HOUSE AMENDMENT
                                                  Bill No. HB 1753   Barcode 064079
    Amendment No. ___ (for drafter's use only)
                            CHAMBER ACTION
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11  Representative(s) Frankel offered the following:
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13         Amendment (with title amendment) 
14  Remove from the bill:  Everything after the enacting clause
15  
16  and insert in lieu thereof:  
17         Section 1.  Subsection (7) of section 409.8132, Florida
18  Statutes, is amended to read:
19         409.8132  Medikids program component.--
20         (7)  ENROLLMENT.--Enrollment in the Medikids program
21  component may only occur during periodic open enrollment
22  periods as specified by the agency. An applicant may apply for
23  enrollment in the Medikids program component and proceed
24  through the eligibility determination process at any time
25  throughout the year. However, enrollment in Medikids shall not
26  begin until the next open enrollment period; and a child may
27  not receive services under the Medikids program until the
28  child is enrolled in a managed care plan or MediPass. In
29  addition, Once determined eligible, an applicant may choose
30  receive choice counseling and select a managed care plan or
31  MediPass. The agency may initiate mandatory assignment for a
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    File original & 9 copies    03/29/01                          
    hmo0006                     02:46 pm         01753-0085-064079

HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 Medikids applicant who has not chosen a managed care plan or 2 MediPass provider after the applicant's voluntary choice 3 period ends. An applicant may select MediPass under the 4 Medikids program component only in counties that have fewer 5 than two managed care plans available to serve Medicaid 6 recipients and only if the federal Health Care Financing 7 Administration determines that MediPass constitutes "health 8 insurance coverage" as defined in Title XXI of the Social 9 Security Act. 10 Section 2. Subsection (9) is added to section 40.904, 11 Florida Statutes, to read: 12 409.904 Optional payments for eligible persons.--The 13 agency may make payments for medical assistance and related 14 services on behalf of the following persons who are determined 15 to be eligible subject to the income, assets, and categorical 16 eligibility tests set forth in federal and state law. Payment 17 on behalf of these Medicaid-eligible persons is subject to the 18 availability of moneys and any limitations established by the 19 General Appropriations Act or chapter 216. 20 (9) A Medicaid-eligible individual for the 21 individual's health insurance premiums, if the agency 22 determines that such payments are cost-effective. 23 Section 3. Subsection (5) of section 409.905, Florida 24 Statutes, is amended to read: 25 409.905 Mandatory Medicaid services.--The agency may 26 make payments for the following services, which are required 27 of the state by Title XIX of the Social Security Act, 28 furnished by Medicaid providers to recipients who are 29 determined to be eligible on the dates on which the services 30 were provided. Any service under this section shall be 31 provided only when medically necessary and in accordance with 2 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 state and federal law. Nothing in this section shall be 2 construed to prevent or limit the agency from adjusting fees, 3 reimbursement rates, lengths of stay, number of visits, number 4 of services, or any other adjustments necessary to comply with 5 the availability of moneys and any limitations or directions 6 provided for in the General Appropriations Act or chapter 216. 7 (5) HOSPITAL INPATIENT SERVICES.--The agency shall pay 8 for all covered services provided for the medical care and 9 treatment of a recipient who is admitted as an inpatient by a 10 licensed physician or dentist to a hospital licensed under 11 part I of chapter 395. However, the agency shall limit the 12 payment for inpatient hospital services for a Medicaid 13 recipient 21 years of age or older to 45 days or the number of 14 days necessary to comply with the General Appropriations Act. 15 (a) The agency is authorized to implement 16 reimbursement and utilization management reforms in order to 17 comply with any limitations or directions in the General 18 Appropriations Act, which may include, but are not limited to: 19 prior authorization for inpatient psychiatric days; enhanced 20 utilization and concurrent review programs for highly utilized 21 services; reduction or elimination of covered days of service; 22 adjusting reimbursement ceilings for variable costs; adjusting 23 reimbursement ceilings for fixed and property costs; and 24 implementing target rates of increase. 25 (b) A licensed hospital maintained primarily for the 26 care and treatment of patients having mental disorders or 27 mental diseases is not eligible to participate in the hospital 28 inpatient portion of the Medicaid program except as provided 29 under in federal law or pursuant to a federally approved 30 waiver. However, the department shall apply for a waiver, 31 within 9 months after June 5, 1991, designed to provide 3 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 behavioral health hospitalization services for mental health 2 reasons to children and adults in the most cost-effective and 3 lowest cost setting possible. Such waiver shall include a 4 request for the opportunity to pay for care in hospitals known 5 under federal law as "institutions for mental disease" or 6 "IMD's." The behavioral health waiver proposal shall propose 7 no additional aggregate cost to the state or Federal 8 Government, and shall be conducted in Hillsborough County, 9 Highlands County, Hardee County, Manatee County, and Polk 10 County. Implementation of the behavioral health waiver 11 proposal shall not be the basis for adjusting a hospital's 12 Medicaid inpatient or outpatient rate. The waiver proposal may 13 incorporate competitive bidding for hospital services, 14 comprehensive brokering, prepaid capitated arrangements, or 15 other mechanisms deemed by the department to show promise in 16 reducing the cost of acute care and increasing the 17 effectiveness of preventive care. When developing The waiver 18 proposal, the department shall take into account price, 19 quality, accessibility, linkages of the hospital to community 20 services and family support programs, plans of the hospital to 21 ensure the earliest discharge possible, and the 22 comprehensiveness of the mental health and other health care 23 services offered by participating providers. 24 (c) Agency for Health Care Administration shall adjust 25 a hospital's current inpatient per diem rate to reflect the 26 cost of serving the Medicaid population at that institution 27 if: 28 1. The hospital experiences an increase in Medicaid 29 caseload by more than 25 percent in any year, primarily 30 resulting from the closure of a hospital in the same service 31 area occurring after July 1, 1995; or 4 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 2. The hospital's Medicaid per diem rate is at least 2 25 percent below the Medicaid per patient cost for that year. 3 4 No later than November 1, 2000, the agency must provide 5 estimated costs for any adjustment in a hospital inpatient per 6 diem pursuant to this paragraph to the Executive Office of the 7 Governor, the House of Representatives General Appropriations 8 Committee, and the Senate Budget Committee. Before the agency 9 implements a change in a hospital's inpatient per diem rate 10 pursuant to this paragraph, the Legislature must have 11 specifically appropriated sufficient funds in the 2001-2002 12 General Appropriations Act to support the increase in cost as 13 estimated by the agency. This paragraph is repealed on July 1, 14 2001. 15 Section 4. Subsection (16) of Section 409.906, Florida 16 Statutes, is amended, and subsection (25) is added to said 17 subsection, to read: 18 409.906 Optional Medicaid services.--Subject to 19 specific appropriations, the agency may make payments for 20 services which are optional to the state under Title XIX of 21 the Social Security Act and are furnished by Medicaid 22 providers to recipients who are determined to be eligible on 23 the dates on which the services were provided. Any optional 24 service that is provided shall be provided only when medically 25 necessary and in accordance with state and federal law. 26 Nothing in this section shall be construed to prevent or limit 27 the agency from adjusting fees, reimbursement rates, lengths 28 of stay, number of visits, or number of services, or making 29 any other adjustments necessary to comply with the 30 availability of moneys and any limitations or directions 31 provided for in the General Appropriations Act or chapter 216. 5 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 If necessary to safeguard the state's systems of providing 2 services to elderly and disabled persons and subject to the 3 notice and review provisions of s. 216.177, the Governor may 4 direct the Agency for Health Care Administration to amend the 5 Medicaid state plan to delete the optional Medicaid service 6 known as "Intermediate Care Facilities for the Developmentally 7 Disabled." Optional services may include: 8 (16) INTERMEDIATE CARE SERVICES.--The agency may pay 9 for 24-hour-a-day intermediate care nursing and rehabilitation 10 services rendered to a recipient in a nursing facility 11 licensed under part II of chapter 400, if the services are 12 ordered by and provided under the direction of a physician, 13 meet nursing home level of care criteria as determined by the 14 Comprehensive Assessment and Review Long-Term Care (CARE) 15 Program of the Department of Elderly Affairs, and do not meet 16 the definition of "general care" as used in the Medicaid 17 budget estimating process. 18 (25) ASSISTIVE CARE SERVICES.--The agency may pay for 19 assistive care services provided to recipients with functional 20 or cognitive impairments residing in assisted living 21 facilities, adult family-care homes, or residential treatment 22 facilities with 16 or fewer beds. These services may include 23 health support, assistance with the activities of daily living 24 and the instrumental acts of daily living, assistance with 25 medication administration, and arrangements for health care. 26 Section 5. Section 409.908, Florida Statutes, is 27 amended to read: 28 409.908 Reimbursement of Medicaid providers.--Subject 29 to specific appropriations, the agency shall reimburse 30 Medicaid providers, in accordance with state and federal law, 31 according to methodologies set forth in the rules of the 6 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 agency and in policy manuals and handbooks incorporated by 2 reference therein. These methodologies may include fee 3 schedules, reimbursement methods based on cost reporting, 4 negotiated fees, competitive bidding pursuant to s. 287.057, 5 and other mechanisms the agency considers efficient and 6 effective for purchasing services or goods on behalf of 7 recipients. Payment for Medicaid compensable services made on 8 behalf of Medicaid eligible persons is subject to the 9 availability of moneys and any limitations or directions 10 provided for in the General Appropriations Act or chapter 216. 11 Further, nothing in this section shall be construed to prevent 12 or limit the agency from adjusting fees, reimbursement rates, 13 lengths of stay, number of visits, or number of services, or 14 making any other adjustments necessary to comply with the 15 availability of moneys and any limitations or directions 16 provided for in the General Appropriations Act, provided the 17 adjustment is consistent with legislative intent. 18 (1) Reimbursement to hospitals licensed under part I 19 of chapter 395 must be made prospectively or on the basis of 20 negotiation. The agency shall reimburse for hospital inpatient 21 and outpatient services under this subsection at rates no 22 greater than 95 percent of the reimbursement rates in effect 23 for the 2000-2001 state fiscal year. 24 (a) Reimbursement for inpatient care is limited as 25 provided for in s. 409.905(5), except for: 26 1. The raising of rate reimbursement caps, excluding 27 rural hospitals. 28 2. Recognition of the costs of graduate medical 29 education. 30 3. Other methodologies recognized in the General 31 Appropriations Act. 7 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 2 During the years funds are transferred from the Board of 3 Regents, any reimbursement supported by such funds shall be 4 subject to certification by the Board of Regents that the 5 hospital has complied with s. 381.0403. The agency is 6 authorized to receive funds from state entities, including, 7 but not limited to, the Board of Regents, local governments, 8 and other local political subdivisions, for the purpose of 9 making special exception payments, including federal matching 10 funds, through the Medicaid inpatient reimbursement 11 methodologies. Funds received from state entities or local 12 governments for this purpose shall be separately accounted for 13 and shall not be commingled with other state or local funds in 14 any manner. Notwithstanding this section and s. 409.915, 15 counties are exempt from contributing toward the cost of the 16 special exception reimbursement for hospitals serving a 17 disproportionate share of low-income persons and providing 18 graduate medical education. 19 (b) Reimbursement for hospital outpatient care is 20 limited to $1,500 per state fiscal year per recipient, except 21 for: 22 1. Such care provided to a Medicaid recipient under 23 age 21, in which case the only limitation is medical 24 necessity. 25 2. Renal dialysis services. 26 3. Other exceptions made by the agency. 27 28 The agency is authorized to receive funds from state entities, 29 including, but not limited to, the Board of Regents, local 30 governments, and other local political subdivisions, for the 31 purpose of making payments, including federal matching funds, 8 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 through the Medicaid outpatient reimbursement methodologies. 2 Funds received from state entities and local governments for 3 this purpose shall be separately accounted for and shall not 4 be commingled with other state or local funds in any manner. 5 (c) Hospitals that provide services to a 6 disproportionate share of low-income Medicaid recipients, or 7 that participate in the regional perinatal intensive care 8 center program under chapter 383, or that participate in the 9 statutory teaching hospital disproportionate share program may 10 receive additional reimbursement. The total amount of payment 11 for disproportionate share hospitals shall be fixed by the 12 General Appropriations Act. The computation of these payments 13 must be made in compliance with all federal regulations and 14 the methodologies described in ss. 409.911, 409.9112, and 15 409.9113. 16 (d) The agency is authorized to limit inflationary 17 increases for outpatient hospital services as directed by the 18 General Appropriations Act. 19 (2)(a)1. Reimbursement to nursing homes licensed under 20 part II of chapter 400 and state-owned-and-operated 21 intermediate care facilities for the developmentally disabled 22 licensed under chapter 393 must be made prospectively. 23 2. Unless otherwise limited or directed in the General 24 Appropriations Act, reimbursement to hospitals licensed under 25 part I of chapter 395 for the provision of swing-bed nursing 26 home services must be made on the basis of the average 27 statewide nursing home payment, and reimbursement to a 28 hospital licensed under part I of chapter 395 for the 29 provision of skilled nursing services must be made on the 30 basis of the average nursing home payment for those services 31 in the county in which the hospital is located. When a 9 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 hospital is located in a county that does not have any 2 community nursing homes, reimbursement must be determined by 3 averaging the nursing home payments, in counties that surround 4 the county in which the hospital is located. Reimbursement to 5 hospitals, including Medicaid payment of Medicare copayments, 6 for skilled nursing services shall be limited to 30 days, 7 unless a prior authorization has been obtained from the 8 agency. Medicaid reimbursement may be extended by the agency 9 beyond 30 days, and approval must be based upon verification 10 by the patient's physician that the patient requires 11 short-term rehabilitative and recuperative services only, in 12 which case an extension of no more than 15 days may be 13 approved. Reimbursement to a hospital licensed under part I of 14 chapter 395 for the temporary provision of skilled nursing 15 services to nursing home residents who have been displaced as 16 the result of a natural disaster or other emergency may not 17 exceed the average county nursing home payment for those 18 services in the county in which the hospital is located and is 19 limited to the period of time which the agency considers 20 necessary for continued placement of the nursing home 21 residents in the hospital. 22 (b) Subject to any limitations or directions provided 23 for in the General Appropriations Act, the agency shall 24 establish and implement a Florida Title XIX Long-Term Care 25 Reimbursement Plan (Medicaid) for nursing home care in order 26 to provide care and services in conformance with the 27 applicable state and federal laws, rules, regulations, and 28 quality and safety standards and to ensure that individuals 29 eligible for medical assistance have reasonable geographic 30 access to such care. The agency shall not provide for any 31 increases in reimbursement rates to nursing homes associated 10 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 with changes in ownership. Under the plan, interim rate 2 adjustments shall not be granted to reflect increases in the 3 cost of general or professional liability insurance for 4 nursing homes unless the following criteria are met: have at 5 least a 65 percent Medicaid utilization in the most recent 6 cost report submitted to the agency, and the increase in 7 general or professional liability costs to the facility for 8 the most recent policy period affects the total Medicaid per 9 diem by at least 5 percent. This rate adjustment shall not 10 result in the per diem exceeding the class ceiling. This 11 provision shall apply only to fiscal year 2000-2001 and shall 12 be implemented to the extent existing appropriations are 13 available. The agency shall report to the Governor, the 14 Speaker of the House of Representatives, and the President of 15 the Senate by December 31, 2000, on the cost of liability 16 insurance for Florida nursing homes for fiscal years 1999 and 17 2000 and the extent to which these costs are not being 18 compensated by the Medicaid program. Medicaid-participating 19 nursing homes shall be required to report to the agency 20 information necessary to compile this report. Effective no 21 earlier than the rate-setting period beginning April 1, 1999, 22 the agency shall establish a case-mix reimbursement 23 methodology for the rate of payment for long-term care 24 services for nursing home residents. The agency shall compute 25 a per diem rate for Medicaid residents, adjusted for case mix, 26 which is based on a resident classification system that 27 accounts for the relative resource utilization by different 28 types of residents and which is based on level-of-care data 29 and other appropriate data. The case-mix methodology developed 30 by the agency shall take into account the medical, behavioral, 31 and cognitive deficits of residents. In developing the 11 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 reimbursement methodology, the agency shall evaluate and 2 modify other aspects of the reimbursement plan as necessary to 3 improve the overall effectiveness of the plan with respect to 4 the costs of patient care, operating costs, and property 5 costs. In the event adequate data are not available, the 6 agency is authorized to adjust the patient's care component or 7 the per diem rate to more adequately cover the cost of 8 services provided in the patient's care component. The agency 9 shall work with the Department of Elderly Affairs, the Florida 10 Health Care Association, and the Florida Association of Homes 11 for the Aging in developing the methodology. It is the intent 12 of the Legislature that the reimbursement plan achieve the 13 goal of providing access to health care for nursing home 14 residents who require large amounts of care while encouraging 15 diversion services as an alternative to nursing home care for 16 residents who can be served within the community. The agency 17 shall base the establishment of any maximum rate of payment, 18 whether overall or component, on the available moneys as 19 provided for in the General Appropriations Act. The agency may 20 base the maximum rate of payment on the results of 21 scientifically valid analysis and conclusions derived from 22 objective statistical data pertinent to the particular maximum 23 rate of payment. 24 (3) Subject to any limitations or directions provided 25 for in the General Appropriations Act, the following Medicaid 26 services and goods may be reimbursed on a fee-for-service 27 basis. For each allowable service or goods furnished in 28 accordance with Medicaid rules, policy manuals, handbooks, and 29 state and federal law, the payment shall be the amount billed 30 by the provider, the provider's usual and customary charge, or 31 the maximum allowable fee established by the agency, whichever 12 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 amount is less, with the exception of those services or goods 2 for which the agency makes payment using a methodology based 3 on capitation rates, average costs, or negotiated fees. 4 (a) Advanced registered nurse practitioner services. 5 (b) Birth center services. 6 (c) Chiropractic services. 7 (d) Community mental health services. 8 (e) Dental services, including oral and maxillofacial 9 surgery. 10 (f) Durable medical equipment. 11 (g) Hearing services. 12 (h) Occupational therapy for Medicaid recipients under 13 age 21. 14 (i) Optometric services. 15 (j) Orthodontic services. 16 (k) Personal care for Medicaid recipients under age 17 21. 18 (l) Physical therapy for Medicaid recipients under age 19 21. 20 (m) Physician assistant services. 21 (n) Podiatric services. 22 (o) Portable X-ray services. 23 (p) Private-duty nursing for Medicaid recipients under 24 age 21. 25 (q) Registered nurse first assistant services. 26 (r) Respiratory therapy for Medicaid recipients under 27 age 21. 28 (s) Speech therapy for Medicaid recipients under age 29 21. 30 (t) Visual services. 31 (4) Subject to any limitations or directions provided 13 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 for in the General Appropriations Act, alternative health 2 plans, health maintenance organizations, and prepaid health 3 plans shall be reimbursed a fixed, prepaid amount negotiated, 4 or competitively bid pursuant to s. 287.057, by the agency and 5 prospectively paid to the provider monthly for each Medicaid 6 recipient enrolled. The amount may not exceed the average 7 amount the agency determines it would have paid, based on 8 claims experience, for recipients in the same or similar 9 category of eligibility. The agency shall calculate 10 capitation rates on a regional basis and, beginning September 11 1, 1995, shall include age-band differentials in such 12 calculations. Effective July 1, 2001, the cost of exempting 13 statutory teaching hospitals, specialty hospitals, and 14 community hospital education program hospitals from 15 reimbursement ceilings and the cost of special Medicaid 16 payments shall not be included in premiums paid to health 17 maintenance organizations or prepaid health care plans. 18 (5) An ambulatory surgical center shall be reimbursed 19 the lesser of the amount billed by the provider or the 20 Medicare-established allowable amount for the facility. 21 (6) A provider of early and periodic screening, 22 diagnosis, and treatment services to Medicaid recipients who 23 are children under age 21 shall be reimbursed using an 24 all-inclusive rate stipulated in a fee schedule established by 25 the agency. A provider of the visual, dental, and hearing 26 components of such services shall be reimbursed the lesser of 27 the amount billed by the provider or the Medicaid maximum 28 allowable fee established by the agency. 29 (7) A provider of family planning services shall be 30 reimbursed the lesser of the amount billed by the provider or 31 an all-inclusive amount per type of visit for physicians and 14 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 advanced registered nurse practitioners, as established by the 2 agency in a fee schedule. 3 (8) A provider of home-based or community-based 4 services rendered pursuant to a federally approved waiver 5 shall be reimbursed based on an established or negotiated rate 6 for each service. These rates shall be established according 7 to an analysis of the expenditure history and prospective 8 budget developed by each contract provider participating in 9 the waiver program, or under any other methodology adopted by 10 the agency and approved by the Federal Government in 11 accordance with the waiver. Effective July 1, 1996, privately 12 owned and operated community-based residential facilities 13 which meet agency requirements and which formerly received 14 Medicaid reimbursement for the optional intermediate care 15 facility for the mentally retarded service may participate in 16 the developmental services waiver as part of a 17 home-and-community-based continuum of care for Medicaid 18 recipients who receive waiver services. 19 (9) A provider of home health care services or of 20 medical supplies and appliances shall be reimbursed on the 21 basis of competitive bidding or for the lesser of the amount 22 billed by the provider or the agency's established maximum 23 allowable amount, except that, in the case of the rental of 24 durable medical equipment, the total rental payments may not 25 exceed the purchase price of the equipment over its expected 26 useful life or the agency's established maximum allowable 27 amount, whichever amount is less. 28 (10) A hospice shall be reimbursed through a 29 prospective system for each Medicaid hospice patient at 30 Medicaid rates using the methodology established for hospice 31 reimbursement pursuant to Title XVIII of the federal Social 15 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 Security Act. 2 (11) A provider of independent laboratory services 3 shall be reimbursed the least of the amount billed by the 4 provider, the provider's usual and customary charge, or the 5 Medicaid maximum allowable fee established by the agency. 6 (12)(a) A physician shall be reimbursed the lesser of 7 the amount billed by the provider or the Medicaid maximum 8 allowable fee established by the agency. 9 (b) The agency shall adopt a fee schedule, subject to 10 any limitations or directions provided for in the General 11 Appropriations Act, based on a resource-based relative value 12 scale for pricing Medicaid physician services. Under this fee 13 schedule, physicians shall be paid a dollar amount for each 14 service based on the average resources required to provide the 15 service, including, but not limited to, estimates of average 16 physician time and effort, practice expense, and the costs of 17 professional liability insurance. The fee schedule shall 18 provide increased reimbursement for preventive and primary 19 care services and lowered reimbursement for specialty services 20 by using at least two conversion factors, one for cognitive 21 services and another for procedural services. The fee 22 schedule shall not increase total Medicaid physician 23 expenditures unless funds are specifically provided for such 24 increase. However, in no case may any increase result in 25 physicians being paid more than the Medicare fee moneys are 26 available, and shall be phased in over a 2-year period 27 beginning on July 1, 1994. The Agency for Health Care 28 Administration shall seek the advice of a 16-member advisory 29 panel in formulating and adopting the fee schedule. The panel 30 shall consist of Medicaid physicians licensed under chapters 31 458 and 459 and shall be composed of 50 percent primary care 16 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 physicians and 50 percent specialty care physicians. 2 (c) Notwithstanding paragraph (b), reimbursement fees 3 to physicians for providing total obstetrical services to 4 Medicaid recipients, which include prenatal, delivery, and 5 postpartum care, shall be at least $1,500 per delivery for a 6 pregnant woman with low medical risk and at least $2,000 per 7 delivery for a pregnant woman with high medical risk. However, 8 reimbursement to physicians working in Regional Perinatal 9 Intensive Care Centers designated pursuant to chapter 383, for 10 services to certain pregnant Medicaid recipients with a high 11 medical risk, may be made according to obstetrical care and 12 neonatal care groupings and rates established by the agency. 13 Nurse midwives licensed under part I of chapter 464 or 14 midwives licensed under chapter 467 shall be reimbursed at no 15 less than 80 percent of the low medical risk fee. The agency 16 shall by rule determine, for the purpose of this paragraph, 17 what constitutes a high or low medical risk pregnant woman and 18 shall not pay more based solely on the fact that a caesarean 19 section was performed, rather than a vaginal delivery. The 20 agency shall by rule determine a prorated payment for 21 obstetrical services in cases where only part of the total 22 prenatal, delivery, or postpartum care was performed. The 23 Department of Health shall adopt rules for appropriate 24 insurance coverage for midwives licensed under chapter 467. 25 Prior to the issuance and renewal of an active license, or 26 reactivation of an inactive license for midwives licensed 27 under chapter 467, such licensees shall submit proof of 28 coverage with each application. 29 (13) Medicare premiums for persons eligible for both 30 Medicare and Medicaid coverage shall be paid at the rates 31 established by Title XVIII of the Social Security Act. For 17 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 Medicare services rendered to Medicaid-eligible persons, 2 Medicaid shall pay Medicare deductibles and coinsurance as 3 follows: 4 (a) Medicaid shall make no payment toward deductibles 5 and coinsurance for any service that is not covered by 6 Medicaid. 7 (b) Medicaid's financial obligation for deductibles 8 and coinsurance payments shall be based on Medicare allowable 9 fees, not on a provider's billed charges. 10 (c) Medicaid will pay no portion of Medicare 11 deductibles and coinsurance when payment that Medicare has 12 made for the service equals or exceeds what Medicaid would 13 have paid if it had been the sole payor. The combined payment 14 of Medicare and Medicaid shall not exceed the amount Medicaid 15 would have paid had it been the sole payor. The Legislature 16 finds that there has been confusion regarding the 17 reimbursement for services rendered to dually eligible 18 Medicare beneficiaries. Accordingly, the Legislature clarifies 19 that it has always been the intent of the Legislature before 20 and after 1991 that, in reimbursing in accordance with fees 21 established by Title XVIII for premiums, deductibles, and 22 coinsurance for Medicare services rendered by physicians to 23 Medicaid eligible persons, physicians be reimbursed at the 24 lesser of the amount billed by the physician or the Medicaid 25 maximum allowable fee established by the Agency for Health 26 Care Administration, as is permitted by federal law. It has 27 never been the intent of the Legislature with regard to such 28 services rendered by physicians that Medicaid be required to 29 provide any payment for deductibles, coinsurance, or 30 copayments for Medicare cost sharing, or any expenses incurred 31 relating thereto, in excess of the payment amount provided for 18 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 under the State Medicaid plan for such service. This payment 2 methodology is applicable even in those situations in which 3 the payment for Medicare cost sharing for a qualified Medicare 4 beneficiary with respect to an item or service is reduced or 5 eliminated. This expression of the Legislature is in 6 clarification of existing law and shall apply to payment for, 7 and with respect to provider agreements with respect to, items 8 or services furnished on or after the effective date of this 9 act. This paragraph applies to payment by Medicaid for items 10 and services furnished before the effective date of this act 11 if such payment is the subject of a lawsuit that is based on 12 the provisions of this section, and that is pending as of, or 13 is initiated after, the effective date of this act. 14 (d) Notwithstanding The following provisions are 15 exceptions to paragraphs (a)-(c): 16 1. Medicaid payments for Nursing Home Medicare part A 17 coinsurance shall be the lesser of the Medicare coinsurance 18 amount or the Medicaid nursing home per diem rate. 19 2. Medicaid shall pay all deductibles and coinsurance 20 for Nursing Home Medicare part B services. 21 2.3. Medicaid shall pay all deductibles and 22 coinsurance for Medicare-eligible recipients receiving 23 freestanding end stage renal dialysis center services. 24 4. Medicaid shall pay all deductibles and coinsurance 25 for hospital outpatient Medicare part B services. 26 3.5. Medicaid payments for general hospital inpatient 27 services shall be limited to the Medicare deductible per spell 28 of illness. Medicaid shall make no payment toward coinsurance 29 for Medicare general hospital inpatient services. 30 4.6. Medicaid shall pay all deductibles and 31 coinsurance for Medicare emergency transportation services 19 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 provided by ambulances licensed pursuant to chapter 401. 2 (14) A provider of prescribed drugs shall be 3 reimbursed the least of the amount billed by the provider, the 4 provider's usual and customary charge, or the Medicaid maximum 5 allowable fee established by the agency, plus a dispensing 6 fee. The agency is directed to implement a variable dispensing 7 fee for payments for prescribed medicines while ensuring 8 continued access for Medicaid recipients. The variable 9 dispensing fee may be based upon, but not limited to, either 10 or both the volume of prescriptions dispensed by a specific 11 pharmacy provider and the volume of prescriptions dispensed to 12 an individual recipient. The agency is authorized to limit 13 reimbursement for prescribed medicine in order to comply with 14 any limitations or directions provided for in the General 15 Appropriations Act, which may include implementing a 16 prospective or concurrent utilization review program. 17 (15) A provider of primary care case management 18 services rendered pursuant to a federally approved waiver 19 shall be reimbursed by payment of a fixed, prepaid monthly sum 20 for each Medicaid recipient enrolled with the provider. 21 (16) A provider of rural health clinic services and 22 federally qualified health center services shall be reimbursed 23 a rate per visit based on total reasonable costs of the 24 clinic, as determined by the agency in accordance with federal 25 regulations. 26 (17) A provider of targeted case management services 27 shall be reimbursed pursuant to an established fee, except 28 where the Federal Government requires a public provider be 29 reimbursed on the basis of average actual costs. 30 (18) Unless otherwise provided for in the General 31 Appropriations Act, a provider of transportation services 20 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 shall be reimbursed the lesser of the amount billed by the 2 provider or the Medicaid maximum allowable fee established by 3 the agency, except when the agency has entered into a direct 4 contract with the provider, or with a community transportation 5 coordinator, for the provision of an all-inclusive service, or 6 when services are provided pursuant to an agreement negotiated 7 between the agency and the provider. The agency, as provided 8 for in s. 427.0135, shall purchase transportation services 9 through the community coordinated transportation system, if 10 available, unless the agency determines a more cost-effective 11 method for Medicaid clients. Nothing in this subsection shall 12 be construed to limit or preclude the agency from contracting 13 for services using a prepaid capitation rate or from 14 establishing maximum fee schedules, individualized 15 reimbursement policies by provider type, negotiated fees, 16 prior authorization, competitive bidding, increased use of 17 mass transit, or any other mechanism that the agency considers 18 efficient and effective for the purchase of services on behalf 19 of Medicaid clients, including implementing a transportation 20 eligibility process. The agency shall not be required to 21 contract with any community transportation coordinator or 22 transportation operator that has been determined by the 23 agency, the Department of Legal Affairs Medicaid Fraud Control 24 Unit, or any other state or federal agency to have engaged in 25 any abusive or fraudulent billing activities. The agency is 26 authorized to make other changes necessary to secure approval 27 of federal waivers needed to permit federal financing of 28 Medicaid transportation services at the service matching rate 29 rather than the administrative matching rate. 30 (19) County health department services may be 31 reimbursed a rate per visit based on total reasonable costs of 21 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 the clinic, as determined by the agency in accordance with 2 federal regulations under the authority of 42 C.F.R. s. 3 431.615. 4 (20) A renal dialysis facility that provides dialysis 5 services under s. 409.906(9) must be reimbursed the lesser of 6 the amount billed by the provider, the provider's usual and 7 customary charge, or the maximum allowable fee established by 8 the agency, whichever amount is less. 9 (21) The agency shall reimburse school districts which 10 certify the state match pursuant to ss. 236.0812 and 409.9071 11 for the federal portion of the school district's allowable 12 costs to deliver the services, based on the reimbursement 13 schedule. The school district shall determine the costs for 14 delivering services as authorized in ss. 236.0812 and 409.9071 15 for which the state match will be certified. Reimbursement of 16 school-based providers is contingent on such providers being 17 enrolled as Medicaid providers and meeting the qualifications 18 contained in 42 C.F.R. s. 440.110, unless otherwise waived by 19 the federal Health Care Financing Administration. Speech 20 therapy providers who are certified through the Department of 21 Education pursuant to rule 6A-4.0176, Florida Administrative 22 Code, are eligible for reimbursement for services that are 23 provided on school premises. Any employee of the school 24 district who has been fingerprinted and has received a 25 criminal background check in accordance with Department of 26 Education rules and guidelines shall be exempt from any agency 27 requirements relating to criminal background checks. 28 Elementary, middle, and secondary schools affiliated with 29 Florida universities may separately enroll in the Medicaid 30 certified school match program and may certify local 31 expenditures for Medicaid school health services and the 22 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 administrative claiming program. 2 (22) Reimbursement to state-owned-and-operated 3 intermediate care facilities for the developmentally disabled 4 licensed under chapter 393 must be made prospectively. 5 Section 6. Paragraph (c) of subsection (1), paragraph 6 (b) of subsection (3), and subsection (7) of section 409.911, 7 Florida Statutes, are amended to read: 8 409.911 Disproportionate share program.--Subject to 9 specific allocations established within the General 10 Appropriations Act and any limitations established pursuant to 11 chapter 216, the agency shall distribute, pursuant to this 12 section, moneys to hospitals providing a disproportionate 13 share of Medicaid or charity care services by making quarterly 14 Medicaid payments as required. Notwithstanding the provisions 15 of s. 409.915, counties are exempt from contributing toward 16 the cost of this special reimbursement for hospitals serving a 17 disproportionate share of low-income patients. 18 (1) Definitions.--As used in this section and s. 19 409.9112: 20 (c) "Base Medicaid per diem" means the hospital's 21 Medicaid per diem rate initially established by the Agency for 22 Health Care Administration on January 1, 1999 prior to the 23 beginning of each state fiscal year. The base Medicaid per 24 diem rate shall not include any additional per diem increases 25 received as a result of the disproportionate share 26 distribution. 27 (3) In computing the disproportionate share rate: 28 (b) The agency shall use 1994 the most recent calendar 29 year audited financial data available at the beginning of each 30 state fiscal year for the calculation of disproportionate 31 share payments under this section. 23 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 (7) For fiscal year 1991-1992 and all years other than 2 1992-1993, The following criteria shall be used in determining 3 the disproportionate share percentage: 4 (a) If the disproportionate share rate is less than 10 5 percent, the disproportionate share percentage is zero and 6 there is no additional payment. 7 (b) If the disproportionate share rate is greater than 8 or equal to 10 percent, but less than 20 percent, then the 9 disproportionate share percentage is 1.8478498 2.1544347. 10 (c) If the disproportionate share rate is greater than 11 or equal to 20 percent, but less than 30 percent, then the 12 disproportionate share percentage is 3.4145488 4.6415888766. 13 (d) If the disproportionate share rate is greater than 14 or equal to 30 percent, but less than 40 percent, then the 15 disproportionate share percentage is 6.3095734 10.0000001388. 16 (e) If the disproportionate share rate is greater than 17 or equal to 40 percent, but less than 50 percent, then the 18 disproportionate share percentage is 11.6591440 21.544347299. 19 (f) If the disproportionate share rate is greater than 20 or equal to 50 percent, but less than 60 percent, then the 21 disproportionate share percentage is 73.5642254 46.41588941. 22 (g) If the disproportionate share rate is greater than 23 or equal to 60 percent but less than 72.5 percent, then the 24 disproportionate share percentage is 135.9356391 100. 25 (h) If the disproportionate share rate is greater than 26 or equal to 72.5 percent, then the disproportionate share 27 percentage is 170. 28 Section 7. Section 409.91195, Florida Statutes, is 29 amended to read: 30 409.91195 Medicaid Pharmaceutical and Therapeutics 31 Committee; restricted drug formulary.--There is created a 24 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 Medicaid Pharmaceutical and Therapeutics Committee for the 2 purpose of developing a restricted drug formulary. The 3 committee shall develop and implement a voluntary Medicaid 4 preferred prescribed drug designation program. The program 5 established under this section shall provide information to 6 Medicaid providers on medically appropriate and cost-efficient 7 prescription drug therapies through the development and 8 publication of a restricted drug formulary voluntary Medicaid 9 preferred prescribed-drug list. 10 (1) The Medicaid Pharmaceutical and Therapeutics 11 Committee shall be comprised of nine members as specified in 12 42 U.S.C. s. 1396 appointed as follows: one practicing 13 physician licensed under chapter 458, appointed by the Speaker 14 of the House of Representatives from a list of recommendations 15 from the Florida Medical Association; one practicing physician 16 licensed under chapter 459, appointed by the Speaker of the 17 House of Representatives from a list of recommendations from 18 the Florida Osteopathic Medical Association; one practicing 19 physician licensed under chapter 458, appointed by the 20 President of the Senate from a list of recommendations from 21 the Florida Academy of Family Physicians; one practicing 22 podiatric physician licensed under chapter 461, appointed by 23 the President of the Senate from a list of recommendations 24 from the Florida Podiatric Medical Association; one trauma 25 surgeon licensed under chapter 458, appointed by the Speaker 26 of the House of Representatives from a list of recommendations 27 from the American College of Surgeons; one practicing dentist 28 licensed under chapter 466, appointed by the President of the 29 Senate from a list of recommendations from the Florida Dental 30 Association; one practicing pharmacist licensed under chapter 31 465, appointed by the Governor from a list of recommendations 25 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 from the Florida Pharmacy Association; one practicing 2 pharmacist licensed under chapter 465, appointed by the 3 Governor from a list of recommendations from the Florida 4 Society of Health System Pharmacists; and one health care 5 professional with expertise in clinical pharmacology appointed 6 by the Governor from a list of recommendations from the 7 Pharmaceutical Research and Manufacturers Association. The 8 members shall be appointed to serve for terms of 2 years from 9 the date of their appointment. Members may be appointed to 10 more than one term. The Agency for Health Care Administration 11 shall serve as staff for the committee and assist them with 12 all ministerial duties. 13 (2) With the advice of Upon recommendation by the 14 committee, the Agency for Health Care Administration shall 15 establish a restricted drug formulary the voluntary Medicaid 16 preferred prescribed-drug list. Upon further recommendation by 17 the committee, the agency shall add to, delete from, or modify 18 the list. The committee shall also review requests for 19 additions to, deletions from, or modifications of the 20 formulary as presented to it by the agency; and, upon further 21 recommendation by the committee, the agency shall add to, 22 delete from, or modify the formulary as appropriate list. The 23 list shall be adopted by the committee in consultation with 24 medical specialists, when appropriate, using the following 25 criteria: use of the list shall be voluntary by providers and 26 the list must provide for medically appropriate drug therapies 27 for Medicaid patients which achieve cost savings in the 28 Medicaid program. 29 (3) The Agency for Health Care Administration shall 30 publish and disseminate the restricted drug formulary 31 voluntary Medicaid preferred prescribed drug list to all 26 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 Medicaid prescribing providers in the state. 2 Section 8. Subsection (2) of section 409.9116, Florida 3 Statutes, is amended to read: 4 409.9116 Disproportionate share/financial assistance 5 program for rural hospitals.--In addition to the payments made 6 under s. 409.911, the Agency for Health Care Administration 7 shall administer a federally matched disproportionate share 8 program and a state-funded financial assistance program for 9 statutory rural hospitals. The agency shall make 10 disproportionate share payments to statutory rural hospitals 11 that qualify for such payments and financial assistance 12 payments to statutory rural hospitals that do not qualify for 13 disproportionate share payments. The disproportionate share 14 program payments shall be limited by and conform with federal 15 requirements. Funds shall be distributed quarterly in each 16 fiscal year for which an appropriation is made. 17 Notwithstanding the provisions of s. 409.915, counties are 18 exempt from contributing toward the cost of this special 19 reimbursement for hospitals serving a disproportionate share 20 of low-income patients. 21 (2) The agency shall use the following formula for 22 distribution of funds for the disproportionate share/financial 23 assistance program for rural hospitals: 24 (a) The agency shall first determine a preliminary 25 payment amount for each rural hospital by allocating all 26 available state funds using the following formula: 27 28 PDAER = (TAERH x TARH)/STAERH 29 30 Where: 31 PDAER = preliminary distribution amount for each rural 27 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 hospital. 2 TAERH = total amount earned by each rural hospital. 3 TARH = total amount appropriated or distributed under 4 this section. 5 STAERH = sum of total amount earned by each rural 6 hospital. 7 (b) Federal matching funds for the disproportionate 8 share program shall then be calculated for those hospitals 9 that qualify for disproportionate share in paragraph (a). 10 (c) The state-funds-only payment amount shall then be 11 calculated for each hospital using the following formula: 12 13 SFOER = Maximum value of (1) SFOL - PDAER or (2) 0 14 15 Where: 16 SFOER = state-funds-only payment amount for each rural 17 hospital. 18 SFOL = state-funds-only payment level, which is set at 19 4 percent of TARH. 20 21 In calculating the SFOER, PDAER includes federal matching 22 funds from paragraph (b). 23 (d) The adjusted total amount allocated to the rural 24 disproportionate share program shall then be calculated using 25 the following formula: 26 27 ATARH = (TARH - SSFOER) 28 29 Where: 30 ATARH = adjusted total amount appropriated or 31 distributed under this section. 28 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 SSFOER = sum of the state-funds-only payment amount 2 calculated under paragraph (c) for all rural hospitals. 3 (e) The distribution of the adjusted total amount of 4 rural disproportionate share hospital funds shall then be 5 calculated using the following formula: 6 7 DAERH = [(TAERH x ATARH)/STAERH] 8 9 Where: 10 DAERH = distribution amount for each rural hospital. 11 (f) Federal matching funds for the disproportionate 12 share program shall then be calculated for those hospitals 13 that qualify for disproportionate share in paragraph (e). 14 (g) State-funds-only payment amounts calculated under 15 paragraph (c) and corresponding federal matching funds are 16 then added to the results of paragraph (f) to determine the 17 total distribution amount for each rural hospital. In 18 determining the payment amount for each rural hospital under 19 this section, the agency shall first allocate all available 20 state funds by the following formula: 21 22 DAER = (TAERH x TARH)/STAERH 23 24 Where: 25 DAER = distribution amount for each rural hospital. 26 STAERH = sum of total amount earned by each rural 27 hospital. 28 TAERH = total amount earned by each rural hospital. 29 TARH = total amount appropriated or distributed under 30 this section. 31 29 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 Federal matching funds for the disproportionate share program 2 shall then be calculated for those hospitals that qualify for 3 disproportionate share payments under this section. 4 Section 9. Paragraph (b) of subsection (3), 5 subsections (26), and paragraph (a) of subsection (37) of 6 section 409.912, Florida Statutes, are amended to read: 7 409.912 Cost-effective purchasing of health care.--The 8 agency shall purchase goods and services for Medicaid 9 recipients in the most cost-effective manner consistent with 10 the delivery of quality medical care. The agency shall 11 maximize the use of prepaid per capita and prepaid aggregate 12 fixed-sum basis services when appropriate and other 13 alternative service delivery and reimbursement methodologies, 14 including competitive bidding pursuant to s. 287.057, designed 15 to facilitate the cost-effective purchase of a case-managed 16 continuum of care. The agency shall also require providers to 17 minimize the exposure of recipients to the need for acute 18 inpatient, custodial, and other institutional care and the 19 inappropriate or unnecessary use of high-cost services. 20 (3) The agency may contract with: 21 (b) An entity that provides is providing comprehensive 22 behavioral health care services to certain Medicaid recipients 23 through a capitated, prepaid arrangement pursuant to the 24 federal waiver provided for by s. 409.905(5). Such an entity 25 must be licensed under chapter 624, chapter 636, or chapter 26 641 and must possess the clinical systems and operational 27 competence to manage risk and provide comprehensive behavioral 28 health care to Medicaid recipients. As used in this paragraph, 29 the term "comprehensive behavioral health care services" means 30 covered mental health and substance abuse treatment services 31 that are available to Medicaid recipients. The secretary of 30 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 the Department of Children and Family Services shall approve 2 provisions of procurements related to children in the 3 department's care or custody prior to enrolling such children 4 in a prepaid behavioral health plan. Any contract awarded 5 under this paragraph must be competitively procured. In 6 developing the behavioral health care prepaid plan procurement 7 document, the agency shall ensure that the procurement 8 document requires the contractor to develop and implement a 9 plan to ensure compliance with s. 394.4574 related to services 10 provided to residents of licensed assisted living facilities 11 that hold a limited mental health license. The agency must 12 ensure that Medicaid recipients have available the choice of 13 at least two managed care plans for their behavioral health 14 care services. The agency may continue to reimburse for 15 substance abuse treatment services on a fee-for-service basis 16 until the agency finds that adequate funds are available for 17 capitated, prepaid arrangements or until the agency determines 18 that a capitated arrangement will not adversely affect the 19 availability of substance abuse treatment services. 20 1. By January 1, 2001, the agency shall modify the 21 contracts with the entities providing comprehensive inpatient 22 and outpatient mental health care services to Medicaid 23 recipients in Hillsborough, Highlands, Hardee, Manatee, and 24 Polk Counties, to include substance-abuse-treatment services. 25 2. By December 31, 2001, the agency shall contract 26 with entities providing comprehensive behavioral health care 27 services to Medicaid recipients through capitated, prepaid 28 arrangements in Charlotte, Collier, DeSoto, Escambia, Glades, 29 Hendry, Lee, Okaloosa, Pasco, Pinellas, Santa Rosa, Sarasota, 30 and Walton Counties. The agency may contract with entities 31 providing comprehensive behavioral health care services to 31 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 Medicaid recipients through capitated, prepaid arrangements in 2 Alachua County. The agency may determine if Sarasota County 3 shall be included as a separate catchment area or included in 4 any other agency geographic area. 5 1.3. Children residing in a Department of Juvenile 6 Justice residential program approved as a Medicaid behavioral 7 health overlay services provider shall not be included in a 8 behavioral health care prepaid health plan pursuant to this 9 paragraph. 10 2.4. In converting to a prepaid system of delivery, 11 the agency shall in its procurement document require an entity 12 providing comprehensive behavioral health care services to 13 prevent the displacement of indigent care patients by 14 enrollees in the Medicaid prepaid health plan providing 15 behavioral health care services from facilities receiving 16 state funding to provide indigent behavioral health care, to 17 facilities licensed under chapter 395 which do not receive 18 state funding for indigent behavioral health care, or 19 reimburse the unsubsidized facility for the cost of behavioral 20 health care provided to the displaced indigent care patient. 21 3.5. Traditional community mental health providers 22 under contract with the Department of Children and Family 23 Services pursuant to part IV of chapter 394 and inpatient 24 mental health providers licensed pursuant to chapter 395 must 25 be offered an opportunity to accept or decline a contract to 26 participate in any provider network for prepaid behavioral 27 health services. 28 (26) The agency shall conduct perform choice 29 counseling, enrollments, and disenrollments for Medicaid 30 recipients who are eligible for MediPass or managed care 31 plans. Notwithstanding the prohibition contained in paragraph 32 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 (18)(f), managed care plans may perform preenrollments of 2 Medicaid recipients under the supervision of the agency or its 3 agents. For the purposes of this section, "preenrollment" 4 means the provision of marketing and educational materials to 5 a Medicaid recipient and assistance in completing the 6 application forms, but shall not include actual enrollment 7 into a managed care plan. An application for enrollment shall 8 not be deemed complete until the agency or its agent verifies 9 that the recipient made an informed, voluntary choice. The 10 agency, in cooperation with the Department of Children and 11 Family Services, may test new marketing initiatives to inform 12 Medicaid recipients about their managed care options at 13 selected sites. The agency shall report to the Legislature on 14 the effectiveness of such initiatives. The agency may 15 contract with a third party to perform managed care plan and 16 MediPass choice-counseling, enrollment, and disenrollment 17 services for Medicaid recipients and is authorized to adopt 18 rules to implement such services. The agency may adjust the 19 capitation rate only to cover the costs of a third-party 20 choice-counseling, enrollment, and disenrollment contract, and 21 for agency supervision and management of the managed care plan 22 choice-counseling, enrollment, and disenrollment contract. 23 (37)(a) The agency shall implement a Medicaid 24 prescribed-drug spending-control program that includes the 25 following components: 26 1. Medicaid prescribed-drug coverage for brand-name 27 drugs for adult Medicaid recipients not residing in nursing 28 homes or other institutions is limited to the dispensing of 29 four brand-name drugs per month per recipient. Children and 30 institutionalized adults are exempt from this restriction. 31 Antiretroviral agents are excluded from this limitation. No 33 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 requirements for prior authorization or other restrictions on 2 medications used to treat mental illnesses such as 3 schizophrenia, severe depression, or bipolar disorder may be 4 imposed on Medicaid recipients. Medications that will be 5 available without restriction for persons with mental 6 illnesses include atypical antipsychotic medications, 7 conventional antipsychotic medications, selective serotonin 8 reuptake inhibitors, and other medications used for the 9 treatment of serious mental illnesses. The agency shall also 10 limit the amount of a prescribed drug dispensed to no more 11 than a 34-day supply. The agency shall continue to provide 12 unlimited generic drugs, contraceptive drugs and items, and 13 diabetic supplies. The agency may authorize exceptions to the 14 brand-name-drug restriction or to the restricted drug 15 formulary, based upon the treatment needs of the patients, 16 only when such exceptions are based on prior consultation 17 provided by the agency or an agency contractor, but the agency 18 must establish procedures to ensure that: 19 a. There will be a response to a request for prior 20 consultation by telephone or other telecommunication device 21 within 24 hours after receipt of a request for prior 22 consultation; and 23 b. A 72-hour supply of the drug prescribed will be 24 provided in an emergency or when the agency does not provide a 25 response within 24 hours as required by sub-subparagraph a. 26 2. Reimbursement to pharmacies for Medicaid prescribed 27 drugs shall be set at the lowest of the average wholesale 28 price less 13.25 percent, the wholesaler acquisition cost plus 29 7 percent, the federal or state pricing limit, or the 30 provider's usual and customary charge. 31 3. The agency shall develop and implement a process 34 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 for managing the drug therapies of Medicaid recipients who are 2 using significant numbers of prescribed drugs each month. The 3 management process may include, but is not limited to, 4 comprehensive, physician-directed medical-record reviews, 5 claims analyses, and case evaluations to determine the medical 6 necessity and appropriateness of a patient's treatment plan 7 and drug therapies. The agency may contract with a private 8 organization to provide drug-program-management services. 9 4. The agency may limit the size of its pharmacy 10 network based on need, competitive bidding, price 11 negotiations, credentialing, or similar criteria. The agency 12 shall give special consideration to rural areas in determining 13 the size and location of pharmacies included in the Medicaid 14 pharmacy network. A pharmacy credentialing process may include 15 criteria such as a pharmacy's full-service status, location, 16 size, patient educational programs, patient consultation, 17 disease-management services, and other characteristics. The 18 agency may impose a moratorium on Medicaid pharmacy enrollment 19 when it is determined that it has a sufficient number of 20 Medicaid-participating providers. 21 5. The agency shall develop and implement a program 22 that requires Medicaid practitioners who prescribe drugs to 23 use a counterfeit-proof prescription pad for Medicaid 24 prescriptions. The agency shall require the use of 25 standardized counterfeit-proof prescription pads by 26 Medicaid-participating prescribers or prescribers who write 27 prescriptions for Medicaid recipients. The agency may 28 implement the program in targeted geographic areas or 29 statewide. 30 6. The agency may enter into arrangements that require 31 manufacturers of generic drugs prescribed to Medicaid 35 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 recipients to provide rebates of at least 15.1 percent of the 2 average manufacturer price for the manufacturer's generic 3 products. These arrangements shall require that if a 4 generic-drug manufacturer pays federal rebates for 5 Medicaid-reimbursed drugs at a level below 15.1 percent, the 6 manufacturer must provide a supplemental rebate to the state 7 in an amount necessary to achieve a 15.1-percent rebate level. 8 If a generic-drug manufacturer raises its price in excess of 9 the Consumer Price Index (Urban), the excess amount shall be 10 included in the supplemental rebate to the state. 11 7. The agency may establish a restricted drug 12 formulary in accordance with 42 U.S.C. s. 1396r and, pursuant 13 to the establishment of such formulary, is authorized to 14 negotiate supplemental rebates from manufacturers at no less 15 than 10 percent of the average wholesale price on the last day 16 of each quarter. State supplemental manufacturer rebates shall 17 be invoiced concurrently with federal rebates. 18 Section 10. Paragraph (a) of subsection (1) and 19 subsection (7) of section 409.915, Florida Statutes, are 20 amended to read: 21 409.915 County contributions to Medicaid.--Although 22 the state is responsible for the full portion of the state 23 share of the matching funds required for the Medicaid program, 24 in order to acquire a certain portion of these funds, the 25 state shall charge the counties for certain items of care and 26 service as provided in this section. 27 (1) Each county shall participate in the following 28 items of care and service: 29 (a) Payments for inpatient hospitalization in excess 30 of 10 12 days, but not in excess of 45 days, with the 31 exception of pregnant women and children whose income is in 36 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 excess of the federal poverty level and who do not participate 2 in the Medicaid medically needy program. 3 (7) Counties are exempt from contributing toward the 4 cost of new exemptions on inpatient ceilings for statutory 5 teaching hospitals, specialty hospitals, and community 6 hospital education program hospitals that came into effect 7 July 1, 2000, and for special Medicaid payments that came into 8 effect on or after July 1, 2000. Notwithstanding any 9 provision of this section to the contrary, counties are exempt 10 from contributing toward the increased cost of hospital 11 inpatient services due to the elimination of ceilings on 12 Medicaid inpatient reimbursement rates paid to teaching 13 hospitals, specialty hospitals, and community health education 14 program hospitals and for special Medicaid reimbursements to 15 hospitals for which the Legislature has specifically 16 appropriated funds. This subsection is repealed on July 1, 17 2001. 18 Section 11. Section 636.0145, Florida Statutes, is 19 repealed: 20 636.0145 Certain entities contracting with 21 Medicaid.--Notwithstanding the requirements of s. 22 409.912(3)(b), an entity that is providing comprehensive 23 inpatient and outpatient mental health care services to 24 certain Medicaid recipients in Hillsborough, Highlands, 25 Hardee, Manatee, and Polk Counties through a capitated, 26 prepaid arrangement pursuant to the federal waiver provided 27 for in s. 409.905(5) must become licensed under chapter 636 by 28 December 31, 1998. Any entity licensed under this chapter 29 which provides services solely to Medicaid recipients under a 30 contract with Medicaid shall be exempt from ss. 636.017, 31 636.018, 636.022, 636.028, and 636.034. 37 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 Section 12. The Legislature determines and declares 2 that this act fulfills an important state interest. 3 Section 13. This act shall take effect July 1, 2001. 4 5 6 ================ T I T L E A M E N D M E N T =============== 7 And the title is amended as follows: 8 On page , 9 remove from the title of the bill: 10 11 and insert in lieu thereof: 12 A bill to be entitled 13 An act relating to the Agency for Health Care 14 Administration; amending s. 409.8132, F.S.; 15 deleting the requirement to provide choice 16 counseling to eligible applicants under the 17 Medikids program component; amending s. 18 409.904, F.S.; authorizing payment for health 19 insurance premiums of Medicaid-eligible 20 individuals under certain circumstances; 21 amending s. 409.905, F.S.; updating and 22 revising provisions relating to hospital 23 inpatient behavioral health services provided 24 pursuant to federally approved waiver; 25 expanding provision of such services statewide; 26 amending s. 490.906, F.S.; providing additional 27 requirements for authorized intermediate care 28 services; adding assistive care services as an 29 optional Medicaid service for certain 30 recipients; amending s. 409.908, F.S.; 31 providing for reimbursement of hospital 38 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 inpatient and outpatient services at certain 2 rates; deleting redundant provisions; 3 prohibiting increases in reimbursement rates to 4 nursing homes associated with changes in 5 ownership; precluding premium adjustments to 6 managed care organizations under certain 7 circumstances; revising provisions relating to 8 physician reimbursement and the reimbursement 9 fee schedule; deleting certain preferential 10 Medicaid payments for dually eligible 11 recipients; authorizing the securing through 12 waivers of federal financing of transportation 13 services at certain rates; authorizing public 14 schools affiliated with Florida universities to 15 separately enroll in the Medicaid certified 16 school match program and certify local 17 expenditures; amending s. 409.911, F.S.; 18 updating data requirements and share rates for 19 disproportionate share distributions; amending 20 s. 409.91195, F.S.; revising provisions 21 relating to the membership of the Medicaid 22 Pharmaceutical and Therapeutics Committee; 23 providing for development and distribution of a 24 restricted drug formulary for Medicaid 25 providers; amending s. 409.9116, F.S.; 26 modifying the formula for disproportionate 27 share/financial assistance distributions to 28 rural hospitals; amending s. 409.912, F.S.; 29 authorizing continued reimbursement of 30 substance abuse treatment services on a 31 fee-for-service basis under certain conditions; 39 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079
HOUSE AMENDMENT Bill No. HB 1753 Barcode 064079 Amendment No. ___ (for drafter's use only) 1 expanding Medicaid managed care behavioral 2 health services statewide; deleting requirement 3 for choice counseling; deleting authorization 4 to test new marketing initiatives relating to 5 managed care options; deleting a restriction on 6 adjustment of capitation rates; modifying 7 reimbursement to pharmacies; permitting use of 8 a restricted drug formulary, authorizing 9 exemptions therefrom, and authorizing 10 negotiation of supplemental rebates from 11 manufacturers pursuant thereto; requiring 12 prescriptions for Medicaid recipients to be on 13 certain standardized forms; amending s. 14 409.915, F.S.; increasing county contributions 15 to Medicaid for inpatient hospitalization; 16 exempting counties from contributing toward the 17 cost of inpatient services provided by certain 18 hospitals and for special Medicaid payments 19 under certain conditions; repealing s. 20 636.0145, F.S., relating to requirement for 21 licensure of certain entities contracting with 22 Medicaid to provide mental health care services 23 in certain counties pursuant to federal waiver, 24 to conform to changes made in this act; 25 providing a finding of important state 26 interest; providing an effective date. 27 28 29 30 31 40 File original & 9 copies 03/29/01 hmo0006 02:46 pm 01753-0085-064079