Florida Senate - 2017             CONFERENCE COMMITTEE AMENDMENT
       Bill No. SB 2514, 1st Eng.
       
       
       
       
       
       
                                Ì662348=Î662348                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: AD/CR          .           Floor: AD            
             05/08/2017 04:19 PM       .      05/08/2017 07:47 PM       
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       The Conference Committee on SB 2514, 1st Eng. 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 (c) of subsection (2) of section
    7  210.20, Florida Statutes, is amended to read:
    8         210.20 Employees and assistants; distribution of funds.—
    9         (2) As collections are received by the division from such
   10  cigarette taxes, it shall pay the same into a trust fund in the
   11  State Treasury designated “Cigarette Tax Collection Trust Fund”
   12  which shall be paid and distributed as follows:
   13         (c) Beginning July 1, 2017 2013, and continuing through
   14  June 30, 2033, the division shall from month to month certify to
   15  the Chief Financial Officer the amount derived from the
   16  cigarette tax imposed by s. 210.02, less the service charges
   17  provided for in s. 215.20 and less 0.9 percent of the amount
   18  derived from the cigarette tax imposed by s. 210.02, which shall
   19  be deposited into the Alcoholic Beverage and Tobacco Trust Fund,
   20  specifying an amount equal to 1 percent of the net collections,
   21  not to exceed $3 million annually, and that amount shall be
   22  deposited into the Biomedical Research Trust Fund in the
   23  Department of Health. These funds are appropriated annually in
   24  an amount not to exceed $3 million from the Biomedical Research
   25  Trust Fund for the advancement of cures for cancers afflicting
   26  pediatric populations through basic or applied research,
   27  including, but not limited to, clinical trials and nontoxic drug
   28  discovery. These funds are not included in the calculation for
   29  the distribution of funds pursuant to s. 381.915; however, these
   30  funds shall be distributed to cancer centers participating in
   31  the Florida Consortium of National Cancer Institute Centers
   32  Program in the same proportion as is allocated to each cancer
   33  center in accordance with s. 381.915 and are in addition to any
   34  funds distributed pursuant to that section Department of Health
   35  and the Sanford-Burnham Medical Research Institute to work in
   36  conjunction for the purpose of establishing activities and grant
   37  opportunities in relation to biomedical research.
   38         Section 2. Subsection (2) of section 381.922, Florida
   39  Statutes, is amended to read:
   40         381.922 William G. “Bill” Bankhead, Jr., and David Coley
   41  Cancer Research Program.—
   42         (2) The program shall provide grants for cancer research to
   43  further the search for cures for cancer.
   44         (a) Emphasis shall be given to the following goals, as
   45  those goals support the advancement of such cures:
   46         1. Efforts to significantly expand cancer research capacity
   47  in the state by:
   48         a. Identifying ways to attract new research talent and
   49  attendant national grant-producing researchers to cancer
   50  research facilities in this state;
   51         b. Implementing a peer-reviewed, competitive process to
   52  identify and fund the best proposals to expand cancer research
   53  institutes in this state;
   54         c. Funding through available resources for those proposals
   55  that demonstrate the greatest opportunity to attract federal
   56  research grants and private financial support;
   57         d. Encouraging the employment of bioinformatics in order to
   58  create a cancer informatics infrastructure that enhances
   59  information and resource exchange and integration through
   60  researchers working in diverse disciplines, to facilitate the
   61  full spectrum of cancer investigations;
   62         e. Facilitating the technical coordination, business
   63  development, and support of intellectual property as it relates
   64  to the advancement of cancer research; and
   65         f. Aiding in other multidisciplinary research-support
   66  activities as they inure to the advancement of cancer research.
   67         2. Efforts to improve both research and treatment through
   68  greater participation in clinical trials networks by:
   69         a. Identifying ways to increase pediatric and adult
   70  enrollment in cancer clinical trials;
   71         b. Supporting public and private professional education
   72  programs designed to increase the awareness and knowledge about
   73  cancer clinical trials;
   74         c. Providing tools to cancer patients and community-based
   75  oncologists to aid in the identification of cancer clinical
   76  trials available in the state; and
   77         d. Creating opportunities for the state’s academic cancer
   78  centers to collaborate with community-based oncologists in
   79  cancer clinical trials networks.
   80         3. Efforts to reduce the impact of cancer on disparate
   81  groups by:
   82         a. Identifying those cancers that disproportionately impact
   83  certain demographic groups; and
   84         b. Building collaborations designed to reduce health
   85  disparities as they relate to cancer.
   86         (b) Preference may be given to grant proposals that foster
   87  collaborations among institutions, researchers, and community
   88  practitioners, as such proposals support the advancement of
   89  cures through basic or applied research, including clinical
   90  trials involving cancer patients and related networks.
   91         (c) There is established within the program the Live Like
   92  Bella Initiative. The purpose of the initiative is to advance
   93  progress toward curing pediatric cancer by awarding grants
   94  through the peer-reviewed, competitive process established under
   95  subsection (3). This paragraph is subject to the annual
   96  appropriation of funds by the Legislature.
   97         Section 3. Paragraph (a) of subsection (10) of section
   98  394.9082, Florida Statutes, is republished, paragraph (b) of
   99  that subsection is amended, and paragraph (f) is added to that
  100  subsection, to read:
  101         394.9082 Behavioral health managing entities.—
  102         (10) ACUTE CARE SERVICES UTILIZATION DATABASE.—The
  103  department shall develop, implement, and maintain standards
  104  under which a managing entity shall collect utilization data
  105  from all public receiving facilities situated within its
  106  geographical service area and all detoxification and addictions
  107  receiving facilities under contract with the managing entity. As
  108  used in this subsection, the term “public receiving facility”
  109  means an entity that meets the licensure requirements of, and is
  110  designated by, the department to operate as a public receiving
  111  facility under s. 394.875 and that is operating as a licensed
  112  crisis stabilization unit.
  113         (a) The department shall develop standards and protocols to
  114  be used for data collection, storage, transmittal, and analysis.
  115  The standards and protocols shall allow for compatibility of
  116  data and data transmittal between public receiving facilities,
  117  detoxification facilities, addictions receiving facilities,
  118  managing entities, and the department for the implementation,
  119  and to meet the requirements, of this subsection.
  120         (b) A managing entity shall require providers specified in
  121  paragraph (a) to submit data, in real time or at least daily, to
  122  the managing entity for:
  123         1. All admissions and discharges of clients receiving
  124  public receiving facility services who qualify as indigent, as
  125  defined in s. 394.4787.
  126         2. All admissions and discharges of clients receiving
  127  substance abuse services in an addictions receiving facility or
  128  detoxification facility pursuant to parts IV and V of chapter
  129  397 who qualify as indigent.
  130         3. The current active census of total licensed and utilized
  131  beds, the number of beds purchased by the department, the number
  132  of clients qualifying as indigent occupying who occupy any of
  133  those beds, and the total number of unoccupied licensed beds,
  134  regardless of funding, and the number in excess of licensed
  135  capacity. Crisis units licensed for both adult and child use
  136  will report as a single unit.
  137         (f) The department shall post on its website, by facility,
  138  the data collected pursuant to this subsection and update such
  139  posting monthly.
  140         Section 4. Paragraph (e) of subsection (2) of section
  141  395.602, Florida Statutes, is amended to read:
  142         395.602 Rural hospitals.—
  143         (2) DEFINITIONS.—As used in this part, the term:
  144         (e) “Rural hospital” means an acute care hospital licensed
  145  under this chapter, having 100 or fewer licensed beds and an
  146  emergency room, which is:
  147         1. The sole provider within a county with a population
  148  density of up to 100 persons per square mile;
  149         2. An acute care hospital, in a county with a population
  150  density of up to 100 persons per square mile, which is at least
  151  30 minutes of travel time, on normally traveled roads under
  152  normal traffic conditions, from any other acute care hospital
  153  within the same county;
  154         3. A hospital supported by a tax district or subdistrict
  155  whose boundaries encompass a population of up to 100 persons per
  156  square mile;
  157         4. A hospital classified as a sole community hospital under
  158  42 C.F.R. s. 412.92, regardless of the number of which has up to
  159  175 licensed beds;
  160         5. A hospital with a service area that has a population of
  161  up to 100 persons per square mile. As used in this subparagraph,
  162  the term “service area” means the fewest number of zip codes
  163  that account for 75 percent of the hospital’s discharges for the
  164  most recent 5-year period, based on information available from
  165  the hospital inpatient discharge database in the Florida Center
  166  for Health Information and Transparency at the agency; or
  167         6. A hospital designated as a critical access hospital, as
  168  defined in s. 408.07.
  169  
  170  Population densities used in this paragraph must be based upon
  171  the most recently completed United States census. A hospital
  172  that received funds under s. 409.9116 for a quarter beginning no
  173  later than July 1, 2002, is deemed to have been and shall
  174  continue to be a rural hospital from that date through June 30,
  175  2021, if the hospital continues to have up to 100 licensed beds
  176  and an emergency room. An acute care hospital that has not
  177  previously been designated as a rural hospital and that meets
  178  the criteria of this paragraph shall be granted such designation
  179  upon application, including supporting documentation, to the
  180  agency. A hospital that was licensed as a rural hospital during
  181  the 2010-2011 or 2011-2012 fiscal year shall continue to be a
  182  rural hospital from the date of designation through June 30,
  183  2021, if the hospital continues to have up to 100 licensed beds
  184  and an emergency room.
  185         Section 5. Effective October 1, 2018, paragraph (d) of
  186  subsection (2) of section 400.179, Florida Statutes, is amended
  187  to read:
  188         400.179 Liability for Medicaid underpayments and
  189  overpayments.—
  190         (2) Because any transfer of a nursing facility may expose
  191  the fact that Medicaid may have underpaid or overpaid the
  192  transferor, and because in most instances, any such underpayment
  193  or overpayment can only be determined following a formal field
  194  audit, the liabilities for any such underpayments or
  195  overpayments shall be as follows:
  196         (d) Where the transfer involves a facility that has been
  197  leased by the transferor:
  198         1. The transferee shall, as a condition to being issued a
  199  license by the agency, acquire, maintain, and provide proof to
  200  the agency of a bond with a term of 30 months, renewable
  201  annually, in an amount not less than the total of 3 months’
  202  Medicaid payments to the facility computed on the basis of the
  203  preceding 12-month average Medicaid payments to the facility.
  204         2. A leasehold licensee may meet the requirements of
  205  subparagraph 1. by payment of a nonrefundable fee, paid at
  206  initial licensure, paid at the time of any subsequent change of
  207  ownership, and paid annually thereafter, in the amount of 1
  208  percent of the total of 3 months’ Medicaid payments to the
  209  facility computed on the basis of the preceding 12-month average
  210  Medicaid payments to the facility. If a preceding 12-month
  211  average is not available, projected Medicaid payments may be
  212  used. The fee shall be deposited into the Grants and Donations
  213  Trust Fund and shall be accounted for separately as a Medicaid
  214  nursing home overpayment account. These fees shall be used at
  215  the sole discretion of the agency to repay nursing home Medicaid
  216  overpayments or for enhanced payments to nursing facilities as
  217  specified in the General Appropriations Act or other law.
  218  Payment of this fee shall not release the licensee from any
  219  liability for any Medicaid overpayments, nor shall payment bar
  220  the agency from seeking to recoup overpayments from the licensee
  221  and any other liable party. As a condition of exercising this
  222  lease bond alternative, licensees paying this fee must maintain
  223  an existing lease bond through the end of the 30-month term
  224  period of that bond. The agency is herein granted specific
  225  authority to promulgate all rules pertaining to the
  226  administration and management of this account, including
  227  withdrawals from the account, subject to federal review and
  228  approval. This provision shall take effect upon becoming law and
  229  shall apply to any leasehold license application. The financial
  230  viability of the Medicaid nursing home overpayment account shall
  231  be determined by the agency through annual review of the account
  232  balance and the amount of total outstanding, unpaid Medicaid
  233  overpayments owing from leasehold licensees to the agency as
  234  determined by final agency audits. By March 31 of each year, the
  235  agency shall assess the cumulative fees collected under this
  236  subparagraph, minus any amounts used to repay nursing home
  237  Medicaid overpayments and amounts transferred to contribute to
  238  the General Revenue Fund pursuant to s. 215.20. If the net
  239  cumulative collections, minus amounts utilized to repay nursing
  240  home Medicaid overpayments, exceed $25 million, the provisions
  241  of this subparagraph shall not apply for the subsequent fiscal
  242  year.
  243         3. The leasehold licensee may meet the bond requirement
  244  through other arrangements acceptable to the agency. The agency
  245  is herein granted specific authority to promulgate rules
  246  pertaining to lease bond arrangements.
  247         4. All existing nursing facility licensees, operating the
  248  facility as a leasehold, shall acquire, maintain, and provide
  249  proof to the agency of the 30-month bond required in
  250  subparagraph 1., above, on and after July 1, 1993, for each
  251  license renewal.
  252         5. It shall be the responsibility of all nursing facility
  253  operators, operating the facility as a leasehold, to renew the
  254  30-month bond and to provide proof of such renewal to the agency
  255  annually.
  256         6. Any failure of the nursing facility operator to acquire,
  257  maintain, renew annually, or provide proof to the agency shall
  258  be grounds for the agency to deny, revoke, and suspend the
  259  facility license to operate such facility and to take any
  260  further action, including, but not limited to, enjoining the
  261  facility, asserting a moratorium pursuant to part II of chapter
  262  408, or applying for a receiver, deemed necessary to ensure
  263  compliance with this section and to safeguard and protect the
  264  health, safety, and welfare of the facility’s residents. A lease
  265  agreement required as a condition of bond financing or
  266  refinancing under s. 154.213 by a health facilities authority or
  267  required under s. 159.30 by a county or municipality is not a
  268  leasehold for purposes of this paragraph and is not subject to
  269  the bond requirement of this paragraph.
  270         Section 6. Subsection (11) is added to section 409.904,
  271  Florida Statutes, to read:
  272         409.904 Optional payments for eligible persons.—The agency
  273  may make payments for medical assistance and related services on
  274  behalf of the following persons who are determined to be
  275  eligible subject to the income, assets, and categorical
  276  eligibility tests set forth in federal and state law. Payment on
  277  behalf of these Medicaid eligible persons is subject to the
  278  availability of moneys and any limitations established by the
  279  General Appropriations Act or chapter 216.
  280         (11) Subject to federal waiver approval, a person diagnosed
  281  with acquired immune deficiency syndrome (AIDS) who has an AIDS
  282  related opportunistic infection and is at risk of
  283  hospitalization as determined by the agency and whose income is
  284  at or below 300 percent of the Federal Benefit Rate.
  285         Section 7. Paragraph (b) of subsection (13) of section
  286  409.906, Florida Statutes, is amended to read:
  287         409.906 Optional Medicaid services.—Subject to specific
  288  appropriations, the agency may make payments for services which
  289  are optional to the state under Title XIX of the Social Security
  290  Act and are furnished by Medicaid providers to recipients who
  291  are determined to be eligible on the dates on which the services
  292  were provided. Any optional service that is provided shall be
  293  provided only when medically necessary and in accordance with
  294  state and federal law. Optional services rendered by providers
  295  in mobile units to Medicaid recipients may be restricted or
  296  prohibited by the agency. Nothing in this section shall be
  297  construed to prevent or limit the agency from adjusting fees,
  298  reimbursement rates, lengths of stay, number of visits, or
  299  number of services, or making any other adjustments necessary to
  300  comply with the availability of moneys and any limitations or
  301  directions provided for in the General Appropriations Act or
  302  chapter 216. If necessary to safeguard the state’s systems of
  303  providing services to elderly and disabled persons and subject
  304  to the notice and review provisions of s. 216.177, the Governor
  305  may direct the Agency for Health Care Administration to amend
  306  the Medicaid state plan to delete the optional Medicaid service
  307  known as “Intermediate Care Facilities for the Developmentally
  308  Disabled.” Optional services may include:
  309         (13) HOME AND COMMUNITY-BASED SERVICES.—
  310         (b) The agency may consolidate types of services offered in
  311  the Aged and Disabled Waiver, the Channeling Waiver, the Project
  312  AIDS Care Waiver, and the Traumatic Brain and Spinal Cord Injury
  313  Waiver programs in order to group similar services under a
  314  single service, or continue a service upon evidence of the need
  315  for including a particular service type in a particular waiver.
  316  The agency is authorized to seek a Medicaid state plan amendment
  317  or federal waiver approval to implement this policy.
  318         Section 8. Effective October 1, 2018, subsection (2) of
  319  section 409.908, Florida Statutes, is amended to read:
  320         409.908 Reimbursement of Medicaid providers.—Subject to
  321  specific appropriations, the agency shall reimburse Medicaid
  322  providers, in accordance with state and federal law, according
  323  to methodologies set forth in the rules of the agency and in
  324  policy manuals and handbooks incorporated by reference therein.
  325  These methodologies may include fee schedules, reimbursement
  326  methods based on cost reporting, negotiated fees, competitive
  327  bidding pursuant to s. 287.057, and other mechanisms the agency
  328  considers efficient and effective for purchasing services or
  329  goods on behalf of recipients. If a provider is reimbursed based
  330  on cost reporting and submits a cost report late and that cost
  331  report would have been used to set a lower reimbursement rate
  332  for a rate semester, then the provider’s rate for that semester
  333  shall be retroactively calculated using the new cost report, and
  334  full payment at the recalculated rate shall be effected
  335  retroactively. Medicare-granted extensions for filing cost
  336  reports, if applicable, shall also apply to Medicaid cost
  337  reports. Payment for Medicaid compensable services made on
  338  behalf of Medicaid eligible persons is subject to the
  339  availability of moneys and any limitations or directions
  340  provided for in the General Appropriations Act or chapter 216.
  341  Further, nothing in this section shall be construed to prevent
  342  or limit the agency from adjusting fees, reimbursement rates,
  343  lengths of stay, number of visits, or number of services, or
  344  making any other adjustments necessary to comply with the
  345  availability of moneys and any limitations or directions
  346  provided for in the General Appropriations Act, provided the
  347  adjustment is consistent with legislative intent.
  348         (2)(a)1. Reimbursement to nursing homes licensed under part
  349  II of chapter 400 and state-owned-and-operated intermediate care
  350  facilities for the developmentally disabled licensed under part
  351  VIII of chapter 400 must be made prospectively.
  352         2. Unless otherwise limited or directed in the General
  353  Appropriations Act, reimbursement to hospitals licensed under
  354  part I of chapter 395 for the provision of swing-bed nursing
  355  home services must be made on the basis of the average statewide
  356  nursing home payment, and reimbursement to a hospital licensed
  357  under part I of chapter 395 for the provision of skilled nursing
  358  services must be made on the basis of the average nursing home
  359  payment for those services in the county in which the hospital
  360  is located. When a hospital is located in a county that does not
  361  have any community nursing homes, reimbursement shall be
  362  determined by averaging the nursing home payments in counties
  363  that surround the county in which the hospital is located.
  364  Reimbursement to hospitals, including Medicaid payment of
  365  Medicare copayments, for skilled nursing services shall be
  366  limited to 30 days, unless a prior authorization has been
  367  obtained from the agency. Medicaid reimbursement may be extended
  368  by the agency beyond 30 days, and approval must be based upon
  369  verification by the patient’s physician that the patient
  370  requires short-term rehabilitative and recuperative services
  371  only, in which case an extension of no more than 15 days may be
  372  approved. Reimbursement to a hospital licensed under part I of
  373  chapter 395 for the temporary provision of skilled nursing
  374  services to nursing home residents who have been displaced as
  375  the result of a natural disaster or other emergency may not
  376  exceed the average county nursing home payment for those
  377  services in the county in which the hospital is located and is
  378  limited to the period of time which the agency considers
  379  necessary for continued placement of the nursing home residents
  380  in the hospital.
  381         (b) Subject to any limitations or directions in the General
  382  Appropriations Act, the agency shall establish and implement a
  383  state Title XIX Long-Term Care Reimbursement Plan for nursing
  384  home care in order to provide care and services in conformance
  385  with the applicable state and federal laws, rules, regulations,
  386  and quality and safety standards and to ensure that individuals
  387  eligible for medical assistance have reasonable geographic
  388  access to such care.
  389         1. The agency shall amend the long-term care reimbursement
  390  plan and cost reporting system to create direct care and
  391  indirect care subcomponents of the patient care component of the
  392  per diem rate. These two subcomponents together shall equal the
  393  patient care component of the per diem rate. Separate prices
  394  cost-based ceilings shall be calculated for each patient care
  395  subcomponent, initially based on the September 2016 rate setting
  396  cost reports and subsequently based on the most recently audited
  397  cost report used during a rebasing year. The direct care
  398  subcomponent of the per diem rate for any providers still being
  399  reimbursed on a cost basis shall be limited by the cost-based
  400  class ceiling, and the indirect care subcomponent may be limited
  401  by the lower of the cost-based class ceiling, the target rate
  402  class ceiling, or the individual provider target. The ceilings
  403  and targets apply only to providers being reimbursed on a cost
  404  based system. Effective October 1, 2018, a prospective payment
  405  methodology shall be implemented for rate setting purposes with
  406  the following parameters:
  407         a.Peer Groups, including:
  408         (I) North-SMMC Regions 1-9, less Palm Beach and Okeechobee
  409  Counties; and
  410         (II) South-SMMC Regions 10-11, plus Palm Beach and
  411  Okeechobee Counties.
  412         b.Percentage of Median Costs based on the cost reports
  413  used for September 2016 rate setting:
  414         (I) Direct Care Costs........................100 percent.
  415         (II) Indirect Care Costs......................92 percent.
  416         (III) Operating Costs.........................86 percent.
  417         c.Floors:
  418         (I) Direct Care Component.....................95 percent.
  419         (II) Indirect Care Component................92.5 percent.
  420         (III) Operating Component...........................None.
  421         d.Pass-through PaymentsReal Estate and Personal Property
  422  Taxes and Property Insurance.
  423         e.Quality Incentive Program Payment Pool....6 percent of
  424  September 2016 non-property related payments of included
  425  facilities.
  426         f.Quality Score Threshold to Quality for Quality Incentive
  427  Payment..................20th percentile of included facilities.
  428         g.Fair Rental Value System Payment Parameters:
  429         (I) Building Value per Square Foot based on 2018 RS Means.
  430         (II) Land Valuation...10 percent of Gross Building value.
  431         (III) Facility Square Footage......Actual Square Footage.
  432         (IV) Moveable Equipment Allowance.........$8,000 per bed.
  433         (V) Obsolescence Factor......................1.5 percent.
  434         (VI) Fair Rental Rate of Return................8 percent.
  435         (VII) Minimum Occupancy.......................90 percent.
  436         (VIII) Maximum Facility Age.....................40 years.
  437         (IX) Minimum Square Footage per Bed..................350.
  438         (X) Maximum Square Footage for Bed...................500.
  439         (XI)Minimum Cost of a renovation/replacements$500 per bed.
  440         h.Ventilator Supplemental payment of $200 per Medicaid day
  441  of 40,000 ventilator Medicaid days per fiscal year.
  442         2. The direct care subcomponent shall include salaries and
  443  benefits of direct care staff providing nursing services
  444  including registered nurses, licensed practical nurses, and
  445  certified nursing assistants who deliver care directly to
  446  residents in the nursing home facility, allowable therapy costs,
  447  and dietary costs. This excludes nursing administration, staff
  448  development, the staffing coordinator, and the administrative
  449  portion of the minimum data set and care plan coordinators. The
  450  direct care subcomponent also includes medically necessary
  451  dental care, vision care, hearing care, and podiatric care.
  452         3. All other patient care costs shall be included in the
  453  indirect care cost subcomponent of the patient care per diem
  454  rate, including complex medical equipment, medical supplies, and
  455  other allowable ancillary costs. Costs may not be allocated
  456  directly or indirectly to the direct care subcomponent from a
  457  home office or management company.
  458         4. On July 1 of each year, the agency shall report to the
  459  Legislature direct and indirect care costs, including average
  460  direct and indirect care costs per resident per facility and
  461  direct care and indirect care salaries and benefits per category
  462  of staff member per facility.
  463         5. Every fourth year, the agency shall rebase nursing home
  464  prospective payment rates to reflect changes in cost based on
  465  the most recently audited cost report for each participating
  466  provider In order to offset the cost of general and professional
  467  liability insurance, the agency shall amend the plan to allow
  468  for interim rate adjustments to reflect increases in the cost of
  469  general or professional liability insurance for nursing homes.
  470  This provision shall be implemented to the extent existing
  471  appropriations are available.
  472         6. A direct care supplemental payment may be made to
  473  providers whose direct care hours per patient day are above the
  474  80th percentile and who provide Medicaid services to a larger
  475  percentage of Medicaid patients than the state average.
  476         7. For the period beginning on October 1, 2018, and ending
  477  on September 30, 2021, the agency shall reimburse providers the
  478  greater of their September 2016 cost-based rate or their
  479  prospective payment rate. Effective October 1, 2021, the agency
  480  shall reimburse providers the greater of 95 percent of their
  481  cost-based rate or their rebased prospective payment rate, using
  482  the most recently audited cost report for each facility. This
  483  subparagraph shall expire September 30, 2023.
  484         8. Pediatric, Florida Department of Veterans Affairs, and
  485  government-owned facilities are exempt from the pricing model
  486  established in this subsection and shall remain on a cost-based
  487  prospective payment system. Effective October 1, 2018, the
  488  agency shall set rates for all facilities remaining on a cost
  489  based prospective payment system using each facility’s most
  490  recently audited cost report, eliminating retroactive
  491  settlements.
  492  
  493  It is the intent of the Legislature that the reimbursement plan
  494  achieve the goal of providing access to health care for nursing
  495  home residents who require large amounts of care while
  496  encouraging diversion services as an alternative to nursing home
  497  care for residents who can be served within the community. The
  498  agency shall base the establishment of any maximum rate of
  499  payment, whether overall or component, on the available moneys
  500  as provided for in the General Appropriations Act. The agency
  501  may base the maximum rate of payment on the results of
  502  scientifically valid analysis and conclusions derived from
  503  objective statistical data pertinent to the particular maximum
  504  rate of payment.
  505         Section 9. Subsections (6) through (26) of section 409.908,
  506  Florida Statutes, are renumbered as subsections (5) through
  507  (25), respectively, present subsections (5), (14), and (24) are
  508  amended, and a new subsection (26) is added to that section, to
  509  read:
  510         409.908 Reimbursement of Medicaid providers.—Subject to
  511  specific appropriations, the agency shall reimburse Medicaid
  512  providers, in accordance with state and federal law, according
  513  to methodologies set forth in the rules of the agency and in
  514  policy manuals and handbooks incorporated by reference therein.
  515  These methodologies may include fee schedules, reimbursement
  516  methods based on cost reporting, negotiated fees, competitive
  517  bidding pursuant to s. 287.057, and other mechanisms the agency
  518  considers efficient and effective for purchasing services or
  519  goods on behalf of recipients. If a provider is reimbursed based
  520  on cost reporting and submits a cost report late and that cost
  521  report would have been used to set a lower reimbursement rate
  522  for a rate semester, then the provider’s rate for that semester
  523  shall be retroactively calculated using the new cost report, and
  524  full payment at the recalculated rate shall be effected
  525  retroactively. Medicare-granted extensions for filing cost
  526  reports, if applicable, shall also apply to Medicaid cost
  527  reports. Payment for Medicaid compensable services made on
  528  behalf of Medicaid eligible persons is subject to the
  529  availability of moneys and any limitations or directions
  530  provided for in the General Appropriations Act or chapter 216.
  531  Further, nothing in this section shall be construed to prevent
  532  or limit the agency from adjusting fees, reimbursement rates,
  533  lengths of stay, number of visits, or number of services, or
  534  making any other adjustments necessary to comply with the
  535  availability of moneys and any limitations or directions
  536  provided for in the General Appropriations Act, provided the
  537  adjustment is consistent with legislative intent.
  538         (5)An ambulatory surgical center shall be reimbursed the
  539  lesser of the amount billed by the provider or the Medicare
  540  established allowable amount for the facility.
  541         (13)(14) Medicare premiums for persons eligible for both
  542  Medicare and Medicaid coverage shall be paid at the rates
  543  established by Title XVIII of the Social Security Act. For
  544  Medicare services rendered to Medicaid-eligible persons,
  545  Medicaid shall pay Medicare deductibles and coinsurance as
  546  follows:
  547         (a) Medicaid’s financial obligation for deductibles and
  548  coinsurance payments shall be based on Medicare allowable fees,
  549  not on a provider’s billed charges.
  550         (b) Medicaid will pay no portion of Medicare deductibles
  551  and coinsurance when payment that Medicare has made for the
  552  service equals or exceeds what Medicaid would have paid if it
  553  had been the sole payor. The combined payment of Medicare and
  554  Medicaid shall not exceed the amount Medicaid would have paid
  555  had it been the sole payor. The Legislature finds that there has
  556  been confusion regarding the reimbursement for services rendered
  557  to dually eligible Medicare beneficiaries. Accordingly, the
  558  Legislature clarifies that it has always been the intent of the
  559  Legislature before and after 1991 that, in reimbursing in
  560  accordance with fees established by Title XVIII for premiums,
  561  deductibles, and coinsurance for Medicare services rendered by
  562  physicians to Medicaid eligible persons, physicians be
  563  reimbursed at the lesser of the amount billed by the physician
  564  or the Medicaid maximum allowable fee established by the Agency
  565  for Health Care Administration, as is permitted by federal law.
  566  It has never been the intent of the Legislature with regard to
  567  such services rendered by physicians that Medicaid be required
  568  to provide any payment for deductibles, coinsurance, or
  569  copayments for Medicare cost sharing, or any expenses incurred
  570  relating thereto, in excess of the payment amount provided for
  571  under the State Medicaid plan for such service. This payment
  572  methodology is applicable even in those situations in which the
  573  payment for Medicare cost sharing for a qualified Medicare
  574  beneficiary with respect to an item or service is reduced or
  575  eliminated. This expression of the Legislature is in
  576  clarification of existing law and shall apply to payment for,
  577  and with respect to provider agreements with respect to, items
  578  or services furnished on or after the effective date of this
  579  act. This paragraph applies to payment by Medicaid for items and
  580  services furnished before the effective date of this act if such
  581  payment is the subject of a lawsuit that is based on the
  582  provisions of this section, and that is pending as of, or is
  583  initiated after, the effective date of this act.
  584         (c) Notwithstanding paragraphs (a) and (b):
  585         1. Medicaid payments for Nursing Home Medicare part A
  586  coinsurance are limited to the Medicaid nursing home per diem
  587  rate less any amounts paid by Medicare, but only up to the
  588  amount of Medicare coinsurance. The Medicaid per diem rate shall
  589  be the rate in effect for the dates of service of the crossover
  590  claims and may not be subsequently adjusted due to subsequent
  591  per diem rate adjustments.
  592         2. Medicaid shall pay all deductibles and coinsurance for
  593  Medicare-eligible recipients receiving freestanding end stage
  594  renal dialysis center services.
  595         3. Medicaid payments for general and specialty hospital
  596  inpatient services are limited to the Medicare deductible and
  597  coinsurance per spell of illness. Medicaid payments for hospital
  598  Medicare Part A coinsurance shall be limited to the Medicaid
  599  hospital per diem rate less any amounts paid by Medicare, but
  600  only up to the amount of Medicare coinsurance. Medicaid payments
  601  for coinsurance shall be limited to the Medicaid per diem rate
  602  in effect for the dates of service of the crossover claims and
  603  may not be subsequently adjusted due to subsequent per diem
  604  adjustments.
  605         4. Medicaid shall pay all deductibles and coinsurance for
  606  Medicare emergency transportation services provided by
  607  ambulances licensed pursuant to chapter 401.
  608         5. Medicaid shall pay all deductibles and coinsurance for
  609  portable X-ray Medicare Part B services provided in a nursing
  610  home, in an assisted living facility, or in the patient’s home.
  611         (23)(24)(a) The agency shall establish rates at a level
  612  that ensures no increase in statewide expenditures resulting
  613  from a change in unit costs effective July 1, 2011.
  614  Reimbursement rates shall be as provided in the General
  615  Appropriations Act.
  616         (b) Base rate reimbursement for inpatient services under a
  617  diagnosis-related group payment methodology shall be provided in
  618  the General Appropriations Act.
  619         (c)Base rate reimbursement for outpatient services under
  620  an enhanced ambulatory payment group methodology shall be
  621  provided in the General Appropriations Act.
  622         (d)(c) This subsection applies to the following provider
  623  types:
  624         1.Inpatient hospitals.
  625         2.Outpatient hospitals.
  626         1.3. Nursing homes.
  627         2.4. County health departments.
  628         5.Prepaid health plans.
  629         (e)(d) The agency shall apply the effect of this subsection
  630  to the reimbursement rates for nursing home diversion programs.
  631         (26)The agency may receive funds from state entities,
  632  including, but not limited to, the Department of Health, local
  633  governments, and other local political subdivisions, for the
  634  purpose of making special exception payments, including federal
  635  matching funds. Funds received for this purpose shall be
  636  separately accounted for and may not be commingled with other
  637  state or local funds in any manner. The agency may certify all
  638  local governmental funds used as state match under Title XIX of
  639  the Social Security Act to the extent and in the manner
  640  authorized under the General Appropriations Act and pursuant to
  641  an agreement between the agency and the local governmental
  642  entity. In order for the agency to certify such local
  643  governmental funds, a local governmental entity must submit a
  644  final, executed letter of agreement to the agency, which must be
  645  received by October 1 of each fiscal year and provide the total
  646  amount of local governmental funds authorized by the entity for
  647  that fiscal year under the General Appropriations Act. The local
  648  governmental entity shall use a certification form prescribed by
  649  the agency. At a minimum, the certification form must identify
  650  the amount being certified and describe the relationship between
  651  the certifying local governmental entity and the local health
  652  care provider. Local governmental funds outlined in the letters
  653  of agreement must be received by the agency no later than
  654  October 31 of each fiscal year in which such funds are pledged,
  655  unless an alternative plan is specifically approved by the
  656  agency.
  657         Section 10. Effective October 1, 2018, subsection (4) of
  658  section 409.9082, Florida Statutes, is amended to read:
  659         409.9082 Quality assessment on nursing home facility
  660  providers; exemptions; purpose; federal approval required;
  661  remedies.—
  662         (4) The purpose of the nursing home facility quality
  663  assessment is to ensure continued quality of care. Collected
  664  assessment funds shall be used to obtain federal financial
  665  participation through the Medicaid program to make Medicaid
  666  payments for nursing home facility services up to the amount of
  667  nursing home facility Medicaid rates as calculated in accordance
  668  with the approved state Medicaid plan in effect on December 31,
  669  2007. The quality assessment and federal matching funds shall be
  670  used exclusively for the following purposes and in the following
  671  order of priority:
  672         (a) To reimburse the Medicaid share of the quality
  673  assessment as a pass-through, Medicaid-allowable cost;
  674         (b) To increase to each nursing home facility’s Medicaid
  675  rate, as needed, an amount that restores rate reductions
  676  effective on or after January 1, 2008, as provided in the
  677  General Appropriations Act; and
  678         (c) To partially fund the quality incentive payment program
  679  for nursing facilities that exceed quality benchmarks increase
  680  each nursing home facility’s Medicaid rate that accounts for the
  681  portion of the total assessment not included in paragraphs (a)
  682  and (b) which begins a phase-in to a pricing model for the
  683  operating cost component.
  684         Section 11. Section 409.909, Florida Statutes, is amended
  685  to read:
  686         409.909 Statewide Medicaid Residency Program.—
  687         (1) The Statewide Medicaid Residency Program is established
  688  to improve the quality of care and access to care for Medicaid
  689  recipients, expand graduate medical education on an equitable
  690  basis, and increase the supply of highly trained physicians
  691  statewide. The agency shall make payments to hospitals licensed
  692  under part I of chapter 395 and to qualifying institutions as
  693  defined in paragraph (2)(c) for graduate medical education
  694  associated with the Medicaid program. This system of payments is
  695  designed to generate federal matching funds under Medicaid and
  696  distribute the resulting funds to participating hospitals on a
  697  quarterly basis in each fiscal year for which an appropriation
  698  is made.
  699         (2) On or before September 15 of each year, the agency
  700  shall calculate an allocation fraction to be used for
  701  distributing funds to participating hospitals and to qualifying
  702  institutions as defined in paragraph (2)(c). On or before the
  703  final business day of each quarter of a state fiscal year, the
  704  agency shall distribute to each participating hospital one
  705  fourth of that hospital’s annual allocation calculated under
  706  subsection (4). The allocation fraction for each participating
  707  hospital is based on the hospital’s number of full-time
  708  equivalent residents and the amount of its Medicaid payments. As
  709  used in this section, the term:
  710         (a) “Full-time equivalent,” or “FTE,” means a resident who
  711  is in his or her residency period, with the initial residency
  712  period defined as the minimum number of years of training
  713  required before the resident may become eligible for board
  714  certification by the American Osteopathic Association Bureau of
  715  Osteopathic Specialists or the American Board of Medical
  716  Specialties in the specialty in which he or she first began
  717  training, not to exceed 5 years. The residency specialty is
  718  defined as reported using the current residency type codes in
  719  the Intern and Resident Information System (IRIS), required by
  720  Medicare. A resident training beyond the initial residency
  721  period is counted as 0.5 FTE, unless his or her chosen specialty
  722  is in primary care, in which case the resident is counted as 1.0
  723  FTE. For the purposes of this section, primary care specialties
  724  include:
  725         1. Family medicine;
  726         2. General internal medicine;
  727         3. General pediatrics;
  728         4. Preventive medicine;
  729         5. Geriatric medicine;
  730         6. Osteopathic general practice;
  731         7. Obstetrics and gynecology;
  732         8. Emergency medicine;
  733         9. General surgery; and
  734         10. Psychiatry.
  735         (b) “Medicaid payments” means the estimated total payments
  736  for reimbursing a hospital for direct inpatient services for the
  737  fiscal year in which the allocation fraction is calculated based
  738  on the hospital inpatient appropriation and the parameters for
  739  the inpatient diagnosis-related group base rate and the
  740  parameters for the outpatient enhanced ambulatory payment group
  741  rate, including applicable intergovernmental transfers,
  742  specified in the General Appropriations Act, as determined by
  743  the agency. Effective July 1, 2017, the term “Medicaid payments”
  744  means the estimated total payments for reimbursing a hospital
  745  and qualifying institutions as defined in paragraph (2)(c) for
  746  direct inpatient and outpatient services for the fiscal year in
  747  which the allocation fraction is calculated based on the
  748  hospital inpatient appropriation and outpatient appropriation
  749  and the parameters for the inpatient diagnosis-related group
  750  base rate and the parameters for the outpatient enhanced
  751  ambulatory payment group rate, including applicable
  752  intergovernmental transfers, specified in the General
  753  Appropriations Act, as determined by the agency.
  754         (c) “Qualifying institution” means a federally Qualified
  755  Health Center holding an Accreditation Council for Graduate
  756  Medical Education institutional accreditation.
  757         (d) “Resident” means a medical intern, fellow, or resident
  758  enrolled in a program accredited by the Accreditation Council
  759  for Graduate Medical Education, the American Association of
  760  Colleges of Osteopathic Medicine, or the American Osteopathic
  761  Association at the beginning of the state fiscal year during
  762  which the allocation fraction is calculated, as reported by the
  763  hospital to the agency.
  764         (3) The agency shall use the following formula to calculate
  765  a participating hospital’s and qualifying institution’s
  766  allocation fraction:
  767  
  768             HAF=[0.9 x (HFTE/TFTE)] + [0.1 x (HMP/TMP)]           
  769  
  770         Where:
  771         HAF=A hospital’s and qualifying institution’s allocation
  772  fraction.
  773         HFTE=A hospital’s and qualifying institution’s total number
  774  of FTE residents.
  775         TFTE=The total FTE residents for all participating
  776  hospitals and qualifying institutions.
  777         HMP=A hospital’s and qualifying institution’s Medicaid
  778  payments.
  779         TMP=The total Medicaid payments for all participating
  780  hospitals and qualifying institutions.
  781  
  782         (4) A hospital’s and qualifying institution’s annual
  783  allocation shall be calculated by multiplying the funds
  784  appropriated for the Statewide Medicaid Residency Program in the
  785  General Appropriations Act by that hospital’s and qualifying
  786  institution’s allocation fraction. If the calculation results in
  787  an annual allocation that exceeds two times the average per FTE
  788  resident amount for all hospitals and qualifying institutions,
  789  the hospital’s and qualifying institution’s annual allocation
  790  shall be reduced to a sum equaling no more than two times the
  791  average per FTE resident. The funds calculated for that hospital
  792  and qualifying institution in excess of two times the average
  793  per FTE resident amount for all hospitals and qualifying
  794  institutions shall be redistributed to participating hospitals
  795  and qualifying institutions whose annual allocation does not
  796  exceed two times the average per FTE resident amount for all
  797  hospitals and qualifying institutions, using the same
  798  methodology and payment schedule specified in this section.
  799         (5) The Graduate Medical Education Startup Bonus Program is
  800  established to provide resources for the education and training
  801  of physicians in specialties which are in a statewide supply
  802  and-demand deficit. Hospitals and qualifying institutions as
  803  defined in paragraph (2)(c) eligible for participation in
  804  subsection (1) are eligible to participate in the Graduate
  805  Medical Education Startup Bonus Program established under this
  806  subsection. Notwithstanding subsection (4) or an FTE’s residency
  807  period, and in any state fiscal year in which funds are
  808  appropriated for the startup bonus program, the agency shall
  809  allocate a $100,000 startup bonus for each newly created
  810  resident position that is authorized by the Accreditation
  811  Council for Graduate Medical Education or Osteopathic
  812  Postdoctoral Training Institution in an initial or established
  813  accredited training program that is in a physician specialty in
  814  statewide supply-and-demand deficit. In any year in which
  815  funding is not sufficient to provide $100,000 for each newly
  816  created resident position, funding shall be reduced pro rata
  817  across all newly created resident positions in physician
  818  specialties in statewide supply-and-demand deficit.
  819         (a) Hospitals and qualifying institutions as defined in
  820  paragraph (2)(c) applying for a startup bonus must submit to the
  821  agency by March 1 their Accreditation Council for Graduate
  822  Medical Education or Osteopathic Postdoctoral Training
  823  Institution approval validating the new resident positions
  824  approved on or after March 2 of the prior fiscal year through
  825  March 1 of the current fiscal year for the physician specialties
  826  identified in a statewide supply-and-demand deficit as provided
  827  in the current fiscal year’s General Appropriations Act. An
  828  applicant hospital or qualifying institution as defined in
  829  paragraph (2)(c) may validate a change in the number of
  830  residents by comparing the number in the prior period
  831  Accreditation Council for Graduate Medical Education or
  832  Osteopathic Postdoctoral Training Institution approval to the
  833  number in the current year.
  834         (b) Any unobligated startup bonus funds on April 15 of each
  835  fiscal year shall be proportionally allocated to hospitals and
  836  to qualifying institutions as defined in paragraph (2)(c)
  837  participating under subsection (3) for existing FTE residents in
  838  the physician specialties in statewide supply-and-demand
  839  deficit. This nonrecurring allocation shall be in addition to
  840  the funds allocated in subsection (4). Notwithstanding
  841  subsection (4), the allocation under this subsection may not
  842  exceed $100,000 per FTE resident.
  843         (c) For purposes of this subsection, physician specialties
  844  and subspecialties, both adult and pediatric, in statewide
  845  supply-and-demand deficit are those identified in the General
  846  Appropriations Act.
  847         (d) The agency shall distribute all funds authorized under
  848  the Graduate Medical Education Startup Bonus Program on or
  849  before the final business day of the fourth quarter of a state
  850  fiscal year.
  851         (6) Beginning in the 2015-2016 state fiscal year, the
  852  agency shall reconcile each participating hospital’s total
  853  number of FTE residents calculated for the state fiscal year 2
  854  years before with its most recently available Medicare cost
  855  reports covering the same time period. Reconciled FTE counts
  856  shall be prorated according to the portion of the state fiscal
  857  year covered by a Medicare cost report. Using the same
  858  definitions, methodology, and payment schedule specified in this
  859  section, the reconciliation shall apply any differences in
  860  annual allocations calculated under subsection (4) to the
  861  current year’s annual allocations.
  862         (7) The agency may adopt rules to administer this section.
  863         Section 12. Paragraph (a) of subsection (2) of section
  864  409.911, Florida Statutes, is amended, and paragraph (b) of that
  865  subsection is republished, to read:
  866         409.911 Disproportionate share program.—Subject to specific
  867  allocations established within the General Appropriations Act
  868  and any limitations established pursuant to chapter 216, the
  869  agency shall distribute, pursuant to this section, moneys to
  870  hospitals providing a disproportionate share of Medicaid or
  871  charity care services by making quarterly Medicaid payments as
  872  required. Notwithstanding the provisions of s. 409.915, counties
  873  are exempt from contributing toward the cost of this special
  874  reimbursement for hospitals serving a disproportionate share of
  875  low-income patients.
  876         (2) The Agency for Health Care Administration shall use the
  877  following actual audited data to determine the Medicaid days and
  878  charity care to be used in calculating the disproportionate
  879  share payment:
  880         (a) The average of the 2009, 2010, and 2011 2007, 2008, and
  881  2009 audited disproportionate share data to determine each
  882  hospital’s Medicaid days and charity care for the 2017-2018
  883  2015-2016 state fiscal year.
  884         (b) If the Agency for Health Care Administration does not
  885  have the prescribed 3 years of audited disproportionate share
  886  data as noted in paragraph (a) for a hospital, the agency shall
  887  use the average of the years of the audited disproportionate
  888  share data as noted in paragraph (a) which is available.
  889         Section 13. Section 409.9119, Florida Statutes, is amended
  890  to read:
  891         409.9119 Disproportionate share program for specialty
  892  hospitals for children.—In addition to the payments made under
  893  s. 409.911, the Agency for Health Care Administration shall
  894  develop and implement a system under which disproportionate
  895  share payments are made to those hospitals that are separately
  896  licensed by the state as specialty hospitals for children, have
  897  a federal Centers for Medicare and Medicaid Services
  898  certification number in the 3300-3399 range, have Medicaid days
  899  that exceed 55 percent of their total days and Medicare days
  900  that are less than 5 percent of their total days, and were
  901  licensed on January 1, 2013 January 1, 2000, as specialty
  902  hospitals for children. This system of payments must conform to
  903  federal requirements and must distribute funds in each fiscal
  904  year for which an appropriation is made by making quarterly
  905  Medicaid payments. Notwithstanding s. 409.915, counties are
  906  exempt from contributing toward the cost of this special
  907  reimbursement for hospitals that serve a disproportionate share
  908  of low-income patients. The agency may make disproportionate
  909  share payments to specialty hospitals for children as provided
  910  for in the General Appropriations Act.
  911         (1) Unless specified in the General Appropriations Act, the
  912  agency shall use the following formula to calculate the total
  913  amount earned for hospitals that participate in the specialty
  914  hospital for children disproportionate share program:
  915  
  916                        TAE = DSR x BMPD x MD                      
  917  
  918  Where:
  919         TAE = total amount earned by a specialty hospital for
  920  children.
  921         DSR = disproportionate share rate.
  922         BMPD = base Medicaid per diem.
  923         MD = Medicaid days.
  924  
  925         (2) The agency shall calculate the total additional payment
  926  for hospitals that participate in the specialty hospital for
  927  children disproportionate share program as follows:
  928  
  929                       TAP = (TAE x TA) ÷ STAE                     
  930  
  931  Where:
  932         TAP = total additional payment for a specialty hospital for
  933  children.
  934         TAE = total amount earned by a specialty hospital for
  935  children.
  936         TA = total appropriation for the specialty hospital for
  937  children disproportionate share program.
  938         STAE = sum of total amount earned by each hospital that
  939  participates in the specialty hospital for children
  940  disproportionate share program.
  941  
  942         (3) A hospital may not receive any payments under this
  943  section until it achieves full compliance with the applicable
  944  rules of the agency. A hospital that is not in compliance for
  945  two or more consecutive quarters may not receive its share of
  946  the funds. Any forfeited funds must be distributed to the
  947  remaining participating specialty hospitals for children that
  948  are in compliance.
  949         (4) Notwithstanding any provision of this section to the
  950  contrary, for the 2017-2018 2016-2017 state fiscal year, for
  951  hospitals achieving full compliance under subsection (3), the
  952  agency shall make disproportionate share payments to specialty
  953  hospitals for children as provided in the 2017-2018 2016-2017
  954  General Appropriations Act. This subsection expires July 1, 2018
  955  2017.
  956         Section 14. Subsection (36) of section 409.913, Florida
  957  Statutes, is amended to read:
  958         409.913 Oversight of the integrity of the Medicaid
  959  program.—The agency shall operate a program to oversee the
  960  activities of Florida Medicaid recipients, and providers and
  961  their representatives, to ensure that fraudulent and abusive
  962  behavior and neglect of recipients occur to the minimum extent
  963  possible, and to recover overpayments and impose sanctions as
  964  appropriate. Beginning January 1, 2003, and each year
  965  thereafter, the agency and the Medicaid Fraud Control Unit of
  966  the Department of Legal Affairs shall submit a joint report to
  967  the Legislature documenting the effectiveness of the state’s
  968  efforts to control Medicaid fraud and abuse and to recover
  969  Medicaid overpayments during the previous fiscal year. The
  970  report must describe the number of cases opened and investigated
  971  each year; the sources of the cases opened; the disposition of
  972  the cases closed each year; the amount of overpayments alleged
  973  in preliminary and final audit letters; the number and amount of
  974  fines or penalties imposed; any reductions in overpayment
  975  amounts negotiated in settlement agreements or by other means;
  976  the amount of final agency determinations of overpayments; the
  977  amount deducted from federal claiming as a result of
  978  overpayments; the amount of overpayments recovered each year;
  979  the amount of cost of investigation recovered each year; the
  980  average length of time to collect from the time the case was
  981  opened until the overpayment is paid in full; the amount
  982  determined as uncollectible and the portion of the uncollectible
  983  amount subsequently reclaimed from the Federal Government; the
  984  number of providers, by type, that are terminated from
  985  participation in the Medicaid program as a result of fraud and
  986  abuse; and all costs associated with discovering and prosecuting
  987  cases of Medicaid overpayments and making recoveries in such
  988  cases. The report must also document actions taken to prevent
  989  overpayments and the number of providers prevented from
  990  enrolling in or reenrolling in the Medicaid program as a result
  991  of documented Medicaid fraud and abuse and must include policy
  992  recommendations necessary to prevent or recover overpayments and
  993  changes necessary to prevent and detect Medicaid fraud. All
  994  policy recommendations in the report must include a detailed
  995  fiscal analysis, including, but not limited to, implementation
  996  costs, estimated savings to the Medicaid program, and the return
  997  on investment. The agency must submit the policy recommendations
  998  and fiscal analyses in the report to the appropriate estimating
  999  conference, pursuant to s. 216.137, by February 15 of each year.
 1000  The agency and the Medicaid Fraud Control Unit of the Department
 1001  of Legal Affairs each must include detailed unit-specific
 1002  performance standards, benchmarks, and metrics in the report,
 1003  including projected cost savings to the state Medicaid program
 1004  during the following fiscal year.
 1005         (36) At least three times a year, The agency may shall
 1006  provide to a sample of each Medicaid recipients recipient or
 1007  their representatives through the distribution of explanations
 1008  his or her representative an explanation of benefits information
 1009  about services reimbursed by the Medicaid program for goods and
 1010  services to such recipients, including in the form of a letter
 1011  that is mailed to the most recent address of the recipient on
 1012  the record with the Department of Children and Families. The
 1013  explanation of benefits must include the patient’s name, the
 1014  name of the health care provider and the address of the location
 1015  where the service was provided, a description of all services
 1016  billed to Medicaid in terminology that should be understood by a
 1017  reasonable person, and information on how to report
 1018  inappropriate or incorrect billing to the agency or other law
 1019  enforcement entities for review or investigation. At least once
 1020  a year, the letter also must include information on how to
 1021  report criminal Medicaid fraud to, the Medicaid Fraud Control
 1022  Unit’s toll-free hotline number, and information about the
 1023  rewards available under s. 409.9203. The explanation of benefits
 1024  may not be mailed for Medicaid independent laboratory services
 1025  as described in s. 409.905(7) or for Medicaid certified match
 1026  services as described in ss. 409.9071 and 1011.70.
 1027         Section 15. Paragraph (e) of subsection (1) of section
 1028  409.975, Florida Statutes, is amended, to read:
 1029         409.975 Managed care plan accountability.—In addition to
 1030  the requirements of s. 409.967, plans and providers
 1031  participating in the managed medical assistance program shall
 1032  comply with the requirements of this section.
 1033         (1) PROVIDER NETWORKS.—Managed care plans must develop and
 1034  maintain provider networks that meet the medical needs of their
 1035  enrollees in accordance with standards established pursuant to
 1036  s. 409.967(2)(c). Except as provided in this section, managed
 1037  care plans may limit the providers in their networks based on
 1038  credentials, quality indicators, and price.
 1039         (e) Each managed care plan may must offer a network
 1040  contract to each home medical equipment and supplies provider in
 1041  the region which meets quality and fraud prevention and
 1042  detection standards established by the plan and which agrees to
 1043  accept the lowest price previously negotiated between the plan
 1044  and another such provider.
 1045         Section 16. Subsections (1) and (2) of section 409.979,
 1046  Florida Statutes, are amended to read:
 1047         409.979 Eligibility.—
 1048         (1) PREREQUISITE CRITERIA FOR ELIGIBILITY.—Medicaid
 1049  recipients who meet all of the following criteria are eligible
 1050  to receive long-term care services and must receive long-term
 1051  care services by participating in the long-term care managed
 1052  care program. The recipient must be:
 1053         (a) Sixty-five years of age or older, or age 18 or older
 1054  and eligible for Medicaid by reason of a disability.
 1055         (b) Determined by the Comprehensive Assessment Review and
 1056  Evaluation for Long-Term Care Services (CARES) preadmission
 1057  screening program to require:
 1058         1. Nursing facility care as defined in s. 409.985(3); or
 1059         2. Hospital level of care, for individuals diagnosed with
 1060  cystic fibrosis.
 1061         (2) ENROLLMENT OFFERS.—Subject to the availability of
 1062  funds, the Department of Elderly Affairs shall make offers for
 1063  enrollment to eligible individuals based on a wait-list
 1064  prioritization. Before making enrollment offers, the agency and
 1065  the Department of Elderly Affairs shall determine that
 1066  sufficient funds exist to support additional enrollment into
 1067  plans.
 1068         (a) A Medicaid recipient enrolled in one of the following
 1069  Medicaid home and community-based services waiver programs who
 1070  meets the eligibility criteria established in subsection (1) is
 1071  eligible to participate in the long-term care managed care
 1072  program and must be transitioned into the long-term care managed
 1073  care program by January 1, 2018:
 1074         1. Traumatic Brain and Spinal Cord Injury Waiver.
 1075         2. Adult Cystic Fibrosis Waiver.
 1076         3. Project AIDS Care Waiver.
 1077         (b) The agency shall seek federal approval to terminate the
 1078  Traumatic Brain and Spinal Cord Injury Waiver, the Adult Cystic
 1079  Fibrosis Waiver, and the Project AIDS Care Waiver once all
 1080  eligible Medicaid recipients have transitioned into the long
 1081  term care managed care program.
 1082         Section 17. Effective October 1, 2018, subsection (6) of
 1083  section 409.983, Florida Statutes, is amended to read:
 1084         409.983 Long-term care managed care plan payment.—In
 1085  addition to the payment provisions of s. 409.968, the agency
 1086  shall provide payment to plans in the long-term care managed
 1087  care program pursuant to this section.
 1088         (6) The agency shall establish nursing-facility-specific
 1089  payment rates for each licensed nursing home based on facility
 1090  costs adjusted for inflation and other factors as authorized in
 1091  the General Appropriations Act. Payments to long-term care
 1092  managed care plans shall be reconciled, as necessary, to
 1093  reimburse actual payments to nursing facilities resulting from
 1094  changes in nursing home per diem rates, but may not be
 1095  reconciled to actual days experienced by the long-term care
 1096  managed care plans.
 1097         Section 18. Subsection (27) of section 409.901, Florida
 1098  Statutes, is amended to read:
 1099         409.901 Definitions; ss. 409.901-409.920.—As used in ss.
 1100  409.901-409.920, except as otherwise specifically provided, the
 1101  term:
 1102         (27) “Third party” means an individual, entity, or program,
 1103  excluding Medicaid, that is, may be, could be, should be, or has
 1104  been liable for all or part of the cost of medical services
 1105  related to any medical assistance covered by Medicaid. A third
 1106  party includes a third-party administrator; or a pharmacy
 1107  benefits manager; a health insurer; a self-insured plan; a group
 1108  health plan, as defined in s. 607(1) of the Employee Retirement
 1109  Income Security Act of 1974; a service benefit plan; a managed
 1110  care organization; liability insurance, including self
 1111  insurance; no-fault insurance; workers’ compensation laws or
 1112  plans; or other parties that are, by statute, contract, or
 1113  agreement, legally responsible for payment of a claim for a
 1114  health care item or service.
 1115         Section 19. Subsection (4), paragraph (c) of subsection
 1116  (6), paragraph (h) of subsection (11), subsection (16),
 1117  paragraph (b) of subsection (17), and subsection (20) of section
 1118  409.910, Florida Statutes, are amended to read:
 1119         409.910 Responsibility for payments on behalf of Medicaid
 1120  eligible persons when other parties are liable.—
 1121         (4) After the agency has provided medical assistance under
 1122  the Medicaid program, it shall seek recovery of reimbursement
 1123  from third-party benefits to the limit of legal liability and
 1124  for the full amount of third-party benefits, but not in excess
 1125  of the amount of medical assistance paid by Medicaid, as to:
 1126         (a) Claims for which the agency has a waiver pursuant to
 1127  federal law; or
 1128         (b) Situations in which the agency learns of the existence
 1129  of a liable third party or in which third-party benefits are
 1130  discovered or become available after medical assistance has been
 1131  provided by Medicaid.
 1132         (6) When the agency provides, pays for, or becomes liable
 1133  for medical care under the Medicaid program, it has the
 1134  following rights, as to which the agency may assert independent
 1135  principles of law, which shall nevertheless be construed
 1136  together to provide the greatest recovery from third-party
 1137  benefits:
 1138         (c) The agency is entitled to, and has, an automatic lien
 1139  for the full amount of medical assistance provided by Medicaid
 1140  to or on behalf of the recipient for medical care furnished as a
 1141  result of any covered injury or illness for which a third party
 1142  is or may be liable, upon the collateral, as defined in s.
 1143  409.901.
 1144         1. The lien attaches automatically when a recipient first
 1145  receives treatment for which the agency may be obligated to
 1146  provide medical assistance under the Medicaid program. The lien
 1147  is perfected automatically at the time of attachment.
 1148         2. The agency is authorized to file a verified claim of
 1149  lien. The claim of lien shall be signed by an authorized
 1150  employee of the agency, and shall be verified as to the
 1151  employee’s knowledge and belief. The claim of lien may be filed
 1152  and recorded with the clerk of the circuit court in the
 1153  recipient’s last known county of residence or in any county
 1154  deemed appropriate by the agency. The claim of lien, to the
 1155  extent known by the agency, shall contain:
 1156         a. The name and last known address of the person to whom
 1157  medical care was furnished.
 1158         b. The date of injury.
 1159         c. The period for which medical assistance was provided.
 1160         d. The amount of medical assistance provided or paid, or
 1161  for which Medicaid is otherwise liable.
 1162         e. The names and addresses of all persons claimed by the
 1163  recipient to be liable for the covered injuries or illness.
 1164         3. The filing of the claim of lien pursuant to this section
 1165  shall be notice thereof to all persons.
 1166         4. If the claim of lien is filed within 3 years 1 year
 1167  after the later of the date when the last item of medical care
 1168  relative to a specific covered injury or illness was paid, or
 1169  the date of discovery by the agency of the liability of any
 1170  third party, or the date of discovery of a cause of action
 1171  against a third party brought by a recipient or his or her legal
 1172  representative, record notice shall relate back to the time of
 1173  attachment of the lien.
 1174         5. If the claim of lien is filed after 3 years 1 year after
 1175  the later of the events specified in subparagraph 4., notice
 1176  shall be effective as of the date of filing.
 1177         6. Only one claim of lien need be filed to provide notice
 1178  as set forth in this paragraph and shall provide sufficient
 1179  notice as to any additional or after-paid amount of medical
 1180  assistance provided by Medicaid for any specific covered injury
 1181  or illness. The agency may, in its discretion, file additional,
 1182  amended, or substitute claims of lien at any time after the
 1183  initial filing, until the agency has been repaid the full amount
 1184  of medical assistance provided by Medicaid or otherwise has
 1185  released the liable parties and recipient.
 1186         7. No release or satisfaction of any cause of action, suit,
 1187  claim, counterclaim, demand, judgment, settlement, or settlement
 1188  agreement shall be valid or effectual as against a lien created
 1189  under this paragraph, unless the agency joins in the release or
 1190  satisfaction or executes a release of the lien. An acceptance of
 1191  a release or satisfaction of any cause of action, suit, claim,
 1192  counterclaim, demand, or judgment and any settlement of any of
 1193  the foregoing in the absence of a release or satisfaction of a
 1194  lien created under this paragraph shall prima facie constitute
 1195  an impairment of the lien, and the agency is entitled to recover
 1196  damages on account of such impairment. In an action on account
 1197  of impairment of a lien, the agency may recover from the person
 1198  accepting the release or satisfaction or making the settlement
 1199  the full amount of medical assistance provided by Medicaid.
 1200  Nothing in this section shall be construed as creating a lien or
 1201  other obligation on the part of an insurer which in good faith
 1202  has paid a claim pursuant to its contract without knowledge or
 1203  actual notice that the agency has provided medical assistance
 1204  for the recipient related to a particular covered injury or
 1205  illness. However, notice or knowledge that an insured is, or has
 1206  been a Medicaid recipient within 1 year from the date of service
 1207  for which a claim is being paid creates a duty to inquire on the
 1208  part of the insurer as to any injury or illness for which the
 1209  insurer intends or is otherwise required to pay benefits.
 1210         8. The lack of a properly filed claim of lien shall not
 1211  affect the agency’s assignment or subrogation rights provided in
 1212  this subsection, nor shall it affect the existence of the lien,
 1213  but only the effective date of notice as provided in
 1214  subparagraph 5.
 1215         9. The lien created by this paragraph is a first lien and
 1216  superior to the liens and charges of any provider, and shall
 1217  exist for a period of 7 years, if recorded, after the date of
 1218  recording; and shall exist for a period of 7 years after the
 1219  date of attachment, if not recorded. If recorded, the lien may
 1220  be extended for one additional period of 7 years by rerecording
 1221  the claim of lien within the 90-day period preceding the
 1222  expiration of the lien.
 1223         10. The clerk of the circuit court for each county in the
 1224  state shall endorse on a claim of lien filed under this
 1225  paragraph the date and hour of filing and shall record the claim
 1226  of lien in the official records of the county as for other
 1227  records received for filing. The clerk shall receive as his or
 1228  her fee for filing and recording any claim of lien or release of
 1229  lien under this paragraph the total sum of $2. Any fee required
 1230  to be paid by the agency shall not be required to be paid in
 1231  advance of filing and recording, but may be billed to the agency
 1232  after filing and recording of the claim of lien or release of
 1233  lien.
 1234         11. After satisfaction of any lien recorded under this
 1235  paragraph, the agency shall, within 60 days after satisfaction,
 1236  either file with the appropriate clerk of the circuit court or
 1237  mail to any appropriate party, or counsel representing such
 1238  party, if represented, a satisfaction of lien in a form
 1239  acceptable for filing in Florida.
 1240         (11) The agency may, as a matter of right, in order to
 1241  enforce its rights under this section, institute, intervene in,
 1242  or join any legal or administrative proceeding in its own name
 1243  in one or more of the following capacities: individually, as
 1244  subrogee of the recipient, as assignee of the recipient, or as
 1245  lienholder of the collateral.
 1246         (h) Except as otherwise provided in this section, actions
 1247  to enforce the rights of the agency under this section shall be
 1248  commenced within 6 5 years after the date a cause of action
 1249  accrues, with the period running from the later of the date of
 1250  discovery by the agency of a case filed by a recipient or his or
 1251  her legal representative, or of discovery of any judgment,
 1252  award, or settlement contemplated in this section, or of
 1253  discovery of facts giving rise to a cause of action under this
 1254  section. Nothing in this paragraph affects or prevents a
 1255  proceeding to enforce a lien during the existence of the lien as
 1256  set forth in subparagraph (6)(c)9.
 1257         (16) Any transfer or encumbrance of any right, title, or
 1258  interest to which the agency has a right pursuant to this
 1259  section, with the intent, likelihood, or practical effect of
 1260  defeating, hindering, or reducing reimbursement to recovery by
 1261  the agency for reimbursement of medical assistance provided by
 1262  Medicaid, shall be deemed to be a fraudulent conveyance, and
 1263  such transfer or encumbrance shall be void and of no effect
 1264  against the claim of the agency, unless the transfer was for
 1265  adequate consideration and the proceeds of the transfer are
 1266  reimbursed in full to the agency, but not in excess of the
 1267  amount of medical assistance provided by Medicaid.
 1268         (17)
 1269         (b) If federal law limits the agency to reimbursement from
 1270  the recovered medical expense damages, a recipient, or his or
 1271  her legal representative, may contest the amount designated as
 1272  recovered medical expense damages payable to the agency pursuant
 1273  to the formula specified in paragraph (11)(f) by filing a
 1274  petition under chapter 120 within 21 days after the date of
 1275  payment of funds to the agency or after the date of placing the
 1276  full amount of the third-party benefits in the trust account for
 1277  the benefit of the agency pursuant to paragraph (a). The
 1278  petition shall be filed with the Division of Administrative
 1279  Hearings. For purposes of chapter 120, the payment of funds to
 1280  the agency or the placement of the full amount of the third
 1281  party benefits in the trust account for the benefit of the
 1282  agency constitutes final agency action and notice thereof. Final
 1283  order authority for the proceedings specified in this subsection
 1284  rests with the Division of Administrative Hearings. This
 1285  procedure is the exclusive method for challenging the amount of
 1286  third-party benefits payable to the agency. In order to
 1287  successfully challenge the amount designated as recovered
 1288  medical expenses payable to the agency, the recipient must
 1289  prove, by clear and convincing evidence, that the a lesser
 1290  portion of the total recovery which should be allocated as
 1291  reimbursement for past and future medical expenses is less than
 1292  the amount calculated by the agency pursuant to the formula set
 1293  forth in paragraph (11)(f). Alternatively, the recipient must
 1294  prove by clear and convincing evidence or that Medicaid provided
 1295  a lesser amount of medical assistance than that asserted by the
 1296  agency.
 1297         (20)(a) Entities providing health insurance as defined in
 1298  s. 624.603, health maintenance organizations and prepaid health
 1299  clinics as defined in chapter 641, and, on behalf of their
 1300  clients, third-party administrators, and pharmacy benefits
 1301  managers, and any other third parties, as defined in s.
 1302  409.901(27), which are legally responsible for payment of a
 1303  claim for a health care item or service as a condition of doing
 1304  business in the state or providing coverage to residents of this
 1305  state, shall provide such records and information as are
 1306  necessary to accomplish the purpose of this section, unless such
 1307  requirement results in an unreasonable burden.
 1308         (b)An entity must respond to a request for payment with
 1309  payment on the claim, a written request for additional
 1310  information with which to process the claim, or a written reason
 1311  for denial of the claim within 90 working days after receipt of
 1312  written proof of loss or claim for payment for a health care
 1313  item or service provided to a Medicaid recipient who is covered
 1314  by the entity. Failure to pay or deny a claim within 140 days
 1315  after receipt of the claim creates an uncontestable obligation
 1316  to pay the claim.
 1317         (a)The director of the agency and the Director of the
 1318  Office of Insurance Regulation of the Financial Services
 1319  Commission shall enter into a cooperative agreement for
 1320  requesting and obtaining information necessary to effect the
 1321  purpose and objective of this section.
 1322         1.The agency shall request only that information necessary
 1323  to determine whether health insurance as defined pursuant to s.
 1324  624.603, or those health services provided pursuant to chapter
 1325  641, could be, should be, or have been claimed and paid with
 1326  respect to items of medical care and services furnished to any
 1327  person eligible for services under this section.
 1328         2.All information obtained pursuant to subparagraph 1. is
 1329  confidential and exempt from s. 119.07(1). The agency shall
 1330  provide the information obtained pursuant to subparagraph 1. to
 1331  the Department of Revenue for purposes of administering the
 1332  state Title IV-D program. The agency and the Department of
 1333  Revenue shall enter into a cooperative agreement for purposes of
 1334  implementing this requirement.
 1335         3.The cooperative agreement or rules adopted under this
 1336  subsection may include financial arrangements to reimburse the
 1337  reporting entities for reasonable costs or a portion thereof
 1338  incurred in furnishing the requested information. Neither the
 1339  cooperative agreement nor the rules shall require the automation
 1340  of manual processes to provide the requested information.
 1341         (b)The agency and the Financial Services Commission
 1342  jointly shall adopt rules for the development and administration
 1343  of the cooperative agreement. The rules shall include the
 1344  following:
 1345         1.A method for identifying those entities subject to
 1346  furnishing information under the cooperative agreement.
 1347         2.A method for furnishing requested information.
 1348         3.Procedures for requesting exemption from the cooperative
 1349  agreement based on an unreasonable burden to the reporting
 1350  entity.
 1351         Section 20. Notwithstanding section 27 of chapter 2016-65,
 1352  Laws of Florida, and subject to federal approval of the
 1353  application to be a site for the Program of All-inclusive Care
 1354  for the Elderly (PACE), the Agency for Health Care
 1355  Administration shall contract with a not-for-profit
 1356  organization, formed by a partnership with a not-for-profit
 1357  hospital, a not-for-profit agency serving elders, and a not-for
 1358  profit hospice in Leon County. The not-for-profit PACE shall
 1359  serve eligible PACE enrollees in Gadsden, Jefferson, Leon, and
 1360  Wakulla Counties. The Agency for Health Care Administration, in
 1361  consultation with the Department of Elderly Affairs and subject
 1362  to an appropriation, shall approve up to 300 initial enrollees
 1363  for the additional PACE site.
 1364         Section 21. Section 17 of chapter 2011-61, Laws of Florida,
 1365  is amended to read:
 1366         Section 17. Notwithstanding s. 430.707, Florida Statutes,
 1367  and subject to federal approval of the application to be a site
 1368  for the Program of All-inclusive Care for the Elderly, the
 1369  Agency for Health Care Administration shall contract with one
 1370  private health care organization, the sole member of which is a
 1371  private, not-for-profit corporation that owns and manages health
 1372  care organizations which provide comprehensive long-term care
 1373  services, including nursing home, assisted living, independent
 1374  housing, home care, adult day care, and care management, with a
 1375  board-certified, trained geriatrician as the medical director.
 1376  This organization shall provide these services to frail and
 1377  elderly persons who reside in Indian River, Martin, Okeechobee,
 1378  Palm Beach, and St. Lucie Counties County. The organization is
 1379  exempt from the requirements of chapter 641, Florida Statutes.
 1380  The agency, in consultation with the Department of Elderly
 1381  Affairs and subject to an appropriation, shall approve up to 150
 1382  initial enrollees who reside in Palm Beach County and up to 150
 1383  initial enrollees who reside in Martin County in the Program of
 1384  All-inclusive Care for the Elderly established by this
 1385  organization to serve elderly persons who reside in Palm Beach
 1386  County.
 1387         Section 22. Section 29 of chapter 2016-65, Laws of Florida,
 1388  is amended to read:
 1389         Section 29. Subject to federal approval of the application
 1390  to be a site for the Program of All-inclusive Care for the
 1391  Elderly (PACE), the Agency for Health Care Administration shall
 1392  contract with one private, not-for-profit hospice organization
 1393  located in Lake County which operates health care organizations
 1394  licensed in Hospice Areas 7B and 3E and which provides
 1395  comprehensive services, including hospice and palliative care,
 1396  to frail elders who reside in these service areas. The
 1397  organization is exempt from the requirements of chapter 641,
 1398  Florida Statutes. The agency, in consultation with the
 1399  Department of Elderly Affairs and subject to the appropriation
 1400  of funds by the Legislature, shall approve up to 150 initial
 1401  enrollees in the Program of All-inclusive Care for the Elderly
 1402  established by the organization to serve frail elders who reside
 1403  in Hospice Service Areas 7B and 3E. The agency, in consultation
 1404  with the department and subject to an appropriation, shall
 1405  approve up to 150 enrollees in the Program of All-inclusive Care
 1406  for the Elderly established by this organization to serve frail
 1407  elders who reside in Hospice Service Area 7C.
 1408         Section 23. Subsection (3) of section 391.055, Florida
 1409  Statutes, is amended to read:
 1410         391.055 Service delivery systems.—
 1411         (3) The Children’s Medical Services network may contract
 1412  with school districts participating in the certified school
 1413  match program pursuant to ss. 409.908(21) 409.908(22) and
 1414  1011.70 for the provision of school-based services, as provided
 1415  for in s. 409.9071, for Medicaid-eligible children who are
 1416  enrolled in the Children’s Medical Services network.
 1417         Section 24. Subsection (7) of section 393.0661, Florida
 1418  Statutes, is amended to read:
 1419         393.0661 Home and community-based services delivery system;
 1420  comprehensive redesign.—The Legislature finds that the home and
 1421  community-based services delivery system for persons with
 1422  developmental disabilities and the availability of appropriated
 1423  funds are two of the critical elements in making services
 1424  available. Therefore, it is the intent of the Legislature that
 1425  the Agency for Persons with Disabilities shall develop and
 1426  implement a comprehensive redesign of the system.
 1427         (7) The agency shall collect premiums or cost sharing
 1428  pursuant to s. 409.906(13)(c) 409.906(13)(d).
 1429         Section 25. Paragraph (a) of subsection (4) of section
 1430  409.968, Florida Statutes, is amended to read:
 1431         409.968 Managed care plan payments.—
 1432         (4)(a) Subject to a specific appropriation and federal
 1433  approval under s. 409.906(13)(d) 409.906(13)(e), the agency
 1434  shall establish a payment methodology to fund managed care plans
 1435  for flexible services for persons with severe mental illness and
 1436  substance use disorders, including, but not limited to,
 1437  temporary housing assistance. A managed care plan eligible for
 1438  these payments must do all of the following:
 1439         1. Participate as a specialty plan for severe mental
 1440  illness or substance use disorders or participate in counties
 1441  designated by the General Appropriations Act;
 1442         2. Include providers of behavioral health services pursuant
 1443  to chapters 394 and 397 in the managed care plan’s provider
 1444  network; and
 1445         3. Document a capability to provide housing assistance
 1446  through agreements with housing providers, relationships with
 1447  local housing coalitions, and other appropriate arrangements.
 1448         Section 26. Subsection (3) of section 427.0135, Florida
 1449  Statutes, is amended to read:
 1450         427.0135 Purchasing agencies; duties and responsibilities.
 1451  Each purchasing agency, in carrying out the policies and
 1452  procedures of the commission, shall:
 1453         (3) Not procure transportation disadvantaged services
 1454  without initially negotiating with the commission, as provided
 1455  in s. 287.057(3)(e)12., or unless otherwise authorized by
 1456  statute. If the purchasing agency, after consultation with the
 1457  commission, determines that it cannot reach mutually acceptable
 1458  contract terms with the commission, the purchasing agency may
 1459  contract for the same transportation services provided in a more
 1460  cost-effective manner and of comparable or higher quality and
 1461  standards. The Medicaid agency shall implement this subsection
 1462  in a manner consistent with s. 409.908(18) 409.908(19) and as
 1463  otherwise limited or directed by the General Appropriations Act.
 1464         Section 27. Subsections (1) and (5) of section 1011.70,
 1465  Florida Statutes, are amended to read:
 1466         1011.70 Medicaid certified school funding maximization.—
 1467         (1) Each school district, subject to the provisions of ss.
 1468  409.9071 and 409.908(21) 409.908(22) and this section, is
 1469  authorized to certify funds provided for a category of required
 1470  Medicaid services termed “school-based services,” which are
 1471  reimbursable under the federal Medicaid program. Such services
 1472  shall include, but not be limited to, physical, occupational,
 1473  and speech therapy services, behavioral health services, mental
 1474  health services, transportation services, Early Periodic
 1475  Screening, Diagnosis, and Treatment (EPSDT) administrative
 1476  outreach for the purpose of determining eligibility for
 1477  exceptional student education, and any other such services, for
 1478  the purpose of receiving federal Medicaid financial
 1479  participation. Certified school funding shall not be available
 1480  for the following services:
 1481         (a) Family planning.
 1482         (b) Immunizations.
 1483         (c) Prenatal care.
 1484         (5) Lab schools, as authorized under s. 1002.32, shall be
 1485  authorized to participate in the Medicaid certified school match
 1486  program on the same basis as school districts subject to the
 1487  provisions of subsections (1)-(4) and ss. 409.9071 and
 1488  409.908(21) 409.908(22).
 1489         Section 28. For the 2017-2018 fiscal year, $578,918,460 in
 1490  nonrecurring funds from the Grants and Donations Trust Fund and
 1491  $924,467,313 in nonrecurring funds from the Medical Care Trust
 1492  Fund are appropriated to the Agency for Health Care
 1493  Administration for the purpose of implementing a Low-Income Pool
 1494  Program. These funds shall be held in reserve. Subject to the
 1495  federal approval of the final terms and conditions of the Low
 1496  Income Pool, the Agency for Health Care Administration shall
 1497  submit a budget amendment requesting release of the funds held
 1498  in reserve pursuant to chapter 216, Florida Statutes. If the
 1499  chair and vice chair of the Legislative Budget Commission or the
 1500  President of the Senate and the Speaker of the House of
 1501  Representatives object in writing to a proposed amendment within
 1502  14 days after notification, the Governor shall void the action.
 1503  In addition to the proposed amendment, the agency must submit:
 1504  the Reimbursement and Funding Methodology Document, as specified
 1505  in the terms and conditions, which documents permissible Low
 1506  Income Pool expenditures; a proposed distribution model by
 1507  entity; and a proposed listing of entities contributing
 1508  Intergovernmental Transfers to support the state match required.
 1509  Low-Income Pool payments to providers under this section are
 1510  contingent upon the nonfederal share being provided through
 1511  intergovernmental transfers in the Grants and Donations Trust
 1512  Fund. In the event the funds are not available in the Grants and
 1513  Donations Trust Fund, the State of Florida is not obligated to
 1514  make payments under this section. This section expires July 1,
 1515  2018.
 1516         Section 29. For the 2017-2018 fiscal year, $94,414,800 in
 1517  nonrecurring funds from the Grants and Donations Trust Fund and
 1518  $151,585,200 in nonrecurring funds from the Medical Care Trust
 1519  Funds are appropriated to the Agency for Health Care
 1520  Administration to continue medical school faculty physician
 1521  supplemental payments. These funds shall be held in reserve.
 1522  These funds shall be used to continue supplemental payments for
 1523  services provided by doctors of medicine and osteopathy, as well
 1524  as other licensed health care practitioners acting under the
 1525  supervision of those doctors, who are employed by or under
 1526  contract with a medical school in Florida. These funds may also
 1527  be used for pass-through, sub-capitation, differential fee, or
 1528  directed lump sum payments for doctors of medicine and
 1529  osteopathy, as well as other licensed health care practitioners
 1530  acting under the supervision of those doctors, who are employed
 1531  by or under contract with a medical school in Florida. Subject
 1532  to federal approval to continue the supplemental and/or pass
 1533  through, sub-capitation, differential fee, or directed lump sum
 1534  payments, the Agency for Health Care Administration may submit a
 1535  budget amendment requesting release of the funds held in reserve
 1536  pursuant to the provisions of chapter 216, Florida Statutes. If
 1537  the chair and vice chair of the Legislative Budget Commission or
 1538  the President of the Senate and the Speaker of the House of
 1539  Representatives object in writing to a proposed amendment within
 1540  14 days following notification, the Governor shall void the
 1541  action. The amendment shall include the federal approvals, a
 1542  proposed distribution model by entity, and a proposed listing of
 1543  entities contributing Intergovernmental Transfers to support the
 1544  state match required. Payments to providers under this section
 1545  are contingent upon the nonfederal share being provided through
 1546  intergovernmental transfers in the Grants and Donations Trust
 1547  Fund. In the event the funds are not available in the Grants and
 1548  Donations Trust Fund, the State of Florida is not obligated to
 1549  make payments under this section. This section expires July 1,
 1550  2018.
 1551         Section 30. Except as otherwise expressly provided in this
 1552  act, this act shall take effect July 1, 2017.
 1553  
 1554  ================= T I T L E  A M E N D M E N T ================
 1555  And the title is amended as follows:
 1556         Delete everything before the enacting clause
 1557  and insert:
 1558                        A bill to be entitled                      
 1559         An act relating to health care; amending s. 210.20,
 1560         F.S.; providing that a specified percentage of the
 1561         cigarette tax, up to a specified amount, be paid
 1562         annually to the Florida Consortium of National Cancer
 1563         Institute Centers Program, rather than the Sanford
 1564         Burnham Medical Research Institute; requiring that the
 1565         funds be used to advance cures for cancers afflicting
 1566         pediatric populations through basic or applied
 1567         research; amending s. 381.922, F.S.; revising the
 1568         goals of the William G. “Bill” Bankhead, Jr., and
 1569         David Coley Cancer Research Program to include
 1570         identifying ways to increase pediatric enrollment in
 1571         cancer clinical trials; establishing the Live Like
 1572         Bella Initiative to advance progress toward curing
 1573         pediatric cancer, subject to an appropriation;
 1574         amending s. 394.9082, F.S.; revising the reporting
 1575         requirements of the acute care services utilization
 1576         database; requiring the Department of Children and
 1577         Families to post certain data on its website; amending
 1578         s. 395.602, F.S.; revising the definition of the term
 1579         “rural hospital” to include a hospital classified as a
 1580         sole community hospital, regardless of the number of
 1581         licensed beds; amending s. 400.179, F.S.; providing
 1582         that certain fees deposited into the Medicaid nursing
 1583         home overpayment account in the Grants and Donations
 1584         Trust Fund may be used by the agency for enhanced
 1585         payments to nursing facilities as specified in the
 1586         General Appropriations Act or other law; amending s.
 1587         409.904, F.S.; authorizing the agency to make payments
 1588         for medical assistance and related services on behalf
 1589         of a person diagnosed with acquired immune deficiency
 1590         syndrome who meets certain criteria, subject to the
 1591         availability of moneys and specified limitations;
 1592         amending s. 409.906, F.S.; deleting a provision
 1593         relating to consolidation of waiver services to
 1594         conform to changes made by the act; amending s.
 1595         409.908, F.S.; revising requirements related to the
 1596         long-term care reimbursement plan and cost reporting
 1597         system; requiring the calculation of separate prices
 1598         for each patient care subcomponent based on specified
 1599         cost reports; providing that certain ceilings and
 1600         targets apply only to providers being reimbursed on a
 1601         cost-based system; requiring implementation of a
 1602         prospective payment methodology for rate setting
 1603         purposes; providing parameters; expanding the direct
 1604         care subcomponent to include allowable therapy and
 1605         dietary costs; specifying that allowable ancillary
 1606         costs are included in the indirect care cost
 1607         subcomponent; requiring that nursing home prospective
 1608         payment rates be rebased at a specified interval;
 1609         authorizing the payment of a direct care supplemental
 1610         payment to certain providers; specifying the amount
 1611         providers will be reimbursed for a specified period of
 1612         time, which may be a cost-based rate or a prospective
 1613         payment rate; providing for expiration of this
 1614         reimbursement mechanism on a specified date; requiring
 1615         the agency to reimburse providers on a cost-based rate
 1616         or a rebased prospective payment rate, beginning on a
 1617         specified date; requiring that Medicaid pay
 1618         deductibles and coinsurance for certain X-ray services
 1619         provided in an assisted living facility or in the
 1620         patient’s home; deleting a provision relating to
 1621         reimbursement rate parameters for certain Medicaid
 1622         providers; authorizing the agency to receive funds
 1623         from certain governmental entities for specified
 1624         purposes; providing requirements for letters of
 1625         agreement executed by a local governmental entity;
 1626         amending s. 409.9082, F.S.; revising the uses of
 1627         quality assessment and federal matching funds to
 1628         include the partial funding of the quality incentive
 1629         payment program for nursing facilities that exceed
 1630         quality benchmarks; amending s. 409.909, F.S.;
 1631         providing that the agency shall make payments and
 1632         distribute funds to qualifying institutions in
 1633         addition to hospitals under the Statewide Medicaid
 1634         Residency Program; amending s. 409.911, F.S.; updating
 1635         obsolete language; amending s. 409.9119, F.S.;
 1636         revising criteria for the participation of hospitals
 1637         in the disproportionate share program for specialty
 1638         hospitals for children; amending s. 409.913, F.S.;
 1639         removing a requirement that the agency provide each
 1640         Medicaid recipient with an explanation of benefits;
 1641         authorizing the agency to provide an explanation of
 1642         benefits to a sample of Medicaid recipients or their
 1643         representatives; amending s. 409.975, F.S.;
 1644         authorizing, rather than requiring, a managed care
 1645         plan to offer a network contract to certain medical
 1646         equipment and supplies providers in the region;
 1647         amending s. 409.979, F.S.; expanding eligibility for
 1648         long-term care services to include hospital level of
 1649         care for certain individuals diagnosed with cystic
 1650         fibrosis; revising eligibility for certain Medicaid
 1651         recipients in the long-term care managed care program;
 1652         amending s. 409.983, F.S.; eliminating the requirement
 1653         that the agency consider facility costs adjusted for
 1654         inflation and other factors in the establishment of
 1655         certain payment rates for nursing facilities; amending
 1656         s. 409.901, F.S.; revising the definition of the term
 1657         “third party”; amending s. 409.910, F.S.; revising
 1658         provisions relating to responsibility for Medicaid
 1659         payments in settlement proceedings; extending period
 1660         of time for filing a claim of lien filed for purposes
 1661         of third-party liability; extending the period of time
 1662         within which the agency is authorized to pursue
 1663         certain causes of action; revising procedures for a
 1664         recipient to contest the amount payable to the agency
 1665         when federal law limits reimbursement under certain
 1666         circumstances; requiring certain entities responsible
 1667         for payment of claims to provide certain records and
 1668         information and respond to requests for payment of
 1669         claims within a specified timeframe as a condition of
 1670         doing business in the state; providing circumstances
 1671         under which such parties are obligated to pay claims;
 1672         deleting provisions relating to cooperative agreements
 1673         between the agency, the Office of Insurance
 1674         Regulation, and the Department of Revenue; requiring
 1675         the agency to contract with a specified not-for-profit
 1676         organization, a not-for-profit agency serving elders,
 1677         and a not-for-profit hospice in Leon County to be a
 1678         site for the Program for All-inclusive Care for the
 1679         Elderly (PACE), subject to federal approval of the
 1680         application site; authorizing PACE to serve eligible
 1681         enrollees in Gadsden, Jefferson, Leon, and Wakulla
 1682         Counties; requiring the agency, in consultation with
 1683         the department, to approve a certain number of initial
 1684         enrollees in PACE at the new site, subject to an
 1685         appropriation; amending s. 17 of chapter 2011-61, Laws
 1686         of Florida; requiring the agency, in consultation with
 1687         the department, to approve a certain number of initial
 1688         enrollees in PACE to serve frail elders who reside in
 1689         certain counties; amending s. 29 of chapter 2016-65,
 1690         Laws of Florida; requiring the agency, in consultation
 1691         with the department, to approve a certain number of
 1692         enrollees in the PACE established to serve frail
 1693         elders who reside in Hospice Service Area 7C;
 1694         requiring the agency, in consultation with the
 1695         department, to approve a certain number of initial
 1696         enrollees in PACE at the new site, subject to certain
 1697         conditions; amending ss. 391.055, 393.0661, 409.968,
 1698         427.0135, and 1011.70, F.S.; conforming cross
 1699         references; providing appropriations; providing
 1700         effective dates.