Florida Senate - 2015             CONFERENCE COMMITTEE AMENDMENT
       Bill No. SB 2508-A
       
       
       
       
       
       
                                Ì145994VÎ145994                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: AD/CR          .            Floor: C            
             06/19/2015 03:47 PM       .      06/19/2015 06:28 PM       
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       The Conference Committee on SB 2508-A recommended the following:
       
    1         Senate Conference Committee Amendment (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Paragraph (e) of subsection (2) of section
    7  395.602, Florida Statutes, is amended to read:
    8         395.602 Rural hospitals.—
    9         (2) DEFINITIONS.—As used in this part, the term:
   10         (e) “Rural hospital” means an acute care hospital licensed
   11  under this chapter, having 100 or fewer licensed beds and an
   12  emergency room, which is:
   13         1. The sole provider within a county with a population
   14  density of up to 100 persons per square mile;
   15         2. An acute care hospital, in a county with a population
   16  density of up to 100 persons per square mile, which is at least
   17  30 minutes of travel time, on normally traveled roads under
   18  normal traffic conditions, from any other acute care hospital
   19  within the same county;
   20         3. A hospital supported by a tax district or subdistrict
   21  whose boundaries encompass a population of up to 100 persons per
   22  square mile;
   23         4. A hospital classified as a sole community hospital under
   24  42 C.F.R. s. 412.92 which has up to 340 licensed beds;
   25         4.5. A hospital with a service area that has a population
   26  of up to 100 persons per square mile. As used in this
   27  subparagraph, the term “service area” means the fewest number of
   28  zip codes that account for 75 percent of the hospital’s
   29  discharges for the most recent 5-year period, based on
   30  information available from the hospital inpatient discharge
   31  database in the Florida Center for Health Information and Policy
   32  Analysis at the agency; or
   33         5.6. A hospital designated as a critical access hospital,
   34  as defined in s. 408.07.
   35  
   36  Population densities used in this paragraph must be based upon
   37  the most recently completed United States census. A hospital
   38  that received funds under s. 409.9116 for a quarter beginning no
   39  later than July 1, 2002, is deemed to have been and shall
   40  continue to be a rural hospital from that date through June 30,
   41  2021 2015, if the hospital continues to have up to 100 licensed
   42  beds and an emergency room. An acute care hospital that has not
   43  previously been designated as a rural hospital and that meets
   44  the criteria of this paragraph shall be granted such designation
   45  upon application, including supporting documentation, to the
   46  agency. A hospital that was licensed as a rural hospital during
   47  the 2010-2011 or 2011-2012 fiscal year shall continue to be a
   48  rural hospital from the date of designation through June 30,
   49  2021 2015, if the hospital continues to have up to 100 licensed
   50  beds and an emergency room.
   51         Section 2.  Effective upon this act becoming a law,
   52  paragraphs (c) and (d) of subsection (1) of section 409.908,
   53  Florida Statutes, are redesignated as paragraphs (d) and (e),
   54  respectively, and new paragraphs (c) and (f) are added to that
   55  subsection, to read:
   56         409.908 Reimbursement of Medicaid providers.—Subject to
   57  specific appropriations, the agency shall reimburse Medicaid
   58  providers, in accordance with state and federal law, according
   59  to methodologies set forth in the rules of the agency and in
   60  policy manuals and handbooks incorporated by reference therein.
   61  These methodologies may include fee schedules, reimbursement
   62  methods based on cost reporting, negotiated fees, competitive
   63  bidding pursuant to s. 287.057, and other mechanisms the agency
   64  considers efficient and effective for purchasing services or
   65  goods on behalf of recipients. If a provider is reimbursed based
   66  on cost reporting and submits a cost report late and that cost
   67  report would have been used to set a lower reimbursement rate
   68  for a rate semester, then the provider’s rate for that semester
   69  shall be retroactively calculated using the new cost report, and
   70  full payment at the recalculated rate shall be effected
   71  retroactively. Medicare-granted extensions for filing cost
   72  reports, if applicable, shall also apply to Medicaid cost
   73  reports. Payment for Medicaid compensable services made on
   74  behalf of Medicaid eligible persons is subject to the
   75  availability of moneys and any limitations or directions
   76  provided for in the General Appropriations Act or chapter 216.
   77  Further, nothing in this section shall be construed to prevent
   78  or limit the agency from adjusting fees, reimbursement rates,
   79  lengths of stay, number of visits, or number of services, or
   80  making any other adjustments necessary to comply with the
   81  availability of moneys and any limitations or directions
   82  provided for in the General Appropriations Act, provided the
   83  adjustment is consistent with legislative intent.
   84         (1) Reimbursement to hospitals licensed under part I of
   85  chapter 395 must be made prospectively or on the basis of
   86  negotiation.
   87         (c) The agency may receive intergovernmental transfers of
   88  funds from governmental entities, including, but not limited to,
   89  the Department of Health, local governments, and other local
   90  political subdivisions, for the advancement of the Medicaid
   91  program and for enhancing or supplementing provider
   92  reimbursement under this part and part IV. The agency shall seek
   93  and maintain a low-income pool in a manner authorized by federal
   94  waiver and implemented under spending authority granted in the
   95  General Appropriations Act. The low-income pool must be used to
   96  support enhanced access to services by offsetting shortfalls in
   97  Medicaid reimbursement or paying for otherwise uncompensated
   98  care, and the agency shall seek waiver authority to encourage
   99  the donation of intergovernmental transfers and to utilize
  100  intergovernmental transfers as the state’s share of Medicaid
  101  funding within the low-income pool.
  102         (f)1.Pursuant to chapter 120, the agency shall furnish to
  103  providers written notice of the audited hospital cost-based per
  104  diem reimbursement rate for inpatient and outpatient care
  105  established by the agency. The written notice constitutes final
  106  agency action. A substantially affected provider seeking to
  107  correct or adjust the calculation of the audited hospital cost
  108  based per diem reimbursement rate for inpatient and outpatient
  109  care, other than a challenge to the methodologies set forth in
  110  the rules of the agency and in reimbursement plans incorporated
  111  by reference therein used to calculate the reimbursement rate
  112  for inpatient and outpatient care, may request an administrative
  113  hearing to challenge the final agency action by filing a
  114  petition with the agency within 180 days after receipt of the
  115  written notice by the provider. The petition must include all
  116  documentation supporting the challenge upon which the provider
  117  intends to rely at the administrative hearing and may not be
  118  amended or supplemented except as authorized under uniform rules
  119  adopted pursuant to s. 120.54(5). The failure to timely file a
  120  petition in compliance with this subparagraph is deemed
  121  conclusive acceptance of the audited hospital cost-based per
  122  diem reimbursement rate for inpatient and outpatient care
  123  established by the agency.
  124         2. Any challenge to the methodologies set forth in the
  125  rules of the agency and in reimbursement plans incorporated by
  126  reference therein used to calculate the reimbursement rate for
  127  inpatient and outpatient care may not result in a correction or
  128  an adjustment of a reimbursement rate for a rate period that
  129  occurred more than 5 years before the date the petition
  130  initiating the proceeding was filed.
  131         3.This paragraph applies to any challenge to final agency
  132  action which seeks the correction or adjustment of a provider’s
  133  audited hospital cost-based per diem reimbursement rate for
  134  inpatient and outpatient care and to any challenge to the
  135  methodologies set forth in the rules of the agency and in
  136  reimbursement plans incorporated by reference therein used to
  137  calculate the reimbursement rate for inpatient and outpatient
  138  care, including any right to challenge which arose before July
  139  1, 2015. A correction or adjustment of an audited hospital cost
  140  based per diem reimbursement rate for inpatient and outpatient
  141  care which is required by an administrative order or appellate
  142  decision:
  143         a. Must be reconciled in the first rate period after the
  144  order or decision becomes final;
  145         b. May not be the basis for any challenge to correct or
  146  adjust hospital rates required to be paid by any Medicaid
  147  managed care provider pursuant to part IV of chapter 409.
  148         4.The agency may not be compelled by an administrative
  149  body or a court to pay additional compensation to a hospital
  150  relating to the establishment of audited hospital cost-based per
  151  diem reimbursement rates by the agency or for remedies relating
  152  to such rates, unless an appropriation has been made by law for
  153  the exclusive, specific purpose of paying such additional
  154  compensation. As used in this subparagraph, the term
  155  “appropriation made by law” has the same meaning as provided in
  156  s. 11.066.
  157         5. Any period of time specified in this paragraph is not
  158  tolled by the pendency of any administrative or appellate
  159  proceeding.
  160         6. The exclusive means to challenge a written notice of an
  161  audited hospital cost-based per diem reimbursement rate for
  162  inpatient and outpatient care for the purpose of correcting or
  163  adjusting such rate before, on, or after July 1, 2015, or to
  164  challenge the methodologies set forth in the rules of the agency
  165  and in reimbursement plans incorporated by reference therein
  166  used to calculate the reimbursement rate for inpatient and
  167  outpatient care is through an administrative proceeding pursuant
  168  to chapter 120.
  169         Section 3. For the purpose of incorporating paragraph (f)
  170  of subsection (1) of section 409.908, Florida Statutes, as
  171  created by this act, in a reference thereto, section 383.18,
  172  Florida Statutes, is reenacted to read:
  173         383.18 Contracts; conditions.—Participation in the regional
  174  perinatal intensive care centers program under ss. 383.15-383.19
  175  is contingent upon the department entering into a contract with
  176  a provider. The contract shall provide that patients will
  177  receive services from the center and that parents or guardians
  178  of patients who participate in the program and who are in
  179  compliance with Medicaid eligibility requirements as determined
  180  by the department are not additionally charged for treatment and
  181  care which has been contracted for by the department. Financial
  182  eligibility for the program is based on the Medicaid income
  183  guidelines for pregnant women and for children under 1 year of
  184  age. Funding shall be provided in accordance with ss. 383.19 and
  185  409.908.
  186         Section 4. For the purpose of incorporating paragraph (f)
  187  of subsection (1) of section 409.908, Florida Statutes, as
  188  created by this act, in a reference thereto, subsection (4) of
  189  section 409.8132, Florida Statutes, is reenacted to read:
  190         409.8132 Medikids program component.—
  191         (4) APPLICABILITY OF LAWS RELATING TO MEDICAID.—The
  192  provisions of ss. 409.902, 409.905, 409.906, 409.907, 409.908,
  193  409.912, 409.9121, 409.9122, 409.9123, 409.9124, 409.9127,
  194  409.9128, 409.913, 409.916, 409.919, 409.920, and 409.9205 apply
  195  to the administration of the Medikids program component of the
  196  Florida Kidcare program, except that s. 409.9122 applies to
  197  Medikids as modified by the provisions of subsection (7).
  198         Section 5. For the purpose of incorporating paragraph (f)
  199  of subsection (1) of section 409.908, Florida Statutes, as
  200  created by this act, in references thereto, paragraph (c) of
  201  subsection (5) and paragraph (b) of subsection (6) of section
  202  409.905, Florida Statutes, are reenacted to read:
  203         409.905 Mandatory Medicaid services.—The agency may make
  204  payments for the following services, which are required of the
  205  state by Title XIX of the Social Security Act, furnished by
  206  Medicaid providers to recipients who are determined to be
  207  eligible on the dates on which the services were provided. Any
  208  service under this section shall be provided only when medically
  209  necessary and in accordance with state and federal law.
  210  Mandatory services rendered by providers in mobile units to
  211  Medicaid recipients may be restricted by the agency. Nothing in
  212  this section shall be construed to prevent or limit the agency
  213  from adjusting fees, reimbursement rates, lengths of stay,
  214  number of visits, number of services, or any other adjustments
  215  necessary to comply with the availability of moneys and any
  216  limitations or directions provided for in the General
  217  Appropriations Act or chapter 216.
  218         (5) HOSPITAL INPATIENT SERVICES.—The agency shall pay for
  219  all covered services provided for the medical care and treatment
  220  of a recipient who is admitted as an inpatient by a licensed
  221  physician or dentist to a hospital licensed under part I of
  222  chapter 395. However, the agency shall limit the payment for
  223  inpatient hospital services for a Medicaid recipient 21 years of
  224  age or older to 45 days or the number of days necessary to
  225  comply with the General Appropriations Act. Effective August 1,
  226  2012, the agency shall limit payment for hospital emergency
  227  department visits for a nonpregnant Medicaid recipient 21 years
  228  of age or older to six visits per fiscal year.
  229         (c) The agency shall implement a prospective payment
  230  methodology for establishing reimbursement rates for inpatient
  231  hospital services. Rates shall be calculated annually and take
  232  effect July 1 of each year. The methodology shall categorize
  233  each inpatient admission into a diagnosis-related group and
  234  assign a relative payment weight to the base rate according to
  235  the average relative amount of hospital resources used to treat
  236  a patient in a specific diagnosis-related group category. The
  237  agency may adopt the most recent relative weights calculated and
  238  made available by the Nationwide Inpatient Sample maintained by
  239  the Agency for Healthcare Research and Quality or may adopt
  240  alternative weights if the agency finds that Florida-specific
  241  weights deviate with statistical significance from national
  242  weights for high-volume diagnosis-related groups. The agency
  243  shall establish a single, uniform base rate for all hospitals
  244  unless specifically exempt pursuant to s. 409.908(1).
  245         1. Adjustments may not be made to the rates after October
  246  31 of the state fiscal year in which the rates take effect,
  247  except for cases of insufficient collections of
  248  intergovernmental transfers authorized under s. 409.908(1) or
  249  the General Appropriations Act. In such cases, the agency shall
  250  submit a budget amendment or amendments under chapter 216
  251  requesting approval of rate reductions by amounts necessary for
  252  the aggregate reduction to equal the dollar amount of
  253  intergovernmental transfers not collected and the corresponding
  254  federal match. Notwithstanding the $1 million limitation on
  255  increases to an approved operating budget contained in ss.
  256  216.181(11) and 216.292(3), a budget amendment exceeding that
  257  dollar amount is subject to notice and objection procedures set
  258  forth in s. 216.177.
  259         2. Errors in source data or calculations discovered after
  260  October 31 must be reconciled in a subsequent rate period.
  261  However, the agency may not make any adjustment to a hospital’s
  262  reimbursement more than 5 years after a hospital is notified of
  263  an audited rate established by the agency. The prohibition
  264  against adjustments more than 5 years after notification is
  265  remedial and applies to actions by providers involving Medicaid
  266  claims for hospital services. Hospital reimbursement is subject
  267  to such limits or ceilings as may be established in law or
  268  described in the agency’s hospital reimbursement plan. Specific
  269  exemptions to the limits or ceilings may be provided in the
  270  General Appropriations Act.
  271         (6) HOSPITAL OUTPATIENT SERVICES.—
  272         (b) The agency shall implement a methodology for
  273  establishing base reimbursement rates for outpatient services
  274  for each hospital based on allowable costs, as defined by the
  275  agency. Rates shall be calculated annually and take effect July
  276  1 of each year based on the most recent complete and accurate
  277  cost report submitted by each hospital.
  278         1. Adjustments may not be made to the rates after October
  279  31 of the state fiscal year in which the rates take effect,
  280  except for cases of insufficient collections of
  281  intergovernmental transfers authorized under s. 409.908(1) or
  282  the General Appropriations Act. In such cases, the agency shall
  283  submit a budget amendment or amendments under chapter 216
  284  requesting approval of rate reductions by amounts necessary for
  285  the aggregate reduction to equal the dollar amount of
  286  intergovernmental transfers not collected and the corresponding
  287  federal match. Notwithstanding the $1 million limitation on
  288  increases to an approved operating budget under ss. 216.181(11)
  289  and 216.292(3), a budget amendment exceeding that dollar amount
  290  is subject to notice and objection procedures set forth in s.
  291  216.177.
  292         2. Errors in source data or calculations discovered after
  293  October 31 must be reconciled in a subsequent rate period.
  294  However, the agency may not make any adjustment to a hospital’s
  295  reimbursement more than 5 years after a hospital is notified of
  296  an audited rate established by the agency. The prohibition
  297  against adjustments more than 5 years after notification is
  298  remedial and applies to actions by providers involving Medicaid
  299  claims for hospital services. Hospital reimbursement is subject
  300  to such limits or ceilings as may be established in law or
  301  described in the agency’s hospital reimbursement plan. Specific
  302  exemptions to the limits or ceilings may be provided in the
  303  General Appropriations Act.
  304         Section 6. Paragraph (c) of subsection (23) of section
  305  409.908, Florida Statutes, is amended to read:
  306         409.908 Reimbursement of Medicaid providers.—Subject to
  307  specific appropriations, the agency shall reimburse Medicaid
  308  providers, in accordance with state and federal law, according
  309  to methodologies set forth in the rules of the agency and in
  310  policy manuals and handbooks incorporated by reference therein.
  311  These methodologies may include fee schedules, reimbursement
  312  methods based on cost reporting, negotiated fees, competitive
  313  bidding pursuant to s. 287.057, and other mechanisms the agency
  314  considers efficient and effective for purchasing services or
  315  goods on behalf of recipients. If a provider is reimbursed based
  316  on cost reporting and submits a cost report late and that cost
  317  report would have been used to set a lower reimbursement rate
  318  for a rate semester, then the provider’s rate for that semester
  319  shall be retroactively calculated using the new cost report, and
  320  full payment at the recalculated rate shall be effected
  321  retroactively. Medicare-granted extensions for filing cost
  322  reports, if applicable, shall also apply to Medicaid cost
  323  reports. Payment for Medicaid compensable services made on
  324  behalf of Medicaid eligible persons is subject to the
  325  availability of moneys and any limitations or directions
  326  provided for in the General Appropriations Act or chapter 216.
  327  Further, nothing in this section shall be construed to prevent
  328  or limit the agency from adjusting fees, reimbursement rates,
  329  lengths of stay, number of visits, or number of services, or
  330  making any other adjustments necessary to comply with the
  331  availability of moneys and any limitations or directions
  332  provided for in the General Appropriations Act, provided the
  333  adjustment is consistent with legislative intent.
  334         (23)
  335         (c) This subsection applies to the following provider
  336  types:
  337         1. Inpatient hospitals.
  338         2. Outpatient hospitals.
  339         3. Nursing homes.
  340         4. County health departments.
  341         5. Community intermediate care facilities for the
  342  developmentally disabled.
  343         5.6. Prepaid health plans.
  344         Section 7. Subsection (2) of section 409.9082, Florida
  345  Statutes, is amended to read:
  346         409.9082 Quality assessment on nursing home facility
  347  providers; exemptions; purpose; federal approval required;
  348  remedies.—
  349         (2) A quality assessment is imposed upon each nursing home
  350  facility. The aggregated amount of assessments for all nursing
  351  home facilities in a given year shall be an amount not exceeding
  352  the maximum percentage allowed under federal law of the total
  353  aggregate net patient service revenue of assessed facilities.
  354  The agency shall calculate the quality assessment rate annually
  355  on a per-resident-day basis, exclusive of those resident days
  356  funded by the Medicare program, as reported by the facilities.
  357  The per-resident-day assessment rate must be uniform except as
  358  prescribed in subsection (3). Each facility shall report monthly
  359  to the agency its total number of resident days, exclusive of
  360  Medicare Part A resident days, and remit an amount equal to the
  361  assessment rate times the reported number of days. The agency
  362  shall collect, and each facility shall pay, the quality
  363  assessment each month. The agency shall collect the assessment
  364  from nursing home facility providers by the 20th 15th day of the
  365  next succeeding calendar month. The agency shall notify
  366  providers of the quality assessment and provide a standardized
  367  form to complete and submit with payments. The collection of the
  368  nursing home facility quality assessment shall commence no
  369  sooner than 5 days after the agency’s initial payment of the
  370  Medicaid rates containing the elements prescribed in subsection
  371  (4). Nursing home facilities may not create a separate line-item
  372  charge for the purpose of passing the assessment through to
  373  residents.
  374         Section 8. Section 409.909, Florida Statutes, is amended to
  375  read:
  376         409.909 Statewide Medicaid Residency Program.—
  377         (1) The Statewide Medicaid Residency Program is established
  378  to improve the quality of care and access to care for Medicaid
  379  recipients, expand graduate medical education on an equitable
  380  basis, and increase the supply of highly trained physicians
  381  statewide. The agency shall make payments to hospitals licensed
  382  under part I of chapter 395 for graduate medical education
  383  associated with the Medicaid program. This system of payments is
  384  designed to generate federal matching funds under Medicaid and
  385  distribute the resulting funds to participating hospitals on a
  386  quarterly basis in each fiscal year for which an appropriation
  387  is made.
  388         (2) On or before September 15 of each year, the agency
  389  shall calculate an allocation fraction to be used for
  390  distributing funds to participating hospitals. On or before the
  391  final business day of each quarter of a state fiscal year, the
  392  agency shall distribute to each participating hospital one
  393  fourth of that hospital’s annual allocation calculated under
  394  subsection (4). The allocation fraction for each participating
  395  hospital is based on the hospital’s number of full-time
  396  equivalent residents and the amount of its Medicaid payments. As
  397  used in this section, the term:
  398         (a) “Full-time equivalent,” or “FTE,” means a resident who
  399  is in his or her residency period, with the initial residency
  400  period, which is defined as the minimum number of years of
  401  training required before the resident may become eligible for
  402  board certification by the American Osteopathic Association
  403  Bureau of Osteopathic Specialists or the American Board of
  404  Medical Specialties in the specialty in which he or she first
  405  began training, not to exceed 5 years. The residency specialty
  406  is defined as reported using the current residency type codes in
  407  the Intern and Resident Information System (IRIS), required by
  408  Medicare. A resident training beyond the initial residency
  409  period is counted as 0.5 FTE, unless his or her chosen specialty
  410  is in general surgery or primary care, in which case the
  411  resident is counted as 1.0 FTE. For the purposes of this
  412  section, primary care specialties include:
  413         1. Family medicine;
  414         2. General internal medicine;
  415         3. General pediatrics;
  416         4. Preventive medicine;
  417         5. Geriatric medicine;
  418         6. Osteopathic general practice;
  419         7. Obstetrics and gynecology; and
  420         8. Emergency medicine; and
  421         9. General surgery.
  422         (b) “Medicaid payments” means the estimated total payments
  423  for reimbursing a hospital for direct inpatient services for the
  424  fiscal year in which the allocation fraction is calculated based
  425  on the hospital inpatient appropriation and the parameters for
  426  the inpatient diagnosis-related group base rate, including
  427  applicable intergovernmental transfers, specified in the General
  428  Appropriations Act, as determined by the agency.
  429         (c) “Resident” means a medical intern, fellow, or resident
  430  enrolled in a program accredited by the Accreditation Council
  431  for Graduate Medical Education, the American Association of
  432  Colleges of Osteopathic Medicine, or the American Osteopathic
  433  Association at the beginning of the state fiscal year during
  434  which the allocation fraction is calculated, as reported by the
  435  hospital to the agency.
  436         (3) The agency shall use the following formula to calculate
  437  a participating hospital’s allocation fraction:
  438  
  439             HAF=[0.9 x (HFTE/TFTE)] + [0.1 x (HMP/TMP)]           
  440  
  441         Where:
  442         HAF=A hospital’s allocation fraction.
  443         HFTE=A hospital’s total number of FTE residents.
  444         TFTE=The total FTE residents for all participating
  445  hospitals.
  446         HMP=A hospital’s Medicaid payments.
  447         TMP=The total Medicaid payments for all participating
  448  hospitals.
  449  
  450         (4) A hospital’s annual allocation shall be calculated by
  451  multiplying the funds appropriated for the Statewide Medicaid
  452  Residency Program in the General Appropriations Act by that
  453  hospital’s allocation fraction. If the calculation results in an
  454  annual allocation that exceeds two times the average $50,000 per
  455  FTE resident amount for all hospitals, the hospital’s annual
  456  allocation shall be reduced to a sum equaling no more than two
  457  times the average $50,000 per FTE resident. The funds calculated
  458  for that hospital in excess of two times the average $50,000 per
  459  FTE resident amount for all hospitals shall be redistributed to
  460  participating hospitals whose annual allocation does not exceed
  461  two times the average $50,000 per FTE resident amount for all
  462  hospitals, using the same methodology and payment schedule
  463  specified in this section.
  464         (5)The Graduate Medical Education Startup Bonus Program is
  465  established to provide resources for the education and training
  466  of physicians in specialties which are in a statewide supply
  467  and-demand deficit. Hospitals eligible for participation in
  468  subsection (1) are eligible to participate in the Graduate
  469  Medical Education Startup Bonus Program established under this
  470  subsection. Notwithstanding subsection (4) or an FTE’s residency
  471  period, and in any state fiscal year in which funds are
  472  appropriated for the startup bonus program, the agency shall
  473  allocate a $100,000 startup bonus for each newly created
  474  resident position that is authorized by the Accreditation
  475  Council for Graduate Medical Education or Osteopathic
  476  Postdoctoral Training Institution in an initial or established
  477  accredited training program that is in a physician specialty in
  478  statewide supply-and-demand deficit. In any year in which
  479  funding is not sufficient to provide $100,000 for each newly
  480  created resident position, funding shall be reduced pro rata
  481  across all newly created resident positions in physician
  482  specialties in statewide supply-and-demand deficit.
  483         (a)Hospitals applying for a startup bonus must submit to
  484  the agency by March 1 their Accreditation Council for Graduate
  485  Medical Education or Osteopathic Postdoctoral Training
  486  Institution approval validating the new resident positions
  487  approved in physician specialties in statewide supply-and-demand
  488  deficit in the current fiscal year. An applicant hospital may
  489  validate a change in the number of residents by comparing the
  490  number in the prior period Accreditation Council for Graduate
  491  Medical Education or Osteopathic Postdoctoral Training
  492  Institution approval to the number in the current year.
  493         (b)Any unobligated startup bonus funds on April 15 of each
  494  fiscal year shall be proportionally allocated to hospitals
  495  participating under subsection (3) for existing FTE residents in
  496  the physician specialties in statewide supply-and-demand
  497  deficit. This nonrecurring allocation shall be in addition to
  498  the funds allocated in subsection (4). Notwithstanding
  499  subsection (4), the allocation under this subsection may not
  500  exceed $100,000 per FTE resident.
  501         (c)For purposes of this subsection, physician specialties
  502  and subspecialties, both adult and pediatric, in statewide
  503  supply-and-demand deficit are those identified in the General
  504  Appropriations Act.
  505         (d)The agency shall distribute all funds authorized under
  506  the Graduate Medical Education Startup Bonus Program on or
  507  before the final business day of the fourth quarter of a state
  508  fiscal year.
  509         (6)(5) Beginning in the 2015-2016 state fiscal year, the
  510  agency shall reconcile each participating hospital’s total
  511  number of FTE residents calculated for the state fiscal year 2
  512  years before prior with its most recently available Medicare
  513  cost reports covering the same time period. Reconciled FTE
  514  counts shall be prorated according to the portion of the state
  515  fiscal year covered by a Medicare cost report. Using the same
  516  definitions, methodology, and payment schedule specified in this
  517  section, the reconciliation shall apply any differences in
  518  annual allocations calculated under subsection (4) to the
  519  current year’s annual allocations.
  520         (7)(6) The agency may adopt rules to administer this
  521  section.
  522         Section 9. Paragraph (a) of subsection (2) and paragraph
  523  (d) of subsection (4) of section 409.911, Florida Statutes, are
  524  amended to read:
  525         409.911 Disproportionate share program.—Subject to specific
  526  allocations established within the General Appropriations Act
  527  and any limitations established pursuant to chapter 216, the
  528  agency shall distribute, pursuant to this section, moneys to
  529  hospitals providing a disproportionate share of Medicaid or
  530  charity care services by making quarterly Medicaid payments as
  531  required. Notwithstanding the provisions of s. 409.915, counties
  532  are exempt from contributing toward the cost of this special
  533  reimbursement for hospitals serving a disproportionate share of
  534  low-income patients.
  535         (2) The Agency for Health Care Administration shall use the
  536  following actual audited data to determine the Medicaid days and
  537  charity care to be used in calculating the disproportionate
  538  share payment:
  539         (a) The average of the 2005, 2006, and 2007, 2008, and 2009
  540  audited disproportionate share data to determine each hospital’s
  541  Medicaid days and charity care for the 2015-2016 2014-2015 state
  542  fiscal year.
  543         (4) The following formulas shall be used to pay
  544  disproportionate share dollars to public hospitals:
  545         (d) Any nonstate government owned or operated hospital
  546  eligible for payments under this section on July 1, 2011,
  547  remains eligible for payments during the 2015-2016 2014-2015
  548  state fiscal year.
  549         Section 10. Paragraph (f) of subsection (3) and paragraph
  550  (c) of subsection (4) of section 409.967, Florida Statutes, are
  551  amended to read:
  552         409.967 Managed care plan accountability.—
  553         (3) ACHIEVED SAVINGS REBATE.—
  554         (f) Achieved savings rebates validated by the certified
  555  public accountant are due within 30 days after the report is
  556  submitted. Except as provided in paragraph (h), the achieved
  557  savings rebate is established by determining pretax income as a
  558  percentage of revenues and applying the following income sharing
  559  ratios:
  560         1. One hundred percent of income up to and including 5
  561  percent of revenue shall be retained by the plan.
  562         2. Fifty percent of income above 5 percent and up to 10
  563  percent shall be retained by the plan, and the other 50 percent
  564  refunded to the state and transferred to the General Revenue
  565  Fund, unallocated.
  566         3. One hundred percent of income above 10 percent of
  567  revenue shall be refunded to the state and transferred to the
  568  General Revenue Fund, unallocated.
  569         (4) MEDICAL LOSS RATIO.—If required as a condition of a
  570  waiver, the agency may calculate a medical loss ratio for
  571  managed care plans. The calculation shall use uniform financial
  572  data collected from all plans and shall be computed for each
  573  plan on a statewide basis. The method for calculating the
  574  medical loss ratio shall meet the following criteria:
  575         (c) Before Prior to final determination of the medical loss
  576  ratio for any period, a plan may contribute to a designated
  577  state trust fund for the purpose of supporting Medicaid and
  578  indigent care and have the contribution counted as a medical
  579  expenditure for the period. Funds contributed for this purpose
  580  shall be deposited into the Grants and Donations Trust Fund.
  581         Section 11. Section 409.97, Florida Statutes, is repealed.
  582         Section 12. Paragraph (a) of subsection (4) of section
  583  409.975, Florida Statutes, is amended to read:
  584         409.975 Managed care plan accountability.—In addition to
  585  the requirements of s. 409.967, plans and providers
  586  participating in the managed medical assistance program shall
  587  comply with the requirements of this section.
  588         (4) MOMCARE NETWORK.—
  589         (a) The agency shall contract with an administrative
  590  services organization representing all Healthy Start Coalitions
  591  providing risk appropriate care coordination and other services
  592  in accordance with a federal waiver and pursuant to s. 409.906.
  593  The contract shall require the network of coalitions to provide
  594  counseling, education, risk-reduction and case management
  595  services, and quality assurance for all enrollees of the waiver.
  596  The agency shall evaluate the impact of the MomCare network by
  597  monitoring each plan’s performance on specific measures to
  598  determine the adequacy, timeliness, and quality of services for
  599  pregnant women and infants. The agency shall support this
  600  contract with certified public expenditures of general revenue
  601  appropriated for Healthy Start services and any earned federal
  602  matching funds.
  603         Section 13. Subsection (6) of section 409.983, Florida
  604  Statutes, is amended to read:
  605         409.983 Long-term care managed care plan payment.—In
  606  addition to the payment provisions of s. 409.968, the agency
  607  shall provide payment to plans in the long-term care managed
  608  care program pursuant to this section.
  609         (6) The agency shall establish nursing-facility-specific
  610  payment rates for each licensed nursing home based on facility
  611  costs adjusted for inflation and other factors as authorized in
  612  the General Appropriations Act. Payments to long-term care
  613  managed care plans shall be reconciled to reimburse actual
  614  payments to nursing facilities resulting from changes in nursing
  615  home per diem rates, but may not be reconciled to actual days
  616  experienced by the long-term care managed care plans.
  617         Section 14. Effective upon this act becoming a law, the
  618  Agency for Health Care Administration may partner with any other
  619  state or territory for the purposes of providing Medicaid fiscal
  620  agent operations only if any resulting agreement or contract
  621  provides for termination when the State of Florida decides it is
  622  not in the best interest of the state. Any such agreement or
  623  contract may not impact Florida’s current Medicaid Management
  624  Information System and each state or territory shall deal
  625  directly with the federal Centers for Medicare and Medicaid
  626  Services independently regarding any billing or matching
  627  requirements.
  628         Section 15. Subsection (43) of section 408.07, Florida
  629  Statutes, is amended to read:
  630         408.07 Definitions.—As used in this chapter, with the
  631  exception of ss. 408.031-408.045, the term:
  632         (43) “Rural hospital” means an acute care hospital licensed
  633  under chapter 395, having 100 or fewer licensed beds and an
  634  emergency room, and which is:
  635         (a) The sole provider within a county with a population
  636  density of no greater than 100 persons per square mile;
  637         (b) An acute care hospital, in a county with a population
  638  density of no greater than 100 persons per square mile, which is
  639  at least 30 minutes of travel time, on normally traveled roads
  640  under normal traffic conditions, from another acute care
  641  hospital within the same county;
  642         (c) A hospital supported by a tax district or subdistrict
  643  whose boundaries encompass a population of 100 persons or fewer
  644  per square mile;
  645         (d) A hospital with a service area that has a population of
  646  100 persons or fewer per square mile. As used in this paragraph,
  647  the term “service area” means the fewest number of zip codes
  648  that account for 75 percent of the hospital’s discharges for the
  649  most recent 5-year period, based on information available from
  650  the hospital inpatient discharge database in the Florida Center
  651  for Health Information and Policy Analysis at the Agency for
  652  Health Care Administration; or
  653         (e) A critical access hospital.
  654  
  655  Population densities used in this subsection must be based upon
  656  the most recently completed United States census. A hospital
  657  that received funds under s. 409.9116 for a quarter beginning no
  658  later than July 1, 2002, is deemed to have been and shall
  659  continue to be a rural hospital from that date through June 30,
  660  2015, if the hospital continues to have 100 or fewer licensed
  661  beds and an emergency room, or meets the criteria of s.
  662  395.602(2)(e)4. An acute care hospital that has not previously
  663  been designated as a rural hospital and that meets the criteria
  664  of this subsection shall be granted such designation upon
  665  application, including supporting documentation, to the Agency
  666  for Health Care Administration.
  667         Section 16. The model, methodology, and framework for
  668  hospital funding programs contained in the document titled
  669  “Medicaid Hospital Funding Programs,” dated June 16, 2015, and
  670  filed with the Secretary of the Senate, are incorporated by
  671  reference for the purpose of displaying, demonstrating, and
  672  explaining the calculations used by the Legislature, consistent
  673  with the requirements of state law, when making appropriations
  674  in the General Appropriations Act for the 2015-2016 fiscal year
  675  for the Rural Hospital Financial Assistance Program, Hospital
  676  Inpatient Services, Hospital Outpatient Services, Low-Income
  677  Pool, the Disproportionate Share Hospital Program, Graduate
  678  Medical Education, and Prepaid Health Plans. The document titled
  679  “Medicaid Hospital Funding Programs” does not allocate or
  680  appropriate any funds. The Agency for Health Care Administration
  681  shall rely solely on the model, methodology, and framework
  682  displayed, demonstrated, and explained in the document titled
  683  “Medicaid Hospital Funding Programs” and the proviso applicable
  684  to appropriations for Medicaid funding when setting hospital
  685  rates, calculating the hospital components of prepaid health
  686  plan capitation rates, and making payments to hospitals and
  687  other providers. This section expires July 1, 2016.
  688         Section 17. The Legislature has determined that this act,
  689  including the document titled “Medicaid Hospital Funding
  690  Programs,” together with the specific appropriations contained
  691  in the fiscal year 2015-2016 General Appropriations Act for the
  692  Rural Hospital Financial Assistance Program, Hospital Inpatient
  693  Services, Hospital Outpatient Services, Low-Income Pool, the
  694  Disproportionate Share Hospital Program, Graduate Medical
  695  Education, and Prepaid Health Plans, are interdependent and
  696  interrelated, are directly and rationally related to the overall
  697  purposes of the state’s Medicaid program, and are advisable only
  698  if considered together and balanced when allocating the state’s
  699  resources, especially considering the complexities of Florida’s
  700  Statewide Medicaid Managed Care program; how hospital rates are
  701  determined in the marketplace, including Medicaid; how the
  702  individual component Medicaid appropriations impact the rates
  703  Florida’s Medicaid managed care entities pay for services; and
  704  the large amounts of uncompensated care provided by Florida’s
  705  Medicaid hospital service providers and the relative potential
  706  impact of that uncompensated care on the overall economic
  707  viability of those institutions. If this act, or any portion of
  708  this act, including the document titled “Medicaid Hospital
  709  Funding Programs,” or any portion thereof, is determined to be
  710  unconstitutional or the applicability thereof to any person or
  711  circumstance is held invalid, then: (1) such determination shall
  712  render all other provisions or applications of this act invalid;
  713  (2) the provisions of this act are not severable; and (3) this
  714  entire act shall be deemed never to have become law. This
  715  section expires July 1, 2016.
  716         Section 18. Section 409.908(1)(f), Florida Statutes, as
  717  created by this act, is remedial in nature, confirms and
  718  clarifies existing law, and applies to all proceedings pending
  719  on or commenced after this act takes effect.
  720         Section 19. If any law amended by this act was also amended
  721  by a law enacted during the 2015 Regular Session of the
  722  Legislature, such laws shall be construed as if enacted during
  723  the same session of the Legislature, and full effect shall be
  724  given to each if possible.
  725         Section 20. Except as otherwise expressly provided in this
  726  act and except for this section, which shall take effect upon
  727  this act becoming a law, this act shall take effect July 1,
  728  2015, or, if this act fails to become a law until after that
  729  date, it shall take effect upon becoming a law and operate
  730  retroactively to July 1, 2015.
  731  
  732  ================= T I T L E  A M E N D M E N T ================
  733  And the title is amended as follows:
  734         Delete everything before the enacting clause
  735  and insert:
  736                        A bill to be entitled                      
  737         An act relating to Medicaid; amending s. 395.602,
  738         F.S.; revising the term “rural hospital”; amending s.
  739         409.908, F.S.; authorizing the Agency for Health Care
  740         Administration to receive intergovernmental transfers
  741         of funds from governmental entities for specified
  742         purposes; requiring the agency to seek and maintain a
  743         low-income pool under certain parameters; requiring
  744         the agency to seek Medicaid waiver authority for the
  745         use of local intergovernmental transfers under certain
  746         parameters; requiring the Agency for Health Care
  747         Administration to provide written notice, pursuant to
  748         ch. 120, F.S., of reimbursement rates to providers;
  749         specifying procedures and requirements to challenge
  750         the calculation of or the methodology used to
  751         calculate such rates; providing that the failure to
  752         timely file a certain challenge constitutes acceptance
  753         of the rates; specifying limits on and procedures for
  754         the correction or adjustment of the rates; providing
  755         applicability; prohibiting the agency from being
  756         compelled by an administrative body or a court to pay
  757         additional compensation that exceeds a certain amount
  758         to a hospital for specified matters unless an
  759         appropriation is made by law; prohibiting certain
  760         periods of time from being tolled under specified
  761         circumstances; specifying that an administrative
  762         proceeding is the exclusive means for challenging
  763         certain issues; reenacting ss. 383.18, 409.8132(4),
  764         and 409.905(5)(c) and (6)(b), F.S., relating to
  765         contracts for the regional perinatal intensive care
  766         centers program, the Medikids program component, and
  767         mandatory Medicaid services, respectively, to
  768         incorporate the amendment made to s. 409.908, F.S., in
  769         references thereto; amending s. 409.908, F.S.;
  770         revising the list of provider types that are subject
  771         to certain statutory provisions relating to the
  772         establishment of rates; amending s. 409.9082, F.S.;
  773         revising the date in each calendar month on which the
  774         agency shall collect an assessment from nursing home
  775         facility providers; amending s. 409.909, F.S.;
  776         revising a term; revising the annual allocation cap
  777         for hospitals participating in the Statewide Medicaid
  778         Residency Program; establishing the Graduate Medical
  779         Education Startup Bonus Program; providing allocations
  780         for the program; amending s. 409.911, F.S.; updating
  781         references to data used for calculating
  782         disproportionate share program payments to certain
  783         hospitals for the 2015-2016 fiscal year; amending s.
  784         409.967, F.S.; requiring that certain achieved savings
  785         rebates be placed in the General Revenue Fund,
  786         unallocated; requiring that certain funds to support
  787         Medicaid and indigent care be deposited into the
  788         Grants and Donations Trust Fund; repealing s. 409.97,
  789         F.S, relating to state and local Medicaid
  790         partnerships; amending s. 409.975, F.S.; deleting a
  791         requirement that the agency support Healthy Start
  792         services with public expenditures and federal matching
  793         funds; amending s. 409.983, F.S.; providing parameters
  794         for the reconciliation of managed care plan payments
  795         in the long-term care managed care program;
  796         authorizing the agency to partner with other states or
  797         territories to provide Medicaid fiscal agent
  798         operations under certain conditions and limitations;
  799         amending s. 408.07, F.S.; conforming a cross
  800         reference; providing an incorporation by reference,
  801         the purposes and legislative intent of the
  802         incorporation, and for the expiration of the section;
  803         providing a legislative determination of the
  804         interdependence and interrelatedness of the act, the
  805         incorporation by reference and certain specific
  806         appropriations; providing that, if the act or any
  807         portion of the act is determined to be
  808         unconstitutional or held invalid, then all other
  809         provisions or applications of the act are invalid and
  810         not severable; providing for the expiration of the
  811         section; providing that the act is remedial, intended
  812         to confirm and clarify law, and applies to proceedings
  813         pending on or commenced after the effective date;
  814         providing for construction of the act in pari materia
  815         with laws enacted during the 2015 Regular Session of
  816         the Legislature; providing for contingent retroactive
  817         operation; providing effective dates.