Florida Senate - 2026                                    SB 1758
       
       
        
       By Senator Gaetz
       
       
       
       
       
       1-00651C-26                                           20261758__
    1                        A bill to be entitled                      
    2         An act relating to public assistance; amending s.
    3         409.904, F.S.; authorizing the Agency for Health Care
    4         Administration to conduct retrospective reviews and
    5         audits of certain claims under the state Medicaid
    6         program for a specified purpose; creating s. 409.9041,
    7         F.S.; providing legislative findings; requiring the
    8         agency to seek federal approval to implement mandatory
    9         work and community engagement requirements for able
   10         bodied adults as a condition of obtaining and
   11         maintaining Medicaid coverage; prohibiting the agency
   12         from implementing such requirements until certain
   13         conditions are met; requiring the agency, in
   14         consultation with the Department of Children and
   15         Families, to develop a business plan to implement
   16         specified provisions; specifying requirements for the
   17         plan; requiring the agency to submit the plan to the
   18         Governor and the Legislature by a specified date;
   19         specifying populations that are subject to such work
   20         and community engagement requirements; providing
   21         exceptions; defining the term “family caregiver”;
   22         specifying the types of activities which may satisfy
   23         the work and community engagement requirements;
   24         providing that a certain population is required to
   25         engage in work or community engagement activities only
   26         during standard school hours; requiring persons
   27         eligible for Medicaid to demonstrate compliance with
   28         the work and community engagement requirements at
   29         specified times as a condition of maintaining Medicaid
   30         coverage; requiring the agency to develop a process
   31         for ensuring compliance with the work and community
   32         engagement requirements; requiring that such process
   33         align, to the extent possible, with certain existing
   34         processes; requiring the department to verify
   35         compliance with the work and community engagement
   36         requirements at specified intervals; requiring the
   37         agency, in coordination with the department, to
   38         conduct outreach regarding implementation of the work
   39         and community engagement requirements; specifying
   40         requirements for such outreach; specifying procedures
   41         in the event of noncompliance; requiring the agency,
   42         in coordination with the department, to notify a
   43         Medicaid recipient of a finding of noncompliance and
   44         the impact to eligibility for continued receipt of
   45         services; specifying requirements for such notice;
   46         amending s. 409.905, F.S.; deleting a requirement that
   47         the agency discontinue its hospital retrospective
   48         review program under certain circumstances; revising
   49         construction; requiring the agency to maintain cost
   50         effective purchasing practices in its coverage of
   51         hospital inpatient services rendered to Medicaid
   52         recipients; amending s. 409.906, F.S.; requiring the
   53         agency to seek federal approval to implement a program
   54         for expanded coverage of home- and community-based
   55         behavioral health services for a specified population;
   56         specifying the goal of the program; requiring the
   57         agency to work in coordination with the department to
   58         develop the program; requiring the agency and the
   59         department to develop certain estimates and submit
   60         them to the Legislature in a specified manner before
   61         the program may be implemented; amending s. 409.91195,
   62         F.S.; revising the purpose of the Medicaid
   63         Pharmaceutical and Therapeutics Committee to include
   64         creation of a Medicaid preferred physician
   65         administered drug list, a Medicaid preferred product
   66         list, and a high-cost drug list; requiring the agency
   67         to adopt such lists upon recommendation of the
   68         committee; specifying the frequency with which the
   69         committee must review such lists for any recommended
   70         additions or deletions; specifying parameters for such
   71         recommended additions and deletions; providing that
   72         reimbursement for drugs not included on such lists is
   73         subject to prior authorization, with an exception;
   74         requiring the agency to publish and disseminate such
   75         lists to all Medicaid providers in the state by
   76         posting on the agency’s website or in other media;
   77         providing requirements for public testimony related to
   78         proposed inclusions on or exclusions from certain
   79         lists; requiring the committee to consider certain
   80         factors when developing such recommended additions and
   81         deletions; amending s. 409.912, F.S.; revising the
   82         components of the Medicaid prescribed-drug spending
   83         control program to include the preferred physician
   84         administered drug list, the preferred product list,
   85         and the high-cost drug list; providing requirements
   86         for such lists; providing that the agency does not
   87         need to follow rulemaking procedures of ch. 120, F.S.,
   88         when posting updates to such lists; establishing an
   89         alternative reimbursement methodology for long-acting
   90         injectables administered in a hospital facility
   91         setting for severe mental illness; requiring the
   92         agency to contract with a vendor to perform a fiscal
   93         impact study of the federal 340B Drug Pricing Program;
   94         providing requirements for the study; requiring
   95         specified entities to submit certain data to the
   96         agency for purposes of the study; providing that
   97         noncompliance with such requirement may result in
   98         sanctions from the agency or the Board of Pharmacy, as
   99         applicable; requiring the agency to submit the results
  100         of the study to the Governor and the Legislature by a
  101         specified date; providing construction; amending s.
  102         409.913, F.S.; revising the definition of the term
  103         “overpayment”; providing that determinations of an
  104         overpayment under the Medicaid program may be based
  105         upon retrospective reviews, investigations, analyses,
  106         or audits conducted by the agency to determine
  107         possible fraud, abuse, overpayment, or recipient
  108         neglect; providing that certain notices may be
  109         provided using other common carriers, as well as
  110         through the United States Postal Service; creating s.
  111         414.321, F.S.; requiring the department to limit
  112         eligibility for food assistance to individuals meeting
  113         specified criteria; requiring that food assistance
  114         recipients provide certain documentation for purposes
  115         of eligibility redeterminations; prohibiting the
  116         department from relying solely on an individual’s
  117         self-attestations to determine certain expenses;
  118         authorizing the department to adopt policies and
  119         procedures to accommodate certain applicants and
  120         recipients; creating s. 414.332, F.S.; requiring the
  121         department to develop and implement a food assistance
  122         payment accuracy improvement plan for a specified
  123         purpose; requiring the department to reduce the
  124         payment error rate to below a specified percentage;
  125         providing requirements for the plan; requiring the
  126         department to submit the plan to the Governor and the
  127         Legislature by a specified date; requiring the
  128         department, by a specified date, to submit quarterly
  129         progress reports of specified information to the
  130         Governor and the Legislature; providing for future
  131         repeal; amending s. 414.39, F.S.; requiring the
  132         department to require photographic identification on
  133         the front of electronic benefits transfer (EBT) cards,
  134         to the extent allowable under federal law; amending s.
  135         414.455, F.S.; revising criteria for individuals
  136         required to participate in an employment and training
  137         program to receive food assistance from the
  138         Supplemental Nutrition Assistance Program; requiring
  139         the department to apply and comply with certain work
  140         requirements in accordance with federal law for food
  141         assistance; amending s. 409.91196, F.S.; conforming a
  142         cross-reference; providing an effective date.
  143          
  144  Be It Enacted by the Legislature of the State of Florida:
  145  
  146         Section 1. Subsection (4) of section 409.904, Florida
  147  Statutes, is amended to read:
  148         409.904 Optional payments for eligible persons.—The agency
  149  may make payments for medical assistance and related services on
  150  behalf of the following persons who are determined to be
  151  eligible subject to the income, assets, and categorical
  152  eligibility tests set forth in federal and state law. Payment on
  153  behalf of these Medicaid eligible persons is subject to the
  154  availability of moneys and any limitations established by the
  155  General Appropriations Act or chapter 216.
  156         (4) A low-income person who meets all other requirements
  157  for Medicaid eligibility except citizenship and who is in need
  158  of emergency medical services. The eligibility of such a
  159  recipient is limited to the period of the emergency, in
  160  accordance with federal regulations. The agency may conduct
  161  retrospective reviews or audits of services rendered to the
  162  individual and claims submitted by the provider to validate the
  163  existence and duration of the emergency medical condition and
  164  whether the services rendered were necessary to treat the
  165  emergency medical condition, regardless of whether the provider
  166  obtained prior authorization for the services.
  167         Section 2. Section 409.9041, Florida Statutes, is created
  168  to read:
  169         409.9041 Medicaid work and community engagement
  170  requirements.—
  171         (1)The Legislature finds that assisting able-bodied adult
  172  Medicaid recipients in achieving self-sufficiency through
  173  meaningful work and community engagement is essential to
  174  ensuring that the state Medicaid program remains a sustainable
  175  resource for residents who are most in need of such assistance.
  176         (2)(a)The agency shall seek federal approval to implement
  177  mandatory work and community engagement requirements for able
  178  bodied adults, as specified in this section, as a condition of
  179  obtaining and maintaining coverage under the state Medicaid
  180  program. The agency may not implement the mandatory work and
  181  community engagement requirements until it receives federal
  182  approval through a Medicaid waiver and the agency’s business
  183  plan submitted under paragraph (b) is specifically approved by
  184  the Legislature.
  185         (b) The agency shall, in consultation with the Department
  186  of Children and Families and the Department of Commerce, develop
  187  a business plan to implement this section. The plan must include
  188  methods for determining Medicaid eligibility and the
  189  applicability of exemptions under subsections (3) and (4) on an
  190  ongoing basis and an analysis representing the potential effects
  191  that implementing this section will have on Medicaid enrollment
  192  and expenditures. The agency shall submit the plan to the
  193  Governor, the President of the Senate, and the Speaker of the
  194  House of Representatives no later than December 1, 2026.
  195         (3)(a)Medicaid recipients between the ages of 19 and 64
  196  years, inclusive, must meet the work or community engagement
  197  requirements of this section, unless they are one of the
  198  following:
  199         1.Indian as defined under 42 C.F.R. s. 438.14(a).
  200         2.A parent, guardian, caretaker relative, or family
  201  caregiver of a dependent child younger than 14 years of age or
  202  of a disabled individual. For purposes of this paragraph, the
  203  term “family caregiver” means an adult family member or other
  204  individual who has a significant relationship with, and who
  205  provides a broad range of assistance to, an individual with a
  206  chronic or other health condition, disability, or functional
  207  limitation.
  208         3.Former foster youth younger than 26 years of age.
  209         4.A veteran with a total disability, as specified under 38
  210  C.F.R. s. 3.340 or as specified by a Veteran Affairs Disability
  211  Ratings Letter issued by the United States Department of
  212  Veterans Affairs.
  213         5.An individual classified as medically frail under the
  214  Medicaid Institutionalized Care Program; categorized as aged,
  215  blind, or disabled under the state Medicaid program; or who has
  216  a developmental disability as defined in s. 393.063.
  217         6.An individual living in a household that receives
  218  Supplemental Nutrition Assistance Program benefits and who is
  219  already in compliance with work requirements pursuant to s.
  220  445.024.
  221         7.An individual participating in a residential substance
  222  use treatment program.
  223         8.An inmate of a public institution.
  224         9.A woman eligible for Medicaid coverage in a pregnancy
  225  related or postpartum care category.
  226         (b)A person may satisfy the work or community engagement
  227  requirements of this section by participating in one or more of
  228  the following activities for at least 80 hours per month:
  229         1.Paid employment.
  230         2.On-the-job-training.
  231         3.Vocational educational training.
  232         4.Job skills training directly related to employment.
  233         5.Education directly related to employment.
  234         6.Satisfactory attendance at a secondary school or in a
  235  course of study leading to a high school equivalency diploma.
  236         7.Enrollment at least half-time as defined in 34 C.F.R. s.
  237  668.2(b) in a postsecondary education program to obtain a
  238  credential on the Master Credentials List as maintained pursuant
  239  to s. 445.004(6)(e).
  240         8.Any other work activity designated as such by the
  241  Department of Commerce and provided by a local workforce
  242  development board pursuant to s. 445.024.
  243         (c)Parents with children ages 14 through 18 are required
  244  to engage in work or community engagement activities only during
  245  standard school hours.
  246         (4)(a)Notwithstanding any other statutory provision, in
  247  order to maintain Medicaid coverage, an eligible Medicaid
  248  recipient must, before enrollment and upon any redetermination
  249  for coverage, demonstrate compliance with the work or community
  250  engagement requirements of this section.
  251         (b)The agency shall develop a process for ensuring
  252  compliance with this section which aligns, to the extent
  253  possible, with the processes currently in place relating to work
  254  and community engagement requirements authorized under the
  255  state’s Supplemental Nutrition Assistance Program, including,
  256  but not limited to, participant registration with a local
  257  CareerSource center, employment and training programs, and
  258  collaboration with the state’s local workforce boards.
  259         (c)The department shall verify, in accordance with its
  260  procedures, that an individual subject to the work and community
  261  engagement requirements of this section demonstrates compliance
  262  during the individual’s regularly scheduled redetermination of
  263  eligibility and at least every 6 months thereafter.
  264         (5)The agency, in coordination with the department, shall
  265  conduct outreach regarding the implementation of the work and
  266  community engagement requirements of this section. The outreach
  267  must include, at a minimum, notification to impacted
  268  individuals, including timelines for implementation,
  269  requirements for compliance, penalties for noncompliance, and
  270  information on how to request an exemption.
  271         (6)If a recipient subject to the work and community
  272  engagement requirements of this section is determined to be in
  273  noncompliance with such requirements, the agency, in
  274  coordination with the department, must notify the recipient of
  275  the finding of noncompliance and the impact to his or her
  276  eligibility for continued receipt of Medicaid services. The
  277  notice must include, at a minimum, notification of all of the
  278  following:
  279         (a)That the recipient is eligible for a grace period of 30
  280  days to either come into compliance with the requirements or
  281  request an exemption from the requirements and that Medicaid
  282  coverage of services will continue during the grace period.
  283         (b)That if, following the 30-day period, the individual
  284  has not come into compliance with or requested an exemption from
  285  the work and community engagement requirements, his or her
  286  application for assistance will be denied and services
  287  terminated at the end of the month following the month in which
  288  such 30-calendar-day period ends.
  289         (c)The right of the individual to request a fair hearing
  290  if he or she is determined to be noncompliant with program
  291  requirements and disenrolled from the state Medicaid program.
  292         (d)The manner in which he or she can reapply for medical
  293  assistance under the state Medicaid program.
  294         Section 3. Paragraph (a) of subsection (5) of section
  295  409.905, Florida Statutes, is amended, and paragraph (f) is
  296  added to that subsection, to read:
  297         409.905 Mandatory Medicaid services.—The agency may make
  298  payments for the following services, which are required of the
  299  state by Title XIX of the Social Security Act, furnished by
  300  Medicaid providers to recipients who are determined to be
  301  eligible on the dates on which the services were provided. Any
  302  service under this section shall be provided only when medically
  303  necessary and in accordance with state and federal law.
  304  Mandatory services rendered by providers in mobile units to
  305  Medicaid recipients may be restricted by the agency. Nothing in
  306  this section shall be construed to prevent or limit the agency
  307  from adjusting fees, reimbursement rates, lengths of stay,
  308  number of visits, number of services, or any other adjustments
  309  necessary to comply with the availability of moneys and any
  310  limitations or directions provided for in the General
  311  Appropriations Act or chapter 216.
  312         (5) HOSPITAL INPATIENT SERVICES.—The agency shall pay for
  313  all covered services provided for the medical care and treatment
  314  of a recipient who is admitted as an inpatient by a licensed
  315  physician or dentist to a hospital licensed under part I of
  316  chapter 395. However, the agency shall limit the payment for
  317  inpatient hospital services for a Medicaid recipient 21 years of
  318  age or older to 45 days or the number of days necessary to
  319  comply with the General Appropriations Act.
  320         (a)1. The agency may implement reimbursement and
  321  utilization management reforms in order to comply with any
  322  limitations or directions in the General Appropriations Act,
  323  which may include, but are not limited to: prior authorization
  324  for inpatient psychiatric days; prior authorization for
  325  nonemergency hospital inpatient admissions for individuals 21
  326  years of age and older; authorization of emergency and urgent
  327  care admissions within 24 hours after admission; enhanced
  328  utilization and concurrent review programs for highly utilized
  329  services; reduction or elimination of covered days of service;
  330  adjusting reimbursement ceilings for variable costs; adjusting
  331  reimbursement ceilings for fixed and property costs; and
  332  implementing target rates of increase.
  333         2. The agency may limit prior authorization for hospital
  334  inpatient services to selected diagnosis-related groups, based
  335  on an analysis of the cost and potential for unnecessary
  336  hospitalizations represented by certain diagnoses. Admissions
  337  for normal delivery and newborns are exempt from requirements
  338  for prior authorization.
  339         3. In implementing the provisions of this section related
  340  to prior authorization, the agency shall ensure that the process
  341  for authorization is accessible 24 hours per day, 7 days per
  342  week and authorization is automatically granted when not denied
  343  within 4 hours after the request. Authorization procedures must
  344  include steps for review of denials.
  345         4. Upon implementing the prior authorization program for
  346  hospital inpatient services, the agency shall discontinue its
  347  hospital retrospective review program. However, This paragraph
  348  subparagraph may not be construed to prevent the agency from
  349  conducting retrospective reviews under s. 409.913, including,
  350  but not limited to, reviews of prior-authorized claims and
  351  reviews in which an overpayment is suspected due to a mistake or
  352  submission of an improper claim or for other reasons that do not
  353  rise to the level of fraud or abuse.
  354         (f) In its coverage of services under this subsection, the
  355  agency shall maintain cost-effective purchasing practices as
  356  required by s. 409.912.
  357         Section 4. Present subsections (14) through (29) of section
  358  409.906, Florida Statutes, are redesignated as subsections (15)
  359  through (30), respectively, and a new subsection (14) is added
  360  to that section, to read:
  361         409.906 Optional Medicaid services.—Subject to specific
  362  appropriations, the agency may make payments for services which
  363  are optional to the state under Title XIX of the Social Security
  364  Act and are furnished by Medicaid providers to recipients who
  365  are determined to be eligible on the dates on which the services
  366  were provided. Any optional service that is provided shall be
  367  provided only when medically necessary and in accordance with
  368  state and federal law. Optional services rendered by providers
  369  in mobile units to Medicaid recipients may be restricted or
  370  prohibited by the agency. Nothing in this section shall be
  371  construed to prevent or limit the agency from adjusting fees,
  372  reimbursement rates, lengths of stay, number of visits, or
  373  number of services, or making any other adjustments necessary to
  374  comply with the availability of moneys and any limitations or
  375  directions provided for in the General Appropriations Act or
  376  chapter 216. If necessary to safeguard the state’s systems of
  377  providing services to elderly and disabled persons and subject
  378  to the notice and review provisions of s. 216.177, the Governor
  379  may direct the Agency for Health Care Administration to amend
  380  the Medicaid state plan to delete the optional Medicaid service
  381  known as “Intermediate Care Facilities for the Developmentally
  382  Disabled.” Optional services may include:
  383         (14) HOME- AND COMMUNITY-BASED BEHAVIORAL HEALTH SERVICES.
  384  The agency shall seek federal approval to implement a program
  385  that covers an expanded array of home- and community-based
  386  services for adults 18 years of age and older diagnosed with a
  387  serious mental illness who are high utilizers of behavioral
  388  health services in an institutional setting. The program must be
  389  designed to reduce the need for institutional levels of care for
  390  adults with a serious mental illness. The agency shall work in
  391  coordination with the Department of Children and Families to
  392  develop the program. The agency and the department shall produce
  393  estimates of the program′s potential costs to the Medicaid
  394  program and cost-savings for the department. Such estimates must
  395  be submitted to the Legislature as legislative budget requests
  396  and appropriated in the General Appropriations Act before the
  397  program may be implemented.
  398         Section 5. Section 409.91195, Florida Statutes, is amended
  399  to read:
  400         409.91195 Medicaid Pharmaceutical and Therapeutics
  401  Committee.—There is created a Medicaid Pharmaceutical and
  402  Therapeutics Committee within the agency for the purpose of
  403  developing a Medicaid preferred drug list, a Medicaid preferred
  404  physician-administered drug list, a Medicaid preferred product
  405  list, and a high-cost drug list.
  406         (1) The committee shall be composed of 11 members appointed
  407  by the Governor. Four members shall be physicians, licensed
  408  under chapter 458; one member licensed under chapter 459; five
  409  members shall be pharmacists licensed under chapter 465; and one
  410  member shall be a consumer representative. The members shall be
  411  appointed to serve for terms of 2 years from the date of their
  412  appointment. Members may be appointed to more than one term. The
  413  agency shall serve as staff for the committee and assist them
  414  with all ministerial duties. The Governor shall ensure that at
  415  least some of the members of the committee represent Medicaid
  416  participating physicians and pharmacies serving all segments and
  417  diversity of the Medicaid population, and have experience in
  418  either developing or practicing under a preferred drug list. At
  419  least one of the members shall represent the interests of
  420  pharmaceutical manufacturers.
  421         (2) Committee members shall select a chairperson and a vice
  422  chairperson each year from the committee membership.
  423         (3) The committee shall meet at least quarterly and may
  424  meet at other times at the discretion of the chairperson and
  425  members. The committee shall comply with rules adopted by the
  426  agency, including notice of any meeting of the committee
  427  pursuant to the requirements of the Administrative Procedure
  428  Act.
  429         (4) Upon recommendation of the committee, the agency shall
  430  adopt a preferred drug list, a preferred physician-administered
  431  drug list, a preferred product list, and a high-cost drug list
  432  as described in s. 409.912(5). To the extent feasible, the
  433  committee shall review all drug or product classes included on
  434  the preferred drug list, the preferred physician-administered
  435  drug list, and the preferred product list every 12 months, and
  436  the high-cost drug list every 6 months. The committee may
  437  recommend additions to and deletions from the lists preferred
  438  drug list, such that the lists provide preferred drug list
  439  provides for medically appropriate drug and product therapies
  440  for Medicaid patients which achieve cost savings contained in
  441  the General Appropriations Act.
  442         (5) Except for antiretroviral drugs, reimbursement of drugs
  443  not included on the preferred drug list, preferred physician
  444  administered drug list, preferred product list, or high-cost
  445  drug list is subject to prior authorization.
  446         (6) The agency shall publish and disseminate the preferred
  447  drug list, preferred physician-administered drug list, preferred
  448  product list, and high-cost drug list to all Medicaid providers
  449  in the state by Internet posting on the agency’s website or in
  450  other media.
  451         (7) The committee shall ensure that interested parties,
  452  including pharmaceutical manufacturers agreeing to provide a
  453  supplemental rebate as outlined in this chapter, have an
  454  opportunity to present public testimony to the committee with
  455  information or evidence supporting inclusion of a drug or
  456  product on the preferred drug list, preferred physician
  457  administered drug list, or preferred product list. Such public
  458  testimony must shall occur before prior to any recommendations
  459  made by the committee for inclusion or exclusion from the
  460  preferred drug list, preferred physician-administered drug list,
  461  or preferred product list. Upon timely notice, the agency shall
  462  ensure that any drug that has been approved or had any of its
  463  particular uses approved by the United States Food and Drug
  464  Administration under a priority review classification will be
  465  reviewed by the committee at the next regularly scheduled
  466  meeting following 3 months of distribution of the drug to the
  467  general public.
  468         (8) The committee shall develop its preferred drug list,
  469  preferred physician-administered drug list, preferred product
  470  list, and high-cost drug list recommendations by considering the
  471  clinical efficacy, safety, and cost-effectiveness of a product.
  472         (9) The Medicaid Pharmaceutical and Therapeutics Committee
  473  may also make recommendations to the agency regarding the prior
  474  authorization of any prescribed drug covered by Medicaid.
  475         (10) Medicaid recipients may appeal agency preferred drug
  476  formulary decisions using the Medicaid fair hearing process
  477  administered by the Agency for Health Care Administration.
  478         Section 6. Paragraph (a) of subsection (5) of section
  479  409.912, Florida Statutes, is amended, and subsection (14) is
  480  added to that section, to read:
  481         409.912 Cost-effective purchasing of health care.—The
  482  agency shall purchase goods and services for Medicaid recipients
  483  in the most cost-effective manner consistent with the delivery
  484  of quality medical care. To ensure that medical services are
  485  effectively utilized, the agency may, in any case, require a
  486  confirmation or second physician’s opinion of the correct
  487  diagnosis for purposes of authorizing future services under the
  488  Medicaid program. This section does not restrict access to
  489  emergency services or poststabilization care services as defined
  490  in 42 C.F.R. s. 438.114. Such confirmation or second opinion
  491  shall be rendered in a manner approved by the agency. The agency
  492  shall maximize the use of prepaid per capita and prepaid
  493  aggregate fixed-sum basis services when appropriate and other
  494  alternative service delivery and reimbursement methodologies,
  495  including competitive bidding pursuant to s. 287.057, designed
  496  to facilitate the cost-effective purchase of a case-managed
  497  continuum of care. The agency shall also require providers to
  498  minimize the exposure of recipients to the need for acute
  499  inpatient, custodial, and other institutional care and the
  500  inappropriate or unnecessary use of high-cost services. The
  501  agency shall contract with a vendor to monitor and evaluate the
  502  clinical practice patterns of providers in order to identify
  503  trends that are outside the normal practice patterns of a
  504  provider’s professional peers or the national guidelines of a
  505  provider’s professional association. The vendor must be able to
  506  provide information and counseling to a provider whose practice
  507  patterns are outside the norms, in consultation with the agency,
  508  to improve patient care and reduce inappropriate utilization.
  509  The agency may mandate prior authorization, drug therapy
  510  management, or disease management participation for certain
  511  populations of Medicaid beneficiaries, certain drug classes, or
  512  particular drugs to prevent fraud, abuse, overuse, and possible
  513  dangerous drug interactions. The Pharmaceutical and Therapeutics
  514  Committee shall make recommendations to the agency on drugs for
  515  which prior authorization is required. The agency shall inform
  516  the Pharmaceutical and Therapeutics Committee of its decisions
  517  regarding drugs subject to prior authorization. The agency is
  518  authorized to limit the entities it contracts with or enrolls as
  519  Medicaid providers by developing a provider network through
  520  provider credentialing. The agency may competitively bid single
  521  source-provider contracts if procurement of goods or services
  522  results in demonstrated cost savings to the state without
  523  limiting access to care. The agency may limit its network based
  524  on the assessment of beneficiary access to care, provider
  525  availability, provider quality standards, time and distance
  526  standards for access to care, the cultural competence of the
  527  provider network, demographic characteristics of Medicaid
  528  beneficiaries, practice and provider-to-beneficiary standards,
  529  appointment wait times, beneficiary use of services, provider
  530  turnover, provider profiling, provider licensure history,
  531  previous program integrity investigations and findings, peer
  532  review, provider Medicaid policy and billing compliance records,
  533  clinical and medical record audits, and other factors. Providers
  534  are not entitled to enrollment in the Medicaid provider network.
  535  The agency shall determine instances in which allowing Medicaid
  536  beneficiaries to purchase durable medical equipment and other
  537  goods is less expensive to the Medicaid program than long-term
  538  rental of the equipment or goods. The agency may establish rules
  539  to facilitate purchases in lieu of long-term rentals in order to
  540  protect against fraud and abuse in the Medicaid program as
  541  defined in s. 409.913. The agency may seek federal waivers
  542  necessary to administer these policies.
  543         (5)(a) The agency shall implement a Medicaid prescribed
  544  drug spending-control program that includes the following
  545  components:
  546         1. A Medicaid preferred drug list and a Medicaid physician
  547  administered drug list. The preferred drug list, which shall be
  548  a listing of cost-effective therapeutic options recommended by
  549  the Medicaid Pharmacy and Therapeutics Committee established
  550  pursuant to s. 409.91195 and adopted by the agency for each
  551  therapeutic class on the preferred drug list. At the discretion
  552  of the committee, and when feasible, the preferred drug list
  553  should include at least two products in a therapeutic class. The
  554  physician-administered drug list shall be a listing of
  555  physician-administered drugs covered by the state Medicaid
  556  program, based on the United States Food and Drug
  557  Administration’s approved indications and compendia in 42 U.S.C.
  558  s. 1396r-8(g)(1)(B). Within the preferred physician-administered
  559  drug list, there must be a section containing a list of
  560  preferred physician-administered drugs that are cost-effective
  561  therapeutic options recommended by the Medicaid Pharmaceutical
  562  and Therapeutics Committee established pursuant to s. 409.91195.
  563  The physician-administered drug list must be updated at least
  564  twice a year. The agency may post and update the preferred drug
  565  list and the preferred physician-administered drug updates to
  566  the list on the agency’s an Internet website without following
  567  the rulemaking procedures of chapter 120. Antiretroviral agents
  568  are excluded from the preferred drug list. The agency shall also
  569  limit the amount of a prescribed drug dispensed to no more than
  570  a 34-day supply unless the drug products’ smallest marketed
  571  package is greater than a 34-day supply, or the drug is
  572  determined by the agency to be a maintenance drug in which case
  573  a 100-day maximum supply may be authorized. The agency may seek
  574  any federal waivers necessary to implement these cost-control
  575  programs and to continue participation in the federal Medicaid
  576  rebate program, or alternatively to negotiate state-only
  577  manufacturer rebates. The agency may adopt rules to administer
  578  this subparagraph. The agency shall continue to provide
  579  unlimited contraceptive drugs and items. The agency must
  580  establish procedures to ensure that:
  581         a. There is a response to a request for prior authorization
  582  by telephone or other telecommunication device within 24 hours
  583  after receipt of a request for prior authorization; and
  584         b. A 72-hour supply of the drug prescribed is provided in
  585  an emergency or when the agency does not provide a response
  586  within 24 hours as required by sub-subparagraph a.
  587         2. A Medicaid preferred product list, which shall be a
  588  listing of cost-effective therapeutic supplies recommended by
  589  the Medicaid Pharmaceutical and Therapeutics Committee
  590  established pursuant to s. 409.91195 and adopted by the agency
  591  for each product class listed on the preferred product list and
  592  reimbursed by the state Medicaid program through the pharmacy
  593  point-of-sale. The agency may post the preferred product list
  594  and updates to the list on the agency’s website without
  595  following the rulemaking procedures of chapter 120.
  596         3.A list of high-cost drugs recommended by the Medicaid
  597  Pharmaceutical and Therapeutics Committee established pursuant
  598  to s. 409.91195 and adopted by the agency, for the purpose of
  599  coverage, reimbursement, or billing guidance. The agency may
  600  post the high-cost drug list and updates to the list on the
  601  agency’s website without following the rulemaking procedures of
  602  chapter 120.
  603         4. A provider of prescribed drugs is reimbursed in an
  604  amount not to exceed the lesser of the actual acquisition cost
  605  based on the Centers for Medicare and Medicaid Services National
  606  Average Drug Acquisition Cost pricing files plus a professional
  607  dispensing fee, the wholesale acquisition cost plus a
  608  professional dispensing fee, the state maximum allowable cost
  609  plus a professional dispensing fee, or the usual and customary
  610  charge billed by the provider.
  611         5.A hospital facility administering long-acting
  612  injectables for severe mental illness shall be reimbursed
  613  separately from the diagnosis-related group. Long-acting
  614  injectables administered for severe mental illness in a hospital
  615  facility setting shall be reimbursed at no less than the actual
  616  acquisition cost of the drug.
  617         6.The agency shall contract with a vendor to perform a
  618  detailed fiscal impact study to evaluate the 340B Drug Pricing
  619  Program administered by the Health Resources and Services
  620  Administration. The study must evaluate 340B compliance, 340B
  621  drug purchases, and reimbursement methodologies within the fee
  622  for-service program and Statewide Medicaid Managed Care program.
  623  Statewide Medicaid Managed Care plans, pharmacy benefit
  624  managers, and Medicaid providers shall submit to the agency all
  625  data necessary for the completion of the study, including, but
  626  not limited to, information related to drug purchasing,
  627  reimbursement, billing and coding, and dispensing. Noncompliance
  628  with the 340B data submission requirements of this subparagraph
  629  may result in sanctions from the agency or the Board of
  630  Pharmacy, as applicable. The agency shall submit the results of
  631  the study to the Governor, the President of the Senate, and the
  632  Speaker of the House of Representatives by June 30, 2027.
  633         7.3. The agency shall develop and implement a process for
  634  managing the drug therapies of Medicaid recipients who are using
  635  significant numbers of prescribed drugs each month. The
  636  management process may include, but is not limited to,
  637  comprehensive, physician-directed medical-record reviews, claims
  638  analyses, and case evaluations to determine the medical
  639  necessity and appropriateness of a patient’s treatment plan and
  640  drug therapies. The agency may contract with a private
  641  organization to provide drug-program-management services. The
  642  Medicaid drug benefit management program shall include
  643  initiatives to manage drug therapies for HIV/AIDS patients,
  644  patients using 20 or more unique prescriptions in a 180-day
  645  period, and the top 1,000 patients in annual spending. The
  646  agency shall enroll any Medicaid recipient in the drug benefit
  647  management program if he or she meets the specifications of this
  648  provision and is not enrolled in a Medicaid health maintenance
  649  organization.
  650         8.4. The agency may limit the size of its pharmacy network
  651  based on need, competitive bidding, price negotiations,
  652  credentialing, or similar criteria. The agency shall give
  653  special consideration to rural areas in determining the size and
  654  location of pharmacies included in the Medicaid pharmacy
  655  network. A pharmacy credentialing process may include criteria
  656  such as a pharmacy’s full-service status, location, size,
  657  patient educational programs, patient consultation, disease
  658  management services, and other characteristics. The agency may
  659  impose a moratorium on Medicaid pharmacy enrollment if it is
  660  determined that it has a sufficient number of Medicaid
  661  participating providers. The agency must allow dispensing
  662  practitioners to participate as a part of the Medicaid pharmacy
  663  network regardless of the practitioner’s proximity to any other
  664  entity that is dispensing prescription drugs under the Medicaid
  665  program. A dispensing practitioner must meet all credentialing
  666  requirements applicable to his or her practice, as determined by
  667  the agency.
  668         9.5. The agency shall develop and implement a program that
  669  requires Medicaid practitioners who issue written prescriptions
  670  for medicinal drugs to use a counterfeit-proof prescription pad
  671  for Medicaid prescriptions. The agency shall require the use of
  672  standardized counterfeit-proof prescription pads by prescribers
  673  who issue written prescriptions for Medicaid recipients. The
  674  agency may implement the program in targeted geographic areas or
  675  statewide.
  676         10.6. The agency may enter into arrangements that require
  677  manufacturers of generic drugs prescribed to Medicaid recipients
  678  to provide rebates of at least 15.1 percent of the average
  679  manufacturer price for the manufacturer’s generic products.
  680  These arrangements shall require that if a generic-drug
  681  manufacturer pays federal rebates for Medicaid-reimbursed drugs
  682  at a level below 15.1 percent, the manufacturer must provide a
  683  supplemental rebate to the state in an amount necessary to
  684  achieve a 15.1-percent rebate level.
  685         11.7. The agency may establish a preferred drug list as
  686  described in this subsection, and, pursuant to the establishment
  687  of such preferred drug list, negotiate supplemental rebates from
  688  manufacturers that are in addition to those required by Title
  689  XIX of the Social Security Act and at no less than 14 percent of
  690  the average manufacturer price as defined in 42 U.S.C. s. 1936
  691  on the last day of a quarter unless the federal or supplemental
  692  rebate, or both, equals or exceeds 29 percent. There is no upper
  693  limit on the supplemental rebates the agency may negotiate. The
  694  agency may determine that specific products, brand-name or
  695  generic, are competitive at lower rebate percentages. Agreement
  696  to pay the minimum supplemental rebate percentage guarantees a
  697  manufacturer that the Medicaid Pharmaceutical and Therapeutics
  698  Committee will consider a product for inclusion on the preferred
  699  drug list. However, a pharmaceutical manufacturer is not
  700  guaranteed placement on the preferred drug list by simply paying
  701  the minimum supplemental rebate. Agency decisions will be made
  702  on the clinical efficacy of a drug and recommendations of the
  703  Medicaid Pharmaceutical and Therapeutics Committee, as well as
  704  the price of competing products minus federal and state rebates.
  705  The agency may contract with an outside agency or contractor to
  706  conduct negotiations for supplemental rebates. For the purposes
  707  of this section, the term “supplemental rebates” means cash
  708  rebates. Value-added programs as a substitution for supplemental
  709  rebates are prohibited. The agency may seek any federal waivers
  710  to implement this initiative.
  711         12.a.8.a. The agency may implement a Medicaid behavioral
  712  drug management system. The agency may contract with a vendor
  713  that has experience in operating behavioral drug management
  714  systems to implement this program. The agency may seek federal
  715  waivers to implement this program.
  716         b. The agency, in conjunction with the Department of
  717  Children and Families, may implement the Medicaid behavioral
  718  drug management system that is designed to improve the quality
  719  of care and behavioral health prescribing practices based on
  720  best practice guidelines, improve patient adherence to
  721  medication plans, reduce clinical risk, and lower prescribed
  722  drug costs and the rate of inappropriate spending on Medicaid
  723  behavioral drugs. The program may include the following
  724  elements:
  725         (I) Provide for the development and adoption of best
  726  practice guidelines for behavioral health-related drugs such as
  727  antipsychotics, antidepressants, and medications for treating
  728  bipolar disorders and other behavioral conditions; translate
  729  them into practice; review behavioral health prescribers and
  730  compare their prescribing patterns to a number of indicators
  731  that are based on national standards; and determine deviations
  732  from best practice guidelines.
  733         (II) Implement processes for providing feedback to and
  734  educating prescribers using best practice educational materials
  735  and peer-to-peer consultation.
  736         (III) Assess Medicaid beneficiaries who are outliers in
  737  their use of behavioral health drugs with regard to the numbers
  738  and types of drugs taken, drug dosages, combination drug
  739  therapies, and other indicators of improper use of behavioral
  740  health drugs.
  741         (IV) Alert prescribers to patients who fail to refill
  742  prescriptions in a timely fashion, are prescribed multiple same
  743  class behavioral health drugs, and may have other potential
  744  medication problems.
  745         (V) Track spending trends for behavioral health drugs and
  746  deviation from best practice guidelines.
  747         (VI) Use educational and technological approaches to
  748  promote best practices, educate consumers, and train prescribers
  749  in the use of practice guidelines.
  750         (VII) Disseminate electronic and published materials.
  751         (VIII) Hold statewide and regional conferences.
  752         (IX) Implement a disease management program with a model
  753  quality-based medication component for severely mentally ill
  754  individuals and emotionally disturbed children who are high
  755  users of care.
  756         13.9. The agency shall implement a Medicaid prescription
  757  drug management system.
  758         a. The agency may contract with a vendor that has
  759  experience in operating prescription drug management systems in
  760  order to implement this system. Any management system that is
  761  implemented in accordance with this subparagraph must rely on
  762  cooperation between physicians and pharmacists to determine
  763  appropriate practice patterns and clinical guidelines to improve
  764  the prescribing, dispensing, and use of drugs in the Medicaid
  765  program. The agency may seek federal waivers to implement this
  766  program.
  767         b. The drug management system must be designed to improve
  768  the quality of care and prescribing practices based on best
  769  practice guidelines, improve patient adherence to medication
  770  plans, reduce clinical risk, and lower prescribed drug costs and
  771  the rate of inappropriate spending on Medicaid prescription
  772  drugs. The program must:
  773         (I) Provide for the adoption of best practice guidelines
  774  for the prescribing and use of drugs in the Medicaid program,
  775  including translating best practice guidelines into practice;
  776  reviewing prescriber patterns and comparing them to indicators
  777  that are based on national standards and practice patterns of
  778  clinical peers in their community, statewide, and nationally;
  779  and determine deviations from best practice guidelines.
  780         (II) Implement processes for providing feedback to and
  781  educating prescribers using best practice educational materials
  782  and peer-to-peer consultation.
  783         (III) Assess Medicaid recipients who are outliers in their
  784  use of a single or multiple prescription drugs with regard to
  785  the numbers and types of drugs taken, drug dosages, combination
  786  drug therapies, and other indicators of improper use of
  787  prescription drugs.
  788         (IV) Alert prescribers to recipients who fail to refill
  789  prescriptions in a timely fashion, are prescribed multiple drugs
  790  that may be redundant or contraindicated, or may have other
  791  potential medication problems.
  792         14.10. The agency may contract for drug rebate
  793  administration, including, but not limited to, calculating
  794  rebate amounts, invoicing manufacturers, negotiating disputes
  795  with manufacturers, and maintaining a database of rebate
  796  collections.
  797         15.11. The agency may specify the preferred daily dosing
  798  form or strength for the purpose of promoting best practices
  799  with regard to the prescribing of certain drugs as specified in
  800  the General Appropriations Act and ensuring cost-effective
  801  prescribing practices.
  802         16.12. The agency may require prior authorization for
  803  Medicaid-covered prescribed drugs. The agency may prior
  804  authorize the use of a product:
  805         a. For an indication not approved in labeling;
  806         b. To comply with certain clinical guidelines; or
  807         c. If the product has the potential for overuse, misuse, or
  808  abuse.
  809  
  810  The agency may require the prescribing professional to provide
  811  information about the rationale and supporting medical evidence
  812  for the use of a drug. The agency shall post prior
  813  authorization, step-edit criteria and protocol, and updates to
  814  the list of drugs that are subject to prior authorization on the
  815  agency’s Internet website within 21 days after the prior
  816  authorization and step-edit criteria and protocol and updates
  817  are approved by the agency. For purposes of this subparagraph,
  818  the term “step-edit” means an automatic electronic review of
  819  certain medications subject to prior authorization.
  820         17.13. The agency, in conjunction with the Pharmaceutical
  821  and Therapeutics Committee, may require age-related prior
  822  authorizations for certain prescribed drugs. The agency may
  823  preauthorize the use of a drug for a recipient who may not meet
  824  the age requirement or may exceed the length of therapy for use
  825  of this product as recommended by the manufacturer and approved
  826  by the Food and Drug Administration. Prior authorization may
  827  require the prescribing professional to provide information
  828  about the rationale and supporting medical evidence for the use
  829  of a drug.
  830         18.14. The agency shall implement a step-therapy prior
  831  authorization approval process for medications excluded from the
  832  preferred drug list. Medications listed on the preferred drug
  833  list must be used within the previous 12 months before the
  834  alternative medications that are not listed. The step-therapy
  835  prior authorization may require the prescriber to use the
  836  medications of a similar drug class or for a similar medical
  837  indication unless contraindicated in the Food and Drug
  838  Administration labeling. The trial period between the specified
  839  steps may vary according to the medical indication. The step
  840  therapy approval process shall be developed in accordance with
  841  the committee as stated in s. 409.91195(7) and (8). A drug
  842  product may be approved without meeting the step-therapy prior
  843  authorization criteria if the prescribing physician provides the
  844  agency with additional written medical or clinical documentation
  845  that the product is medically necessary because:
  846         a. There is not a drug on the preferred drug list to treat
  847  the disease or medical condition which is an acceptable clinical
  848  alternative;
  849         b. The alternatives have been ineffective in the treatment
  850  of the beneficiary’s disease;
  851         c. The drug product or medication of a similar drug class
  852  is prescribed for the treatment of schizophrenia or schizotypal
  853  or delusional disorders; prior authorization has been granted
  854  previously for the prescribed drug; and the medication was
  855  dispensed to the patient during the previous 12 months; or
  856         d. Based on historical evidence and known characteristics
  857  of the patient and the drug, the drug is likely to be
  858  ineffective, or the number of doses have been ineffective.
  859  
  860  The agency shall work with the physician to determine the best
  861  alternative for the patient. The agency may adopt rules waiving
  862  the requirements for written clinical documentation for specific
  863  drugs in limited clinical situations.
  864         19.15. The agency shall implement a return and reuse
  865  program for drugs dispensed by pharmacies to institutional
  866  recipients, which includes payment of a $5 restocking fee for
  867  the implementation and operation of the program. The return and
  868  reuse program shall be implemented electronically and in a
  869  manner that promotes efficiency. The program must permit a
  870  pharmacy to exclude drugs from the program if it is not
  871  practical or cost-effective for the drug to be included and must
  872  provide for the return to inventory of drugs that cannot be
  873  credited or returned in a cost-effective manner. The agency
  874  shall determine if the program has reduced the amount of
  875  Medicaid prescription drugs which are destroyed on an annual
  876  basis and if there are additional ways to ensure more
  877  prescription drugs are not destroyed which could safely be
  878  reused.
  879         (14) Neither this section nor this chapter prevents the
  880  agency from conducting retrospective reviews, investigations,
  881  analyses, audits, or any combination thereof to determine
  882  possible fraud, abuse, overpayment, or recipient neglect in the
  883  state Medicaid program pursuant to s. 409.913, including, but
  884  not limited to, reviews in which the services were the subject
  885  of a utilization review or prior authorization process.
  886         Section 7. Paragraph (e) of subsection (1) and subsections
  887  (2) and (6) of section 409.913, Florida Statutes, are amended to
  888  read:
  889         409.913 Oversight of the integrity of the Medicaid
  890  program.—The agency shall operate a program to oversee the
  891  activities of Florida Medicaid recipients, and providers and
  892  their representatives, to ensure that fraudulent and abusive
  893  behavior and neglect of recipients occur to the minimum extent
  894  possible, and to recover overpayments and impose sanctions as
  895  appropriate. Each January 15, the agency and the Medicaid Fraud
  896  Control Unit of the Department of Legal Affairs shall submit a
  897  report to the Legislature documenting the effectiveness of the
  898  state’s efforts to control Medicaid fraud and abuse and to
  899  recover Medicaid overpayments during the previous fiscal year.
  900  The report must describe the number of cases opened and
  901  investigated each year; the sources of the cases opened; the
  902  disposition of the cases closed each year; the amount of
  903  overpayments alleged in preliminary and final audit letters; the
  904  number and amount of fines or penalties imposed; any reductions
  905  in overpayment amounts negotiated in settlement agreements or by
  906  other means; the amount of final agency determinations of
  907  overpayments; the amount deducted from federal claiming as a
  908  result of overpayments; the amount of overpayments recovered
  909  each year; the amount of cost of investigation recovered each
  910  year; the average length of time to collect from the time the
  911  case was opened until the overpayment is paid in full; the
  912  amount determined as uncollectible and the portion of the
  913  uncollectible amount subsequently reclaimed from the Federal
  914  Government; the number of providers, by type, that are
  915  terminated from participation in the Medicaid program as a
  916  result of fraud and abuse; and all costs associated with
  917  discovering and prosecuting cases of Medicaid overpayments and
  918  making recoveries in such cases. The report must also document
  919  actions taken to prevent overpayments and the number of
  920  providers prevented from enrolling in or reenrolling in the
  921  Medicaid program as a result of documented Medicaid fraud and
  922  abuse and must include policy recommendations necessary to
  923  prevent or recover overpayments and changes necessary to prevent
  924  and detect Medicaid fraud. All policy recommendations in the
  925  report must include a detailed fiscal analysis, including, but
  926  not limited to, implementation costs, estimated savings to the
  927  Medicaid program, and the return on investment. The agency must
  928  submit the policy recommendations and fiscal analyses in the
  929  report to the appropriate estimating conference, pursuant to s.
  930  216.137, by February 15 of each year. The agency and the
  931  Medicaid Fraud Control Unit of the Department of Legal Affairs
  932  each must include detailed unit-specific performance standards,
  933  benchmarks, and metrics in the report, including projected cost
  934  savings to the state Medicaid program during the following
  935  fiscal year.
  936         (1) For the purposes of this section, the term:
  937         (e) “Overpayment” includes any amount that is not
  938  authorized to be paid by the Medicaid program or that should not
  939  have been paid, including payments made whether paid as a result
  940  of inaccurate or improper cost reporting, improper claiming,
  941  unacceptable practices, fraud, abuse, or mistake, and may
  942  include amounts paid for goods or services that were the subject
  943  of a utilization review or prior authorization process.
  944         (2) The agency shall conduct, or cause to be conducted by
  945  contract or otherwise, reviews, investigations, analyses,
  946  audits, or any combination thereof, to determine possible fraud,
  947  abuse, overpayment, or recipient neglect in the Medicaid program
  948  and shall report the findings of any overpayments in audit
  949  reports as appropriate. An overpayment determination may be
  950  based upon retrospective reviews, investigations, analyses,
  951  audits, or any combination thereof to determine possible fraud,
  952  abuse, overpayment, or recipient neglect in the Medicaid
  953  program, regardless of whether a prior authorization was issued.
  954  At least 5 percent of all audits shall be conducted on a random
  955  basis. As part of its ongoing fraud detection activities, the
  956  agency shall identify and monitor, by contract or otherwise,
  957  patterns of overutilization of Medicaid services based on state
  958  averages. The agency shall track Medicaid provider prescription
  959  and billing patterns and evaluate them against Medicaid medical
  960  necessity criteria and coverage and limitation guidelines
  961  adopted by rule. Medical necessity determination requires that
  962  service be consistent with symptoms or confirmed diagnosis of
  963  illness or injury under treatment and not in excess of the
  964  patient’s needs. The agency shall conduct reviews of provider
  965  exceptions to peer group norms and shall, using statistical
  966  methodologies, provider profiling, and analysis of billing
  967  patterns, detect and investigate abnormal or unusual increases
  968  in billing or payment of claims for Medicaid services and
  969  medically unnecessary provision of services.
  970         (6) Any notice required to be given to a provider under
  971  this section is presumed to be sufficient notice if sent to the
  972  mailing address last shown on the provider enrollment file. It
  973  is the responsibility of the provider to furnish and keep the
  974  agency informed of the provider’s current mailing and service
  975  addresses address. United States Postal Service or other common
  976  carrier’s proof of mailing or certified or registered mailing of
  977  such notice to the provider at the address shown on the provider
  978  enrollment file constitutes sufficient proof of notice. Any
  979  notice required to be given to the agency by this section must
  980  be sent to the agency at an address designated by rule.
  981         Section 8. Section 414.321, Florida Statutes, is created to
  982  read:
  983         414.321Food assistance eligibility.—For purposes of
  984  eligibility determinations, the department shall:
  985         (1)Limit eligibility to individuals who are residents of
  986  the United States and:
  987         (a)Citizens or nationals of the United States;
  988         (b)Aliens lawfully admitted for permanent residence as
  989  defined in the Immigration and Nationality Act, as amended;
  990         (c)Aliens who have been granted the status of Cuban and
  991  Haitian entrant, as defined in the Refugee Education Assistance
  992  Act of 1980, as amended; or
  993         (d)Individuals who lawfully reside in the United States in
  994  accordance with the Compacts of Free Association referred to in
  995  the Personal Responsibility and Work Opportunity Reconciliation
  996  Act of 1996.
  997         (2)Require each applicant, or recipient for
  998  redetermination purposes, to provide documentation evidencing
  999  his or her shelter or utility expenses.
 1000         (a)The department is prohibited from relying solely on an
 1001  individual’s self-attestation in determining shelter or utility
 1002  expenses.
 1003         (b)The department may adopt policies and procedures to
 1004  accommodate an applicant or a recipient who, due to recent
 1005  residency changes, is temporarily unable to furnish adequate
 1006  documentation of shelter or utility expenses.
 1007         Section 9. Section 414.332, Florida Statutes, is created to
 1008  read:
 1009         414.332Food assistance payment accuracy plan.—
 1010         (1)The department shall develop and implement a
 1011  comprehensive food assistance payment accuracy improvement plan
 1012  to reduce the state’s payment error rate. The department must
 1013  reduce the payment error rate to below 6 percent. The plan must
 1014  address the root causes of payment errors identified through an
 1015  in-depth, data-driven analysis. The plan must include, but need
 1016  not be limited to, all of the following:
 1017         (a)Enhanced employee training and quality assurance.
 1018         1.The department shall administer standardized training
 1019  for all economic self-sufficiency program staff at least
 1020  annually. Training must, at a minimum, review the most common
 1021  reasons for payment errors and methods for preventing such
 1022  errors, and include pre- and post-training testing to measure
 1023  staff proficiency.
 1024         2.The department shall establish a robust quality
 1025  assurance review process that frequently reviews a statistically
 1026  significant sample of cases before final benefit determination.
 1027  This process must incorporate real-time, corrective feedback and
 1028  on-the-job training for program staff and may not delay benefit
 1029  determinations.
 1030         (b)Improvement in data sourcing. In contracting with
 1031  entities providing data for verification of applicant and
 1032  recipient information, the department shall maximize use of high
 1033  quality automated data sources, including, but not limited to,
 1034  comparing income and asset data with state, federal, and private
 1035  sector data sources.
 1036         (2)By July 15, 2026, the department shall submit the food
 1037  assistance payment accuracy improvement plan to the Governor,
 1038  the President of the Senate, and the Speaker of the House of
 1039  Representatives.
 1040         (3)(a)Beginning October 1, 2026, the department shall
 1041  submit quarterly progress reports to the Governor, the President
 1042  of the Senate, and the Speaker of the House of Representatives
 1043  detailing:
 1044         1.The state’s most recent official and preliminary food
 1045  assistance payment error rate.
 1046         2.A detailed breakdown of the most frequent and highest
 1047  dollar value errors, including categorization by agency or
 1048  client error and whether the error resulted in over- or under
 1049  payment.
 1050         3.Specific actions taken by the department under the food
 1051  assistance payment accuracy improvement plan during the
 1052  preceding quarter and data demonstrating the results of those
 1053  actions.
 1054         4.A detailed plan to correct the most recently identified
 1055  deficiencies.
 1056         (b)This subsection is repealed on October 1, 2028.
 1057         Section 10. Present subsections (6) through (11) of section
 1058  414.39, Florida Statutes, are redesignated as subsections (7)
 1059  through (12), respectively, and a new subsection (6) is added to
 1060  that section, to read:
 1061         414.39 Fraud.—
 1062         (6) The department shall require the use of photographic
 1063  identification on the front of each newly issued and reissued
 1064  electronic benefits transfer (EBT) card for each cardholder to
 1065  the maximum extent allowed by federal laws and regulations.
 1066         Section 11. Subsection (2) of section 414.455, Florida
 1067  Statutes, is amended to read:
 1068         414.455 Supplemental Nutrition Assistance Program;
 1069  legislative authorization; mandatory participation in employment
 1070  and training programs.—
 1071         (2) Unless prohibited by the Federal Government, the
 1072  department must require a person who is receiving food
 1073  assistance; who is 18 to 64 59 years of age, inclusive; who does
 1074  not have children under the age of 14 18 in his or her home; who
 1075  does not qualify for an exemption; and who is determined by the
 1076  department to be eligible, to participate in an employment and
 1077  training program. The department shall apply and comply with
 1078  exemptions from work requirements in accordance with applicable
 1079  federal law.
 1080         Section 12. Subsection (1) of section 409.91196, Florida
 1081  Statutes, is amended to read:
 1082         409.91196 Supplemental rebate agreements; public records
 1083  and public meetings exemption.—
 1084         (1) The rebate amount, percent of rebate, manufacturer’s
 1085  pricing, and supplemental rebate, and other trade secrets as
 1086  defined in s. 688.002 that the agency has identified for use in
 1087  negotiations, held by the Agency for Health Care Administration
 1088  under s. 409.912(5)(a)11. s. 409.912(5)(a)7. are confidential
 1089  and exempt from s. 119.07(1) and s. 24(a), Art. I of the State
 1090  Constitution.
 1091         Section 13. This act shall take effect July 1, 2026.