Senate Bill sb2364

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    Florida Senate - 2005                                  SB 2364

    By Senator Fasano





    11-1125A-05

  1                      A bill to be entitled

  2         An act relating to elderly affairs; amending s.

  3         430.205, F.S.; deleting the requirement for the

  4         Agency for Health Care Administration to

  5         develop a plan to integrate a plan for frail

  6         elderly persons into a diversion pilot program;

  7         deleting the agency's requirement to integrate

  8         two separate Medicaid waiver programs into one

  9         waiver program; deleting the requirement to

10         seek federal waivers for these waiver programs;

11         requiring the agency and the Department of

12         Elderly Affairs to reimburse providers and

13         develop standards for case management within a

14         certain Medicaid waiver program; authorizing

15         the coordinating of certain medical services to

16         be included in the capitated rate for case

17         management services; deleting the agency's

18         requirements to implement interagency

19         agreements; providing reimbursement for an

20         elderly lead agency on a prepaid or fixed-sum

21         basis for certain services under a particular

22         diversion pilot project; clarifying that the

23         lead agency be reimbursed for all services by

24         the third year of operation; revising the basis

25         under which the agency is required to develop

26         reimbursement rates; deleting the method of

27         rate of payment for custodial nursing home

28         placement beyond the first 3 years; deleting

29         the department's requirements to study and

30         develop a plan for the integration of certain

31         database systems and submit the plan to the

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    Florida Senate - 2005                                  SB 2364
    11-1125A-05




 1         Legislature; amending s. 430.7031, F.S.;

 2         deleting the requirement for certain program

 3         staff to annually review a certain number of

 4         case files to find certain nursing home

 5         residents who are eligible for possible

 6         community placement; providing an effective

 7         date.

 8  

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

10  

11         Section 1.  Paragraphs (b) and (c) of subsection (6) of

12  section 430.205, Florida Statutes, are amended to read:

13         430.205  Community care service system.--

14         (6)  Notwithstanding other requirements of this

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

16  Health Care Administration shall develop an integrated

17  long-term-care delivery system.

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

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

20  shall develop an implementation plan to integrate the Frail

21  Elder Option into the Nursing Home Diversion pilot project and

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

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

24  additional individuals in the Frail Elder Option.

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

26  shall integrate the Aged and Disabled Adult Medicaid waiver

27  program and the Assisted Living for the Elderly Medicaid

28  waiver program and each program's funds into one

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

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

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

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    Florida Senate - 2005                                  SB 2364
    11-1125A-05




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

 2  fiscal year for the Assisted Living for the Elderly Medicaid

 3  waiver.

 4         a.  The agency shall seek federal waivers necessary to

 5  integrate these waiver programs.

 6         1.b.  The agency and the department shall reimburse

 7  providers for case management services on a capitated basis

 8  and develop uniform standards for case management within the

 9  Aged and Disabled Adult in this fee-for-service Medicaid

10  waiver program. The coordination of acute and chronic medical

11  services for individuals may shall be included in the

12  capitated rate for case management services.

13         c.  The agency, in consultation with and the

14  department, shall adopt any rules necessary to comply with or

15  administer these requirements, effect and implement

16  interagency agreements between the department and the agency,

17  and comply with federal requirements.

18         2.3.  The Legislature finds that preservation of the

19  historic aging network of lead agencies is essential to the

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

21  finds that the Florida aging network constitutes a system of

22  essential community providers which should be nurtured and

23  assisted to develop systems of operations which allow the

24  gradual assumption of responsibility and financial risk for

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

26  care services within the area the lead agency is currently

27  serving, and which allow lead agency providers to develop

28  managed systems of service delivery. The department, in

29  consultation with the agency, shall therefore:

30         a.  Develop a demonstration project in which existing

31  community care for the elderly lead agencies are assisted in

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    Florida Senate - 2005                                  SB 2364
    11-1125A-05




 1  transferring their business model and the service delivery

 2  system within their current community care service area to

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

 4  community diversion pilot project contractor providing

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

 6  department, in consultation with the agency and the Department

 7  of Children and Family Services, shall develop an

 8  implementation plan for no more than three lead agencies by

 9  October 31, 2004.

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

11  elderly lead agency shall be initially reimbursed on a prepaid

12  or fixed-sum basis for all home and community-based services

13  provided under the long-term care community diversion pilot

14  project newly integrated fee-for-service Medicaid waiver. By

15  the end of the third year of operation, the lead agency shall

16  be reimbursed on a prepaid or fixed-sum basis for

17  demonstration project shall include all services provided

18  under the long-term care community diversion pilot project.

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

20  in consultation with the agency, may place providers at risk

21  to provide nursing home services for the enrolled individuals

22  who are participating in the demonstration project. During the

23  3-year development period, the agency and the department may

24  limit the level of custodial nursing home risk that the

25  administering entities assume. Under risk-sharing

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

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

28  administering entity for the cost of providing nursing home

29  care for Medicaid-eligible participants who have been

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

31  

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    Florida Senate - 2005                                  SB 2364
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 1  1 year, or may disenroll such participants from the

 2  demonstration project.

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

 4  shall develop reimbursement rates based on the federally

 5  approved, actuarially certified rate methodology for the

 6  long-term care community diversion pilot project historical

 7  cost experience of the state in providing long-term care and

 8  nursing home services under Medicaid waiver programs to the

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

10  pilot project.

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

12  shall ensure that the entity or entities receiving prepaid or

13  fixed-sum reimbursement are assisted in developing internal

14  management and financial control systems necessary to manage

15  the risk associated with providing services under a prepaid or

16  fixed-sum rate system.

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

18  custodial nursing home placement, payment rates during the

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

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

21  providing equivalent services to the population within the

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

23  which the pilot project is implemented, adjusted forward to

24  account for inflation and policy changes in the Medicaid

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

26  based on the cost experience of the entity in providing

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

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

29  absent the prepaid or fixed sum reimbursement methodology.

30         g.  Community care for the elderly lead agencies that

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

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    Florida Senate - 2005                                  SB 2364
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 1  Medicare-certified services to elders, and which have

 2  developed a system of service provision by health care

 3  volunteers shall be given priority in the selection of the

 4  pilot project if they meet the minimum requirements specified

 5  in the competitive procurement.

 6         h.  The agency and the department shall adopt rules

 7  necessary to comply with or administer these requirements,

 8  effect and implement interagency agreements between the agency

 9  and the department, and comply with federal requirements.

10         i.  The department and the agency shall seek federal

11  waivers necessary to implement the requirements of this

12  section.

13         j.  The Department of Elderly Affairs shall conduct or

14  contract for an evaluation of the demonstration project. The

15  department shall submit the evaluation to the Governor and the

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

17  the effectiveness of the pilot project in providing a

18  comprehensive system of appropriate and high-quality,

19  long-term care services to elders in the least restrictive

20  setting and make recommendations on expanding the project to

21  other parts of the state. This sub-subparagraph is subject to

22  an appropriation by the Legislature.

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

24  shall study the integration of the database systems for the

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

26  program and the Client Information and Referral Tracking

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

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

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

30  Representatives by December 31, 2004.

31  

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    Florida Senate - 2005                                  SB 2364
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 1         3.5.  The agency, in consultation with the department,

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

 3  develop a service utilization reporting system that operates

 4  through the fiscal agent for the capitated plans.

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

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

 7  shall monitor the newly integrated programs and report on the

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

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

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

11  of the programs in their early stages following the evaluation

12  plan developed by the department, in consultation with the

13  agency and the selected contractor.

14         2.  The department shall monitor the pilot projects for

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

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

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

18  report must include an evaluation of the implementation

19  process in its early stages.

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

21  shall integrate the database systems for the Comprehensive

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

23  program and the Client Information and Referral Tracking

24  System (CIRTS) into a single operating assessment information

25  system by June 30, 2006.

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

27  shall integrate the Frail Elder Option into the Nursing Home

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

29  capitated program serving the aged.

30  

31  

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    Florida Senate - 2005                                  SB 2364
    11-1125A-05




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

 2  shall develop uniform standards for case management in this

 3  newly integrated capitated system.

 4         b.  The agency shall seek federal waivers necessary to

 5  integrate these programs.

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

 7  shall adopt any rules necessary to comply with or administer

 8  these requirements, effect and implement interagency

 9  agreements between the department and the agency, and comply

10  with federal requirements.

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

12  Statutes, is amended to read:

13         430.7031  Nursing home transition program.--The

14  department and the Agency for Health Care Administration:

15         (2)  Shall collaboratively work to identify nursing

16  home residents who are able to move to community placements,

17  and to provide case management and supportive services to such

18  individuals while they are in nursing homes to assist such

19  individuals to move in moving to less expensive and less

20  restrictive settings. CARES program staff shall annually

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

22  residents who are Medicaid recipients to determine which

23  nursing home residents are able to move to community

24  placements.

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

26  law.

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    Florida Senate - 2005                                  SB 2364
    11-1125A-05




 1            *****************************************

 2                          SENATE SUMMARY

 3    Deletes the Agency for Health Care Administration's
      requirement to develop a plan to integrate a certain plan
 4    for frail elderly persons into a diversion pilot program.
      Deletes the agency's requirement to integrate two
 5    separate Medicaid waiver programs into one waiver
      program. Requires the agency and the Department of
 6    Elderly Affairs to reimburse providers and develop
      standards for case management within a certain Medicaid
 7    waiver program. Authorizes the coordinating of certain
      medical services to be included in the capitated rate for
 8    case management services. Provides reimbursement for an
      elderly lead agency on a prepaid or fixed-sum basis for
 9    certain services under a particular diversion pilot
      project. Clarifies that the lead agency be reimbursed for
10    all services by the third year of operation. Revises the
      basis in which the agency is required to develop
11    reimbursement rates. Deletes the method of rate of
      payment for custodial nursing home placement beyond the
12    first 3 years of operation. Deletes the department's
      requirements to study and develop a plan for the
13    integration of certain database systems. Deletes the
      requirement for certain program staff to annually review
14    a certain number of case files to find certain nursing
      home residents who are eligible for possible community
15    placement.

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