Florida Senate - 2012                          SENATOR AMENDMENT
       Bill No. CS for SB 730
       
       
       
       
       
       
                                Barcode 875574                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                                       .                                
                                       .                                
                                       .                                
                Floor: 2/F/RM          .                                
             03/08/2012 06:36 PM       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       Senator Garcia moved the following:
       
    1         Senate Amendment to House Amendment (504515) (with title
    2  amendment)
    3  
    4         Between lines 470 and 471
    5  insert:
    6         Section 9. Subsection (1) of section 409.975, Florida
    7  Statutes, is amended to read:
    8         409.975 Managed care plan accountability.—In addition to
    9  the requirements of s. 409.967, plans and providers
   10  participating in the managed medical assistance program shall
   11  comply with the requirements of this section.
   12         (1) PROVIDER NETWORKS.—Managed care plans must develop and
   13  maintain provider networks that meet the medical needs of their
   14  enrollees in accordance with standards established pursuant to
   15  s. 409.967(2)(b). Except as provided in this section, managed
   16  care plans may limit the providers in their networks based on
   17  credentials, quality indicators, and price.
   18         (a) Plans must include all providers in the region that are
   19  classified by the agency as essential Medicaid providers for the
   20  essential services they provide, unless the agency approves, in
   21  writing, an alternative arrangement for securing the types of
   22  services offered by the essential providers. Providers are
   23  essential for serving Medicaid enrollees if they offer services
   24  that are not available from any other provider within a
   25  reasonable access standard, or if they provided a substantial
   26  share of the total units of a particular service used by
   27  Medicaid patients within the region during the last 3 years and
   28  the combined capacity of other service providers in the region
   29  is insufficient to meet the total needs of the Medicaid
   30  patients. The agency may not classify physicians and other
   31  practitioners as essential providers.
   32         1. The agency, at a minimum, shall determine which
   33  providers in the following categories are essential Medicaid
   34  providers:
   35         a.1. Federally qualified health centers.
   36         b.2. Statutory teaching hospitals as defined in s.
   37  408.07(45).
   38         c.3. Hospitals that are trauma centers as defined in s.
   39  395.4001(14).
   40         d.4. Hospitals located at least 25 miles from any other
   41  hospital with similar services.
   42         2. Before the selection of managed care plans as specified
   43  in s. 409.966, each essential Medicaid provider and each
   44  hospital that is necessary in order for a managed care plan to
   45  demonstrate an adequate network, as determined by the agency,
   46  are deemed a part of that managed care plan’s network for
   47  purposes of the plan’s enrollment or expansion in the Medicaid
   48  program. A hospital that is necessary for a managed care plan to
   49  demonstrate an adequate network is an essential hospital. An
   50  essential Medicaid provider is deemed a part of a managed care
   51  plan’s network for the essential services it provides for
   52  purposes of the plan’s enrollment or expansion in the Medicaid
   53  program. The managed care plan, each essential Medicaid
   54  provider, and each essential hospital shall negotiate in good
   55  faith to enter into a provider network contract. During the plan
   56  selection process, the managed care plan is not required to have
   57  written agreements or contracts with essential Medicaid
   58  providers or essential hospitals.
   59         3. Managed care plans that have not contracted with all
   60  essential Medicaid providers or essential hospitals in the
   61  region as of the first date of recipient enrollment, or with
   62  whom an essential Medicaid provider or essential hospital has
   63  terminated its contract, must continue to negotiate in good
   64  faith with such essential Medicaid providers or essential
   65  hospitals for 1 year, or until an agreement is reached, or a
   66  complaint is resolved as provided in paragraph (e), whichever is
   67  first. Each essential Medicaid provider must continue to
   68  negotiate in good faith during that year to enter into a
   69  provider network contract for at least the essential services it
   70  provides. Each essential hospital must continue to negotiate in
   71  good faith during that year to enter into a provider network
   72  contract. Payments for services rendered by a nonparticipating
   73  essential Medicaid provider or essential hospital shall be made
   74  at the applicable Medicaid rate as of the first day of the
   75  contract between the agency and the plan. A rate schedule for
   76  all essential Medicaid providers and essential hospitals must
   77  shall be attached to the contract between the agency and the
   78  plan.
   79         4. After 1 year, managed care plans that are unable to
   80  contract with essential Medicaid providers and essential
   81  hospitals shall notify the agency and propose an alternative
   82  arrangement for securing the essential services for Medicaid
   83  enrollees. The arrangement must rely on contracts with other
   84  participating providers, regardless of whether those providers
   85  are located within the same region as the nonparticipating
   86  essential service provider. If the alternative arrangement is
   87  approved by the agency, payments to nonparticipating essential
   88  Medicaid providers and essential hospitals after the date of the
   89  agency’s approval must shall equal 90 percent of the applicable
   90  Medicaid rate. If the alternative arrangement is not approved by
   91  the agency, payment to nonparticipating essential Medicaid
   92  providers and essential hospitals must shall equal 110 percent
   93  of the applicable Medicaid rate.
   94         (b) Certain providers are statewide resources and essential
   95  providers for all managed care plans in all regions. All managed
   96  care plans must include these essential providers in their
   97  networks for the essential services they provide.
   98         1. Statewide essential providers include:
   99         a.1. Faculty plans of Florida medical schools.
  100         b.2. Regional perinatal intensive care centers as defined
  101  in s. 383.16(2).
  102         c.3. Hospitals licensed as a specialty hospital for
  103  children children’s hospitals as defined in s. 395.002(28).
  104         d.4. Accredited and integrated systems serving medically
  105  complex children that are comprised of separately licensed, but
  106  commonly owned, health care providers delivering at least the
  107  following services: medical group home, in-home and outpatient
  108  nursing care and therapies, pharmacy services, durable medical
  109  equipment, and Prescribed Pediatric Extended Care.
  110         2. Before the selection of managed care plans as specified
  111  in s. 409.966, each statewide essential provider is deemed a
  112  part of that managed care plan’s network for the essential
  113  services they provide and for purposes of the plan’s enrollment
  114  or expansion in the Medicaid program. The managed care plan and
  115  each statewide essential provider shall negotiate in good faith
  116  to enter into a provider network contract. During the plan
  117  selection process, the managed care plan is not required to have
  118  written agreements or contracts with statewide essential
  119  providers or essential hospitals.
  120         3. Managed care plans that have not contracted with all
  121  statewide essential providers in all regions as of the first
  122  date of recipient enrollment and all statewide essential
  123  providers that have not entered into a contract with each
  124  managed care plan must continue to negotiate in good faith. to
  125  enter into a provider network contract for at least the
  126  essential services. As of the first day of the contract between
  127  the agency and the plan, and until a provider network contract
  128  is signed, payments:
  129         a. To physicians on the faculty of nonparticipating Florida
  130  medical schools shall be made at the applicable Medicaid rate.
  131  Payments
  132         b. For services rendered by regional perinatal intensive
  133  care centers shall be made at the applicable Medicaid rate as of
  134  the first day of the contract between the agency and the plan.
  135  Payments
  136         c. To nonparticipating specialty children’s hospitals shall
  137  equal the highest rate established by contract between that
  138  provider and any other Medicaid managed care plan.
  139         (c) After 12 months of active participation in a plan’s
  140  network, the plan may exclude any essential provider from the
  141  network for failure to meet quality or performance criteria. If
  142  the plan excludes an essential provider from the plan, the plan
  143  must provide written notice to all recipients who have chosen
  144  that provider for care. The notice shall be provided at least 30
  145  days before the effective date of the exclusion.
  146         (d) Each managed care plan must offer a network contract to
  147  each home medical equipment and supplies provider in the region
  148  which meets quality and fraud prevention and detection standards
  149  established by the plan and which agrees to accept the lowest
  150  price previously negotiated between the plan and another such
  151  provider.
  152         (e) At any time during negotiations a managed care plan, an
  153  essential Medicaid provider, an essential hospital, or a
  154  statewide essential provider may file a complaint with the
  155  agency alleging that, in provider network negotiations, the
  156  other party is not negotiating in good faith. The agency shall
  157  review each complaint and make a determination whether or not
  158  one or both parties have failed to negotiate in good faith.
  159         1. If the agency determines that:
  160         a. The managed care plan was not negotiating in good faith,
  161  payment to the nonparticipating essential Medicaid provider,
  162  essential hospital, or statewide essential provider shall equal
  163  110 percent of the applicable Medicaid rate or the highest
  164  contracted rate the provider has with a plan, whichever is
  165  higher.
  166         b. The essential Medicaid provider, essential hospital, or
  167  statewide essential provider was not negotiating in good faith,
  168  payment to the nonparticipating provider shall equal 90 percent
  169  of the applicable Medicaid rate or the lowest contracted rate
  170  the provider has with a plan, whichever is lower.
  171         c. Both parties were not negotiating in good faith, payment
  172  to the nonparticipating provider shall be made at the applicable
  173  Medicaid rate.
  174         2. In making a determination under this paragraph regarding
  175  a managed care plan’s good faith efforts to negotiate, the
  176  agency, at a minimum, shall consider whether the managed care
  177  plan has:
  178         a. Offered payment rates that are comparable to other
  179  managed care plan rates to the provider or that are comparable
  180  to fee-for-service rates for the provider.
  181         b. Proposed its prepayment edits and audits and prior
  182  authorizations in a manner comparable to other managed care
  183  plans or comparable to current fee for service utilization
  184  management and prior authorization procedures for non-emergent
  185  services.
  186         c. Offered to pay the provider’s undisputed claims faster
  187  or equal to existing Medicaid managed care plan contract
  188  standards and, if the managed care plan’s claims payment system
  189  has been used in other markets, has it failed to meet these
  190  standards.
  191         d. Offered a provider dispute resolution system that meets
  192  or exceeds existing Medicaid managed care plan contract
  193  requirements.
  194         e. If the provider is a hospital essential provider,
  195  offered a reasonable payment amount for use of the hospital
  196  emergency room for non-emergent care, developed referral
  197  arrangements with the hospital for non-emergent care, and
  198  offered reasonable prior or post authorization requirements for
  199  non-emergent care in the emergency room.
  200         f. Attempted to work with the provider to assist the
  201  provider with any patient volume arrangements and whether
  202  patient volume arrangements benefit the provider.
  203         g. Demonstrated its financial viability and commitment to
  204  meeting its financial obligations.
  205         h. Demonstrated its ability to support HIPAA-compliant
  206  electronic data interchange transactions.
  207         3. In making a determination under this paragraph regarding
  208  a provider’s good faith efforts to negotiate, the agency shall,
  209  at a minimum, consider whether the provider has:
  210         a. Met with the managed care plan at a reasonable frequency
  211  and involved empowered decision makers in the meetings.
  212         b. Offered reasonable rates that are comparable to other
  213  managed care plan rates to the provider or comparable to fee
  214  for-service rates to the provider.
  215         c. Negotiated managed care plan prepayment edits and audits
  216  and prior authorizations in a manner comparable to other managed
  217  care plans or comparable to fee for service utilization
  218  management and prior authorization procedures for non-emergent
  219  services.
  220         d. Negotiated reasonable payment timeframes for payment of
  221  undisputed claims that are comparable to existing Medicaid
  222  managed care plan standards or comparable to fee-for-service
  223  experience.
  224         e. Researched other providers’ experience with the managed
  225  care plan’s claims payment system for timeliness of payment.
  226         f. Negotiated with the managed care plan regarding a
  227  provider dispute resolution system that meets or exceeds the
  228  managed care plan’s Medicaid contract requirements.
  229         g.If the provider is an essential hospital, negotiated
  230  with the managed care plan regarding primary care alternatives
  231  to non-emergent use of the emergency room.
  232         h. Negotiated patient volume arrangements with the managed
  233  care plan.
  234         i. Developed, or is developing, a hospital-based provider
  235  service network.
  236         j. Already contracted with other Medicaid managed care
  237  plans.
  238         4. Either party may appeal a determination by the agency
  239  under this paragraph pursuant to chapter 120. The party
  240  appealing the agency’s determination shall pay the appellee’s
  241  attorney’s fees and costs, in an amount up to $1 million, from
  242  the beginning of the agency’s review of the complaint if the
  243  appealing party loses the appeal.
  244  
  245  ================= T I T L E  A M E N D M E N T ================
  246         And the title is amended as follows:
  247         Delete line 529
  248  and insert:
  249         standards; setting enrollment requirements; amending
  250         s. 409.975, F.S.; providing that an essential provider
  251         and a hospital that is necessary for a managed care
  252         plan to demonstrate an adequate network as determined
  253         by the Agency for Health Care Administration are
  254         deemed part of that managed care plan’s network for
  255         purposes of the provider’s or hospital’s application
  256         for enrollment or expansion in Medicaid; requiring
  257         good faith negotiations between Medicaid managed care
  258         plans and essential Medicaid providers; providing that
  259         a statewide essential provider is part of a Medicaid
  260         managed care plan’s network for purposes of the
  261         managed care plan’s application for enrollment or
  262         expansion in the Medicaid program; requiring good
  263         faith negotiations between Medicaid managed care plans
  264         and statewide essential providers; authorizing
  265         Medicaid managed care plans and certain Medicaid
  266         providers to file a complaint alleging that, in
  267         provider network negotiations, the other party is not
  268         negotiating in good faith; requiring the agency to
  269         review such complaints and make a determination
  270         whether or not one or both parties have failed to
  271         negotiate in good faith; providing criteria for the
  272         agency to consider in making a determination about
  273         good faith negotiations; providing financial penalties
  274         for parties that do not negotiate in good faith;
  275         providing for appeal of the agency’s determination
  276         pursuant to ch. 120, F.S.; providing for payment of
  277         attorney fees and costs; amending