CS for SB 1854 First Engrossed

20081854e1

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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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400.179, F.S.; authorizing the Agency for Health Care

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Administration to transfer fees used to repay nursing home

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Medicaid overpayments to the Grants and Donations Trust

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Fund within the agency; amending s. 409.904, F.S.;

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discontinuing optional Medicaid payments for certain

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persons age 65 or over or who are blind or disabled;

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revising certain eligibility criteria for pregnant women

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and children younger than 21; amending s. 409.906, F.S.;

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discontinuing adult dental services and adult hearing

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services on a certain date; amending s. 409.908, F.S.;

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requiring Medicaid to pay for all deductibles and

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coinsurance for portable X-ray Medicare Part B services

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provided in a nursing home; revising the factors used to

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determine the reimbursement rate to providers for Medicaid

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prescribed drugs; requiring the agency to reduce certain

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provider reimbursement rates as prescribed in the

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appropriations act; providing that any increases in rates

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as subject to the appropriations act; amending s. 409.911,

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F.S.; revising which year's disproportionate data is used

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to determine a hospital's Medicaid days and charity care

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during the 2008-2009 fiscal year; creating s. 409.91206,

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F.S.; authorizing the Governor and the Legislature to

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convene workgroups to propose alternatives for cost-

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effective health and long-term care reforms; amending s.

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409.9112, F.S.; prohibiting the Agency for Health Care

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Administration from distributing moneys under the regional

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perinatal intensive care disproportionate share program

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during the 2008-2009 fiscal year; amending s. 409.9113,

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F.S.; authorizing the agency to distribute

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disproportionate share funds to teaching hospital during

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the 2008-2009 fiscal year; providing that such funds may

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be distributed as provided in the appropriations act;

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amending s. 409.9117, F.S.; prohibiting the distribution

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of funds under the primary disproportionate share program

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during the 2008-2009 fiscal year; amending s. 409.912,

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F.S.; specifying certain counties that are exempt from the

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requirement of enrolling Medicaid eligible children in

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MediPass or Medicaid fee-for-service and behavioral health

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care services; revising the factors used to determine the

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reimbursement rate to pharmacies for Medicaid prescribed

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drugs; revising the requirement for the agency to develop

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a utilization management program for Medicaid recipients

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for certain therapies; amending s. 409.9122, F.S.;

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revising enrollment requirements relating to Medicaid

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managed care programs and the agency's authority to assign

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persons to MediPass or a managed care plan; repealing s.

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409.905(5)(c), F.S., relating to the agency's authority to

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adjust a hospital's inpatient per diem rate; repealing s.

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430.83, F.S., relating to the Sunshine for Seniors

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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.  Paragraph (d) of subsection (2) of section

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400.179, Florida Statutes, is amended to read:

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     400.179  Liability for Medicaid underpayments and

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overpayments.--

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     (2)  Because any transfer of a nursing facility may expose

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the fact that Medicaid may have underpaid or overpaid the

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transferor, and because in most instances, any such underpayment

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or overpayment can only be determined following a formal field

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audit, the liabilities for any such underpayments or overpayments

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shall be as follows:

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     (d)  Where the transfer involves a facility that has been

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leased by the transferor:

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     1.  The transferee shall, as a condition to being issued a

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license by the agency, acquire, maintain, and provide proof to

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the agency of a bond with a term of 30 months, renewable

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annually, in an amount not less than the total of 3 months'

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Medicaid payments to the facility computed on the basis of the

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preceding 12-month average Medicaid payments to the facility.

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     2.  A leasehold licensee may meet the requirements of

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subparagraph 1. by payment of a nonrefundable fee, paid at

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initial licensure, paid at the time of any subsequent change of

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ownership, and paid annually thereafter, in the amount of 1

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percent of the total of 3 months' Medicaid payments to the

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facility computed on the basis of the preceding 12-month average

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Medicaid payments to the facility. If a preceding 12-month

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average is not available, projected Medicaid payments may be

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used. The fee shall be deposited into the Health Care Trust Fund

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and shall be accounted for separately as a Medicaid nursing home

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overpayment account. These fees shall be used at the sole

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discretion of the agency to repay nursing home Medicaid

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overpayments. The agency may transfer funds to the Grants and

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Donations Trust Fund for such repayments. Payment of this fee

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shall not release the licensee from any liability for any

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Medicaid overpayments, nor shall payment bar the agency from

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seeking to recoup overpayments from the licensee and any other

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liable party. As a condition of exercising this lease bond

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alternative, licensees paying this fee must maintain an existing

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lease bond through the end of the 30-month term period of that

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bond. The agency is herein granted specific authority to

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promulgate all rules pertaining to the administration and

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management of this account, including withdrawals from the

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account, subject to federal review and approval. This provision

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shall take effect upon becoming law and shall apply to any

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leasehold license application. The financial viability of the

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Medicaid nursing home overpayment account shall be determined by

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the agency through annual review of the account balance and the

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amount of total outstanding, unpaid Medicaid overpayments owing

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from leasehold licensees to the agency as determined by final

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agency audits.

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     3.  The leasehold licensee may meet the bond requirement

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through other arrangements acceptable to the agency. The agency

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is herein granted specific authority to promulgate rules

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pertaining to lease bond arrangements.

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     4.  All existing nursing facility licensees, operating the

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facility as a leasehold, shall acquire, maintain, and provide

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proof to the agency of the 30-month bond required in subparagraph

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1., above, on and after July 1, 1993, for each license renewal.

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     5.  It shall be the responsibility of all nursing facility

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operators, operating the facility as a leasehold, to renew the

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30-month bond and to provide proof of such renewal to the agency

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annually.

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     6.  Any failure of the nursing facility operator to acquire,

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maintain, renew annually, or provide proof to the agency shall be

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grounds for the agency to deny, revoke, and suspend the facility

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license to operate such facility and to take any further action,

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including, but not limited to, enjoining the facility, asserting

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a moratorium pursuant to part II of chapter 408, or applying for

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a receiver, deemed necessary to ensure compliance with this

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section and to safeguard and protect the health, safety, and

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welfare of the facility's residents. A lease agreement required

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as a condition of bond financing or refinancing under s. 154.213

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by a health facilities authority or required under s. 159.30 by a

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county or municipality is not a leasehold for purposes of this

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paragraph and is not subject to the bond requirement of this

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paragraph.

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     Section 2.  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 3.  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 and related

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services for adults.

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     Section 4.  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 5.  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 6.  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 7.  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

497

the state fiscal year preceding the date on which the allocation

498

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

499

fraction that the hospital represents of the total number of

500

programs, where the total is computed for all state statutory

501

teaching hospitals.

502

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

503

hospital, which comprises two components:

504

     1.  The number of trainees enrolled in nationally accredited

505

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

506

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

507

during which each trainee is primarily assigned to the given

508

institution, over the state fiscal year preceding the date on

509

which the allocation fraction is calculated. The numerical value

510

of this factor is the fraction that the hospital represents of

511

the total number of full-time equivalent trainees enrolled in

512

accredited graduate programs, where the total is computed for all

513

state statutory teaching hospitals.

514

     2.  The number of medical students enrolled in accredited

515

colleges of medicine and engaged in clinical activities,

516

including required clinical clerkships and clinical electives.

517

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

518

during which each trainee is primarily assigned to the given

519

institution, over the course of the state fiscal year preceding

520

the date on which the allocation fraction is calculated. The

521

numerical value of this factor is the fraction that the given

522

hospital represents of the total number of full-time equivalent

523

students enrolled in accredited colleges of medicine, where the

524

total is computed for all state statutory teaching hospitals.

525

526

The primary factor for full-time equivalent trainees is computed

527

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

528

     (c)  A service index that comprises three components:

529

     1.  The Agency for Health Care Administration Service Index,

530

computed by applying the standard Service Inventory Scores

531

established by the agency for Health Care Administration to

532

services offered by the given hospital, as reported on Worksheet

533

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

534

date on which the allocation fraction is calculated. The

535

numerical value of this factor is the fraction that the given

536

hospital represents of the total Agency for Health Care

537

Administration Service Index values, where the total is computed

538

for all state statutory teaching hospitals.

539

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

540

the standard Service Inventory Scores established by the agency

541

for Health Care Administration to the volume of each service,

542

expressed in terms of the standard units of measure reported on

543

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

544

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

545

numerical value of this factor is the fraction that the given

546

hospital represents of the total volume-weighted service index

547

values, where the total is computed for all state statutory

548

teaching hospitals.

549

     3.  Total Medicaid payments to each hospital for direct

550

inpatient and outpatient services during the fiscal year

551

preceding the date on which the allocation factor is calculated.

552

This includes payments made to each hospital for such services by

553

Medicaid prepaid health plans, whether the plan was administered

554

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

555

fraction that each hospital represents of the total of such

556

Medicaid payments, where the total is computed for all state

557

statutory teaching hospitals.

558

559

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

560

of these three components, divided by three.

561

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

562

following formula to calculate the maximum additional

563

disproportionate share payment for statutorily defined teaching

564

hospitals:

565

566

TAP = THAF x A

567

568

Where:

569

     TAP = total additional payment.

570

     THAF = teaching hospital allocation factor.

571

     A = amount appropriated for a teaching hospital

572

disproportionate share program.

573

     Section 8.  Section 409.9117, Florida Statutes, is amended

574

to read:

575

     409.9117  Primary care disproportionate share program.--For

576

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

577

not distribute moneys under the primary care disproportionate

578

share program.

579

     (1)  If federal funds are available for disproportionate

580

share programs in addition to those otherwise provided by law,

581

there shall be created a primary care disproportionate share

582

program.

583

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

584

calculate the total amount earned for hospitals that participate

585

in the primary care disproportionate share program:

586

587

TAE = HDSP/THDSP

588

589

Where:

590

     TAE = total amount earned by a hospital participating in the

591

primary care disproportionate share program.

592

     HDSP = the prior state fiscal year primary care

593

disproportionate share payment to the individual hospital.

594

     THDSP = the prior state fiscal year total primary care

595

disproportionate share payments to all hospitals.

596

     (3)  The total additional payment for hospitals that

597

participate in the primary care disproportionate share program

598

shall be calculated by the agency as follows:

599

600

TAP = TAE x TA

601

602

Where:

603

     TAP = total additional payment for a primary care hospital.

604

     TAE = total amount earned by a primary care hospital.

605

     TA = total appropriation for the primary care

606

disproportionate share program.

607

     (4) In establishing the establishment and funding of this

608

program, the agency shall use the following criteria in addition

609

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

610

a hospital unless the hospital agrees to:

611

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

612

exists in the community.

613

     (b)  Ensure the availability of primary and specialty care

614

physicians to Medicaid recipients who are not enrolled in a

615

prepaid capitated arrangement and who are in need of access to

616

such physicians.

617

     (c)  Coordinate and provide primary care services free of

618

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

619

percent of the federal poverty level who are not otherwise

620

covered by Medicaid or another program administered by a

621

governmental entity, and to provide such services based on a

622

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

623

of the federal poverty level who are not otherwise covered by

624

Medicaid or another program administered by a governmental

625

entity, except that eligibility may be limited to persons who

626

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

627

the hospital.

628

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

629

one exists within the agreed geopolitical boundaries, concerning

630

the provision of primary care services, in order to guarantee

631

delivery of services in a nonduplicative fashion, and to provide

632

for referral arrangements, privileges, and admissions, as

633

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

634

offsite facility primary care services within 24 hours to which

635

all Medicaid recipients and persons eligible under this paragraph

636

who do not require emergency room services are referred during

637

normal daylight hours.

638

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

639

entities to ensure the provision of certain public health

640

services, case management, referral and acceptance of patients,

641

and sharing of epidemiological data, as the agency and the

642

hospital find mutually necessary and desirable to promote and

643

protect the public health within the agreed geopolitical

644

boundaries.

645

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

646

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

647

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

648

and who reside within the area.

649

     (g)  Provide inpatient services to residents within the area

650

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

651

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

652

the basis of available space, except that nothing shall prevent

653

the hospital from establishing bill collection programs based on

654

ability to pay.

655

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

656

Florida Health Care Purchasing Cooperative, and business health

657

coalitions, as appropriate, to develop a feasibility study and

658

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

659

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

660

such a plan.

661

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

662

provide community health education and prevention activities

663

designed to promote healthy lifestyles and appropriate use of

664

health services.

665

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

666

for promoting access to affordable health care services for all

667

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

668

to, public health services, primary care services, inpatient

669

services, and affordable health insurance generally.

670

671

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

672

this subsection, or any other contractual condition, may not

673

receive payments under this section until full compliance is

674

achieved.

675

     Section 9.  Paragraph (b) of subsection (4), paragraph (a)

676

of subsection (39), and subsection (42) of section 409.912,

677

Florida Statutes, are amended to read:

678

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

679

agency shall purchase goods and services for Medicaid recipients

680

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

681

quality medical care. To ensure that medical services are

682

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

683

confirmation or second physician's opinion of the correct

684

diagnosis for purposes of authorizing future services under the

685

Medicaid program. This section does not restrict access to

686

emergency services or poststabilization care services as defined

687

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

688

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

689

shall maximize the use of prepaid per capita and prepaid

690

aggregate fixed-sum basis services when appropriate and other

691

alternative service delivery and reimbursement methodologies,

692

including competitive bidding pursuant to s. 287.057, designed to

693

facilitate the cost-effective purchase of a case-managed

694

continuum of care. The agency shall also require providers to

695

minimize the exposure of recipients to the need for acute

696

inpatient, custodial, and other institutional care and the

697

inappropriate or unnecessary use of high-cost services. The

698

agency shall contract with a vendor to monitor and evaluate the

699

clinical practice patterns of providers in order to identify

700

trends that are outside the normal practice patterns of a

701

provider's professional peers or the national guidelines of a

702

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

703

provide information and counseling to a provider whose practice

704

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

705

to improve patient care and reduce inappropriate utilization. The

706

agency may mandate prior authorization, drug therapy management,

707

or disease management participation for certain populations of

708

Medicaid beneficiaries, certain drug classes, or particular drugs

709

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

710

interactions. The Pharmaceutical and Therapeutics Committee shall

711

make recommendations to the agency on drugs for which prior

712

authorization is required. The agency shall inform the

713

Pharmaceutical and Therapeutics Committee of its decisions

714

regarding drugs subject to prior authorization. The agency is

715

authorized to limit the entities it contracts with or enrolls as

716

Medicaid providers by developing a provider network through

717

provider credentialing. The agency may competitively bid single-

718

source-provider contracts if procurement of goods or services

719

results in demonstrated cost savings to the state without

720

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

721

on the assessment of beneficiary access to care, provider

722

availability, provider quality standards, time and distance

723

standards for access to care, the cultural competence of the

724

provider network, demographic characteristics of Medicaid

725

beneficiaries, practice and provider-to-beneficiary standards,

726

appointment wait times, beneficiary use of services, provider

727

turnover, provider profiling, provider licensure history,

728

previous program integrity investigations and findings, peer

729

review, provider Medicaid policy and billing compliance records,

730

clinical and medical record audits, and other factors. Providers

731

shall not be entitled to enrollment in the Medicaid provider

732

network. The agency shall determine instances in which allowing

733

Medicaid beneficiaries to purchase durable medical equipment and

734

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

735

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

736

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

737

order to protect against fraud and abuse in the Medicaid program

738

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

739

necessary to administer these policies.

740

     (4)  The agency may contract with:

741

     (b)  An entity that is providing comprehensive behavioral

742

health care services to certain Medicaid recipients through a

743

capitated, prepaid arrangement pursuant to the federal waiver

744

provided for by s. 409.905(5). Such an entity must be licensed

745

under chapter 624, chapter 636, or chapter 641 and must possess

746

the clinical systems and operational competence to manage risk

747

and provide comprehensive behavioral health care to Medicaid

748

recipients. As used in this paragraph, the term "comprehensive

749

behavioral health care services" means covered mental health and

750

substance abuse treatment services that are available to Medicaid

751

recipients. The secretary of the Department of Children and

752

Family Services shall approve provisions of procurements related

753

to children in the department's care or custody prior to

754

enrolling such children in a prepaid behavioral health plan. Any

755

contract awarded under this paragraph must be competitively

756

procured. In developing the behavioral health care prepaid plan

757

procurement document, the agency shall ensure that the

758

procurement document requires the contractor to develop and

759

implement a plan to ensure compliance with s. 394.4574 related to

760

services provided to residents of licensed assisted living

761

facilities that hold a limited mental health license. Except as

762

provided in subparagraph 8., and except in counties where the

763

Medicaid managed care pilot program is authorized pursuant to s.

764

409.91211, the agency shall seek federal approval to contract

765

with a single entity meeting these requirements to provide

766

comprehensive behavioral health care services to all Medicaid

767

recipients not enrolled in a Medicaid managed care plan

768

authorized under s. 409.91211 or a Medicaid health maintenance

769

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

770

managed care pilot program is authorized pursuant to s. 409.91211

771

in one or more counties, the agency may procure a contract with a

772

single entity to serve the remaining counties as an AHCA area or

773

the remaining counties may be included with an adjacent AHCA area

774

and shall be subject to this paragraph. Each entity must offer

775

sufficient choice of providers in its network to ensure recipient

776

access to care and the opportunity to select a provider with whom

777

they are satisfied. The network shall include all public mental

778

health hospitals. To ensure unimpaired access to behavioral

779

health care services by Medicaid recipients, all contracts issued

780

pursuant to this paragraph shall require 80 percent of the

781

capitation paid to the managed care plan, including health

782

maintenance organizations, to be expended for the provision of

783

behavioral health care services. In the event the managed care

784

plan expends less than 80 percent of the capitation paid pursuant

785

to this paragraph for the provision of behavioral health care

786

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

787

agency shall provide the managed care plan with a certification

788

letter indicating the amount of capitation paid during each

789

calendar year for the provision of behavioral health care

790

services pursuant to this section. The agency may reimburse for

791

substance abuse treatment services on a fee-for-service basis

792

until the agency finds that adequate funds are available for

793

capitated, prepaid arrangements.

794

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

795

contracts with the entities providing comprehensive inpatient and

796

outpatient mental health care services to Medicaid recipients in

797

Hillsborough, Highlands, Hardee, Manatee, and Polk Counties, to

798

include substance abuse treatment services.

799

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

800

Children and Family Services shall execute a written agreement

801

that requires collaboration and joint development of all policy,

802

budgets, procurement documents, contracts, and monitoring plans

803

that have an impact on the state and Medicaid community mental

804

health and targeted case management programs.

805

     3.  Except as provided in subparagraph 8., by July 1, 2006,

806

the agency and the Department of Children and Family Services

807

shall contract with managed care entities in each AHCA area

808

except area 6 or arrange to provide comprehensive inpatient and

809

outpatient mental health and substance abuse services through

810

capitated prepaid arrangements to all Medicaid recipients who are

811

eligible to participate in such plans under federal law and

812

regulation. In AHCA areas where eligible individuals number less

813

than 150,000, the agency shall contract with a single managed

814

care plan to provide comprehensive behavioral health services to

815

all recipients who are not enrolled in a Medicaid health

816

maintenance organization or a Medicaid capitated managed care

817

plan authorized under s. 409.91211. The agency may contract with

818

more than one comprehensive behavioral health provider to provide

819

care to recipients who are not enrolled in a Medicaid capitated

820

managed care plan authorized under s. 409.91211 or a Medicaid

821

health maintenance organization in AHCA areas where the eligible

822

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

823

managed care pilot program is authorized pursuant to s. 409.91211

824

in one or more counties, the agency may procure a contract with a

825

single entity to serve the remaining counties as an AHCA area or

826

the remaining counties may be included with an adjacent AHCA area

827

and shall be subject to this paragraph. Contracts for

828

comprehensive behavioral health providers awarded pursuant to

829

this section shall be competitively procured. Both for-profit and

830

not-for-profit corporations shall be eligible to compete. Managed

831

care plans contracting with the agency under subsection (3) shall

832

provide and receive payment for the same comprehensive behavioral

833

health benefits as provided in AHCA rules, including handbooks

834

incorporated by reference. In AHCA area 11, the agency shall

835

contract with at least two comprehensive behavioral health care

836

providers to provide behavioral health care to recipients in that

837

area who are enrolled in, or assigned to, the MediPass program.

838

One of the behavioral health care contracts shall be with the

839

existing provider service network pilot project, as described in

840

paragraph (d), for the purpose of demonstrating the cost-

841

effectiveness of the provision of quality mental health services

842

through a public hospital-operated managed care model. Payment

843

shall be at an agreed-upon capitated rate to ensure cost savings.

844

Of the recipients in area 11 who are assigned to MediPass under

845

the provisions of s. 409.9122(2)(k), a minimum of 50,000 of those

846

MediPass-enrolled recipients shall be assigned to the existing

847

provider service network in area 11 for their behavioral care.

848

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

849

submit a plan to the Governor, the President of the Senate, and

850

the Speaker of the House of Representatives which provides for

851

the full implementation of capitated prepaid behavioral health

852

care in all areas of the state.

853

     a.  Implementation shall begin in 2003 in those AHCA areas

854

of the state where the agency is able to establish sufficient

855

capitation rates.

856

     b.  If the agency determines that the proposed capitation

857

rate in any area is insufficient to provide appropriate services,

858

the agency may adjust the capitation rate to ensure that care

859

will be available. The agency and the department may use existing

860

general revenue to address any additional required match but may

861

not over-obligate existing funds on an annualized basis.

862

     c.  Subject to any limitations provided for in the General

863

Appropriations Act, the agency, in compliance with appropriate

864

federal authorization, shall develop policies and procedures that

865

allow for certification of local and state funds.

866

     5.  Children residing in a statewide inpatient psychiatric

867

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

868

of Children and Family Services residential program approved as a

869

Medicaid behavioral health overlay services provider shall not be

870

included in a behavioral health care prepaid health plan or any

871

other Medicaid managed care plan pursuant to this paragraph.

872

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

873

agency shall in its procurement document require an entity

874

providing only comprehensive behavioral health care services to

875

prevent the displacement of indigent care patients by enrollees

876

in the Medicaid prepaid health plan providing behavioral health

877

care services from facilities receiving state funding to provide

878

indigent behavioral health care, to facilities licensed under

879

chapter 395 which do not receive state funding for indigent

880

behavioral health care, or reimburse the unsubsidized facility

881

for the cost of behavioral health care provided to the displaced

882

indigent care patient.

883

     7.  Traditional community mental health providers under

884

contract with the Department of Children and Family Services

885

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

886

contract with the Department of Children and Family Services in

887

areas 1 and 6, and inpatient mental health providers licensed

888

pursuant to chapter 395 must be offered an opportunity to accept

889

or decline a contract to participate in any provider network for

890

prepaid behavioral health services.

891

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

892

children, except children in areas 1 and Highland, Hardee, Polk,

893

and Manatee counties of area 6, whose cases are open for child

894

welfare services in the HomeSafeNet system, shall be enrolled in

895

MediPass or in Medicaid fee-for-service and all their behavioral

896

health care services including inpatient, outpatient psychiatric,

897

community mental health, and case management shall be reimbursed

898

on a fee-for-service basis. Beginning July 1, 2005, such

899

children, who are open for child welfare services in the

900

HomeSafeNet system, shall receive their behavioral health care

901

services through a specialty prepaid plan operated by community-

902

based lead agencies either through a single agency or formal

903

agreements among several agencies. The specialty prepaid plan

904

must result in savings to the state comparable to savings

905

achieved in other Medicaid managed care and prepaid programs.

906

Such plan must provide mechanisms to maximize state and local

907

revenues. The specialty prepaid plan shall be developed by the

908

agency and the Department of Children and Family Services. The

909

agency is authorized to seek any federal waivers to implement

910

this initiative. Medicaid-eligible children whose cases are open

911

for child welfare services in the HomeSafeNet system and who

912

reside in AHCA area 10 are exempt from the specialty prepaid plan

913

upon the development of a service delivery mechanism for children

914

who reside in area 10 as specified in s. 409.91211(3)(dd).

915

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

916

drug spending-control program that includes the following

917

components:

918

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

919

of cost-effective therapeutic options recommended by the Medicaid

920

Pharmacy and Therapeutics Committee established pursuant to s.

921

409.91195 and adopted by the agency for each therapeutic class on

922

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

923

when feasible, the preferred drug list should include at least

924

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

925

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

926

Internet website without following the rulemaking procedures of

927

chapter 120. Antiretroviral agents are excluded from the

928

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

929

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

930

the drug products' smallest marketed package is greater than a

931

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

932

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

933

authorized. The agency is authorized to seek any federal waivers

934

necessary to implement these cost-control programs and to

935

continue participation in the federal Medicaid rebate program, or

936

alternatively to negotiate state-only manufacturer rebates. The

937

agency may adopt rules to implement this subparagraph. The agency

938

shall continue to provide unlimited contraceptive drugs and

939

items. The agency must establish procedures to ensure that:

940

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

941

consultation by telephone or other telecommunication device

942

within 24 hours after receipt of a request for prior

943

consultation; and

944

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

945

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

946

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

947

     2.  Reimbursement to pharmacies for Medicaid prescribed

948

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

949

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

950

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

951

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

952

(UAC) charge billed by the provider.

953

     3.  The agency shall develop and implement a process for

954

managing the drug therapies of Medicaid recipients who are using

955

significant numbers of prescribed drugs each month. The

956

management process may include, but is not limited to,

957

comprehensive, physician-directed medical-record reviews, claims

958

analyses, and case evaluations to determine the medical necessity

959

and appropriateness of a patient's treatment plan and drug

960

therapies. The agency may contract with a private organization to

961

provide drug-program-management services. The Medicaid drug

962

benefit management program shall include initiatives to manage

963

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

964

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

965

patients in annual spending. The agency shall enroll any Medicaid

966

recipient in the drug benefit management program if he or she

967

meets the specifications of this provision and is not enrolled in

968

a Medicaid health maintenance organization.

969

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

970

based on need, competitive bidding, price negotiations,

971

credentialing, or similar criteria. The agency shall give special

972

consideration to rural areas in determining the size and location

973

of pharmacies included in the Medicaid pharmacy network. A

974

pharmacy credentialing process may include criteria such as a

975

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

976

educational programs, patient consultation, disease management

977

services, and other characteristics. The agency may impose a

978

moratorium on Medicaid pharmacy enrollment when it is determined

979

that it has a sufficient number of Medicaid-participating

980

providers. The agency must allow dispensing practitioners to

981

participate as a part of the Medicaid pharmacy network regardless

982

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

983

dispensing prescription drugs under the Medicaid program. A

984

dispensing practitioner must meet all credentialing requirements

985

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

986

     5.  The agency shall develop and implement a program that

987

requires Medicaid practitioners who prescribe drugs to use a

988

counterfeit-proof prescription pad for Medicaid prescriptions.

989

The agency shall require the use of standardized counterfeit-

990

proof prescription pads by Medicaid-participating prescribers or

991

prescribers who write prescriptions for Medicaid recipients. The

992

agency may implement the program in targeted geographic areas or

993

statewide.

994

     6.  The agency may enter into arrangements that require

995

manufacturers of generic drugs prescribed to Medicaid recipients

996

to provide rebates of at least 15.1 percent of the average

997

manufacturer price for the manufacturer's generic products. These

998

arrangements shall require that if a generic-drug manufacturer

999

pays federal rebates for Medicaid-reimbursed drugs at a level

1000

below 15.1 percent, the manufacturer must provide a supplemental

1001

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

1002

percent rebate level.

1003

     7.  The agency may establish a preferred drug list as

1004

described in this subsection, and, pursuant to the establishment

1005

of such preferred drug list, it is authorized to negotiate

1006

supplemental rebates from manufacturers that are in addition to

1007

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

1008

less than 14 percent of the average manufacturer price as defined

1009

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

1010

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

1011

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

1012

agency may negotiate. The agency may determine that specific

1013

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

1014

percentages. Agreement to pay the minimum supplemental rebate

1015

percentage will guarantee a manufacturer that the Medicaid

1016

Pharmaceutical and Therapeutics Committee will consider a product

1017

for inclusion on the preferred drug list. However, a

1018

pharmaceutical manufacturer is not guaranteed placement on the

1019

preferred drug list by simply paying the minimum supplemental

1020

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

1021

a drug and recommendations of the Medicaid Pharmaceutical and

1022

Therapeutics Committee, as well as the price of competing

1023

products minus federal and state rebates. The agency is

1024

authorized to contract with an outside agency or contractor to

1025

conduct negotiations for supplemental rebates. For the purposes

1026

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

1027

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

1028

substitution for supplemental rebates are prohibited. The agency

1029

is authorized to seek any federal waivers to implement this

1030

initiative.

1031

     8.  The Agency for Health Care Administration shall expand

1032

home delivery of pharmacy products. To assist Medicaid patients

1033

in securing their prescriptions and reduce program costs, the

1034

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

1035

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

1036

by Medicaid patients with diabetes. Medicaid recipients in the

1037

current program may obtain nondiabetes drugs on a voluntary

1038

basis. This initiative is limited to the geographic area covered

1039

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

1040

federal waivers necessary to implement this subparagraph.

1041

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

1042

prescribed to treat erectile dysfunction.

1043

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

1044

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

1045

experience in operating behavioral drug management systems to

1046

implement this program. The agency is authorized to seek federal

1047

waivers to implement this program.

1048

     b.  The agency, in conjunction with the Department of

1049

Children and Family Services, may implement the Medicaid

1050

behavioral drug management system that is designed to improve the

1051

quality of care and behavioral health prescribing practices based

1052

on best practice guidelines, improve patient adherence to

1053

medication plans, reduce clinical risk, and lower prescribed drug

1054

costs and the rate of inappropriate spending on Medicaid

1055

behavioral drugs. The program may include the following elements:

1056

     (I)  Provide for the development and adoption of best

1057

practice guidelines for behavioral health-related drugs such as

1058

antipsychotics, antidepressants, and medications for treating

1059

bipolar disorders and other behavioral conditions; translate them

1060

into practice; review behavioral health prescribers and compare

1061

their prescribing patterns to a number of indicators that are

1062

based on national standards; and determine deviations from best

1063

practice guidelines.

1064

     (II)  Implement processes for providing feedback to and

1065

educating prescribers using best practice educational materials

1066

and peer-to-peer consultation.

1067

     (III)  Assess Medicaid beneficiaries who are outliers in

1068

their use of behavioral health drugs with regard to the numbers

1069

and types of drugs taken, drug dosages, combination drug

1070

therapies, and other indicators of improper use of behavioral

1071

health drugs.

1072

     (IV)  Alert prescribers to patients who fail to refill

1073

prescriptions in a timely fashion, are prescribed multiple same-

1074

class behavioral health drugs, and may have other potential

1075

medication problems.

1076

     (V)  Track spending trends for behavioral health drugs and

1077

deviation from best practice guidelines.

1078

     (VI)  Use educational and technological approaches to

1079

promote best practices, educate consumers, and train prescribers

1080

in the use of practice guidelines.

1081

     (VII)  Disseminate electronic and published materials.

1082

     (VIII)  Hold statewide and regional conferences.

1083

     (IX)  Implement a disease management program with a model

1084

quality-based medication component for severely mentally ill

1085

individuals and emotionally disturbed children who are high users

1086

of care.

1087

     11.a.  The agency shall implement a Medicaid prescription

1088

drug management system. The agency may contract with a vendor

1089

that has experience in operating prescription drug management

1090

systems in order to implement this system. Any management system

1091

that is implemented in accordance with this subparagraph must

1092

rely on cooperation between physicians and pharmacists to

1093

determine appropriate practice patterns and clinical guidelines

1094

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

1095

Medicaid program. The agency may seek federal waivers to

1096

implement this program.

1097

     b.  The drug management system must be designed to improve

1098

the quality of care and prescribing practices based on best

1099

practice guidelines, improve patient adherence to medication

1100

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

1101

the rate of inappropriate spending on Medicaid prescription

1102

drugs. The program must:

1103

     (I)  Provide for the development and adoption of best

1104

practice guidelines for the prescribing and use of drugs in the

1105

Medicaid program, including translating best practice guidelines

1106

into practice; reviewing prescriber patterns and comparing them

1107

to indicators that are based on national standards and practice

1108

patterns of clinical peers in their community, statewide, and

1109

nationally; and determine deviations from best practice

1110

guidelines.

1111

     (II)  Implement processes for providing feedback to and

1112

educating prescribers using best practice educational materials

1113

and peer-to-peer consultation.

1114

     (III)  Assess Medicaid recipients who are outliers in their

1115

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

1116

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

1117

therapies, and other indicators of improper use of prescription

1118

drugs.

1119

     (IV)  Alert prescribers to patients who fail to refill

1120

prescriptions in a timely fashion, are prescribed multiple drugs

1121

that may be redundant or contraindicated, or may have other

1122

potential medication problems.

1123

     (V)  Track spending trends for prescription drugs and

1124

deviation from best practice guidelines.

1125

     (VI)  Use educational and technological approaches to

1126

promote best practices, educate consumers, and train prescribers

1127

in the use of practice guidelines.

1128

     (VII)  Disseminate electronic and published materials.

1129

     (VIII)  Hold statewide and regional conferences.

1130

     (IX)  Implement disease management programs in cooperation

1131

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

1132

medication component for individuals having chronic medical

1133

conditions.

1134

     12.  The agency is authorized to contract for drug rebate

1135

administration, including, but not limited to, calculating rebate

1136

amounts, invoicing manufacturers, negotiating disputes with

1137

manufacturers, and maintaining a database of rebate collections.

1138

     13.  The agency may specify the preferred daily dosing form

1139

or strength for the purpose of promoting best practices with

1140

regard to the prescribing of certain drugs as specified in the

1141

General Appropriations Act and ensuring cost-effective

1142

prescribing practices.

1143

     14.  The agency may require prior authorization for

1144

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

1145

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

1146

     a.  For an indication not approved in labeling;

1147

     b.  To comply with certain clinical guidelines; or

1148

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

1149

abuse.

1150

1151

The agency may require the prescribing professional to provide

1152

information about the rationale and supporting medical evidence

1153

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

1154

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

1155

subject to prior authorization on an Internet website without

1156

amending its rule or engaging in additional rulemaking.

1157

     15.  The agency, in conjunction with the Pharmaceutical and

1158

Therapeutics Committee, may require age-related prior

1159

authorizations for certain prescribed drugs. The agency may

1160

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

1161

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

1162

of the this product as recommended by the manufacturer and

1163

approved by the Food and Drug Administration. Prior authorization

1164

may require the prescribing professional to provide information

1165

about the rationale and supporting medical evidence for the use

1166

of a drug.

1167

     16.  The agency shall implement a step-therapy prior

1168

authorization approval process for medications excluded from the

1169

preferred drug list. Medications listed on the preferred drug

1170

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

1171

alternative medications that are not listed. The step-therapy

1172

prior authorization may require the prescriber to use the

1173

medications of a similar drug class or for a similar medical

1174

indication unless contraindicated in the Food and Drug

1175

Administration labeling. The trial period between the specified

1176

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

1177

therapy approval process shall be developed in accordance with

1178

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

1179

product may be approved without meeting the step-therapy prior

1180

authorization criteria if the prescribing physician provides the

1181

agency with additional written medical or clinical documentation

1182

that the product is medically necessary because:

1183

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

1184

the disease or medical condition which is an acceptable clinical

1185

alternative;

1186

     b.  The alternatives have been ineffective in the treatment

1187

of the beneficiary's disease; or

1188

     c.  Based on historic evidence and known characteristics of

1189

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

1190

or the number of doses have been ineffective.

1191

1192

The agency shall work with the physician to determine the best

1193

alternative for the patient. The agency may adopt rules waiving

1194

the requirements for written clinical documentation for specific

1195

drugs in limited clinical situations.

1196

     17.  The agency shall implement a return and reuse program

1197

for drugs dispensed by pharmacies to institutional recipients,

1198

which includes payment of a $5 restocking fee for the

1199

implementation and operation of the program. The return and reuse

1200

program shall be implemented electronically and in a manner that

1201

promotes efficiency. The program must permit a pharmacy to

1202

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

1203

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

1204

return to inventory of drugs that cannot be credited or returned

1205

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

1206

program has reduced the amount of Medicaid prescription drugs

1207

which are destroyed on an annual basis and if there are

1208

additional ways to ensure more prescription drugs are not

1209

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

1210

and recommendations shall be reported to the Legislature by

1211

December 1, 2005.

1212

     (42) The agency may shall develop and implement a

1213

utilization management program for Medicaid-eligible recipients

1214

for the management of occupational, physical, respiratory, and

1215

speech therapies. The agency shall establish a utilization

1216

program that may require prior authorization in order to ensure

1217

medically necessary and cost-effective treatments. The program

1218

shall be operated in accordance with a federally approved waiver

1219

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

1220

waiver or state plan amendment to implement this program. The

1221

agency may also competitively procure these services from an

1222

outside vendor on a regional or statewide basis.

1223

     Section 10.  Section 409.91206, Florida Statutes, is created

1224

to read:

1225

     409.91206 Alternatives for health and long-term care

1226

reforms.--The Governor, the President of the Senate, and the

1227

Speaker of the House of Representatives may convene workgroups to

1228

propose alternatives for cost-effective health and long-term care

1229

reforms, including, but not limited to, reforms for Medicaid.

1230

     Section 11.  Paragraphs (c), (e), (f), and (i) of subsection

1231

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

1232

     409.9122  Mandatory Medicaid managed care enrollment;

1233

programs and procedures.--

1234

     (2)

1235

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

1236

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

1237

Department of Health, the Department of Children and Family

1238

Services, and the Department of Elderly Affairs shall cooperate

1239

to ensure that each Medicaid recipient receives clear and easily

1240

understandable information that meets the following requirements:

1241

     1.  Explains the concept of managed care, including

1242

MediPass.

1243

     2.  Provides information on the comparative performance of

1244

managed care plans and MediPass in the areas of quality,

1245

credentialing, preventive health programs, network size and

1246

availability, and patient satisfaction.

1247

     3.  Explains where additional information on each managed

1248

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

1249

     4.  Explains that recipients have the right to choose their

1250

own managed care coverage at the time they first enroll in

1251

Medicaid and again at regular intervals set by the agency plans

1252

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

1253

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

1254

managed care plan or MediPass according to the criteria specified

1255

in this section.

1256

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

1257

grievance, or change managed care plans or MediPass providers if

1258

the recipient is not satisfied with the managed care plan or

1259

MediPass.

1260

     (e)  Medicaid recipients who are already enrolled in a

1261

managed care plan or MediPass shall be offered the opportunity to

1262

change managed care plans or MediPass providers on a staggered

1263

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

1264

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

1265

MediPass providers. A recipient already enrolled in a managed

1266

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

1267

period shall remain enrolled in his or her current managed care

1268

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

1269

recipient already enrolled in MediPass who fails to make a choice

1270

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

1271

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

1272

The agency shall apply for a state plan amendment or federal

1273

waiver authority, if necessary, to implement the provisions of

1274

this paragraph. Those Medicaid recipients who do not make a

1275

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

1276

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

1277

for a Medicaid recipient who is also a recipient of Supplemental

1278

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

1279

managed care plan or MediPass, the agency shall determine whether

1280

the SSI recipient has an ongoing relationship with a MediPass

1281

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

1282

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

1283

If the SSI recipient has an ongoing relationship with a managed

1284

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

1285

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

1286

relationship shall be assigned to a managed care plan or MediPass

1287

provider in accordance with paragraph (f).

1288

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

1289

care plan or MediPass provider, the agency shall assign the

1290

Medicaid recipient to a managed care plan or MediPass provider.

1291

Medicaid recipients, eligible for managed care plan enrollment,

1292

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

1293

choice shall be assigned to managed care plans until an

1294

enrollment of 35 percent in MediPass and 65 percent in managed

1295

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

1296

achieved. Once this enrollment is achieved, the assignments shall

1297

be divided in order to maintain an enrollment in MediPass and

1298

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

1299

proportion, respectively. Thereafter, assignment of Medicaid

1300

recipients who fail to make a choice shall be based

1301

proportionally on the preferences of recipients who have made a

1302

choice in the previous period. Such proportions shall be revised

1303

at least quarterly to reflect an update of the preferences of

1304

Medicaid recipients. The agency shall disproportionately assign

1305

Medicaid-eligible recipients who are required to but have failed

1306

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

1307

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

1308

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

1309

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

1310

exclusive provider organizations, provider service networks,

1311

minority physician networks, and pediatric emergency department

1312

diversion programs authorized by this chapter or the General

1313

Appropriations Act, in such manner as the agency deems

1314

appropriate, until the agency has determined that the networks

1315

and programs have sufficient numbers to be operated economically

1316

operated. For purposes of this paragraph, when referring to

1317

assignment, the term "managed care plans" includes health

1318

maintenance organizations, exclusive provider organizations,

1319

provider service networks, minority physician networks,

1320

Children's Medical Services Network, and pediatric emergency

1321

department diversion programs authorized by this chapter or the

1322

General Appropriations Act. When making assignments, the agency

1323

shall take into account the following criteria:

1324

     1.  A managed care plan has sufficient network capacity to

1325

meet the need of members.

1326

     2.  The managed care plan or MediPass has previously

1327

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

1328

plan's primary care providers or MediPass providers has

1329

previously provided health care to the recipient.

1330

     3.  The agency has knowledge that the member has previously

1331

expressed a preference for a particular managed care plan or

1332

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

1333

data, but has failed to make a choice.

1334

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

1335

providers are geographically accessible to the recipient's

1336

residence.

1337

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

1338

selection or has been notified of his or her initial assignment

1339

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

1340

shall have 90 days to exercise the opportunity in which to

1341

voluntarily disenroll and select another managed care option plan

1342

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

1343

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

1344

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

1345

necessary specialty services, an unreasonable delay or denial of

1346

service, or fraudulent enrollment. The agency shall develop

1347

criteria for good cause disenrollment for chronically ill and

1348

disabled populations who are assigned to managed care plans if

1349

more appropriate care is available through the MediPass program.

1350

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

1351

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

1352

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

1353

determination of cause, except in cases in which immediate risk

1354

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

1355

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

1356

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

1357

of the second month after the month the disenrollment request was

1358

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

1359

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

1360

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

1361

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

1362

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

1363

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

1364

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

1365

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

1366

of the date agency action was required. Recipients who disagree

1367

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

1368

disenrollment shall be advised of their right to pursue a

1369

Medicaid fair hearing to dispute the agency's finding.

1370

     Section 12. Paragraph (c) of subsection (5) of section

1371

409.905 and section 430.83, Florida Statutes, are repealed.

1372

     Section 13.  This act shall take effect July 1, 2008.

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