Florida Senate - 2009 COMMITTEE AMENDMENT Bill No. CS for CS for SB 1986 Barcode 879426 LEGISLATIVE ACTION Senate . House Comm: RCS . 04/15/2009 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Health and Human Services Appropriations (Gaetz) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 552 - 798 4 and insert: 5 health agency rendering the services. However, this 6 provision does not apply to a home health agency affiliated with 7 a retirement community, of which the parent corporation or a 8 related legal entity owns a rural health clinic certified under 9 42 CFR, Part 491, Subpart A, Sections 1-11, a nursing home 10 licensed under part II of chapter 400, and apartments and single 11 family homes for independent living. 12 4. The physician ordering the services has examined the 13 recipient within the 30 days preceding the initial request for 14 the services and biannually thereafter. 15 5. The written prescription for the services includes the 16 recipient’s acute or chronic medical condition or diagnosis, the 17 home health service required, and for skilled nursing services 18 the frequency and duration of the services. 19 6. The national provider identifier, Medicaid 20 identification number, or medical practitioner license number of 21 the physician ordering the services is listed on the written 22 prescription for the services, the claim for home health 23 reimbursement, and the prior authorization request. 24 Section 12. Subsection (1) of section 409.907, Florida 25 Statutes, is amended to read: 26 (1) Each provider agreement shall require the provider to 27 comply fully with all state and federal laws pertaining to the 28 Medicaid program, as well as all federal, state, and local laws 29 pertaining to licensure, if required, and the practice of any of 30 the healing arts, and shall require the provider to provide 31 services or goods of not less than the scope and quality it 32 provides to the general public. Providers physically located in 33 the State of Florida may be enrolled as Medicaid providers. A 34 provider located outside the State of Florida may be enrolled if 35 the provider’s location is no more than 50 miles from the 36 Florida state line, and the agency determines a need for that 37 provider type to ensure adequate access to care. 38 Section 13. Subsection (14) of section 409.912, Florida 39 Statutes, is amended to read: 40 409.912 Cost-effective purchasing of health care.—The 41 agency shall purchase goods and services for Medicaid recipients 42 in the most cost-effective manner consistent with the delivery 43 of quality medical care. To ensure that medical services are 44 effectively utilized, the agency may, in any case, require a 45 confirmation or second physician’s opinion of the correct 46 diagnosis for purposes of authorizing future services under the 47 Medicaid program. This section does not restrict access to 48 emergency services or poststabilization care services as defined 49 in 42 C.F.R. part 438.114. Such confirmation or second opinion 50 shall be rendered in a manner approved by the agency. The agency 51 shall maximize the use of prepaid per capita and prepaid 52 aggregate fixed-sum basis services when appropriate and other 53 alternative service delivery and reimbursement methodologies, 54 including competitive bidding pursuant to s. 287.057, designed 55 to facilitate the cost-effective purchase of a case-managed 56 continuum of care. The agency shall also require providers to 57 minimize the exposure of recipients to the need for acute 58 inpatient, custodial, and other institutional care and the 59 inappropriate or unnecessary use of high-cost services. The 60 agency shall contract with a vendor to monitor and evaluate the 61 clinical practice patterns of providers in order to identify 62 trends that are outside the normal practice patterns of a 63 provider’s professional peers or the national guidelines of a 64 provider’s professional association. The vendor must be able to 65 provide information and counseling to a provider whose practice 66 patterns are outside the norms, in consultation with the agency, 67 to improve patient care and reduce inappropriate utilization. 68 The agency may mandate prior authorization, drug therapy 69 management, or disease management participation for certain 70 populations of Medicaid beneficiaries, certain drug classes, or 71 particular drugs to prevent fraud, abuse, overuse, and possible 72 dangerous drug interactions. The Pharmaceutical and Therapeutics 73 Committee shall make recommendations to the agency on drugs for 74 which prior authorization is required. The agency shall inform 75 the Pharmaceutical and Therapeutics Committee of its decisions 76 regarding drugs subject to prior authorization. The agency is 77 authorized to limit the entities it contracts with or enrolls as 78 Medicaid providers by developing a provider network through 79 provider credentialing. The agency may competitively bid single 80 source-provider contracts if procurement of goods or services 81 results in demonstrated cost savings to the state without 82 limiting access to care. The agency may limit its network based 83 on the assessment of beneficiary access to care, provider 84 availability, provider quality standards, time and distance 85 standards for access to care, the cultural competence of the 86 provider network, demographic characteristics of Medicaid 87 beneficiaries, practice and provider-to-beneficiary standards, 88 appointment wait times, beneficiary use of services, provider 89 turnover, provider profiling, provider licensure history, 90 previous program integrity investigations and findings, peer 91 review, provider Medicaid policy and billing compliance records, 92 clinical and medical record audits, and other factors. Providers 93 shall not be entitled to enrollment in the Medicaid provider 94 network. The agency shall determine instances in which allowing 95 Medicaid beneficiaries to purchase durable medical equipment and 96 other goods is less expensive to the Medicaid program than long 97 term rental of the equipment or goods. The agency may establish 98 rules to facilitate purchases in lieu of long-term rentals in 99 order to protect against fraud and abuse in the Medicaid program 100 as defined in s. 409.913. The agency may seek federal waivers 101 necessary to administer these policies. 102 (14)(a) The agency shall operate or contract for the 103 operation of utilization management and incentive systems 104 designed to encourage cost-effective use of services and to 105 eliminate services that are medically unnecessary. The agency 106 shall track Medicaid provider prescription and billing patterns 107 and evaluate them against Medicaid medical necessity criteria 108 and coverage and limitation guidelines promulgated in rule. 109 Medical necessity determination requires that service be 110 consistent with symptoms or confirmed diagnosis of illness or 111 injury under treatment and not in excess of the patient’s needs. 112 The agency shall conduct reviews of provider exceptions to peer 113 group norms and shall, using statistical methodologies, provider 114 profiling and analysis of billing patterns, detect and 115 investigate abnormal or unusual increases in billing or payment 116 of claims for Medicaid services and medically unnecessary 117 provision of services. Providers that demonstrate a pattern of 118 submitting claims for medically unnecessary services shall be 119 referred to the Medicaid program integrity unit for 120 investigation. In its annual report, required in s. 409.913, the 121 agency shall report on its efforts to control overutilization as 122 described above. 123 (b) The agency shall develop a procedure for determining 124 whether health care providers and service vendors can provide 125 the Medicaid program using a business case that demonstrates 126 whether a particular good or service can offset the cost of 127 providing the good or service in an alternative setting or 128 through other means and therefore should receive a higher 129 reimbursement. The business case must include, but need not be 130 limited to: 131 1. A detailed description of the good or service to be 132 provided, a description and analysis of the agency’s current 133 performance of the service, and a rationale documenting how 134 providing the service in an alternative setting would be in the 135 best interest of the state, the agency, and its clients. 136 2. A cost-benefit analysis documenting the estimated 137 specific direct and indirect costs, savings, performance 138 improvements, risks, and qualitative and quantitative benefits 139 involved in or resulting from providing the service. The cost 140 benefit analysis must include a detailed plan and timeline 141 identifying all actions that must be implemented to realize 142 expected benefits. The Secretary of Health Care Administration 143 shall verify that all costs, savings, and benefits are valid and 144 achievable. 145 (c) If the agency determines that the increased 146 reimbursement is cost-effective, the agency shall recommend a 147 change in the reimbursement schedule for that particular good or 148 service. If, within 12 months after implementing any rate change 149 under this procedure, the agency determines that costs were not 150 offset by the increased reimbursement schedule, the agency may 151 revert to the former reimbursement schedule for the particular 152 good or service. 153 Section 13. Subsections (2), (7), (11), (13), (14), (15), 154 (21), (22), (24), (25), (27), (30), (31), and (36) of section 155 409.913, Florida Statutes, are amended, and subsection (37) is 156 added to that section, to read: 157 409.913 Oversight of the integrity of the Medicaid 158 program.—The agency shall operate a program to oversee the 159 activities of Florida Medicaid recipients, and providers and 160 their representatives, to ensure that fraudulent and abusive 161 behavior and neglect of recipients occur to the minimum extent 162 possible, and to recover overpayments and impose sanctions as 163 appropriate. Beginning January 1, 2003, and each year 164 thereafter, the agency and the Medicaid Fraud Control Unit of 165 the Department of Legal Affairs shall submit a joint report to 166 the Legislature documenting the effectiveness of the state’s 167 efforts to control Medicaid fraud and abuse and to recover 168 Medicaid overpayments during the previous fiscal year. The 169 report must describe the number of cases opened and investigated 170 each year; the sources of the cases opened; the disposition of 171 the cases closed each year; the amount of overpayments alleged 172 in preliminary and final audit letters; the number and amount of 173 fines or penalties imposed; any reductions in overpayment 174 amounts negotiated in settlement agreements or by other means; 175 the amount of final agency determinations of overpayments; the 176 amount deducted from federal claiming as a result of 177 overpayments; the amount of overpayments recovered each year; 178 the amount of cost of investigation recovered each year; the 179 average length of time to collect from the time the case was 180 opened until the overpayment is paid in full; the amount 181 determined as uncollectible and the portion of the uncollectible 182 amount subsequently reclaimed from the Federal Government; the 183 number of providers, by type, that are terminated from 184 participation in the Medicaid program as a result of fraud and 185 abuse; and all costs associated with discovering and prosecuting 186 cases of Medicaid overpayments and making recoveries in such 187 cases. The report must also document actions taken to prevent 188 overpayments and the number of providers prevented from 189 enrolling in or reenrolling in the Medicaid program as a result 190 of documented Medicaid fraud and abuse and must include policy 191 recommendationsrecommend changesnecessary to prevent or 192 recover overpayments and changes necessary to prevent and detect 193 Medicaid fraud. All policy recommendations in the report must 194 include a detailed fiscal analysis, including, but not limited 195 to, implementation costs, estimated savings to the Medicaid 196 program, and the return on investment. The agency must submit 197 the policy recommendations and fiscal analyses in the report to 198 the appropriate estimating conference, pursuant to s. 216.137, 199 by February 15 of each year. The agency and the Medicaid Fraud 200 Control Unit of the Department of Legal Affairs each must 201 include detailed unit-specific performance standards, 202 benchmarks, and metrics in the report, including projected cost 203 savings to the state Medicaid program during the following 204 fiscal year. 205 (2) The agency shall conduct, or cause to be conducted by 206 contract or otherwise, reviews, investigations, analyses, 207 audits, or any combination thereof, to determine possible fraud, 208 abuse, overpayment, or recipient neglect in the Medicaid program 209 and shall report the findings of any overpayments in audit 210 reports as appropriate. At least 5 percent of all audits shall 211 be conducted on a random basis. As part of its ongoing fraud 212 detection activities, the agency shall identify and monitor, by 213 contract or otherwise, patterns of overutilization of Medicaid 214 services based on state averages. The agency shall track 215 Medicaid provider prescription and billing patterns and evaluate 216 them against Medicaid medical necessity criteria and coverage 217 and limitation guidelines promulgated in rule. Medical necessity 218 determination requires that service be consistent with symptoms 219 or confirmed diagnosis of illness or injury under treatment and 220 not in excess of the patient’s needs. The agency shall conduct 221 reviews of provider exceptions to peer group norms and shall, 222 using statistical methodologies, provider profiling and analysis 223 of billing patterns, detect and investigate abnormal or unusual 224 increases in billing or payment of claims for Medicaid services 225 and medically unnecessary provision of services. 226 (7) When presenting a claim for payment under the Medicaid 227 program, a provider has an affirmative duty to supervise the 228 provision of, and be responsible for, goods and services claimed 229 to have been provided, to supervise and be responsible for 230 preparation and submission of the claim, and to present a claim 231 that is true and accurate and that is for goods and services 232 that: 233 (a) Have actually been furnished to the recipient by the 234 provider prior to submitting the claim. 235 (b) Are Medicaid-covered goods or services that are 236 medically necessary. 237 (c) Are of a quality comparable to those furnished to the 238 general public by the provider’s peers. 239 (d) Have not been billed in whole or in part to a recipient 240 or a recipient’s responsible party, except for such copayments, 241 coinsurance, or deductibles as are authorized by the agency. 242 (e) Are provided in accord with applicable provisions of 243 all Medicaid rules, regulations, handbooks, and policies and in 244 accordance with federal, state, and local law. 245 (f) Are documented by records made at the time the goods or 246 services were provided, demonstrating the medical necessity for 247 the goods or services rendered. Medicaid goods or services are 248 excessive or not medically necessary unless both the medical 249 basis and the specific need for them are fully and properly 250 documented in the recipient’s medical record. 251 252 The agency shallmaydeny payment or require repayment for goods 253 or services that are not presented as required in this 254 subsection. 255 (11) The agency shallmaydeny payment or require repayment 256 for inappropriate, medically unnecessary, or excessive goods or 257 services from the person furnishing them, the person under whose 258 supervision they were furnished, or the person causing them to 259 be furnished. 260 (13) The agency shall immediatelymayterminate 261 participation of a Medicaid provider in the Medicaid program and 262 may seek civil remedies or impose other administrative sanctions 263 against a Medicaid provider, if the provider or any principal, 264 officer, director, agent, managing employee, or affiliated 265 person of the provider, or any partner or shareholder having an 266 ownership interest in the provider equal to 5 percent or 267 greater, has been: 268 (a) Convicted of a criminal offense related to the delivery 269 of any health care goods or services, including the performance 270 of management or administrative functions relating to the 271 delivery of health care goods or services; 272 (b) Convicted of a criminal offense under federal law or 273 the law of any state relating to the practice of the provider’s 274 profession; or 275 (c) Found by a court of competent jurisdiction to have 276 neglected or physically abused a patient in connection with the 277 delivery of health care goods or services. 278 279 If the agency determines a provider did not participate or 280 acquiesce in an offense in paragraphs (a), (b), or (c) of this 281 subsection, a termination will not be imposed. If the agency 282 effects a termination under this subsection, the agency shall 283 issue an immediate final order pursuant to s. 120.569(2)(n). 284 285 ================= T I T L E A M E N D M E N T ================ 286 And the title is amended as follows: 287 Delete lines 48 - 66 288 and insert: 289 unless specified requirements are satisfied; providing an 290 exemption for home health agencies that meet certain 291 requirements; amending s. 409.907; authorizing the Agency for 292 Health Care Administration to enroll Medicaid providers located 293 outside of the state of Florida if specified requirements are 294 satisfied; amending s. 409.912, F.S.; requiring the Agency for 295 Health Care Administration to establish norms for the 296 utilization of Medicaid services; requiring the agency include 297 information relating to the overutilization of Medicaid services 298 in the annual report submitted by the Agency for Health Care 299 Administration and the Medicaid Fraud Control Unit; amending s. 300 409.913, F.S.; requiring that the annual report submitted by the 301 Agency for Health Care Administration and the Medicaid Fraud 302 Control Unit of the Department of Legal Affairs recommend 303 changes necessary to prevent and detect Medicaid fraud; 304 requiring the Agency for Health Care Administration to monitor 305 patterns of overutilization of Medicaid services; requiring the 306 agency to deny payment or require repayment for Medicaid 307 services under certain circumstances; requiring the Agency for 308 Health Care Administration to immediately terminate a Medicaid 309 provider’s participation in the Medicaid program as a result of 310 certain adjudications against the provider or certain affiliated 311 persons; providing the Agency for Health Care Administration the 312 discretion not to terminate certain providers; requiring