Florida Senate - 2009              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. SB 1658
       
       
       
       
       
                                Barcode 426188                          
       
       603-03123A-09                                                   
       Proposed Committee Substitute by the Committee on Health and
       Human Services Appropriations
    1                        A bill to be entitled                      
    2         An act relating to the health care; amending s.
    3         408.040, F.S.; conforming a cross-reference; amending
    4         s. 409.814, F.S.; requiring an applicant for the
    5         Florida Kidcare program to provide verification of the
    6         child’s citizenship status; amending s. 409.815, F.S.;
    7         revising behavioral health services and dental
    8         services coverage under the Kidcare program; revising
    9         methods by which payments are made to federally
   10         qualified health centers and rural health clinics;
   11         amending s. 409.818, F.S.; revising the manner by
   12         which quality assurance and access standards are
   13         monitored in the Kidcare program; amending s. 409.904,
   14         F.S.; extending the date that certain persons are
   15         eligible to receive optional Medicaid services;
   16         amending s. 409.905, F.S.; requiring prior
   17         authorization for certain home health services;
   18         establishing requirements for Medicaid reimbursed home
   19         health services; amending s. 409.908, F.S.; requiring
   20         increases in certain Medicaid provider rates to be
   21         authorized in the appropriations act; amending s.
   22         409.9082, F.S.; deleting an option for discontinuing
   23         the nursing home quality assessment; amending s.
   24         409.911, F.S.; updating the data to be used in
   25         calculating disproportionate share; amending s.
   26         409.9112, F.S.; continuing the prohibition against
   27         distributing moneys under the perinatal intensive care
   28         centers disproportionate share program; amending s.
   29         409.9113, F.S.; continuing authorization for the
   30         distribution of moneys to teaching hospitals under the
   31         disproportionate share program; amending s. 409.9117,
   32         F.S.; continuing the prohibition against distributing
   33         moneys for the primary care disproportionate share
   34         program; amending ss. 409.91195 and 409.91196, F.S.;
   35         conforming cross-references; amending s. 409.912,
   36         F.S.; deleting the fixed payment for delivery program
   37         for Medicaid recipients 60 years of age or older;
   38         requiring that a Medicaid managed care plan’s costs to
   39         the state be adjusted for health status; amending s.
   40         409.91211, F.S.; revising the timeline for phasing in
   41         financial risk for provider service networks;
   42         conforming cross-references; amending s. 430.04, F.S.;
   43         requiring the Department of Elderly Affairs to
   44         administer all Medicaid waivers and programs relating
   45         to elders; amending s. 641.386, F.S.; conforming a
   46         cross-reference; directing the Agency for Health Care
   47         Administration to establish pilot projects in Miami
   48         Dade County relating to home health services;
   49         providing an effective date.
   50  
   51  Be It Enacted by the Legislature of the State of Florida:
   52  
   53         Section 1. Paragraph (d) of subsection (1) of section
   54  408.040, Florida Statutes, is amended to read:
   55         408.040 Conditions and monitoring.—
   56         (1)
   57         (d) If a nursing home is located in a county in which a
   58  long-term care community diversion pilot project has been
   59  implemented under s. 430.705 or in a county in which an
   60  integrated, fixed-payment delivery program for Medicaid
   61  recipients who are 60 years of age or older or dually eligible
   62  for Medicare and Medicaid has been implemented under s.
   63  409.912(5), the nursing home may request a reduction in the
   64  percentage of annual patient days used by residents who are
   65  eligible for care under Title XIX of the Social Security Act,
   66  which is a condition of the nursing home’s certificate of need.
   67  The agency shall automatically grant the nursing home’s request
   68  if the reduction is not more than 15 percent of the nursing
   69  home’s annual Medicaid-patient-days condition. A nursing home
   70  may submit only one request every 2 years for an automatic
   71  reduction. A requesting nursing home must notify the agency in
   72  writing at least 60 days in advance of its intent to reduce its
   73  annual Medicaid-patient-days condition by not more than 15
   74  percent. The agency must acknowledge the request in writing and
   75  must change its records to reflect the revised certificate-of
   76  need condition. This paragraph expires June 30, 2011.
   77         Section 2. Paragraph (c) is added to subsection (8) of
   78  section 409.814, Florida Statutes, to read:
   79         409.814 Eligibility.—A child who has not reached 19 years
   80  of age whose family income is equal to or below 200 percent of
   81  the federal poverty level is eligible for the Florida Kidcare
   82  program as provided in this section. For enrollment in the
   83  Children’s Medical Services Network, a complete application
   84  includes the medical or behavioral health screening. If,
   85  subsequently, an individual is determined to be ineligible for
   86  coverage, he or she must immediately be disenrolled from the
   87  respective Florida Kidcare program component.
   88         (8) In determining the eligibility of a child, an assets
   89  test is not required. Each applicant shall provide written
   90  documentation during the application process and the
   91  redetermination process, including, but not limited to, the
   92  following:
   93         (c)Effective January 1, 2010, verification of the child’s
   94  citizenship status as required under Title XXI of the Social
   95  Security Act.
   96         Section 3.  Paragraphs (g) and (q) of section (2) of
   97  section 409.815, Florida Statutes, are amended, and paragraph
   98  (w) is added to that section, to read:
   99         409.815  Health benefits coverage; limitations.—
  100         (2) BENCHMARK BENEFITS.—In order for health benefits
  101  coverage to qualify for premium assistance payments for an
  102  eligible child under ss. 409.810-409.820, the health benefits
  103  coverage, except for coverage under Medicaid and Medikids, must
  104  include the following minimum benefits, as medically necessary.
  105         (g) Behavioral health services.—
  106         1. Mental health benefits include:
  107         a. Inpatient services, limited to not more than 30
  108  inpatient days per contract year for psychiatric admissions, or
  109  residential services in facilities licensed under s. 394.875(6)
  110  or s. 395.003 in lieu of inpatient psychiatric admissions;
  111  however, a minimum of 10 of the 30 days shall be available only
  112  for inpatient psychiatric services if when authorized by a
  113  physician; and
  114         b. Outpatient services, including outpatient visits for
  115  psychological or psychiatric evaluation, diagnosis, and
  116  treatment by a licensed mental health professional, limited to a
  117  maximum of 40 outpatient visits each contract year.
  118         2. Substance abuse services include:
  119         a. Inpatient services, limited to not more than 7 inpatient
  120  days per contract year for medical detoxification only and 30
  121  days of residential services; and
  122         b. Outpatient services, including evaluation, diagnosis,
  123  and treatment by a licensed practitioner, limited to a maximum
  124  of 40 outpatient visits per contract year.
  125  
  126  Effective October 1, 2009, covered services include inpatient
  127  and outpatient services for mental and nervous disorders as
  128  defined in the most recent edition of the Diagnostic and
  129  Statistical Manual of Mental Disorders published by the American
  130  Psychiatric Association. Such benefits include psychological or
  131  psychiatric evaluation, diagnosis, and treatment by a licensed
  132  mental health professional, and inpatient, outpatient, and
  133  residential treatment services for the diagnosis and treatment
  134  of substance abuse disorders. Any benefit limitations, including
  135  duration of services, number of visits, or number of days for
  136  hospitalization or residential services may not be any less
  137  favorable than those for physical illnesses generally for the
  138  care and treatment of schizophrenia and psychotic disorders,
  139  mood disorders, anxiety disorders, substance abuse disorders,
  140  eating disorders, and childhood attention deficit disorders. The
  141  program may also implement appropriate financial incentives,
  142  peer review, utilization requirements, and other methods used
  143  for the management of benefits provided for other medical
  144  conditions in order to reduce service costs and utilization
  145  without compromising quality of care.
  146         (q) Dental services.Effective October 1, 2009, dental
  147  services shall be covered as required under federal law and may
  148  also include those dental benefits provided to children by the
  149  Florida Medicaid program under s. 409.906(6).
  150         (w)Reimbursement of federally qualified health centers and
  151  rural health clinics.—Effective October 1, 2009, payments for
  152  services provided to enrollees by federally qualified health
  153  centers and rural health clinics under this section shall be
  154  reimbursed using the Medicaid Prospective Payment System as
  155  provided for under s. 2107(e)(1)(D) of the Social Security Act,
  156  as added by subsection (a). If such services are paid for by
  157  health insurers or health care providers under contract with the
  158  Florida Healthy Kids Corporation, such entities are responsible
  159  for this payment. The agency may seek any available federal
  160  grants to assist with this transition.
  161         Section 4. Paragraph (c) of subsection (3) of section
  162  409.818, Florida Statutes, is amended to read:
  163         409.818 Administration.—In order to implement ss. 409.810
  164  409.820, the following agencies shall have the following duties:
  165         (3) The Agency for Health Care Administration, under the
  166  authority granted in s. 409.914(1), shall:
  167         (c) Monitor compliance with quality assurance and access
  168  standards developed under s. 409.820 and in accordance with s.
  169  2103(f) of the Social Security Act, 42 U.S.C. 1397bb(f).
  170  
  171  The agency is designated the lead state agency for Title XXI of
  172  the Social Security Act for purposes of receipt of federal
  173  funds, for reporting purposes, and for ensuring compliance with
  174  federal and state regulations and rules.
  175         Section 5. Subsection (1) and paragraph (a) of subsection
  176  (2) of section 409.904, Florida Statutes, are amended to read:
  177         409.904 Optional payments for eligible persons.—The agency
  178  may make payments for medical assistance and related services on
  179  behalf of the following persons who are determined to be
  180  eligible subject to the income, assets, and categorical
  181  eligibility tests set forth in federal and state law. Payment on
  182  behalf of these Medicaid eligible persons is subject to the
  183  availability of moneys and any limitations established by the
  184  General Appropriations Act or chapter 216.
  185         (1) Effective January 1, 2006, and Subject to federal
  186  waiver approval, a person who is age 65 or older or is
  187  determined to be disabled, whose income is at or below 88
  188  percent of the federal poverty level, whose assets do not exceed
  189  established limitations, and who is not eligible for Medicare
  190  or, if eligible for Medicare, is also eligible for and receiving
  191  Medicaid-covered institutional care services, hospice services,
  192  or home and community-based services. The agency shall seek
  193  federal authorization through a waiver to provide this coverage.
  194  This subsection expires December 31, 2010 June 30, 2009.
  195         (2)(a) A family, a pregnant woman, a child under age 21, a
  196  person age 65 or over, or a blind or disabled person, who would
  197  be eligible under any group listed in s. 409.903(1), (2), or
  198  (3), except that the income or assets of such family or person
  199  exceed established limitations. For a family or person in one of
  200  these coverage groups, medical expenses are deductible from
  201  income in accordance with federal requirements in order to make
  202  a determination of eligibility. A family or person eligible
  203  under the coverage known as the “medically needy,” is eligible
  204  to receive the same services as other Medicaid recipients, with
  205  the exception of services in skilled nursing facilities and
  206  intermediate care facilities for the developmentally disabled.
  207  This subsection expires December 31, 2010 June 30, 2009.
  208         Section 6.  Subsection (4) of section 409.905, Florida
  209  Statutes, is amended to read:
  210         409.905 Mandatory Medicaid services.—The agency may make
  211  payments for the following services, which are required of the
  212  state by Title XIX of the Social Security Act, furnished by
  213  Medicaid providers to recipients who are determined to be
  214  eligible on the dates on which the services were provided. Any
  215  service under this section shall be provided only when medically
  216  necessary and in accordance with state and federal law.
  217  Mandatory services rendered by providers in mobile units to
  218  Medicaid recipients may be restricted by the agency. Nothing in
  219  this section shall be construed to prevent or limit the agency
  220  from adjusting fees, reimbursement rates, lengths of stay,
  221  number of visits, number of services, or any other adjustments
  222  necessary to comply with the availability of moneys and any
  223  limitations or directions provided for in the General
  224  Appropriations Act or chapter 216.
  225         (4) HOME HEALTH CARE SERVICES.—The agency shall pay for
  226  nursing and home health aide services, supplies, appliances, and
  227  durable medical equipment, necessary to assist a recipient
  228  living at home. An entity that provides services pursuant to
  229  this subsection must shall be licensed under part III of chapter
  230  400. These services, equipment, and supplies, or reimbursement
  231  therefor, may be limited as provided in the General
  232  Appropriations Act and do not include services, equipment, or
  233  supplies provided to a person residing in a hospital or nursing
  234  facility.
  235         (a) In providing home health care services, the agency may
  236  require prior authorization of care based on diagnosis or
  237  utilization rates. Prior authorization is required for home
  238  health services visits not associated with a skilled nursing
  239  visit if the home health agency’s utilization rates exceed the
  240  state average by 50 percent or more. The home health agency must
  241  submit documentation that supports the recipient’s diagnosis and
  242  the recipient’s plan of care to the agency when requesting prior
  243  authorization.
  244         (b) The agency shall implement a comprehensive utilization
  245  management program that requires prior authorization of all
  246  private duty nursing services, an individualized treatment plan
  247  that includes information about medication and treatment orders,
  248  treatment goals, methods of care to be used, and plans for care
  249  coordination by nurses and other health professionals. The
  250  utilization management program shall also include a process for
  251  periodically reviewing the ongoing use of private duty nursing
  252  services. For a child, the assessment of need shall be based on
  253  a child’s condition, family support and care supplements, a
  254  family’s ability to provide care, and a family’s and child’s
  255  schedule regarding work, school, sleep, and care for other
  256  family dependents. When implemented, the private duty nursing
  257  utilization management program shall replace the current
  258  authorization program used by the agency for Health Care
  259  Administration and the Children’s Medical Services program of
  260  the Department of Health. The agency may competitively bid on a
  261  contract to select a qualified organization to provide
  262  utilization management of private duty nursing services. The
  263  agency is authorized to seek federal waivers to implement this
  264  initiative.
  265         (c)The agency may provide reimbursement for only those
  266  home health services that are medically necessary and if:
  267         1.The services are ordered by a physician.
  268         2.The written prescription for services is signed and
  269  dated by the recipient’s physician before the development of a
  270  plan of care and before any required request for prior
  271  authorization.
  272         3.The physician ordering the services is not employed,
  273  under contract with, or otherwise affiliated with the home
  274  health agency rendering the services.
  275         4.The physician ordering the services has examined the
  276  recipient within 30 days before the initial request for services
  277  and biannually thereafter.
  278         5.The written prescription for the services includes the
  279  recipient’s acute or chronic medical condition or diagnosis; the
  280  home health service required, including the minimum skill level
  281  required to perform the service; and the frequency and duration
  282  of services.
  283         6.The national provider identifier, Medicaid
  284  identification number, or medical practitioner license number of
  285  the physician ordering the services is listed on the written
  286  prescription for the services, the claim for home health
  287  reimbursement, and the prior authorization request.
  288         Section 7. Subsection (23) of section 409.908, Florida
  289  Statutes, is amended to read:
  290         409.908 Reimbursement of Medicaid providers.—Subject to
  291  specific appropriations, the agency shall reimburse Medicaid
  292  providers, in accordance with state and federal law, according
  293  to methodologies set forth in the rules of the agency and in
  294  policy manuals and handbooks incorporated by reference therein.
  295  These methodologies may include fee schedules, reimbursement
  296  methods based on cost reporting, negotiated fees, competitive
  297  bidding pursuant to s. 287.057, and other mechanisms the agency
  298  considers efficient and effective for purchasing services or
  299  goods on behalf of recipients. If a provider is reimbursed based
  300  on cost reporting and submits a cost report late and that cost
  301  report would have been used to set a lower reimbursement rate
  302  for a rate semester, then the provider’s rate for that semester
  303  shall be retroactively calculated using the new cost report, and
  304  full payment at the recalculated rate shall be effected
  305  retroactively. Medicare-granted extensions for filing cost
  306  reports, if applicable, shall also apply to Medicaid cost
  307  reports. Payment for Medicaid compensable services made on
  308  behalf of Medicaid eligible persons is subject to the
  309  availability of moneys and any limitations or directions
  310  provided for in the General Appropriations Act or chapter 216.
  311  Further, nothing in this section shall be construed to prevent
  312  or limit the agency from adjusting fees, reimbursement rates,
  313  lengths of stay, number of visits, or number of services, or
  314  making any other adjustments necessary to comply with the
  315  availability of moneys and any limitations or directions
  316  provided for in the General Appropriations Act, provided the
  317  adjustment is consistent with legislative intent.
  318         (23)(a) The agency shall establish rates at a level that
  319  ensures no increase in statewide expenditures resulting from a
  320  change in unit costs for 2 fiscal years effective July 1, 2009.
  321  Reimbursement rates for the 2 fiscal years shall be as provided
  322  in the General Appropriations Act.
  323         (a)(b)This subsection applies to The following provider
  324  types may not receive an increase in reimbursement rate due to a
  325  change in unit cost unless specifically appropriated in the
  326  General Appropriations Act:
  327         1. Inpatient hospitals.
  328         2. Outpatient hospitals.
  329         3. Nursing homes.
  330         4. County health departments.
  331         5. Community intermediate care facilities for the
  332  developmentally disabled.
  333         6. Prepaid health plans.
  334         7.Nursing home diversion programs.
  335  
  336  The agency shall apply the effect of this subsection to the
  337  reimbursement rates for nursing home diversion programs.
  338         (b)(c) The agency shall create a workgroup on hospital
  339  reimbursement, a workgroup on nursing facility reimbursement,
  340  and a workgroup on managed care plan payment. The workgroups
  341  shall evaluate alternative reimbursement and payment
  342  methodologies for hospitals, nursing facilities, and managed
  343  care plans, including prospective payment methodologies for
  344  hospitals and nursing facilities. The nursing facility workgroup
  345  shall also consider price-based methodologies for indirect care
  346  and acuity adjustments for direct care. The agency shall submit
  347  a report on the evaluated alternative reimbursement
  348  methodologies to the relevant committees of the Senate and the
  349  House of Representatives by November 1, 2009.
  350         (c)(d) This subsection expires June 30, 2011.
  351         Section 8. Subsection (6) of section 409.9082, Florida
  352  Statutes, is amended to read:
  353         409.9082 Quality assessment on nursing home facility
  354  providers; exemptions; purpose; federal approval required;
  355  remedies.—
  356         (6) The quality assessment shall terminate and the agency
  357  shall discontinue the imposition, assessment, and collection of
  358  the nursing facility quality assessment if any of the following
  359  occur:
  360         (a) the agency does not obtain necessary federal approval
  361  for the nursing home facility quality assessment or the payment
  362  rates required by subsection (4); or
  363         (b)The weighted average Medicaid rate paid to nursing home
  364  facilities is reduced below the weighted average Medicaid rate
  365  to nursing home facilities in effect on December 31, 2008, plus
  366  any future annual amount of the quality assessment and the
  367  applicable matching federal funds. Upon termination of the
  368  quality assessment, all collected assessment revenues, less any
  369  amounts expended by the agency, shall be returned on a pro rata
  370  basis to the nursing facilities that paid them.
  371         Section 9. Paragraph (a) of subsection (2) of section
  372  409.911, Florida Statutes, is amended to read:
  373         409.911 Disproportionate share program.—Subject to specific
  374  allocations established within the General Appropriations Act
  375  and any limitations established pursuant to chapter 216, the
  376  agency shall distribute, pursuant to this section, moneys to
  377  hospitals providing a disproportionate share of Medicaid or
  378  charity care services by making quarterly Medicaid payments as
  379  required. Notwithstanding the provisions of s. 409.915, counties
  380  are exempt from contributing toward the cost of this special
  381  reimbursement for hospitals serving a disproportionate share of
  382  low-income patients.
  383         (2) The agency for Health Care Administration shall use the
  384  following actual audited data to determine the Medicaid days and
  385  charity care to be used in calculating the disproportionate
  386  share payment:
  387         (a) The average of the 2002, 2003, and 2004, and 2005
  388  audited disproportionate share data to determine each hospital’s
  389  Medicaid days and charity care for the 2009-2010 2008-2009 state
  390  fiscal year.
  391         Section 10. Section 409.9112, Florida Statutes, is amended
  392  to read:
  393         409.9112 Disproportionate share program for regional
  394  perinatal intensive care centers.—In addition to the payments
  395  made under s. 409.911, the agency for Health Care Administration
  396  shall design and implement a system for of making
  397  disproportionate share payments to those hospitals that
  398  participate in the regional perinatal intensive care center
  399  program established pursuant to chapter 383. The This system of
  400  payments must shall conform to with federal requirements and
  401  shall distribute funds in each fiscal year for which an
  402  appropriation is made by making quarterly Medicaid payments.
  403  Notwithstanding the provisions of s. 409.915, counties are
  404  exempt from contributing toward the cost of this special
  405  reimbursement for hospitals serving a disproportionate share of
  406  low-income patients. For the 2009-2010 state fiscal year 2008
  407  2009, the agency may shall not distribute moneys under the
  408  regional perinatal intensive care centers disproportionate share
  409  program.
  410         (1) The following formula shall be used by the agency to
  411  calculate the total amount earned for hospitals that participate
  412  in the regional perinatal intensive care center program:
  413                          TAE = HDSP/THDSP                         
  414  
  415         Where:
  416         TAE = total amount earned by a regional perinatal intensive
  417  care center.
  418         HDSP = the prior state fiscal year regional perinatal
  419  intensive care center disproportionate share payment to the
  420  individual hospital.
  421         THDSP = the prior state fiscal year total regional
  422  perinatal intensive care center disproportionate share payments
  423  to all hospitals.
  424         (2) The total additional payment for hospitals that
  425  participate in the regional perinatal intensive care center
  426  program shall be calculated by the agency as follows:
  427                           TAP = TAE x TA                          
  428  
  429         Where:
  430         TAP = total additional payment for a regional perinatal
  431  intensive care center.
  432         TAE = total amount earned by a regional perinatal intensive
  433  care center.
  434         TA = total appropriation for the regional perinatal
  435  intensive care center disproportionate share program.
  436         (3) In order to receive payments under this section, a
  437  hospital must be participating in the regional perinatal
  438  intensive care center program pursuant to chapter 383 and must
  439  meet the following additional requirements:
  440         (a) Agree to conform to all departmental and agency
  441  requirements to ensure high quality in the provision of
  442  services, including criteria adopted by departmental and agency
  443  rule concerning staffing ratios, medical records, standards of
  444  care, equipment, space, and such other standards and criteria as
  445  the department and agency deem appropriate as specified by rule.
  446         (b) Agree to provide information to the department and
  447  agency, in a form and manner to be prescribed by rule of the
  448  department and agency, concerning the care provided to all
  449  patients in neonatal intensive care centers and high-risk
  450  maternity care.
  451         (c) Agree to accept all patients for neonatal intensive
  452  care and high-risk maternity care, regardless of ability to pay,
  453  on a functional space-available basis.
  454         (d) Agree to develop arrangements with other maternity and
  455  neonatal care providers in the hospital’s region for the
  456  appropriate receipt and transfer of patients in need of
  457  specialized maternity and neonatal intensive care services.
  458         (e) Agree to establish and provide a developmental
  459  evaluation and services program for certain high-risk neonates,
  460  as prescribed and defined by rule of the department.
  461         (f) Agree to sponsor a program of continuing education in
  462  perinatal care for health care professionals within the region
  463  of the hospital, as specified by rule.
  464         (g) Agree to provide backup and referral services to the
  465  department’s county health departments and other low-income
  466  perinatal providers within the hospital’s region, including the
  467  development of written agreements between these organizations
  468  and the hospital.
  469         (h) Agree to arrange for transportation for high-risk
  470  obstetrical patients and neonates in need of transfer from the
  471  community to the hospital or from the hospital to another more
  472  appropriate facility.
  473         (4) Hospitals which fail to comply with any of the
  474  conditions in subsection (3) or the applicable rules of the
  475  department and agency may shall not receive any payments under
  476  this section until full compliance is achieved. A hospital which
  477  is not in compliance in two or more consecutive quarters may
  478  shall not receive its share of the funds. Any forfeited funds
  479  shall be distributed by the remaining participating regional
  480  perinatal intensive care center program hospitals.
  481         Section 11. Section 409.9113, Florida Statutes, is amended
  482  to read:
  483         409.9113 Disproportionate share program for teaching
  484  hospitals.—In addition to the payments made under ss. 409.911
  485  and 409.9112, the agency for Health Care Administration shall
  486  make disproportionate share payments to statutorily defined
  487  teaching hospitals for their increased costs associated with
  488  medical education programs and for tertiary health care services
  489  provided to the indigent. This system of payments must shall
  490  conform to with federal requirements and shall distribute funds
  491  in each fiscal year for which an appropriation is made by making
  492  quarterly Medicaid payments. Notwithstanding s. 409.915,
  493  counties are exempt from contributing toward the cost of this
  494  special reimbursement for hospitals serving a disproportionate
  495  share of low-income patients. For the 2009-2010 state fiscal
  496  year 2008-2009, the agency shall distribute the moneys provided
  497  in the General Appropriations Act to statutorily defined
  498  teaching hospitals and family practice teaching hospitals under
  499  the teaching hospital disproportionate share program. The funds
  500  provided for statutorily defined teaching hospitals shall be
  501  distributed in the same proportion as the state fiscal year
  502  2003-2004 teaching hospital disproportionate share funds were
  503  distributed or as otherwise provided in the General
  504  Appropriations Act. The funds provided for family practice
  505  teaching hospitals shall be distributed equally among family
  506  practice teaching hospitals.
  507         (1) On or before September 15 of each year, the agency for
  508  Health Care Administration shall calculate an allocation
  509  fraction to be used for distributing funds to state statutory
  510  teaching hospitals. Subsequent to the end of each quarter of the
  511  state fiscal year, the agency shall distribute to each statutory
  512  teaching hospital, as defined in s. 408.07, an amount determined
  513  by multiplying one-fourth of the funds appropriated for this
  514  purpose by the Legislature times such hospital’s allocation
  515  fraction. The allocation fraction for each such hospital shall
  516  be determined by the sum of the following three primary factors,
  517  divided by three. The primary factors are:
  518         (a) The number of nationally accredited graduate medical
  519  education programs offered by the hospital, including programs
  520  accredited by the Accreditation Council for Graduate Medical
  521  Education and the combined Internal Medicine and Pediatrics
  522  programs acceptable to both the American Board of Internal
  523  Medicine and the American Board of Pediatrics at the beginning
  524  of the state fiscal year preceding the date on which the
  525  allocation fraction is calculated. The numerical value of this
  526  factor is the fraction that the hospital represents of the total
  527  number of programs, where the total is computed for all state
  528  statutory teaching hospitals.
  529         (b) The number of full-time equivalent trainees in the
  530  hospital, which comprises two components:
  531         1. The number of trainees enrolled in nationally accredited
  532  graduate medical education programs, as defined in paragraph
  533  (a). Full-time equivalents are computed using the fraction of
  534  the year during which each trainee is primarily assigned to the
  535  given institution, over the state fiscal year preceding the date
  536  on which the allocation fraction is calculated. The numerical
  537  value of this factor is the fraction that the hospital
  538  represents of the total number of full-time equivalent trainees
  539  enrolled in accredited graduate programs, where the total is
  540  computed for all state statutory teaching hospitals.
  541         2. The number of medical students enrolled in accredited
  542  colleges of medicine and engaged in clinical activities,
  543  including required clinical clerkships and clinical electives.
  544  Full-time equivalents are computed using the fraction of the
  545  year during which each trainee is primarily assigned to the
  546  given institution, over the course of the state fiscal year
  547  preceding the date on which the allocation fraction is
  548  calculated. The numerical value of this factor is the fraction
  549  that the given hospital represents of the total number of full
  550  time equivalent students enrolled in accredited colleges of
  551  medicine, where the total is computed for all state statutory
  552  teaching hospitals.
  553  
  554  The primary factor for full-time equivalent trainees is computed
  555  as the sum of these two components, divided by two.
  556         (c) A service index that comprises three components:
  557         1. The Agency for Health Care Administration Service Index,
  558  computed by applying the standard Service Inventory Scores
  559  established by the agency for Health Care Administration to
  560  services offered by the given hospital, as reported on Worksheet
  561  A-2 for the last fiscal year reported to the agency before the
  562  date on which the allocation fraction is calculated. The
  563  numerical value of this factor is the fraction that the given
  564  hospital represents of the total Agency for Health Care
  565  Administration Service Index values, where the total is computed
  566  for all state statutory teaching hospitals.
  567         2. A volume-weighted service index, computed by applying
  568  the standard Service Inventory Scores established by the Agency
  569  for Health Care Administration to the volume of each service,
  570  expressed in terms of the standard units of measure reported on
  571  Worksheet A-2 for the last fiscal year reported to the agency
  572  before the date on which the allocation factor is calculated.
  573  The numerical value of this factor is the fraction that the
  574  given hospital represents of the total volume-weighted service
  575  index values, where the total is computed for all state
  576  statutory teaching hospitals.
  577         3. Total Medicaid payments to each hospital for direct
  578  inpatient and outpatient services during the fiscal year
  579  preceding the date on which the allocation factor is calculated.
  580  This includes payments made to each hospital for such services
  581  by Medicaid prepaid health plans, whether the plan was
  582  administered by the hospital or not. The numerical value of this
  583  factor is the fraction that each hospital represents of the
  584  total of such Medicaid payments, where the total is computed for
  585  all state statutory teaching hospitals.
  586  
  587  The primary factor for the service index is computed as the sum
  588  of these three components, divided by three.
  589         (2) By October 1 of each year, the agency shall use the
  590  following formula to calculate the maximum additional
  591  disproportionate share payment for statutorily defined teaching
  592  hospitals:
  593                           TAP = THAF x A                          
  594  
  595         Where:
  596         TAP = total additional payment.
  597         THAF = teaching hospital allocation factor.
  598         A = amount appropriated for a teaching hospital
  599  disproportionate share program.
  600         Section 12.  Section 409.9117, Florida Statutes, is amended
  601  to read:
  602         409.9117 Primary care disproportionate share program.—For
  603  the 2009-2010 state fiscal year 2008-2009, the agency shall not
  604  distribute moneys under the primary care disproportionate share
  605  program.
  606         (1) If federal funds are available for disproportionate
  607  share programs in addition to those otherwise provided by law,
  608  there shall be created a primary care disproportionate share
  609  program.
  610         (2) The following formula shall be used by the agency to
  611  calculate the total amount earned for hospitals that participate
  612  in the primary care disproportionate share program:
  613                          TAE = HDSP/THDSP                         
  614  
  615         Where:
  616         TAE = total amount earned by a hospital participating in
  617  the primary care disproportionate share program.
  618         HDSP = the prior state fiscal year primary care
  619  disproportionate share payment to the individual hospital.
  620         THDSP = the prior state fiscal year total primary care
  621  disproportionate share payments to all hospitals.
  622         (3) The total additional payment for hospitals that
  623  participate in the primary care disproportionate share program
  624  shall be calculated by the agency as follows:
  625                           TAP = TAE x TA                          
  626  
  627         Where:
  628         TAP = total additional payment for a primary care hospital.
  629         TAE = total amount earned by a primary care hospital.
  630         TA = total appropriation for the primary care
  631  disproportionate share program.
  632         (4) In the establishment and funding of this program, the
  633  agency shall use the following criteria in addition to those
  634  specified in s. 409.911, and payments may not be made to a
  635  hospital unless the hospital agrees to:
  636         (a) Cooperate with a Medicaid prepaid health plan, if one
  637  exists in the community.
  638         (b) Ensure the availability of primary and specialty care
  639  physicians to Medicaid recipients who are not enrolled in a
  640  prepaid capitated arrangement and who are in need of access to
  641  such physicians.
  642         (c) Coordinate and provide primary care services free of
  643  charge, except copayments, to all persons with incomes up to 100
  644  percent of the federal poverty level who are not otherwise
  645  covered by Medicaid or another program administered by a
  646  governmental entity, and to provide such services based on a
  647  sliding fee scale to all persons with incomes up to 200 percent
  648  of the federal poverty level who are not otherwise covered by
  649  Medicaid or another program administered by a governmental
  650  entity, except that eligibility may be limited to persons who
  651  reside within a more limited area, as agreed to by the agency
  652  and the hospital.
  653         (d) Contract with any federally qualified health center, if
  654  one exists within the agreed geopolitical boundaries, concerning
  655  the provision of primary care services, in order to guarantee
  656  delivery of services in a nonduplicative fashion, and to provide
  657  for referral arrangements, privileges, and admissions, as
  658  appropriate. The hospital shall agree to provide at an onsite or
  659  offsite facility primary care services within 24 hours to which
  660  all Medicaid recipients and persons eligible under this
  661  paragraph who do not require emergency room services are
  662  referred during normal daylight hours.
  663         (e) Cooperate with the agency, the county, and other
  664  entities to ensure the provision of certain public health
  665  services, case management, referral and acceptance of patients,
  666  and sharing of epidemiological data, as the agency and the
  667  hospital find mutually necessary and desirable to promote and
  668  protect the public health within the agreed geopolitical
  669  boundaries.
  670         (f) In cooperation with the county in which the hospital
  671  resides, develop a low-cost, outpatient, prepaid health care
  672  program to persons who are not eligible for the Medicaid
  673  program, and who reside within the area.
  674         (g) Provide inpatient services to residents within the area
  675  who are not eligible for Medicaid or Medicare, and who do not
  676  have private health insurance, regardless of ability to pay, on
  677  the basis of available space, except that hospitals may not be
  678  prevented nothing shall prevent the hospital from establishing
  679  bill collection programs based on ability to pay.
  680         (h) Work with the Florida Healthy Kids Corporation, the
  681  Florida Health Care Purchasing Cooperative, and business health
  682  coalitions, as appropriate, to develop a feasibility study and
  683  plan to provide a low-cost comprehensive health insurance plan
  684  to persons who reside within the area and who do not have access
  685  to such a plan.
  686         (i) Work with public health officials and other experts to
  687  provide community health education and prevention activities
  688  designed to promote healthy lifestyles and appropriate use of
  689  health services.
  690         (j) Work with the local health council to develop a plan
  691  for promoting access to affordable health care services for all
  692  persons who reside within the area, including, but not limited
  693  to, public health services, primary care services, inpatient
  694  services, and affordable health insurance generally.
  695  
  696  Any hospital that fails to comply with any of the provisions of
  697  this subsection, or any other contractual condition, may not
  698  receive payments under this section until full compliance is
  699  achieved.
  700         Section 13. Subsection (4) of section 409.91195, Florida
  701  Statutes, is amended to read:
  702         409.91195 Medicaid Pharmaceutical and Therapeutics
  703  Committee.—There is created a Medicaid Pharmaceutical and
  704  Therapeutics Committee within the agency for the purpose of
  705  developing a Medicaid preferred drug list.
  706         (4) Upon recommendation of the committee, the agency shall
  707  adopt a preferred drug list as described in s. 409.912(38) s.
  708  409.912(39). If To the extent feasible, the committee shall
  709  review all drug classes included on the preferred drug list
  710  every 12 months, and may recommend additions to and deletions
  711  from the preferred drug list, such that the preferred drug list
  712  provides for medically appropriate drug therapies for Medicaid
  713  patients which achieve cost savings contained in the General
  714  Appropriations Act.
  715         Section 14. Subsection (1) of section 409.91196, Florida
  716  Statutes, is amended to read:
  717         409.91196 Supplemental rebate agreements; public records
  718  and public meetings exemption.—
  719         (1) The rebate amount, percent of rebate, manufacturer’s
  720  pricing, and supplemental rebate, and other trade secrets as
  721  defined in s. 688.002 that the agency has identified for use in
  722  negotiations, held by the agency for Health Care Administration
  723  under s. 409.912(38)(a)7. s. 409.912(39)(a)7. are confidential
  724  and exempt from s. 119.07(1) and s. 24(a), Art. I of the State
  725  Constitution.
  726         Section 15. Present subsections (6) through (53) of section
  727  409.912, Florida Statutes, are redesignated as subsections (5)
  728  through (52), respectively, and present subsections (5), (21),
  729  and (29) of that section, are amended to read:
  730         409.912 Cost-effective purchasing of health care.—The
  731  agency shall purchase goods and services for Medicaid recipients
  732  in the most cost-effective manner consistent with the delivery
  733  of quality medical care. To ensure that medical services are
  734  effectively utilized, the agency may, in any case, require a
  735  confirmation or second physician’s opinion of the correct
  736  diagnosis for purposes of authorizing future services under the
  737  Medicaid program. This section does not restrict access to
  738  emergency services or poststabilization care services as defined
  739  in 42 C.F.R. part 438.114. Such confirmation or second opinion
  740  shall be rendered in a manner approved by the agency. The agency
  741  shall maximize the use of prepaid per capita and prepaid
  742  aggregate fixed-sum basis services when appropriate and other
  743  alternative service delivery and reimbursement methodologies,
  744  including competitive bidding pursuant to s. 287.057, designed
  745  to facilitate the cost-effective purchase of a case-managed
  746  continuum of care. The agency shall also require providers to
  747  minimize the exposure of recipients to the need for acute
  748  inpatient, custodial, and other institutional care and the
  749  inappropriate or unnecessary use of high-cost services. The
  750  agency shall contract with a vendor to monitor and evaluate the
  751  clinical practice patterns of providers in order to identify
  752  trends that are outside the normal practice patterns of a
  753  provider’s professional peers or the national guidelines of a
  754  provider’s professional association. The vendor must be able to
  755  provide information and counseling to a provider whose practice
  756  patterns are outside the norms, in consultation with the agency,
  757  to improve patient care and reduce inappropriate utilization.
  758  The agency may mandate prior authorization, drug therapy
  759  management, or disease management participation for certain
  760  populations of Medicaid beneficiaries, certain drug classes, or
  761  particular drugs to prevent fraud, abuse, overuse, and possible
  762  dangerous drug interactions. The Pharmaceutical and Therapeutics
  763  Committee shall make recommendations to the agency on drugs for
  764  which prior authorization is required. The agency shall inform
  765  the Pharmaceutical and Therapeutics Committee of its decisions
  766  regarding drugs subject to prior authorization. The agency is
  767  authorized to limit the entities it contracts with or enrolls as
  768  Medicaid providers by developing a provider network through
  769  provider credentialing. The agency may competitively bid single
  770  source-provider contracts if procurement of goods or services
  771  results in demonstrated cost savings to the state without
  772  limiting access to care. The agency may limit its network based
  773  on the assessment of beneficiary access to care, provider
  774  availability, provider quality standards, time and distance
  775  standards for access to care, the cultural competence of the
  776  provider network, demographic characteristics of Medicaid
  777  beneficiaries, practice and provider-to-beneficiary standards,
  778  appointment wait times, beneficiary use of services, provider
  779  turnover, provider profiling, provider licensure history,
  780  previous program integrity investigations and findings, peer
  781  review, provider Medicaid policy and billing compliance records,
  782  clinical and medical record audits, and other factors. Providers
  783  shall not be entitled to enrollment in the Medicaid provider
  784  network. The agency shall determine instances in which allowing
  785  Medicaid beneficiaries to purchase durable medical equipment and
  786  other goods is less expensive to the Medicaid program than long
  787  term rental of the equipment or goods. The agency may establish
  788  rules to facilitate purchases in lieu of long-term rentals in
  789  order to protect against fraud and abuse in the Medicaid program
  790  as defined in s. 409.913. The agency may seek federal waivers
  791  necessary to administer these policies.
  792         (5)The Agency for Health Care Administration, in
  793  partnership with the Department of Elderly Affairs, shall create
  794  an integrated, fixed-payment delivery program for Medicaid
  795  recipients who are 60 years of age or older or dually eligible
  796  for Medicare and Medicaid. The Agency for Health Care
  797  Administration shall implement the integrated program initially
  798  on a pilot basis in two areas of the state. The pilot areas
  799  shall be Area 7 and Area 11 of the Agency for Health Care
  800  Administration. Enrollment in the pilot areas shall be on a
  801  voluntary basis and in accordance with approved federal waivers
  802  and this section. The agency and its program contractors and
  803  providers shall not enroll any individual in the integrated
  804  program because the individual or the person legally responsible
  805  for the individual fails to choose to enroll in the integrated
  806  program. Enrollment in the integrated program shall be
  807  exclusively by affirmative choice of the eligible individual or
  808  by the person legally responsible for the individual. The
  809  integrated program must transfer all Medicaid services for
  810  eligible elderly individuals who choose to participate into an
  811  integrated-care management model designed to serve Medicaid
  812  recipients in the community. The integrated program must combine
  813  all funding for Medicaid services provided to individuals who
  814  are 60 years of age or older or dually eligible for Medicare and
  815  Medicaid into the integrated program, including funds for
  816  Medicaid home and community-based waiver services; all Medicaid
  817  services authorized in ss. 409.905 and 409.906, excluding funds
  818  for Medicaid nursing home services unless the agency is able to
  819  demonstrate how the integration of the funds will improve
  820  coordinated care for these services in a less costly manner; and
  821  Medicare coinsurance and deductibles for persons dually eligible
  822  for Medicaid and Medicare as prescribed in s. 409.908(13).
  823         (a)Individuals who are 60 years of age or older or dually
  824  eligible for Medicare and Medicaid and enrolled in the
  825  developmental disabilities waiver program, the family and
  826  supported-living waiver program, the project AIDS care waiver
  827  program, the traumatic brain injury and spinal cord injury
  828  waiver program, the consumer-directed care waiver program, and
  829  the program of all-inclusive care for the elderly program, and
  830  residents of institutional care facilities for the
  831  developmentally disabled, must be excluded from the integrated
  832  program.
  833         (b)Managed care entities who meet or exceed the agency’s
  834  minimum standards are eligible to operate the integrated
  835  program. Entities eligible to participate include managed care
  836  organizations licensed under chapter 641, including entities
  837  eligible to participate in the nursing home diversion program,
  838  other qualified providers as defined in s. 430.703(7), community
  839  care for the elderly lead agencies, and other state-certified
  840  community service networks that meet comparable standards as
  841  defined by the agency, in consultation with the Department of
  842  Elderly Affairs and the Office of Insurance Regulation, to be
  843  financially solvent and able to take on financial risk for
  844  managed care. Community service networks that are certified
  845  pursuant to the comparable standards defined by the agency are
  846  not required to be licensed under chapter 641. Managed care
  847  entities who operate the integrated program shall be subject to
  848  s. 408.7056. Eligible entities shall choose to serve enrollees
  849  who are dually eligible for Medicare and Medicaid, enrollees who
  850  are 60 years of age or older, or both.
  851         (c)The agency must ensure that the capitation-rate-setting
  852  methodology for the integrated program is actuarially sound and
  853  reflects the intent to provide quality care in the least
  854  restrictive setting. The agency must also require integrated
  855  program providers to develop a credentialing system for service
  856  providers and to contract with all Gold Seal nursing homes,
  857  where feasible, and exclude, where feasible, chronically poor
  858  performing facilities and providers as defined by the agency.
  859  The integrated program must develop and maintain an informal
  860  provider grievance system that addresses provider payment and
  861  contract problems. The agency shall also establish a formal
  862  grievance system to address those issues that were not resolved
  863  through the informal grievance system. The integrated program
  864  must provide that if the recipient resides in a noncontracted
  865  residential facility licensed under chapter 400 or chapter 429
  866  at the time of enrollment in the integrated program, the
  867  recipient must be permitted to continue to reside in the
  868  noncontracted facility as long as the recipient desires. The
  869  integrated program must also provide that, in the absence of a
  870  contract between the integrated-program provider and the
  871  residential facility licensed under chapter 400 or chapter 429,
  872  current Medicaid rates must prevail. The integrated-program
  873  provider must ensure that electronic nursing home claims that
  874  contain sufficient information for processing are paid within 10
  875  business days after receipt. Alternately, the integrated-program
  876  provider may establish a capitated payment mechanism to
  877  prospectively pay nursing homes at the beginning of each month.
  878  The agency and the Department of Elderly Affairs must jointly
  879  develop procedures to manage the services provided through the
  880  integrated program in order to ensure quality and recipient
  881  choice.
  882         (d)The Office of Program Policy Analysis and Government
  883  Accountability, in consultation with the Auditor General, shall
  884  comprehensively evaluate the pilot project for the integrated,
  885  fixed-payment delivery program for Medicaid recipients created
  886  under this subsection. The evaluation shall begin as soon as
  887  Medicaid recipients are enrolled in the managed care pilot
  888  program plans and shall continue for 24 months thereafter. The
  889  evaluation must include assessments of each managed care plan in
  890  the integrated program with regard to cost savings; consumer
  891  education, choice, and access to services; coordination of care;
  892  and quality of care. The evaluation must describe administrative
  893  or legal barriers to the implementation and operation of the
  894  pilot program and include recommendations regarding statewide
  895  expansion of the pilot program. The office shall submit its
  896  evaluation report to the Governor, the President of the Senate,
  897  and the Speaker of the House of Representatives no later than
  898  December 31, 2009.
  899         (e)The agency may seek federal waivers or Medicaid state
  900  plan amendments and adopt rules as necessary to administer the
  901  integrated program. The agency may implement the approved
  902  federal waivers and other provisions as specified in this
  903  subsection.
  904         (f)No later than December 31, 2007, the agency shall
  905  provide a report to the Governor, the President of the Senate,
  906  and the Speaker of the House of Representatives containing an
  907  analysis of the merits and challenges of seeking a waiver to
  908  implement a voluntary program that integrates payments and
  909  services for dually enrolled Medicare and Medicaid recipients
  910  who are 65 years of age or older.
  911         (20)(21) Any entity contracting with the agency pursuant to
  912  this section to provide health care services to Medicaid
  913  recipients is prohibited from engaging in any of the following
  914  practices or activities:
  915         (c) Granting or offering of any monetary or other valuable
  916  consideration for enrollment, except as authorized by subsection
  917  (23) (24).
  918         (28)(29) The agency shall perform enrollments and
  919  disenrollments for Medicaid recipients who are eligible for
  920  MediPass or managed care plans. Notwithstanding the prohibition
  921  contained in paragraph (20)(f) (21)(f), managed care plans may
  922  perform preenrollments of Medicaid recipients under the
  923  supervision of the agency or its agents. For the purposes of
  924  this section, “preenrollment” means the provision of marketing
  925  and educational materials to a Medicaid recipient and assistance
  926  in completing the application forms, but does shall not include
  927  actual enrollment into a managed care plan. An application for
  928  enrollment is shall not be deemed complete until the agency or
  929  its agent verifies that the recipient made an informed,
  930  voluntary choice. The agency, in cooperation with the Department
  931  of Children and Family Services, may test new marketing
  932  initiatives to inform Medicaid recipients about their managed
  933  care options at selected sites. The agency shall report to the
  934  Legislature on the effectiveness of such initiatives. The agency
  935  may contract with a third party to perform managed care plan and
  936  MediPass enrollment and disenrollment services for Medicaid
  937  recipients and may is authorized to adopt rules to implement
  938  such services. The agency may adjust the capitation rate only to
  939  cover the costs of a third-party enrollment and disenrollment
  940  contract, and for agency supervision and management of the
  941  managed care plan enrollment and disenrollment contract.
  942         Section 16. Paragraphs (e), (l), (p), and (w) of subsection
  943  (3) and subsection (12) of section 409.91211, Florida Statutes,
  944  are amended to read:
  945         409.91211 Medicaid managed care pilot program.—
  946         (3) The agency shall have the following powers, duties, and
  947  responsibilities with respect to the pilot program:
  948         (e) To implement policies and guidelines for phasing in
  949  financial risk for approved provider service networks over a 5-
  950  year 3-year period. These policies and guidelines must include
  951  an option for a provider service network to be paid fee-for
  952  service rates. For any provider service network established in a
  953  managed care pilot area, the option to be paid fee-for-service
  954  rates must shall include a savings-settlement mechanism that is
  955  consistent with s. 409.912(44). This model must shall be
  956  converted to a risk-adjusted capitated rate by no later than the
  957  beginning of the sixth fourth year of operation, and may be
  958  converted earlier at the option of the provider service network.
  959  Federally qualified health centers may be offered an opportunity
  960  to accept or decline a contract to participate in any provider
  961  network for prepaid primary care services.
  962         (l) To implement a system that prohibits capitated managed
  963  care plans, their representatives, and providers employed by or
  964  contracted with the capitated managed care plans from recruiting
  965  persons eligible for or enrolled in Medicaid, from providing
  966  inducements to Medicaid recipients to select a particular
  967  capitated managed care plan, and from prejudicing Medicaid
  968  recipients against other capitated managed care plans. The
  969  system must shall require the entity performing choice
  970  counseling to determine if the recipient has made a choice of a
  971  plan or has opted out because of duress, threats, payment to the
  972  recipient, or incentives promised to the recipient by a third
  973  party. If the choice counseling entity determines that the
  974  decision to choose a plan was unlawfully influenced or a plan
  975  violated any of the provisions of s. 409.912(20) s. 409.912(21),
  976  the choice counseling entity shall immediately report the
  977  violation to the agency’s program integrity section for
  978  investigation. Verification of choice counseling by the
  979  recipient must shall include a stipulation that the recipient
  980  acknowledges the provisions of this subsection.
  981         (p) To implement standards for plan compliance, including,
  982  but not limited to, standards for quality assurance and
  983  performance improvement, standards for peer or professional
  984  reviews, grievance policies, and policies for maintaining
  985  program integrity. The agency shall develop a data-reporting
  986  system, seek input from managed care plans in order to establish
  987  requirements for patient-encounter reporting, and ensure that
  988  the data reported is accurate and complete.
  989         1. In performing the duties required under this section,
  990  the agency shall work with managed care plans to establish a
  991  uniform system to measure and monitor outcomes for a recipient
  992  of Medicaid services.
  993         2. The system must shall use financial, clinical, and other
  994  criteria based on pharmacy, medical services, and other data
  995  that is related to the provision of Medicaid services,
  996  including, but not limited to:
  997         a. The Health Plan Employer Data and Information Set
  998  (HEDIS) or measures that are similar to HEDIS.
  999         b. Member satisfaction.
 1000         c. Provider satisfaction.
 1001         d. Report cards on plan performance and best practices.
 1002         e. Compliance with the requirements for prompt payment of
 1003  claims under ss. 627.613, 641.3155, and 641.513.
 1004         f. Utilization and quality data for the purpose of ensuring
 1005  access to medically necessary services, including
 1006  underutilization or inappropriate denial of services.
 1007         3. The agency shall require the managed care plans that
 1008  have contracted with the agency to establish a quality assurance
 1009  system that incorporates the provisions of s. 409.912(26) s.
 1010  409.912(27) and any standards, rules, and guidelines developed
 1011  by the agency.
 1012         4. The agency shall establish an encounter database in
 1013  order to compile data on health services rendered by health care
 1014  practitioners who provide services to patients enrolled in
 1015  managed care plans in the demonstration sites. The encounter
 1016  database shall:
 1017         a. Collect the following for each type of patient encounter
 1018  with a health care practitioner or facility, including:
 1019         (I) The demographic characteristics of the patient.
 1020         (II) The principal, secondary, and tertiary diagnosis.
 1021         (III) The procedure performed.
 1022         (IV) The date and location where the procedure was
 1023  performed.
 1024         (V) The payment for the procedure, if any.
 1025         (VI) If applicable, the health care practitioner’s
 1026  universal identification number.
 1027         (VII) If the health care practitioner rendering the service
 1028  is a dependent practitioner, the modifiers appropriate to
 1029  indicate that the service was delivered by the dependent
 1030  practitioner.
 1031         b. Collect appropriate information relating to prescription
 1032  drugs for each type of patient encounter.
 1033         c. Collect appropriate information related to health care
 1034  costs and utilization from managed care plans participating in
 1035  the demonstration sites.
 1036         5. If To the extent practicable, when collecting the data
 1037  the agency shall use a standardized claim form or electronic
 1038  transfer system that is used by health care practitioners,
 1039  facilities, and payors.
 1040         6. Health care practitioners and facilities in the
 1041  demonstration sites shall electronically submit, and managed
 1042  care plans participating in the demonstration sites shall
 1043  electronically receive, information concerning claims payments
 1044  and any other information reasonably related to the encounter
 1045  database using a standard format as required by the agency.
 1046         7. The agency shall establish reasonable deadlines for
 1047  phasing in the electronic transmittal of full encounter data.
 1048         8. The system must ensure that the data reported is
 1049  accurate and complete.
 1050         (w) To implement procedures to minimize the risk of
 1051  Medicaid fraud and abuse in all plans operating in the Medicaid
 1052  managed care pilot program authorized in this section.
 1053         1. The agency shall ensure that applicable provisions of
 1054  this chapter and chapters 414, 626, 641, and 932 which relate to
 1055  Medicaid fraud and abuse are applied and enforced at the
 1056  demonstration project sites.
 1057         2. Providers must have the certification, license, and
 1058  credentials that are required by law and waiver requirements.
 1059         3. The agency shall ensure that the plan is in compliance
 1060  with s. 409.912(20) and (21) s. 409.912(21) and (22).
 1061         4. The agency shall require that each plan establish
 1062  functions and activities governing program integrity in order to
 1063  reduce the incidence of fraud and abuse. Plans must report
 1064  instances of fraud and abuse pursuant to chapter 641.
 1065         5. The plan must shall have written administrative and
 1066  management arrangements or procedures, including a mandatory
 1067  compliance plan, which are designed to guard against fraud and
 1068  abuse. The plan shall designate a compliance officer who has
 1069  sufficient experience in health care.
 1070         6.a. The agency shall require all managed care plan
 1071  contractors in the pilot program to report all instances of
 1072  suspected fraud and abuse. A failure to report instances of
 1073  suspected fraud and abuse is a violation of law and subject to
 1074  the penalties provided by law.
 1075         b. An instance of fraud and abuse in the managed care plan,
 1076  including, but not limited to, defrauding the state health care
 1077  benefit program by misrepresentation of fact in reports, claims,
 1078  certifications, enrollment claims, demographic statistics, or
 1079  patient-encounter data; misrepresentation of the qualifications
 1080  of persons rendering health care and ancillary services; bribery
 1081  and false statements relating to the delivery of health care;
 1082  unfair and deceptive marketing practices; and false claims
 1083  actions in the provision of managed care, is a violation of law
 1084  and subject to the penalties provided by law.
 1085         c. The agency shall require that all contractors make all
 1086  files and relevant billing and claims data accessible to state
 1087  regulators and investigators and that all such data is linked
 1088  into a unified system to ensure consistent reviews and
 1089  investigations.
 1090         (12) For purposes of this section, the term “capitated
 1091  managed care plan” includes health insurers authorized under
 1092  chapter 624, exclusive provider organizations authorized under
 1093  chapter 627, health maintenance organizations authorized under
 1094  chapter 641, the Children’s Medical Services Network under
 1095  chapter 391, and provider service networks that elect to be paid
 1096  fee-for-service for up to 5 3 years as authorized under this
 1097  section.
 1098         Section 17. Subsection (18) is added to section 430.04,
 1099  Florida Statutes, to read:
 1100         430.04 Duties and responsibilities of the Department of
 1101  Elderly Affairs.—The Department of Elderly Affairs shall:
 1102         (18)Administer all Medicaid waivers and programs relating
 1103  to elders and their appropriations. The waivers include, but are
 1104  not limited to:
 1105         (a)The Alzheimer’s Dementia-Specific Medicaid Waiver as
 1106  established in s. 430.502(7), (8), and (9).
 1107         (b)The Assisted Living for the Frail Elderly Waiver.
 1108         (c)The Aged and Disabled Adult Waiver.
 1109         (d)The Adult Day Health Care Waiver.
 1110         (e)The Consumer Directed Care Plus Program as defined in
 1111  s. 409.221.
 1112         (f)The Program for All-inclusive Care for the Elderly.
 1113         (g)The Long-Term Care Community-Based Diversion Pilot
 1114  Project as described in s. 430.705.
 1115         (h)The Channeling Services Waiver for Frail Elders.
 1116         Section 18. Subsection (4) of section 641.386, Florida
 1117  Statutes, is amended to read:
 1118         641.386 Agent licensing and appointment required;
 1119  exceptions.—
 1120         (4) All agents and health maintenance organizations must
 1121  shall comply with and be subject to the applicable provisions of
 1122  ss. 641.309 and 409.912(20) 409.912(21), and all companies and
 1123  entities appointing agents must shall comply with s. 626.451,
 1124  when marketing for any health maintenance organization licensed
 1125  pursuant to this part, including those organizations under
 1126  contract with the Agency for Health Care Administration to
 1127  provide health care services to Medicaid recipients or any
 1128  private entity providing health care services to Medicaid
 1129  recipients pursuant to a prepaid health plan contract with the
 1130  Agency for Health Care Administration.
 1131         Section 19. The Agency for Health Care Administration shall
 1132  develop and implement a home health agency monitoring pilot
 1133  project in Miami-Dade County by January 1, 2010. The agency
 1134  shall contract with a vendor to verify the utilization and the
 1135  delivery of home health services and provide an electronic
 1136  billing interface for such services. The contract must require
 1137  the creation of a program to submit claims for the home health
 1138  services electronically. The program must verify visits for the
 1139  delivery of home health services telephonically using voice
 1140  biometrics. The agency may seek amendments to the Medicaid state
 1141  plan and waivers of federal laws, as necessary, to implement the
 1142  pilot project. Notwithstanding s. 287.057(5)(f), Florida
 1143  Statutes, the agency must award the contract through the
 1144  competitive solicitation process. The agency shall submit a
 1145  report to the Governor, the President of the Senate, and the
 1146  Speaker of the House of Representatives evaluating the pilot
 1147  project by February 1, 2011.
 1148         Section 20. The Agency for Health Care Administration shall
 1149  implement a comprehensive care management pilot project in
 1150  Miami-Dade County for home health services by January 1, 2010,
 1151  which includes face-to-face assessments by a state-licensed
 1152  nurse, consultation with physicians ordering services to
 1153  substantiate the medical necessity for services, and on-site or
 1154  desk reviews of recipients’ medical records. The agency may
 1155  enter into a contract with a qualified organization to implement
 1156  the pilot project. The agency may seek amendments to the
 1157  Medicaid state plan and waivers of federal laws, as necessary,
 1158  to implement the pilot project.
 1159         Section 21. This act shall take effect upon becoming a law.