SB 2144                                          First Engrossed
       
       
       
       
       
       
       
       
       20112144e1
       
    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; exempting certain nursing
   18         home facilities from the quality assessment; amending
   19         s. 409.911, F.S.; updating references to data to be
   20         used for the disproportionate share program; amending
   21         s. 409.9112, F.S.; extending the prohibition against
   22         distributing moneys under the regional perinatal
   23         intensive care centers disproportionate share program
   24         for another year; amending s. 409.9113, F.S.;
   25         extending the disproportionate share program for
   26         teaching hospitals for another year; amending s.
   27         409.9117, F.S.; extending the prohibition against
   28         distributing moneys under the primary care
   29         disproportionate share program for another year;
   30         amending s. 409.912, F.S.; allowing the agency to
   31         continue to contract for electronic access to certain
   32         pharmacology drug information; eliminating the
   33         requirement to implement a wireless handheld clinical
   34         pharmacology drug information database for
   35         practitioners; revising the factors for calculating
   36         the maximum allowable fee for pharmaceutical
   37         ingredient costs; amending ss. 409.9122, 409.915, and
   38         409.9301, F.S.; conforming provisions to changes made
   39         by the act; providing an effective date.
   40  
   41  Be It Enacted by the Legislature of the State of Florida:
   42  
   43         Section 1. Subsections (1) and (2) of section 409.904,
   44  Florida Statutes, are amended to read:
   45         409.904 Optional payments for eligible persons.—The agency
   46  may make payments for medical assistance and related services on
   47  behalf of the following persons who are determined to be
   48  eligible subject to the income, assets, and categorical
   49  eligibility tests set forth in federal and state law. Payment on
   50  behalf of these Medicaid eligible persons is subject to the
   51  availability of moneys and any limitations established by the
   52  General Appropriations Act or chapter 216.
   53         (1) Effective January 1, 2006, and Subject to federal
   54  waiver approval, a person who is age 65 or older or is
   55  determined to be disabled, whose income is at or below 88
   56  percent of the federal poverty level, whose assets do not exceed
   57  established limitations, and who is not eligible for Medicare
   58  or, if eligible for Medicare, is also eligible for and receiving
   59  Medicaid-covered institutional care services, hospice services,
   60  or home and community-based services. The agency shall seek
   61  federal authorization through a waiver to provide this coverage.
   62  This eligibility category subsection expires June 30, 2011.
   63  However, for the purpose of phasing out this category, the
   64  agency may continue making payments through March 31, 2012.
   65         (2)(a) A family, a pregnant woman, a child under age 21, a
   66  person age 65 or over, or a blind or disabled person, who would
   67  be eligible under any group listed in s. 409.903(1), (2), or
   68  (3), except that the income or assets of such family or person
   69  exceed established limitations is eligible for the Medicaid
   70  nonpoverty medical subsidy, which includes the same services as
   71  those provided to other Medicaid recipients, with the exception
   72  of services in skilled nursing facilities and intermediate care
   73  facilities for the developmentally disabled. For a family or
   74  person in one of these coverage groups, medical expenses are
   75  deductible from income in accordance with federal requirements
   76  in order to make a determination of eligibility. Effective April
   77  1, 2012, a family, a person age 65 or older, or a blind or
   78  disabled person is eligible to receive physician services only.
   79  A family or person eligible under the coverage known as the
   80  “medically needy,” is eligible to receive the same services as
   81  other Medicaid recipients, with the exception of services in
   82  skilled nursing facilities and intermediate care facilities for
   83  the developmentally disabled. This paragraph expires June 30,
   84  2011.
   85         (b) Effective July 1, 2011, a pregnant woman or a child
   86  younger than 21 years of age who would be eligible under any
   87  group listed in s. 409.903, except that the income or assets of
   88  such group exceed established limitations. For a person in one
   89  of these coverage groups, medical expenses are deductible from
   90  income in accordance with federal requirements in order to make
   91  a determination of eligibility. A person eligible under the
   92  coverage known as the “medically needy” is eligible to receive
   93  the same services as other Medicaid recipients, with the
   94  exception of services in skilled nursing facilities and
   95  intermediate care facilities for the developmentally disabled.
   96         Section 2. Paragraphs (d), (e), and (f) of subsection (5)
   97  of section 409.905, Florida Statutes, are amended to read:
   98         409.905 Mandatory Medicaid services.—The agency may make
   99  payments for the following services, which are required of the
  100  state by Title XIX of the Social Security Act, furnished by
  101  Medicaid providers to recipients who are determined to be
  102  eligible on the dates on which the services were provided. Any
  103  service under this section shall be provided only when medically
  104  necessary and in accordance with state and federal law.
  105  Mandatory services rendered by providers in mobile units to
  106  Medicaid recipients may be restricted by the agency. Nothing in
  107  this section shall be construed to prevent or limit the agency
  108  from adjusting fees, reimbursement rates, lengths of stay,
  109  number of visits, number of services, or any other adjustments
  110  necessary to comply with the availability of moneys and any
  111  limitations or directions provided for in the General
  112  Appropriations Act or chapter 216.
  113         (5) HOSPITAL INPATIENT SERVICES.—The agency shall pay for
  114  all covered services provided for the medical care and treatment
  115  of a recipient who is admitted as an inpatient by a licensed
  116  physician or dentist to a hospital licensed under part I of
  117  chapter 395. However, the agency shall limit the payment for
  118  inpatient hospital services for a Medicaid recipient 21 years of
  119  age or older to 45 days or the number of days necessary to
  120  comply with the General Appropriations Act.
  121         (d) The agency shall implement a hospitalist program in
  122  nonteaching hospitals, select counties, or statewide. The
  123  program shall require hospitalists to manage Medicaid
  124  recipients’ hospital admissions and lengths of stay. Individuals
  125  who are dually eligible for Medicare and Medicaid are exempted
  126  from this requirement. Medicaid participating physicians and
  127  other practitioners with hospital admitting privileges shall
  128  coordinate and review admissions of Medicaid recipients with the
  129  hospitalist. The agency may competitively bid a contract for
  130  selection of a single qualified organization to provide
  131  hospitalist services. The agency may procure hospitalist
  132  services by individual county or may combine counties in a
  133  single procurement. The qualified organization shall contract
  134  with or employ board-eligible physicians in Miami-Dade, Palm
  135  Beach, Hillsborough, Pasco, and Pinellas Counties. The agency is
  136  authorized to seek federal waivers to implement this program.
  137         (d)(e) The agency shall implement a comprehensive
  138  utilization management program for hospital neonatal intensive
  139  care stays in certain high-volume participating hospitals,
  140  select counties, or statewide, and shall replace existing
  141  hospital inpatient utilization management programs for neonatal
  142  intensive care admissions. The program shall be designed to
  143  manage the lengths of stay for children being treated in
  144  neonatal intensive care units and must seek the earliest
  145  medically appropriate discharge to the child’s home or other
  146  less costly treatment setting. The agency may competitively bid
  147  a contract for the selection of a qualified organization to
  148  provide neonatal intensive care utilization management services.
  149  The agency may is authorized to seek any federal waivers to
  150  implement this initiative.
  151         (e)(f) The agency may develop and implement a program to
  152  reduce the number of hospital readmissions among the non
  153  Medicare population eligible in areas 9, 10, and 11.
  154         Section 3. Subsections (14) and (23) of section 409.908,
  155  Florida Statutes, are amended to read:
  156         409.908 Reimbursement of Medicaid providers.—Subject to
  157  specific appropriations, the agency shall reimburse Medicaid
  158  providers, in accordance with state and federal law, according
  159  to methodologies set forth in the rules of the agency and in
  160  policy manuals and handbooks incorporated by reference therein.
  161  These methodologies may include fee schedules, reimbursement
  162  methods based on cost reporting, negotiated fees, competitive
  163  bidding pursuant to s. 287.057, and other mechanisms the agency
  164  considers efficient and effective for purchasing services or
  165  goods on behalf of recipients. If a provider is reimbursed based
  166  on cost reporting and submits a cost report late and that cost
  167  report would have been used to set a lower reimbursement rate
  168  for a rate semester, then the provider’s rate for that semester
  169  shall be retroactively calculated using the new cost report, and
  170  full payment at the recalculated rate shall be effected
  171  retroactively. Medicare-granted extensions for filing cost
  172  reports, if applicable, shall also apply to Medicaid cost
  173  reports. Payment for Medicaid compensable services made on
  174  behalf of Medicaid eligible persons is subject to the
  175  availability of moneys and any limitations or directions
  176  provided for in the General Appropriations Act or chapter 216.
  177  Further, nothing in this section shall be construed to prevent
  178  or limit the agency from adjusting fees, reimbursement rates,
  179  lengths of stay, number of visits, or number of services, or
  180  making any other adjustments necessary to comply with the
  181  availability of moneys and any limitations or directions
  182  provided for in the General Appropriations Act, provided the
  183  adjustment is consistent with legislative intent.
  184         (14) A provider of prescribed drugs shall be reimbursed the
  185  least of the amount billed by the provider, the provider’s usual
  186  and customary charge, or the Medicaid maximum allowable fee
  187  established by the agency, plus a dispensing fee. The Medicaid
  188  maximum allowable fee for ingredient cost must will be based on
  189  the lowest lower of: the average wholesale price (AWP) minus
  190  16.4 percent, the wholesaler acquisition cost (WAC) plus 1.5
  191  4.75 percent, the federal upper limit (FUL), the state maximum
  192  allowable cost (SMAC), or the usual and customary (UAC) charge
  193  billed by the provider.
  194         (a) Medicaid providers must are required to dispense
  195  generic drugs if available at lower cost and the agency has not
  196  determined that the branded product is more cost-effective,
  197  unless the prescriber has requested and received approval to
  198  require the branded product.
  199         (b) The agency shall is directed to implement a variable
  200  dispensing fee for payments for prescribed medicines while
  201  ensuring continued access for Medicaid recipients. The variable
  202  dispensing fee may be based upon, but not limited to, either or
  203  both the volume of prescriptions dispensed by a specific
  204  pharmacy provider, the volume of prescriptions dispensed to an
  205  individual recipient, and dispensing of preferred-drug-list
  206  products.
  207         (c) The agency may increase the pharmacy dispensing fee
  208  authorized by statute and in the annual General Appropriations
  209  Act by $0.50 for the dispensing of a Medicaid preferred-drug
  210  list product and reduce the pharmacy dispensing fee by $0.50 for
  211  the dispensing of a Medicaid product that is not included on the
  212  preferred drug list.
  213         (d) The agency may establish a supplemental pharmaceutical
  214  dispensing fee to be paid to providers returning unused unit
  215  dose packaged medications to stock and crediting the Medicaid
  216  program for the ingredient cost of those medications if the
  217  ingredient costs to be credited exceed the value of the
  218  supplemental dispensing fee.
  219         (e) The agency may is authorized to limit reimbursement for
  220  prescribed medicine in order to comply with any limitations or
  221  directions provided for in the General Appropriations Act, which
  222  may include implementing a prospective or concurrent utilization
  223  review program.
  224         (23)(a) The agency shall establish rates at a level that
  225  ensures no increase in statewide expenditures resulting from a
  226  change in unit costs for 2 fiscal years effective July 1, 2009.
  227         (a) Reimbursement rates for the 2011-2012 state fiscal year
  228  2 fiscal years shall be as provided in the General
  229  Appropriations Act.
  230         (b) This subsection applies to the following provider
  231  types:
  232         1. Inpatient hospitals.
  233         2. Outpatient hospitals.
  234         3. Nursing homes.
  235         4. County health departments.
  236         5. Community intermediate care facilities for the
  237  developmentally disabled.
  238         6. Prepaid health plans.
  239         (c) The agency shall apply the effect of this subsection to
  240  the reimbursement rates for nursing home diversion programs.
  241         (c) The agency shall create a workgroup on hospital
  242  reimbursement, a workgroup on nursing facility reimbursement,
  243  and a workgroup on managed care plan payment. The workgroups
  244  shall evaluate alternative reimbursement and payment
  245  methodologies for hospitals, nursing facilities, and managed
  246  care plans, including prospective payment methodologies for
  247  hospitals and nursing facilities. The nursing facility workgroup
  248  shall also consider price-based methodologies for indirect care
  249  and acuity adjustments for direct care. The agency shall submit
  250  a report on the evaluated alternative reimbursement
  251  methodologies to the relevant committees of the Senate and the
  252  House of Representatives by November 1, 2009.
  253         (d) This subsection expires June 30, 2012 2011.
  254         Section 4. Subsection (2) and paragraph (d) of subsection
  255  (3) of section 409.9082, Florida Statutes, are amended to read:
  256         409.9082 Quality assessment on nursing home facility
  257  providers; exemptions; purpose; federal approval required;
  258  remedies.—
  259         (2) Effective April 1, 2009, a quality assessment there is
  260  imposed upon each nursing home facility a quality assessment.
  261  The aggregated amount of assessments for all nursing home
  262  facilities in a given year may shall be an amount not exceed the
  263  maximum percentage exceeding 5.5 percent of the total aggregate
  264  net patient service revenue of assessed facilities allowed under
  265  federal law. The agency shall calculate the quality assessment
  266  rate annually on a per-resident-day basis, exclusive of those
  267  resident days funded by the Medicare program, as reported by the
  268  facilities. The per-resident-day assessment rate must shall be
  269  uniform except as prescribed in subsection (3). Each facility
  270  shall report monthly to the agency its total number of resident
  271  days, exclusive of Medicare Part A resident days, and shall
  272  remit an amount equal to the assessment rate times the reported
  273  number of days. The agency shall collect, and each facility
  274  shall pay, the quality assessment each month. The agency shall
  275  collect the assessment from nursing home facility providers by
  276  no later than the 15th day of the next succeeding calendar
  277  month. The agency shall notify providers of the quality
  278  assessment and provide a standardized form to complete and
  279  submit with payments. The collection of the nursing home
  280  facility quality assessment shall commence no sooner than 5 days
  281  after the agency’s initial payment of the Medicaid rates
  282  containing the elements prescribed in subsection (4). Nursing
  283  home facilities may not create a separate line-item charge for
  284  the purpose of passing through the assessment through to
  285  residents.
  286         (3)
  287         (d) Effective July 1, 2011 2009, the agency shall may
  288  exempt from the quality assessment any or apply a lower quality
  289  assessment rate to a qualified public, nonstate-owned or
  290  operated nursing home facility whose total annual indigent
  291  census days are greater than 15 25 percent of the facility’s
  292  total annual census days.
  293         Section 5. Paragraph (a) of subsection (2) of section
  294  409.911, Florida Statutes, is amended to read:
  295         409.911 Disproportionate share program.—Subject to specific
  296  allocations established within the General Appropriations Act
  297  and any limitations established pursuant to chapter 216, the
  298  agency shall distribute, pursuant to this section, moneys to
  299  hospitals providing a disproportionate share of Medicaid or
  300  charity care services by making quarterly Medicaid payments as
  301  required. Notwithstanding the provisions of s. 409.915, counties
  302  are exempt from contributing toward the cost of this special
  303  reimbursement for hospitals serving a disproportionate share of
  304  low-income patients.
  305         (2) The Agency for Health Care Administration shall use the
  306  following actual audited data to determine the Medicaid days and
  307  charity care to be used in calculating the disproportionate
  308  share payment:
  309         (a) The average of the 2004, 2005, and 2006 2003, 2004, and
  310  2005 audited disproportionate share data to determine each
  311  hospital’s Medicaid days and charity care for the 2011-2012
  312  2010-2011 state fiscal year.
  313         Section 6. Section 409.9112, Florida Statutes, is amended
  314  to read:
  315         409.9112 Disproportionate share program for regional
  316  perinatal intensive care centers.—In addition to the payments
  317  made under s. 409.911, the agency shall design and implement a
  318  system for making disproportionate share payments to those
  319  hospitals that participate in the regional perinatal intensive
  320  care center program established pursuant to chapter 383. The
  321  system of payments must conform to federal requirements and
  322  distribute funds in each fiscal year for which an appropriation
  323  is made by making quarterly Medicaid payments. Notwithstanding
  324  s. 409.915, counties are exempt from contributing toward the
  325  cost of this special reimbursement for hospitals serving a
  326  disproportionate share of low-income patients. For the 2011-2012
  327  2010-2011 state fiscal year, the agency may not distribute
  328  moneys under the regional perinatal intensive care centers
  329  disproportionate share program.
  330         (1) The following formula shall be used by the agency to
  331  calculate the total amount earned for hospitals that participate
  332  in the regional perinatal intensive care center program:
  333  
  334                          TAE = HDSP/THDSP                         
  335  
  336  Where:
  337         TAE = total amount earned by a regional perinatal intensive
  338  care center.
  339         HDSP = the prior state fiscal year regional perinatal
  340  intensive care center disproportionate share payment to the
  341  individual hospital.
  342         THDSP = the prior state fiscal year total regional
  343  perinatal intensive care center disproportionate share payments
  344  to all hospitals.
  345  
  346         (2) The total additional payment for hospitals that
  347  participate in the regional perinatal intensive care center
  348  program shall be calculated by the agency as follows:
  349  
  350                           TAP = TAE x TA                          
  351  
  352  Where:
  353         TAP = total additional payment for a regional perinatal
  354  intensive care center.
  355         TAE = total amount earned by a regional perinatal intensive
  356  care center.
  357         TA = total appropriation for the regional perinatal
  358  intensive care center disproportionate share program.
  359  
  360         (3) In order to receive payments under this section, a
  361  hospital must be participating in the regional perinatal
  362  intensive care center program pursuant to chapter 383 and must
  363  meet the following additional requirements:
  364         (a) Agree to conform to all departmental and agency
  365  requirements to ensure high quality in the provision of
  366  services, including criteria adopted by departmental and agency
  367  rule concerning staffing ratios, medical records, standards of
  368  care, equipment, space, and such other standards and criteria as
  369  the department and agency deem appropriate as specified by rule.
  370         (b) Agree to provide information to the Department of
  371  Health and the agency, in a form and manner to be prescribed by
  372  rule of the department and agency, concerning the care provided
  373  to all patients in neonatal intensive care centers and high-risk
  374  maternity care.
  375         (c) Agree to accept all patients for neonatal intensive
  376  care and high-risk maternity care, regardless of ability to pay,
  377  on a functional space-available basis.
  378         (d) Agree to develop arrangements with other maternity and
  379  neonatal care providers in the hospital’s region for the
  380  appropriate receipt and transfer of patients in need of
  381  specialized maternity and neonatal intensive care services.
  382         (e) Agree to establish and provide a developmental
  383  evaluation and services program for certain high-risk neonates,
  384  as prescribed and defined by rule of the department.
  385         (f) Agree to sponsor a program of continuing education in
  386  perinatal care for health care professionals within the region
  387  of the hospital, as specified by rule.
  388         (g) Agree to provide backup and referral services to the
  389  county health departments and other low-income perinatal
  390  providers within the hospital’s region, including the
  391  development of written agreements between these organizations
  392  and the hospital.
  393         (h) Agree to arrange for transportation for high-risk
  394  obstetrical patients and neonates in need of transfer from the
  395  community to the hospital or from the hospital to another more
  396  appropriate facility.
  397         (4) Hospitals that which fail to comply with any of the
  398  conditions in subsection (3) or the applicable rules of the
  399  Department of Health and the agency may not receive any payments
  400  under this section until full compliance is achieved. A hospital
  401  that which is not in compliance in two or more consecutive
  402  quarters may not receive its share of the funds. Any forfeited
  403  funds shall be distributed by the remaining participating
  404  regional perinatal intensive care center program hospitals.
  405         Section 7. Section 409.9113, Florida Statutes, is amended
  406  to read:
  407         409.9113 Disproportionate share program for teaching
  408  hospitals.—In addition to the payments made under ss. 409.911
  409  and 409.9112, the agency shall make disproportionate share
  410  payments to statutorily defined teaching hospitals, as defined
  411  in s. 408.07, for their increased costs associated with medical
  412  education programs and for tertiary health care services
  413  provided to the indigent. This system of payments must conform
  414  to federal requirements and distribute funds in each fiscal year
  415  for which an appropriation is made by making quarterly Medicaid
  416  payments. Notwithstanding s. 409.915, counties are exempt from
  417  contributing toward the cost of this special reimbursement for
  418  hospitals serving a disproportionate share of low-income
  419  patients. For the 2011-2012 2010-2011 state fiscal year, the
  420  agency shall distribute the moneys provided in the General
  421  Appropriations Act to statutorily defined teaching hospitals and
  422  family practice teaching hospitals, as defined in s. 395.805,
  423  pursuant to this section under the teaching hospital
  424  disproportionate share program. The funds provided for
  425  statutorily defined teaching hospitals shall be distributed in
  426  the same proportion as the state fiscal year 2003-2004 state
  427  fiscal year teaching hospital disproportionate share funds were
  428  distributed or as otherwise provided in the General
  429  Appropriations Act. The funds provided for family practice
  430  teaching hospitals shall be distributed equally among family
  431  practice teaching hospitals.
  432         (1) On or before September 15 of each year, the agency
  433  shall calculate an allocation fraction to be used for
  434  distributing funds to state statutory teaching hospitals.
  435  Subsequent to the end of each quarter of the state fiscal year,
  436  the agency shall distribute to each statutory teaching hospital,
  437  as defined in s. 408.07, an amount determined by multiplying
  438  one-fourth of the funds appropriated for this purpose by the
  439  Legislature times such hospital’s allocation fraction. The
  440  allocation fraction for each such hospital shall be determined
  441  by the sum of the following three primary factors, divided by
  442  three:
  443         (a) The number of nationally accredited graduate medical
  444  education programs offered by the hospital, including programs
  445  accredited by the Accreditation Council for Graduate Medical
  446  Education and the combined Internal Medicine and Pediatrics
  447  programs acceptable to both the American Board of Internal
  448  Medicine and the American Board of Pediatrics at the beginning
  449  of the state fiscal year preceding the date on which the
  450  allocation fraction is calculated. The numerical value of this
  451  factor is the fraction that the hospital represents of the total
  452  number of programs, where the total is computed for all state
  453  statutory teaching hospitals.
  454         (b) The number of full-time equivalent trainees in the
  455  hospital, which comprises two components:
  456         1. The number of trainees enrolled in nationally accredited
  457  graduate medical education programs, as defined in paragraph
  458  (a). Full-time equivalents are computed using the fraction of
  459  the year during which each trainee is primarily assigned to the
  460  given institution, over the state fiscal year preceding the date
  461  on which the allocation fraction is calculated. The numerical
  462  value of this factor is the fraction that the hospital
  463  represents of the total number of full-time equivalent trainees
  464  enrolled in accredited graduate programs, where the total is
  465  computed for all state statutory teaching hospitals.
  466         2. The number of medical students enrolled in accredited
  467  colleges of medicine and engaged in clinical activities,
  468  including required clinical clerkships and clinical electives.
  469  Full-time equivalents are computed using the fraction of the
  470  year during which each trainee is primarily assigned to the
  471  given institution, over the course of the state fiscal year
  472  preceding the date on which the allocation fraction is
  473  calculated. The numerical value of this factor is the fraction
  474  that the given hospital represents of the total number of full
  475  time equivalent students enrolled in accredited colleges of
  476  medicine, where the total is computed for all state statutory
  477  teaching hospitals.
  478  
  479  The primary factor for full-time equivalent trainees is computed
  480  as the sum of these two components, divided by two.
  481         (c) A service index that comprises three components:
  482         1. The Agency for Health Care Administration Service Index,
  483  computed by applying the standard Service Inventory Scores
  484  established by the agency to services offered by the given
  485  hospital, as reported on Worksheet A-2 for the last fiscal year
  486  reported to the agency before the date on which the allocation
  487  fraction is calculated. The numerical value of this factor is
  488  the fraction that the given hospital represents of the total
  489  Agency for Health Care Administration Service index values,
  490  where the total is computed for all state statutory teaching
  491  hospitals.
  492         2. A volume-weighted service index, computed by applying
  493  the standard Service Inventory Scores established by the agency
  494  for Health Care Administration to the volume of each service,
  495  expressed in terms of the standard units of measure reported on
  496  Worksheet A-2 for the last fiscal year reported to the agency
  497  before the date on which the allocation factor is calculated.
  498  The numerical value of this factor is the fraction that the
  499  given hospital represents of the total volume-weighted service
  500  index values, where the total is computed for all state
  501  statutory teaching hospitals.
  502         3. Total Medicaid payments to each hospital for direct
  503  inpatient and outpatient services during the fiscal year
  504  preceding the date on which the allocation factor is calculated.
  505  This includes payments made to each hospital for such services
  506  by Medicaid prepaid health plans, whether the plan was
  507  administered by the hospital or not. The numerical value of this
  508  factor is the fraction that each hospital represents of the
  509  total of such Medicaid payments, where the total is computed for
  510  all state statutory teaching hospitals.
  511  
  512  The primary factor for the service index is computed as the sum
  513  of these three components, divided by three.
  514         (2) By October 1 of each year, the agency shall use the
  515  following formula to calculate the maximum additional
  516  disproportionate share payment for statutory statutorily defined
  517  teaching hospitals:
  518  
  519                           TAP = THAF x A                          
  520  
  521  Where:
  522         TAP = total additional payment.
  523         THAF = teaching hospital allocation factor.
  524         A = amount appropriated for a teaching hospital
  525  disproportionate share program.
  526         Section 8. Section 409.9117, Florida Statutes, is amended
  527  to read:
  528         409.9117 Primary care disproportionate share program.—For
  529  the 2011-2012 2010-2011 state fiscal year, the agency may shall
  530  not distribute moneys under the primary care disproportionate
  531  share program.
  532         (1) If federal funds are available for disproportionate
  533  share programs in addition to those otherwise provided by law,
  534  there shall be created a primary care disproportionate share
  535  program shall be established.
  536         (2) The following formula shall be used by the agency to
  537  calculate the total amount earned for hospitals that participate
  538  in the primary care disproportionate share program:
  539  
  540                          TAE = HDSP/THDSP                         
  541  
  542  Where:
  543         TAE = total amount earned by a hospital participating in
  544  the primary care disproportionate share program.
  545         HDSP = the prior state fiscal year primary care
  546  disproportionate share payment to the individual hospital.
  547         THDSP = the prior state fiscal year total primary care
  548  disproportionate share payments to all hospitals.
  549  
  550         (3) The total additional payment for hospitals that
  551  participate in the primary care disproportionate share program
  552  shall be calculated by the agency as follows:
  553  
  554                           TAP = TAE x TA                          
  555  
  556  Where:
  557         TAP = total additional payment for a primary care hospital.
  558         TAE = total amount earned by a primary care hospital.
  559         TA = total appropriation for the primary care
  560  disproportionate share program.
  561  
  562         (4) In establishing the establishment and funding of this
  563  program, the agency shall use the following criteria in addition
  564  to those specified in s. 409.911, and payments may not be made
  565  to a hospital unless the hospital agrees to:
  566         (a) Cooperate with a Medicaid prepaid health plan, if one
  567  exists in the community.
  568         (b) Ensure the availability of primary and specialty care
  569  physicians to Medicaid recipients who are not enrolled in a
  570  prepaid capitated arrangement and who are in need of access to
  571  such physicians.
  572         (c) Coordinate and provide primary care services free of
  573  charge, except copayments, to all persons with incomes up to 100
  574  percent of the federal poverty level who are not otherwise
  575  covered by Medicaid or another program administered by a
  576  governmental entity, and to provide such services based on a
  577  sliding fee scale to all persons with incomes up to 200 percent
  578  of the federal poverty level who are not otherwise covered by
  579  Medicaid or another program administered by a governmental
  580  entity, except that eligibility may be limited to persons who
  581  reside within a more limited area, as agreed to by the agency
  582  and the hospital.
  583         (d) Contract with any federally qualified health center, if
  584  one exists within the agreed geopolitical boundaries, concerning
  585  the provision of primary care services, in order to guarantee
  586  delivery of services in a nonduplicative fashion, and to provide
  587  for referral arrangements, privileges, and admissions, as
  588  appropriate. The hospital shall agree to provide at an onsite or
  589  offsite facility primary care services within 24 hours at an
  590  onsite or offsite facility to which all Medicaid recipients and
  591  persons eligible under this paragraph who do not require
  592  emergency room services are referred during normal daylight
  593  hours.
  594         (e) Cooperate with the agency, the county, and other
  595  entities to ensure the provision of certain public health
  596  services, case management, referral and acceptance of patients,
  597  and sharing of epidemiological data, as the agency and the
  598  hospital find mutually necessary and desirable to promote and
  599  protect the public health within the agreed geopolitical
  600  boundaries.
  601         (f) In cooperation with the county in which the hospital
  602  resides, develop a low-cost, outpatient, prepaid health care
  603  program to persons who are not eligible for the Medicaid
  604  program, and who reside within the area.
  605         (g) Provide inpatient services to residents within the area
  606  who are not eligible for Medicaid or Medicare, and who do not
  607  have private health insurance, regardless of ability to pay, on
  608  the basis of available space, except that hospitals may not be
  609  prevented from establishing bill collection programs based on
  610  ability to pay.
  611         (h) Work with the Florida Healthy Kids Corporation, the
  612  Florida Health Care Purchasing Cooperative, and business health
  613  coalitions, as appropriate, to develop a feasibility study and
  614  plan to provide a low-cost comprehensive health insurance plan
  615  to persons who reside within the area and who do not have access
  616  to such a plan.
  617         (i) Work with public health officials and other experts to
  618  provide community health education and prevention activities
  619  designed to promote healthy lifestyles and appropriate use of
  620  health services.
  621         (j) Work with the local health council to develop a plan
  622  for promoting access to affordable health care services for all
  623  persons who reside within the area, including, but not limited
  624  to, public health services, primary care services, inpatient
  625  services, and affordable health insurance generally.
  626  
  627  Any hospital that fails to comply with any of the provisions of
  628  this subsection, or any other contractual condition, may not
  629  receive payments under this section until full compliance is
  630  achieved.
  631         Section 9. Paragraph (b) of subsection (16) and paragraph
  632  (a) of subsection (39) of section 409.912, Florida Statutes, are
  633  amended to read:
  634         409.912 Cost-effective purchasing of health care.—The
  635  agency shall purchase goods and services for Medicaid recipients
  636  in the most cost-effective manner consistent with the delivery
  637  of quality medical care. To ensure that medical services are
  638  effectively utilized, the agency may, in any case, require a
  639  confirmation or second physician’s opinion of the correct
  640  diagnosis for purposes of authorizing future services under the
  641  Medicaid program. This section does not restrict access to
  642  emergency services or poststabilization care services as defined
  643  in 42 C.F.R. part 438.114. Such confirmation or second opinion
  644  shall be rendered in a manner approved by the agency. The agency
  645  shall maximize the use of prepaid per capita and prepaid
  646  aggregate fixed-sum basis services when appropriate and other
  647  alternative service delivery and reimbursement methodologies,
  648  including competitive bidding pursuant to s. 287.057, designed
  649  to facilitate the cost-effective purchase of a case-managed
  650  continuum of care. The agency shall also require providers to
  651  minimize the exposure of recipients to the need for acute
  652  inpatient, custodial, and other institutional care and the
  653  inappropriate or unnecessary use of high-cost services. The
  654  agency shall contract with a vendor to monitor and evaluate the
  655  clinical practice patterns of providers in order to identify
  656  trends that are outside the normal practice patterns of a
  657  provider’s professional peers or the national guidelines of a
  658  provider’s professional association. The vendor must be able to
  659  provide information and counseling to a provider whose practice
  660  patterns are outside the norms, in consultation with the agency,
  661  to improve patient care and reduce inappropriate utilization.
  662  The agency may mandate prior authorization, drug therapy
  663  management, or disease management participation for certain
  664  populations of Medicaid beneficiaries, certain drug classes, or
  665  particular drugs to prevent fraud, abuse, overuse, and possible
  666  dangerous drug interactions. The Pharmaceutical and Therapeutics
  667  Committee shall make recommendations to the agency on drugs for
  668  which prior authorization is required. The agency shall inform
  669  the Pharmaceutical and Therapeutics Committee of its decisions
  670  regarding drugs subject to prior authorization. The agency is
  671  authorized to limit the entities it contracts with or enrolls as
  672  Medicaid providers by developing a provider network through
  673  provider credentialing. The agency may competitively bid single
  674  source-provider contracts if procurement of goods or services
  675  results in demonstrated cost savings to the state without
  676  limiting access to care. The agency may limit its network based
  677  on the assessment of beneficiary access to care, provider
  678  availability, provider quality standards, time and distance
  679  standards for access to care, the cultural competence of the
  680  provider network, demographic characteristics of Medicaid
  681  beneficiaries, practice and provider-to-beneficiary standards,
  682  appointment wait times, beneficiary use of services, provider
  683  turnover, provider profiling, provider licensure history,
  684  previous program integrity investigations and findings, peer
  685  review, provider Medicaid policy and billing compliance records,
  686  clinical and medical record audits, and other factors. Providers
  687  shall not be entitled to enrollment in the Medicaid provider
  688  network. The agency shall determine instances in which allowing
  689  Medicaid beneficiaries to purchase durable medical equipment and
  690  other goods is less expensive to the Medicaid program than long
  691  term rental of the equipment or goods. The agency may establish
  692  rules to facilitate purchases in lieu of long-term rentals in
  693  order to protect against fraud and abuse in the Medicaid program
  694  as defined in s. 409.913. The agency may seek federal waivers
  695  necessary to administer these policies.
  696         (16)
  697         (b) The responsibility of the agency under this subsection
  698  includes shall include the development of capabilities to
  699  identify actual and optimal practice patterns; patient and
  700  provider educational initiatives; methods for determining
  701  patient compliance with prescribed treatments; fraud, waste, and
  702  abuse prevention and detection programs; and beneficiary case
  703  management programs.
  704         1. The practice pattern identification program shall
  705  evaluate practitioner prescribing patterns based on national and
  706  regional practice guidelines, comparing practitioners to their
  707  peer groups. The agency and its Drug Utilization Review Board
  708  shall consult with the Department of Health and a panel of
  709  practicing health care professionals consisting of the
  710  following: the Speaker of the House of Representatives and the
  711  President of the Senate shall each appoint three physicians
  712  licensed under chapter 458 or chapter 459; and the Governor
  713  shall appoint two pharmacists licensed under chapter 465 and one
  714  dentist licensed under chapter 466 who is an oral surgeon. Terms
  715  of the panel members shall expire at the discretion of the
  716  appointing official. The advisory panel shall be responsible for
  717  evaluating treatment guidelines and recommending ways to
  718  incorporate their use in the practice pattern identification
  719  program. Practitioners who are prescribing inappropriately or
  720  inefficiently, as determined by the agency, may have their
  721  prescribing of certain drugs subject to prior authorization or
  722  may be terminated from all participation in the Medicaid
  723  program.
  724         2. The agency shall also develop educational interventions
  725  designed to promote the proper use of medications by providers
  726  and beneficiaries.
  727         3. The agency shall implement a pharmacy fraud, waste, and
  728  abuse initiative that may include a surety bond or letter of
  729  credit requirement for participating pharmacies, enhanced
  730  provider auditing practices, the use of additional fraud and
  731  abuse software, recipient management programs for beneficiaries
  732  inappropriately using their benefits, and other steps that will
  733  eliminate provider and recipient fraud, waste, and abuse. The
  734  initiative shall address enforcement efforts to reduce the
  735  number and use of counterfeit prescriptions.
  736         4. By September 30, 2002, The agency may shall contract
  737  with an entity in the state to provide Medicaid providers with
  738  electronic access to Medicaid prescription refill data and
  739  information relating to the Medicaid Preferred Drug List
  740  implement a wireless handheld clinical pharmacology drug
  741  information database for practitioners. The initiative shall be
  742  designed to enhance the agency’s efforts to reduce fraud, abuse,
  743  and errors in the prescription drug benefit program and to
  744  otherwise further the intent of this paragraph.
  745         5. By April 1, 2006, The agency shall contract with an
  746  entity to design a database of clinical utilization information
  747  or electronic medical records for Medicaid providers. The
  748  database This system must be web-based and allow providers to
  749  review on a real-time basis the utilization of Medicaid
  750  services, including, but not limited to, physician office
  751  visits, inpatient and outpatient hospitalizations, laboratory
  752  and pathology services, radiological and other imaging services,
  753  dental care, and patterns of dispensing prescription drugs in
  754  order to coordinate care and identify potential fraud and abuse.
  755         6. The agency may apply for any federal waivers needed to
  756  administer this paragraph.
  757         (39)(a) The agency shall implement a Medicaid prescribed
  758  drug spending-control program that includes the following
  759  components:
  760         1. A Medicaid preferred drug list, which is shall be a
  761  listing of cost-effective therapeutic options recommended by the
  762  Medicaid Pharmacy and Therapeutics Committee established
  763  pursuant to s. 409.91195 and adopted by the agency for each
  764  therapeutic class on the preferred drug list. At the discretion
  765  of the committee, and when feasible, the preferred drug list
  766  should include at least two products in a therapeutic class. The
  767  agency may post the preferred drug list and updates to the
  768  preferred drug list on an Internet website without following the
  769  rulemaking procedures of chapter 120. Antiretroviral agents are
  770  excluded from the preferred drug list. The agency shall also
  771  limit the amount of a prescribed drug dispensed to no more than
  772  a 34-day supply unless the drug products’ smallest marketed
  773  package is greater than a 34-day supply, or the drug is
  774  determined by the agency to be a maintenance drug in which case
  775  a 100-day maximum supply may be authorized. The agency may is
  776  authorized to seek any federal waivers necessary to implement
  777  these cost-control programs and to continue participation in the
  778  federal Medicaid rebate program, or alternatively to negotiate
  779  state-only manufacturer rebates. The agency may adopt rules to
  780  administer implement this subparagraph. The agency shall
  781  continue to provide unlimited contraceptive drugs and items. The
  782  agency must establish procedures to ensure that:
  783         a. There is a response to a request for prior consultation
  784  by telephone or other telecommunication device within 24 hours
  785  after receipt of a request for prior consultation; and
  786         b. A 72-hour supply of the drug prescribed is provided in
  787  an emergency or when the agency does not provide a response
  788  within 24 hours as required by sub-subparagraph a.
  789         2. Reimbursement to pharmacies for Medicaid prescribed
  790  drugs shall be set at the lowest lesser of: the average
  791  wholesale price (AWP) minus 16.4 percent, the wholesaler
  792  acquisition cost (WAC) plus 1.5 4.75 percent, the federal upper
  793  limit (FUL), the state maximum allowable cost (SMAC), or the
  794  usual and customary (UAC) charge billed by the provider.
  795         3. The agency shall develop and implement a process for
  796  managing the drug therapies of Medicaid recipients who are using
  797  significant numbers of prescribed drugs each month. The
  798  management process may include, but is not limited to,
  799  comprehensive, physician-directed medical-record reviews, claims
  800  analyses, and case evaluations to determine the medical
  801  necessity and appropriateness of a patient’s treatment plan and
  802  drug therapies. The agency may contract with a private
  803  organization to provide drug-program-management services. The
  804  Medicaid drug benefit management program shall include
  805  initiatives to manage drug therapies for HIV/AIDS patients,
  806  patients using 20 or more unique prescriptions in a 180-day
  807  period, and the top 1,000 patients in annual spending. The
  808  agency shall enroll any Medicaid recipient in the drug benefit
  809  management program if he or she meets the specifications of this
  810  provision and is not enrolled in a Medicaid health maintenance
  811  organization.
  812         4. The agency may limit the size of its pharmacy network
  813  based on need, competitive bidding, price negotiations,
  814  credentialing, or similar criteria. The agency shall give
  815  special consideration to rural areas in determining the size and
  816  location of pharmacies included in the Medicaid pharmacy
  817  network. A pharmacy credentialing process may include criteria
  818  such as a pharmacy’s full-service status, location, size,
  819  patient educational programs, patient consultation, disease
  820  management services, and other characteristics. The agency may
  821  impose a moratorium on Medicaid pharmacy enrollment if when it
  822  is determined that it has a sufficient number of Medicaid
  823  participating providers. The agency must allow dispensing
  824  practitioners to participate as a part of the Medicaid pharmacy
  825  network regardless of the practitioner’s proximity to any other
  826  entity that is dispensing prescription drugs under the Medicaid
  827  program. A dispensing practitioner must meet all credentialing
  828  requirements applicable to his or her practice, as determined by
  829  the agency.
  830         5. The agency shall develop and implement a program that
  831  requires Medicaid practitioners who prescribe drugs to use a
  832  counterfeit-proof prescription pad for Medicaid prescriptions.
  833  The agency shall require the use of standardized counterfeit
  834  proof prescription pads by Medicaid-participating prescribers or
  835  prescribers who write prescriptions for Medicaid recipients. The
  836  agency may implement the program in targeted geographic areas or
  837  statewide.
  838         6. The agency may enter into arrangements that require
  839  manufacturers of generic drugs prescribed to Medicaid recipients
  840  to provide rebates of at least 15.1 percent of the average
  841  manufacturer price for the manufacturer’s generic products.
  842  These arrangements shall require that if a generic-drug
  843  manufacturer pays federal rebates for Medicaid-reimbursed drugs
  844  at a level below 15.1 percent, the manufacturer must provide a
  845  supplemental rebate to the state in an amount necessary to
  846  achieve a 15.1-percent rebate level.
  847         7. The agency may establish a preferred drug list as
  848  described in this subsection, and, pursuant to the establishment
  849  of such preferred drug list, it is authorized to negotiate
  850  supplemental rebates from manufacturers that are in addition to
  851  those required by Title XIX of the Social Security Act and at no
  852  less than 14 percent of the average manufacturer price as
  853  defined in 42 U.S.C. s. 1936 on the last day of a quarter unless
  854  the federal or supplemental rebate, or both, equals or exceeds
  855  29 percent. There is no upper limit on the supplemental rebates
  856  the agency may negotiate. The agency may determine that specific
  857  products, brand-name or generic, are competitive at lower rebate
  858  percentages. Agreement to pay the minimum supplemental rebate
  859  percentage will guarantee a manufacturer that the Medicaid
  860  Pharmaceutical and Therapeutics Committee will consider a
  861  product for inclusion on the preferred drug list. However, a
  862  pharmaceutical manufacturer is not guaranteed placement on the
  863  preferred drug list by simply paying the minimum supplemental
  864  rebate. Agency decisions will be made on the clinical efficacy
  865  of a drug and recommendations of the Medicaid Pharmaceutical and
  866  Therapeutics Committee, as well as the price of competing
  867  products minus federal and state rebates. The agency may is
  868  authorized to contract with an outside agency or contractor to
  869  conduct negotiations for supplemental rebates. For the purposes
  870  of this section, the term “supplemental rebates” means cash
  871  rebates. Effective July 1, 2004, Value-added programs as a
  872  substitution for supplemental rebates are prohibited. The agency
  873  may is authorized to seek any federal waivers to implement this
  874  initiative.
  875         8. The agency for Health Care Administration shall expand
  876  home delivery of pharmacy products. To assist Medicaid
  877  recipients patients in securing their prescriptions and reduce
  878  program costs, the agency shall expand its current mail-order
  879  pharmacy diabetes-supply program to include all generic and
  880  brand-name drugs used by Medicaid recipients patients with
  881  diabetes. Medicaid recipients in the current program may obtain
  882  nondiabetes drugs on a voluntary basis. This initiative is
  883  limited to the geographic area covered by the current contract.
  884  The agency may seek and implement any federal waivers necessary
  885  to implement this subparagraph.
  886         9. The agency shall limit to one dose per month any drug
  887  prescribed to treat erectile dysfunction.
  888         10.a. The agency may implement a Medicaid behavioral drug
  889  management system. The agency may contract with a vendor that
  890  has experience in operating behavioral drug management systems
  891  to implement this program. The agency may is authorized to seek
  892  federal waivers to implement this program.
  893         b. The agency, in conjunction with the Department of
  894  Children and Family Services, may implement the Medicaid
  895  behavioral drug management system that is designed to improve
  896  the quality of care and behavioral health prescribing practices
  897  based on best practice guidelines, improve patient adherence to
  898  medication plans, reduce clinical risk, and lower prescribed
  899  drug costs and the rate of inappropriate spending on Medicaid
  900  behavioral drugs. The program may include the following
  901  elements:
  902         (I) Provide for the development and adoption of best
  903  practice guidelines for behavioral health-related drugs such as
  904  antipsychotics, antidepressants, and medications for treating
  905  bipolar disorders and other behavioral conditions; translate
  906  them into practice; review behavioral health prescribers and
  907  compare their prescribing patterns to a number of indicators
  908  that are based on national standards; and determine deviations
  909  from best practice guidelines.
  910         (II) Implement processes for providing feedback to and
  911  educating prescribers using best practice educational materials
  912  and peer-to-peer consultation.
  913         (III) Assess Medicaid beneficiaries who are outliers in
  914  their use of behavioral health drugs with regard to the numbers
  915  and types of drugs taken, drug dosages, combination drug
  916  therapies, and other indicators of improper use of behavioral
  917  health drugs.
  918         (IV) Alert prescribers to patients who fail to refill
  919  prescriptions in a timely fashion, are prescribed multiple same
  920  class behavioral health drugs, and may have other potential
  921  medication problems.
  922         (V) Track spending trends for behavioral health drugs and
  923  deviation from best practice guidelines.
  924         (VI) Use educational and technological approaches to
  925  promote best practices, educate consumers, and train prescribers
  926  in the use of practice guidelines.
  927         (VII) Disseminate electronic and published materials.
  928         (VIII) Hold statewide and regional conferences.
  929         (IX) Implement a disease management program with a model
  930  quality-based medication component for severely mentally ill
  931  individuals and emotionally disturbed children who are high
  932  users of care.
  933         11.a. The agency shall implement a Medicaid prescription
  934  drug management system.
  935         a. The agency may contract with a vendor that has
  936  experience in operating prescription drug management systems in
  937  order to implement this system. Any management system that is
  938  implemented in accordance with this subparagraph must rely on
  939  cooperation between physicians and pharmacists to determine
  940  appropriate practice patterns and clinical guidelines to improve
  941  the prescribing, dispensing, and use of drugs in the Medicaid
  942  program. The agency may seek federal waivers to implement this
  943  program.
  944         b. The drug management system must be designed to improve
  945  the quality of care and prescribing practices based on best
  946  practice guidelines, improve patient adherence to medication
  947  plans, reduce clinical risk, and lower prescribed drug costs and
  948  the rate of inappropriate spending on Medicaid prescription
  949  drugs. The program must:
  950         (I) Provide for the development and adoption of best
  951  practice guidelines for the prescribing and use of drugs in the
  952  Medicaid program, including translating best practice guidelines
  953  into practice; reviewing prescriber patterns and comparing them
  954  to indicators that are based on national standards and practice
  955  patterns of clinical peers in their community, statewide, and
  956  nationally; and determine deviations from best practice
  957  guidelines.
  958         (II) Implement processes for providing feedback to and
  959  educating prescribers using best practice educational materials
  960  and peer-to-peer consultation.
  961         (III) Assess Medicaid recipients who are outliers in their
  962  use of a single or multiple prescription drugs with regard to
  963  the numbers and types of drugs taken, drug dosages, combination
  964  drug therapies, and other indicators of improper use of
  965  prescription drugs.
  966         (IV) Alert prescribers to recipients patients who fail to
  967  refill prescriptions in a timely fashion, are prescribed
  968  multiple drugs that may be redundant or contraindicated, or may
  969  have other potential medication problems.
  970         (V) Track spending trends for prescription drugs and
  971  deviation from best practice guidelines.
  972         (VI) Use educational and technological approaches to
  973  promote best practices, educate consumers, and train prescribers
  974  in the use of practice guidelines.
  975         (VII) Disseminate electronic and published materials.
  976         (VIII) Hold statewide and regional conferences.
  977         (IX) Implement disease management programs in cooperation
  978  with physicians and pharmacists, along with a model quality
  979  based medication component for individuals having chronic
  980  medical conditions.
  981         12. The agency may is authorized to contract for drug
  982  rebate administration, including, but not limited to,
  983  calculating rebate amounts, invoicing manufacturers, negotiating
  984  disputes with manufacturers, and maintaining a database of
  985  rebate collections.
  986         13. The agency may specify the preferred daily dosing form
  987  or strength for the purpose of promoting best practices with
  988  regard to the prescribing of certain drugs as specified in the
  989  General Appropriations Act and ensuring cost-effective
  990  prescribing practices.
  991         14. The agency may require prior authorization for
  992  Medicaid-covered prescribed drugs. The agency may, but is not
  993  required to, prior-authorize the use of a product:
  994         a. For an indication not approved in labeling;
  995         b. To comply with certain clinical guidelines; or
  996         c. If the product has the potential for overuse, misuse, or
  997  abuse.
  998  
  999  The agency may require the prescribing professional to provide
 1000  information about the rationale and supporting medical evidence
 1001  for the use of a drug. The agency may post prior authorization
 1002  criteria and protocol and updates to the list of drugs that are
 1003  subject to prior authorization on an Internet website without
 1004  amending its rule or engaging in additional rulemaking.
 1005         15. The agency, in conjunction with the Pharmaceutical and
 1006  Therapeutics Committee, may require age-related prior
 1007  authorizations for certain prescribed drugs. The agency may
 1008  preauthorize the use of a drug for a recipient who may not meet
 1009  the age requirement or may exceed the length of therapy for use
 1010  of this product as recommended by the manufacturer and approved
 1011  by the Food and Drug Administration. Prior authorization may
 1012  require the prescribing professional to provide information
 1013  about the rationale and supporting medical evidence for the use
 1014  of a drug.
 1015         16. The agency shall implement a step-therapy prior
 1016  authorization approval process for medications excluded from the
 1017  preferred drug list. Medications listed on the preferred drug
 1018  list must be used within the previous 12 months before prior to
 1019  the alternative medications that are not listed. The step
 1020  therapy prior authorization may require the prescriber to use
 1021  the medications of a similar drug class or for a similar medical
 1022  indication unless contraindicated in the Food and Drug
 1023  Administration labeling. The trial period between the specified
 1024  steps may vary according to the medical indication. The step
 1025  therapy approval process shall be developed in accordance with
 1026  the committee as stated in s. 409.91195(7) and (8). A drug
 1027  product may be approved without meeting the step-therapy prior
 1028  authorization criteria if the prescribing physician provides the
 1029  agency with additional written medical or clinical documentation
 1030  that the product is medically necessary because:
 1031         a. There is not a drug on the preferred drug list to treat
 1032  the disease or medical condition which is an acceptable clinical
 1033  alternative;
 1034         b. The alternatives have been ineffective in the treatment
 1035  of the beneficiary’s disease; or
 1036         c. Based on historic evidence and known characteristics of
 1037  the patient and the drug, the drug is likely to be ineffective,
 1038  or the number of doses have been ineffective.
 1039  
 1040  The agency shall work with the physician to determine the best
 1041  alternative for the patient. The agency may adopt rules waiving
 1042  the requirements for written clinical documentation for specific
 1043  drugs in limited clinical situations.
 1044         17. The agency shall implement a return and reuse program
 1045  for drugs dispensed by pharmacies to institutional recipients,
 1046  which includes payment of a $5 restocking fee for the
 1047  implementation and operation of the program. The return and
 1048  reuse program shall be implemented electronically and in a
 1049  manner that promotes efficiency. The program must permit a
 1050  pharmacy to exclude drugs from the program if it is not
 1051  practical or cost-effective for the drug to be included and must
 1052  provide for the return to inventory of drugs that cannot be
 1053  credited or returned in a cost-effective manner. The agency
 1054  shall determine if the program has reduced the amount of
 1055  Medicaid prescription drugs which are destroyed on an annual
 1056  basis and if there are additional ways to ensure more
 1057  prescription drugs are not destroyed which could safely be
 1058  reused. The agency’s conclusion and recommendations shall be
 1059  reported to the Legislature by December 1, 2005.
 1060         Section 10. Paragraph (a) of subsection (2) of section
 1061  409.9122, Florida Statutes, is amended to read:
 1062         409.9122 Mandatory Medicaid managed care enrollment;
 1063  programs and procedures.—
 1064         (2)(a) The agency shall enroll all Medicaid recipients in a
 1065  managed care plan or MediPass all Medicaid recipients, except
 1066  those Medicaid recipients who are: in an institution, receiving
 1067  a Medicaid nonpoverty medical subsidy,; enrolled in the Medicaid
 1068  medically needy Program; or eligible for both Medicaid and
 1069  Medicare. Upon enrollment, recipients may individuals will be
 1070  able to change their managed care option during the 90-day opt
 1071  out period required by federal Medicaid regulations. The agency
 1072  may is authorized to seek the necessary Medicaid state plan
 1073  amendment to implement this policy. However, to the extent
 1074         1. If permitted by federal law, the agency may enroll in a
 1075  managed care plan or MediPass a Medicaid recipient who is exempt
 1076  from mandatory managed care enrollment in a managed care plan or
 1077  MediPass if, provided that:
 1078         a.1. The recipient’s decision to enroll in a managed care
 1079  plan or MediPass is voluntary;
 1080         b.2.If The recipient chooses to enroll in a managed care
 1081  plan, the agency has determined that the managed care plan
 1082  provides specific programs and services that which address the
 1083  special health needs of the recipient; and
 1084         c.3. The agency receives the any necessary waivers from the
 1085  federal Centers for Medicare and Medicaid Services.
 1086         2. The agency shall develop rules to establish policies by
 1087  which exceptions to the mandatory managed care enrollment
 1088  requirement may be made on a case-by-case basis. The rules must
 1089  shall include the specific criteria to be applied when
 1090  determining making a determination as to whether to exempt a
 1091  recipient from mandatory enrollment in a managed care plan or
 1092  MediPass.
 1093         3. School districts participating in the certified school
 1094  match program pursuant to ss. 409.908(21) and 1011.70 shall be
 1095  reimbursed by Medicaid, subject to the limitations of s.
 1096  1011.70(1), for a Medicaid-eligible child participating in the
 1097  services as authorized in s. 1011.70, as provided for in s.
 1098  409.9071, regardless of whether the child is enrolled in
 1099  MediPass or a managed care plan. Managed care plans must shall
 1100  make a good faith effort to execute agreements with school
 1101  districts regarding the coordinated provision of services
 1102  authorized under s. 1011.70.
 1103         4. County health departments delivering school-based
 1104  services pursuant to ss. 381.0056 and 381.0057 shall be
 1105  reimbursed by Medicaid for the federal share for a Medicaid
 1106  eligible child who receives Medicaid-covered services in a
 1107  school setting, regardless of whether the child is enrolled in
 1108  MediPass or a managed care plan. Managed care plans shall make a
 1109  good faith effort to execute agreements with county health
 1110  departments that coordinate the regarding the coordinated
 1111  provision of services to a Medicaid-eligible child. To ensure
 1112  continuity of care for Medicaid patients, the agency, the
 1113  Department of Health, and the Department of Education shall
 1114  develop procedures for ensuring that a student’s managed care
 1115  plan or MediPass provider receives information relating to
 1116  services provided in accordance with ss. 381.0056, 381.0057,
 1117  409.9071, and 1011.70.
 1118         Section 11. Paragraph (a) of subsection (1) of section
 1119  409.915, Florida Statutes, is amended to read:
 1120         409.915 County contributions to Medicaid.—Although the
 1121  state is responsible for the full portion of the state share of
 1122  the matching funds required for the Medicaid program, in order
 1123  to acquire a certain portion of these funds, the state shall
 1124  charge the counties for certain items of care and service as
 1125  provided in this section.
 1126         (1) Each county shall participate in the following items of
 1127  care and service:
 1128         (a) For both health maintenance members and fee-for-service
 1129  beneficiaries, payments for inpatient hospitalization in excess
 1130  of 10 days, but not in excess of 45 days, with the exception of
 1131  pregnant women and children whose income is greater than in
 1132  excess of the federal poverty level and who do not receive a
 1133  Medicaid nonpoverty medical subsidy under s. 409.904(2)
 1134  participate in the Medicaid medically needy Program, and for
 1135  adult lung transplant services.
 1136         Section 12. Subsections (1) and (2) of section 409.9301,
 1137  Florida Statutes, are amended to read:
 1138         409.9301 Pharmaceutical expense assistance.—
 1139         (1) PROGRAM ESTABLISHED.—A program is established in the
 1140  agency for Health Care Administration to provide pharmaceutical
 1141  expense assistance to individuals diagnosed with cancer or
 1142  individuals who have obtained received organ transplants who
 1143  received a Medicaid nonpoverty medical subsidy before were
 1144  medically needy recipients prior to January 1, 2006.
 1145         (2) ELIGIBILITY.—Eligibility for the program is limited to
 1146  an individual who:
 1147         (a) Is a resident of this state;
 1148         (b) Was a Medicaid recipient who received a Medicaid
 1149  nonpoverty medical subsidy before under the Florida Medicaid
 1150  medically needy program prior to January 1, 2006;
 1151         (c) Is eligible for Medicare;
 1152         (d) Is a cancer patient or an organ transplant recipient;
 1153  and
 1154         (e) Requests to be enrolled in the program.
 1155         Section 13. This act shall take effect June 30, 2011.