Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. SB 2422
       
       
       
       
       
       
                                Barcode 918824                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/01/2009           .                                
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       The Committee on Health Regulation (Altman) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Paragraph (b) of subsection (4) of section
    7  409.912, Florida Statutes, is amended to read:
    8         409.912 Cost-effective purchasing of health care.—The
    9  agency shall purchase goods and services for Medicaid recipients
   10  in the most cost-effective manner consistent with the delivery
   11  of quality medical care. To ensure that medical services are
   12  effectively utilized, the agency may, in any case, require a
   13  confirmation or second physician’s opinion of the correct
   14  diagnosis for purposes of authorizing future services under the
   15  Medicaid program. This section does not restrict access to
   16  emergency services or poststabilization care services as defined
   17  in 42 C.F.R. part 438.114. Such confirmation or second opinion
   18  shall be rendered in a manner approved by the agency. The agency
   19  shall maximize the use of prepaid per capita and prepaid
   20  aggregate fixed-sum basis services when appropriate and other
   21  alternative service delivery and reimbursement methodologies,
   22  including competitive bidding pursuant to s. 287.057, designed
   23  to facilitate the cost-effective purchase of a case-managed
   24  continuum of care. The agency shall also require providers to
   25  minimize the exposure of recipients to the need for acute
   26  inpatient, custodial, and other institutional care and the
   27  inappropriate or unnecessary use of high-cost services. The
   28  agency shall contract with a vendor to monitor and evaluate the
   29  clinical practice patterns of providers in order to identify
   30  trends that are outside the normal practice patterns of a
   31  provider’s professional peers or the national guidelines of a
   32  provider’s professional association. The vendor must be able to
   33  provide information and counseling to a provider whose practice
   34  patterns are outside the norms, in consultation with the agency,
   35  to improve patient care and reduce inappropriate utilization.
   36  The agency may mandate prior authorization, drug therapy
   37  management, or disease management participation for certain
   38  populations of Medicaid beneficiaries, certain drug classes, or
   39  particular drugs to prevent fraud, abuse, overuse, and possible
   40  dangerous drug interactions. The Pharmaceutical and Therapeutics
   41  Committee shall make recommendations to the agency on drugs for
   42  which prior authorization is required. The agency shall inform
   43  the Pharmaceutical and Therapeutics Committee of its decisions
   44  regarding drugs subject to prior authorization. The agency is
   45  authorized to limit the entities it contracts with or enrolls as
   46  Medicaid providers by developing a provider network through
   47  provider credentialing. The agency may competitively bid single
   48  source-provider contracts if procurement of goods or services
   49  results in demonstrated cost savings to the state without
   50  limiting access to care. The agency may limit its network based
   51  on the assessment of beneficiary access to care, provider
   52  availability, provider quality standards, time and distance
   53  standards for access to care, the cultural competence of the
   54  provider network, demographic characteristics of Medicaid
   55  beneficiaries, practice and provider-to-beneficiary standards,
   56  appointment wait times, beneficiary use of services, provider
   57  turnover, provider profiling, provider licensure history,
   58  previous program integrity investigations and findings, peer
   59  review, provider Medicaid policy and billing compliance records,
   60  clinical and medical record audits, and other factors. Providers
   61  shall not be entitled to enrollment in the Medicaid provider
   62  network. The agency shall determine instances in which allowing
   63  Medicaid beneficiaries to purchase durable medical equipment and
   64  other goods is less expensive to the Medicaid program than long
   65  term rental of the equipment or goods. The agency may establish
   66  rules to facilitate purchases in lieu of long-term rentals in
   67  order to protect against fraud and abuse in the Medicaid program
   68  as defined in s. 409.913. The agency may seek federal waivers
   69  necessary to administer these policies.
   70         (4) The agency may contract with:
   71         (b) An entity that is providing comprehensive behavioral
   72  health care services to certain Medicaid recipients through a
   73  capitated, prepaid arrangement pursuant to the federal waiver
   74  authorized in provided for by s. 409.905(5). Such an entity must
   75  be licensed under chapter 624, chapter 636, or chapter 641 and
   76  must possess the clinical systems and operational competence to
   77  manage risk and provide comprehensive behavioral health care to
   78  Medicaid recipients. As used in this paragraph, the term
   79  “comprehensive behavioral health care services” means covered
   80  mental health and substance abuse treatment services that are
   81  available to Medicaid recipients. The secretary of the
   82  Department of Children and Family Services must shall approve
   83  provisions of procurements related to children in the
   84  department’s care or custody before prior to enrolling such
   85  children in a prepaid behavioral health plan. Any contract
   86  awarded under this paragraph must be competitively procured. In
   87  developing the behavioral health care prepaid plan procurement
   88  document, the agency shall ensure that the procurement document
   89  requires the contractor to develop and implement a plan to
   90  ensure compliance with s. 394.4574 related to services provided
   91  to residents of licensed assisted living facilities that hold a
   92  limited mental health license. Except as provided in
   93  subparagraph 8., and except in counties where the Medicaid
   94  managed care pilot program is authorized pursuant to s.
   95  409.91211, the agency shall seek federal approval to contract
   96  with a single entity meeting these requirements to provide
   97  comprehensive behavioral health care services to all Medicaid
   98  recipients not enrolled in a Medicaid managed care plan
   99  authorized under s. 409.91211 or a Medicaid health maintenance
  100  organization in an AHCA area. In an AHCA area where the Medicaid
  101  managed care pilot program is authorized pursuant to s.
  102  409.91211 in one or more counties, the agency may procure a
  103  contract with a single entity to serve the remaining counties as
  104  an AHCA area or the remaining counties may be included with an
  105  adjacent AHCA area and are shall be subject to this paragraph.
  106  Each entity must offer a sufficient choice of providers in its
  107  network to ensure recipient access to care and the opportunity
  108  to select a provider with whom they are satisfied. The network
  109  shall include all public mental health hospitals. To ensure
  110  unimpaired access to behavioral health care services by Medicaid
  111  recipients, all contracts issued pursuant to this paragraph
  112  shall require 80 percent of the capitation paid to the managed
  113  care plan, including health maintenance organizations, to be
  114  expended for the provision of behavioral health care services.
  115  In the event the managed care plan expends less than 80 percent
  116  of the capitation paid pursuant to this paragraph for the
  117  provision of behavioral health care services, the difference
  118  shall be returned to the agency. The agency shall provide the
  119  managed care plan with a certification letter indicating the
  120  amount of capitation paid during each calendar year for the
  121  provision of behavioral health care services pursuant to this
  122  section. The agency may reimburse for substance abuse treatment
  123  services on a fee-for-service basis until the agency finds that
  124  adequate funds are available for capitated, prepaid
  125  arrangements.
  126         1. By January 1, 2001, the agency shall modify the
  127  contracts with the entities providing comprehensive inpatient
  128  and outpatient mental health care services to Medicaid
  129  recipients in Hillsborough, Highlands, Hardee, Manatee, and Polk
  130  Counties, to include substance abuse treatment services.
  131         2. By July 1, 2003, the agency and the department of
  132  Children and Family Services shall execute a written agreement
  133  that requires collaboration and joint development of all policy,
  134  budgets, procurement documents, contracts, and monitoring plans
  135  that have an impact on the state and Medicaid community mental
  136  health and targeted case management programs.
  137         3. Except as provided in subparagraph 8., by July 1, 2006,
  138  the agency and the department of Children and Family Services
  139  shall contract with managed care entities in each AHCA area
  140  except area 6 or arrange to provide comprehensive inpatient and
  141  outpatient mental health and substance abuse services through
  142  capitated prepaid arrangements to all Medicaid recipients who
  143  are eligible to participate in such plans under federal law and
  144  regulation. In AHCA areas where eligible individuals number less
  145  than 150,000, the agency shall contract with a single managed
  146  care plan to provide comprehensive behavioral health services to
  147  all recipients who are not enrolled in a Medicaid health
  148  maintenance organization or a Medicaid capitated managed care
  149  plan authorized under s. 409.91211. The agency may contract with
  150  more than one comprehensive behavioral health provider to
  151  provide care to recipients who are not enrolled in a Medicaid
  152  capitated managed care plan authorized under s. 409.91211 or a
  153  Medicaid health maintenance organization in AHCA areas where the
  154  eligible population exceeds 150,000. In an AHCA area where the
  155  Medicaid managed care pilot program is authorized pursuant to s.
  156  409.91211 in one or more counties, the agency may procure a
  157  contract with a single entity to serve the remaining counties as
  158  an AHCA area or the remaining counties may be included with an
  159  adjacent AHCA area and are shall be subject to this paragraph.
  160  Contracts for comprehensive behavioral health providers awarded
  161  pursuant to this section must shall be competitively procured.
  162  Both for-profit and not-for-profit corporations are shall be
  163  eligible to compete. Managed care plans contracting with the
  164  agency under subsection (3) shall provide and receive payment
  165  for the same comprehensive behavioral health benefits as
  166  provided in AHCA rules, including handbooks incorporated by
  167  reference. In AHCA area 11, the agency shall contract with at
  168  least two comprehensive behavioral health care providers to
  169  provide behavioral health care to recipients in that area who
  170  are enrolled in, or assigned to, the MediPass program. One of
  171  the behavioral health care contracts must shall be with the
  172  existing provider service network pilot project, as described in
  173  paragraph (d), for the purpose of demonstrating the cost
  174  effectiveness of the provision of quality mental health services
  175  through a public hospital-operated managed care model. Payment
  176  shall be at an agreed-upon capitated rate to ensure cost
  177  savings. Of the recipients in area 11 who are assigned to
  178  MediPass under the provisions of s. 409.9122(2)(k), a minimum of
  179  50,000 of those MediPass-enrolled recipients shall be assigned
  180  to the existing provider service network in area 11 for their
  181  behavioral care.
  182         4. By October 1, 2003, the agency and the department shall
  183  submit a plan to the Governor, the President of the Senate, and
  184  the Speaker of the House of Representatives which provides for
  185  the full implementation of capitated prepaid behavioral health
  186  care in all areas of the state.
  187         a. Implementation shall begin in 2003 in those AHCA areas
  188  of the state where the agency is able to establish sufficient
  189  capitation rates.
  190         b. If the agency determines that the proposed capitation
  191  rate in any area is insufficient to provide appropriate
  192  services, the agency may adjust the capitation rate to ensure
  193  that care is will be available. The agency and the department
  194  may use existing general revenue to address any additional
  195  required match but may not over-obligate existing funds on an
  196  annualized basis.
  197         c. Subject to any limitations provided for in the General
  198  Appropriations Act, the agency, in compliance with appropriate
  199  federal authorization, shall develop policies and procedures
  200  that allow for certification of local and state funds.
  201         5. Children residing in a statewide inpatient psychiatric
  202  program, or in a Department of Juvenile Justice or a Department
  203  of Children and Family Services residential program approved as
  204  a Medicaid behavioral health overlay services provider may shall
  205  not be included in a behavioral health care prepaid health plan
  206  or any other Medicaid managed care plan pursuant to this
  207  paragraph.
  208         6. In converting to a prepaid system of delivery, the
  209  agency shall in its procurement document require an entity
  210  providing only comprehensive behavioral health care services to
  211  prevent the displacement of indigent care patients by enrollees
  212  in the Medicaid prepaid health plan providing behavioral health
  213  care services from facilities receiving state funding to provide
  214  indigent behavioral health care, to facilities licensed under
  215  chapter 395 which do not receive state funding for indigent
  216  behavioral health care, or reimburse the unsubsidized facility
  217  for the cost of behavioral health care provided to the displaced
  218  indigent care patient.
  219         7. Traditional community mental health providers under
  220  contract with the department of Children and Family Services
  221  pursuant to part IV of chapter 394, child welfare providers
  222  under contract with the department of Children and Family
  223  Services in areas 1 and 6, and inpatient mental health providers
  224  licensed pursuant to chapter 395 must be offered an opportunity
  225  to accept or decline a contract to participate in any provider
  226  network for prepaid behavioral health services.
  227         8. All Medicaid-eligible children, except children in area
  228  1 and children in Highlands County, Hardee County, Polk County,
  229  or Manatee County of area 6, who are open for child welfare
  230  services in the HomeSafeNet system, shall receive their
  231  behavioral health care services through a specialty prepaid plan
  232  operated by community-based lead agencies either through a
  233  single agency or formal agreements among several agencies. The
  234  specialty prepaid plan must result in savings to the state
  235  comparable to savings achieved in other Medicaid managed care
  236  and prepaid programs. Such plan must provide mechanisms to
  237  maximize state and local revenues. The specialty prepaid plan
  238  shall be developed by the agency and the department of Children
  239  and Family Services. The agency may is authorized to seek any
  240  federal waivers to implement this initiative. Medicaid-eligible
  241  children whose cases are open for child welfare services in the
  242  HomeSafeNet system and who reside in AHCA area 10 are exempt
  243  from the specialty prepaid plan upon the development of a
  244  service delivery mechanism for children who reside in area 10 as
  245  specified in s. 409.91211(3)(dd).
  246         9.To ensure unimpaired access to behavioral health care
  247  services by Medicaid recipients, all contracts issued pursuant
  248  to this paragraph must require that 80 percent of the capitation
  249  paid to the managed care plan, including health maintenance
  250  organizations, be expended for the provision of behavioral
  251  health care services. If the plan expends less than 80 percent,
  252  the difference must be returned to the agency and deposited into
  253  the Medical Care Trust Fund. The agency shall maintain a
  254  separate accounting of repayments deposited into the trust fund.
  255  Repayments, minus federal matching funds that must be returned
  256  to the Federal Government, shall be allocated to community
  257  behavioral health providers enrolled in the networks of the
  258  managed care organizations that made the repayments. Funds shall
  259  be allocated in proportion to each community behavioral health
  260  agency’s earnings from the managed care organization making the
  261  repayment. Providers shall use the funds for any Medicaid
  262  allowable type of community behavioral health and case
  263  management service. Community agencies shall be reimbursed by
  264  the agency on a fee-for-service basis for allowable services up
  265  to their redistribution amount as determined by the agency.
  266  Reinvestment amounts must be calculated on an annual basis,
  267  within 60 days after health plans file their annual 80-percent
  268  spending reports. The agency shall provide the managed care plan
  269  with a certification letter indicating the amount of capitation
  270  paid during each calendar year for the provision of behavioral
  271  health care services pursuant to this section.
  272         Section 2. This act shall take effect upon becoming a law.
  273  
  274  ================= T I T L E  A M E N D M E N T ================
  275         And the title is amended as follows:
  276         Delete everything before the enacting clause
  277  and insert:
  278                        A bill to be entitled                      
  279         An act relating to Medicaid; amending s. 409.912,
  280         F.S.; requiring that funds repaid to the Agency for
  281         Health Care Administration by managed care plans that
  282         spend less than a certain percentage of the capitation
  283         rate for behavioral health services be deposited into
  284         the Medical Care Trust Fund; providing that such
  285         repayments be allocated to community behavioral health
  286         providers and used for Medicaid behavioral and case
  287         management services; providing an effective date.