Florida Senate - 2011                                    SB 2144
       
       
       
       By the Committee on Budget
       
       
       
       
       576-03562-11                                          20112144__
    1                        A bill to be entitled                      
    2         An act relating to Medicaid; amending s. 409.904,
    3         F.S.; providing for funding the Medicaid reimbursement
    4         for certain persons age 65 or older while the optional
    5         program is being phased out; renaming the “medically
    6         needy” program as the “Medicaid nonpoverty medical
    7         subsidy”; limiting certain categories of persons
    8         eligible for the subsidy to only physician services
    9         after a certain date; amending s. 409.905, F.S.;
   10         deleting the hospitalist program; amending s. 409.908,
   11         F.S.; revising the factors for calculating the maximum
   12         allowable fee for pharmaceutical ingredient costs;
   13         directing the Agency for Health Care Administration to
   14         establish reimbursement rates for the next fiscal
   15         year; amending s. 409.9082, F.S.; revising the
   16         aggregated amount of the quality assessment for
   17         nursing home facilities; amending s. 409.911, F.S.;
   18         updating references to data to be used for the
   19         disproportionate share program; amending s. 409.9112,
   20         F.S.; extending the prohibition against distributing
   21         moneys under the regional perinatal intensive care
   22         centers disproportionate share program for another
   23         year; amending s. 409.9113, F.S.; extending the
   24         disproportionate share program for teaching hospitals
   25         for another year; amending s. 409.9117, F.S.;
   26         extending the prohibition against distributing moneys
   27         under the primary care disproportionate share program
   28         for another year; amending s. 409.912, F.S.; allowing
   29         the agency to continue to contract for electronic
   30         access to certain pharmacology drug information;
   31         eliminating the requirement to implement a wireless
   32         handheld clinical pharmacology drug information
   33         database for practitioners; revising the factors for
   34         calculating the maximum allowable fee for
   35         pharmaceutical ingredient costs; amending ss.
   36         409.9122, 409.915, and 409.9301, F.S.; conforming
   37         provisions to changes made by the act; providing an
   38         effective date.
   39  
   40  Be It Enacted by the Legislature of the State of Florida:
   41  
   42         Section 1. Subsections (1) and (2) of section 409.904,
   43  Florida Statutes, are amended to read:
   44         409.904 Optional payments for eligible persons.—The agency
   45  may make payments for medical assistance and related services on
   46  behalf of the following persons who are determined to be
   47  eligible subject to the income, assets, and categorical
   48  eligibility tests set forth in federal and state law. Payment on
   49  behalf of these Medicaid eligible persons is subject to the
   50  availability of moneys and any limitations established by the
   51  General Appropriations Act or chapter 216.
   52         (1) Effective January 1, 2006, and Subject to federal
   53  waiver approval, a person who is age 65 or older or is
   54  determined to be disabled, whose income is at or below 88
   55  percent of the federal poverty level, whose assets do not exceed
   56  established limitations, and who is not eligible for Medicare
   57  or, if eligible for Medicare, is also eligible for and receiving
   58  Medicaid-covered institutional care services, hospice services,
   59  or home and community-based services. The agency shall seek
   60  federal authorization through a waiver to provide this coverage.
   61  This eligibility category subsection expires June 30, 2011.
   62  However, for the purpose of phasing out this category, the
   63  agency may continue making payments through March 31, 2012.
   64         (2)(a) A family, a pregnant woman, a child under age 21, a
   65  person age 65 or over, or a blind or disabled person, who would
   66  be eligible under any group listed in s. 409.903(1), (2), or
   67  (3), except that the income or assets of such family or person
   68  exceed established limitations is eligible for the Medicaid
   69  nonpoverty medical subsidy, which includes the same services as
   70  those provided to other Medicaid recipients, with the exception
   71  of services in skilled nursing facilities and intermediate care
   72  facilities for the developmentally disabled. For a family or
   73  person in one of these coverage groups, medical expenses are
   74  deductible from income in accordance with federal requirements
   75  in order to make a determination of eligibility. Effective April
   76  1, 2012, a family, a person age 65 or older, or a blind or
   77  disabled person is eligible to receive physician services only.
   78  A family or person eligible under the coverage known as the
   79  “medically needy,” is eligible to receive the same services as
   80  other Medicaid recipients, with the exception of services in
   81  skilled nursing facilities and intermediate care facilities for
   82  the developmentally disabled. This paragraph expires June 30,
   83  2011.
   84         (b) Effective July 1, 2011, a pregnant woman or a child
   85  younger than 21 years of age who would be eligible under any
   86  group listed in s. 409.903, except that the income or assets of
   87  such group exceed established limitations. For a person in one
   88  of these coverage groups, medical expenses are deductible from
   89  income in accordance with federal requirements in order to make
   90  a determination of eligibility. A person eligible under the
   91  coverage known as the “medically needy” is eligible to receive
   92  the same services as other Medicaid recipients, with the
   93  exception of services in skilled nursing facilities and
   94  intermediate care facilities for the developmentally disabled.
   95         Section 2. Paragraphs (d), (e), and (f) of subsection (5)
   96  of section 409.905, Florida Statutes, are amended to read:
   97         409.905 Mandatory Medicaid services.—The agency may make
   98  payments for the following services, which are required of the
   99  state by Title XIX of the Social Security Act, furnished by
  100  Medicaid providers to recipients who are determined to be
  101  eligible on the dates on which the services were provided. Any
  102  service under this section shall be provided only when medically
  103  necessary and in accordance with state and federal law.
  104  Mandatory services rendered by providers in mobile units to
  105  Medicaid recipients may be restricted by the agency. Nothing in
  106  this section shall be construed to prevent or limit the agency
  107  from adjusting fees, reimbursement rates, lengths of stay,
  108  number of visits, number of services, or any other adjustments
  109  necessary to comply with the availability of moneys and any
  110  limitations or directions provided for in the General
  111  Appropriations Act or chapter 216.
  112         (5) HOSPITAL INPATIENT SERVICES.—The agency shall pay for
  113  all covered services provided for the medical care and treatment
  114  of a recipient who is admitted as an inpatient by a licensed
  115  physician or dentist to a hospital licensed under part I of
  116  chapter 395. However, the agency shall limit the payment for
  117  inpatient hospital services for a Medicaid recipient 21 years of
  118  age or older to 45 days or the number of days necessary to
  119  comply with the General Appropriations Act.
  120         (d) The agency shall implement a hospitalist program in
  121  nonteaching hospitals, select counties, or statewide. The
  122  program shall require hospitalists to manage Medicaid
  123  recipients’ hospital admissions and lengths of stay. Individuals
  124  who are dually eligible for Medicare and Medicaid are exempted
  125  from this requirement. Medicaid participating physicians and
  126  other practitioners with hospital admitting privileges shall
  127  coordinate and review admissions of Medicaid recipients with the
  128  hospitalist. The agency may competitively bid a contract for
  129  selection of a single qualified organization to provide
  130  hospitalist services. The agency may procure hospitalist
  131  services by individual county or may combine counties in a
  132  single procurement. The qualified organization shall contract
  133  with or employ board-eligible physicians in Miami-Dade, Palm
  134  Beach, Hillsborough, Pasco, and Pinellas Counties. The agency is
  135  authorized to seek federal waivers to implement this program.
  136         (d)(e) The agency shall implement a comprehensive
  137  utilization management program for hospital neonatal intensive
  138  care stays in certain high-volume participating hospitals,
  139  select counties, or statewide, and shall replace existing
  140  hospital inpatient utilization management programs for neonatal
  141  intensive care admissions. The program shall be designed to
  142  manage the lengths of stay for children being treated in
  143  neonatal intensive care units and must seek the earliest
  144  medically appropriate discharge to the child’s home or other
  145  less costly treatment setting. The agency may competitively bid
  146  a contract for the selection of a qualified organization to
  147  provide neonatal intensive care utilization management services.
  148  The agency may is authorized to seek any federal waivers to
  149  implement this initiative.
  150         (e)(f) The agency may develop and implement a program to
  151  reduce the number of hospital readmissions among the non
  152  Medicare population eligible in areas 9, 10, and 11.
  153         Section 3. Subsections (14) and (23) of section 409.908,
  154  Florida Statutes, are amended to read:
  155         409.908 Reimbursement of Medicaid providers.—Subject to
  156  specific appropriations, the agency shall reimburse Medicaid
  157  providers, in accordance with state and federal law, according
  158  to methodologies set forth in the rules of the agency and in
  159  policy manuals and handbooks incorporated by reference therein.
  160  These methodologies may include fee schedules, reimbursement
  161  methods based on cost reporting, negotiated fees, competitive
  162  bidding pursuant to s. 287.057, and other mechanisms the agency
  163  considers efficient and effective for purchasing services or
  164  goods on behalf of recipients. If a provider is reimbursed based
  165  on cost reporting and submits a cost report late and that cost
  166  report would have been used to set a lower reimbursement rate
  167  for a rate semester, then the provider’s rate for that semester
  168  shall be retroactively calculated using the new cost report, and
  169  full payment at the recalculated rate shall be effected
  170  retroactively. Medicare-granted extensions for filing cost
  171  reports, if applicable, shall also apply to Medicaid cost
  172  reports. Payment for Medicaid compensable services made on
  173  behalf of Medicaid eligible persons is subject to the
  174  availability of moneys and any limitations or directions
  175  provided for in the General Appropriations Act or chapter 216.
  176  Further, nothing in this section shall be construed to prevent
  177  or limit the agency from adjusting fees, reimbursement rates,
  178  lengths of stay, number of visits, or number of services, or
  179  making any other adjustments necessary to comply with the
  180  availability of moneys and any limitations or directions
  181  provided for in the General Appropriations Act, provided the
  182  adjustment is consistent with legislative intent.
  183         (14) A provider of prescribed drugs shall be reimbursed the
  184  least of the amount billed by the provider, the provider’s usual
  185  and customary charge, or the Medicaid maximum allowable fee
  186  established by the agency, plus a dispensing fee. The Medicaid
  187  maximum allowable fee for ingredient cost must will be based on
  188  the lowest lower of: the average wholesale price (AWP) minus
  189  16.4 percent, the wholesaler acquisition cost (WAC) plus 1.5
  190  4.75 percent, the federal upper limit (FUL), the state maximum
  191  allowable cost (SMAC), or the usual and customary (UAC) charge
  192  billed by the provider.
  193         (a) Medicaid providers must are required to dispense
  194  generic drugs if available at lower cost and the agency has not
  195  determined that the branded product is more cost-effective,
  196  unless the prescriber has requested and received approval to
  197  require the branded product.
  198         (b) The agency shall is directed to implement a variable
  199  dispensing fee for payments for prescribed medicines while
  200  ensuring continued access for Medicaid recipients. The variable
  201  dispensing fee may be based upon, but not limited to, either or
  202  both the volume of prescriptions dispensed by a specific
  203  pharmacy provider, the volume of prescriptions dispensed to an
  204  individual recipient, and dispensing of preferred-drug-list
  205  products.
  206         (c) The agency may increase the pharmacy dispensing fee
  207  authorized by statute and in the annual General Appropriations
  208  Act by $0.50 for the dispensing of a Medicaid preferred-drug
  209  list product and reduce the pharmacy dispensing fee by $0.50 for
  210  the dispensing of a Medicaid product that is not included on the
  211  preferred drug list.
  212         (d) The agency may establish a supplemental pharmaceutical
  213  dispensing fee to be paid to providers returning unused unit
  214  dose packaged medications to stock and crediting the Medicaid
  215  program for the ingredient cost of those medications if the
  216  ingredient costs to be credited exceed the value of the
  217  supplemental dispensing fee.
  218         (e) The agency may is authorized to limit reimbursement for
  219  prescribed medicine in order to comply with any limitations or
  220  directions provided for in the General Appropriations Act, which
  221  may include implementing a prospective or concurrent utilization
  222  review program.
  223         (23)(a) The agency shall establish rates at a level that
  224  ensures no increase in statewide expenditures resulting from a
  225  change in unit costs for 2 fiscal years effective July 1, 2009.
  226         (a) Reimbursement rates for the 2011-2012 state fiscal year
  227  2 fiscal years shall be as provided in the General
  228  Appropriations Act.
  229         (b) This subsection applies to the following provider
  230  types:
  231         1. Inpatient hospitals.
  232         2. Outpatient hospitals.
  233         3. Nursing homes.
  234         4. County health departments.
  235         5. Community intermediate care facilities for the
  236  developmentally disabled.
  237         6. Prepaid health plans.
  238         (c) The agency shall apply the effect of this subsection to
  239  the reimbursement rates for nursing home diversion programs.
  240         (c) The agency shall create a workgroup on hospital
  241  reimbursement, a workgroup on nursing facility reimbursement,
  242  and a workgroup on managed care plan payment. The workgroups
  243  shall evaluate alternative reimbursement and payment
  244  methodologies for hospitals, nursing facilities, and managed
  245  care plans, including prospective payment methodologies for
  246  hospitals and nursing facilities. The nursing facility workgroup
  247  shall also consider price-based methodologies for indirect care
  248  and acuity adjustments for direct care. The agency shall submit
  249  a report on the evaluated alternative reimbursement
  250  methodologies to the relevant committees of the Senate and the
  251  House of Representatives by November 1, 2009.
  252         (d) This subsection expires June 30, 2012 2011.
  253         Section 4. Subsection (2) of section 409.9082, Florida
  254  Statutes, is amended to read:
  255         409.9082 Quality assessment on nursing home facility
  256  providers; exemptions; purpose; federal approval required;
  257  remedies.—
  258         (2) Effective April 1, 2009, a quality assessment there is
  259  imposed upon each nursing home facility a quality assessment.
  260  The aggregated amount of assessments for all nursing home
  261  facilities in a given year may shall be an amount not exceed the
  262  maximum percentage exceeding 5.5 percent of the total aggregate
  263  net patient service revenue of assessed facilities allowed under
  264  federal law. The agency shall calculate the quality assessment
  265  rate annually on a per-resident-day basis, exclusive of those
  266  resident days funded by the Medicare program, as reported by the
  267  facilities. The per-resident-day assessment rate must shall be
  268  uniform except as prescribed in subsection (3). Each facility
  269  shall report monthly to the agency its total number of resident
  270  days, exclusive of Medicare Part A resident days, and shall
  271  remit an amount equal to the assessment rate times the reported
  272  number of days. The agency shall collect, and each facility
  273  shall pay, the quality assessment each month. The agency shall
  274  collect the assessment from nursing home facility providers by
  275  no later than the 15th day of the next succeeding calendar
  276  month. The agency shall notify providers of the quality
  277  assessment and provide a standardized form to complete and
  278  submit with payments. The collection of the nursing home
  279  facility quality assessment shall commence no sooner than 5 days
  280  after the agency’s initial payment of the Medicaid rates
  281  containing the elements prescribed in subsection (4). Nursing
  282  home facilities may not create a separate line-item charge for
  283  the purpose of passing through the assessment through to
  284  residents.
  285         Section 5. Paragraph (a) of subsection (2) of section
  286  409.911, Florida Statutes, is amended to read:
  287         409.911 Disproportionate share program.—Subject to specific
  288  allocations established within the General Appropriations Act
  289  and any limitations established pursuant to chapter 216, the
  290  agency shall distribute, pursuant to this section, moneys to
  291  hospitals providing a disproportionate share of Medicaid or
  292  charity care services by making quarterly Medicaid payments as
  293  required. Notwithstanding the provisions of s. 409.915, counties
  294  are exempt from contributing toward the cost of this special
  295  reimbursement for hospitals serving a disproportionate share of
  296  low-income patients.
  297         (2) The Agency for Health Care Administration shall use the
  298  following actual audited data to determine the Medicaid days and
  299  charity care to be used in calculating the disproportionate
  300  share payment:
  301         (a) The average of the 2004, 2005, and 2006 2003, 2004, and
  302  2005 audited disproportionate share data to determine each
  303  hospital’s Medicaid days and charity care for the 2011-2012
  304  2010-2011 state fiscal year.
  305         Section 6. Section 409.9112, Florida Statutes, is amended
  306  to read:
  307         409.9112 Disproportionate share program for regional
  308  perinatal intensive care centers.—In addition to the payments
  309  made under s. 409.911, the agency shall design and implement a
  310  system for making disproportionate share payments to those
  311  hospitals that participate in the regional perinatal intensive
  312  care center program established pursuant to chapter 383. The
  313  system of payments must conform to federal requirements and
  314  distribute funds in each fiscal year for which an appropriation
  315  is made by making quarterly Medicaid payments. Notwithstanding
  316  s. 409.915, counties are exempt from contributing toward the
  317  cost of this special reimbursement for hospitals serving a
  318  disproportionate share of low-income patients. For the 2011-2012
  319  2010-2011 state fiscal year, the agency may not distribute
  320  moneys under the regional perinatal intensive care centers
  321  disproportionate share program.
  322         (1) The following formula shall be used by the agency to
  323  calculate the total amount earned for hospitals that participate
  324  in the regional perinatal intensive care center program:
  325  
  326                          TAE = HDSP/THDSP                         
  327  
  328  Where:
  329         TAE = total amount earned by a regional perinatal intensive
  330  care center.
  331         HDSP = the prior state fiscal year regional perinatal
  332  intensive care center disproportionate share payment to the
  333  individual hospital.
  334         THDSP = the prior state fiscal year total regional
  335  perinatal intensive care center disproportionate share payments
  336  to all hospitals.
  337  
  338         (2) The total additional payment for hospitals that
  339  participate in the regional perinatal intensive care center
  340  program shall be calculated by the agency as follows:
  341  
  342                           TAP = TAE x TA                          
  343  
  344  Where:
  345         TAP = total additional payment for a regional perinatal
  346  intensive care center.
  347         TAE = total amount earned by a regional perinatal intensive
  348  care center.
  349         TA = total appropriation for the regional perinatal
  350  intensive care center disproportionate share program.
  351  
  352         (3) In order to receive payments under this section, a
  353  hospital must be participating in the regional perinatal
  354  intensive care center program pursuant to chapter 383 and must
  355  meet the following additional requirements:
  356         (a) Agree to conform to all departmental and agency
  357  requirements to ensure high quality in the provision of
  358  services, including criteria adopted by departmental and agency
  359  rule concerning staffing ratios, medical records, standards of
  360  care, equipment, space, and such other standards and criteria as
  361  the department and agency deem appropriate as specified by rule.
  362         (b) Agree to provide information to the Department of
  363  Health and the agency, in a form and manner to be prescribed by
  364  rule of the department and agency, concerning the care provided
  365  to all patients in neonatal intensive care centers and high-risk
  366  maternity care.
  367         (c) Agree to accept all patients for neonatal intensive
  368  care and high-risk maternity care, regardless of ability to pay,
  369  on a functional space-available basis.
  370         (d) Agree to develop arrangements with other maternity and
  371  neonatal care providers in the hospital’s region for the
  372  appropriate receipt and transfer of patients in need of
  373  specialized maternity and neonatal intensive care services.
  374         (e) Agree to establish and provide a developmental
  375  evaluation and services program for certain high-risk neonates,
  376  as prescribed and defined by rule of the department.
  377         (f) Agree to sponsor a program of continuing education in
  378  perinatal care for health care professionals within the region
  379  of the hospital, as specified by rule.
  380         (g) Agree to provide backup and referral services to the
  381  county health departments and other low-income perinatal
  382  providers within the hospital’s region, including the
  383  development of written agreements between these organizations
  384  and the hospital.
  385         (h) Agree to arrange for transportation for high-risk
  386  obstetrical patients and neonates in need of transfer from the
  387  community to the hospital or from the hospital to another more
  388  appropriate facility.
  389         (4) Hospitals that which fail to comply with any of the
  390  conditions in subsection (3) or the applicable rules of the
  391  Department of Health and the agency may not receive any payments
  392  under this section until full compliance is achieved. A hospital
  393  that which is not in compliance in two or more consecutive
  394  quarters may not receive its share of the funds. Any forfeited
  395  funds shall be distributed by the remaining participating
  396  regional perinatal intensive care center program hospitals.
  397         Section 7. Section 409.9113, Florida Statutes, is amended
  398  to read:
  399         409.9113 Disproportionate share program for teaching
  400  hospitals.—In addition to the payments made under ss. 409.911
  401  and 409.9112, the agency shall make disproportionate share
  402  payments to statutorily defined teaching hospitals, as defined
  403  in s. 408.07, for their increased costs associated with medical
  404  education programs and for tertiary health care services
  405  provided to the indigent. This system of payments must conform
  406  to federal requirements and distribute funds in each fiscal year
  407  for which an appropriation is made by making quarterly Medicaid
  408  payments. Notwithstanding s. 409.915, counties are exempt from
  409  contributing toward the cost of this special reimbursement for
  410  hospitals serving a disproportionate share of low-income
  411  patients. For the 2011-2012 2010-2011 state fiscal year, the
  412  agency shall distribute the moneys provided in the General
  413  Appropriations Act to statutorily defined teaching hospitals and
  414  family practice teaching hospitals, as defined in s. 395.805,
  415  pursuant to this section under the teaching hospital
  416  disproportionate share program. The funds provided for
  417  statutorily defined teaching hospitals shall be distributed in
  418  the same proportion as the state fiscal year 2003-2004 state
  419  fiscal year teaching hospital disproportionate share funds were
  420  distributed or as otherwise provided in the General
  421  Appropriations Act. The funds provided for family practice
  422  teaching hospitals shall be distributed equally among family
  423  practice teaching hospitals.
  424         (1) On or before September 15 of each year, the agency
  425  shall calculate an allocation fraction to be used for
  426  distributing funds to state statutory teaching hospitals.
  427  Subsequent to the end of each quarter of the state fiscal year,
  428  the agency shall distribute to each statutory teaching hospital,
  429  as defined in s. 408.07, an amount determined by multiplying
  430  one-fourth of the funds appropriated for this purpose by the
  431  Legislature times such hospital’s allocation fraction. The
  432  allocation fraction for each such hospital shall be determined
  433  by the sum of the following three primary factors, divided by
  434  three:
  435         (a) The number of nationally accredited graduate medical
  436  education programs offered by the hospital, including programs
  437  accredited by the Accreditation Council for Graduate Medical
  438  Education and the combined Internal Medicine and Pediatrics
  439  programs acceptable to both the American Board of Internal
  440  Medicine and the American Board of Pediatrics at the beginning
  441  of the state fiscal year preceding the date on which the
  442  allocation fraction is calculated. The numerical value of this
  443  factor is the fraction that the hospital represents of the total
  444  number of programs, where the total is computed for all state
  445  statutory teaching hospitals.
  446         (b) The number of full-time equivalent trainees in the
  447  hospital, which comprises two components:
  448         1. The number of trainees enrolled in nationally accredited
  449  graduate medical education programs, as defined in paragraph
  450  (a). Full-time equivalents are computed using the fraction of
  451  the year during which each trainee is primarily assigned to the
  452  given institution, over the state fiscal year preceding the date
  453  on which the allocation fraction is calculated. The numerical
  454  value of this factor is the fraction that the hospital
  455  represents of the total number of full-time equivalent trainees
  456  enrolled in accredited graduate programs, where the total is
  457  computed for all state statutory teaching hospitals.
  458         2. The number of medical students enrolled in accredited
  459  colleges of medicine and engaged in clinical activities,
  460  including required clinical clerkships and clinical electives.
  461  Full-time equivalents are computed using the fraction of the
  462  year during which each trainee is primarily assigned to the
  463  given institution, over the course of the state fiscal year
  464  preceding the date on which the allocation fraction is
  465  calculated. The numerical value of this factor is the fraction
  466  that the given hospital represents of the total number of full
  467  time equivalent students enrolled in accredited colleges of
  468  medicine, where the total is computed for all state statutory
  469  teaching hospitals.
  470  
  471  The primary factor for full-time equivalent trainees is computed
  472  as the sum of these two components, divided by two.
  473         (c) A service index that comprises three components:
  474         1. The Agency for Health Care Administration Service Index,
  475  computed by applying the standard Service Inventory Scores
  476  established by the agency to services offered by the given
  477  hospital, as reported on Worksheet A-2 for the last fiscal year
  478  reported to the agency before the date on which the allocation
  479  fraction is calculated. The numerical value of this factor is
  480  the fraction that the given hospital represents of the total
  481  Agency for Health Care Administration Service index values,
  482  where the total is computed for all state statutory teaching
  483  hospitals.
  484         2. A volume-weighted service index, computed by applying
  485  the standard Service Inventory Scores established by the agency
  486  for Health Care Administration to the volume of each service,
  487  expressed in terms of the standard units of measure reported on
  488  Worksheet A-2 for the last fiscal year reported to the agency
  489  before the date on which the allocation factor is calculated.
  490  The numerical value of this factor is the fraction that the
  491  given hospital represents of the total volume-weighted service
  492  index values, where the total is computed for all state
  493  statutory teaching hospitals.
  494         3. Total Medicaid payments to each hospital for direct
  495  inpatient and outpatient services during the fiscal year
  496  preceding the date on which the allocation factor is calculated.
  497  This includes payments made to each hospital for such services
  498  by Medicaid prepaid health plans, whether the plan was
  499  administered by the hospital or not. The numerical value of this
  500  factor is the fraction that each hospital represents of the
  501  total of such Medicaid payments, where the total is computed for
  502  all state statutory teaching hospitals.
  503  
  504  The primary factor for the service index is computed as the sum
  505  of these three components, divided by three.
  506         (2) By October 1 of each year, the agency shall use the
  507  following formula to calculate the maximum additional
  508  disproportionate share payment for statutory statutorily defined
  509  teaching hospitals:
  510  
  511                           TAP = THAF x A                          
  512  
  513  Where:
  514         TAP = total additional payment.
  515         THAF = teaching hospital allocation factor.
  516         A = amount appropriated for a teaching hospital
  517  disproportionate share program.
  518         Section 8. Section 409.9117, Florida Statutes, is amended
  519  to read:
  520         409.9117 Primary care disproportionate share program.—For
  521  the 2011-2012 2010-2011 state fiscal year, the agency may shall
  522  not distribute moneys under the primary care disproportionate
  523  share program.
  524         (1) If federal funds are available for disproportionate
  525  share programs in addition to those otherwise provided by law,
  526  there shall be created a primary care disproportionate share
  527  program shall be established.
  528         (2) The following formula shall be used by the agency to
  529  calculate the total amount earned for hospitals that participate
  530  in the primary care disproportionate share program:
  531  
  532                          TAE = HDSP/THDSP                         
  533  
  534  Where:
  535         TAE = total amount earned by a hospital participating in
  536  the primary care disproportionate share program.
  537         HDSP = the prior state fiscal year primary care
  538  disproportionate share payment to the individual hospital.
  539         THDSP = the prior state fiscal year total primary care
  540  disproportionate share payments to all hospitals.
  541  
  542         (3) The total additional payment for hospitals that
  543  participate in the primary care disproportionate share program
  544  shall be calculated by the agency as follows:
  545  
  546                           TAP = TAE x TA                          
  547  
  548  Where:
  549         TAP = total additional payment for a primary care hospital.
  550         TAE = total amount earned by a primary care hospital.
  551         TA = total appropriation for the primary care
  552  disproportionate share program.
  553  
  554         (4) In establishing the establishment and funding of this
  555  program, the agency shall use the following criteria in addition
  556  to those specified in s. 409.911, and payments may not be made
  557  to a hospital unless the hospital agrees to:
  558         (a) Cooperate with a Medicaid prepaid health plan, if one
  559  exists in the community.
  560         (b) Ensure the availability of primary and specialty care
  561  physicians to Medicaid recipients who are not enrolled in a
  562  prepaid capitated arrangement and who are in need of access to
  563  such physicians.
  564         (c) Coordinate and provide primary care services free of
  565  charge, except copayments, to all persons with incomes up to 100
  566  percent of the federal poverty level who are not otherwise
  567  covered by Medicaid or another program administered by a
  568  governmental entity, and to provide such services based on a
  569  sliding fee scale to all persons with incomes up to 200 percent
  570  of the federal poverty level who are not otherwise covered by
  571  Medicaid or another program administered by a governmental
  572  entity, except that eligibility may be limited to persons who
  573  reside within a more limited area, as agreed to by the agency
  574  and the hospital.
  575         (d) Contract with any federally qualified health center, if
  576  one exists within the agreed geopolitical boundaries, concerning
  577  the provision of primary care services, in order to guarantee
  578  delivery of services in a nonduplicative fashion, and to provide
  579  for referral arrangements, privileges, and admissions, as
  580  appropriate. The hospital shall agree to provide at an onsite or
  581  offsite facility primary care services within 24 hours at an
  582  onsite or offsite facility to which all Medicaid recipients and
  583  persons eligible under this paragraph who do not require
  584  emergency room services are referred during normal daylight
  585  hours.
  586         (e) Cooperate with the agency, the county, and other
  587  entities to ensure the provision of certain public health
  588  services, case management, referral and acceptance of patients,
  589  and sharing of epidemiological data, as the agency and the
  590  hospital find mutually necessary and desirable to promote and
  591  protect the public health within the agreed geopolitical
  592  boundaries.
  593         (f) In cooperation with the county in which the hospital
  594  resides, develop a low-cost, outpatient, prepaid health care
  595  program to persons who are not eligible for the Medicaid
  596  program, and who reside within the area.
  597         (g) Provide inpatient services to residents within the area
  598  who are not eligible for Medicaid or Medicare, and who do not
  599  have private health insurance, regardless of ability to pay, on
  600  the basis of available space, except that hospitals may not be
  601  prevented from establishing bill collection programs based on
  602  ability to pay.
  603         (h) Work with the Florida Healthy Kids Corporation, the
  604  Florida Health Care Purchasing Cooperative, and business health
  605  coalitions, as appropriate, to develop a feasibility study and
  606  plan to provide a low-cost comprehensive health insurance plan
  607  to persons who reside within the area and who do not have access
  608  to such a plan.
  609         (i) Work with public health officials and other experts to
  610  provide community health education and prevention activities
  611  designed to promote healthy lifestyles and appropriate use of
  612  health services.
  613         (j) Work with the local health council to develop a plan
  614  for promoting access to affordable health care services for all
  615  persons who reside within the area, including, but not limited
  616  to, public health services, primary care services, inpatient
  617  services, and affordable health insurance generally.
  618  
  619  Any hospital that fails to comply with any of the provisions of
  620  this subsection, or any other contractual condition, may not
  621  receive payments under this section until full compliance is
  622  achieved.
  623         Section 9. Paragraph (b) of subsection (16) and paragraph
  624  (a) of subsection (39) of section 409.912, Florida Statutes, are
  625  amended to read:
  626         409.912 Cost-effective purchasing of health care.—The
  627  agency shall purchase goods and services for Medicaid recipients
  628  in the most cost-effective manner consistent with the delivery
  629  of quality medical care. To ensure that medical services are
  630  effectively utilized, the agency may, in any case, require a
  631  confirmation or second physician’s opinion of the correct
  632  diagnosis for purposes of authorizing future services under the
  633  Medicaid program. This section does not restrict access to
  634  emergency services or poststabilization care services as defined
  635  in 42 C.F.R. part 438.114. Such confirmation or second opinion
  636  shall be rendered in a manner approved by the agency. The agency
  637  shall maximize the use of prepaid per capita and prepaid
  638  aggregate fixed-sum basis services when appropriate and other
  639  alternative service delivery and reimbursement methodologies,
  640  including competitive bidding pursuant to s. 287.057, designed
  641  to facilitate the cost-effective purchase of a case-managed
  642  continuum of care. The agency shall also require providers to
  643  minimize the exposure of recipients to the need for acute
  644  inpatient, custodial, and other institutional care and the
  645  inappropriate or unnecessary use of high-cost services. The
  646  agency shall contract with a vendor to monitor and evaluate the
  647  clinical practice patterns of providers in order to identify
  648  trends that are outside the normal practice patterns of a
  649  provider’s professional peers or the national guidelines of a
  650  provider’s professional association. The vendor must be able to
  651  provide information and counseling to a provider whose practice
  652  patterns are outside the norms, in consultation with the agency,
  653  to improve patient care and reduce inappropriate utilization.
  654  The agency may mandate prior authorization, drug therapy
  655  management, or disease management participation for certain
  656  populations of Medicaid beneficiaries, certain drug classes, or
  657  particular drugs to prevent fraud, abuse, overuse, and possible
  658  dangerous drug interactions. The Pharmaceutical and Therapeutics
  659  Committee shall make recommendations to the agency on drugs for
  660  which prior authorization is required. The agency shall inform
  661  the Pharmaceutical and Therapeutics Committee of its decisions
  662  regarding drugs subject to prior authorization. The agency is
  663  authorized to limit the entities it contracts with or enrolls as
  664  Medicaid providers by developing a provider network through
  665  provider credentialing. The agency may competitively bid single
  666  source-provider contracts if procurement of goods or services
  667  results in demonstrated cost savings to the state without
  668  limiting access to care. The agency may limit its network based
  669  on the assessment of beneficiary access to care, provider
  670  availability, provider quality standards, time and distance
  671  standards for access to care, the cultural competence of the
  672  provider network, demographic characteristics of Medicaid
  673  beneficiaries, practice and provider-to-beneficiary standards,
  674  appointment wait times, beneficiary use of services, provider
  675  turnover, provider profiling, provider licensure history,
  676  previous program integrity investigations and findings, peer
  677  review, provider Medicaid policy and billing compliance records,
  678  clinical and medical record audits, and other factors. Providers
  679  shall not be entitled to enrollment in the Medicaid provider
  680  network. The agency shall determine instances in which allowing
  681  Medicaid beneficiaries to purchase durable medical equipment and
  682  other goods is less expensive to the Medicaid program than long
  683  term rental of the equipment or goods. The agency may establish
  684  rules to facilitate purchases in lieu of long-term rentals in
  685  order to protect against fraud and abuse in the Medicaid program
  686  as defined in s. 409.913. The agency may seek federal waivers
  687  necessary to administer these policies.
  688         (16)
  689         (b) The responsibility of the agency under this subsection
  690  includes shall include the development of capabilities to
  691  identify actual and optimal practice patterns; patient and
  692  provider educational initiatives; methods for determining
  693  patient compliance with prescribed treatments; fraud, waste, and
  694  abuse prevention and detection programs; and beneficiary case
  695  management programs.
  696         1. The practice pattern identification program shall
  697  evaluate practitioner prescribing patterns based on national and
  698  regional practice guidelines, comparing practitioners to their
  699  peer groups. The agency and its Drug Utilization Review Board
  700  shall consult with the Department of Health and a panel of
  701  practicing health care professionals consisting of the
  702  following: the Speaker of the House of Representatives and the
  703  President of the Senate shall each appoint three physicians
  704  licensed under chapter 458 or chapter 459; and the Governor
  705  shall appoint two pharmacists licensed under chapter 465 and one
  706  dentist licensed under chapter 466 who is an oral surgeon. Terms
  707  of the panel members shall expire at the discretion of the
  708  appointing official. The advisory panel shall be responsible for
  709  evaluating treatment guidelines and recommending ways to
  710  incorporate their use in the practice pattern identification
  711  program. Practitioners who are prescribing inappropriately or
  712  inefficiently, as determined by the agency, may have their
  713  prescribing of certain drugs subject to prior authorization or
  714  may be terminated from all participation in the Medicaid
  715  program.
  716         2. The agency shall also develop educational interventions
  717  designed to promote the proper use of medications by providers
  718  and beneficiaries.
  719         3. The agency shall implement a pharmacy fraud, waste, and
  720  abuse initiative that may include a surety bond or letter of
  721  credit requirement for participating pharmacies, enhanced
  722  provider auditing practices, the use of additional fraud and
  723  abuse software, recipient management programs for beneficiaries
  724  inappropriately using their benefits, and other steps that will
  725  eliminate provider and recipient fraud, waste, and abuse. The
  726  initiative shall address enforcement efforts to reduce the
  727  number and use of counterfeit prescriptions.
  728         4. By September 30, 2002, The agency may shall contract
  729  with an entity in the state to provide Medicaid providers with
  730  electronic access to Medicaid prescription refill data and
  731  information relating to the Medicaid Preferred Drug List
  732  implement a wireless handheld clinical pharmacology drug
  733  information database for practitioners. The initiative shall be
  734  designed to enhance the agency’s efforts to reduce fraud, abuse,
  735  and errors in the prescription drug benefit program and to
  736  otherwise further the intent of this paragraph.
  737         5. By April 1, 2006, The agency shall contract with an
  738  entity to design a database of clinical utilization information
  739  or electronic medical records for Medicaid providers. The
  740  database This system must be web-based and allow providers to
  741  review on a real-time basis the utilization of Medicaid
  742  services, including, but not limited to, physician office
  743  visits, inpatient and outpatient hospitalizations, laboratory
  744  and pathology services, radiological and other imaging services,
  745  dental care, and patterns of dispensing prescription drugs in
  746  order to coordinate care and identify potential fraud and abuse.
  747         6. The agency may apply for any federal waivers needed to
  748  administer this paragraph.
  749         (39)(a) The agency shall implement a Medicaid prescribed
  750  drug spending-control program that includes the following
  751  components:
  752         1. A Medicaid preferred drug list, which is shall be a
  753  listing of cost-effective therapeutic options recommended by the
  754  Medicaid Pharmacy and Therapeutics Committee established
  755  pursuant to s. 409.91195 and adopted by the agency for each
  756  therapeutic class on the preferred drug list. At the discretion
  757  of the committee, and when feasible, the preferred drug list
  758  should include at least two products in a therapeutic class. The
  759  agency may post the preferred drug list and updates to the
  760  preferred drug list on an Internet website without following the
  761  rulemaking procedures of chapter 120. Antiretroviral agents are
  762  excluded from the preferred drug list. The agency shall also
  763  limit the amount of a prescribed drug dispensed to no more than
  764  a 34-day supply unless the drug products’ smallest marketed
  765  package is greater than a 34-day supply, or the drug is
  766  determined by the agency to be a maintenance drug in which case
  767  a 100-day maximum supply may be authorized. The agency may is
  768  authorized to seek any federal waivers necessary to implement
  769  these cost-control programs and to continue participation in the
  770  federal Medicaid rebate program, or alternatively to negotiate
  771  state-only manufacturer rebates. The agency may adopt rules to
  772  administer implement this subparagraph. The agency shall
  773  continue to provide unlimited contraceptive drugs and items. The
  774  agency must establish procedures to ensure that:
  775         a. There is a response to a request for prior consultation
  776  by telephone or other telecommunication device within 24 hours
  777  after receipt of a request for prior consultation; and
  778         b. A 72-hour supply of the drug prescribed is provided in
  779  an emergency or when the agency does not provide a response
  780  within 24 hours as required by sub-subparagraph a.
  781         2. Reimbursement to pharmacies for Medicaid prescribed
  782  drugs shall be set at the lowest lesser of: the average
  783  wholesale price (AWP) minus 16.4 percent, the wholesaler
  784  acquisition cost (WAC) plus 1.5 4.75 percent, the federal upper
  785  limit (FUL), the state maximum allowable cost (SMAC), or the
  786  usual and customary (UAC) charge billed by the provider.
  787         3. The agency shall develop and implement a process for
  788  managing the drug therapies of Medicaid recipients who are using
  789  significant numbers of prescribed drugs each month. The
  790  management process may include, but is not limited to,
  791  comprehensive, physician-directed medical-record reviews, claims
  792  analyses, and case evaluations to determine the medical
  793  necessity and appropriateness of a patient’s treatment plan and
  794  drug therapies. The agency may contract with a private
  795  organization to provide drug-program-management services. The
  796  Medicaid drug benefit management program shall include
  797  initiatives to manage drug therapies for HIV/AIDS patients,
  798  patients using 20 or more unique prescriptions in a 180-day
  799  period, and the top 1,000 patients in annual spending. The
  800  agency shall enroll any Medicaid recipient in the drug benefit
  801  management program if he or she meets the specifications of this
  802  provision and is not enrolled in a Medicaid health maintenance
  803  organization.
  804         4. The agency may limit the size of its pharmacy network
  805  based on need, competitive bidding, price negotiations,
  806  credentialing, or similar criteria. The agency shall give
  807  special consideration to rural areas in determining the size and
  808  location of pharmacies included in the Medicaid pharmacy
  809  network. A pharmacy credentialing process may include criteria
  810  such as a pharmacy’s full-service status, location, size,
  811  patient educational programs, patient consultation, disease
  812  management services, and other characteristics. The agency may
  813  impose a moratorium on Medicaid pharmacy enrollment if when it
  814  is determined that it has a sufficient number of Medicaid
  815  participating providers. The agency must allow dispensing
  816  practitioners to participate as a part of the Medicaid pharmacy
  817  network regardless of the practitioner’s proximity to any other
  818  entity that is dispensing prescription drugs under the Medicaid
  819  program. A dispensing practitioner must meet all credentialing
  820  requirements applicable to his or her practice, as determined by
  821  the agency.
  822         5. The agency shall develop and implement a program that
  823  requires Medicaid practitioners who prescribe drugs to use a
  824  counterfeit-proof prescription pad for Medicaid prescriptions.
  825  The agency shall require the use of standardized counterfeit
  826  proof prescription pads by Medicaid-participating prescribers or
  827  prescribers who write prescriptions for Medicaid recipients. The
  828  agency may implement the program in targeted geographic areas or
  829  statewide.
  830         6. The agency may enter into arrangements that require
  831  manufacturers of generic drugs prescribed to Medicaid recipients
  832  to provide rebates of at least 15.1 percent of the average
  833  manufacturer price for the manufacturer’s generic products.
  834  These arrangements shall require that if a generic-drug
  835  manufacturer pays federal rebates for Medicaid-reimbursed drugs
  836  at a level below 15.1 percent, the manufacturer must provide a
  837  supplemental rebate to the state in an amount necessary to
  838  achieve a 15.1-percent rebate level.
  839         7. The agency may establish a preferred drug list as
  840  described in this subsection, and, pursuant to the establishment
  841  of such preferred drug list, it is authorized to negotiate
  842  supplemental rebates from manufacturers that are in addition to
  843  those required by Title XIX of the Social Security Act and at no
  844  less than 14 percent of the average manufacturer price as
  845  defined in 42 U.S.C. s. 1936 on the last day of a quarter unless
  846  the federal or supplemental rebate, or both, equals or exceeds
  847  29 percent. There is no upper limit on the supplemental rebates
  848  the agency may negotiate. The agency may determine that specific
  849  products, brand-name or generic, are competitive at lower rebate
  850  percentages. Agreement to pay the minimum supplemental rebate
  851  percentage will guarantee a manufacturer that the Medicaid
  852  Pharmaceutical and Therapeutics Committee will consider a
  853  product for inclusion on the preferred drug list. However, a
  854  pharmaceutical manufacturer is not guaranteed placement on the
  855  preferred drug list by simply paying the minimum supplemental
  856  rebate. Agency decisions will be made on the clinical efficacy
  857  of a drug and recommendations of the Medicaid Pharmaceutical and
  858  Therapeutics Committee, as well as the price of competing
  859  products minus federal and state rebates. The agency may is
  860  authorized to contract with an outside agency or contractor to
  861  conduct negotiations for supplemental rebates. For the purposes
  862  of this section, the term “supplemental rebates” means cash
  863  rebates. Effective July 1, 2004, Value-added programs as a
  864  substitution for supplemental rebates are prohibited. The agency
  865  may is authorized to seek any federal waivers to implement this
  866  initiative.
  867         8. The agency for Health Care Administration shall expand
  868  home delivery of pharmacy products. To assist Medicaid
  869  recipients patients in securing their prescriptions and reduce
  870  program costs, the agency shall expand its current mail-order
  871  pharmacy diabetes-supply program to include all generic and
  872  brand-name drugs used by Medicaid recipients patients with
  873  diabetes. Medicaid recipients in the current program may obtain
  874  nondiabetes drugs on a voluntary basis. This initiative is
  875  limited to the geographic area covered by the current contract.
  876  The agency may seek and implement any federal waivers necessary
  877  to implement this subparagraph.
  878         9. The agency shall limit to one dose per month any drug
  879  prescribed to treat erectile dysfunction.
  880         10.a. The agency may implement a Medicaid behavioral drug
  881  management system. The agency may contract with a vendor that
  882  has experience in operating behavioral drug management systems
  883  to implement this program. The agency may is authorized to seek
  884  federal waivers to implement this program.
  885         b. The agency, in conjunction with the Department of
  886  Children and Family Services, may implement the Medicaid
  887  behavioral drug management system that is designed to improve
  888  the quality of care and behavioral health prescribing practices
  889  based on best practice guidelines, improve patient adherence to
  890  medication plans, reduce clinical risk, and lower prescribed
  891  drug costs and the rate of inappropriate spending on Medicaid
  892  behavioral drugs. The program may include the following
  893  elements:
  894         (I) Provide for the development and adoption of best
  895  practice guidelines for behavioral health-related drugs such as
  896  antipsychotics, antidepressants, and medications for treating
  897  bipolar disorders and other behavioral conditions; translate
  898  them into practice; review behavioral health prescribers and
  899  compare their prescribing patterns to a number of indicators
  900  that are based on national standards; and determine deviations
  901  from best practice guidelines.
  902         (II) Implement processes for providing feedback to and
  903  educating prescribers using best practice educational materials
  904  and peer-to-peer consultation.
  905         (III) Assess Medicaid beneficiaries who are outliers in
  906  their use of behavioral health drugs with regard to the numbers
  907  and types of drugs taken, drug dosages, combination drug
  908  therapies, and other indicators of improper use of behavioral
  909  health drugs.
  910         (IV) Alert prescribers to patients who fail to refill
  911  prescriptions in a timely fashion, are prescribed multiple same
  912  class behavioral health drugs, and may have other potential
  913  medication problems.
  914         (V) Track spending trends for behavioral health drugs and
  915  deviation from best practice guidelines.
  916         (VI) Use educational and technological approaches to
  917  promote best practices, educate consumers, and train prescribers
  918  in the use of practice guidelines.
  919         (VII) Disseminate electronic and published materials.
  920         (VIII) Hold statewide and regional conferences.
  921         (IX) Implement a disease management program with a model
  922  quality-based medication component for severely mentally ill
  923  individuals and emotionally disturbed children who are high
  924  users of care.
  925         11.a. The agency shall implement a Medicaid prescription
  926  drug management system.
  927         a. The agency may contract with a vendor that has
  928  experience in operating prescription drug management systems in
  929  order to implement this system. Any management system that is
  930  implemented in accordance with this subparagraph must rely on
  931  cooperation between physicians and pharmacists to determine
  932  appropriate practice patterns and clinical guidelines to improve
  933  the prescribing, dispensing, and use of drugs in the Medicaid
  934  program. The agency may seek federal waivers to implement this
  935  program.
  936         b. The drug management system must be designed to improve
  937  the quality of care and prescribing practices based on best
  938  practice guidelines, improve patient adherence to medication
  939  plans, reduce clinical risk, and lower prescribed drug costs and
  940  the rate of inappropriate spending on Medicaid prescription
  941  drugs. The program must:
  942         (I) Provide for the development and adoption of best
  943  practice guidelines for the prescribing and use of drugs in the
  944  Medicaid program, including translating best practice guidelines
  945  into practice; reviewing prescriber patterns and comparing them
  946  to indicators that are based on national standards and practice
  947  patterns of clinical peers in their community, statewide, and
  948  nationally; and determine deviations from best practice
  949  guidelines.
  950         (II) Implement processes for providing feedback to and
  951  educating prescribers using best practice educational materials
  952  and peer-to-peer consultation.
  953         (III) Assess Medicaid recipients who are outliers in their
  954  use of a single or multiple prescription drugs with regard to
  955  the numbers and types of drugs taken, drug dosages, combination
  956  drug therapies, and other indicators of improper use of
  957  prescription drugs.
  958         (IV) Alert prescribers to recipients patients who fail to
  959  refill prescriptions in a timely fashion, are prescribed
  960  multiple drugs that may be redundant or contraindicated, or may
  961  have other potential medication problems.
  962         (V) Track spending trends for prescription drugs and
  963  deviation from best practice guidelines.
  964         (VI) Use educational and technological approaches to
  965  promote best practices, educate consumers, and train prescribers
  966  in the use of practice guidelines.
  967         (VII) Disseminate electronic and published materials.
  968         (VIII) Hold statewide and regional conferences.
  969         (IX) Implement disease management programs in cooperation
  970  with physicians and pharmacists, along with a model quality
  971  based medication component for individuals having chronic
  972  medical conditions.
  973         12. The agency may is authorized to contract for drug
  974  rebate administration, including, but not limited to,
  975  calculating rebate amounts, invoicing manufacturers, negotiating
  976  disputes with manufacturers, and maintaining a database of
  977  rebate collections.
  978         13. The agency may specify the preferred daily dosing form
  979  or strength for the purpose of promoting best practices with
  980  regard to the prescribing of certain drugs as specified in the
  981  General Appropriations Act and ensuring cost-effective
  982  prescribing practices.
  983         14. The agency may require prior authorization for
  984  Medicaid-covered prescribed drugs. The agency may, but is not
  985  required to, prior-authorize the use of a product:
  986         a. For an indication not approved in labeling;
  987         b. To comply with certain clinical guidelines; or
  988         c. If the product has the potential for overuse, misuse, or
  989  abuse.
  990  
  991  The agency may require the prescribing professional to provide
  992  information about the rationale and supporting medical evidence
  993  for the use of a drug. The agency may post prior authorization
  994  criteria and protocol and updates to the list of drugs that are
  995  subject to prior authorization on an Internet website without
  996  amending its rule or engaging in additional rulemaking.
  997         15. The agency, in conjunction with the Pharmaceutical and
  998  Therapeutics Committee, may require age-related prior
  999  authorizations for certain prescribed drugs. The agency may
 1000  preauthorize the use of a drug for a recipient who may not meet
 1001  the age requirement or may exceed the length of therapy for use
 1002  of this product as recommended by the manufacturer and approved
 1003  by the Food and Drug Administration. Prior authorization may
 1004  require the prescribing professional to provide information
 1005  about the rationale and supporting medical evidence for the use
 1006  of a drug.
 1007         16. The agency shall implement a step-therapy prior
 1008  authorization approval process for medications excluded from the
 1009  preferred drug list. Medications listed on the preferred drug
 1010  list must be used within the previous 12 months before prior to
 1011  the alternative medications that are not listed. The step
 1012  therapy prior authorization may require the prescriber to use
 1013  the medications of a similar drug class or for a similar medical
 1014  indication unless contraindicated in the Food and Drug
 1015  Administration labeling. The trial period between the specified
 1016  steps may vary according to the medical indication. The step
 1017  therapy approval process shall be developed in accordance with
 1018  the committee as stated in s. 409.91195(7) and (8). A drug
 1019  product may be approved without meeting the step-therapy prior
 1020  authorization criteria if the prescribing physician provides the
 1021  agency with additional written medical or clinical documentation
 1022  that the product is medically necessary because:
 1023         a. There is not a drug on the preferred drug list to treat
 1024  the disease or medical condition which is an acceptable clinical
 1025  alternative;
 1026         b. The alternatives have been ineffective in the treatment
 1027  of the beneficiary’s disease; or
 1028         c. Based on historic evidence and known characteristics of
 1029  the patient and the drug, the drug is likely to be ineffective,
 1030  or the number of doses have been ineffective.
 1031  
 1032  The agency shall work with the physician to determine the best
 1033  alternative for the patient. The agency may adopt rules waiving
 1034  the requirements for written clinical documentation for specific
 1035  drugs in limited clinical situations.
 1036         17. The agency shall implement a return and reuse program
 1037  for drugs dispensed by pharmacies to institutional recipients,
 1038  which includes payment of a $5 restocking fee for the
 1039  implementation and operation of the program. The return and
 1040  reuse program shall be implemented electronically and in a
 1041  manner that promotes efficiency. The program must permit a
 1042  pharmacy to exclude drugs from the program if it is not
 1043  practical or cost-effective for the drug to be included and must
 1044  provide for the return to inventory of drugs that cannot be
 1045  credited or returned in a cost-effective manner. The agency
 1046  shall determine if the program has reduced the amount of
 1047  Medicaid prescription drugs which are destroyed on an annual
 1048  basis and if there are additional ways to ensure more
 1049  prescription drugs are not destroyed which could safely be
 1050  reused. The agency’s conclusion and recommendations shall be
 1051  reported to the Legislature by December 1, 2005.
 1052         Section 10. Paragraph (a) of subsection (2) of section
 1053  409.9122, Florida Statutes, is amended to read:
 1054         409.9122 Mandatory Medicaid managed care enrollment;
 1055  programs and procedures.—
 1056         (2)(a) The agency shall enroll all Medicaid recipients in a
 1057  managed care plan or MediPass all Medicaid recipients, except
 1058  those Medicaid recipients who are: in an institution, receiving
 1059  a Medicaid nonpoverty medical subsidy,; enrolled in the Medicaid
 1060  medically needy Program; or eligible for both Medicaid and
 1061  Medicare. Upon enrollment, recipients may individuals will be
 1062  able to change their managed care option during the 90-day opt
 1063  out period required by federal Medicaid regulations. The agency
 1064  may is authorized to seek the necessary Medicaid state plan
 1065  amendment to implement this policy. However, to the extent
 1066         1. If permitted by federal law, the agency may enroll in a
 1067  managed care plan or MediPass a Medicaid recipient who is exempt
 1068  from mandatory managed care enrollment in a managed care plan or
 1069  MediPass if, provided that:
 1070         a.1. The recipient’s decision to enroll in a managed care
 1071  plan or MediPass is voluntary;
 1072         b.2.If The recipient chooses to enroll in a managed care
 1073  plan, the agency has determined that the managed care plan
 1074  provides specific programs and services that which address the
 1075  special health needs of the recipient; and
 1076         c.3. The agency receives the any necessary waivers from the
 1077  federal Centers for Medicare and Medicaid Services.
 1078         2. The agency shall develop rules to establish policies by
 1079  which exceptions to the mandatory managed care enrollment
 1080  requirement may be made on a case-by-case basis. The rules must
 1081  shall include the specific criteria to be applied when
 1082  determining making a determination as to whether to exempt a
 1083  recipient from mandatory enrollment in a managed care plan or
 1084  MediPass.
 1085         3. School districts participating in the certified school
 1086  match program pursuant to ss. 409.908(21) and 1011.70 shall be
 1087  reimbursed by Medicaid, subject to the limitations of s.
 1088  1011.70(1), for a Medicaid-eligible child participating in the
 1089  services as authorized in s. 1011.70, as provided for in s.
 1090  409.9071, regardless of whether the child is enrolled in
 1091  MediPass or a managed care plan. Managed care plans must shall
 1092  make a good faith effort to execute agreements with school
 1093  districts regarding the coordinated provision of services
 1094  authorized under s. 1011.70.
 1095         4. County health departments delivering school-based
 1096  services pursuant to ss. 381.0056 and 381.0057 shall be
 1097  reimbursed by Medicaid for the federal share for a Medicaid
 1098  eligible child who receives Medicaid-covered services in a
 1099  school setting, regardless of whether the child is enrolled in
 1100  MediPass or a managed care plan. Managed care plans shall make a
 1101  good faith effort to execute agreements with county health
 1102  departments that coordinate the regarding the coordinated
 1103  provision of services to a Medicaid-eligible child. To ensure
 1104  continuity of care for Medicaid patients, the agency, the
 1105  Department of Health, and the Department of Education shall
 1106  develop procedures for ensuring that a student’s managed care
 1107  plan or MediPass provider receives information relating to
 1108  services provided in accordance with ss. 381.0056, 381.0057,
 1109  409.9071, and 1011.70.
 1110         Section 11. Paragraph (a) of subsection (1) of section
 1111  409.915, Florida Statutes, is amended to read:
 1112         409.915 County contributions to Medicaid.—Although the
 1113  state is responsible for the full portion of the state share of
 1114  the matching funds required for the Medicaid program, in order
 1115  to acquire a certain portion of these funds, the state shall
 1116  charge the counties for certain items of care and service as
 1117  provided in this section.
 1118         (1) Each county shall participate in the following items of
 1119  care and service:
 1120         (a) For both health maintenance members and fee-for-service
 1121  beneficiaries, payments for inpatient hospitalization in excess
 1122  of 10 days, but not in excess of 45 days, with the exception of
 1123  pregnant women and children whose income is greater than in
 1124  excess of the federal poverty level and who do not receive a
 1125  Medicaid nonpoverty medical subsidy under s. 409.904(2)
 1126  participate in the Medicaid medically needy Program, and for
 1127  adult lung transplant services.
 1128         Section 12. Subsections (1) and (2) of section 409.9301,
 1129  Florida Statutes, are amended to read:
 1130         409.9301 Pharmaceutical expense assistance.—
 1131         (1) PROGRAM ESTABLISHED.—A program is established in the
 1132  agency for Health Care Administration to provide pharmaceutical
 1133  expense assistance to individuals diagnosed with cancer or
 1134  individuals who have obtained received organ transplants who
 1135  received a Medicaid nonpoverty medical subsidy before were
 1136  medically needy recipients prior to January 1, 2006.
 1137         (2) ELIGIBILITY.—Eligibility for the program is limited to
 1138  an individual who:
 1139         (a) Is a resident of this state;
 1140         (b) Was a Medicaid recipient who received a Medicaid
 1141  nonpoverty medical subsidy before under the Florida Medicaid
 1142  medically needy program prior to January 1, 2006;
 1143         (c) Is eligible for Medicare;
 1144         (d) Is a cancer patient or an organ transplant recipient;
 1145  and
 1146         (e) Requests to be enrolled in the program.
 1147         Section 13. This act shall take effect June 30, 2011.