SB 2144                                         Second Engrossed
       
       
       
       
       
       
       
       
       20112144e2
       
    1                        A bill to be entitled                      
    2         An act relating to Medicaid; amending s. 400.23, F.S.;
    3         revising the minimum staffing requirements for nursing
    4         homes; amending s. 408.815, F.S.; requiring that the
    5         Agency for Health Care Administration deny an
    6         application for a license or license renewal of an
    7         applicant, a controlling interest of the applicant, or
    8         any entity in which a controlling interest of the
    9         applicant was an owner or officer during the
   10         occurrence of certain actions; authorizing the agency
   11         to consider certain mitigating circumstances;
   12         authorizing the agency to extend a license expiration
   13         date under certain circumstances; amending s. 409.904,
   14         F.S.; repealing the sunset of provisions authorizing
   15         the federal waiver for certain persons age 65 and
   16         older or who have a disability; repealing the sunset
   17         of provisions authorizing a specified medically needy
   18         program; eliminating the limit to services placed on
   19         the medically needy program for pregnant women and
   20         children younger than age 21; amending s. 409.905,
   21         F.S.; deleting provisions requiring that the agency
   22         implement hospitalist programs; amending s. 409.908,
   23         F.S.; revising the factors that are excluded from the
   24         direct care subcomponent of the long-term care
   25         reimbursement plan for nursing home care; revising the
   26         factors for calculating the maximum allowable fee for
   27         pharmaceutical ingredient costs; continuing the
   28         requirement that the Agency for Health Care
   29         Administration set certain institutional provider
   30         reimbursement rates in a manner that results in no
   31         automatic cost-based statewide expenditure increase;
   32         deleting an obsolete requirement to establish
   33         workgroups to evaluate alternate reimbursement and
   34         payment methods; eliminating the repeal date of the
   35         suspension of the use of cost data to set certain
   36         institutional provider reimbursement rates; amending
   37         s. 409.9082, F.S.; revising the aggregated amount of
   38         the quality assessment for nursing home facilities;
   39         exempting certain nursing home facilities from the
   40         quality assessment; amending s. 409.9083, F.S.;
   41         eliminating the repeal date of the quality assessment
   42         on privately operated intermediate care facilities for
   43         the developmentally disabled; amending s. 409.911,
   44         F.S.; updating references to data to be used for the
   45         disproportionate share program; providing that certain
   46         hospitals eligible for payments remain eligible for
   47         payments during the next fiscal year; amending s.
   48         409.9112, F.S.; extending the prohibition against
   49         distributing moneys under the regional perinatal
   50         intensive care centers disproportionate share program
   51         for another year; amending s. 409.9113, F.S.;
   52         extending the disproportionate share program for
   53         teaching hospitals for another year; amending s.
   54         409.9117, F.S.; extending the prohibition against
   55         distributing moneys under the primary care
   56         disproportionate share program for another year;
   57         amending s. 409.912, F.S.; providing for alternatives
   58         to the statewide inpatient psychiatric program;
   59         allowing the agency to continue to contract for
   60         electronic access to certain pharmacology drug
   61         information; eliminating the requirement to implement
   62         a wireless handheld clinical pharmacology drug
   63         information database for practitioners; revising the
   64         factors for calculating the maximum allowable fee for
   65         pharmaceutical ingredient costs; deleting obsolete
   66         provisions; authorizing the agency to seek federal
   67         approval and to issue a procurement in order to
   68         implement a home delivery of pharmacy products
   69         program; establishing the provisions for the
   70         procurement and the program; eliminating the
   71         requirement for the expansion of the mail-order
   72         pharmacy diabetes-supply program; eliminating certain
   73         provisions of the Medicaid prescription drug
   74         management program; amending s. 409.9122, F.S.;
   75         requiring the agency to assign Medicaid recipients
   76         with HIV/AIDS in certain counties to a certain type of
   77         managed care plan; requiring the agency to contract
   78         with a single provider service network to manage the
   79         MediPass program in certain counties; amending s.
   80         636.0145, F.S.; exempting certain entities providing
   81         services solely to Medicaid recipients under a
   82         Medicaid contract from being subject to the premium
   83         tax imposed on premiums, contributions, and
   84         assessments received by prepaid limited health service
   85         organizations; providing for prospective operation and
   86         specifying that the act does not provide a basis for
   87         relief from or assessment of taxes not paid, or for
   88         determining any denial of or right to a refund of
   89         taxes paid, before the effective date of the act;
   90         providing legislative intent with respect to the need
   91         to maintain revenues that support critical health
   92         programs; repealing s. 569.23(3)(f), F.S.; abrogating
   93         the repeal of provisions requiring that appellants of
   94         tobacco settlement agreement judgments provide
   95         specified security; authorizing the agency to contract
   96         with an organization to provide certain benefits under
   97         a federal program in Palm Beach County; providing an
   98         exemption from ch. 641, F.S., for the organization;
   99         authorizing, subject to appropriation, enrollment
  100         slots for the Program of All-inclusive Care for the
  101         Elderly in Palm Beach County; providing an effective
  102         date.
  103  
  104  Be It Enacted by the Legislature of the State of Florida:
  105  
  106         Section 1. Paragraph (a) of subsection (3) of section
  107  400.23, Florida Statutes, is amended to read:
  108         400.23 Rules; evaluation and deficiencies; licensure
  109  status.—
  110         (3)(a)1. The agency shall adopt rules providing minimum
  111  staffing requirements for nursing home facilities homes. These
  112  requirements must shall include, for each nursing home facility:
  113         a. A minimum weekly average of certified nursing assistant
  114  and licensed nursing staffing combined of 3.6 3.9 hours of
  115  direct care per resident per day. As used in this sub
  116  subparagraph, a week is defined as Sunday through Saturday.
  117         b. A minimum certified nursing assistant staffing of 2.5
  118  2.7 hours of direct care per resident per day. A facility may
  119  not staff below one certified nursing assistant per 20
  120  residents.
  121         c. A minimum licensed nursing staffing of 1.0 hour of
  122  direct care per resident per day. A facility may not staff below
  123  one licensed nurse per 40 residents.
  124         2. Nursing assistants employed under s. 400.211(2) may be
  125  included in computing the staffing ratio for certified nursing
  126  assistants only if their job responsibilities include only
  127  nursing-assistant-related duties.
  128         3. Each nursing home facility must document compliance with
  129  staffing standards as required under this paragraph and post
  130  daily the names of staff on duty for the benefit of facility
  131  residents and the public.
  132         4. The agency shall recognize the use of licensed nurses
  133  for compliance with minimum staffing requirements for certified
  134  nursing assistants if, provided that the nursing home facility
  135  otherwise meets the minimum staffing requirements for licensed
  136  nurses and that the licensed nurses are performing the duties of
  137  a certified nursing assistant. Unless otherwise approved by the
  138  agency, licensed nurses counted toward the minimum staffing
  139  requirements for certified nursing assistants must exclusively
  140  perform the duties of a certified nursing assistant for the
  141  entire shift and not also be counted toward the minimum staffing
  142  requirements for licensed nurses. If the agency approved a
  143  facility’s request to use a licensed nurse to perform both
  144  licensed nursing and certified nursing assistant duties, the
  145  facility must allocate the amount of staff time specifically
  146  spent on certified nursing assistant duties for the purpose of
  147  documenting compliance with minimum staffing requirements for
  148  certified and licensed nursing staff. In no event may The hours
  149  of a licensed nurse with dual job responsibilities may not be
  150  counted twice.
  151         Section 2. Section 408.815, Florida Statutes, is amended to
  152  read:
  153         408.815 License or application denial; revocation.—
  154         (1) In addition to the grounds provided in authorizing
  155  statutes, grounds that may be used by the agency for denying and
  156  revoking a license or change of ownership application include
  157  any of the following actions by a controlling interest:
  158         (a) False representation of a material fact in the license
  159  application or omission of any material fact from the
  160  application.
  161         (b) An intentional or negligent act materially affecting
  162  the health or safety of a client of the provider.
  163         (c) A violation of this part, authorizing statutes, or
  164  applicable rules.
  165         (d) A demonstrated pattern of deficient performance.
  166         (e) The applicant, licensee, or controlling interest has
  167  been or is currently excluded, suspended, or terminated from
  168  participation in the state Medicaid program, the Medicaid
  169  program of any other state, or the Medicare program.
  170         (2) If a licensee lawfully continues to operate while a
  171  denial or revocation is pending in litigation, the licensee must
  172  continue to meet all other requirements of this part,
  173  authorizing statutes, and applicable rules and must file
  174  subsequent renewal applications for licensure and pay all
  175  licensure fees. The provisions of ss. 120.60(1) and
  176  408.806(3)(c) do shall not apply to renewal applications filed
  177  during the time period in which the litigation of the denial or
  178  revocation is pending until that litigation is final.
  179         (3) An action under s. 408.814 or denial of the license of
  180  the transferor may be grounds for denial of a change of
  181  ownership application of the transferee.
  182         (4) Unless an applicant is determined by the agency to
  183  satisfy the provisions of subsection (5) for the action in
  184  question, the agency shall deny an application for a license or
  185  license renewal based upon any of the following actions of an
  186  applicant, a controlling interest of the applicant, or any
  187  entity in which a controlling interest of the applicant was an
  188  owner or officer when the following actions occurred In addition
  189  to the grounds provided in authorizing statutes, the agency
  190  shall deny an application for a license or license renewal if
  191  the applicant or a person having a controlling interest in an
  192  applicant has been:
  193         (a) A conviction or Convicted of, or enters a plea of
  194  guilty or nolo contendere to, regardless of adjudication, a
  195  felony under chapter 409, chapter 817, chapter 893, 21 U.S.C.
  196  ss. 801-970, or 42 U.S.C. ss. 1395-1396, Medicaid fraud,
  197  Medicare fraud, or insurance fraud, unless the sentence and any
  198  subsequent period of probation for such convictions or plea
  199  ended more than 15 years before prior to the date of the
  200  application; or
  201         (b) Termination Terminated for cause from the Medicare
  202  Florida Medicaid program or a state Medicaid program pursuant to
  203  s. 409.913, unless the applicant has been in good standing with
  204  the Medicare program or a state the Florida Medicaid program for
  205  the most recent 5 years and the termination occurred at least 20
  206  years before the date of the application.; or
  207         (c) Terminated for cause, pursuant to the appeals
  208  procedures established by the state or Federal Government, from
  209  the federal Medicare program or from any other state Medicaid
  210  program, unless the applicant has been in good standing with a
  211  state Medicaid program or the federal Medicare program for the
  212  most recent 5 years and the termination occurred at least 20
  213  years prior to the date of the application.
  214         (5) For any application subject to denial under subsection
  215  (4), the agency may consider mitigating circumstances as
  216  applicable, including, but not limited to:
  217         (a) Completion or lawful release from confinement,
  218  supervision, or sanction, including the terms of probation, and
  219  full restitution;
  220         (b) Execution of a compliance plan with the agency;
  221         (c) Compliance with an integrity agreement or compliance
  222  plan with another government agency;
  223         (d) Determination by any state Medicaid program or the
  224  Medicare program that the controlling interest or entity in
  225  which the controlling interest was an owner or officer is
  226  currently allowed to participate in the state Medicaid program
  227  or the Medicare program, directly as a provider or indirectly as
  228  an owner or officer of a provider entity;
  229         (e) Continuation of licensure by the controlling interest
  230  or entity in which the controlling interest was an owner or
  231  officer, directly as a licensee or indirectly as an owner or
  232  officer of a licensed entity in the state where the action
  233  occurred;
  234         (f) Overall impact upon the public health, safety, or
  235  welfare; or
  236         (g) Determination that a license denial is not commensurate
  237  with the prior action taken by the Medicare or state Medicaid
  238  program.
  239  
  240  After considering the circumstances set forth in this
  241  subsection, the agency shall grant the license, with or without
  242  conditions, grant a provisional license for a period of no more
  243  than the licensure cycle, with or without conditions, or deny
  244  the license.
  245         (6) In order to ensure the health, safety, and welfare of
  246  clients when a license has been denied, revoked, or is set to
  247  terminate, the agency may extend the license expiration date for
  248  up to 30 days for the sole purpose of allowing the safe and
  249  orderly discharge of clients. The agency may impose conditions
  250  on the extension, including, but not limited to, prohibiting or
  251  limiting admissions, expedited discharge planning, required
  252  status reports, and mandatory monitoring by the agency or third
  253  parties. When imposing these conditions, the agency shall
  254  consider the nature and number of clients, the availability and
  255  location of acceptable alternative placements, and the ability
  256  of the licensee to continue providing care to the clients. The
  257  agency may terminate the extension or modify the conditions at
  258  any time. This authority is in addition to any other authority
  259  granted to the agency under chapter 120, this part, and
  260  authorizing statutes but creates no right or entitlement to an
  261  extension of a license expiration date.
  262         Section 3. Subsections (1) and (2) of section 409.904,
  263  Florida Statutes, are amended to read:
  264         409.904 Optional payments for eligible persons.—The agency
  265  may make payments for medical assistance and related services on
  266  behalf of the following persons who are determined to be
  267  eligible subject to the income, assets, and categorical
  268  eligibility tests set forth in federal and state law. Payment on
  269  behalf of these Medicaid eligible persons is subject to the
  270  availability of moneys and any limitations established by the
  271  General Appropriations Act or chapter 216.
  272         (1) Effective January 1, 2006, and Subject to federal
  273  waiver approval, a person who is age 65 or older or is
  274  determined to be disabled, whose income is at or below 88
  275  percent of the federal poverty level, whose assets do not exceed
  276  established limitations, and who is not eligible for Medicare
  277  or, if eligible for Medicare, is also eligible for and receiving
  278  Medicaid-covered institutional care services, hospice services,
  279  or home and community-based services. The agency shall seek
  280  federal authorization through a waiver to provide this coverage.
  281  This subsection expires June 30, 2011.
  282         (2)(a) A family, a pregnant woman, a child under age 21, a
  283  person age 65 or over, or a blind or disabled person, who would
  284  be eligible under any group listed in s. 409.903(1), (2), or
  285  (3), except that the income or assets of such family or person
  286  exceed established limitations. For a family or person in one of
  287  these coverage groups, medical expenses are deductible from
  288  income in accordance with federal requirements in order to make
  289  a determination of eligibility. A family or person eligible
  290  under the coverage known as the “medically needy,” is eligible
  291  to receive the same services as other Medicaid recipients, with
  292  the exception of services in skilled nursing facilities and
  293  intermediate care facilities for the developmentally disabled.
  294  This paragraph expires June 30, 2011.
  295         (b) Effective July 1, 2011, a pregnant woman or a child
  296  younger than 21 years of age who would be eligible under any
  297  group listed in s. 409.903, except that the income or assets of
  298  such group exceed established limitations. For a person in one
  299  of these coverage groups, medical expenses are deductible from
  300  income in accordance with federal requirements in order to make
  301  a determination of eligibility. A person eligible under the
  302  coverage known as the “medically needy” is eligible to receive
  303  the same services as other Medicaid recipients, with the
  304  exception of services in skilled nursing facilities and
  305  intermediate care facilities for the developmentally disabled.
  306         Section 4. Paragraphs (d), (e), and (f) of subsection (5)
  307  of section 409.905, Florida Statutes, are amended to read:
  308         409.905 Mandatory Medicaid services.—The agency may make
  309  payments for the following services, which are required of the
  310  state by Title XIX of the Social Security Act, furnished by
  311  Medicaid providers to recipients who are determined to be
  312  eligible on the dates on which the services were provided. Any
  313  service under this section shall be provided only when medically
  314  necessary and in accordance with state and federal law.
  315  Mandatory services rendered by providers in mobile units to
  316  Medicaid recipients may be restricted by the agency. Nothing in
  317  this section shall be construed to prevent or limit the agency
  318  from adjusting fees, reimbursement rates, lengths of stay,
  319  number of visits, number of services, or any other adjustments
  320  necessary to comply with the availability of moneys and any
  321  limitations or directions provided for in the General
  322  Appropriations Act or chapter 216.
  323         (5) HOSPITAL INPATIENT SERVICES.—The agency shall pay for
  324  all covered services provided for the medical care and treatment
  325  of a recipient who is admitted as an inpatient by a licensed
  326  physician or dentist to a hospital licensed under part I of
  327  chapter 395. However, the agency shall limit the payment for
  328  inpatient hospital services for a Medicaid recipient 21 years of
  329  age or older to 45 days or the number of days necessary to
  330  comply with the General Appropriations Act.
  331         (d) The agency shall implement a hospitalist program in
  332  nonteaching hospitals, select counties, or statewide. The
  333  program shall require hospitalists to manage Medicaid
  334  recipients’ hospital admissions and lengths of stay. Individuals
  335  who are dually eligible for Medicare and Medicaid are exempted
  336  from this requirement. Medicaid participating physicians and
  337  other practitioners with hospital admitting privileges shall
  338  coordinate and review admissions of Medicaid recipients with the
  339  hospitalist. The agency may competitively bid a contract for
  340  selection of a single qualified organization to provide
  341  hospitalist services. The agency may procure hospitalist
  342  services by individual county or may combine counties in a
  343  single procurement. The qualified organization shall contract
  344  with or employ board-eligible physicians in Miami-Dade, Palm
  345  Beach, Hillsborough, Pasco, and Pinellas Counties. The agency is
  346  authorized to seek federal waivers to implement this program.
  347         (d)(e) The agency shall implement a comprehensive
  348  utilization management program for hospital neonatal intensive
  349  care stays in certain high-volume participating hospitals,
  350  select counties, or statewide, and shall replace existing
  351  hospital inpatient utilization management programs for neonatal
  352  intensive care admissions. The program shall be designed to
  353  manage the lengths of stay for children being treated in
  354  neonatal intensive care units and must seek the earliest
  355  medically appropriate discharge to the child’s home or other
  356  less costly treatment setting. The agency may competitively bid
  357  a contract for the selection of a qualified organization to
  358  provide neonatal intensive care utilization management services.
  359  The agency may is authorized to seek any federal waivers to
  360  implement this initiative.
  361         (e)(f) The agency may develop and implement a program to
  362  reduce the number of hospital readmissions among the non
  363  Medicare population eligible in areas 9, 10, and 11.
  364         Section 5. Paragraph (b) of subsection (2) and subsections
  365  (14) and (23) of section 409.908, Florida Statutes, are amended
  366  to read:
  367         409.908 Reimbursement of Medicaid providers.—Subject to
  368  specific appropriations, the agency shall reimburse Medicaid
  369  providers, in accordance with state and federal law, according
  370  to methodologies set forth in the rules of the agency and in
  371  policy manuals and handbooks incorporated by reference therein.
  372  These methodologies may include fee schedules, reimbursement
  373  methods based on cost reporting, negotiated fees, competitive
  374  bidding pursuant to s. 287.057, and other mechanisms the agency
  375  considers efficient and effective for purchasing services or
  376  goods on behalf of recipients. If a provider is reimbursed based
  377  on cost reporting and submits a cost report late and that cost
  378  report would have been used to set a lower reimbursement rate
  379  for a rate semester, then the provider’s rate for that semester
  380  shall be retroactively calculated using the new cost report, and
  381  full payment at the recalculated rate shall be effected
  382  retroactively. Medicare-granted extensions for filing cost
  383  reports, if applicable, shall also apply to Medicaid cost
  384  reports. Payment for Medicaid compensable services made on
  385  behalf of Medicaid eligible persons is subject to the
  386  availability of moneys and any limitations or directions
  387  provided for in the General Appropriations Act or chapter 216.
  388  Further, nothing in this section shall be construed to prevent
  389  or limit the agency from adjusting fees, reimbursement rates,
  390  lengths of stay, number of visits, or number of services, or
  391  making any other adjustments necessary to comply with the
  392  availability of moneys and any limitations or directions
  393  provided for in the General Appropriations Act, provided the
  394  adjustment is consistent with legislative intent.
  395         (2)
  396         (b) Subject to any limitations or directions provided for
  397  in the General Appropriations Act, the agency shall establish
  398  and implement a state Florida Title XIX Long-Term Care
  399  Reimbursement Plan (Medicaid) for nursing home care in order to
  400  provide care and services in conformance with the applicable
  401  state and federal laws, rules, regulations, and quality and
  402  safety standards and to ensure that individuals eligible for
  403  medical assistance have reasonable geographic access to such
  404  care.
  405         1. The agency shall amend the long-term care reimbursement
  406  plan and cost reporting system to create direct care and
  407  indirect care subcomponents of the patient care component of the
  408  per diem rate. These two subcomponents together shall equal the
  409  patient care component of the per diem rate. Separate cost-based
  410  ceilings shall be calculated for each patient care subcomponent.
  411  The direct care subcomponent of the per diem rate shall be
  412  limited by the cost-based class ceiling, and the indirect care
  413  subcomponent may be limited by the lower of the cost-based class
  414  ceiling, the target rate class ceiling, or the individual
  415  provider target.
  416         2. The direct care subcomponent shall include salaries and
  417  benefits of direct care staff providing nursing services
  418  including registered nurses, licensed practical nurses, and
  419  certified nursing assistants who deliver care directly to
  420  residents in the nursing home facility. This excludes nursing
  421  administration, minimum data set, and care plan coordinators,
  422  staff development, and staffing coordinator, and the
  423  administrative portion of the minimum data set and care plan
  424  coordinators.
  425         3. All other patient care costs shall be included in the
  426  indirect care cost subcomponent of the patient care per diem
  427  rate. There shall be no Costs may not be allocated directly or
  428  indirectly allocated to the direct care subcomponent from a home
  429  office or management company.
  430         4. On July 1 of each year, the agency shall report to the
  431  Legislature direct and indirect care costs, including average
  432  direct and indirect care costs per resident per facility and
  433  direct care and indirect care salaries and benefits per category
  434  of staff member per facility.
  435         5. In order to offset the cost of general and professional
  436  liability insurance, the agency shall amend the plan to allow
  437  for interim rate adjustments to reflect increases in the cost of
  438  general or professional liability insurance for nursing homes.
  439  This provision shall be implemented to the extent existing
  440  appropriations are available.
  441  
  442  It is the intent of the Legislature that the reimbursement plan
  443  achieve the goal of providing access to health care for nursing
  444  home residents who require large amounts of care while
  445  encouraging diversion services as an alternative to nursing home
  446  care for residents who can be served within the community. The
  447  agency shall base the establishment of any maximum rate of
  448  payment, whether overall or component, on the available moneys
  449  as provided for in the General Appropriations Act. The agency
  450  may base the maximum rate of payment on the results of
  451  scientifically valid analysis and conclusions derived from
  452  objective statistical data pertinent to the particular maximum
  453  rate of payment.
  454         (14) A provider of prescribed drugs shall be reimbursed the
  455  least of the amount billed by the provider, the provider’s usual
  456  and customary charge, or the Medicaid maximum allowable fee
  457  established by the agency, plus a dispensing fee. The Medicaid
  458  maximum allowable fee for ingredient cost must will be based on
  459  the lowest lower of: the average wholesale price (AWP) minus
  460  16.4 percent, the wholesaler acquisition cost (WAC) plus 1.5
  461  4.75 percent, the federal upper limit (FUL), the state maximum
  462  allowable cost (SMAC), or the usual and customary (UAC) charge
  463  billed by the provider.
  464         (a) Medicaid providers must are required to dispense
  465  generic drugs if available at lower cost and the agency has not
  466  determined that the branded product is more cost-effective,
  467  unless the prescriber has requested and received approval to
  468  require the branded product.
  469         (b) The agency shall is directed to implement a variable
  470  dispensing fee for payments for prescribed medicines while
  471  ensuring continued access for Medicaid recipients. The variable
  472  dispensing fee may be based upon, but not limited to, either or
  473  both the volume of prescriptions dispensed by a specific
  474  pharmacy provider, the volume of prescriptions dispensed to an
  475  individual recipient, and dispensing of preferred-drug-list
  476  products.
  477         (c) The agency may increase the pharmacy dispensing fee
  478  authorized by statute and in the annual General Appropriations
  479  Act by $0.50 for the dispensing of a Medicaid preferred-drug
  480  list product and reduce the pharmacy dispensing fee by $0.50 for
  481  the dispensing of a Medicaid product that is not included on the
  482  preferred drug list.
  483         (d) The agency may establish a supplemental pharmaceutical
  484  dispensing fee to be paid to providers returning unused unit
  485  dose packaged medications to stock and crediting the Medicaid
  486  program for the ingredient cost of those medications if the
  487  ingredient costs to be credited exceed the value of the
  488  supplemental dispensing fee.
  489         (e) The agency may is authorized to limit reimbursement for
  490  prescribed medicine in order to comply with any limitations or
  491  directions provided for in the General Appropriations Act, which
  492  may include implementing a prospective or concurrent utilization
  493  review program.
  494         (23)(a) The agency shall establish rates at a level that
  495  ensures no increase in statewide expenditures resulting from a
  496  change in unit costs for 2 fiscal years effective July 1, 2011
  497  2009. Reimbursement rates for the 2 fiscal years shall be as
  498  provided in the General Appropriations Act.
  499         (b) This subsection applies to the following provider
  500  types:
  501         1. Inpatient hospitals.
  502         2. Outpatient hospitals.
  503         3. Nursing homes.
  504         4. County health departments.
  505         5. Community intermediate care facilities for the
  506  developmentally disabled.
  507         6. Prepaid health plans.
  508         (c) The agency shall apply the effect of this subsection to
  509  the reimbursement rates for nursing home diversion programs.
  510         (c) The agency shall create a workgroup on hospital
  511  reimbursement, a workgroup on nursing facility reimbursement,
  512  and a workgroup on managed care plan payment. The workgroups
  513  shall evaluate alternative reimbursement and payment
  514  methodologies for hospitals, nursing facilities, and managed
  515  care plans, including prospective payment methodologies for
  516  hospitals and nursing facilities. The nursing facility workgroup
  517  shall also consider price-based methodologies for indirect care
  518  and acuity adjustments for direct care. The agency shall submit
  519  a report on the evaluated alternative reimbursement
  520  methodologies to the relevant committees of the Senate and the
  521  House of Representatives by November 1, 2009.
  522         (d) This subsection expires June 30, 2011.
  523         Section 6. Subsection (2) and paragraph (d) of subsection
  524  (3) of section 409.9082, Florida Statutes, are amended to read:
  525         409.9082 Quality assessment on nursing home facility
  526  providers; exemptions; purpose; federal approval required;
  527  remedies.—
  528         (2) Effective April 1, 2009, a quality assessment there is
  529  imposed upon each nursing home facility a quality assessment.
  530  The aggregated amount of assessments for all nursing home
  531  facilities in a given year shall be an amount not exceeding the
  532  maximum percentage allowed under federal law 5.5 percent of the
  533  total aggregate net patient service revenue of assessed
  534  facilities. The agency shall calculate the quality assessment
  535  rate annually on a per-resident-day basis, exclusive of those
  536  resident days funded by the Medicare program, as reported by the
  537  facilities. The per-resident-day assessment rate must shall be
  538  uniform except as prescribed in subsection (3). Each facility
  539  shall report monthly to the agency its total number of resident
  540  days, exclusive of Medicare Part A resident days, and shall
  541  remit an amount equal to the assessment rate times the reported
  542  number of days. The agency shall collect, and each facility
  543  shall pay, the quality assessment each month. The agency shall
  544  collect the assessment from nursing home facility providers by
  545  no later than the 15th day of the next succeeding calendar
  546  month. The agency shall notify providers of the quality
  547  assessment and provide a standardized form to complete and
  548  submit with payments. The collection of the nursing home
  549  facility quality assessment shall commence no sooner than 5 days
  550  after the agency’s initial payment of the Medicaid rates
  551  containing the elements prescribed in subsection (4). Nursing
  552  home facilities may not create a separate line-item charge for
  553  the purpose of passing through the assessment through to
  554  residents.
  555         (3)
  556         (d) Effective July 1, 2011 2009, the agency may exempt from
  557  the quality assessment or apply a lower quality assessment rate
  558  to a qualified public, nonstate-owned or operated nursing home
  559  facility whose total annual indigent census days are greater
  560  than 20 25 percent of the facility’s total annual census days.
  561         Section 7. Subsection (8) of section 409.9083, Florida
  562  Statutes, is amended to read:
  563         409.9083 Quality assessment on privately operated
  564  intermediate care facilities for the developmentally disabled;
  565  exemptions; purpose; federal approval required; remedies.—
  566         (8) This section is repealed October 1, 2011.
  567         Section 8. Paragraph (a) of subsection (2) of section
  568  409.911, Florida Statutes, is amended, and paragraph (d) is
  569  added to subsection (4) of that section, to read:
  570         409.911 Disproportionate share program.—Subject to specific
  571  allocations established within the General Appropriations Act
  572  and any limitations established pursuant to chapter 216, the
  573  agency shall distribute, pursuant to this section, moneys to
  574  hospitals providing a disproportionate share of Medicaid or
  575  charity care services by making quarterly Medicaid payments as
  576  required. Notwithstanding the provisions of s. 409.915, counties
  577  are exempt from contributing toward the cost of this special
  578  reimbursement for hospitals serving a disproportionate share of
  579  low-income patients.
  580         (2) The Agency for Health Care Administration shall use the
  581  following actual audited data to determine the Medicaid days and
  582  charity care to be used in calculating the disproportionate
  583  share payment:
  584         (a) The average of the 2004, 2005, and 2006 2003, 2004, and
  585  2005 audited disproportionate share data to determine each
  586  hospital’s Medicaid days and charity care for the 2011-2012
  587  2010-2011 state fiscal year.
  588         (4) The following formulas shall be used to pay
  589  disproportionate share dollars to public hospitals:
  590         (d) Any nonstate government owned or operated hospital
  591  eligible for payments under this section on July 1, 2011,
  592  remains eligible for payments during the 2011-2012 state fiscal
  593  year.
  594         Section 9. Section 409.9112, Florida Statutes, is amended
  595  to read:
  596         409.9112 Disproportionate share program for regional
  597  perinatal intensive care centers.—In addition to the payments
  598  made under s. 409.911, the agency shall design and implement a
  599  system for making disproportionate share payments to those
  600  hospitals that participate in the regional perinatal intensive
  601  care center program established pursuant to chapter 383. The
  602  system of payments must conform to federal requirements and
  603  distribute funds in each fiscal year for which an appropriation
  604  is made by making quarterly Medicaid payments. Notwithstanding
  605  s. 409.915, counties are exempt from contributing toward the
  606  cost of this special reimbursement for hospitals serving a
  607  disproportionate share of low-income patients. For the 2011-2012
  608  2010-2011 state fiscal year, the agency may not distribute
  609  moneys under the regional perinatal intensive care centers
  610  disproportionate share program.
  611         (1) The following formula shall be used by the agency to
  612  calculate the total amount earned for hospitals that participate
  613  in the regional perinatal intensive care center program:
  614  
  615                          TAE = HDSP/THDSP                         
  616  
  617         Where:
  618         TAE = total amount earned by a regional perinatal intensive
  619  care center.
  620         HDSP = the prior state fiscal year regional perinatal
  621  intensive care center disproportionate share payment to the
  622  individual hospital.
  623         THDSP = the prior state fiscal year total regional
  624  perinatal intensive care center disproportionate share payments
  625  to all hospitals.
  626  
  627         (2) The total additional payment for hospitals that
  628  participate in the regional perinatal intensive care center
  629  program shall be calculated by the agency as follows:
  630  
  631                           TAP = TAE x TA                          
  632  
  633         Where:
  634         TAP = total additional payment for a regional perinatal
  635  intensive care center.
  636         TAE = total amount earned by a regional perinatal intensive
  637  care center.
  638         TA = total appropriation for the regional perinatal
  639  intensive care center disproportionate share program.
  640  
  641         (3) In order to receive payments under this section, a
  642  hospital must be participating in the regional perinatal
  643  intensive care center program pursuant to chapter 383 and must
  644  meet the following additional requirements:
  645         (a) Agree to conform to all departmental and agency
  646  requirements to ensure high quality in the provision of
  647  services, including criteria adopted by departmental and agency
  648  rule concerning staffing ratios, medical records, standards of
  649  care, equipment, space, and such other standards and criteria as
  650  the department and agency deem appropriate as specified by rule.
  651         (b) Agree to provide information to the Department of
  652  Health and the agency, in a form and manner to be prescribed by
  653  rule of the department and agency, concerning the care provided
  654  to all patients in neonatal intensive care centers and high-risk
  655  maternity care.
  656         (c) Agree to accept all patients for neonatal intensive
  657  care and high-risk maternity care, regardless of ability to pay,
  658  on a functional space-available basis.
  659         (d) Agree to develop arrangements with other maternity and
  660  neonatal care providers in the hospital’s region for the
  661  appropriate receipt and transfer of patients in need of
  662  specialized maternity and neonatal intensive care services.
  663         (e) Agree to establish and provide a developmental
  664  evaluation and services program for certain high-risk neonates,
  665  as prescribed and defined by rule of the department.
  666         (f) Agree to sponsor a program of continuing education in
  667  perinatal care for health care professionals within the region
  668  of the hospital, as specified by rule.
  669         (g) Agree to provide backup and referral services to the
  670  county health departments and other low-income perinatal
  671  providers within the hospital’s region, including the
  672  development of written agreements between these organizations
  673  and the hospital.
  674         (h) Agree to arrange for transportation for high-risk
  675  obstetrical patients and neonates in need of transfer from the
  676  community to the hospital or from the hospital to another more
  677  appropriate facility.
  678         (4) Hospitals that which fail to comply with any of the
  679  conditions in subsection (3) or the applicable rules of the
  680  Department of Health and the agency may not receive any payments
  681  under this section until full compliance is achieved. A hospital
  682  that which is not in compliance in two or more consecutive
  683  quarters may not receive its share of the funds. Any forfeited
  684  funds shall be distributed by the remaining participating
  685  regional perinatal intensive care center program hospitals.
  686         Section 10. Section 409.9113, Florida Statutes, is amended
  687  to read:
  688         409.9113 Disproportionate share program for teaching
  689  hospitals.—In addition to the payments made under ss. 409.911
  690  and 409.9112, the agency shall make disproportionate share
  691  payments to statutorily defined teaching hospitals, as defined
  692  in s. 408.07, for their increased costs associated with medical
  693  education programs and for tertiary health care services
  694  provided to the indigent. This system of payments must conform
  695  to federal requirements and distribute funds in each fiscal year
  696  for which an appropriation is made by making quarterly Medicaid
  697  payments. Notwithstanding s. 409.915, counties are exempt from
  698  contributing toward the cost of this special reimbursement for
  699  hospitals serving a disproportionate share of low-income
  700  patients. For the 2011-2012 2010-2011 state fiscal year, the
  701  agency shall distribute the moneys provided in the General
  702  Appropriations Act to statutorily defined teaching hospitals and
  703  family practice teaching hospitals, as defined in s. 395.805,
  704  pursuant to this section under the teaching hospital
  705  disproportionate share program. The funds provided for
  706  statutorily defined teaching hospitals shall be distributed in
  707  the same proportion as the state fiscal year 2003-2004 teaching
  708  hospital disproportionate share funds were distributed or as
  709  otherwise provided in the General Appropriations Act. The funds
  710  provided for family practice teaching hospitals shall be
  711  distributed equally among family practice teaching hospitals.
  712         (1) On or before September 15 of each year, the agency
  713  shall calculate an allocation fraction to be used for
  714  distributing funds to state statutory teaching hospitals.
  715  Subsequent to the end of each quarter of the state fiscal year,
  716  the agency shall distribute to each statutory teaching hospital,
  717  as defined in s. 408.07, an amount determined by multiplying
  718  one-fourth of the funds appropriated for this purpose by the
  719  Legislature times such hospital’s allocation fraction. The
  720  allocation fraction for each such hospital shall be determined
  721  by the sum of the following three primary factors, divided by
  722  three:
  723         (a) The number of nationally accredited graduate medical
  724  education programs offered by the hospital, including programs
  725  accredited by the Accreditation Council for Graduate Medical
  726  Education and the combined Internal Medicine and Pediatrics
  727  programs acceptable to both the American Board of Internal
  728  Medicine and the American Board of Pediatrics at the beginning
  729  of the state fiscal year preceding the date on which the
  730  allocation fraction is calculated. The numerical value of this
  731  factor is the fraction that the hospital represents of the total
  732  number of programs, where the total is computed for all state
  733  statutory teaching hospitals.
  734         (b) The number of full-time equivalent trainees in the
  735  hospital, which comprises two components:
  736         1. The number of trainees enrolled in nationally accredited
  737  graduate medical education programs, as defined in paragraph
  738  (a). Full-time equivalents are computed using the fraction of
  739  the year during which each trainee is primarily assigned to the
  740  given institution, over the state fiscal year preceding the date
  741  on which the allocation fraction is calculated. The numerical
  742  value of this factor is the fraction that the hospital
  743  represents of the total number of full-time equivalent trainees
  744  enrolled in accredited graduate programs, where the total is
  745  computed for all state statutory teaching hospitals.
  746         2. The number of medical students enrolled in accredited
  747  colleges of medicine and engaged in clinical activities,
  748  including required clinical clerkships and clinical electives.
  749  Full-time equivalents are computed using the fraction of the
  750  year during which each trainee is primarily assigned to the
  751  given institution, over the course of the state fiscal year
  752  preceding the date on which the allocation fraction is
  753  calculated. The numerical value of this factor is the fraction
  754  that the given hospital represents of the total number of full
  755  time equivalent students enrolled in accredited colleges of
  756  medicine, where the total is computed for all state statutory
  757  teaching hospitals.
  758  
  759  The primary factor for full-time equivalent trainees is computed
  760  as the sum of these two components, divided by two.
  761         (c) A service index that comprises three components:
  762         1. The Agency for Health Care Administration Service Index,
  763  computed by applying the standard Service Inventory Scores
  764  established by the agency to services offered by the given
  765  hospital, as reported on Worksheet A-2 for the last fiscal year
  766  reported to the agency before the date on which the allocation
  767  fraction is calculated. The numerical value of this factor is
  768  the fraction that the given hospital represents of the total
  769  Agency for Health Care Administration Service index values,
  770  where the total is computed for all state statutory teaching
  771  hospitals.
  772         2. A volume-weighted service index, computed by applying
  773  the standard Service Inventory Scores established by the agency
  774  for Health Care Administration to the volume of each service,
  775  expressed in terms of the standard units of measure reported on
  776  Worksheet A-2 for the last fiscal year reported to the agency
  777  before the date on which the allocation factor is calculated.
  778  The numerical value of this factor is the fraction that the
  779  given hospital represents of the total volume-weighted service
  780  index values, where the total is computed for all state
  781  statutory teaching hospitals.
  782         3. Total Medicaid payments to each hospital for direct
  783  inpatient and outpatient services during the fiscal year
  784  preceding the date on which the allocation factor is calculated.
  785  This includes payments made to each hospital for such services
  786  by Medicaid prepaid health plans, whether the plan was
  787  administered by the hospital or not. The numerical value of this
  788  factor is the fraction that each hospital represents of the
  789  total of such Medicaid payments, where the total is computed for
  790  all state statutory teaching hospitals.
  791  
  792  The primary factor for the service index is computed as the sum
  793  of these three components, divided by three.
  794         (2) By October 1 of each year, the agency shall use the
  795  following formula to calculate the maximum additional
  796  disproportionate share payment for statutory statutorily defined
  797  teaching hospitals:
  798  
  799                           TAP = THAF x A                          
  800  
  801         Where:
  802         TAP = total additional payment.
  803         THAF = teaching hospital allocation factor.
  804         A = amount appropriated for a teaching hospital
  805  disproportionate share program.
  806         Section 11. Section 409.9117, Florida Statutes, is amended
  807  to read:
  808         409.9117 Primary care disproportionate share program.—For
  809  the 2011-2012 2010-2011 state fiscal year, the agency shall not
  810  distribute moneys under the primary care disproportionate share
  811  program.
  812         (1) If federal funds are available for disproportionate
  813  share programs in addition to those otherwise provided by law,
  814  there shall be created a primary care disproportionate share
  815  program shall be established.
  816         (2) The following formula shall be used by the agency to
  817  calculate the total amount earned for hospitals that participate
  818  in the primary care disproportionate share program:
  819  
  820                          TAE = HDSP/THDSP                         
  821  
  822         Where:
  823         TAE = total amount earned by a hospital participating in
  824  the primary care disproportionate share program.
  825         HDSP = the prior state fiscal year primary care
  826  disproportionate share payment to the individual hospital.
  827         THDSP = the prior state fiscal year total primary care
  828  disproportionate share payments to all hospitals.
  829  
  830         (3) The total additional payment for hospitals that
  831  participate in the primary care disproportionate share program
  832  shall be calculated by the agency as follows:
  833  
  834                           TAP = TAE x TA                          
  835  
  836         Where:
  837         TAP = total additional payment for a primary care hospital.
  838         TAE = total amount earned by a primary care hospital.
  839         TA = total appropriation for the primary care
  840  disproportionate share program.
  841  
  842         (4) In establishing the establishment and funding of this
  843  program, the agency shall use the following criteria in addition
  844  to those specified in s. 409.911, and payments may not be made
  845  to a hospital unless the hospital agrees to:
  846         (a) Cooperate with a Medicaid prepaid health plan, if one
  847  exists in the community.
  848         (b) Ensure the availability of primary and specialty care
  849  physicians to Medicaid recipients who are not enrolled in a
  850  prepaid capitated arrangement and who are in need of access to
  851  such physicians.
  852         (c) Coordinate and provide primary care services free of
  853  charge, except copayments, to all persons with incomes up to 100
  854  percent of the federal poverty level who are not otherwise
  855  covered by Medicaid or another program administered by a
  856  governmental entity, and to provide such services based on a
  857  sliding fee scale to all persons with incomes up to 200 percent
  858  of the federal poverty level who are not otherwise covered by
  859  Medicaid or another program administered by a governmental
  860  entity, except that eligibility may be limited to persons who
  861  reside within a more limited area, as agreed to by the agency
  862  and the hospital.
  863         (d) Contract with any federally qualified health center, if
  864  one exists within the agreed geopolitical boundaries, concerning
  865  the provision of primary care services, in order to guarantee
  866  delivery of services in a nonduplicative fashion, and to provide
  867  for referral arrangements, privileges, and admissions, as
  868  appropriate. The hospital shall agree to provide at an onsite or
  869  offsite facility primary care services within 24 hours at an
  870  onsite or offsite facility to which all Medicaid recipients and
  871  persons eligible under this paragraph who do not require
  872  emergency room services are referred during normal daylight
  873  hours.
  874         (e) Cooperate with the agency, the county, and other
  875  entities to ensure the provision of certain public health
  876  services, case management, referral and acceptance of patients,
  877  and sharing of epidemiological data, as the agency and the
  878  hospital find mutually necessary and desirable to promote and
  879  protect the public health within the agreed geopolitical
  880  boundaries.
  881         (f) In cooperation with the county in which the hospital
  882  resides, develop a low-cost, outpatient, prepaid health care
  883  program to persons who are not eligible for the Medicaid
  884  program, and who reside within the area.
  885         (g) Provide inpatient services to residents within the area
  886  who are not eligible for Medicaid or Medicare, and who do not
  887  have private health insurance, regardless of ability to pay, on
  888  the basis of available space, except that hospitals may not be
  889  prevented from establishing bill collection programs based on
  890  ability to pay.
  891         (h) Work with the Florida Healthy Kids Corporation, the
  892  Florida Health Care Purchasing Cooperative, and business health
  893  coalitions, as appropriate, to develop a feasibility study and
  894  plan to provide a low-cost comprehensive health insurance plan
  895  to persons who reside within the area and who do not have access
  896  to such a plan.
  897         (i) Work with public health officials and other experts to
  898  provide community health education and prevention activities
  899  designed to promote healthy lifestyles and appropriate use of
  900  health services.
  901         (j) Work with the local health council to develop a plan
  902  for promoting access to affordable health care services for all
  903  persons who reside within the area, including, but not limited
  904  to, public health services, primary care services, inpatient
  905  services, and affordable health insurance generally.
  906  
  907  Any hospital that fails to comply with any of the provisions of
  908  this subsection, or any other contractual condition, may not
  909  receive payments under this section until full compliance is
  910  achieved.
  911         Section 12. Paragraph (b) of subsection (4), paragraph (b)
  912  of subsection (16), and paragraph (a) of subsection (39) of
  913  section 409.912, Florida Statutes, are amended to read:
  914         409.912 Cost-effective purchasing of health care.—The
  915  agency shall purchase goods and services for Medicaid recipients
  916  in the most cost-effective manner consistent with the delivery
  917  of quality medical care. To ensure that medical services are
  918  effectively utilized, the agency may, in any case, require a
  919  confirmation or second physician’s opinion of the correct
  920  diagnosis for purposes of authorizing future services under the
  921  Medicaid program. This section does not restrict access to
  922  emergency services or poststabilization care services as defined
  923  in 42 C.F.R. part 438.114. Such confirmation or second opinion
  924  shall be rendered in a manner approved by the agency. The agency
  925  shall maximize the use of prepaid per capita and prepaid
  926  aggregate fixed-sum basis services when appropriate and other
  927  alternative service delivery and reimbursement methodologies,
  928  including competitive bidding pursuant to s. 287.057, designed
  929  to facilitate the cost-effective purchase of a case-managed
  930  continuum of care. The agency shall also require providers to
  931  minimize the exposure of recipients to the need for acute
  932  inpatient, custodial, and other institutional care and the
  933  inappropriate or unnecessary use of high-cost services. The
  934  agency shall contract with a vendor to monitor and evaluate the
  935  clinical practice patterns of providers in order to identify
  936  trends that are outside the normal practice patterns of a
  937  provider’s professional peers or the national guidelines of a
  938  provider’s professional association. The vendor must be able to
  939  provide information and counseling to a provider whose practice
  940  patterns are outside the norms, in consultation with the agency,
  941  to improve patient care and reduce inappropriate utilization.
  942  The agency may mandate prior authorization, drug therapy
  943  management, or disease management participation for certain
  944  populations of Medicaid beneficiaries, certain drug classes, or
  945  particular drugs to prevent fraud, abuse, overuse, and possible
  946  dangerous drug interactions. The Pharmaceutical and Therapeutics
  947  Committee shall make recommendations to the agency on drugs for
  948  which prior authorization is required. The agency shall inform
  949  the Pharmaceutical and Therapeutics Committee of its decisions
  950  regarding drugs subject to prior authorization. The agency is
  951  authorized to limit the entities it contracts with or enrolls as
  952  Medicaid providers by developing a provider network through
  953  provider credentialing. The agency may competitively bid single
  954  source-provider contracts if procurement of goods or services
  955  results in demonstrated cost savings to the state without
  956  limiting access to care. The agency may limit its network based
  957  on the assessment of beneficiary access to care, provider
  958  availability, provider quality standards, time and distance
  959  standards for access to care, the cultural competence of the
  960  provider network, demographic characteristics of Medicaid
  961  beneficiaries, practice and provider-to-beneficiary standards,
  962  appointment wait times, beneficiary use of services, provider
  963  turnover, provider profiling, provider licensure history,
  964  previous program integrity investigations and findings, peer
  965  review, provider Medicaid policy and billing compliance records,
  966  clinical and medical record audits, and other factors. Providers
  967  shall not be entitled to enrollment in the Medicaid provider
  968  network. The agency shall determine instances in which allowing
  969  Medicaid beneficiaries to purchase durable medical equipment and
  970  other goods is less expensive to the Medicaid program than long
  971  term rental of the equipment or goods. The agency may establish
  972  rules to facilitate purchases in lieu of long-term rentals in
  973  order to protect against fraud and abuse in the Medicaid program
  974  as defined in s. 409.913. The agency may seek federal waivers
  975  necessary to administer these policies.
  976         (4) The agency may contract with:
  977         (b) An entity that is providing comprehensive behavioral
  978  health care services to certain Medicaid recipients through a
  979  capitated, prepaid arrangement pursuant to the federal waiver
  980  provided for by s. 409.905(5). Such entity must be licensed
  981  under chapter 624, chapter 636, or chapter 641, or authorized
  982  under paragraph (c) or paragraph (d), and must possess the
  983  clinical systems and operational competence to manage risk and
  984  provide comprehensive behavioral health care to Medicaid
  985  recipients. As used in this paragraph, the term “comprehensive
  986  behavioral health care services” means covered mental health and
  987  substance abuse treatment services that are available to
  988  Medicaid recipients. The Secretary of the Department of Children
  989  and Family Services shall approve provisions of procurements
  990  related to children in the department’s care or custody before
  991  enrolling such children in a prepaid behavioral health plan. Any
  992  contract awarded under this paragraph must be competitively
  993  procured. In developing The behavioral health care prepaid plan
  994  procurement document, the agency shall ensure that the
  995  procurement document requires the contractor to develop and
  996  implement a plan to ensure compliance with s. 394.4574 related
  997  to services provided to residents of licensed assisted living
  998  facilities that hold a limited mental health license. Except as
  999  provided in subparagraph 8., and except in counties where the
 1000  Medicaid managed care pilot program is authorized pursuant to s.
 1001  409.91211, the agency shall seek federal approval to contract
 1002  with a single entity meeting these requirements to provide
 1003  comprehensive behavioral health care services to all Medicaid
 1004  recipients not enrolled in a Medicaid managed care plan
 1005  authorized under s. 409.91211, a provider service network
 1006  authorized under paragraph (d), or a Medicaid health maintenance
 1007  organization in an AHCA area. In an AHCA area where the Medicaid
 1008  managed care pilot program is authorized pursuant to s.
 1009  409.91211 in one or more counties, the agency may procure a
 1010  contract with a single entity to serve the remaining counties as
 1011  an AHCA area or the remaining counties may be included with an
 1012  adjacent AHCA area and are subject to this paragraph. Each
 1013  entity must offer a sufficient choice of providers in its
 1014  network to ensure recipient access to care and the opportunity
 1015  to select a provider with whom they are satisfied. The network
 1016  shall include all public mental health hospitals. To ensure
 1017  unimpaired access to behavioral health care services by Medicaid
 1018  recipients, all contracts issued pursuant to this paragraph must
 1019  require 80 percent of the capitation paid to the managed care
 1020  plan, including health maintenance organizations and capitated
 1021  provider service networks, to be expended for the provision of
 1022  behavioral health care services. If the managed care plan
 1023  expends less than 80 percent of the capitation paid for the
 1024  provision of behavioral health care services, the difference
 1025  shall be returned to the agency. The agency shall provide the
 1026  plan with a certification letter indicating the amount of
 1027  capitation paid during each calendar year for behavioral health
 1028  care services pursuant to this section. The agency may reimburse
 1029  for substance abuse treatment services on a fee-for-service
 1030  basis until the agency finds that adequate funds are available
 1031  for capitated, prepaid arrangements.
 1032         1. By January 1, 2001, The agency shall modify the
 1033  contracts with the entities providing comprehensive inpatient
 1034  and outpatient mental health care services to Medicaid
 1035  recipients in Hillsborough, Highlands, Hardee, Manatee, and Polk
 1036  Counties, to include substance abuse treatment services.
 1037         2. By July 1, 2003, the agency and the Department of
 1038  Children and Family Services shall execute a written agreement
 1039  that requires collaboration and joint development of all policy,
 1040  budgets, procurement documents, contracts, and monitoring plans
 1041  that have an impact on the state and Medicaid community mental
 1042  health and targeted case management programs.
 1043         3. Except as provided in subparagraph 8., by July 1, 2006,
 1044  the agency and the Department of Children and Family Services
 1045  shall contract with managed care entities in each AHCA area
 1046  except area 6 or arrange to provide comprehensive inpatient and
 1047  outpatient mental health and substance abuse services through
 1048  capitated prepaid arrangements to all Medicaid recipients who
 1049  are eligible to participate in such plans under federal law and
 1050  regulation. In AHCA areas where eligible individuals number less
 1051  than 150,000, the agency shall contract with a single managed
 1052  care plan to provide comprehensive behavioral health services to
 1053  all recipients who are not enrolled in a Medicaid health
 1054  maintenance organization, a provider service network authorized
 1055  under paragraph (d), or a Medicaid capitated managed care plan
 1056  authorized under s. 409.91211. The agency may contract with more
 1057  than one comprehensive behavioral health provider to provide
 1058  care to recipients who are not enrolled in a Medicaid capitated
 1059  managed care plan authorized under s. 409.91211, a provider
 1060  service network authorized under paragraph (d), or a Medicaid
 1061  health maintenance organization in AHCA areas where the eligible
 1062  population exceeds 150,000. In an AHCA area where the Medicaid
 1063  managed care pilot program is authorized pursuant to s.
 1064  409.91211 in one or more counties, the agency may procure a
 1065  contract with a single entity to serve the remaining counties as
 1066  an AHCA area or the remaining counties may be included with an
 1067  adjacent AHCA area and shall be subject to this paragraph.
 1068  Contracts for comprehensive behavioral health providers awarded
 1069  pursuant to this section shall be competitively procured. Both
 1070  for-profit and not-for-profit corporations are eligible to
 1071  compete. Managed care plans contracting with the agency under
 1072  subsection (3) or paragraph (d), shall provide and receive
 1073  payment for the same comprehensive behavioral health benefits as
 1074  provided in AHCA rules, including handbooks incorporated by
 1075  reference. In AHCA area 11, the agency shall contract with at
 1076  least two comprehensive behavioral health care providers to
 1077  provide behavioral health care to recipients in that area who
 1078  are enrolled in, or assigned to, the MediPass program. One of
 1079  the behavioral health care contracts must be with the existing
 1080  provider service network pilot project, as described in
 1081  paragraph (d), for the purpose of demonstrating the cost
 1082  effectiveness of the provision of quality mental health services
 1083  through a public hospital-operated managed care model. Payment
 1084  shall be at an agreed-upon capitated rate to ensure cost
 1085  savings. Of the recipients in area 11 who are assigned to
 1086  MediPass under s. 409.9122(2)(k), a minimum of 50,000 of those
 1087  MediPass-enrolled recipients shall be assigned to the existing
 1088  provider service network in area 11 for their behavioral care.
 1089         4. By October 1, 2003, the agency and the department shall
 1090  submit a plan to the Governor, the President of the Senate, and
 1091  the Speaker of the House of Representatives which provides for
 1092  the full implementation of capitated prepaid behavioral health
 1093  care in all areas of the state.
 1094         a. Implementation shall begin in 2003 in those AHCA areas
 1095  of the state where the agency is able to establish sufficient
 1096  capitation rates.
 1097         b. If the agency determines that the proposed capitation
 1098  rate in any area is insufficient to provide appropriate
 1099  services, the agency may adjust the capitation rate to ensure
 1100  that care will be available. The agency and the department may
 1101  use existing general revenue to address any additional required
 1102  match but may not over-obligate existing funds on an annualized
 1103  basis.
 1104         c. Subject to any limitations provided in the General
 1105  Appropriations Act, the agency, in compliance with appropriate
 1106  federal authorization, shall develop policies and procedures
 1107  that allow for certification of local and state funds.
 1108         5. Children residing in a statewide inpatient psychiatric
 1109  program, or in a Department of Juvenile Justice or a Department
 1110  of Children and Family Services residential program approved as
 1111  a Medicaid behavioral health overlay services provider may not
 1112  be included in a behavioral health care prepaid health plan or
 1113  any other Medicaid managed care plan pursuant to this paragraph.
 1114         6. In converting to a prepaid system of delivery, the
 1115  agency shall in its procurement document require an entity
 1116  providing only comprehensive behavioral health care services to
 1117  prevent the displacement of indigent care patients by enrollees
 1118  in the Medicaid prepaid health plan providing behavioral health
 1119  care services from facilities receiving state funding to provide
 1120  indigent behavioral health care, to facilities licensed under
 1121  chapter 395 which do not receive state funding for indigent
 1122  behavioral health care, or reimburse the unsubsidized facility
 1123  for the cost of behavioral health care provided to the displaced
 1124  indigent care patient.
 1125         7. Traditional community mental health providers under
 1126  contract with the Department of Children and Family Services
 1127  pursuant to part IV of chapter 394, child welfare providers
 1128  under contract with the Department of Children and Family
 1129  Services in areas 1 and 6, and inpatient mental health providers
 1130  licensed pursuant to chapter 395 must be offered an opportunity
 1131  to accept or decline a contract to participate in any provider
 1132  network for prepaid behavioral health services.
 1133         8. All Medicaid-eligible children, except children in area
 1134  1 and children in Highlands County, Hardee County, Polk County,
 1135  or Manatee County of area 6, that are open for child welfare
 1136  services in the HomeSafeNet system, shall receive their
 1137  behavioral health care services through a specialty prepaid plan
 1138  operated by community-based lead agencies through a single
 1139  agency or formal agreements among several agencies. The agency
 1140  shall work with the specialty plan to develop clinically
 1141  effective, evidence-based alternatives as a downward
 1142  substitution for the statewide inpatient psychiatric program and
 1143  similar residential care and institutional services. The
 1144  specialty prepaid plan must result in savings to the state
 1145  comparable to savings achieved in other Medicaid managed care
 1146  and prepaid programs. Such plan must provide mechanisms to
 1147  maximize state and local revenues. The specialty prepaid plan
 1148  shall be developed by the agency and the Department of Children
 1149  and Family Services. The agency may seek federal waivers to
 1150  implement this initiative. Medicaid-eligible children whose
 1151  cases are open for child welfare services in the HomeSafeNet
 1152  system and who reside in AHCA area 10 are exempt from the
 1153  specialty prepaid plan upon the development of a service
 1154  delivery mechanism for children who reside in area 10 as
 1155  specified in s. 409.91211(3)(dd).
 1156         (16)
 1157         (b) The responsibility of the agency under this subsection
 1158  includes shall include the development of capabilities to
 1159  identify actual and optimal practice patterns; patient and
 1160  provider educational initiatives; methods for determining
 1161  patient compliance with prescribed treatments; fraud, waste, and
 1162  abuse prevention and detection programs; and beneficiary case
 1163  management programs.
 1164         1. The practice pattern identification program shall
 1165  evaluate practitioner prescribing patterns based on national and
 1166  regional practice guidelines, comparing practitioners to their
 1167  peer groups. The agency and its Drug Utilization Review Board
 1168  shall consult with the Department of Health and a panel of
 1169  practicing health care professionals consisting of the
 1170  following: the Speaker of the House of Representatives and the
 1171  President of the Senate shall each appoint three physicians
 1172  licensed under chapter 458 or chapter 459; and the Governor
 1173  shall appoint two pharmacists licensed under chapter 465 and one
 1174  dentist licensed under chapter 466 who is an oral surgeon. Terms
 1175  of the panel members shall expire at the discretion of the
 1176  appointing official. The advisory panel shall be responsible for
 1177  evaluating treatment guidelines and recommending ways to
 1178  incorporate their use in the practice pattern identification
 1179  program. Practitioners who are prescribing inappropriately or
 1180  inefficiently, as determined by the agency, may have their
 1181  prescribing of certain drugs subject to prior authorization or
 1182  may be terminated from all participation in the Medicaid
 1183  program.
 1184         2. The agency shall also develop educational interventions
 1185  designed to promote the proper use of medications by providers
 1186  and beneficiaries.
 1187         3. The agency shall implement a pharmacy fraud, waste, and
 1188  abuse initiative that may include a surety bond or letter of
 1189  credit requirement for participating pharmacies, enhanced
 1190  provider auditing practices, the use of additional fraud and
 1191  abuse software, recipient management programs for beneficiaries
 1192  inappropriately using their benefits, and other steps that will
 1193  eliminate provider and recipient fraud, waste, and abuse. The
 1194  initiative shall address enforcement efforts to reduce the
 1195  number and use of counterfeit prescriptions.
 1196         4. By September 30, 2002, The agency may shall contract
 1197  with an entity in the state to provide Medicaid providers with
 1198  electronic access to Medicaid prescription refill data and
 1199  information relating to the Medicaid preferred drug list
 1200  implement a wireless handheld clinical pharmacology drug
 1201  information database for practitioners. The initiative shall be
 1202  designed to enhance the agency’s efforts to reduce fraud, abuse,
 1203  and errors in the prescription drug benefit program and to
 1204  otherwise further the intent of this paragraph.
 1205         5. By April 1, 2006, The agency shall contract with an
 1206  entity to design a database of clinical utilization information
 1207  or electronic medical records for Medicaid providers. The
 1208  database This system must be web-based and allow providers to
 1209  review on a real-time basis the utilization of Medicaid
 1210  services, including, but not limited to, physician office
 1211  visits, inpatient and outpatient hospitalizations, laboratory
 1212  and pathology services, radiological and other imaging services,
 1213  dental care, and patterns of dispensing prescription drugs in
 1214  order to coordinate care and identify potential fraud and abuse.
 1215         6. The agency may apply for any federal waivers needed to
 1216  administer this paragraph.
 1217         (39)(a) The agency shall implement a Medicaid prescribed
 1218  drug spending-control program that includes the following
 1219  components:
 1220         1. A Medicaid preferred drug list, which shall be a listing
 1221  of cost-effective therapeutic options recommended by the
 1222  Medicaid Pharmacy and Therapeutics Committee established
 1223  pursuant to s. 409.91195 and adopted by the agency for each
 1224  therapeutic class on the preferred drug list. At the discretion
 1225  of the committee, and when feasible, the preferred drug list
 1226  should include at least two products in a therapeutic class. The
 1227  agency may post the preferred drug list and updates to the
 1228  preferred drug list on an Internet website without following the
 1229  rulemaking procedures of chapter 120. Antiretroviral agents are
 1230  excluded from the preferred drug list. The agency shall also
 1231  limit the amount of a prescribed drug dispensed to no more than
 1232  a 34-day supply unless the drug products’ smallest marketed
 1233  package is greater than a 34-day supply, or the drug is
 1234  determined by the agency to be a maintenance drug in which case
 1235  a 100-day maximum supply may be authorized. The agency may is
 1236  authorized to seek any federal waivers necessary to implement
 1237  these cost-control programs and to continue participation in the
 1238  federal Medicaid rebate program, or alternatively to negotiate
 1239  state-only manufacturer rebates. The agency may adopt rules to
 1240  administer implement this subparagraph. The agency shall
 1241  continue to provide unlimited contraceptive drugs and items. The
 1242  agency must establish procedures to ensure that:
 1243         a. There is a response to a request for prior consultation
 1244  by telephone or other telecommunication device within 24 hours
 1245  after receipt of a request for prior consultation; and
 1246         b. A 72-hour supply of the drug prescribed is provided in
 1247  an emergency or when the agency does not provide a response
 1248  within 24 hours as required by sub-subparagraph a.
 1249         2. Reimbursement to pharmacies for Medicaid prescribed
 1250  drugs shall be set at the lowest lesser of: the average
 1251  wholesale price (AWP) minus 16.4 percent, the wholesaler
 1252  acquisition cost (WAC) plus 1.5 4.75 percent, the federal upper
 1253  limit (FUL), the state maximum allowable cost (SMAC), or the
 1254  usual and customary (UAC) charge billed by the provider.
 1255         3. The agency shall develop and implement a process for
 1256  managing the drug therapies of Medicaid recipients who are using
 1257  significant numbers of prescribed drugs each month. The
 1258  management process may include, but is not limited to,
 1259  comprehensive, physician-directed medical-record reviews, claims
 1260  analyses, and case evaluations to determine the medical
 1261  necessity and appropriateness of a patient’s treatment plan and
 1262  drug therapies. The agency may contract with a private
 1263  organization to provide drug-program-management services. The
 1264  Medicaid drug benefit management program shall include
 1265  initiatives to manage drug therapies for HIV/AIDS patients,
 1266  patients using 20 or more unique prescriptions in a 180-day
 1267  period, and the top 1,000 patients in annual spending. The
 1268  agency shall enroll any Medicaid recipient in the drug benefit
 1269  management program if he or she meets the specifications of this
 1270  provision and is not enrolled in a Medicaid health maintenance
 1271  organization.
 1272         4. The agency may limit the size of its pharmacy network
 1273  based on need, competitive bidding, price negotiations,
 1274  credentialing, or similar criteria. The agency shall give
 1275  special consideration to rural areas in determining the size and
 1276  location of pharmacies included in the Medicaid pharmacy
 1277  network. A pharmacy credentialing process may include criteria
 1278  such as a pharmacy’s full-service status, location, size,
 1279  patient educational programs, patient consultation, disease
 1280  management services, and other characteristics. The agency may
 1281  impose a moratorium on Medicaid pharmacy enrollment if when it
 1282  is determined that it has a sufficient number of Medicaid
 1283  participating providers. The agency must allow dispensing
 1284  practitioners to participate as a part of the Medicaid pharmacy
 1285  network regardless of the practitioner’s proximity to any other
 1286  entity that is dispensing prescription drugs under the Medicaid
 1287  program. A dispensing practitioner must meet all credentialing
 1288  requirements applicable to his or her practice, as determined by
 1289  the agency.
 1290         5. The agency shall develop and implement a program that
 1291  requires Medicaid practitioners who prescribe drugs to use a
 1292  counterfeit-proof prescription pad for Medicaid prescriptions.
 1293  The agency shall require the use of standardized counterfeit
 1294  proof prescription pads by Medicaid-participating prescribers or
 1295  prescribers who write prescriptions for Medicaid recipients. The
 1296  agency may implement the program in targeted geographic areas or
 1297  statewide.
 1298         6. The agency may enter into arrangements that require
 1299  manufacturers of generic drugs prescribed to Medicaid recipients
 1300  to provide rebates of at least 15.1 percent of the average
 1301  manufacturer price for the manufacturer’s generic products.
 1302  These arrangements shall require that if a generic-drug
 1303  manufacturer pays federal rebates for Medicaid-reimbursed drugs
 1304  at a level below 15.1 percent, the manufacturer must provide a
 1305  supplemental rebate to the state in an amount necessary to
 1306  achieve a 15.1-percent rebate level.
 1307         7. The agency may establish a preferred drug list as
 1308  described in this subsection, and, pursuant to the establishment
 1309  of such preferred drug list, it is authorized to negotiate
 1310  supplemental rebates from manufacturers that are in addition to
 1311  those required by Title XIX of the Social Security Act and at no
 1312  less than 14 percent of the average manufacturer price as
 1313  defined in 42 U.S.C. s. 1936 on the last day of a quarter unless
 1314  the federal or supplemental rebate, or both, equals or exceeds
 1315  29 percent. There is no upper limit on the supplemental rebates
 1316  the agency may negotiate. The agency may determine that specific
 1317  products, brand-name or generic, are competitive at lower rebate
 1318  percentages. Agreement to pay the minimum supplemental rebate
 1319  percentage will guarantee a manufacturer that the Medicaid
 1320  Pharmaceutical and Therapeutics Committee will consider a
 1321  product for inclusion on the preferred drug list. However, a
 1322  pharmaceutical manufacturer is not guaranteed placement on the
 1323  preferred drug list by simply paying the minimum supplemental
 1324  rebate. Agency decisions will be made on the clinical efficacy
 1325  of a drug and recommendations of the Medicaid Pharmaceutical and
 1326  Therapeutics Committee, as well as the price of competing
 1327  products minus federal and state rebates. The agency may is
 1328  authorized to contract with an outside agency or contractor to
 1329  conduct negotiations for supplemental rebates. For the purposes
 1330  of this section, the term “supplemental rebates” means cash
 1331  rebates. Effective July 1, 2004, Value-added programs as a
 1332  substitution for supplemental rebates are prohibited. The agency
 1333  may is authorized to seek any federal waivers to implement this
 1334  initiative.
 1335         8. The agency for Health Care Administration shall expand
 1336  home delivery of pharmacy products. The agency may amend the
 1337  state plan and issue a procurement, as necessary, in order to
 1338  implement this program. The procurements must include agreements
 1339  with a pharmacy or pharmacies located in the state to provide
 1340  mail order delivery services at no cost to the recipients who
 1341  elect to receive home delivery of pharmacy products. The
 1342  procurement must focus on serving recipients with chronic
 1343  diseases for which pharmacy expenditures represent a significant
 1344  portion of Medicaid pharmacy expenditures or which impact a
 1345  significant portion of the Medicaid population. To assist
 1346  Medicaid patients in securing their prescriptions and reduce
 1347  program costs, the agency shall expand its current mail-order
 1348  pharmacy diabetes-supply program to include all generic and
 1349  brand-name drugs used by Medicaid patients with diabetes.
 1350  Medicaid recipients in the current program may obtain
 1351  nondiabetes drugs on a voluntary basis. This initiative is
 1352  limited to the geographic area covered by the current contract.
 1353  The agency may seek and implement any federal waivers necessary
 1354  to implement this subparagraph.
 1355         9. The agency shall limit to one dose per month any drug
 1356  prescribed to treat erectile dysfunction.
 1357         10.a. The agency may implement a Medicaid behavioral drug
 1358  management system. The agency may contract with a vendor that
 1359  has experience in operating behavioral drug management systems
 1360  to implement this program. The agency may is authorized to seek
 1361  federal waivers to implement this program.
 1362         b. The agency, in conjunction with the Department of
 1363  Children and Family Services, may implement the Medicaid
 1364  behavioral drug management system that is designed to improve
 1365  the quality of care and behavioral health prescribing practices
 1366  based on best practice guidelines, improve patient adherence to
 1367  medication plans, reduce clinical risk, and lower prescribed
 1368  drug costs and the rate of inappropriate spending on Medicaid
 1369  behavioral drugs. The program may include the following
 1370  elements:
 1371         (I) Provide for the development and adoption of best
 1372  practice guidelines for behavioral health-related drugs such as
 1373  antipsychotics, antidepressants, and medications for treating
 1374  bipolar disorders and other behavioral conditions; translate
 1375  them into practice; review behavioral health prescribers and
 1376  compare their prescribing patterns to a number of indicators
 1377  that are based on national standards; and determine deviations
 1378  from best practice guidelines.
 1379         (II) Implement processes for providing feedback to and
 1380  educating prescribers using best practice educational materials
 1381  and peer-to-peer consultation.
 1382         (III) Assess Medicaid beneficiaries who are outliers in
 1383  their use of behavioral health drugs with regard to the numbers
 1384  and types of drugs taken, drug dosages, combination drug
 1385  therapies, and other indicators of improper use of behavioral
 1386  health drugs.
 1387         (IV) Alert prescribers to patients who fail to refill
 1388  prescriptions in a timely fashion, are prescribed multiple same
 1389  class behavioral health drugs, and may have other potential
 1390  medication problems.
 1391         (V) Track spending trends for behavioral health drugs and
 1392  deviation from best practice guidelines.
 1393         (VI) Use educational and technological approaches to
 1394  promote best practices, educate consumers, and train prescribers
 1395  in the use of practice guidelines.
 1396         (VII) Disseminate electronic and published materials.
 1397         (VIII) Hold statewide and regional conferences.
 1398         (IX) Implement a disease management program with a model
 1399  quality-based medication component for severely mentally ill
 1400  individuals and emotionally disturbed children who are high
 1401  users of care.
 1402         11.a. The agency shall implement a Medicaid prescription
 1403  drug management system.
 1404         a. The agency may contract with a vendor that has
 1405  experience in operating prescription drug management systems in
 1406  order to implement this system. Any management system that is
 1407  implemented in accordance with this subparagraph must rely on
 1408  cooperation between physicians and pharmacists to determine
 1409  appropriate practice patterns and clinical guidelines to improve
 1410  the prescribing, dispensing, and use of drugs in the Medicaid
 1411  program. The agency may seek federal waivers to implement this
 1412  program.
 1413         b. The drug management system must be designed to improve
 1414  the quality of care and prescribing practices based on best
 1415  practice guidelines, improve patient adherence to medication
 1416  plans, reduce clinical risk, and lower prescribed drug costs and
 1417  the rate of inappropriate spending on Medicaid prescription
 1418  drugs. The program must:
 1419         (I) Provide for the development and adoption of best
 1420  practice guidelines for the prescribing and use of drugs in the
 1421  Medicaid program, including translating best practice guidelines
 1422  into practice; reviewing prescriber patterns and comparing them
 1423  to indicators that are based on national standards and practice
 1424  patterns of clinical peers in their community, statewide, and
 1425  nationally; and determine deviations from best practice
 1426  guidelines.
 1427         (II) Implement processes for providing feedback to and
 1428  educating prescribers using best practice educational materials
 1429  and peer-to-peer consultation.
 1430         (III) Assess Medicaid recipients who are outliers in their
 1431  use of a single or multiple prescription drugs with regard to
 1432  the numbers and types of drugs taken, drug dosages, combination
 1433  drug therapies, and other indicators of improper use of
 1434  prescription drugs.
 1435         (IV) Alert prescribers to recipients patients who fail to
 1436  refill prescriptions in a timely fashion, are prescribed
 1437  multiple drugs that may be redundant or contraindicated, or may
 1438  have other potential medication problems.
 1439         (V) Track spending trends for prescription drugs and
 1440  deviation from best practice guidelines.
 1441         (VI) Use educational and technological approaches to
 1442  promote best practices, educate consumers, and train prescribers
 1443  in the use of practice guidelines.
 1444         (VII) Disseminate electronic and published materials.
 1445         (VIII) Hold statewide and regional conferences.
 1446         (IX) Implement disease management programs in cooperation
 1447  with physicians and pharmacists, along with a model quality
 1448  based medication component for individuals having chronic
 1449  medical conditions.
 1450         12. The agency may is authorized to contract for drug
 1451  rebate administration, including, but not limited to,
 1452  calculating rebate amounts, invoicing manufacturers, negotiating
 1453  disputes with manufacturers, and maintaining a database of
 1454  rebate collections.
 1455         13. The agency may specify the preferred daily dosing form
 1456  or strength for the purpose of promoting best practices with
 1457  regard to the prescribing of certain drugs as specified in the
 1458  General Appropriations Act and ensuring cost-effective
 1459  prescribing practices.
 1460         14. The agency may require prior authorization for
 1461  Medicaid-covered prescribed drugs. The agency may, but is not
 1462  required to, prior-authorize the use of a product:
 1463         a. For an indication not approved in labeling;
 1464         b. To comply with certain clinical guidelines; or
 1465         c. If the product has the potential for overuse, misuse, or
 1466  abuse.
 1467  
 1468  The agency may require the prescribing professional to provide
 1469  information about the rationale and supporting medical evidence
 1470  for the use of a drug. The agency may post prior authorization
 1471  criteria and protocol and updates to the list of drugs that are
 1472  subject to prior authorization on an Internet website without
 1473  amending its rule or engaging in additional rulemaking.
 1474         15. The agency, in conjunction with the Pharmaceutical and
 1475  Therapeutics Committee, may require age-related prior
 1476  authorizations for certain prescribed drugs. The agency may
 1477  preauthorize the use of a drug for a recipient who may not meet
 1478  the age requirement or may exceed the length of therapy for use
 1479  of this product as recommended by the manufacturer and approved
 1480  by the Food and Drug Administration. Prior authorization may
 1481  require the prescribing professional to provide information
 1482  about the rationale and supporting medical evidence for the use
 1483  of a drug.
 1484         16. The agency shall implement a step-therapy prior
 1485  authorization approval process for medications excluded from the
 1486  preferred drug list. Medications listed on the preferred drug
 1487  list must be used within the previous 12 months before prior to
 1488  the alternative medications that are not listed. The step
 1489  therapy prior authorization may require the prescriber to use
 1490  the medications of a similar drug class or for a similar medical
 1491  indication unless contraindicated in the Food and Drug
 1492  Administration labeling. The trial period between the specified
 1493  steps may vary according to the medical indication. The step
 1494  therapy approval process shall be developed in accordance with
 1495  the committee as stated in s. 409.91195(7) and (8). A drug
 1496  product may be approved without meeting the step-therapy prior
 1497  authorization criteria if the prescribing physician provides the
 1498  agency with additional written medical or clinical documentation
 1499  that the product is medically necessary because:
 1500         a. There is not a drug on the preferred drug list to treat
 1501  the disease or medical condition which is an acceptable clinical
 1502  alternative;
 1503         b. The alternatives have been ineffective in the treatment
 1504  of the beneficiary’s disease; or
 1505         c. Based on historic evidence and known characteristics of
 1506  the patient and the drug, the drug is likely to be ineffective,
 1507  or the number of doses have been ineffective.
 1508  
 1509  The agency shall work with the physician to determine the best
 1510  alternative for the patient. The agency may adopt rules waiving
 1511  the requirements for written clinical documentation for specific
 1512  drugs in limited clinical situations.
 1513         17. The agency shall implement a return and reuse program
 1514  for drugs dispensed by pharmacies to institutional recipients,
 1515  which includes payment of a $5 restocking fee for the
 1516  implementation and operation of the program. The return and
 1517  reuse program shall be implemented electronically and in a
 1518  manner that promotes efficiency. The program must permit a
 1519  pharmacy to exclude drugs from the program if it is not
 1520  practical or cost-effective for the drug to be included and must
 1521  provide for the return to inventory of drugs that cannot be
 1522  credited or returned in a cost-effective manner. The agency
 1523  shall determine if the program has reduced the amount of
 1524  Medicaid prescription drugs which are destroyed on an annual
 1525  basis and if there are additional ways to ensure more
 1526  prescription drugs are not destroyed which could safely be
 1527  reused. The agency’s conclusion and recommendations shall be
 1528  reported to the Legislature by December 1, 2005.
 1529         Section 13. Paragraph (m) is added to subsection (2) and
 1530  subsection (15) is added to section 409.9122, Florida Statutes,
 1531  to read:
 1532         409.9122 Mandatory Medicaid managed care enrollment;
 1533  programs and procedures.—
 1534         (2)
 1535         (m) If the Medicaid recipient is diagnosed with HIV/AIDS
 1536  and resides in Broward, Miami-Dade, or Palm Beach counties, the
 1537  agency shall assign the recipient to a managed care plan that is
 1538  a health maintenance organization authorized under Chapter 641,
 1539  under contract with the agency on July 1, 2011, and which offers
 1540  a delivery system through a university-based teaching and
 1541  research-oriented organization that specializes in providing
 1542  health care services and treatment for individuals diagnosed
 1543  with HIV/AIDS.
 1544         (15) The agency shall contract with a single provider
 1545  service network to function as a managing entity for the
 1546  MediPass program in all counties with fewer than two prepaid
 1547  plans. The contractor shall be responsible for implementing
 1548  preauthorization procedures, case management programs, and
 1549  utilization management initiatives in order to improve care
 1550  coordination and patient outcomes while reducing costs. The
 1551  contractor may earn an administrative fee if the fee is less
 1552  than any savings as determined by the reconciliation process
 1553  under s. 409.912(4)(d)1.
 1554         Section 14. Section 636.0145, Florida Statutes, is amended
 1555  to read:
 1556         636.0145 Certain entities contracting with Medicaid.
 1557  Notwithstanding the requirements of s. 409.912(4)(b), an entity
 1558  that is providing comprehensive inpatient and outpatient mental
 1559  health care services to certain Medicaid recipients in
 1560  Hillsborough, Highlands, Hardee, Manatee, and Polk Counties
 1561  through a capitated, prepaid arrangement pursuant to the federal
 1562  waiver provided for in s. 409.905(5) must become licensed under
 1563  chapter 636 by December 31, 1998. Any entity licensed under this
 1564  chapter which provides services solely to Medicaid recipients
 1565  under a contract with Medicaid is shall be exempt from ss.
 1566  636.017, 636.018, 636.022, 636.028, and 636.034, and 636.066(1).
 1567         Section 15. The amendments to s. 636.0145, Florida
 1568  Statutes, under this act shall operate prospectively and do not
 1569  provide a basis for relief from or assessment of taxes not paid,
 1570  or for determining any denial of or right to a refund of taxes
 1571  paid before the effective date of the act.
 1572         Section 16. (1) The Legislature finds that hundreds of
 1573  millions of dollars appropriated annually in support of the
 1574  state’s Medicaid program and other critical health programs come
 1575  directly from revenues resulting from the settlement in State of
 1576  Florida v. American Tobacco Co., No. 95-1466AH (Fla. 15th Cir.
 1577  Ct.), that maintaining those revenues is critical to the health
 1578  of this state’s residents, that s. 569.23(3), Florida Statutes,
 1579  protects the continued receipt of those revenues, that the
 1580  sunset of s. 569.23(3), Florida Statutes, will undermine
 1581  financial support for the state’s Medicaid and other critical
 1582  health programs, and that the sunset of that subsection should
 1583  therefore be repealed.
 1584         (2) Paragraph (f) of subsection (3) of section 569.23,
 1585  Florida Statutes, is repealed.
 1586         Section 17. Notwithstanding s. 430.707, Florida Statutes,
 1587  and subject to federal approval of the application to be a site
 1588  for the Program of All-inclusive Care for the Elderly, the
 1589  Agency for Health Care Administration shall contract with one
 1590  private health care organization, the sole member of which is a
 1591  private, not-for-profit corporation that owns and manages health
 1592  care organizations which provide comprehensive long-term care
 1593  services, including nursing home, assisted living, independent
 1594  housing, home care, adult day care, and care management, with a
 1595  board-certified, trained geriatrician as the medical director.
 1596  This organization shall provide these services to frail and
 1597  elderly persons who reside in Palm Beach County. The
 1598  organization is exempt from the requirements of chapter 641,
 1599  Florida Statutes. The agency, in consultation with the
 1600  Department of Elderly Affairs and subject to an appropriation,
 1601  shall approve up to 150 initial enrollees in the Program of All
 1602  inclusive Care for the Elderly established by this organization
 1603  to serve elderly persons who reside in Palm Beach County.
 1604         Section 18. This act shall take effect July 1, 2011.