Florida Senate - 2022              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. CS for SB 1950
       
       
       
       
       
                               Ì625186>Î625186                          
       
       576-03085-22                                                    
       Proposed Committee Substitute by the Committee on Appropriations
       (Appropriations Subcommittee on Health and Human Services)
    1                        A bill to be entitled                      
    2         An act relating to the statewide Medicaid managed care
    3         program; amending s. 409.912, F.S.; requiring, rather
    4         than authorizing, that the reimbursement method for
    5         provider service networks be on a prepaid basis;
    6         deleting the authority to reimburse provider service
    7         networks on a fee-for-service basis; conforming
    8         provisions to changes made by the act; providing that
    9         provider service networks are subject to and exempt
   10         from certain requirements; providing construction;
   11         repealing s. 409.9124, F.S., relating to managed care
   12         reimbursement; amending s. 409.964, F.S.; deleting a
   13         requirement that the Agency for Health Care
   14         Administration provide the opportunity for public
   15         feedback on a certain waiver application; amending s.
   16         409.966, F.S.; revising requirements relating to the
   17         databook published by the agency consisting of
   18         Medicaid utilization and spending data; reallocating
   19         regions within the statewide managed care program;
   20         deleting a requirement that the agency negotiate plan
   21         rates or payments to guarantee a certain savings
   22         amount; deleting a requirement for the agency to award
   23         additional contracts to plans in specified regions for
   24         certain purposes; revising a limitation on when plans
   25         may begin serving Medicaid recipients to apply to any
   26         eligible plan that participates in an invitation to
   27         negotiate, rather than plans participating in certain
   28         regions; making technical changes; amending s.
   29         409.967, F.S.; deleting obsolete provisions; amending
   30         s. 409.968, F.S.; conforming provisions to changes
   31         made by the act; amending s. 409.973, F.S.; revising
   32         requirements for healthy behaviors programs
   33         established by plans; deleting an obsolete provision;
   34         amending s. 409.974, F.S.; requiring the agency to
   35         select plans for the managed medical assistance
   36         program through a single statewide procurement;
   37         authorizing the agency to award contracts to plans on
   38         a regional or statewide basis; specifying requirements
   39         for minimum numbers of plans which the agency must
   40         procure for each specified region; conforming
   41         provisions to changes made by the act; deleting a
   42         requirement for the agency to exercise a preference
   43         for certain plans; amending s. 409.975, F.S.;
   44         providing that cancer hospitals meeting certain
   45         criteria are statewide essential providers; amending
   46         s. 409.977, F.S.; revising the circumstances for
   47         maintaining a recipient’s enrollment in a plan;
   48         deleting obsolete language; authorizing specialty
   49         plans to serve certain children who receive
   50         guardianship assistance payments under the
   51         Guardianship Assistance Program; amending s. 409.981,
   52         F.S.; requiring the agency to select plans for the
   53         long-term care managed medical assistance program
   54         through a single statewide procurement; authorizing
   55         the agency to award contracts to plans on a regional
   56         or statewide basis; specifying requirements for
   57         minimum numbers of plans which the agency must procure
   58         for each specified region; conforming provisions to
   59         changes made by the act; amending s. 409.8132, F.S.;
   60         conforming a cross-reference; reenacting ss.
   61         409.962(1), (7), (13), and (14) and 641.19(22)
   62         relating to definitions, to incorporate the amendments
   63         made by this act to s. 409.912, F.S., in references
   64         thereto; reenacting s. 430.2053(3)(h), (i), and (j)
   65         and (11), relating to aging resource centers, to
   66         incorporate the amendments made by this act to s.
   67         409.981, F.S., in references thereto; providing an
   68         effective date.
   69          
   70  Be It Enacted by the Legislature of the State of Florida:
   71  
   72         Section 1. Subsection (1) of section 409.912, Florida
   73  Statutes, is amended to read:
   74         409.912 Cost-effective purchasing of health care.—The
   75  agency shall purchase goods and services for Medicaid recipients
   76  in the most cost-effective manner consistent with the delivery
   77  of quality medical care. To ensure that medical services are
   78  effectively utilized, the agency may, in any case, require a
   79  confirmation or second physician’s opinion of the correct
   80  diagnosis for purposes of authorizing future services under the
   81  Medicaid program. This section does not restrict access to
   82  emergency services or poststabilization care services as defined
   83  in 42 C.F.R. s. 438.114. Such confirmation or second opinion
   84  shall be rendered in a manner approved by the agency. The agency
   85  shall maximize the use of prepaid per capita and prepaid
   86  aggregate fixed-sum basis services when appropriate and other
   87  alternative service delivery and reimbursement methodologies,
   88  including competitive bidding pursuant to s. 287.057, designed
   89  to facilitate the cost-effective purchase of a case-managed
   90  continuum of care. The agency shall also require providers to
   91  minimize the exposure of recipients to the need for acute
   92  inpatient, custodial, and other institutional care and the
   93  inappropriate or unnecessary use of high-cost services. The
   94  agency shall contract with a vendor to monitor and evaluate the
   95  clinical practice patterns of providers in order to identify
   96  trends that are outside the normal practice patterns of a
   97  provider’s professional peers or the national guidelines of a
   98  provider’s professional association. The vendor must be able to
   99  provide information and counseling to a provider whose practice
  100  patterns are outside the norms, in consultation with the agency,
  101  to improve patient care and reduce inappropriate utilization.
  102  The agency may mandate prior authorization, drug therapy
  103  management, or disease management participation for certain
  104  populations of Medicaid beneficiaries, certain drug classes, or
  105  particular drugs to prevent fraud, abuse, overuse, and possible
  106  dangerous drug interactions. The Pharmaceutical and Therapeutics
  107  Committee shall make recommendations to the agency on drugs for
  108  which prior authorization is required. The agency shall inform
  109  the Pharmaceutical and Therapeutics Committee of its decisions
  110  regarding drugs subject to prior authorization. The agency is
  111  authorized to limit the entities it contracts with or enrolls as
  112  Medicaid providers by developing a provider network through
  113  provider credentialing. The agency may competitively bid single
  114  source-provider contracts if procurement of goods or services
  115  results in demonstrated cost savings to the state without
  116  limiting access to care. The agency may limit its network based
  117  on the assessment of beneficiary access to care, provider
  118  availability, provider quality standards, time and distance
  119  standards for access to care, the cultural competence of the
  120  provider network, demographic characteristics of Medicaid
  121  beneficiaries, practice and provider-to-beneficiary standards,
  122  appointment wait times, beneficiary use of services, provider
  123  turnover, provider profiling, provider licensure history,
  124  previous program integrity investigations and findings, peer
  125  review, provider Medicaid policy and billing compliance records,
  126  clinical and medical record audits, and other factors. Providers
  127  are not entitled to enrollment in the Medicaid provider network.
  128  The agency shall determine instances in which allowing Medicaid
  129  beneficiaries to purchase durable medical equipment and other
  130  goods is less expensive to the Medicaid program than long-term
  131  rental of the equipment or goods. The agency may establish rules
  132  to facilitate purchases in lieu of long-term rentals in order to
  133  protect against fraud and abuse in the Medicaid program as
  134  defined in s. 409.913. The agency may seek federal waivers
  135  necessary to administer these policies.
  136         (1) The agency may contract with a provider service
  137  network, which must may be reimbursed on a fee-for-service or
  138  prepaid basis. Prepaid Provider service networks shall receive
  139  per-member, per-month payments. A provider service network that
  140  does not choose to be a prepaid plan shall receive fee-for
  141  service rates with a shared savings settlement. The fee-for
  142  service option shall be available to a provider service network
  143  only for the first 2 years of the plan’s operation or until the
  144  contract year beginning September 1, 2014, whichever is later.
  145  The agency shall annually conduct cost reconciliations to
  146  determine the amount of cost savings achieved by fee-for-service
  147  provider service networks for the dates of service in the period
  148  being reconciled. Only payments for covered services for dates
  149  of service within the reconciliation period and paid within 6
  150  months after the last date of service in the reconciliation
  151  period shall be included. The agency shall perform the necessary
  152  adjustments for the inclusion of claims incurred but not
  153  reported within the reconciliation for claims that could be
  154  received and paid by the agency after the 6-month claims
  155  processing time lag. The agency shall provide the results of the
  156  reconciliations to the fee-for-service provider service networks
  157  within 45 days after the end of the reconciliation period. The
  158  fee-for-service provider service networks shall review and
  159  provide written comments or a letter of concurrence to the
  160  agency within 45 days after receipt of the reconciliation
  161  results. This reconciliation shall be considered final.
  162         (a) A provider service network which is reimbursed by the
  163  agency on a prepaid basis shall be exempt from parts I and III
  164  of chapter 641 but must comply with the solvency requirements in
  165  s. 641.2261(2) and meet appropriate financial reserve, quality
  166  assurance, and patient rights requirements as established by the
  167  agency.
  168         (b) A provider service network is a network established or
  169  organized and operated by a health care provider, or group of
  170  affiliated health care providers, which provides a substantial
  171  proportion of the health care items and services under a
  172  contract directly through the provider or affiliated group of
  173  providers and may make arrangements with physicians or other
  174  health care professionals, health care institutions, or any
  175  combination of such individuals or institutions to assume all or
  176  part of the financial risk on a prospective basis for the
  177  provision of basic health services by the physicians, by other
  178  health professionals, or through the institutions. The health
  179  care providers must have a controlling interest in the governing
  180  body of the provider service network organization.
  181         (a)A provider service network is exempt from parts I and
  182  III of chapter 641 but must comply with the solvency
  183  requirements in s. 641.2261(2) and meet appropriate financial
  184  reserve, quality assurance, and patient rights requirements as
  185  established by the agency.
  186         (b)This subsection does not authorize the agency to
  187  contract with a provider service network outside of the
  188  procurement process described in s. 409.966.
  189         Section 2. Section 409.9124, Florida Statutes, is repealed.
  190         Section 3. Section 409.964, Florida Statutes, is amended to
  191  read:
  192         409.964 Managed care program; state plan; waivers.—The
  193  Medicaid program is established as a statewide, integrated
  194  managed care program for all covered services, including long
  195  term care services. The agency shall apply for and implement
  196  state plan amendments or waivers of applicable federal laws and
  197  regulations necessary to implement the program. Before seeking a
  198  waiver, the agency shall provide public notice and the
  199  opportunity for public comment and include public feedback in
  200  the waiver application. The agency shall hold one public meeting
  201  in each of the regions described in s. 409.966(2), and the time
  202  period for public comment for each region shall end no sooner
  203  than 30 days after the completion of the public meeting in that
  204  region.
  205         Section 4. Subsections (2), (3), and (4) of section
  206  409.966, Florida Statutes, are amended to read:
  207         409.966 Eligible plans; selection.—
  208         (2) ELIGIBLE PLAN SELECTION.—The agency shall select a
  209  limited number of eligible plans to participate in the Medicaid
  210  program using invitations to negotiate in accordance with s.
  211  287.057(1)(c). At least 90 days before issuing an invitation to
  212  negotiate, the agency shall compile and publish a databook
  213  consisting of a comprehensive set of utilization and spending
  214  data consistent with actuarial rate-setting practices and
  215  standards for the 3 most recent contract years consistent with
  216  the rate-setting periods for all Medicaid recipients by region
  217  or county. The source of the data in the databook report must
  218  include, at a minimum, the 24 most recent months of both
  219  historic fee-for-service claims and validated data from the
  220  Medicaid Encounter Data System. The statewide managed care
  221  program includes report must be available in electronic form and
  222  delineate utilization use by age, gender, eligibility group,
  223  geographic area, and aggregate clinical risk score. Separate and
  224  simultaneous procurements shall be conducted in each of the
  225  following regions:
  226         (a) Region A 1, which consists of Bay, Calhoun, Escambia,
  227  Okaloosa, Santa Rosa, and Walton Counties.
  228         (b) Region 2, which consists of Bay, Calhoun, Franklin,
  229  Gadsden, Gulf, Holmes, Jackson, Jefferson, Leon, Liberty,
  230  Madison, Okaloosa, Santa Rosa, Taylor, Wakulla, Walton, and
  231  Washington Counties.
  232         (b)(c) Region B 3, which consists of Alachua, Baker,
  233  Bradford, Citrus, Clay, Columbia, Dixie, Duval, Flagler,
  234  Gilchrist, Hamilton, Hernando, Lafayette, Lake, Levy, Marion,
  235  Nassau, Putnam, St. Johns, Sumter, Suwannee, and Union Counties.
  236         (d) Region 4, which consists of Baker, Clay, Duval,
  237  Flagler, Nassau, St. Johns, and Volusia Counties.
  238         (c)(e) Region C 5, which consists of Pasco and Pinellas
  239  Counties.
  240         (f) Region 6, which consists of Hardee, Highlands,
  241  Hillsborough, Manatee, Pasco, Pinellas, and Polk Counties.
  242         (d)(g) Region D 7, which consists of Brevard, Orange,
  243  Osceola, and Seminole Counties.
  244         (e)(h) Region E 8, which consists of Charlotte, Collier,
  245  DeSoto, Glades, Hendry, Lee, and Sarasota Counties.
  246         (f)(i) Region F 9, which consists of Indian River, Martin,
  247  Okeechobee, Palm Beach, and St. Lucie Counties.
  248         (g)(j) Region G 10, which consists of Broward County.
  249         (h)(k) Region H 11, which consists of Miami-Dade and Monroe
  250  Counties.
  251         (3) QUALITY SELECTION CRITERIA.—
  252         (a) The invitation to negotiate must specify the criteria
  253  and the relative weight of the criteria that will be used for
  254  determining the acceptability of the reply and guiding the
  255  selection of the organizations with which the agency negotiates.
  256  In addition to criteria established by the agency, the agency
  257  shall consider the following factors in the selection of
  258  eligible plans:
  259         1. Accreditation by the National Committee for Quality
  260  Assurance, the Joint Commission, or another nationally
  261  recognized accrediting body.
  262         2. Experience serving similar populations, including the
  263  organization’s record in achieving specific quality standards
  264  with similar populations.
  265         3. Availability and accessibility of primary care and
  266  specialty physicians in the provider network.
  267         4. Establishment of community partnerships with providers
  268  that create opportunities for reinvestment in community-based
  269  services.
  270         5. Organization commitment to quality improvement and
  271  documentation of achievements in specific quality improvement
  272  projects, including active involvement by organization
  273  leadership.
  274         6. Provision of additional benefits, particularly dental
  275  care and disease management, and other initiatives that improve
  276  health outcomes.
  277         7. Evidence that an eligible plan has obtained signed
  278  contracts or written agreements or signed contracts or has made
  279  substantial progress in establishing relationships with
  280  providers before the plan submits submitting a response.
  281         8. Comments submitted in writing by any enrolled Medicaid
  282  provider relating to a specifically identified plan
  283  participating in the procurement in the same region as the
  284  submitting provider.
  285         9. Documentation of policies and procedures for preventing
  286  fraud and abuse.
  287         10. The business relationship an eligible plan has with any
  288  other eligible plan that responds to the invitation to
  289  negotiate.
  290         (b) An eligible plan must disclose any business
  291  relationship it has with any other eligible plan that responds
  292  to the invitation to negotiate. The agency may not select plans
  293  in the same region for the same managed care program that have a
  294  business relationship with each other. Failure to disclose any
  295  business relationship shall result in disqualification from
  296  participation in any region for the first full contract period
  297  after the discovery of the business relationship by the agency.
  298  For the purpose of this section, “business relationship” means
  299  an ownership or controlling interest, an affiliate or subsidiary
  300  relationship, a common parent, or any mutual interest in any
  301  limited partnership, limited liability partnership, limited
  302  liability company, or other entity or business association,
  303  including all wholly or partially owned subsidiaries, majority
  304  owned subsidiaries, parent companies, or affiliates of such
  305  entities, business associations, or other enterprises, that
  306  exists for the purpose of making a profit.
  307         (c) After negotiations are conducted, the agency shall
  308  select the eligible plans that are determined to be responsive
  309  and provide the best value to the state. Preference shall be
  310  given to plans that:
  311         1. Have signed contracts with primary and specialty
  312  physicians in sufficient numbers to meet the specific standards
  313  established pursuant to s. 409.967(2)(c).
  314         2. Have well-defined programs for recognizing patient
  315  centered medical homes and providing for increased compensation
  316  for recognized medical homes, as defined by the plan.
  317         3. Are organizations that are based in and perform
  318  operational functions in this state, in-house or through
  319  contractual arrangements, by staff located in this state. Using
  320  a tiered approach, the highest number of points shall be awarded
  321  to a plan that has all or substantially all of its operational
  322  functions performed in the state. The second highest number of
  323  points shall be awarded to a plan that has a majority of its
  324  operational functions performed in the state. The agency may
  325  establish a third tier; however, preference points may not be
  326  awarded to plans that perform only community outreach, medical
  327  director functions, and state administrative functions in the
  328  state. For purposes of this subparagraph, operational functions
  329  include corporate headquarters, claims processing, member
  330  services, provider relations, utilization and prior
  331  authorization, case management, disease and quality functions,
  332  and finance and administration. For purposes of this
  333  subparagraph, the term “corporate headquarters” means the
  334  principal office of the organization, which may not be a
  335  subsidiary, directly or indirectly through one or more
  336  subsidiaries of, or a joint venture with, any other entity whose
  337  principal office is not located in the state.
  338         4. Have contracts or other arrangements for cancer disease
  339  management programs that have a proven record of clinical
  340  efficiencies and cost savings.
  341         5. Have contracts or other arrangements for diabetes
  342  disease management programs that have a proven record of
  343  clinical efficiencies and cost savings.
  344         6. Have a claims payment process that ensures that claims
  345  that are not contested or denied will be promptly paid pursuant
  346  to s. 641.3155.
  347         (d) For the first year of the first contract term, the
  348  agency shall negotiate capitation rates or fee for service
  349  payments with each plan in order to guarantee aggregate savings
  350  of at least 5 percent.
  351         1. For prepaid plans, determination of the amount of
  352  savings shall be calculated by comparison to the Medicaid rates
  353  that the agency paid managed care plans for similar populations
  354  in the same areas in the prior year. In regions containing no
  355  prepaid plans in the prior year, determination of the amount of
  356  savings shall be calculated by comparison to the Medicaid rates
  357  established and certified for those regions in the prior year.
  358         2. For provider service networks operating on a fee-for
  359  service basis, determination of the amount of savings shall be
  360  calculated by comparison to the Medicaid rates that the agency
  361  paid on a fee-for-service basis for the same services in the
  362  prior year.
  363         (e) To ensure managed care plan participation in Regions 1
  364  and 2, the agency shall award an additional contract to each
  365  plan with a contract award in Region 1 or Region 2. Such
  366  contract shall be in any other region in which the plan
  367  submitted a responsive bid and negotiates a rate acceptable to
  368  the agency. If a plan that is awarded an additional contract
  369  pursuant to this paragraph is subject to penalties pursuant to
  370  s. 409.967(2)(i) for activities in Region 1 or Region 2, the
  371  additional contract is automatically terminated 180 days after
  372  the imposition of the penalties. The plan must reimburse the
  373  agency for the cost of enrollment changes and other transition
  374  activities.
  375         (d)(f) The agency may not execute contracts with managed
  376  care plans at payment rates not supported by the General
  377  Appropriations Act.
  378         (4) ADMINISTRATIVE CHALLENGE.—Any eligible plan that
  379  participates in an invitation to negotiate in more than one
  380  region and is selected in at least one region may not begin
  381  serving Medicaid recipients in any region for which it was
  382  selected until all administrative challenges to procurements
  383  required by this section to which the eligible plan is a party
  384  have been finalized. If the number of plans selected is less
  385  than the maximum amount of plans permitted in the region, the
  386  agency may contract with other selected plans in the region not
  387  participating in the administrative challenge before resolution
  388  of the administrative challenge. For purposes of this
  389  subsection, an administrative challenge is finalized if an order
  390  granting voluntary dismissal with prejudice has been entered by
  391  any court established under Article V of the State Constitution
  392  or by the Division of Administrative Hearings, a final order has
  393  been entered into by the agency and the deadline for appeal has
  394  expired, a final order has been entered by the First District
  395  Court of Appeal and the time to seek any available review by the
  396  Florida Supreme Court has expired, or a final order has been
  397  entered by the Florida Supreme Court and a warrant has been
  398  issued.
  399         Section 5. Paragraphs (c) and (f) of subsection (2) of
  400  section 409.967, Florida Statutes, are amended to read:
  401         409.967 Managed care plan accountability.—
  402         (2) The agency shall establish such contract requirements
  403  as are necessary for the operation of the statewide managed care
  404  program. In addition to any other provisions the agency may deem
  405  necessary, the contract must require:
  406         (c) Access.—
  407         1. The agency shall establish specific standards for the
  408  number, type, and regional distribution of providers in managed
  409  care plan networks to ensure access to care for both adults and
  410  children. Each plan must maintain a regionwide network of
  411  providers in sufficient numbers to meet the access standards for
  412  specific medical services for all recipients enrolled in the
  413  plan. The exclusive use of mail-order pharmacies may not be
  414  sufficient to meet network access standards. Consistent with the
  415  standards established by the agency, provider networks may
  416  include providers located outside the region. A plan may
  417  contract with a new hospital facility before the date the
  418  hospital becomes operational if the hospital has commenced
  419  construction, will be licensed and operational by January 1,
  420  2013, and a final order has issued in any civil or
  421  administrative challenge. Each plan shall establish and maintain
  422  an accurate and complete electronic database of contracted
  423  providers, including information about licensure or
  424  registration, locations and hours of operation, specialty
  425  credentials and other certifications, specific performance
  426  indicators, and such other information as the agency deems
  427  necessary. The database must be available online to both the
  428  agency and the public and have the capability to compare the
  429  availability of providers to network adequacy standards and to
  430  accept and display feedback from each provider’s patients. Each
  431  plan shall submit quarterly reports to the agency identifying
  432  the number of enrollees assigned to each primary care provider.
  433  The agency shall conduct, or contract for, systematic and
  434  continuous testing of the provider network databases maintained
  435  by each plan to confirm accuracy, confirm that behavioral health
  436  providers are accepting enrollees, and confirm that enrollees
  437  have access to behavioral health services.
  438         2. Each managed care plan must publish any prescribed drug
  439  formulary or preferred drug list on the plan’s website in a
  440  manner that is accessible to and searchable by enrollees and
  441  providers. The plan must update the list within 24 hours after
  442  making a change. Each plan must ensure that the prior
  443  authorization process for prescribed drugs is readily accessible
  444  to health care providers, including posting appropriate contact
  445  information on its website and providing timely responses to
  446  providers. For Medicaid recipients diagnosed with hemophilia who
  447  have been prescribed anti-hemophilic-factor replacement
  448  products, the agency shall provide for those products and
  449  hemophilia overlay services through the agency’s hemophilia
  450  disease management program.
  451         3. Managed care plans, and their fiscal agents or
  452  intermediaries, must accept prior authorization requests for any
  453  service electronically.
  454         4. Managed care plans serving children in the care and
  455  custody of the Department of Children and Families must maintain
  456  complete medical, dental, and behavioral health encounter
  457  information and participate in making such information available
  458  to the department or the applicable contracted community-based
  459  care lead agency for use in providing comprehensive and
  460  coordinated case management. The agency and the department shall
  461  establish an interagency agreement to provide guidance for the
  462  format, confidentiality, recipient, scope, and method of
  463  information to be made available and the deadlines for
  464  submission of the data. The scope of information available to
  465  the department shall be the data that managed care plans are
  466  required to submit to the agency. The agency shall determine the
  467  plan’s compliance with standards for access to medical, dental,
  468  and behavioral health services; the use of medications; and
  469  followup on all medically necessary services recommended as a
  470  result of early and periodic screening, diagnosis, and
  471  treatment.
  472         (f) Continuous improvement.—The agency shall establish
  473  specific performance standards and expected milestones or
  474  timelines for improving performance over the term of the
  475  contract.
  476         1. Each managed care plan shall establish an internal
  477  health care quality improvement system, including enrollee
  478  satisfaction and disenrollment surveys. The quality improvement
  479  system must include incentives and disincentives for network
  480  providers.
  481         2. Each plan must collect and report the Health Plan
  482  Employer Data and Information Set (HEDIS) measures, as specified
  483  by the agency. These measures must be published on the plan’s
  484  website in a manner that allows recipients to reliably compare
  485  the performance of plans. The agency shall use the HEDIS
  486  measures as a tool to monitor plan performance.
  487         3. Each managed care plan must be accredited by the
  488  National Committee for Quality Assurance, the Joint Commission,
  489  or another nationally recognized accrediting body, or have
  490  initiated the accreditation process, within 1 year after the
  491  contract is executed. For any plan not accredited within 18
  492  months after executing the contract, the agency shall suspend
  493  automatic assignment under s. 409.977 and 409.984.
  494         4. By the end of the fourth year of the first contract
  495  term, the agency shall issue a request for information to
  496  determine whether cost savings could be achieved by contracting
  497  for plan oversight and monitoring, including analysis of
  498  encounter data, assessment of performance measures, and
  499  compliance with other contractual requirements.
  500         Section 6. Subsection (2) of section 409.968, Florida
  501  Statutes, is amended to read:
  502         409.968 Managed care plan payments.—
  503         (2) Provider service networks must may be prepaid plans and
  504  receive per-member, per-month payments negotiated pursuant to
  505  the procurement process described in s. 409.966. Provider
  506  service networks that choose not to be prepaid plans shall
  507  receive fee-for-service rates with a shared savings settlement.
  508  The fee-for-service option shall be available to a provider
  509  service network only for the first 2 years of its operation. The
  510  agency shall annually conduct cost reconciliations to determine
  511  the amount of cost savings achieved by fee-for-service provider
  512  service networks for the dates of service within the period
  513  being reconciled. Only payments for covered services for dates
  514  of service within the reconciliation period and paid within 6
  515  months after the last date of service in the reconciliation
  516  period must be included. The agency shall perform the necessary
  517  adjustments for the inclusion of claims incurred but not
  518  reported within the reconciliation period for claims that could
  519  be received and paid by the agency after the 6-month claims
  520  processing time lag. The agency shall provide the results of the
  521  reconciliations to the fee-for-service provider service networks
  522  within 45 days after the end of the reconciliation period. The
  523  fee-for-service provider service networks shall review and
  524  provide written comments or a letter of concurrence to the
  525  agency within 45 days after receipt of the reconciliation
  526  results. This reconciliation is considered final.
  527         Section 7. Subsections (3) and (4) of section 409.973,
  528  Florida Statutes, are amended to read:
  529         409.973 Benefits.—
  530         (3) HEALTHY BEHAVIORS.—Each plan operating in the managed
  531  medical assistance program shall establish a program to
  532  encourage and reward healthy behaviors. At a minimum, each plan
  533  must establish a medically approved tobacco smoking cessation
  534  program, a medically directed weight loss program, and a
  535  medically approved alcohol recovery program or substance abuse
  536  recovery program that must include, but may not be limited to,
  537  opioid abuse recovery. Each plan must identify enrollees who
  538  smoke, are morbidly obese, or are diagnosed with alcohol or
  539  substance abuse in order to establish written agreements to
  540  secure the enrollees’ commitment to participation in these
  541  programs.
  542         (4) PRIMARY CARE INITIATIVE.—Each plan operating in the
  543  managed medical assistance program shall establish a program to
  544  encourage enrollees to establish a relationship with their
  545  primary care provider. Each plan shall:
  546         (a) Provide information to each enrollee on the importance
  547  of and procedure for selecting a primary care provider, and
  548  thereafter automatically assign to a primary care provider any
  549  enrollee who fails to choose a primary care provider.
  550         (b) If the enrollee was not a Medicaid recipient before
  551  enrollment in the plan, assist the enrollee in scheduling an
  552  appointment with the primary care provider. If possible the
  553  appointment should be made within 30 days after enrollment in
  554  the plan. For enrollees who become eligible for Medicaid between
  555  January 1, 2014, and December 31, 2015, the appointment should
  556  be scheduled within 6 months after enrollment in the plan.
  557         (c) Report to the agency the number of enrollees assigned
  558  to each primary care provider within the plan’s network.
  559         (d) Report to the agency the number of enrollees who have
  560  not had an appointment with their primary care provider within
  561  their first year of enrollment.
  562         (e) Report to the agency the number of emergency room
  563  visits by enrollees who have not had at least one appointment
  564  with their primary care provider.
  565         Section 8. Subsections (1) and (2) of section 409.974,
  566  Florida Statutes, are amended to read:
  567         409.974 Eligible plans.—
  568         (1) ELIGIBLE PLAN SELECTION.—The agency shall select
  569  eligible plans for the managed medical assistance program
  570  through the procurement process described in s. 409.966 through
  571  a single statewide procurement. The agency may award contracts
  572  to plans selected through the procurement process either on a
  573  regional or statewide basis. The awards must include at least
  574  one provider service network in each of the eight regions
  575  outlined in this subsection. The agency shall procure:
  576         (a) At least 3 plans and up to 4 plans for Region A.
  577         (b) At least 3 plans and up to 6 plans for Region B.
  578         (c) At least 5 plans and up to 10 plans for Region C.
  579         (d) At least 3 plans and up to 6 plans for Region D.
  580         (e) At least 3 plans and up to 4 plans for Region E.
  581         (f) At least 3 plans and up to 5 plans for Region F.
  582         (g) At least 3 plans and up to 5 plans for Region G.
  583         (h) At least 5 plans and up to 10 plans for Region H. The
  584  agency shall notice invitations to negotiate no later than
  585  January 1, 2013.
  586         (a) The agency shall procure two plans for Region 1. At
  587  least one plan shall be a provider service network if any
  588  provider service networks submit a responsive bid.
  589         (b) The agency shall procure two plans for Region 2. At
  590  least one plan shall be a provider service network if any
  591  provider service networks submit a responsive bid.
  592         (c) The agency shall procure at least three plans and up to
  593  five plans for Region 3. At least one plan must be a provider
  594  service network if any provider service networks submit a
  595  responsive bid.
  596         (d) The agency shall procure at least three plans and up to
  597  five plans for Region 4. At least one plan must be a provider
  598  service network if any provider service networks submit a
  599  responsive bid.
  600         (e) The agency shall procure at least two plans and up to
  601  four plans for Region 5. At least one plan must be a provider
  602  service network if any provider service networks submit a
  603  responsive bid.
  604         (f) The agency shall procure at least four plans and up to
  605  seven plans for Region 6. At least one plan must be a provider
  606  service network if any provider service networks submit a
  607  responsive bid.
  608         (g) The agency shall procure at least three plans and up to
  609  six plans for Region 7. At least one plan must be a provider
  610  service network if any provider service networks submit a
  611  responsive bid.
  612         (h) The agency shall procure at least two plans and up to
  613  four plans for Region 8. At least one plan must be a provider
  614  service network if any provider service networks submit a
  615  responsive bid.
  616         (i) The agency shall procure at least two plans and up to
  617  four plans for Region 9. At least one plan must be a provider
  618  service network if any provider service networks submit a
  619  responsive bid.
  620         (j) The agency shall procure at least two plans and up to
  621  four plans for Region 10. At least one plan must be a provider
  622  service network if any provider service networks submit a
  623  responsive bid.
  624         (k) The agency shall procure at least five plans and up to
  625  10 plans for Region 11. At least one plan must be a provider
  626  service network if any provider service networks submit a
  627  responsive bid.
  628  
  629  If no provider service network submits a responsive bid, the
  630  agency shall procure no more than one less than the maximum
  631  number of eligible plans permitted in that region. Within 12
  632  months after the initial invitation to negotiate, the agency
  633  shall attempt to procure a provider service network. The agency
  634  shall notice another invitation to negotiate only with provider
  635  service networks in those regions where no provider service
  636  network has been selected.
  637         (2) QUALITY SELECTION CRITERIA.—In addition to the criteria
  638  established in s. 409.966, the agency shall consider evidence
  639  that an eligible plan has written agreements or signed contracts
  640  or has made substantial progress in establishing relationships
  641  with providers before the plan submitting a response. The agency
  642  shall evaluate and give special weight to evidence of signed
  643  contracts with essential providers as defined by the agency
  644  pursuant to s. 409.975(1). The agency shall exercise a
  645  preference for plans with a provider network in which over 10
  646  percent of the providers use electronic health records, as
  647  defined in s. 408.051. When all other factors are equal, the
  648  agency shall consider whether the organization has a contract to
  649  provide managed long-term care services in the same region and
  650  shall exercise a preference for such plans.
  651         Section 9. Paragraph (b) of subsection (1) of section
  652  409.975, Florida Statutes, is amended to read:
  653         409.975 Managed care plan accountability.—In addition to
  654  the requirements of s. 409.967, plans and providers
  655  participating in the managed medical assistance program shall
  656  comply with the requirements of this section.
  657         (1) PROVIDER NETWORKS.—Managed care plans must develop and
  658  maintain provider networks that meet the medical needs of their
  659  enrollees in accordance with standards established pursuant to
  660  s. 409.967(2)(c). Except as provided in this section, managed
  661  care plans may limit the providers in their networks based on
  662  credentials, quality indicators, and price.
  663         (b) Certain providers are statewide resources and essential
  664  providers for all managed care plans in all regions. All managed
  665  care plans must include these essential providers in their
  666  networks. Statewide essential providers include:
  667         1. Faculty plans of Florida medical schools.
  668         2. Regional perinatal intensive care centers as defined in
  669  s. 383.16(2).
  670         3. Hospitals licensed as specialty children’s hospitals as
  671  defined in s. 395.002(28).
  672         4. Accredited and integrated systems serving medically
  673  complex children which comprise separately licensed, but
  674  commonly owned, health care providers delivering at least the
  675  following services: medical group home, in-home and outpatient
  676  nursing care and therapies, pharmacy services, durable medical
  677  equipment, and Prescribed Pediatric Extended Care.
  678         5. Florida cancer hospitals that meet the criteria in 42
  679  U.S.C. s. 1395ww(d)(1)(B)(v).
  680  
  681  Managed care plans that have not contracted with all statewide
  682  essential providers in all regions as of the first date of
  683  recipient enrollment must continue to negotiate in good faith.
  684  Payments to physicians on the faculty of nonparticipating
  685  Florida medical schools shall be made at the applicable Medicaid
  686  rate. Payments for services rendered by regional perinatal
  687  intensive care centers shall be made at the applicable Medicaid
  688  rate as of the first day of the contract between the agency and
  689  the plan. Except for payments for emergency services, payments
  690  to nonparticipating specialty children’s hospitals shall equal
  691  the highest rate established by contract between that provider
  692  and any other Medicaid managed care plan.
  693         Section 10. Subsections (1), (2), (4), and (5) of section
  694  409.977, Florida Statutes, are amended to read:
  695         409.977 Enrollment.—
  696         (1) The agency shall automatically enroll into a managed
  697  care plan those Medicaid recipients who do not voluntarily
  698  choose a plan pursuant to s. 409.969. The agency shall
  699  automatically enroll recipients in plans that meet or exceed the
  700  performance or quality standards established pursuant to s.
  701  409.967 and may not automatically enroll recipients in a plan
  702  that is deficient in those performance or quality standards.
  703  When a specialty plan is available to accommodate a specific
  704  condition or diagnosis of a recipient, the agency shall assign
  705  the recipient to that plan. In the first year of the first
  706  contract term only, if a recipient was previously enrolled in a
  707  plan that is still available in the region, the agency shall
  708  automatically enroll the recipient in that plan unless an
  709  applicable specialty plan is available. Except as otherwise
  710  provided in this part, the agency may not engage in practices
  711  that are designed to favor one managed care plan over another.
  712         (2) When automatically enrolling recipients in managed care
  713  plans, if a recipient was enrolled in a plan immediately before
  714  the recipient′s choice period and that plan is still available
  715  in the region, the agency must maintain the recipient′s
  716  enrollment in that plan unless an applicable specialty plan is
  717  available. Otherwise, the agency shall automatically enroll
  718  based on the following criteria:
  719         (a) Whether the plan has sufficient network capacity to
  720  meet the needs of the recipients.
  721         (b) Whether the recipient has previously received services
  722  from one of the plan’s primary care providers.
  723         (c) Whether primary care providers in one plan are more
  724  geographically accessible to the recipient’s residence than
  725  those in other plans.
  726         (4) The agency shall develop a process to enable a
  727  recipient with access to employer-sponsored health care coverage
  728  to opt out of all managed care plans and to use Medicaid
  729  financial assistance to pay for the recipient’s share of the
  730  cost in such employer-sponsored coverage. Contingent upon
  731  federal approval, The agency shall also enable recipients with
  732  access to other insurance or related products providing access
  733  to health care services created pursuant to state law, including
  734  any product available under the Florida Health Choices Program,
  735  or any health exchange, to opt out. The amount of financial
  736  assistance provided for each recipient may not exceed the amount
  737  of the Medicaid premium that would have been paid to a managed
  738  care plan for that recipient. The agency shall seek federal
  739  approval to require Medicaid recipients with access to employer
  740  sponsored health care coverage to enroll in that coverage and
  741  use Medicaid financial assistance to pay for the recipient’s
  742  share of the cost for such coverage. The amount of financial
  743  assistance provided for each recipient may not exceed the amount
  744  of the Medicaid premium that would have been paid to a managed
  745  care plan for that recipient.
  746         (5) Specialty plans serving children in the care and
  747  custody of the department may serve such children as long as
  748  they remain in care, including those remaining in extended
  749  foster care pursuant to s. 39.6251, or are in subsidized
  750  adoption and continue to be eligible for Medicaid pursuant to s.
  751  409.903, or are receiving guardianship assistance payments and
  752  continue to be eligible for Medicaid pursuant to s. 409.903.
  753         Section 11. Subsection (2) of section 409.981, Florida
  754  Statutes, is amended to read:
  755         409.981 Eligible long-term care plans.—
  756         (2) ELIGIBLE PLAN SELECTION.—The agency shall select
  757  eligible plans for the long-term care managed care program
  758  through the procurement process described in s. 409.966 through
  759  a single statewide procurement. The agency may award contracts
  760  to plans selected through the procurement process on a regional
  761  or statewide basis. The awards must include at least one
  762  provider service network in each of the eight regions outlined
  763  in this subsection. The agency shall procure:
  764         (a) At least 3 plans and up to 4 plans for Region A.
  765         (b) At least 3 plans and up to 6 plans for Region B.
  766         (c) At least 5 plans and up to 10 plans for Region C.
  767         (d) At least 3 plans and up to 6 plans for Region D.
  768         (e) At least 3 plans and up to 4 plans for Region E.
  769         (f) At least 3 plans and up to 5 plans for Region F.
  770         (g) At least 3 plans and up to 4 plans for Region G.
  771         (h) At least 5 plans and up to 10 plans for Region H.
  772         Two plans for Region 1. At least one plan must be a
  773  provider service network if any provider service networks submit
  774  a responsive bid.
  775         (b) Two plans for Region 2. At least one plan must be a
  776  provider service network if any provider service networks submit
  777  a responsive bid.
  778         (c) At least three plans and up to five plans for Region 3.
  779  At least one plan must be a provider service network if any
  780  provider service networks submit a responsive bid.
  781         (d) At least three plans and up to five plans for Region 4.
  782  At least one plan must be a provider service network if any
  783  provider service network submits a responsive bid.
  784         (e) At least two plans and up to four plans for Region 5.
  785  At least one plan must be a provider service network if any
  786  provider service networks submit a responsive bid.
  787         (f) At least four plans and up to seven plans for Region 6.
  788  At least one plan must be a provider service network if any
  789  provider service networks submit a responsive bid.
  790         (g) At least three plans and up to six plans for Region 7.
  791  At least one plan must be a provider service network if any
  792  provider service networks submit a responsive bid.
  793         (h) At least two plans and up to four plans for Region 8.
  794  At least one plan must be a provider service network if any
  795  provider service networks submit a responsive bid.
  796         (i) At least two plans and up to four plans for Region 9.
  797  At least one plan must be a provider service network if any
  798  provider service networks submit a responsive bid.
  799         (j) At least two plans and up to four plans for Region 10.
  800  At least one plan must be a provider service network if any
  801  provider service networks submit a responsive bid.
  802         (k) At least five plans and up to 10 plans for Region 11.
  803  At least one plan must be a provider service network if any
  804  provider service networks submit a responsive bid.
  805  
  806  If no provider service network submits a responsive bid in a
  807  region other than Region 1 or Region 2, the agency shall procure
  808  no more than one less than the maximum number of eligible plans
  809  permitted in that region. Within 12 months after the initial
  810  invitation to negotiate, the agency shall attempt to procure a
  811  provider service network. The agency shall notice another
  812  invitation to negotiate only with provider service networks in
  813  regions where no provider service network has been selected.
  814         Section 12. Subsection (4) of section 409.8132, Florida
  815  Statutes, is amended to read:
  816         409.8132 Medikids program component.—
  817         (4) APPLICABILITY OF LAWS RELATING TO MEDICAID.—The
  818  provisions of ss. 409.902, 409.905, 409.906, 409.907, 409.908,
  819  409.912, 409.9121, 409.9122, 409.9123, 409.9124, 409.9127,
  820  409.9128, 409.913, 409.916, 409.919, 409.920, and 409.9205 apply
  821  to the administration of the Medikids program component of the
  822  Florida Kidcare program, except that s. 409.9122 applies to
  823  Medikids as modified by the provisions of subsection (7).
  824         Section 13. For the purpose of incorporating the amendment
  825  made by this act to section 409.912, Florida Statutes, in
  826  references thereto, subsections (1), (7), (13), and (14) of
  827  section 409.962, Florida Statutes, are reenacted to read:
  828         409.962 Definitions.—As used in this part, except as
  829  otherwise specifically provided, the term:
  830         (1) “Accountable care organization” means an entity
  831  qualified as an accountable care organization in accordance with
  832  federal regulations, and which meets the requirements of a
  833  provider service network as described in s. 409.912(1).
  834         (7) “Eligible plan” means a health insurer authorized under
  835  chapter 624, an exclusive provider organization authorized under
  836  chapter 627, a health maintenance organization authorized under
  837  chapter 641, or a provider service network authorized under s.
  838  409.912(1) or an accountable care organization authorized under
  839  federal law. For purposes of the managed medical assistance
  840  program, the term also includes the Children’s Medical Services
  841  Network authorized under chapter 391 and entities qualified
  842  under 42 C.F.R. part 422 as Medicare Advantage Preferred
  843  Provider Organizations, Medicare Advantage Provider-sponsored
  844  Organizations, Medicare Advantage Health Maintenance
  845  Organizations, Medicare Advantage Coordinated Care Plans, and
  846  Medicare Advantage Special Needs Plans, and the Program of All
  847  inclusive Care for the Elderly.
  848         (13) “Prepaid plan” means a managed care plan that is
  849  licensed or certified as a risk-bearing entity, or qualified
  850  pursuant to s. 409.912(1), in the state and is paid a
  851  prospective per-member, per-month payment by the agency.
  852         (14) “Provider service network” means an entity qualified
  853  pursuant to s. 409.912(1) of which a controlling interest is
  854  owned by a health care provider, or group of affiliated
  855  providers, or a public agency or entity that delivers health
  856  services. Health care providers include Florida-licensed health
  857  care professionals or licensed health care facilities, federally
  858  qualified health care centers, and home health care agencies.
  859         Section 14. For the purpose of incorporating the amendment
  860  made by this act to section 409.912, Florida Statutes, in a
  861  reference thereto, subsection (22) of section 641.19, Florida
  862  Statutes, is reenacted to read:
  863         641.19 Definitions.—As used in this part, the term:
  864         (22) “Provider service network” means a network authorized
  865  under s. 409.912(1), reimbursed on a prepaid basis, operated by
  866  a health care provider or group of affiliated health care
  867  providers, and which directly provides health care services
  868  under a Medicare, Medicaid, or Healthy Kids contract.
  869         Section 15. For the purpose of incorporating the amendments
  870  made by this act to section 409.981, Florida Statutes, in
  871  references thereto, paragraphs (h), (i), and (j) of subsection
  872  (3) and subsection (11) of section 430.2053, Florida Statutes,
  873  are reenacted to read:
  874         430.2053 Aging resource centers.—
  875         (3) The duties of an aging resource center are to:
  876         (h) Assist clients who request long-term care services in
  877  being evaluated for eligibility for enrollment in the Medicaid
  878  long-term care managed care program as eligible plans become
  879  available in each of the regions pursuant to s. 409.981(2).
  880         (i) Provide enrollment and coverage information to Medicaid
  881  managed long-term care enrollees as qualified plans become
  882  available in each of the regions pursuant to s. 409.981(2).
  883         (j) Assist Medicaid recipients enrolled in the Medicaid
  884  long-term care managed care program with informally resolving
  885  grievances with a managed care network and assist Medicaid
  886  recipients in accessing the managed care network’s formal
  887  grievance process as eligible plans become available in each of
  888  the regions defined in s. 409.981(2).
  889         (11) In an area in which the department has designated an
  890  area agency on aging as an aging resource center, the department
  891  and the agency shall not make payments for the services listed
  892  in subsection (9) and the Long-Term Care Community Diversion
  893  Project for such persons who were not screened and enrolled
  894  through the aging resource center. The department shall cease
  895  making payments for recipients in eligible plans as eligible
  896  plans become available in each of the regions defined in s.
  897  409.981(2).
  898         Section 16. This act shall take effect July 1, 2022.