Senate Bill sb1734

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    Florida Senate - 2005                                  SB 1734

    By Senator Rich





    34-1411-05

  1                      A bill to be entitled

  2         An act relating to children's health programs;

  3         amending s. 409.818, F.S.; requiring the

  4         Department of Health to develop a plan for

  5         publicizing the Florida KidCare program;

  6         requiring the Agency for Health Care

  7         Administration to adopt rules to comply with

  8         the Florida KidCare Act and federal

  9         requirements; amending s. 624.91, F.S.;

10         revising the time period for penalties or

11         waiting periods for reinstatement of coverage

12         within the Florida Healthy Kids Corporation;

13         deleting the requirement that the corporation

14         develop a plan to publicize the Florida Healthy

15         Kids Corporation; providing an effective date.

16  

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

18  

19         Section 1.  Subsections (1), (2), and (3) of section

20  409.818, Florida Statutes, are amended to read:

21         409.818  Administration.--In order to implement ss.

22  409.810-409.820, the following agencies shall have the

23  following duties:

24         (1)  The Department of Children and Family Services

25  shall:

26         (a)  Develop a simplified eligibility application

27  mail-in form to be used for determining the eligibility of

28  children for coverage under the Florida KidCare program, in

29  consultation with the agency, the Department of Health, and

30  the Florida Healthy Kids Corporation. The simplified

31  eligibility application form must include an item that

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    Florida Senate - 2005                                  SB 1734
    34-1411-05




 1  provides an opportunity for the applicant to indicate whether

 2  coverage is being sought for a child with special health care

 3  needs. Families applying for children's Medicaid coverage must

 4  also be able to use the simplified application form without

 5  having to pay a premium.

 6         (b)  Establish and maintain the eligibility

 7  determination process under the program except as specified in

 8  subsection (5). The department shall directly, or through the

 9  services of a contracted third-party administrator, establish

10  and maintain a process for determining eligibility of children

11  for coverage under the program. The eligibility determination

12  process must be used solely for determining eligibility of

13  applicants for health benefits coverage under the program. The

14  eligibility determination process must include an initial

15  determination of eligibility for any coverage offered under

16  the program, as well as a redetermination or reverification of

17  eligibility each subsequent 6 months. Effective January 1,

18  1999, a child who has not attained the age of 5 and who has

19  been determined eligible for the Medicaid program is eligible

20  for coverage for 12 months without a redetermination or

21  reverification of eligibility. In conducting an eligibility

22  determination, the department shall determine if the child has

23  special health care needs. The department, in consultation

24  with the Agency for Health Care Administration and the Florida

25  Healthy Kids Corporation, shall develop procedures for

26  redetermining eligibility which enable a family to easily

27  update any change in circumstances which could affect

28  eligibility. The department may accept changes in a family's

29  status as reported to the department by the Florida Healthy

30  Kids Corporation without requiring a new application from the

31  family. Redetermination of a child's eligibility for Medicaid

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    Florida Senate - 2005                                  SB 1734
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 1  may not be linked to a child's eligibility determination for

 2  other programs.

 3         (c)  Inform program applicants about eligibility

 4  determinations and provide information about eligibility of

 5  applicants to Medicaid, Medikids, the Children's Medical

 6  Services Network, and the Florida Healthy Kids Corporation,

 7  and to insurers and their agents, through a centralized

 8  coordinating office.

 9         (d)  Adopt rules necessary for conducting program

10  Medicaid eligibility functions.

11         (2)  The Department of Health shall:

12         (a)  Design an eligibility intake process for the

13  program, in coordination with the Department of Children and

14  Family Services, the agency, and the Florida Healthy Kids

15  Corporation. The eligibility intake process may include local

16  intake points that are determined by the Department of Health

17  in coordination with the Department of Children and Family

18  Services.

19         (b)  Chair a state-level coordinating council to review

20  and make recommendations concerning the implementation and

21  operation of the program. The coordinating council shall

22  include representatives from the department, the Department of

23  Children and Family Services, the agency, the Florida Healthy

24  Kids Corporation, the Office of Insurance Regulation of the

25  Financial Services Commission, local government, health

26  insurers, health maintenance organizations, health care

27  providers, families participating in the program, and

28  organizations representing low-income families.

29         (c)  In consultation with the Florida Healthy Kids

30  Corporation and the Department of Children and Family

31  

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    Florida Senate - 2005                                  SB 1734
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 1  Services, establish a toll-free telephone line to assist

 2  families with questions about the program.

 3         (d)  Adopt rules necessary to implement outreach

 4  activities.

 5         (e)  Develop a plan to publicize the requirements of

 6  all components of the Florida KidCare program and the

 7  procedures for enrolling in the KidCare program and maintain

 8  public awareness of all Florida KidCare programs. The KidCare

 9  partner agencies shall implement the plan.

10         (3)  The Agency for Health Care Administration, under

11  the authority granted in s. 409.914(1), shall:

12         (a)  Calculate the premium assistance payment necessary

13  to comply with the premium and cost-sharing limitations

14  specified in s. 409.816. The premium assistance payment for

15  each enrollee in a health insurance plan participating in the

16  Florida Healthy Kids Corporation shall equal the premium

17  approved by the Florida Healthy Kids Corporation and the

18  Office of Insurance Regulation of the Financial Services

19  Commission pursuant to ss. 627.410 and 641.31, less any

20  enrollee's share of the premium established within the

21  limitations specified in s. 409.816. The premium assistance

22  payment for each enrollee in an employer-sponsored health

23  insurance plan approved under ss. 409.810-409.820 shall equal

24  the premium for the plan adjusted for any benchmark benefit

25  plan actuarial equivalent benefit rider approved by the Office

26  of Insurance Regulation pursuant to ss. 627.410 and 641.31,

27  less any enrollee's share of the premium established within

28  the limitations specified in s. 409.816. In calculating the

29  premium assistance payment levels for children with family

30  coverage, the agency shall set the premium assistance payment

31  

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    Florida Senate - 2005                                  SB 1734
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 1  levels for each child proportionately to the total cost of

 2  family coverage.

 3         (b)  Annually calculate the program enrollment ceiling

 4  based on estimated per child premium assistance payments and

 5  the estimated appropriation available for the program.

 6         (c)  Make premium assistance payments to health

 7  insurance plans on a periodic basis. The agency may use its

 8  Medicaid fiscal agent or a contracted third-party

 9  administrator in making these payments.  The agency may

10  require health insurance plans that participate in the

11  Medikids program or employer-sponsored group health insurance

12  to collect premium payments from an enrollee's family.

13  Participating health insurance plans shall report premium

14  payments collected on behalf of enrollees in the program to

15  the agency in accordance with a schedule established by the

16  agency.

17         (d)  Monitor compliance with quality assurance and

18  access standards developed under s. 409.820.

19         (e)  Establish a mechanism for investigating and

20  resolving complaints and grievances from program applicants,

21  enrollees, and health benefits coverage providers, and

22  maintain a record of complaints and confirmed problems. In the

23  case of a child who is enrolled in a health maintenance

24  organization, the agency must use the provisions of s. 641.511

25  to address grievance reporting and resolution requirements.

26         (f)  Approve health benefits coverage for participation

27  in the program, following certification by the Office of

28  Insurance Regulation under subsection (4).

29         (g)  Adopt rules necessary to comply with or administer

30  ss. 409.810-409.20 and all rules necessary to comply with

31  federal requirements, including, at a minimum, rules

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    Florida Senate - 2005                                  SB 1734
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 1  specifying policies, procedures, and criteria for the

 2  following activities: for calculating premium assistance

 3  payment levels, calculating the program enrollment ceiling,

 4  making premium assistance payments, monitoring access and

 5  quality assurance standards, investigating and resolving

 6  complaints and grievances, administering the Medikids program,

 7  and approving health benefits coverage, and complying with

 8  application requirements, including documentation

 9  requirements, eligibility determinations, eligibility

10  redeterminations, enrollee premium payment requirements,

11  cancellation of coverage, reinstatement of coverage, open

12  enrollment, disenrollment procedures, applicant and enrollee

13  notification requirements, and application and enrollment

14  time-processing standards.

15  

16  The agency is designated the lead state agency for Title XXI

17  of the Social Security Act for purposes of receipt of federal

18  funds, for reporting purposes, and for ensuring compliance

19  with federal regulations and rules and for the adoption of and

20  compliance with state regulations and rules. State rules must

21  be adopted within 6 months after the effective date of this

22  act.

23         Section 2.  Paragraph (b) of subsection (5) of section

24  624.91, Florida Statutes, is amended to read:

25         624.91  The Florida Healthy Kids Corporation Act.--

26         (5)  CORPORATION AUTHORIZATION, DUTIES, POWERS.--

27         (b)  The Florida Healthy Kids Corporation shall:

28         1.  Arrange for the collection of any family, local

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

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

31  

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    Florida Senate - 2005                                  SB 1734
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 1  payment of premiums for comprehensive insurance coverage and

 2  for the actual or estimated administrative expenses.

 3         2.  Arrange for the collection of any voluntary

 4  contributions to provide for payment of premiums for children

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

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

 7  shall establish a local match policy for the enrollment of

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

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

10  notification of the amount to be remitted to the corporation

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

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

13  municipalities, counties, school boards, hospitals, health

14  care providers, charitable organizations, special taxing

15  districts, and private organizations. The minimum local match

16  cash contributions required each fiscal year and local match

17  credits shall be determined by the General Appropriations Act.

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

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

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

21  most recently audited financial statement. In awarding the

22  local match credits, the corporation may consider factors

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

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

25  services.

26         3.  Subject to the provisions of s. 409.8134, accept

27  voluntary supplemental local match contributions that comply

28  with the requirements of Title XXI of the Social Security Act

29  for the purpose of providing additional coverage in

30  contributing counties under Title XXI.

31  

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 1         4.  Establish the administrative and accounting

 2  procedures for the operation of the corporation.

 3         5.  Establish, with consultation from appropriate

 4  professional organizations, standards for preventive health

 5  services and providers and comprehensive insurance benefits

 6  appropriate to children, provided that such standards for

 7  rural areas shall not limit primary care providers to

 8  board-certified pediatricians.

 9         6.  Determine eligibility for children seeking to

10  participate in the Title XXI-funded components of the Florida

11  KidCare program consistent with the requirements specified in

12  s. 409.814, as well as the non-Title-XXI-eligible children as

13  provided in subsection (3).

14         7.  Establish procedures under which providers of local

15  match to, applicants to and participants in the program may

16  have grievances reviewed by an impartial body and reported to

17  the board of directors of the corporation.

18         8.  Establish participation criteria and, if

19  appropriate, contract with an authorized insurer, health

20  maintenance organization, or third-party administrator to

21  provide administrative services to the corporation.

22         9.  Establish enrollment criteria which shall include

23  penalties or waiting periods of no more not fewer than 30 60

24  days for reinstatement of coverage upon voluntary cancellation

25  for nonpayment of family premiums.

26         10.  Contract with authorized insurers or any provider

27  of health care services, meeting standards established by the

28  corporation, for the provision of comprehensive insurance

29  coverage to participants. Such standards shall include

30  criteria under which the corporation may contract with more

31  than one provider of health care services in program sites.

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    Florida Senate - 2005                                  SB 1734
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 1  Health plans shall be selected through a competitive bid

 2  process. The Florida Healthy Kids Corporation shall purchase

 3  goods and services in the most cost-effective manner

 4  consistent with the delivery of quality medical care. The

 5  maximum administrative cost for a Florida Healthy Kids

 6  Corporation contract shall be 15 percent. For health care

 7  contracts, the minimum medical loss ratio for a Florida

 8  Healthy Kids Corporation contract shall be 85 percent. For

 9  dental contracts, the remaining compensation to be paid to the

10  authorized insurer or provider under a Florida Healthy Kids

11  Corporation contract shall be no less than an amount which is

12  85 percent of premium; to the extent any contract provision

13  does not provide for this minimum compensation, this section

14  shall prevail. The health plan selection criteria and scoring

15  system, and the scoring results, shall be available upon

16  request for inspection after the bids have been awarded.

17         11.  Establish disenrollment criteria in the event

18  local matching funds are insufficient to cover enrollments.

19         12.  Develop and implement a plan to publicize the

20  Florida Healthy Kids Corporation, the eligibility requirements

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

22  program and to maintain public awareness of the corporation

23  and the program.

24         12.13.  Secure staff necessary to properly administer

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

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

27  become available. The board of directors shall determine the

28  number of staff members necessary to administer the

29  corporation.

30         13.14.  Provide a report annually to the Governor,

31  Chief Financial Officer, Commissioner of Education, Senate

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    Florida Senate - 2005                                  SB 1734
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 1  President, Speaker of the House of Representatives, and

 2  Minority Leaders of the Senate and the House of

 3  Representatives.

 4         14.15.  Establish benefit packages which conform to the

 5  provisions of the Florida KidCare program, as created in ss.

 6  409.810-409.820.

 7         Section 3.  This act shall take effect upon becoming a

 8  law.

 9  

10            *****************************************

11                          SENATE SUMMARY

12    Requires the Department of Health to develop a plan for
      publicizing the Florida KidCare program. Requires the
13    Agency for Health Care Administration to adopt rules to
      comply with the Florida KidCare Act and federal
14    requirements. Revises the time period for penalties or
      waiting periods for reinstatement of coverage within the
15    Florida Healthy Kids Corporation. Deletes the requirement
      to develop a plan to publicize the Florida Healthy Kids
16    Corporation.

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