Florida Senate - 2008 PROPOSED COMMITTEE SUBSTITUTE

Bill No. SB 1854

800184

603-05957C-08

Proposed Committee Substitute by the Committee on Health and Human

Services Appropriations

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A bill to be entitled

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An act relating to the Medicaid program; amending s.

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409.904, F.S.; discontinuing optional Medicaid payments

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for certain persons age 65 or over or who are blind or

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disabled; revising certain eligibility criteria for

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pregnant women and children younger than 21; amending s.

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409.906, F.S.; discontinuing adult dental services and

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adult hearing services on a certain date; amending s.

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409.908, F.S.; requiring Medicaid to pay for all

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deductibles and coinsurance for portable X-ray Medicare

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Part B services provided in a nursing home; revising the

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factors used to determine the reimbursement rate to

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providers for Medicaid prescribed drugs; requiring the

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agency to reduce certain provider reimbursement rates as

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prescribed in the appropriations act; providing that any

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increases in rates as subject to the appropriations act;

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amending s. 409.911, F.S.; revising which year's

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disproportionate data is used to determine a hospital's

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Medicaid days and charity care during the 2008-2009 fiscal

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year; amending s. 409.9112, F.S.; prohibiting the Agency

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for Health Care Administration from distributing moneys

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under the regional perinatal intensive care

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disproportionate share program during the 2008-2009 fiscal

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year; amending s. 409.9113, F.S.; authorizing the agency

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to distribute disproportionate share funds to teaching

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hospital during the 2008-2009 fiscal year; providing that

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such funds may be distributed as provided in the

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appropriations act; amending s. 409.9117, F.S.;

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prohibiting the distribution of funds under the primary

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disproportionate share program during the 2008-2009 fiscal

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year; amending s. 409.912, F.S.; revising the factors used

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to determine the reimbursement rate to pharmacies for

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Medicaid prescribed drugs; revising the requirement for

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the agency to develop a utilization management program for

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Medicaid recipients for certain therapies; amending s.

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409.9122, F.S.; revising enrollment requirements relating

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to Medicaid managed care programs and the agency's

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authority to assign persons to MediPass or a managed care

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plan; repealing s. 409.905(5)(c), F.S., relating to the

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agency's authority to adjust a hospital's inpatient per

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diem rate; repealing s. 430.83, F.S., relating to the

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Sunshine for Seniors Program; providing an effective date.

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

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     Section 1.  Subsections (1) and (2) of section 409.904,

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Florida Statutes, are amended to read:

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     409.904  Optional payments for eligible persons.--The agency

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may make payments for medical assistance and related services on

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behalf of the following persons who are determined to be eligible

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subject to the income, assets, and categorical eligibility tests

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set forth in federal and state law. Payment on behalf of these

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Medicaid eligible persons is subject to the availability of

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moneys and any limitations established by the General

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Appropriations Act or chapter 216.

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     (1)(a) From July 1, 2005, through December 31, 2005, a

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person who is age 65 or older or is determined to be disabled,

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whose income is at or below 88 percent of federal poverty level,

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and whose assets do not exceed established limitations.

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     (b) Effective January 1, 2006, and subject to federal

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waiver approval, a person who is age 65 or older or is determined

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to be disabled, whose income is at or below 88 percent of the

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federal poverty level, whose assets do not exceed established

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limitations, and who is not eligible for Medicare or, if eligible

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for Medicare, is also eligible for and receiving Medicaid-covered

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institutional care services, hospice services, or home and

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community-based services. The agency shall seek federal

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authorization through a waiver to provide this coverage. This

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subsection expires October 31, 2008.

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     (2)(a) A family, a pregnant woman, a child under age 21, a

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person age 65 or over, or a blind or disabled person, who would

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be eligible under any group listed in s. 409.903(1), (2), or (3),

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except that the income or assets of such family or person exceed

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established limitations. For a family or person in one of these

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coverage groups, medical expenses are deductible from income in

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accordance with federal requirements in order to make a

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determination of eligibility. A family or person eligible under

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the coverage known as the "medically needy," is eligible to

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receive the same services as other Medicaid recipients, with the

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exception of services in skilled nursing facilities and

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intermediate care facilities for the developmentally disabled.

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This paragraph expires October 31, 2008.

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     (b) Effective November 1, 2008, a pregnant woman or a child

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younger than 21 years of age who would be eligible under any

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group listed in s. 409.903, except that the income or assets of

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such group exceed established limitations. For a person in one of

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these coverage groups, medical expenses are deductible from

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income in accordance with federal requirements in order to made a

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determination of eligibility. A person eligible under the

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coverage known as the "medically needy" is eligible to receive

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the same services as other Medicaid recipients, with the

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exception of services in skilled nursing facilities and

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intermediate care facilities for the developmentally disabled.

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     Section 2.  Subsections (1) and (12) of section 409.906,

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Florida Statutes, are amended to read:

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     409.906  Optional Medicaid services.--Subject to specific

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appropriations, the agency may make payments for services which

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are optional to the state under Title XIX of the Social Security

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Act and are furnished by Medicaid providers to recipients who are

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determined to be eligible on the dates on which the services were

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provided. Any optional service that is provided shall be provided

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only when medically necessary and in accordance with state and

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federal law. Optional services rendered by providers in mobile

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units to Medicaid recipients may be restricted or prohibited by

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the agency. Nothing in this section shall be construed to prevent

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or limit the agency from adjusting fees, reimbursement rates,

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lengths of stay, number of visits, or number of services, or

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making any other adjustments necessary to comply with the

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availability of moneys and any limitations or directions provided

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for in the General Appropriations Act or chapter 216. If

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necessary to safeguard the state's systems of providing services

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to elderly and disabled persons and subject to the notice and

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review provisions of s. 216.177, the Governor may direct the

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Agency for Health Care Administration to amend the Medicaid state

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plan to delete the optional Medicaid service known as

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"Intermediate Care Facilities for the Developmentally Disabled."

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Optional services may include:

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     (1)  ADULT DENTAL SERVICES.--

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     (a)  The agency may pay for medically necessary, emergency

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dental procedures to alleviate pain or infection. Emergency

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dental care shall be limited to emergency oral examinations,

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necessary radiographs, extractions, and incision and drainage of

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abscess, for a recipient who is 21 years of age or older.

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     (b)  Beginning July 1, 2006, the agency may pay for full or

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partial dentures, the procedures required to seat full or partial

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dentures, and the repair and reline of full or partial dentures,

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provided by or under the direction of a licensed dentist, for a

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recipient who is 21 years of age or older.

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     (c) However, Medicaid may will not provide reimbursement

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for dental services provided in a mobile dental unit, except for

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a mobile dental unit:

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     1.  Owned by, operated by, or having a contractual agreement

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with the Department of Health and complying with Medicaid's

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county health department clinic services program specifications

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as a county health department clinic services provider.

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     2.  Owned by, operated by, or having a contractual

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arrangement with a federally qualified health center and

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complying with Medicaid's federally qualified health center

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specifications as a federally qualified health center provider.

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     3.  Rendering dental services to Medicaid recipients, 21

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years of age and older, at nursing facilities.

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     4.  Owned by, operated by, or having a contractual agreement

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with a state-approved dental educational institution.

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     (d) This subsection expires September 30, 2008.

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     (12)  HEARING SERVICES.--The agency may pay for hearing and

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related services, including hearing evaluations, hearing aid

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devices, dispensing of the hearing aid, and related repairs, if

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provided to a recipient by a licensed hearing aid specialist,

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otolaryngologist, otologist, audiologist, or physician. Effective

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October 1, 2008, the agency may not pay for hearing services for

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adults.

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     Section 3.  Paragraph (d) of subsection (13) and subsection

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(14) of section 409.908, Florida Statutes, are amended, and

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subsection (23) is added to that section, to read:

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     409.908  Reimbursement of Medicaid providers.--Subject to

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specific appropriations, the agency shall reimburse Medicaid

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providers, in accordance with state and federal law, according to

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methodologies set forth in the rules of the agency and in policy

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manuals and handbooks incorporated by reference therein. These

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methodologies may include fee schedules, reimbursement methods

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based on cost reporting, negotiated fees, competitive bidding

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pursuant to s. 287.057, and other mechanisms the agency considers

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efficient and effective for purchasing services or goods on

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behalf of recipients. If a provider is reimbursed based on cost

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reporting and submits a cost report late and that cost report

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would have been used to set a lower reimbursement rate for a rate

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semester, then the provider's rate for that semester shall be

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retroactively calculated using the new cost report, and full

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payment at the recalculated rate shall be effected retroactively.

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Medicare-granted extensions for filing cost reports, if

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applicable, shall also apply to Medicaid cost reports. Payment

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for Medicaid compensable services made on behalf of Medicaid

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eligible persons is subject to the availability of moneys and any

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limitations or directions provided for in the General

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Appropriations Act or chapter 216. Further, nothing in this

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section shall be construed to prevent or limit the agency from

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adjusting fees, reimbursement rates, lengths of stay, number of

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visits, or number of services, or making any other adjustments

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necessary to comply with the availability of moneys and any

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limitations or directions provided for in the General

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Appropriations Act, provided the adjustment is consistent with

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legislative intent.

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     (13)  Medicare premiums for persons eligible for both

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Medicare and Medicaid coverage shall be paid at the rates

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established by Title XVIII of the Social Security Act. For

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Medicare services rendered to Medicaid-eligible persons, Medicaid

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shall pay Medicare deductibles and coinsurance as follows:

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     (d)  Notwithstanding paragraphs (a)-(c):

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     1.  Medicaid payments for Nursing Home Medicare part A

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coinsurance are shall be limited to the Medicaid nursing home per

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diem rate less any amounts paid by Medicare, but only up to the

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amount of Medicare coinsurance. The Medicaid per diem rate shall

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be the rate in effect for the dates of service of the crossover

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claims and may not be subsequently adjusted due to subsequent per

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diem rate adjustments.

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     2.  Medicaid shall pay all deductibles and coinsurance for

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Medicare-eligible recipients receiving freestanding end stage

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renal dialysis center services.

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     3.  Medicaid payments for general hospital inpatient

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services are shall be limited to the Medicare deductible per

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spell of illness. Medicaid may not pay for shall make no payment

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toward coinsurance for Medicare general hospital inpatient

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services.

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     4.  Medicaid shall pay all deductibles and coinsurance for

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Medicare emergency transportation services provided by ambulances

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licensed pursuant to chapter 401.

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     5. Medicaid shall pay all deductibles and coinsurance for

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portable X-ray Medicare Part B services provided in a nursing

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home.

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     (14)  A provider of prescribed drugs shall be reimbursed the

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least of the amount billed by the provider, the provider's usual

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and customary charge, or the Medicaid maximum allowable fee

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established by the agency, plus a dispensing fee. The Medicaid

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maximum allowable fee for ingredient cost is will be based on the

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lower of: average wholesale price (AWP) minus 16.4 15.4 percent,

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wholesaler acquisition cost (WAC) plus 4.75 5.75 percent, the

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federal upper limit (FUL), the state maximum allowable cost

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(SMAC), or the usual and customary (UAC) charge billed by the

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provider. Medicaid providers are required to dispense generic

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drugs if available at lower cost and the agency has not

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determined that the branded product is more cost-effective,

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unless the prescriber has requested and received approval to

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require the branded product. The agency is directed to implement

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a variable dispensing fee for payments for prescribed medicines

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while ensuring continued access for Medicaid recipients. The

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variable dispensing fee may be based upon, but not limited to,

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either or both the volume of prescriptions dispensed by a

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specific pharmacy provider, the volume of prescriptions dispensed

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to an individual recipient, and dispensing of preferred-drug-list

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products. The agency may increase the pharmacy dispensing fee

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authorized by statute and in the annual General Appropriations

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Act by $0.50 for the dispensing of a Medicaid preferred-drug-list

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product and reduce the pharmacy dispensing fee by $0.50 for the

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dispensing of a Medicaid product that is not included on the

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preferred drug list. The agency may establish a supplemental

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pharmaceutical dispensing fee to be paid to providers returning

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unused unit-dose packaged medications to stock and crediting the

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Medicaid program for the ingredient cost of those medications if

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the ingredient costs to be credited exceed the value of the

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supplemental dispensing fee. The agency is authorized to limit

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reimbursement for prescribed medicine in order to comply with any

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limitations or directions provided for in the General

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Appropriations Act, which may include implementing a prospective

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or concurrent utilization review program.

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     (23)(a) Effective July 1, 2008, the agency shall reduce

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provider reimbursement rates on a recurring basis as prescribed

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in the general appropriations act for the following provider

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types:

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     1. Inpatient hospitals.

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     2. Outpatient hospitals.

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     3. Nursing homes.

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     4. County health departments.

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     5. Community intermediate care facilities for the

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developmentally disabled.

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     6. Prepaid health plans.

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     (b) Any increase in reimbursement is subject to a specific

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appropriation by the Legislature.

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     Section 4.  Paragraph (a) of subsection (2) of section

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409.911, Florida Statutes, is amended to read:

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     409.911  Disproportionate share program.--Subject to

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specific allocations established within the General

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Appropriations Act and any limitations established pursuant to

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chapter 216, the agency shall distribute, pursuant to this

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section, moneys to hospitals providing a disproportionate share

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of Medicaid or charity care services by making quarterly Medicaid

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payments as required. Notwithstanding the provisions of s.

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409.915, counties are exempt from contributing toward the cost of

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this special reimbursement for hospitals serving a

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disproportionate share of low-income patients.

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     (2)  The Agency for Health Care Administration shall use the

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following actual audited data to determine the Medicaid days and

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charity care to be used in calculating the disproportionate share

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payment:

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     (a) The average of the 2000, 2001, and 2002, 2003, and 2004

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audited disproportionate share data to determine each hospital's

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Medicaid days and charity care for the 2008-2009 2006-2007 state

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fiscal year.

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     Section 5.  Section 409.9112, Florida Statutes, is amended

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to read:

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     409.9112  Disproportionate share program for regional

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

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made under s. 409.911, the agency for Health Care Administration

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shall design and implement a system of making disproportionate

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share payments to those hospitals that participate in the

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regional perinatal intensive care center program established

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pursuant to chapter 383. This system of payments shall conform to

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with federal requirements and shall distribute funds in each

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fiscal year for which an appropriation is made by making

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quarterly Medicaid payments. Notwithstanding the provisions of s.

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409.915, counties are exempt from contributing toward the cost of

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this special reimbursement for hospitals serving a

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disproportionate share of low-income patients. For the 2008-2009

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state fiscal year 2005-2006, the agency may shall not distribute

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moneys under the regional perinatal intensive care centers

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disproportionate share program.

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

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calculate the total amount earned for hospitals that participate

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in the regional perinatal intensive care center program:

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TAE = HDSP/THDSP

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Where:

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     TAE = total amount earned by a regional perinatal intensive

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care center.

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     HDSP = the prior state fiscal year regional perinatal

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intensive care center disproportionate share payment to the

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individual hospital.

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     THDSP = the prior state fiscal year total regional perinatal

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intensive care center disproportionate share payments to all

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hospitals.

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     (2)  The total additional payment for hospitals that

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participate in the regional perinatal intensive care center

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program shall be calculated by the agency as follows:

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TAP = TAE x TA

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Where:

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     TAP = total additional payment for a regional perinatal

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intensive care center.

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     TAE = total amount earned by a regional perinatal intensive

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care center.

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     TA = total appropriation for the regional perinatal

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intensive care center disproportionate share program.

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

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hospital must be participating in the regional perinatal

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intensive care center program pursuant to chapter 383 and must

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meet the following additional requirements:

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     (a)  Agree to conform to all departmental and agency

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requirements to ensure high quality in the provision of services,

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including criteria adopted by departmental and agency rule

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concerning staffing ratios, medical records, standards of care,

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equipment, space, and such other standards and criteria as the

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department and agency deem appropriate as specified by rule.

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     (b)  Agree to provide information to the department and

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

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department and agency, concerning the care provided to all

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patients in neonatal intensive care centers and high-risk

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maternity care.

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     (c)  Agree to accept all patients for neonatal intensive

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care and high-risk maternity care, regardless of ability to pay,

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on a functional space-available basis.

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     (d)  Agree to develop arrangements with other maternity and

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neonatal care providers in the hospital's region for the

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appropriate receipt and transfer of patients in need of

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specialized maternity and neonatal intensive care services.

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     (e)  Agree to establish and provide a developmental

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evaluation and services program for certain high-risk neonates,

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as prescribed and defined by rule of the department.

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

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perinatal care for health care professionals within the region of

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the hospital, as specified by rule.

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

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department's county health departments and other low-income

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perinatal providers within the hospital's region, including the

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development of written agreements between these organizations and

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the hospital.

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

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obstetrical patients and neonates in need of transfer from the

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community to the hospital or from the hospital to another more

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appropriate facility.

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

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

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department and agency may shall not receive any payments under

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this section until full compliance is achieved. A hospital which

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is not in compliance in two or more consecutive quarters may

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

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shall be distributed by the remaining participating regional

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perinatal intensive care center program hospitals.

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     Section 6.  Section 409.9113, Florida Statutes, is amended

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to read:

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     409.9113  Disproportionate share program for teaching

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

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and 409.9112, the agency for Health Care Administration shall

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make disproportionate share payments to statutorily defined

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teaching hospitals for their increased costs associated with

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medical education programs and for tertiary health care services

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provided to the indigent. This system of payments shall conform

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to with federal requirements and shall distribute funds in each

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fiscal year for which an appropriation is made by making

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quarterly Medicaid payments. Notwithstanding s. 409.915, counties

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are exempt from contributing toward the cost of this special

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reimbursement for hospitals serving a disproportionate share of

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low-income patients. For the 2008-2009 state fiscal year 2006-

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2007, the agency shall distribute the moneys provided in the

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General Appropriations Act to statutorily defined teaching

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hospitals and family practice teaching hospitals under the

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teaching hospital disproportionate share program. The funds

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provided for statutorily defined teaching hospitals shall be

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distributed in the same proportion as the state fiscal year 2003-

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2004 teaching hospital disproportionate share funds were

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distributed or as otherwise provided in the General

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Appropriations Act. The funds provided for family practice

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teaching hospitals shall be distributed equally among family

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practice teaching hospitals.

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     (1) On or before September 15 of each year, the agency for

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Health Care Administration shall calculate an allocation fraction

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to be used for distributing funds to state statutory teaching

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hospitals. Subsequent to the end of each quarter of the state

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fiscal year, the agency shall distribute to each statutory

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teaching hospital, as defined in s. 408.07, an amount determined

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by multiplying one-fourth of the funds appropriated for this

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purpose by the Legislature times such hospital's allocation

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fraction. The allocation fraction for each such hospital shall be

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determined by the sum of three primary factors, divided by three.

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The primary factors are:

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     (a)  The number of nationally accredited graduate medical

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education programs offered by the hospital, including programs

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accredited by the Accreditation Council for Graduate Medical

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Education and the combined Internal Medicine and Pediatrics

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programs acceptable to both the American Board of Internal

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Medicine and the American Board of Pediatrics at the beginning of

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the state fiscal year preceding the date on which the allocation

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

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fraction that the hospital represents of the total number of

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programs, where the total is computed for all state statutory

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teaching hospitals.

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

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hospital, which comprises two components:

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     1.  The number of trainees enrolled in nationally accredited

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graduate medical education programs, as defined in paragraph (a).

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Full-time equivalents are computed using the fraction of the year

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during which each trainee is primarily assigned to the given

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institution, over the state fiscal year preceding the date on

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which the allocation fraction is calculated. The numerical value

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of this factor is the fraction that the hospital represents of

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the total number of full-time equivalent trainees enrolled in

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accredited graduate programs, where the total is computed for all

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state statutory teaching hospitals.

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     2.  The number of medical students enrolled in accredited

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colleges of medicine and engaged in clinical activities,

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including required clinical clerkships and clinical electives.

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Full-time equivalents are computed using the fraction of the year

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during which each trainee is primarily assigned to the given

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institution, over the course of the state fiscal year preceding

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the date on which the allocation fraction is calculated. The

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numerical value of this factor is the fraction that the given

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hospital represents of the total number of full-time equivalent

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students enrolled in accredited colleges of medicine, where the

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total is computed for all state statutory teaching hospitals.

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The primary factor for full-time equivalent trainees is computed

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

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     (c)  A service index that comprises three components:

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     1.  The Agency for Health Care Administration Service Index,

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computed by applying the standard Service Inventory Scores

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established by the agency for Health Care Administration to

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services offered by the given hospital, as reported on Worksheet

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A-2 for the last fiscal year reported to the agency before the

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date on which the allocation fraction is calculated. The

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numerical value of this factor is the fraction that the given

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hospital represents of the total Agency for Health Care

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Administration Service Index values, where the total is computed

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for all state statutory teaching hospitals.

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

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the standard Service Inventory Scores established by the agency

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for Health Care Administration to the volume of each service,

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expressed in terms of the standard units of measure reported on

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Worksheet A-2 for the last fiscal year reported to the agency

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before the date on which the allocation factor is calculated. The

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numerical value of this factor is the fraction that the given

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hospital represents of the total volume-weighted service index

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values, where the total is computed for all state statutory

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teaching hospitals.

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     3.  Total Medicaid payments to each hospital for direct

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inpatient and outpatient services during the fiscal year

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preceding the date on which the allocation factor is calculated.

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This includes payments made to each hospital for such services by

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Medicaid prepaid health plans, whether the plan was administered

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by the hospital or not. The numerical value of this factor is the

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fraction that each hospital represents of the total of such

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Medicaid payments, where the total is computed for all state

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statutory teaching hospitals.

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

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of these three components, divided by three.

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

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following formula to calculate the maximum additional

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disproportionate share payment for statutorily defined teaching

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hospitals:

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TAP = THAF x A

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Where:

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     TAP = total additional payment.

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     THAF = teaching hospital allocation factor.

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     A = amount appropriated for a teaching hospital

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disproportionate share program.

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     Section 7.  Section 409.9117, Florida Statutes, is amended

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to read:

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     409.9117  Primary care disproportionate share program.--For

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the 2008-2009 state fiscal year 2006-2007, the agency may shall

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not distribute moneys under the primary care disproportionate

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share program.

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     (1)  If federal funds are available for disproportionate

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share programs in addition to those otherwise provided by law,

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there shall be created a primary care disproportionate share

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program.

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

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calculate the total amount earned for hospitals that participate

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in the primary care disproportionate share program:

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TAE = HDSP/THDSP

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Where:

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     TAE = total amount earned by a hospital participating in the

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primary care disproportionate share program.

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     HDSP = the prior state fiscal year primary care

508

disproportionate share payment to the individual hospital.

509

     THDSP = the prior state fiscal year total primary care

510

disproportionate share payments to all hospitals.

511

     (3)  The total additional payment for hospitals that

512

participate in the primary care disproportionate share program

513

shall be calculated by the agency as follows:

514

515

TAP = TAE x TA

516

517

Where:

518

     TAP = total additional payment for a primary care hospital.

519

     TAE = total amount earned by a primary care hospital.

520

     TA = total appropriation for the primary care

521

disproportionate share program.

522

     (4) In establishing the establishment and funding of this

523

program, the agency shall use the following criteria in addition

524

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

525

a hospital unless the hospital agrees to:

526

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

527

exists in the community.

528

     (b)  Ensure the availability of primary and specialty care

529

physicians to Medicaid recipients who are not enrolled in a

530

prepaid capitated arrangement and who are in need of access to

531

such physicians.

532

     (c)  Coordinate and provide primary care services free of

533

charge, except copayments, to all persons with incomes up to 100

534

percent of the federal poverty level who are not otherwise

535

covered by Medicaid or another program administered by a

536

governmental entity, and to provide such services based on a

537

sliding fee scale to all persons with incomes up to 200 percent

538

of the federal poverty level who are not otherwise covered by

539

Medicaid or another program administered by a governmental

540

entity, except that eligibility may be limited to persons who

541

reside within a more limited area, as agreed to by the agency and

542

the hospital.

543

     (d)  Contract with any federally qualified health center, if

544

one exists within the agreed geopolitical boundaries, concerning

545

the provision of primary care services, in order to guarantee

546

delivery of services in a nonduplicative fashion, and to provide

547

for referral arrangements, privileges, and admissions, as

548

appropriate. The hospital shall agree to provide at an onsite or

549

offsite facility primary care services within 24 hours to which

550

all Medicaid recipients and persons eligible under this paragraph

551

who do not require emergency room services are referred during

552

normal daylight hours.

553

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

554

entities to ensure the provision of certain public health

555

services, case management, referral and acceptance of patients,

556

and sharing of epidemiological data, as the agency and the

557

hospital find mutually necessary and desirable to promote and

558

protect the public health within the agreed geopolitical

559

boundaries.

560

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

561

resides, develop a low-cost, outpatient, prepaid health care

562

program to persons who are not eligible for the Medicaid program,

563

and who reside within the area.

564

     (g)  Provide inpatient services to residents within the area

565

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

566

have private health insurance, regardless of ability to pay, on

567

the basis of available space, except that nothing shall prevent

568

the hospital from establishing bill collection programs based on

569

ability to pay.

570

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

571

Florida Health Care Purchasing Cooperative, and business health

572

coalitions, as appropriate, to develop a feasibility study and

573

plan to provide a low-cost comprehensive health insurance plan to

574

persons who reside within the area and who do not have access to

575

such a plan.

576

     (i)  Work with public health officials and other experts to

577

provide community health education and prevention activities

578

designed to promote healthy lifestyles and appropriate use of

579

health services.

580

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

581

for promoting access to affordable health care services for all

582

persons who reside within the area, including, but not limited

583

to, public health services, primary care services, inpatient

584

services, and affordable health insurance generally.

585

586

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

587

this subsection, or any other contractual condition, may not

588

receive payments under this section until full compliance is

589

achieved.

590

     Section 8.  Paragraph (a) of subsection (39) and subsection

591

(42) of section 409.912, Florida Statutes, are amended to read:

592

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

593

agency shall purchase goods and services for Medicaid recipients

594

in the most cost-effective manner consistent with the delivery of

595

quality medical care. To ensure that medical services are

596

effectively utilized, the agency may, in any case, require a

597

confirmation or second physician's opinion of the correct

598

diagnosis for purposes of authorizing future services under the

599

Medicaid program. This section does not restrict access to

600

emergency services or poststabilization care services as defined

601

in 42 C.F.R. part 438.114. Such confirmation or second opinion

602

shall be rendered in a manner approved by the agency. The agency

603

shall maximize the use of prepaid per capita and prepaid

604

aggregate fixed-sum basis services when appropriate and other

605

alternative service delivery and reimbursement methodologies,

606

including competitive bidding pursuant to s. 287.057, designed to

607

facilitate the cost-effective purchase of a case-managed

608

continuum of care. The agency shall also require providers to

609

minimize the exposure of recipients to the need for acute

610

inpatient, custodial, and other institutional care and the

611

inappropriate or unnecessary use of high-cost services. The

612

agency shall contract with a vendor to monitor and evaluate the

613

clinical practice patterns of providers in order to identify

614

trends that are outside the normal practice patterns of a

615

provider's professional peers or the national guidelines of a

616

provider's professional association. The vendor must be able to

617

provide information and counseling to a provider whose practice

618

patterns are outside the norms, in consultation with the agency,

619

to improve patient care and reduce inappropriate utilization. The

620

agency may mandate prior authorization, drug therapy management,

621

or disease management participation for certain populations of

622

Medicaid beneficiaries, certain drug classes, or particular drugs

623

to prevent fraud, abuse, overuse, and possible dangerous drug

624

interactions. The Pharmaceutical and Therapeutics Committee shall

625

make recommendations to the agency on drugs for which prior

626

authorization is required. The agency shall inform the

627

Pharmaceutical and Therapeutics Committee of its decisions

628

regarding drugs subject to prior authorization. The agency is

629

authorized to limit the entities it contracts with or enrolls as

630

Medicaid providers by developing a provider network through

631

provider credentialing. The agency may competitively bid single-

632

source-provider contracts if procurement of goods or services

633

results in demonstrated cost savings to the state without

634

limiting access to care. The agency may limit its network based

635

on the assessment of beneficiary access to care, provider

636

availability, provider quality standards, time and distance

637

standards for access to care, the cultural competence of the

638

provider network, demographic characteristics of Medicaid

639

beneficiaries, practice and provider-to-beneficiary standards,

640

appointment wait times, beneficiary use of services, provider

641

turnover, provider profiling, provider licensure history,

642

previous program integrity investigations and findings, peer

643

review, provider Medicaid policy and billing compliance records,

644

clinical and medical record audits, and other factors. Providers

645

shall not be entitled to enrollment in the Medicaid provider

646

network. The agency shall determine instances in which allowing

647

Medicaid beneficiaries to purchase durable medical equipment and

648

other goods is less expensive to the Medicaid program than long-

649

term rental of the equipment or goods. The agency may establish

650

rules to facilitate purchases in lieu of long-term rentals in

651

order to protect against fraud and abuse in the Medicaid program

652

as defined in s. 409.913. The agency may seek federal waivers

653

necessary to administer these policies.

654

     (39)(a)  The agency shall implement a Medicaid prescribed-

655

drug spending-control program that includes the following

656

components:

657

     1.  A Medicaid preferred drug list, which shall be a listing

658

of cost-effective therapeutic options recommended by the Medicaid

659

Pharmacy and Therapeutics Committee established pursuant to s.

660

409.91195 and adopted by the agency for each therapeutic class on

661

the preferred drug list. At the discretion of the committee, and

662

when feasible, the preferred drug list should include at least

663

two products in a therapeutic class. The agency may post the

664

preferred drug list and updates to the preferred drug list on an

665

Internet website without following the rulemaking procedures of

666

chapter 120. Antiretroviral agents are excluded from the

667

preferred drug list. The agency shall also limit the amount of a

668

prescribed drug dispensed to no more than a 34-day supply unless

669

the drug products' smallest marketed package is greater than a

670

34-day supply, or the drug is determined by the agency to be a

671

maintenance drug in which case a 100-day maximum supply may be

672

authorized. The agency is authorized to seek any federal waivers

673

necessary to implement these cost-control programs and to

674

continue participation in the federal Medicaid rebate program, or

675

alternatively to negotiate state-only manufacturer rebates. The

676

agency may adopt rules to implement this subparagraph. The agency

677

shall continue to provide unlimited contraceptive drugs and

678

items. The agency must establish procedures to ensure that:

679

     a. There is will be a response to a request for prior

680

consultation by telephone or other telecommunication device

681

within 24 hours after receipt of a request for prior

682

consultation; and

683

     b. A 72-hour supply of the drug prescribed is will be

684

provided in an emergency or when the agency does not provide a

685

response within 24 hours as required by sub-subparagraph a.

686

     2.  Reimbursement to pharmacies for Medicaid prescribed

687

drugs shall be set at the lesser of: the average wholesale price

688

(AWP) minus 16.4 15.4 percent, the wholesaler acquisition cost

689

(WAC) plus 4.75 5.75 percent, the federal upper limit (FUL), the

690

state maximum allowable cost (SMAC), or the usual and customary

691

(UAC) charge billed by the provider.

692

     3.  The agency shall develop and implement a process for

693

managing the drug therapies of Medicaid recipients who are using

694

significant numbers of prescribed drugs each month. The

695

management process may include, but is not limited to,

696

comprehensive, physician-directed medical-record reviews, claims

697

analyses, and case evaluations to determine the medical necessity

698

and appropriateness of a patient's treatment plan and drug

699

therapies. The agency may contract with a private organization to

700

provide drug-program-management services. The Medicaid drug

701

benefit management program shall include initiatives to manage

702

drug therapies for HIV/AIDS patients, patients using 20 or more

703

unique prescriptions in a 180-day period, and the top 1,000

704

patients in annual spending. The agency shall enroll any Medicaid

705

recipient in the drug benefit management program if he or she

706

meets the specifications of this provision and is not enrolled in

707

a Medicaid health maintenance organization.

708

     4.  The agency may limit the size of its pharmacy network

709

based on need, competitive bidding, price negotiations,

710

credentialing, or similar criteria. The agency shall give special

711

consideration to rural areas in determining the size and location

712

of pharmacies included in the Medicaid pharmacy network. A

713

pharmacy credentialing process may include criteria such as a

714

pharmacy's full-service status, location, size, patient

715

educational programs, patient consultation, disease management

716

services, and other characteristics. The agency may impose a

717

moratorium on Medicaid pharmacy enrollment when it is determined

718

that it has a sufficient number of Medicaid-participating

719

providers. The agency must allow dispensing practitioners to

720

participate as a part of the Medicaid pharmacy network regardless

721

of the practitioner's proximity to any other entity that is

722

dispensing prescription drugs under the Medicaid program. A

723

dispensing practitioner must meet all credentialing requirements

724

applicable to his or her practice, as determined by the agency.

725

     5.  The agency shall develop and implement a program that

726

requires Medicaid practitioners who prescribe drugs to use a

727

counterfeit-proof prescription pad for Medicaid prescriptions.

728

The agency shall require the use of standardized counterfeit-

729

proof prescription pads by Medicaid-participating prescribers or

730

prescribers who write prescriptions for Medicaid recipients. The

731

agency may implement the program in targeted geographic areas or

732

statewide.

733

     6.  The agency may enter into arrangements that require

734

manufacturers of generic drugs prescribed to Medicaid recipients

735

to provide rebates of at least 15.1 percent of the average

736

manufacturer price for the manufacturer's generic products. These

737

arrangements shall require that if a generic-drug manufacturer

738

pays federal rebates for Medicaid-reimbursed drugs at a level

739

below 15.1 percent, the manufacturer must provide a supplemental

740

rebate to the state in an amount necessary to achieve a 15.1-

741

percent rebate level.

742

     7.  The agency may establish a preferred drug list as

743

described in this subsection, and, pursuant to the establishment

744

of such preferred drug list, it is authorized to negotiate

745

supplemental rebates from manufacturers that are in addition to

746

those required by Title XIX of the Social Security Act and at no

747

less than 14 percent of the average manufacturer price as defined

748

in 42 U.S.C. s. 1936 on the last day of a quarter unless the

749

federal or supplemental rebate, or both, equals or exceeds 29

750

percent. There is no upper limit on the supplemental rebates the

751

agency may negotiate. The agency may determine that specific

752

products, brand-name or generic, are competitive at lower rebate

753

percentages. Agreement to pay the minimum supplemental rebate

754

percentage will guarantee a manufacturer that the Medicaid

755

Pharmaceutical and Therapeutics Committee will consider a product

756

for inclusion on the preferred drug list. However, a

757

pharmaceutical manufacturer is not guaranteed placement on the

758

preferred drug list by simply paying the minimum supplemental

759

rebate. Agency decisions will be made on the clinical efficacy of

760

a drug and recommendations of the Medicaid Pharmaceutical and

761

Therapeutics Committee, as well as the price of competing

762

products minus federal and state rebates. The agency is

763

authorized to contract with an outside agency or contractor to

764

conduct negotiations for supplemental rebates. For the purposes

765

of this section, the term "supplemental rebates" means cash

766

rebates. Effective July 1, 2004, value-added programs as a

767

substitution for supplemental rebates are prohibited. The agency

768

is authorized to seek any federal waivers to implement this

769

initiative.

770

     8.  The Agency for Health Care Administration shall expand

771

home delivery of pharmacy products. To assist Medicaid patients

772

in securing their prescriptions and reduce program costs, the

773

agency shall expand its current mail-order-pharmacy diabetes-

774

supply program to include all generic and brand-name drugs used

775

by Medicaid patients with diabetes. Medicaid recipients in the

776

current program may obtain nondiabetes drugs on a voluntary

777

basis. This initiative is limited to the geographic area covered

778

by the current contract. The agency may seek and implement any

779

federal waivers necessary to implement this subparagraph.

780

     9.  The agency shall limit to one dose per month any drug

781

prescribed to treat erectile dysfunction.

782

     10.a.  The agency may implement a Medicaid behavioral drug

783

management system. The agency may contract with a vendor that has

784

experience in operating behavioral drug management systems to

785

implement this program. The agency is authorized to seek federal

786

waivers to implement this program.

787

     b.  The agency, in conjunction with the Department of

788

Children and Family Services, may implement the Medicaid

789

behavioral drug management system that is designed to improve the

790

quality of care and behavioral health prescribing practices based

791

on best practice guidelines, improve patient adherence to

792

medication plans, reduce clinical risk, and lower prescribed drug

793

costs and the rate of inappropriate spending on Medicaid

794

behavioral drugs. The program may include the following elements:

795

     (I)  Provide for the development and adoption of best

796

practice guidelines for behavioral health-related drugs such as

797

antipsychotics, antidepressants, and medications for treating

798

bipolar disorders and other behavioral conditions; translate them

799

into practice; review behavioral health prescribers and compare

800

their prescribing patterns to a number of indicators that are

801

based on national standards; and determine deviations from best

802

practice guidelines.

803

     (II)  Implement processes for providing feedback to and

804

educating prescribers using best practice educational materials

805

and peer-to-peer consultation.

806

     (III)  Assess Medicaid beneficiaries who are outliers in

807

their use of behavioral health drugs with regard to the numbers

808

and types of drugs taken, drug dosages, combination drug

809

therapies, and other indicators of improper use of behavioral

810

health drugs.

811

     (IV)  Alert prescribers to patients who fail to refill

812

prescriptions in a timely fashion, are prescribed multiple same-

813

class behavioral health drugs, and may have other potential

814

medication problems.

815

     (V)  Track spending trends for behavioral health drugs and

816

deviation from best practice guidelines.

817

     (VI)  Use educational and technological approaches to

818

promote best practices, educate consumers, and train prescribers

819

in the use of practice guidelines.

820

     (VII)  Disseminate electronic and published materials.

821

     (VIII)  Hold statewide and regional conferences.

822

     (IX)  Implement a disease management program with a model

823

quality-based medication component for severely mentally ill

824

individuals and emotionally disturbed children who are high users

825

of care.

826

     11.a.  The agency shall implement a Medicaid prescription

827

drug management system. The agency may contract with a vendor

828

that has experience in operating prescription drug management

829

systems in order to implement this system. Any management system

830

that is implemented in accordance with this subparagraph must

831

rely on cooperation between physicians and pharmacists to

832

determine appropriate practice patterns and clinical guidelines

833

to improve the prescribing, dispensing, and use of drugs in the

834

Medicaid program. The agency may seek federal waivers to

835

implement this program.

836

     b.  The drug management system must be designed to improve

837

the quality of care and prescribing practices based on best

838

practice guidelines, improve patient adherence to medication

839

plans, reduce clinical risk, and lower prescribed drug costs and

840

the rate of inappropriate spending on Medicaid prescription

841

drugs. The program must:

842

     (I)  Provide for the development and adoption of best

843

practice guidelines for the prescribing and use of drugs in the

844

Medicaid program, including translating best practice guidelines

845

into practice; reviewing prescriber patterns and comparing them

846

to indicators that are based on national standards and practice

847

patterns of clinical peers in their community, statewide, and

848

nationally; and determine deviations from best practice

849

guidelines.

850

     (II)  Implement processes for providing feedback to and

851

educating prescribers using best practice educational materials

852

and peer-to-peer consultation.

853

     (III)  Assess Medicaid recipients who are outliers in their

854

use of a single or multiple prescription drugs with regard to the

855

numbers and types of drugs taken, drug dosages, combination drug

856

therapies, and other indicators of improper use of prescription

857

drugs.

858

     (IV)  Alert prescribers to patients who fail to refill

859

prescriptions in a timely fashion, are prescribed multiple drugs

860

that may be redundant or contraindicated, or may have other

861

potential medication problems.

862

     (V)  Track spending trends for prescription drugs and

863

deviation from best practice guidelines.

864

     (VI)  Use educational and technological approaches to

865

promote best practices, educate consumers, and train prescribers

866

in the use of practice guidelines.

867

     (VII)  Disseminate electronic and published materials.

868

     (VIII)  Hold statewide and regional conferences.

869

     (IX)  Implement disease management programs in cooperation

870

with physicians and pharmacists, along with a model quality-based

871

medication component for individuals having chronic medical

872

conditions.

873

     12.  The agency is authorized to contract for drug rebate

874

administration, including, but not limited to, calculating rebate

875

amounts, invoicing manufacturers, negotiating disputes with

876

manufacturers, and maintaining a database of rebate collections.

877

     13.  The agency may specify the preferred daily dosing form

878

or strength for the purpose of promoting best practices with

879

regard to the prescribing of certain drugs as specified in the

880

General Appropriations Act and ensuring cost-effective

881

prescribing practices.

882

     14.  The agency may require prior authorization for

883

Medicaid-covered prescribed drugs. The agency may, but is not

884

required to, prior-authorize the use of a product:

885

     a.  For an indication not approved in labeling;

886

     b.  To comply with certain clinical guidelines; or

887

     c.  If the product has the potential for overuse, misuse, or

888

abuse.

889

890

The agency may require the prescribing professional to provide

891

information about the rationale and supporting medical evidence

892

for the use of a drug. The agency may post prior authorization

893

criteria and protocol and updates to the list of drugs that are

894

subject to prior authorization on an Internet website without

895

amending its rule or engaging in additional rulemaking.

896

     15.  The agency, in conjunction with the Pharmaceutical and

897

Therapeutics Committee, may require age-related prior

898

authorizations for certain prescribed drugs. The agency may

899

preauthorize the use of a drug for a recipient who may not meet

900

the age requirement or may exceed the length of therapy for use

901

of the this product as recommended by the manufacturer and

902

approved by the Food and Drug Administration. Prior authorization

903

may require the prescribing professional to provide information

904

about the rationale and supporting medical evidence for the use

905

of a drug.

906

     16.  The agency shall implement a step-therapy prior

907

authorization approval process for medications excluded from the

908

preferred drug list. Medications listed on the preferred drug

909

list must be used within the previous 12 months prior to the

910

alternative medications that are not listed. The step-therapy

911

prior authorization may require the prescriber to use the

912

medications of a similar drug class or for a similar medical

913

indication unless contraindicated in the Food and Drug

914

Administration labeling. The trial period between the specified

915

steps may vary according to the medical indication. The step-

916

therapy approval process shall be developed in accordance with

917

the committee as stated in s. 409.91195(7) and (8). A drug

918

product may be approved without meeting the step-therapy prior

919

authorization criteria if the prescribing physician provides the

920

agency with additional written medical or clinical documentation

921

that the product is medically necessary because:

922

     a.  There is not a drug on the preferred drug list to treat

923

the disease or medical condition which is an acceptable clinical

924

alternative;

925

     b.  The alternatives have been ineffective in the treatment

926

of the beneficiary's disease; or

927

     c.  Based on historic evidence and known characteristics of

928

the patient and the drug, the drug is likely to be ineffective,

929

or the number of doses have been ineffective.

930

931

The agency shall work with the physician to determine the best

932

alternative for the patient. The agency may adopt rules waiving

933

the requirements for written clinical documentation for specific

934

drugs in limited clinical situations.

935

     17.  The agency shall implement a return and reuse program

936

for drugs dispensed by pharmacies to institutional recipients,

937

which includes payment of a $5 restocking fee for the

938

implementation and operation of the program. The return and reuse

939

program shall be implemented electronically and in a manner that

940

promotes efficiency. The program must permit a pharmacy to

941

exclude drugs from the program if it is not practical or cost-

942

effective for the drug to be included and must provide for the

943

return to inventory of drugs that cannot be credited or returned

944

in a cost-effective manner. The agency shall determine if the

945

program has reduced the amount of Medicaid prescription drugs

946

which are destroyed on an annual basis and if there are

947

additional ways to ensure more prescription drugs are not

948

destroyed which could safely be reused. The agency's conclusion

949

and recommendations shall be reported to the Legislature by

950

December 1, 2005.

951

     (42) The agency may shall develop and implement a

952

utilization management program for Medicaid-eligible recipients

953

for the management of occupational, physical, respiratory, and

954

speech therapies. The agency shall establish a utilization

955

program that may require prior authorization in order to ensure

956

medically necessary and cost-effective treatments. The program

957

shall be operated in accordance with a federally approved waiver

958

program or state plan amendment. The agency may seek a federal

959

waiver or state plan amendment to implement this program. The

960

agency may also competitively procure these services from an

961

outside vendor on a regional or statewide basis.

962

     Section 9.  Paragraphs (c), (e), (f), and (i) of subsection

963

(2) of section 409.9122, Florida Statutes, are amended to read:

964

     409.9122  Mandatory Medicaid managed care enrollment;

965

programs and procedures.--

966

     (2)

967

     (c)  Medicaid recipients shall have a choice of managed care

968

plans or MediPass. The agency for Health Care Administration, the

969

Department of Health, the Department of Children and Family

970

Services, and the Department of Elderly Affairs shall cooperate

971

to ensure that each Medicaid recipient receives clear and easily

972

understandable information that meets the following requirements:

973

     1.  Explains the concept of managed care, including

974

MediPass.

975

     2.  Provides information on the comparative performance of

976

managed care plans and MediPass in the areas of quality,

977

credentialing, preventive health programs, network size and

978

availability, and patient satisfaction.

979

     3.  Explains where additional information on each managed

980

care plan and MediPass in the recipient's area can be obtained.

981

     4.  Explains that recipients have the right to choose their

982

own managed care coverage at the time they first enroll in

983

Medicaid and again at regular intervals set by the agency plans

984

or MediPass. However, if a recipient does not choose a managed

985

care plan or MediPass, the agency will assign the recipient to a

986

managed care plan or MediPass according to the criteria specified

987

in this section.

988

     5.  Explains the recipient's right to complain, file a

989

grievance, or change managed care plans or MediPass providers if

990

the recipient is not satisfied with the managed care plan or

991

MediPass.

992

     (e)  Medicaid recipients who are already enrolled in a

993

managed care plan or MediPass shall be offered the opportunity to

994

change managed care plans or MediPass providers on a staggered

995

basis, as defined by the agency. All Medicaid recipients shall

996

have 30 days in which to make a choice of managed care plans or

997

MediPass providers. A recipient already enrolled in a managed

998

care plan who fails to make a choice during the 30-day choice

999

period shall remain enrolled in his or her current managed care

1000

plan. In counties with two or more managed care plans, a

1001

recipient already enrolled in MediPass who fails to make a choice

1002

during the annual period shall be assigned to a managed care plan

1003

if he or she is eligible for enrollment in the managed care plan.

1004

The agency shall apply for a state plan amendment or federal

1005

waiver authority, if necessary, to implement the provisions of

1006

this paragraph. Those Medicaid recipients who do not make a

1007

choice shall be assigned to a managed care plan or MediPass in

1008

accordance with paragraph (f). To facilitate continuity of care,

1009

for a Medicaid recipient who is also a recipient of Supplemental

1010

Security Income (SSI), prior to assigning the SSI recipient to a

1011

managed care plan or MediPass, the agency shall determine whether

1012

the SSI recipient has an ongoing relationship with a MediPass

1013

provider or managed care plan, and if so, the agency shall assign

1014

the SSI recipient to that MediPass provider or managed care plan.

1015

If the SSI recipient has an ongoing relationship with a managed

1016

care plan, the agency shall assign the recipient to that managed

1017

care plan. Those SSI recipients who do not have such a provider

1018

relationship shall be assigned to a managed care plan or MediPass

1019

provider in accordance with paragraph (f).

1020

     (f) If When a Medicaid recipient does not choose a managed

1021

care plan or MediPass provider, the agency shall assign the

1022

Medicaid recipient to a managed care plan or MediPass provider.

1023

Medicaid recipients, eligible for managed care plan enrollment,

1024

who are subject to mandatory assignment but who fail to make a

1025

choice shall be assigned to managed care plans until an

1026

enrollment of 35 percent in MediPass and 65 percent in managed

1027

care plans, of all those eligible to choose managed care, is

1028

achieved. Once this enrollment is achieved, the assignments shall

1029

be divided in order to maintain an enrollment in MediPass and

1030

managed care plans which is in a 35 percent and 65 percent

1031

proportion, respectively. Thereafter, assignment of Medicaid

1032

recipients who fail to make a choice shall be based

1033

proportionally on the preferences of recipients who have made a

1034

choice in the previous period. Such proportions shall be revised

1035

at least quarterly to reflect an update of the preferences of

1036

Medicaid recipients. The agency shall disproportionately assign

1037

Medicaid-eligible recipients who are required to but have failed

1038

to make a choice of managed care plan or MediPass, including

1039

children, and who would are to be assigned to the MediPass

1040

program to children's networks as described in s. 409.912(4)(g),

1041

Children's Medical Services Network as defined in s. 391.021,

1042

exclusive provider organizations, provider service networks,

1043

minority physician networks, and pediatric emergency department

1044

diversion programs authorized by this chapter or the General

1045

Appropriations Act, in such manner as the agency deems

1046

appropriate, until the agency has determined that the networks

1047

and programs have sufficient numbers to be operated economically

1048

operated. For purposes of this paragraph, when referring to

1049

assignment, the term "managed care plans" includes health

1050

maintenance organizations, exclusive provider organizations,

1051

provider service networks, minority physician networks,

1052

Children's Medical Services Network, and pediatric emergency

1053

department diversion programs authorized by this chapter or the

1054

General Appropriations Act. When making assignments, the agency

1055

shall take into account the following criteria:

1056

     1.  A managed care plan has sufficient network capacity to

1057

meet the need of members.

1058

     2.  The managed care plan or MediPass has previously

1059

enrolled the recipient as a member, or one of the managed care

1060

plan's primary care providers or MediPass providers has

1061

previously provided health care to the recipient.

1062

     3.  The agency has knowledge that the member has previously

1063

expressed a preference for a particular managed care plan or

1064

MediPass provider as indicated by Medicaid fee-for-service claims

1065

data, but has failed to make a choice.

1066

     4.  The managed care plan's or MediPass primary care

1067

providers are geographically accessible to the recipient's

1068

residence.

1069

     (i) After a recipient has made his or her initial a

1070

selection or has been notified of his or her initial assignment

1071

to enrolled in a managed care plan or MediPass, the recipient

1072

shall have 90 days to exercise the opportunity in which to

1073

voluntarily disenroll and select another managed care option plan

1074

or MediPass provider. After 90 days, no further changes may be

1075

made except for cause. Good cause includes shall include, but is

1076

not be limited to, poor quality of care, lack of access to

1077

necessary specialty services, an unreasonable delay or denial of

1078

service, or fraudulent enrollment. The agency shall develop

1079

criteria for good cause disenrollment for chronically ill and

1080

disabled populations who are assigned to managed care plans if

1081

more appropriate care is available through the MediPass program.

1082

The agency must make a determination as to whether cause exists.

1083

However, the agency may require a recipient to use the managed

1084

care plan's or MediPass grievance process prior to the agency's

1085

determination of cause, except in cases in which immediate risk

1086

of permanent damage to the recipient's health is alleged. The

1087

grievance process, when utilized, must be completed in time to

1088

permit the recipient to disenroll by no later than the first day

1089

of the second month after the month the disenrollment request was

1090

made. If the managed care plan or MediPass, as a result of the

1091

grievance process, approves an enrollee's request to disenroll,

1092

the agency is not required to make a determination in the case.

1093

The agency must make a determination and take final action on a

1094

recipient's request so that disenrollment occurs by no later than

1095

the first day of the second month after the month the request was

1096

made. If the agency fails to act within the specified timeframe,

1097

the recipient's request to disenroll is deemed to be approved as

1098

of the date agency action was required. Recipients who disagree

1099

with the agency's finding that cause does not exist for

1100

disenrollment shall be advised of their right to pursue a

1101

Medicaid fair hearing to dispute the agency's finding.

1102

     Section 10. Paragraph (c) of subsection (5) of section

1103

409.905 and section 430.83, Florida Statutes, are repealed.

1104

     Section 11.  This act shall take effect July 1, 2008.