House Bill 4535e1

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                                          HB 4535, First Engrossed



  1                      A bill to be entitled

  2         An act relating to health care; providing an

  3         important state interest; amending ss. 154.301,

  4         154.302, 154.304, 154.306, 154.308, 154.309,

  5         154.31, 154.3105, 154.312, 154.314, and

  6         154.316, F.S., relating to health care

  7         responsibility for indigents; revising short

  8         title; revising definitions; limiting the

  9         maximum amount a county may be required to pay

10         an out-of-county hospital; providing hospitals

11         additional time to notify counties of admission

12         or treatment of out-of-county patients;

13         revising language and conforming references;

14         providing penalties; amending s. 154.504, F.S.;

15         limiting applicability of copayments under the

16         Primary Care for Children and Families

17         Challenge Grant Program; amending s. 198.30,

18         F.S.; requiring certain reports of estates of

19         decedents to be provided to the Agency for

20         Health Care Administration; amending ss.

21         240.4075 and 240.4076, F.S., relating the

22         Nursing Student Loan Forgiveness Program, the

23         Nursing Student Loan Forgiveness Trust Fund,

24         and the nursing scholarship program;

25         transferring powers, duties, and functions with

26         respect thereto from the Department of Health

27         to the Department of Education; creating ss.

28         381.0022 and 402.115, F.S.; authorizing the

29         Department of Health and the Department of

30         Children and Family Services to share

31         confidential and exempt information; amending


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                                          HB 4535, First Engrossed



  1         s. 381.004, F.S., relating to HIV testing;

  2         providing a penalty and increasing existing

  3         penalties; amending s. 383.04, F.S.; requiring

  4         an effective and recommended prophylactic to be

  5         instilled in the eyes of newborns; amending s.

  6         384.34, F.S., relating to sexually

  7         transmissible diseases; providing a penalty and

  8         increasing existing penalties; amending s.

  9         409.903, F.S.; providing Medicaid eligibility

10         standards for certain persons; conforming

11         references; amending s. 409.910, F.S.; revising

12         Medicaid third-party liability payment

13         requirements; revising requirements for payment

14         of attorney's fees; amending s. 409.912, F.S.,

15         relating to purchase of Medicaid services;

16         deleting duplicate language relating to

17         demonstration projects; authorizing competitive

18         negotiations for home health services;

19         authorizing establishment of parenteral/enteral

20         pharmacy services providers; requiring

21         establishment of an outpatient specialty

22         services pilot project; providing definitions;

23         providing criteria for participation; requiring

24         evaluation and a report to the Governor and

25         Legislature; eliminating a prohibition on

26         certain contracts with federally qualified

27         health centers; amending s. 414.028, F.S.;

28         revising membership of local WAGES coalitions;

29         amending s. 414.28, F.S.; reclassifying the

30         priority of certain claims filed against the

31         estate of a public assistance recipient;


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                                          HB 4535, First Engrossed



  1         amending s. 641.386, F.S.; correcting a cross

  2         reference; amending s. 766.101, F.S.; including

  3         a committee of the Department of Health in the

  4         definition of "medical review committee" for

  5         purposes of certain immunity from liability;

  6         naming the Carl S. Lytle, M.D., Memorial Health

  7         Facility in Marion County; repealing s. 383.05,

  8         F.S., relating to a requirement that the

  9         Department of Health offer a prophylactic for

10         the eyes of newborns free to certain persons;

11         providing effective dates.

12

13  Be It Enacted by the Legislature of the State of Florida:

14

15         Section 1.  The Legislature finds that the provisions

16  of this act which amend ss. 154.301 through 154.316, Florida

17  Statutes, fulfill the important state interest of promoting

18  the legislative intent of the Florida Health Care

19  Responsibility Act, as that intent is expressed in s. 154.302,

20  Florida Statutes.

21         Section 2.  Section 154.301, Florida Statutes, is

22  amended to read:

23         154.301  Short title.--Sections 154.301-154.316 may be

24  cited as "The Florida Health Care Responsibility Act of 1988."

25         Section 3.  Section 154.302, Florida Statutes, is

26  amended to read:

27         154.302  Legislative intent.--The Legislature finds

28  that certain hospitals provide a disproportionate share of

29  charity care for persons who are indigent, and not able to pay

30  their medical bills, and who are not eligible for

31  government-funded programs.  The burden of absorbing the cost


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                                          HB 4535, First Engrossed



  1  of this uncompensated charity care is borne by the hospital,

  2  the private pay patients, and, many times, by the taxpayers in

  3  the county when the hospital is subsidized by tax revenues.

  4  The Legislature further finds that it is inequitable for

  5  hospitals and taxpayers of one county to be expected to

  6  subsidize the care of out-of-county indigent persons. Finally,

  7  the Legislature declares that the state and the counties must

  8  share the responsibility of assuring that adequate and

  9  affordable health care is available to all Floridians.

10  Therefore, it is the intent of the Legislature to place the

11  ultimate financial obligation for the out-of-county hospital

12  care of qualified indigent patients on the county in which the

13  indigent patient resides.

14         Section 4.  Section 154.304, Florida Statutes, is

15  amended to read:

16         154.304  Definitions.--As used in this part, the term

17  For the purpose of this act:

18         (1)  "Agency" means the Agency for Health Care

19  Administration.

20         (1)  "Board" means the Health Care Board as established

21  in chapter 408.

22         (2)  "Certification determination procedures" means the

23  process used by the county of residence or the agency

24  department to determine a person's county of residence.

25         (3)  "Certified resident" means a United States citizen

26  or lawfully admitted alien who has been certified as a

27  resident of the county by a person designated by the county

28  governing body to provide certification determination

29  procedures for the county in which the patient resides; by the

30  agency department if such county does not make a determination

31  of residency within 60 days after of receiving a certified


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                                          HB 4535, First Engrossed



  1  letter from the treating hospital; or by the agency department

  2  if the hospital appeals the decision of the county making such

  3  determination.

  4         (4)  "Charity care obligation" means the minimum amount

  5  of uncompensated charity care as reported to the agency for

  6  Health Care Administration, based on the hospital's most

  7  recent audited actual experience, which must be provided by a

  8  participating hospital or a regional referral hospital before

  9  the hospital is eligible to be reimbursed by a county under

10  the provisions of this part act.  That amount shall be the

11  ratio of uncompensated charity care days compared to total

12  acute care inpatient days, which shall be equal to or greater

13  than 2 percent.

14         (5)  "Department" means the Department of Health.

15         (6)  "Eligibility determination procedures" means the

16  process used by a county or the agency department to evaluate

17  a person's financial eligibility, eligibility for state-funded

18  or federally funded programs, and the availability of

19  insurance, in order to document a person as a qualified

20  indigent for the purpose of this part act.

21         (7)  "Hospital," for the purposes of this act, means an

22  establishment as defined in s. 395.002 and licensed by the

23  agency department which qualifies as either a participating

24  hospital or as a regional referral hospital pursuant to this

25  section; except that, hospitals operated by the department

26  shall not be considered participating hospitals for purposes

27  of this part act.

28         (8)  "Participating hospital" means a hospital which is

29  eligible to receive reimbursement under the provisions of this

30  part act because it has been certified by the agency board as

31  having met its charity care obligation and has either:


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                                          HB 4535, First Engrossed



  1         (a)  A formal signed agreement with a county or

  2  counties to treat such county's indigent patients; or

  3         (b)  Demonstrated to the agency board that at least 2.5

  4  percent of its uncompensated charity care, as reported to the

  5  agency board, is generated by out-of-county residents.

  6         (9)  "Qualified indigent person" or "qualified indigent

  7  patient" means a person who has been determined pursuant to s.

  8  154.308 to have an average family income, for the 12 months

  9  preceding the determination, which is below 100 percent of the

10  federal nonfarm poverty level; who is not eligible to

11  participate in any other government program that which

12  provides hospital care; who has no private insurance or has

13  inadequate private insurance; and who does not reside in a

14  public institution as defined under the medical assistance

15  program for the needy under Title XIX of the Social Security

16  Act, as amended.

17         (10)  "Regional referral hospital" means any hospital

18  that which is eligible to receive reimbursement under the

19  provision of this part act because it has met its charity care

20  obligation and it meets the definition of teaching hospital as

21  defined in s. 408.07.

22         Section 5.  Section 154.306, Florida Statutes, is

23  amended to read:

24         154.306  Financial responsibility for certified

25  residents who are qualified indigent patients treated at an

26  out-of-county participating hospital or regional referral

27  hospital.--Ultimate financial responsibility for treatment

28  received at a participating hospital or a regional referral

29  hospital by a qualified indigent patient who is a certified

30  resident of a county in the State of Florida, but is not a

31  resident of the county in which the participating hospital or


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                                          HB 4535, First Engrossed



  1  regional referral hospital is located, is shall be the

  2  obligation of the county of which the qualified indigent

  3  patient is a resident. Each county shall is directed to

  4  reimburse participating hospitals or regional referral

  5  hospitals as provided for in this part act, and shall provide

  6  or arrange for indigent eligibility determination procedures

  7  and resident certification determination procedures as

  8  provided for in rules developed to implement this part act.

  9  The agency department, or any county determining eligibility

10  of a qualified indigent, shall provide to the county of

11  residence, upon request, a copy of any documents, forms, or

12  other information, as determined by rule, which may be used in

13  making an eligibility determination.

14         (1)  A county's financial obligation for each certified

15  resident who qualifies as an indigent patient under this part

16  act, and who has received treatment at an out-of-county

17  hospital, shall not exceed 45 days per county fiscal year at a

18  rate of payment equivalent to 100 percent of the per diem

19  reimbursement rate currently in effect for the out-of-county

20  hospital under the medical assistance program for the needy

21  under Title XIX of the Social Security Act, as amended, except

22  that those counties that are at their 10-mill cap on October

23  1, 1991, shall reimburse hospitals for such services at not

24  less than 80 percent of the hospital Medicaid per diem.

25  However, nothing in this section shall preclude a hospital

26  that which has a formal signed agreement with a county to

27  treat such county's indigents from negotiating a higher or

28  lower per diem rate with the county.  In addition, No county

29  shall be required by this act to pay more than the equivalent

30  of $4 per capita in the county's fiscal year.  The agency

31  department shall calculate and certify to each county by March


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                                          HB 4535, First Engrossed



  1  1 of each year, the maximum amount the county may be required

  2  to pay under this act by multiplying the most recent official

  3  state population estimate for the total population of the

  4  county by $4 per capita.  Each county shall certify to the

  5  agency department within 60 days after of the end of the

  6  county's fiscal year, or upon reaching the $4 per capita

  7  threshold, should that occur before the end of the fiscal

  8  year, the amount of reimbursement it paid to all out-

  9  of-county hospitals under this part act.  The maximum amount a

10  county may be required to pay to out-of-county hospitals for

11  care provided to qualified indigent residents may be reduced

12  by up to one-half, provided that the amount not paid has or is

13  being spent for in-county hospital care provided to qualified

14  indigent residents.

15         (2)  No county shall be required to pay for any

16  elective or nonemergency admissions or services at an

17  out-of-county hospital for a qualified indigent who is a

18  certified resident of the county if when the county provides

19  funding for such services and the services are available at a

20  local hospital in the county where the indigent resides; or

21  the out-of-county hospital has not obtained prior written

22  authorization and approval for such hospital admission or

23  service, provided that the resident county has established a

24  procedure to authorize and approve such admissions.

25         (3)  The county where the indigent resides shall, in

26  all instances, be liable for the cost of treatment provided to

27  a qualified indigent patient at an out-of-county hospital for

28  any emergency medical condition which will deteriorate from

29  failure to provide such treatment if and when such condition

30  is determined and documented by the attending physician to be

31  of an emergency nature; provided that the patient has been


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                                          HB 4535, First Engrossed



  1  certified to be a resident of such county pursuant to s.

  2  154.309.

  3         (4)  No county shall be liable for payment for

  4  treatment of a qualified indigent who is a certified resident

  5  and has received services at an out-of-county participating

  6  hospital or regional referral hospital, until such time as

  7  that hospital has documented to the agency board and the

  8  agency board has determined that it has met its charity care

  9  obligation based on the most recent audited actual experience.

10         Section 6.  Section 154.308, Florida Statutes, is

11  amended to read:

12         154.308  Determination of patient's eligibility;

13  spend-down program.--

14         (1)  The agency department, pursuant to s. 154.3105,

15  shall adopt rules which provide statewide eligibility

16  determination procedures, forms, and criteria which shall be

17  used by all counties for determining whether a person

18  financially qualifies as indigent for the purposes of this

19  part act.

20         (a)  The criteria used to determine eligibility must

21  shall be uniform statewide and shall include, at a minimum,

22  which assets, if any, may be included in the determination,

23  which verification of income shall be required, which

24  categories of persons shall be eligible, and any other

25  criteria which may be determined as necessary.

26         (b)  The methodology for determining by which to

27  determine financial eligibility must shall also be uniform

28  statewide such that any county or the state could determine

29  whether a person is would be a qualified indigent under this

30  act.

31


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                                          HB 4535, First Engrossed



  1         (2)  Determination of financial eligibility as a

  2  qualified indigent may occur either prior to a person's

  3  admission to a participating hospital or a regional referral

  4  hospital or subsequent to such admission.

  5         (3)  Determination of whether a hospital patient not

  6  already determined eligible meets or does not meet eligibility

  7  standards to financially qualify as indigent for the purpose

  8  of this act shall be made within 60 days following

  9  notification by the hospital requesting a determination of

10  indigency, by certified letter, to the county known or

11  believed to be the county of residence or to the agency

12  department.  If, for any reason, the county or agency

13  department is unable to determine a patient's eligibility

14  within the allotted timeframe, the hospital shall be notified

15  in writing of the reason or reasons.

16         (4)  A patient determined eligible as a qualified

17  indigent for the purpose of this act subsequent to his or her

18  admission to a participating hospital or a regional referral

19  hospital shall be considered to have been qualified upon

20  admission. Such determination shall be made by a person

21  designated by the governing board of the county to make such a

22  determination or by the agency department.

23         (5)  Notwithstanding any other provision of this part

24  within this act, any county may establish thresholds of

25  financial eligibility to qualify indigents under this act

26  which are less restrictive than 100 percent of the federal

27  poverty line.  However, a no county may not establish

28  eligibility thresholds which are more restrictive than 100

29  percent of the federal poverty line.

30         (6)  Notwithstanding any other provision of this part

31  act, there is hereby established a spend-down program for


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                                          HB 4535, First Engrossed



  1  persons who would otherwise qualify as qualified indigent

  2  persons, but whose average family income, for the 12 months

  3  preceding the determination, is between 100 percent and 150

  4  percent of the federal poverty level.  The agency department

  5  shall adopt, by rule, procedures for the spend-down program.

  6  The rule shall require that in order to qualify for the

  7  spend-down program, a person must have incurred bills for

  8  hospital care which would otherwise have qualified for payment

  9  under this part.  This subsection does not apply to persons

10  who are residents of counties that are at their 10-mill cap on

11  October 1, 1991.

12         Section 7.  Section 154.309, Florida Statutes, is

13  amended to read:

14         154.309  Certification of county of residence.--

15         (1)  The agency department, pursuant to s. 154.3105,

16  shall adopt rules for certification determination procedures

17  which provide criteria to be used for determining a qualified

18  indigent's county of residence.  Such criteria must shall

19  include, at a minimum, how and to what extent residency shall

20  be verified and how a hospital shall be notified of a

21  patient's certification or the inability to certify a patient.

22         (2)  In all instances, the county known or thought to

23  be the county of residence shall be given first opportunity to

24  certify a resident.  If the county known or thought to be the

25  county of residence fails to, or is unable to, make such

26  determination within 60 days following written notification by

27  a hospital, the agency department shall determine residency

28  utilizing the same criteria required by rule as the county,

29  and the agency's department's determination of residency shall

30  be binding on the county of residence.  The county determined

31  as the residence of any qualified indigent under this act


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                                          HB 4535, First Engrossed



  1  shall be liable to reimburse the treating hospital pursuant to

  2  s. 154.306.  If, for any reason, a county or the agency

  3  department is unable to determine an indigent's residency, the

  4  hospital shall be notified in writing of such reason or

  5  reasons.

  6         Section 8.  Section 154.31, Florida Statutes, is

  7  amended to read:

  8         154.31  Obligation of participating hospital or

  9  regional referral hospital.--As a condition of participation

10  accepting the procedures of this act, each participating

11  hospital or regional referral hospital in Florida shall be

12  obligated to admit for emergency treatment all Florida

13  residents, without regard to county of residence, who meet the

14  eligibility standards established pursuant to s. 154.308 and

15  who meet the medical standards for admission to such

16  institutions. If the agency department determines that a

17  participating hospital or a regional referral hospital has

18  failed to meet the requirements of this section, the agency

19  department may impose an administrative fine, not to exceed

20  $5,000 per incident, and suspend the hospital from eligibility

21  for reimbursement under the provisions of this part act.

22         Section 9.  Section 154.3105, Florida Statutes, is

23  amended to read:

24         154.3105  Rules.--Rules governing the Health Care

25  Responsibility Act of 1988 shall be developed by the agency

26  department based on recommendations of a work group consisting

27  of equal representation by the agency department, the hospital

28  industry, and the counties.  County representatives to this

29  work group shall be appointed by the Florida Association of

30  Counties.  Hospital representatives to this work group shall

31  be appointed by the associations representing those hospitals


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                                          HB 4535, First Engrossed



  1  which best represent the positions of the hospitals most

  2  likely to be eligible for reimbursement.  Rules governing the

  3  various aspects of this part act shall be adopted by the

  4  agency. department.  Such rules shall address, at a minimum:

  5         (1)  Eligibility determination procedures and criteria.

  6         (2)  Certification determination procedures and methods

  7  of notification to hospitals.

  8         Section 10.  Section 154.312, Florida Statutes, is

  9  amended to read:

10         154.312  Procedure for settlement of disputes.--All

11  disputes among counties, the board, the agency department, a

12  participating hospital, or a regional referral hospital shall

13  be resolved by order as provided in chapter 120. Hearings held

14  under this provision shall be conducted in the same manner as

15  provided in ss. 120.569 and 120.57, except that the presiding

16  officer's order shall be final agency action.  Cases filed

17  under chapter 120 may combine all disputes between parties.

18  Notwithstanding any other provisions of this part, if when a

19  county alleges that a residency determination or eligibility

20  determination made by the agency department is incorrect, the

21  burden of proof shall be on the county to demonstrate that

22  such determination is, in light of the total record, not

23  supported by the evidence.

24         Section 11.  Section 154.314, Florida Statutes, is

25  amended to read:

26         154.314  Certification of the State of Florida.--

27         (1)  In the event payment for the costs of services

28  rendered by a participating hospital or a regional referral

29  hospital is not received from the responsible county within 90

30  days of receipt of a statement for services rendered to a

31  qualified indigent who is a certified resident of the county,


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                                          HB 4535, First Engrossed



  1  or if the payment is disputed and said payment is not received

  2  from the county determined to be responsible within 60 days of

  3  the date of exhaustion of all administrative and legal

  4  remedies as provided in chapter 120, the hospital shall

  5  certify to the Comptroller the amount owed by the county.

  6         (2)  The Comptroller shall have no not longer than 45

  7  days from the date of receiving the hospital's certified

  8  notice to forward the amount delinquent to the appropriate

  9  hospital from any funds due to the county under any

10  revenue-sharing or tax-sharing fund established by the state,

11  except as otherwise provided by the State Constitution.  The

12  Comptroller shall provide the Governor and the fiscal

13  appropriations and finance and tax committees in the House of

14  Representatives and the Senate with a quarterly accounting of

15  the amounts certified by hospitals as owed by counties and the

16  amount paid to hospitals out of any revenue or tax sharing

17  funds due to the county.

18         Section 12.  Section 154.316, Florida Statutes, is

19  amended to read:

20         154.316  Hospital's responsibility to notify of

21  admission of indigent patients.--

22         (1)  Any hospital admitting or treating any

23  out-of-county patient who may qualify as indigent under this

24  part act shall, within 30 10 days after admitting or treating

25  such patient, notify the county known, or thought to be, the

26  county of residency of such admission, or such hospital

27  forfeits its right to reimbursement.

28         (2)  It shall be the responsibility of any

29  participating hospital or regional referral hospital to

30  initiate any eligibility or certification determination

31  procedures with any appropriate state or county agency which


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                                          HB 4535, First Engrossed



  1  can determine financial eligibility or certify an indigent as

  2  a resident under this part act.

  3         Section 13.  Subsection (1) of section 154.504, Florida

  4  Statutes, is amended to read:

  5         154.504  Eligibility and benefits.--

  6         (1)  Any county or counties may apply for a primary

  7  care for children and families challenge grant to provide

  8  primary health care services to children and families with

  9  incomes of up to 150 percent of the federal poverty level.

10  Participants shall pay no monthly premium for participation,

11  but shall be required to pay a copayment at the time a service

12  is provided. Copayments may be paid from sources other than

13  the participant, including, but not limited to, the child's or

14  parent's employer, or other private sources.  Copayments shall

15  not be applicable for patients receiving services from health

16  care providers practicing under the provisions of s. 766.1115.

17         Section 14.  Section 198.30, Florida Statutes, is

18  amended to read:

19         198.30  Circuit judge to furnish department with names

20  of decedents, etc.--Each circuit judge of this state shall, on

21  or before the 10th day of every month, notify the department

22  of the names of all decedents; the names and addresses of the

23  respective personal representatives, administrators, or

24  curators appointed; the amount of the bonds, if any, required

25  by the court; and the probable value of the estates, in all

26  estates of decedents whose wills have been probated or

27  propounded for probate before the circuit judge or upon which

28  letters testamentary or upon whose estates letters of

29  administration or curatorship have been sought or granted,

30  during the preceding month; and such report shall contain any

31  other information which the circuit judge may have concerning


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                                          HB 4535, First Engrossed



  1  the estates of such decedents.  In addition, a copy of this

  2  report shall be provided to the Agency for Health Care

  3  Administration. A circuit judge shall also furnish forthwith

  4  such further information, from the records and files of the

  5  circuit court in regard to such estates, as the department may

  6  from time to time require.

  7         Section 15.  Section 240.4075, Florida Statutes, is

  8  amended to read:

  9         240.4075  Nursing Student Loan Forgiveness Program.--

10         (1)  To encourage qualified personnel to seek

11  employment in areas of this state in which critical nursing

12  shortages exist, there is established the Nursing Student Loan

13  Forgiveness Program.  The primary function of the program is

14  to increase employment and retention of registered nurses and

15  licensed practical nurses in nursing homes and hospitals in

16  the state and in state-operated medical and health care

17  facilities, birth centers, federally sponsored community

18  health centers and teaching hospitals by making repayments

19  toward loans received by students from federal or state

20  programs or commercial lending institutions for the support of

21  postsecondary study in accredited or approved nursing

22  programs.

23         (2)  To be eligible, a candidate must have graduated

24  from an accredited or approved nursing program and have

25  received a Florida license as a licensed practical nurse or a

26  registered nurse or a Florida certificate as an advanced

27  registered nurse practitioner.

28         (3)  Only loans to pay the costs of tuition, books, and

29  living expenses shall be covered, at an amount not to exceed

30  $4,000 for each year of education towards the degree obtained.

31


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                                          HB 4535, First Engrossed



  1         (4)  Receipt of funds pursuant to this program shall be

  2  contingent upon continued proof of employment in the

  3  designated facilities in this state. Loan principal payments

  4  shall be made by the Department of Education Health directly

  5  to the federal or state programs or commercial lending

  6  institutions holding the loan as follows:

  7         (a)  Twenty-five percent of the loan principal and

  8  accrued interest shall be retired after the first year of

  9  nursing;

10         (b)  Fifty percent of the loan principal and accrued

11  interest shall be retired after the second year of nursing;

12         (c)  Seventy-five percent of the loan principal and

13  accrued interest shall be retired after the third year of

14  nursing; and

15         (d)  The remaining loan principal and accrued interest

16  shall be retired after the fourth year of nursing.

17

18  In no case may payment for any nurse exceed $4,000 in any

19  12-month period.

20         (5)  There is created the Nursing Student Loan

21  Forgiveness Trust Fund to be administered by the Department of

22  Education Health pursuant to this section and s. 240.4076 and

23  department rules.  The Comptroller shall authorize

24  expenditures from the trust fund upon receipt of vouchers

25  approved by the Department of Education Health.  All moneys

26  collected from the private health care industry and other

27  private sources for the purposes of this section shall be

28  deposited into the Nursing Student Loan Forgiveness Trust

29  Fund. Any balance in the trust fund at the end of any fiscal

30  year shall remain therein and shall be available for carrying

31  out the purposes of this section and s. 240.4076.


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                                          HB 4535, First Engrossed



  1         (6)  In addition to licensing fees imposed under

  2  chapter 464, there is hereby levied and imposed an additional

  3  fee of $5, which fee shall be paid upon licensure or renewal

  4  of nursing licensure. Revenues collected from the fee imposed

  5  in this subsection shall be deposited in the Nursing Student

  6  Loan Forgiveness Trust Fund of the Department of Education

  7  Health and will be used solely for the purpose of carrying out

  8  the provisions of this section and s. 240.4076. Up to 50

  9  percent of the revenues appropriated to implement this

10  subsection may be used for the nursing scholarship program

11  established pursuant to s. 240.4076.

12         (7)(a)  Funds contained in the Nursing Student Loan

13  Forgiveness Trust Fund which are to be used for loan

14  forgiveness for those nurses employed by hospitals, birth

15  centers, and nursing homes must be matched on a

16  dollar-for-dollar basis by contributions from the employing

17  institutions, except that this provision shall not apply to

18  state-operated medical and health care facilities, county

19  health departments, federally sponsored community health

20  centers, or teaching hospitals as defined in s. 408.07.

21         (b)  All Nursing Student Loan Forgiveness Trust Fund

22  moneys shall be invested pursuant to s. 18.125.  Interest

23  income accruing to that portion of the trust fund not matched

24  shall increase the total funds available for loan forgiveness

25  and scholarships. Pledged contributions shall not be eligible

26  for matching prior to the actual collection of the total

27  private contribution for the year.

28         (8)  The Department of Education Health may solicit

29  technical assistance relating to the conduct of this program

30  from the Department of Health Education.

31


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                                          HB 4535, First Engrossed



  1         (9)  The Department of Education Health is authorized

  2  to recover from the Nursing Student Loan Forgiveness Trust

  3  Fund its costs for administering the Nursing Student Loan

  4  Forgiveness Program.

  5         (10)  The Department of Education Health may adopt

  6  rules necessary to administer this program.

  7         (11)  This section shall be implemented only as

  8  specifically funded.

  9         Section 16.  Section 240.4076, Florida Statutes, is

10  amended to read:

11         240.4076  Nursing scholarship program.--

12         (1)  There is established within the Department of

13  Education Health a scholarship program for the purpose of

14  attracting capable and promising students to the nursing

15  profession.

16         (2)  A scholarship applicant shall be enrolled as a

17  full-time or part-time student in the upper division of an

18  approved nursing program leading to the award of a

19  baccalaureate or any advanced registered nurse practitioner

20  degree or be enrolled as a full-time or part-time student in

21  an approved program leading to the award of an associate

22  degree in nursing or a diploma in nursing.

23         (3)  A scholarship may be awarded for no more than 2

24  years, in an amount not to exceed $8,000 per year.  However,

25  registered nurses pursuing an advanced registered nurse

26  practitioner degree may receive up to $12,000 per year.

27  Beginning July 1, 1998, these amounts shall be adjusted by the

28  amount of increase or decrease in the consumer price index for

29  urban consumers published by the United States Department of

30  Commerce.

31


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                                          HB 4535, First Engrossed



  1         (4)  Credit for repayment of a scholarship shall be as

  2  follows:

  3         (a)  For each full year of scholarship assistance, the

  4  recipient agrees to work for 12 months at a health care

  5  facility in a medically underserved area as approved by the

  6  Department of Education Health. Scholarship recipients who

  7  attend school on a part-time basis shall have their employment

  8  service obligation prorated in proportion to the amount of

  9  scholarship payments received.

10         (b)  Eligible health care facilities include

11  state-operated medical or health care facilities, county

12  health departments, federally sponsored community health

13  centers, or teaching hospitals as defined in s. 408.07. The

14  recipient shall be encouraged to complete the service

15  obligation at a single employment site.  If continuous

16  employment at the same site is not feasible, the recipient may

17  apply to the department for a transfer to another approved

18  health care facility.

19         (c)  Any recipient who does not complete an appropriate

20  program of studies or who does not become licensed shall repay

21  to the Department of Education Health, on a schedule to be

22  determined by the department, the entire amount of the

23  scholarship plus 18 percent interest accruing from the date of

24  the scholarship payment. Moneys repaid shall be deposited into

25  the Nursing Student Loan Forgiveness Trust Fund established in

26  s. 240.4075.  However, the department may provide additional

27  time for repayment if the department finds that circumstances

28  beyond the control of the recipient caused or contributed to

29  the default.

30         (d)  Any recipient who does not accept employment as a

31  nurse at an approved health care facility or who does not


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                                          HB 4535, First Engrossed



  1  complete 12 months of approved employment for each year of

  2  scholarship assistance received shall repay to the Department

  3  of Education Health an amount equal to two times the entire

  4  amount of the scholarship plus interest accruing from the date

  5  of the scholarship payment at the maximum allowable interest

  6  rate permitted by law.  Repayment shall be made within 1 year

  7  of notice that the recipient is considered to be in default.

  8  However, the department may provide additional time for

  9  repayment if the department finds that circumstances beyond

10  the control of the recipient caused or contributed to the

11  default.

12         (5)  Scholarship payments shall be transmitted to the

13  recipient upon receipt of documentation that the recipient is

14  enrolled in an approved nursing program. The Department of

15  Education Health shall develop a formula to prorate payments

16  to scholarship recipients so as not to exceed the maximum

17  amount per academic year.

18         (6)  The Department of Education Health shall adopt

19  rules, including rules to address extraordinary circumstances

20  that may cause a recipient to default on either the school

21  enrollment or employment contractual agreement, to implement

22  this section and may solicit technical assistance relating to

23  the conduct of this program from the Department of Health

24  Education.

25         (7)  The Department of Education Health is authorized

26  to recover from the Nursing Student Loan Forgiveness Trust

27  Fund its costs for administering the nursing scholarship

28  program.

29         Section 17.  All statutory powers, duties and

30  functions, records, rules, personnel, property, and unexpended

31  balances of appropriations, allocations, or other funds, of


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                                          HB 4535, First Engrossed



  1  the Department of Health relating to the Nursing Student Loan

  2  Forgiveness Program and the Nursing Student Loan Forgiveness

  3  Trust Fund, as created in s. 240.4075, Florida Statutes, and

  4  the Nursing scholarship program, as created in s. 240.4076,

  5  Florida Statutes, are transferred by a type two transfer, as

  6  provided for in s. 20.06(2), Florida Statutes, from the

  7  Department of Health to the Department of Education. Such

  8  transfer shall take effect July 1, 1998. Any rules adopted by

  9  or for the Department of Health for the administration and

10  operation of the Nursing Student Loan Forgiveness Program, the

11  Nursing Student Loan Forgiveness Trust Fund, and the nursing

12  scholarship program are included in such transfer.

13         Section 18.  Section 381.0022, Florida Statutes, is

14  created to read:

15         381.0022  Sharing confidential or exempt

16  information.--Notwithstanding any other provision of law to

17  the contrary, the Department of Health and the Department of

18  Children and Family Services may share confidential or exempt

19  information on clients served by both agencies.  Information

20  so exchanged remains confidential or exempt as provided by

21  law.

22         Section 19.  Subsection (6) of section 381.004, Florida

23  Statutes, is amended to read:

24         381.004  Testing for human immunodeficiency virus.--

25         (6)  PENALTIES.--

26         (a)  Any violation of this section by a facility or

27  licensed health care provider shall be a ground for

28  disciplinary action contained in the facility's or

29  professional's respective licensing chapter.

30         (b)  Any person who violates the confidentiality

31  provisions of this section and s. 951.27 commits a felony of


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                                          HB 4535, First Engrossed



  1  the third misdemeanor of the first degree, punishable as

  2  provided in ss. s. 775.082, or s. 775.083, 775.084, and

  3  775.0877(7).

  4         (c)  Any person who obtains information that identifies

  5  an individual who has a sexually transmissible disease

  6  including human immunodeficiency virus or acquired

  7  immunodeficiency syndrome, who knew or should have known the

  8  nature of the information and maliciously, or for monetary

  9  gain, disseminates this information or otherwise makes this

10  information known to any other person, except by providing it

11  either to a physician or nurse employed by the department or

12  to a law enforcement agency, commits a felony of the third

13  degree, punishable as provided in ss. 775.082, 775.083,

14  775.084, and 775.0877(7).

15         Section 20.  Section 383.04, Florida Statutes, is

16  amended to read:

17         383.04  Prophylactic required for eyes of

18  infants.--Every physician, midwife, or other person in

19  attendance at the birth of a child in the state is required to

20  instill or have instilled into the eyes of the baby within 1

21  hour after birth an effective prophylactic recommended by the

22  Committee on Infectious Diseases of the American Academy of

23  Pediatrics a 1-percent fresh solution of silver nitrate (with

24  date of manufacture marked on container), two drops of the

25  solution to be dropped into each eye after the eyelids have

26  been opened, or some equally effective prophylactic approved

27  by the Department of Health, for the prevention of neonatal

28  blindness from ophthalmia neonatorum. This section shall not

29  apply to cases where the parents shall file with the

30  physician, midwife, or other person in attendance at the birth

31  of a child written objections on account of religious beliefs


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                                          HB 4535, First Engrossed



  1  contrary to the use of drugs.  In such case the physician,

  2  midwife, or other person in attendance shall maintain a record

  3  that such measures were or were not employed and attach

  4  thereto any written objection.

  5         Section 21.  Section 384.34, Florida Statutes, is

  6  amended to read:

  7         384.34  Penalties.--

  8         (1)  Any person who violates the provisions of s.

  9  384.24(1) commits a misdemeanor of the first degree,

10  punishable as provided in s. 775.082 or s. 775.083.

11         (2)  Any person who violates the provisions of s.

12  384.26 or s. 384.29 commits a felony of the third misdemeanor

13  of the first degree, punishable as provided in ss. s. 775.082,

14  or s. 775.083, 775.084, and 775.0877(7).

15         (3)  Any person who maliciously disseminates any false

16  information or report concerning the existence of any sexually

17  transmissible disease commits a felony of the third is guilty

18  of a misdemeanor of the second degree, punishable as provided

19  in ss. s. 775.082, or s. 775.083, 775.084, and 775.0877(7).

20         (4)  Any person who violates the provisions of the

21  department's rules pertaining to sexually transmissible

22  diseases may be punished by a fine not to exceed $500 for each

23  violation. Any penalties enforced under this subsection shall

24  be in addition to other penalties provided by this act.

25         (5)  Any person who violates the provisions of s.

26  384.24(2) commits a felony of the third degree, punishable as

27  provided in ss. 775.082, 775.083, 775.084, and 775.0877(7).

28         (6)  Any person who obtains information that identifies

29  an individual who has a sexually transmissible disease, who

30  knew or should have known the nature of the information and

31  maliciously, or for monetary gain, disseminates this


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                                          HB 4535, First Engrossed



  1  information or otherwise makes this information known to any

  2  other person, except by providing it either to a physician or

  3  nurse employed by the Department of Health or to a law

  4  enforcement agency, commits a felony of the third degree,

  5  punishable as provided in ss. 775.082, 775.083, 775.084, and

  6  775.0877(7).

  7         Section 22.  Section 402.115, Florida Statutes, is

  8  created to read:

  9         402.115  Sharing confidential or exempt

10  information.--Notwithstanding any other provision of law to

11  the contrary, the Department of Health and the Department of

12  Children and Family Services may share confidential or exempt

13  information on clients served by both agencies.  Information

14  so exchanged remains confidential or exempt as provided by

15  law.

16         Section 23.  The introductory paragraph and subsections

17  (1) and (8) of section 409.903, Florida Statutes, are amended

18  to read:

19         409.903  Mandatory payments for eligible persons.--The

20  agency department shall make payments for medical assistance

21  and related services on behalf of the following persons who

22  the agency department determines to be eligible, subject to

23  the income, assets, and categorical eligibility tests set

24  forth in federal and state law.  Payment on behalf of these

25  Medicaid eligible persons is subject to the availability of

26  moneys and any limitations established by the General

27  Appropriations Act or chapter 216.

28         (1)  Low-income families with children are eligible for

29  Medicaid provided they meet the following requirements:

30  Persons who receive payments from or are determined eligible

31  to participate in the WAGES Program, and certain persons who


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                                          HB 4535, First Engrossed



  1  would be eligible but do not meet certain technical

  2  requirements. This group includes, but is not limited to:

  3         (a)  The family includes a dependent child who is

  4  living with a caretaker relative. Low-income, single-parent

  5  families and their children.

  6         (b)  The family's income does not exceed the gross

  7  income test limit. Low-income, two-parent families in which at

  8  least one parent is disabled or otherwise incapacitated.

  9         (c)  The family's countable income and resources do not

10  exceed the applicable aid-to-families-with-dependent-children

11  (AFDC) income and resource standards under the AFDC state plan

12  in effect in July 1996, except as amended in the Medicaid

13  state plan to conform as closely as possible to the

14  requirements of the WAGES Program as created in s. 414.015, to

15  the extent permitted by federal law. Certain unemployed

16  two-parent families and their children.

17         (8)  A person who is age 65 or over or is determined by

18  the agency department to be disabled, whose income is at or

19  below 100 percent of the most current federal poverty level

20  and whose assets do not exceed limitations established by the

21  agency department.  However, the agency department may only

22  pay for premiums, coinsurance, and deductibles, as required by

23  federal law, unless additional coverage is provided for any or

24  all members of this group by s. 409.904(1).

25         Section 24.  Paragraph (f) of subsection (12) and

26  subsection (18) of section 409.910, Florida Statutes, are

27  amended to read:

28         409.910  Responsibility for payments on behalf of

29  Medicaid-eligible persons when other parties are liable.--

30         (12)  The department may, as a matter of right, in

31  order to enforce its rights under this section, institute,


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                                          HB 4535, First Engrossed



  1  intervene in, or join any legal or administrative proceeding

  2  in its own name in one or more of the following capacities:

  3  individually, as subrogee of the recipient, as assignee of the

  4  recipient, or as lienholder of the collateral.

  5         (f)  Notwithstanding any provision in this section to

  6  the contrary, in the event of an action in tort against a

  7  third party in which the recipient or his or her legal

  8  representative is a party which results in a and in which the

  9  amount of any judgment, award, or settlement from a third

10  party, third-party benefits, excluding medical coverage as

11  defined in subparagraph 4., after reasonable costs and

12  expenses of litigation, is an amount equal to or less than 200

13  percent of the amount of medical assistance provided by

14  Medicaid less any medical coverage paid or payable to the

15  department, then distribution of the amount recovered shall be

16  distributed as follows:

17         1.  After attorney's fees and taxable costs as defined

18  by the Florida Rules of Civil Procedure, one-half of the

19  remaining recovery shall be paid to the department up to the

20  total amount of medical assistance provided by Medicaid.

21         2.  The remaining amount of the recovery shall be paid

22  to the recipient.

23         3.  For purposes of calculating the department's

24  recovery of medical assistance benefits paid, the fee for

25  services of an attorney retained by the recipient or his or

26  her legal representative shall be calculated at 25 percent of

27  the judgment, award, or settlement.

28         1.  Any fee for services of an attorney retained by the

29  recipient or his or her legal representative shall not exceed

30  an amount equal to 25 percent of the recovery, after

31


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                                          HB 4535, First Engrossed



  1  reasonable costs and expenses of litigation, from the

  2  judgment, award, or settlement.

  3         2.  After attorney's fees, two-thirds of the remaining

  4  recovery shall be designated for past medical care and paid to

  5  the department for medical assistance provided by Medicaid.

  6         3.  The remaining amount from the recovery shall be

  7  paid to the recipient.

  8         4.  For purposes of this paragraph, "medical coverage"

  9  means any benefits under health insurance, a health

10  maintenance organization, a preferred provider arrangement, or

11  a prepaid health clinic, and the portion of benefits

12  designated for medical payments under coverage for workers'

13  compensation, personal injury protection, and casualty.

14         (18)  A recipient or his or her legal representative or

15  any person representing, or acting as agent for, a recipient

16  or the recipient's legal representative, who has notice,

17  excluding notice charged solely by reason of the recording of

18  the lien pursuant to paragraph (6)(d), or who has actual

19  knowledge of the department's rights to third-party benefits

20  under this section, who receives any third-party benefit or

21  proceeds therefrom for a covered illness or injury, is

22  required either to pay the department, within 60 days after

23  receipt of settlement proceeds, the full amount of the

24  third-party benefits, but not in excess of the total medical

25  assistance provided by Medicaid, or to place the full amount

26  of the third-party benefits in a trust account for the benefit

27  of the department pending judicial or administrative

28  determination of the department's right thereto. Proof that

29  any such person had notice or knowledge that the recipient had

30  received medical assistance from Medicaid, and that

31  third-party benefits or proceeds therefrom were in any way


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                                          HB 4535, First Engrossed



  1  related to a covered illness or injury for which Medicaid had

  2  provided medical assistance, and that any such person

  3  knowingly obtained possession or control of, or used,

  4  third-party benefits or proceeds and failed either to pay the

  5  department the full amount required by this section or to hold

  6  the full amount of third-party benefits or proceeds in trust

  7  pending judicial or administrative determination, unless

  8  adequately explained, gives rise to an inference that such

  9  person knowingly failed to credit the state or its agent for

10  payments received from social security, insurance, or other

11  sources, pursuant to s. 414.39(4)(b), and acted with the

12  intent set forth in s. 812.014(1).

13         (a)  The department is authorized to investigate and to

14  request appropriate officers or agencies of the state to

15  investigate suspected criminal violations or fraudulent

16  activity related to third-party benefits, including, without

17  limitation, ss. 409.325 and 812.014. Such requests may be

18  directed, without limitation, to the Medicaid Fraud Control

19  Unit of the Office of the Attorney General, or to any state

20  attorney. Pursuant to s. 409.913, the Attorney General has

21  primary responsibility to investigate and control Medicaid

22  fraud.

23         (b)  In carrying out duties and responsibilities

24  related to Medicaid fraud control, the department may subpoena

25  witnesses or materials within or outside the state and,

26  through any duly designated employee, administer oaths and

27  affirmations and collect evidence for possible use in either

28  civil or criminal judicial proceedings.

29         (c)  All information obtained and documents prepared

30  pursuant to an investigation of a Medicaid recipient, the

31  recipient's legal representative, or any other person relating


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                                          HB 4535, First Engrossed



  1  to an allegation of recipient fraud or theft is confidential

  2  and exempt from s. 119.07(1):

  3         1.  Until such time as the department takes final

  4  agency action;

  5         2.  Until such time as the Attorney General refers the

  6  case for criminal prosecution;

  7         3.  Until such time as an indictment or criminal

  8  information is filed by a state attorney in a criminal case;

  9  or

10         4.  At all times if otherwise protected by law.

11         Section 25.  Paragraph (c) of subsection (3), paragraph

12  (c) of subsection (4), paragraph (c) of present subsection

13  (18), and present subsection (26) of section 409.912, Florida

14  Statutes, are amended, subsections (8) through (13) and (14)

15  through (33) are renumbered as subsections (9) through (14)

16  and (16) through (35), respectively, and new subsections (8),

17  (15), and (36) are added to said section, to read:

18         409.912  Cost-effective purchasing of health care.--The

19  agency shall purchase goods and services for Medicaid

20  recipients in the most cost-effective manner consistent with

21  the delivery of quality medical care.  The agency shall

22  maximize the use of prepaid per capita and prepaid aggregate

23  fixed-sum basis services when appropriate and other

24  alternative service delivery and reimbursement methodologies,

25  including competitive bidding pursuant to s. 287.057, designed

26  to facilitate the cost-effective purchase of a case-managed

27  continuum of care. The agency shall also require providers to

28  minimize the exposure of recipients to the need for acute

29  inpatient, custodial, and other institutional care and the

30  inappropriate or unnecessary use of high-cost services.

31         (3)  The agency may contract with:


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                                          HB 4535, First Engrossed



  1         (c)  A federally qualified health center or an entity

  2  owned by one or more federally qualified health centers or an

  3  entity owned by other migrant and community health centers

  4  receiving non-Medicaid financial support from the Federal

  5  Government to provide health care services on a prepaid or

  6  fixed-sum basis to recipients.  Such prepaid health care

  7  services entity must be licensed under parts I and III of

  8  chapter 641 by January 1, 1998, but shall be prohibited from

  9  serving Medicaid recipients on a prepaid basis, until such

10  licensure has been obtained.  However, such an entity is

11  exempt from s. 641.225 if the entity meets the requirements

12  specified in subsections (16) (14) and (17) (15).

13         (4)  The agency may contract with any public or private

14  entity otherwise authorized by this section on a prepaid or

15  fixed-sum basis for the provision of health care services to

16  recipients.

17         (c)  The agency is authorized to establish no more than

18  four demonstration projects with provider service networks to

19  test Medicaid direct contracting.  However, no such

20  demonstration project shall be established with a federally

21  qualified health center, nor shall any provider service

22  network under contract with the agency pursuant to this

23  paragraph include a federally qualified health center in its

24  provider network.  One demonstration project must be located

25  in Orange County.  The demonstration projects may be

26  reimbursed on a fee-for-service or prepaid basis.  A provider

27  service network that is reimbursed by the agency on a prepaid

28  basis shall be exempt from parts I and III of chapter 641, but

29  must meet appropriate financial reserve, quality assurance,

30  and patient rights requirements as established by the agency.

31  The agency shall award contracts on a competitive-bid basis


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                                          HB 4535, First Engrossed



  1  and shall select bidders based upon price and quality of care.

  2  Medicaid recipients assigned to a demonstration project shall

  3  be chosen equally from those who would otherwise have been

  4  assigned to prepaid plans and MediPass.  The agency is

  5  authorized to seek federal Medicaid waivers as necessary to

  6  implement the provisions of this section.  A demonstration

  7  project awarded pursuant to this paragraph shall be for 2

  8  years from the date of implementation.

  9         (8)  The agency may provide cost-effective purchasing

10  of home health services through competitive negotiation

11  pursuant to s. 287.057.  The agency is authorized to request

12  appropriate waivers from the federal Health Care Financing

13  Administration in order to competitively bid home health

14  services.

15         (15)  The agency may establish a separate pharmacy

16  provider type entitled parenteral/enteral pharmacy.  The

17  agency is authorized to request appropriate waivers if

18  required from the federal Health Care Financing Administration

19  in order to establish the pharmacy provider type entitled

20  parenteral/enteral pharmacy.  Reimbursement for

21  parenteral/enteral pharmacy services must include the

22  following components:

23         (a)  A single, all inclusive fee to cover all costs

24  except the cost of the primary therapeutic agent.

25         (b)  Reimbursement for the primary therapeutic agent

26  which shall be based upon the estimated acquisition cost.

27         (20)(18)  Any entity contracting with the agency

28  pursuant to this section to provide health care services to

29  Medicaid recipients is prohibited from engaging in any of the

30  following practices or activities:

31


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                                          HB 4535, First Engrossed



  1         (c)  Granting or offering of any monetary or other

  2  valuable consideration for enrollment, except as authorized by

  3  subsection (23) (21).

  4         (28)(26)  Beginning July 1, 1996, the agency shall

  5  perform choice counseling, enrollments, and disenrollments for

  6  Medicaid recipients who are eligible for MediPass or managed

  7  care plans.  Notwithstanding the prohibition contained in

  8  paragraph (20) (18)(f), managed care plans may perform

  9  preenrollments of Medicaid recipients under the supervision of

10  the agency or its agents.  For the purposes of this section,

11  "preenrollment" means the provision of marketing and

12  educational materials to a Medicaid recipient and assistance

13  in completing the application forms, but shall not include

14  actual enrollment into a managed care plan.  An application

15  for enrollment shall not be deemed complete until the agency

16  or its agent verifies that the recipient made an informed,

17  voluntary choice.  The agency, in cooperation with the

18  Department of Children and Family Health and Rehabilitative

19  Services, may test new marketing initiatives to inform

20  Medicaid recipients about their managed care options at

21  selected sites.  The agency shall report to the Legislature on

22  the effectiveness of such initiatives.  The agency may

23  contract with a third party to perform managed care plan and

24  MediPass choice-counseling, enrollment, and disenrollment

25  services for Medicaid recipients and is authorized to adopt

26  rules to implement such services.  Until October 1, 1996, or

27  the receipt of necessary federal waivers, whichever is

28  earlier, the agency shall adjust the capitation rate to cover

29  any implementation, staff, or other costs associated with

30  enrollment, disenrollment, and choice-counseling activities.

31  Thereafter, the agency may adjust the capitation rate only to


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                                          HB 4535, First Engrossed



  1  cover the costs of a third-party choice-counseling,

  2  enrollment, and disenrollment contract, and for agency

  3  supervision and management of the managed care plan

  4  choice-counseling, enrollment, and disenrollment contract.

  5         (36)  The agency shall issue a request for proposal or

  6  intent to negotiate to implement, on a demonstration basis, a

  7  Medicaid managed care outpatient specialty services pilot

  8  project in one rural county and one urban county in the state.

  9  As used in this subsection, the term "outpatient specialty

10  services" means clinical laboratory, diagnostic imaging, and

11  specified home medical services to include durable medical

12  equipment, prosthetics and orthotics, and infusion therapy.

13         (a)  The entities awarded the contracts to provide

14  Medicaid managed care outpatient specialty services shall, at

15  a minimum, meet the following criteria:

16         1.  Be licensed by the Department of Insurance under

17  part II of chapter 641.

18         2.  Be experienced in providing outpatient specialty

19  services.

20         3.  Demonstrate to the satisfaction of the agency that

21  they provide high-quality services to their patients.

22         4.  Demonstrate that they have in place a complaints

23  and grievance process to assist Medicaid recipients enrolled

24  in the pilot project to resolve complaints and grievances.

25         (b)  The pilot project shall operate for a period of 3

26  years.  The objective of the pilot project shall be to

27  determine the cost-effectiveness and effects on utilization,

28  access, and quality of providing outpatient specialty services

29  to Medicaid recipients on a prepaid, capitated basis.

30         (c)  The agency shall conduct a quality assurance

31  review of the entities awarded contracts to provide services


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                                          HB 4535, First Engrossed



  1  under the pilot project, each year the pilot project is in

  2  effect. Such entities are responsible for all expenses

  3  incurred by the agency in conducting a quality assurance

  4  review.

  5         (d)  The entities awarded contracts to provide

  6  outpatient specialty services to Medicaid recipients shall

  7  report data required by the agency, in a format specified by

  8  the agency, for the purpose of the evaluation required in

  9  paragraph (e).

10         (e)  The agency shall conduct an evaluation of the

11  pilot project and report its findings to the Governor and the

12  Legislature by no later than January 1, 2001.

13         (f)  Nothing in this subsection is intended to conflict

14  with the provision of the 1997-1998 General Appropriations Act

15  which authorizes competitive bidding for Medicaid home health,

16  clinical laboratory, or X-ray services.

17         Section 26.  Effective January 1, 1999, paragraph (d)

18  of subsection (3) of section 409.912, Florida Statutes, is

19  amended to read:

20         409.912  Cost-effective purchasing of health care.--The

21  agency shall purchase goods and services for Medicaid

22  recipients in the most cost-effective manner consistent with

23  the delivery of quality medical care.  The agency shall

24  maximize the use of prepaid per capita and prepaid aggregate

25  fixed-sum basis services when appropriate and other

26  alternative service delivery and reimbursement methodologies,

27  including competitive bidding pursuant to s. 287.057, designed

28  to facilitate the cost-effective purchase of a case-managed

29  continuum of care. The agency shall also require providers to

30  minimize the exposure of recipients to the need for acute

31


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                                          HB 4535, First Engrossed



  1  inpatient, custodial, and other institutional care and the

  2  inappropriate or unnecessary use of high-cost services.

  3         (3)  The agency may contract with:

  4         (d)  No more than four provider service networks for

  5  demonstration projects to test Medicaid direct contracting.

  6  However, no such demonstration project shall be established

  7  with a federally qualified health center nor shall any

  8  provider service network under contract with the agency

  9  pursuant to this paragraph include a federally qualified

10  health center in its provider network.  One demonstration

11  project must be located in Orange County.  The demonstration

12  projects may be reimbursed on a fee-for-service or prepaid

13  basis.  A provider service network which is reimbursed by the

14  agency on a prepaid basis shall be exempt from parts I and III

15  of chapter 641, but must meet appropriate financial reserve,

16  quality assurance, and patient rights requirements as

17  established by the agency.  The agency shall award contracts

18  on a competitive bid basis and shall select bidders based upon

19  price and quality of care. Medicaid recipients assigned to a

20  demonstration project shall be chosen equally from those who

21  would otherwise have been assigned to prepaid plans and

22  MediPass.  The agency is authorized to seek federal Medicaid

23  waivers as necessary to implement the provisions of this

24  section.  A demonstration project awarded pursuant to this

25  paragraph shall be for 2 years from the date of

26  implementation.

27         Section 27.  Paragraph (b) of subsection (1) of section

28  414.028, Florida Statutes, is amended, and paragraphs (e) and

29  (f) are added to said subsection, to read:

30         414.028  Local WAGES coalitions.--The WAGES Program

31  State Board of Directors shall create and charter local WAGES


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                                          HB 4535, First Engrossed



  1  coalitions to plan and coordinate the delivery of services

  2  under the WAGES Program at the local level. The boundaries of

  3  the service area for a local WAGES coalition shall conform to

  4  the boundaries of the service area for the regional workforce

  5  development board established under the Enterprise Florida

  6  workforce development board. The local delivery of services

  7  under the WAGES Program shall be coordinated, to the maximum

  8  extent possible, with the local services and activities of the

  9  local service providers designated by the regional workforce

10  development boards.

11         (1)

12         (b)  A representative of an agency or entity that could

13  benefit financially from funds appropriated under the WAGES

14  Program may not be a member of a local WAGES coalition; except

15  that county health departments and Healthy Start coalitions

16  may be members, provided they abstain from voting on matters

17  that financially affect their respective organizations.

18         (e)  A representative of a county health department or

19  a representative of a Healthy Start coalition shall serve as

20  an ex officio, nonvoting member of the coalition.

21         (f)  Nothing in this subsection shall prevent a local

22  WAGES coalition from extending regular voting membership no

23  more than one representative of a county health department and

24  no more than one representative of a Healthy Start coalition.

25         Section 28.  Subsection (1) of section 414.28, Florida

26  Statutes, is amended to read:

27         414.28  Public assistance payments to constitute debt

28  of recipient.--

29         (1)  CLAIMS.--The acceptance of public assistance

30  creates a debt of the person accepting assistance, which debt

31  is enforceable only after the death of the recipient.  The


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                                          HB 4535, First Engrossed



  1  debt thereby created is enforceable only by claim filed

  2  against the estate of the recipient after his or her death or

  3  by suit to set aside a fraudulent conveyance, as defined in

  4  subsection (3). After the death of the recipient and within

  5  the time prescribed by law, the department may file a claim

  6  against the estate of the recipient for the total amount of

  7  public assistance paid to or for the benefit of such

  8  recipient, reimbursement for which has not been made.  Claims

  9  so filed shall take priority as class 3 7 claims as provided

10  by s. 733.707(1)(g).

11         Section 29.  Subsection (4) of section 641.386, Florida

12  Statutes, is amended to read:

13         641.386  Agent licensing and appointment required;

14  exceptions.--

15         (4)  All agents and health maintenance organizations

16  shall comply with and be subject to the applicable provisions

17  of ss. 641.309 and 409.912(20)(18), and all companies and

18  entities appointing agents shall comply with s. 626.451, when

19  marketing for any health maintenance organization licensed

20  pursuant to this part, including those organizations under

21  contract with the Agency for Health Care Administration to

22  provide health care services to Medicaid recipients or any

23  private entity providing health care services to Medicaid

24  recipients pursuant to a prepaid health plan contract with the

25  Agency for Health Care Administration.

26         Section 30.  Paragraph (a) of subsection (1) of section

27  766.101, Florida Statutes, is amended to read:

28         766.101  Medical review committee, immunity from

29  liability.--

30         (1)  As used in this section:

31


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                                          HB 4535, First Engrossed



  1         (a)  The term "medical review committee" or "committee"

  2  means:

  3         1.a.  A committee of a hospital or ambulatory surgical

  4  center licensed under chapter 395 or a health maintenance

  5  organization certificated under part I of chapter 641,

  6         b.  A committee of a state or local professional

  7  society of health care providers,

  8         c.  A committee of a medical staff of a licensed

  9  hospital or nursing home, provided the medical staff operates

10  pursuant to written bylaws that have been approved by the

11  governing board of the hospital or nursing home,

12         d.  A committee of the Department of Corrections or the

13  Correctional Medical Authority as created under s. 945.602, or

14  employees, agents, or consultants of either the department or

15  the authority or both,

16         e.  A committee of a professional service corporation

17  formed under chapter 621 or a corporation organized under

18  chapter 607 or chapter 617, which is formed and operated for

19  the practice of medicine as defined in s. 458.305(3), and

20  which has at least 25 health care providers who routinely

21  provide health care services directly to patients,

22         f.  A committee of a mental health treatment facility

23  licensed under chapter 394 or a community mental health center

24  as defined in s. 394.907, provided the quality assurance

25  program operates pursuant to the guidelines which have been

26  approved by the governing board of the agency,

27         g.  A committee of a substance abuse treatment and

28  education prevention program licensed under chapter 397

29  provided the quality assurance program operates pursuant to

30  the guidelines which have been approved by the governing board

31  of the agency,


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                                          HB 4535, First Engrossed



  1         h.  A peer review or utilization review committee

  2  organized under chapter 440, or

  3         i.  A committee of the Department of Health, a county

  4  health department, a healthy start coalition, or a certified

  5  rural health network, when reviewing quality of care, or

  6  employees of these entities when reviewing mortality records,

  7

  8  which committee is formed to evaluate and improve the quality

  9  of health care rendered by providers of health service or to

10  determine that health services rendered were professionally

11  indicated or were performed in compliance with the applicable

12  standard of care or that the cost of health care rendered was

13  considered reasonable by the providers of professional health

14  services in the area; or

15         2.  A committee of an insurer, self-insurer, or joint

16  underwriting association of medical malpractice insurance, or

17  other persons conducting review under s. 766.106.

18         Section 31.  Upon completion, the Marion County Health

19  Department building to be constructed in Belleview, Florida,

20  shall be known as the "Carl S. Lytle, M.D., Memorial Health

21  Facility."

22         Section 32.  Section 383.05, Florida Statutes, is

23  hereby repealed.

24         Section 33.  Except as otherwise provided herein, this

25  act shall take effect July 1 of the year in which enacted.

26

27

28

29

30

31


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