Florida Senate - 2026                             CS for SB 1758
       
       
        
       By the Committee on Health Policy; and Senators Gaetz and
       Brodeur
       
       
       
       
       588-02430-26                                          20261758c1
    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; requiring the
   89         agency to establish certain procedures relating to
   90         prior authorization requests for drugs on the high
   91         cost drug list; establishing an alternative
   92         reimbursement methodology for long-acting injectables
   93         administered in a hospital facility setting for severe
   94         mental illness; requiring the agency to contract with
   95         a vendor to perform a fiscal impact study of the
   96         federal 340B Drug Pricing Program; providing
   97         requirements for the study; requiring specified
   98         entities to submit certain data to the agency for
   99         purposes of the study; providing that noncompliance
  100         with such requirement may result in sanctions from the
  101         agency or the Board of Pharmacy, as applicable;
  102         requiring the agency to submit the results of the
  103         study to the Governor and the Legislature by a
  104         specified date; providing construction; amending s.
  105         409.913, F.S.; revising the definition of the term
  106         “overpayment”; providing that determinations of an
  107         overpayment under the Medicaid program may be based
  108         upon retrospective reviews, investigations, analyses,
  109         or audits conducted by the agency to determine
  110         possible fraud, abuse, overpayment, or recipient
  111         neglect; providing that certain notices may be
  112         provided using other common carriers, as well as
  113         through the United States Postal Service; creating s.
  114         414.321, F.S.; requiring the department to limit
  115         eligibility for food assistance to individuals meeting
  116         specified criteria; requiring that food assistance
  117         recipients provide certain documentation for purposes
  118         of eligibility redeterminations; prohibiting the
  119         department from relying solely on an individual’s
  120         self-attestations to determine certain expenses;
  121         authorizing the department to adopt policies and
  122         procedures to accommodate certain applicants and
  123         recipients; creating s. 414.332, F.S.; requiring the
  124         department to develop and implement a food assistance
  125         payment accuracy improvement plan for a specified
  126         purpose; requiring the department to reduce the
  127         payment error rate to below a specified percentage;
  128         providing requirements for the plan; requiring the
  129         department to submit the plan to the Governor and the
  130         Legislature by a specified date; requiring the
  131         department, by a specified date, to submit quarterly
  132         progress reports of specified information to the
  133         Governor and the Legislature; providing for future
  134         repeal; amending s. 414.39, F.S.; requiring the
  135         department to require photographic identification on
  136         the front of electronic benefits transfer (EBT) cards,
  137         to the extent allowable under federal law; amending s.
  138         414.455, F.S.; revising criteria for individuals
  139         required to participate in an employment and training
  140         program to receive food assistance from the
  141         Supplemental Nutrition Assistance Program; requiring
  142         the department to apply and comply with certain work
  143         requirements in accordance with federal law for food
  144         assistance; amending s. 409.91196, F.S.; conforming a
  145         cross-reference; providing an effective date.
  146          
  147  Be It Enacted by the Legislature of the State of Florida:
  148  
  149         Section 1. Subsection (4) of section 409.904, Florida
  150  Statutes, is amended to read:
  151         409.904 Optional payments for eligible persons.—The agency
  152  may make payments for medical assistance and related services on
  153  behalf of the following persons who are determined to be
  154  eligible subject to the income, assets, and categorical
  155  eligibility tests set forth in federal and state law. Payment on
  156  behalf of these Medicaid eligible persons is subject to the
  157  availability of moneys and any limitations established by the
  158  General Appropriations Act or chapter 216.
  159         (4) A low-income person who meets all other requirements
  160  for Medicaid eligibility except citizenship and who is in need
  161  of emergency medical services. The eligibility of such a
  162  recipient is limited to the period of the emergency, in
  163  accordance with federal regulations. The agency may conduct
  164  retrospective reviews or audits of services rendered to the
  165  individual and claims submitted by the provider to validate the
  166  existence and duration of the emergency medical condition and
  167  whether the services rendered were necessary to treat the
  168  emergency medical condition, regardless of whether the provider
  169  obtained prior authorization for the services.
  170         Section 2. Section 409.9041, Florida Statutes, is created
  171  to read:
  172         409.9041 Medicaid work and community engagement
  173  requirements.—
  174         (1)The Legislature finds that assisting able-bodied adult
  175  Medicaid recipients in achieving self-sufficiency through
  176  meaningful work and community engagement is essential to
  177  ensuring that the state Medicaid program remains a sustainable
  178  resource for residents who are most in need of such assistance.
  179         (2)(a)The agency shall seek federal approval to implement
  180  mandatory work and community engagement requirements for able
  181  bodied adults, as specified in this section, as a condition of
  182  obtaining and maintaining coverage under the state Medicaid
  183  program. The agency may not implement the mandatory work and
  184  community engagement requirements until it receives federal
  185  approval through a Medicaid waiver and the agency’s business
  186  plan submitted under paragraph (b) is specifically approved by
  187  the Legislature.
  188         (b) The agency shall, in consultation with the Department
  189  of Children and Families and the Department of Commerce, develop
  190  a business plan to implement this section. The plan must include
  191  methods for determining Medicaid eligibility and the
  192  applicability of exemptions under subsections (3) and (4) on an
  193  ongoing basis and an analysis representing the potential effects
  194  that implementing this section will have on Medicaid enrollment
  195  and expenditures. The agency shall submit the plan to the
  196  Governor, the President of the Senate, and the Speaker of the
  197  House of Representatives no later than December 1, 2026.
  198         (3)(a)Medicaid recipients between the ages of 19 and 64
  199  years, inclusive, must meet the work or community engagement
  200  requirements of this section, unless they are one of the
  201  following:
  202         1.Indian as defined under 42 C.F.R. s. 438.14(a).
  203         2.A parent, guardian, caretaker relative, or family
  204  caregiver of a dependent child younger than 14 years of age or
  205  of a disabled individual. For purposes of this paragraph, the
  206  term “family caregiver” means an adult family member or other
  207  individual who has a significant relationship with, and who
  208  provides a broad range of assistance to, an individual with a
  209  chronic or other health condition, disability, or functional
  210  limitation.
  211         3.Former foster youth younger than 26 years of age.
  212         4.A veteran with a total disability, as specified under 38
  213  C.F.R. s. 3.340 or as specified by a Veteran Affairs Disability
  214  Ratings Letter issued by the United States Department of
  215  Veterans Affairs.
  216         5.An individual classified as medically frail under the
  217  Medicaid Institutionalized Care Program; categorized as aged,
  218  blind, or disabled under the state Medicaid program; or who has
  219  a developmental disability as defined in s. 393.063.
  220         6.An individual living in a household that receives
  221  Supplemental Nutrition Assistance Program benefits and who is
  222  already in compliance with work requirements pursuant to s.
  223  445.024.
  224         7.An individual participating in a residential substance
  225  use treatment program.
  226         8.An inmate of a public institution.
  227         9.A woman eligible for Medicaid coverage in a pregnancy
  228  related or postpartum care category.
  229         (b)A person may satisfy the work or community engagement
  230  requirements of this section by participating in one or more of
  231  the following activities for at least 80 hours per month:
  232         1.Paid employment.
  233         2.On-the-job-training.
  234         3.Vocational educational training.
  235         4.Job skills training directly related to employment.
  236         5.Education directly related to employment.
  237         6.Satisfactory attendance at a secondary school or in a
  238  course of study leading to a high school equivalency diploma.
  239         7.Enrollment at least half-time as defined in 34 C.F.R. s.
  240  668.2(b) in a postsecondary education program to obtain a
  241  credential on the Master Credentials List as maintained pursuant
  242  to s. 445.004(6)(e).
  243         8.Any other work activity designated as such by the
  244  Department of Commerce and provided by a local workforce
  245  development board pursuant to s. 445.024.
  246         (c)Parents with children ages 14 through 18 are required
  247  to engage in work or community engagement activities only during
  248  standard school hours.
  249         (4)(a)Notwithstanding any other statutory provision, in
  250  order to maintain Medicaid coverage, an eligible Medicaid
  251  recipient must, before enrollment and upon any redetermination
  252  for coverage, demonstrate compliance with the work or community
  253  engagement requirements of this section.
  254         (b)The agency shall develop a process for ensuring
  255  compliance with this section which aligns, to the extent
  256  possible, with the processes currently in place relating to work
  257  and community engagement requirements authorized under the
  258  state’s Supplemental Nutrition Assistance Program, including,
  259  but not limited to, participant registration with a local
  260  CareerSource center, employment and training programs, and
  261  collaboration with the state’s local workforce boards.
  262         (c)The department shall verify, in accordance with its
  263  procedures, that an individual subject to the work and community
  264  engagement requirements of this section demonstrates compliance
  265  during the individual’s regularly scheduled redetermination of
  266  eligibility and at least every 6 months thereafter.
  267         (5)The agency, in coordination with the department, shall
  268  conduct outreach regarding the implementation of the work and
  269  community engagement requirements of this section. The outreach
  270  must include, at a minimum, notification to impacted
  271  individuals, including timelines for implementation,
  272  requirements for compliance, penalties for noncompliance, and
  273  information on how to request an exemption.
  274         (6)If a recipient subject to the work and community
  275  engagement requirements of this section is determined to be in
  276  noncompliance with such requirements, the agency, in
  277  coordination with the department, must notify the recipient of
  278  the finding of noncompliance and the impact to his or her
  279  eligibility for continued receipt of Medicaid services. The
  280  notice must include, at a minimum, notification of all of the
  281  following:
  282         (a)That the recipient is eligible for a grace period of 30
  283  days to either come into compliance with the requirements or
  284  request an exemption from the requirements and that Medicaid
  285  coverage of services will continue during the grace period.
  286         (b)That if, following the 30-day period, the individual
  287  has not come into compliance with or requested an exemption from
  288  the work and community engagement requirements, his or her
  289  application for assistance will be denied and services
  290  terminated at the end of the month following the month in which
  291  such 30-calendar-day period ends.
  292         (c)The right of the individual to request a fair hearing
  293  if he or she is determined to be noncompliant with program
  294  requirements and disenrolled from the state Medicaid program.
  295         (d)The manner in which he or she can reapply for medical
  296  assistance under the state Medicaid program.
  297         Section 3. Paragraph (a) of subsection (5) of section
  298  409.905, Florida Statutes, is amended, and paragraph (f) is
  299  added to that subsection, to read:
  300         409.905 Mandatory Medicaid services.—The agency may make
  301  payments for the following services, which are required of the
  302  state by Title XIX of the Social Security Act, furnished by
  303  Medicaid providers to recipients who are determined to be
  304  eligible on the dates on which the services were provided. Any
  305  service under this section shall be provided only when medically
  306  necessary and in accordance with state and federal law.
  307  Mandatory services rendered by providers in mobile units to
  308  Medicaid recipients may be restricted by the agency. Nothing in
  309  this section shall be construed to prevent or limit the agency
  310  from adjusting fees, reimbursement rates, lengths of stay,
  311  number of visits, number of services, or any other adjustments
  312  necessary to comply with the availability of moneys and any
  313  limitations or directions provided for in the General
  314  Appropriations Act or chapter 216.
  315         (5) HOSPITAL INPATIENT SERVICES.—The agency shall pay for
  316  all covered services provided for the medical care and treatment
  317  of a recipient who is admitted as an inpatient by a licensed
  318  physician or dentist to a hospital licensed under part I of
  319  chapter 395. However, the agency shall limit the payment for
  320  inpatient hospital services for a Medicaid recipient 21 years of
  321  age or older to 45 days or the number of days necessary to
  322  comply with the General Appropriations Act.
  323         (a)1. The agency may implement reimbursement and
  324  utilization management reforms in order to comply with any
  325  limitations or directions in the General Appropriations Act,
  326  which may include, but are not limited to: prior authorization
  327  for inpatient psychiatric days; prior authorization for
  328  nonemergency hospital inpatient admissions for individuals 21
  329  years of age and older; authorization of emergency and urgent
  330  care admissions within 24 hours after admission; enhanced
  331  utilization and concurrent review programs for highly utilized
  332  services; reduction or elimination of covered days of service;
  333  adjusting reimbursement ceilings for variable costs; adjusting
  334  reimbursement ceilings for fixed and property costs; and
  335  implementing target rates of increase.
  336         2. The agency may limit prior authorization for hospital
  337  inpatient services to selected diagnosis-related groups, based
  338  on an analysis of the cost and potential for unnecessary
  339  hospitalizations represented by certain diagnoses. Admissions
  340  for normal delivery and newborns are exempt from requirements
  341  for prior authorization.
  342         3. In implementing the provisions of this section related
  343  to prior authorization, the agency shall ensure that the process
  344  for authorization is accessible 24 hours per day, 7 days per
  345  week and authorization is automatically granted when not denied
  346  within 4 hours after the request. Authorization procedures must
  347  include steps for review of denials.
  348         4. Upon implementing the prior authorization program for
  349  hospital inpatient services, the agency shall discontinue its
  350  hospital retrospective review program. However, This paragraph
  351  subparagraph may not be construed to prevent the agency from
  352  conducting retrospective reviews under s. 409.913, including,
  353  but not limited to, reviews of prior-authorized claims and
  354  reviews in which an overpayment is suspected due to a mistake or
  355  submission of an improper claim or for other reasons that do not
  356  rise to the level of fraud or abuse.
  357         (f) In its coverage of services under this subsection, the
  358  agency shall maintain cost-effective purchasing practices as
  359  required by s. 409.912.
  360         Section 4. Present subsections (14) through (29) of section
  361  409.906, Florida Statutes, are redesignated as subsections (15)
  362  through (30), respectively, and a new subsection (14) is added
  363  to that section, to read:
  364         409.906 Optional Medicaid services.—Subject to specific
  365  appropriations, the agency may make payments for services which
  366  are optional to the state under Title XIX of the Social Security
  367  Act and are furnished by Medicaid providers to recipients who
  368  are determined to be eligible on the dates on which the services
  369  were provided. Any optional service that is provided shall be
  370  provided only when medically necessary and in accordance with
  371  state and federal law. Optional services rendered by providers
  372  in mobile units to Medicaid recipients may be restricted or
  373  prohibited by the agency. Nothing in this section shall be
  374  construed to prevent or limit the agency from adjusting fees,
  375  reimbursement rates, lengths of stay, number of visits, or
  376  number of services, or making any other adjustments necessary to
  377  comply with the availability of moneys and any limitations or
  378  directions provided for in the General Appropriations Act or
  379  chapter 216. If necessary to safeguard the state’s systems of
  380  providing services to elderly and disabled persons and subject
  381  to the notice and review provisions of s. 216.177, the Governor
  382  may direct the Agency for Health Care Administration to amend
  383  the Medicaid state plan to delete the optional Medicaid service
  384  known as “Intermediate Care Facilities for the Developmentally
  385  Disabled.” Optional services may include:
  386         (14) HOME- AND COMMUNITY-BASED BEHAVIORAL HEALTH SERVICES.
  387  The agency shall seek federal approval to implement a program
  388  that covers an expanded array of home- and community-based
  389  services for adults 18 years of age and older diagnosed with a
  390  serious mental illness who are high utilizers of behavioral
  391  health services in an institutional setting. The program must be
  392  designed to reduce the need for institutional levels of care for
  393  adults with a serious mental illness. The agency shall work in
  394  coordination with the Department of Children and Families to
  395  develop the program. The agency and the department shall produce
  396  estimates of the program′s potential costs to the Medicaid
  397  program and cost-savings for the department. Such estimates must
  398  be submitted to the Legislature as legislative budget requests
  399  and appropriated in the General Appropriations Act before the
  400  program may be implemented.
  401         Section 5. Section 409.91195, Florida Statutes, is amended
  402  to read:
  403         409.91195 Medicaid Pharmaceutical and Therapeutics
  404  Committee.—There is created a Medicaid Pharmaceutical and
  405  Therapeutics Committee within the agency for the purpose of
  406  developing a Medicaid preferred drug list, a Medicaid preferred
  407  physician-administered drug list, a Medicaid preferred product
  408  list, and a high-cost drug list.
  409         (1) The committee shall be composed of 11 members appointed
  410  by the Governor. Four members shall be physicians, licensed
  411  under chapter 458; one member licensed under chapter 459; five
  412  members shall be pharmacists licensed under chapter 465; and one
  413  member shall be a consumer representative. The members shall be
  414  appointed to serve for terms of 2 years from the date of their
  415  appointment. Members may be appointed to more than one term. The
  416  agency shall serve as staff for the committee and assist them
  417  with all ministerial duties. The Governor shall ensure that at
  418  least some of the members of the committee represent Medicaid
  419  participating physicians and pharmacies serving all segments and
  420  diversity of the Medicaid population, and have experience in
  421  either developing or practicing under a preferred drug list. At
  422  least one of the members shall represent the interests of
  423  pharmaceutical manufacturers.
  424         (2) Committee members shall select a chairperson and a vice
  425  chairperson each year from the committee membership.
  426         (3) The committee shall meet at least quarterly and may
  427  meet at other times at the discretion of the chairperson and
  428  members. The committee shall comply with rules adopted by the
  429  agency, including notice of any meeting of the committee
  430  pursuant to the requirements of the Administrative Procedure
  431  Act.
  432         (4) Upon recommendation of the committee, the agency shall
  433  adopt a preferred drug list, a preferred physician-administered
  434  drug list, a preferred product list, and a high-cost drug list
  435  as described in s. 409.912(5). To the extent feasible, the
  436  committee shall review all drug or product classes included on
  437  the preferred drug list, the preferred physician-administered
  438  drug list, the preferred product list, and the high-cost drug
  439  list every 6 12 months, and may recommend additions to and
  440  deletions from the lists preferred drug list, such that the
  441  lists provide preferred drug list provides for medically
  442  appropriate drug and product therapies for Medicaid patients
  443  which achieve cost savings contained in the General
  444  Appropriations Act.
  445         (5) Except for antiretroviral drugs, reimbursement of drugs
  446  not included on the preferred drug list, preferred physician
  447  administered drug list, preferred product list, or high-cost
  448  drug list is subject to prior authorization.
  449         (6) The agency shall publish and disseminate the preferred
  450  drug list, preferred physician-administered drug list, preferred
  451  product list, and high-cost drug list to all Medicaid providers
  452  in the state by Internet posting on the agency’s website or in
  453  other media.
  454         (7) The committee shall ensure that interested parties,
  455  including pharmaceutical manufacturers agreeing to provide a
  456  supplemental rebate as outlined in this chapter, have an
  457  opportunity to present public testimony to the committee with
  458  information or evidence supporting inclusion of a drug or
  459  product on the preferred drug list, preferred physician
  460  administered drug list, preferred product list, or high-cost
  461  drug list. Such public testimony must shall occur before prior
  462  to any recommendations made by the committee for inclusion or
  463  exclusion from the preferred drug list, preferred physician
  464  administered drug list, preferred product list, or high-cost
  465  drug list. Upon timely notice, the agency shall ensure that any
  466  drug that has been approved or had any of its particular uses
  467  approved by the United States Food and Drug Administration under
  468  a priority review classification will be reviewed by the
  469  committee at the next regularly scheduled meeting following 3
  470  months of distribution of the drug to the general public.
  471         (8) The committee shall develop its preferred drug list,
  472  preferred physician-administered drug list, preferred product
  473  list, and high-cost drug list recommendations by considering the
  474  clinical efficacy, safety, and cost-effectiveness of a product.
  475         (9) The Medicaid Pharmaceutical and Therapeutics Committee
  476  may also make recommendations to the agency regarding the prior
  477  authorization of any prescribed drug covered by Medicaid.
  478         (10) Medicaid recipients may appeal agency preferred drug
  479  formulary decisions using the Medicaid fair hearing process
  480  administered by the Agency for Health Care Administration.
  481         Section 6. Paragraph (a) of subsection (5) of section
  482  409.912, Florida Statutes, is amended, and subsection (14) is
  483  added to that section, to read:
  484         409.912 Cost-effective purchasing of health care.—The
  485  agency shall purchase goods and services for Medicaid recipients
  486  in the most cost-effective manner consistent with the delivery
  487  of quality medical care. To ensure that medical services are
  488  effectively utilized, the agency may, in any case, require a
  489  confirmation or second physician’s opinion of the correct
  490  diagnosis for purposes of authorizing future services under the
  491  Medicaid program. This section does not restrict access to
  492  emergency services or poststabilization care services as defined
  493  in 42 C.F.R. s. 438.114. Such confirmation or second opinion
  494  shall be rendered in a manner approved by the agency. The agency
  495  shall maximize the use of prepaid per capita and prepaid
  496  aggregate fixed-sum basis services when appropriate and other
  497  alternative service delivery and reimbursement methodologies,
  498  including competitive bidding pursuant to s. 287.057, designed
  499  to facilitate the cost-effective purchase of a case-managed
  500  continuum of care. The agency shall also require providers to
  501  minimize the exposure of recipients to the need for acute
  502  inpatient, custodial, and other institutional care and the
  503  inappropriate or unnecessary use of high-cost services. The
  504  agency shall contract with a vendor to monitor and evaluate the
  505  clinical practice patterns of providers in order to identify
  506  trends that are outside the normal practice patterns of a
  507  provider’s professional peers or the national guidelines of a
  508  provider’s professional association. The vendor must be able to
  509  provide information and counseling to a provider whose practice
  510  patterns are outside the norms, in consultation with the agency,
  511  to improve patient care and reduce inappropriate utilization.
  512  The agency may mandate prior authorization, drug therapy
  513  management, or disease management participation for certain
  514  populations of Medicaid beneficiaries, certain drug classes, or
  515  particular drugs to prevent fraud, abuse, overuse, and possible
  516  dangerous drug interactions. The Pharmaceutical and Therapeutics
  517  Committee shall make recommendations to the agency on drugs for
  518  which prior authorization is required. The agency shall inform
  519  the Pharmaceutical and Therapeutics Committee of its decisions
  520  regarding drugs subject to prior authorization. The agency is
  521  authorized to limit the entities it contracts with or enrolls as
  522  Medicaid providers by developing a provider network through
  523  provider credentialing. The agency may competitively bid single
  524  source-provider contracts if procurement of goods or services
  525  results in demonstrated cost savings to the state without
  526  limiting access to care. The agency may limit its network based
  527  on the assessment of beneficiary access to care, provider
  528  availability, provider quality standards, time and distance
  529  standards for access to care, the cultural competence of the
  530  provider network, demographic characteristics of Medicaid
  531  beneficiaries, practice and provider-to-beneficiary standards,
  532  appointment wait times, beneficiary use of services, provider
  533  turnover, provider profiling, provider licensure history,
  534  previous program integrity investigations and findings, peer
  535  review, provider Medicaid policy and billing compliance records,
  536  clinical and medical record audits, and other factors. Providers
  537  are not entitled to enrollment in the Medicaid provider network.
  538  The agency shall determine instances in which allowing Medicaid
  539  beneficiaries to purchase durable medical equipment and other
  540  goods is less expensive to the Medicaid program than long-term
  541  rental of the equipment or goods. The agency may establish rules
  542  to facilitate purchases in lieu of long-term rentals in order to
  543  protect against fraud and abuse in the Medicaid program as
  544  defined in s. 409.913. The agency may seek federal waivers
  545  necessary to administer these policies.
  546         (5)(a) The agency shall implement a Medicaid prescribed
  547  drug spending-control program that includes the following
  548  components:
  549         1. A Medicaid preferred drug list and a Medicaid physician
  550  administered drug list. The preferred drug list, which shall be
  551  a listing of cost-effective therapeutic options recommended by
  552  the Medicaid Pharmacy and Therapeutics Committee established
  553  pursuant to s. 409.91195 and adopted by the agency for each
  554  therapeutic class on the preferred drug list. At the discretion
  555  of the committee, and when feasible, the preferred drug list
  556  should include at least two products in a therapeutic class. The
  557  physician-administered drug list shall be a listing of
  558  physician-administered drugs covered by the state Medicaid
  559  program, based on the United States Food and Drug
  560  Administration’s approved indications and compendia in 42 U.S.C.
  561  s. 1396r-8(g)(1)(B). Within the preferred physician-administered
  562  drug list, there must be a section containing a list of
  563  preferred physician-administered drugs that are cost-effective
  564  therapeutic options recommended by the Medicaid Pharmaceutical
  565  and Therapeutics Committee established pursuant to s. 409.91195.
  566  The physician-administered drug list must be updated at least
  567  twice a year. The agency may post and update the preferred drug
  568  list and the preferred physician-administered drug updates to
  569  the list on the agency’s an Internet website without following
  570  the rulemaking procedures of chapter 120. Antiretroviral agents
  571  are excluded from the preferred drug list. The agency shall also
  572  limit the amount of a prescribed drug dispensed to no more than
  573  a 34-day supply unless the drug products’ smallest marketed
  574  package is greater than a 34-day supply, or the drug is
  575  determined by the agency to be a maintenance drug in which case
  576  a 100-day maximum supply may be authorized. The agency may seek
  577  any federal waivers necessary to implement these cost-control
  578  programs and to continue participation in the federal Medicaid
  579  rebate program, or alternatively to negotiate state-only
  580  manufacturer rebates. The agency may adopt rules to administer
  581  this subparagraph. The agency shall continue to provide
  582  unlimited contraceptive drugs and items. The agency must
  583  establish procedures to ensure that:
  584         a. There is a response to a request for prior authorization
  585  by telephone or other telecommunication device within 24 hours
  586  after receipt of a request for prior authorization; and
  587         b. A 72-hour supply of the drug prescribed is provided in
  588  an emergency or when the agency does not provide a response
  589  within 24 hours as required by sub-subparagraph a.
  590         2. A Medicaid preferred product list, which shall be a
  591  listing of cost-effective therapeutic supplies recommended by
  592  the Medicaid Pharmaceutical and Therapeutics Committee
  593  established pursuant to s. 409.91195 and adopted by the agency
  594  for each product class listed on the preferred product list and
  595  reimbursed by the state Medicaid program through the pharmacy
  596  point-of-sale. The agency may post the preferred product list
  597  and updates to the list on the agency’s website without
  598  following the rulemaking procedures of chapter 120.
  599         3.A list of high-cost drugs recommended by the Medicaid
  600  Pharmaceutical and Therapeutics Committee established pursuant
  601  to s. 409.91195 and adopted by the agency, for the purpose of
  602  coverage, reimbursement, or billing guidance. The agency may
  603  post the high-cost drug list and updates to the list on the
  604  agency’s website without following the rulemaking procedures of
  605  chapter 120. The agency must establish procedures to ensure
  606  that:
  607         a. There is a response to a request for prior authorization
  608  for a high-cost drug by telephone or other telecommunication
  609  device within 24 hours after receipt of the request for prior
  610  authorization; and
  611         b. A 72-hour supply of the high-cost drug prescribed is
  612  provided in an emergency or when the agency does not provide a
  613  response to a prior authorization request within 24 hours as
  614  required by sub-subparagraph a.
  615         4. A provider of prescribed drugs is reimbursed in an
  616  amount not to exceed the lesser of the actual acquisition cost
  617  based on the Centers for Medicare and Medicaid Services National
  618  Average Drug Acquisition Cost pricing files plus a professional
  619  dispensing fee, the wholesale acquisition cost plus a
  620  professional dispensing fee, the state maximum allowable cost
  621  plus a professional dispensing fee, or the usual and customary
  622  charge billed by the provider.
  623         5.A hospital facility administering long-acting
  624  injectables for severe mental illness shall be reimbursed
  625  separately from the diagnosis-related group. Long-acting
  626  injectables administered for severe mental illness in a hospital
  627  facility setting shall be reimbursed at no less than the actual
  628  acquisition cost of the drug.
  629         6.The agency shall contract with a vendor to perform a
  630  detailed fiscal impact study to evaluate the 340B Drug Pricing
  631  Program administered by the Health Resources and Services
  632  Administration. The study must evaluate 340B compliance, 340B
  633  drug purchases, and reimbursement methodologies within the fee
  634  for-service program and Statewide Medicaid Managed Care program.
  635  Statewide Medicaid Managed Care plans, pharmacy benefit
  636  managers, and Medicaid providers shall submit to the agency all
  637  data necessary for the completion of the study, including, but
  638  not limited to, information related to drug purchasing,
  639  reimbursement, billing and coding, and dispensing. Noncompliance
  640  with the 340B data submission requirements of this subparagraph
  641  may result in sanctions from the agency or the Board of
  642  Pharmacy, as applicable. The agency shall submit the results of
  643  the study to the Governor, the President of the Senate, and the
  644  Speaker of the House of Representatives by June 30, 2027.
  645         7.3. The agency shall develop and implement a process for
  646  managing the drug therapies of Medicaid recipients who are using
  647  significant numbers of prescribed drugs each month. The
  648  management process may include, but is not limited to,
  649  comprehensive, physician-directed medical-record reviews, claims
  650  analyses, and case evaluations to determine the medical
  651  necessity and appropriateness of a patient’s treatment plan and
  652  drug therapies. The agency may contract with a private
  653  organization to provide drug-program-management services. The
  654  Medicaid drug benefit management program shall include
  655  initiatives to manage drug therapies for HIV/AIDS patients,
  656  patients using 20 or more unique prescriptions in a 180-day
  657  period, and the top 1,000 patients in annual spending. The
  658  agency shall enroll any Medicaid recipient in the drug benefit
  659  management program if he or she meets the specifications of this
  660  provision and is not enrolled in a Medicaid health maintenance
  661  organization.
  662         8.4. The agency may limit the size of its pharmacy network
  663  based on need, competitive bidding, price negotiations,
  664  credentialing, or similar criteria. The agency shall give
  665  special consideration to rural areas in determining the size and
  666  location of pharmacies included in the Medicaid pharmacy
  667  network. A pharmacy credentialing process may include criteria
  668  such as a pharmacy’s full-service status, location, size,
  669  patient educational programs, patient consultation, disease
  670  management services, and other characteristics. The agency may
  671  impose a moratorium on Medicaid pharmacy enrollment if it is
  672  determined that it has a sufficient number of Medicaid
  673  participating providers. The agency must allow dispensing
  674  practitioners to participate as a part of the Medicaid pharmacy
  675  network regardless of the practitioner’s proximity to any other
  676  entity that is dispensing prescription drugs under the Medicaid
  677  program. A dispensing practitioner must meet all credentialing
  678  requirements applicable to his or her practice, as determined by
  679  the agency.
  680         9.5. The agency shall develop and implement a program that
  681  requires Medicaid practitioners who issue written prescriptions
  682  for medicinal drugs to use a counterfeit-proof prescription pad
  683  for Medicaid prescriptions. The agency shall require the use of
  684  standardized counterfeit-proof prescription pads by prescribers
  685  who issue written prescriptions for Medicaid recipients. The
  686  agency may implement the program in targeted geographic areas or
  687  statewide.
  688         10.6. The agency may enter into arrangements that require
  689  manufacturers of generic drugs prescribed to Medicaid recipients
  690  to provide rebates of at least 15.1 percent of the average
  691  manufacturer price for the manufacturer’s generic products.
  692  These arrangements shall require that if a generic-drug
  693  manufacturer pays federal rebates for Medicaid-reimbursed drugs
  694  at a level below 15.1 percent, the manufacturer must provide a
  695  supplemental rebate to the state in an amount necessary to
  696  achieve a 15.1-percent rebate level.
  697         11.7. The agency may establish a preferred drug list as
  698  described in this subsection, and, pursuant to the establishment
  699  of such preferred drug list, negotiate supplemental rebates from
  700  manufacturers that are in addition to those required by Title
  701  XIX of the Social Security Act and at no less than 14 percent of
  702  the average manufacturer price as defined in 42 U.S.C. s. 1936
  703  on the last day of a quarter unless the federal or supplemental
  704  rebate, or both, equals or exceeds 29 percent. There is no upper
  705  limit on the supplemental rebates the agency may negotiate. The
  706  agency may determine that specific products, brand-name or
  707  generic, are competitive at lower rebate percentages. Agreement
  708  to pay the minimum supplemental rebate percentage guarantees a
  709  manufacturer that the Medicaid Pharmaceutical and Therapeutics
  710  Committee will consider a product for inclusion on the preferred
  711  drug list. However, a pharmaceutical manufacturer is not
  712  guaranteed placement on the preferred drug list by simply paying
  713  the minimum supplemental rebate. Agency decisions will be made
  714  on the clinical efficacy of a drug and recommendations of the
  715  Medicaid Pharmaceutical and Therapeutics Committee, as well as
  716  the price of competing products minus federal and state rebates.
  717  The agency may contract with an outside agency or contractor to
  718  conduct negotiations for supplemental rebates. For the purposes
  719  of this section, the term “supplemental rebates” means cash
  720  rebates. Value-added programs as a substitution for supplemental
  721  rebates are prohibited. The agency may seek any federal waivers
  722  to implement this initiative.
  723         12.a.8.a. The agency may implement a Medicaid behavioral
  724  drug management system. The agency may contract with a vendor
  725  that has experience in operating behavioral drug management
  726  systems to implement this program. The agency may seek federal
  727  waivers to implement this program.
  728         b. The agency, in conjunction with the Department of
  729  Children and Families, may implement the Medicaid behavioral
  730  drug management system that is designed to improve the quality
  731  of care and behavioral health prescribing practices based on
  732  best practice guidelines, improve patient adherence to
  733  medication plans, reduce clinical risk, and lower prescribed
  734  drug costs and the rate of inappropriate spending on Medicaid
  735  behavioral drugs. The program may include the following
  736  elements:
  737         (I) Provide for the development and adoption of best
  738  practice guidelines for behavioral health-related drugs such as
  739  antipsychotics, antidepressants, and medications for treating
  740  bipolar disorders and other behavioral conditions; translate
  741  them into practice; review behavioral health prescribers and
  742  compare their prescribing patterns to a number of indicators
  743  that are based on national standards; and determine deviations
  744  from best practice guidelines.
  745         (II) Implement processes for providing feedback to and
  746  educating prescribers using best practice educational materials
  747  and peer-to-peer consultation.
  748         (III) Assess Medicaid beneficiaries who are outliers in
  749  their use of behavioral health drugs with regard to the numbers
  750  and types of drugs taken, drug dosages, combination drug
  751  therapies, and other indicators of improper use of behavioral
  752  health drugs.
  753         (IV) Alert prescribers to patients who fail to refill
  754  prescriptions in a timely fashion, are prescribed multiple same
  755  class behavioral health drugs, and may have other potential
  756  medication problems.
  757         (V) Track spending trends for behavioral health drugs and
  758  deviation from best practice guidelines.
  759         (VI) Use educational and technological approaches to
  760  promote best practices, educate consumers, and train prescribers
  761  in the use of practice guidelines.
  762         (VII) Disseminate electronic and published materials.
  763         (VIII) Hold statewide and regional conferences.
  764         (IX) Implement a disease management program with a model
  765  quality-based medication component for severely mentally ill
  766  individuals and emotionally disturbed children who are high
  767  users of care.
  768         13.9. The agency shall implement a Medicaid prescription
  769  drug management system.
  770         a. The agency may contract with a vendor that has
  771  experience in operating prescription drug management systems in
  772  order to implement this system. Any management system that is
  773  implemented in accordance with this subparagraph must rely on
  774  cooperation between physicians and pharmacists to determine
  775  appropriate practice patterns and clinical guidelines to improve
  776  the prescribing, dispensing, and use of drugs in the Medicaid
  777  program. The agency may seek federal waivers to implement this
  778  program.
  779         b. The drug management system must be designed to improve
  780  the quality of care and prescribing practices based on best
  781  practice guidelines, improve patient adherence to medication
  782  plans, reduce clinical risk, and lower prescribed drug costs and
  783  the rate of inappropriate spending on Medicaid prescription
  784  drugs. The program must:
  785         (I) Provide for the adoption of best practice guidelines
  786  for the prescribing and use of drugs in the Medicaid program,
  787  including translating best practice guidelines into practice;
  788  reviewing prescriber patterns and comparing them to indicators
  789  that are based on national standards and practice patterns of
  790  clinical peers in their community, statewide, and nationally;
  791  and determine deviations from best practice guidelines.
  792         (II) Implement processes for providing feedback to and
  793  educating prescribers using best practice educational materials
  794  and peer-to-peer consultation.
  795         (III) Assess Medicaid recipients who are outliers in their
  796  use of a single or multiple prescription drugs with regard to
  797  the numbers and types of drugs taken, drug dosages, combination
  798  drug therapies, and other indicators of improper use of
  799  prescription drugs.
  800         (IV) Alert prescribers to recipients who fail to refill
  801  prescriptions in a timely fashion, are prescribed multiple drugs
  802  that may be redundant or contraindicated, or may have other
  803  potential medication problems.
  804         14.10. The agency may contract for drug rebate
  805  administration, including, but not limited to, calculating
  806  rebate amounts, invoicing manufacturers, negotiating disputes
  807  with manufacturers, and maintaining a database of rebate
  808  collections.
  809         15.11. The agency may specify the preferred daily dosing
  810  form or strength for the purpose of promoting best practices
  811  with regard to the prescribing of certain drugs as specified in
  812  the General Appropriations Act and ensuring cost-effective
  813  prescribing practices.
  814         16.12. The agency may require prior authorization for
  815  Medicaid-covered prescribed drugs. The agency may prior
  816  authorize the use of a product:
  817         a. For an indication not approved in labeling;
  818         b. To comply with certain clinical guidelines; or
  819         c. If the product has the potential for overuse, misuse, or
  820  abuse.
  821  
  822  The agency may require the prescribing professional to provide
  823  information about the rationale and supporting medical evidence
  824  for the use of a drug. The agency shall post prior
  825  authorization, step-edit criteria and protocol, and updates to
  826  the list of drugs that are subject to prior authorization on the
  827  agency’s Internet website within 21 days after the prior
  828  authorization and step-edit criteria and protocol and updates
  829  are approved by the agency. For purposes of this subparagraph,
  830  the term “step-edit” means an automatic electronic review of
  831  certain medications subject to prior authorization.
  832         17.13. The agency, in conjunction with the Pharmaceutical
  833  and Therapeutics Committee, may require age-related prior
  834  authorizations for certain prescribed drugs. The agency may
  835  preauthorize the use of a drug for a recipient who may not meet
  836  the age requirement or may exceed the length of therapy for use
  837  of this product as recommended by the manufacturer and approved
  838  by the Food and Drug Administration. Prior authorization may
  839  require the prescribing professional to provide information
  840  about the rationale and supporting medical evidence for the use
  841  of a drug.
  842         18.14. The agency shall implement a step-therapy prior
  843  authorization approval process for medications excluded from the
  844  preferred drug list. Medications listed on the preferred drug
  845  list must be used within the previous 12 months before the
  846  alternative medications that are not listed. The step-therapy
  847  prior authorization may require the prescriber to use the
  848  medications of a similar drug class or for a similar medical
  849  indication unless contraindicated in the Food and Drug
  850  Administration labeling. The trial period between the specified
  851  steps may vary according to the medical indication. The step
  852  therapy approval process shall be developed in accordance with
  853  the committee as stated in s. 409.91195(7) and (8). A drug
  854  product may be approved without meeting the step-therapy prior
  855  authorization criteria if the prescribing physician provides the
  856  agency with additional written medical or clinical documentation
  857  that the product is medically necessary because:
  858         a. There is not a drug on the preferred drug list to treat
  859  the disease or medical condition which is an acceptable clinical
  860  alternative;
  861         b. The alternatives have been ineffective in the treatment
  862  of the beneficiary’s disease;
  863         c. The drug product or medication of a similar drug class
  864  is prescribed for the treatment of schizophrenia or schizotypal
  865  or delusional disorders; prior authorization has been granted
  866  previously for the prescribed drug; and the medication was
  867  dispensed to the patient during the previous 12 months; or
  868         d. Based on historical evidence and known characteristics
  869  of the patient and the drug, the drug is likely to be
  870  ineffective, or the number of doses have been ineffective.
  871  
  872  The agency shall work with the physician to determine the best
  873  alternative for the patient. The agency may adopt rules waiving
  874  the requirements for written clinical documentation for specific
  875  drugs in limited clinical situations.
  876         19.15. The agency shall implement a return and reuse
  877  program for drugs dispensed by pharmacies to institutional
  878  recipients, which includes payment of a $5 restocking fee for
  879  the implementation and operation of the program. The return and
  880  reuse program shall be implemented electronically and in a
  881  manner that promotes efficiency. The program must permit a
  882  pharmacy to exclude drugs from the program if it is not
  883  practical or cost-effective for the drug to be included and must
  884  provide for the return to inventory of drugs that cannot be
  885  credited or returned in a cost-effective manner. The agency
  886  shall determine if the program has reduced the amount of
  887  Medicaid prescription drugs which are destroyed on an annual
  888  basis and if there are additional ways to ensure more
  889  prescription drugs are not destroyed which could safely be
  890  reused.
  891         (14) Neither this section nor this chapter prevents the
  892  agency from conducting retrospective reviews, investigations,
  893  analyses, audits, or any combination thereof to determine
  894  possible fraud, abuse, overpayment, or recipient neglect in the
  895  state Medicaid program pursuant to s. 409.913, including, but
  896  not limited to, reviews in which the services were the subject
  897  of a utilization review or prior authorization process.
  898         Section 7. Paragraph (e) of subsection (1) and subsections
  899  (2) and (6) of section 409.913, Florida Statutes, are amended to
  900  read:
  901         409.913 Oversight of the integrity of the Medicaid
  902  program.—The agency shall operate a program to oversee the
  903  activities of Florida Medicaid recipients, and providers and
  904  their representatives, to ensure that fraudulent and abusive
  905  behavior and neglect of recipients occur to the minimum extent
  906  possible, and to recover overpayments and impose sanctions as
  907  appropriate. Each January 15, the agency and the Medicaid Fraud
  908  Control Unit of the Department of Legal Affairs shall submit a
  909  report to the Legislature documenting the effectiveness of the
  910  state’s efforts to control Medicaid fraud and abuse and to
  911  recover Medicaid overpayments during the previous fiscal year.
  912  The report must describe the number of cases opened and
  913  investigated each year; the sources of the cases opened; the
  914  disposition of the cases closed each year; the amount of
  915  overpayments alleged in preliminary and final audit letters; the
  916  number and amount of fines or penalties imposed; any reductions
  917  in overpayment amounts negotiated in settlement agreements or by
  918  other means; the amount of final agency determinations of
  919  overpayments; the amount deducted from federal claiming as a
  920  result of overpayments; the amount of overpayments recovered
  921  each year; the amount of cost of investigation recovered each
  922  year; the average length of time to collect from the time the
  923  case was opened until the overpayment is paid in full; the
  924  amount determined as uncollectible and the portion of the
  925  uncollectible amount subsequently reclaimed from the Federal
  926  Government; the number of providers, by type, that are
  927  terminated from participation in the Medicaid program as a
  928  result of fraud and abuse; and all costs associated with
  929  discovering and prosecuting cases of Medicaid overpayments and
  930  making recoveries in such cases. The report must also document
  931  actions taken to prevent overpayments and the number of
  932  providers prevented from enrolling in or reenrolling in the
  933  Medicaid program as a result of documented Medicaid fraud and
  934  abuse and must include policy recommendations necessary to
  935  prevent or recover overpayments and changes necessary to prevent
  936  and detect Medicaid fraud. All policy recommendations in the
  937  report must include a detailed fiscal analysis, including, but
  938  not limited to, implementation costs, estimated savings to the
  939  Medicaid program, and the return on investment. The agency must
  940  submit the policy recommendations and fiscal analyses in the
  941  report to the appropriate estimating conference, pursuant to s.
  942  216.137, by February 15 of each year. The agency and the
  943  Medicaid Fraud Control Unit of the Department of Legal Affairs
  944  each must include detailed unit-specific performance standards,
  945  benchmarks, and metrics in the report, including projected cost
  946  savings to the state Medicaid program during the following
  947  fiscal year.
  948         (1) For the purposes of this section, the term:
  949         (e) “Overpayment” includes any amount that is not
  950  authorized to be paid by the Medicaid program or that should not
  951  have been paid, including payments made whether paid as a result
  952  of inaccurate or improper cost reporting, improper claiming,
  953  unacceptable practices, fraud, abuse, or mistake, and may
  954  include amounts paid for goods or services that were the subject
  955  of a utilization review or prior authorization process.
  956         (2) The agency shall conduct, or cause to be conducted by
  957  contract or otherwise, reviews, investigations, analyses,
  958  audits, or any combination thereof, to determine possible fraud,
  959  abuse, overpayment, or recipient neglect in the Medicaid program
  960  and shall report the findings of any overpayments in audit
  961  reports as appropriate. An overpayment determination may be
  962  based upon retrospective reviews, investigations, analyses,
  963  audits, or any combination thereof to determine possible fraud,
  964  abuse, overpayment, or recipient neglect in the Medicaid
  965  program, regardless of whether a prior authorization was issued.
  966  At least 5 percent of all audits shall be conducted on a random
  967  basis. As part of its ongoing fraud detection activities, the
  968  agency shall identify and monitor, by contract or otherwise,
  969  patterns of overutilization of Medicaid services based on state
  970  averages. The agency shall track Medicaid provider prescription
  971  and billing patterns and evaluate them against Medicaid medical
  972  necessity criteria and coverage and limitation guidelines
  973  adopted by rule. Medical necessity determination requires that
  974  service be consistent with symptoms or confirmed diagnosis of
  975  illness or injury under treatment and not in excess of the
  976  patient’s needs. The agency shall conduct reviews of provider
  977  exceptions to peer group norms and shall, using statistical
  978  methodologies, provider profiling, and analysis of billing
  979  patterns, detect and investigate abnormal or unusual increases
  980  in billing or payment of claims for Medicaid services and
  981  medically unnecessary provision of services.
  982         (6) Any notice required to be given to a provider under
  983  this section is presumed to be sufficient notice if sent to the
  984  mailing address last shown on the provider enrollment file. It
  985  is the responsibility of the provider to furnish and keep the
  986  agency informed of the provider’s current mailing and service
  987  addresses address. United States Postal Service or other common
  988  carrier’s proof of mailing or certified or registered mailing of
  989  such notice to the provider at the address shown on the provider
  990  enrollment file constitutes sufficient proof of notice. Any
  991  notice required to be given to the agency by this section must
  992  be sent to the agency at an address designated by rule.
  993         Section 8. Section 414.321, Florida Statutes, is created to
  994  read:
  995         414.321Food assistance eligibility.—For purposes of
  996  eligibility determinations, the department shall:
  997         (1)Limit eligibility to individuals who are residents of
  998  the United States and:
  999         (a)Citizens or nationals of the United States;
 1000         (b)Aliens lawfully admitted for permanent residence as
 1001  defined in the Immigration and Nationality Act, as amended;
 1002         (c)Aliens who have been granted the status of Cuban and
 1003  Haitian entrant, as defined in the Refugee Education Assistance
 1004  Act of 1980, as amended; or
 1005         (d)Individuals who lawfully reside in the United States in
 1006  accordance with the Compacts of Free Association referred to in
 1007  the Personal Responsibility and Work Opportunity Reconciliation
 1008  Act of 1996.
 1009         (2)Require each applicant, or recipient for
 1010  redetermination purposes, to provide documentation evidencing
 1011  his or her shelter or utility expenses.
 1012         (a)The department is prohibited from relying solely on an
 1013  individual’s self-attestation in determining shelter or utility
 1014  expenses.
 1015         (b)The department may adopt policies and procedures to
 1016  accommodate an applicant or a recipient who, due to recent
 1017  residency changes, is temporarily unable to furnish adequate
 1018  documentation of shelter or utility expenses.
 1019         Section 9. Section 414.332, Florida Statutes, is created to
 1020  read:
 1021         414.332Food assistance payment accuracy plan.—
 1022         (1)The department shall develop and implement a
 1023  comprehensive food assistance payment accuracy improvement plan
 1024  to reduce the state’s payment error rate. The department must
 1025  reduce the payment error rate to below 6 percent. The plan must
 1026  address the root causes of payment errors identified through an
 1027  in-depth, data-driven analysis. The plan must include, but need
 1028  not be limited to, all of the following:
 1029         (a)Enhanced employee training and quality assurance.
 1030         1.The department shall administer standardized training
 1031  for all economic self-sufficiency program staff at least
 1032  annually. Training must, at a minimum, review the most common
 1033  reasons for payment errors and methods for preventing such
 1034  errors, and include pre- and post-training testing to measure
 1035  staff proficiency.
 1036         2.The department shall establish a robust quality
 1037  assurance review process that frequently reviews a statistically
 1038  significant sample of cases before final benefit determination.
 1039  This process must incorporate real-time, corrective feedback and
 1040  on-the-job training for program staff and may not delay benefit
 1041  determinations.
 1042         (b)Improvement in data sourcing. In contracting with
 1043  entities providing data for verification of applicant and
 1044  recipient information, the department shall maximize use of high
 1045  quality automated data sources, including, but not limited to,
 1046  comparing income and asset data with state, federal, and private
 1047  sector data sources.
 1048         (2)By July 15, 2026, the department shall submit the food
 1049  assistance payment accuracy improvement plan to the Governor,
 1050  the President of the Senate, and the Speaker of the House of
 1051  Representatives.
 1052         (3)(a)Beginning October 1, 2026, the department shall
 1053  submit quarterly progress reports to the Governor, the President
 1054  of the Senate, and the Speaker of the House of Representatives
 1055  detailing:
 1056         1.The state’s most recent official and preliminary food
 1057  assistance payment error rate.
 1058         2.A detailed breakdown of the most frequent and highest
 1059  dollar value errors, including categorization by agency or
 1060  client error and whether the error resulted in over- or under
 1061  payment.
 1062         3.Specific actions taken by the department under the food
 1063  assistance payment accuracy improvement plan during the
 1064  preceding quarter and data demonstrating the results of those
 1065  actions.
 1066         4.A detailed plan to correct the most recently identified
 1067  deficiencies.
 1068         (b)This subsection is repealed on October 1, 2028.
 1069         Section 10. Present subsections (6) through (11) of section
 1070  414.39, Florida Statutes, are redesignated as subsections (7)
 1071  through (12), respectively, and a new subsection (6) is added to
 1072  that section, to read:
 1073         414.39 Fraud.—
 1074         (6) The department shall require the use of photographic
 1075  identification on the front of each newly issued and reissued
 1076  electronic benefits transfer (EBT) card for each cardholder to
 1077  the maximum extent allowed by federal laws and regulations.
 1078         Section 11. Subsection (2) of section 414.455, Florida
 1079  Statutes, is amended to read:
 1080         414.455 Supplemental Nutrition Assistance Program;
 1081  legislative authorization; mandatory participation in employment
 1082  and training programs.—
 1083         (2) Unless prohibited by the Federal Government, the
 1084  department must require a person who is receiving food
 1085  assistance; who is 18 to 64 59 years of age, inclusive; who does
 1086  not have children under the age of 14 18 in his or her home; who
 1087  does not qualify for an exemption; and who is determined by the
 1088  department to be eligible, to participate in an employment and
 1089  training program. The department shall apply and comply with
 1090  exemptions from work requirements in accordance with applicable
 1091  federal law.
 1092         Section 12. Subsection (1) of section 409.91196, Florida
 1093  Statutes, is amended to read:
 1094         409.91196 Supplemental rebate agreements; public records
 1095  and public meetings exemption.—
 1096         (1) The rebate amount, percent of rebate, manufacturer’s
 1097  pricing, and supplemental rebate, and other trade secrets as
 1098  defined in s. 688.002 that the agency has identified for use in
 1099  negotiations, held by the Agency for Health Care Administration
 1100  under s. 409.912(5)(a)11. s. 409.912(5)(a)7. are confidential
 1101  and exempt from s. 119.07(1) and s. 24(a), Art. I of the State
 1102  Constitution.
 1103         Section 13. This act shall take effect July 1, 2026.