Amendment
Bill No. CS/SB 1658
Amendment No. 892035
CHAMBER ACTION
Senate House
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1Representative Ambler offered the following:
2
3     Amendment (with title amendment)
4     Remove everything after the enacting clause and insert:
5     Section 1.  Paragraph (c) is added to subsection (8) of
6section 409.814, Florida Statutes, to read:
7     409.814  Eligibility.--A child who has not reached 19 years
8of age whose family income is equal to or below 200 percent of
9the federal poverty level is eligible for the Florida Kidcare
10program as provided in this section. For enrollment in the
11Children's Medical Services Network, a complete application
12includes the medical or behavioral health screening. If,
13subsequently, an individual is determined to be ineligible for
14coverage, he or she must immediately be disenrolled from the
15respective Florida Kidcare program component.
16     (8)  In determining the eligibility of a child, an assets
17test is not required. Each applicant shall provide written
18documentation during the application process and the
19redetermination process, including, but not limited to, the
20following:
21     (a)  Proof of family income, which must include a copy of
22the applicant's most recent federal income tax return. In the
23absence of a federal income tax return, an applicant may submit
24wages and earnings statements (pay stubs), W-2 forms, or other
25appropriate documents.
26     (b)  A statement from all family members that:
27     1.  Their employer does not sponsor a health benefit plan
28for employees; or
29     2.  The potential enrollee is not covered by the employer-
30sponsored health benefit plan because the potential enrollee is
31not eligible for coverage, or, if the potential enrollee is
32eligible but not covered, a statement of the cost to enroll the
33potential enrollee in the employer-sponsored health benefit
34plan.
35     (c)  Effective no later than January 1, 2010, verification
36of the potential enrollee's or enrollee's citizenship status to
37the extent required under Title XXI of the Social Security Act.
38     Section 2.  Paragraphs (g) and (q) of subsection (2) of
39section 409.815, Florida Statutes, are amended, and paragraph
40(w) is added to that subsection, to read:
41     409.815  Health benefits coverage; limitations.--
42     (2)  BENCHMARK BENEFITS.--In order for health benefits
43coverage to qualify for premium assistance payments for an
44eligible child under ss. 409.810-409.820, the health benefits
45coverage, except for coverage under Medicaid and Medikids, must
46include the following minimum benefits, as medically necessary.
47     (g)  Behavioral health services.--
48     1.  Mental health benefits include:
49     a.  Inpatient services, limited to not more than 30
50inpatient days per contract year for psychiatric admissions, or
51residential services in facilities licensed under s. 394.875(6)
52or s. 395.003 in lieu of inpatient psychiatric admissions;
53however, a minimum of 10 of the 30 days shall be available only
54for inpatient psychiatric services when authorized by a
55physician; and
56     b.  Outpatient services, including outpatient visits for
57psychological or psychiatric evaluation, diagnosis, and
58treatment by a licensed mental health professional, limited to a
59maximum of 40 outpatient visits each contract year.
60     2.  Substance abuse services include:
61     a.  Inpatient services, limited to not more than 7
62inpatient days per contract year for medical detoxification only
63and 30 days of residential services; and
64     b.  Outpatient services, including evaluation, diagnosis,
65and treatment by a licensed practitioner, limited to a maximum
66of 40 outpatient visits per contract year.
67     3.  Effective October 1, 2009, covered services include
68inpatient and outpatient services for mental and nervous
69disorders as defined in the most recent edition of the
70Diagnostic and Statistical Manual of Mental Disorders published
71by the American Psychiatric Association. Such benefits include
72psychological or psychiatric evaluation, diagnosis, and
73treatment by a licensed mental health professional and
74inpatient, outpatient, and residential treatment services for
75the diagnosis and treatment of substance abuse disorders. Any
76benefit limitations, including duration of services, number of
77visits, or number of days for hospitalization or residential
78services may not be any less favorable than those for physical
79illnesses generally for the care and treatment of schizophrenia
80and psychotic disorders, mood disorders, anxiety disorders,
81substance abuse disorders, eating disorders, and childhood
82attention deficit disorders. The program may also implement
83appropriate financial incentives, peer review, utilization
84requirements, and other methods used for the management of
85benefits provided for other medical conditions in order to
86reduce service costs and utilization without compromising
87quality of care.
88     (q)  Dental services.--Effective October 1, 2009, dental
89services shall be covered as required under federal law and may
90also include those dental benefits provided to children by the
91Florida Medicaid program under s. 409.906(6). Changes to the
92dental benefit in order to comply with federal law are effective
93October 1, 2009.
94     (w)  Reimbursement of federally qualified health centers
95and rural health clinics.--Effective October 1, 2009, payments
96for services provided to enrollees by federally qualified health
97centers and rural health clinics under this section shall be
98reimbursed using the Medicaid Prospective Payment System as
99provided for under s. 2107(e)(1)(D) of the Social Security Act,
10042 U.S.C. s. 1397gg(e)(1)(D), as added by Pub. L. No 105-33,
101Title IV, s. 4901(a). If such services are paid for by health
102insurers or health care providers under contract with the
103Florida Healthy Kids Corporation, such entities are responsible
104for this payment. The agency may seek any available federal
105grants to assist with this transition.
106     Section 3.  Paragraph (c) of subsection (3) of section
107409.818, Florida Statutes, is amended to read:
108     409.818  Administration.--In order to implement ss.
109409.810-409.820, the following agencies shall have the following
110duties:
111     (3)  The Agency for Health Care Administration, under the
112authority granted in s. 409.914(1), shall:
113     (c)  Monitor compliance with quality assurance and access
114standards developed under s. 409.820 and in accordance with s.
1152103(f) of the Social Security Act, 42 U.S.C. s. 1397cc(f).
116
117The agency is designated the lead state agency for Title XXI of
118the Social Security Act for purposes of receipt of federal
119funds, for reporting purposes, and for ensuring compliance with
120federal and state regulations and rules.
121     Section 4.  Subsections (1) and (2) of section 409.904,
122Florida Statutes, are amended to read:
123     409.904  Optional payments for eligible persons.--The
124agency may make payments for medical assistance and related
125services on behalf of the following persons who are determined
126to be eligible subject to the income, assets, and categorical
127eligibility tests set forth in federal and state law. Payment on
128behalf of these Medicaid eligible persons is subject to the
129availability of moneys and any limitations established by the
130General Appropriations Act or chapter 216.
131     (1)  Effective January 1, 2006, and subject to federal
132waiver approval, a person who is age 65 or older or is
133determined to be disabled, whose income is at or below 88
134percent of the federal poverty level, whose assets do not exceed
135established limitations, and who is not eligible for Medicare
136or, if eligible for Medicare, is also eligible for and receiving
137Medicaid-covered institutional care services, hospice services,
138or home and community-based services. The agency shall seek
139federal authorization through a waiver to provide this coverage.
140This subsection expires June 30, 2010 2009.
141     (2)(a)  A family, a pregnant woman, a child under age 21, a
142person age 65 or over, or a blind or disabled person, who would
143be eligible under any group listed in s. 409.903(1), (2), or
144(3), except that the income or assets of such family or person
145exceed established limitations. For a family or person in one of
146these coverage groups, medical expenses are deductible from
147income in accordance with federal requirements in order to make
148a determination of eligibility. A family or person eligible
149under the coverage known as the "medically needy," is eligible
150to receive the same services as other Medicaid recipients, with
151the exception of services in skilled nursing facilities and
152intermediate care facilities for the developmentally disabled.
153This paragraph subsection expires June 30, 2010 2009.
154     (b)  Effective July 1, 2010 2009, a pregnant woman or a
155child younger than 21 years of age who would be eligible under
156any group listed in s. 409.903, except that the income or assets
157of such group exceed established limitations. For a person in
158one of these coverage groups, medical expenses are deductible
159from income in accordance with federal requirements in order to
160make a determination of eligibility. A person eligible under the
161coverage known as the "medically needy" is eligible to receive
162the same services as other Medicaid recipients, with the
163exception of services in skilled nursing facilities and
164intermediate care facilities for the developmentally disabled.
165     Section 5.  Subsection (4) and paragraph (c) of subsection
166(5) of section 409.905, Florida Statutes, are amended to read:
167     409.905  Mandatory Medicaid services.--The agency may make
168payments for the following services, which are required of the
169state by Title XIX of the Social Security Act, furnished by
170Medicaid providers to recipients who are determined to be
171eligible on the dates on which the services were provided. Any
172service under this section shall be provided only when medically
173necessary and in accordance with state and federal law.
174Mandatory services rendered by providers in mobile units to
175Medicaid recipients may be restricted by the agency. Nothing in
176this section shall be construed to prevent or limit the agency
177from adjusting fees, reimbursement rates, lengths of stay,
178number of visits, number of services, or any other adjustments
179necessary to comply with the availability of moneys and any
180limitations or directions provided for in the General
181Appropriations Act or chapter 216.
182     (4)  HOME HEALTH CARE SERVICES.--The agency shall pay for
183nursing and home health aide services, supplies, appliances, and
184durable medical equipment, necessary to assist a recipient
185living at home. An entity that provides services pursuant to
186this subsection shall be licensed under part III of chapter 400.
187These services, equipment, and supplies, or reimbursement
188therefor, may be limited as provided in the General
189Appropriations Act and do not include services, equipment, or
190supplies provided to a person residing in a hospital or nursing
191facility.
192     (a)  In providing home health care services, the agency may
193require prior authorization of care based on diagnosis or
194utilization rates. Prior authorization is required for home
195health services visits not associated with a skilled nursing
196visit if the home health agency's utilization rates exceed the
197state average by 50 percent or more. The home health agency must
198submit documentation that supports the recipient's diagnosis and
199the recipient's plan of care to the agency when requesting prior
200authorization.
201     (b)  The agency shall implement a comprehensive utilization
202management program that requires prior authorization of all
203private duty nursing services, an individualized treatment plan
204that includes information about medication and treatment orders,
205treatment goals, methods of care to be used, and plans for care
206coordination by nurses and other health professionals. The
207utilization management program shall also include a process for
208periodically reviewing the ongoing use of private duty nursing
209services. For a child, the assessment of need shall be based on
210a child's condition, family support and care supplements, a
211family's ability to provide care, and a family's and child's
212schedule regarding work, school, sleep, and care for other
213family dependents. When implemented, the private duty nursing
214utilization management program shall replace the current
215authorization program used by the Agency for Health Care
216Administration and the Children's Medical Services program of
217the Department of Health. The agency may competitively bid on a
218contract to select a qualified organization to provide
219utilization management of private duty nursing services. The
220agency is authorized to seek federal waivers to implement this
221initiative.
222     (c)  The agency may provide reimbursement only for those
223home health services that are medically necessary and if:
224     1.  The services are ordered by a physician.
225     2.  The written prescription for services is signed and
226dated by the recipient's physician before the development of a
227plan of care and before any required request for prior
228authorization.
229     3.  The physician ordering the services is not employed,
230under contract with, or otherwise affiliated with the home
231health agency rendering the services. However, this provision
232does not apply to a home health agency affiliated with a
233retirement community, of which the parent corporation or a
234related legal entity owns a rural health clinic certified under
23542 C.F.R., part 491, subpart A, ss. 1-11, a nursing home
236licensed under part II of chapter 400, and apartments and
237single-family homes for independent living.
238     4.  The physician ordering the services has examined the
239recipient within 30 days before the initial request for services
240and biannually thereafter.
241     5.  The written prescription for the services includes the
242recipient's acute or chronic medical condition or diagnosis; the
243home health service required, including the minimum skill level
244required to perform the service; and the frequency and duration
245of the services.
246     6.  The national provider identifier, Medicaid
247identification number, or professional license number of the
248physician ordering the services is listed on the written
249prescription for the services, the claim for home health
250reimbursement, and the prior authorization request.
251     (5)  HOSPITAL INPATIENT SERVICES.--The agency shall pay for
252all covered services provided for the medical care and treatment
253of a recipient who is admitted as an inpatient by a licensed
254physician or dentist to a hospital licensed under part I of
255chapter 395. However, the agency shall limit the payment for
256inpatient hospital services for a Medicaid recipient 21 years of
257age or older to 45 days or the number of days necessary to
258comply with the General Appropriations Act.
259     (c)  The Agency for Health Care Administration shall adjust
260a hospital's current inpatient per diem rate to reflect the cost
261of serving the Medicaid population at that institution if:
262     1.  The hospital experiences an increase in Medicaid
263caseload by more than 25 percent in any year, primarily
264resulting from the closure of a hospital in the same service
265area occurring after July 1, 1995;
266     2.  The hospital's Medicaid per diem rate is at least 25
267percent below the Medicaid per patient cost for that year; or
268     3.  The hospital is located in a county that has six five
269or fewer acute care bed hospitals, began offering obstetrical
270services on or after September 1999, and has submitted a request
271in writing to the agency for a rate adjustment after July 1,
2722000, but before September 30, 2000, in which case such
273hospital's Medicaid inpatient per diem rate shall be adjusted to
274cost, effective July 1, 2002.
275
276No later than October 1 of each year, the agency must provide
277estimated costs for any adjustment in a hospital inpatient per
278diem pursuant to this paragraph to the Executive Office of the
279Governor, the House of Representatives General Appropriations
280Committee, and the Senate Appropriations Committee. Before the
281agency implements a change in a hospital's inpatient per diem
282rate pursuant to this paragraph, the Legislature must have
283specifically appropriated sufficient funds in the General
284Appropriations Act to support the increase in cost as estimated
285by the agency.
286     Section 6.  Subsection (23) of section 409.906, Florida
287Statutes, is amended to read:
288     409.906  Optional Medicaid services.--Subject to specific
289appropriations, the agency may make payments for services which
290are optional to the state under Title XIX of the Social Security
291Act and are furnished by Medicaid providers to recipients who
292are determined to be eligible on the dates on which the services
293were provided. Any optional service that is provided shall be
294provided only when medically necessary and in accordance with
295state and federal law. Optional services rendered by providers
296in mobile units to Medicaid recipients may be restricted or
297prohibited by the agency. Nothing in this section shall be
298construed to prevent or limit the agency from adjusting fees,
299reimbursement rates, lengths of stay, number of visits, or
300number of services, or making any other adjustments necessary to
301comply with the availability of moneys and any limitations or
302directions provided for in the General Appropriations Act or
303chapter 216. If necessary to safeguard the state's systems of
304providing services to elderly and disabled persons and subject
305to the notice and review provisions of s. 216.177, the Governor
306may direct the Agency for Health Care Administration to amend
307the Medicaid state plan to delete the optional Medicaid service
308known as "Intermediate Care Facilities for the Developmentally
309Disabled." Optional services may include:
310     (23)  VISUAL SERVICES.--The agency may pay for visual
311examinations, eyeglasses, and eyeglass repairs for a recipient
312if they are prescribed by a licensed physician specializing in
313diseases of the eye or by a licensed optometrist. Eyeglass
314frames Eyeglasses for adult recipients shall be limited to one
315pair two pairs per year per recipient every 2 years, except a
316second third pair may be provided during that period after prior
317authorization. Eyeglass lenses for adult recipients shall be
318limited to one pair per year and may only be provided after
319prior authorization.
320     Section 7.  Subsection (6) of section 409.9082, Florida
321Statutes, as created by chapter 2009-4, Laws of Florida, is
322amended, and paragraph (d) is added to subsection (3) of that
323section, to read:
324     409.9082  Quality assessment on nursing home facility
325providers; exemptions; purpose; federal approval required;
326remedies.--
327     (3)
328     (d)  The agency may exempt a qualified public nursing
329facility that is not owned or operated by the state from the
330quality assessment or apply a lower quality assessment rate to
331that facility if the facility's total annual census days for
332indigent care exceed 25 percent of the facility's total annual
333census days.
334     (6)  The quality assessment shall terminate and the agency
335shall discontinue the imposition, assessment, and collection of
336the nursing facility quality assessment if any of the following
337occur:
338     (a)  the agency does not obtain necessary federal approval
339for the nursing home facility quality assessment or the payment
340rates required by subsection (4); or
341     (b)  The weighted average Medicaid rate paid to nursing
342home facilities is reduced below the weighted average Medicaid
343rate to nursing home facilities in effect on December 31, 2008,
344plus any future annual amount of the quality assessment and the
345applicable matching federal funds.
346
347Upon termination of the quality assessment, all collected
348assessment revenues, less any amounts expended by the agency,
349shall be returned on a pro rata basis to the nursing facilities
350that paid them.
351     Section 8.  Section 409.9083, Florida Statutes, is created
352to read:
353     409.9083  Quality assessment on privately operated
354intermediate care facilities for the developmentally disabled;
355exemptions; purpose; federal approval required; remedies.--
356     (1)  As used in this section, the term:
357     (a)  "Intermediate care facility for the developmentally
358disabled" or "ICF/DD" means a privately operated intermediate
359care facility for the developmentally disabled licensed under
360part VIII of chapter 400.
361     (b)  "Net patient service revenue" means gross revenues
362from services provided to ICF/DD facility residents, less
363reductions from gross revenue resulting from an inability to
364collect payment of charges. Net patient service revenue excludes
365nonresident care revenues such as gain or loss on asset
366disposal, prior year revenue, donations, and physician billings,
367and all outpatient revenues. Reductions from gross revenue
368include bad debts; contractual adjustments; uncompensated care;
369administrative, courtesy, and policy discounts and adjustments;
370and other such revenue deductions.
371     (c)  "Resident day" means a calendar day of care provided
372to an ICF/DD facility resident, including the day of admission
373and excluding the day of discharge, except that, when admission
374and discharge occur on the same day, 1 day of care exists.
375     (2)  Effective October 1, 2009, there is imposed upon each
376intermediate care facility for the developmentally disabled a
377quality assessment. The aggregated amount of assessments for all
378ICF/DDs in a given year shall be an amount not exceeding the
379maximum percentage allowed under federal law of the total
380aggregate net patient service revenue of assessed facilities.
381The agency shall calculate the quality assessment rate annually
382on a per-resident-day basis as reported by the facilities. The
383per-resident-day assessment rate shall be uniform. Each facility
384shall report monthly to the agency its total number of resident
385days and shall remit an amount equal to the assessment rate
386times the reported number of days. The agency shall collect, and
387each facility shall pay, the quality assessment each month. The
388agency shall collect the assessment from facility providers no
389later than the 15th of the next succeeding calendar month. The
390agency shall notify providers of the quality assessment rate and
391provide a standardized form to complete and submit with
392payments. The collection of the quality assessment shall
393commence no sooner than 15 days after the agency's initial
394payment to the facilities that implement the increased Medicaid
395rates containing the elements prescribed in subsection (3) and
396monthly thereafter. Intermediate care facilities for the
397developmentally disabled may increase their rates to incorporate
398the assessment but may not create a separate line-item charge
399for the purpose of passing through the assessment to residents.
400     (3)  The purpose of the facility quality assessment is to
401ensure continued quality of care. Collected assessment funds
402shall be used to obtain federal financial participation through
403the Medicaid program to make Medicaid payments for ICF/DD
404services up to the amount of the Medicaid rates for such
405facilities as calculated in accordance with the approved state
406Medicaid plan in effect on April 1, 2008. The quality assessment
407and federal matching funds shall be used exclusively for the
408following purposes and in the following order of priority:
409     (a)  To reimburse the Medicaid share of the quality
410assessment as a pass-through, Medicaid-allowable cost.
411     (b)  To increase each privately operated ICF/DD Medicaid
412rate, as needed, by an amount that restores the rate reductions
413implemented on October 1, 2008.
414     (c)  To increase each ICF/DD Medicaid rate, as needed, by
415an amount that restores any rate reductions for the 2008-2009
416fiscal year.
417     (d)  To increase payments to such facilities to fund
418covered services to Medicaid beneficiaries.
419     (4)  The agency shall seek necessary federal approval in
420the form of state plan amendments in order to implement the
421provisions of this section.
422     (5)(a)  The quality assessment shall terminate and the
423agency shall discontinue the imposition, assessment, and
424collection of the quality assessment if the agency does not
425obtain necessary federal approval for the facility quality
426assessment or the payment rates required by subsection (3).
427     (b)  Upon termination of the quality assessment, all
428collected assessment revenues, less any amounts expended by the
429agency, shall be returned on a pro rata basis to the facilities
430that paid such assessments.
431     (6)  The agency may seek any of the following remedies for
432failure of any ICF/DD provider to timely pay its assessment:
433     (a)  Withholding any medical assistance reimbursement
434payments until the assessment amount is recovered.
435     (b)  Suspending or revoking the facility's license.
436     (c)  Imposing a fine of up to $1,000 per day for each
437delinquent payment, not to exceed the amount of the assessment.
438     (7)  The agency shall adopt rules necessary to administer
439this section.
440     (8)  This section is repealed October 1, 2011.
441     Section 9.  Paragraph (a) of subsection (2) of section
442409.911, Florida Statutes, is amended to read:
443     409.911  Disproportionate share program.--Subject to
444specific allocations established within the General
445Appropriations Act and any limitations established pursuant to
446chapter 216, the agency shall distribute, pursuant to this
447section, moneys to hospitals providing a disproportionate share
448of Medicaid or charity care services by making quarterly
449Medicaid payments as required. Notwithstanding the provisions of
450s. 409.915, counties are exempt from contributing toward the
451cost of this special reimbursement for hospitals serving a
452disproportionate share of low-income patients.
453     (2)  The Agency for Health Care Administration shall use
454the following actual audited data to determine the Medicaid days
455and charity care to be used in calculating the disproportionate
456share payment:
457     (a)  The average of the 2003, 2004, and 2005 2002, 2003,
458and 2004 audited disproportionate share data to determine each
459hospital's Medicaid days and charity care for the 2009-2010
4602008-2009 state fiscal year.
461     Section 10.  Section 409.9112, Florida Statutes, is amended
462to read:
463     409.9112  Disproportionate share program for regional
464perinatal intensive care centers.--
465     (1)  In addition to the payments made under s. 409.911, the
466Agency for Health Care Administration shall design and implement
467a system of making disproportionate share payments to those
468hospitals that participate in the regional perinatal intensive
469care center program established pursuant to chapter 383. This
470system of payments shall conform with federal requirements and
471shall distribute funds in each fiscal year for which an
472appropriation is made by making quarterly Medicaid payments.
473Notwithstanding the provisions of s. 409.915, counties are
474exempt from contributing toward the cost of this special
475reimbursement for hospitals serving a disproportionate share of
476low-income patients. For the state fiscal year 2009-2010 2008-
4772009, the agency shall not distribute moneys under the regional
478perinatal intensive care centers disproportionate share program.
479     (2)(1)  The following formula shall be used by the agency
480to calculate the total amount earned for hospitals that
481participate in the regional perinatal intensive care center
482program:
483
484TAE = HDSP/THDSP
485
486Where:
487     TAE = total amount earned by a regional perinatal intensive
488care center.
489     HDSP = the prior state fiscal year regional perinatal
490intensive care center disproportionate share payment to the
491individual hospital.
492     THDSP = the prior state fiscal year total regional
493perinatal intensive care center disproportionate share payments
494to all hospitals.
495     (3)(2)  The total additional payment for hospitals that
496participate in the regional perinatal intensive care center
497program shall be calculated by the agency as follows:
498
499TAP = TAE x TA
500
501Where:
502     TAP = total additional payment for a regional perinatal
503intensive care center.
504     TAE = total amount earned by a regional perinatal intensive
505care center.
506     TA = total appropriation for the regional perinatal
507intensive care center disproportionate share program.
508     (4)(3)  In order to receive payments under this section, a
509hospital must be participating in the regional perinatal
510intensive care center program pursuant to chapter 383 and must
511meet the following additional requirements:
512     (a)  Agree to conform to all departmental and agency
513requirements to ensure high quality in the provision of
514services, including criteria adopted by departmental and agency
515rule concerning staffing ratios, medical records, standards of
516care, equipment, space, and such other standards and criteria as
517the department and agency deem appropriate as specified by rule.
518     (b)  Agree to provide information to the department and
519agency, in a form and manner to be prescribed by rule of the
520department and agency, concerning the care provided to all
521patients in neonatal intensive care centers and high-risk
522maternity care.
523     (c)  Agree to accept all patients for neonatal intensive
524care and high-risk maternity care, regardless of ability to pay,
525on a functional space-available basis.
526     (d)  Agree to develop arrangements with other maternity and
527neonatal care providers in the hospital's region for the
528appropriate receipt and transfer of patients in need of
529specialized maternity and neonatal intensive care services.
530     (e)  Agree to establish and provide a developmental
531evaluation and services program for certain high-risk neonates,
532as prescribed and defined by rule of the department.
533     (f)  Agree to sponsor a program of continuing education in
534perinatal care for health care professionals within the region
535of the hospital, as specified by rule.
536     (g)  Agree to provide backup and referral services to the
537department's county health departments and other low-income
538perinatal providers within the hospital's region, including the
539development of written agreements between these organizations
540and the hospital.
541     (h)  Agree to arrange for transportation for high-risk
542obstetrical patients and neonates in need of transfer from the
543community to the hospital or from the hospital to another more
544appropriate facility.
545     (5)(4)  Hospitals which fail to comply with any of the
546conditions in subsection (4) (3) or the applicable rules of the
547department and agency shall not receive any payments under this
548section until full compliance is achieved. A hospital which is
549not in compliance in two or more consecutive quarters shall not
550receive its share of the funds. Any forfeited funds shall be
551distributed by the remaining participating regional perinatal
552intensive care center program hospitals.
553     Section 11.  Section 409.9113, Florida Statutes, is amended
554to read:
555     409.9113  Disproportionate share program for teaching
556hospitals.--
557     (1)  In addition to the payments made under ss. 409.911 and
558409.9112, the Agency for Health Care Administration shall make
559disproportionate share payments to statutorily defined teaching
560hospitals for their increased costs associated with medical
561education programs and for tertiary health care services
562provided to the indigent. This system of payments shall conform
563with federal requirements and shall distribute funds in each
564fiscal year for which an appropriation is made by making
565quarterly Medicaid payments. Notwithstanding s. 409.915,
566counties are exempt from contributing toward the cost of this
567special reimbursement for hospitals serving a disproportionate
568share of low-income patients. For the state fiscal year 2009-
5692010 2008-2009, the agency shall distribute the moneys provided
570in the General Appropriations Act to statutorily defined
571teaching hospitals and family practice teaching hospitals under
572the teaching hospital disproportionate share program. The funds
573provided for statutorily defined teaching hospitals shall be
574distributed in the same proportion as the state fiscal year
5752003-2004 teaching hospital disproportionate share funds were
576distributed or as otherwise provided in the General
577Appropriations Act. The funds provided for family practice
578teaching hospitals shall be distributed equally among family
579practice teaching hospitals.
580     (2)(1)  On or before September 15 of each year, the Agency
581for Health Care Administration shall calculate an allocation
582fraction to be used for distributing funds to state statutory
583teaching hospitals. Subsequent to the end of each quarter of the
584state fiscal year, the agency shall distribute to each statutory
585teaching hospital, as defined in s. 408.07, an amount determined
586by multiplying one-fourth of the funds appropriated for this
587purpose by the Legislature times such hospital's allocation
588fraction. The allocation fraction for each such hospital shall
589be determined by the sum of three primary factors, divided by
590three. The primary factors are:
591     (a)  The number of nationally accredited graduate medical
592education programs offered by the hospital, including programs
593accredited by the Accreditation Council for Graduate Medical
594Education and the combined Internal Medicine and Pediatrics
595programs acceptable to both the American Board of Internal
596Medicine and the American Board of Pediatrics at the beginning
597of the state fiscal year preceding the date on which the
598allocation fraction is calculated. The numerical value of this
599factor is the fraction that the hospital represents of the total
600number of programs, where the total is computed for all state
601statutory teaching hospitals.
602     (b)  The number of full-time equivalent trainees in the
603hospital, which comprises two components:
604     1.  The number of trainees enrolled in nationally
605accredited graduate medical education programs, as defined in
606paragraph (a). Full-time equivalents are computed using the
607fraction of the year during which each trainee is primarily
608assigned to the given institution, over the state fiscal year
609preceding the date on which the allocation fraction is
610calculated. The numerical value of this factor is the fraction
611that the hospital represents of the total number of full-time
612equivalent trainees enrolled in accredited graduate programs,
613where the total is computed for all state statutory teaching
614hospitals.
615     2.  The number of medical students enrolled in accredited
616colleges of medicine and engaged in clinical activities,
617including required clinical clerkships and clinical electives.
618Full-time equivalents are computed using the fraction of the
619year during which each trainee is primarily assigned to the
620given institution, over the course of the state fiscal year
621preceding the date on which the allocation fraction is
622calculated. The numerical value of this factor is the fraction
623that the given hospital represents of the total number of full-
624time equivalent students enrolled in accredited colleges of
625medicine, where the total is computed for all state statutory
626teaching hospitals.
627
628The primary factor for full-time equivalent trainees is computed
629as the sum of these two components, divided by two.
630     (c)  A service index that comprises three components:
631     1.  The Agency for Health Care Administration Service
632Index, computed by applying the standard Service Inventory
633Scores established by the Agency for Health Care Administration
634to services offered by the given hospital, as reported on
635Worksheet A-2 for the last fiscal year reported to the agency
636before the date on which the allocation fraction is calculated.
637The numerical value of this factor is the fraction that the
638given hospital represents of the total Agency for Health Care
639Administration Service Index values, where the total is computed
640for all state statutory teaching hospitals.
641     2.  A volume-weighted service index, computed by applying
642the standard Service Inventory Scores established by the Agency
643for Health Care Administration to the volume of each service,
644expressed in terms of the standard units of measure reported on
645Worksheet A-2 for the last fiscal year reported to the agency
646before the date on which the allocation factor is calculated.
647The numerical value of this factor is the fraction that the
648given hospital represents of the total volume-weighted service
649index values, where the total is computed for all state
650statutory teaching hospitals.
651     3.  Total Medicaid payments to each hospital for direct
652inpatient and outpatient services during the fiscal year
653preceding the date on which the allocation factor is calculated.
654This includes payments made to each hospital for such services
655by Medicaid prepaid health plans, whether the plan was
656administered by the hospital or not. The numerical value of this
657factor is the fraction that each hospital represents of the
658total of such Medicaid payments, where the total is computed for
659all state statutory teaching hospitals.
660
661The primary factor for the service index is computed as the sum
662of these three components, divided by three.
663     (3)(2)  By October 1 of each year, the agency shall use the
664following formula to calculate the maximum additional
665disproportionate share payment for statutorily defined teaching
666hospitals:
667
668TAP = THAF x A
669
670Where:
671     TAP = total additional payment.
672     THAF = teaching hospital allocation factor.
673     A = amount appropriated for a teaching hospital
674disproportionate share program.
675     Section 12.  Section 409.9117, Florida Statutes, is amended
676to read:
677     409.9117  Primary care disproportionate share program.--
678     (1)  For the state fiscal year 2009-2010 2008-2009, the
679agency shall not distribute moneys under the primary care
680disproportionate share program.
681     (2)(1)  If federal funds are available for disproportionate
682share programs in addition to those otherwise provided by law,
683there shall be created a primary care disproportionate share
684program.
685     (3)(2)  The following formula shall be used by the agency
686to calculate the total amount earned for hospitals that
687participate in the primary care disproportionate share program:
688
689TAE = HDSP/THDSP
690
691Where:
692     TAE = total amount earned by a hospital participating in
693the primary care disproportionate share program.
694     HDSP = the prior state fiscal year primary care
695disproportionate share payment to the individual hospital.
696     THDSP = the prior state fiscal year total primary care
697disproportionate share payments to all hospitals.
698     (4)(3)  The total additional payment for hospitals that
699participate in the primary care disproportionate share program
700shall be calculated by the agency as follows:
701
702TAP = TAE x TA
703
704Where:
705     TAP = total additional payment for a primary care hospital.
706     TAE = total amount earned by a primary care hospital.
707     TA = total appropriation for the primary care
708disproportionate share program.
709     (5)(4)  In the establishment and funding of this program,
710the agency shall use the following criteria in addition to those
711specified in s. 409.911, payments may not be made to a hospital
712unless the hospital agrees to:
713     (a)  Cooperate with a Medicaid prepaid health plan, if one
714exists in the community.
715     (b)  Ensure the availability of primary and specialty care
716physicians to Medicaid recipients who are not enrolled in a
717prepaid capitated arrangement and who are in need of access to
718such physicians.
719     (c)  Coordinate and provide primary care services free of
720charge, except copayments, to all persons with incomes up to 100
721percent of the federal poverty level who are not otherwise
722covered by Medicaid or another program administered by a
723governmental entity, and to provide such services based on a
724sliding fee scale to all persons with incomes up to 200 percent
725of the federal poverty level who are not otherwise covered by
726Medicaid or another program administered by a governmental
727entity, except that eligibility may be limited to persons who
728reside within a more limited area, as agreed to by the agency
729and the hospital.
730     (d)  Contract with any federally qualified health center,
731if one exists within the agreed geopolitical boundaries,
732concerning the provision of primary care services, in order to
733guarantee delivery of services in a nonduplicative fashion, and
734to provide for referral arrangements, privileges, and
735admissions, as appropriate. The hospital shall agree to provide
736at an onsite or offsite facility primary care services within 24
737hours to which all Medicaid recipients and persons eligible
738under this paragraph who do not require emergency room services
739are referred during normal daylight hours.
740     (e)  Cooperate with the agency, the county, and other
741entities to ensure the provision of certain public health
742services, case management, referral and acceptance of patients,
743and sharing of epidemiological data, as the agency and the
744hospital find mutually necessary and desirable to promote and
745protect the public health within the agreed geopolitical
746boundaries.
747     (f)  In cooperation with the county in which the hospital
748resides, develop a low-cost, outpatient, prepaid health care
749program to persons who are not eligible for the Medicaid
750program, and who reside within the area.
751     (g)  Provide inpatient services to residents within the
752area who are not eligible for Medicaid or Medicare, and who do
753not have private health insurance, regardless of ability to pay,
754on the basis of available space, except that nothing shall
755prevent the hospital from establishing bill collection programs
756based on ability to pay.
757     (h)  Work with the Florida Healthy Kids Corporation, the
758Florida Health Care Purchasing Cooperative, and business health
759coalitions, as appropriate, to develop a feasibility study and
760plan to provide a low-cost comprehensive health insurance plan
761to persons who reside within the area and who do not have access
762to such a plan.
763     (i)  Work with public health officials and other experts to
764provide community health education and prevention activities
765designed to promote healthy lifestyles and appropriate use of
766health services.
767     (j)  Work with the local health council to develop a plan
768for promoting access to affordable health care services for all
769persons who reside within the area, including, but not limited
770to, public health services, primary care services, inpatient
771services, and affordable health insurance generally.
772
773Any hospital that fails to comply with any of the provisions of
774this subsection, or any other contractual condition, may not
775receive payments under this section until full compliance is
776achieved.
777     Section 13.  Paragraph (g) is added to subsection (5) of
778section 409.912, Florida Statutes, and subsections (54) and (55)
779are added to that section, to read:
780     409.912  Cost-effective purchasing of health care.--The
781agency shall purchase goods and services for Medicaid recipients
782in the most cost-effective manner consistent with the delivery
783of quality medical care. To ensure that medical services are
784effectively utilized, the agency may, in any case, require a
785confirmation or second physician's opinion of the correct
786diagnosis for purposes of authorizing future services under the
787Medicaid program. This section does not restrict access to
788emergency services or poststabilization care services as defined
789in 42 C.F.R. part 438.114. Such confirmation or second opinion
790shall be rendered in a manner approved by the agency. The agency
791shall maximize the use of prepaid per capita and prepaid
792aggregate fixed-sum basis services when appropriate and other
793alternative service delivery and reimbursement methodologies,
794including competitive bidding pursuant to s. 287.057, designed
795to facilitate the cost-effective purchase of a case-managed
796continuum of care. The agency shall also require providers to
797minimize the exposure of recipients to the need for acute
798inpatient, custodial, and other institutional care and the
799inappropriate or unnecessary use of high-cost services. The
800agency shall contract with a vendor to monitor and evaluate the
801clinical practice patterns of providers in order to identify
802trends that are outside the normal practice patterns of a
803provider's professional peers or the national guidelines of a
804provider's professional association. The vendor must be able to
805provide information and counseling to a provider whose practice
806patterns are outside the norms, in consultation with the agency,
807to improve patient care and reduce inappropriate utilization.
808The agency may mandate prior authorization, drug therapy
809management, or disease management participation for certain
810populations of Medicaid beneficiaries, certain drug classes, or
811particular drugs to prevent fraud, abuse, overuse, and possible
812dangerous drug interactions. The Pharmaceutical and Therapeutics
813Committee shall make recommendations to the agency on drugs for
814which prior authorization is required. The agency shall inform
815the Pharmaceutical and Therapeutics Committee of its decisions
816regarding drugs subject to prior authorization. The agency is
817authorized to limit the entities it contracts with or enrolls as
818Medicaid providers by developing a provider network through
819provider credentialing. The agency may competitively bid single-
820source-provider contracts if procurement of goods or services
821results in demonstrated cost savings to the state without
822limiting access to care. The agency may limit its network based
823on the assessment of beneficiary access to care, provider
824availability, provider quality standards, time and distance
825standards for access to care, the cultural competence of the
826provider network, demographic characteristics of Medicaid
827beneficiaries, practice and provider-to-beneficiary standards,
828appointment wait times, beneficiary use of services, provider
829turnover, provider profiling, provider licensure history,
830previous program integrity investigations and findings, peer
831review, provider Medicaid policy and billing compliance records,
832clinical and medical record audits, and other factors. Providers
833shall not be entitled to enrollment in the Medicaid provider
834network. The agency shall determine instances in which allowing
835Medicaid beneficiaries to purchase durable medical equipment and
836other goods is less expensive to the Medicaid program than long-
837term rental of the equipment or goods. The agency may establish
838rules to facilitate purchases in lieu of long-term rentals in
839order to protect against fraud and abuse in the Medicaid program
840as defined in s. 409.913. The agency may seek federal waivers
841necessary to administer these policies.
842     (5)  The Agency for Health Care Administration, in
843partnership with the Department of Elderly Affairs, shall create
844an integrated, fixed-payment delivery program for Medicaid
845recipients who are 60 years of age or older or dually eligible
846for Medicare and Medicaid. The Agency for Health Care
847Administration shall implement the integrated program initially
848on a pilot basis in two areas of the state. The pilot areas
849shall be Area 7 and Area 11 of the Agency for Health Care
850Administration. Enrollment in the pilot areas shall be on a
851voluntary basis and in accordance with approved federal waivers
852and this section. The agency and its program contractors and
853providers shall not enroll any individual in the integrated
854program because the individual or the person legally responsible
855for the individual fails to choose to enroll in the integrated
856program. Enrollment in the integrated program shall be
857exclusively by affirmative choice of the eligible individual or
858by the person legally responsible for the individual. The
859integrated program must transfer all Medicaid services for
860eligible elderly individuals who choose to participate into an
861integrated-care management model designed to serve Medicaid
862recipients in the community. The integrated program must combine
863all funding for Medicaid services provided to individuals who
864are 60 years of age or older or dually eligible for Medicare and
865Medicaid into the integrated program, including funds for
866Medicaid home and community-based waiver services; all Medicaid
867services authorized in ss. 409.905 and 409.906, excluding funds
868for Medicaid nursing home services unless the agency is able to
869demonstrate how the integration of the funds will improve
870coordinated care for these services in a less costly manner; and
871Medicare coinsurance and deductibles for persons dually eligible
872for Medicaid and Medicare as prescribed in s. 409.908(13).
873     (g)  The implementation of the integrated, fixed-payment
874delivery program created under this subsection is subject to an
875appropriation in the General Appropriations Act.
876     (54)  The agency shall develop and implement a home health
877agency monitoring pilot project in Miami-Dade County by January
8781, 2010. The agency shall contract with a vendor to verify the
879utilization and the delivery of home health services and provide
880an electronic billing interface for home health services. The
881contract must require the creation of a program to submit claims
882for the home health services electronically. The program must
883verify visits for the delivery of home health services
884telephonically using voice biometrics. The agency may seek
885amendments to the Medicaid state plan and waivers of federal
886laws, as necessary, to implement the pilot project.
887Notwithstanding s. 287.057(5)(f), the agency must award the
888contract through the competitive solicitation process. The
889agency shall submit a report to the Governor, the President of
890the Senate, and the Speaker of the House of Representatives
891evaluating the pilot project by February 1, 2011.
892     (55)  The agency shall implement a comprehensive care
893management pilot project in Miami-Dade County for home health
894services by January 1, 2010, which includes face-to-face
895assessments by a state-licensed nurse, consultation with
896physicians ordering services to substantiate the medical
897necessity for services, and onsite or desk reviews of
898recipients' medical records. The agency may enter into a
899contract with a qualified organization to implement the pilot
900project. The agency may seek amendments to the Medicaid state
901plan and waivers of federal laws, as necessary, to implement the
902pilot project.
903     Section 14.  Paragraph (e) of subsection (3) and subsection
904(12) of section 409.91211, Florida Statutes, are amended to
905read:
906     409.91211  Medicaid managed care pilot program.--
907     (3)  The agency shall have the following powers, duties,
908and responsibilities with respect to the pilot program:
909     (e)  To implement policies and guidelines for phasing in
910financial risk for approved provider service networks over a 5-
911year 3-year period. These policies and guidelines must include
912an option for a provider service network to be paid fee-for-
913service rates. For any provider service network established in a
914managed care pilot area, the option to be paid fee-for-service
915rates shall include a savings-settlement mechanism that is
916consistent with s. 409.912(44). This model shall be converted to
917a risk-adjusted capitated rate no later than the beginning of
918the sixth fourth year of operation, and may be converted earlier
919at the option of the provider service network. Federally
920qualified health centers may be offered an opportunity to accept
921or decline a contract to participate in any provider network for
922prepaid primary care services.
923     (12)  For purposes of this section, the term "capitated
924managed care plan" includes health insurers authorized under
925chapter 624, exclusive provider organizations authorized under
926chapter 627, health maintenance organizations authorized under
927chapter 641, the Children's Medical Services Network under
928chapter 391, and provider service networks that elect to be paid
929fee-for-service for up to 5 3 years as authorized under this
930section.
931     Section 15.  Subsection (18) is added to section 430.04,
932Florida Statutes, to read:
933     430.04  Duties and responsibilities of the Department of
934Elderly Affairs.--The Department of Elderly Affairs shall:
935     (18)  Administer all Medicaid waivers and programs relating
936to elders and their appropriations. The waivers include, but are
937not limited to, the following:
938     (a)  Alzheimer's Dementia-Specific Medicaid Waiver as
939defined in s. 430.502(7),(8), and (9).
940     (b)  Assisted Living for the Elderly Medicaid Waiver.
941     (c)  Aged and Disabled Adult Medicaid Waiver.
942     (d)  Adult Day Health Care Waiver.
943     (e)  Consumer-directed care program as defined in s.
944409.221.
945     (f)  Program of All-inclusive Care for the Elderly.
946     (g)  Long-term care community-based diversion pilot
947projects as defined in s. 430.705.
948     (h)  Channeling Services Waiver for Frail Elders.
949     Section 16.  Section 430.707, Florida Statutes, is amended
950to read:
951     430.707  Contracts.--
952     (1)  The department, in consultation with the agency, shall
953select and contract with managed care organizations and, on a
954prepaid basis, with other qualified providers as defined in s.
955430.703(7) to provide long-term care within community diversion
956pilot project areas. All providers shall report quarterly to the
957department regarding the entity's compliance with all the
958financial and quality assurance requirements of the contract.
959     (2)  The department, in consultation with the agency, may
960contract with entities that which have submitted an application
961as a community nursing home diversion project as of July 1,
9621998, to provide benefits pursuant to the "Program of All-
963inclusive Care for the Elderly" as established in Pub. L. No.
964105-33. For the purposes of this community nursing home
965diversion project, such entities are shall be exempt from the
966requirements of chapter 641, if the entity is a private,
967nonprofit, superior-rated nursing home and if with at least 50
968percent of its residents are eligible for Medicaid. The agency,
969in consultation with the department, shall accept and forward to
970the Centers for Medicare and Medicaid Services an application
971for expansion of the pilot project from an entity that provides
972benefits pursuant to the Program of All-inclusive Care for the
973Elderly and that is in good standing with the agency, the
974department, and the Centers for Medicare and Medicaid Services.
975     Section 17.  This act shall take effect July 1, 2009.
976
977
978
-----------------------------------------------------
979
T I T L E  A M E N D M E N T
980     Remove the entire title and insert:
981
A bill to be entitled
982An act relating to health care; amending s. 409.814, F.S.;
983providing Florida Kidcare eligibility determination
984requirements; amending s. 409.815, F.S.; revising
985mandatory benefit requirements for behavioral health and
986dental services; providing reimbursement requirements for
987federally qualified health centers and rural health
988clinics; amending s. 409.818, F.S.; requiring the Agency
989for Health Care Administration to monitor the compliance
990and quality of health insurance plans in the Florida
991Kidcare program as required by federal law; amending s.
992409.904, F.S.; revising the expiration date of provisions
993authorizing the federal waiver for certain persons age 65
994and over or who have a disability; revising the expiration
995date of provisions authorizing a specified medically needy
996program; amending s. 409.905, F.S., relating to mandatory
997Medicaid services; requiring prior authorization for
998certain home health services; requiring home health
999agencies to submit certain supporting documentation when
1000requesting prior authorization; establishing reimbursement
1001requirements for home health services; providing an
1002exemption for certain home health agencies; revising
1003conditions for adjustment of a hospital's inpatient per
1004diem rate; amending s. 409.906, F.S., relating to optional
1005Medicaid services; providing limitations on the provision
1006of adult vision services; amending s. 409.9082, F.S.;
1007authorizing the agency to exempt certain nursing home
1008facility providers from quality assessments or apply a
1009lower assessment rate to the facility; modifying
1010circumstances requiring discontinuance of the quality
1011assessment on nursing home facility providers; creating s.
1012409.9083, F.S.; providing definitions; providing for a
1013quality assessment to be imposed upon privately operated
1014intermediate care facility providers for the
1015developmentally disabled; requiring the agency to
1016calculate the quality assessment rate annually; providing
1017requirements for reporting and collecting the assessment;
1018specifying the purposes of the assessment and an order of
1019priority; requiring that the agency seek federal
1020authorization to implement the act; specifying
1021circumstances requiring discontinuance of the quality
1022assessment; authorizing the agency to impose certain
1023penalties against providers that fail to pay the
1024assessment; requiring the agency to adopt rules; providing
1025for future repeal; amending s. 409.911, F.S.; revising the
1026share data used to calculate disproportionate share
1027payments to hospitals; amending s. 409.9112, F.S.;
1028revising the time period during which the agency is
1029prohibited from distributing disproportionate share
1030payments to regional perinatal intensive care centers;
1031amending s. 409.9113, F.S.; requiring the agency to
1032distribute moneys provided in the General Appropriations
1033Act to statutorily defined teaching hospitals and family
1034practice teaching hospitals under the teaching hospital
1035disproportionate share program for the 2009-2010 fiscal
1036year; amending s. 409.9117, F.S.; prohibiting the agency
1037from distributing moneys under the primary care
1038disproportionate share program for the 2009-2010 fiscal
1039year; amending s. 409.912, F.S.; providing that the
1040continuance of the integrated fixed-payment delivery pilot
1041program for certain elderly or dually eligible recipients
1042is contingent upon an appropriation; creating a pilot
1043project in Miami-Dade County to monitor the delivery of
1044home health services and provide for electronic claims for
1045home health services; authorizing the agency to seek
1046amendments to the state plan and waivers of federal law to
1047implement the project; requiring the agency to award
1048contracts based on a competitive solicitation process;
1049requiring a report to the Governor and Legislature;
1050creating a comprehensive care management pilot project in
1051Miami-Dade County for home health services; authorizing
1052the agency to seek amendments to the state plan and
1053waivers of federal law to implement the project; amending
1054s. 409.91211, F.S.; revising the date when provider
1055service networks convert from fee-for-service to
1056capitation rates; amending s. 430.04, F.S.; requiring the
1057Department of Elderly Affairs to administer all Medicaid
1058waivers and programs relating to elders and their
1059appropriations; amending s. 430.707, F.S.; requiring the
1060agency, in consultation with the Department of Elderly
1061Affairs, to accept and forward to the Centers for Medicare
1062and Medicaid Services an application for expansion of a
1063pilot project from an entity that provides certain
1064benefits under a federal program; providing an effective
1065date.


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