Florida Senate - 2013              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. SB 1816
       
       
       
       
       
                                Barcode 918752                          
       
       576-04564-13                                                    
       Proposed Committee Substitute by the Committee on Appropriations
       (Appropriations Subcommittee on Health and Human Services)
    1                        A bill to be entitled                      
    2         An act relating to health care; amending s. 409.811,
    3         F.S.; revising and providing definitions; amending s.
    4         409.813, F.S.; revising the components of the Florida
    5         Kidcare program; prohibiting a cause of action from
    6         arising against the Florida Healthy Kids Corporation
    7         for failure to make health services available;
    8         amending s. 409.8132, F.S.; revising the eligibility
    9         of the Medikids program component; revising the
   10         enrollment requirements of the Medikids program
   11         component; amending s. 409.8134, F.S.; conforming
   12         provisions to changes made by the act; amending s.
   13         409.814, F.S.; revising eligibility requirements for
   14         the Florida Kidcare program; amending s. 409.815,
   15         F.S.; revising the minimum health benefits coverage
   16         under the Florida Kidcare Act; deleting obsolete
   17         provisions; amending ss. 409.816 and 409.8177, F.S.;
   18         conforming provisions to changes made by the act;
   19         repealing s. 409.817, F.S., relating to the approval
   20         of health benefits coverage and financial assistance;
   21         repealing s. 409.8175, F.S., relating to delivery of
   22         services in rural counties; amending s. 409.818, F.S.;
   23         revising the duties of the Department of Children and
   24         Families and the Agency for Health Care Administration
   25         with regard to the Florida Kidcare Act; deleting the
   26         duties of the Department of Health and the Office of
   27         Insurance Regulation with regard to the Florida
   28         Kidcare Act; amending s. 409.820, F.S.; requiring the
   29         Department of Health, in consultation with the agency
   30         and the Florida Healthy Kids Corporation, to develop a
   31         minimum set of pediatric and adolescent quality
   32         assurance and access standards for all program
   33         components; amending s. 624.91, F.S.; revising the
   34         legislative intent of the Florida Healthy Kids
   35         Corporation Act to include the Healthy Florida
   36         program; revising participation guidelines for
   37         nonsubsidized enrollees in the Healthy Kids program;
   38         revising the medical loss ratio requirements for the
   39         contracts for the Florida Healthy Kids Corporation;
   40         modifying the membership of the Florida Healthy Kids
   41         Corporation’s board of directors; creating an
   42         executive steering committee; requiring additional
   43         corporate compliance requirements for the Florida
   44         Healthy Kids Corporation; repealing s. 624.915, F.S.,
   45         relating to the operating fund of the Florida Healthy
   46         Kids Corporation; creating s. 624.917, F.S.; creating
   47         the Healthy Florida program; providing definitions;
   48         providing eligibility and enrollment requirements;
   49         authorizing the Florida Healthy Kids Corporation to
   50         contract with certain insurers, managed care
   51         organizations, and provider service networks;
   52         encouraging the corporation to contract with insurers
   53         and managed care organizations that participate in
   54         more than one insurance affordability program under
   55         certain circumstances; requiring the corporation to
   56         establish a benefits package and a process for payment
   57         of services; authorizing the corporation to collect
   58         premiums and copayments; requiring the corporation to
   59         oversee the Healthy Florida program and to establish a
   60         grievance process and integrity process; providing
   61         applicability of certain state laws for administration
   62         of the Healthy Florida program; requiring the
   63         corporation to collect certain data and to submit
   64         enrollment reports and interim independent evaluations
   65         to the Legislature; providing for expiration of the
   66         program; providing an implementation and
   67         interpretation clause; providing appropriations;
   68         providing an effective date.
   69  
   70  Be It Enacted by the Legislature of the State of Florida:
   71  
   72         Section 1. Section 409.811, Florida Statutes, is amended to
   73  read:
   74         409.811 Definitions relating to Florida Kidcare Act.—As
   75  used in ss. 409.810-409.821, the term:
   76         (1) “Actuarially equivalent” means that:
   77         (a) The aggregate value of the benefits included in health
   78  benefits coverage is equal to the value of the benefits in the
   79  benchmark benefit plan; and
   80         (b) The benefits included in health benefits coverage are
   81  substantially similar to the benefits included in the benchmark
   82  benefit plan, except that preventive health services must be the
   83  same as in the benchmark benefit plan.
   84         (2) “Agency” means the Agency for Health Care
   85  Administration.
   86         (3) “Applicant” means a parent or guardian of a child or a
   87  child whose disability of nonage has been removed under chapter
   88  743, who applies for determination of eligibility for health
   89  benefits coverage under ss. 409.810-409.821.
   90         (4) “Child benchmark benefit plan” means the form and level
   91  of health benefits coverage established in s. 409.815.
   92         (5) “Child” means any person younger than under 19 years of
   93  age.
   94         (6) “Child with special health care needs” means a child
   95  whose serious or chronic physical or developmental condition
   96  requires extensive preventive and maintenance care beyond that
   97  required by typically healthy children. Health care utilization
   98  by such a child exceeds the statistically expected usage of the
   99  normal child adjusted for chronological age, and such a child
  100  often needs complex care requiring multiple providers,
  101  rehabilitation services, and specialized equipment in a number
  102  of different settings.
  103         (7) “Children’s Medical Services Network” or “network”
  104  means a statewide managed care service system as defined in s.
  105  391.021(1).
  106         (8) “CHIP” means the Children’s Health Insurance Program as
  107  authorized under Title XXI of the Social Security Act, and its
  108  regulations, ss. 409.810-409.820, and as administered in this
  109  state by the agency, the department, and the Florida Healthy
  110  Kids Corporation, as appropriate to their respective
  111  responsibilities.
  112         (9) “Combined eligibility notice” means an eligibility
  113  notice that informs an applicant, an enrollee, or multiple
  114  family members of a household, when feasible, of eligibility for
  115  each of the insurance affordability programs and enrollment into
  116  a program or exchange plan. A combined eligibility form must be
  117  issued by the last agency or department to make an eligibility,
  118  renewal or denial determination. The form must meet all of the
  119  federal and state law and regulatory requirements no later than
  120  January 1, 2014.
  121         (8) “Community rate” means a method used to develop
  122  premiums for a health insurance plan that spreads financial risk
  123  across a large population and allows adjustments only for age,
  124  gender, family composition, and geographic area.
  125         (10)(9) “Department” means the Department of Health.
  126         (11)(10) “Enrollee” means a child who has been determined
  127  eligible for and is receiving coverage under ss. 409.810
  128  409.821.
  129         (11) “Family” means the group or the individuals whose
  130  income is considered in determining eligibility for the Florida
  131  Kidcare program. The family includes a child with a parent or
  132  caretaker relative who resides in the same house or living unit
  133  or, in the case of a child whose disability of nonage has been
  134  removed under chapter 743, the child. The family may also
  135  include other individuals whose income and resources are
  136  considered in whole or in part in determining eligibility of the
  137  child.
  138         (12) “Family income” means cash received at periodic
  139  intervals from any source, such as wages, benefits,
  140  contributions, or rental property. Income also may include any
  141  money that would have been counted as income under the Aid to
  142  Families with Dependent Children (AFDC) state plan in effect
  143  prior to August 22, 1996.
  144         (12)(13) “Florida Kidcare program,” “Kidcare program,” or
  145  “program” means the health benefits program administered through
  146  ss. 409.810-409.821.
  147         (13)(14) “Guarantee issue” means that health benefits
  148  coverage must be offered to an individual regardless of the
  149  individual’s health status, preexisting condition, or claims
  150  history.
  151         (14)(15) “Health benefits coverage” means protection that
  152  provides payment of benefits for covered health care services or
  153  that otherwise provides, either directly or through arrangements
  154  with other persons, covered health care services on a prepaid
  155  per capita basis or on a prepaid aggregate fixed-sum basis.
  156         (15)(16) “Health insurance plan” means health benefits
  157  coverage under the following:
  158         (a) A health plan offered by any certified health
  159  maintenance organization or authorized health insurer, except a
  160  plan that is limited to the following: a limited benefit,
  161  specified disease, or specified accident; hospital indemnity;
  162  accident only; limited benefit convalescent care; Medicare
  163  supplement; credit disability; dental; vision; long-term care;
  164  disability income; coverage issued as a supplement to another
  165  health plan; workers’ compensation liability or other insurance;
  166  or motor vehicle medical payment only; or
  167         (b) An employee welfare benefit plan that includes health
  168  benefits established under the Employee Retirement Income
  169  Security Act of 1974, as amended.
  170         (16) “Household income” means the group or the individual
  171  whose income is considered in determining eligibility for the
  172  Florida Kidcare program. The term “household” has the same
  173  meaning as provided in s. 36B(d)(2) of the Internal Revenue Code
  174  of 1986.
  175         (17) “Medicaid” means the medical assistance program
  176  authorized by Title XIX of the Social Security Act, and
  177  regulations thereunder, and ss. 409.901-409.920, as administered
  178  in this state by the agency.
  179         (18) “Medically necessary” means the use of any medical
  180  treatment, service, equipment, or supply necessary to palliate
  181  the effects of a terminal condition, or to prevent, diagnose,
  182  correct, cure, alleviate, or preclude deterioration of a
  183  condition that threatens life, causes pain or suffering, or
  184  results in illness or infirmity and which is:
  185         (a) Consistent with the symptom, diagnosis, and treatment
  186  of the enrollee’s condition;
  187         (b) Provided in accordance with generally accepted
  188  standards of medical practice;
  189         (c) Not primarily intended for the convenience of the
  190  enrollee, the enrollee’s family, or the health care provider;
  191         (d) The most appropriate level of supply or service for the
  192  diagnosis and treatment of the enrollee’s condition; and
  193         (e) Approved by the appropriate medical body or health care
  194  specialty involved as effective, appropriate, and essential for
  195  the care and treatment of the enrollee’s condition.
  196         (19) “Medikids” means a component of the Florida Kidcare
  197  program of medical assistance authorized by Title XXI of the
  198  Social Security Act, and regulations thereunder, and s.
  199  409.8132, as administered in the state by the agency.
  200         (20)“Modified adjusted gross income” means the
  201  individual’s or household’s annual adjusted gross income as
  202  defined in s. 36B(d)(2) of the Internal Revenue Code of 1986
  203  which is used to determine eligibility under the Florida Kidcare
  204  program.
  205         (21) “Patient Protection and Affordable Care Act” or “Act”
  206  means the federal law enacted as Pub. L. No. 111-148, as further
  207  amended by the federal Health Care and Education Reconciliation
  208  Act of 2010, Pub. L. No. 111-152, and any amendments,
  209  regulations, or guidance issued under those acts.
  210         (22)(20) “Preexisting condition exclusion” means, with
  211  respect to coverage, a limitation or exclusion of benefits
  212  relating to a condition based on the fact that the condition was
  213  present before the date of enrollment for such coverage, whether
  214  or not any medical advice, diagnosis, care, or treatment was
  215  recommended or received before such date.
  216         (23)(21) “Premium” means the entire cost of a health
  217  insurance plan, including the administration fee or the risk
  218  assumption charge.
  219         (24)(22) “Premium assistance payment” means the monthly
  220  consideration paid by the agency per enrollee in the Florida
  221  Kidcare program towards health insurance premiums.
  222         (25)(23) “Qualified alien” means an alien as defined in 8
  223  U.S.C. s. 1641 (b) and (c) s. 431 of the Personal Responsibility
  224  and Work Opportunity Reconciliation Act of 1996, as amended,
  225  Pub. L. No. 104-193.
  226         (26)(24) “Resident” means a United States citizen, or
  227  qualified alien, who is domiciled in this state.
  228         (27)(25) “Rural county” means a county having a population
  229  density of less than 100 persons per square mile, or a county
  230  defined by the most recent United States Census as rural, in
  231  which there is no prepaid health plan participating in the
  232  Medicaid program as of July 1, 1998.
  233         (26) “Substantially similar” means that, with respect to
  234  additional services as defined in s. 2103(c)(2) of Title XXI of
  235  the Social Security Act, these services must have an actuarial
  236  value equal to at least 75 percent of the actuarial value of the
  237  coverage for that service in the benchmark benefit plan and,
  238  with respect to the basic services as defined in s. 2103(c)(1)
  239  of Title XXI of the Social Security Act, these services must be
  240  the same as the services in the benchmark benefit plan.
  241         Section 2. Section 409.813, Florida Statutes, is amended to
  242  read:
  243         409.813 Health benefits coverage; program components;
  244  entitlement and nonentitlement.—
  245         (1) The Florida Kidcare program includes health benefits
  246  coverage provided to children through the following program
  247  components, which shall be marketed as the Florida Kidcare
  248  program:
  249         (a) Medicaid;
  250         (b) Medikids as created in s. 409.8132;
  251         (c) The Florida Healthy Kids Corporation as created in s.
  252  624.91; and
  253         (d) Employer-sponsored group health insurance plans
  254  approved under ss. 409.810-409.821; and
  255         (d)(e) The Children’s Medical Services network established
  256  in chapter 391.
  257         (2) Except for Title XIX-funded Florida Kidcare program
  258  coverage under the Medicaid program, coverage under the Florida
  259  Kidcare program is not an entitlement. No cause of action shall
  260  arise against the state, the department, the Department of
  261  Children and Families Family Services, or the agency, or the
  262  Florida Healthy Kids Corporation for failure to make health
  263  services available to any person under ss. 409.810-409.821.
  264         Section 3. Subsections (6) and (7) of section 409.8132,
  265  Florida Statutes, are amended to read:
  266         409.8132 Medikids program component.—
  267         (6) ELIGIBILITY.—
  268         (a) A child who has attained the age of 1 year but who is
  269  under the age of 5 years is eligible to enroll in the Medikids
  270  program component of the Florida Kidcare program, if the child
  271  is a member of a family that has a family income which exceeds
  272  the Medicaid applicable income level as specified in s. 409.903,
  273  but which is equal to or below 200 percent of the current
  274  federal poverty level. In determining the eligibility of such a
  275  child, an assets test is not required. A child who is eligible
  276  for Medikids may elect to enroll in Florida Healthy Kids
  277  coverage or employer-sponsored group coverage. However, a child
  278  who is eligible for Medikids may participate in the Florida
  279  Healthy Kids program only if the child has a sibling
  280  participating in the Florida Healthy Kids program and the
  281  child’s county of residence permits such enrollment.
  282         (b) The provisions of s. 409.814 apply to the Medikids
  283  program.
  284         (7) ENROLLMENT.—Enrollment in the Medikids program
  285  component may occur at any time throughout the year. A child may
  286  not receive services under the Medikids program until the child
  287  is enrolled in a managed care plan or MediPass. Once determined
  288  eligible, an applicant may receive choice counseling and select
  289  a managed care plan or MediPass. The agency may initiate
  290  mandatory assignment for a Medikids applicant who has not chosen
  291  a managed care plan or MediPass provider after the applicant’s
  292  voluntary choice period ends. An applicant may select MediPass
  293  under the Medikids program component only in counties that have
  294  fewer than two managed care plans available to serve Medicaid
  295  recipients and only if the federal Health Care Financing
  296  Administration determines that MediPass constitutes “health
  297  insurance coverage” as defined in Title XXI of the Social
  298  Security Act.
  299         Section 4. Subsection (2) of section 409.8134, Florida
  300  Statutes, is amended to read:
  301         409.8134 Program expenditure ceiling; enrollment.—
  302         (2) The Florida Kidcare program may conduct enrollment
  303  continuously throughout the year.
  304         (a) Children eligible for coverage under the Title XXI
  305  funded Florida Kidcare program shall be enrolled on a first
  306  come, first-served basis using the date the enrollment
  307  application is received. Enrollment shall immediately cease when
  308  the expenditure ceiling is reached. Year-round enrollment shall
  309  only be held if the Social Services Estimating Conference
  310  determines that sufficient federal and state funds will be
  311  available to finance the increased enrollment.
  312         (b) The application for the Florida Kidcare program is
  313  valid for a period of 120 days after the date it was received.
  314  At the end of the 120-day period, if the applicant has not been
  315  enrolled in the program, the application is invalid and the
  316  applicant shall be notified of the action. The applicant may
  317  reactivate the application after notification of the action
  318  taken by the program.
  319         (c) Except for the Medicaid program, whenever the Social
  320  Services Estimating Conference determines that there are
  321  presently, or will be by the end of the current fiscal year,
  322  insufficient funds to finance the current or projected
  323  enrollment in the Florida Kidcare program, all additional
  324  enrollment must cease and additional enrollment may not resume
  325  until sufficient funds are available to finance such enrollment.
  326         Section 5. Section 409.814, Florida Statutes, is amended to
  327  read:
  328         409.814 Eligibility.—A child who has not reached 19 years
  329  of age whose household family income is equal to or below 200
  330  percent of the federal poverty level is eligible for the Florida
  331  Kidcare program as provided in this section. If an enrolled
  332  individual is determined to be ineligible for coverage, he or
  333  she must be immediately disenrolled from the respective Florida
  334  Kidcare program component and referred to another insurance
  335  affordability program, if appropriate, through a combined
  336  eligibility notice.
  337         (1) A child who is eligible for Medicaid coverage under s.
  338  409.903 or s. 409.904 must be offered the opportunity to enroll
  339  enrolled in Medicaid and is not eligible to receive health
  340  benefits under any other health benefits coverage authorized
  341  under the Florida Kidcare program. A child who is eligible for
  342  Medicaid and opts to enroll in CHIP may disenroll from CHIP at
  343  any time and transition to Medicaid. This transition must occur
  344  without any break in coverage.
  345         (2) A child who is not eligible for Medicaid, but who is
  346  eligible for the Florida Kidcare program, may obtain health
  347  benefits coverage under any of the other components listed in s.
  348  409.813 if such coverage is approved and available in the county
  349  in which the child resides.
  350         (3) A Title XXI-funded child who is eligible for the
  351  Florida Kidcare program who is a child with special health care
  352  needs, as determined through a medical or behavioral screening
  353  instrument, is eligible for health benefits coverage from and
  354  shall be assigned to and may opt out of the Children’s Medical
  355  Services Network.
  356         (4) The following children are not eligible to receive
  357  Title XXI-funded premium assistance for health benefits coverage
  358  under the Florida Kidcare program, except under Medicaid if the
  359  child would have been eligible for Medicaid under s. 409.903 or
  360  s. 409.904 as of June 1, 1997:
  361         (a) A child who is covered under a family member’s group
  362  health benefit plan or under other private or employer health
  363  insurance coverage, if the cost of the child’s participation is
  364  not greater than 5 percent of the household’s family’s income.
  365  If a child is otherwise eligible for a subsidy under the Florida
  366  Kidcare program and the cost of the child’s participation in the
  367  family member’s health insurance benefit plan is greater than 5
  368  percent of the household’s family’s income, the child may enroll
  369  in the appropriate subsidized Kidcare program.
  370         (b) A child who is seeking premium assistance for the
  371  Florida Kidcare program through employer-sponsored group
  372  coverage, if the child has been covered by the same employer’s
  373  group coverage during the 60 days before the family submitted an
  374  application for determination of eligibility under the program.
  375         (b)(c) A child who is an alien, but who does not meet the
  376  definition of qualified alien, in the United States.
  377         (c)(d) A child who is an inmate of a public institution or
  378  a patient in an institution for mental diseases.
  379         (d)(e) A child who is otherwise eligible for premium
  380  assistance for the Florida Kidcare program and has had his or
  381  her coverage in an employer-sponsored or private health benefit
  382  plan voluntarily canceled in the last 60 days, except those
  383  children whose coverage was voluntarily canceled for good cause,
  384  including, but not limited to, the following circumstances:
  385         1. The cost of participation in an employer-sponsored
  386  health benefit plan is greater than 5 percent of the household’s
  387  modified adjusted gross family’s income;
  388         2. The parent lost a job that provided an employer
  389  sponsored health benefit plan for children;
  390         3. The parent who had health benefits coverage for the
  391  child is deceased;
  392         4. The child has a medical condition that, without medical
  393  care, would cause serious disability, loss of function, or
  394  death;
  395         5. The employer of the parent canceled health benefits
  396  coverage for children;
  397         6. The child’s health benefits coverage ended because the
  398  child reached the maximum lifetime coverage amount;
  399         7. The child has exhausted coverage under a COBRA
  400  continuation provision;
  401         8. The health benefits coverage does not cover the child’s
  402  health care needs; or
  403         9. Domestic violence led to loss of coverage.
  404         (5) A child who is otherwise eligible for the Florida
  405  Kidcare program and who has a preexisting condition that
  406  prevents coverage under another insurance plan as described in
  407  paragraph (4)(a) which would have disqualified the child for the
  408  Florida Kidcare program if the child were able to enroll in the
  409  plan is eligible for Florida Kidcare coverage when enrollment is
  410  possible.
  411         (5)(6) A child whose household’s modified adjusted gross
  412  family income is above 200 percent of the federal poverty level
  413  or a child who is excluded under the provisions of subsection
  414  (4) may participate in the Florida Kidcare program as provided
  415  in s. 409.8132 or, if the child is ineligible for Medikids by
  416  reason of age, in the Florida Healthy Kids program, subject to
  417  the following:
  418         (a) The family is not eligible for premium assistance
  419  payments and must pay the full cost of the premium, including
  420  any administrative costs.
  421         (b) The board of directors of the Florida Healthy Kids
  422  Corporation may offer a reduced benefit package to these
  423  children in order to limit program costs for such families.
  424         (c) By August 15, 2013, the Florida Healthy Kids
  425  Corporation shall notify all current full-pay enrollees of the
  426  availability of the exchange and how to access other insurance
  427  affordability options. New applications for full-pay coverage
  428  may not be accepted after September 30, 2013.
  429         (6)(7) Once a child is enrolled in the Florida Kidcare
  430  program, the child is eligible for coverage for 12 months
  431  without a redetermination or reverification of eligibility, if
  432  the family continues to pay the applicable premium. Eligibility
  433  for program components funded through Title XXI of the Social
  434  Security Act terminates when a child attains the age of 19. A
  435  child who has not attained the age of 5 and who has been
  436  determined eligible for the Medicaid program is eligible for
  437  coverage for 12 months without a redetermination or
  438  reverification of eligibility.
  439         (7)(8) When determining or reviewing a child’s eligibility
  440  under the Florida Kidcare program, the applicant shall be
  441  provided with reasonable notice of changes in eligibility which
  442  may affect enrollment in one or more of the program components.
  443  If a transition from one program component to another is
  444  authorized, there shall be cooperation between the program
  445  components and the affected family which promotes continuity of
  446  health care coverage. Any authorized transfers must be managed
  447  within the program’s overall appropriated or authorized levels
  448  of funding. Each component of the program shall establish a
  449  reserve to ensure that transfers between components will be
  450  accomplished within current year appropriations. These reserves
  451  shall be reviewed by each convening of the Social Services
  452  Estimating Conference to determine the adequacy of such reserves
  453  to meet actual experience.
  454         (8)(9) In determining the eligibility of a child, an assets
  455  test is not required. Each applicant shall provide documentation
  456  during the application process and the redetermination process,
  457  including, but not limited to, the following:
  458         (a) Proof of household family income, which must be
  459  verified electronically to determine financial eligibility for
  460  the Florida Kidcare program. Written documentation, which may
  461  include wages and earnings statements or pay stubs, W-2 forms,
  462  or a copy of the applicant’s most recent federal income tax
  463  return, is required only if the electronic verification is not
  464  available or does not substantiate the applicant’s income. This
  465  paragraph expires December 31, 2013.
  466         (b)  A statement from all applicable, employed household
  467  family members that:
  468         1. Their employers do not sponsor health benefit plans for
  469  employees;
  470         2. The potential enrollee is not covered by an employer
  471  sponsored health benefit plan; or
  472         3. The potential enrollee is covered by an employer
  473  sponsored health benefit plan and the cost of the employer
  474  sponsored health benefit plan is more than 5 percent of the
  475  household’s modified adjusted gross family’s income.
  476         (c) To enroll in the Children’s Medical Services Network, a
  477  completed application, including a clinical screening.
  478         (d) Effective January 1, 2014, eligibility shall be
  479  determined through electronic matching using the federally
  480  managed data services hub and other resources. Written
  481  documentation from the applicant may be accepted if the
  482  electronic verification does not substantiate the applicant’s
  483  income or if there has been a change in circumstances.
  484         (9)(10) Subject to paragraph (4)(a), the Florida Kidcare
  485  program shall withhold benefits from an enrollee if the program
  486  obtains evidence that the enrollee is no longer eligible,
  487  submitted incorrect or fraudulent information in order to
  488  establish eligibility, or failed to provide verification of
  489  eligibility. The applicant or enrollee shall be notified that
  490  because of such evidence program benefits will be withheld
  491  unless the applicant or enrollee contacts a designated
  492  representative of the program by a specified date, which must be
  493  within 10 working days after the date of notice, to discuss and
  494  resolve the matter. The program shall make every effort to
  495  resolve the matter within a timeframe that will not cause
  496  benefits to be withheld from an eligible enrollee.
  497         (10)(11) The following individuals may be subject to
  498  prosecution in accordance with s. 414.39:
  499         (a) An applicant obtaining or attempting to obtain benefits
  500  for a potential enrollee under the Florida Kidcare program when
  501  the applicant knows or should have known the potential enrollee
  502  does not qualify for the Florida Kidcare program.
  503         (b) An individual who assists an applicant in obtaining or
  504  attempting to obtain benefits for a potential enrollee under the
  505  Florida Kidcare program when the individual knows or should have
  506  known the potential enrollee does not qualify for the Florida
  507  Kidcare program.
  508         Section 6. Paragraphs (g), (k), (q), and (w) of subsection
  509  (2) of section 409.815, Florida Statutes, are amended to read:
  510         409.815 Health benefits coverage; limitations.—
  511         (2) BENCHMARK BENEFITS.—In order for health benefits
  512  coverage to qualify for premium assistance payments for an
  513  eligible child under ss. 409.810-409.821, the health benefits
  514  coverage, except for coverage under Medicaid and Medikids, must
  515  include the following minimum benefits, as medically necessary.
  516         (g) Behavioral health services.—
  517         1. Mental health benefits include:
  518         a. Inpatient services, limited to 30 inpatient days per
  519  contract year for psychiatric admissions, or residential
  520  services in facilities licensed under s. 394.875(6) or s.
  521  395.003 in lieu of inpatient psychiatric admissions; however, a
  522  minimum of 10 of the 30 days shall be available only for
  523  inpatient psychiatric services if authorized by a physician; and
  524         b. Outpatient services, including outpatient visits for
  525  psychological or psychiatric evaluation, diagnosis, and
  526  treatment by a licensed mental health professional, limited to
  527  40 outpatient visits each contract year.
  528         2. Substance abuse services include:
  529         a. Inpatient services, limited to 7 inpatient days per
  530  contract year for medical detoxification only and 30 days of
  531  residential services; and
  532         b. Outpatient services, including evaluation, diagnosis,
  533  and treatment by a licensed practitioner, limited to 40
  534  outpatient visits per contract year.
  535  
  536  Effective October 1, 2009, Covered services include inpatient
  537  and outpatient services for mental and nervous disorders as
  538  defined in the most recent edition of the Diagnostic and
  539  Statistical Manual of Mental Disorders published by the American
  540  Psychiatric Association. Such benefits include psychological or
  541  psychiatric evaluation, diagnosis, and treatment by a licensed
  542  mental health professional and inpatient, outpatient, and
  543  residential treatment of substance abuse disorders. Any benefit
  544  limitations, including duration of services, number of visits,
  545  or number of days for hospitalization or residential services,
  546  shall not be any less favorable than those for physical
  547  illnesses generally. The program may also implement appropriate
  548  financial incentives, peer review, utilization requirements, and
  549  other methods used for the management of benefits provided for
  550  other medical conditions in order to reduce service costs and
  551  utilization without compromising quality of care.
  552         (k) Hospice services.—Covered services include reasonable
  553  and necessary services for palliation or management of an
  554  enrollee’s terminal illness, with the following exceptions:
  555         1. Once a family elects to receive hospice care for an
  556  enrollee, other services that treat the terminal condition will
  557  not be covered; and
  558         2. Services required for conditions totally unrelated to
  559  the terminal condition are covered to the extent that the
  560  services are included in this section.
  561         (q) Dental services.Effective October 1, 2009, Dental
  562  services shall be covered as required under federal law and may
  563  also include those dental benefits provided to children by the
  564  Florida Medicaid program under s. 409.906(6).
  565         (w) Reimbursement of federally qualified health centers and
  566  rural health clinics.Effective October 1, 2009, Payments for
  567  services provided to enrollees by federally qualified health
  568  centers and rural health clinics under this section shall be
  569  reimbursed using the Medicaid Prospective Payment System as
  570  provided for under s. 2107(e)(1)(D) of the Social Security Act.
  571  If such services are paid for by health insurers or health care
  572  providers under contract with the Florida Healthy Kids
  573  Corporation, such entities are responsible for this payment. The
  574  agency may seek any available federal grants to assist with this
  575  transition.
  576         Section 7. Section 409.816, Florida Statutes, is amended to
  577  read:
  578         409.816 Limitations on premiums and cost-sharing.—The
  579  following limitations on premiums and cost-sharing are
  580  established for the program.
  581         (1) Enrollees who receive coverage under the Medicaid
  582  program may not be required to pay:
  583         (a) Enrollment fees, premiums, or similar charges; or
  584         (b) Copayments, deductibles, coinsurance, or similar
  585  charges.
  586         (2) Enrollees in households that have families with a
  587  modified adjusted gross family income equal to or below 150
  588  percent of the federal poverty level, who are not receiving
  589  coverage under the Medicaid program, may not be required to pay:
  590         (a) Enrollment fees, premiums, or similar charges that
  591  exceed the maximum monthly charge permitted under s. 1916(b)(1)
  592  of the Social Security Act; or
  593         (b) Copayments, deductibles, coinsurance, or similar
  594  charges that exceed a nominal amount, as determined consistent
  595  with regulations referred to in s. 1916(a)(3) of the Social
  596  Security Act. However, such charges may not be imposed for
  597  preventive services, including well-baby and well-child care,
  598  age-appropriate immunizations, and routine hearing and vision
  599  screenings.
  600         (3) Enrollees in households that have families with a
  601  modified adjusted gross family income above 150 percent of the
  602  federal poverty level who are not receiving coverage under the
  603  Medicaid program or who are not eligible under s. 409.814(5) s.
  604  409.814(6) may be required to pay enrollment fees, premiums,
  605  copayments, deductibles, coinsurance, or similar charges on a
  606  sliding scale related to income, except that the total annual
  607  aggregate cost-sharing with respect to all children in a
  608  household family may not exceed 5 percent of the household’s
  609  modified adjusted family’s income. However, copayments,
  610  deductibles, coinsurance, or similar charges may not be imposed
  611  for preventive services, including well-baby and well-child
  612  care, age-appropriate immunizations, and routine hearing and
  613  vision screenings.
  614         Section 8. Section 409.817, Florida Statutes, is repealed.
  615         Section 9. Section 409.8175, Florida Statutes, is repealed.
  616         Section 10. Paragraph (c) of subsection (1) of section
  617  409.8177, Florida Statutes, is amended to read:
  618         409.8177 Program evaluation.—
  619         (1) The agency, in consultation with the Department of
  620  Health, the Department of Children and Families Family Services,
  621  and the Florida Healthy Kids Corporation, shall contract for an
  622  evaluation of the Florida Kidcare program and shall by January 1
  623  of each year submit to the Governor, the President of the
  624  Senate, and the Speaker of the House of Representatives a report
  625  of the program. In addition to the items specified under s. 2108
  626  of Title XXI of the Social Security Act, the report shall
  627  include an assessment of crowd-out and access to health care, as
  628  well as the following:
  629         (c) The characteristics of the children and families
  630  assisted under the program, including ages of the children,
  631  household family income, and access to or coverage by other
  632  health insurance prior to the program and after disenrollment
  633  from the program.
  634         Section 11. Section 409.818, Florida Statutes, is amended
  635  to read:
  636         409.818 Administration.—In order to implement ss. 409.810
  637  409.821, the following agencies shall have the following duties:
  638         (1) The Department of Children and Families Family Services
  639  shall:
  640         (a) Maintain Develop a simplified eligibility determination
  641  and renewal process application mail-in form to be used for
  642  determining the eligibility of children for coverage under the
  643  Florida Kidcare program, in consultation with the agency, the
  644  Department of Health, and the Florida Healthy Kids Corporation.
  645  The simplified eligibility process application form must include
  646  an item that provides an opportunity for the applicant to
  647  indicate whether coverage is being sought for a child with
  648  special health care needs. Families applying for children’s
  649  Medicaid coverage must also be able to use the simplified
  650  application process form without having to pay a premium.
  651         (b) Establish and maintain the eligibility determination
  652  process under the program except as specified in subsection (3),
  653  which includes the following: (5).
  654         1. The department shall directly, or through the services
  655  of a contracted third-party administrator, establish and
  656  maintain a process for determining eligibility of children for
  657  coverage under the program. The eligibility determination
  658  process must be used solely for determining eligibility of
  659  applicants for health benefits coverage under the program. The
  660  eligibility determination process must include an initial
  661  determination of eligibility for any coverage offered under the
  662  program, as well as a redetermination or reverification of
  663  eligibility each subsequent 6 months. Effective January 1, 1999,
  664  A child who has not attained the age of 5 and who has been
  665  determined eligible for the Medicaid program is eligible for
  666  coverage for 12 months without a redetermination or
  667  reverification of eligibility. In conducting an eligibility
  668  determination, the department shall determine if the child has
  669  special health care needs.
  670         2. The department, in consultation with the Agency for
  671  Health Care Administration and the Florida Healthy Kids
  672  Corporation, shall develop procedures for redetermining
  673  eligibility which enable applicants and enrollees a family to
  674  easily update any change in circumstances which could affect
  675  eligibility.
  676         3. The department may accept changes in a family’s status
  677  as reported to the department by the Florida Healthy Kids
  678  Corporation or the exchange without requiring a new application
  679  from the family. Redetermination of a child’s eligibility for
  680  Medicaid may not be linked to a child’s eligibility
  681  determination for other programs.
  682         4. The department, in consultation with the agency and the
  683  Florida Healthy Kids Corporation, shall develop a combined
  684  eligibility notice to inform applicants and enrollees of their
  685  application or renewal status, as appropriate. The content must
  686  be coordinated to meet all federal and state requirements under
  687  the federal Patient Protection and Affordable Care Act.
  688         (c) Inform program applicants about eligibility
  689  determinations and provide information about eligibility of
  690  applicants to the Florida Kidcare program and to insurers and
  691  their agents, through a centralized coordinating office.
  692         (d) Adopt rules necessary for conducting program
  693  eligibility functions.
  694         (2) The Department of Health shall:
  695         (a) Design an eligibility intake process for the program,
  696  in coordination with the Department of Children and Family
  697  Services, the agency, and the Florida Healthy Kids Corporation.
  698  The eligibility intake process may include local intake points
  699  that are determined by the Department of Health in coordination
  700  with the Department of Children and Family Services.
  701         (b) Chair a state-level Florida Kidcare coordinating
  702  council to review and make recommendations concerning the
  703  implementation and operation of the program. The coordinating
  704  council shall include representatives from the department, the
  705  Department of Children and Family Services, the agency, the
  706  Florida Healthy Kids Corporation, the Office of Insurance
  707  Regulation of the Financial Services Commission, local
  708  government, health insurers, health maintenance organizations,
  709  health care providers, families participating in the program,
  710  and organizations representing low-income families.
  711         (c) In consultation with the Florida Healthy Kids
  712  Corporation and the Department of Children and Family Services,
  713  establish a toll-free telephone line to assist families with
  714  questions about the program.
  715         (d) Adopt rules necessary to implement outreach activities.
  716         (2)(3) The Agency for Health Care Administration, under the
  717  authority granted in s. 409.914(1), shall:
  718         (a) Calculate the premium assistance payment necessary to
  719  comply with the premium and cost-sharing limitations specified
  720  in s. 409.816 and the federal Patient Protection and Affordable
  721  Care Act. The premium assistance payment for each enrollee in a
  722  health insurance plan participating in the Florida Healthy Kids
  723  Corporation shall equal the premium approved by the Florida
  724  Healthy Kids Corporation and the Office of Insurance Regulation
  725  of the Financial Services Commission pursuant to ss. 627.410 and
  726  641.31, less any enrollee’s share of the premium established
  727  within the limitations specified in s. 409.816. The premium
  728  assistance payment for each enrollee in an employer-sponsored
  729  health insurance plan approved under ss. 409.810-409.821 shall
  730  equal the premium for the plan adjusted for any benchmark
  731  benefit plan actuarial equivalent benefit rider approved by the
  732  Office of Insurance Regulation pursuant to ss. 627.410 and
  733  641.31, less any enrollee’s share of the premium established
  734  within the limitations specified in s. 409.816. In calculating
  735  the premium assistance payment levels for children with family
  736  coverage, the agency shall set the premium assistance payment
  737  levels for each child proportionately to the total cost of
  738  family coverage.
  739         (b) Make premium assistance payments to health insurance
  740  plans on a periodic basis. The agency may use its Medicaid
  741  fiscal agent or a contracted third-party administrator in making
  742  these payments. The agency may require health insurance plans
  743  that participate in the Medikids program or employer-sponsored
  744  group health insurance to collect premium payments from an
  745  enrollee’s family. Participating health insurance plans shall
  746  report premium payments collected on behalf of enrollees in the
  747  program to the agency in accordance with a schedule established
  748  by the agency.
  749         (c) Monitor compliance with quality assurance and access
  750  standards developed under s. 409.820 and in accordance with s.
  751  2103(f) of the Social Security Act, 42 U.S.C. s. 1397cc(f).
  752         (d) Establish a mechanism for investigating and resolving
  753  complaints and grievances from program applicants, enrollees,
  754  and health benefits coverage providers, and maintain a record of
  755  complaints and confirmed problems. In the case of a child who is
  756  enrolled in a managed care health maintenance organization, the
  757  agency must use the provisions of s. 641.511 to address
  758  grievance reporting and resolution requirements.
  759         (e) Approve health benefits coverage for participation in
  760  the program, following certification by the Office of Insurance
  761  Regulation under subsection (4).
  762         (e)(f) Adopt rules necessary for calculating premium
  763  assistance payment levels, making premium assistance payments,
  764  monitoring access and quality assurance standards and,
  765  investigating and resolving complaints and grievances,
  766  administering the Medikids program, and approving health
  767  benefits coverage.
  768         (f) Contract with the Florida Healthy Kids Corporation for
  769  the administration of the Florida Kidcare program and the
  770  Healthy Florida program and to facilitate the release of any
  771  federal and state funds.
  772  
  773  The agency is designated the lead state agency for Title XXI of
  774  the Social Security Act for purposes of receipt of federal
  775  funds, for reporting purposes, and for ensuring compliance with
  776  federal and state regulations and rules.
  777         (4) The Office of Insurance Regulation shall certify that
  778  health benefits coverage plans that seek to provide services
  779  under the Florida Kidcare program, except those offered through
  780  the Florida Healthy Kids Corporation or the Children’s Medical
  781  Services Network, meet, exceed, or are actuarially equivalent to
  782  the benchmark benefit plan and that health insurance plans will
  783  be offered at an approved rate. In determining actuarial
  784  equivalence of benefits coverage, the Office of Insurance
  785  Regulation and health insurance plans must comply with the
  786  requirements of s. 2103 of Title XXI of the Social Security Act.
  787  The department shall adopt rules necessary for certifying health
  788  benefits coverage plans.
  789         (3)(5) The Florida Healthy Kids Corporation shall retain
  790  its functions as authorized in s. 624.91, including eligibility
  791  determination for participation in the Healthy Kids program.
  792         (4)(6) The agency, the Department of Health, the Department
  793  of Children and Families Family Services, and the Florida
  794  Healthy Kids Corporation, and the Office of Insurance
  795  Regulation, after consultation with and approval of the Speaker
  796  of the House of Representatives and the President of the Senate,
  797  may are authorized to make program modifications that are
  798  necessary to overcome any objections of the United States
  799  Department of Health and Human Services to obtain approval of
  800  the state’s child health insurance plan under Title XXI of the
  801  Social Security Act.
  802         Section 12. Section 409.820, Florida Statutes, is amended
  803  to read:
  804         409.820 Quality assurance and access standards.—Except for
  805  Medicaid, the Department of Health, in consultation with the
  806  agency and the Florida Healthy Kids Corporation, shall develop a
  807  minimum set of pediatric and adolescent quality assurance and
  808  access standards for all program components. The standards must
  809  include a process for granting exceptions to specific
  810  requirements for quality assurance and access. Compliance with
  811  the standards shall be a condition of program participation by
  812  health benefits coverage providers. These standards shall comply
  813  with the provisions of this chapter and chapter 641 and Title
  814  XXI of the Social Security Act.
  815         Section 13. Section 624.91, Florida Statutes, is amended to
  816  read:
  817         624.91 The Florida Healthy Kids Corporation Act.—
  818         (1) SHORT TITLE.—This section may be cited as the “William
  819  G. ‘Doc’ Myers Healthy Kids Corporation Act.”
  820         (2) LEGISLATIVE INTENT.—
  821         (a) The Legislature finds that increased access to health
  822  care services could improve children’s health and reduce the
  823  incidence and costs of childhood illness and disabilities among
  824  children in this state. Many children do not have comprehensive,
  825  affordable health care services available. It is the intent of
  826  the Legislature that the Florida Healthy Kids Corporation
  827  provide comprehensive health insurance coverage to such
  828  children. The corporation is encouraged to cooperate with any
  829  existing health service programs funded by the public or the
  830  private sector.
  831         (b) It is the intent of the Legislature that the Florida
  832  Healthy Kids Corporation serve as one of several providers of
  833  services to children eligible for medical assistance under Title
  834  XXI of the Social Security Act. Although the corporation may
  835  serve other children, the Legislature intends the primary
  836  recipients of services provided through the corporation be
  837  school-age children with a family income below 200 percent of
  838  the federal poverty level, who do not qualify for Medicaid. It
  839  is also the intent of the Legislature that state and local
  840  government Florida Healthy Kids funds be used to continue
  841  coverage, subject to specific appropriations in the General
  842  Appropriations Act, to children not eligible for federal
  843  matching funds under Title XXI.
  844         (c) It is further the intent of the Legislature that the
  845  Florida Healthy Kids Corporation administer and manage services
  846  for Healthy Florida, a health care program for uninsured adults
  847  using a unique network of providers and contracts. Enrollees in
  848  Healthy Florida will receive comprehensive health care services
  849  from private, licensed health insurers who meet standards
  850  established by the corporation. It is further the intent of the
  851  Legislature that these enrollees participate in their own health
  852  care decisionmaking and contribute financially toward their
  853  medical costs. The Legislature intends to provide an alternative
  854  benefit package that includes a full range of services which
  855  meet the needs of residents of this state. As a new program, the
  856  Legislature shall also ensure that a comprehensive evaluation is
  857  conducted to measure the overall impact of the program and
  858  identify whether to renew the program after an initial 3-year
  859  term.
  860         (3) ELIGIBILITY FOR STATE-FUNDED ASSISTANCE.—Only the
  861  following individuals are eligible for state-funded assistance
  862  in paying premiums for Healthy Florida or Florida Healthy Kids
  863  premiums:
  864         (a) Residents of this state who are eligible for the
  865  Florida Kidcare program pursuant to s. 409.814 or the Healthy
  866  Florida pursuant to s. 624.917.
  867         (b) Notwithstanding s. 409.814, legal aliens who are
  868  enrolled in the Florida Healthy Kids program as of January 31,
  869  2004, who do not qualify for Title XXI federal funds because
  870  they are not qualified aliens as defined in s. 409.811.
  871         (4) NONENTITLEMENT.—Nothing in this section shall be
  872  construed as providing an individual with an entitlement to
  873  health care services. No cause of action shall arise against the
  874  state, the Florida Healthy Kids Corporation, or a unit of local
  875  government for failure to make health services available under
  876  this section.
  877         (5) CORPORATION AUTHORIZATION, DUTIES, POWERS.—
  878         (a) There is created the Florida Healthy Kids Corporation,
  879  a not-for-profit corporation.
  880         (b) The Florida Healthy Kids Corporation shall:
  881         1. Arrange for the collection of any family, individual, or
  882  local contributions, or employer payment or premium, in an
  883  amount to be determined by the board of directors, to provide
  884  for payment of premiums for comprehensive insurance coverage and
  885  for the actual or estimated administrative expenses.
  886         2. Arrange for the collection of any voluntary
  887  contributions to provide for payment of premiums for enrollees
  888  in the Florida Kidcare program or Healthy Florida premiums for
  889  children who are not eligible for medical assistance under Title
  890  XIX or Title XXI of the Social Security Act.
  891         3. Subject to the provisions of s. 409.8134, accept
  892  voluntary supplemental local match contributions that comply
  893  with the requirements of Title XXI of the Social Security Act
  894  for the purpose of providing additional Florida Kidcare coverage
  895  in contributing counties under Title XXI.
  896         4. Establish the administrative and accounting procedures
  897  for the operation of the corporation.
  898         5. Establish, with consultation from appropriate
  899  professional organizations, standards for preventive health
  900  services and providers and comprehensive insurance benefits
  901  appropriate to children, provided that such standards for rural
  902  areas shall not limit primary care providers to board-certified
  903  pediatricians.
  904         6. Determine eligibility for children seeking to
  905  participate in the Title XXI-funded components of the Florida
  906  Kidcare program consistent with the requirements specified in s.
  907  409.814, as well as the non-Title-XXI-eligible children as
  908  provided in subsection (3).
  909         7. Establish procedures under which providers of local
  910  match to, applicants to and participants in the program may have
  911  grievances reviewed by an impartial body and reported to the
  912  board of directors of the corporation.
  913         8. Establish participation criteria and, if appropriate,
  914  contract with an authorized insurer, health maintenance
  915  organization, or third-party administrator to provide
  916  administrative services to the corporation.
  917         9. Establish enrollment criteria that include penalties or
  918  waiting periods of 30 days for reinstatement of coverage upon
  919  voluntary cancellation for nonpayment of family and individual
  920  premiums under the programs.
  921         10. Contract with authorized insurers or any provider of
  922  health care services, meeting standards established by the
  923  corporation, for the provision of comprehensive insurance
  924  coverage to participants. Such standards shall include criteria
  925  under which the corporation may contract with more than one
  926  provider of health care services in program sites.
  927         a. Health plans shall be selected through a competitive bid
  928  process.
  929         b. The Florida Healthy Kids Corporation shall purchase
  930  goods and services in the most cost-effective manner consistent
  931  with the delivery of quality medical care. The maximum
  932  administrative cost for a Florida Healthy Kids Corporation
  933  contract shall be 15 percent. For all health care contracts, the
  934  minimum medical loss ratio is for a Florida Healthy Kids
  935  Corporation contract shall be 85 percent. The calculations must
  936  use uniform financial data collected from all plans in a format
  937  established by the corporation and shall be computed for each
  938  insurer on a statewide basis. Funds shall be classified in a
  939  manner consistent with 45 C.F.R. part 158 For dental contracts,
  940  the remaining compensation to be paid to the authorized insurer
  941  or provider under a Florida Healthy Kids Corporation contract
  942  shall be no less than an amount which is 85 percent of premium;
  943  to the extent any contract provision does not provide for this
  944  minimum compensation, this section shall prevail.
  945         c. The health plan selection criteria and scoring system,
  946  and the scoring results, shall be available upon request for
  947  inspection after the bids have been awarded.
  948         11. Establish disenrollment criteria in the event local
  949  matching funds are insufficient to cover enrollments.
  950         12. Develop and implement a plan to publicize the Florida
  951  Kidcare program and Healthy Florida, the eligibility
  952  requirements of the programs program, and the procedures for
  953  enrollment in the program and to maintain public awareness of
  954  the corporation and the programs program.
  955         13. Secure staff necessary to properly administer the
  956  corporation. Staff costs shall be funded from state and local
  957  matching funds and such other private or public funds as become
  958  available. The board of directors shall determine the number of
  959  staff members necessary to administer the corporation.
  960         14. In consultation with the partner agencies, annually
  961  provide a report on the Florida Kidcare program annually to the
  962  Governor, the Chief Financial Officer, the Commissioner of
  963  Education, the President of the Senate, the Speaker of the House
  964  of Representatives, and the Minority Leaders of the Senate and
  965  the House of Representatives.
  966         15. Provide information on a quarterly basis to the
  967  Legislature and the Governor which compares the costs and
  968  utilization of the full-pay enrolled population and the Title
  969  XXI-subsidized enrolled population in the Florida Kidcare
  970  program. The information, at a minimum, must include:
  971         a. The monthly enrollment and expenditure for full-pay
  972  enrollees in the Medikids and Florida Healthy Kids programs
  973  compared to the Title XXI-subsidized enrolled population; and
  974         b. The costs and utilization by service of the full-pay
  975  enrollees in the Medikids and Florida Healthy Kids programs and
  976  the Title XXI-subsidized enrolled population. This subparagraph
  977  is repealed effective December 31, 2013.
  978  
  979  By February 1, 2010, the Florida Healthy Kids Corporation shall
  980  provide a study to the Legislature and the Governor on premium
  981  impacts to the subsidized portion of the program from the
  982  inclusion of the full-pay program, which shall include
  983  recommendations on how to eliminate or mitigate possible impacts
  984  to the subsidized premiums.
  985         16. By August 15, 2013, the corporation shall notify all
  986  current full-pay enrollees of the availability of the exchange,
  987  as defined in the federal Patient Protection and Affordable Care
  988  Act, and how to access other insurance affordability options.
  989  New applications for full-pay coverage may not be accepted after
  990  September 30, 2013.
  991         17.16. Establish benefit packages that conform to the
  992  provisions of the Florida Kidcare program, as created in ss.
  993  409.810-409.821.
  994         (c) Coverage under the corporation’s program is secondary
  995  to any other available private coverage held by, or applicable
  996  to, the participant child or family member. Insurers under
  997  contract with the corporation are the payors of last resort and
  998  must coordinate benefits with any other third-party payor that
  999  may be liable for the participant’s medical care.
 1000         (d) The Florida Healthy Kids Corporation shall be a private
 1001  corporation not for profit, registered, incorporated, and
 1002  organized pursuant to chapter 617, and shall have all powers
 1003  necessary to carry out the purposes of this act, including, but
 1004  not limited to, the power to receive and accept grants, loans,
 1005  or advances of funds from any public or private agency and to
 1006  receive and accept from any source contributions of money,
 1007  property, labor, or any other thing of value, to be held, used,
 1008  and applied for the purposes of this act. The corporation and
 1009  any committees it forms shall act in compliance with part III of
 1010  chapter 112, and chapters 119 and 286.
 1011         (6) BOARD OF DIRECTORS AND MANAGEMENT SUPERVISION.—
 1012         (a) The Florida Healthy Kids Corporation shall operate
 1013  subject to the supervision and approval of a board of directors
 1014  chaired by an appointee designated by the Governor Chief
 1015  Financial Officer or her or his designee, and composed of 15 12
 1016  other members. The Senate shall confirm the designated chair and
 1017  other board appointees selected for 3-year terms of office as
 1018  follows:
 1019         1. The Secretary of Health Care Administration, or his or
 1020  her designee, as an ex-officio member.
 1021         2. The State Surgeon General, or his or her designee, as an
 1022  ex-officio member One member appointed by the Commissioner of
 1023  Education from the Office of School Health Programs of the
 1024  Florida Department of Education.
 1025         3. The Secretary of Children and Families, or his or her
 1026  designee, as an ex-officio member One member appointed by the
 1027  Chief Financial Officer from among three members nominated by
 1028  the Florida Pediatric Society.
 1029         4. Four members One member, appointed by the Governor, who
 1030  represents the Children’s Medical Services Program.
 1031         5. Two members One member appointed by the President of the
 1032  Senate Chief Financial Officer from among three members
 1033  nominated by the Florida Hospital Association.
 1034         6. Two members One member, appointed by the Senate Minority
 1035  Leader Governor, who is an expert on child health policy.
 1036         7. Two members One member, appointed by the Speaker of the
 1037  House of Representatives Chief Financial Officer, from among
 1038  three members nominated by the Florida Academy of Family
 1039  Physicians.
 1040         8. Two members One member, appointed by the House Minority
 1041  Leader Governor, who represents the state Medicaid program.
 1042         9. One member, appointed by the Chief Financial Officer,
 1043  from among three members nominated by the Florida Association of
 1044  Counties.
 1045         10. The State Health Officer or her or his designee.
 1046         11. The Secretary of Children and Family Services, or his
 1047  or her designee.
 1048         12. One member, appointed by the Governor, from among three
 1049  members nominated by the Florida Dental Association.
 1050         (b) A member of the board of directors may be removed by
 1051  the official who appointed that member. The board shall appoint
 1052  an executive director, who is responsible for other staff
 1053  authorized by the board.
 1054         (c) Board members are entitled to receive, from funds of
 1055  the corporation, reimbursement for per diem and travel expenses
 1056  as provided by s. 112.061.
 1057         (d) There shall be no liability on the part of, and no
 1058  cause of action shall arise against, any member of the board of
 1059  directors, or its employees or agents, for any action they take
 1060  in the performance of their powers and duties under this act.
 1061         (e) Board members who are serving on or before the date of
 1062  enactment of this act or similar legislation may remain until
 1063  July 1, 2013.
 1064         (f) An executive steering committee is created to provide
 1065  management direction and support and to make recommendations to
 1066  the board on the programs. The steering committee is composed of
 1067  the Secretary of Health Care Administration, the Secretary of
 1068  Children and Families, and the State Surgeon General. Committee
 1069  members may not delegate their membership or attendance.
 1070         (7) LICENSING NOT REQUIRED; FISCAL OPERATION.—
 1071         (a) The corporation shall not be deemed an insurer. The
 1072  officers, directors, and employees of the corporation shall not
 1073  be deemed to be agents of an insurer. Neither the corporation
 1074  nor any officer, director, or employee of the corporation is
 1075  subject to the licensing requirements of the insurance code or
 1076  the rules of the Department of Financial Services or Office of
 1077  Insurance Regulation. However, any marketing representative
 1078  utilized and compensated by the corporation must be appointed as
 1079  a representative of the insurers or health services providers
 1080  with which the corporation contracts.
 1081         (b) The board has complete fiscal control over the
 1082  corporation and is responsible for all corporate operations.
 1083         (c) The Department of Financial Services shall supervise
 1084  any liquidation or dissolution of the corporation and shall
 1085  have, with respect to such liquidation or dissolution, all power
 1086  granted to it pursuant to the insurance code.
 1087         Section 14. Section 624.915, Florida Statutes, is repealed.
 1088         Section 15. Section 624.917, Florida Statutes, is created
 1089  to read:
 1090         624.917Healthy Florida program.—
 1091         (1) PROGRAM CREATION.—There is created Healthy Florida, a
 1092  health care program for lower income, uninsured adults who meet
 1093  the eligibility guidelines established under s. 624.91. The
 1094  Florida Healthy Kids Corporation shall administer the program
 1095  under its existing corporate governance and structure.
 1096         (2) DEFINITIONS.—As used in this section, the term:
 1097         (a) “Actuarially equivalent” means:
 1098         1. The aggregate value of the benefits included in health
 1099  benefits coverage is equal to the value of the benefits in the
 1100  child benchmark benefit plan as defined in s. 409.811; and
 1101         2. The benefits included in health benefits coverage are
 1102  substantially similar to the benefits included in the child
 1103  benchmark benefit plan, except that preventive health services
 1104  do not include dental services.
 1105         (b) “Agency” means the Agency for Health Care
 1106  Administration.
 1107         (c) “Applicant” means the individual who applies for
 1108  determination of eligibility for health benefits coverage under
 1109  this section.
 1110         (d) “Child benchmark benefit plan” means the form and level
 1111  of health benefits coverage established in s. 409.815.
 1112         (e) “Child” means any person younger than 19 years of age.
 1113         (f) “Corporation” means the Florida Healthy Kids
 1114  Corporation.
 1115         (g) “Enrollee” means an individual who has been determined
 1116  eligible for and is receiving coverage under this section.
 1117         (h) “Florida Kidcare program” or “Kidcare program,” means
 1118  the health benefits program administered through ss. 409.810
 1119  409.821.
 1120         (i)“Health benefits coverage” means protection that
 1121  provides payment of benefits for covered health care services or
 1122  that otherwise provides, either directly or through arrangements
 1123  with other persons, covered health care services on a prepaid
 1124  per capita basis or on a prepaid aggregate fixed-sum basis.
 1125         (j) “Healthy Florida” means the program created by this
 1126  section which is administered by the Florida Healthy Kids
 1127  Corporation.
 1128         (k) “Healthy Kids” means the Florida Kidcare program
 1129  component created under s. 624.91 for children who are 5 through
 1130  18 years of age.
 1131         (l) “Household income” means the group or the individual
 1132  whose income is considered in determining eligibility for the
 1133  Healthy Florida program. The term “household” has the same
 1134  meaning as provided in s. 36B(d)(2) of the Internal Revenue Code
 1135  of 1986.
 1136         (m) “Medicaid” means the medical assistance program
 1137  authorized by Title XIX of the Social Security Act, and
 1138  regulations thereunder, and ss. 409.901-409.920, as administered
 1139  in this state by the agency.
 1140         (n) “Medically necessary” means the use of any medical
 1141  treatment, service, equipment, or supply necessary to palliate
 1142  the effects of a terminal condition, or to prevent, diagnose,
 1143  correct, cure, alleviate, or preclude deterioration of a
 1144  condition that threatens life, causes pain or suffering, or
 1145  results in illness or infirmity and which is:
 1146         1. Consistent with the symptom, diagnosis, and treatment of
 1147  the enrollee’s condition;
 1148         2. Provided in accordance with generally accepted standards
 1149  of medical practice;
 1150         3. Not primarily intended for the convenience of the
 1151  enrollee, the enrollee’s family, or the health care provider;
 1152         4. The most appropriate level of supply or service for the
 1153  diagnosis and treatment of the enrollee’s condition; and
 1154         5. Approved by the appropriate medical body or health care
 1155  specialty involved as effective, appropriate, and essential for
 1156  the care and treatment of the enrollee’s condition.
 1157         (o)“Modified adjusted gross income” means the individual
 1158  or household’s annual adjusted gross income as defined in s.
 1159  36B(d)(2) of the Internal Revenue Code of 1986 which is used to
 1160  determine eligibility under the Florida Kidcare program.
 1161         (p) “Patient Protection and Affordable Care Act” or “Act”
 1162  means the federal law enacted as Pub. L. No. 111-148, as further
 1163  amended by the federal Health Care and Education Reconciliation
 1164  Act of 2010, Pub. L. No. 111-152, and any amendments,
 1165  regulations or guidance thereunder, issued under those acts.
 1166         (q) “Premium” means the entire cost of a health insurance
 1167  plan, including the administration fee or the risk assumption
 1168  charge.
 1169         (r) “Premium assistance payment” means the monthly
 1170  consideration paid by the agency per enrollee in the Florida
 1171  Kidcare program towards health insurance premiums.
 1172         (s) “Qualified alien” means an alien as defined in 8 U.S.C.
 1173  s. 1641(b) and (c).
 1174         (t) “Resident” means a United States citizen or qualified
 1175  alien who is domiciled in this state.
 1176         (3) ELIGIBILITY.—To be eligible and remain eligible for the
 1177  Healthy Florida program, an individual must be a resident of
 1178  this state and meet the following additional criteria:
 1179         (a) Be identified as newly eligible, as defined in s.
 1180  1902(a)(10)(A)(i)(VIII) of the Social Security Act or s. 2001 of
 1181  the federal Patient Protection and Affordable Care Act, and as
 1182  may be further defined by federal regulation.
 1183         (b) Maintain eligibility with the corporation and meet all
 1184  renewal requirements as established by the corporation.
 1185         (c) Renew eligibility on at least an annual basis.
 1186         (4) ENROLLMENT.—The corporation may begin the enrollment of
 1187  applicants in the Healthy Florida program on October 1, 2013.
 1188  Enrollment may occur directly, through the services of a third
 1189  party administrator, referrals from the Department of Children
 1190  and Families, and the exchange as defined by the federal Patient
 1191  Protection and Affordable Care Act. As an enrollee disenrolls,
 1192  the corporation must also provide the enrollee with information
 1193  about other insurance affordability programs and electronically
 1194  refer the enrollee to the exchange or other programs, as
 1195  appropriate. The earliest coverage effective date under the
 1196  program shall be January 1, 2014.
 1197         (5) DELIVERY OF SERVICES.—The corporation shall contract
 1198  with authorized insurers licensed under chapter 627; managed
 1199  care organizations authorized under chapter 641; and provider
 1200  service networks authorized under ss. 409.912(4)(d) and
 1201  409.962(13) which are prepaid plans. These insurers, managed
 1202  care organizations, and provider service networks must meet
 1203  standards established by the corporation to provide
 1204  comprehensive health care services to enrollees who qualify for
 1205  services under this section. The corporation may contract for
 1206  such services on a statewide or regional basis. To encourage
 1207  continuity of care among enrollees who may transition across
 1208  multiple insurance affordability programs, the corporation is
 1209  encouraged to contract with those insurers and managed care
 1210  organizations that participate in more than one such program.
 1211         (a) The corporation shall establish access and network
 1212  standards for such contracts and ensure that contracted
 1213  providers have sufficient providers to meet enrollee needs.
 1214  Quality standards must be developed by the corporation, specific
 1215  to the adult population, which take into consideration
 1216  recommendations from the National Committee on Quality
 1217  Assurance, stakeholders, and other existing performance
 1218  indicators from both public and commercial populations. The
 1219  corporation and its contracted health plans shall develop
 1220  policies that minimize the disruption of enrollee medical homes
 1221  when enrollees transition between insurance affordability plans.
 1222         (b) The corporation shall provide an enrollee a choice of
 1223  plans. The corporation may select a plan if no selection has
 1224  been received before the coverage start date. Once enrolled, an
 1225  enrollee has an initial 90-day, free-look period before a lock
 1226  in period of not more than 12 months is applied. Exceptions to
 1227  the lock-in period must be offered to an enrollee for reasons
 1228  based upon good cause or qualifying events.
 1229         (c) The corporation may consider contracts that provide
 1230  family plans that would allow members from multiple state and
 1231  federally funded programs to remain together under the same
 1232  plan.
 1233         (d) All contracts must meet the medical loss ratio
 1234  requirements under s. 624.91.
 1235         (6) BENEFITS.—The corporation shall establish a benefits
 1236  package that is actuarially equivalent to the benchmark benefit
 1237  plan offered under s. 409.815(2), excluding dental, and meets
 1238  the alternative benefits package requirements under s. 1937 of
 1239  the Social Security Act. Benefits must be offered as an
 1240  integrated, single package.
 1241         (a) In addition to benchmark benefits, health reimbursement
 1242  accounts or a comparable health savings account for each
 1243  enrollee must be established through the corporation or the
 1244  contracts managed by the corporation. Enrollees must be rewarded
 1245  for healthy behaviors, wellness program adherence, and other
 1246  activities established by the corporation which demonstrate
 1247  compliance with preventive care or disease management
 1248  guidelines. Funds deposited into these accounts may be used to
 1249  pay cost-sharing obligations or to purchase over-the-counter
 1250  health-related items to the extent allowed under federal law or
 1251  regulation.
 1252         (b) Enhanced services may be offered if the cost of such
 1253  additional services provides savings to the overall plan.
 1254         (c) The corporation shall establish a process for the
 1255  payment of wrap-around services not covered by the benchmark
 1256  benefit plan through a separate subcapitation process to its
 1257  contracted providers if it is determined that such services are
 1258  required by federal law. Such services would be covered when
 1259  deemed medically necessary on an individual basis. The
 1260  subcapitation pool is subject to a separate reconciliation
 1261  process under the medical loss ratio provisions in s. 624.91.
 1262         (d) A prior authorization process and other utilization
 1263  controls may be established by the plan for any benefit if
 1264  approved by the corporation.
 1265         (7) COST SHARING.—The corporation may collect premiums and
 1266  copayments from enrollees in accordance with federal law.
 1267  Amounts to be collected for the Healthy Florida program must be
 1268  established annually in the General Appropriations Act.
 1269         (a) Payment of a monthly premium may be required before the
 1270  establishment of an enrollee’s coverage start date and to retain
 1271  monthly coverage.
 1272         (b) An enrollee who has a family income above the federal
 1273  poverty level may be required to make nominal copayments, in
 1274  accordance with federal rule, as a condition of receiving a
 1275  health care service.
 1276         (c) A provider is responsible for the collection of point
 1277  of-service cost-sharing obligations. The enrollee’s cost-sharing
 1278  contribution is considered part of the provider’s total
 1279  reimbursement. Failure to collect an enrollee’s cost sharing
 1280  reduces the provider’s share of the reimbursement.
 1281         (8) PROGRAM MANAGEMENT.—The corporation is responsible for
 1282  the oversight of the Healthy Florida program. The agency shall
 1283  seek a state plan amendment or other appropriate federal
 1284  approval to implement the Healthy Florida program. The agency
 1285  shall consult with the corporation in the amendment’s
 1286  development and submit by June 14, 2013, the state plan
 1287  amendment to the federal Department of Health and Human
 1288  Services. The agency shall contract with the corporation for the
 1289  administration of the Healthy Florida program and for the timely
 1290  release of federal and state funds. The agency retains its
 1291  authorities as provided in ss. 409.902 and 409.963.
 1292         (a) The corporation shall establish a process by which
 1293  grievances can be resolved and Healthy Florida recipients can be
 1294  informed of their rights under the Medicaid Fair Hearing
 1295  Process, as appropriate, or any alternative resolution process
 1296  adopted by the corporation.
 1297         (b) The corporation shall establish a program integrity
 1298  process to ensure compliance with program guidelines. At a
 1299  minimum, the corporation shall withhold benefits from an
 1300  applicant or enrollee if the corporation obtains evidence that
 1301  the applicant or enrollee is no longer eligible, submitted
 1302  incorrect or fraudulent information in order to establish
 1303  eligibility, or failed to provide verification of eligibility.
 1304  The corporation shall notify the applicant or enrollee that,
 1305  because of such evidence, program benefits must be withheld
 1306  unless the applicant or enrollee contacts a designated
 1307  representative of the corporation by a specified date, which
 1308  must be within 10 working days after the date of notice, to
 1309  discuss and resolve the matter. The corporation shall make every
 1310  effort to resolve the matter within a timeframe that will not
 1311  cause benefits to be withheld from an eligible enrollee. The
 1312  following individuals may be subject to specific prosecution in
 1313  accordance with s. 414.39:
 1314         1. An applicant who obtains or attempts to obtain benefits
 1315  for a potential enrollee under the Healthy Florida program when
 1316  the applicant knows or should have known that the potential
 1317  enrollee does not qualify for the Healthy Florida program.
 1318         2. An individual who assists an applicant in obtaining or
 1319  attempting to obtain benefits for a potential enrollee under the
 1320  Healthy Florida program when the individual knows or should have
 1321  known that the potential enrollee does not qualify for the
 1322  Healthy Florida program.
 1323         (9) APPLICABILITY OF LAWS RELATING TO MEDICAID.—The
 1324  provisions of ss. 409.902, 409.9128, and 409.920 apply to the
 1325  administration of the Healthy Florida program.
 1326         (10) PROGRAM EVALUATION.—The corporation shall collect both
 1327  eligibility and enrollment data from program applicants and
 1328  enrollees as well as encounter and utilization data from all
 1329  contracted entities during the program term. The corporation
 1330  shall submit monthly enrollment reports to the President of the
 1331  Senate, the Speaker of the House of Representative, and the
 1332  Minority Leaders of the Senate and the House of Representatives.
 1333  The corporation shall submit an interim independent evaluation
 1334  of the Healthy Florida program to the presiding officers no
 1335  later than July 1, 2015, with annual evaluations due July 1 each
 1336  year thereafter. The evaluations must address, at a minimum,
 1337  application and enrollment trends and issues, utilization and
 1338  cost data, and customer satisfaction.
 1339         (11) PROGRAM EXPIRATION.—The Healthy Florida program shall
 1340  expire at the end of the state fiscal year in which any of these
 1341  conditions occur, whichever occurs first:
 1342         (a) The federal match contribution falls below 90 percent.
 1343         (b) The federal match contribution falls below the
 1344  increased FMAP for medical assistance for newly eligible
 1345  mandatory individuals as specified in the federal Patient
 1346  Protection and Affordable Care Act, Pub. L. No. 111-148, as
 1347  amended by the federal Health Care and Education Reconciliation
 1348  Act of 2010, Pub. L. No. 111-152.
 1349         (c) The federal match for the Healthy Florida program and
 1350  the Medicaid program are blended under federal law or regulation
 1351  in such a way that causes the overall federal contribution to
 1352  diminish when compared to separate, nonblended federal
 1353  contributions.
 1354         Section 16. The Florida Healthy Kids Corporation may make
 1355  changes to comply with the objections of the federal Department
 1356  of Health and Human Services to gain approval of the Healthy
 1357  Florida program in compliance with the federal Patient
 1358  Protection and Affordable Care Act, upon giving notice to the
 1359  Senate and the House of Representatives of the proposed changes.
 1360  If there is a conflict between a provision in this section and
 1361  the federal Patient Protection and Affordable Care Act, Pub. L.
 1362  No. 111-148, as amended by the federal Health Care and Education
 1363  Reconciliation Act of 2010, Pub. L. No. 111-152, the provision
 1364  must be interpreted and applied so as to comply with the
 1365  requirement of the federal law.
 1366         Section 17. (1) The sum of $1,258,054,808 from the Medical
 1367  Care Trust Fund is appropriated to the Agency for Health Care
 1368  Administration beginning in the 2013-2014 fiscal year to provide
 1369  coverage for individuals who enroll in the Healthy Florida
 1370  Program.
 1371         (2) The sum of $254,151 from the General Revenue Fund and
 1372  $18,235,833 from the Medical Care Trust Fund is appropriated to
 1373  the Agency for Health Care Administration beginning in the 2013
 1374  2014 fiscal year to comply with federal regulations to
 1375  compensate insurers and managed care organizations that contract
 1376  with the Healthy Florida Program for the imposition of the
 1377  annual fee on health insurance providers under section 9010 of
 1378  the federal Patient Protection and Affordable Care Act, Pub. L.
 1379  No. 111-148, as amended by the federal Health Care and Education
 1380  Reconciliation Act of 2010, Pub. L. No. 111-152.
 1381         (3) The sum of $10,676,377 from the General Revenue Fund
 1382  and $10,676,377 from the Medical Care Trust Fund is appropriated
 1383  beginning in the 2013-2014 fiscal year to the Agency for Health
 1384  Care Administration to contract with the Florida Healthy Kids
 1385  Corporation under s. 409.818(2)(f), Florida Statutes, to fund
 1386  administrative costs necessary for implementing and operating
 1387  the Healthy Florida Program.
 1388         (4) The Agency for Health Care Administration may submit
 1389  budget amendments to the Legislative Budget Commission pursuant
 1390  to chapter 216, Florida Statutes, to fund the Healthy Florida
 1391  Program for the coverage of children who transfer from the
 1392  Florida Kidcare Program to the Healthy Florida Program, or to
 1393  provide additional spending authority from the Medical Care
 1394  Trust Fund under subsection (1) for the coverage of individuals
 1395  who enroll in the Healthy Florida Program, during the 2013-2014
 1396  fiscal year.
 1397         Section 18. This act shall take effect upon becoming a law.