Senate Bill 0954c1

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



    Florida Senate - 2000                            CS for SB 954

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




    317-1717-00

  1                      A bill to be entitled

  2         An act relating to health care; amending s.

  3         395.701, F.S.; providing for an assessment

  4         against hospitals for inpatient services;

  5         amending s. 408.904, F.S.; increasing benefits

  6         for certain persons who receive hospital

  7         outpatient services; amending s. 408.905, F.S.;

  8         increasing benefits furnished by Medicaid

  9         providers to recipients of hospital outpatient

10         services; amending s. 905.908, F.S.; increasing

11         reimbursement to hospitals for outpatient care;

12         repealing s. 395.7015, F.S., relating to

13         assessments against certain health care

14         entities; amending s. 409.912, F.S.; providing

15         for a contract with and reimbursement of an

16         entity in Pasco or Pinellas County that

17         provides in-home physician services to Medicaid

18         recipients with degenerative neurological

19         diseases; providing for future repeal;

20         providing appropriations; providing effective

21         dates.

22

23         WHEREAS, the Legislature finds that the Public Medical

24  Assistance Trust Fund is not uniformly applied to all health

25  care entities, and

26         WHEREAS, the responsibility for indigent care is a

27  broad societal problem, not to be placed just on those who

28  provide or receive health care, and

29         WHEREAS, the economic conditions that exist today for

30  health care entities are different than those conditions

31  existing when the assessment was instituted in 1984, and

                                  1

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






    Florida Senate - 2000                            CS for SB 954
    317-1717-00




  1  consequently this assessment places a greater burden on the

  2  taxed entities, NOW, THEREFORE,

  3

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

  5

  6         Section 1.  Subsection (2) of section 395.701, Florida

  7  Statutes, is amended to read:

  8         395.701  Annual assessments on net operating revenues

  9  to fund public medical assistance; administrative fines for

10  failure to pay assessments when due; exemption.--

11         (2)  There is imposed upon each hospital an assessment

12  in an amount equal to 1.5 percent of the annual net operating

13  revenue for inpatient services for each hospital, such revenue

14  to be determined by the agency, based on the actual experience

15  of the hospital as reported to the agency.  Within 6 months

16  after the end of each hospital fiscal year, the agency shall

17  certify the amount of the assessment for each hospital.  The

18  assessment shall be payable to and collected by the agency in

19  equal quarterly amounts, on or before the first day of each

20  calendar quarter, beginning with the first full calendar

21  quarter that occurs after the agency certifies the amount of

22  the assessment for each hospital. All moneys collected

23  pursuant to this subsection shall be deposited into the Public

24  Medical Assistance Trust Fund.

25         Section 2.  Paragraph (c) of subsection (2) of section

26  408.904, Florida Statutes, is amended to read:

27         408.904  Benefits.--

28         (2)  Covered health services include:

29         (c)  Hospital outpatient services.  Those services

30  provided to a member in the outpatient portion of a hospital

31  licensed under part I of chapter 395, up to a limit of $2,000

                                  2

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






    Florida Senate - 2000                            CS for SB 954
    317-1717-00




  1  $1,000 per calendar year per member, that are preventive,

  2  diagnostic, therapeutic, or palliative.

  3         Section 3.  Subsection (6) of section 409.905, Florida

  4  Statutes, is amended to read:

  5         409.905  Mandatory Medicaid services.--The agency may

  6  make payments for the following services, which are required

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

  8  furnished by Medicaid providers to recipients who are

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

10  were provided.  Any service under this section shall be

11  provided only when medically necessary and in accordance with

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

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

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

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

16  the availability of moneys and any limitations or directions

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

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

19  pay for preventive, diagnostic, therapeutic, or palliative

20  care and other services provided to a recipient in the

21  outpatient portion of a hospital licensed under part I of

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

23  physician or licensed dentist, except that payment for such

24  care and services is limited to $2,000 $1,000 per state fiscal

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

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

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

28  necessity.

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

30  409.908, Florida Statutes, is amended to read:

31

                                  3

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






    Florida Senate - 2000                            CS for SB 954
    317-1717-00




  1         409.908  Reimbursement of Medicaid providers.--Subject

  2  to specific appropriations, the agency shall reimburse

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

  4  according to methodologies set forth in the rules of the

  5  agency and in policy manuals and handbooks incorporated by

  6  reference therein.  These methodologies may include fee

  7  schedules, reimbursement methods based on cost reporting,

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

  9  and other mechanisms the agency considers efficient and

10  effective for purchasing services or goods on behalf of

11  recipients.  Payment for Medicaid compensable services made on

12  behalf of Medicaid eligible persons is subject to the

13  availability of moneys and any limitations or directions

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

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

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

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

18  making any other adjustments necessary to comply with the

19  availability of moneys and any limitations or directions

20  provided for in the General Appropriations Act, provided the

21  adjustment is consistent with legislative intent.

22         (1)  Reimbursement to hospitals licensed under part I

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

24  negotiation.

25         (a)  Reimbursement for inpatient care is limited as

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

27  outpatient care is limited to $2,000 $1,000 per state fiscal

28  year per recipient, except for:

29         1.  Such care provided to a Medicaid recipient under

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

31  necessity;

                                  4

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






    Florida Senate - 2000                            CS for SB 954
    317-1717-00




  1         2.  Renal dialysis services; and

  2         3.  Other exceptions made by the agency.

  3         Section 5.  Paragraph (e) is added to subsection (3) of

  4  section 409.912, Florida Statutes, to read:

  5         409.912  Cost-effective purchasing of health care.--The

  6  agency shall purchase goods and services for Medicaid

  7  recipients in the most cost-effective manner consistent with

  8  the delivery of quality medical care.  The agency shall

  9  maximize the use of prepaid per capita and prepaid aggregate

10  fixed-sum basis services when appropriate and other

11  alternative service delivery and reimbursement methodologies,

12  including competitive bidding pursuant to s. 287.057, designed

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

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

15  minimize the exposure of recipients to the need for acute

16  inpatient, custodial, and other institutional care and the

17  inappropriate or unnecessary use of high-cost services.

18         (3)  The agency may contract with:

19         (e)  An entity in Pasco County or Pinellas County that

20  provides in-home physician services to Medicaid recipients

21  having degenerative neurological diseases in order to test the

22  cost-effectiveness of enhanced home-based medical care. The

23  entity providing the services shall be reimbursed on a

24  fee-for-service basis at a rate not less than comparable

25  Medicare reimbursement rates. The agency may apply for waivers

26  of federal regulations necessary to implement such program.

27  This paragraph expires July 1, 2002.

28         Section 6.  (1)  The sum of        is appropriated from

29  the General Revenue Fund to the Agency for Health Care

30  Administration to replace the revenues lost due to the

31  reduction by this act in the assessment on hospitals under

                                  5

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






    Florida Senate - 2000                            CS for SB 954
    317-1717-00




  1  section 395.701, Florida Statutes, and the repeal of section

  2  395.7015, Florida Statutes, and to maintain federal financial

  3  participation.

  4         (2)  The sum of        is appropriated from the General

  5  Revenue Fund to the Agency for Health Care Administration to

  6  provide for the increased reimbursement to hospitals for

  7  hospital outpatient care.

  8         Section 7.  Section 395.7015, Florida Statutes, is

  9  repealed.

10         Section 8.  This act shall take effect July 1, 2000,

11  except that the amendment to section 395.701, Florida

12  Statutes, by this act shall take effect only upon the receipt

13  by the Agency for Health Care Administration of written

14  confirmation from the federal Health Care Financing

15  Administration that the changes contained in such amendment

16  will not adversely affect the use of the remaining assessments

17  as state match for the state's Medicaid program.

18

19          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
20                         Senate Bill 954

21

22  The committee substitute authorizes the Agency for Health Care
    Administration, before July 1, 2002, to contract with and to
23  reimburse an entity located in Pasco County or Pinellas County
    that provides in-home physician services to Medicaid
24  recipients with degenerative neurological diseases to test the
    cost-effectiveness of enhanced home-based medical care.
25

26

27

28

29

30

31

                                  6