Senate Bill sb1226e2

CODING: Words stricken are deletions; words underlined are additions.




    CS for SB 1226                                Second Engrossed



  1                      A bill to be entitled

  2         An act relating to the long-term-care service

  3         delivery system; requiring the Department of

  4         Elderly Affairs to report to the Governor and

  5         the Legislature the results of the department's

  6         monitoring of the activities of the area

  7         agencies on aging; amending s. 400.441, F.S.;

  8         requiring the Department of Children and Family

  9         Services and the Department of Health, in

10         consultation with the agency, to adopt rules,

11         policies, and procedures that include standards

12         regarding elopement of residents; amending s.

13         409.912, F.S.; requiring the Department of

14         Elderly Affairs to assess certain nursing home

15         residents to facilitate their transition to a

16         community-based setting; amending s. 430.04,

17         F.S.; providing that the department may take

18         intermediate measures against an area agency on

19         aging if it exceeds its authority or fails to

20         adhere to the terms of its contract with the

21         department, adhere to the statutory provisions

22         or departmental rules, properly determine

23         client eligibility, or manage program budgets;

24         amending s. 430.041, F.S.; locating the Office

25         of Long-Term-Care Policy within the Department

26         of Elderly Affairs for administrative purposes

27         only; providing that the office and its

28         director shall not be subject to control,

29         supervision, or direction by the department;

30         revising the purpose of the office; replacing

31         the advisory council with an interagency


                                  1

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         coordinating team; specifying the composition

 2         of the interagency coordinating team; revising

 3         reporting requirements; amending s. 430.203,

 4         F.S.; redefining the terms "community care

 5         service system" and "lead agency"; amending s.

 6         430.205, F.S.; requiring the Department of

 7         Elderly Affairs and the Agency for Health Care

 8         Administration to develop an integrated

 9         long-term-care service-delivery system;

10         requiring the Department of Elderly Affairs and

11         the agency to phase in implementation of the

12         integrated long-term-care system; specifying

13         timeframes and activities for each

14         implementation phase; authorizing the agency to

15         seek federal waivers to implement the changes;

16         requiring the department to integrate certain

17         database systems; requiring development of

18         pilot projects; requiring the agency and the

19         department to develop capitation rates for

20         certain services; providing rulemaking

21         authority to the agency and the department;

22         requiring reports to the Governor and the

23         Legislature; creating s. 430.2053, F.S.;

24         requiring pilot projects for aging resource

25         centers; requiring an implementation plan;

26         requiring that area agencies on aging submit

27         proposals for transition to aging resource

28         centers; requiring a review of the department's

29         process for determining readiness; specifying

30         purposes and duties of an aging resource

31         center; requiring integration of certain


                                  2

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         functions of other state agencies; specifying

 2         criteria for selection of entities to become

 3         aging resource centers; specifying the duties

 4         and responsibilities of

 5         community-care-for-the-elderly providers in an

 6         area served by an aging resource center;

 7         specifying programs administered by an aging

 8         resource center; requiring rules; allowing

 9         capitated payments; requiring reports; amending

10         s. 430.502, F.S.; establishing a memory

11         disorder clinic at a hospital in Pinellas

12         County; amending s. 430.703, F.S.; revising a

13         definition; amending s. 430.7031, F.S.;

14         requiring the department and the agency to

15         review the case files of a specified percentage

16         of Medicaid nursing home residents annually for

17         the purpose of determining whether the

18         residents are able to move to community

19         placements; amending s. 430.705, F.S.;

20         providing additional eligibility requirements

21         for entities that provide services under the

22         long-term-care community diversion pilot

23         projects; requiring the annual evaluation and

24         certification of capitation rates; providing

25         additional requirements to be used in

26         developing capitation rates for the pilot

27         projects; amending s. 430.701, F.S.;

28         prescribing duties of the agency with respect

29         to limiting the diversion provider network;

30         providing an effective date.

31  


                                  3

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



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

 2  

 3         Section 1.  By January 1 of each year, the Department

 4  of Elderly Affairs shall submit to the Governor, the President

 5  of the Senate, and the Speaker of the House of Representatives

 6  a summary of the results of the department's monitoring of the

 7  activities of area agencies on aging. The report must include

 8  information about each area agency's compliance with state and

 9  federal rules pertaining to all programs administered by the

10  area agency, information about each area agency's financial

11  management of state and federally funded programs, information

12  about each agency's compliance with the terms of its contracts

13  with the department, and a summary of corrective action

14  required by the department.

15         Section 2.  Paragraph (l) is added to subsection (1) of

16  section 400.441, Florida Statutes, to read:

17         400.441  Rules establishing standards.--

18         (1)  It is the intent of the Legislature that rules

19  published and enforced pursuant to this section shall include

20  criteria by which a reasonable and consistent quality of

21  resident care and quality of life may be ensured and the

22  results of such resident care may be demonstrated.  Such rules

23  shall also ensure a safe and sanitary environment that is

24  residential and noninstitutional in design or nature.  It is

25  further intended that reasonable efforts be made to

26  accommodate the needs and preferences of residents to enhance

27  the quality of life in a facility. In order to provide safe

28  and sanitary facilities and the highest quality of resident

29  care accommodating the needs and preferences of residents, the

30  department, in consultation with the agency, the Department of

31  Children and Family Services, and the Department of Health,


                                  4

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  shall adopt rules, policies, and procedures to administer this

 2  part, which must include reasonable and fair minimum standards

 3  in relation to:

 4         (l)  The establishment of specific policies and

 5  procedures on resident elopement. Facilities shall conduct a

 6  minimum of two resident elopement drills each year. All

 7  administrators and direct care staff shall participate in the

 8  drills. Facilities shall document the drills.

 9         Section 3.  Subsection (15) of section 409.912, Florida

10  Statutes, is amended to read:

11         409.912  Cost-effective purchasing of health care.--The

12  agency shall purchase goods and services for Medicaid

13  recipients in the most cost-effective manner consistent with

14  the delivery of quality medical care.  The agency shall

15  maximize the use of prepaid per capita and prepaid aggregate

16  fixed-sum basis services when appropriate and other

17  alternative service delivery and reimbursement methodologies,

18  including competitive bidding pursuant to s. 287.057, designed

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

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

21  minimize the exposure of recipients to the need for acute

22  inpatient, custodial, and other institutional care and the

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

24  agency may establish prior authorization requirements for

25  certain populations of Medicaid beneficiaries, certain drug

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

27  and possible dangerous drug interactions. The Pharmaceutical

28  and Therapeutics Committee shall make recommendations to the

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

30  agency shall inform the Pharmaceutical and Therapeutics

31  


                                  5

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  Committee of its decisions regarding drugs subject to prior

 2  authorization.

 3         (15)(a)  The agency shall operate the Comprehensive

 4  Assessment and Review for Long-Term Care Services (CARES)

 5  nursing facility preadmission screening program to ensure that

 6  Medicaid payment for nursing facility care is made only for

 7  individuals whose conditions require such care and to ensure

 8  that long-term care services are provided in the setting most

 9  appropriate to the needs of the person and in the most

10  economical manner possible. The CARES program shall also

11  ensure that individuals participating in Medicaid home and

12  community-based waiver programs meet criteria for those

13  programs, consistent with approved federal waivers.

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

15  an interagency agreement with the Department of Elderly

16  Affairs. The agency, in consultation with the Department of

17  Elderly Affairs, may contract for any function or activity of

18  the CARES program, including any function or activity required

19  by 42 C.F.R. part 483.20, relating to preadmission screening

20  and resident review.

21         (c)  Prior to making payment for nursing facility

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

23  the nursing facility preadmission screening program has

24  determined that the individual requires nursing facility care

25  and that the individual cannot be safely served in

26  community-based programs. The nursing facility preadmission

27  screening program shall refer a Medicaid recipient to a

28  community-based program if the individual could be safely

29  served at a lower cost and the recipient chooses to

30  participate in such program.

31  


                                  6

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         (d)  For the purpose of initiating immediate

 2  prescreening and diversion assistance for individuals residing

 3  in nursing homes and in order to make families aware of

 4  alternative long-term care resources so that they may choose a

 5  more cost-effective setting for long-term placement, CARES

 6  staff shall conduct an assessment and review of a sample of

 7  individuals whose nursing home stay is expected to exceed 20

 8  days, regardless of the initial funding source for the nursing

 9  home placement. CARES staff shall provide counseling and

10  referral services to these individuals regarding choosing

11  appropriate long-term care alternatives. This paragraph does

12  not apply to continuing care facilities licensed under chapter

13  651 or to retirement communities that provide a combination of

14  nursing home, independent living, and other long-term care

15  services.

16         (e)(d)  By January 15 1 of each year, the agency shall

17  submit a report to the Legislature and the Office of

18  Long-Term-Care Policy describing the operations of the CARES

19  program. The report must describe:

20         1.  Rate of diversion to community alternative

21  programs;

22         2.  CARES program staffing needs to achieve additional

23  diversions;

24         3.  Reasons the program is unable to place individuals

25  in less restrictive settings when such individuals desired

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

27         4.  Barriers to appropriate placement, including

28  barriers due to policies or operations of other agencies or

29  state-funded programs; and

30  

31  


                                  7

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         5.  Statutory changes necessary to ensure that

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

 3  the least restrictive environment.

 4         (f)  The Department of Elderly Affairs shall track

 5  individuals over time who are assessed under the CARES program

 6  and who are diverted from nursing home placement. By January

 7  15 of each year, the department shall submit to the

 8  Legislature and the Office of Long-Term-Care Policy, a

 9  longitudinal study of the individuals who are diverted from

10  nursing home placement. The study must include:

11         1.  The demographic characteristics of the individuals

12  assessed and diverted from nursing home placement, including,

13  but not limited to, age, race, gender, frailty, caregiver

14  status, living arrangements, and geographic location;

15         2.  A summary of community services provided to

16  individuals for 1 year after assessment and diversion;

17         3.  A summary of inpatient hospital admissions for

18  individuals who have been diverted; and

19         4.  A summary of the length of time between diversion

20  and subsequent entry into a nursing home or death.

21         (g)  By July 1, 2005, the department and the Agency for

22  Health Care Administration shall report to the President of

23  the Senate and the Speaker of the House of Representatives

24  regarding the impact to the state of modifying level-of-care

25  criteria to eliminate the Intermediate II level of care.

26         Section 4.  Subsection (2) of section 430.04, Florida

27  Statutes, is amended to read:

28         430.04  Duties and responsibilities of the Department

29  of Elderly Affairs.--The Department of Elderly Affairs shall:

30         (2)  Be responsible for ensuring that each area agency

31  on aging operates in a manner to ensure that the elderly of


                                  8

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  this state receive the best services possible.  The department

 2  shall rescind designation of an area agency on aging or take

 3  intermediate measures against the agency, including corrective

 4  action, unannounced special monitoring, temporary assumption

 5  of operation of one or more programs by the department,

 6  placement on probationary status, imposing a moratorium on

 7  agency action, imposing financial penalties for

 8  nonperformance, or other administrative action pursuant to

 9  chapter 120, if the department finds that:

10         (a)  An intentional or negligent act of the agency has

11  materially affected the health, welfare, or safety of clients,

12  or substantially and negatively affected the operation of an

13  aging services program.

14         (b)  The agency lacks financial stability sufficient to

15  meet contractual obligations or that contractual funds have

16  been misappropriated.

17         (c)  The agency has committed multiple or repeated

18  violations of legal and regulatory requirements or department

19  standards.

20         (d)  The agency has failed to continue the provision or

21  expansion of services after the declaration of a state of

22  emergency.

23         (e)  The agency has exceeded its authority or otherwise

24  failed to adhere to the terms of its contract with the

25  department or has exceeded its authority or otherwise failed

26  to adhere to the provisions specifically provided by statute

27  or rule adopted by the department.

28         (f)  The agency has failed to properly determine client

29  eligibility as defined by the department or efficiently manage

30  program budgets.

31  


                                  9

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         Section 5.  Section 430.041, Florida Statutes, is

 2  amended to read:

 3         430.041  Office of Long-Term-Care Policy.--

 4         (1)  There is established in the Department of Elderly

 5  Affairs the Office of Long-Term-Care Policy to evaluate the

 6  state's long-term-care service delivery system, and make

 7  recommendations to increase the efficiency and effectiveness

 8  of government-funded long-term-care programs for availability

 9  and the use of noninstitutional settings to provide care to

10  the elderly, and to ensure coordination among the agencies

11  responsible for setting policies for funding and for

12  administering long-term-care programs for the elderly. The

13  office shall be located in the Department of Elderly Affairs

14  for administrative purposes only and shall not be subject to

15  control, supervision, or direction by the department the

16  long-term-care continuum.

17         (2)  The purpose of the Office of Long-Term-Care Policy

18  is to:

19         (a)  Ensure close communication and coordination among

20  state agencies involved in developing and administering a more

21  efficient and coordinated long-term-care service delivery

22  system in this state;

23         (b)  Identify duplication and unnecessary service

24  provision in the long-term-care system and make

25  recommendations to decrease inappropriate service provision;

26         (b)(c)  Review current programs providing

27  long-term-care services to the elderly, including those in

28  home, community-based, and institutional settings, and review

29  program evaluations to determine whether the programs are cost

30  effective, of high quality, and operating efficiently and make

31  


                                  10

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  recommendations to increase consistency and effectiveness in

 2  the state's long-term-care programs;

 3         (c)(d)  Develop specific implementation strategies and

 4  funding recommendations for promoting and implementing

 5  cost-effective home and community-based services as an

 6  alternative to institutional care, when appropriate, which

 7  coordinate and integrate the continuum of care needs of the

 8  elderly; and

 9         (d)  Recommend roles for state agencies that are

10  responsible for administering long-term-care programs for the

11  elderly and an organization framework for the planning,

12  coordination, implementation, and evaluation of long-term-care

13  programs for the elderly.

14         (e)  Assist the Office of Long-Term-Care Policy

15  Advisory Council as necessary to help implement this section.

16         (3)  The Director of the Office of Long-Term-Care

17  Policy shall be appointed by, and serve at the pleasure of,

18  the Governor. The director shall report to, and be under the

19  general supervision of, the Secretary of Elderly Affairs and

20  shall not be subject to supervision by any other employee of

21  the department.

22         (4)  The Office of Long-Term-Care Policy shall have an

23  advisory council. The purposes of the advisory council are to

24  provide assistance and direction to the office and to ensure

25  that the appropriate state agencies are properly implementing

26  recommendations from the office.

27         (a)  The advisory council shall consist of:

28         1.  A member of the Senate, appointed by the President

29  of the Senate;

30         2.  A member of the House of Representatives, appointed

31  by the Speaker of the House of Representatives;


                                  11

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         3.  The Secretary of Health Care Administration;

 2         4.  The Secretary of Elderly Affairs;

 3         5.  The Secretary of Children and Family Services;

 4         6.  The Secretary of Health;

 5         7.  The Executive Director of the Department of

 6  Veterans' Affairs;

 7         8.  Three people with broad knowledge and experience in

 8  the delivery of long-term-care services, appointed by the

 9  Governor from groups representing elderly persons; and

10         9.  Two representatives of people using long-term-care

11  services, appointed by the Governor from groups representing

12  elderly persons.

13         (b)  The council shall elect a chair from among its

14  membership to serve for a 1-year term. A chair may not serve

15  more than two consecutive terms.

16         (c)  Members shall serve without compensation, but are

17  entitled to receive reimbursement for travel and per diem as

18  provided in s. 112.061.

19         (d)  The advisory council shall meet at the call of its

20  chair or at the request of a majority of its members. During

21  its first year of existence, the advisory council shall meet

22  at least monthly.

23         (e)  Members of the advisory council appointed by the

24  Governor shall serve at the pleasure of the Governor and shall

25  be appointed to 4-year staggered terms in accordance with s.

26  20.052.

27         (4)(5)(a)  The Department of Elderly Affairs shall

28  provide administrative support and services to the Office of

29  Long-Term-Care Policy.

30         (b)  The office shall call upon appropriate agencies of

31  state government, including the centers on aging in the State


                                  12

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  University System, for assistance needed in discharging its

 2  duties.

 3         (c)  Each state agency represented on the Office of

 4  Long-Term-Care Policy Advisory Council shall make at least one

 5  employee available to work with the Office of Long-Term-Care

 6  Policy. All state agencies and universities shall assist the

 7  office in carrying out its responsibilities prescribed by this

 8  section.

 9         (d)  The Secretary of Health Care Administration, the

10  Secretary of Elderly Affairs, the Secretary of Children and

11  Family Services, the Secretary of Health, and the Executive

12  Director of the Department of Veterans' Affairs shall each

13  appoint at least one high-level employee with the authority to

14  recommend and implement agency policy and with experience in

15  the area of long-term-care service delivery and financing to

16  work with the Office of Long-Term-Care Policy, as part of an

17  interagency coordinating team. The interagency coordinating

18  team shall meet monthly with the director of the Office of

19  Long-Term-Care Policy to implement the purposes of the office.

20         (e)(d)  Each state agency shall pay from its own funds

21  any expenses related to its support of the Office of

22  Long-Term-Care Policy and its participation on the advisory

23  council. The Department of Elderly Affairs shall be

24  responsible for expenses related to participation on the

25  advisory council by members appointed by the Governor.

26         (6)(a)  By December 31 of each year 1, 2002, the office

27  shall submit to the Governor, the President of the Senate, and

28  the Speaker of the House of Representatives a advisory council

29  a preliminary report of its activities, progress made in

30  findings and recommendations on improving the long-term-care

31  continuum in this state and make recommendations. The report


                                  13

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  shall contain the activities completed by the office during

 2  the calendar year, a plan of activities for the following

 3  year, recommendations and implementation proposals for policy

 4  changes, and as well as legislative and funding

 5  recommendations that will make the system more effective and

 6  efficient. The report shall contain a specific implementation

 7  strategies, with timelines, plan for accomplishing the

 8  recommendations and proposals set out in the report.

 9  Thereafter, the office shall revise and update the report

10  annually and resubmit it to the advisory council for review

11  and comments by November 1 of each year.

12         (b)  The advisory council shall review and recommend

13  any suggested changes to the preliminary report, and each

14  subsequent annual update of the report, within 30 days after

15  the receipt of the preliminary report. Suggested revisions,

16  additions, or deletions shall be made to the Director of the

17  Office of Long-Term-Care Policy.

18         (c)  The office shall submit its final report, and each

19  subsequent annual update of the report, to the Governor and

20  the Legislature within 30 days after the receipt of any

21  revisions, additions, or deletions suggested by the advisory

22  council, or after the time such comments are due to the

23  office.

24         Section 6.  Subsection (3) and paragraphs (b) and (c)

25  of subsection (9) of section 430.203, Florida Statutes, are

26  amended to read:

27         430.203  Community care for the elderly;

28  definitions.--As used in ss. 430.201-430.207, the term:

29         (3)  "Community care service system" means a service

30  network comprising a variety of home-delivered services, day

31  care services, and other basic services, hereinafter referred


                                  14

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  to as "core services," for functionally impaired elderly

 2  persons which are provided by or through several agencies

 3  under the direction of a single lead agency.  Its purpose is

 4  to provide a continuum of care encompassing a full range of

 5  preventive, maintenance, and restorative services for

 6  functionally impaired elderly persons.

 7         (9)  "Lead agency" means an agency designated at least

 8  once every 3 years by an area agency on aging as the result of

 9  a request for proposal process to be in place no later than

10  the state fiscal year 1996-1997.

11         (b)  The area agency on aging, in consultation with the

12  department, shall may exempt from the competitive bid process

13  any contract with a provider who meets or exceeds established

14  minimum standards, as determined by the department.

15         (c)  In each community care service system the lead

16  agency must be given the authority and responsibility to

17  coordinate some or all of the services, either directly or

18  through subcontracts, for functionally impaired elderly

19  persons. These services must include case management, and may

20  include homemaker and chore services, respite care, adult day

21  care, personal care services, home-delivered meals,

22  counseling, information and referral, and emergency home

23  repair services.  The lead agency must compile community care

24  statistics and monitor, when applicable, subcontracts with

25  agencies providing core services.

26         Section 7.  Subsection (6) of section 430.205, Florida

27  Statutes, is amended to read:

28         430.205  Community care service system.--

29         (6)  Notwithstanding other requirements of this

30  chapter, the Department of Elderly Affairs and the Agency for

31  Health Care Administration shall develop an a model system to


                                  15

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  transition all state-funded services for elderly individuals

 2  in one of the department's planning and service areas to a

 3  managed, integrated long-term-care delivery system under the

 4  direction of a single entity.

 5         (a)  The duties of the integrated model system shall

 6  include organizing and administering service delivery for the

 7  elderly, obtaining contracts for services with providers in

 8  each service the area, monitoring the quality of services

 9  provided, determining levels of need and disability for

10  payment purposes, and other activities determined by the

11  department and the agency in order to operate an integrated

12  the model system.

13         (b)  During the 2004-2005 state fiscal year:

14         1.  The agency, in consultation with the department,

15  shall develop an implementation plan to integrate the Frail

16  Elder Option into the Nursing Home Diversion pilot project and

17  each program's funds into one capitated program serving the

18  aged. Beginning July 1, 2004, the agency may not enroll

19  additional individuals in the Frail Elder Option.

20         2.  The agency, in consultation with the department,

21  shall integrate the Aged and Disabled Adult Medicaid waiver

22  program and the Assisted Living for the Elderly Medicaid

23  waiver program and each program's funds into one

24  fee-for-service Medicaid waiver program serving the aged and

25  disabled. Once the programs are integrated, funding to provide

26  care in assisted-living facilities under the new waiver may

27  not be less than the amount appropriated in the 2003-2004

28  fiscal year for the Assisted Living for the Elderly Medicaid

29  waiver.

30         a.  The agency shall seek federal waivers necessary to

31  integrate these waiver programs.


                                  16

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         b.  The agency and the department shall reimburse

 2  providers for case management services on a capitated basis

 3  and develop uniform standards for case management in this

 4  fee-for-service Medicaid waiver program. The coordination of

 5  acute and chronic medical services for individuals shall be

 6  included in the capitated rate for case management services.

 7         c.  The agency and the department shall adopt any rules

 8  necessary to comply with or administer these requirements,

 9  effect and implement interagency agreements between the

10  department and the agency, and comply with federal

11  requirements.

12         3.  The Legislature finds that preservation of the

13  historic aging network of lead agencies is essential to the

14  well-being of Florida's elderly population. The Legislature

15  finds that the Florida aging network constitutes a system of

16  essential community providers which should be nurtured and

17  assisted to develop systems of operations which allow the

18  gradual assumption of responsibility and financial risk for

19  managing a client through the entire continuum of long-term

20  care services within the area the lead agency is currently

21  serving, and which allow lead agency providers to develop

22  managed systems of service delivery. The department, in

23  consultation with the agency, shall therefore:

24         a.  Develop a demonstration project in which existing

25  community care for the elderly lead agencies are assisted in

26  transferring their business model and the service delivery

27  system within their current community care service area, to

28  enable assumption over a period of time, of full risk as a

29  community diversion pilot project contractor providing

30  long-term care services in the areas of operation. The

31  department, in consultation with the agency and the Department


                                  17

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  of Children and Family Services, shall develop an

 2  implementation plan for no more than three lead agencies by

 3  October 31, 2004.

 4         b.  In the demonstration area, a community care for the

 5  elderly lead agency shall be initially reimbursed on a prepaid

 6  or fixed-sum basis for services provided under the newly

 7  integrated fee-for-service Medicaid waiver. By the end of the

 8  third year of operation, the demonstration shall include all

 9  services under the long-term care community diversion pilot

10  project.

11         c.  During the first year of operation, the department,

12  in consultation with the agency may place providers at risk to

13  provide nursing home services for the enrolled individuals who

14  are participating in the demonstration project. During the

15  3-year development period, the agency and the department may

16  limit the level of custodial nursing home risk that the

17  administering entities assume. Under risk-sharing

18  arrangements, during the first 3 years of operation, the

19  department, in consultation with the agency, may reimburse the

20  administering entity for the cost of providing nursing home

21  care for Medicaid-eligible participants who have been

22  permanently placed and remain in a nursing home for more than

23  1 year, or may disenroll such participants from the

24  demonstration project.

25         d.  The agency, in consultation with the department,

26  shall develop reimbursement rates based on the historical cost

27  experience of the state in providing long-term care and

28  nursing home services under Medicaid waiver programs to the

29  population 65 years of age and older in the area served by the

30  pilot project.

31  


                                  18

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         e.  The department, in consultation with the agency,

 2  shall ensure that the entity or entities receiving prepaid or

 3  fixed-sum reimbursement are assisted in developing internal

 4  management and financial control systems necessary to manage

 5  the risk associated with providing services under a prepaid or

 6  fixed-sum rate system.

 7         f.  If the department and the agency share risk of

 8  custodial nursing home placement, payment rates during the

 9  first 3 years of operation shall be set at not more than 100

10  percent of the costs to the agency and the department of

11  providing equivalent services to the population within the

12  area of the pilot project for the year prior to the year in

13  which the pilot project is implemented, adjusted forward to

14  account for inflation and policy changes in the Medicaid

15  program. In subsequent years, the rate shall be negotiated,

16  based on the cost experience of the entity in providing

17  contracted services, but may not exceed 95 percent of the

18  amount that would have been paid in the pilot project area

19  absent the prepaid or fixed sum reimbursement methodology.

20         g.  Community care for the elderly lead agencies that

21  have operated for a period of at least 20 years, which provide

22  Medicare-certified services to elders, and which have

23  developed a system of service provision by health care

24  volunteers shall be given priority in the selection of the

25  pilot project if they meet the minimum requirements specified

26  in the competitive procurement.

27         h.  The agency and the department shall adopt rules

28  necessary to comply with or administer these requirements,

29  effect and implement interagency agreements between the agency

30  and the department, and comply with federal requirements.

31  


                                  19

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         i.  The department and the agency shall seek federal

 2  waivers necessary to implement the requirements of this

 3  section.

 4         j.  The Department of Elderly Affairs shall conduct or

 5  contract for an evaluation of the demonstration project. The

 6  department shall submit the evaluation to the Governor and the

 7  Legislature by January 1, 2007. The evaluation must address

 8  the effectiveness of the pilot project in providing a

 9  comprehensive system of appropriate and high-quality long-term

10  care services to elders in the least restrictive setting and

11  make recommendations on expanding the project to other parts

12  of the state.

13         4.  The department, in consultation with the agency,

14  shall study the integration of the database systems for the

15  Comprehensive Assessment and Review of Long-Term Care (CARES)

16  program and the Client Information and Referral Tracking

17  System (CIRTS) and develop a plan for database integration.

18  The department shall submit the plan to the Governor, the

19  President of the Senate, and the Speaker of the House of

20  Representatives by December 31, 2004.

21         5.  The agency, in consultation with the department,

22  shall work with the fiscal agent for the Medicaid program to

23  develop a service utilization reporting system that operates

24  through the fiscal agent for the capitated plans.

25         (c)  During the 2005-2006 state fiscal year:

26         1.  The agency, in consultation with the department,

27  shall monitor the newly integrated programs and report on the

28  progress of those programs to the Governor, the President of

29  the Senate, and the Speaker of the House of Representatives by

30  June 30, 2006. The report must include an initial evaluation

31  of the programs in their early stages following the evaluation


                                  20

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  plan developed by the department, in consultation with the

 2  agency and the selected contractor.

 3         2.  The department shall monitor the pilot projects for

 4  resource centers on aging and report on the progress of those

 5  projects to the Governor, the President of the Senate, and the

 6  Speaker of the House of Representatives by June 30, 2006. The

 7  report must include an evaluation of the implementation

 8  process in its early stages.

 9         3.  The department, in consultation with the agency,

10  shall integrate the database systems for the Comprehensive

11  Assessment and Review of Long-Term Care (CARES) program and

12  the Client Information and Referral Tracking System (CIRTS)

13  into a single operating assessment information system by June

14  30, 2006.

15         4.  The agency, in consultation with the department

16  shall integrate the Frail Elder Option into the Nursing Home

17  Diversion pilot project and each program's funds into one

18  capitated program serving the aged.

19         a.  The department, in consultation with the agency,

20  shall develop uniform standards for case management in this

21  newly integrated capitated system.

22         b.  The agency shall seek federal waivers necessary to

23  integrate these programs.

24         c.  The department, in consultation with the agency,

25  shall adopt any rules necessary to comply with or administer

26  these requirements, effect and implement interagency

27  agreements between the department and the agency, and comply

28  with federal requirements.

29         (d)  During the 2006-2007 state fiscal year:

30         1.  The agency, in consultation with the department,

31  shall evaluate the Alzheimer's Disease waiver program and the


                                  21

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  Adult Day Health Care waiver program to assess whether

 2  providing limited intensive services through these waiver

 3  programs produce better outcomes for individuals than

 4  providing those services through the fee-for-service or

 5  capitated programs that provide a larger array of services.

 6         2.  The agency, in consultation with the department,

 7  shall begin discussions with the federal Centers for Medicare

 8  and Medicaid Services regarding the inclusion of Medicare into

 9  the integrated long-term care system. By December 31, 2006,

10  the agency shall provide to the Governor, the President of the

11  Senate, and the Speaker of the House of Representatives a plan

12  for including Medicare in the integrated long-term care

13  system.

14         (b)  The agency and the department shall integrate all

15  funding for services to individuals over the age of 65 in the

16  model planning and service areas into a single per-person

17  per-month payment rate, except that funds for Medicaid

18  behavioral health care services are exempt from this section.

19  The funds to be integrated shall include:

20         1.  Community-care-for-the-elderly funds;

21         2.  Home-care-for-the-elderly funds;

22         3.  Local services program funds;

23         4.  Contracted services funds;

24         5.  Alzheimer's disease initiative funds;

25         6.  Medicaid home and community-based waiver services

26  funds;

27         7.  Funds for all Medicaid services authorized in ss.

28  409.905 and 409.906, including Medicaid nursing home services;

29  and

30  

31  


                                  22

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         8.  Funds paid for Medicare premiums, coinsurance and

 2  deductibles for persons dually eligible for Medicaid and

 3  Medicare as prescribed in s. 409.908(13).

 4  

 5  The department and the agency shall not make payments for

 6  services for people age 65 and older except through the model

 7  delivery system.

 8         (c)  The entity selected to administer the model system

 9  shall develop a comprehensive health and long-term-care

10  service delivery system through contracts with providers of

11  medical, social, and long-term-care services sufficient to

12  meet the needs of the population age 65 and older. The entity

13  selected to administer the model system shall not directly

14  provide services other than intake, assessment, and referral

15  services.

16         (d)  The department shall determine which of the

17  department's planning and services areas is to be designated

18  as a model area by means of a request for proposals. The

19  department shall select an area to be designated as a model

20  area and the entity to administer the model system based on

21  demonstration of capacity of the entity to:

22         1.  Develop contracts with providers currently under

23  contract with the department, area agencies on aging, or

24  community-care-for-the-elderly lead agencies;

25         2.  Provide a comprehensive system of appropriate

26  medical and long-term-care services that provides high-quality

27  medical and social services to assist older individuals in

28  remaining in the least restrictive setting;

29         3.  Demonstrate a quality assurance and quality

30  improvement system satisfactory to the department and the

31  agency;


                                  23

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         4.  Develop a system to identify participants who have

 2  special health care needs such as polypharmacy, mental health

 3  and substance abuse problems, falls, chronic pain, nutritional

 4  deficits, and cognitive deficits, in order to respond to and

 5  meet these needs;

 6         5.  Use a multidisciplinary team approach to

 7  participant management which ensures that information is

 8  shared among providers responsible for delivering care to a

 9  participant;

10         6.  Ensure medical oversight of care plans and service

11  delivery, regular medical evaluation of care plans, and the

12  availability of medical consultation for case managers and

13  service coordinators;

14         7.  Develop, monitor, and enforce quality-of-care

15  requirements;

16         8.  Secure subcontracts with providers of medical,

17  nursing home, and community-based long-term-care services

18  sufficient to assure access to and choice of providers;

19         9.  Ensure a system of case management and service

20  coordination which includes educational and training standards

21  for case managers and service coordinators;

22         10.  Develop a business plan that considers the ability

23  of the applicant to organize and operate a risk-bearing

24  entity;

25         11.  Furnish evidence of adequate liability insurance

26  coverage or an adequate plan of self-insurance to respond to

27  claims for injuries arising out of the furnishing of health

28  care; and

29         12.  Provide, through contract or otherwise, for

30  periodic review of its medical facilities as required by the

31  department and the agency.


                                  24

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  

 2  The department shall give preference in selecting an area to

 3  be designated as a model area to that in which the

 4  administering entity is an existing area agency on aging or

 5  community-care-for-the-elderly lead agency demonstrating the

 6  ability to perform the functions described in this paragraph.

 7         (e)  The department in consultation with the selected

 8  entity shall develop a statewide proposal regarding the

 9  long-term use and structure of a program that addresses a risk

10  pool to reduce financial risk.

11         (f)  The department and the agency shall develop

12  capitation rates based on the historical cost experience of

13  the state in providing acute and long-term-care services to

14  the population over 65 years of age in the area served.

15         1.  Payment rates in the first 2 years of operation

16  shall be set at no more than 100 percent of the costs to the

17  state of providing equivalent services to the population of

18  the model area for the year prior to the year in which the

19  model system is implemented, adjusted forward to account for

20  inflation and population growth. In subsequent years, the rate

21  shall be negotiated based on the cost experience of the model

22  system in providing contracted services, but may not exceed 95

23  percent of the amount that would have been paid by the state

24  in the model planning and service area absent the model

25  integrated service delivery system.

26         2.  The agency and the department may develop

27  innovative risk-sharing agreements that limit the level of

28  custodial nursing home risk that the administering entity

29  assumes, consistent with the intent of the Legislature to

30  reduce the use and cost of nursing home care. Under

31  risk-sharing arrangements, the agency and the department may


                                  25

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  reimburse the administering entity for the cost of providing

 2  nursing home care for Medicaid-eligible participants who have

 3  been permanently placed and remain in nursing home care for

 4  more than 1 year.

 5         (g)  The department and the Agency for Health Care

 6  Administration shall seek federal waivers necessary to

 7  implement the requirements of this section.

 8         (h)  The Department of Children and Family Services

 9  shall develop a streamlined and simplified eligibility system

10  and shall outstation a sufficient number and quality of

11  eligibility-determination staff with the administering entity

12  to assure determination of Medicaid eligibility for the

13  integrated service delivery system in the model planning and

14  service area within 10 days after receipt of a complete

15  application.

16         (i)  The Department of Elderly Affairs shall make

17  arrangements to outstation a sufficient number of nursing home

18  preadmission screening staff with the administering entity to

19  assure timely assessment of level of need for long-term-care

20  services in the model area.

21         (j)  The Department of Elderly Affairs shall conduct or

22  contract for an evaluation of the pilot project. The

23  department shall submit the evaluation to the Governor and the

24  Legislature by January 1, 2005.  The evaluation must address

25  the effects of the pilot project on the effectiveness of the

26  entity providing a comprehensive system of appropriate and

27  high-quality medical and long-term-care services to elders in

28  the least restrictive setting and make recommendations on a

29  phased-in implementation expansion for the rest of the state.

30         Section 8.  Section 430.2053, Florida Statutes, is

31  created to read:


                                  26

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         430.2053  Aging resource centers.--

 2         (1)  The department, in consultation with the Agency

 3  for Health Care Administration and the Department of Children

 4  and Family Services, shall develop pilot projects for aging

 5  resource centers. By October 31, 2004, the department, in

 6  consultation with the agency and the Department of Children

 7  and Family Services, shall develop an implementation plan for

 8  aging resource centers and submit the plan to the Governor,

 9  the President of the Senate, and the Speaker of the House of

10  Representatives. The plan must include qualifications for

11  designation as a center, the functions to be performed by each

12  center, and a process for determining that a current area

13  agency on aging is ready to assume the functions of an aging

14  resource center.

15         (2)  Each area agency on aging shall develop, in

16  consultation with the existing community care for the elderly

17  lead agencies within their planning and service areas, a

18  proposal that describes the process the area agency on aging

19  intends to undertake to transition to an aging resource center

20  prior to July 1, 2005, and that describes the area agency's

21  compliance with the requirements of this section. The

22  proposals must be submitted to the department prior to

23  December 31, 2004. The department shall evaluate all proposals

24  for readiness and, prior to March 1, 2005, shall select three

25  area agencies on aging which meet the requirements of this

26  section to begin the transition to aging resource centers.

27  Those area agencies on aging which are not selected to begin

28  the transition to aging resource centers shall, in

29  consultation with the department and the existing community

30  care for the elderly lead agencies within their planning and

31  service areas, amend their proposals as necessary and resubmit


                                  27

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  them to the department prior to July 1, 2005. The department

 2  may transition additional area agencies to aging resource

 3  centers as it determines that area agencies are in compliance

 4  with the requirements of this section.

 5         (3)  The Auditor General and the Office of Program

 6  Policy Analysis and Government Accountability (OPPAGA) shall

 7  jointly review and assess the department's process for

 8  determining an area agency's readiness to transition to an

 9  aging resource center.

10         (a)  The review must, at a minimum, address the

11  appropriateness of the department's criteria for selection of

12  an area agency to transition to an aging resource center, the

13  instruments applied, the degree to which the department

14  accurately determined each area agency's compliance with the

15  readiness criteria, the quality of the technical assistance

16  provided by the department to an area agency in correcting any

17  weaknesses identified in the readiness assessment, and the

18  degree to which each area agency overcame any identified

19  weaknesses.

20         (b)  Reports of these reviews must be submitted to the

21  appropriate substantive and appropriations committees in the

22  Senate and the House of Representatives on March 1 and

23  September 1 of each year until full transition to aging

24  resource centers has been accomplished statewide, except that

25  the first report must be submitted by February 1, 2005, and

26  must address all readiness activities undertaken through

27  December 31, 2004. The perspectives of all participants in

28  this review process must be included in each report.

29         (4)  The purposes of an aging resource center shall be:

30         (a)  To provide Florida's elders and their families

31  with a locally focused, coordinated approach to integrating


                                  28

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  information and referral for all available services for elders

 2  with the eligibility determination entities for state and

 3  federally funded long-term-care services.

 4         (b)  To provide for easier access to long-term-care

 5  services by Florida's elders and their families by creating

 6  multiple access points to the long-term-care network that flow

 7  through one established entity with wide community

 8  recognition.

 9         (5)  The duties of an aging resource center are to:

10         (a)  Develop referral agreements with local community

11  service organizations, such as senior centers, existing elder

12  service providers, volunteer associations, and other similar

13  organizations, to better assist clients who do not need or do

14  not wish to enroll in programs funded by the department or the

15  agency. The referral agreements must also include a protocol,

16  developed and approved by the department, which provides

17  specific actions that an aging resource center and local

18  community service organizations must take when an elder or an

19  elder's representative seeking information on long-term-care

20  services contacts a local community service organization prior

21  to contacting the aging resource center. The protocol shall be

22  designed to ensure that elders and their families are able to

23  access information and services in the most efficient and

24  least cumbersome manner possible.

25         (b)  Provide an initial screening of all clients who

26  request long-term care services to determine whether the

27  person would be most appropriately served through any

28  combination of federally funded programs, state-funded

29  programs, locally funded or community volunteer programs, or

30  private funding for services.

31  


                                  29

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         (c)  Determine eligibility for the programs and

 2  services listed in subsection (11) for persons residing within

 3  the geographic area served by the aging resource center and

 4  determine a priority ranking for services which is based upon

 5  the potential recipient's frailty level and likelihood of

 6  institutional placement without such services.

 7         (d)  Manage the availability of financial resources for

 8  the programs and services listed in subsection (11) for

 9  persons residing within the geographic area served by the

10  aging resource center.

11         (e)  When financial resources become available, refer a

12  client to the most appropriate entity to begin receiving

13  services. The aging resource center shall make referrals to

14  lead agencies for service provision that ensure that

15  individuals who are vulnerable adults in need of services

16  pursuant to s. 415.104(3)(b), or who are victims of abuse,

17  neglect, or exploitation in need of immediate services to

18  prevent further harm and are referred by the adult protective

19  services program, are given primary consideration for

20  receiving community-care-for-the-elderly services in

21  compliance with the requirements of s. 430.205(5)(a) and that

22  other referrals for services are in compliance with s.

23  430.205(5)(b).

24         (f)  Convene a work group to advise in the planning,

25  implementation, and evaluation of the aging resource center.

26  The work group shall be comprised of representatives of local

27  service providers, Alzheimer's Association chapters, housing

28  authorities, social service organizations, advocacy groups,

29  representatives of clients receiving services through the

30  aging resource center, and any other persons or groups as

31  determined by the department. The aging resource center, in


                                  30

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  consultation with the work group, must develop annual program

 2  improvement plans that shall be submitted to the department

 3  for consideration. The department shall review each annual

 4  improvement plan and make recommendations on how to implement

 5  the components of the plan.

 6         (g)  Enhance the existing area agency on aging in each

 7  planning and service area by integrating, either physically or

 8  virtually, the staff and services of the area agency on aging

 9  with the staff of the department's local CARES Medicaid

10  nursing home preadmission screening unit and a sufficient

11  number of staff from the Department of Children and Family

12  Services' Economic Self Sufficiency Unit necessary to

13  determine the financial eligibility for all persons age 60 and

14  older residing within the area served by the aging resource

15  center that are seeking Medicaid services, Supplemental

16  Security Income, and food stamps.

17         (6)  The department shall select the entities to become

18  aging resource centers based on each entity's readiness and

19  ability to perform the duties listed in subsection (5) and the

20  entity's:

21         (a)  Expertise in the needs of each target population

22  the center proposes to serve and a thorough knowledge of the

23  providers that serve these populations.

24         (b)  Strong connections to service providers, volunteer

25  agencies, and community institutions.

26         (c)  Expertise in information and referral activities.

27         (d)  Knowledge of long-term-care resources, including

28  resources designed to provide services in the least

29  restrictive setting.

30         (e)  Financial solvency and stability.

31  


                                  31

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         (f)  Ability to collect, monitor, and analyze data in a

 2  timely and accurate manner, along with systems that meet the

 3  department's standards.

 4         (g)  Commitment to adequate staffing by qualified

 5  personnel to effectively perform all functions.

 6         (h)  Ability to meet all performance standards

 7  established by the department.

 8         (7)  The aging resource center shall have a governing

 9  body which shall be the same entity described in s. 20.41(7),

10  and an executive director who may be the same person as

11  described in s. 20.41(8). The governing body shall annually

12  evaluate the performance of the executive director.

13         (8)  The aging resource center may not be a provider of

14  direct services other than information and referral services

15  and screening.

16         (9)  The aging resource center must agree to allow the

17  department to review any financial information the department

18  determines is necessary for monitoring or reporting purposes,

19  including financial relationships.

20         (10)  The duties and responsibilities of the community

21  care for the elderly lead agencies within each area served by

22  an aging resource center shall be to:

23         (a)  Develop strong community partnerships to maximize

24  the use of community resources for the purpose of assisting

25  elders to remain in their community settings for as long as it

26  is safely possible.

27         (b)  Conduct comprehensive assessments of clients that

28  have been determined eligible and develop a care plan

29  consistent with established protocols that ensures that the

30  unique needs of each client are met.

31  


                                  32

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         (11)  The services to be administered through the aging

 2  resource center shall include those funded by the following

 3  programs:

 4         (a)  Community care for the elderly.

 5         (b)  Home care for the elderly.

 6         (c)  Contracted services.

 7         (d)  Alzheimer's disease initiative.

 8         (e)  Aged and disabled adult Medicaid waiver.

 9         (f)  Assisted living for the frail elderly Medicaid

10  waiver.

11         (g)  Older Americans Act.

12         (12)  The department shall, prior to designation of an

13  aging resource center, develop by rule operational and quality

14  assurance standards and outcome measures to ensure that

15  clients receiving services through all long-term-care programs

16  administered through an aging resource center are receiving

17  the appropriate care they require and that contractors and

18  subcontractors are adhering to the terms of their contracts

19  and are acting in the best interests of the clients they are

20  serving, consistent with the intent of the Legislature to

21  reduce the use of and cost of nursing home care. The

22  department shall by rule provide operating procedures for

23  aging resource centers, which shall include:

24         (a)  Minimum standards for financial operation,

25  including audit procedures.

26         (b)  Procedures for monitoring and sanctioning of

27  service providers.

28         (c)  Minimum standards for technology utilized by the

29  aging resource center.

30         (d)  Minimum staff requirements which shall ensure that

31  the aging resource center employs sufficient quality and


                                  33

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  quantity of staff to adequately meet the needs of the elders

 2  residing within the area served by the aging resource center.

 3         (e)  Minimum accessibility standards, including hours

 4  of operation.

 5         (f)  Minimum oversight standards for the governing body

 6  of the aging resource center to ensure its continuous

 7  involvement in, and accountability for, all matters related to

 8  the development, implementation, staffing, administration, and

 9  operations of the aging resource center.

10         (g)  Minimum education and experience requirements for

11  executive directors and other executive staff positions of

12  aging resource centers.

13         (h)  Minimum requirements regarding any executive staff

14  positions that the aging resource center must employ and

15  minimum requirements that a candidate must meet in order to be

16  eligible for appointment to such positions.

17         (13)  In an area in which the department has designated

18  an area agency on aging as an aging resource center, the

19  department and the agency shall not make payments for the

20  services listed in subsection (11) and the Long-Term Care

21  Community Diversion Project for such persons who were not

22  screened and enrolled through the aging resource center.

23         (14)  Each aging resource center shall enter into a

24  memorandum of understanding with the department for

25  collaboration with the CARES unit staff. The memorandum of

26  understanding shall outline the staff person responsible for

27  each function and shall provide the staffing levels necessary

28  to carry out the functions of the aging resource center.

29         (15)  Each aging resource center shall enter into a

30  memorandum of understanding with the Department of Children

31  and Family Services for collaboration with the Economic


                                  34

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  Self-Sufficiency Unit staff. The memorandum of understanding

 2  shall outline which staff persons are responsible for which

 3  functions and shall provide the staffing levels necessary to

 4  carry out the functions of the aging resource center.

 5         (16)  If any of the state activities described in this

 6  section are outsourced, either in part or in whole, the

 7  contract executing the outsourcing shall mandate that the

 8  contractor or its subcontractors shall, either physically or

 9  virtually, execute the provisions of the memorandum of

10  understanding instead of the state entity whose function the

11  contractor or subcontractor now performs.

12         (17)  In order to be eligible to begin transitioning to

13  an aging resource center, an area agency on aging board must

14  ensure that the area agency on aging which it oversees meets

15  all of the minimum requirements set by law and in rule.

16         (18)  The department shall monitor the three initial

17  projects for aging resource centers and report on the progress

18  of those projects to the Governor, the President of the

19  Senate, and the Speaker of the House of Representatives by

20  June 30, 2005. The report must include an evaluation of the

21  implementation process.

22         (19)(a)  Once an aging resource center is operational,

23  the department, in consultation with the agency, may develop

24  capitation rates for any of the programs administered through

25  the aging resource center. Capitation rates for programs shall

26  be based on the historical cost experience of the state in

27  providing those same services to the population age 60 or

28  older residing within each area served by an aging resource

29  center. Each capitated rate may vary by geographic area as

30  determined by the department.

31  


                                  35

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         (b)  The department and the agency may determine for

 2  each area served by an aging resource center whether it is

 3  appropriate, consistent with federal and state laws and

 4  regulations, to develop and pay separate capitated rates for

 5  each program administered through the aging resource center or

 6  to develop and pay capitated rates for service packages which

 7  include more than one program or service administered through

 8  the aging resource center.

 9         (c)  Once capitation rates have been developed and

10  certified as actuarially sound, the department and the agency

11  may pay service providers the capitated rates for services

12  when appropriate.

13         (d)  The department, in consultation with the agency,

14  shall annually reevaluate and recertify the capitation rates,

15  adjusting forward to account for inflation, programmatic

16  changes.

17         (20)  The department, in consultation with the agency,

18  shall submit to the Governor, the President of the Senate, and

19  the Speaker of the House of Representatives, by December 1,

20  2006, a report addressing the feasibility of administering the

21  following services through aging resource centers beginning

22  July 1, 2007:

23         (a)  Medicaid nursing home services.

24         (b)  Medicaid transportation services.

25         (c)  Medicaid hospice care services.

26         (d)  Medicaid intermediate care services.

27         (e)  Medicaid prescribed drug services.

28         (f)  Medicaid assistive care services.

29         (g)  Any other long-term-care program or Medicaid

30  service.

31  


                                  36

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         (21)  This section shall not be construed to allow an

 2  aging resource center to restrict, manage or impede the local

 3  fund-raising activities of service providers.

 4         Section 9.  Subsection (1) of section 430.502, Florida

 5  Statutes, is amended to read:

 6         430.502  Alzheimer's disease; memory disorder clinics

 7  and day care and respite care programs.--

 8         (1)  There is established:

 9         (a)  A memory disorder clinic at each of the three

10  medical schools in this state;

11         (b)  A memory disorder clinic at a major private

12  nonprofit research-oriented teaching hospital, and may fund a

13  memory disorder clinic at any of the other affiliated teaching

14  hospitals;

15         (c)  A memory disorder clinic at the Mayo Clinic in

16  Jacksonville;

17         (d)  A memory disorder clinic at the West Florida

18  Regional Medical Center;

19         (e)  The East Central Florida Memory Disorder Clinic at

20  the Joint Center for Advanced Therapeutics and Biomedical

21  Research of the Florida Institute of Technology and Holmes

22  Regional Medical Center, Inc.;

23         (f)  A memory disorder clinic at the Orlando Regional

24  Healthcare System, Inc.;

25         (g)  A memory disorder center located in a public

26  hospital that is operated by an independent special hospital

27  taxing district that governs multiple hospitals and is located

28  in a county with a population greater than 800,000 persons;

29         (h)  A memory disorder clinic at St. Mary's Medical

30  Center in Palm Beach County;

31  


                                  37

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         (i)  A memory disorder clinic at Tallahassee Memorial

 2  Healthcare;

 3         (j)  A memory disorder clinic at Lee Memorial Hospital

 4  created by chapter 63-1552, Laws of Florida, as amended; and

 5         (k)  A memory disorder clinic at Sarasota Memorial

 6  Hospital in Sarasota County; and ,

 7         (l)  A memory disorder clinic at Morton Plant Hospital,

 8  Clearwater, in Pinellas County,

 9  

10  for the purpose of conducting research and training in a

11  diagnostic and therapeutic setting for persons suffering from

12  Alzheimer's disease and related memory disorders.  However,

13  memory disorder clinics funded as of June 30, 1995, shall not

14  receive decreased funding due solely to subsequent additions

15  of memory disorder clinics in this subsection.

16         Section 10.  Subsection (7) of section 430.703, Florida

17  Statutes, is amended to read:

18         430.703  Definitions.--As used in this act, the term:

19         (7)  "Other qualified provider" means an entity

20  licensed under chapter 400 that demonstrates a long-term care

21  continuum, posts a $500,000 performance bond, and meets all

22  the financial and quality assurance requirements for a

23  provider service network as specified in s. 409.912 and all

24  requirements pursuant to an interagency agreement between the

25  agency and the department.

26         Section 11.  Subsection (2) of section 430.7031,

27  Florida Statutes, is amended to read:

28         430.7031  Nursing home transition program.--The

29  department and the Agency for Health Care Administration:

30         (2)  Shall collaboratively work to identify long-stay

31  nursing home residents who are able to move to community


                                  38

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1  placements, and to provide case management and supportive

 2  services to such individuals while they are in nursing homes

 3  to assist such individuals in moving to less expensive and

 4  less restrictive settings. CARES program staff shall annually

 5  review at least 20 percent of the case files for nursing home

 6  residents who are Medicaid recipients to determine which

 7  nursing home residents are able to move to community

 8  placements.

 9         Section 12.  Section 430.705, Florida Statutes, is

10  amended to read:

11         430.705  Implementation of the long-term care community

12  diversion pilot projects.--

13         (1)  In designing and implementing the community

14  diversion pilot projects, the department shall work in

15  consultation with the agency.

16         (2)  The department shall select projects whose design

17  and providers demonstrate capacity to maximize the placement

18  of participants in the least restrictive appropriate care

19  setting. The department shall select providers that have a

20  plan administrator who is dedicated to the diversion pilot

21  project and project staff who perform the necessary project

22  administrative functions, including data collection,

23  reporting, and analysis. The department shall select providers

24  that:

25         (a)  Are determined by the Department of Financial

26  Services to:

27         1.  Meet surplus requirements specified in s. 641.225;

28         2.  Demonstrate the ability to comply with the

29  standards for financial solvency specified in s. 641.285;

30         3.  Demonstrate the ability to provide for the prompt

31  payment of claims as specified in s. 641.3155; and


                                  39

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         4.  Demonstrate the ability to provide technology with

 2  the capability for data collection that meets the security

 3  requirements of the federal Health Insurance Portability and

 4  Accountability Act of 1996, 42 C.F.R. ss. 160 and 164.

 5         (b)  Demonstrate the ability to contract with multiple

 6  providers that provide the same type of service.

 7         (3)  The agency shall seek federal waivers necessary to

 8  place a cap on the number of diversion pilot project providers

 9  in each geographic area.

10         (4)  Pursuant to 42 C.F.R. s. 438.6(c), the agency, in

11  consultation with the department, shall annually reevaluate

12  and recertify the capitation rates for the diversion pilot

13  projects. The agency, in consultation with the department,

14  shall secure the utilization and cost data for Medicaid and

15  Medicare beneficiaries served by the program which shall be

16  used in developing rates for the diversion pilot projects.

17         (5)  In order to achieve rapid enrollment into the

18  program and efficient diversion of applicants from nursing

19  home care, the department and the agency shall allow

20  enrollment of Medicaid beneficiaries on the date that

21  eligibility for the community diversion pilot project is

22  approved. The provider shall receive a prorated capitated rate

23  for those enrollees who are enrolled after the first of each

24  month.

25         (6)(3)  The department shall provide to prospective

26  participants a choice of participating in a community

27  diversion pilot project or any other appropriate placement

28  available.  To the extent possible, individuals shall be

29  allowed to choose their care providers, including long-term

30  care service providers affiliated with an individual's

31  religious faith or denomination.


                                  40

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         (7)(4)  The department shall enroll participants.

 2  Providers shall not directly enroll participants in community

 3  diversion pilot projects.

 4         (5)  In selecting the pilot project area, the

 5  department shall consider the following factors in the area:

 6         (a)  The nursing home occupancy level.

 7         (b)  The number of certificates of need awarded for

 8  nursing home beds for which renovation, expansion, or

 9  construction has not begun.

10         (c)  The annual number of additional nursing home beds.

11         (d)  The annual number of nursing home admissions.

12         (e)  The adequacy of community-based long-term care

13  service providers.

14         (8)(6)  The department may require participants to

15  contribute to their cost of care in an amount not to exceed

16  the cost-sharing required of Medicaid-eligible nursing home

17  residents.

18         (9)(7)  Community diversion pilot projects must:

19         (a)  Provide services for participants that are of

20  sufficient quality, quantity, type, and duration to prevent or

21  delay nursing facility placement.

22         (b)  Integrate acute and long-term care services, and

23  the funding sources for such services, as feasible.

24         (c)  Encourage individuals, families, and communities

25  to plan for their long-term care needs.

26         (d)  Provide skilled and intermediate nursing facility

27  care for participants who cannot be adequately cared for in

28  noninstitutional settings.

29         Section 13.  Section 430.701, Florida Statutes, is

30  amended to read:

31         430.701  Legislative findings and intent.--


                                  41

CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 1226                                Second Engrossed



 1         (1)  The Legislature finds that state expenditures for

 2  long-term care services continue to increase at a rapid rate

 3  and that Florida faces increasing pressure in its efforts to

 4  meet the long-term care needs of the public.  It is the intent

 5  of the Legislature that the Department of Elderly Affairs, in

 6  consultation with the Agency for Health Care Administration,

 7  implement long-term care community diversion pilot projects to

 8  test the effectiveness of managed care and outcome-based

 9  reimbursement principles when applied to long-term care.

10         (2)  The agency may seek federal approval in advance of

11  approval of its formal waiver application to limit the

12  diversion provider network by freezing enrollment of providers

13  at current levels when an area already has three or more

14  providers or, in an expansion area, when enrollment reaches a

15  level of three providers. This subsection does not prevent the

16  department from approving a provider to expand service to

17  additional counties within a planning and service area for

18  which the provider is already approved to serve.

19         Section 14.  This act shall take effect upon becoming a

20  law.

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  


                                  42

CODING: Words stricken are deletions; words underlined are additions.