Amendment
Bill No. CS/HB 1471
Amendment No. 427083
CHAMBER ACTION
Senate House
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1Representative Zapata offered the following:
2
3     Amendment to Senate Amendment (780200) (with title
4amendment)
5     Between lines 1543 and 1544, insert:
6     Section 32.  Subsection (17) of section 409.912, Florida
7Statutes, is amended to read:
8     409.912  Cost-effective purchasing of health care.--The
9agency shall purchase goods and services for Medicaid recipients
10in the most cost-effective manner consistent with the delivery
11of quality medical care. To ensure that medical services are
12effectively utilized, the agency may, in any case, require a
13confirmation or second physician's opinion of the correct
14diagnosis for purposes of authorizing future services under the
15Medicaid program. This section does not restrict access to
16emergency services or poststabilization care services as defined
17in 42 C.F.R. part 438.114. Such confirmation or second opinion
18shall be rendered in a manner approved by the agency. The agency
19shall maximize the use of prepaid per capita and prepaid
20aggregate fixed-sum basis services when appropriate and other
21alternative service delivery and reimbursement methodologies,
22including competitive bidding pursuant to s. 287.057, designed
23to facilitate the cost-effective purchase of a case-managed
24continuum of care. The agency shall also require providers to
25minimize the exposure of recipients to the need for acute
26inpatient, custodial, and other institutional care and the
27inappropriate or unnecessary use of high-cost services. The
28agency shall contract with a vendor to monitor and evaluate the
29clinical practice patterns of providers in order to identify
30trends that are outside the normal practice patterns of a
31provider's professional peers or the national guidelines of a
32provider's professional association. The vendor must be able to
33provide information and counseling to a provider whose practice
34patterns are outside the norms, in consultation with the agency,
35to improve patient care and reduce inappropriate utilization.
36The agency may mandate prior authorization, drug therapy
37management, or disease management participation for certain
38populations of Medicaid beneficiaries, certain drug classes, or
39particular drugs to prevent fraud, abuse, overuse, and possible
40dangerous drug interactions. The Pharmaceutical and Therapeutics
41Committee shall make recommendations to the agency on drugs for
42which prior authorization is required. The agency shall inform
43the Pharmaceutical and Therapeutics Committee of its decisions
44regarding drugs subject to prior authorization. The agency is
45authorized to limit the entities it contracts with or enrolls as
46Medicaid providers by developing a provider network through
47provider credentialing. The agency may competitively bid single-
48source-provider contracts if procurement of goods or services
49results in demonstrated cost savings to the state without
50limiting access to care. The agency may limit its network based
51on the assessment of beneficiary access to care, provider
52availability, provider quality standards, time and distance
53standards for access to care, the cultural competence of the
54provider network, demographic characteristics of Medicaid
55beneficiaries, practice and provider-to-beneficiary standards,
56appointment wait times, beneficiary use of services, provider
57turnover, provider profiling, provider licensure history,
58previous program integrity investigations and findings, peer
59review, provider Medicaid policy and billing compliance records,
60clinical and medical record audits, and other factors. Providers
61shall not be entitled to enrollment in the Medicaid provider
62network. The agency shall determine instances in which allowing
63Medicaid beneficiaries to purchase durable medical equipment and
64other goods is less expensive to the Medicaid program than long-
65term rental of the equipment or goods. The agency may establish
66rules to facilitate purchases in lieu of long-term rentals in
67order to protect against fraud and abuse in the Medicaid program
68as defined in s. 409.913. The agency may seek federal waivers
69necessary to administer these policies.
70     (17)  An entity contracting on a prepaid or fixed-sum basis
71shall, in addition to meeting any applicable statutory surplus
72requirements, also maintain at all times in the form of cash,
73investments that mature in less than 180 days allowable as
74admitted assets by the Office of Insurance Regulation, and
75restricted funds or deposits controlled by the agency or the
76Office of Insurance Regulation, a surplus amount equal to one-
77and-one-half times the entity's monthly Medicaid prepaid
78revenues. As used in this subsection, the term "surplus" means
79the entity's total assets minus total liabilities. If an
80entity's surplus falls below an amount equal to one-and-one-half
81times the entity's monthly Medicaid prepaid revenues, the agency
82shall prohibit the entity from engaging in marketing and
83preenrollment activities, shall cease to process new
84enrollments, and shall not renew the entity's contract until the
85required balance is achieved. The requirements of this
86subsection do not apply:
87     (a)  Where a public entity agrees to fund any deficit
88incurred by the contracting entity; or
89     (b)  Where the entity's performance and obligations are
90guaranteed in writing by a guaranteeing organization which:
91     1.  Has been in operation for at least 5 years and has
92assets in excess of $50 million; or
93     2.  Submits a written guarantee acceptable to the agency
94which is irrevocable during the term of the contracting entity's
95contract with the agency and, upon termination of the contract,
96until the agency receives proof of satisfaction of all
97outstanding obligations incurred under the contract; or
98     (c)  Where the entity is majority owned or controlled by
99one or more of the following:
100     1.  A federally qualified health center;
101     2.  A federally qualified health center controlled network;
102or
103     3.  Any not-for-profit entity which is itself majority
104owned or controlled by one or more federally qualified health
105centers or a federally qualified health center controlled
106network and where such entity meets the surplus and reserve
107requirements of s.641.225. For purposes of this section, the
108terms "federally qualified health center," and "federally
109qualified health center controlled network" shall have the
110meanings ascribed to them by the United States Department of
111Health and Human Services, Health Resources and Services
112Administration.
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T I T L E  A M E N D M E N T
117     Between lines 2077 and 2078, insert:
118amending s. 409.912, F.S.; providing additional exceptions to
119requirements for certain entities contracting on a prepaid or
120fixed-sum basis;


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