Florida Senate - 2011                             CS for SB 1922
       
       
       
       By the Committee on Banking and Insurance; and Senator Garcia
       
       
       
       
       597-04914-11                                          20111922c1
    1                        A bill to be entitled                      
    2         An act relating to health and human services; amending
    3         s. 408.910, F.S.; providing and revising definitions;
    4         revising eligibility requirements for participation in
    5         the Florida Health Choices Program; providing that
    6         statutory rural hospitals are eligible as employers
    7         rather than participants under the program; permitting
    8         specified eligible vendors to sell health maintenance
    9         contracts or products and services; requiring certain
   10         risk-bearing products offered by insurers to be
   11         approved by the Office of Insurance Regulation;
   12         providing requirements for product certification;
   13         providing duties of the Florida Health Choices, Inc.,
   14         including maintenance of a toll-free telephone hotline
   15         to respond to requests for assistance; providing for
   16         enrollment periods; providing for certain risk pooling
   17         data used by the corporation to be reported annually;
   18         amending s. 409.821, F.S.; authorizing personal
   19         identifying information of a Florida Kidcare program
   20         applicant to be disclosed to the Florida Health
   21         Choices, Inc., to administer the program; amending s.
   22         409.912, F.S.; requiring the Agency for Health Care
   23         Administration to establish a demonstration project in
   24         Miami-Dade County of a long-term-care facility and a
   25         psychiatric facility to improve access to health care
   26         by medically underserved persons; providing an
   27         effective date.
   28  
   29  Be It Enacted by the Legislature of the State of Florida:
   30  
   31         Section 1. Section 408.910, Florida Statutes, is amended to
   32  read:
   33         408.910 Florida Health Choices Program.—
   34         (1) LEGISLATIVE INTENT.—The Legislature finds that a
   35  significant number of the residents of this state do not have
   36  adequate access to affordable, quality health care. The
   37  Legislature further finds that increasing access to affordable,
   38  quality health care can be best accomplished by establishing a
   39  competitive market for purchasing health insurance and health
   40  services. It is therefore the intent of the Legislature to
   41  create the Florida Health Choices Program to:
   42         (a) Expand opportunities for Floridians to purchase
   43  affordable health insurance and health services.
   44         (b) Preserve the benefits of employment-sponsored insurance
   45  while easing the administrative burden for employers who offer
   46  these benefits.
   47         (c) Enable individual choice in both the manner and amount
   48  of health care purchased.
   49         (d) Provide for the purchase of individual, portable health
   50  care coverage.
   51         (e) Disseminate information to consumers on the price and
   52  quality of health services.
   53         (f) Sponsor a competitive market that stimulates product
   54  innovation, quality improvement, and efficiency in the
   55  production and delivery of health services.
   56         (2) DEFINITIONS.—As used in this section, the term:
   57         (a) “Corporation” means the Florida Health Choices, Inc.,
   58  established under this section.
   59         (b) “Corporation’s marketplace” means the single,
   60  centralized market established by the program which facilitates
   61  the purchase of products made available in the marketplace.
   62         (c)(b) “Health insurance agent” means an agent licensed
   63  under part IV of chapter 626.
   64         (d)(c) “Insurer” means an entity licensed under chapter 624
   65  which offers an individual health insurance policy or a group
   66  health insurance policy, a preferred provider organization as
   67  defined in s. 627.6471, or an exclusive provider organization as
   68  defined in s. 627.6472, a health maintenance organization
   69  licensed under part I of chapter 641, or a prepaid limited
   70  health service organization or discount medical plan
   71  organization licensed under chapter 636.
   72         (e)(d) “Program” means the Florida Health Choices Program
   73  established by this section.
   74         (3) PROGRAM PURPOSE AND COMPONENTS.—The Florida Health
   75  Choices Program is created as a single, centralized market for
   76  the sale and purchase of various products that enable
   77  individuals to pay for health care. These products include, but
   78  are not limited to, health insurance plans, health maintenance
   79  organization plans, prepaid services, service contracts, and
   80  flexible spending accounts. The components of the program
   81  include:
   82         (a) Enrollment of employers.
   83         (b) Administrative services for participating employers,
   84  including:
   85         1. Assistance in seeking federal approval of cafeteria
   86  plans.
   87         2. Collection of premiums and other payments.
   88         3. Management of individual benefit accounts.
   89         4. Distribution of premiums to insurers and payments to
   90  other eligible vendors.
   91         5. Assistance for participants in complying with reporting
   92  requirements.
   93         (c) Services to individual participants, including:
   94         1. Information about available products and participating
   95  vendors.
   96         2. Assistance with assessing the benefits and limits of
   97  each product, including information necessary to distinguish
   98  between policies offering creditable coverage and other products
   99  available through the program.
  100         3. Account information to assist individual participants
  101  with managing available resources.
  102         4. Services that promote healthy behaviors.
  103         (d) Recruitment of vendors, including insurers, health
  104  maintenance organizations, prepaid clinic service providers,
  105  provider service networks, and other providers.
  106         (e) Certification of vendors to ensure capability,
  107  reliability, and validity of offerings.
  108         (f) Collection of data, monitoring, assessment, and
  109  reporting of vendor performance.
  110         (g) Information services for individuals and employers.
  111         (h) Program evaluation.
  112         (4) ELIGIBILITY AND PARTICIPATION.—Participation in the
  113  program is voluntary and is shall be available to employers,
  114  individuals, vendors, and health insurance agents as specified
  115  in this subsection.
  116         (a) Employers eligible to enroll in the program include:
  117         1. Employers that meet criteria established by the
  118  corporation and elect to make their employees eligible for one
  119  or more health products offered through the program have 1 to 50
  120  employees.
  121         2. Fiscally constrained counties described in s. 218.67.
  122         3. Municipalities having populations of fewer than 50,000
  123  residents.
  124         4. School districts in fiscally constrained counties.
  125         5. Statutory rural hospitals.
  126         (b) Individuals eligible to participate in the program
  127  include:
  128         1. Individual employees of enrolled employers.
  129         2. State employees not eligible for state employee health
  130  benefits.
  131         3. State retirees.
  132         4. Medicaid reform participants who opt out select the opt
  133  out provision of reform.
  134         5. Statutory rural hospitals.
  135         (c) Employers who choose to participate in the program may
  136  enroll by complying with the procedures established by the
  137  corporation. The procedures must include, but are not limited
  138  to:
  139         1. Submission of required information.
  140         2. Compliance with federal tax requirements for the
  141  establishment of a cafeteria plan, pursuant to s. 125 of the
  142  Internal Revenue Code, including designation of the employer’s
  143  plan as a premium payment plan, a salary reduction plan that has
  144  flexible spending arrangements, or a salary reduction plan that
  145  has a premium payment and flexible spending arrangements.
  146         3. Determination of the employer’s contribution, if any,
  147  per employee, provided that such contribution is equal for each
  148  eligible employee.
  149         4. Establishment of payroll deduction procedures, subject
  150  to the agreement of each individual employee who voluntarily
  151  participates in the program.
  152         5. Designation of the corporation as the third-party
  153  administrator for the employer’s health benefit plan.
  154         6. Identification of eligible employees.
  155         7. Arrangement for periodic payments.
  156         8. Employer notification to employees of the intent to
  157  transfer from an existing employee health plan to the program at
  158  least 90 days before the transition.
  159         (d) All eligible vendors who choose to participate and the
  160  products and services that the vendors are permitted to sell are
  161  as follows:
  162         1. Insurers licensed under chapter 624 may sell health
  163  insurance policies, limited benefit policies, other risk-bearing
  164  coverage, and other products or services.
  165         2. Health maintenance organizations licensed under part I
  166  of chapter 641 may sell health maintenance contracts insurance
  167  policies, limited benefit policies, other risk-bearing products,
  168  and other products or services.
  169         3. Prepaid limited health service organizations may sell
  170  products and services as authorized under part I of chapter 636,
  171  and discount medical plan organizations may sell products and
  172  services as authorized under part II of chapter 636.
  173         4.3. Prepaid health clinic service providers licensed under
  174  part II of chapter 641 may sell prepaid service contracts and
  175  other arrangements for a specified amount and type of health
  176  services or treatments.
  177         5.4. Health care providers, including hospitals and other
  178  licensed health facilities, health care clinics, licensed health
  179  professionals, pharmacies, and other licensed health care
  180  providers, may sell service contracts and arrangements for a
  181  specified amount and type of health services or treatments.
  182         6.5. Provider organizations, including service networks,
  183  group practices, professional associations, and other
  184  incorporated organizations of providers, may sell service
  185  contracts and arrangements for a specified amount and type of
  186  health services or treatments.
  187         7.6. Corporate entities providing specific health services
  188  in accordance with applicable state law may sell service
  189  contracts and arrangements for a specified amount and type of
  190  health services or treatments.
  191  
  192  A vendor described in subparagraphs 4.-7. 3.-6. may not sell
  193  products that provide risk-bearing coverage unless that vendor
  194  is authorized under a certificate of authority issued by the
  195  Office of Insurance Regulation and is authorized to provide
  196  coverage in the relevant geographic area under the provisions of
  197  the Florida Insurance Code. Otherwise eligible vendors may be
  198  excluded from participating in the program for deceptive or
  199  predatory practices, financial insolvency, or failure to comply
  200  with the terms of the participation agreement or other standards
  201  set by the corporation.
  202         (e) Any risk-bearing product available under subparagraphs
  203  (d)1.-4. must be approved by the Office of Insurance Regulation.
  204  Any non-risk-bearing product must be approved by the
  205  corporation.
  206         (f)(e) Eligible individuals may voluntarily continue
  207  participation in the program regardless of subsequent changes in
  208  job status or Medicaid eligibility. Individuals who join the
  209  program may participate by complying with the procedures
  210  established by the corporation. These procedures must include,
  211  but are not limited to:
  212         1. Submission of required information.
  213         2. Authorization for payroll deduction.
  214         3. Compliance with federal tax requirements.
  215         4. Arrangements for payment in the event of job changes.
  216         5. Selection of products and services.
  217         (g)(f) Vendors who choose to participate in the program may
  218  enroll by complying with the procedures established by the
  219  corporation. These procedures may must include, but are not
  220  limited to:
  221         1. Submission of required information, including a complete
  222  description of the coverage, services, provider network, payment
  223  restrictions, and other requirements of each product offered
  224  through the program.
  225         2. Execution of an agreement that to make all risk-bearing
  226  products offered through the program are in compliance with the
  227  insurance code and are guaranteed-issue policies, subject to
  228  preexisting condition exclusions established by the corporation.
  229         3. Execution of an agreement that prohibits refusal to sell
  230  any offered non-risk-bearing product to a participant who elects
  231  to buy it.
  232         4. Establishment of product prices based on age, gender,
  233  family composition, and location of the individual participant,
  234  which may include medical underwriting.
  235         5. Arrangements for receiving payment for enrolled
  236  participants.
  237         6. Participation in ongoing reporting processes established
  238  by the corporation.
  239         7. Compliance with grievance procedures established by the
  240  corporation.
  241         (h)(g) Health insurance agents licensed under part IV of
  242  chapter 626 are eligible to voluntarily participate as buyers’
  243  representatives. A buyer’s representative acts on behalf of an
  244  individual purchasing health insurance and health services
  245  through the program by providing information about products and
  246  services available through the program and assisting the
  247  individual with both the decision and the procedure of selecting
  248  specific products. Serving as a buyer’s representative does not
  249  constitute a conflict of interest with continuing
  250  responsibilities as a health insurance agent if the relationship
  251  between each agent and any participating vendor is disclosed
  252  before advising an individual participant about the products and
  253  services available through the program. In order to participate,
  254  a health insurance agent shall comply with the procedures
  255  established by the corporation, including:
  256         1. Completion of training requirements.
  257         2. Execution of a participation agreement specifying the
  258  terms and conditions of participation.
  259         3. Disclosure of any appointments to solicit insurance or
  260  procure applications for vendors participating in the program.
  261         4. Arrangements to receive payment from the corporation for
  262  services as a buyer’s representative.
  263         (5) PRODUCTS.—
  264         (a) The products that may be made available for purchase
  265  through the program include, but are not limited to:
  266         1. Health insurance policies.
  267         2. Limited benefit plans.
  268         3. Prepaid clinic services.
  269         4. Service contracts.
  270         5. Arrangements for purchase of specific amounts and types
  271  of health services and treatments.
  272         6. Flexible spending accounts.
  273         7. Health maintenance contracts.
  274         (b) Health insurance policies, health maintenance
  275  contracts, limited benefit plans, prepaid service contracts, and
  276  other contracts for services must ensure the availability of
  277  covered services and benefits to participating individuals for
  278  at least 1 full enrollment year.
  279         (c) Products may be offered for multiyear periods provided
  280  the price of the product is specified for the entire period or
  281  for each separately priced segment of the policy or contract.
  282         (d) The corporation shall provide a disclosure form for
  283  consumers to acknowledge their understanding of the nature of,
  284  and any limitations to, the benefits provided by the products
  285  and services being purchased by the consumer.
  286         (e) The corporation must determine that making the plan
  287  available through the program is in the interest of eligible
  288  individuals and eligible employers in the state.
  289         (6) PRICING.—Prices for the products sold through the
  290  program must be transparent to participants and established by
  291  the vendors. Risk-bearing products approved by the Office of
  292  Insurance Regulation must be priced pursuant to state law
  293  governing the rates of insurance product based on age, gender,
  294  and location of participants. The corporation shall develop a
  295  methodology for evaluating the actuarial soundness of products
  296  offered through the program. The methodology shall be reviewed
  297  by the Office of Insurance Regulation prior to use by the
  298  corporation. Before making the product available to individual
  299  participants, the corporation shall use the methodology to
  300  compare the expected health care costs for the covered services
  301  and benefits to the vendor’s price for that coverage. The
  302  results shall be reported to individuals participating in the
  303  program. Once established, the price set by the vendor must
  304  remain in force for at least 1 year and may only be redetermined
  305  by the vendor at the next annual enrollment period. The
  306  corporation shall annually assess a surcharge for each premium
  307  or price set by a participating vendor. The surcharge may not be
  308  more than 2.5 percent of the price and shall be used to generate
  309  funding for administrative services provided by the corporation
  310  and payments to buyers’ representatives.
  311         (7) MARKETPLACE EXCHANGE PROCESS.—The program shall provide
  312  a single, centralized market for purchase of health insurance,
  313  health maintenance contracts, and other health products and
  314  services. Purchases may be made by participating individuals
  315  over the Internet or through the services of a participating
  316  health insurance agent. Information about each product and
  317  service available through the program shall be made available
  318  through printed material and an interactive Internet website. A
  319  participant needing personal assistance to select products and
  320  services shall be referred to a participating agent in his or
  321  her area.
  322         (a) Participation in the program may begin at any time
  323  during a year after the employer completes enrollment and meets
  324  the requirements specified by the corporation pursuant to
  325  paragraph (4)(c).
  326         (b) Initial selection of products and services must be made
  327  by an individual participant within 60 days after the date the
  328  individual’s employer qualified for participation. An individual
  329  who fails to enroll in products and services by the end of this
  330  period is limited to participation in flexible spending account
  331  services until the next annual enrollment period.
  332         (c) Initial enrollment periods for each product selected by
  333  an individual participant must last at least 12 months, unless
  334  the individual participant specifically agrees to a different
  335  enrollment period.
  336         (d) If an individual has selected one or more products and
  337  enrolled in those products for at least 12 months or any other
  338  period specifically agreed to by the individual participant,
  339  changes in selected products and services may only be made
  340  during the annual enrollment period established by the
  341  corporation.
  342         (e) The limits established in paragraphs (b)-(d) apply to
  343  any risk-bearing product that promises future payment or
  344  coverage for a variable amount of benefits or services. The
  345  limits do not apply to initiation of flexible spending plans if
  346  those plans are not associated with specific high-deductible
  347  insurance policies or the use of spending accounts for any
  348  products offering individual participants specific amounts and
  349  types of health services and treatments at a contracted price.
  350         (8) CONSUMER INFORMATION.—The corporation shall:
  351         (a) Establish a secure website to facilitate the purchase
  352  of products and services by participating individuals. The
  353  website must provide information about each product or service
  354  available through the program.
  355         (b) Inform individuals about other public health care
  356  programs.
  357         (a) Prior to making a risk-bearing product available
  358  through the program, the corporation shall provide information
  359  regarding the product to the Office of Insurance Regulation. The
  360  office shall review the product information and provide consumer
  361  information and a recommendation on the risk-bearing product to
  362  the corporation within 30 days after receiving the product
  363  information.
  364         1. Upon receiving a recommendation that a risk-bearing
  365  product should be made available in the marketplace, the
  366  corporation may include the product on its website. If the
  367  consumer information and recommendation is not received within
  368  30 days, the corporation may make the risk-bearing product
  369  available on the website without consumer information from the
  370  office.
  371         2. Upon receiving a recommendation that a risk-bearing
  372  product should not be made available in the marketplace, the
  373  risk-bearing product may be included as an eligible product in
  374  the marketplace and on its website only if a majority of the
  375  board of directors vote to include the product.
  376         (b) If a risk-bearing product is made available on the
  377  website, the corporation shall make the consumer information and
  378  office recommendation available on the website and in print
  379  format. The corporation shall make late-submitted and ongoing
  380  updates to consumer information available on the website and in
  381  print format.
  382         (9) RISK POOLING.—The program may use shall utilize methods
  383  for pooling the risk of individual participants and preventing
  384  selection bias. These methods may shall include, but are not
  385  limited to, a postenrollment risk adjustment of the premium
  386  payments to the vendors. The corporation may shall establish a
  387  methodology for assessing the risk of enrolled individual
  388  participants based on data reported annually by the vendors
  389  about their enrollees. Distribution Monthly distributions of
  390  payments to the vendors may shall be adjusted based on the
  391  assessed relative risk profile of the enrollees in each risk
  392  bearing product for the most recent period for which data is
  393  available.
  394         (10) EXEMPTIONS.—
  395         (a) Products, other than the risk-bearing products set
  396  forth in subparagraph (4)(d)1.-4., Policies sold as part of the
  397  program are not subject to the licensing requirements of the
  398  Florida Insurance Code, as defined in s. 624.01 chapter 641, or
  399  the mandated offerings or coverages established in part VI of
  400  chapter 627 and chapter 641.
  401         (b) The corporation may act as an administrator as defined
  402  in s. 626.88 but is not required to be certified pursuant to
  403  part VII of chapter 626. However, a third party administrator
  404  used by the corporation must be certified under part VII of
  405  chapter 626.
  406         (11) CORPORATION.—There is created the Florida Health
  407  Choices, Inc., which shall be registered, incorporated,
  408  organized, and operated in compliance with part III of chapter
  409  112 and chapters 119, 286, and 617. The purpose of the
  410  corporation is to administer the program created in this section
  411  and to conduct such other business as may further the
  412  administration of the program.
  413         (a) The corporation shall be governed by a 15-member board
  414  of directors consisting of:
  415         1. Three ex officio, nonvoting members to include:
  416         a. The Secretary of Health Care Administration or a
  417  designee with expertise in health care services.
  418         b. The Secretary of Management Services or a designee with
  419  expertise in state employee benefits.
  420         c. The commissioner of the Office of Insurance Regulation
  421  or a designee with expertise in insurance regulation.
  422         2. Four members appointed by and serving at the pleasure of
  423  the Governor.
  424         3. Four members appointed by and serving at the pleasure of
  425  the President of the Senate.
  426         4. Four members appointed by and serving at the pleasure of
  427  the Speaker of the House of Representatives.
  428         5. Board members may not include insurers, health insurance
  429  agents or brokers, health care providers, health maintenance
  430  organizations, prepaid service providers, or any other entity,
  431  affiliate or subsidiary of eligible vendors.
  432         (b) Members shall be appointed for terms of up to 3 years.
  433  Any member is eligible for reappointment. A vacancy on the board
  434  shall be filled for the unexpired portion of the term in the
  435  same manner as the original appointment.
  436         (c) The board shall select a chief executive officer for
  437  the corporation who shall be responsible for the selection of
  438  such other staff as may be authorized by the corporation’s
  439  operating budget as adopted by the board.
  440         (d) Board members are entitled to receive, from funds of
  441  the corporation, reimbursement for per diem and travel expenses
  442  as provided by s. 112.061. No other compensation is authorized.
  443         (e) There is no liability on the part of, and no cause of
  444  action shall arise against, any member of the board or its
  445  employees or agents for any action taken by them in the
  446  performance of their powers and duties under this section.
  447         (f) The board shall develop and adopt bylaws and other
  448  corporate procedures as necessary for the operation of the
  449  corporation and carrying out the purposes of this section. The
  450  bylaws shall:
  451         1. Specify procedures for selection of officers and
  452  qualifications for reappointment, provided that no board member
  453  shall serve more than 9 consecutive years.
  454         2. Require an annual membership meeting that provides an
  455  opportunity for input and interaction with individual
  456  participants in the program.
  457         3. Specify policies and procedures regarding conflicts of
  458  interest, including the provisions of part III of chapter 112,
  459  which prohibit a member from participating in any decision that
  460  would inure to the benefit of the member or the organization
  461  that employs the member. The policies and procedures shall also
  462  require public disclosure of the interest that prevents the
  463  member from participating in a decision on a particular matter.
  464         (g) The corporation may exercise all powers granted to it
  465  under chapter 617 necessary to carry out the purposes of this
  466  section, including, but not limited to, the power to receive and
  467  accept grants, loans, or advances of funds from any public or
  468  private agency and to receive and accept from any source
  469  contributions of money, property, labor, or any other thing of
  470  value to be held, used, and applied for the purposes of this
  471  section.
  472         (h) The corporation may establish technical advisory panels
  473  consisting of interested parties, including consumers, health
  474  care providers, individuals with expertise in insurance
  475  regulation, and insurers.
  476         (i) The corporation shall:
  477         1. Determine eligibility of employers, vendors,
  478  individuals, and agents in accordance with subsection (4).
  479         2. Establish procedures necessary for the operation of the
  480  program, including, but not limited to, procedures for
  481  application, enrollment, risk assessment, risk adjustment, plan
  482  administration, performance monitoring, and consumer education.
  483         3. Arrange for collection of contributions from
  484  participating employers and individuals.
  485         4. Arrange for payment of premiums and other appropriate
  486  disbursements based on the selections of products and services
  487  by the individual participants.
  488         5. Establish criteria for disenrollment of participating
  489  individuals based on failure to pay the individual’s share of
  490  any contribution required to maintain enrollment in selected
  491  products.
  492         6. Establish criteria for exclusion of vendors pursuant to
  493  paragraph (4)(d).
  494         7. Develop and implement a plan for promoting public
  495  awareness of and participation in the program.
  496         8. Secure staff and consultant services necessary to the
  497  operation of the program.
  498         9. Establish policies and procedures regarding
  499  participation in the program for individuals, vendors, health
  500  insurance agents, and employers.
  501         10. Provide for the operation of a toll-free hotline to
  502  respond to requests for assistance.
  503         11. Provide for initial, open, and special enrollment
  504  periods not to exceed 60 days.
  505         12. Establish options for employer participation which may
  506  conform with common insurance practices.
  507         10. Develop a plan, in coordination with the Department of
  508  Revenue, to establish tax credits or refunds for employers that
  509  participate in the program. The corporation shall submit the
  510  plan to the Governor, the President of the Senate, and the
  511  Speaker of the House of Representatives by January 1, 2009.
  512         (12) REPORT.—Beginning in the 2009-2010 fiscal year, submit
  513  by February 1 an annual report to the Governor, the President of
  514  the Senate, and the Speaker of the House of Representatives
  515  documenting the corporation’s activities in compliance with the
  516  duties delineated in this section.
  517         (13) PROGRAM INTEGRITY.—To ensure program integrity and to
  518  safeguard the financial transactions made under the auspices of
  519  the program, the corporation is authorized to establish
  520  qualifying criteria and certification procedures for vendors,
  521  require performance bonds or other guarantees of ability to
  522  complete contractual obligations, monitor the performance of
  523  vendors, and enforce the agreements of the program through
  524  financial penalty or disqualification from the program.
  525         Section 2. Section 409.821, Florida Statutes, is amended to
  526  read:
  527         409.821 Florida Kidcare program public records exemption.—
  528         (1) Personal identifying information of a Florida Kidcare
  529  program applicant or enrollee, as defined in s. 409.811, held by
  530  the Agency for Health Care Administration, the Department of
  531  Children and Family Services, the Department of Health, or the
  532  Florida Healthy Kids Corporation is confidential and exempt from
  533  s. 119.07(1) and s. 24(a), Art. I of the State Constitution.
  534         (2)(a) Upon request, such information shall be disclosed
  535  to:
  536         1. Another governmental entity in the performance of its
  537  official duties and responsibilities;
  538         2. The Department of Revenue for purposes of administering
  539  the state Title IV-D program; or
  540         3. The Florida Health Choices, Inc., for the purpose of
  541  administering the program authorized pursuant to s. 408.910; or
  542         4.3. Any person who has the written consent of the program
  543  applicant.
  544         (b) This section does not prohibit an enrollee’s legal
  545  guardian from obtaining confirmation of coverage, dates of
  546  coverage, the name of the enrollee’s health plan, and the amount
  547  of premium being paid.
  548         (3) This exemption applies to any information identifying a
  549  Florida Kidcare program applicant or enrollee held by the Agency
  550  for Health Care Administration, the Department of Children and
  551  Family Services, the Department of Health, or the Florida
  552  Healthy Kids Corporation before, on, or after the effective date
  553  of this exemption.
  554         (4) A knowing and willful violation of this section is a
  555  misdemeanor of the second degree, punishable as provided in s.
  556  775.082 or s. 775.083.
  557         Section 3. Subsection (41) of section 409.912, Florida
  558  Statutes, is amended to read:
  559         409.912 Cost-effective purchasing of health care.—The
  560  agency shall purchase goods and services for Medicaid recipients
  561  in the most cost-effective manner consistent with the delivery
  562  of quality medical care. To ensure that medical services are
  563  effectively utilized, the agency may, in any case, require a
  564  confirmation or second physician’s opinion of the correct
  565  diagnosis for purposes of authorizing future services under the
  566  Medicaid program. This section does not restrict access to
  567  emergency services or poststabilization care services as defined
  568  in 42 C.F.R. part 438.114. Such confirmation or second opinion
  569  shall be rendered in a manner approved by the agency. The agency
  570  shall maximize the use of prepaid per capita and prepaid
  571  aggregate fixed-sum basis services when appropriate and other
  572  alternative service delivery and reimbursement methodologies,
  573  including competitive bidding pursuant to s. 287.057, designed
  574  to facilitate the cost-effective purchase of a case-managed
  575  continuum of care. The agency shall also require providers to
  576  minimize the exposure of recipients to the need for acute
  577  inpatient, custodial, and other institutional care and the
  578  inappropriate or unnecessary use of high-cost services. The
  579  agency shall contract with a vendor to monitor and evaluate the
  580  clinical practice patterns of providers in order to identify
  581  trends that are outside the normal practice patterns of a
  582  provider’s professional peers or the national guidelines of a
  583  provider’s professional association. The vendor must be able to
  584  provide information and counseling to a provider whose practice
  585  patterns are outside the norms, in consultation with the agency,
  586  to improve patient care and reduce inappropriate utilization.
  587  The agency may mandate prior authorization, drug therapy
  588  management, or disease management participation for certain
  589  populations of Medicaid beneficiaries, certain drug classes, or
  590  particular drugs to prevent fraud, abuse, overuse, and possible
  591  dangerous drug interactions. The Pharmaceutical and Therapeutics
  592  Committee shall make recommendations to the agency on drugs for
  593  which prior authorization is required. The agency shall inform
  594  the Pharmaceutical and Therapeutics Committee of its decisions
  595  regarding drugs subject to prior authorization. The agency is
  596  authorized to limit the entities it contracts with or enrolls as
  597  Medicaid providers by developing a provider network through
  598  provider credentialing. The agency may competitively bid single
  599  source-provider contracts if procurement of goods or services
  600  results in demonstrated cost savings to the state without
  601  limiting access to care. The agency may limit its network based
  602  on the assessment of beneficiary access to care, provider
  603  availability, provider quality standards, time and distance
  604  standards for access to care, the cultural competence of the
  605  provider network, demographic characteristics of Medicaid
  606  beneficiaries, practice and provider-to-beneficiary standards,
  607  appointment wait times, beneficiary use of services, provider
  608  turnover, provider profiling, provider licensure history,
  609  previous program integrity investigations and findings, peer
  610  review, provider Medicaid policy and billing compliance records,
  611  clinical and medical record audits, and other factors. Providers
  612  shall not be entitled to enrollment in the Medicaid provider
  613  network. The agency shall determine instances in which allowing
  614  Medicaid beneficiaries to purchase durable medical equipment and
  615  other goods is less expensive to the Medicaid program than long
  616  term rental of the equipment or goods. The agency may establish
  617  rules to facilitate purchases in lieu of long-term rentals in
  618  order to protect against fraud and abuse in the Medicaid program
  619  as defined in s. 409.913. The agency may seek federal waivers
  620  necessary to administer these policies.
  621         (41) The agency shall establish provide for the development
  622  of a demonstration project by establishment in Miami-Dade County
  623  of a long-term-care facility and a psychiatric facility licensed
  624  pursuant to chapter 395 to improve access to health care for a
  625  predominantly minority, medically underserved, and medically
  626  complex population and to evaluate alternatives to nursing home
  627  care and general acute care for such population. Such project is
  628  to be located in a health care condominium and collocated
  629  colocated with licensed facilities providing a continuum of
  630  care. These projects are The establishment of this project is
  631  not subject to the provisions of s. 408.036 or s. 408.039.
  632         Section 4. This act shall take effect July 1, 2011.