Senate Bill 2242c1

CODING: Words stricken are deletions; words underlined are additions.



    Florida Senate - 2000                           CS for SB 2242

    By the Committee on Health, Aging and Long-Term Care; and
    Senator Saunders




    317-1993A-00

  1                      A bill to be entitled

  2         An act relating to health care; amending s.

  3         409.212, F.S.; providing for periodic increase

  4         in the optional state supplementation rate;

  5         amending s. 409.901, F.S.; amending definitions

  6         of terms used in ss. 409.910-409.920, F.S.;

  7         amending s. 409.902, F.S.; providing that the

  8         Department of Children and Family Services is

  9         responsible for Medicaid eligibility

10         determinations; amending s. 409.903, F.S.;

11         providing responsibility for determinations of

12         eligibility for payments for medical assistance

13         and related services; amending s. 409.905,

14         F.S.; increasing the maximum amount that may be

15         paid under Medicaid for hospital outpatient

16         services; amending s. 409.906, F.S.; allowing

17         the Department of Children and Family Services

18         to transfer funds to the Agency for Health Care

19         Administration to cover state match

20         requirements as specified; amending s. 409.907,

21         F.S.; revising requirements relating to the

22         minimum amount of the surety bond which each

23         provider is required to maintain; specifying

24         grounds on which provider applications may be

25         denied; amending s. 409.908, F.S.; increasing

26         the maximum amount of reimbursement allowable

27         to Medicaid providers for hospital inpatient

28         care; creating s. 409.9119, F.S.; creating a

29         disproportionate share program for children's

30         hospitals; providing formulas governing

31         payments made to hospitals under the program;

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1         providing for withholding payments from a

  2         hospital that is not complying with agency

  3         rules; amending s. 409.912, F.S.; providing for

  4         the transfer of certain unexpended Medicaid

  5         funds from the Department of Elderly Affairs to

  6         the Agency for Health Care Administration;

  7         providing for the adoption and the transfer of

  8         certain rules relating to the determination of

  9         Medicaid eligibility; authorizing developmental

10         research schools to participate in Medicaid

11         certified school match program; providing for

12         the Agency for Health Care Administration to

13         seek a federal waiver allowing the agency to

14         undertake a pilot project that involves

15         contracting with skilled nursing facilities for

16         the provision of rehabilitation services to

17         adult ventilator dependent patients; providing

18         for evaluation of the pilot program; repealing

19         s. 409.912(4)(b), F.S., relating to the

20         authorization of the agency to contract with

21         certain prepaid health care services providers;

22         providing an effective date.

23

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

25

26         Section 1.  Present subsection (6) of section 409.212,

27  Florida Statutes, is redesignated as subsection (7), and a new

28  subsection (6) is added to that subsection, to read:

29         409.212  Optional supplementation.--

30         (6)  The optional state supplementation rate shall be

31  increased by the cost-of-living adjustment to the federal

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  benefits rate provided that the average state optional

  2  supplementation contribution does not increase as a result.

  3         Section 2.  Subsections (3), (15), and (18) of section

  4  409.901, Florida Statutes, are amended to read:

  5         409.901  Definitions.--As used in ss. 409.901-409.920,

  6  except as otherwise specifically provided, the term:

  7         (3)  "Applicant" means an individual whose written

  8  application for medical assistance provided by Medicaid under

  9  ss. 409.903-409.906 has been submitted to the Department of

10  Children and Family Services agency, or to the Social Security

11  Administration if the application is for Supplemental Security

12  Income, but has not received final action.  This term includes

13  an individual, who need not be alive at the time of

14  application, whose application is submitted through a

15  representative or a person acting for the individual.

16         (15)  "Medicaid program" means the program authorized

17  under Title XIX of the federal Social Security Act which

18  provides for payments for medical items or services, or both,

19  on behalf of any person who is determined by the Department of

20  Children and Family Services, or, for Supplemental Security

21  Income, by the Social Security Administration, to be eligible

22  on the date of service for Medicaid assistance.

23         (18)  "Medicaid recipient" or "recipient" means an

24  individual whom the Department of Children and Family

25  Services, or, for Supplemental Security Income, the Social

26  Security Administration, determines is eligible, pursuant to

27  federal and state law, to receive medical assistance and

28  related services for which the agency may make payments under

29  the Medicaid program. For the purposes of determining

30  third-party liability, the term includes an individual

31  formerly determined to be eligible for Medicaid, an individual

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  who has received medical assistance under the Medicaid

  2  program, or an individual on whose behalf Medicaid has become

  3  obligated.

  4         Section 3.  Section 409.902, Florida Statutes, is

  5  amended to read:

  6         409.902  Designated single state agency; payment

  7  requirements; program title.--The Agency for Health Care

  8  Administration is designated as the single state agency

  9  authorized to make payments for medical assistance and related

10  services under Title XIX of the Social Security Act.  These

11  payments shall be made, subject to any limitations or

12  directions provided for in the General Appropriations Act,

13  only for services included in the program, shall be made only

14  on behalf of eligible individuals, and shall be made only to

15  qualified providers in accordance with federal requirements

16  for Title XIX of the Social Security Act and the provisions of

17  state law.  This program of medical assistance is designated

18  the "Medicaid program." The Department of Children and Family

19  Services is responsible for Medicaid eligibility

20  determinations, including policy, rules, and the agreement

21  with the Social Security Administration for Medicaid

22  eligibility determinations for Supplemental Security Income

23  recipients, as well as the actual determination of

24  eligibility.

25         Section 4.  Section 409.903, Florida Statutes, is

26  amended to read:

27         409.903  Mandatory payments for eligible persons.--The

28  agency shall make payments for medical assistance and related

29  services on behalf of the following persons who the

30  department, or the Social Security Administration by contract

31  with the Department of Children and Family Services, agency

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  determines to be eligible, subject to the income, assets, and

  2  categorical eligibility tests set forth in federal and state

  3  law.  Payment on behalf of these Medicaid eligible persons is

  4  subject to the availability of moneys and any limitations

  5  established by the General Appropriations Act or chapter 216.

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

  7  Medicaid provided they meet the following requirements:

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

  9  living with a caretaker relative.

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

11  income test limit.

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

13  exceed the applicable Aid to Families with Dependent Children

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

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

16  state plan to conform as closely as possible to the

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

18  the extent permitted by federal law.

19         (2)  A person who receives payments from, who is

20  determined eligible for, or who was eligible for but lost cash

21  benefits from the federal program known as the Supplemental

22  Security Income program (SSI).  This category includes a

23  low-income person age 65 or over and a low-income person under

24  age 65 considered to be permanently and totally disabled.

25         (3)  A child under age 21 living in a low-income,

26  two-parent family, and a child under age 7 living with a

27  nonrelative, if the income and assets of the family or child,

28  as applicable, do not exceed the resource limits under the

29  WAGES Program.

30         (4)  A child who is eligible under Title IV-E of the

31  Social Security Act for subsidized board payments, foster

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  care, or adoption subsidies, and a child for whom the state

  2  has assumed temporary or permanent responsibility and who does

  3  not qualify for Title IV-E assistance but is in foster care,

  4  shelter or emergency shelter care, or subsidized adoption.

  5         (5)  A pregnant woman for the duration of her pregnancy

  6  and for the post partum period as defined in federal law and

  7  rule, or a child under age 1, if either is living in a family

  8  that has an income which is at or below 150 percent of the

  9  most current federal poverty level, or, effective January 1,

10  1992, that has an income which is at or below 185 percent of

11  the most current federal poverty level.  Such a person is not

12  subject to an assets test. Further, a pregnant woman who

13  applies for eligibility for the Medicaid program through a

14  qualified Medicaid provider must be offered the opportunity,

15  subject to federal rules, to be made presumptively eligible

16  for the Medicaid program.

17         (6)  A child born after September 30, 1983, living in a

18  family that has an income which is at or below 100 percent of

19  the current federal poverty level, who has attained the age of

20  6, but has not attained the age of 19.  In determining the

21  eligibility of such a child, an assets test is not required.

22         (7)  A child living in a family that has an income

23  which is at or below 133 percent of the current federal

24  poverty level, who has attained the age of 1, but has not

25  attained the age of 6.  In determining the eligibility of such

26  a child, an assets test is not required.

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

28  the agency to be disabled, whose income is at or below 100

29  percent of the most current federal poverty level and whose

30  assets do not exceed limitations established by the agency.

31  However, the agency may only pay for premiums, coinsurance,

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  and deductibles, as required by federal law, unless additional

  2  coverage is provided for any or all members of this group by

  3  s. 409.904(1).

  4         Section 5.  Subsection (6) of section 409.905, Florida

  5  Statutes, is amended to read:

  6         409.905  Mandatory Medicaid services.--The agency may

  7  make payments for the following services, which are required

  8  of the state by Title XIX of the Social Security Act,

  9  furnished by Medicaid providers to recipients who are

10  determined to be eligible on the dates on which the services

11  were provided.  Any service under this section shall be

12  provided only when medically necessary and in accordance with

13  state and federal law. Nothing in this section shall be

14  construed to prevent or limit the agency from adjusting fees,

15  reimbursement rates, lengths of stay, number of visits, number

16  of services, or any other adjustments necessary to comply with

17  the availability of moneys and any limitations or directions

18  provided for in the General Appropriations Act or chapter 216.

19         (6)  HOSPITAL OUTPATIENT SERVICES.--The agency shall

20  pay for preventive, diagnostic, therapeutic, or palliative

21  care and other services provided to a recipient in the

22  outpatient portion of a hospital licensed under part I of

23  chapter 395, and provided under the direction of a licensed

24  physician or licensed dentist, except that payment for such

25  care and services is limited to $1,500 $1,000 per state fiscal

26  year per recipient, unless an exception has been made by the

27  agency, and with the exception of a Medicaid recipient under

28  age 21, in which case the only limitation is medical

29  necessity.

30         Section 6.  Subsection (5) of section 409.906, Florida

31  Statutes, is amended to read:

                                  7

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1         409.906  Optional Medicaid services.--Subject to

  2  specific appropriations, the agency may make payments for

  3  services which are optional to the state under Title XIX of

  4  the Social Security Act and are furnished by Medicaid

  5  providers to recipients who are determined to be eligible on

  6  the dates on which the services were provided.  Any optional

  7  service that is provided shall be provided only when medically

  8  necessary and in accordance with state and federal law.

  9  Nothing in this section shall be construed to prevent or limit

10  the agency from adjusting fees, reimbursement rates, lengths

11  of stay, number of visits, or number of services, or making

12  any other adjustments necessary to comply with the

13  availability of moneys and any limitations or directions

14  provided for in the General Appropriations Act or chapter 216.

15  If necessary to safeguard the state's systems of providing

16  services to elderly and disabled persons and subject to the

17  notice and review provisions of s. 216.177, the Governor may

18  direct the Agency for Health Care Administration to amend the

19  Medicaid state plan to delete the optional Medicaid service

20  known as "Intermediate Care Facilities for the Developmentally

21  Disabled."  Optional services may include:

22         (5)  CASE MANAGEMENT SERVICES.--The agency may pay for

23  primary care case management services rendered to a recipient

24  pursuant to a federally approved waiver, and targeted case

25  management services for specific groups of targeted

26  recipients, for which funding has been provided and which are

27  rendered pursuant to federal guidelines. The agency is

28  authorized to limit reimbursement for targeted case management

29  services in order to comply with any limitations or directions

30  provided for in the General Appropriations Act.

31  Notwithstanding s. 216.292, the Department of Children and

                                  8

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  Family Services may transfer general funds to the Agency for

  2  Health Care Administration to cover state matching

  3  requirements exceeding the amount specified in the General

  4  Appropriations Act for targeted case management services.

  5         Section 7.  Subsections (7), (9), and (10) of section

  6  409.907, Florida Statutes, are amended to read:

  7         409.907  Medicaid provider agreements.--The agency may

  8  make payments for medical assistance and related services

  9  rendered to Medicaid recipients only to an individual or

10  entity who has a provider agreement in effect with the agency,

11  who is performing services or supplying goods in accordance

12  with federal, state, and local law, and who agrees that no

13  person shall, on the grounds of handicap, race, color, or

14  national origin, or for any other reason, be subjected to

15  discrimination under any program or activity for which the

16  provider receives payment from the agency.

17         (7)  The agency may require, as a condition of

18  participating in the Medicaid program and before entering into

19  the provider agreement, that the provider submit information

20  concerning the professional, business, and personal background

21  of the provider and permit an onsite inspection of the

22  provider's service location by agency staff or other personnel

23  designated by the agency to perform assist in this function.

24  Before entering into the provider agreement, or as a condition

25  of continuing participation in the Medicaid program, the

26  agency and may also require that Medicaid providers reimbursed

27  on a fee-for-services basis or fee schedule basis which is not

28  cost-based, post a surety bond from the provider not to exceed

29  $50,000 or the total amount billed by the provider to the

30  program during the current or most recent calendar year,

31  whichever is greater. For new providers, the amount of the

                                  9

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  surety bond shall be determined by the agency based on the

  2  provider's estimate of its first year's billing. If the

  3  provider's billing during the first year exceeds the bond

  4  amount, the agency may require the provider to acquire an

  5  additional bond equal to the actual billing level of the

  6  provider. A provider's bond shall not exceed $50,000 if a

  7  physician or group of physicians licensed under chapter 458,

  8  chapter 459, or chapter 460 has a 50 percent or greater

  9  ownership interest in the provider or if the provider is an

10  assisted living facility licensed under part III of chapter

11  400. The bonds permitted by this section are in addition to

12  the bonds referenced in s. 400.179(4)(d). If the provider is a

13  corporation, partnership, association, or other entity, the

14  agency may require the provider to submit information

15  concerning the background of that entity and of any principal

16  of the entity, including any partner or shareholder having an

17  ownership interest in the entity equal to 5 percent or

18  greater, and any treating provider who participates in or

19  intends to participate in Medicaid through the entity. The

20  information must include:

21         (a)  Proof of holding a valid license or operating

22  certificate, as applicable, if required by the state or local

23  jurisdiction in which the provider is located or if required

24  by the Federal Government.

25         (b)  Information concerning any prior violation, fine,

26  suspension, termination, or other administrative action taken

27  under the Medicaid laws, rules, or regulations of this state

28  or of any other state or the Federal Government; any prior

29  violation of the laws, rules, or regulations relating to the

30  Medicare program; any prior violation of the rules or

31  regulations of any other public or private insurer; and any

                                  10

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  prior violation of the laws, rules, or regulations of any

  2  regulatory body of this or any other state.

  3         (c)  Full and accurate disclosure of any financial or

  4  ownership interest that the provider, or any principal,

  5  partner, or major shareholder thereof, may hold in any other

  6  Medicaid provider or health care related entity or any other

  7  entity that is licensed by the state to provide health or

  8  residential care and treatment to persons.

  9         (d)  If a group provider, identification of all members

10  of the group and attestation that all members of the group are

11  enrolled in or have applied to enroll in the Medicaid program.

12         (9)  Upon receipt of a completed, signed, and dated

13  application, and completion of any necessary background

14  investigation and criminal history record check, the agency

15  must either:

16         (a)  Enroll the applicant as a Medicaid provider; or

17         (b)  Deny the application if the agency determines

18  that, based on the grounds listed in subsection (10), it is in

19  the best interest of the Medicaid program to do so, specifying

20  the reasons for denial. The agency may consider the factors

21  listed in subsection (10), as well as any other factor that

22  could affect the effective and efficient administration of the

23  program, including, but not limited to, the current

24  availability of medical care, services, or supplies to

25  recipients, taking into account geographic location and

26  reasonable travel time.

27         (10)  The agency may consider whether deny enrollment

28  in the Medicaid program to a provider if the provider, or any

29  officer, director, agent, managing employee, or affiliated

30  person, or any partner or shareholder having an ownership

31  interest equal to 5 percent or greater in the provider if the

                                  11

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  provider is a corporation, partnership, or other business

  2  entity, has:

  3         (a)  Made a false representation or omission of any

  4  material fact in making the application, including the

  5  submission of an application that conceals the controlling or

  6  ownership interest of any officer, director, agent, managing

  7  employee, affiliated person, or partner or shareholder who may

  8  not be eligible to participate;

  9         (b)  Been or is currently excluded, suspended,

10  terminated from, or has involuntarily withdrawn from

11  participation in, Florida's Medicaid program or any other

12  state's Medicaid program, or from participation in any other

13  governmental or private health care or health insurance

14  program;

15         (c)  Been convicted of a criminal offense relating to

16  the delivery of any goods or services under Medicaid or

17  Medicare or any other public or private health care or health

18  insurance program including the performance of management or

19  administrative services relating to the delivery of goods or

20  services under any such program;

21         (d)  Been convicted under federal or state law of a

22  criminal offense related to the neglect or abuse of a patient

23  in connection with the delivery of any health care goods or

24  services;

25         (e)  Been convicted under federal or state law of a

26  criminal offense relating to the unlawful manufacture,

27  distribution, prescription, or dispensing of a controlled

28  substance;

29         (f)  Been convicted of any criminal offense relating to

30  fraud, theft, embezzlement, breach of fiduciary

31  responsibility, or other financial misconduct;

                                  12

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1         (g)  Been convicted under federal or state law of a

  2  crime punishable by imprisonment of a year or more which

  3  involves moral turpitude;

  4         (h)  Been convicted in connection with the interference

  5  or obstruction of any investigation into any criminal offense

  6  listed in this subsection;

  7         (i)  Been found to have violated federal or state laws,

  8  rules, or regulations governing Florida's Medicaid program or

  9  any other state's Medicaid program, the Medicare program, or

10  any other publicly funded federal or state health care or

11  health insurance program, and been sanctioned accordingly;

12         (j)  Been previously found by a licensing, certifying,

13  or professional standards board or agency to have violated the

14  standards or conditions relating to licensure or certification

15  or the quality of services provided; or

16         (k)  Failed to pay any fine or overpayment properly

17  assessed under the Medicaid program in which no appeal is

18  pending or after resolution of the proceeding by stipulation

19  or agreement, unless the agency has issued a specific letter

20  of forgiveness or has approved a repayment schedule to which

21  the provider agrees to adhere.

22         Section 8.  Paragraph (a) of subsection (1) of section

23  409.908, Florida Statutes, is amended to read:

24         409.908  Reimbursement of Medicaid providers.--Subject

25  to specific appropriations, the agency shall reimburse

26  Medicaid providers, in accordance with state and federal law,

27  according to methodologies set forth in the rules of the

28  agency and in policy manuals and handbooks incorporated by

29  reference therein.  These methodologies may include fee

30  schedules, reimbursement methods based on cost reporting,

31  negotiated fees, competitive bidding pursuant to s. 287.057,

                                  13

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  and other mechanisms the agency considers efficient and

  2  effective for purchasing services or goods on behalf of

  3  recipients.  Payment for Medicaid compensable services made on

  4  behalf of Medicaid eligible persons is subject to the

  5  availability of moneys and any limitations or directions

  6  provided for in the General Appropriations Act or chapter 216.

  7  Further, nothing in this section shall be construed to prevent

  8  or limit the agency from adjusting fees, reimbursement rates,

  9  lengths of stay, number of visits, or number of services, or

10  making any other adjustments necessary to comply with the

11  availability of moneys and any limitations or directions

12  provided for in the General Appropriations Act, provided the

13  adjustment is consistent with legislative intent.

14         (1)  Reimbursement to hospitals licensed under part I

15  of chapter 395 must be made prospectively or on the basis of

16  negotiation.

17         (a)  Reimbursement for inpatient care is limited as

18  provided for in s. 409.905(5). Reimbursement for hospital

19  outpatient care is limited to $1,500 $1,000 per state fiscal

20  year per recipient, except for:

21         1.  Such care provided to a Medicaid recipient under

22  age 21, in which case the only limitation is medical

23  necessity;

24         2.  Renal dialysis services; and

25         3.  Other exceptions made by the agency.

26         (b)  Hospitals that provide services to a

27  disproportionate share of low-income Medicaid recipients, or

28  that participate in the regional perinatal intensive care

29  center program under chapter 383, or that participate in the

30  statutory teaching hospital disproportionate share program, or

31  that participate in the extraordinary disproportionate share

                                  14

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  program, may receive additional reimbursement. The total

  2  amount of payment for disproportionate share hospitals shall

  3  be fixed by the General Appropriations Act. The computation of

  4  these payments must be made in compliance with all federal

  5  regulations and the methodologies described in ss. 409.911,

  6  409.9112, and 409.9113.

  7         (c)  The agency is authorized to limit inflationary

  8  increases for outpatient hospital services as directed by the

  9  General Appropriations Act.

10         Section 9.  Section 409.9119, Florida Statutes, is

11  created to read:

12         409.9119  Disproportionate share program for children's

13  hospitals.--In addition to the payments made under s. 409.911,

14  the Agency for Health Care Administration shall develop and

15  implement a system under which disproportionate share payments

16  are made to those hospitals that are licensed by the state as

17  a children's hospital. This system of payments must conform to

18  federal requirements and must distribute funds in each fiscal

19  year for which an appropriation is made by making quarterly

20  Medicaid payments. Notwithstanding s. 409.915, counties are

21  exempt from contributing toward the cost of this special

22  reimbursement for hospitals that serve a disproportionate

23  share of low-income patients.

24         (1)  The agency shall use the following formula to

25  calculate the total amount earned for hospitals that

26  participate in the children's hospital disproportionate share

27  program:

28                      TAE = DSR x BMPD x MD

29  Where:

30         TAE = total amount earned by a children's hospital.

31         DSR = disproportionate share rate.

                                  15

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1         BMPD = base Medicaid per diem.

  2         MD = Medicaid days.

  3         (2)  The agency shall calculate the total additional

  4  payment for hospitals that participate in the children's

  5  hospital disproportionate share program as follows:

  6

  7                         TAP = (TAE x TA)

  8                                         

  9                               STAE

10  Where:

11         TAP = total additional payment for a children's

12  hospital.

13         TAE = total amount earned by a children's hospital.

14         STAE = sum of total amount earned by each hospital that

15  participates in the children's hospital disproportionate share

16  program.

17         TA = total appropriation for the children's hospital

18  disproportionate share program.

19

20         (3)  A hospital may not receive any payments under this

21  section until it achieves full compliance with the applicable

22  rules of the agency. A hospital that is not in compliance for

23  two or more consecutive quarters may not receive its share of

24  the funds. Any forfeited funds must be distributed to the

25  remaining participating children's hospitals that are in

26  compliance.

27         Section 10.  Subsection (9) of section 409.912, Florida

28  Statutes, is amended to read:

29         409.912  Cost-effective purchasing of health care.--The

30  agency shall purchase goods and services for Medicaid

31  recipients in the most cost-effective manner consistent with

                                  16

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  the delivery of quality medical care.  The agency shall

  2  maximize the use of prepaid per capita and prepaid aggregate

  3  fixed-sum basis services when appropriate and other

  4  alternative service delivery and reimbursement methodologies,

  5  including competitive bidding pursuant to s. 287.057, designed

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

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

  8  minimize the exposure of recipients to the need for acute

  9  inpatient, custodial, and other institutional care and the

10  inappropriate or unnecessary use of high-cost services.

11         (9)  The agency, after notifying the Legislature, may

12  apply for waivers of applicable federal laws and regulations

13  as necessary to implement more appropriate systems of health

14  care for Medicaid recipients and reduce the cost of the

15  Medicaid program to the state and federal governments and

16  shall implement such programs, after legislative approval,

17  within a reasonable period of time after federal approval.

18  These programs must be designed primarily to reduce the need

19  for inpatient care, custodial care and other long-term or

20  institutional care, and other high-cost services.

21         (a)  Before Prior to seeking legislative approval of

22  such a waiver as authorized by this subsection, the agency

23  must shall provide notice and an opportunity for public

24  comment.  Notice must shall be provided to all persons who

25  have made requests of the agency for advance notice and must

26  shall be published in the Florida Administrative Weekly not

27  less than 28 days before prior to the intended action.

28         (b)  Notwithstanding s. 216.292, funds that are

29  appropriated to the Department of Elderly Affairs for the

30  Assisted Living for the Elderly Medicaid waiver and are not

31

                                  17

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  expended must be transferred to the agency to fund

  2  Medicaid-reimbursed nursing home care.

  3         Section 11.  Section 409.919, Florida Statutes, is

  4  amended to read:

  5         409.919  Rules.--The agency shall adopt any rules

  6  necessary to comply with or administer ss. 409.901-409.920 and

  7  all rules necessary to comply with federal requirements. In

  8  addition, the Department of Children and Family Services shall

  9  adopt and accept transfer of any rules necessary to carry out

10  its responsibilities for receiving and processing Medicaid

11  applications and determining Medicaid eligibility, and for

12  assuring compliance with and administering ss. 409.901-409.906

13  and any other provisions related to responsibility for the

14  determination of Medicaid eligibility.

15         Section 12.  Notwithstanding the provisions of sections

16  236.0812, 409.9071, and 409.908(21), Florida Statutes,

17  developmental research schools, as authorized under section

18  228.053, Florida Statutes, shall be authorized to participate

19  in the Medicaid certified school match program subject to the

20  provisions of sections 236.0812, 409.9071, and 409.908(21),

21  Florida Statutes.

22         Section 13.  (1)  The Agency for Health Care

23  Administration is directed to submit to the Health Care

24  Financing Administration a request for a waiver that will

25  allow the agency to undertake a pilot project that would

26  implement a coordinated system of care for adult ventilator

27  dependent patients. Under this pilot program, the agency shall

28  identify a network of skilled nursing facilities that have

29  respiratory departments geared towards intensive treatment and

30  rehabilitation of adult ventilator patients and will contract

31  with such a network for respiratory or other services. The

                                  18

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 2242
    317-1993A-00




  1  pilot project must allow the agency to evaluate a coordinated

  2  and focused system of care for adult ventilator dependent

  3  patients to determine the overall cost-effectiveness and

  4  improved outcomes for participants.

  5         (2)  The agency must submit the waiver by September 1,

  6  2000.  The agency must forward a preliminary report of the

  7  pilot project's findings to the Governor, the Speaker of the

  8  House of Representatives, and the President of the Senate six

  9  months after project implementation.  The agency must submit a

10  final report of the pilot project's findings to these same

11  recipients no later than February 15, 2002.

12         Section 14.  Paragraph (b) of subsection (4) of section

13  409.912, Florida Statutes, is repealed.

14         Section 15.  This act shall take effect July 1, 2000.

15

16          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
17                         Senate Bill 2242

18

19  The Committee Substitute requires that the optional state
    supplementation rate increase by the cost-of-living adjustment
20  to the federal benefits rate; limits provider types who can be
    required to post a surety bond in excess of $50,000 to those
21  providers which are reimbursed on a fee-for-service basis or
    fee schedule basis which is not cost based, excluding
22  providers in which physicians or physician groups licensed
    under chapters 458, 458, or 460 have greater that 50 percent
23  ownership interest or if the provider is an assisted living
    facility licensed under chapter 400, Part III;  authorizes
24  university laboratory schools to participate in Medicaid
    certified school match funding; and repeals paragraph (b) of
25  subsection (4) of 409.912, F.S., relating to exemption from
    the HMO licensure requirements of part 1 of chapter 641, F.S.,
26  for entities providing only Medicaid services on a prepaid
    basis.
27

28

29

30

31

                                  19