Senate Bill sb1116e1

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    CS for SB 1116                                 First Engrossed



  1                      A bill to be entitled

  2         An act relating to health care; amending s.

  3         409.911, F.S.; providing for the calculation of

  4         payments made to hospitals serving a

  5         disproportionate share of low-income patients;

  6         amending s. 409.9112, F.S.; prohibiting the

  7         Agency for Health Care Administration from

  8         distributing moneys under the regional

  9         perinatal intensive care centers

10         disproportionate share program for the

11         2007-2008 fiscal year; amending s. 409.9113,

12         F.S.; requiring the agency to distribute moneys

13         provided in the General Appropriations Act to

14         statutorily defined teaching hospitals and

15         family practice teaching hospitals under the

16         teaching hospital disproportionate share

17         program for the 2007-2008 fiscal year; amending

18         s. 409.9117, F.S.; prohibiting the agency from

19         distributing moneys under the primary care

20         disproportionate share program for the

21         2007-2008 fiscal year; amending s. 409.912,

22         F.S.; providing an exception to behavioral

23         health care services delivered through a

24         specialty prepaid plan for certain specified

25         children; amending s. 409.91211, F.S.;

26         requiring the Agency for Health Care

27         Administration to implement delivery mechanisms

28         to provide Medicaid services to

29         Medicaid-eligible children who are open for

30         child welfare services in the HomeSafeNet

31         system; requiring that the services be


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    CS for SB 1116                                 First Engrossed



 1         sufficient to meet the medical, developmental,

 2         behavioral, and emotional needs of the

 3         children; directing the agency to implement the

 4         service delivery by a specified date; providing

 5         an effective date.

 6  

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

 8  

 9         Section 1.  Paragraph (a) of subsection (2) of section

10  409.911, Florida Statutes, is amended to read:

11         409.911  Disproportionate share program.--Subject to

12  specific allocations established within the General

13  Appropriations Act and any limitations established pursuant to

14  chapter 216, the agency shall distribute, pursuant to this

15  section, moneys to hospitals providing a disproportionate

16  share of Medicaid or charity care services by making quarterly

17  Medicaid payments as required. Notwithstanding the provisions

18  of s. 409.915, counties are exempt from contributing toward

19  the cost of this special reimbursement for hospitals serving a

20  disproportionate share of low-income patients.

21         (2)  The Agency for Health Care Administration shall

22  use the following actual audited data to determine the

23  Medicaid days and charity care to be used in calculating the

24  disproportionate share payment:

25         (a)  The average of the 2000, 2001, and 2002, and 2003

26  audited disproportionate share data to determine each

27  hospital's Medicaid days and charity care for the 2007-2008

28  2006-2007 state fiscal year.

29         Section 2.  Section 409.9112, Florida Statutes, is

30  amended to read:

31  


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    CS for SB 1116                                 First Engrossed



 1         409.9112  Disproportionate share program for regional

 2  perinatal intensive care centers.--In addition to the payments

 3  made under s. 409.911, the Agency for Health Care

 4  Administration shall design and implement a system of making

 5  disproportionate share payments to those hospitals that

 6  participate in the regional perinatal intensive care center

 7  program established pursuant to chapter 383. This system of

 8  payments shall conform with federal requirements and shall

 9  distribute funds in each fiscal year for which an

10  appropriation is made by making quarterly Medicaid payments.

11  Notwithstanding the provisions of s. 409.915, counties are

12  exempt from contributing toward the cost of this special

13  reimbursement for hospitals serving a disproportionate share

14  of low-income patients. For the state fiscal year 2007-2008

15  2005-2006, the agency shall not distribute moneys under the

16  regional perinatal intensive care centers disproportionate

17  share program.

18         (1)  The following formula shall be used by the agency

19  to calculate the total amount earned for hospitals that

20  participate in the regional perinatal intensive care center

21  program:

22  

23                         TAE = HDSP/THDSP

24  

25  Where:

26         TAE = total amount earned by a regional perinatal

27  intensive care center.

28         HDSP = the prior state fiscal year regional perinatal

29  intensive care center disproportionate share payment to the

30  individual hospital.

31  


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    CS for SB 1116                                 First Engrossed



 1         THDSP = the prior state fiscal year total regional

 2  perinatal intensive care center disproportionate share

 3  payments to all hospitals.

 4  

 5         (2)  The total additional payment for hospitals that

 6  participate in the regional perinatal intensive care center

 7  program shall be calculated by the agency as follows:

 8  

 9                          TAP = TAE x TA

10  

11  Where:

12         TAP = total additional payment for a regional perinatal

13  intensive care center.

14         TAE = total amount earned by a regional perinatal

15  intensive care center.

16         TA = total appropriation for the regional perinatal

17  intensive care center disproportionate share program.

18  

19         (3)  In order to receive payments under this section, a

20  hospital must be participating in the regional perinatal

21  intensive care center program pursuant to chapter 383 and must

22  meet the following additional requirements:

23         (a)  Agree to conform to all departmental and agency

24  requirements to ensure high quality in the provision of

25  services, including criteria adopted by departmental and

26  agency rule concerning staffing ratios, medical records,

27  standards of care, equipment, space, and such other standards

28  and criteria as the department and agency deem appropriate as

29  specified by rule.

30         (b)  Agree to provide information to the department and

31  agency, in a form and manner to be prescribed by rule of the


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    CS for SB 1116                                 First Engrossed



 1  department and agency, concerning the care provided to all

 2  patients in neonatal intensive care centers and high-risk

 3  maternity care.

 4         (c)  Agree to accept all patients for neonatal

 5  intensive care and high-risk maternity care, regardless of

 6  ability to pay, on a functional space-available basis.

 7         (d)  Agree to develop arrangements with other maternity

 8  and neonatal care providers in the hospital's region for the

 9  appropriate receipt and transfer of patients in need of

10  specialized maternity and neonatal intensive care services.

11         (e)  Agree to establish and provide a developmental

12  evaluation and services program for certain high-risk

13  neonates, as prescribed and defined by rule of the department.

14         (f)  Agree to sponsor a program of continuing education

15  in perinatal care for health care professionals within the

16  region of the hospital, as specified by rule.

17         (g)  Agree to provide backup and referral services to

18  the department's county health departments and other

19  low-income perinatal providers within the hospital's region,

20  including the development of written agreements between these

21  organizations and the hospital.

22         (h)  Agree to arrange for transportation for high-risk

23  obstetrical patients and neonates in need of transfer from the

24  community to the hospital or from the hospital to another more

25  appropriate facility.

26         (4)  Hospitals which fail to comply with any of the

27  conditions in subsection (3) or the applicable rules of the

28  department and agency shall not receive any payments under

29  this section until full compliance is achieved.  A hospital

30  which is not in compliance in two or more consecutive quarters

31  shall not receive its share of the funds.  Any forfeited funds


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    CS for SB 1116                                 First Engrossed



 1  shall be distributed by the remaining participating regional

 2  perinatal intensive care center program hospitals.

 3         Section 3.  Section 409.9113, Florida Statutes, is

 4  amended to read:

 5         409.9113  Disproportionate share program for teaching

 6  hospitals.--In addition to the payments made under ss. 409.911

 7  and 409.9112, the Agency for Health Care Administration shall

 8  make disproportionate share payments to statutorily defined

 9  teaching hospitals for their increased costs associated with

10  medical education programs and for tertiary health care

11  services provided to the indigent. This system of payments

12  shall conform with federal requirements and shall distribute

13  funds in each fiscal year for which an appropriation is made

14  by making quarterly Medicaid payments. Notwithstanding s.

15  409.915, counties are exempt from contributing toward the cost

16  of this special reimbursement for hospitals serving a

17  disproportionate share of low-income patients. For the state

18  fiscal year 2007-2008 2006-2007, the agency shall distribute

19  the moneys provided in the General Appropriations Act to

20  statutorily defined teaching hospitals and family practice

21  teaching hospitals under the teaching hospital

22  disproportionate share program. The funds provided for

23  statutorily defined teaching hospitals shall be distributed in

24  the same proportion as the state fiscal year 2003-2004

25  teaching hospital disproportionate share funds were

26  distributed. The funds provided for family practice teaching

27  hospitals shall be distributed equally among family practice

28  teaching hospitals.

29         (1)  On or before September 15 of each year, the Agency

30  for Health Care Administration shall calculate an allocation

31  fraction to be used for distributing funds to state statutory


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    CS for SB 1116                                 First Engrossed



 1  teaching hospitals. Subsequent to the end of each quarter of

 2  the state fiscal year, the agency shall distribute to each

 3  statutory teaching hospital, as defined in s. 408.07, an

 4  amount determined by multiplying one-fourth of the funds

 5  appropriated for this purpose by the Legislature times such

 6  hospital's allocation fraction.  The allocation fraction for

 7  each such hospital shall be determined by the sum of three

 8  primary factors, divided by three. The primary factors are:

 9         (a)  The number of nationally accredited graduate

10  medical education programs offered by the hospital, including

11  programs accredited by the Accreditation Council for Graduate

12  Medical Education and the combined Internal Medicine and

13  Pediatrics programs acceptable to both the American Board of

14  Internal Medicine and the American Board of Pediatrics at the

15  beginning of the state fiscal year preceding the date on which

16  the allocation fraction is calculated. The numerical value of

17  this factor is the fraction that the hospital represents of

18  the total number of programs, where the total is computed for

19  all state statutory teaching hospitals.

20         (b)  The number of full-time equivalent trainees in the

21  hospital, which comprises two components:

22         1.  The number of trainees enrolled in nationally

23  accredited graduate medical education programs, as defined in

24  paragraph (a).  Full-time equivalents are computed using the

25  fraction of the year during which each trainee is primarily

26  assigned to the given institution, over the state fiscal year

27  preceding the date on which the allocation fraction is

28  calculated. The numerical value of this factor is the fraction

29  that the hospital represents of the total number of full-time

30  equivalent trainees enrolled in accredited graduate programs,

31  


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    CS for SB 1116                                 First Engrossed



 1  where the total is computed for all state statutory teaching

 2  hospitals.

 3         2.  The number of medical students enrolled in

 4  accredited colleges of medicine and engaged in clinical

 5  activities, including required clinical clerkships and

 6  clinical electives.  Full-time equivalents are computed using

 7  the fraction of the year during which each trainee is

 8  primarily assigned to the given institution, over the course

 9  of the state fiscal year preceding the date on which the

10  allocation fraction is calculated. The numerical value of this

11  factor is the fraction that the given hospital represents of

12  the total number of full-time equivalent students enrolled in

13  accredited colleges of medicine, where the total is computed

14  for all state statutory teaching hospitals.

15  

16  The primary factor for full-time equivalent trainees is

17  computed as the sum of these two components, divided by two.

18         (c)  A service index that comprises three components:

19         1.  The Agency for Health Care Administration Service

20  Index, computed by applying the standard Service Inventory

21  Scores established by the Agency for Health Care

22  Administration to services offered by the given hospital, as

23  reported on Worksheet A-2 for the last fiscal year reported to

24  the agency before the date on which the allocation fraction is

25  calculated.  The numerical value of this factor is the

26  fraction that the given hospital represents of the total

27  Agency for Health Care Administration Service Index values,

28  where the total is computed for all state statutory teaching

29  hospitals.

30         2.  A volume-weighted service index, computed by

31  applying the standard Service Inventory Scores established by


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    CS for SB 1116                                 First Engrossed



 1  the Agency for Health Care Administration to the volume of

 2  each service, expressed in terms of the standard units of

 3  measure reported on Worksheet A-2 for the last fiscal year

 4  reported to the agency before the date on which the allocation

 5  factor is calculated.  The numerical value of this factor is

 6  the fraction that the given hospital represents of the total

 7  volume-weighted service index values, where the total is

 8  computed for all state statutory teaching hospitals.

 9         3.  Total Medicaid payments to each hospital for direct

10  inpatient and outpatient services during the fiscal year

11  preceding the date on which the allocation factor is

12  calculated.  This includes payments made to each hospital for

13  such services by Medicaid prepaid health plans, whether the

14  plan was administered by the hospital or not.  The numerical

15  value of this factor is the fraction that each hospital

16  represents of the total of such Medicaid payments, where the

17  total is computed for all state statutory teaching hospitals.

18  

19  The primary factor for the service index is computed as the

20  sum of these three components, divided by three.

21         (2)  By October 1 of each year, the agency shall use

22  the following formula to calculate the maximum additional

23  disproportionate share payment for statutorily defined

24  teaching hospitals:

25  

26                          TAP = THAF x A

27  

28  Where:

29         TAP = total additional payment.

30         THAF = teaching hospital allocation factor.

31  


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    CS for SB 1116                                 First Engrossed



 1         A = amount appropriated for a teaching hospital

 2  disproportionate share program.

 3         Section 4.  Section 409.9117, Florida Statutes, is

 4  amended to read:

 5         409.9117  Primary care disproportionate share

 6  program.--For the state fiscal year 2007-2008 2006-2007, the

 7  agency shall not distribute moneys under the primary care

 8  disproportionate share program.

 9         (1)  If federal funds are available for

10  disproportionate share programs in addition to those otherwise

11  provided by law, there shall be created a primary care

12  disproportionate share program.

13         (2)  The following formula shall be used by the agency

14  to calculate the total amount earned for hospitals that

15  participate in the primary care disproportionate share

16  program:

17  

18                         TAE = HDSP/THDSP

19  

20  Where:

21         TAE = total amount earned by a hospital participating

22  in the primary care disproportionate share program.

23         HDSP = the prior state fiscal year primary care

24  disproportionate share payment to the individual hospital.

25         THDSP = the prior state fiscal year total primary care

26  disproportionate share payments to all hospitals.

27  

28         (3)  The total additional payment for hospitals that

29  participate in the primary care disproportionate share program

30  shall be calculated by the agency as follows:

31  


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    CS for SB 1116                                 First Engrossed



 1                          TAP = TAE x TA

 2  

 3  Where:

 4         TAP = total additional payment for a primary care

 5  hospital.

 6         TAE = total amount earned by a primary care hospital.

 7         TA = total appropriation for the primary care

 8  disproportionate share program.

 9  

10         (4)  In the establishment and funding of this program,

11  the agency shall use the following criteria in addition to

12  those specified in s. 409.911, payments may not be made to a

13  hospital unless the hospital agrees to:

14         (a)  Cooperate with a Medicaid prepaid health plan, if

15  one exists in the community.

16         (b)  Ensure the availability of primary and specialty

17  care physicians to Medicaid recipients who are not enrolled in

18  a prepaid capitated arrangement and who are in need of access

19  to such physicians.

20         (c)  Coordinate and provide primary care services free

21  of charge, except copayments, to all persons with incomes up

22  to 100 percent of the federal poverty level who are not

23  otherwise covered by Medicaid or another program administered

24  by a governmental entity, and to provide such services based

25  on a sliding fee scale to all persons with incomes up to 200

26  percent of the federal poverty level who are not otherwise

27  covered by Medicaid or another program administered by a

28  governmental entity, except that eligibility may be limited to

29  persons who reside within a more limited area, as agreed to by

30  the agency and the hospital.

31  


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    CS for SB 1116                                 First Engrossed



 1         (d)  Contract with any federally qualified health

 2  center, if one exists within the agreed geopolitical

 3  boundaries, concerning the provision of primary care services,

 4  in order to guarantee delivery of services in a nonduplicative

 5  fashion, and to provide for referral arrangements, privileges,

 6  and admissions, as appropriate.  The hospital shall agree to

 7  provide at an onsite or offsite facility primary care services

 8  within 24 hours to which all Medicaid recipients and persons

 9  eligible under this paragraph who do not require emergency

10  room services are referred during normal daylight hours.

11         (e)  Cooperate with the agency, the county, and other

12  entities to ensure the provision of certain public health

13  services, case management, referral and acceptance of

14  patients, and sharing of epidemiological data, as the agency

15  and the hospital find mutually necessary and desirable to

16  promote and protect the public health within the agreed

17  geopolitical boundaries.

18         (f)  In cooperation with the county in which the

19  hospital resides, develop a low-cost, outpatient, prepaid

20  health care program to persons who are not eligible for the

21  Medicaid program, and who reside within the area.

22         (g)  Provide inpatient services to residents within the

23  area who are not eligible for Medicaid or Medicare, and who do

24  not have private health insurance, regardless of ability to

25  pay, on the basis of available space, except that nothing

26  shall prevent the hospital from establishing bill collection

27  programs based on ability to pay.

28         (h)  Work with the Florida Healthy Kids Corporation,

29  the Florida Health Care Purchasing Cooperative, and business

30  health coalitions, as appropriate, to develop a feasibility

31  study and plan to provide a low-cost comprehensive health


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    CS for SB 1116                                 First Engrossed



 1  insurance plan to persons who reside within the area and who

 2  do not have access to such a plan.

 3         (i)  Work with public health officials and other

 4  experts to provide community health education and prevention

 5  activities designed to promote healthy lifestyles and

 6  appropriate use of health services.

 7         (j)  Work with the local health council to develop a

 8  plan for promoting access to affordable health care services

 9  for all persons who reside within the area, including, but not

10  limited to, public health services, primary care services,

11  inpatient services, and affordable health insurance generally.

12  

13  Any hospital that fails to comply with any of the provisions

14  of this subsection, or any other contractual condition, may

15  not receive payments under this section until full compliance

16  is achieved.

17         Section 5.  Paragraph (b) of subsection (4) of section

18  409.912, Florida Statutes, is amended to read:

19         409.912  Cost-effective purchasing of health care.--The

20  agency shall purchase goods and services for Medicaid

21  recipients in the most cost-effective manner consistent with

22  the delivery of quality medical care. To ensure that medical

23  services are effectively utilized, the agency may, in any

24  case, require a confirmation or second physician's opinion of

25  the correct diagnosis for purposes of authorizing future

26  services under the Medicaid program. This section does not

27  restrict access to emergency services or poststabilization

28  care services as defined in 42 C.F.R. part 438.114. Such

29  confirmation or second opinion shall be rendered in a manner

30  approved by the agency. The agency shall maximize the use of

31  prepaid per capita and prepaid aggregate fixed-sum basis


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    CS for SB 1116                                 First Engrossed



 1  services when appropriate and other alternative service

 2  delivery and reimbursement methodologies, including

 3  competitive bidding pursuant to s. 287.057, designed to

 4  facilitate the cost-effective purchase of a case-managed

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

 6  minimize the exposure of recipients to the need for acute

 7  inpatient, custodial, and other institutional care and the

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

 9  agency shall contract with a vendor to monitor and evaluate

10  the clinical practice patterns of providers in order to

11  identify trends that are outside the normal practice patterns

12  of a provider's professional peers or the national guidelines

13  of a provider's professional association. The vendor must be

14  able to provide information and counseling to a provider whose

15  practice patterns are outside the norms, in consultation with

16  the agency, to improve patient care and reduce inappropriate

17  utilization. The agency may mandate prior authorization, drug

18  therapy management, or disease management participation for

19  certain populations of Medicaid beneficiaries, certain drug

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

21  and possible dangerous drug interactions. The Pharmaceutical

22  and Therapeutics Committee shall make recommendations to the

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

24  agency shall inform the Pharmaceutical and Therapeutics

25  Committee of its decisions regarding drugs subject to prior

26  authorization. The agency is authorized to limit the entities

27  it contracts with or enrolls as Medicaid providers by

28  developing a provider network through provider credentialing.

29  The agency may competitively bid single-source-provider

30  contracts if procurement of goods or services results in

31  demonstrated cost savings to the state without limiting access


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    CS for SB 1116                                 First Engrossed



 1  to care. The agency may limit its network based on the

 2  assessment of beneficiary access to care, provider

 3  availability, provider quality standards, time and distance

 4  standards for access to care, the cultural competence of the

 5  provider network, demographic characteristics of Medicaid

 6  beneficiaries, practice and provider-to-beneficiary standards,

 7  appointment wait times, beneficiary use of services, provider

 8  turnover, provider profiling, provider licensure history,

 9  previous program integrity investigations and findings, peer

10  review, provider Medicaid policy and billing compliance

11  records, clinical and medical record audits, and other

12  factors. Providers shall not be entitled to enrollment in the

13  Medicaid provider network. The agency shall determine

14  instances in which allowing Medicaid beneficiaries to purchase

15  durable medical equipment and other goods is less expensive to

16  the Medicaid program than long-term rental of the equipment or

17  goods. The agency may establish rules to facilitate purchases

18  in lieu of long-term rentals in order to protect against fraud

19  and abuse in the Medicaid program as defined in s. 409.913.

20  The agency may seek federal waivers necessary to administer

21  these policies.

22         (4)  The agency may contract with:

23         (b)  An entity that is providing comprehensive

24  behavioral health care services to certain Medicaid recipients

25  through a capitated, prepaid arrangement pursuant to the

26  federal waiver provided for by s. 409.905(5). Such an entity

27  must be licensed under chapter 624, chapter 636, or chapter

28  641 and must possess the clinical systems and operational

29  competence to manage risk and provide comprehensive behavioral

30  health care to Medicaid recipients. As used in this paragraph,

31  the term "comprehensive behavioral health care services" means


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    CS for SB 1116                                 First Engrossed



 1  covered mental health and substance abuse treatment services

 2  that are available to Medicaid recipients. The secretary of

 3  the Department of Children and Family Services shall approve

 4  provisions of procurements related to children in the

 5  department's care or custody prior to enrolling such children

 6  in a prepaid behavioral health plan. Any contract awarded

 7  under this paragraph must be competitively procured. In

 8  developing the behavioral health care prepaid plan procurement

 9  document, the agency shall ensure that the procurement

10  document requires the contractor to develop and implement a

11  plan to ensure compliance with s. 394.4574 related to services

12  provided to residents of licensed assisted living facilities

13  that hold a limited mental health license. Except as provided

14  in subparagraph 8., and except in counties where the Medicaid

15  managed care pilot program is authorized pursuant to s.

16  409.91211, the agency shall seek federal approval to contract

17  with a single entity meeting these requirements to provide

18  comprehensive behavioral health care services to all Medicaid

19  recipients not enrolled in a Medicaid managed care plan

20  authorized under s. 409.91211 or a Medicaid health maintenance

21  organization in an AHCA area. In an AHCA area where the

22  Medicaid managed care pilot program is authorized pursuant to

23  s. 409.91211 in one or more counties, the agency may procure a

24  contract with a single entity to serve the remaining counties

25  as an AHCA area or the remaining counties may be included with

26  an adjacent AHCA area and shall be subject to this paragraph.

27  Each entity must offer sufficient choice of providers in its

28  network to ensure recipient access to care and the opportunity

29  to select a provider with whom they are satisfied. The network

30  shall include all public mental health hospitals. To ensure

31  unimpaired access to behavioral health care services by


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    CS for SB 1116                                 First Engrossed



 1  Medicaid recipients, all contracts issued pursuant to this

 2  paragraph shall require 80 percent of the capitation paid to

 3  the managed care plan, including health maintenance

 4  organizations, to be expended for the provision of behavioral

 5  health care services. In the event the managed care plan

 6  expends less than 80 percent of the capitation paid pursuant

 7  to this paragraph for the provision of behavioral health care

 8  services, the difference shall be returned to the agency. The

 9  agency shall provide the managed care plan with a

10  certification letter indicating the amount of capitation paid

11  during each calendar year for the provision of behavioral

12  health care services pursuant to this section. The agency may

13  reimburse for substance abuse treatment services on a

14  fee-for-service basis until the agency finds that adequate

15  funds are available for capitated, prepaid arrangements.

16         1.  By January 1, 2001, the agency shall modify the

17  contracts with the entities providing comprehensive inpatient

18  and outpatient mental health care services to Medicaid

19  recipients in Hillsborough, Highlands, Hardee, Manatee, and

20  Polk Counties, to include substance abuse treatment services.

21         2.  By July 1, 2003, the agency and the Department of

22  Children and Family Services shall execute a written agreement

23  that requires collaboration and joint development of all

24  policy, budgets, procurement documents, contracts, and

25  monitoring plans that have an impact on the state and Medicaid

26  community mental health and targeted case management programs.

27         3.  Except as provided in subparagraph 8., by July 1,

28  2006, the agency and the Department of Children and Family

29  Services shall contract with managed care entities in each

30  AHCA area except area 6 or arrange to provide comprehensive

31  inpatient and outpatient mental health and substance abuse


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    CS for SB 1116                                 First Engrossed



 1  services through capitated prepaid arrangements to all

 2  Medicaid recipients who are eligible to participate in such

 3  plans under federal law and regulation. In AHCA areas where

 4  eligible individuals number less than 150,000, the agency

 5  shall contract with a single managed care plan to provide

 6  comprehensive behavioral health services to all recipients who

 7  are not enrolled in a Medicaid health maintenance organization

 8  or a Medicaid capitated managed care plan authorized under s.

 9  409.91211. The agency may contract with more than one

10  comprehensive behavioral health provider to provide care to

11  recipients who are not enrolled in a Medicaid capitated

12  managed care plan authorized under s. 409.91211 or a Medicaid

13  health maintenance organization in AHCA areas where the

14  eligible population exceeds 150,000. In an AHCA area where the

15  Medicaid managed care pilot program is authorized pursuant to

16  s. 409.91211 in one or more counties, the agency may procure a

17  contract with a single entity to serve the remaining counties

18  as an AHCA area or the remaining counties may be included with

19  an adjacent AHCA area and shall be subject to this paragraph.

20  Contracts for comprehensive behavioral health providers

21  awarded pursuant to this section shall be competitively

22  procured. Both for-profit and not-for-profit corporations

23  shall be eligible to compete. Managed care plans contracting

24  with the agency under subsection (3) shall provide and receive

25  payment for the same comprehensive behavioral health benefits

26  as provided in AHCA rules, including handbooks incorporated by

27  reference. In AHCA area 11, the agency shall contract with at

28  least two comprehensive behavioral health care providers to

29  provide behavioral health care to recipients in that area who

30  are enrolled in, or assigned to, the MediPass program. One of

31  the behavioral health care contracts shall be with the


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    CS for SB 1116                                 First Engrossed



 1  existing provider service network pilot project, as described

 2  in paragraph (d), for the purpose of demonstrating the

 3  cost-effectiveness of the provision of quality mental health

 4  services through a public hospital-operated managed care

 5  model. Payment shall be at an agreed-upon capitated rate to

 6  ensure cost savings. Of the recipients in area 11 who are

 7  assigned to MediPass under the provisions of s.

 8  409.9122(2)(k), a minimum of 50,000 of those MediPass-enrolled

 9  recipients shall be assigned to the existing provider service

10  network in area 11 for their behavioral care.

11         4.  By October 1, 2003, the agency and the department

12  shall submit a plan to the Governor, the President of the

13  Senate, and the Speaker of the House of Representatives which

14  provides for the full implementation of capitated prepaid

15  behavioral health care in all areas of the state.

16         a.  Implementation shall begin in 2003 in those AHCA

17  areas of the state where the agency is able to establish

18  sufficient capitation rates.

19         b.  If the agency determines that the proposed

20  capitation rate in any area is insufficient to provide

21  appropriate services, the agency may adjust the capitation

22  rate to ensure that care will be available. The agency and the

23  department may use existing general revenue to address any

24  additional required match but may not over-obligate existing

25  funds on an annualized basis.

26         c.  Subject to any limitations provided for in the

27  General Appropriations Act, the agency, in compliance with

28  appropriate federal authorization, shall develop policies and

29  procedures that allow for certification of local and state

30  funds.

31  


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    CS for SB 1116                                 First Engrossed



 1         5.  Children residing in a statewide inpatient

 2  psychiatric program, or in a Department of Juvenile Justice or

 3  a Department of Children and Family Services residential

 4  program approved as a Medicaid behavioral health overlay

 5  services provider shall not be included in a behavioral health

 6  care prepaid health plan or any other Medicaid managed care

 7  plan pursuant to this paragraph.

 8         6.  In converting to a prepaid system of delivery, the

 9  agency shall in its procurement document require an entity

10  providing only comprehensive behavioral health care services

11  to prevent the displacement of indigent care patients by

12  enrollees in the Medicaid prepaid health plan providing

13  behavioral health care services from facilities receiving

14  state funding to provide indigent behavioral health care, to

15  facilities licensed under chapter 395 which do not receive

16  state funding for indigent behavioral health care, or

17  reimburse the unsubsidized facility for the cost of behavioral

18  health care provided to the displaced indigent care patient.

19         7.  Traditional community mental health providers under

20  contract with the Department of Children and Family Services

21  pursuant to part IV of chapter 394, child welfare providers

22  under contract with the Department of Children and Family

23  Services in areas 1 and 6, and inpatient mental health

24  providers licensed pursuant to chapter 395 must be offered an

25  opportunity to accept or decline a contract to participate in

26  any provider network for prepaid behavioral health services.

27         8.  For fiscal year 2004-2005, all Medicaid eligible

28  children, except children in areas 1 and 6, whose cases are

29  open for child welfare services in the HomeSafeNet system,

30  shall be enrolled in MediPass or in Medicaid fee-for-service

31  and all their behavioral health care services including


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    CS for SB 1116                                 First Engrossed



 1  inpatient, outpatient psychiatric, community mental health,

 2  and case management shall be reimbursed on a fee-for-service

 3  basis. Beginning July 1, 2005, such children, who are open for

 4  child welfare services in the HomeSafeNet system, shall

 5  receive their behavioral health care services through a

 6  specialty prepaid plan operated by community-based lead

 7  agencies either through a single agency or formal agreements

 8  among several agencies. The specialty prepaid plan must result

 9  in savings to the state comparable to savings achieved in

10  other Medicaid managed care and prepaid programs. Such plan

11  must provide mechanisms to maximize state and local revenues.

12  The specialty prepaid plan shall be developed by the agency

13  and the Department of Children and Family Services. The agency

14  is authorized to seek any federal waivers to implement this

15  initiative. Medicaid-eligible children whose cases are open

16  for child welfare services in the HomeSafeNet system and who

17  reside in AHCA Area 10 are exempt from the plan upon

18  development of a service delivery system for Area 10 children

19  in the reform area under the conditions set forth in s.

20  409.91211(3)(dd).

21         Section 6.  Paragraph (dd) of subsection (3) of section

22  409.91211, Florida Statutes, is amended to read:

23         409.91211  Medicaid managed care pilot program.--

24         (3)  The agency shall have the following powers,

25  duties, and responsibilities with respect to the pilot

26  program:

27         (dd)  To implement develop and recommend service

28  delivery mechanisms within a provider service network or

29  capitated managed care plan plans to provide Medicaid services

30  as specified in ss. 409.905 and 409.906 to Medicaid-eligible

31  children who are open for child welfare services in the


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    CS for SB 1116                                 First Engrossed



 1  HomeSafeNet system in foster care. These services must be

 2  coordinated with community-based care providers as specified

 3  in s. 409.1671 s. 409.1675, where available, and be sufficient

 4  to meet the medical, developmental, behavioral, and emotional

 5  needs of these children. Covered behavioral health services

 6  must include all services currently included in the specialty

 7  prepaid plan as implemented under s. 409.912(4)(b). These

 8  service-delivery mechanisms must be implemented no later than

 9  July 1, 2008, in AHCA Area 10 in order for the children in

10  AHCA Area 10 to remain exempt from the statewide plan under s.

11  409.912(4)(b)8.

12         Section 7.  This act shall take effect July 1, 2007.

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