ENROLLED
       2015 Legislature                        SB 2508-A, 1st Engrossed
       
       
       
       
       
       
                                                            20152508Aer
    1  
    2         An act relating to Medicaid; amending s. 395.602,
    3         F.S.; revising the term “rural hospital”; amending s.
    4         409.908, F.S.; authorizing the Agency for Health Care
    5         Administration to receive intergovernmental transfers
    6         of funds from governmental entities for specified
    7         purposes; requiring the agency to seek and maintain a
    8         low-income pool under certain parameters; requiring
    9         the agency to seek Medicaid waiver authority for the
   10         use of local intergovernmental transfers under certain
   11         parameters; requiring the Agency for Health Care
   12         Administration to provide written notice, pursuant to
   13         ch. 120, F.S., of reimbursement rates to providers;
   14         specifying procedures and requirements to challenge
   15         the calculation of or the methodology used to
   16         calculate such rates; providing that the failure to
   17         timely file a certain challenge constitutes acceptance
   18         of the rates; specifying limits on and procedures for
   19         the correction or adjustment of the rates; providing
   20         applicability; prohibiting the agency from being
   21         compelled by an administrative body or a court to pay
   22         additional compensation that exceeds a certain amount
   23         to a hospital for specified matters unless an
   24         appropriation is made by law; prohibiting certain
   25         periods of time from being tolled under specified
   26         circumstances; specifying that an administrative
   27         proceeding is the exclusive means for challenging
   28         certain issues; reenacting ss. 383.18, 409.8132(4),
   29         and 409.905(5)(c) and (6)(b), F.S., relating to
   30         contracts for the regional perinatal intensive care
   31         centers program, the Medikids program component, and
   32         mandatory Medicaid services, respectively, to
   33         incorporate the amendment made to s. 409.908, F.S., in
   34         references thereto; amending s. 409.908, F.S.;
   35         revising the list of provider types that are subject
   36         to certain statutory provisions relating to the
   37         establishment of rates; amending s. 409.9082, F.S.;
   38         revising the date in each calendar month on which the
   39         agency shall collect an assessment from nursing home
   40         facility providers; amending s. 409.909, F.S.;
   41         revising a term; revising the annual allocation cap
   42         for hospitals participating in the Statewide Medicaid
   43         Residency Program; establishing the Graduate Medical
   44         Education Startup Bonus Program; providing allocations
   45         for the program; amending s. 409.911, F.S.; updating
   46         references to data used for calculating
   47         disproportionate share program payments to certain
   48         hospitals for the 2015-2016 fiscal year; amending s.
   49         409.967, F.S.; requiring that certain achieved savings
   50         rebates be placed in the General Revenue Fund,
   51         unallocated; requiring that certain funds to support
   52         Medicaid and indigent care be deposited into the
   53         Grants and Donations Trust Fund; repealing s. 409.97,
   54         F.S., relating to state and local Medicaid
   55         partnerships; amending s. 409.975, F.S.; deleting a
   56         requirement that the agency support Healthy Start
   57         services with public expenditures and federal matching
   58         funds; amending s. 409.983, F.S.; providing parameters
   59         for the reconciliation of managed care plan payments
   60         in the long-term care managed care program;
   61         authorizing the agency to partner with other states or
   62         territories to provide Medicaid fiscal agent
   63         operations under certain conditions and limitations;
   64         amending s. 408.07, F.S.; conforming a cross
   65         reference; providing an incorporation by reference,
   66         the purposes and legislative intent of the
   67         incorporation, and for the expiration of the section;
   68         providing a legislative determination of the
   69         interdependence and interrelatedness of the act, the
   70         incorporation by reference and certain specific
   71         appropriations; providing that, if the act or any
   72         portion of the act is determined to be
   73         unconstitutional or held invalid, then all other
   74         provisions or applications of the act are invalid and
   75         not severable; providing for the expiration of the
   76         section; providing that the act is remedial, intended
   77         to confirm and clarify law, and applies to proceedings
   78         pending on or commenced after the effective date;
   79         providing for construction of the act in pari materia
   80         with laws enacted during the 2015 Regular Session of
   81         the Legislature; providing for contingent retroactive
   82         operation; providing effective dates.
   83          
   84  Be It Enacted by the Legislature of the State of Florida:
   85  
   86         Section 1. Paragraph (e) of subsection (2) of section
   87  395.602, Florida Statutes, is amended to read:
   88         395.602 Rural hospitals.—
   89         (2) DEFINITIONS.—As used in this part, the term:
   90         (e) “Rural hospital” means an acute care hospital licensed
   91  under this chapter, having 100 or fewer licensed beds and an
   92  emergency room, which is:
   93         1. The sole provider within a county with a population
   94  density of up to 100 persons per square mile;
   95         2. An acute care hospital, in a county with a population
   96  density of up to 100 persons per square mile, which is at least
   97  30 minutes of travel time, on normally traveled roads under
   98  normal traffic conditions, from any other acute care hospital
   99  within the same county;
  100         3. A hospital supported by a tax district or subdistrict
  101  whose boundaries encompass a population of up to 100 persons per
  102  square mile;
  103         4. A hospital classified as a sole community hospital under
  104  42 C.F.R. s. 412.92 which has up to 340 licensed beds;
  105         4.5. A hospital with a service area that has a population
  106  of up to 100 persons per square mile. As used in this
  107  subparagraph, the term “service area” means the fewest number of
  108  zip codes that account for 75 percent of the hospital’s
  109  discharges for the most recent 5-year period, based on
  110  information available from the hospital inpatient discharge
  111  database in the Florida Center for Health Information and Policy
  112  Analysis at the agency; or
  113         5.6. A hospital designated as a critical access hospital,
  114  as defined in s. 408.07.
  115  
  116  Population densities used in this paragraph must be based upon
  117  the most recently completed United States census. A hospital
  118  that received funds under s. 409.9116 for a quarter beginning no
  119  later than July 1, 2002, is deemed to have been and shall
  120  continue to be a rural hospital from that date through June 30,
  121  2021 2015, if the hospital continues to have up to 100 licensed
  122  beds and an emergency room. An acute care hospital that has not
  123  previously been designated as a rural hospital and that meets
  124  the criteria of this paragraph shall be granted such designation
  125  upon application, including supporting documentation, to the
  126  agency. A hospital that was licensed as a rural hospital during
  127  the 2010-2011 or 2011-2012 fiscal year shall continue to be a
  128  rural hospital from the date of designation through June 30,
  129  2021 2015, if the hospital continues to have up to 100 licensed
  130  beds and an emergency room.
  131         Section 2.  Effective upon this act becoming a law,
  132  paragraphs (c) and (d) of subsection (1) of section 409.908,
  133  Florida Statutes, are redesignated as paragraphs (d) and (e),
  134  respectively, and new paragraphs (c) and (f) are added to that
  135  subsection, to read:
  136         409.908 Reimbursement of Medicaid providers.—Subject to
  137  specific appropriations, the agency shall reimburse Medicaid
  138  providers, in accordance with state and federal law, according
  139  to methodologies set forth in the rules of the agency and in
  140  policy manuals and handbooks incorporated by reference therein.
  141  These methodologies may include fee schedules, reimbursement
  142  methods based on cost reporting, negotiated fees, competitive
  143  bidding pursuant to s. 287.057, and other mechanisms the agency
  144  considers efficient and effective for purchasing services or
  145  goods on behalf of recipients. If a provider is reimbursed based
  146  on cost reporting and submits a cost report late and that cost
  147  report would have been used to set a lower reimbursement rate
  148  for a rate semester, then the provider’s rate for that semester
  149  shall be retroactively calculated using the new cost report, and
  150  full payment at the recalculated rate shall be effected
  151  retroactively. Medicare-granted extensions for filing cost
  152  reports, if applicable, shall also apply to Medicaid cost
  153  reports. Payment for Medicaid compensable services made on
  154  behalf of Medicaid eligible persons is subject to the
  155  availability of moneys and any limitations or directions
  156  provided for in the General Appropriations Act or chapter 216.
  157  Further, nothing in this section shall be construed to prevent
  158  or limit the agency from adjusting fees, reimbursement rates,
  159  lengths of stay, number of visits, or number of services, or
  160  making any other adjustments necessary to comply with the
  161  availability of moneys and any limitations or directions
  162  provided for in the General Appropriations Act, provided the
  163  adjustment is consistent with legislative intent.
  164         (1) Reimbursement to hospitals licensed under part I of
  165  chapter 395 must be made prospectively or on the basis of
  166  negotiation.
  167         (c) The agency may receive intergovernmental transfers of
  168  funds from governmental entities, including, but not limited to,
  169  the Department of Health, local governments, and other local
  170  political subdivisions, for the advancement of the Medicaid
  171  program and for enhancing or supplementing provider
  172  reimbursement under this part and part IV. The agency shall seek
  173  and maintain a low-income pool in a manner authorized by federal
  174  waiver and implemented under spending authority granted in the
  175  General Appropriations Act. The low-income pool must be used to
  176  support enhanced access to services by offsetting shortfalls in
  177  Medicaid reimbursement or paying for otherwise uncompensated
  178  care, and the agency shall seek waiver authority to encourage
  179  the donation of intergovernmental transfers and to utilize
  180  intergovernmental transfers as the state’s share of Medicaid
  181  funding within the low-income pool.
  182         (f)1.Pursuant to chapter 120, the agency shall furnish to
  183  providers written notice of the audited hospital cost-based per
  184  diem reimbursement rate for inpatient and outpatient care
  185  established by the agency. The written notice constitutes final
  186  agency action. A substantially affected provider seeking to
  187  correct or adjust the calculation of the audited hospital cost
  188  based per diem reimbursement rate for inpatient and outpatient
  189  care, other than a challenge to the methodologies set forth in
  190  the rules of the agency and in reimbursement plans incorporated
  191  by reference therein used to calculate the reimbursement rate
  192  for inpatient and outpatient care, may request an administrative
  193  hearing to challenge the final agency action by filing a
  194  petition with the agency within 180 days after receipt of the
  195  written notice by the provider. The petition must include all
  196  documentation supporting the challenge upon which the provider
  197  intends to rely at the administrative hearing and may not be
  198  amended or supplemented except as authorized under uniform rules
  199  adopted pursuant to s. 120.54(5). The failure to timely file a
  200  petition in compliance with this subparagraph is deemed
  201  conclusive acceptance of the audited hospital cost-based per
  202  diem reimbursement rate for inpatient and outpatient care
  203  established by the agency.
  204         2. Any challenge to the methodologies set forth in the
  205  rules of the agency and in reimbursement plans incorporated by
  206  reference therein used to calculate the reimbursement rate for
  207  inpatient and outpatient care may not result in a correction or
  208  an adjustment of a reimbursement rate for a rate period that
  209  occurred more than 5 years before the date the petition
  210  initiating the proceeding was filed.
  211         3.This paragraph applies to any challenge to final agency
  212  action which seeks the correction or adjustment of a provider’s
  213  audited hospital cost-based per diem reimbursement rate for
  214  inpatient and outpatient care and to any challenge to the
  215  methodologies set forth in the rules of the agency and in
  216  reimbursement plans incorporated by reference therein used to
  217  calculate the reimbursement rate for inpatient and outpatient
  218  care, including any right to challenge which arose before July
  219  1, 2015. A correction or adjustment of an audited hospital cost
  220  based per diem reimbursement rate for inpatient and outpatient
  221  care which is required by an administrative order or appellate
  222  decision:
  223         a. Must be reconciled in the first rate period after the
  224  order or decision becomes final;
  225         b. May not be the basis for any challenge to correct or
  226  adjust hospital rates required to be paid by any Medicaid
  227  managed care provider pursuant to part IV of chapter 409.
  228         4.The agency may not be compelled by an administrative
  229  body or a court to pay additional compensation to a hospital
  230  relating to the establishment of audited hospital cost-based per
  231  diem reimbursement rates by the agency or for remedies relating
  232  to such rates, unless an appropriation has been made by law for
  233  the exclusive, specific purpose of paying such additional
  234  compensation. As used in this subparagraph, the term
  235  “appropriation made by law” has the same meaning as provided in
  236  s. 11.066.
  237         5. Any period of time specified in this paragraph is not
  238  tolled by the pendency of any administrative or appellate
  239  proceeding.
  240         6. The exclusive means to challenge a written notice of an
  241  audited hospital cost-based per diem reimbursement rate for
  242  inpatient and outpatient care for the purpose of correcting or
  243  adjusting such rate before, on, or after July 1, 2015, or to
  244  challenge the methodologies set forth in the rules of the agency
  245  and in reimbursement plans incorporated by reference therein
  246  used to calculate the reimbursement rate for inpatient and
  247  outpatient care is through an administrative proceeding pursuant
  248  to chapter 120.
  249         Section 3. For the purpose of incorporating paragraph (f)
  250  of subsection (1) of section 409.908, Florida Statutes, as
  251  created by this act, in a reference thereto, section 383.18,
  252  Florida Statutes, is reenacted to read:
  253         383.18 Contracts; conditions.—Participation in the regional
  254  perinatal intensive care centers program under ss. 383.15-383.19
  255  is contingent upon the department entering into a contract with
  256  a provider. The contract shall provide that patients will
  257  receive services from the center and that parents or guardians
  258  of patients who participate in the program and who are in
  259  compliance with Medicaid eligibility requirements as determined
  260  by the department are not additionally charged for treatment and
  261  care which has been contracted for by the department. Financial
  262  eligibility for the program is based on the Medicaid income
  263  guidelines for pregnant women and for children under 1 year of
  264  age. Funding shall be provided in accordance with ss. 383.19 and
  265  409.908.
  266         Section 4. For the purpose of incorporating paragraph (f)
  267  of subsection (1) of section 409.908, Florida Statutes, as
  268  created by this act, in a reference thereto, subsection (4) of
  269  section 409.8132, Florida Statutes, is reenacted to read:
  270         409.8132 Medikids program component.—
  271         (4) APPLICABILITY OF LAWS RELATING TO MEDICAID.—The
  272  provisions of ss. 409.902, 409.905, 409.906, 409.907, 409.908,
  273  409.912, 409.9121, 409.9122, 409.9123, 409.9124, 409.9127,
  274  409.9128, 409.913, 409.916, 409.919, 409.920, and 409.9205 apply
  275  to the administration of the Medikids program component of the
  276  Florida Kidcare program, except that s. 409.9122 applies to
  277  Medikids as modified by the provisions of subsection (7).
  278         Section 5. For the purpose of incorporating paragraph (f)
  279  of subsection (1) of section 409.908, Florida Statutes, as
  280  created by this act, in references thereto, paragraph (c) of
  281  subsection (5) and paragraph (b) of subsection (6) of section
  282  409.905, Florida Statutes, are reenacted to read:
  283         409.905 Mandatory Medicaid services.—The agency may make
  284  payments for the following services, which are required of the
  285  state by Title XIX of the Social Security Act, furnished by
  286  Medicaid providers to recipients who are determined to be
  287  eligible on the dates on which the services were provided. Any
  288  service under this section shall be provided only when medically
  289  necessary and in accordance with state and federal law.
  290  Mandatory services rendered by providers in mobile units to
  291  Medicaid recipients may be restricted by the agency. Nothing in
  292  this section shall be construed to prevent or limit the agency
  293  from adjusting fees, reimbursement rates, lengths of stay,
  294  number of visits, number of services, or any other adjustments
  295  necessary to comply with the availability of moneys and any
  296  limitations or directions provided for in the General
  297  Appropriations Act or chapter 216.
  298         (5) HOSPITAL INPATIENT SERVICES.—The agency shall pay for
  299  all covered services provided for the medical care and treatment
  300  of a recipient who is admitted as an inpatient by a licensed
  301  physician or dentist to a hospital licensed under part I of
  302  chapter 395. However, the agency shall limit the payment for
  303  inpatient hospital services for a Medicaid recipient 21 years of
  304  age or older to 45 days or the number of days necessary to
  305  comply with the General Appropriations Act. Effective August 1,
  306  2012, the agency shall limit payment for hospital emergency
  307  department visits for a nonpregnant Medicaid recipient 21 years
  308  of age or older to six visits per fiscal year.
  309         (c) The agency shall implement a prospective payment
  310  methodology for establishing reimbursement rates for inpatient
  311  hospital services. Rates shall be calculated annually and take
  312  effect July 1 of each year. The methodology shall categorize
  313  each inpatient admission into a diagnosis-related group and
  314  assign a relative payment weight to the base rate according to
  315  the average relative amount of hospital resources used to treat
  316  a patient in a specific diagnosis-related group category. The
  317  agency may adopt the most recent relative weights calculated and
  318  made available by the Nationwide Inpatient Sample maintained by
  319  the Agency for Healthcare Research and Quality or may adopt
  320  alternative weights if the agency finds that Florida-specific
  321  weights deviate with statistical significance from national
  322  weights for high-volume diagnosis-related groups. The agency
  323  shall establish a single, uniform base rate for all hospitals
  324  unless specifically exempt pursuant to s. 409.908(1).
  325         1. Adjustments may not be made to the rates after October
  326  31 of the state fiscal year in which the rates take effect,
  327  except for cases of insufficient collections of
  328  intergovernmental transfers authorized under s. 409.908(1) or
  329  the General Appropriations Act. In such cases, the agency shall
  330  submit a budget amendment or amendments under chapter 216
  331  requesting approval of rate reductions by amounts necessary for
  332  the aggregate reduction to equal the dollar amount of
  333  intergovernmental transfers not collected and the corresponding
  334  federal match. Notwithstanding the $1 million limitation on
  335  increases to an approved operating budget contained in ss.
  336  216.181(11) and 216.292(3), a budget amendment exceeding that
  337  dollar amount is subject to notice and objection procedures set
  338  forth in s. 216.177.
  339         2. Errors in source data or calculations discovered after
  340  October 31 must be reconciled in a subsequent rate period.
  341  However, the agency may not make any adjustment to a hospital’s
  342  reimbursement more than 5 years after a hospital is notified of
  343  an audited rate established by the agency. The prohibition
  344  against adjustments more than 5 years after notification is
  345  remedial and applies to actions by providers involving Medicaid
  346  claims for hospital services. Hospital reimbursement is subject
  347  to such limits or ceilings as may be established in law or
  348  described in the agency’s hospital reimbursement plan. Specific
  349  exemptions to the limits or ceilings may be provided in the
  350  General Appropriations Act.
  351         (6) HOSPITAL OUTPATIENT SERVICES.—
  352         (b) The agency shall implement a methodology for
  353  establishing base reimbursement rates for outpatient services
  354  for each hospital based on allowable costs, as defined by the
  355  agency. Rates shall be calculated annually and take effect July
  356  1 of each year based on the most recent complete and accurate
  357  cost report submitted by each hospital.
  358         1. Adjustments may not be made to the rates after October
  359  31 of the state fiscal year in which the rates take effect,
  360  except for cases of insufficient collections of
  361  intergovernmental transfers authorized under s. 409.908(1) or
  362  the General Appropriations Act. In such cases, the agency shall
  363  submit a budget amendment or amendments under chapter 216
  364  requesting approval of rate reductions by amounts necessary for
  365  the aggregate reduction to equal the dollar amount of
  366  intergovernmental transfers not collected and the corresponding
  367  federal match. Notwithstanding the $1 million limitation on
  368  increases to an approved operating budget under ss. 216.181(11)
  369  and 216.292(3), a budget amendment exceeding that dollar amount
  370  is subject to notice and objection procedures set forth in s.
  371  216.177.
  372         2. Errors in source data or calculations discovered after
  373  October 31 must be reconciled in a subsequent rate period.
  374  However, the agency may not make any adjustment to a hospital’s
  375  reimbursement more than 5 years after a hospital is notified of
  376  an audited rate established by the agency. The prohibition
  377  against adjustments more than 5 years after notification is
  378  remedial and applies to actions by providers involving Medicaid
  379  claims for hospital services. Hospital reimbursement is subject
  380  to such limits or ceilings as may be established in law or
  381  described in the agency’s hospital reimbursement plan. Specific
  382  exemptions to the limits or ceilings may be provided in the
  383  General Appropriations Act.
  384         Section 6. Paragraph (c) of subsection (23) of section
  385  409.908, Florida Statutes, is amended to read:
  386         409.908 Reimbursement of Medicaid providers.—Subject to
  387  specific appropriations, the agency shall reimburse Medicaid
  388  providers, in accordance with state and federal law, according
  389  to methodologies set forth in the rules of the agency and in
  390  policy manuals and handbooks incorporated by reference therein.
  391  These methodologies may include fee schedules, reimbursement
  392  methods based on cost reporting, negotiated fees, competitive
  393  bidding pursuant to s. 287.057, and other mechanisms the agency
  394  considers efficient and effective for purchasing services or
  395  goods on behalf of recipients. If a provider is reimbursed based
  396  on cost reporting and submits a cost report late and that cost
  397  report would have been used to set a lower reimbursement rate
  398  for a rate semester, then the provider’s rate for that semester
  399  shall be retroactively calculated using the new cost report, and
  400  full payment at the recalculated rate shall be effected
  401  retroactively. Medicare-granted extensions for filing cost
  402  reports, if applicable, shall also apply to Medicaid cost
  403  reports. Payment for Medicaid compensable services made on
  404  behalf of Medicaid eligible persons is subject to the
  405  availability of moneys and any limitations or directions
  406  provided for in the General Appropriations Act or chapter 216.
  407  Further, nothing in this section shall be construed to prevent
  408  or limit the agency from adjusting fees, reimbursement rates,
  409  lengths of stay, number of visits, or number of services, or
  410  making any other adjustments necessary to comply with the
  411  availability of moneys and any limitations or directions
  412  provided for in the General Appropriations Act, provided the
  413  adjustment is consistent with legislative intent.
  414         (23)
  415         (c) This subsection applies to the following provider
  416  types:
  417         1. Inpatient hospitals.
  418         2. Outpatient hospitals.
  419         3. Nursing homes.
  420         4. County health departments.
  421         5. Community intermediate care facilities for the
  422  developmentally disabled.
  423         5.6. Prepaid health plans.
  424         Section 7. Subsection (2) of section 409.9082, Florida
  425  Statutes, is amended to read:
  426         409.9082 Quality assessment on nursing home facility
  427  providers; exemptions; purpose; federal approval required;
  428  remedies.—
  429         (2) A quality assessment is imposed upon each nursing home
  430  facility. The aggregated amount of assessments for all nursing
  431  home facilities in a given year shall be an amount not exceeding
  432  the maximum percentage allowed under federal law of the total
  433  aggregate net patient service revenue of assessed facilities.
  434  The agency shall calculate the quality assessment rate annually
  435  on a per-resident-day basis, exclusive of those resident days
  436  funded by the Medicare program, as reported by the facilities.
  437  The per-resident-day assessment rate must be uniform except as
  438  prescribed in subsection (3). Each facility shall report monthly
  439  to the agency its total number of resident days, exclusive of
  440  Medicare Part A resident days, and remit an amount equal to the
  441  assessment rate times the reported number of days. The agency
  442  shall collect, and each facility shall pay, the quality
  443  assessment each month. The agency shall collect the assessment
  444  from nursing home facility providers by the 20th 15th day of the
  445  next succeeding calendar month. The agency shall notify
  446  providers of the quality assessment and provide a standardized
  447  form to complete and submit with payments. The collection of the
  448  nursing home facility quality assessment shall commence no
  449  sooner than 5 days after the agency’s initial payment of the
  450  Medicaid rates containing the elements prescribed in subsection
  451  (4). Nursing home facilities may not create a separate line-item
  452  charge for the purpose of passing the assessment through to
  453  residents.
  454         Section 8. Section 409.909, Florida Statutes, is amended to
  455  read:
  456         409.909 Statewide Medicaid Residency Program.—
  457         (1) The Statewide Medicaid Residency Program is established
  458  to improve the quality of care and access to care for Medicaid
  459  recipients, expand graduate medical education on an equitable
  460  basis, and increase the supply of highly trained physicians
  461  statewide. The agency shall make payments to hospitals licensed
  462  under part I of chapter 395 for graduate medical education
  463  associated with the Medicaid program. This system of payments is
  464  designed to generate federal matching funds under Medicaid and
  465  distribute the resulting funds to participating hospitals on a
  466  quarterly basis in each fiscal year for which an appropriation
  467  is made.
  468         (2) On or before September 15 of each year, the agency
  469  shall calculate an allocation fraction to be used for
  470  distributing funds to participating hospitals. On or before the
  471  final business day of each quarter of a state fiscal year, the
  472  agency shall distribute to each participating hospital one
  473  fourth of that hospital’s annual allocation calculated under
  474  subsection (4). The allocation fraction for each participating
  475  hospital is based on the hospital’s number of full-time
  476  equivalent residents and the amount of its Medicaid payments. As
  477  used in this section, the term:
  478         (a) “Full-time equivalent,” or “FTE,” means a resident who
  479  is in his or her residency period, with the initial residency
  480  period, which is defined as the minimum number of years of
  481  training required before the resident may become eligible for
  482  board certification by the American Osteopathic Association
  483  Bureau of Osteopathic Specialists or the American Board of
  484  Medical Specialties in the specialty in which he or she first
  485  began training, not to exceed 5 years. The residency specialty
  486  is defined as reported using the current residency type codes in
  487  the Intern and Resident Information System (IRIS), required by
  488  Medicare. A resident training beyond the initial residency
  489  period is counted as 0.5 FTE, unless his or her chosen specialty
  490  is in general surgery or primary care, in which case the
  491  resident is counted as 1.0 FTE. For the purposes of this
  492  section, primary care specialties include:
  493         1. Family medicine;
  494         2. General internal medicine;
  495         3. General pediatrics;
  496         4. Preventive medicine;
  497         5. Geriatric medicine;
  498         6. Osteopathic general practice;
  499         7. Obstetrics and gynecology; and
  500         8. Emergency medicine; and
  501         9. General surgery.
  502         (b) “Medicaid payments” means the estimated total payments
  503  for reimbursing a hospital for direct inpatient services for the
  504  fiscal year in which the allocation fraction is calculated based
  505  on the hospital inpatient appropriation and the parameters for
  506  the inpatient diagnosis-related group base rate, including
  507  applicable intergovernmental transfers, specified in the General
  508  Appropriations Act, as determined by the agency.
  509         (c) “Resident” means a medical intern, fellow, or resident
  510  enrolled in a program accredited by the Accreditation Council
  511  for Graduate Medical Education, the American Association of
  512  Colleges of Osteopathic Medicine, or the American Osteopathic
  513  Association at the beginning of the state fiscal year during
  514  which the allocation fraction is calculated, as reported by the
  515  hospital to the agency.
  516         (3) The agency shall use the following formula to calculate
  517  a participating hospital’s allocation fraction:
  518  
  519             HAF=[0.9 x (HFTE/TFTE)] + [0.1 x (HMP/TMP)]           
  520  
  521         Where:
  522         HAF=A hospital’s allocation fraction.
  523         HFTE=A hospital’s total number of FTE residents.
  524         TFTE=The total FTE residents for all participating
  525  hospitals.
  526         HMP=A hospital’s Medicaid payments.
  527         TMP=The total Medicaid payments for all participating
  528  hospitals.
  529  
  530         (4) A hospital’s annual allocation shall be calculated by
  531  multiplying the funds appropriated for the Statewide Medicaid
  532  Residency Program in the General Appropriations Act by that
  533  hospital’s allocation fraction. If the calculation results in an
  534  annual allocation that exceeds two times the average $50,000 per
  535  FTE resident amount for all hospitals, the hospital’s annual
  536  allocation shall be reduced to a sum equaling no more than two
  537  times the average $50,000 per FTE resident. The funds calculated
  538  for that hospital in excess of two times the average $50,000 per
  539  FTE resident amount for all hospitals shall be redistributed to
  540  participating hospitals whose annual allocation does not exceed
  541  two times the average $50,000 per FTE resident amount for all
  542  hospitals, using the same methodology and payment schedule
  543  specified in this section.
  544         (5)The Graduate Medical Education Startup Bonus Program is
  545  established to provide resources for the education and training
  546  of physicians in specialties which are in a statewide supply
  547  and-demand deficit. Hospitals eligible for participation in
  548  subsection (1) are eligible to participate in the Graduate
  549  Medical Education Startup Bonus Program established under this
  550  subsection. Notwithstanding subsection (4) or an FTE’s residency
  551  period, and in any state fiscal year in which funds are
  552  appropriated for the startup bonus program, the agency shall
  553  allocate a $100,000 startup bonus for each newly created
  554  resident position that is authorized by the Accreditation
  555  Council for Graduate Medical Education or Osteopathic
  556  Postdoctoral Training Institution in an initial or established
  557  accredited training program that is in a physician specialty in
  558  statewide supply-and-demand deficit. In any year in which
  559  funding is not sufficient to provide $100,000 for each newly
  560  created resident position, funding shall be reduced pro rata
  561  across all newly created resident positions in physician
  562  specialties in statewide supply-and-demand deficit.
  563         (a)Hospitals applying for a startup bonus must submit to
  564  the agency by March 1 their Accreditation Council for Graduate
  565  Medical Education or Osteopathic Postdoctoral Training
  566  Institution approval validating the new resident positions
  567  approved in physician specialties in statewide supply-and-demand
  568  deficit in the current fiscal year. An applicant hospital may
  569  validate a change in the number of residents by comparing the
  570  number in the prior period Accreditation Council for Graduate
  571  Medical Education or Osteopathic Postdoctoral Training
  572  Institution approval to the number in the current year.
  573         (b)Any unobligated startup bonus funds on April 15 of each
  574  fiscal year shall be proportionally allocated to hospitals
  575  participating under subsection (3) for existing FTE residents in
  576  the physician specialties in statewide supply-and-demand
  577  deficit. This nonrecurring allocation shall be in addition to
  578  the funds allocated in subsection (4). Notwithstanding
  579  subsection (4), the allocation under this subsection may not
  580  exceed $100,000 per FTE resident.
  581         (c)For purposes of this subsection, physician specialties
  582  and subspecialties, both adult and pediatric, in statewide
  583  supply-and-demand deficit are those identified in the General
  584  Appropriations Act.
  585         (d)The agency shall distribute all funds authorized under
  586  the Graduate Medical Education Startup Bonus Program on or
  587  before the final business day of the fourth quarter of a state
  588  fiscal year.
  589         (6)(5) Beginning in the 2015-2016 state fiscal year, the
  590  agency shall reconcile each participating hospital’s total
  591  number of FTE residents calculated for the state fiscal year 2
  592  years before prior with its most recently available Medicare
  593  cost reports covering the same time period. Reconciled FTE
  594  counts shall be prorated according to the portion of the state
  595  fiscal year covered by a Medicare cost report. Using the same
  596  definitions, methodology, and payment schedule specified in this
  597  section, the reconciliation shall apply any differences in
  598  annual allocations calculated under subsection (4) to the
  599  current year’s annual allocations.
  600         (7)(6) The agency may adopt rules to administer this
  601  section.
  602         Section 9. Paragraph (a) of subsection (2) and paragraph
  603  (d) of subsection (4) of section 409.911, Florida Statutes, are
  604  amended to read:
  605         409.911 Disproportionate share program.—Subject to specific
  606  allocations established within the General Appropriations Act
  607  and any limitations established pursuant to chapter 216, the
  608  agency shall distribute, pursuant to this section, moneys to
  609  hospitals providing a disproportionate share of Medicaid or
  610  charity care services by making quarterly Medicaid payments as
  611  required. Notwithstanding the provisions of s. 409.915, counties
  612  are exempt from contributing toward the cost of this special
  613  reimbursement for hospitals serving a disproportionate share of
  614  low-income patients.
  615         (2) The Agency for Health Care Administration shall use the
  616  following actual audited data to determine the Medicaid days and
  617  charity care to be used in calculating the disproportionate
  618  share payment:
  619         (a) The average of the 2005, 2006, and 2007, 2008, and 2009
  620  audited disproportionate share data to determine each hospital’s
  621  Medicaid days and charity care for the 2015-2016 2014-2015 state
  622  fiscal year.
  623         (4) The following formulas shall be used to pay
  624  disproportionate share dollars to public hospitals:
  625         (d) Any nonstate government owned or operated hospital
  626  eligible for payments under this section on July 1, 2011,
  627  remains eligible for payments during the 2015-2016 2014-2015
  628  state fiscal year.
  629         Section 10. Paragraph (f) of subsection (3) and paragraph
  630  (c) of subsection (4) of section 409.967, Florida Statutes, are
  631  amended to read:
  632         409.967 Managed care plan accountability.—
  633         (3) ACHIEVED SAVINGS REBATE.—
  634         (f) Achieved savings rebates validated by the certified
  635  public accountant are due within 30 days after the report is
  636  submitted. Except as provided in paragraph (h), the achieved
  637  savings rebate is established by determining pretax income as a
  638  percentage of revenues and applying the following income sharing
  639  ratios:
  640         1. One hundred percent of income up to and including 5
  641  percent of revenue shall be retained by the plan.
  642         2. Fifty percent of income above 5 percent and up to 10
  643  percent shall be retained by the plan, and the other 50 percent
  644  refunded to the state and transferred to the General Revenue
  645  Fund, unallocated.
  646         3. One hundred percent of income above 10 percent of
  647  revenue shall be refunded to the state and transferred to the
  648  General Revenue Fund, unallocated.
  649         (4) MEDICAL LOSS RATIO.—If required as a condition of a
  650  waiver, the agency may calculate a medical loss ratio for
  651  managed care plans. The calculation shall use uniform financial
  652  data collected from all plans and shall be computed for each
  653  plan on a statewide basis. The method for calculating the
  654  medical loss ratio shall meet the following criteria:
  655         (c) Before Prior to final determination of the medical loss
  656  ratio for any period, a plan may contribute to a designated
  657  state trust fund for the purpose of supporting Medicaid and
  658  indigent care and have the contribution counted as a medical
  659  expenditure for the period. Funds contributed for this purpose
  660  shall be deposited into the Grants and Donations Trust Fund.
  661         Section 11. Section 409.97, Florida Statutes, is repealed.
  662         Section 12. Paragraph (a) of subsection (4) of section
  663  409.975, Florida Statutes, is amended to read:
  664         409.975 Managed care plan accountability.—In addition to
  665  the requirements of s. 409.967, plans and providers
  666  participating in the managed medical assistance program shall
  667  comply with the requirements of this section.
  668         (4) MOMCARE NETWORK.—
  669         (a) The agency shall contract with an administrative
  670  services organization representing all Healthy Start Coalitions
  671  providing risk appropriate care coordination and other services
  672  in accordance with a federal waiver and pursuant to s. 409.906.
  673  The contract shall require the network of coalitions to provide
  674  counseling, education, risk-reduction and case management
  675  services, and quality assurance for all enrollees of the waiver.
  676  The agency shall evaluate the impact of the MomCare network by
  677  monitoring each plan’s performance on specific measures to
  678  determine the adequacy, timeliness, and quality of services for
  679  pregnant women and infants. The agency shall support this
  680  contract with certified public expenditures of general revenue
  681  appropriated for Healthy Start services and any earned federal
  682  matching funds.
  683         Section 13. Subsection (6) of section 409.983, Florida
  684  Statutes, is amended to read:
  685         409.983 Long-term care managed care plan payment.—In
  686  addition to the payment provisions of s. 409.968, the agency
  687  shall provide payment to plans in the long-term care managed
  688  care program pursuant to this section.
  689         (6) The agency shall establish nursing-facility-specific
  690  payment rates for each licensed nursing home based on facility
  691  costs adjusted for inflation and other factors as authorized in
  692  the General Appropriations Act. Payments to long-term care
  693  managed care plans shall be reconciled to reimburse actual
  694  payments to nursing facilities resulting from changes in nursing
  695  home per diem rates, but may not be reconciled to actual days
  696  experienced by the long-term care managed care plans.
  697         Section 14. Effective upon this act becoming a law, the
  698  Agency for Health Care Administration may partner with any other
  699  state or territory for the purposes of providing Medicaid fiscal
  700  agent operations only if any resulting agreement or contract
  701  provides for termination when the State of Florida decides it is
  702  not in the best interest of the state. Any such agreement or
  703  contract may not impact Florida’s current Medicaid Management
  704  Information System and each state or territory shall deal
  705  directly with the federal Centers for Medicare and Medicaid
  706  Services independently regarding any billing or matching
  707  requirements.
  708         Section 15. Subsection (43) of section 408.07, Florida
  709  Statutes, is amended to read:
  710         408.07 Definitions.—As used in this chapter, with the
  711  exception of ss. 408.031-408.045, the term:
  712         (43) “Rural hospital” means an acute care hospital licensed
  713  under chapter 395, having 100 or fewer licensed beds and an
  714  emergency room, and which is:
  715         (a) The sole provider within a county with a population
  716  density of no greater than 100 persons per square mile;
  717         (b) An acute care hospital, in a county with a population
  718  density of no greater than 100 persons per square mile, which is
  719  at least 30 minutes of travel time, on normally traveled roads
  720  under normal traffic conditions, from another acute care
  721  hospital within the same county;
  722         (c) A hospital supported by a tax district or subdistrict
  723  whose boundaries encompass a population of 100 persons or fewer
  724  per square mile;
  725         (d) A hospital with a service area that has a population of
  726  100 persons or fewer per square mile. As used in this paragraph,
  727  the term “service area” means the fewest number of zip codes
  728  that account for 75 percent of the hospital’s discharges for the
  729  most recent 5-year period, based on information available from
  730  the hospital inpatient discharge database in the Florida Center
  731  for Health Information and Policy Analysis at the Agency for
  732  Health Care Administration; or
  733         (e) A critical access hospital.
  734  
  735  Population densities used in this subsection must be based upon
  736  the most recently completed United States census. A hospital
  737  that received funds under s. 409.9116 for a quarter beginning no
  738  later than July 1, 2002, is deemed to have been and shall
  739  continue to be a rural hospital from that date through June 30,
  740  2015, if the hospital continues to have 100 or fewer licensed
  741  beds and an emergency room, or meets the criteria of s.
  742  395.602(2)(e)4. An acute care hospital that has not previously
  743  been designated as a rural hospital and that meets the criteria
  744  of this subsection shall be granted such designation upon
  745  application, including supporting documentation, to the Agency
  746  for Health Care Administration.
  747         Section 16. The model, methodology, and framework for
  748  hospital funding programs contained in the document titled
  749  “Medicaid Hospital Funding Programs,” dated June 16, 2015, and
  750  filed with the Secretary of the Senate, are incorporated by
  751  reference for the purpose of displaying, demonstrating, and
  752  explaining the calculations used by the Legislature, consistent
  753  with the requirements of state law, when making appropriations
  754  in the General Appropriations Act for the 2015-2016 fiscal year
  755  for the Rural Hospital Financial Assistance Program, Hospital
  756  Inpatient Services, Hospital Outpatient Services, Low-Income
  757  Pool, the Disproportionate Share Hospital Program, Graduate
  758  Medical Education, and Prepaid Health Plans. The document titled
  759  “Medicaid Hospital Funding Programs” does not allocate or
  760  appropriate any funds. The Agency for Health Care Administration
  761  shall rely solely on the model, methodology, and framework
  762  displayed, demonstrated, and explained in the document titled
  763  “Medicaid Hospital Funding Programs” and the proviso applicable
  764  to appropriations for Medicaid funding when setting hospital
  765  rates, calculating the hospital components of prepaid health
  766  plan capitation rates, and making payments to hospitals and
  767  other providers. This section expires July 1, 2016.
  768         Section 17. The Legislature has determined that this act,
  769  including the document titled “Medicaid Hospital Funding
  770  Programs,” together with the specific appropriations contained
  771  in the fiscal year 2015-2016 General Appropriations Act for the
  772  Rural Hospital Financial Assistance Program, Hospital Inpatient
  773  Services, Hospital Outpatient Services, Low-Income Pool, the
  774  Disproportionate Share Hospital Program, Graduate Medical
  775  Education, and Prepaid Health Plans, are interdependent and
  776  interrelated, are directly and rationally related to the overall
  777  purposes of the state’s Medicaid program, and are advisable only
  778  if considered together and balanced when allocating the state’s
  779  resources, especially considering the complexities of Florida’s
  780  Statewide Medicaid Managed Care program; how hospital rates are
  781  determined in the marketplace, including Medicaid; how the
  782  individual component Medicaid appropriations impact the rates
  783  Florida’s Medicaid managed care entities pay for services; and
  784  the large amounts of uncompensated care provided by Florida’s
  785  Medicaid hospital service providers and the relative potential
  786  impact of that uncompensated care on the overall economic
  787  viability of those institutions. If this act, or any portion of
  788  this act, including the document titled “Medicaid Hospital
  789  Funding Programs,” or any portion thereof, is determined to be
  790  unconstitutional or the applicability thereof to any person or
  791  circumstance is held invalid, then: (1) such determination shall
  792  render all other provisions or applications of this act invalid;
  793  (2) the provisions of this act are not severable; and (3) this
  794  entire act shall be deemed never to have become law. This
  795  section expires July 1, 2016.
  796         Section 18. Section 409.908(1)(f), Florida Statutes, as
  797  created by this act, is remedial in nature, confirms and
  798  clarifies existing law, and applies to all proceedings pending
  799  on or commenced after this act takes effect.
  800         Section 19. If any law amended by this act was also amended
  801  by a law enacted during the 2015 Regular Session of the
  802  Legislature, such laws shall be construed as if enacted during
  803  the same session of the Legislature, and full effect shall be
  804  given to each if possible.
  805         Section 20. Except as otherwise expressly provided in this
  806  act and except for this section, which shall take effect upon
  807  this act becoming a law, this act shall take effect July 1,
  808  2015, or, if this act fails to become a law until after that
  809  date, it shall take effect upon becoming a law and operate
  810  retroactively to July 1, 2015.