Amendment
Bill No. 0390
Amendment No. 313937
CHAMBER ACTION
Senate House
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1Representative(s) Bean offered the following:
2
3     Amendment (with title amendment)
4     Remove everything after the enacting clause and insert:
5     Section 1.  Paragraph (a) of subsection (3) of section
6400.23, Florida Statutes, is amended to read:
7     400.23  Rules; evaluation and deficiencies; licensure
8status.--
9     (3)(a)  The agency shall adopt rules providing minimum
10staffing requirements for nursing homes. These requirements
11shall include, for each nursing home facility, a minimum
12certified nursing assistant staffing of 2.3 hours of direct care
13per resident per day beginning January 1, 2002, increasing to
142.6 hours of direct care per resident per day beginning January
151, 2003, and increasing to 2.9 hours of direct care per resident
16per day beginning July 1, 2006. Beginning January 1, 2002, no
17facility shall staff below one certified nursing assistant per
1820 residents, and a minimum licensed nursing staffing of 1.0
19hour of direct resident care per resident per day but never
20below one licensed nurse per 40 residents. Nursing assistants
21employed under s. 400.211(2) may be included in computing the
22staffing ratio for certified nursing assistants only if they
23provide nursing assistance services to residents on a full-time
24basis. Each nursing home must document compliance with staffing
25standards as required under this paragraph and post daily the
26names of staff on duty for the benefit of facility residents and
27the public. The agency shall recognize the use of licensed
28nurses for compliance with minimum staffing requirements for
29certified nursing assistants, provided that the facility
30otherwise meets the minimum staffing requirements for licensed
31nurses and that the licensed nurses are performing the duties of
32a certified nursing assistant. Unless otherwise approved by the
33agency, licensed nurses counted toward the minimum staffing
34requirements for certified nursing assistants must exclusively
35perform the duties of a certified nursing assistant for the
36entire shift and not also be counted toward the minimum staffing
37requirements for licensed nurses. If the agency approved a
38facility's request to use a licensed nurse to perform both
39licensed nursing and certified nursing assistant duties, the
40facility must allocate the amount of staff time specifically
41spent on certified nursing assistant duties for the purpose of
42documenting compliance with minimum staffing requirements for
43certified and licensed nursing staff. In no event may the hours
44of a licensed nurse with dual job responsibilities be counted
45twice.
46     Section 2.  Subsection (5) of section 409.904, Florida
47Statutes, is amended to read:
48     409.904  Optional payments for eligible persons.--The
49agency may make payments for medical assistance and related
50services on behalf of the following persons who are determined
51to be eligible subject to the income, assets, and categorical
52eligibility tests set forth in federal and state law. Payment on
53behalf of these Medicaid eligible persons is subject to the
54availability of moneys and any limitations established by the
55General Appropriations Act or chapter 216.
56     (5)  Subject to specific federal authorization, a
57postpartum woman living in a family that has an income that is
58at or below 185 percent of the most current federal poverty
59level is eligible for family planning services as specified in
60s. 409.905(3) for a period of up to 24 months following a loss
61of Medicaid benefits pregnancy for which Medicaid paid for
62pregnancy-related services.
63     Section 3.  Paragraph (d) of subsection (5) of section
64409.905, Florida Statutes, is amended to read:
65     409.905  Mandatory Medicaid services.--The agency may make
66payments for the following services, which are required of the
67state by Title XIX of the Social Security Act, furnished by
68Medicaid providers to recipients who are determined to be
69eligible on the dates on which the services were provided. Any
70service under this section shall be provided only when medically
71necessary and in accordance with state and federal law.
72Mandatory services rendered by providers in mobile units to
73Medicaid recipients may be restricted by the agency. Nothing in
74this section shall be construed to prevent or limit the agency
75from adjusting fees, reimbursement rates, lengths of stay,
76number of visits, number of services, or any other adjustments
77necessary to comply with the availability of moneys and any
78limitations or directions provided for in the General
79Appropriations Act or chapter 216.
80     (5)  HOSPITAL INPATIENT SERVICES.--The agency shall pay for
81all covered services provided for the medical care and treatment
82of a recipient who is admitted as an inpatient by a licensed
83physician or dentist to a hospital licensed under part I of
84chapter 395. However, the agency shall limit the payment for
85inpatient hospital services for a Medicaid recipient 21 years of
86age or older to 45 days or the number of days necessary to
87comply with the General Appropriations Act.
88     (d)  The agency shall implement a hospitalist program in
89certain high-volume participating hospitals, select counties, or
90statewide. The program shall require hospitalists to authorize
91and manage Medicaid recipients' hospital admissions and lengths
92of stay. Individuals who are dually eligible for Medicare and
93Medicaid are exempted from this requirement. Medicaid
94participating physicians and other practitioners with hospital
95admitting privileges shall coordinate and review admissions of
96Medicaid recipients with the hospitalist. The agency may
97competitively bid a contract for selection of a qualified
98organization to provide hospitalist services. The qualified
99organization shall employ board certified physicians who are
100full-time dedicated employees of the contractor and have no
101outside practice. Where used, the hospitalist program shall
102replace the existing hospital utilization review program. The
103agency is authorized to seek federal waivers to implement this
104program.
105     Section 4.  Paragraph (b) of subsection (1) and subsection
106(23) of section 409.906, Florida Statutes, are amended to read:
107     409.906  Optional Medicaid services.--Subject to specific
108appropriations, the agency may make payments for services which
109are optional to the state under Title XIX of the Social Security
110Act and are furnished by Medicaid providers to recipients who
111are determined to be eligible on the dates on which the services
112were provided. Any optional service that is provided shall be
113provided only when medically necessary and in accordance with
114state and federal law. Optional services rendered by providers
115in mobile units to Medicaid recipients may be restricted or
116prohibited by the agency. Nothing in this section shall be
117construed to prevent or limit the agency from adjusting fees,
118reimbursement rates, lengths of stay, number of visits, or
119number of services, or making any other adjustments necessary to
120comply with the availability of moneys and any limitations or
121directions provided for in the General Appropriations Act or
122chapter 216. If necessary to safeguard the state's systems of
123providing services to elderly and disabled persons and subject
124to the notice and review provisions of s. 216.177, the Governor
125may direct the Agency for Health Care Administration to amend
126the Medicaid state plan to delete the optional Medicaid service
127known as "Intermediate Care Facilities for the Developmentally
128Disabled." Optional services may include:
129     (1)  ADULT DENTAL SERVICES.--
130     (b)  Beginning January 1, 2005, the agency may pay for
131partial dentures and full dentures, the procedures required to
132seat dentures, and the repair and reline of dentures, provided
133by or under the direction of a licensed dentist, for a recipient
134who is 21 years of age or older.
135     (23)  CHILDREN'S VISUAL SERVICES.--The agency may pay for
136visual examinations, eyeglasses, and eyeglass repairs for a
137recipient younger than 21 years of age, if they are prescribed
138by a licensed physician specializing in diseases of the eye or
139by a licensed optometrist. Eyeglasses for adult recipients shall
140be limited to two pairs per year per recipient, except a third
141pair may be provided after prior authorization.
142     Section 5.  Paragraph (a) of subsection (9) of section
143409.907, Florida Statutes, is amended to read:
144     409.907  Medicaid provider agreements.--The agency may make
145payments for medical assistance and related services rendered to
146Medicaid recipients only to an individual or entity who has a
147provider agreement in effect with the agency, who is performing
148services or supplying goods in accordance with federal, state,
149and local law, and who agrees that no person shall, on the
150grounds of handicap, race, color, or national origin, or for any
151other reason, be subjected to discrimination under any program
152or activity for which the provider receives payment from the
153agency.
154     (9)  Upon receipt of a completed, signed, and dated
155application, and completion of any necessary background
156investigation and criminal history record check, the agency must
157either:
158     (a)  Enroll the applicant as a Medicaid provider no earlier
159than the effective date of the approval of the provider
160application. With respect to providers who were recently granted
161a change of ownership and those who primarily provide emergency
162medical services transportation or emergency services and care
163pursuant to s. 395.1041 or s. 401.45, or services provided by
164entities under s. 409.91255, and out-of-state providers, upon
165approval of the provider application., The enrollment effective
166date shall be of approval is considered to be the date the
167agency receives the provider application. Payment for any claims
168for services provided to Medicaid recipients between the date of
169receipt of the application and the date of approval is
170contingent on applying any and all applicable audits and edits
171contained in the agency's claims adjudication and payment
172processing systems; or
173     Section 6.  Paragraph (c) of subsection (1) of section
174409.9081, Florida Statutes, is amended to read:
175     409.9081  Copayments.--
176     (1)  The agency shall require, subject to federal
177regulations and limitations, each Medicaid recipient to pay at
178the time of service a nominal copayment for the following
179Medicaid services:
180     (c)  Hospital emergency department visits for nonemergency
181care: 5 percent of up to the first $300 of the Medicaid payment
182for emergency room services, not to exceed $15 for each
183emergency department visit.
184     Section 7.  Subsections (2), (3), and (4) of section
185409.911, Florida Statutes, are amended to read:
186     409.911  Disproportionate share program.--Subject to
187specific allocations established within the General
188Appropriations Act and any limitations established pursuant to
189chapter 216, the agency shall distribute, pursuant to this
190section, moneys to hospitals providing a disproportionate share
191of Medicaid or charity care services by making quarterly
192Medicaid payments as required. Notwithstanding the provisions of
193s. 409.915, counties are exempt from contributing toward the
194cost of this special reimbursement for hospitals serving a
195disproportionate share of low-income patients.
196     (2)  The Agency for Health Care Administration shall use
197the following actual audited data to determine the Medicaid days
198and charity care to be used in calculating the disproportionate
199share payment:
200     (a)  The average of the 1998, 1999, and 2000, 2001, and
2012002 audited disproportionate share data to determine each
202hospital's Medicaid days and charity care for the 2006-2007
2032004-2005 state fiscal year and the average of the 1999, 2000,
204and 2001 audited disproportionate share data to determine the
205Medicaid days and charity care for the 2005-2006 state fiscal
206year.
207     (b)  If the Agency for Health Care Administration does not
208have the prescribed 3 years of audited disproportionate share
209data as noted in paragraph (a) for a hospital, the agency shall
210use the average of the years of the audited disproportionate
211share data as noted in paragraph (a) which is available.
212     (c)  In accordance with s. 1923(b) of the Social Security
213Act, a hospital with a Medicaid inpatient utilization rate
214greater than one standard deviation above the statewide mean or
215a hospital with a low-income utilization rate of 25 percent or
216greater shall qualify for reimbursement.
217     (3)  Hospitals that qualify for a disproportionate share
218payment solely under paragraph (2)(c) shall have their payment
219calculated in accordance with the following formulas:
220
221
DSHP = (HMD/TMSD) x $1 million
222
223Where:
224     DSHP = disproportionate share hospital payment.
225     HMD = hospital Medicaid days.
226     TSD = total state Medicaid days.
227
228Any funds not allocated to hospitals qualifying under this
229section shall be redistributed to the non-state government owned
230or operated hospitals with greater than 3,100 3,300 Medicaid
231days.
232     (4)  The following formulas shall be used to pay
233disproportionate share dollars to public hospitals:
234     (a)  For state mental health hospitals:
235
236
DSHP = (HMD/TMDMH) x TAAMH
237
238shall be the difference between the federal cap for Institutions
239for Mental Diseases and the amounts paid under the mental health
240disproportionate share program.
241
242Where:
243     DSHP = disproportionate share hospital payment.
244     HMD = hospital Medicaid days.
245     TMDHH = total Medicaid days for state mental health
246hospitals.
247     TAAMH = total amount available for mental health hospitals.
248     (b)  For non-state government owned or operated hospitals
249with 3,100 3,300 or more Medicaid days:
250
251
DSHP = [(.82 x HCCD/TCCD) + (.18 x HMD/TMD)]
252
x TAAPH
253
TAAPH = TAA - TAAMH
254
255Where:
256     TAA = total available appropriation.
257     TAAPH = total amount available for public hospitals.
258     DSHP = disproportionate share hospital payments.
259     HMD = hospital Medicaid days.
260     TMD = total state Medicaid days for public hospitals.
261     HCCD = hospital charity care dollars.
262     TCCD = total state charity care dollars for public non-
263state hospitals.
264
265     1.  For the 2005-2006 state fiscal year only, the DSHP for
266the public nonstate hospitals shall be computed using a weighted
267average of the disproportionate share payments for the 2004-2005
268state fiscal year which uses an average of the 1998, 1999, and
2692000 audited disproportionate share data and the
270disproportionate share payments for the 2005-2006 state fiscal
271year as computed using the formula above and using the average
272of the 1999, 2000, and 2001 audited disproportionate share data.
273The final DSHP for the public nonstate hospitals shall be
274computed as an average using the calculated payments for the
2752005-2006 state fiscal year weighted at 65 percent and the
276disproportionate share payments for the 2004-2005 state fiscal
277year weighted at 35 percent.
278     2.  The TAAPH shall be reduced by $6,365,257 before
279computing the DSHP for each public hospital. The $6,365,257
280shall be distributed equally between the public hospitals that
281are also designated statutory teaching hospitals.
282     (c)  For non-state government owned or operated hospitals
283with less than 3,100 3,300 Medicaid days, a total of $750,000
284shall be distributed equally among these hospitals.
285     Section 8.  Section 409.9113, Florida Statutes, is amended
286to read:
287     409.9113  Disproportionate share program for teaching
288hospitals.--In addition to the payments made under ss. 409.911
289and 409.9112, the Agency for Health Care Administration shall
290make disproportionate share payments to statutorily defined
291teaching hospitals for their increased costs associated with
292medical education programs and for tertiary health care services
293provided to the indigent. This system of payments shall conform
294with federal requirements and shall distribute funds in each
295fiscal year for which an appropriation is made by making
296quarterly Medicaid payments. Notwithstanding s. 409.915,
297counties are exempt from contributing toward the cost of this
298special reimbursement for hospitals serving a disproportionate
299share of low-income patients. For the state fiscal year 2006-
3002007 2005-2006, the agency shall not distribute the moneys
301provided in the General Appropriations Act to statutorily
302defined teaching hospitals and family practice teaching
303hospitals under the teaching hospital disproportionate share
304program. The funds provided for statutorily defined teaching
305hospitals shall be distributed in the same proportion as the
306state fiscal year 2003-2004 teaching hospital disproportionate
307share funds were distributed. The funds provided for family
308practice teaching hospitals shall be distributed equally among
309family practice teaching hospitals.
310     (1)  On or before September 15 of each year, the Agency for
311Health Care Administration shall calculate an allocation
312fraction to be used for distributing funds to state statutory
313teaching hospitals. Subsequent to the end of each quarter of the
314state fiscal year, the agency shall distribute to each statutory
315teaching hospital, as defined in s. 408.07, an amount determined
316by multiplying one-fourth of the funds appropriated for this
317purpose by the Legislature times such hospital's allocation
318fraction. The allocation fraction for each such hospital shall
319be determined by the sum of three primary factors, divided by
320three. The primary factors are:
321     (a)  The number of nationally accredited graduate medical
322education programs offered by the hospital, including programs
323accredited by the Accreditation Council for Graduate Medical
324Education and the combined Internal Medicine and Pediatrics
325programs acceptable to both the American Board of Internal
326Medicine and the American Board of Pediatrics at the beginning
327of the state fiscal year preceding the date on which the
328allocation fraction is calculated. The numerical value of this
329factor is the fraction that the hospital represents of the total
330number of programs, where the total is computed for all state
331statutory teaching hospitals.
332     (b)  The number of full-time equivalent trainees in the
333hospital, which comprises two components:
334     1.  The number of trainees enrolled in nationally
335accredited graduate medical education programs, as defined in
336paragraph (a). Full-time equivalents are computed using the
337fraction of the year during which each trainee is primarily
338assigned to the given institution, over the state fiscal year
339preceding the date on which the allocation fraction is
340calculated. The numerical value of this factor is the fraction
341that the hospital represents of the total number of full-time
342equivalent trainees enrolled in accredited graduate programs,
343where the total is computed for all state statutory teaching
344hospitals.
345     2.  The number of medical students enrolled in accredited
346colleges of medicine and engaged in clinical activities,
347including required clinical clerkships and clinical electives.
348Full-time equivalents are computed using the fraction of the
349year during which each trainee is primarily assigned to the
350given institution, over the course of the state fiscal year
351preceding the date on which the allocation fraction is
352calculated. The numerical value of this factor is the fraction
353that the given hospital represents of the total number of full-
354time equivalent students enrolled in accredited colleges of
355medicine, where the total is computed for all state statutory
356teaching hospitals.
357
358The primary factor for full-time equivalent trainees is computed
359as the sum of these two components, divided by two.
360     (c)  A service index that comprises three components:
361     1.  The Agency for Health Care Administration Service
362Index, computed by applying the standard Service Inventory
363Scores established by the Agency for Health Care Administration
364to services offered by the given hospital, as reported on
365Worksheet A-2 for the last fiscal year reported to the agency
366before the date on which the allocation fraction is calculated.
367The numerical value of this factor is the fraction that the
368given hospital represents of the total Agency for Health Care
369Administration Service Index values, where the total is computed
370for all state statutory teaching hospitals.
371     2.  A volume-weighted service index, computed by applying
372the standard Service Inventory Scores established by the Agency
373for Health Care Administration to the volume of each service,
374expressed in terms of the standard units of measure reported on
375Worksheet A-2 for the last fiscal year reported to the agency
376before the date on which the allocation factor is calculated.
377The numerical value of this factor is the fraction that the
378given hospital represents of the total volume-weighted service
379index values, where the total is computed for all state
380statutory teaching hospitals.
381     3.  Total Medicaid payments to each hospital for direct
382inpatient and outpatient services during the fiscal year
383preceding the date on which the allocation factor is calculated.
384This includes payments made to each hospital for such services
385by Medicaid prepaid health plans, whether the plan was
386administered by the hospital or not. The numerical value of this
387factor is the fraction that each hospital represents of the
388total of such Medicaid payments, where the total is computed for
389all state statutory teaching hospitals.
390
391The primary factor for the service index is computed as the sum
392of these three components, divided by three.
393     (2)  By October 1 of each year, the agency shall use the
394following formula to calculate the maximum additional
395disproportionate share payment for statutorily defined teaching
396hospitals:
397
398
TAP = THAF x A
399
400Where:
401     TAP = total additional payment.
402     THAF = teaching hospital allocation factor.
403     A = amount appropriated for a teaching hospital
404disproportionate share program.
405     Section 9.  Section 409.9117, Florida Statutes, is amended
406to read:
407     409.9117  Primary care disproportionate share program.--For
408the state fiscal year 2006-2007 2005-2006, the agency shall not
409distribute moneys under the primary care disproportionate share
410program.
411     (1)  If federal funds are available for disproportionate
412share programs in addition to those otherwise provided by law,
413there shall be created a primary care disproportionate share
414program.
415     (2)  The following formula shall be used by the agency to
416calculate the total amount earned for hospitals that participate
417in the primary care disproportionate share program:
418
419
TAE = HDSP/THDSP
420
421Where:
422     TAE = total amount earned by a hospital participating in
423the primary care disproportionate share program.
424     HDSP = the prior state fiscal year primary care
425disproportionate share payment to the individual hospital.
426     THDSP = the prior state fiscal year total primary care
427disproportionate share payments to all hospitals.
428     (3)  The total additional payment for hospitals that
429participate in the primary care disproportionate share program
430shall be calculated by the agency as follows:
431
432
TAP = TAE x TA
433
434Where:
435     TAP = total additional payment for a primary care hospital.
436     TAE = total amount earned by a primary care hospital.
437     TA = total appropriation for the primary care
438disproportionate share program.
439     (4)  In the establishment and funding of this program, the
440agency shall use the following criteria in addition to those
441specified in s. 409.911, payments may not be made to a hospital
442unless the hospital agrees to:
443     (a)  Cooperate with a Medicaid prepaid health plan, if one
444exists in the community.
445     (b)  Ensure the availability of primary and specialty care
446physicians to Medicaid recipients who are not enrolled in a
447prepaid capitated arrangement and who are in need of access to
448such physicians.
449     (c)  Coordinate and provide primary care services free of
450charge, except copayments, to all persons with incomes up to 100
451percent of the federal poverty level who are not otherwise
452covered by Medicaid or another program administered by a
453governmental entity, and to provide such services based on a
454sliding fee scale to all persons with incomes up to 200 percent
455of the federal poverty level who are not otherwise covered by
456Medicaid or another program administered by a governmental
457entity, except that eligibility may be limited to persons who
458reside within a more limited area, as agreed to by the agency
459and the hospital.
460     (d)  Contract with any federally qualified health center,
461if one exists within the agreed geopolitical boundaries,
462concerning the provision of primary care services, in order to
463guarantee delivery of services in a nonduplicative fashion, and
464to provide for referral arrangements, privileges, and
465admissions, as appropriate. The hospital shall agree to provide
466at an onsite or offsite facility primary care services within 24
467hours to which all Medicaid recipients and persons eligible
468under this paragraph who do not require emergency room services
469are referred during normal daylight hours.
470     (e)  Cooperate with the agency, the county, and other
471entities to ensure the provision of certain public health
472services, case management, referral and acceptance of patients,
473and sharing of epidemiological data, as the agency and the
474hospital find mutually necessary and desirable to promote and
475protect the public health within the agreed geopolitical
476boundaries.
477     (f)  In cooperation with the county in which the hospital
478resides, develop a low-cost, outpatient, prepaid health care
479program to persons who are not eligible for the Medicaid
480program, and who reside within the area.
481     (g)  Provide inpatient services to residents within the
482area who are not eligible for Medicaid or Medicare, and who do
483not have private health insurance, regardless of ability to pay,
484on the basis of available space, except that nothing shall
485prevent the hospital from establishing bill collection programs
486based on ability to pay.
487     (h)  Work with the Florida Healthy Kids Corporation, the
488Florida Health Care Purchasing Cooperative, and business health
489coalitions, as appropriate, to develop a feasibility study and
490plan to provide a low-cost comprehensive health insurance plan
491to persons who reside within the area and who do not have access
492to such a plan.
493     (i)  Work with public health officials and other experts to
494provide community health education and prevention activities
495designed to promote healthy lifestyles and appropriate use of
496health services.
497     (j)  Work with the local health council to develop a plan
498for promoting access to affordable health care services for all
499persons who reside within the area, including, but not limited
500to, public health services, primary care services, inpatient
501services, and affordable health insurance generally.
502
503Any hospital that fails to comply with any of the provisions of
504this subsection, or any other contractual condition, may not
505receive payments under this section until full compliance is
506achieved.
507     Section 10.  Paragraph (b) of subsection (4) and subsection
508(44) of section 409.912, Florida Statutes, are amended, and
509subsection (53) is added to that section, to read:
510     409.912  Cost-effective purchasing of health care.--The
511agency shall purchase goods and services for Medicaid recipients
512in the most cost-effective manner consistent with the delivery
513of quality medical care. To ensure that medical services are
514effectively utilized, the agency may, in any case, require a
515confirmation or second physician's opinion of the correct
516diagnosis for purposes of authorizing future services under the
517Medicaid program. This section does not restrict access to
518emergency services or poststabilization care services as defined
519in 42 C.F.R. part 438.114. Such confirmation or second opinion
520shall be rendered in a manner approved by the agency. The agency
521shall maximize the use of prepaid per capita and prepaid
522aggregate fixed-sum basis services when appropriate and other
523alternative service delivery and reimbursement methodologies,
524including competitive bidding pursuant to s. 287.057, designed
525to facilitate the cost-effective purchase of a case-managed
526continuum of care. The agency shall also require providers to
527minimize the exposure of recipients to the need for acute
528inpatient, custodial, and other institutional care and the
529inappropriate or unnecessary use of high-cost services. The
530agency shall contract with a vendor to monitor and evaluate the
531clinical practice patterns of providers in order to identify
532trends that are outside the normal practice patterns of a
533provider's professional peers or the national guidelines of a
534provider's professional association. The vendor must be able to
535provide information and counseling to a provider whose practice
536patterns are outside the norms, in consultation with the agency,
537to improve patient care and reduce inappropriate utilization.
538The agency may mandate prior authorization, drug therapy
539management, or disease management participation for certain
540populations of Medicaid beneficiaries, certain drug classes, or
541particular drugs to prevent fraud, abuse, overuse, and possible
542dangerous drug interactions. The Pharmaceutical and Therapeutics
543Committee shall make recommendations to the agency on drugs for
544which prior authorization is required. The agency shall inform
545the Pharmaceutical and Therapeutics Committee of its decisions
546regarding drugs subject to prior authorization. The agency is
547authorized to limit the entities it contracts with or enrolls as
548Medicaid providers by developing a provider network through
549provider credentialing. The agency may competitively bid single-
550source-provider contracts if procurement of goods or services
551results in demonstrated cost savings to the state without
552limiting access to care. The agency may limit its network based
553on the assessment of beneficiary access to care, provider
554availability, provider quality standards, time and distance
555standards for access to care, the cultural competence of the
556provider network, demographic characteristics of Medicaid
557beneficiaries, practice and provider-to-beneficiary standards,
558appointment wait times, beneficiary use of services, provider
559turnover, provider profiling, provider licensure history,
560previous program integrity investigations and findings, peer
561review, provider Medicaid policy and billing compliance records,
562clinical and medical record audits, and other factors. Providers
563shall not be entitled to enrollment in the Medicaid provider
564network. The agency shall determine instances in which allowing
565Medicaid beneficiaries to purchase durable medical equipment and
566other goods is less expensive to the Medicaid program than long-
567term rental of the equipment or goods. The agency may establish
568rules to facilitate purchases in lieu of long-term rentals in
569order to protect against fraud and abuse in the Medicaid program
570as defined in s. 409.913. The agency may seek federal waivers
571necessary to administer these policies.
572     (4)  The agency may contract with:
573     (b)  An entity that is providing comprehensive behavioral
574health care services to certain Medicaid recipients through a
575capitated, prepaid arrangement pursuant to the federal waiver
576provided for by s. 409.905(5). Such an entity must be licensed
577under chapter 624, chapter 636, or chapter 641 and must possess
578the clinical systems and operational competence to manage risk
579and provide comprehensive behavioral health care to Medicaid
580recipients. As used in this paragraph, the term "comprehensive
581behavioral health care services" means covered mental health and
582substance abuse treatment services that are available to
583Medicaid recipients. The secretary of the Department of Children
584and Family Services shall approve provisions of procurements
585related to children in the department's care or custody prior to
586enrolling such children in a prepaid behavioral health plan. Any
587contract awarded under this paragraph must be competitively
588procured. In developing the behavioral health care prepaid plan
589procurement document, the agency shall ensure that the
590procurement document requires the contractor to develop and
591implement a plan to ensure compliance with s. 394.4574 related
592to services provided to residents of licensed assisted living
593facilities that hold a limited mental health license. Except as
594provided in subparagraph 8., and except in counties where the
595Medicaid managed care pilot program is authorized pursuant to s.
596409.91211, the agency shall seek federal approval to contract
597with a single entity meeting these requirements to provide
598comprehensive behavioral health care services to all Medicaid
599recipients not enrolled in a Medicaid managed care plan
600authorized under s. 409.91211 or a Medicaid health maintenance
601organization in an AHCA area. In an AHCA area where the Medicaid
602managed care pilot program is authorized pursuant to s.
603409.91211 in one or more counties, the agency may procure a
604contract with a single entity to serve the remaining counties as
605an AHCA area or the remaining counties may be included with an
606adjacent AHCA area and shall be subject to this paragraph. Each
607entity must offer sufficient choice of providers in its network
608to ensure recipient access to care and the opportunity to select
609a provider with whom they are satisfied. The network shall
610include all public mental health hospitals. To ensure unimpaired
611access to behavioral health care services by Medicaid
612recipients, all contracts issued pursuant to this paragraph
613shall require 80 percent of the capitation paid to the managed
614care plan, including health maintenance organizations, to be
615expended for the provision of behavioral health care services.
616In the event the managed care plan expends less than 80 percent
617of the capitation paid pursuant to this paragraph for the
618provision of behavioral health care services, the difference
619shall be returned to the agency. The agency shall provide the
620managed care plan with a certification letter indicating the
621amount of capitation paid during each calendar year for the
622provision of behavioral health care services pursuant to this
623section. the agency may reimburse for substance abuse treatment
624services on a fee-for-service basis until the agency finds that
625adequate funds are available for capitated, prepaid
626arrangements.
627     1.  By January 1, 2001, the agency shall modify the
628contracts with the entities providing comprehensive inpatient
629and outpatient mental health care services to Medicaid
630recipients in Hillsborough, Highlands, Hardee, Manatee, and Polk
631Counties, to include substance abuse treatment services.
632     2.  By July 1, 2003, the agency and the Department of
633Children and Family Services shall execute a written agreement
634that requires collaboration and joint development of all policy,
635budgets, procurement documents, contracts, and monitoring plans
636that have an impact on the state and Medicaid community mental
637health and targeted case management programs.
638     3.  Except as provided in subparagraph 8., by July 1, 2006,
639the agency and the Department of Children and Family Services
640shall contract with managed care entities in each AHCA area
641except area 6 or arrange to provide comprehensive inpatient and
642outpatient mental health and substance abuse services through
643capitated prepaid arrangements to all Medicaid recipients who
644are eligible to participate in such plans under federal law and
645regulation. In AHCA areas where eligible individuals number less
646than 150,000, the agency shall contract with a single managed
647care plan to provide comprehensive behavioral health services to
648all recipients who are not enrolled in a Medicaid health
649maintenance organization or a Medicaid capitated managed care
650plan authorized under s. 409.91211. The agency may contract with
651more than one comprehensive behavioral health provider to
652provide care to recipients who are not enrolled in a Medicaid
653capitated managed care plan authorized under s. 409.91211 or a
654Medicaid health maintenance organization in AHCA areas where the
655eligible population exceeds 150,000. In an AHCA area where the
656Medicaid managed care pilot program is authorized pursuant to s.
657409.91211 in one or more counties, the agency may procure a
658contract with a single entity to serve the remaining counties as
659an AHCA area or the remaining counties may be included with an
660adjacent AHCA area and shall be subject to this paragraph.
661Contracts for comprehensive behavioral health providers awarded
662pursuant to this section shall be competitively procured. Both
663for-profit and not-for-profit corporations shall be eligible to
664compete. Managed care plans contracting with the agency under
665subsection (3) shall provide and receive payment for the same
666comprehensive behavioral health benefits as provided in AHCA
667rules, including handbooks incorporated by reference. In AHCA
668area 11, the agency shall contract with at least two
669comprehensive behavioral health care providers to provide
670behavioral health care to recipients in that area who are
671enrolled in, or assigned to, the MediPass program. One of the
672behavioral health care contracts shall be with the existing
673provider service network pilot project, as described in
674paragraph (d), for the purpose of demonstrating the cost-
675effectiveness of the provision of quality mental health services
676through a public hospital-operated managed care model. Payment
677shall be at an agreed-upon capitated rate to ensure cost
678savings. Of the recipients in area 11 who are assigned to
679MediPass under the provisions of s. 409.9122(2)(k), a minimum of
68050,000 of those MediPass-enrolled recipients shall be assigned
681to the existing provider service network in area 11 for their
682behavioral care.
683     4.  By October 1, 2003, the agency and the department shall
684submit a plan to the Governor, the President of the Senate, and
685the Speaker of the House of Representatives which provides for
686the full implementation of capitated prepaid behavioral health
687care in all areas of the state.
688     a.  Implementation shall begin in 2003 in those AHCA areas
689of the state where the agency is able to establish sufficient
690capitation rates.
691     b.  If the agency determines that the proposed capitation
692rate in any area is insufficient to provide appropriate
693services, the agency may adjust the capitation rate to ensure
694that care will be available. The agency and the department may
695use existing general revenue to address any additional required
696match but may not over-obligate existing funds on an annualized
697basis.
698     c.  Subject to any limitations provided for in the General
699Appropriations Act, the agency, in compliance with appropriate
700federal authorization, shall develop policies and procedures
701that allow for certification of local and state funds.
702     5.  Children residing in a statewide inpatient psychiatric
703program, or in a Department of Juvenile Justice or a Department
704of Children and Family Services residential program approved as
705a Medicaid behavioral health overlay services provider shall not
706be included in a behavioral health care prepaid health plan or
707any other Medicaid managed care plan pursuant to this paragraph.
708     6.  In converting to a prepaid system of delivery, the
709agency shall in its procurement document require an entity
710providing only comprehensive behavioral health care services to
711prevent the displacement of indigent care patients by enrollees
712in the Medicaid prepaid health plan providing behavioral health
713care services from facilities receiving state funding to provide
714indigent behavioral health care, to facilities licensed under
715chapter 395 which do not receive state funding for indigent
716behavioral health care, or reimburse the unsubsidized facility
717for the cost of behavioral health care provided to the displaced
718indigent care patient.
719     7.  Traditional community mental health providers under
720contract with the Department of Children and Family Services
721pursuant to part IV of chapter 394, child welfare providers
722under contract with the Department of Children and Family
723Services in areas 1 and 6, and inpatient mental health providers
724licensed pursuant to chapter 395 must be offered an opportunity
725to accept or decline a contract to participate in any provider
726network for prepaid behavioral health services.
727     8.  For fiscal year 2004-2005, all Medicaid eligible
728children, except children in areas 1 and 6, whose cases are open
729for child welfare services in the HomeSafeNet system, shall be
730enrolled in MediPass or in Medicaid fee-for-service and all
731their behavioral health care services including inpatient,
732outpatient psychiatric, community mental health, and case
733management shall be reimbursed on a fee-for-service basis.
734Beginning July 1, 2005, such children, who are open for child
735welfare services in the HomeSafeNet system, shall receive their
736behavioral health care services through a specialty prepaid plan
737operated by community-based lead agencies either through a
738single agency or formal agreements among several agencies. The
739specialty prepaid plan must result in savings to the state
740comparable to savings achieved in other Medicaid managed care
741and prepaid programs. Such plan must provide mechanisms to
742maximize state and local revenues. The specialty prepaid plan
743shall be developed by the agency and the Department of Children
744and Family Services. The agency is authorized to seek any
745federal waivers to implement this initiative.
746     (44)  The Agency for Health Care Administration shall
747ensure that any Medicaid managed care plan as defined in s.
748409.9122(2)(f)(h), whether paid on a capitated basis or a shared
749savings basis, is cost-effective. For purposes of this
750subsection, the term "cost-effective" means that a network's
751per-member, per-month costs to the state, including, but not
752limited to, fee-for-service costs, administrative costs, and
753case-management fees, if any, must be no greater than the
754state's costs associated with contracts for Medicaid services
755established under subsection (3), which may shall be actuarially
756adjusted for health status case mix, model, and service area.
757The agency shall conduct actuarially sound adjustments for
758health status audits adjusted for case mix and model in order to
759ensure such cost-effectiveness and shall publish the audit
760results on its Internet website and submit the audit results
761annually to the Governor, the President of the Senate, and the
762Speaker of the House of Representatives no later than December
76331 of each year. Contracts established pursuant to this
764subsection which are not cost-effective may not be renewed.
765     (53)  In accordance with s. 430.705 and 42 C.F.R. s. 438,
766Medicaid capitation payments for managed long-term care programs
767shall be risk adjusted by plan and reflect members' level of
768chronic illness, functional limitations, and risk of
769institutional placement, as determined by expenditures for a
770comparable fee-for-service population. Payments for Medicaid
771home and community-based services shall be actuarially
772equivalent to plan experience.
773     Section 11.  Paragraphs (f) and (k) of subsection (2) of
774section 409.9122, Florida Statutes, are amended to read:
775     409.9122  Mandatory Medicaid managed care enrollment;
776programs and procedures.--
777     (2)
778     (f)  When a Medicaid recipient does not choose a managed
779care plan or MediPass provider, the agency shall assign the
780Medicaid recipient to a managed care plan or MediPass provider.
781Medicaid recipients who are subject to mandatory assignment but
782who fail to make a choice shall be assigned to managed care
783plans until an enrollment of 35 40 percent in MediPass and 65 60
784percent in managed care plans, of all those eligible to choose
785managed care, is achieved. Once this enrollment is achieved, the
786assignments shall be divided in order to maintain an enrollment
787in MediPass and managed care plans which is in a 35 40 percent
788and 65 60 percent proportion, respectively. Thereafter,
789assignment of Medicaid recipients who fail to make a choice
790shall be based proportionally on the preferences of recipients
791who have made a choice in the previous period. Such proportions
792shall be revised at least quarterly to reflect an update of the
793preferences of Medicaid recipients. The agency shall
794disproportionately assign Medicaid-eligible recipients who are
795required to but have failed to make a choice of managed care
796plan or MediPass, including children, and who are to be assigned
797to the MediPass program to children's networks as described in
798s. 409.912(4)(g), Children's Medical Services Network as defined
799in s. 391.021, exclusive provider organizations, provider
800service networks, minority physician networks, and pediatric
801emergency department diversion programs authorized by this
802chapter or the General Appropriations Act, in such manner as the
803agency deems appropriate, until the agency has determined that
804the networks and programs have sufficient numbers to be
805economically operated. For purposes of this paragraph, when
806referring to assignment, the term "managed care plans" includes
807health maintenance organizations, exclusive provider
808organizations, provider service networks, minority physician
809networks, Children's Medical Services Network, and pediatric
810emergency department diversion programs authorized by this
811chapter or the General Appropriations Act. When making
812assignments, the agency shall take into account the following
813criteria:
814     1.  A managed care plan has sufficient network capacity to
815meet the need of members.
816     2.  The managed care plan or MediPass has previously
817enrolled the recipient as a member, or one of the managed care
818plan's primary care providers or MediPass providers has
819previously provided health care to the recipient.
820     3.  The agency has knowledge that the member has previously
821expressed a preference for a particular managed care plan or
822MediPass provider as indicated by Medicaid fee-for-service
823claims data, but has failed to make a choice.
824     4.  The managed care plan's or MediPass primary care
825providers are geographically accessible to the recipient's
826residence.
827     (k)  When a Medicaid recipient does not choose a managed
828care plan or MediPass provider, the agency shall assign the
829Medicaid recipient to a managed care plan, except in those
830counties in which there are fewer than two managed care plans
831accepting Medicaid enrollees, in which case assignment shall be
832to a managed care plan or a MediPass provider. Medicaid
833recipients in counties with fewer than two managed care plans
834accepting Medicaid enrollees who are subject to mandatory
835assignment but who fail to make a choice shall be assigned to
836managed care plans until an enrollment of 35 40 percent in
837MediPass and 65 60 percent in managed care plans, of all those
838eligible to choose managed care, is achieved. Once that
839enrollment is achieved, the assignments shall be divided in
840order to maintain an enrollment in MediPass and managed care
841plans which is in a 35 40 percent and 65 60 percent proportion,
842respectively. In service areas 1 and 6 of the Agency for Health
843Care Administration where the agency is contracting for the
844provision of comprehensive behavioral health services through a
845capitated prepaid arrangement, recipients who fail to make a
846choice shall be assigned equally to MediPass or a managed care
847plan. For purposes of this paragraph, when referring to
848assignment, the term "managed care plans" includes exclusive
849provider organizations, provider service networks, Children's
850Medical Services Network, minority physician networks, and
851pediatric emergency department diversion programs authorized by
852this chapter or the General Appropriations Act. When making
853assignments, the agency shall take into account the following
854criteria:
855     1.  A managed care plan has sufficient network capacity to
856meet the need of members.
857     2.  The managed care plan or MediPass has previously
858enrolled the recipient as a member, or one of the managed care
859plan's primary care providers or MediPass providers has
860previously provided health care to the recipient.
861     3.  The agency has knowledge that the member has previously
862expressed a preference for a particular managed care plan or
863MediPass provider as indicated by Medicaid fee-for-service
864claims data, but has failed to make a choice.
865     4.  The managed care plan's or MediPass primary care
866providers are geographically accessible to the recipient's
867residence.
868     5.  The agency has authority to make mandatory assignments
869based on quality of service and performance of managed care
870plans.
871     Section 12.  Paragraph (b) of subsection (5) of section
872624.91, Florida Statutes, is amended to read:
873     624.91  The Florida Healthy Kids Corporation Act.--
874     (5)  CORPORATION AUTHORIZATION, DUTIES, POWERS.--
875     (b)  The Florida Healthy Kids Corporation shall:
876     1.  Arrange for the collection of any family, local
877contributions, or employer payment or premium, in an amount to
878be determined by the board of directors, to provide for payment
879of premiums for comprehensive insurance coverage and for the
880actual or estimated administrative expenses.
881     2.  Arrange for the collection of any voluntary
882contributions to provide for payment of premiums for children
883who are not eligible for medical assistance under Title XXI of
884the Social Security Act. Each fiscal year, the corporation shall
885establish a local match policy for the enrollment of non-Title-
886XXI-eligible children in the Healthy Kids program. By May 1 of
887each year, the corporation shall provide written notification of
888the amount to be remitted to the corporation for the following
889fiscal year under that policy. Local match sources may include,
890but are not limited to, funds provided by municipalities,
891counties, school boards, hospitals, health care providers,
892charitable organizations, special taxing districts, and private
893organizations. The minimum local match cash contributions
894required each fiscal year and local match credits shall be
895determined by the General Appropriations Act. The corporation
896shall calculate a county's local match rate based upon that
897county's percentage of the state's total non-Title-XXI
898expenditures as reported in the corporation's most recently
899audited financial statement. In awarding the local match
900credits, the corporation may consider factors including, but not
901limited to, population density, per capita income, and existing
902child-health-related expenditures and services. If local match
903amounts collected exceed expenditures during any fiscal year,
904including the 2005-2006 fiscal year, the corporation shall
905return unspent local funds collected based on a formula
906developed by the corporation.
907     3.  Subject to the provisions of s. 409.8134, accept
908voluntary supplemental local match contributions that comply
909with the requirements of Title XXI of the Social Security Act
910for the purpose of providing additional coverage in contributing
911counties under Title XXI.
912     4.  Establish the administrative and accounting procedures
913for the operation of the corporation.
914     5.  Establish, with consultation from appropriate
915professional organizations, standards for preventive health
916services and providers and comprehensive insurance benefits
917appropriate to children, provided that such standards for rural
918areas shall not limit primary care providers to board-certified
919pediatricians.
920     6.  Determine eligibility for children seeking to
921participate in the Title XXI-funded components of the Florida
922KidCare program consistent with the requirements specified in s.
923409.814, as well as the non-Title-XXI-eligible children as
924provided in subsection (3).
925     7.  Establish procedures under which providers of local
926match to, applicants to and participants in the program may have
927grievances reviewed by an impartial body and reported to the
928board of directors of the corporation.
929     8.  Establish participation criteria and, if appropriate,
930contract with an authorized insurer, health maintenance
931organization, or third-party administrator to provide
932administrative services to the corporation.
933     9.  Establish enrollment criteria which shall include
934penalties or waiting periods of not fewer than 60 days for
935reinstatement of coverage upon voluntary cancellation for
936nonpayment of family premiums.
937     10.  Contract with authorized insurers or any provider of
938health care services, meeting standards established by the
939corporation, for the provision of comprehensive insurance
940coverage to participants. Such standards shall include criteria
941under which the corporation may contract with more than one
942provider of health care services in program sites. Health plans
943shall be selected through a competitive bid process. The Florida
944Healthy Kids Corporation shall purchase goods and services in
945the most cost-effective manner consistent with the delivery of
946quality medical care. The maximum administrative cost for a
947Florida Healthy Kids Corporation contract shall be 15 percent.
948For health care contracts, the minimum medical loss ratio for a
949Florida Healthy Kids Corporation contract shall be 85 percent.
950For dental contracts, the remaining compensation to be paid to
951the authorized insurer or provider under a Florida Healthy Kids
952Corporation contract shall be no less than an amount which is 85
953percent of premium; to the extent any contract provision does
954not provide for this minimum compensation, this section shall
955prevail. The health plan selection criteria and scoring system,
956and the scoring results, shall be available upon request for
957inspection after the bids have been awarded.
958     11.  Establish disenrollment criteria in the event local
959matching funds are insufficient to cover enrollments.
960     12.  Develop and implement a plan to publicize the Florida
961Healthy Kids Corporation, the eligibility requirements of the
962program, and the procedures for enrollment in the program and to
963maintain public awareness of the corporation and the program.
964     13.  Secure staff necessary to properly administer the
965corporation. Staff costs shall be funded from state and local
966matching funds and such other private or public funds as become
967available. The board of directors shall determine the number of
968staff members necessary to administer the corporation.
969     14.  Provide a report annually to the Governor, Chief
970Financial Officer, Commissioner of Education, Senate President,
971Speaker of the House of Representatives, and Minority Leaders of
972the Senate and the House of Representatives.
973     15.  Establish benefit packages which conform to the
974provisions of the Florida KidCare program, as created in ss.
975409.810-409.820.
976     Section 13.  Subsection (4) of section 430.705, Florida
977Statutes, is amended to read:
978     430.705  Implementation of the long-term care community
979diversion pilot projects.--
980     (4)  Pursuant to 42 C.F.R. s. 438.6(c), the agency, in
981consultation with the department, shall annually reevaluate and
982recertify the capitation rates for the diversion pilot projects.
983The agency, in consultation with the department, shall secure
984the utilization and cost data for Medicaid and Medicare
985beneficiaries served by the program which shall be used in
986developing rates for the diversion pilot projects. The
987capitation rates shall be risk adjusted by plan and reflect
988members' level of chronic illness, functional limitations, and
989risk of institutional placement, as determined by expenditures
990for a comparable fee-for-service population. Payments for
991Medicaid home and community-based services shall be actuarially
992equivalent to plan experience.
993     Section 14.  This act shall take effect July 1, 2006.
994
995======= T I T L E  A M E N D M E N T ==========
996     Remove the entire title and insert:
997
A bill to be entitled
998An act relating to health care; amending s. 400.23, F.S.;
999revising minimum staffing requirements for nursing homes;
1000amending s. 409.904, F.S.; revising requirements relating
1001to eligibility of certain women for family planning
1002services; amending s. 409.905, F.S.; revising requirements
1003for the hospitalist program; removing a provision
1004authorizing the Agency for Health Care Administration to
1005seek certain waivers to implement the program; amending s.
1006409.906, F.S.; revising provisions relating to optional
1007adult dental and visual services covered by Medicaid;
1008amending s. 409.907, F.S.; revising the enrollment
1009effective date for Medicaid providers; providing
1010procedures for payment for certain claims for services;
1011amending s. 409.9081, F.S.; revising the limitation on
1012Medicaid recipient copayments for emergency room services;
1013amending s. 409.911, F.S., relating to the hospital
1014disproportionate share program; revising the method for
1015calculating disproportionate share payments to hospitals;
1016deleting obsolete provisions; amending s. 409.9113, F.S.;
1017providing guidelines for distribution of disproportionate
1018share funds to certain teaching hospitals; amending s.
1019409.9117, F.S., relating to the primary care
1020disproportionate share program; revising the time period
1021during which the agency shall not distribute certain
1022moneys; amending s. 409.912, F.S., relating to cost-
1023effective purchasing of health care; deleting an obsolete
1024provision requiring a certain percentage of capitation
1025paid to managed care plans to be expended for behavioral
1026health services; providing that adjustments for health
1027status be considered in agency evaluations of the cost-
1028effectiveness of Medicaid managed care plans; providing
1029requirements for Medicaid capitation payments for managed
1030long-term care programs and payments for Medicaid home and
1031community-based services; amending s. 409.9122, F.S.;
1032revising enrollment limits for Medicaid recipients who are
1033subject to mandatory assignment to managed care plans and
1034MediPass; amending s. 624.91, F.S.; requiring the Florida
1035Healthy Kids Corporation to return certain unspent funds
1036based on a formula developed by the corporation; amending
1037s. 430.705, F.S., relating to implementation of the long-
1038term care community diversion pilot projects; providing
1039requirements for Medicaid capitation payments for managed
1040long-term care programs and payments for Medicaid home and
1041community-based services; providing an effective date.


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