Senate Bill 2242c2

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    Florida Senate - 2000                    CS for CS for SB 2242

    By the Committees on Fiscal Policy; Health, Aging and
    Long-Term Care; and Senator Saunders




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  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;

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  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 renewal of contracts for fiscal

  8         intermediary services; amending s. 409.919,

  9         F.S.; providing for the adoption and the

10         transfer of certain rules relating to the

11         determination of Medicaid eligibility;

12         authorizing developmental research schools to

13         participate in Medicaid certified school match

14         program; providing for the Agency for Health

15         Care Administration to seek a federal waiver

16         allowing the agency to undertake a pilot

17         project that involves contracting with skilled

18         nursing facilities for the provision of

19         rehabilitation services to adult ventilator

20         dependent patients; providing for evaluation of

21         the pilot program; amending s. 430.703, F.S.;

22         defining "other qualified provider"; amending

23         s. 430.707, F.S.; authorizing the Department of

24         Elderly Affairs to contract with other

25         qualified providers to provide long-term care

26         within the pilot project areas; exempting other

27         qualified providers from specified licensing

28         requirements; repealing s. 409.912(4)(b), F.S.,

29         relating to the authorization of the agency to

30         contract with certain prepaid health care

31

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  1         services providers; providing an effective

  2         date.

  3

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

  5

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

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

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

  9         409.212  Optional supplementation.--

10         (6)  The optional state supplementation rate shall be

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

12  benefits rate provided that the average state optional

13  supplementation contribution does not increase as a result.

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

15  409.901, Florida Statutes, are amended to read:

16         409.901  Definitions.--As used in ss. 409.901-409.920,

17  except as otherwise specifically provided, the term:

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

19  application for medical assistance provided by Medicaid under

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

21  Children and Family Services, or to the Social Security

22  Administration if applying for Supplemental Security Income

23  agency, but has not received final action.  This term includes

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

25  application, whose application is submitted through a

26  representative or a person acting for the individual.

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

28  under Title XIX of the federal Social Security Act which

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

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

31  Children and Family Services, or, for Supplemental Security

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

  2  on the date of service for Medicaid assistance.

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

  4  individual whom the Department of Children and Family

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

  6  Security Administration, determines is eligible, pursuant to

  7  federal and state law, to receive medical assistance and

  8  related services for which the agency may make payments under

  9  the Medicaid program. For the purposes of determining

10  third-party liability, the term includes an individual

11  formerly determined to be eligible for Medicaid, an individual

12  who has received medical assistance under the Medicaid

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

14  obligated.

15         Section 3.  Section 409.902, Florida Statutes, is

16  amended to read:

17         409.902  Designated single state agency; payment

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

19  Administration is designated as the single state agency

20  authorized to make payments for medical assistance and related

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

22  payments shall be made, subject to any limitations or

23  directions provided for in the General Appropriations Act,

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

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

26  qualified providers in accordance with federal requirements

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

28  state law.  This program of medical assistance is designated

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

30  Services is responsible for Medicaid eligibility

31  determinations, including policy, rules, and the agreement

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  1  with the Social Security Administration for Medicaid

  2  eligibility determinations for Supplemental Security Income

  3  recipients, as well as the actual determination of

  4  eligibility.

  5         Section 4.  Section 409.903, Florida Statutes, is

  6  amended to read:

  7         409.903  Mandatory payments for eligible persons.--The

  8  agency shall make payments for medical assistance and related

  9  services on behalf of the following persons whom the

10  Department of Children and Family Services, or the Social

11  Security Administration by contract with the Department of

12  Children and Family Services, who the agency determines to be

13  eligible, subject to the income, assets, and categorical

14  eligibility tests set forth in federal and state law.  Payment

15  on behalf of these Medicaid eligible persons is subject to the

16  availability of moneys and any limitations established by the

17  General Appropriations Act or chapter 216.

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

19  Medicaid provided they meet the following requirements:

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

21  living with a caretaker relative.

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

23  income test limit.

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

25  exceed the applicable Aid to Families with Dependent Children

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

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

28  state plan to conform as closely as possible to the

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

30  the extent permitted by federal law.

31

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

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

  3  benefits from the federal program known as the Supplemental

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

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

  6  age 65 considered to be permanently and totally disabled.

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

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

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

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

11  WAGES Program.

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

13  Social Security Act for subsidized board payments, foster

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

15  has assumed temporary or permanent responsibility and who does

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

17  shelter or emergency shelter care, or subsidized adoption.

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

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

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

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

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

23  1992, that has an income which is at or below 185 percent of

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

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

26  applies for eligibility for the Medicaid program through a

27  qualified Medicaid provider must be offered the opportunity,

28  subject to federal rules, to be made presumptively eligible

29  for the Medicaid program.

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

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

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

  2  6, but has not attained the age of 19.  In determining the

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

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

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

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

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

  8  a child, an assets test is not required.

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

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

11  percent of the most current federal poverty level and whose

12  assets do not exceed limitations established by the agency.

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

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

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

16  s. 409.904(1).

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

18  Statutes, is amended to read:

19         409.905  Mandatory Medicaid services.--The agency may

20  make payments for the following services, which are required

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

22  furnished by Medicaid providers to recipients who are

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

24  were provided.  Any service under this section shall be

25  provided only when medically necessary and in accordance with

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

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

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

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

30  the availability of moneys and any limitations or directions

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

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

  2  pay for preventive, diagnostic, therapeutic, or palliative

  3  care and other services provided to a recipient in the

  4  outpatient portion of a hospital licensed under part I of

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

  6  physician or licensed dentist, except that payment for such

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

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

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

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

11  necessity.

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

13  Statutes, is amended to read:

14         409.906  Optional Medicaid services.--Subject to

15  specific appropriations, the agency may make payments for

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

17  the Social Security Act and are furnished by Medicaid

18  providers to recipients who are determined to be eligible on

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

20  service that is provided shall be provided only when medically

21  necessary and in accordance with state and federal law.

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

23  the agency from adjusting fees, reimbursement rates, lengths

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

25  any other adjustments necessary to comply with the

26  availability of moneys and any limitations or directions

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

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

29  services to elderly and disabled persons and subject to the

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

31  direct the Agency for Health Care Administration to amend the

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  1  Medicaid state plan to delete the optional Medicaid service

  2  known as "Intermediate Care Facilities for the Developmentally

  3  Disabled."  Optional services may include:

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

  5  primary care case management services rendered to a recipient

  6  pursuant to a federally approved waiver, and targeted case

  7  management services for specific groups of targeted

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

  9  rendered pursuant to federal guidelines. The agency is

10  authorized to limit reimbursement for targeted case management

11  services in order to comply with any limitations or directions

12  provided for in the General Appropriations Act.

13  Notwithstanding s. 216.292, the Department of Children and

14  Family Services may transfer general funds to the Agency for

15  Health Care Administration to cover state matching

16  requirements exceeding the amount specified in the General

17  Appropriations Act for targeted case management services.

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

19  409.907, Florida Statutes, are amended to read:

20         409.907  Medicaid provider agreements.--The agency may

21  make payments for medical assistance and related services

22  rendered to Medicaid recipients only to an individual or

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

24  who is performing services or supplying goods in accordance

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

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

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

28  discrimination under any program or activity for which the

29  provider receives payment from the agency.

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

31  participating in the Medicaid program and before entering into

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  1  the provider agreement, that the provider submit information

  2  concerning the professional, business, and personal background

  3  of the provider and permit an onsite inspection of the

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

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

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

  7  of continuing participation in the Medicaid program, the

  8  agency and may also require that Medicaid providers reimbursed

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

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

11  $50,000 or the total amount billed by the provider to the

12  program during the current or most recent calendar year,

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

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

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

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

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

18  additional bond equal to the actual billing level of the

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

20  physician or group of physicians licensed under chapter 458,

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

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

23  assisted living facility licensed under part III of chapter

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

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

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

27  agency may require the provider to submit information

28  concerning the background of that entity and of any principal

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

30  ownership interest in the entity equal to 5 percent or

31  greater, and any treating provider who participates in or

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  1  intends to participate in Medicaid through the entity. The

  2  information must include:

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

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

  5  jurisdiction in which the provider is located or if required

  6  by the Federal Government.

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

  8  suspension, termination, or other administrative action taken

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

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

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

12  Medicare program; any prior violation of the rules or

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

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

15  regulatory body of this or any other state.

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

17  ownership interest that the provider, or any principal,

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

19  Medicaid provider or health care related entity or any other

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

21  residential care and treatment to persons.

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

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

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

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

26  application, and completion of any necessary background

27  investigation and criminal history record check, the agency

28  must either:

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

30         (b)  Deny the application if the agency determines

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

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

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

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

  4  could affect the effective and efficient administration of the

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

  6  availability of medical care, services, or supplies to

  7  recipients, taking into account geographic location and

  8  reasonable travel time.

  9         (10)  The agency may consider whether deny enrollment

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

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

12  person, or any partner or shareholder having an ownership

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

14  provider is a corporation, partnership, or other business

15  entity, has:

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

17  material fact in making the application, including the

18  submission of an application that conceals the controlling or

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

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

21  not be eligible to participate;

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

23  terminated from, or has involuntarily withdrawn from

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

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

26  governmental or private health care or health insurance

27  program;

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

29  the delivery of any goods or services under Medicaid or

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

31  insurance program including the performance of management or

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  1  administrative services relating to the delivery of goods or

  2  services under any such program;

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

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

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

  6  services;

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

  8  criminal offense relating to the unlawful manufacture,

  9  distribution, prescription, or dispensing of a controlled

10  substance;

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

12  fraud, theft, embezzlement, breach of fiduciary

13  responsibility, or other financial misconduct;

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

15  crime punishable by imprisonment of a year or more which

16  involves moral turpitude;

17         (h)  Been convicted in connection with the interference

18  or obstruction of any investigation into any criminal offense

19  listed in this subsection;

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

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

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

23  any other publicly funded federal or state health care or

24  health insurance program, and been sanctioned accordingly;

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

26  or professional standards board or agency to have violated the

27  standards or conditions relating to licensure or certification

28  or the quality of services provided; or

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

30  assessed under the Medicaid program in which no appeal is

31  pending or after resolution of the proceeding by stipulation

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

  2  of forgiveness or has approved a repayment schedule to which

  3  the provider agrees to adhere.

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

  5  409.908, Florida Statutes, is amended to read:

  6         409.908  Reimbursement of Medicaid providers.--Subject

  7  to specific appropriations, the agency shall reimburse

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

  9  according to methodologies set forth in the rules of the

10  agency and in policy manuals and handbooks incorporated by

11  reference therein.  These methodologies may include fee

12  schedules, reimbursement methods based on cost reporting,

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

14  and other mechanisms the agency considers efficient and

15  effective for purchasing services or goods on behalf of

16  recipients.  Payment for Medicaid compensable services made on

17  behalf of Medicaid eligible persons is subject to the

18  availability of moneys and any limitations or directions

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

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

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

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

23  making any other adjustments necessary to comply with the

24  availability of moneys and any limitations or directions

25  provided for in the General Appropriations Act, provided the

26  adjustment is consistent with legislative intent.

27         (1)  Reimbursement to hospitals licensed under part I

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

29  negotiation.

30         (a)  Reimbursement for inpatient care is limited as

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

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

  2  year per recipient, except for:

  3         1.  Such care provided to a Medicaid recipient under

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

  5  necessity;

  6         2.  Renal dialysis services; and

  7         3.  Other exceptions made by the agency.

  8         (b)  Hospitals that provide services to a

  9  disproportionate share of low-income Medicaid recipients, or

10  that participate in the regional perinatal intensive care

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

12  statutory teaching hospital disproportionate share program, or

13  that participate in the extraordinary disproportionate share

14  program, may receive additional reimbursement. The total

15  amount of payment for disproportionate share hospitals shall

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

17  these payments must be made in compliance with all federal

18  regulations and the methodologies described in ss. 409.911,

19  409.9112, and 409.9113.

20         (c)  The agency is authorized to limit inflationary

21  increases for outpatient hospital services as directed by the

22  General Appropriations Act.

23         Section 9.  Section 409.9119, Florida Statutes, is

24  created to read:

25         409.9119  Disproportionate share program for children's

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

27  the Agency for Health Care Administration shall develop and

28  implement a system under which disproportionate share payments

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

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

31  federal requirements and must distribute funds in each fiscal

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  1  year for which an appropriation is made by making quarterly

  2  Medicaid payments. Notwithstanding s. 409.915, counties are

  3  exempt from contributing toward the cost of this special

  4  reimbursement for hospitals that serve a disproportionate

  5  share of low-income patients.

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

  7  calculate the total amount earned for hospitals that

  8  participate in the children's hospital disproportionate share

  9  program:

10                      TAE = DSR x BMPD x MD

11  Where:

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

13         DSR = disproportionate share rate.

14         BMPD = base Medicaid per diem.

15         MD = Medicaid days.

16         (2)  The agency shall calculate the total additional

17  payment for hospitals that participate in the children's

18  hospital disproportionate share program as follows:

19

20                         TAP = (TAE x TA)

21                                         

22                               STAE

23  Where:

24         TAP = total additional payment for a children's

25  hospital.

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

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

28  participates in the children's hospital disproportionate share

29  program.

30         TA = total appropriation for the children's hospital

31  disproportionate share program.

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  1

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

  3  section until it achieves full compliance with the applicable

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

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

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

  7  remaining participating children's hospitals that are in

  8  compliance.

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

10  Statutes, is amended to read:

11         409.912  Cost-effective purchasing of health care.--The

12  agency shall purchase goods and services for Medicaid

13  recipients in the most cost-effective manner consistent with

14  the delivery of quality medical care.  The agency shall

15  maximize the use of prepaid per capita and prepaid aggregate

16  fixed-sum basis services when appropriate and other

17  alternative service delivery and reimbursement methodologies,

18  including competitive bidding pursuant to s. 287.057, designed

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

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

21  minimize the exposure of recipients to the need for acute

22  inpatient, custodial, and other institutional care and the

23  inappropriate or unnecessary use of high-cost services.

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

25  apply for waivers of applicable federal laws and regulations

26  as necessary to implement more appropriate systems of health

27  care for Medicaid recipients and reduce the cost of the

28  Medicaid program to the state and federal governments and

29  shall implement such programs, after legislative approval,

30  within a reasonable period of time after federal approval.

31  These programs must be designed primarily to reduce the need

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

  2  institutional care, and other high-cost services.

  3         (a)  Before Prior to seeking legislative approval of

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

  5  must shall provide notice and an opportunity for public

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

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

  8  shall be published in the Florida Administrative Weekly not

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

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

11  appropriated to the Department of Elderly Affairs for the

12  Assisted Living for the Elderly Medicaid waiver and are not

13  expended must be transferred to the agency to fund

14  Medicaid-reimbursed nursing home care.

15         Section 11.  Notwithstanding the provisions of chapter

16  287, Florida Statutes, the Agency for Health Care

17  Administration may, at its discretion, renew contracts for

18  fiscal intermediary services once or more for such periods as

19  the agency may decide; however, all such renewals may not

20  combine to exceed a total period longer than the term of the

21  original contract.

22         Section 12.  Section 409.919, Florida Statutes, is

23  amended to read:

24         409.919  Rules.--The agency shall adopt any rules

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

26  all rules necessary to comply with federal requirements. In

27  addition, the Department of Children and Family Services shall

28  adopt and accept transfer of any rules that are necessary to

29  administer its responsibilities of receiving and processing

30  applications for Medicaid and determining Medicaid eligibility

31

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  1  and for assuring compliance with and for administering ss.

  2  409.901-409.906, as it relates to these responsibilities.

  3         Section 13.  Notwithstanding the provisions of sections

  4  236.0812, 409.9071, and 409.908(21), Florida Statutes,

  5  developmental research schools, as authorized under section

  6  228.053, Florida Statutes, shall be authorized to participate

  7  in the Medicaid certified school match program subject to the

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

  9  Florida Statutes.

10         Section 14.  (1)  The Agency for Health Care

11  Administration is directed to submit to the Health Care

12  Financing Administration a request for a waiver that will

13  allow the agency to undertake a pilot project that would

14  implement a coordinated system of care for adult ventilator

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

16  identify a network of skilled nursing facilities that have

17  respiratory departments geared towards intensive treatment and

18  rehabilitation of adult ventilator patients and will contract

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

20  pilot project must allow the agency to evaluate a coordinated

21  and focused system of care for adult ventilator dependent

22  patients to determine the overall cost-effectiveness and

23  improved outcomes for participants.

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

25  2000.  The agency must forward a preliminary report of the

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

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

28  months after project implementation.  The agency must submit a

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

30  recipients no later than February 15, 2002.

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  1         Section 15.  Present subsection (7) of section 430.703,

  2  Florida Statutes, is renumbered as subsection (8), and a new

  3  subsection (7) is added to that section to read:

  4         430.703  Definitions.--As used in this act, the term:

  5         (7)  "Other qualified provider" means an entity

  6  licensed under chapter 400 that meets all the financial and

  7  quality assurance requirements for a provider service network

  8  as specified in s. 409.912, is exempt from chapter 641, and

  9  can demonstrate a long-term care continuum.

10         Section 16.  Subsection (1) of section 430.707, Florida

11  Statutes, is amended to read:

12         430.707  Contracts.--

13         (1)  The department, in consultation with the agency,

14  shall select and contract with managed care organizations and

15  with other qualified providers to provide long-term care

16  within community diversion pilot project areas. Other

17  qualified providers are exempt from chapter 641 and from all

18  licensure and authorization requirements under the Florida

19  Insurance Code with respect to the provision of long term care

20  under a contract with the department.

21         Section 17.  Paragraph (b) of subsection (4) of section

22  409.912, Florida Statutes, is repealed.

23         Section 18.  This act shall take effect July 1, 2000.

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  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                            CS/SB 2242

  3

  4  Narrows the rulemaking authority of the Department of Children
    and Families to receiving and processing the applications for
  5  Medicaid and determining Medicaid eligibility.

  6  Authorizes the Department of Elderly Affairs to contract with
    "other qualified providers" to provide long-term care within
  7  the pilot project.

  8  Exempts other qualified providers from Chapter 641 and from
    all licensure requirements under the Florida Insurance Code
  9  with respect to long-term care under a contract with the
    Department of Elderly Affairs.
10
    Notwithstands Chapter 287 and authorizes the Agency for Health
11  Care Administration to renew contracts for fiscal intermediary
    services once or more for such periods as the agency may
12  decide; however, the renewals may not combine to exceed a
    total period longer than the term of the original contract.
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