Florida Senate - 2010 SB 2532 By Senator Peaden 2-01694-10 20102532__ 1 A bill to be entitled 2 An act relating to a medical home pilot project; 3 amending s. 409.91207, F.S.; requiring the Agency for 4 Health Care Administration to establish a medical home 5 pilot project; providing definitions; providing for 6 the organization of medical home networks; requiring 7 each medical home network to provide specified 8 services; requiring the Secretary of Health Care 9 Administration to appoint a task force to develop and 10 implement the project; providing for the establishment 11 of a statewide advisory panel; providing for 12 membership and duties of the task force and the panel; 13 providing for travel expenses and per diem for members 14 of the task force, statewide advisory panel, and 15 medical advisory group; directing the agency to 16 provide staff support to the panel; directing the 17 panel to establish a medical advisory group to promote 18 and assist in the establishment of medical home 19 networks; providing for enrollment of Medipass 20 beneficiaries in the pilot project; authorizing the 21 agency to designate priority areas in the state for 22 the development of medical home networks; providing 23 for financing of medical home networks; providing 24 responsibilities of the agency; requiring the agency 25 to adopt rules; providing for distribution of savings 26 achieved by network providers under certain 27 circumstances; providing for an appropriation; 28 requiring the agency to collaborate with the Office of 29 Insurance Regulation to encourage licensed insurers to 30 incorporate the principles of the medical home network 31 in insurance plans; directing the Department of 32 Management Services to develop a medical home option 33 in the state group insurance program; requiring 34 medical home network providers to maintain certain 35 records and data; providing an effective date. 36 37 Be It Enacted by the Legislature of the State of Florida: 38 39 Section 1. Section 409.91207, Florida Statutes, is amended 40 to read: 41 (Substantial rewording of section. See 42 s. 409.91207, F.S., for present text.) 43 409.91207 Medical home pilot project.— 44 (1) PURPOSE AND PRINCIPLES.—The agency shall develop and 45 implement a medical home pilot project. The purpose of the 46 project is to establish an enhanced primary care case management 47 program to test a medical home network model for coordinated and 48 cost-effective care in a fee-for-service environment and to 49 compare the performance of the medical home network model with 50 other forms of managed care. The agency may test alternative 51 payment rates and methods for designated medical homes that meet 52 the quality and efficiency guidelines established by the agency. 53 The medical home is intended to modify the processes and 54 patterns of health care service delivery by applying the 55 following principles: 56 (a) A personal medical provider leads an interdisciplinary 57 team of professionals who share the responsibility for providing 58 ongoing care to a specific panel of patients. 59 (b) The personal medical provider identifies a patient’s 60 health care needs and responds to those needs through direct 61 care or arrangements with other qualified providers. 62 (c) Care is coordinated or integrated across all areas of 63 health service delivery. 64 (d) Information technology is integrated into delivery 65 systems to enhance clinical performance and monitor patient 66 outcomes. 67 (2) DEFINITIONS.—As used in this section, the term: 68 (a) “Case manager” means the person or persons employed by 69 a medical home network or by a member of the network to work 70 with primary care providers in the delivery of outreach, support 71 services, and care coordination for medical home patients. 72 (b) “Medical home network” means a group of primary care 73 providers and other health professionals and facilities who 74 agree to cooperate with one another in order to coordinate care 75 for Medicaid beneficiaries assigned to primary care providers in 76 the network. 77 (c) “Primary care provider” means a federally qualified 78 health center or a health professional practicing in the field 79 of family medicine, general internal medicine, geriatric 80 medicine, or pediatric medicine who is licensed as a physician 81 under chapter 458 or chapter 459, a physician’s assistant 82 performing services delegated by a supervising physician 83 pursuant to s. 458.347 or s. 459.022, or a registered nurse 84 certified as a nurse practitioner performing services pursuant 85 to a protocol established with a supervising physician in 86 accordance with s. 464.012. 87 (d) “Principal network provider” means a member of a 88 medical home network who serves as the principal liaison between 89 the agency and that network and who accepts responsibility for 90 communicating the agency’s directives concerning the project to 91 all other network members. 92 (e) “Tier One medical home” means a primary care provider 93 designated by the agency as meeting the service capabilities 94 established in paragraph (4)(a). 95 (f) “Tier Two medical home” means a primary care provider 96 designated by the agency as meeting the service capabilities 97 established in paragraph (4)(b). 98 (g) “Tier Three medical home” means a primary care provider 99 designated by the agency as meeting the service capabilities 100 established in paragraph (4)(c). 101 (3) ORGANIZATION.— 102 (a) Each participating primary care provider shall be a 103 member of a medical home network and shall be designated by the 104 agency as a Tier One, Tier Two, or Tier Three medical home upon 105 certification by the provider of compliance with the service 106 capabilities for that tier. 107 (b) The members of each medical home network shall 108 designate a principal network provider who shall be responsible 109 for maintaining an accurate list of participating providers, 110 forwarding this list to the agency and updating the list as 111 requested by the agency, and facilitating communication between 112 the agency and the participating providers. 113 (4) SERVICE CAPABILITIES.—A medical home network shall 114 provide primary care, coordinate services to control chronic 115 illnesses, provide or arrange for pharmacy services, provide or 116 arrange for outpatient diagnostic and specialty physician 117 services, and provide for or coordinate with inpatient 118 facilities and rehabilitative service providers. 119 (a) Tier One medical homes shall have the capability to: 120 1. Maintain a written copy of the mutual agreement between 121 the medical home and the patient in the patient’s medical 122 record. 123 2. Supply all medically necessary primary and preventive 124 services and provide all scheduled immunizations. 125 3. Organize clinical data in paper or electronic form using 126 a patient-centered charting system. 127 4. Maintain and update patients’ medication lists and 128 review all medications during each office visit. 129 5. Maintain a system to track diagnostic tests and provide 130 followup services regarding test results. 131 6. Maintain a system to track referrals, including self 132 referrals by members. 133 7. Supply care coordination and continuity of care through 134 proactive contact with members and encourage family 135 participation in care. 136 8. Supply education and support using various materials and 137 processes appropriate for individual patient needs. 138 (b) Tier Two medical homes shall have all of the 139 capabilities of a Tier One medical home and shall have the 140 additional capability to: 141 1. Communicate electronically. 142 2. Supply voice-to-voice telephone coverage to panel 143 members 24 hours per day, 7 days per week, to enable patients to 144 speak to a licensed health care professional who triages and 145 forwards calls, as appropriate. 146 3. Maintain an office schedule of at least 30 scheduled 147 hours per week. 148 4. Use scheduling processes to promote continuity with 149 clinicians, including providing care for walk-in, routine, and 150 urgent care visits. 151 5. Implement and document behavioral health and substance 152 abuse screening procedures and make referrals as needed. 153 6. Use data to identify and track patients’ health and 154 service use patterns. 155 7. Coordinate care and followup for patients receiving 156 services in inpatient and outpatient facilities. 157 8. Implement processes to promote access to care and member 158 communication. 159 (c) Tier Three medical homes shall have all of the 160 capabilities of Tier One and Tier Two medical homes and shall 161 have the additional capability to: 162 1. Maintain electronic medical records. 163 2. Develop a health care team that provides ongoing 164 support, oversight, and guidance for all medical care received 165 by the patient and documents contact with specialists and other 166 health care providers caring for the patient. 167 3. Supply postvisit followup care for patients. 168 4. Implement specific evidence-based clinical practice 169 guidelines for preventive and chronic care. 170 5. Implement a medication reconciliation procedure to avoid 171 interactions or duplications. 172 6. Use personalized screening, brief intervention, and 173 referral to treatment procedures for appropriate patients 174 requiring specialty treatment. 175 7. Offer at least 4 hours per week of after-hours care to 176 patients. 177 8. Use health assessment tools to identify patient needs 178 and risks. 179 (5) TASK FORCE; ADVISORY PANEL.— 180 (a) The Secretary of Health Care Administration shall 181 appoint a task force by August 1, 2009, to assist the agency in 182 the development and implementation of the medical home pilot 183 project. The task force must include, but is not limited to, 184 representatives of providers who could potentially participate 185 in a medical home network, Medicaid recipients, and existing 186 MediPass and managed care providers. Members of the task force 187 shall serve without compensation but are entitled to 188 reimbursement for per diem and travel expenses as provided in s. 189 112.061. When the statewide advisory panel created pursuant to 190 paragraph (b) has been appointed, the task force shall dissolve. 191 (b) A statewide advisory panel shall be established to 192 advise the agency on the development and implementation of the 193 medical home pilot project and to promote communication among 194 medical home networks. The panel shall consist of seven members, 195 who shall be appointed as follows: 196 1. Two members appointed by the Speaker of the House of 197 Representatives, one of whom shall be a primary care physician 198 licensed under chapter 458 or chapter 459 and one of whom shall 199 be a representative of a hospital licensed under chapter 395. 200 2. Two members appointed by the President of the Senate, 201 one of whom shall be a physician licensed under chapter 458 or 202 chapter 459 who is a board-certified specialist and one of whom 203 shall be a representative of a Florida medical school. 204 3. Two members appointed by the Governor, one of whom shall 205 be a representative of a Florida-licensed insurer or a health 206 maintenance organization and one of whom shall be a 207 representative of Medicaid consumers. 208 4. The Secretary of Health Care Administration or his or 209 her designee. 210 (c) Members of the statewide advisory panel shall serve 211 without compensation but may be reimbursed for per diem and 212 travel expenses as provided in s. 112.061. 213 (d) The agency shall provide staff support to assist the 214 panel in the performance of its duties. 215 (e) The statewide advisory panel shall establish a medical 216 advisory group consisting of physicians licensed under chapter 217 458 or chapter 459 who shall act as ambassadors to their 218 communities for the promotion of and assistance in the 219 establishment of medical home networks. Members of the medical 220 advisory group shall serve without compensation, but are 221 entitled to reimbursement for per diem and travel expenses as 222 provided in s. 112.061. 223 (6) ENROLLMENT.—Each Medipass beneficiary served by a 224 designated Tier One, Tier Two, or Tier Three medical home shall 225 be given a choice to enroll in a medical home network. 226 Enrollment shall be effective upon the agency’s receipt of a 227 participation agreement signed by the beneficiary. 228 (7) PRIORITY AREAS.—The agency may designate primary care 229 providers in any area of the state in which Medipass operates 230 and shall identify priority areas for the development of medical 231 home networks based on an analysis of emergency department use 232 and rates of hospitalization for ambulatory care-sensitive 233 conditions. In these priority areas, the agency shall conduct 234 outreach to Medicaid primary care providers to explain the 235 medical home network model and encourage participation in the 236 pilot project. At least one medical home shall be designated in 237 each priority area by October 1, 2010. 238 (8) FINANCING.— 239 (a) Subject to a specific appropriation provided for in the 240 General Appropriations Act, medical home network members shall 241 be eligible to receive an enhanced case management fee. The Tier 242 One medical homes shall receive a base fee equal to 110 percent 243 of the standard Medipass case management fee. Tier Two medical 244 homes shall receive a base fee equal to 130 percent of the 245 enhanced fee for Tier One medical homes. Tier Three medical 246 homes shall receive a base fee equal to 200 percent of the 247 enhanced fee for Tier One medical homes. The base fee for each 248 tier shall be adjusted based on the age, gender, and eligibility 249 of the enrollees. 250 (b) Services provided by a medical home network shall be 251 reimbursed based on claims filed for Medicaid fee-for-service 252 payments. 253 (c) Any hospital, as defined in s. 395.002(12), 254 participating in a medical home network and employing case 255 managers for the network shall be eligible to receive a credit 256 against the assessment imposed under s. 395.701. The credit is 257 compensation for participating in the medical home network by 258 providing case management and other medical home network 259 services. 260 1. The credit shall be prorated based on the number of 261 full-time equivalent case managers hired but shall not be less 262 than $75,000 for each full-time equivalent case manager. The 263 total credit may not exceed $450,000 for any hospital for any 264 state fiscal year. 265 2. To qualify for the credit, the hospital must employ each 266 full-time equivalent case manager for the entire hospital fiscal 267 year for which the credit is claimed. 268 3. The hospital must certify the number of full-time 269 equivalent case managers for whom it is entitled to a credit 270 using the certification process required under s. 395.701(2)(a). 271 4. The agency shall calculate the amount of the credit and 272 reduce the certified assessment for the hospital by the amount 273 of the credit. 274 (d) The enhanced payments to primary care providers shall 275 not affect the calculation of capitated rates under this 276 chapter. 277 (9) AGENCY DUTIES; RULEMAKING AUTHORITY.– 278 (a) The agency shall: 279 1. Designate primary care providers as Tier One, Tier Two, 280 or Tier Three medical homes consistent with the principles and 281 applicable service capabilities of each primary care provider as 282 provided in subsections (1) and (4). 283 2. Develop a standard form to assess the implementation of 284 the principles and service capabilities of each medical home 285 tier as provided in subsections (1) and (4) to be executed by 286 primary care providers in certifying to the agency that they 287 meet the necessary principles and service capabilities for the 288 tier in which they seek to be designated. 289 3. Base any alternative payment rates and methods that may 290 be established for medical homes on quality indicators that 291 demonstrate improved patient outcomes compared to the Medicaid 292 fee-for-service system, such as reductions in hospitalizations 293 due to preventable causes, readmission rates, or emergency 294 department use rates and efficiencies in the form of savings 295 associated with these and other quality indicators. 296 4. Develop a process for designating as Tier One, Tier Two, 297 or Tier Three medical home managed care organizations that 298 establish policies and procedures consistent with the principles 299 and corresponding service capabilities provided for in 300 subsections (1) and (4) and provide documentation that such 301 policies and procedures have been implemented. 302 5. Establish a participation agreement to be executed by 303 Medipass recipients who choose to participate in the medical 304 home pilot project. 305 6. Analyze spending for enrolled medical home network 306 patients compared to capitation rates that would have been paid 307 for these medical home patients if they had been assigned to a 308 prepaid health plan. The agency shall report the aggregated 309 results of this comparison to the Social Services Estimating 310 Conference. 311 7. Report and publish medical home network financial 312 performance on a quarterly basis. Annual assessments of spending 313 pursuant to subparagraph 6. shall be submitted to the President 314 of the Senate and the Speaker of the House of Representatives by 315 March 1, 2011, February 1, 2012, and February 1, 2013. 316 8. Report community network utilization performance. The 317 agency shall contract with the University of South Florida to 318 evaluate the use and determine any change in the use of 319 emergency departments, in-hospital care, and pharmaceuticals by 320 patients in the medical home pilot project. An initial 321 assessment of the utilization performance shall be submitted to 322 the President of the Senate and the Speaker of the House of 323 Representatives by March 1, 2011. 324 (b) The agency shall adopt any rules necessary for the 325 implementation and administration of this section. 326 (10) ACHIEVED SAVINGS.—Each medical home network that 327 achieves savings equal to or greater than the spending that 328 would have occurred if its enrollees participated in prepaid 329 health plans is eligible to receive funding based on the 330 identified savings pursuant to a specific appropriation provided 331 for in the General Appropriations Act. The savings shall be 332 distributed as a multiplier to Medicaid fees paid to primary 333 care and principal network providers during the period of the 334 earned savings. Subject to a specific appropriation, it is the 335 intent of the Legislature that the savings that result from the 336 implementation of the medical home network model be used to 337 enable Medicaid fees to physicians participating in medical home 338 networks to be equivalent to 100 percent of Medicare rates as 339 soon as possible. 340 (11) COLLABORATION WITH PRIVATE INSURERS.—To enable the 341 state to participate in federal gainsharing initiatives, the 342 agency shall collaborate with the Office of Insurance Regulation 343 to encourage Florida-licensed insurers to incorporate medical 344 home network principles in the design of their individual and 345 employment-based plans. The Department of Management Services is 346 directed to develop a medical home option in the state group 347 insurance program. 348 (12) QUALITY ASSURANCE AND ACCOUNTABILITY.—Each primary 349 care and principal network provider participating in a medical 350 home network shall maintain medical records and clinical data 351 necessary to assess the use, cost, and outcome of services 352 provided to enrollees. 353 Section 2. This act shall take effect July 1, 2010.