. 2 (d) The agency and the department shall develop 3 reimbursement rates based on the historical cost experience of 4 the state in providing long-term care and nursing home 5 services under Medicaid waiver programs and providing 6 state-funded long-term care services to the population older 7 than 60 years of age in the area served by the pilot project. 8 (e) The agency, in consultation with the department, 9 shall ensure that the entity or entities receiving prepaid or 10 fixed-sum reimbursement are assisted in developing internal 11 management and financial control systems necessary to manage 12 the risk associated with providing services under a prepaid or 13 fixed-sum rate system. 14 (f) If the agency and the department share risk of 15 custodial nursing home placement, payment rates during the 16 first 3 years of operation shall be set at not more than 100 17 percent of the costs to the agency and the department of 18 providing equivalent services to the population within the 19 area of the pilot project for the year prior to the year in 20 which the pilot project is implemented, adjusted forward to 21 account for inflation and policy changes of the Medicaid 22 program. In subsequent years, the rate shall be negotiated, 23 based on the cost experience of the entity in providing 24 contracted services, but may not exceed 95 percent of the 25 amount that would have been paid in the area of the pilot 26 project absent the prepaid or fixed sum reimbursement 27 methodology. 28 (g) Community care for the elderly lead agencies which 29 have operated for a period of at least 20 years, which operate 30 a Medicare-certified home health agency, and which have 31 developed a system of service provision by health care 3 6:47 PM 04/23/04 s1226c1c-11c9k
SENATE AMENDMENT Bill No. CS for SB 1226 Amendment No. ___ Barcode 173614 1 volunteers shall be given priority in the selection of pilot 2 projects if they meet the minimum requirements specified in 3 the competitive procurement. 4 (h) In order to facilitate the development of the 5 demonstration project, the agency, subject to appropriations 6 included in the General Appropriation Act, shall advance 7 $500,000, if requested by the lead agency, for the purpose of 8 funding development costs for each demonstration project 9 provider. The terms of repayment may not extend beyond 6 years 10 from the date of funding. 11 (i) The agency and the department shall adopt any 12 rules necessary to comply with or administer these 13 requirements, effect and implement interagency agreements 14 between the agency and the department, and comply with federal 15 requirements. 16 (j) The department and the agency shall seek federal 17 waivers necessary to implement the requirements of this 18 section, including waivers available from the federal 19 Assistant Secretary on Aging necessary to include Older 20 Americans Act services in the demonstration project. 21 (k) The Department of Elderly Affairs shall conduct or 22 contract for an evaluation of the demonstration project. The 23 department shall submit the evaluation to the Governor and the 24 Legislature by January 1, 2006. The evaluation must address 25 the effects of the demonstration pilot project on the 26 effectiveness of the project in providing a comprehensive 27 system of appropriate and high-quality long-term-care services 28 to elders in the least restrictive setting and make 29 recommendations on implementation expansion for other parts of 30 the state. 31 4 6:47 PM 04/23/04 s1226c1c-11c9k
SENATE AMENDMENT Bill No. CS for SB 1226 Amendment No. ___ Barcode 173614 1 ================ T I T L E A M E N D M E N T =============== 2 And the title is amended as follows: 3 On page 3, line 3, after the first semicolon, 4 5 insert: 6 requiring the department and the agency to 7 undertake activities to support existing 8 elderly service providers; providing for 9 funding, risk-sharing, and risk-management 10 systems; requiring the agency to advance funds 11 subject to an appropriation; authorizing the 12 department and the agency to adopt rules; 13 requiring the department and the agency to seek 14 federal waivers; 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 5 6:47 PM 04/23/04 s1226c1c-11c9k