Florida Senate - 2023 SB 2510 By the Committee on Appropriations 576-03180-23 20232510__ 1 A bill to be entitled 2 An act relating to health; amending s. 296.37, F.S.; 3 increasing the income threshold for certain 4 contributions required by residents of veterans’ 5 nursing homes; amending s. 409.814, F.S.; revising 6 eligibility conditions for participation in the 7 Florida Kidcare program; amending s. 409.908, F.S.; 8 revising the payment methodology for a certain 9 component of the state Title XIX Long-Term Care 10 Reimbursement Plan for nursing home care; amending s. 11 409.909, F.S.; establishing the Slots for Doctors 12 Program for a specified purpose; requiring the Agency 13 for Health Care Administration to allocate a specified 14 amount to hospitals and qualifying institutions for 15 certain newly created resident positions for specified 16 physician specialties or subspecialties; providing 17 construction; prohibiting the use of allocated funds 18 under the program for resident positions that have 19 previously received certain other funding; amending s. 20 409.967, F.S.; revising the criteria for determining 21 achieved savings rebates for purposes of Medicaid 22 prepaid plans; amending s. 430.204, F.S.; authorizing 23 area agencies on aging to carry forward a specified 24 percentage of documented unexpended state funds to a 25 subsequent fiscal year, subject to certain conditions; 26 requiring the remainder of such state funds to be 27 returned to the Department of Elderly Affairs; 28 providing an effective date. 29 30 Be It Enacted by the Legislature of the State of Florida: 31 32 Section 1. Subsection (1) of section 296.37, Florida 33 Statutes, is amended to read: 34 296.37 Residents; contribution to support.— 35 (1) Every resident of the home who receives a pension, 36 compensation, or gratuity from the United States Government, or 37 income from any other source of more than $160$130per month, 38 shall contribute to his or her maintenance and support while a 39 resident of the home in accordance with a schedule of payment 40 determined by the administrator and approved by the director. 41 The total amount of such contributions shall be to the fullest 42 extent possible but may not exceed the actual cost of operating 43 and maintaining the home. 44 Section 2. Subsection (7) of section 409.814, Florida 45 Statutes, is amended to read: 46 409.814 Eligibility.—A child who has not reached 19 years 47 of age whose family income is equal to or below 200 percent of 48 the federal poverty level is eligible for the Florida Kidcare 49 program as provided in this section. If an enrolled individual 50 is determined to be ineligible for coverage, he or she must be 51 immediately disenrolled from the respective Florida Kidcare 52 program component. 53 (7) A child whose family income is above 200 percent of the 54 federal poverty level or a child who is excluded underthe55provisions ofsubsection (5) may participate in the Florida 56 Kidcare program as provided in s. 409.8132 or, if the child is 57 ineligible for Medikids by reason of age, in the Florida Healthy 58 Kids program, subject to the following: 59 (a) The family is not eligible for premium assistance 60 payments and must pay the full cost of the combined-risk 61 premium, including any administrative costs. 62 (b) The board of directors of the Florida Healthy Kids 63 Corporation may offer a reduced benefit package to these 64 children in order to limit program costs for such families. 65 Section 3. Paragraph (b) of subsection (2) of section 66 409.908, Florida Statutes, is amended to read: 67 409.908 Reimbursement of Medicaid providers.—Subject to 68 specific appropriations, the agency shall reimburse Medicaid 69 providers, in accordance with state and federal law, according 70 to methodologies set forth in the rules of the agency and in 71 policy manuals and handbooks incorporated by reference therein. 72 These methodologies may include fee schedules, reimbursement 73 methods based on cost reporting, negotiated fees, competitive 74 bidding pursuant to s. 287.057, and other mechanisms the agency 75 considers efficient and effective for purchasing services or 76 goods on behalf of recipients. If a provider is reimbursed based 77 on cost reporting and submits a cost report late and that cost 78 report would have been used to set a lower reimbursement rate 79 for a rate semester, then the provider’s rate for that semester 80 shall be retroactively calculated using the new cost report, and 81 full payment at the recalculated rate shall be effected 82 retroactively. Medicare-granted extensions for filing cost 83 reports, if applicable, shall also apply to Medicaid cost 84 reports. Payment for Medicaid compensable services made on 85 behalf of Medicaid-eligible persons is subject to the 86 availability of moneys and any limitations or directions 87 provided for in the General Appropriations Act or chapter 216. 88 Further, nothing in this section shall be construed to prevent 89 or limit the agency from adjusting fees, reimbursement rates, 90 lengths of stay, number of visits, or number of services, or 91 making any other adjustments necessary to comply with the 92 availability of moneys and any limitations or directions 93 provided for in the General Appropriations Act, provided the 94 adjustment is consistent with legislative intent. 95 (2) 96 (b) Subject to any limitations or directions in the General 97 Appropriations Act, the agency shall establish and implement a 98 state Title XIX Long-Term Care Reimbursement Plan for nursing 99 home care in order to provide care and services in conformance 100 with the applicable state and federal laws, rules, regulations, 101 and quality and safety standards and to ensure that individuals 102 eligible for medical assistance have reasonable geographic 103 access to such care. 104 1. The agency shall amend the long-term care reimbursement 105 plan and cost reporting system to create direct care and 106 indirect care subcomponents of the patient care component of the 107 per diem rate. These two subcomponents together shall equal the 108 patient care component of the per diem rate. Separate prices 109 shall be calculated for each patient care subcomponent, 110 initially based on the September 2016 rate setting cost reports 111 and subsequently based on the most recently audited cost report 112 used during a rebasing year. The direct care subcomponent of the 113 per diem rate for any providers still being reimbursed on a cost 114 basis shall be limited by the cost-based class ceiling, and the 115 indirect care subcomponent may be limited by the lower of the 116 cost-based class ceiling, the target rate class ceiling, or the 117 individual provider target. The ceilings and targets apply only 118 to providers being reimbursed on a cost-based system. Effective 119 October 1, 2018, a prospective payment methodology shall be 120 implemented for rate setting purposes with the following 121 parameters: 122 a. Peer Groups, including: 123 (I) North-SMMC Regions 1-9, less Palm Beach and Okeechobee 124 Counties; and 125 (II) South-SMMC Regions 10-11, plus Palm Beach and 126 Okeechobee Counties. 127 b. Percentage of Median Costs based on the cost reports 128 used for September 2016 rate setting: 129 (I) Direct Care Costs........................100 percent. 130 (II) Indirect Care Costs......................92 percent. 131 (III) Operating Costs.........................86 percent. 132 c. Floors: 133 (I) Direct Care Component.....................95 percent. 134 (II) Indirect Care Component................92.5 percent. 135 (III) Operating Component...........................None. 136 d. Pass-through Payments..................Real Estate and 137 ...............................................Personal Property 138 ...................................Taxes and Property Insurance. 139 e. Quality Incentive Program Payment 140 Pool...................................106percent of September 141 .......................................2016 non-property related 142 ................................payments of included facilities. 143 f. Quality Score Threshold to Quality for Quality Incentive 144 Payment..................20th percentile of included facilities. 145 g. Fair Rental Value System Payment Parameters: 146 (I) Building Value per Square Foot based on 2018 RS Means. 147 (II) Land Valuation...10 percent of Gross Building value. 148 (III) Facility Square Footage......Actual Square Footage. 149 (IV) Moveable Equipment Allowance.........$8,000 per bed. 150 (V) Obsolescence Factor......................1.5 percent. 151 (VI) Fair Rental Rate of Return................8 percent. 152 (VII) Minimum Occupancy.......................90 percent. 153 (VIII) Maximum Facility Age.....................40 years. 154 (IX) Minimum Square Footage per Bed..................350. 155 (X) Maximum Square Footage for Bed...................500. 156 (XI) Minimum Cost of a renovation/replacements$500 per bed. 157 h. Ventilator Supplemental payment of $200 per Medicaid day 158 of 40,000 ventilator Medicaid days per fiscal year. 159 2. The direct care subcomponent shall include salaries and 160 benefits of direct care staff providing nursing services 161 including registered nurses, licensed practical nurses, and 162 certified nursing assistants who deliver care directly to 163 residents in the nursing home facility, allowable therapy costs, 164 and dietary costs. This excludes nursing administration, staff 165 development, the staffing coordinator, and the administrative 166 portion of the minimum data set and care plan coordinators. The 167 direct care subcomponent also includes medically necessary 168 dental care, vision care, hearing care, and podiatric care. 169 3. All other patient care costs shall be included in the 170 indirect care cost subcomponent of the patient care per diem 171 rate, including complex medical equipment, medical supplies, and 172 other allowable ancillary costs. Costs may not be allocated 173 directly or indirectly to the direct care subcomponent from a 174 home office or management company. 175 4. On July 1 of each year, the agency shall report to the 176 Legislature direct and indirect care costs, including average 177 direct and indirect care costs per resident per facility and 178 direct care and indirect care salaries and benefits per category 179 of staff member per facility. 180 5. Every fourth year, the agency shall rebase nursing home 181 prospective payment rates to reflect changes in cost based on 182 the most recently audited cost report for each participating 183 provider. 184 6. A direct care supplemental payment may be made to 185 providers whose direct care hours per patient day are above the 186 80th percentile and who provide Medicaid services to a larger 187 percentage of Medicaid patients than the state average. 188 7. For the period beginning on October 1, 2018, and ending 189 on September 30, 2021, the agency shall reimburse providers the 190 greater of their September 2016 cost-based rate or their 191 prospective payment rate. Effective October 1, 2021, the agency 192 shall reimburse providers the greater of 95 percent of their 193 cost-based rate or their rebased prospective payment rate, using 194 the most recently audited cost report for each facility. This 195 subparagraph shall expire September 30, 2023. 196 8. Pediatric, Florida Department of Veterans Affairs, and 197 government-owned facilities are exempt from the pricing model 198 established in this subsection and shall remain on a cost-based 199 prospective payment system. Effective October 1, 2018, the 200 agency shall set rates for all facilities remaining on a cost 201 based prospective payment system using each facility’s most 202 recently audited cost report, eliminating retroactive 203 settlements. 204 205 It is the intent of the Legislature that the reimbursement plan 206 achieve the goal of providing access to health care for nursing 207 home residents who require large amounts of care while 208 encouraging diversion services as an alternative to nursing home 209 care for residents who can be served within the community. The 210 agency shall base the establishment of any maximum rate of 211 payment, whether overall or component, on the available moneys 212 as provided for in the General Appropriations Act. The agency 213 may base the maximum rate of payment on the results of 214 scientifically valid analysis and conclusions derived from 215 objective statistical data pertinent to the particular maximum 216 rate of payment. The agency shall base the rates of payments in 217 accordance with the minimum wage requirements as provided in the 218 General Appropriations Act. 219 Section 4. Present subsections (6) and (7) of section 220 409.909, Florida Statutes, are redesignated as subsections (7) 221 and (8), respectively, and a new subsection (6) is added to that 222 section, to read: 223 409.909 Statewide Medicaid Residency Program.— 224 (6) The Slots for Doctors Program is established to address 225 the physician workforce shortage by increasing the supply of 226 highly trained physicians through the creation of new resident 227 positions, which will increase access to care and improve health 228 outcomes for Medicaid recipients. 229 (a) The agency shall allocate $100,000 to hospitals and 230 qualifying institutions for each newly created resident position 231 that is accredited by the Accreditation Council for Graduate 232 Medical Education or the Osteopathic Postdoctoral Training 233 Institution in an initial or established accredited training 234 program which is in a physician specialty or subspecialty in a 235 statewide supply-and-demand deficit. 236 (b) This program is designed to generate matching funds 237 under Medicaid and distribute such funds to participating 238 hospitals and qualifying institutions on a quarterly basis in 239 each fiscal year for which an appropriation is made. 240 (c) For purposes of this subsection, physician specialties 241 and subspecialties, both adult and pediatric, in statewide 242 supply-and-demand deficit are those identified as such in the 243 General Appropriations Act. 244 (d) Funds allocated pursuant to this subsection may not be 245 used for resident positions that have previously received 246 funding pursuant to subsection (1). 247 Section 5. Paragraph (f) of subsection (3) of section 248 409.967, Florida Statutes, is amended to read: 249 409.967 Managed care plan accountability.— 250 (3) ACHIEVED SAVINGS REBATE.— 251 (f) Achieved savings rebates validated by the certified 252 public accountant are due within 30 days after the report is 253 submitted. Except as provided in paragraph (h), the achieved 254 savings rebate is established by determining pretax income as a 255 percentage of revenues and applying the following income sharing 256 ratios: 257 1. One hundred percent of income up to and including 5 258 percent of revenue shall be retained by the plan. 259 2. Fifty percent of income above 5 percent and up to 10 260 percent shall be retained by the plan, and the other 50 percent 261 shall be refunded to the state and adjusted for the Federal 262 Medical Assistance Percentages. The state share shall be 263 transferred to the General Revenue Fund, unallocated, and the 264 federal share shall be transferred to the Medical Care Trust 265 Fund, unallocated. 266 3. One hundred percent of income above 10 percent of 267 revenue shall be refunded to the state and adjusted for the 268 Federal Medical Assistance Percentages. The state share shall be 269 transferred to the General Revenue Fund, unallocated, and the 270 federal share shall be transferred to the Medical Care Trust 271 Fund, unallocated. 272 Section 6. Subsection (10) is added to section 430.204, 273 Florida Statutes, to read: 274 430.204 Community-care-for-the-elderly core services; 275 departmental powers and duties.— 276 (10) An area agency on aging may carry forward documented 277 unexpended state funds from one fiscal year to the next; 278 however, the cumulative amount carried forward may not exceed 10 279 percent of the area agency’s planning and service area 280 allocation for the community care for the elderly program. Any 281 unexpended state funds in excess of that percentage must be 282 returned to the department. 283 (a) The funds carried forward may not be used in any manner 284 that would create increased recurring future obligations, and 285 such funds may not be used for any type of program or service 286 that is not currently authorized by existing contracts. 287 (b) Expenditures of funds carried forward must be 288 separately reported to the department. 289 (c) Any unexpended funds that remain at the end of the 290 contract period must be returned to the department. 291 (d) Funds carried forward may be retained through any 292 contract renewals and any new procurements as long as the same 293 area agency on aging is retained by the department. 294 Section 7. This act shall take effect July 1, 2023.