Florida Senate - 2026                      CS for CS for SB 1758
       
       
        
       By the Committees on Appropriations; and Health Policy; and
       Senators Gaetz, Brodeur, and Massullo
       
       
       
       
       576-03342-26                                          20261758c2
    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 for severe mental illness in a hospital
   94         facility setting; requiring the agency to contract
   95         with 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 plan must also include a methodology to
  196  provide those Medicaid recipients who stand to lose Medicaid
  197  eligibility due to earning income under the requirements of
  198  subsection (3) with a transition period to temporarily maintain
  199  eligibility, under parameters similar to those that enable a
  200  family eligible for temporary cash assistance to temporarily
  201  maintain Medicaid eligibility under s. 445.029. The agency shall
  202  submit the plan to the Governor, the President of the Senate,
  203  and the Speaker of the House of Representatives no later than
  204  December 1, 2026.
  205         (3)(a)Medicaid recipients between the ages of 19 and 64
  206  years, inclusive, must meet the work or community engagement
  207  requirements of this section, unless they are one of the
  208  following:
  209         1.Indian as defined under 42 C.F.R. s. 438.14(a).
  210         2.A parent, guardian, caretaker relative, or family
  211  caregiver of a dependent child younger than 14 years of age or
  212  of a disabled individual. For purposes of this paragraph, the
  213  term “family caregiver” means an adult family member or other
  214  individual who has a significant relationship with, and who
  215  provides a broad range of assistance to, an individual with a
  216  chronic or other health condition, disability, or functional
  217  limitation.
  218         3.Former foster youth younger than 26 years of age.
  219         4.A veteran with a total disability, as specified under 38
  220  C.F.R. s. 3.340 or as specified by a Veteran Affairs Disability
  221  Ratings Letter issued by the United States Department of
  222  Veterans Affairs.
  223         5.An individual classified as medically frail under the
  224  Medicaid Institutionalized Care Program; categorized as aged,
  225  blind, or disabled under the state Medicaid program; or who has
  226  a developmental disability as defined in s. 393.063.
  227         6.An individual living in a household that receives
  228  Supplemental Nutrition Assistance Program benefits and who is
  229  already in compliance with work requirements pursuant to s.
  230  445.024.
  231         7.An individual participating in a residential substance
  232  use treatment program.
  233         8.An inmate of a public institution.
  234         9.A woman eligible for Medicaid coverage in a pregnancy
  235  related or postpartum care category.
  236         10. A person receiving hospice services under part IV of
  237  chapter 400 who has a medical prognosis that his or her life
  238  expectancy is 6 months or less if his or her illness runs its
  239  normal course.
  240         (b)A person may satisfy the work or community engagement
  241  requirements of this section by participating in one or more of
  242  the following activities for at least 80 hours per month:
  243         1.Paid employment.
  244         2.On-the-job-training.
  245         3.Vocational educational training.
  246         4.Job skills training directly related to employment.
  247         5.Education directly related to employment.
  248         6.Satisfactory attendance at a secondary school or in a
  249  course of study leading to a high school equivalency diploma.
  250         7.Enrollment at least half-time as defined in 34 C.F.R. s.
  251  668.2(b) in a postsecondary education program to obtain a
  252  credential on the Master Credentials List as maintained pursuant
  253  to s. 445.004(6)(e).
  254         8.Any other work activity designated as such by the
  255  Department of Commerce and provided by a local workforce
  256  development board pursuant to s. 445.024.
  257         (c)Parents with children ages 14 through 18 are required
  258  to engage in work or community engagement activities only during
  259  standard school hours.
  260         (4)(a)Notwithstanding any other statutory provision, in
  261  order to maintain Medicaid coverage, an eligible Medicaid
  262  recipient must, before enrollment and upon any redetermination
  263  for coverage, demonstrate compliance with the work or community
  264  engagement requirements of this section.
  265         (b)The agency shall develop a process for ensuring
  266  compliance with this section which aligns, to the extent
  267  possible, with the processes currently in place relating to work
  268  and community engagement requirements authorized under the
  269  state’s Supplemental Nutrition Assistance Program, including,
  270  but not limited to, participant registration with a local
  271  CareerSource center, employment and training programs, and
  272  collaboration with the state’s local workforce boards.
  273         (c)The department shall verify, in accordance with its
  274  procedures, that an individual subject to the work and community
  275  engagement requirements of this section demonstrates compliance
  276  during the individual’s regularly scheduled redetermination of
  277  eligibility and at least every 6 months thereafter.
  278         (5)The agency, in coordination with the department, shall
  279  conduct outreach regarding the implementation of the work and
  280  community engagement requirements of this section. The outreach
  281  must include, at a minimum, notification to impacted
  282  individuals, including timelines for implementation,
  283  requirements for compliance, penalties for noncompliance, and
  284  information on how to request an exemption.
  285         (6)If a recipient subject to the work and community
  286  engagement requirements of this section is determined to be in
  287  noncompliance with such requirements, the agency, in
  288  coordination with the department, must notify the recipient of
  289  the finding of noncompliance and the impact to his or her
  290  eligibility for continued receipt of Medicaid services. The
  291  notice must include, at a minimum, notification of all of the
  292  following:
  293         (a)That the recipient is eligible for a grace period of 30
  294  days to either come into compliance with the requirements or
  295  request an exemption from the requirements and that Medicaid
  296  coverage of services will continue during the grace period.
  297         (b)That if, following the 30-day period, the individual
  298  has not come into compliance with or requested an exemption from
  299  the work and community engagement requirements, his or her
  300  application for assistance will be denied and services
  301  terminated at the end of the month following the month in which
  302  such 30-calendar-day period ends.
  303         (c)The right of the individual to request a fair hearing
  304  if he or she is determined to be noncompliant with program
  305  requirements and disenrolled from the state Medicaid program.
  306         (d)The manner in which he or she can reapply for medical
  307  assistance under the state Medicaid program.
  308         Section 3. Paragraph (a) of subsection (5) of section
  309  409.905, Florida Statutes, is amended, and paragraph (f) is
  310  added to that subsection, to read:
  311         409.905 Mandatory Medicaid services.—The agency may make
  312  payments for the following services, which are required of the
  313  state by Title XIX of the Social Security Act, furnished by
  314  Medicaid providers to recipients who are determined to be
  315  eligible on the dates on which the services were provided. Any
  316  service under this section shall be provided only when medically
  317  necessary and in accordance with state and federal law.
  318  Mandatory services rendered by providers in mobile units to
  319  Medicaid recipients may be restricted by the agency. Nothing in
  320  this section shall be construed to prevent or limit the agency
  321  from adjusting fees, reimbursement rates, lengths of stay,
  322  number of visits, number of services, or any other adjustments
  323  necessary to comply with the availability of moneys and any
  324  limitations or directions provided for in the General
  325  Appropriations Act or chapter 216.
  326         (5) HOSPITAL INPATIENT SERVICES.—The agency shall pay for
  327  all covered services provided for the medical care and treatment
  328  of a recipient who is admitted as an inpatient by a licensed
  329  physician or dentist to a hospital licensed under part I of
  330  chapter 395. However, the agency shall limit the payment for
  331  inpatient hospital services for a Medicaid recipient 21 years of
  332  age or older to 45 days or the number of days necessary to
  333  comply with the General Appropriations Act.
  334         (a)1. The agency may implement reimbursement and
  335  utilization management reforms in order to comply with any
  336  limitations or directions in the General Appropriations Act,
  337  which may include, but are not limited to: prior authorization
  338  for inpatient psychiatric days; prior authorization for
  339  nonemergency hospital inpatient admissions for individuals 21
  340  years of age and older; authorization of emergency and urgent
  341  care admissions within 24 hours after admission; enhanced
  342  utilization and concurrent review programs for highly utilized
  343  services; reduction or elimination of covered days of service;
  344  adjusting reimbursement ceilings for variable costs; adjusting
  345  reimbursement ceilings for fixed and property costs; and
  346  implementing target rates of increase.
  347         2. The agency may limit prior authorization for hospital
  348  inpatient services to selected diagnosis-related groups, based
  349  on an analysis of the cost and potential for unnecessary
  350  hospitalizations represented by certain diagnoses. Admissions
  351  for normal delivery and newborns are exempt from requirements
  352  for prior authorization.
  353         3. In implementing the provisions of this section related
  354  to prior authorization, the agency shall ensure that the process
  355  for authorization is accessible 24 hours per day, 7 days per
  356  week and authorization is automatically granted when not denied
  357  within 4 hours after the request. Authorization procedures must
  358  include steps for review of denials.
  359         4. Upon implementing the prior authorization program for
  360  hospital inpatient services, the agency shall discontinue its
  361  hospital retrospective review program. However, This paragraph
  362  subparagraph may not be construed to prevent the agency from
  363  conducting retrospective reviews under s. 409.913, including,
  364  but not limited to, reviews of prior-authorized claims and
  365  reviews in which an overpayment is suspected due to a mistake or
  366  submission of an improper claim or for other reasons that do not
  367  rise to the level of fraud or abuse.
  368         (f) In its coverage of services under this subsection, the
  369  agency shall maintain cost-effective purchasing practices as
  370  required by s. 409.912.
  371         Section 4. Present subsections (14) through (29) of section
  372  409.906, Florida Statutes, are redesignated as subsections (15)
  373  through (30), respectively, and a new subsection (14) is added
  374  to that section, to read:
  375         409.906 Optional Medicaid services.—Subject to specific
  376  appropriations, the agency may make payments for services which
  377  are optional to the state under Title XIX of the Social Security
  378  Act and are furnished by Medicaid providers to recipients who
  379  are determined to be eligible on the dates on which the services
  380  were provided. Any optional service that is provided shall be
  381  provided only when medically necessary and in accordance with
  382  state and federal law. Optional services rendered by providers
  383  in mobile units to Medicaid recipients may be restricted or
  384  prohibited by the agency. Nothing in this section shall be
  385  construed to prevent or limit the agency from adjusting fees,
  386  reimbursement rates, lengths of stay, number of visits, or
  387  number of services, or making any other adjustments necessary to
  388  comply with the availability of moneys and any limitations or
  389  directions provided for in the General Appropriations Act or
  390  chapter 216. If necessary to safeguard the state’s systems of
  391  providing services to elderly and disabled persons and subject
  392  to the notice and review provisions of s. 216.177, the Governor
  393  may direct the Agency for Health Care Administration to amend
  394  the Medicaid state plan to delete the optional Medicaid service
  395  known as “Intermediate Care Facilities for the Developmentally
  396  Disabled.” Optional services may include:
  397         (14) HOME- AND COMMUNITY-BASED BEHAVIORAL HEALTH SERVICES.
  398  The agency shall seek federal approval to implement a program
  399  that covers an expanded array of home- and community-based
  400  services for adults 18 years of age and older diagnosed with a
  401  serious mental illness who are high utilizers of behavioral
  402  health services in an institutional setting. The program must be
  403  designed to reduce the need for institutional levels of care for
  404  adults with a serious mental illness. The agency shall work in
  405  coordination with the Department of Children and Families to
  406  develop the program. The agency and the department shall produce
  407  estimates of the program′s potential costs to the Medicaid
  408  program and cost-savings for the department. Such estimates must
  409  be submitted to the Legislature as legislative budget requests
  410  and appropriated in the General Appropriations Act before the
  411  program may be implemented.
  412         Section 5. Section 409.91195, Florida Statutes, is amended
  413  to read:
  414         409.91195 Medicaid Pharmaceutical and Therapeutics
  415  Committee.—There is created a Medicaid Pharmaceutical and
  416  Therapeutics Committee within the agency for the purpose of
  417  developing a Medicaid preferred drug list, a Medicaid preferred
  418  physician-administered drug list, a Medicaid preferred product
  419  list, and a high-cost drug list.
  420         (1) The committee shall be composed of 11 members appointed
  421  by the Governor. Four members shall be physicians, licensed
  422  under chapter 458; one member licensed under chapter 459; five
  423  members shall be pharmacists licensed under chapter 465; and one
  424  member shall be a consumer representative. The members shall be
  425  appointed to serve for terms of 2 years from the date of their
  426  appointment. Members may be appointed to more than one term. The
  427  agency shall serve as staff for the committee and assist them
  428  with all ministerial duties. The Governor shall ensure that at
  429  least some of the members of the committee represent Medicaid
  430  participating physicians and pharmacies serving all segments and
  431  diversity of the Medicaid population, and have experience in
  432  either developing or practicing under a preferred drug list. At
  433  least one of the members shall represent the interests of
  434  pharmaceutical manufacturers.
  435         (2) Committee members shall select a chairperson and a vice
  436  chairperson each year from the committee membership.
  437         (3) The committee shall meet at least quarterly and may
  438  meet at other times at the discretion of the chairperson and
  439  members. The committee shall comply with rules adopted by the
  440  agency, including notice of any meeting of the committee
  441  pursuant to the requirements of the Administrative Procedure
  442  Act.
  443         (4) Upon recommendation of the committee, the agency shall
  444  adopt a preferred drug list, a preferred physician-administered
  445  drug list, a preferred product list, and a high-cost drug list
  446  as described in s. 409.912(5). To the extent feasible, the
  447  committee shall review all drug or product classes included on
  448  the preferred drug list, the preferred physician-administered
  449  drug list, the preferred product list, and the high-cost drug
  450  list every 6 12 months, and may recommend additions to and
  451  deletions from the lists preferred drug list, such that the
  452  lists provide preferred drug list provides for medically
  453  appropriate drug and product therapies for Medicaid patients
  454  which achieve cost savings contained in the General
  455  Appropriations Act.
  456         (5) Except for antiretroviral drugs, reimbursement of drugs
  457  not included on the preferred drug list, preferred physician
  458  administered drug list, preferred product list, or high-cost
  459  drug list is subject to prior authorization.
  460         (6) The agency shall publish and disseminate the preferred
  461  drug list, preferred physician-administered drug list, preferred
  462  product list, and high-cost drug list to all Medicaid providers
  463  in the state by Internet posting on the agency’s website or in
  464  other media.
  465         (7) The committee shall ensure that interested parties,
  466  including pharmaceutical manufacturers agreeing to provide a
  467  supplemental rebate as outlined in this chapter, have an
  468  opportunity to present public testimony to the committee with
  469  information or evidence supporting inclusion of a drug or
  470  product on the preferred drug list, preferred physician
  471  administered drug list, preferred product list, or high-cost
  472  drug list. Such public testimony must shall occur before prior
  473  to any recommendations made by the committee for inclusion or
  474  exclusion from the preferred drug list, preferred physician
  475  administered drug list, preferred product list, or high-cost
  476  drug list. Upon timely notice, the agency shall ensure that any
  477  drug that has been approved or had any of its particular uses
  478  approved by the United States Food and Drug Administration under
  479  a priority review classification will be reviewed by the
  480  committee at the next regularly scheduled meeting following 3
  481  months of distribution of the drug to the general public.
  482         (8) The committee shall develop its preferred drug list,
  483  preferred physician-administered drug list, preferred product
  484  list, and high-cost drug list recommendations by considering the
  485  clinical efficacy, safety, and cost-effectiveness of a product.
  486         (9) The Medicaid Pharmaceutical and Therapeutics Committee
  487  may also make recommendations to the agency regarding the prior
  488  authorization of any prescribed drug covered by Medicaid.
  489         (10) Medicaid recipients may appeal agency preferred drug
  490  formulary decisions using the Medicaid fair hearing process
  491  administered by the Agency for Health Care Administration.
  492         Section 6. Paragraph (a) of subsection (5) of section
  493  409.912, Florida Statutes, is amended, and subsection (14) is
  494  added to that section, to read:
  495         409.912 Cost-effective purchasing of health care.—The
  496  agency shall purchase goods and services for Medicaid recipients
  497  in the most cost-effective manner consistent with the delivery
  498  of quality medical care. To ensure that medical services are
  499  effectively utilized, the agency may, in any case, require a
  500  confirmation or second physician’s opinion of the correct
  501  diagnosis for purposes of authorizing future services under the
  502  Medicaid program. This section does not restrict access to
  503  emergency services or poststabilization care services as defined
  504  in 42 C.F.R. s. 438.114. Such confirmation or second opinion
  505  shall be rendered in a manner approved by the agency. The agency
  506  shall maximize the use of prepaid per capita and prepaid
  507  aggregate fixed-sum basis services when appropriate and other
  508  alternative service delivery and reimbursement methodologies,
  509  including competitive bidding pursuant to s. 287.057, designed
  510  to facilitate the cost-effective purchase of a case-managed
  511  continuum of care. The agency shall also require providers to
  512  minimize the exposure of recipients to the need for acute
  513  inpatient, custodial, and other institutional care and the
  514  inappropriate or unnecessary use of high-cost services. The
  515  agency shall contract with a vendor to monitor and evaluate the
  516  clinical practice patterns of providers in order to identify
  517  trends that are outside the normal practice patterns of a
  518  provider’s professional peers or the national guidelines of a
  519  provider’s professional association. The vendor must be able to
  520  provide information and counseling to a provider whose practice
  521  patterns are outside the norms, in consultation with the agency,
  522  to improve patient care and reduce inappropriate utilization.
  523  The agency may mandate prior authorization, drug therapy
  524  management, or disease management participation for certain
  525  populations of Medicaid beneficiaries, certain drug classes, or
  526  particular drugs to prevent fraud, abuse, overuse, and possible
  527  dangerous drug interactions. The Pharmaceutical and Therapeutics
  528  Committee shall make recommendations to the agency on drugs for
  529  which prior authorization is required. The agency shall inform
  530  the Pharmaceutical and Therapeutics Committee of its decisions
  531  regarding drugs subject to prior authorization. The agency is
  532  authorized to limit the entities it contracts with or enrolls as
  533  Medicaid providers by developing a provider network through
  534  provider credentialing. The agency may competitively bid single
  535  source-provider contracts if procurement of goods or services
  536  results in demonstrated cost savings to the state without
  537  limiting access to care. The agency may limit its network based
  538  on the assessment of beneficiary access to care, provider
  539  availability, provider quality standards, time and distance
  540  standards for access to care, the cultural competence of the
  541  provider network, demographic characteristics of Medicaid
  542  beneficiaries, practice and provider-to-beneficiary standards,
  543  appointment wait times, beneficiary use of services, provider
  544  turnover, provider profiling, provider licensure history,
  545  previous program integrity investigations and findings, peer
  546  review, provider Medicaid policy and billing compliance records,
  547  clinical and medical record audits, and other factors. Providers
  548  are not entitled to enrollment in the Medicaid provider network.
  549  The agency shall determine instances in which allowing Medicaid
  550  beneficiaries to purchase durable medical equipment and other
  551  goods is less expensive to the Medicaid program than long-term
  552  rental of the equipment or goods. The agency may establish rules
  553  to facilitate purchases in lieu of long-term rentals in order to
  554  protect against fraud and abuse in the Medicaid program as
  555  defined in s. 409.913. The agency may seek federal waivers
  556  necessary to administer these policies.
  557         (5)(a) The agency shall implement a Medicaid prescribed
  558  drug spending-control program that includes the following
  559  components:
  560         1. A Medicaid preferred drug list and a Medicaid physician
  561  administered drug list. The preferred drug list, which shall be
  562  a listing of cost-effective therapeutic options recommended by
  563  the Medicaid Pharmacy and Therapeutics Committee established
  564  pursuant to s. 409.91195 and adopted by the agency for each
  565  therapeutic class on the preferred drug list. At the discretion
  566  of the committee, and when feasible, the preferred drug list
  567  should include at least two products in a therapeutic class. The
  568  physician-administered drug list shall be a listing of
  569  physician-administered drugs covered by the state Medicaid
  570  program, based on the United States Food and Drug
  571  Administration’s approved indications and compendia in 42 U.S.C.
  572  s. 1396r-8(g)(1)(B). Within the preferred physician-administered
  573  drug list, there must be a section containing a list of
  574  preferred physician-administered drugs that are cost-effective
  575  therapeutic options recommended by the Medicaid Pharmaceutical
  576  and Therapeutics Committee established pursuant to s. 409.91195.
  577  The physician-administered drug list must be updated at least
  578  twice a year. The agency may post and update the preferred drug
  579  list and the preferred physician-administered drug updates to
  580  the list on the agency’s an Internet website without following
  581  the rulemaking procedures of chapter 120. Antiretroviral agents
  582  are excluded from the preferred drug list. The agency shall also
  583  limit the amount of a prescribed drug dispensed to no more than
  584  a 34-day supply unless the drug products’ smallest marketed
  585  package is greater than a 34-day supply, or the drug is
  586  determined by the agency to be a maintenance drug in which case
  587  a 100-day maximum supply may be authorized. The agency may seek
  588  any federal waivers necessary to implement these cost-control
  589  programs and to continue participation in the federal Medicaid
  590  rebate program, or alternatively to negotiate state-only
  591  manufacturer rebates. The agency may adopt rules to administer
  592  this subparagraph. The agency shall continue to provide
  593  unlimited contraceptive drugs and items. The agency must
  594  establish procedures to ensure that:
  595         a. There is a response to a request for prior authorization
  596  by telephone or other telecommunication device within 24 hours
  597  after receipt of a request for prior authorization; and
  598         b. A 72-hour supply of the drug prescribed is provided in
  599  an emergency or when the agency does not provide a response
  600  within 24 hours as required by sub-subparagraph a.
  601         2. A Medicaid preferred product list, which shall be a
  602  listing of cost-effective therapeutic supplies recommended by
  603  the Medicaid Pharmaceutical and Therapeutics Committee
  604  established pursuant to s. 409.91195 and adopted by the agency
  605  for each product class listed on the preferred product list and
  606  reimbursed by the state Medicaid program through the pharmacy
  607  point-of-sale. The agency may post the preferred product list
  608  and updates to the list on the agency’s website without
  609  following the rulemaking procedures of chapter 120.
  610         3.A list of high-cost drugs recommended by the Medicaid
  611  Pharmaceutical and Therapeutics Committee established pursuant
  612  to s. 409.91195 and adopted by the agency, for the purpose of
  613  coverage, reimbursement, or billing guidance. The agency may
  614  post the high-cost drug list and updates to the list on the
  615  agency’s website without following the rulemaking procedures of
  616  chapter 120. The agency must establish procedures to ensure
  617  that:
  618         a. There is a response to a request for prior authorization
  619  for a high-cost drug by telephone or other telecommunication
  620  device within 24 hours after receipt of the request for prior
  621  authorization; and
  622         b. A 72-hour supply of the high-cost drug prescribed is
  623  provided in an emergency or when the agency does not provide a
  624  response to a prior authorization request within 24 hours as
  625  required by sub-subparagraph a.
  626         4. A provider of prescribed drugs is reimbursed in an
  627  amount not to exceed the lesser of the actual acquisition cost
  628  based on the Centers for Medicare and Medicaid Services National
  629  Average Drug Acquisition Cost pricing files plus a professional
  630  dispensing fee, the wholesale acquisition cost plus a
  631  professional dispensing fee, the state maximum allowable cost
  632  plus a professional dispensing fee, or the usual and customary
  633  charge billed by the provider.
  634         5.A hospital facility administering long-acting
  635  injectables for severe mental illness shall be reimbursed
  636  separately from the diagnosis-related group. Long-acting
  637  injectables administered for severe mental illness in a hospital
  638  facility setting shall be reimbursed at no less than the actual
  639  acquisition cost of the drug.
  640         6.The agency shall contract with a vendor to perform a
  641  detailed fiscal impact study to evaluate the 340B Drug Pricing
  642  Program administered by the Health Resources and Services
  643  Administration. The study must evaluate 340B compliance, 340B
  644  drug purchases, and reimbursement methodologies within the fee
  645  for-service program and Statewide Medicaid Managed Care program.
  646  Statewide Medicaid Managed Care plans, pharmacy benefit
  647  managers, and Medicaid providers shall submit to the agency all
  648  data necessary for the completion of the study, including, but
  649  not limited to, information related to drug purchasing,
  650  reimbursement, billing and coding, and dispensing. Noncompliance
  651  with the 340B data submission requirements of this subparagraph
  652  may result in sanctions from the agency or the Board of
  653  Pharmacy, as applicable. The agency shall submit the results of
  654  the study to the Governor, the President of the Senate, and the
  655  Speaker of the House of Representatives by June 30, 2027.
  656         7.3. The agency shall develop and implement a process for
  657  managing the drug therapies of Medicaid recipients who are using
  658  significant numbers of prescribed drugs each month. The
  659  management process may include, but is not limited to,
  660  comprehensive, physician-directed medical-record reviews, claims
  661  analyses, and case evaluations to determine the medical
  662  necessity and appropriateness of a patient’s treatment plan and
  663  drug therapies. The agency may contract with a private
  664  organization to provide drug-program-management services. The
  665  Medicaid drug benefit management program shall include
  666  initiatives to manage drug therapies for HIV/AIDS patients,
  667  patients using 20 or more unique prescriptions in a 180-day
  668  period, and the top 1,000 patients in annual spending. The
  669  agency shall enroll any Medicaid recipient in the drug benefit
  670  management program if he or she meets the specifications of this
  671  provision and is not enrolled in a Medicaid health maintenance
  672  organization.
  673         8.4. The agency may limit the size of its pharmacy network
  674  based on need, competitive bidding, price negotiations,
  675  credentialing, or similar criteria. The agency shall give
  676  special consideration to rural areas in determining the size and
  677  location of pharmacies included in the Medicaid pharmacy
  678  network. A pharmacy credentialing process may include criteria
  679  such as a pharmacy’s full-service status, location, size,
  680  patient educational programs, patient consultation, disease
  681  management services, and other characteristics. The agency may
  682  impose a moratorium on Medicaid pharmacy enrollment if it is
  683  determined that it has a sufficient number of Medicaid
  684  participating providers. The agency must allow dispensing
  685  practitioners to participate as a part of the Medicaid pharmacy
  686  network regardless of the practitioner’s proximity to any other
  687  entity that is dispensing prescription drugs under the Medicaid
  688  program. A dispensing practitioner must meet all credentialing
  689  requirements applicable to his or her practice, as determined by
  690  the agency.
  691         9.5. The agency shall develop and implement a program that
  692  requires Medicaid practitioners who issue written prescriptions
  693  for medicinal drugs to use a counterfeit-proof prescription pad
  694  for Medicaid prescriptions. The agency shall require the use of
  695  standardized counterfeit-proof prescription pads by prescribers
  696  who issue written prescriptions for Medicaid recipients. The
  697  agency may implement the program in targeted geographic areas or
  698  statewide.
  699         10.6. The agency may enter into arrangements that require
  700  manufacturers of generic drugs prescribed to Medicaid recipients
  701  to provide rebates of at least 15.1 percent of the average
  702  manufacturer price for the manufacturer’s generic products.
  703  These arrangements shall require that if a generic-drug
  704  manufacturer pays federal rebates for Medicaid-reimbursed drugs
  705  at a level below 15.1 percent, the manufacturer must provide a
  706  supplemental rebate to the state in an amount necessary to
  707  achieve a 15.1-percent rebate level.
  708         11.7. The agency may establish a preferred drug list as
  709  described in this subsection, and, pursuant to the establishment
  710  of such preferred drug list, negotiate supplemental rebates from
  711  manufacturers that are in addition to those required by Title
  712  XIX of the Social Security Act and at no less than 14 percent of
  713  the average manufacturer price as defined in 42 U.S.C. s. 1936
  714  on the last day of a quarter unless the federal or supplemental
  715  rebate, or both, equals or exceeds 29 percent. There is no upper
  716  limit on the supplemental rebates the agency may negotiate. The
  717  agency may determine that specific products, brand-name or
  718  generic, are competitive at lower rebate percentages. Agreement
  719  to pay the minimum supplemental rebate percentage guarantees a
  720  manufacturer that the Medicaid Pharmaceutical and Therapeutics
  721  Committee will consider a product for inclusion on the preferred
  722  drug list. However, a pharmaceutical manufacturer is not
  723  guaranteed placement on the preferred drug list by simply paying
  724  the minimum supplemental rebate. Agency decisions will be made
  725  on the clinical efficacy of a drug and recommendations of the
  726  Medicaid Pharmaceutical and Therapeutics Committee, as well as
  727  the price of competing products minus federal and state rebates.
  728  The agency may contract with an outside agency or contractor to
  729  conduct negotiations for supplemental rebates. For the purposes
  730  of this section, the term “supplemental rebates” means cash
  731  rebates. Value-added programs as a substitution for supplemental
  732  rebates are prohibited. The agency may seek any federal waivers
  733  to implement this initiative.
  734         12.a.8.a. The agency may implement a Medicaid behavioral
  735  drug management system. The agency may contract with a vendor
  736  that has experience in operating behavioral drug management
  737  systems to implement this program. The agency may seek federal
  738  waivers to implement this program.
  739         b. The agency, in conjunction with the Department of
  740  Children and Families, may implement the Medicaid behavioral
  741  drug management system that is designed to improve the quality
  742  of care and behavioral health prescribing practices based on
  743  best practice guidelines, improve patient adherence to
  744  medication plans, reduce clinical risk, and lower prescribed
  745  drug costs and the rate of inappropriate spending on Medicaid
  746  behavioral drugs. The program may include the following
  747  elements:
  748         (I) Provide for the development and adoption of best
  749  practice guidelines for behavioral health-related drugs such as
  750  antipsychotics, antidepressants, and medications for treating
  751  bipolar disorders and other behavioral conditions; translate
  752  them into practice; review behavioral health prescribers and
  753  compare their prescribing patterns to a number of indicators
  754  that are based on national standards; and determine deviations
  755  from best practice guidelines.
  756         (II) Implement processes for providing feedback to and
  757  educating prescribers using best practice educational materials
  758  and peer-to-peer consultation.
  759         (III) Assess Medicaid beneficiaries who are outliers in
  760  their use of behavioral health drugs with regard to the numbers
  761  and types of drugs taken, drug dosages, combination drug
  762  therapies, and other indicators of improper use of behavioral
  763  health drugs.
  764         (IV) Alert prescribers to patients who fail to refill
  765  prescriptions in a timely fashion, are prescribed multiple same
  766  class behavioral health drugs, and may have other potential
  767  medication problems.
  768         (V) Track spending trends for behavioral health drugs and
  769  deviation from best practice guidelines.
  770         (VI) Use educational and technological approaches to
  771  promote best practices, educate consumers, and train prescribers
  772  in the use of practice guidelines.
  773         (VII) Disseminate electronic and published materials.
  774         (VIII) Hold statewide and regional conferences.
  775         (IX) Implement a disease management program with a model
  776  quality-based medication component for severely mentally ill
  777  individuals and emotionally disturbed children who are high
  778  users of care.
  779         13.9. The agency shall implement a Medicaid prescription
  780  drug management system.
  781         a. The agency may contract with a vendor that has
  782  experience in operating prescription drug management systems in
  783  order to implement this system. Any management system that is
  784  implemented in accordance with this subparagraph must rely on
  785  cooperation between physicians and pharmacists to determine
  786  appropriate practice patterns and clinical guidelines to improve
  787  the prescribing, dispensing, and use of drugs in the Medicaid
  788  program. The agency may seek federal waivers to implement this
  789  program.
  790         b. The drug management system must be designed to improve
  791  the quality of care and prescribing practices based on best
  792  practice guidelines, improve patient adherence to medication
  793  plans, reduce clinical risk, and lower prescribed drug costs and
  794  the rate of inappropriate spending on Medicaid prescription
  795  drugs. The program must:
  796         (I) Provide for the adoption of best practice guidelines
  797  for the prescribing and use of drugs in the Medicaid program,
  798  including translating best practice guidelines into practice;
  799  reviewing prescriber patterns and comparing them to indicators
  800  that are based on national standards and practice patterns of
  801  clinical peers in their community, statewide, and nationally;
  802  and determine deviations from best practice guidelines.
  803         (II) Implement processes for providing feedback to and
  804  educating prescribers using best practice educational materials
  805  and peer-to-peer consultation.
  806         (III) Assess Medicaid recipients who are outliers in their
  807  use of a single or multiple prescription drugs with regard to
  808  the numbers and types of drugs taken, drug dosages, combination
  809  drug therapies, and other indicators of improper use of
  810  prescription drugs.
  811         (IV) Alert prescribers to recipients who fail to refill
  812  prescriptions in a timely fashion, are prescribed multiple drugs
  813  that may be redundant or contraindicated, or may have other
  814  potential medication problems.
  815         14.10. The agency may contract for drug rebate
  816  administration, including, but not limited to, calculating
  817  rebate amounts, invoicing manufacturers, negotiating disputes
  818  with manufacturers, and maintaining a database of rebate
  819  collections.
  820         15.11. The agency may specify the preferred daily dosing
  821  form or strength for the purpose of promoting best practices
  822  with regard to the prescribing of certain drugs as specified in
  823  the General Appropriations Act and ensuring cost-effective
  824  prescribing practices.
  825         16.12. The agency may require prior authorization for
  826  Medicaid-covered prescribed drugs. The agency may prior
  827  authorize the use of a product:
  828         a. For an indication not approved in labeling;
  829         b. To comply with certain clinical guidelines; or
  830         c. If the product has the potential for overuse, misuse, or
  831  abuse.
  832  
  833  The agency may require the prescribing professional to provide
  834  information about the rationale and supporting medical evidence
  835  for the use of a drug. The agency shall post prior
  836  authorization, step-edit criteria and protocol, and updates to
  837  the list of drugs that are subject to prior authorization on the
  838  agency’s Internet website within 21 days after the prior
  839  authorization and step-edit criteria and protocol and updates
  840  are approved by the agency. For purposes of this subparagraph,
  841  the term “step-edit” means an automatic electronic review of
  842  certain medications subject to prior authorization.
  843         17.13. The agency, in conjunction with the Pharmaceutical
  844  and Therapeutics Committee, may require age-related prior
  845  authorizations for certain prescribed drugs. The agency may
  846  preauthorize the use of a drug for a recipient who may not meet
  847  the age requirement or may exceed the length of therapy for use
  848  of this product as recommended by the manufacturer and approved
  849  by the Food and Drug Administration. Prior authorization may
  850  require the prescribing professional to provide information
  851  about the rationale and supporting medical evidence for the use
  852  of a drug.
  853         18.14. The agency shall implement a step-therapy prior
  854  authorization approval process for medications excluded from the
  855  preferred drug list. Medications listed on the preferred drug
  856  list must be used within the previous 12 months before the
  857  alternative medications that are not listed. The step-therapy
  858  prior authorization may require the prescriber to use the
  859  medications of a similar drug class or for a similar medical
  860  indication unless contraindicated in the Food and Drug
  861  Administration labeling. The trial period between the specified
  862  steps may vary according to the medical indication. The step
  863  therapy approval process shall be developed in accordance with
  864  the committee as stated in s. 409.91195(7) and (8). A drug
  865  product may be approved without meeting the step-therapy prior
  866  authorization criteria if the prescribing physician provides the
  867  agency with additional written medical or clinical documentation
  868  that the product is medically necessary because:
  869         a. There is not a drug on the preferred drug list to treat
  870  the disease or medical condition which is an acceptable clinical
  871  alternative;
  872         b. The alternatives have been ineffective in the treatment
  873  of the beneficiary’s disease;
  874         c. The drug product or medication of a similar drug class
  875  is prescribed for the treatment of schizophrenia or schizotypal
  876  or delusional disorders; prior authorization has been granted
  877  previously for the prescribed drug; and the medication was
  878  dispensed to the patient during the previous 12 months; or
  879         d. Based on historical evidence and known characteristics
  880  of the patient and the drug, the drug is likely to be
  881  ineffective, or the number of doses have been ineffective.
  882  
  883  The agency shall work with the physician to determine the best
  884  alternative for the patient. The agency may adopt rules waiving
  885  the requirements for written clinical documentation for specific
  886  drugs in limited clinical situations.
  887         19.15. The agency shall implement a return and reuse
  888  program for drugs dispensed by pharmacies to institutional
  889  recipients, which includes payment of a $5 restocking fee for
  890  the implementation and operation of the program. The return and
  891  reuse program shall be implemented electronically and in a
  892  manner that promotes efficiency. The program must permit a
  893  pharmacy to exclude drugs from the program if it is not
  894  practical or cost-effective for the drug to be included and must
  895  provide for the return to inventory of drugs that cannot be
  896  credited or returned in a cost-effective manner. The agency
  897  shall determine if the program has reduced the amount of
  898  Medicaid prescription drugs which are destroyed on an annual
  899  basis and if there are additional ways to ensure more
  900  prescription drugs are not destroyed which could safely be
  901  reused.
  902         (14) Neither this section nor this chapter prevents the
  903  agency from conducting retrospective reviews, investigations,
  904  analyses, audits, or any combination thereof to determine
  905  possible fraud, abuse, overpayment, or recipient neglect in the
  906  state Medicaid program pursuant to s. 409.913, including, but
  907  not limited to, reviews in which the services were the subject
  908  of a utilization review or prior authorization process.
  909         Section 7. Paragraph (e) of subsection (1) and subsections
  910  (2) and (6) of section 409.913, Florida Statutes, are amended to
  911  read:
  912         409.913 Oversight of the integrity of the Medicaid
  913  program.—The agency shall operate a program to oversee the
  914  activities of Florida Medicaid recipients, and providers and
  915  their representatives, to ensure that fraudulent and abusive
  916  behavior and neglect of recipients occur to the minimum extent
  917  possible, and to recover overpayments and impose sanctions as
  918  appropriate. Each January 15, the agency and the Medicaid Fraud
  919  Control Unit of the Department of Legal Affairs shall submit a
  920  report to the Legislature documenting the effectiveness of the
  921  state’s efforts to control Medicaid fraud and abuse and to
  922  recover Medicaid overpayments during the previous fiscal year.
  923  The report must describe the number of cases opened and
  924  investigated each year; the sources of the cases opened; the
  925  disposition of the cases closed each year; the amount of
  926  overpayments alleged in preliminary and final audit letters; the
  927  number and amount of fines or penalties imposed; any reductions
  928  in overpayment amounts negotiated in settlement agreements or by
  929  other means; the amount of final agency determinations of
  930  overpayments; the amount deducted from federal claiming as a
  931  result of overpayments; the amount of overpayments recovered
  932  each year; the amount of cost of investigation recovered each
  933  year; the average length of time to collect from the time the
  934  case was opened until the overpayment is paid in full; the
  935  amount determined as uncollectible and the portion of the
  936  uncollectible amount subsequently reclaimed from the Federal
  937  Government; the number of providers, by type, that are
  938  terminated from participation in the Medicaid program as a
  939  result of fraud and abuse; and all costs associated with
  940  discovering and prosecuting cases of Medicaid overpayments and
  941  making recoveries in such cases. The report must also document
  942  actions taken to prevent overpayments and the number of
  943  providers prevented from enrolling in or reenrolling in the
  944  Medicaid program as a result of documented Medicaid fraud and
  945  abuse and must include policy recommendations necessary to
  946  prevent or recover overpayments and changes necessary to prevent
  947  and detect Medicaid fraud. All policy recommendations in the
  948  report must include a detailed fiscal analysis, including, but
  949  not limited to, implementation costs, estimated savings to the
  950  Medicaid program, and the return on investment. The agency must
  951  submit the policy recommendations and fiscal analyses in the
  952  report to the appropriate estimating conference, pursuant to s.
  953  216.137, by February 15 of each year. The agency and the
  954  Medicaid Fraud Control Unit of the Department of Legal Affairs
  955  each must include detailed unit-specific performance standards,
  956  benchmarks, and metrics in the report, including projected cost
  957  savings to the state Medicaid program during the following
  958  fiscal year.
  959         (1) For the purposes of this section, the term:
  960         (e) “Overpayment” includes any amount that is not
  961  authorized to be paid by the Medicaid program or that should not
  962  have been paid, including payments made whether paid as a result
  963  of inaccurate or improper cost reporting, improper claiming,
  964  unacceptable practices, fraud, abuse, or mistake, and may
  965  include amounts paid for goods or services that were the subject
  966  of a utilization review or prior authorization process.
  967         (2) The agency shall conduct, or cause to be conducted by
  968  contract or otherwise, reviews, investigations, analyses,
  969  audits, or any combination thereof, to determine possible fraud,
  970  abuse, overpayment, or recipient neglect in the Medicaid program
  971  and shall report the findings of any overpayments in audit
  972  reports as appropriate. An overpayment determination may be
  973  based upon retrospective reviews, investigations, analyses,
  974  audits, or any combination thereof to determine possible fraud,
  975  abuse, overpayment, or recipient neglect in the Medicaid
  976  program, regardless of whether a prior authorization was issued.
  977  At least 5 percent of all audits shall be conducted on a random
  978  basis. As part of its ongoing fraud detection activities, the
  979  agency shall identify and monitor, by contract or otherwise,
  980  patterns of overutilization of Medicaid services based on state
  981  averages. The agency shall track Medicaid provider prescription
  982  and billing patterns and evaluate them against Medicaid medical
  983  necessity criteria and coverage and limitation guidelines
  984  adopted by rule. Medical necessity determination requires that
  985  service be consistent with symptoms or confirmed diagnosis of
  986  illness or injury under treatment and not in excess of the
  987  patient’s needs. The agency shall conduct reviews of provider
  988  exceptions to peer group norms and shall, using statistical
  989  methodologies, provider profiling, and analysis of billing
  990  patterns, detect and investigate abnormal or unusual increases
  991  in billing or payment of claims for Medicaid services and
  992  medically unnecessary provision of services.
  993         (6) Any notice required to be given to a provider under
  994  this section is presumed to be sufficient notice if sent to the
  995  mailing address last shown on the provider enrollment file. It
  996  is the responsibility of the provider to furnish and keep the
  997  agency informed of the provider’s current mailing and service
  998  addresses address. United States Postal Service or other common
  999  carrier’s proof of mailing or certified or registered mailing of
 1000  such notice to the provider at the address shown on the provider
 1001  enrollment file constitutes sufficient proof of notice. Any
 1002  notice required to be given to the agency by this section must
 1003  be sent to the agency at an address designated by rule.
 1004         Section 8. Section 414.321, Florida Statutes, is created to
 1005  read:
 1006         414.321Food assistance eligibility.—For purposes of
 1007  eligibility determinations, the department shall:
 1008         (1)Limit eligibility to individuals who are residents of
 1009  the United States and:
 1010         (a)Citizens or nationals of the United States;
 1011         (b)Aliens lawfully admitted for permanent residence as
 1012  defined in the Immigration and Nationality Act, as amended;
 1013         (c)Aliens who have been granted the status of Cuban and
 1014  Haitian entrant, as defined in the Refugee Education Assistance
 1015  Act of 1980, as amended; or
 1016         (d)Individuals who lawfully reside in the United States in
 1017  accordance with the Compacts of Free Association referred to in
 1018  the Personal Responsibility and Work Opportunity Reconciliation
 1019  Act of 1996.
 1020         (2)Require each applicant, or recipient for
 1021  redetermination purposes, to provide documentation evidencing
 1022  his or her shelter or utility expenses.
 1023         (a)The department is prohibited from relying solely on an
 1024  individual’s self-attestation in determining shelter or utility
 1025  expenses.
 1026         (b)The department may adopt policies and procedures to
 1027  accommodate an applicant or a recipient who, due to recent
 1028  residency changes, is temporarily unable to furnish adequate
 1029  documentation of shelter or utility expenses.
 1030         Section 9. Section 414.332, Florida Statutes, is created to
 1031  read:
 1032         414.332Food assistance payment accuracy plan.—
 1033         (1)The department shall develop and implement a
 1034  comprehensive food assistance payment accuracy improvement plan
 1035  to reduce the state’s payment error rate. The department must
 1036  reduce the payment error rate to below 6 percent. The plan must
 1037  address the root causes of payment errors identified through an
 1038  in-depth, data-driven analysis. The plan must include, but need
 1039  not be limited to, all of the following:
 1040         (a)Enhanced employee training and quality assurance.
 1041         1.The department shall administer standardized training
 1042  for all economic self-sufficiency program staff at least
 1043  annually. Training must, at a minimum, review the most common
 1044  reasons for payment errors and methods for preventing such
 1045  errors, and include pre- and post-training testing to measure
 1046  staff proficiency.
 1047         2.The department shall establish a robust quality
 1048  assurance review process that frequently reviews a statistically
 1049  significant sample of cases before final benefit determination.
 1050  This process must incorporate real-time, corrective feedback and
 1051  on-the-job training for program staff and may not delay benefit
 1052  determinations.
 1053         (b)Improvement in data sourcing. In contracting with
 1054  entities providing data for verification of applicant and
 1055  recipient information, the department shall maximize use of high
 1056  quality automated data sources, including, but not limited to,
 1057  comparing income and asset data with state, federal, and private
 1058  sector data sources.
 1059         (2)By July 15, 2026, the department shall submit the food
 1060  assistance payment accuracy improvement plan to the Governor,
 1061  the President of the Senate, and the Speaker of the House of
 1062  Representatives.
 1063         (3)(a)Beginning October 1, 2026, the department shall
 1064  submit quarterly progress reports to the Governor, the President
 1065  of the Senate, and the Speaker of the House of Representatives
 1066  detailing:
 1067         1.The state’s most recent official and preliminary food
 1068  assistance payment error rate.
 1069         2.A detailed breakdown of the most frequent and highest
 1070  dollar value errors, including categorization by agency or
 1071  client error and whether the error resulted in over- or under
 1072  payment.
 1073         3.Specific actions taken by the department under the food
 1074  assistance payment accuracy improvement plan during the
 1075  preceding quarter and data demonstrating the results of those
 1076  actions.
 1077         4.A detailed plan to correct the most recently identified
 1078  deficiencies.
 1079         (b)This subsection is repealed on October 1, 2028.
 1080         Section 10. Present subsections (6) through (11) of section
 1081  414.39, Florida Statutes, are redesignated as subsections (7)
 1082  through (12), respectively, and a new subsection (6) is added to
 1083  that section, to read:
 1084         414.39 Fraud.—
 1085         (6) The department shall require the use of photographic
 1086  identification on the front of each newly issued and reissued
 1087  electronic benefits transfer (EBT) card for each cardholder to
 1088  the maximum extent allowed by federal laws and regulations.
 1089         Section 11. Subsection (2) of section 414.455, Florida
 1090  Statutes, is amended to read:
 1091         414.455 Supplemental Nutrition Assistance Program;
 1092  legislative authorization; mandatory participation in employment
 1093  and training programs.—
 1094         (2) Unless prohibited by the Federal Government, the
 1095  department must require a person who is receiving food
 1096  assistance; who is 18 to 64 59 years of age, inclusive; who does
 1097  not have children under the age of 14 18 in his or her home; who
 1098  does not qualify for an exemption; and who is determined by the
 1099  department to be eligible, to participate in an employment and
 1100  training program. The department shall apply and comply with
 1101  exemptions from work requirements in accordance with applicable
 1102  federal law.
 1103         Section 12. Subsection (1) of section 409.91196, Florida
 1104  Statutes, is amended to read:
 1105         409.91196 Supplemental rebate agreements; public records
 1106  and public meetings exemption.—
 1107         (1) The rebate amount, percent of rebate, manufacturer’s
 1108  pricing, and supplemental rebate, and other trade secrets as
 1109  defined in s. 688.002 that the agency has identified for use in
 1110  negotiations, held by the Agency for Health Care Administration
 1111  under s. 409.912(5)(a)11. s. 409.912(5)(a)7. are confidential
 1112  and exempt from s. 119.07(1) and s. 24(a), Art. I of the State
 1113  Constitution.
 1114         Section 13. This act shall take effect July 1, 2026.