Florida Senate - 2011 SENATOR AMENDMENT
Bill No. CS/HB 7107, 2nd Eng.
Barcode 491664
LEGISLATIVE ACTION
Senate . House
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Floor: 1/AD/2R . Floor: C
05/05/2011 04:51 PM . 05/06/2011 07:15 PM
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Senator Negron moved the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Sections 409.961 through 409.985, Florida
6 Statutes, are designated as part IV of chapter 409, Florida
7 Statutes, entitled “Medicaid Managed Care.”
8 Section 2. Section 409.961, Florida Statutes, is created to
9 read:
10 409.961 Statutory construction; applicability; rules.—It is
11 the intent of the Legislature that if any conflict exists
12 between the provisions contained in this part and in other parts
13 of this chapter, the provisions in this part control. Sections
14 409.961–409.985 apply only to the Medicaid managed medical
15 assistance program and long-term care managed care program, as
16 provided in this part. The agency shall adopt any rules
17 necessary to comply with or administer this part and all rules
18 necessary to comply with federal requirements. In addition, the
19 department shall adopt and accept the transfer of any rules
20 necessary to carry out the department’s responsibilities for
21 receiving and processing Medicaid applications and determining
22 Medicaid eligibility and for ensuring compliance with and
23 administering this part, as those rules relate to the
24 department’s responsibilities, and any other provisions related
25 to the department’s responsibility for the determination of
26 Medicaid eligibility.
27 Section 3. Section 409.962, Florida Statutes, is created to
28 read:
29 409.962 Definitions.—As used in this part, except as
30 otherwise specifically provided, the term:
31 (1) “Accountable care organization” means an entity
32 qualified as an accountable care organization in accordance with
33 federal regulations, and which meets the requirements of a
34 provider service network as described in s. 409.912(4)(d).
35 (2) “Agency” means the Agency for Health Care
36 Administration.
37 (3) “Aging network service provider” means a provider that
38 participated in a home and community-based waiver administered
39 by the Department of Elderly Affairs or the community care
40 service system pursuant to s. 430.205 as of October 1, 2013.
41 (4) “Comprehensive long-term care plan” means a managed
42 care plan that provides services described in s. 409.973 and
43 also provides the services described in s. 409.98.
44 (5) “Department” means the Department of Children and
45 Family Services.
46 (6) “Eligible plan” means a health insurer authorized under
47 chapter 624, an exclusive provider organization authorized under
48 chapter 627, a health maintenance organization authorized under
49 chapter 641, or a provider service network authorized under s.
50 409.912(4)(d) or an accountable care organization authorized
51 under federal law. For purposes of the managed medical
52 assistance program, the term also includes the Children’s
53 Medical Services Network authorized under chapter 391. For
54 purposes of the long-term care managed care program, the term
55 also includes entities qualified under 42 C.F.R. part 422 as
56 Medicare Advantage Preferred Provider Organizations, Medicare
57 Advantage Provider-sponsored Organizations, and Medicare
58 Advantage Special Needs Plans, and the Program of All-Inclusive
59 Care for the Elderly.
60 (7) “Long-term care plan” means a managed care plan that
61 provides the services described in s. 409.98 for the long-term
62 care managed care program.
63 (8) “Long-term care provider service network” means a
64 provider service network a controlling interest of which is
65 owned by one or more licensed nursing homes, assisted living
66 facilities with 17 or more beds, home health agencies, community
67 care for the elderly lead agencies, or hospices.
68 (9) “Managed care plan” means an eligible plan under
69 contract with the agency to provide services in the Medicaid
70 program.
71 (10) “Medicaid” means the medical assistance program
72 authorized by Title XIX of the Social Security Act, 42 U.S.C.
73 ss. 1396 et seq., and regulations thereunder, as administered in
74 this state by the agency.
75 (11) “Medicaid recipient” or “recipient” means an
76 individual who the department or, for Supplemental Security
77 Income, the Social Security Administration determines is
78 eligible pursuant to federal and state law to receive medical
79 assistance and related services for which the agency may make
80 payments under the Medicaid program. For the purposes of
81 determining third-party liability, the term includes an
82 individual formerly determined to be eligible for Medicaid, an
83 individual who has received medical assistance under the
84 Medicaid program, or an individual on whose behalf Medicaid has
85 become obligated.
86 (12) “Prepaid plan” means a managed care plan that is
87 licensed or certified as a risk-bearing entity, or qualified
88 pursuant to s. 409.912(4)(d), in the state and is paid a
89 prospective per-member, per-month payment by the agency.
90 (13) “Provider service network” means an entity qualified
91 pursuant to s. 409.912(4)(d) of which a controlling interest is
92 owned by a health care provider, or group of affiliated
93 providers, or a public agency or entity that delivers health
94 services. Health care providers include Florida-licensed health
95 care professionals or licensed health care facilities, federally
96 qualified health care centers, and home health care agencies.
97 (15) “Specialty plan” means a managed care plan that serves
98 Medicaid recipients who meet specified criteria based on age,
99 medical condition, or diagnosis.
100 Section 4. Section 409.963, Florida Statutes, is created to
101 read:
102 409.963 Single state agency.—The agency is designated as
103 the single state agency authorized to manage, operate, and make
104 payments for medical assistance and related services under Title
105 XIX of the Social Security Act. Subject to any limitations or
106 directions provided in the General Appropriations Act, these
107 payments may be made only for services included in the program,
108 only on behalf of eligible individuals, and only to qualified
109 providers in accordance with federal requirements for Title XIX
110 of the Social Security Act and state law. This program of
111 medical assistance is designated as the “Medicaid program.” The
112 department is responsible for Medicaid eligibility
113 determinations, including, but not limited to, policy, rules,
114 and the agreement with the Social Security Administration for
115 Medicaid eligibility determinations for Supplemental Security
116 Income recipients, as well as the actual determination of
117 eligibility. As a condition of Medicaid eligibility, subject to
118 federal approval, the agency and the department shall ensure
119 that each Medicaid recipient consents to the release of her or
120 his medical records to the agency and the Medicaid Fraud Control
121 Unit of the Department of Legal Affairs.
122 Section 5. Section 409.964, Florida Statutes is created to
123 read:
124 409.964 Managed care program; state plan; waivers.—The
125 Medicaid program is established as a statewide, integrated
126 managed care program for all covered services, including long
127 term care services. The agency shall apply for and implement
128 state plan amendments or waivers of applicable federal laws and
129 regulations necessary to implement the program. Before seeking a
130 waiver, the agency shall provide public notice and the
131 opportunity for public comment and include public feedback in
132 the waiver application. The agency shall hold one public meeting
133 in each of the regions described in s. 409.966(2) and the time
134 period for public comment for each region shall end no sooner
135 than 30 days after the completion of the public meeting in that
136 region. The agency shall submit any state plan amendments, new
137 waiver requests, or requests for extensions or expansions for
138 existing waivers, needed to implement the managed care program
139 by August 1, 2011.
140 Section 6. Section 409.965, Florida Statutes, is created to
141 read:
142 409.965 Mandatory enrollment.—All Medicaid recipients shall
143 receive covered services through the statewide managed care
144 program, except as provided by this part pursuant to an approved
145 federal waiver. The following Medicaid recipients are exempt
146 from participation in the statewide managed care program:
147 (1) Women who are eligible only for family planning
148 services.
149 (2) Women who are eligible only for breast and cervical
150 cancer services.
151 (3) Persons who are eligible for emergency Medicaid for
152 aliens.
153 (4) Children receiving services in a prescribed pediatric
154 extended care center.
155 Section 7. Section 409.966, Florida Statutes, is created to
156 read:
157 409.966 Eligible plans; selection.—
158 (1) ELIGIBLE PLANS.—Services in the Medicaid managed care
159 program shall be provided by eligible plans. A provider service
160 network must be capable of providing all covered services to a
161 mandatory Medicaid managed care enrollee or may limit the
162 provision of services to a specific target population based on
163 the age, chronic disease state, or medical condition of the
164 enrollee to whom the network will provide services. A specialty
165 provider service network must be capable of coordinating care
166 and delivering or arranging for the delivery of all covered
167 services to the target population. A provider service network
168 may partner with an insurer licensed under chapter 627 or a
169 health maintenance organization licensed under chapter 641 to
170 meet the requirements of a Medicaid contract.
171 (2) ELIGIBLE PLAN SELECTION.—The agency shall select a
172 limited number of eligible plans to participate in the Medicaid
173 program using invitations to negotiate in accordance with s.
174 287.057(3)(a). At least 90 days before issuing an invitation to
175 negotiate, the agency shall compile and publish a databook
176 consisting of a comprehensive set of utilization and spending
177 data for the 3 most recent contract years consistent with the
178 rate-setting periods for all Medicaid recipients by region or
179 county. The source of the data in the report must include both
180 historic fee-for-service claims and validated data from the
181 Medicaid Encounter Data System. The report must be available in
182 electronic form and delineate utilization use by age, gender,
183 eligibility group, geographic area, and aggregate clinical risk
184 score. Separate and simultaneous procurements shall be conducted
185 in each of the following regions:
186 (a) Region 1, which consists of Escambia, Okaloosa, Santa
187 Rosa and Walton Counties.
188 (b) Region 2, which consists of Bay, Calhoun, Franklin,
189 Gadsden, Gulf, Holmes, Jackson, Jefferson, Leon, Liberty,
190 Madison, Taylor, Wakulla, and Washington Counties.
191 (c) Region 3, which consists of Alachua, Bradford, Citrus,
192 Columbia, Dixie, Gilchrist, Hamilton, Hernando, Lafayette, Lake,
193 Levy, Marion, Putnam, Sumter, Suwannee, and Union Counties.
194 (d) Region 4, which consists of Baker, Clay, Duval,
195 Flagler, Nassau, St. Johns, and Volusia Counties.
196 (e) Region 5, which consists of Pasco and Pinellas
197 Counties.
198 (f) Region 6, which consists of Hardee, Highlands,
199 Hillsborough, Manatee and Polk Counties.
200 (g) Region 7, which consists of Brevard, Orange, Osceola
201 and Seminole Counties.
202 (h) Region 8, which consists of Charlotte, Collier, DeSoto,
203 Glades, Hendry, Lee, and Sarasota Counties.
204 (i) Region 9, which consists of Indian River, Martin,
205 Okeechobee, Palm Beach and St. Lucie Counties.
206 (j) Region 10, which consists of Broward County.
207 (k) Region 11, which consists of Miami-Dade and Monroe
208 Counties.
209 (3) QUALITY SELECTION CRITERIA.—
210 (a) The invitation to negotiate must specify the criteria
211 and the relative weight of the criteria that will be used for
212 determining the acceptability of the reply and guiding the
213 selection of the organizations with which the agency negotiates.
214 In addition to criteria established by the agency, the agency
215 shall consider the following factors in the selection of
216 eligible plans:
217 1. Accreditation by the National Committee for Quality
218 Assurance, the Joint Commission, or another nationally
219 recognized accrediting body.
220 2. Experience serving similar populations, including the
221 organization’s record in achieving specific quality standards
222 with similar populations.
223 3. Availability and accessibility of primary care and
224 specialty physicians in the provider network.
225 4. Establishment of community partnerships with providers
226 that create opportunities for reinvestment in community-based
227 services.
228 5. Organization commitment to quality improvement and
229 documentation of achievements in specific quality improvement
230 projects, including active involvement by organization
231 leadership.
232 6. Provision of additional benefits, particularly dental
233 care and disease management, and other initiatives that improve
234 health outcomes.
235 7. Evidence that a eligible plan has written agreements or
236 signed contracts or has made substantial progress in
237 establishing relationships with providers before the plan
238 submitting a response.
239 8. Comments submitted in writing by any enrolled Medicaid
240 provider relating to a specifically identified plan
241 participating in the procurement in the same region as the
242 submitting provider.
243 9. Documentation of policies and procedures for preventing
244 fraud and abuse.
245 10. The business relationship an eligible plan has with any
246 other eligible plan that responds to the invitation to
247 negotiate.
248 (b) An eligible plan must disclose any business
249 relationship it has with any other elgible plan that responds to
250 the invitation to negotiate. The agency may not select plans in
251 the same region for the same managed care program that have a
252 business relationship with each other. Failure to disclose any
253 business relationship shall result in disqualification from
254 participation in any region for the first full contract period
255 after the discovery of the business relationship by the agency.
256 For the purpose of this section, “business relationship” means
257 an ownership or controlling interest, an affiliate or subsidiary
258 relationship, a common parent, or any mutual interest in any
259 limited partnership, limited liability partnership, limited
260 liability company, or other entity or business association,
261 including all wholly or partially owned subsidiaries, majority
262 owned subsidiaries, parent companies, or affiliates of such
263 entities, business associations, or other enterprises, that
264 exists for the purpose of making a profit.
265 (c) After negotiations are conducted, the agency shall
266 select the eligible plans that are determined to be responsive
267 and provide the best value to the state. Preference shall be
268 given to plans that:
269 1. Have signed contracts with primary and specialty
270 physicians in sufficient numbers to meet the specific standards
271 established pursuant to s. 409.967(2)(b).
272 2. Have well-defined programs for recognizing patient
273 centered medical homes and providing for increased compensation
274 for recognized medical homes, as defined by the plan.
275 3. Are organizations that are based in and perform
276 operational functions in this state, in-house or through
277 contractual arrangements, by staff located in this state. Using
278 a tiered approach, the highest number of points shall be awarded
279 to a plan that has all or substantially all of its operational
280 functions performed in the state. The second highest number of
281 points shall be awarded to a plan that has a majority of its
282 operational functions performed in the state. The agency may
283 establish a third tier; however, preference points may not be
284 awarded to plans that perform only community outreach, medical
285 director functions, and state administrative functions in the
286 state. For purposes of this subparagraph, operational functions
287 include claims processing, member services, provider relations,
288 utilization and prior authorization, case management, disease
289 and quality functions, and finance and administration. For
290 purposes of this subparagraph, the term “based in this state”
291 means that the entity’s principal office is in this state and
292 the plan is not a subsidiary, directly or indirectly through one
293 or more subsidiaries of, or a joint venture with, any other
294 entity whose principal office is not located in the state.
295 4. Have contracts or other arrangements for cancer disease
296 management programs that have a proven record of clinical
297 efficiencies and cost savings.
298 5. Have contracts or other arrangements for diabetes
299 disease management programs that have a proven record of
300 clinical efficiencies and cost savings.
301 6. Have a claims payment process that ensures that claims
302 that are not contested or denied will be promptly paid pursuant
303 to s. 641.3155.
304 (d) For the first year of the first contract term, the
305 agency shall negotiate capitation rates or fee for service
306 payments with each plan in order to guarantee aggregate savings
307 of at least 5 percent.
308 1. For prepaid plans, determination of the amount of
309 savings shall be calculated by comparison to the Medicaid rates
310 that the agency paid managed care plans for similar populations
311 in the same areas in the prior year. In regions containing no
312 prepaid plans in the prior year, determination of the amount of
313 savings shall be calculated by comparison to the Medicaid rates
314 established and certified for those regions in the prior year.
315 2. For provider service networks operating on a fee-for
316 service basis, determination of the amount of savings shall be
317 calculated by comparison to the Medicaid rates that the agency
318 paid on a fee-for-service basis for the same services in the
319 prior year.
320 (e) To ensure managed care plan participation in Regions 1
321 and 2, the agency shall award an additional contract to each
322 plan with a contract award in Region 1 or Region 2. Such
323 contract shall be in any other region in which the plan
324 submitted a responsive bid and negotiates a rate acceptable to
325 the agency. If a plan that is awarded an additional contract
326 pursuant to this paragraph is subject to penalties pursuant to
327 s. 409.967(2)(g) for activities in Region 1 or Region 2, the
328 additional contract is automatically terminated 180 days after
329 the imposition of the penalties. The plan must reimburse the
330 agency for the cost of enrollment changes and other transition
331 activities.
332 (f) The agency may not execute contracts with managed care
333 plans at payment rates not supported by the General
334 Appropriations Act.
335 (4) ADMINISTRATIVE CHALLENGE.—Any eligible plan that
336 participates in an invitation to negotiate in more than one
337 region and is selected in at least one region may not begin
338 serving Medicaid recipients in any region for which it was
339 selected until all administrative challenges to procurements
340 required by this section to which the eligible plan is a party
341 have been finalized. If the number of plans selected is less
342 than the maximum amount of plans permitted in the region, the
343 agency may contract with other selected plans in the region not
344 participating in the administrative challenge before resolution
345 of the administrative challenge. For purposes of this
346 subsection, an administrative challenge is finalized if an order
347 granting voluntary dismissal with prejudice has been entered by
348 any court established under Article V of the State Constitution
349 or by the Division of Administrative Hearings, a final order has
350 been entered into by the agency and the deadline for appeal has
351 expired, a final order has been entered by the First District
352 Court of Appeal and the time to seek any available review by the
353 Florida Supreme Court has expired, or a final order has been
354 entered by the Florida Supreme Court and a warrant has been
355 issued.
356 Section 8. Section 409.967, Florida Statutes, is created to
357 read:
358 409.967 Managed care plan accountability.—
359 (1) The agency shall establish a 5-year contract with each
360 managed care plan selected through the procurement process
361 described in s. 409.966. A plan contract may not be renewed;
362 however, the agency may extend the term of a plan contract to
363 cover any delays during the transition to a new plan.
364 (2) The agency shall establish such contract requirements
365 as are necessary for the operation of the statewide managed care
366 program. In addition to any other provisions the agency may deem
367 necessary, the contract must require:
368 (a) Physician compensation.—Managed care plans are expected
369 to coordinate care, manage chronic disease, and prevent the need
370 for more costly services. Effective care management should
371 enable plans to redirect available resources and increase
372 compensation for physicians. Plans achieve this performance
373 standard when physician payment rates equal or exceed Medicare
374 rates for similar services. The agency may impose fines or other
375 sanctions on a plan that fails to meet this performance standard
376 after 2 years of continuous operation.
377 (b) Emergency services.—Managed care plans shall pay for
378 services required by ss. 395.1041 and 401.45 and rendered by a
379 noncontracted provider. The plans must comply with s. 641.3155.
380 Reimbursement for services under this paragraph is the lesser
381 of:
382 1. The provider’s charges;
383 2. The usual and customary provider charges for similar
384 services in the community where the services were provided;
385 3. The charge mutually agreed to by the entity and the
386 provider within 60 days after submittal of the claim; or
387 4. The rate the agency would have paid on the most recent
388 October 1st.
389 (c) Access.—
390 1. The agency shall establish specific standards for the
391 number, type, and regional distribution of providers in managed
392 care plan networks to ensure access to care for both adults and
393 children. Each plan must maintain a region-wide network of
394 providers in sufficient numbers to meet the access standards for
395 specific medical services for all recipients enrolled in the
396 plan. The exclusive use of mail-order pharmacies may not be
397 sufficient to meet network access standards. Consistent with the
398 standards established by the agency, provider networks may
399 include providers located outside the region. A plan may
400 contract with a new hospital facility before the date the
401 hospital becomes operational if the hospital has commenced
402 construction, will be licensed and operational by January 1,
403 2013, and a final order has issued in any civil or
404 administrative challenge. Each plan shall establish and maintain
405 an accurate and complete electronic database of contracted
406 providers, including information about licensure or
407 registration, locations and hours of operation, specialty
408 credentials and other certifications, specific performance
409 indicators, and such other information as the agency deems
410 necessary. The database must be available online to both the
411 agency and the public and have the capability to compare the
412 availability of providers to network adequacy standards and to
413 accept and display feedback from each provider’s patients. Each
414 plan shall submit quarterly reports to the agency identifying
415 the number of enrollees assigned to each primary care provider.
416 2. Each managed care plan must publish any prescribed drug
417 formulary or preferred drug list on the plan’s website in a
418 manner that is accessible to and searchable by enrollees and
419 providers. The plan must update the list within 24 hours after
420 making a change. Each plan must ensure that the prior
421 authorization process for prescribed drugs is readily accessible
422 to health care providers, including posting appropriate contact
423 information on its website and providing timely responses to
424 providers. For Medicaid recipients diagnosed with hemophilia who
425 have been prescribed anti-hemophilic-factor replacement
426 products, the agency shall provide for those products and
427 hemophilia overlay services through the agency’s hemophilia
428 disease management program.
429 3. Managed care plans, and their fiscal agents or
430 intermediaries, must accept prior authorization requests for any
431 service electronically.
432 (d) Encounter data.—The agency shall maintain and operate a
433 Medicaid Encounter Data System to collect, process, store, and
434 report on covered services provided to all Medicaid recipients
435 enrolled in prepaid plans.
436 1. Each prepaid plan must comply with the agency’s
437 reporting requirements for the Medicaid Encounter Data System.
438 Prepaid plans must submit encounter data electronically in a
439 format that complies with the Health Insurance Portability and
440 Accountability Act provisions for electronic claims and in
441 accordance with deadlines established by the agency. Prepaid
442 plans must certify that the data reported is accurate and
443 complete.
444 2. The agency is responsible for validating the data
445 submitted by the plans. The agency shall develop methods and
446 protocols for ongoing analysis of the encounter data that
447 adjusts for differences in characteristics of prepaid plan
448 enrollees to allow comparison of service utilization among plans
449 and against expected levels of use. The analysis shall be used
450 to identify possible cases of systemic underutilization or
451 denials of claims and inappropriate service utilization such as
452 higher-than-expected emergency department encounters. The
453 analysis shall provide periodic feedback to the plans and enable
454 the agency to establish corrective action plans when necessary.
455 One of the focus areas for the analysis shall be the use of
456 prescription drugs.
457 3. The agency shall make encounter data available to those
458 plans accepting enrollees who are assigned to them from other
459 plans leaving a region.
460 (e) Continuous improvement.—The agency shall establish
461 specific performance standards and expected milestones or
462 timelines for improving performance over the term of the
463 contract.
464 1. Each managed care plan shall establish an internal
465 health care quality improvement system, including enrollee
466 satisfaction and disenrollment surveys. The quality improvement
467 system must include incentives and disincentives for network
468 providers.
469 2. Each plan must collect and report the Health Plan
470 Employer Data and Information Set (HEDIS) measures, as specified
471 by the agency. These measures must be published on the plan’s
472 website in a manner that allows recipients to reliably compare
473 the performance of plans. The agency shall use the HEDIS
474 measures as a tool to monitor plan performance.
475 3. Each managed care plan must be accredited by the
476 National Committee for Quality Assurance, the Joint Commission,
477 or another nationally recognized accrediting body, or have
478 initiated the accreditation process, within 1 year after the
479 contract is executed. For any plan not accredited within 18
480 months after executing the contract, the agency shall suspend
481 automatic assignment under s. 409.977 and 409.984.
482 4. By the end of the fourth year of the first contract
483 term, the agency shall issue a request for information to
484 determine whether cost savings could be achieved by contracting
485 for plan oversight and monitoring, including analysis of
486 encounter data, assessment of performance measures, and
487 compliance with other contractual requirements.
488 (f) Program integrity.—Each managed care plan shall
489 establish program integrity functions and activities to reduce
490 the incidence of fraud and abuse, including, at a minimum:
491 1. A provider credentialing system and ongoing provider
492 monitoring, including maintenance of written provider
493 credentialing policies and procedures which comply with federal
494 and agency guidelines;
495 2. An effective prepayment and postpayment review process
496 including, but not limited to, data analysis, system editing,
497 and auditing of network providers;
498 3. Procedures for reporting instances of fraud and abuse
499 pursuant to chapter 641;
500 4. Administrative and management arrangements or
501 procedures, including a mandatory compliance plan, designed to
502 prevent fraud and abuse; and
503 5. Designation of a program integrity compliance officer.
504 (g) Grievance resolution.—Consistent with federal law, each
505 managed care plan shall establish and the agency shall approve
506 an internal process for reviewing and responding to grievances
507 from enrollees. Each plan shall submit quarterly reports on the
508 number, description, and outcome of grievances filed by
509 enrollees.
510 (h) Penalties.—
511 1. Withdrawal and enrollment reduction.—Managed care plans
512 that reduce enrollment levels or leave a region before the end
513 of the contract term must reimburse the agency for the cost of
514 enrollment changes and other transition activities. If more than
515 one plan leaves a region at the same time, costs must be shared
516 by the departing plans proportionate to their enrollments. In
517 addition to the payment of costs, departing provider services
518 networks must pay a per enrollee penalty of up to 3 month’s
519 payment and continue to provide services to the enrollee for 90
520 days or until the enrollee is enrolled in another plan,
521 whichever occurs first. In addition to payment of costs, all
522 other plans must pay a penalty of 25 percent of the minimum
523 surplus requirement pursuant to s. 641.225(1). Plans shall
524 provide at least 180 days notice to the agency before
525 withdrawing from a region. If a managed care plan leaves a
526 region before the end of the contract term, the agency shall
527 terminate all contracts with that plan in other regions,
528 pursuant to the termination procedures in subparagraph 3.
529 2. Encounter data.—If a plan fails to comply with the
530 encounter data reporting requirements of this section for 30
531 days, the agency must assess a fine of $5,000 per day for each
532 day of noncompliance beginning on the 31st day. On the 31st day,
533 the agency must notify the plan that the agency will initiate
534 contract termination procedures on the 90th day unless the plan
535 comes into compliance before that date.
536 3. Termination.—If the agency terminates more than one
537 regional contract with the same managed care plan due to
538 noncompliance with the requirements of this section, the agency
539 shall terminate all the regional contracts held by that plan.
540 When terminating multiple contracts, the agency must develop a
541 plan to transition enrollees to other plans, and phase-in the
542 terminations over a time period sufficient to ensure a smooth
543 transition.
544 (i) Prompt payment.—Managed care plans shall comply with
545 ss. 641.315, 641.3155, and 641.513.
546 (j) Electronic claims.—Managed care plans, and their fiscal
547 agents or intermediaries, shall accept electronic claims in
548 compliance with federal standards.
549 (k) Fair payment.—Provider service networks must ensure
550 that no entity licensed under chapter 395 with a controlling
551 interest in the network charges a Medicaid managed care plan
552 more than the amount paid to that provider by the provider
553 service network for the same service.
554 (l) Itemized payment.—Any claims payment to a provider by a
555 managed care plan, or by a fiscal agent or intermediary of the
556 plan, must be accompanied by an itemized accounting of the
557 individual claims included in the payment including, but not
558 limited to, the enrollee’s name, the date of service, the
559 procedure code, the amount of reimbursement, and the
560 identification of the plan on whose behalf the payment is made.
561 (m) Provider dispute resolution.—Disputes between a plan
562 and a provider may be resolved as described in s. 408.7057.
563 (3) ACHIEVED SAVINGS REBATE.—
564 (a) The agency is responsible for verifying the achieved
565 savings rebate for all Medicaid prepaid plans. To assist the
566 agency, a prepaid plan shall:
567 1. Submit an annual financial audit conducted by an
568 independent certified public accountant in accordance with
569 generally accepted auditing standards to the agency on or before
570 June 1 for the preceding year; and
571 2. Submit an annual statement prepared in accordance with
572 statutory accounting principles on or before March 1 pursuant to
573 s. 624.424 if the plan is regulated by the Office of Insurance
574 Regulation.
575 (b) The agency shall contract with independent certified
576 public accountants to conduct compliance audits for the purpose
577 of auditing financial information, including but not limited to:
578 annual premium revenue, medical and administrative costs, and
579 income or losses reported by each prepaid plan, in order to
580 determine and validate the achieved savings rebate.
581 (c) Any audit required under this subsection must be
582 conducted by an independent certified public accountant who
583 meets criteria specified by rule. The rules must also provide
584 that:
585 1. The entity selected by the agency to conduct the audit
586 may not have a conflict of interest that might affect its
587 ability to perform its responsibilities with respect to an
588 examination.
589 2. The rates charged to the prepaid plan being audited are
590 consistent with rates charged by other certified public
591 accountants and are comparable with the rates charged for
592 comparable examinations.
593 3. Each prepaid plan audited shall pay to the agency the
594 expenses of the audit at the rates established by the agency by
595 rule. Such expenses include actual travel expenses, reasonable
596 living expense allowances, compensation of the certified public
597 accountant, and necessary attendant administrative costs of the
598 agency directly related to the examination. Travel expense and
599 living expense allowances are limited to those expenses incurred
600 on account of the audit and must be paid by the examined prepaid
601 plan together with compensation upon presentation by the agency
602 to the prepaid plan of a detailed account of the charges and
603 expenses after a detailed statement has been filed by the
604 auditor and approved by the agency.
605 4. All moneys collected from prepaid plans for such audits
606 shall be deposited into the Grants and Donations Trust Fund and
607 the agency may make deposits into such fund from moneys
608 appropriated for the operation of the agency.
609 (d) At a location in this state, the prepaid plan shall
610 make available to the agency and the agency’s contracted
611 certified public accountant all books, accounts, documents,
612 files, information, that relate to the prepaid plan’s Medicaid
613 transactions. Records not in the prepaid plan’s immediate
614 possession must be made available to the agency or the certified
615 public accountant in this state within 3 days after a request is
616 made by the agency or certified public accountant engaged by the
617 agency. A prepaid plan has an obligation to cooperate in good
618 faith with the agency and the certified public accountant.
619 Failure to comply to such record requests shall be deemed a
620 breach of contract.
621 (e) Once the certified public accountant completes the
622 audit, the certified public accountant shall submit an audit
623 report to the agency attesting to the achieved savings of the
624 plan. The results of the audit report are dispositive.
625 (f) Achieved savings rebates validated by the certified
626 public accountant are due within 30 days after the report is
627 submitted. Except as provided in paragraph (h), the achieved
628 savings rebate is established by determining pretax income as a
629 percentage of revenues and applying the following income sharing
630 ratios:
631 1. One hundred percent of income up to and including 5
632 percent of revenue shall be retained by the plan.
633 2. Fifty percent of income above 5 percent and up to 10
634 percent shall be retained by the plan, and the other 50 percent
635 refunded to the state.
636 3. One hundred percent of income above 10 percent of
637 revenue shall be refunded to the state.
638 (g) A plan that exceeds agency-defined quality measures in
639 the reporting period may retain an additional 1 percent of
640 revenue. For the purpose of this paragraph, the quality measures
641 must include plan performance for preventing or managing
642 complex, chronic conditions that are associated with an elevated
643 likelihood of requiring high-cost medical treatments.
644 (h) The following may not be included as allowable expenses
645 in calculating income for determining the achieved savings
646 rebate:
647 1. Payment of achieved savings rebates.
648 2. Any financial incentive payments made to the plan
649 outside of the capitation rate.
650 3. Any financial disincentive payments levied by the state
651 or federal governments.
652 4. Expenses associated with any lobbying or political
653 activities.
654 5. The cash value or equivalent cash value of bonuses of
655 any type paid or awarded to the plan’s executive staff, other
656 than base salary.
657 6. Reserves and reserve accounts.
658 7. Administrative costs, including, but not limited to,
659 reinsurance expenses, interest payments, depreciation expenses,
660 bad debt expenses, and outstanding claims expenses in excess of
661 actuarially sound maximum amounts set by the agency.
662
663 The agency shall consider these and other factors in developing
664 contracts that establish shared savings arrangements.
665 (i) Prepaid plans that incur a loss in the first contract
666 year may apply the full amount of the loss as an offset to
667 income in the second contract year.
668 (j) If, after an audit, the agency determines that a
669 prepaid plan owes an additional rebate, the plan has 30 days
670 after notification to make the payment. Upon failure to timely
671 pay the rebate, the agency shall withhold future payments to the
672 plan until the entire amount is recouped. If the agency
673 determines that a prepaid plan has made an overpayment, the
674 agency shall return the overpayment within 30 days.
675 Section 9. Section 409.968, Florida Statutes, is created to
676 read:
677 409.968 Managed care plan payments.—
678 (1) Prepaid plans shall receive per-member, per-month
679 payments negotiated pursuant to the procurements described in s.
680 409.966. Payments shall be risk-adjusted rates based on
681 historical utilization and spending data, projected forward, and
682 adjusted to reflect the eligibility category, geographic area,
683 and clinical risk profile of the recipients. In negotiating
684 rates with the plans, the agency shall consider any adjustments
685 necessary to encourage plans to use the most cost effective
686 modalities for treatment of chronic disease such as peritoneal
687 dialysis.
688 (2) Provider service networks may be prepaid plans and
689 receive per-member, per-month payments negotiated pursuant to
690 the procurement process described in s. 409.966. Provider
691 service networks that choose not to be prepaid plans shall
692 receive fee-for-service rates with a shared savings settlement.
693 The fee-for-service option shall be available to a provider
694 service network only for the first 2 years of its operation. The
695 agency shall annually conduct cost reconciliations to determine
696 the amount of cost savings achieved by fee-for-service provider
697 service networks for the dates of service within the period
698 being reconciled. Only payments for covered services for dates
699 of service within the reconciliation period and paid within 6
700 months after the last date of service in the reconciliation
701 period must be included. The agency shall perform the necessary
702 adjustments for the inclusion of claims incurred but not
703 reported within the reconciliation period for claims that could
704 be received and paid by the agency after the 6-month claims
705 processing time lag. The agency shall provide the results of the
706 reconciliations to the fee-for-service provider service networks
707 within 45 days after the end of the reconciliation period. The
708 fee-for-service provider service networks shall review and
709 provide written comments or a letter of concurrence to the
710 agency within 45 days after receipt of the reconciliation
711 results. This reconciliation is considered final.
712 (3) The agency may not approve any plan request for a rate
713 increase unless sufficient funds to support the increase have
714 been authorized in the General Appropriations Act.
715 Section 10. Section 409.969, Florida Statutes, is created
716 to read:
717 409.969 Enrollment; disenrollment.—
718 (1) ENROLLMENT.—All Medicaid recipients shall be enrolled
719 in a managed care plan unless specifically exempted under this
720 part. Each recipient shall have a choice of plans and may select
721 any available plan unless that plan is restricted by contract to
722 a specific population that does not include the recipient.
723 Medicaid recipients shall have 30 days in which to make a choice
724 of plans.
725 (2) DISENROLLMENT; GRIEVANCES.—After a recipient has
726 enrolled in a managed care plan, the recipient shall have 90
727 days to voluntarily disenroll and select another plan. After 90
728 days, no further changes may be made except for good cause. For
729 purposes of this section, the term “good cause” includes, but is
730 not limited to, poor quality of care, lack of access to
731 necessary specialty services, an unreasonable delay or denial of
732 service, or fraudulent enrollment. The agency must make a
733 determination as to whether good cause exists. The agency may
734 require a recipient to use the plan’s grievance process before
735 the agency’s determination of good cause, except in cases in
736 which immediate risk of permanent damage to the recipient’s
737 health is alleged.
738 (a) The managed care plan internal grievance process, when
739 used, must be completed in time to permit the recipient to
740 disenroll by the first day of the second month after the month
741 the disenrollment request was made. If the result of the
742 grievance process is approval of an enrollee’s request to
743 disenroll, the agency is not required to make a determination in
744 the case.
745 (b) The agency must make a determination and take final
746 action on a recipient’s request so that disenrollment occurs no
747 later than the first day of the second month after the month the
748 request was made. If the agency fails to act within the
749 specified timeframe, the recipient’s request to disenroll is
750 deemed to be approved as of the date agency action was required.
751 Recipients who disagree with the agency’s finding that good
752 cause does not exist for disenrollment shall be advised of their
753 right to pursue a Medicaid fair hearing to dispute the agency’s
754 finding.
755 (c) Medicaid recipients enrolled in a managed care plan
756 after the 90-day period shall remain in the plan for the
757 remainder of the 12-month period. After 12 months, the recipient
758 may select another plan. However, nothing shall prevent a
759 Medicaid recipient from changing providers within the plan
760 during that period.
761 (d) On the first day of the month after receiving notice
762 from a recipient that the recipient has moved to another region,
763 the agency shall automatically disenroll the recipient from the
764 managed care plan the recipient is currently enrolled in and
765 treat the recipient as if the recipient is a new Medicaid
766 enrollee. At that time, the recipient may choose another plan
767 pursuant to the enrollment process established in this section.
768 (e) The agency must monitor plan disenrollment throughout
769 the contract term to identify any discriminatory practices.
770 Section 11. Section 409.97, Florida Statutes, is created to
771 read:
772 409.97 State and local Medicaid partnerships.—
773 (1) INTERGOVERNMENTAL TRANSFERS.—In addition to the
774 contributions required pursuant to s. 409.915, beginning in the
775 2014-2015 fiscal year, the agency may accept voluntary transfers
776 of local taxes and other qualified revenue from counties,
777 municipalities, and special taxing districts. Such transfers
778 must be contributed to advance the general goals of the Florida
779 Medicaid program without restriction and must be executed
780 pursuant to a contract between the agency and the local funding
781 source. Contracts executed before October 31 shall result in
782 contributions to Medicaid for that same state fiscal year.
783 Contracts executed between November 1 and June 30 shall result
784 in contributions for the following state fiscal year. Based on
785 the date of the signed contracts, the agency shall allocate to
786 the low-income pool the first contributions received up to the
787 limit established by subsection (2). No more than 40 percent of
788 the low-income pool funding shall come from any single funding
789 source. Contributions in excess of the low-income pool shall be
790 allocated to the disproportionate share programs defined in ss.
791 409.911(3) and 409.9113 and to hospital rates pursuant to
792 subsection (4). The local funding source shall designate in the
793 contract which Medicaid providers ensure access to care for low
794 income and uninsured people within the applicable jurisdiction
795 and are eligible for low-income pool funding. Eligible providers
796 may include hospitals, primary care providers, and primary care
797 access systems.
798 (2) LOW-INCOME POOL.—The agency shall establish and
799 maintain a low-income pool in a manner authorized by federal
800 waiver. The low-income pool is created to compensate a network
801 of providers designated pursuant to subsection (1). Funding of
802 the low-income pool shall be limited to the maximum amount
803 permitted by federal waiver minus a percentage specified in the
804 General Appropriations Act. The low-income pool must be used to
805 support enhanced access to services by offsetting shortfalls in
806 Medicaid reimbursement, paying for otherwise uncompensated care,
807 and financing coverage for the uninsured. The low-income pool
808 shall be distributed in periodic payments to the Access to Care
809 Partnership throughout the fiscal year. Distribution of low
810 income pool funds by the Access to Care Partnership to
811 participating providers may be made through capitated payments,
812 fees for services, or contracts for specific deliverables. The
813 agency shall include the distribution amount for each provider
814 in the contract with the Access to Care Partnership pursuant to
815 subsection (3). Regardless of the method of distribution,
816 providers participating in the Access to Care Partnership shall
817 receive payments such that the aggregate benefit in the
818 jurisdiction of each local funding source, as defined in
819 subsection (1), equals the amount of the contribution plus a
820 factor specified in the General Appropriations Act.
821 (3) ACCESS TO CARE PARTNERSHIP.—The agency shall contract
822 with an administrative services organization that has operating
823 agreements with all health care facilities, programs, and
824 providers supported with local taxes or certified public
825 expenditures and designated pursuant to subsection (1). The
826 contract shall provide for enhanced access to care for Medicaid,
827 low-income, and uninsured Floridians. The partnership shall be
828 responsible for an ongoing program of activities that provides
829 needed, but uncovered or undercompensated, health services to
830 Medicaid enrollees and persons receiving charity care, as
831 defined in s. 409.911. Accountability for services rendered
832 under this contract must be based on the number of services
833 provided to unduplicated qualified beneficiaries, the total
834 units of service provided to these persons, and the
835 effectiveness of services provided as measured by specific
836 standards of care. The agency shall seek such plan amendments or
837 waivers as may be necessary to authorize the implementation of
838 the low-income pool as the Access to Care Partnership pursuant
839 to this section.
840 (4) HOSPITAL RATE DISTRIBUTION.—
841 (a) The agency is authorized to implement a tiered hospital
842 rate system to enhance Medicaid payments to all hospitals when
843 resources for the tiered rates are available from general
844 revenue and such contributions pursuant to subsection (1) as are
845 authorized under the General Appropriations Act.
846 1. Tier 1 hospitals are statutory rural hospitals as
847 defined in s. 395.602, statutory teaching hospitals as defined
848 in s. 408.07(45), and specialty children’s hospitals as defined
849 in s. 395.002(28).
850 2. Tier 2 hospitals are community hospitals not included in
851 Tier 1 that provided more than 9 percent of the hospital’s total
852 inpatient days to Medicaid patients and charity patients, as
853 defined in s. 409.911, and are located in the jurisdiction of a
854 local funding source pursuant to subsection (1).
855 3. Tier 3 hospitals include all community hospitals.
856 (b) When rates are increased pursuant to this section, the
857 Total Tier Allocation (TTA) shall be distributed as follows:
858 1. Tier 1 (T1A) = 0.35 x TTA.
859 2. Tier 2 (T2A) = 0.35 x TTA.
860 3. Tier 3 (T3A) = 0.30 x TTA.
861 (c) The tier allocation shall be distributed as a
862 percentage increase to the hospital specific base rate (HSBR)
863 established pursuant to s. 409.905(5)(c). The increase in each
864 tier shall be calculated according to the proportion of tier
865 specific allocation to the total estimated inpatient spending
866 (TEIS) for all hospitals in each tier:
867 1. Tier 1 percent increase (T1PI) = T1A/Tier 1 total
868 estimated inpatient spending (T1TEIS).
869 2. Tier 2 percent increase (T2PI) = T2A /Tier 2 total
870 estimated inpatient spending (T2TEIS).
871 3. Tier 3 percent increase (T3PI) = T3A/ Tier 3 total
872 estimated inpatient spending (T3TEIS).
873 (d) The hospital-specific tiered rate (HSTR) shall be
874 calculated as follows:
875 1. For hospitals in Tier 3: HSTR = (1 + T3PI) x HSBR.
876 2. For hospitals in Tier 2: HSTR = (1 + T2PI) x HSBR.
877 3. For hospitals in Tier 1: HSTR = (1 + T1PI) x HSBR.
878 Section 12. Section 409.971, Florida Statutes, is created
879 to read:
880 409.971 Managed medical assistance program.—The agency
881 shall make payments for primary and acute medical assistance and
882 related services using a managed care model. By January 1, 2013,
883 the agency shall begin implementation of the statewide managed
884 medical assistance program, with full implementation in all
885 regions by October 1, 2014.
886 Section 13. Section 409.972, Florida Statutes, is created
887 to read:
888 409.972 Mandatory and voluntary enrollment.—
889 (1) Persons eligible for the program known as “medically
890 needy” pursuant to s. 409.904(2)(a) shall enroll in managed care
891 plans. Medically needy recipients shall meet the share of the
892 cost by paying the plan premium, up to the share of the cost
893 amount, contingent upon federal approval.
894 (2) The following Medicaid-eligible persons are exempt from
895 mandatory managed care enrollment required by s. 409.965, and
896 may voluntarily choose to participate in the managed medical
897 assistance program:
898 (a) Medicaid recipients who have other creditable health
899 care coverage, excluding Medicare.
900 (b) Medicaid recipients residing in residential commitment
901 facilities operated through the Department of Juvenile Justice
902 or mental health treatment facilities as defined by s.
903 394.455(32).
904 (c) Persons eligible for refugee assistance.
905 (d) Medicaid recipients who are residents of a
906 developmental disability center, including Sunland Center in
907 Marianna and Tacachale in Gainesville.
908 (e) Medicaid recipients enrolled in the home and community
909 based services waiver pursuant to chapter 393, and Medicaid
910 recipients waiting for waiver services.
911 (3) Persons eligible for Medicaid but exempt from mandatory
912 participation who do not choose to enroll in managed care shall
913 be served in the Medicaid fee-for-service program as provided in
914 part III of this chapter.
915 (4) The agency shall seek federal approval to require
916 Medicaid recipients enrolled in managed care plans, as a
917 condition of Medicaid eligibility, to pay the Medicaid program a
918 share of the premium of $10 per month.
919 Section 14. Section 409.973, Florida Statutes, is created
920 to read:
921 409.973 Benefits.—
922 (1) MINIMUM BENEFITS.—Managed care plans shall cover, at a
923 minimum, the following services:
924 (a) Advanced registered nurse practitioner services.
925 (b) Ambulatory surgical treatment center services.
926 (c) Birthing center services.
927 (d) Chiropractic services.
928 (e) Dental services.
929 (f) Early periodic screening diagnosis and treatment
930 services for recipients under age 21.
931 (g) Emergency services.
932 (h) Family planning services and supplies. Pursuant to 42
933 C.F.R. s. 438.102, plans may elect to not provide these services
934 due to an objection on moral or religious grounds, and must
935 notify the agency of that election when submitting a reply to an
936 invitation to negotiate.
937 (i) Healthy start services, except as provided in s.
938 409.975(4).
939 (j) Hearing services.
940 (k) Home health agency services.
941 (l) Hospice services.
942 (m) Hospital inpatient services.
943 (n) Hospital outpatient services.
944 (o) Laboratory and imaging services.
945 (p) Medical supplies, equipment, prostheses, and orthoses.
946 (q) Mental health services.
947 (r) Nursing care.
948 (s) Optical services and supplies.
949 (t) Optometrist services.
950 (u) Physical, occupational, respiratory, and speech therapy
951 services.
952 (v) Physician services, including physician assistant
953 services.
954 (w) Podiatric services.
955 (x) Prescription drugs.
956 (y) Renal dialysis services.
957 (z) Respiratory equipment and supplies.
958 (aa) Rural health clinic services.
959 (bb) Substance abuse treatment services.
960 (cc) Transportation to access covered services.
961 (2) CUSTOMIZED BENEFITS.—Managed care plans may customize
962 benefit packages for nonpregnant adults, vary cost-sharing
963 provisions, and provide coverage for additional services. The
964 agency shall evaluate the proposed benefit packages to ensure
965 services are sufficient to meet the needs of the plan’s
966 enrollees and to verify actuarial equivalence.
967 (3) HEALTHY BEHAVIORS.—Each plan operating in the managed
968 medical assistance program shall establish a program to
969 encourage and reward healthy behaviors. At a minimum, each plan
970 must establish a medically approved smoking cessation program, a
971 medically directed weight loss program, and a medically approved
972 alcohol or substance abuse recovery program. Each plan must
973 identify enrollees who smoke, are morbidly obese, or are
974 diagnosed with alcohol or substance abuse in order to establish
975 written agreements to secure the enrollees’ commitment to
976 participation in these programs.
977 (4) PRIMARY CARE INITIATIVE.—Each plan operating in the
978 managed medical assistance program shall establish a program to
979 encourage enrollees to establish a relationship with their
980 primary care provider. Each plan shall:
981 (a) Provide information to each enrollee on the importance
982 of and procedure for selecting a primary care physician, and
983 thereafter automatically assign to a primary care provider any
984 enrollee who fails to choose a primary care provider.
985 (b) If the enrollee was not a Medicaid recipient before
986 enrollment in the plan, assist the enrollee in scheduling an
987 appointment with the primary care provider. If possible the
988 appointment should be made within 30 days after enrollment in
989 the plan. For enrollees who become eligible for Medicaid between
990 January 1, 2014, and December 31, 2015, the appointment should
991 be be scheduled within 6 months after enrollment in the plan.
992 (c) Report to the agency the number of enrollees assigned
993 to each primary care provider within the plan’s network.
994 (d) Report to the agency the number of enrollees who have
995 not had an appointment with their primary care provider within
996 their first year of enrollment.
997 (e) Report to the agency the number of emergency room
998 visits by enrollees who have not had a least one appointment
999 with their primary care provider.
1000 Section 15. Section 409.974, Florida Statutes, is created
1001 to read:
1002 409.974 Eligible plans.—
1003 (1) ELIGIBLE PLAN SELECTION.—The agency shall select
1004 eligible plans through the procurement process described in s.
1005 409.966. The agency shall notice invitations to negotiate no
1006 later than January 1, 2013.
1007 (a) The agency shall procure two plans for Region 1. At
1008 least one plan shall be a provider service network if any
1009 provider service networks submit a responsive bid.
1010 (b) The agency shall procure two plans for Region 2. At
1011 least one plan shall be a provider service network if any
1012 provider service networks submit a responsive bid.
1013 (c) The agency shall procure at least three plans and up to
1014 five plans for Region 3. At least one plan must be a provider
1015 service network if any provider service networks submit a
1016 responsive bids.
1017 (d) The agency shall procure at least three plans and up to
1018 five plans for Region 4. At least one plan must be a provider
1019 service network if any provider service networks submit a
1020 responsive bid.
1021 (e) The agency shall procure at least two plans and up to 4
1022 plans for Region 5. At least one plan must be a provider service
1023 network if any provider service networks submit a responsive
1024 bid.
1025 (f) The agency shall procure at least four plans and up to
1026 seven plans for Region 6. At least one plan must be a provider
1027 service network if any provider service networks submit a
1028 responsive bid.
1029 (g) The agency shall procure at least three plans and up to
1030 six plans for Region 7. At least one plan must be a provider
1031 service network if any provider service networks submit a
1032 responsive bid.
1033 (h) The agency shall procure at least two plans and up to
1034 four plans for Region 8. At least one plan must be a provider
1035 service network if any provider service networks submit a
1036 responsive bid.
1037 (i) The agency shall procure at least two plans and up to
1038 four plans for Region 9. At least one plan must be a provider
1039 service network if any provider service networks submit a
1040 responsive bid.
1041 (j) The agency shall procure at least two plans and up to
1042 four plans for Region 10. At least one plan must be a provider
1043 service network if any provider service networks submit a
1044 responsive bid.
1045 (k) The agency shall procure at least five plans and up to
1046 ten plans for Region 11. At least one plan must be a provider
1047 service network if any provider service networks submit a
1048 responsive bid.
1049
1050 If no provider service network submits a responsive bid, the
1051 agency shall procure no more than one less than the maximum
1052 number of eligible plans permitted in that region. Within 12
1053 months after the initial invitation to negotiate, the agency
1054 shall attempt to procure a provider service network. The agency
1055 shall notice another invitation to negotiate only with provider
1056 service networks in those regions where no provider service
1057 network has been selected.
1058 (2) QUALITY SELECTION CRITERIA.—In addition to the criteria
1059 established in s. 409.966, the agency shall consider evidence
1060 that an eligible plan has written agreements or signed contracts
1061 or has made substantial progress in establishing relationships
1062 with providers before the plan submitting a response. The agency
1063 shall evaluate and give special weight to evidence of signed
1064 contracts with essential providers as defined by the agency
1065 pursuant to s. 409.975(2). The agency shall exercise a
1066 preference for plans with a provider network in which over 10
1067 percent of the providers use electronic health records, as
1068 defined in s. 408.051. When all other factors are equal, the
1069 agency shall consider whether the organization has a contract to
1070 provide managed long-term care services in the same region and
1071 shall exercise a preference for such plans.
1072 (3) SPECIALTY PLANS.—Participation by specialty plans shall
1073 be subject to the procurement requirements and regional plan
1074 number limits of this section. However, a specialty plan whose
1075 target population includes no more than 10 percent of the
1076 enrollees of that region is not subject to the regional plan
1077 number limits of this section.
1078 (4) CHILDREN’S MEDICAL SERVICES NETWORK.—Participation by
1079 the Children’s Medical Services Network shall be pursuant to a
1080 single, statewide contract with the agency that is not subject
1081 to the procurement requirements or regional plan number limits
1082 of this section. The Children’s Medical Services Network must
1083 meet all other plan requirements for the managed medical
1084 assistance program.
1085 Section 16. Section 409.975, Florida Statutes, is created
1086 to read:
1087 409.975 Managed care plan accountability.—In addition to
1088 the requirements of s. 409.967, plans and providers
1089 participating in the managed medical assistance program shall
1090 comply with the requirements of this section.
1091 (1) PROVIDER NETWORKS.—Managed care plans must develop and
1092 maintain provider networks that meet the medical needs of their
1093 enrollees in accordance with standards established pursuant to
1094 409.967(2)(b). Except as provided in this section, managed care
1095 plans may limit the providers in their networks based on
1096 credentials, quality indicators, and price.
1097 (a) Plans must include all providers in the region that are
1098 classified by the agency as essential Medicaid providers, unless
1099 the agency approves, in writing, an alternative arrangement for
1100 securing the types of services offered by the essential
1101 providers. Providers are essential for serving Medicaid
1102 enrollees if they offer services that are not available from any
1103 other provider within a reasonable access standard, or if they
1104 provided a substantial share of the total units of a particular
1105 service used by Medicaid patients within the region during the
1106 last 3 years and the combined capacity of other service
1107 providers in the region is insufficient to meet the total needs
1108 of the Medicaid patients. The agency may not classify physicians
1109 and other practitioners as essential providers. The agency, at a
1110 minimum, shall determine which providers in the following
1111 categories are essential Medicaid providers:
1112 1. Federally qualified health centers.
1113 2. Statutory teaching hospitals as defined in s.
1114 408.07(45).
1115 3. Hospitals that are trauma centers as defined in s.
1116 395.4001(14).
1117 4. Hospitals located at least 25 miles from any other
1118 hospital with similar services.
1119
1120 Managed care plans that have not contracted with all essential
1121 providers in the region as of the first date of recipient
1122 enrollment, or with whom an essential provider has terminated
1123 its contract, must negotiate in good faith with such essential
1124 providers for 1 year or until an agreement is reached, whichever
1125 is first. Payments for services rendered by a nonparticipating
1126 essential provider shall be made at the applicable Medicaid rate
1127 as of the first day of the contract between the agency and the
1128 plan. A rate schedule for all essential providers shall be
1129 attached to the contract between the agency and the plan. After
1130 1 year, managed care plans that are unable to contract with
1131 essential providers shall notify the agency and propose an
1132 alternative arrangement for securing the essential services for
1133 Medicaid enrollees. The arrangement must rely on contracts with
1134 other participating providers, regardless of whether those
1135 providers are located within the same region as the
1136 nonparticipating essential service provider. If the alternative
1137 arrangement is approved by the agency, payments to
1138 nonparticipating essential providers after the date of the
1139 agency’s approval shall equal 90 percent of the applicable
1140 Medicaid rate. If the alternative arrangement is not approved by
1141 the agency, payment to nonparticipating essential providers
1142 shall equal 110 percent of the applicable Medicaid rate.
1143 (b) Certain providers are statewide resources and essential
1144 providers for all managed care plans in all regions. All managed
1145 care plans must include these essential providers in their
1146 networks. Statewide essential providers include:
1147 1. Faculty plans of Florida medical schools.
1148 2. Regional perinatal intensive care centers as defined in
1149 s. 383.16(2).
1150 3. Hospitals licensed as specialty children’s hospitals as
1151 defined in s. 395.002(28).
1152 4. Accredited and integrated systems serving medically
1153 complex children that are comprised of separately licensed, but
1154 commonly owned, health care providers delivering at least the
1155 following services: medical group home, in-home and outpatient
1156 nursing care and therapies, pharmacy services, durable medical
1157 equipment, and Prescribed Pediatric Extended Care.
1158
1159 Managed care plans that have not contracted with all statewide
1160 essential providers in all regions as of the first date of
1161 recipient enrollment must continue to negotiate in good faith.
1162 Payments to physicians on the faculty of nonparticipating
1163 Florida medical schools shall be made at the applicable Medicaid
1164 rate. Payments for services rendered by a regional perinatal
1165 intensive care centers shall be made at the applicable Medicaid
1166 rate as of the first day of the contract between the agency and
1167 the plan. Payments to nonparticipating specialty children’s
1168 hospitals shall equal the highest rate established by contract
1169 between that provider and any other Medicaid managed care plan.
1170 (c) After 12 months of active participation in a plan’s
1171 network, the plan may exclude any essential provider from the
1172 network for failure to meet quality or performance criteria. If
1173 the plan excludes an essential provider from the plan, the plan
1174 must provide written notice to all recipients who have chosen
1175 that provider for care. The notice shall be provided at least 30
1176 days before the effective date of the exclusion.
1177 (d) Each managed care plan must offer a network contract to
1178 each home medical equipment and supplies provider in the region
1179 which meets quality and fraud prevention and detection standards
1180 established by the plan and which agrees to accept the lowest
1181 price previously negotiated between the plan and another such
1182 provider.
1183 (2) FLORIDA MEDICAL SCHOOLS QUALITY NETWORK.—The agency
1184 shall contract with a single organization representing medical
1185 schools and graduate medical education programs in the state for
1186 the purpose of establishing an active and ongoing program to
1187 improve clinical outcomes in all managed care plans. Contracted
1188 activities must support greater clinical integration for
1189 Medicaid enrollees through interdependent and cooperative
1190 efforts of all providers participating in managed care plans.
1191 The agency shall support these activities with certified public
1192 expenditures and any earned federal matching funds and shall
1193 seek any plan amendments or waivers necessary to comply with
1194 this subsection. To be eligible to participate in the quality
1195 network, a medical school must contract with each managed care
1196 plan in its region.
1197 (3) PERFORMANCE MEASUREMENT.—Each managed care plan shall
1198 monitor the quality and performance of each participating
1199 provider. At the beginning of the contract period, each plan
1200 shall notify all its network providers of the metrics used by
1201 the plan for evaluating the provider’s performance and
1202 determining continued participation in the network.
1203 (4) MOMCARE NETWORK.—
1204 (a) The agency shall contract with an administrative
1205 services organization representing all Healthy Start Coalitions
1206 providing risk appropriate care coordination and other services
1207 in accordance with a federal waiver and pursuant to s. 409.906.
1208 The contract shall require the network of coalitions to provide
1209 counseling, education, risk-reduction and case management
1210 services, and quality assurance for all enrollees of the waiver.
1211 The agency shall evaluate the impact of the MomCare network by
1212 monitoring each plan’s performance on specific measures to
1213 determine the adequacy, timeliness, and quality of services for
1214 pregnant women and infants. The agency shall support this
1215 contract with certified public expenditures of general revenue
1216 appropriated for Healthy Start services and any earned federal
1217 matching funds.
1218 (b) Each managed care plan shall establish specific
1219 programs and procedures to improve pregnancy outcomes and infant
1220 health, including, but not limited to, coordination with the
1221 Healthy Start program, immunization programs, and referral to
1222 the Special Supplemental Nutrition Program for Women, Infants,
1223 and Children, and the Children’s Medical Services program for
1224 children with special health care needs. Each plan’s programs
1225 and procedures shall include agreements with each local Healthy
1226 Start Coalition in the region to provide risk-appropriate care
1227 coordination for pregnant women and infants, consistent with
1228 agency policies and the MomCare network. Each managed care plan
1229 must notify the agency of the impending birth of a child to an
1230 enrollee, or notify the agency as soon as practicable after the
1231 child’s birth.
1232 (5) SCREENING RATE.—After the end of the second contract
1233 year, each managed care plan shall achieve an annual Early and
1234 Periodic Screening, Diagnosis, and Treatment Service screening
1235 rate of at least 80 percent of those recipients continuously
1236 enrolled for at least 8 months.
1237 (6) PROVIDER PAYMENT.—Managed care plans and hospitals
1238 shall negotiate mutually acceptable rates, methods, and terms of
1239 payment. For rates, methods, and terms of payment negotiated
1240 after the contract between the agency and the plan is executed,
1241 plans shall pay hospitals, at a minimum, the rate the agency
1242 would have paid on the first day of the contract between the
1243 provider and the plan. Such payments to hospitals may not exceed
1244 120 percent of the rate the agency would have paid on the first
1245 day of the contract between the provider and the plan, unless
1246 specifically approved by the agency. Payment rates may be
1247 updated periodically.
1248 (7) MEDICALLY NEEDY ENROLLEES.—Each managed care plan must
1249 accept any medically needy recipient who selects or is assigned
1250 to the plan and provide that recipient with continuous
1251 enrollment for 12 months. After the first month of qualifying as
1252 a medically needy recipient and enrolling in a plan, and
1253 contingent upon federal approval, the enrollee shall pay the
1254 plan a portion of the monthly premium equal to the enrollee’s
1255 share of the cost as determined by the department. The agency
1256 shall pay any remaining portion of the monthly premium. Plans
1257 are not obligated to pay claims for medically needy patients for
1258 services provided before enrollment in the plan. Medically needy
1259 patients are responsible for payment of incurred claims that are
1260 used to determine eligibility. Plans must provide a grace period
1261 of at least 90 days before disenrolling recipients who fail to
1262 pay their shares of the premium.
1263 Section 17. Section 409.976, Florida Statutes, is created
1264 to read:
1265 409.976 Managed care plan payment.—In addition to the
1266 payment provisions of s. 409.968, the agency shall provide
1267 payment to plans in the managed medical assistance program
1268 pursuant to this section.
1269 (1) Prepaid payment rates shall be negotiated between the
1270 agency and the eligible plans as part of the procurement process
1271 described in s. 409.966.
1272 (2) The agency shall establish payment rates for statewide
1273 inpatient psychiatric programs. Payments to managed care plans
1274 shall be reconciled to reimburse actual payments to statewide
1275 inpatient psychiatric programs.
1276 Section 18. Section 409.977, Florida Statutes, is created
1277 to read:
1278 409.977 Enrollment.—
1279 (1) The agency shall automatically enroll into a managed
1280 care plan those Medicaid recipients who do not voluntarily
1281 choose a plan pursuant to s. 409.969. The agency shall
1282 automatically enroll recipients in plans that meet or exceed the
1283 performance or quality standards established pursuant to s.
1284 409.967 and may not automatically enroll recipients in a plan
1285 that is deficient in those performance or quality standards.
1286 When a specialty plan is available to accommodate a specific
1287 condition or diagnosis of a recipient, the agency shall assign
1288 the recipient to that plan. In the first year of the first
1289 contract term only, if a recipient was previously enrolled in a
1290 plan that is still available in the region, the agency shall
1291 automatically enroll the recipient in that plan unless an
1292 applicable specialty plan is available. Except as otherwise
1293 provided in this part, the agency may not engage in practices
1294 that are designed to favor one managed care plan over another.
1295 (2) When automatically enrolling recipients in managed care
1296 plans, the agency shall automatically enroll based on the
1297 following criteria:
1298 (a) Whether the plan has sufficient network capacity to
1299 meet the needs of the recipients.
1300 (b) Whether the recipient has previously received services
1301 from one of the plan’s primary care providers.
1302 (c) Whether primary care providers in one plan are more
1303 geographically accessible to the recipient’s residence than
1304 those in other plans.
1305 (3) A newborn of a mother enrolled in a plan at the time of
1306 the child’s birth shall be enrolled in the mother’s plan. Upon
1307 birth, such a newborn is deemed enrolled in the managed care
1308 plan, regardless of the administrative enrollment procedures,
1309 and the managed care plan is responsible for providing Medicaid
1310 services to the newborn. The mother may choose another plan for
1311 the newborn within 90 days after the child’s birth.
1312 (4) The agency shall develop a process to enable a
1313 recipient with access to employer-sponsored health care coverage
1314 to opt out of all managed care plans and to use Medicaid
1315 financial assistance to pay for the recipient’s share of the
1316 cost in such employer-sponsored coverage. Contingent upon
1317 federal approval, the agency shall also enable recipients with
1318 access to other insurance or related products providing access
1319 to health care services created pursuant to state law, including
1320 any product available under the Florida Health Choices Program,
1321 or any health exchange, to opt out. The amount of financial
1322 assistance provided for each recipient may not exceed the amount
1323 of the Medicaid premium that would have been paid to a managed
1324 care plan for that recipient. The agency shall seek federal
1325 approval to require Medicaid recipients with access to employer
1326 sponsored health care coverage to enroll in that coverage and
1327 use Medicaid financial assistance to pay for the recipient’s
1328 share of the cost for such coverage. The amount of financial
1329 assistance provided for each recipient may not exceed the amount
1330 of the Medicaid premium that would have been paid to a managed
1331 care plan for that recipient.
1332 Section 19. Section 409.978, Florida Statutes, is created
1333 to read:
1334 409.978 Long-term care managed care program.—
1335 (1) Pursuant to s. 409.963, the agency shall administer the
1336 long-term care managed care program described in ss. 409.978
1337 409.985, but may delegate specific duties and responsibilities
1338 for the program to the Department of Elderly Affairs and other
1339 state agencies. By July 1, 2012, the agency shall begin
1340 implementation of the statewide long-term care managed care
1341 program, with full implementation in all regions by October 1,
1342 2013.
1343 (2) The agency shall make payments for long-term care,
1344 including home and community-based services, using a managed
1345 care model. Unless otherwise specified, ss. 409.961-409.97 apply
1346 to the long-term care managed care program.
1347 (3) The Department of Elderly Affairs shall assist the
1348 agency to develop specifications for use in the invitation to
1349 negotiate and the model contract, determine clinical eligibility
1350 for enrollment in managed long-term care plans, monitor plan
1351 performance and measure quality of service delivery, assist
1352 clients and families to address complaints with the plans,
1353 facilitate working relationships between plans and providers
1354 serving elders and disabled adults, and perform other functions
1355 specified in a memorandum of agreement.
1356 Section 20. Section 409.979, Florida Statutes, is created
1357 to read:
1358 409.979 Eligibility.—
1359 (1) Medicaid recipients who meet all of the following
1360 criteria are eligible to receive long-term care services and
1361 must receive long-term care services by participating in the
1362 long-term care managed care program. The recipient must be:
1363 (a) Sixty-five years of age or older, or age 18 or older
1364 and eligible for Medicaid by reason of a disability.
1365 (b) Determined by the Comprehensive Assessment Review and
1366 Evaluation for Long-Term Care Services (CARES) Program to
1367 require nursing facility care as defined in s. 409.985(3).
1368 (2) Medicaid recipients who, on the date long-term care
1369 managed care plans become available in their region, reside in a
1370 nursing home facility or are enrolled in one of the following
1371 long-term care Medicaid waiver programs are eligible to
1372 participate in the long-term care managed care program for up to
1373 12 months without being reevaluated for their need for nursing
1374 facility care as defined in s. 409.985(3):
1375 (a) The Assisted Living for the Frail Elderly Waiver.
1376 (b) The Aged and Disabled Adult Waiver.
1377 (c) The Adult Day Health Care Waiver.
1378 (d) The Consumer-Directed Care Plus Program as described in
1379 s. 409.221.
1380 (e) The Program of All-inclusive Care for the Elderly.
1381 (f) The long-term care community-based diversion pilot
1382 project as described in s. 430.705.
1383 (g) The Channeling Services Waiver for Frail Elders.
1384 (3) The Department of Elderly Affairs shall make offers for
1385 enrollment to eligible individuals based on a wait-list
1386 prioritization and subject to availability of funds. Before
1387 enrollment offers, the department shall determine that
1388 sufficient funds exist to support additional enrollment into
1389 plans.
1390 Section 21. Section 409.98, Florida Statutes, is created to
1391 read:
1392 409.98 Long-term care plan benefits.—Long-term care plans
1393 shall, at a minimum, cover the following:
1394 (1) Nursing facility care.
1395 (2) Services provided in assisted living facilities.
1396 (3) Hospice.
1397 (4) Adult day care.
1398 (5) Medical equipment and supplies, including incontinence
1399 supplies.
1400 (6) Personal care.
1401 (7) Home accessibility adaptation.
1402 (8) Behavior management.
1403 (9) Home-delivered meals.
1404 (10) Case management.
1405 (11) Therapies:
1406 (a) Occupational therapy.
1407 (b) Speech therapy.
1408 (c) Respiratory therapy.
1409 (d) Physical therapy.
1410 (12) Intermittent and skilled nursing.
1411 (13) Medication administration.
1412 (14) Medication management.
1413 (15) Nutritional assessment and risk reduction.
1414 (16) Caregiver training.
1415 (17) Respite care.
1416 (18) Transportation.
1417 (19) Personal emergency response system.
1418 Section 22. Section 409.981, Florida Statutes, is created
1419 to read:
1420 409.981 Eligible long-term care plans.—
1421 (1) ELIGIBLE PLANS.—Provider service networks must be long
1422 term care provider service networks. Other eligible plans may be
1423 long-term care plans or comprehensive long-term care plans.
1424 (2) ELIGIBLE PLAN SELECTION.—The agency shall select
1425 eligible plans through the procurement process described in s.
1426 409.966. The agency shall provide notice of invitations to
1427 negotiate by July 1, 2012. The agency shall procure:
1428 (a) Two plans for Region 1. At least one plan must be a
1429 provider service network if any provider service networks submit
1430 a responsive bid.
1431 (b) Two plans for Region 2. At least one plan must be a
1432 provider service network if any provider service networks submit
1433 a responsive bid.
1434 (c) At least three plans and up to five plans for Region 3.
1435 At least one plan must be a provider service network if any
1436 provider service networks submit a responsive bid.
1437 (d) At least three plans and up to five plans for Region 4.
1438 At least one plan must be a provider service network if any
1439 provider service network submits a responsive bid.
1440 (e) At least two plans and up to 4 plans for Region 5. At
1441 least one plan must be a provider service network if any
1442 provider service networks submit a responsive bid.
1443 (f) At least four plans and up to seven plans for Region 6.
1444 At least one plan must be a provider service network if any
1445 provider service networks submit a responsive bid.
1446 (g) At least three plans and up to 6 plans for Region 7. At
1447 least one plan must be a provider service networks if any
1448 provider service networks submit a responsive bid.
1449 (h) At least two plans and up to four plans for Region 8.
1450 At least one plan must be a provider service network if any
1451 provider service networks submit a responsive bid.
1452 (i) At least two plans and up to four plans for Region 9.
1453 At least one plan must be a provider service network if any
1454 provider service networks submit a responsive bid.
1455 (j) At least two plans and up to four plans for Region 10.
1456 At least one plan must be a provider service network if any
1457 provider service networks submit a responsive bid.
1458 (k) At least five plans and up to ten plans for Region 11.
1459 At least one plan must be a provider service network if any
1460 provider service networks submit a responsive bid.
1461
1462 If no provider service network submits a responsive bid in a
1463 region other than Region 1 or Region 2, the agency shall procure
1464 no more than one less than the maximum number of eligible plans
1465 permitted in that region. Within 12 months after the initial
1466 invitation to negotiate, the agency shall attempt to procure a
1467 provider service network. The agency shall notice another
1468 invitation to negotiate only with provider service networks in
1469 regions where no provider service network has been selected.
1470 (3) QUALITY SELECTION CRITERIA.—In addition to the criteria
1471 established in s. 409.966, the agency shall consider the
1472 following factors in the selection of eligible plans:
1473 (a) Evidence of the employment of executive managers with
1474 expertise and experience in serving aged and disabled persons
1475 who require long-term care.
1476 (b) Whether a plan has established a network of service
1477 providers dispersed throughout the region and in sufficient
1478 numbers to meet specific service standards established by the
1479 agency for specialty services for persons receiving home and
1480 community-based care.
1481 (c) Whether a plan is proposing to establish a
1482 comprehensive long-term care plan and whether the eligible plan
1483 has a contract to provide managed medical assistance services in
1484 the same region.
1485 (d) Whether a plan offers consumer-directed care services
1486 to enrollees pursuant to s. 409.221.
1487 (e) Whether a plan is proposing to provide home and
1488 community-based services in addition to the minimum benefits
1489 required by s. 409.98.
1490 (4) PROGRAM OF ALL-INCLUSIVE CARE FOR THE ELDERLY.
1491 Participation by the Program of All-Inclusive Care for the
1492 Elderly (PACE) shall be pursuant to a contract with the agency
1493 and not subject to the procurement requirements or regional plan
1494 number limits of this section. PACE plans may continue to
1495 provide services to individuals at such levels and enrollment
1496 caps as authorized by the General Appropriations Act.
1497 (5) MEDICARE PLANS.—Participation by a Medicare Advantage
1498 Preferred Provider Organization, Medicare Advantage Provider
1499 sponsored Organization, or Medicare Advantage Special Needs Plan
1500 shall be pursuant to a contract with the agency and not subject
1501 to the procurement requirements if the plan’s Medicaid enrollees
1502 consist exclusively of recipients who are deemed dually eligible
1503 for Medicaid and Medicare services. Otherwise, Medicare
1504 Advantage Preferred Provider Organizations, Medicare Advantage
1505 Provider-Sponsored Organizations, and Medicare Advantage Special
1506 Needs Plans are subject to all procurement requirements.
1507 Section 23. Section 409.982, Florida Statutes, is created
1508 to read:
1509 409.982 Long-term care managed care plan accountability.—In
1510 addition to the requirements of s. 409.967, plans and providers
1511 participating in the long-term care managed care program must
1512 comply with the requirements of this section.
1513 (1) PROVIDER NETWORKS.—Managed care plans may limit the
1514 providers in their networks based on credentials, quality
1515 indicators, and price. For the period between October 1, 2013,
1516 and September 30, 2014, each selected plan must offer a network
1517 contract to all the following providers in the region:
1518 (a) Nursing homes.
1519 (b) Hospices.
1520 (c) Aging network service providers that have previously
1521 participated in home and community-based waivers serving elders
1522 or community-service programs administered by the Department of
1523 Elderly Affairs.
1524
1525 After 12 months of active participation in a managed care plan’s
1526 network, the plan may exclude any of the providers named in this
1527 subsection from the network for failure to meet quality or
1528 performance criteria. If the plan excludes a provider from the
1529 plan, the plan must provide written notice to all recipients who
1530 have chosen that provider for care. The notice must be provided
1531 at least 30 days before the effective date of the exclusion. The
1532 agency shall establish contract provisions governing the
1533 transfer of recipients from excluded residential providers.
1534 (2) SELECT PROVIDER PARTICIPATION.—Except as provided in
1535 this subsection, providers may limit the managed care plans they
1536 join. Nursing homes and hospices that are enrolled Medicaid
1537 providers must participate in all eligible plans selected by the
1538 agency in the region in which the provider is located.
1539 (3) PERFORMANCE MEASUREMENT.—Each managed care plan shall
1540 monitor the quality and performance of each participating
1541 provider using measures adopted by and collected by the agency
1542 and any additional measures mutually agreed upon by the provider
1543 and the plan
1544 (4) PROVIDER NETWORK STANDARDS.—The agency shall establish
1545 and each managed care plan must comply with specific standards
1546 for the number, type, and regional distribution of providers in
1547 the plan’s network, which must include:
1548 (a) Adult day care centers.
1549 (b) Adult family-care homes.
1550 (c) Assisted living facilities.
1551 (d) Health care services pools.
1552 (e) Home health agencies.
1553 (f) Homemaker and companion services.
1554 (g) Hospices.
1555 (h) Community care for the elderly lead agencies.
1556 (i) Nurse registries.
1557 (j) Nursing homes.
1558 (5) PROVIDER PAYMENT.—Managed care plans and providers
1559 shall negotiate mutually acceptable rates, methods, and terms of
1560 payment. Plans shall pay nursing homes an amount equal to the
1561 nursing facility-specific payment rates set by the agency;
1562 however, mutually acceptable higher rates may be negotiated for
1563 medically complex care. Plans shall pay hospice providers
1564 through a prospective system for each enrollee an amount equal
1565 to the per diem rate set by the agency. For recipients residing
1566 in a nursing facility and receiving hospice services, the plan
1567 shall pay the hospice provider the per diem rate set by the
1568 agency minus the nursing facility component and shall pay the
1569 nursing facility the applicable state rate. Plans must ensure
1570 that electronic nursing home and hospice claims that contain
1571 sufficient information for processing are paid within 10
1572 business days after receipt.
1573 Section 24. Section 409.983, Florida Statutes, is created
1574 to read:
1575 409.983 Long-term care managed care plan payment.—In
1576 addition to the payment provisions of s. 409.968, the agency
1577 shall provide payment to plans in the long-term care managed
1578 care program pursuant to this section.
1579 (1) Prepaid payment rates for long-term care managed care
1580 plans shall be negotiated between the agency and the eligible
1581 plans as part of the procurement process described in s.
1582 409.966.
1583 (2) Payment rates for comprehensive long-term care plans
1584 covering services described in s. 409.973 shall be blended with
1585 rates for long-term care plans for services specified in s.
1586 409.98.
1587 (3) Payment rates for plans must reflect historic
1588 utilization and spending for covered services projected forward
1589 and adjusted to reflect the level of care profile for enrollees
1590 in each plan. The payment shall be adjusted to provide an
1591 incentive for reducing institutional placements and increasing
1592 the utilization of home and community-based services.
1593 (4) The initial assessment of an enrollee’s level of care
1594 shall be made by the Comprehensive Assessment and Review for
1595 Long-Term-Care Services (CARES) program, which shall assign the
1596 recipient into one of the following levels of care:
1597 (a) Level of care 1 consists of recipients residing in or
1598 who must be placed in a nursing home.
1599 (b) Level of care 2 consists of recipients at imminent risk
1600 of nursing home placement, as evidenced by the need for the
1601 constant availability of routine medical and nursing treatment
1602 and care, and require extensive health-related care and services
1603 because of mental or physical incapacitation.
1604 (c) Level of care 3 consists of recipients at imminent risk
1605 of nursing home placement, as evidenced by the need for the
1606 constant availability of routine medical and nursing treatment
1607 and care, who have a limited need for health-related care and
1608 services and are mildly medically or physically incapacitated.
1609
1610 The agency shall periodically adjust payment rates to account
1611 for changes in the level of care profile for each managed care
1612 plan based on encounter data.
1613 (5) The agency shall make an incentive adjustment in
1614 payment rates to encourage the increased utilization of home and
1615 community-based services and a commensurate reduction of
1616 institutional placement. The incentive adjustment shall be
1617 modified in each successive rate period during the first
1618 contract period, as follows:
1619 (a) A 2 percentage point shift in the first rate-setting
1620 period;
1621 (b) A 2 percentage point shift in the second rate-setting
1622 period, as compared to the utilization mix at the end of the
1623 first rate-setting period; or
1624 (c) A 3 percentage point shift in the third rate-setting
1625 period, and in each subsequent rate-setting period during the
1626 first contract period, as compared to the utilization mix at the
1627 end of the immediately preceding rate-setting period.
1628
1629 The incentive adjustment shall continue in subsequent contract
1630 periods, at a rate of 3 percentage points per year as compared
1631 to the utilization mix at the end of the immediately preceding
1632 rate-setting period, until no more than 35 percent of the plan’s
1633 enrollees are placed in institutional settings. The agency shall
1634 annually report to the Legislature the actual change in the
1635 utilization mix of home and community-based services compared to
1636 institutional placements and provide a recommendation for
1637 utilization mix requirements for future contracts.
1638 (6) The agency shall establish nursing-facility-specific
1639 payment rates for each licensed nursing home based on facility
1640 costs adjusted for inflation and other factors as authorized in
1641 the General Appropriations Act. Payments to long-term care
1642 managed care plans shall be reconciled to reimburse actual
1643 payments to nursing facilities.
1644 (7) The agency shall establish hospice payment rates
1645 pursuant to Title XVIII of the Social Security Act. Payments to
1646 long-term care managed care plans shall be reconciled to
1647 reimburse actual payments to hospices.
1648 Section 25. Section 409.984, Florida Statutes, is created
1649 to read:
1650 409.984 Enrollment in a long-term care managed care plan.—
1651 (1) The agency shall automatically enroll into a long-term
1652 care managed care plan those Medicaid recipients who do not
1653 voluntarily choose a plan pursuant to s. 409.969. The agency
1654 shall automatically enroll recipients in plans that meet or
1655 exceed the performance or quality standards established pursuant
1656 to s. 409.967 and may not automatically enroll recipients in a
1657 plan that is deficient in those performance or quality
1658 standards. If a recipient is deemed dually eligible for Medicaid
1659 and Medicare services and is currently receiving Medicare
1660 services from an entity qualified under 42 C.F.R. part 422 as a
1661 Medicare Advantage Preferred Provider Organization, Medicare
1662 Advantage Provider-sponsored Organization, or Medicare Advantage
1663 Special Needs Plan, the agency shall automatically enroll the
1664 recipient in such plan for Medicaid services if the plan is
1665 currently participating in the long-term care managed care
1666 program. Except as otherwise provided in this part, the agency
1667 may not engage in practices that are designed to favor one
1668 managed care plan over another.
1669 (1) When automatically enrolling recipients in plans, the
1670 agency shall take into account the following criteria:
1671 (a) Whether the plan has sufficient network capacity to
1672 meet the needs of the recipients.
1673 (b) Whether the recipient has previously received services
1674 from one of the plan’s home and community-based service
1675 providers.
1676 (c) Whether the home and community-based providers in one
1677 plan are more geographically accessible to the recipient’s
1678 residence than those in other plans.
1679 (3) Notwithstanding s. 409.969(3)(c), if a recipient is
1680 referred for hospice services, the recipient has 30 days during
1681 which the recipient may select to enroll in another managed care
1682 plan to access the hospice provider of the recipient’s choice.
1683 (4) If a recipient is referred for placement in a nursing
1684 home or assisted living facility, the plan must inform the
1685 recipient of any facilities within the plan that have specific
1686 cultural or religious affiliations and, if requested by the
1687 recipient, make a reasonable effort to place the recipient in
1688 the facility of the recipient’s choice.
1689 Section 26. Section 409.9841, Florida Statutes, is created
1690 to read:
1691 409.9841 Long-term care managed care technical advisory
1692 workgroup.—
1693 (1) Before August 1, 2011, the agency shall establish a
1694 technical advisory workgroup to assist in developing:
1695 (a) The method of determining Medicaid eligibility pursuant
1696 to s. 409.985(3).
1697 (b) The requirements for provider payments to nursing homes
1698 under s. 409.983(6).
1699 (c) The method for managing Medicare coinsurance crossover
1700 claims.
1701 (d) Uniform requirements for claims submissions and
1702 payments, including electronic funds transfers and claims
1703 processing.
1704 (e) The process for enrollment of and payment for
1705 individuals pending determination of Medicaid eligibility.
1706 (2) The advisory workgroup must include, but is not limited
1707 to, representatives of providers and plans who could potentially
1708 participate in long-term care managed care. Members of the
1709 workgroup shall serve without compensation but may be reimbursed
1710 for per diem and travel expenses as provided in s. 112.061.
1711 (3) This section is repealed on June 30, 2013.
1712 Section 27. Section 409.985, Florida Statutes, is created
1713 to read:
1714 409.985 Comprehensive Assessment and Review for Long-Term
1715 Care Services (CARES) Program.—
1716 (1) The agency shall operate the Comprehensive Assessment
1717 and Review for Long-Term Care Services (CARES) preadmission
1718 screening program to ensure that only individuals whose
1719 conditions require long-term care services are enrolled in the
1720 long-term care managed care program.
1721 (2) The agency shall operate the CARES program through an
1722 interagency agreement with the Department of Elderly Affairs.
1723 The agency, in consultation with the Department of Elderly
1724 Affairs, may contract for any function or activity of the CARES
1725 program, including any function or activity required by 42
1726 C.F.R. part 483.20, relating to preadmission screening and
1727 review.
1728 (3) The CARES program shall determine if an individual
1729 requires nursing facility care and, if the individual requires
1730 such care, assign the individual to a level of care as described
1731 in s. 409.983(4). When determining the need for nursing facility
1732 care, consideration shall be given to the nature of the services
1733 prescribed and which level of nursing or other health care
1734 personnel meets the qualifications necessary to provide such
1735 services and the availability to and access by the individual of
1736 community or alternative resources. For the purposes of the
1737 long-term care managed care program, the term “nursing facility
1738 care” means the individual:
1739 (a) Requires nursing home placement as evidenced by the
1740 need for medical observation throughout a 24-hour period and
1741 care required to be performed on a daily basis by, or under the
1742 direct supervision of, a registered nurse or other health care
1743 professional and requires services that are sufficiently
1744 medically complex to require supervision, assessment, planning,
1745 or intervention by a registered nurse because of a mental or
1746 physical incapacitation by the individual;
1747 (b) Requires or is at imminent risk of nursing home
1748 placement as evidenced by the need for observation throughout a
1749 24-hour period and care and the constant availability of medical
1750 and nursing treatment and requires services on a daily or
1751 intermittent basis that are to be performed under the
1752 supervision of licensed nursing or other health professionals
1753 because the individual who is incapacitated mentally or
1754 physically; or
1755 (c) Requires or is at imminent risk of nursing home
1756 placement as evidenced by the need for observation throughout a
1757 24-hour period and care and the constant availability of medical
1758 and nursing treatment and requires limited services that are to
1759 be performed under the supervision of licensed nursing or other
1760 health professionals because the individual is mildly
1761 incapacitated mentally or physically.
1762 (4) For individuals whose nursing home stay is initially
1763 funded by Medicare and Medicare coverage and is being terminated
1764 for lack of progress towards rehabilitation, CARES staff shall
1765 consult with the person making the determination of progress
1766 toward rehabilitation to ensure that the recipient is not being
1767 inappropriately disqualified from Medicare coverage. If, in
1768 their professional judgment, CARES staff believe that a Medicare
1769 beneficiary is still making progress toward rehabilitation, they
1770 may assist the Medicare beneficiary with an appeal of the
1771 disqualification from Medicare coverage. The use of CARES teams
1772 to review Medicare denials for coverage under this section is
1773 authorized only if it is determined that such reviews qualify
1774 for federal matching funds through Medicaid. The agency shall
1775 seek or amend federal waivers as necessary to implement this
1776 section.
1777 Section 28. If any provision of this act or its application
1778 to any person or circumstance is held invalid, the invalidity
1779 does not affect other provisions or applications of the act
1780 which can be given effect without the invalid provision or
1781 application, and to this end the provisions of this act are
1782 severable.
1783 Section 29. This act shall take effect July 1, 2011.
1784
1785 ================= T I T L E A M E N D M E N T ================
1786 And the title is amended as follows:
1787 Delete everything before the enacting clause
1788 and insert:
1789 A bill to be entitled
1790 An act relating to Medicaid managed care; creating
1791 part IV of ch. 409, F.S., entitled “Medicaid Managed
1792 Care”; creating s. 409.961, F.S.; providing for
1793 statutory construction; providing applicability of
1794 specified provisions throughout the part; providing
1795 rulemaking authority for specified agencies; creating
1796 s. 409.962, F.S.; providing definitions; creating s.
1797 409.963, F.S.; designating the Agency for Health Care
1798 Administration as the single state agency to
1799 administer the Medicaid program; providing for
1800 specified agency responsibilities; requiring client
1801 consent for release of medical records; creating s.
1802 409.964, F.S.; establishing the Medicaid program as
1803 the statewide, integrated managed care program for all
1804 covered services; authorizing the agency to apply for
1805 and implement waivers; providing for public notice and
1806 comment; creating s. 409.965, F.S.; providing for
1807 mandatory enrollment; providing exemptions; creating
1808 s. 409.966, F.S.; providing requirements for eligible
1809 plans that provide services in the Medicaid managed
1810 care program; establishing provider service network
1811 requirements for eligible plans; providing for
1812 eligible plan selection; requiring the agency to use
1813 an invitation to negotiate; requiring the agency to
1814 compile and publish certain information; establishing
1815 regions for separate procurement of plans; providing
1816 quality criteria for plan selection; providing
1817 limitations on serving recipients during the pendency
1818 of procurement litigation; creating s. 409.967, F.S.;
1819 providing for managed care plan accountability;
1820 establishing contract terms; providing for physician
1821 compensation; providing for emergency services;
1822 establishing requirements for access; requiring a drug
1823 formulary or preferred drug list; requiring plans to
1824 accept requests for service electronically; requiring
1825 the agency to maintain an encounter data system;
1826 requiring plans to provide encounter data; requiring
1827 the agency to establish performance standards for
1828 plans; providing program integrity requirements;
1829 establishing requirements for the database;
1830 establishing a grievance resolution process; providing
1831 penalties for early termination of contracts or
1832 reduction in enrollment levels; establishing prompt
1833 payment requirements; requiring fair payment to
1834 providers with a controlling interest in a provider
1835 service network by other plans; requiring itemized
1836 payment; providing for dispute resolutions between
1837 plans and providers; providing for achieved savings
1838 rebates to plans; creating s. 409.968, F.S.;
1839 establishing managed care plan payments; providing
1840 payment requirements for provider service networks;
1841 requiring the agency to conduct annual cost
1842 reconciliations to determine certain cost savings and
1843 report the results of the reconciliations to the fee
1844 for-service provider; prohibiting rate increases that
1845 are not authorized in the appropriations act; creating
1846 s. 409.969, F.S.; requiring enrollment in managed care
1847 plans by all nonexempt Medicaid recipients; creating
1848 requirements for plan selection by recipients;
1849 authorizing disenrollment under certain circumstances;
1850 defining the term “good cause” for purposes of
1851 disenrollment; providing time limits on an internal
1852 grievance process; providing requirements for agency
1853 determination regarding disenrollment; requiring
1854 recipients to stay in plans for a specified time;
1855 creating s. 409.97, F.S.; authorizing the agency to
1856 accept the transfer of certain revenues from local
1857 governments; requiring the agency to contract with a
1858 representative of certain entities participating in
1859 the low-income pool for the provision of enhanced
1860 access to care; providing for support of these
1861 activities by the low-income pool as authorized in the
1862 General Appropriations Act; establishing the Access to
1863 Care Partnership; requiring the agency to seek
1864 necessary waivers and plan amendments; providing
1865 requirements for prepaid plans to submit data;
1866 authorizing the agency to implement a tiered hospital
1867 rate system; creating s. 409.971, F.S.; creating the
1868 managed medical assistance program; providing
1869 deadlines to begin and finalize implementation of the
1870 program; creating s. 409.972, F.S.; providing
1871 eligibility requirements for mandatory and voluntary
1872 enrollment; creating s. 409.973, F.S.; establishing
1873 minimum benefits for managed care plans to cover;
1874 authorizing plans to customize benefit packages;
1875 requiring plans to establish programs to encourage
1876 healthy behaviors and establish written agreements
1877 with certain enrollees to participate in such
1878 programs; requiring plans to establish a primary care
1879 initiative; providing requirements for primary care
1880 initiatives; requiring plans to report certain primary
1881 care data to the agency; creating s. 409.974, F.S.;
1882 establishing a deadline for issuing invitations to
1883 negotiate; establishing a specified number or range of
1884 eligible plans to be selected in each region;
1885 establishing quality selection criteria; establishing
1886 requirements for participation by specialty plans;
1887 establishing the Children’s Medical Service Network as
1888 an eligible plan; creating s. 409.975, F.S.; providing
1889 for managed care plan accountability; authorizing
1890 plans to limit providers in networks; requiring plans
1891 to include essential Medicaid providers in their
1892 networks unless an alternative arrangement is approved
1893 by the agency; identifying statewide essential
1894 providers; specifying provider payments under certain
1895 circumstances; requiring plans to include certain
1896 statewide essential providers in their networks;
1897 requiring good faith negotiations; specifying provider
1898 payments under certain circumstances; allowing plans
1899 to exclude essential providers under certain
1900 circumstances; requiring plans to offer a contract to
1901 home medical equipment and supply providers under
1902 certain circumstances; establishing the Florida
1903 medical school quality network; requiring the agency
1904 to contract with a representative of certain entities
1905 to establish a clinical outcome improvement program in
1906 all plans; providing for support of these activities
1907 by certain expenditures and federal matching funds;
1908 requiring the agency to seek necessary waivers and
1909 plan amendments; providing for eligibility for the
1910 quality network; requiring plans to monitor the
1911 quality and performance history of providers;
1912 establishing the MomCare network; requiring the agency
1913 to contract with a representative of all Healthy Start
1914 Coalitions to provide certain services to recipients;
1915 providing for support of these activities by certain
1916 expenditures and federal matching funds; requiring
1917 plans to enter into agreements with local Healthy
1918 Start Coalitions for certain purposes; requiring
1919 specified programs and procedures be established by
1920 plans; establishing a screening standard for the Early
1921 and Periodic Screening, Diagnosis, and Treatment
1922 Service; requiring managed care plans and hospitals to
1923 negotiate rates, methods, and terms of payment;
1924 providing a limit on payments to hospitals;
1925 establishing plan requirements for medically needy
1926 recipients; creating s. 409.976, F.S.; providing for
1927 managed care plan payment; requiring the agency to
1928 establish payment rates for statewide inpatient
1929 psychiatric programs; requiring payments to managed
1930 care plans to be reconciled to reimburse actual
1931 payments to statewide inpatient psychiatric programs;
1932 creating s. 409.977, F.S.; providing for automatic
1933 enrollment in a managed care plan for certain
1934 recipients; establishing opt-out opportunities for
1935 recipients; creating s. 409.978, F.S.; requiring the
1936 agency to be responsible for administering the long
1937 term care managed care program; providing
1938 implementation dates for the long-term care managed
1939 care program; providing duties of the Department of
1940 Elderly Affairs relating to assisting the agency in
1941 implementing the program; creating s. 409.979, F.S.;
1942 providing eligibility requirements for the long-term
1943 care managed care program; creating s. 409.98, F.S.;
1944 establishing the benefits covered under a managed care
1945 plan participating in the long-term care managed care
1946 program; creating s. 409.981, F.S.; providing criteria
1947 for eligible plans; designating regions for plan
1948 implementation throughout the state; providing
1949 criteria for the selection of plans to participate in
1950 the long-term care managed care program; providing
1951 that participation by the Program of All-Inclusive
1952 Care for the Elderly and certain Medicare plans is
1953 pursuant to an agency contract and not subject to
1954 procurement; creating s. 409.982, F.S.; requiring the
1955 agency to establish uniform accounting and reporting
1956 methods for plans; providing for mandatory
1957 participation in plans by certain service providers;
1958 authorizing the exclusion of certain providers from
1959 plans for failure to meet quality or performance
1960 criteria; requiring plans to monitor participating
1961 providers using specified criteria; requiring certain
1962 providers to be included in plan networks; providing
1963 provider payment specifications for nursing homes and
1964 hospices; creating s. 409.983, F.S.; providing for
1965 negotiation of rates between the agency and the plans
1966 participating in the long-term care managed care
1967 program; providing specific criteria for calculating
1968 and adjusting plan payments; allowing the CARES
1969 program to assign plan enrollees to a level of care;
1970 providing incentives for adjustments of payment rates;
1971 requiring the agency to establish nursing facility
1972 specific and hospice services payment rates; creating
1973 s. 409.984, F.S.; providing criteria for automatic
1974 assignments of plan enrollees who fail to choose a
1975 plan; providing for hospice selection within a
1976 specified timeframe; providing for a choice of
1977 residential setting under certain circumstances;
1978 creating s. 409.9841, F.S.; creating the long-term
1979 care managed care technical advisory workgroup;
1980 providing duties; providing membership; providing for
1981 reimbursement for per diem and travel expenses;
1982 providing for repeal by a specified date; creating s.
1983 409.985, F.S.; providing that the agency shall operate
1984 the Comprehensive Assessment and Review for Long-Term
1985 Care Services program through an interagency agreement
1986 with the Department of Elderly Affairs; providing
1987 duties of the program; defining the term “nursing
1988 facility care”; providing for severability; providing
1989 an effective date.