House Bill hb1753
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    Florida House of Representatives - 2001                HB 1753
        By the Fiscal Responsibility Council and Representative
    Maygarden
  1                      A bill to be entitled
  2         An act relating to the Agency for Health Care
  3         Administration; amending s. 409.8132, F.S.;
  4         deleting the requirement to provide choice
  5         counseling to eligible applicants under the
  6         Medikids program component; amending s.
  7         409.815, F.S.; correcting a cross reference;
  8         amending s. 409.903, F.S.; revising Medicaid
  9         eligibility requirements for pregnant women and
10         children under age 1; amending s. 409.904,
11         F.S.; revising Medicaid eligibility
12         requirements for certain elderly or disabled
13         persons; revising Medicaid eligibility
14         requirements of postpartum women for family
15         planning services; authorizing payment for
16         health insurance premiums of Medicaid-eligible
17         individuals under certain circumstances;
18         amending s. 409.905, F.S.; updating and
19         revising provisions relating to hospital
20         inpatient behavioral health services provided
21         pursuant to a federally approved waiver;
22         expanding provision of such services statewide;
23         amending s. 409.906, F.S.; deleting adult
24         denture services as optional Medicaid services
25         and restricting authorized hearing and visual
26         services to children; 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. 409.9065, F.S.;
31         correcting a cross reference; amending s.
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  1         409.908, F.S.; providing for reimbursement of
  2         hospital inpatient and outpatient services at
  3         certain rates; permitting reimbursement for
  4         certain Medicaid services based on competitive
  5         bidding; deleting redundant provisions;
  6         prohibiting increases in reimbursement rates to
  7         nursing homes associated with changes in
  8         ownership; precluding premium adjustments to
  9         managed care organizations under certain
10         circumstances; revising provisions relating to
11         physician reimbursement and the reimbursement
12         fee schedule; deleting certain preferential
13         Medicaid payments for dually eligible
14         recipients; authorizing competitive procurement
15         of transportation services or the securing
16         through waivers of federal financing of
17         transportation services at certain rates;
18         correcting a cross reference; authorizing
19         public schools affiliated with Florida
20         universities to separately enroll in the
21         Medicaid certified school match program and
22         certify local expenditures; amending s.
23         409.911, F.S.; updating data requirements and
24         share rates for disproportionate share
25         distributions; amending s. 409.91195, F.S.;
26         revising provisions relating to the membership
27         of the Medicaid Pharmaceutical and Therapeutics
28         Committee; providing for development and
29         distribution of a restricted drug formulary for
30         Medicaid providers; amending s. 409.9116, F.S.;
31         modifying the formula for disproportionate
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  1         share/financial assistance distributions to
  2         rural hospitals; amending s. 409.912, F.S.;
  3         authorizing continued reimbursement of
  4         substance abuse treatment services on a
  5         fee-for-service basis under certain conditions;
  6         expanding Medicaid managed care behavioral
  7         health services statewide; deleting requirement
  8         for choice counseling; deleting authorization
  9         to test new marketing initiatives relating to
10         managed care options; deleting a restriction on
11         adjustment of capitation rates; permitting
12         competitive bidding for certain services;
13         modifying reimbursement to pharmacies;
14         permitting use of a restricted drug formulary,
15         authorizing exemptions therefrom, and
16         authorizing negotiation of supplemental rebates
17         from manufacturers pursuant thereto; requiring
18         prescriptions for Medicaid recipients to be on
19         certain standardized forms; amending s.
20         409.915, F.S.; increasing county contributions
21         to Medicaid for inpatient hospitalization;
22         exempting counties from contributing toward the
23         cost of inpatient services provided by certain
24         hospitals and for special Medicaid payments
25         under certain conditions; repealing s.
26         636.0145, F.S., relating to requirement for
27         licensure of certain entities contracting with
28         Medicaid to provide mental health care services
29         in certain counties pursuant to federal waiver,
30         to conform to changes made in this act;
31
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  1         providing a finding of important state
  2         interest; providing an effective date.
  3
  4  Be It Enacted by the Legislature of the State of Florida:
  5
  6         Section 1.  Subsection (7) of section 409.8132, Florida
  7  Statutes, is amended to read:
  8         409.8132  Medikids program component.--
  9         (7)  ENROLLMENT.--Enrollment in the Medikids program
10  component may only occur during periodic open enrollment
11  periods as specified by the agency. An applicant may apply for
12  enrollment in the Medikids program component and proceed
13  through the eligibility determination process at any time
14  throughout the year. However, enrollment in Medikids shall not
15  begin until the next open enrollment period; and a child may
16  not receive services under the Medikids program until the
17  child is enrolled in a managed care plan or MediPass. In
18  addition, Once determined eligible, an applicant may choose
19  receive choice counseling and select a managed care plan or
20  MediPass. The agency may initiate mandatory assignment for a
21  Medikids applicant who has not chosen a managed care plan or
22  MediPass provider after the applicant's voluntary choice
23  period ends. An applicant may select MediPass under the
24  Medikids program component only in counties that have fewer
25  than two managed care plans available to serve Medicaid
26  recipients and only if the federal Health Care Financing
27  Administration determines that MediPass constitutes "health
28  insurance coverage" as defined in Title XXI of the Social
29  Security Act.
30         Section 2.  Paragraph (q) of subsection (2) of section
31  409.815, Florida Statutes, is amended to read:
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  1         409.815  Health benefits coverage; limitations.--
  2         (2)  BENCHMARK BENEFITS.--In order for health benefits
  3  coverage to qualify for premium assistance payments for an
  4  eligible child under ss. 409.810-409.820, the health benefits
  5  coverage, except for coverage under Medicaid and Medikids,
  6  must include the following minimum benefits, as medically
  7  necessary.
  8         (q)  Dental services.--Subject to a specific
  9  appropriation for this benefit, covered services include those
10  dental services provided to children by the Florida Medicaid
11  program under s. 409.906(5)(6).
12         Section 3.  Subsection (5) of section 409.903, Florida
13  Statutes, is amended to read:
14         409.903  Mandatory payments for eligible persons.--The
15  agency shall make payments for medical assistance and related
16  services on behalf of the following persons who the
17  department, or the Social Security Administration by contract
18  with the Department of Children and Family Services,
19  determines to be eligible, subject to the income, assets, and
20  categorical eligibility tests set forth in federal and state
21  law.  Payment on behalf of these Medicaid eligible persons is
22  subject to the availability of moneys and any limitations
23  established by the General Appropriations Act or chapter 216.
24         (5)  A pregnant woman for the duration of her pregnancy
25  and for the postpartum period as defined in federal law and
26  rule, or a child under age 1, if either is living in a family
27  that has an income which is at or below 150 percent of the
28  most current federal poverty level, or, effective January 1,
29  1992, that has an income which is at or below 185 percent of
30  the most current federal poverty level.  Such a person is not
31  subject to an assets test. Further, a pregnant woman who
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  1  applies for eligibility for the Medicaid program through a
  2  qualified Medicaid provider must be offered the opportunity,
  3  subject to federal rules, to be made presumptively eligible
  4  for the Medicaid program.
  5         Section 4.  Subsections (1) and (5) of section 409.904,
  6  Florida Statutes, are amended, and subsection (9) is added to
  7  said section, to read:
  8         409.904  Optional payments for eligible persons.--The
  9  agency may make payments for medical assistance and related
10  services on behalf of the following persons who are determined
11  to be eligible subject to the income, assets, and categorical
12  eligibility tests set forth in federal and state law.  Payment
13  on behalf of these Medicaid-eligible persons is subject to the
14  availability of moneys and any limitations established by the
15  General Appropriations Act or chapter 216.
16         (1)  A person who is age 65 or older or is determined
17  to be disabled, whose income is at or below 85 100 percent of
18  federal poverty level, and whose assets do not exceed
19  established limitations.
20         (5)  Subject to specific federal authorization, a
21  postpartum woman living in a family that has an income that is
22  at or below 150 185 percent of the most current federal
23  poverty level is eligible for family planning services as
24  specified in s. 409.905(3) for a period of up to 24 months
25  following a pregnancy for which Medicaid paid for
26  pregnancy-related services.
27         (9)  A Medicaid-eligible individual for the
28  individual's health insurance premiums, if the agency
29  determines that such payments are cost-effective.
30         Section 5.  Subsection (5) of section 409.905, Florida
31  Statutes, is amended to read:
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  1         409.905  Mandatory Medicaid services.--The agency may
  2  make payments for the following services, which are required
  3  of the state by Title XIX of the Social Security Act,
  4  furnished by Medicaid providers to recipients who are
  5  determined to be eligible on the dates on which the services
  6  were provided.  Any service under this section shall be
  7  provided only when medically necessary and in accordance with
  8  state and federal law. Nothing in this section shall be
  9  construed to prevent or limit the agency from adjusting fees,
10  reimbursement rates, lengths of stay, number of visits, number
11  of services, or any other adjustments necessary to comply with
12  the availability of moneys and any limitations or directions
13  provided for in the General Appropriations Act or chapter 216.
14         (5)  HOSPITAL INPATIENT SERVICES.--The agency shall pay
15  for all covered services provided for the medical care and
16  treatment of a recipient who is admitted as an inpatient by a
17  licensed physician or dentist to a hospital licensed under
18  part I of chapter 395.  However, the agency shall limit the
19  payment for inpatient hospital services for a Medicaid
20  recipient 21 years of age or older to 45 days or the number of
21  days necessary to comply with the General Appropriations Act.
22         (a)  The agency is authorized to implement
23  reimbursement and utilization management reforms in order to
24  comply with any limitations or directions in the General
25  Appropriations Act, which may include, but are not limited to:
26  prior authorization for inpatient psychiatric days; prior
27  authorization for nonemergency hospital inpatient admissions;
28  enhanced utilization and concurrent review programs for highly
29  utilized services; reduction or elimination of covered days of
30  service; adjusting reimbursement ceilings for variable costs;
31
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  1  adjusting reimbursement ceilings for fixed and property costs;
  2  and implementing target rates of increase.
  3         (b)  A licensed hospital maintained primarily for the
  4  care and treatment of patients having mental disorders or
  5  mental diseases is not eligible to participate in the hospital
  6  inpatient portion of the Medicaid program except as provided
  7  under in federal law or pursuant to a federally approved
  8  waiver.  However, the department shall apply for a waiver,
  9  within 9 months after June 5, 1991, designed to provide
10  behavioral health hospitalization services for mental health
11  reasons to children and adults in the most cost-effective and
12  lowest cost setting possible.  Such waiver shall include a
13  request for the opportunity to pay for care in hospitals known
14  under federal law as "institutions for mental disease" or
15  "IMD's."  The behavioral health waiver proposal shall propose
16  no additional aggregate cost to the state or Federal
17  Government, and shall be conducted in Hillsborough County,
18  Highlands County, Hardee County, Manatee County, and Polk
19  County. Implementation of the behavioral health waiver
20  proposal shall not be the basis for adjusting a hospital's
21  Medicaid inpatient or outpatient rate. The waiver proposal may
22  incorporate competitive bidding for hospital services,
23  comprehensive brokering, prepaid capitated arrangements, or
24  other mechanisms deemed by the department to show promise in
25  reducing the cost of acute care and increasing the
26  effectiveness of preventive care.  When developing The waiver
27  proposal, the department shall take into account price,
28  quality, accessibility, linkages of the hospital to community
29  services and family support programs, plans of the hospital to
30  ensure the earliest discharge possible, and the
31
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  1  comprehensiveness of the mental health and other health care
  2  services offered by participating providers.
  3         (c)  Agency for Health Care Administration shall adjust
  4  a hospital's current inpatient per diem rate to reflect the
  5  cost of serving the Medicaid population at that institution
  6  if:
  7         1.  The hospital experiences an increase in Medicaid
  8  caseload by more than 25 percent in any year, primarily
  9  resulting from the closure of a hospital in the same service
10  area occurring after July 1, 1995; or
11         2.  The hospital's Medicaid per diem rate is at least
12  25 percent below the Medicaid per patient cost for that year.
13
14  No later than November 1, 2000, the agency must provide
15  estimated costs for any adjustment in a hospital inpatient per
16  diem pursuant to this paragraph to the Executive Office of the
17  Governor, the House of Representatives General Appropriations
18  Committee, and the Senate Budget Committee. Before the agency
19  implements a change in a hospital's inpatient per diem rate
20  pursuant to this paragraph, the Legislature must have
21  specifically appropriated sufficient funds in the 2001-2002
22  General Appropriations Act to support the increase in cost as
23  estimated by the agency. This paragraph is repealed on July 1,
24  2001.
25         Section 6.  Section 409.906, Florida Statutes, is
26  amended to read:
27         409.906  Optional Medicaid services.--Subject to
28  specific appropriations, the agency may make payments for
29  services which are optional to the state under Title XIX of
30  the Social Security Act and are furnished by Medicaid
31  providers to recipients who are determined to be eligible on
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  1  the dates on which the services were provided.  Any optional
  2  service that is provided shall be provided only when medically
  3  necessary and in accordance with state and federal law.
  4  Nothing in this section shall be construed to prevent or limit
  5  the agency from adjusting fees, reimbursement rates, lengths
  6  of stay, number of visits, or number of services, or making
  7  any other adjustments necessary to comply with the
  8  availability of moneys and any limitations or directions
  9  provided for in the General Appropriations Act or chapter 216.
10  If necessary to safeguard the state's systems of providing
11  services to elderly and disabled persons and subject to the
12  notice and review provisions of s. 216.177, the Governor may
13  direct the Agency for Health Care Administration to amend the
14  Medicaid state plan to delete the optional Medicaid service
15  known as "Intermediate Care Facilities for the Developmentally
16  Disabled."  Optional services may include:
17         (1)  ADULT DENTURE SERVICES.--The agency may pay for
18  dentures, the procedures required to seat dentures, and the
19  repair and reline of dentures, provided by or under the
20  direction of a licensed dentist, for a recipient who is age 21
21  or older.
22         (1)(2)  ADULT HEALTH SCREENING SERVICES.--The agency
23  may pay for an annual routine physical examination, conducted
24  by or under the direction of a licensed physician, for a
25  recipient age 21 or older, without regard to medical
26  necessity, in order to detect and prevent disease, disability,
27  or other health condition or its progression.
28         (2)(3)  AMBULATORY SURGICAL CENTER SERVICES.--The
29  agency may pay for services provided to a recipient in an
30  ambulatory surgical center licensed under part I of chapter
31
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  1  395, by or under the direction of a licensed physician or
  2  dentist.
  3         (3)(4)  BIRTH CENTER SERVICES.--The agency may pay for
  4  examinations and delivery, recovery, and newborn assessment,
  5  and related services, provided in a licensed birth center
  6  staffed with licensed physicians, certified nurse midwives,
  7  and midwives licensed in accordance with chapter 467, to a
  8  recipient expected to experience a low-risk pregnancy and
  9  delivery.
10         (4)(5)  CASE MANAGEMENT SERVICES.--The agency may pay
11  for primary care case management services rendered to a
12  recipient pursuant to a federally approved waiver, and
13  targeted case management services for specific groups of
14  targeted recipients, for which funding has been provided and
15  which are rendered pursuant to federal guidelines. The agency
16  is authorized to limit reimbursement for targeted case
17  management services in order to comply with any limitations or
18  directions provided for in the General Appropriations Act.
19  Notwithstanding s. 216.292, the Department of Children and
20  Family Services may transfer general funds to the Agency for
21  Health Care Administration to fund state match requirements
22  exceeding the amount specified in the General Appropriations
23  Act for targeted case management services.
24         (5)(6)  CHILDREN'S DENTAL SERVICES.--The agency may pay
25  for diagnostic, preventive, or corrective procedures,
26  including orthodontia in severe cases, provided to a recipient
27  under age 21, by or under the supervision of a licensed
28  dentist.  Services provided under this program include
29  treatment of the teeth and associated structures of the oral
30  cavity, as well as treatment of disease, injury, or impairment
31  that may affect the oral or general health of the individual.
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  1         (6)(7)  CHIROPRACTIC SERVICES.--The agency may pay for
  2  manual manipulation of the spine and initial services,
  3  screening, and X rays provided to a recipient by a licensed
  4  chiropractic physician.
  5         (7)(8)  COMMUNITY MENTAL HEALTH SERVICES.--The agency
  6  may pay for rehabilitative services provided to a recipient by
  7  a mental health or substance abuse provider licensed by the
  8  agency and under contract with the agency or the Department of
  9  Children and Family Services to provide such services.  Those
10  services which are psychiatric in nature shall be rendered or
11  recommended by a psychiatrist, and those services which are
12  medical in nature shall be rendered or recommended by a
13  physician or psychiatrist. The agency must develop a provider
14  enrollment process for community mental health providers which
15  bases provider enrollment on an assessment of service need.
16  The provider enrollment process shall be designed to control
17  costs, prevent fraud and abuse, consider provider expertise
18  and capacity, and assess provider success in managing
19  utilization of care and measuring treatment outcomes.
20  Providers will be selected through a competitive procurement
21  or selective contracting process. In addition to other
22  community mental health providers, the agency shall consider
23  for enrollment mental health programs licensed under chapter
24  395 and group practices licensed under chapter 458, chapter
25  459, chapter 490, or chapter 491. The agency is also
26  authorized to continue operation of its behavioral health
27  utilization management program and may develop new services if
28  these actions are necessary to ensure savings from the
29  implementation of the utilization management system. The
30  agency shall coordinate the implementation of this enrollment
31  process with the Department of Children and Family Services
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  1  and the Department of Juvenile Justice. The agency is
  2  authorized to utilize diagnostic criteria in setting
  3  reimbursement rates, to preauthorize certain high-cost or
  4  highly utilized services, to limit or eliminate coverage for
  5  certain services, or to make any other adjustments necessary
  6  to comply with any limitations or directions provided for in
  7  the General Appropriations Act.
  8         (8)(9)  DIALYSIS FACILITY SERVICES.--Subject to
  9  specific appropriations being provided for this purpose, the
10  agency may pay a dialysis facility that is approved as a
11  dialysis facility in accordance with Title XVIII of the Social
12  Security Act, for dialysis services that are provided to a
13  Medicaid recipient under the direction of a physician licensed
14  to practice medicine or osteopathic medicine in this state,
15  including dialysis services provided in the recipient's home
16  by a hospital-based or freestanding dialysis facility.
17         (9)(10)  DURABLE MEDICAL EQUIPMENT.--The agency may
18  authorize and pay for certain durable medical equipment and
19  supplies provided to a Medicaid recipient as medically
20  necessary.
21         (10)(11)  HEALTHY START SERVICES.--The agency may pay
22  for a continuum of risk-appropriate medical and psychosocial
23  services for the Healthy Start program in accordance with a
24  federal waiver. The agency may not implement the federal
25  waiver unless the waiver permits the state to limit enrollment
26  or the amount, duration, and scope of services to ensure that
27  expenditures will not exceed funds appropriated by the
28  Legislature or available from local sources. If the Health
29  Care Financing Administration does not approve a federal
30  waiver for Healthy Start services, the agency, in consultation
31  with the Department of Health and the Florida Association of
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  1  Healthy Start Coalitions, is authorized to establish a
  2  Medicaid certified-match program for Healthy Start services.
  3  Participation in the Healthy Start certified-match program
  4  shall be voluntary, and reimbursement shall be limited to the
  5  federal Medicaid share to Medicaid-enrolled Healthy Start
  6  coalitions for services provided to Medicaid recipients. The
  7  agency shall take no action to implement a certified-match
  8  program without ensuring that the amendment and review
  9  requirements of ss. 216.177 and 216.181 have been met.
10         (11)(12)  HEARING SERVICES.--Except for individuals 21
11  years of age or older, the agency may pay for hearing and
12  related services, including hearing evaluations, hearing aid
13  devices, dispensing of the hearing aid, and related repairs,
14  if provided to a recipient by a licensed hearing aid
15  specialist, otolaryngologist, otologist, audiologist, or
16  physician.
17         (12)(13)  HOME AND COMMUNITY-BASED SERVICES.--The
18  agency may pay for home-based or community-based services that
19  are rendered to a recipient in accordance with a federally
20  approved waiver program.
21         (13)(14)  HOSPICE CARE SERVICES.--The agency may pay
22  for all reasonable and necessary services for the palliation
23  or management of a recipient's terminal illness, if the
24  services are provided by a hospice that is licensed under part
25  VI of chapter 400 and meets Medicare certification
26  requirements.
27         (14)(15)  INTERMEDIATE CARE FACILITY FOR THE
28  DEVELOPMENTALLY DISABLED SERVICES.--The agency may pay for
29  health-related care and services provided on a 24-hour-a-day
30  basis by a facility licensed and certified as a Medicaid
31  Intermediate Care Facility for the Developmentally Disabled,
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  1  for a recipient who needs such care because of a developmental
  2  disability.
  3         (15)(16)  INTERMEDIATE CARE SERVICES.--The agency may
  4  pay for 24-hour-a-day intermediate care nursing and
  5  rehabilitation services rendered to a recipient in a nursing
  6  facility licensed under part II of chapter 400, if the
  7  services are ordered by and provided under the direction of a
  8  physician, meet nursing home level of care criteria as
  9  determined by the Comprehensive Assessment and Review
10  Long-Term Care (CARE) Program of the Department of Elderly
11  Affairs, and do not meet the definition of "general care" as
12  used in the Medicaid budget estimating process.
13         (16)(17)  OPTOMETRIC SERVICES.--The agency may pay for
14  services provided to a recipient, including examination,
15  diagnosis, treatment, and management, related to ocular
16  pathology, if the services are provided by a licensed
17  optometrist or physician.
18         (17)(18)  PHYSICIAN ASSISTANT SERVICES.--The agency may
19  pay for all services provided to a recipient by a physician
20  assistant licensed under s. 458.347 or s. 459.022.
21  Reimbursement for such services must be not less than 80
22  percent of the reimbursement that would be paid to a physician
23  who provided the same services.
24         (18)(19)  PODIATRIC SERVICES.--The agency may pay for
25  services, including diagnosis and medical, surgical,
26  palliative, and mechanical treatment, related to ailments of
27  the human foot and lower leg, if provided to a recipient by a
28  podiatric physician licensed under state law.
29         (19)(20)  PRESCRIBED DRUG SERVICES.--The agency may pay
30  for medications that are prescribed for a recipient by a
31  physician or other licensed practitioner of the healing arts
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  1  authorized to prescribe medications and that are dispensed to
  2  the recipient by a licensed pharmacist or physician in
  3  accordance with applicable state and federal law.
  4         (20)(21)  REGISTERED NURSE FIRST ASSISTANT
  5  SERVICES.--The agency may pay for all services provided to a
  6  recipient by a registered nurse first assistant as described
  7  in s. 464.027.  Reimbursement for such services may not be
  8  less than 80 percent of the reimbursement that would be paid
  9  to a physician providing the same services.
10         (21)(22)  STATE HOSPITAL SERVICES.--The agency may pay
11  for all-inclusive psychiatric inpatient hospital care provided
12  to a recipient age 65 or older in a state mental hospital.
13         (22)(23)  VISUAL SERVICES.--Except for individuals 21
14  years of age or older, the agency may pay for visual
15  examinations, eyeglasses, and eyeglass repairs for a
16  recipient, if they are prescribed by a licensed physician
17  specializing in diseases of the eye or by a licensed
18  optometrist.
19         (23)(24)  CHILD-WELFARE-TARGETED CASE MANAGEMENT.--The
20  Agency for Health Care Administration, in consultation with
21  the Department of Children and Family Services, may establish
22  a targeted case-management pilot project in those counties
23  identified by the Department of Children and Family Services
24  and for the community-based child welfare project in Sarasota
25  and Manatee counties, as authorized under s. 409.1671. These
26  projects shall be established for the purpose of determining
27  the impact of targeted case management on the child welfare
28  program and the earnings from the child welfare program.
29  Results of the pilot projects shall be reported to the Child
30  Welfare Estimating Conference and the Social Services
31  Estimating Conference established under s. 216.136. The number
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  1  of projects may not be increased until requested by the
  2  Department of Children and Family Services, recommended by the
  3  Child Welfare Estimating Conference and the Social Services
  4  Estimating Conference, and approved by the Legislature. The
  5  covered group of individuals who are eligible to receive
  6  targeted case management include children who are eligible for
  7  Medicaid; who are between the ages of birth through 21; and
  8  who are under protective supervision or postplacement
  9  supervision, under foster-care supervision, or in shelter care
10  or foster care. The number of individuals who are eligible to
11  receive targeted case management shall be limited to the
12  number for whom the Department of Children and Family Services
13  has available matching funds to cover the costs. The general
14  revenue funds required to match the funds for services
15  provided by the community-based child welfare projects are
16  limited to funds available for services described under s.
17  409.1671. The Department of Children and Family Services may
18  transfer the general revenue matching funds as billed by the
19  Agency for Health Care Administration.
20         (24)  ASSISTIVE CARE SERVICES.--The agency may pay for
21  assistive care services provided to recipients with functional
22  or cognitive impairments residing in assisted living
23  facilities, adult family-care homes, or residential treatment
24  facilities with 16 or fewer beds. These services may include
25  health support, assistance with the activities of daily living
26  and the instrumental acts of daily living, assistance with
27  medication administration, and arrangements for health care.
28         Section 7.  Subsection (3) of section 409.9065, Florida
29  Statutes, is amended to read:
30         409.9065  Pharmaceutical expense assistance.--
31
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  1         (3)  BENEFITS.--Medications covered under the
  2  pharmaceutical expense assistance program are those covered
  3  under the Medicaid program in s. 409.906(19)(20). Monthly
  4  benefit payments shall be limited to $80 per program
  5  participant. Participants are required to make a 10-percent
  6  coinsurance payment for each prescription purchased through
  7  this program.
  8         Section 8.  Section 409.908, Florida Statutes, is
  9  amended to read:
10         409.908  Reimbursement of Medicaid providers.--Subject
11  to specific appropriations, the agency shall reimburse
12  Medicaid providers, in accordance with state and federal law,
13  according to methodologies set forth in the rules of the
14  agency and in policy manuals and handbooks incorporated by
15  reference therein.  These methodologies may include fee
16  schedules, reimbursement methods based on cost reporting,
17  negotiated fees, competitive bidding pursuant to s. 287.057,
18  and other mechanisms the agency considers efficient and
19  effective for purchasing services or goods on behalf of
20  recipients.  Payment for Medicaid compensable services made on
21  behalf of Medicaid eligible persons is subject to the
22  availability of moneys and any limitations or directions
23  provided for in the General Appropriations Act or chapter 216.
24  Further, nothing in this section shall be construed to prevent
25  or limit the agency from adjusting fees, reimbursement rates,
26  lengths of stay, number of visits, or number of services, or
27  making any other adjustments necessary to comply with the
28  availability of moneys and any limitations or directions
29  provided for in the General Appropriations Act, provided the
30  adjustment is consistent with legislative intent.
31
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  1         (1)  Reimbursement to hospitals licensed under part I
  2  of chapter 395 must be made prospectively or on the basis of
  3  negotiation or competitive bidding. The agency shall reimburse
  4  for hospital inpatient and outpatient services under this
  5  subsection at rates no greater than 95 percent of the
  6  reimbursement rates in effect for the 2000-2001 state fiscal
  7  year.
  8         (a)  Reimbursement for inpatient care is limited as
  9  provided for in s. 409.905(5), except for:
10         1.  The raising of rate reimbursement caps, excluding
11  rural hospitals.
12         2.  Recognition of the costs of graduate medical
13  education.
14         3.  Other methodologies recognized in the General
15  Appropriations Act.
16
17  During the years funds are transferred from the Board of
18  Regents, any reimbursement supported by such funds shall be
19  subject to certification by the Board of Regents that the
20  hospital has complied with s. 381.0403. The agency is
21  authorized to receive funds from state entities, including,
22  but not limited to, the Board of Regents, local governments,
23  and other local political subdivisions, for the purpose of
24  making special exception payments, including federal matching
25  funds, through the Medicaid inpatient reimbursement
26  methodologies. Funds received from state entities or local
27  governments for this purpose shall be separately accounted for
28  and shall not be commingled with other state or local funds in
29  any manner. Notwithstanding this section and s. 409.915,
30  counties are exempt from contributing toward the cost of the
31  special exception reimbursement for hospitals serving a
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  1  disproportionate share of low-income persons and providing
  2  graduate medical education.
  3         (b)  Reimbursement for hospital outpatient care is
  4  limited to $1,500 per state fiscal year per recipient, except
  5  for:
  6         1.  Such care provided to a Medicaid recipient under
  7  age 21, in which case the only limitation is medical
  8  necessity.
  9         2.  Renal dialysis services.
10         3.  Other exceptions made by the agency.
11
12  The agency is authorized to receive funds from state entities,
13  including, but not limited to, the Board of Regents, local
14  governments, and other local political subdivisions, for the
15  purpose of making payments, including federal matching funds,
16  through the Medicaid outpatient reimbursement methodologies.
17  Funds received from state entities and local governments for
18  this purpose shall be separately accounted for and shall not
19  be commingled with other state or local funds in any manner.
20         (c)  Hospitals that provide services to a
21  disproportionate share of low-income Medicaid recipients, or
22  that participate in the regional perinatal intensive care
23  center program under chapter 383, or that participate in the
24  statutory teaching hospital disproportionate share program may
25  receive additional reimbursement. The total amount of payment
26  for disproportionate share hospitals shall be fixed by the
27  General Appropriations Act. The computation of these payments
28  must be made in compliance with all federal regulations and
29  the methodologies described in ss. 409.911, 409.9112, and
30  409.9113.
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  1         (d)  The agency is authorized to limit inflationary
  2  increases for outpatient hospital services as directed by the
  3  General Appropriations Act.
  4         (2)(a)1.  Reimbursement to nursing homes licensed under
  5  part II of chapter 400 and state-owned-and-operated
  6  intermediate care facilities for the developmentally disabled
  7  licensed under chapter 393 must be made prospectively or on
  8  the basis of competitive bidding.
  9         2.  Unless otherwise limited or directed in the General
10  Appropriations Act, reimbursement to hospitals licensed under
11  part I of chapter 395 for the provision of swing-bed nursing
12  home services must be made on the basis of the average
13  statewide nursing home payment, and reimbursement to a
14  hospital licensed under part I of chapter 395 for the
15  provision of skilled nursing services must be made on the
16  basis of the average nursing home payment for those services
17  in the county in which the hospital is located. When a
18  hospital is located in a county that does not have any
19  community nursing homes, reimbursement must be determined by
20  averaging the nursing home payments, in counties that surround
21  the county in which the hospital is located. Reimbursement to
22  hospitals, including Medicaid payment of Medicare copayments,
23  for skilled nursing services shall be limited to 30 days,
24  unless a prior authorization has been obtained from the
25  agency. Medicaid reimbursement may be extended by the agency
26  beyond 30 days, and approval must be based upon verification
27  by the patient's physician that the patient requires
28  short-term rehabilitative and recuperative services only, in
29  which case an extension of no more than 15 days may be
30  approved. Reimbursement to a hospital licensed under part I of
31  chapter 395 for the temporary provision of skilled nursing
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  1  services to nursing home residents who have been displaced as
  2  the result of a natural disaster or other emergency may not
  3  exceed the average county nursing home payment for those
  4  services in the county in which the hospital is located and is
  5  limited to the period of time which the agency considers
  6  necessary for continued placement of the nursing home
  7  residents in the hospital.
  8         (b)  Subject to any limitations or directions provided
  9  for in the General Appropriations Act, the agency shall
10  establish and implement a Florida Title XIX Long-Term Care
11  Reimbursement Plan (Medicaid) for nursing home care in order
12  to provide care and services in conformance with the
13  applicable state and federal laws, rules, regulations, and
14  quality and safety standards and to ensure that individuals
15  eligible for medical assistance have reasonable geographic
16  access to such care. The agency shall not provide for any
17  increases in reimbursement rates to nursing homes associated
18  with changes in ownership. Under the plan, interim rate
19  adjustments shall not be granted to reflect increases in the
20  cost of general or professional liability insurance for
21  nursing homes unless the following criteria are met: have at
22  least a 65 percent Medicaid utilization in the most recent
23  cost report submitted to the agency, and the increase in
24  general or professional liability costs to the facility for
25  the most recent policy period affects the total Medicaid per
26  diem by at least 5 percent. This rate adjustment shall not
27  result in the per diem exceeding the class ceiling. This
28  provision shall apply only to fiscal year 2000-2001 and shall
29  be implemented to the extent existing appropriations are
30  available. The agency shall report to the Governor, the
31  Speaker of the House of Representatives, and the President of
                                  22
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  1  the Senate by December 31, 2000, on the cost of liability
  2  insurance for Florida nursing homes for fiscal years 1999 and
  3  2000 and the extent to which these costs are not being
  4  compensated by the Medicaid program. Medicaid-participating
  5  nursing homes shall be required to report to the agency
  6  information necessary to compile this report. Effective no
  7  earlier than the rate-setting period beginning April 1, 1999,
  8  the agency shall establish a case-mix reimbursement
  9  methodology for the rate of payment for long-term care
10  services for nursing home residents. The agency shall compute
11  a per diem rate for Medicaid residents, adjusted for case mix,
12  which is based on a resident classification system that
13  accounts for the relative resource utilization by different
14  types of residents and which is based on level-of-care data
15  and other appropriate data. The case-mix methodology developed
16  by the agency shall take into account the medical, behavioral,
17  and cognitive deficits of residents. In developing the
18  reimbursement methodology, the agency shall evaluate and
19  modify other aspects of the reimbursement plan as necessary to
20  improve the overall effectiveness of the plan with respect to
21  the costs of patient care, operating costs, and property
22  costs. In the event adequate data are not available, the
23  agency is authorized to adjust the patient's care component or
24  the per diem rate to more adequately cover the cost of
25  services provided in the patient's care component. The agency
26  shall work with the Department of Elderly Affairs, the Florida
27  Health Care Association, and the Florida Association of Homes
28  for the Aging in developing the methodology. It is the intent
29  of the Legislature that the reimbursement plan achieve the
30  goal of providing access to health care for nursing home
31  residents who require large amounts of care while encouraging
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  1  diversion services as an alternative to nursing home care for
  2  residents who can be served within the community. The agency
  3  shall base the establishment of any maximum rate of payment,
  4  whether overall or component, on the available moneys as
  5  provided for in the General Appropriations Act. The agency may
  6  base the maximum rate of payment on the results of
  7  scientifically valid analysis and conclusions derived from
  8  objective statistical data pertinent to the particular maximum
  9  rate of payment.
10         (3)  Subject to any limitations or directions provided
11  for in the General Appropriations Act, the following Medicaid
12  services and goods may be reimbursed on a fee-for-service
13  basis. For each allowable service or goods furnished in
14  accordance with Medicaid rules, policy manuals, handbooks, and
15  state and federal law, the payment shall be the amount billed
16  by the provider, the provider's usual and customary charge, or
17  the maximum allowable fee established by the agency, whichever
18  amount is less, with the exception of those services or goods
19  for which the agency makes payment using a methodology based
20  on capitation rates, average costs, or negotiated fees, or
21  competitive bidding.
22         (a)  Advanced registered nurse practitioner services.
23         (b)  Birth center services.
24         (c)  Chiropractic services.
25         (d)  Community mental health services.
26         (e)  Dental services, including oral and maxillofacial
27  surgery.
28         (f)  Durable medical equipment.
29         (g)  Hearing services for Medicaid recipients under age
30  21.
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  1         (h)  Occupational therapy for Medicaid recipients under
  2  age 21.
  3         (i)  Optometric services.
  4         (j)  Orthodontic services.
  5         (k)  Personal care for Medicaid recipients under age
  6  21.
  7         (l)  Physical therapy for Medicaid recipients under age
  8  21.
  9         (m)  Physician assistant services.
10         (n)  Podiatric services.
11         (o)  Portable X-ray services.
12         (p)  Private-duty nursing for Medicaid recipients under
13  age 21.
14         (q)  Registered nurse first assistant services.
15         (r)  Respiratory therapy for Medicaid recipients under
16  age 21.
17         (s)  Speech therapy for Medicaid recipients under age
18  21.
19         (t)  Visual services for Medicaid recipients under age
20  21.
21         (4)  Subject to any limitations or directions provided
22  for in the General Appropriations Act, alternative health
23  plans, health maintenance organizations, and prepaid health
24  plans shall be reimbursed a fixed, prepaid amount negotiated,
25  or competitively bid pursuant to s. 287.057, by the agency and
26  prospectively paid to the provider monthly for each Medicaid
27  recipient enrolled.  The amount may not exceed the average
28  amount the agency determines it would have paid, based on
29  claims experience, for recipients in the same or similar
30  category of eligibility.  The agency shall calculate
31  capitation rates on a regional basis and, beginning September
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  1  1, 1995, shall include age-band differentials in such
  2  calculations.  Effective July 1, 2001, the cost of exempting
  3  statutory teaching hospitals, specialty hospitals, and
  4  community hospital education program hospitals from
  5  reimbursement ceilings and the cost of special Medicaid
  6  payments shall not be included in premiums paid to health
  7  maintenance organizations or prepaid health care plans.
  8         (5)  An ambulatory surgical center shall be reimbursed
  9  the lesser of the amount billed by the provider or the
10  Medicare-established allowable amount for the facility.
11         (6)  A provider of early and periodic screening,
12  diagnosis, and treatment services to Medicaid recipients who
13  are children under age 21 shall be reimbursed using an
14  all-inclusive rate stipulated in a fee schedule established by
15  the agency. A provider of the visual, dental, and hearing
16  components of such services shall be reimbursed the lesser of
17  the amount billed by the provider or the Medicaid maximum
18  allowable fee established by the agency.
19         (7)  A provider of family planning services shall be
20  reimbursed the lesser of the amount billed by the provider or
21  an all-inclusive amount per type of visit for physicians and
22  advanced registered nurse practitioners, as established by the
23  agency in a fee schedule.
24         (8)  A provider of home-based or community-based
25  services rendered pursuant to a federally approved waiver
26  shall be reimbursed based on an established or negotiated rate
27  for each service. These rates shall be established according
28  to an analysis of the expenditure history and prospective
29  budget developed by each contract provider participating in
30  the waiver program, or under any other methodology adopted by
31  the agency and approved by the Federal Government in
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  1  accordance with the waiver. Effective July 1, 1996, privately
  2  owned and operated community-based residential facilities
  3  which meet agency requirements and which formerly received
  4  Medicaid reimbursement for the optional intermediate care
  5  facility for the mentally retarded service may participate in
  6  the developmental services waiver as part of a
  7  home-and-community-based continuum of care for Medicaid
  8  recipients who receive waiver services.
  9         (9)  A provider of home health care services or of
10  medical supplies and appliances shall be reimbursed on the
11  basis of competitive bidding or for the lesser of the amount
12  billed by the provider or the agency's established maximum
13  allowable amount, except that, in the case of the rental of
14  durable medical equipment, the total rental payments may not
15  exceed the purchase price of the equipment over its expected
16  useful life or the agency's established maximum allowable
17  amount, whichever amount is less.
18         (10)  A hospice shall be reimbursed through a
19  prospective system for each Medicaid hospice patient at
20  Medicaid rates using the methodology established for hospice
21  reimbursement pursuant to Title XVIII of the federal Social
22  Security Act.
23         (11)  A provider of independent laboratory services
24  shall be reimbursed on the basis of competitive bidding or for
25  the least of the amount billed by the provider, the provider's
26  usual and customary charge, or the Medicaid maximum allowable
27  fee established by the agency.
28         (12)(a)  A physician shall be reimbursed the lesser of
29  the amount billed by the provider or the Medicaid maximum
30  allowable fee established by the agency.
31
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  1         (b)  The agency shall adopt a fee schedule, subject to
  2  any limitations or directions provided for in the General
  3  Appropriations Act, based on a resource-based relative value
  4  scale for pricing Medicaid physician services. Under this fee
  5  schedule, physicians shall be paid a dollar amount for each
  6  service based on the average resources required to provide the
  7  service, including, but not limited to, estimates of average
  8  physician time and effort, practice expense, and the costs of
  9  professional liability insurance.  The fee schedule shall
10  provide increased reimbursement for preventive and primary
11  care services and lowered reimbursement for specialty services
12  by using at least two conversion factors, one for cognitive
13  services and another for procedural services.  The fee
14  schedule shall not increase total Medicaid physician
15  expenditures unless funds are specifically provided for such
16  increase. However, in no case may any increase result in
17  physicians being paid more than the Medicare fee moneys are
18  available, and shall be phased in over a 2-year period
19  beginning on July 1, 1994. The Agency for Health Care
20  Administration shall seek the advice of a 16-member advisory
21  panel in formulating and adopting the fee schedule.  The panel
22  shall consist of Medicaid physicians licensed under chapters
23  458 and 459 and shall be composed of 50 percent primary care
24  physicians and 50 percent specialty care physicians.
25         (c)  Notwithstanding paragraph (b), reimbursement fees
26  to physicians for providing total obstetrical services to
27  Medicaid recipients, which include prenatal, delivery, and
28  postpartum care, shall be at least $1,500 per delivery for a
29  pregnant woman with low medical risk and at least $2,000 per
30  delivery for a pregnant woman with high medical risk. However,
31  reimbursement to physicians working in Regional Perinatal
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  1  Intensive Care Centers designated pursuant to chapter 383, for
  2  services to certain pregnant Medicaid recipients with a high
  3  medical risk, may be made according to obstetrical care and
  4  neonatal care groupings and rates established by the agency.
  5  Nurse midwives licensed under part I of chapter 464 or
  6  midwives licensed under chapter 467 shall be reimbursed at no
  7  less than 80 percent of the low medical risk fee. The agency
  8  shall by rule determine, for the purpose of this paragraph,
  9  what constitutes a high or low medical risk pregnant woman and
10  shall not pay more based solely on the fact that a caesarean
11  section was performed, rather than a vaginal delivery. The
12  agency shall by rule determine a prorated payment for
13  obstetrical services in cases where only part of the total
14  prenatal, delivery, or postpartum care was performed. The
15  Department of Health shall adopt rules for appropriate
16  insurance coverage for midwives licensed under chapter 467.
17  Prior to the issuance and renewal of an active license, or
18  reactivation of an inactive license for midwives licensed
19  under chapter 467, such licensees shall submit proof of
20  coverage with each application.
21         (13)  Medicare premiums for persons eligible for both
22  Medicare and Medicaid coverage shall be paid at the rates
23  established by Title XVIII of the Social Security Act.  For
24  Medicare services rendered to Medicaid-eligible persons,
25  Medicaid shall pay Medicare deductibles and coinsurance as
26  follows:
27         (a)  Medicaid shall make no payment toward deductibles
28  and coinsurance for any service that is not covered by
29  Medicaid.
30
31
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  1         (b)  Medicaid's financial obligation for deductibles
  2  and coinsurance payments shall be based on Medicare allowable
  3  fees, not on a provider's billed charges.
  4         (c)  Medicaid will pay no portion of Medicare
  5  deductibles and coinsurance when payment that Medicare has
  6  made for the service equals or exceeds what Medicaid would
  7  have paid if it had been the sole payor.  The combined payment
  8  of Medicare and Medicaid shall not exceed the amount Medicaid
  9  would have paid had it been the sole payor. The Legislature
10  finds that there has been confusion regarding the
11  reimbursement for services rendered to dually eligible
12  Medicare beneficiaries. Accordingly, the Legislature clarifies
13  that it has always been the intent of the Legislature before
14  and after 1991 that, in reimbursing in accordance with fees
15  established by Title XVIII for premiums, deductibles, and
16  coinsurance for Medicare services rendered by physicians to
17  Medicaid eligible persons, physicians be reimbursed at the
18  lesser of the amount billed by the physician or the Medicaid
19  maximum allowable fee established by the Agency for Health
20  Care Administration, as is permitted by federal law. It has
21  never been the intent of the Legislature with regard to such
22  services rendered by physicians that Medicaid be required to
23  provide any payment for deductibles, coinsurance, or
24  copayments for Medicare cost sharing, or any expenses incurred
25  relating thereto, in excess of the payment amount provided for
26  under the State Medicaid plan for such service. This payment
27  methodology is applicable even in those situations in which
28  the payment for Medicare cost sharing for a qualified Medicare
29  beneficiary with respect to an item or service is reduced or
30  eliminated. This expression of the Legislature is in
31  clarification of existing law and shall apply to payment for,
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  1  and with respect to provider agreements with respect to, items
  2  or services furnished on or after the effective date of this
  3  act. This paragraph applies to payment by Medicaid for items
  4  and services furnished before the effective date of this act
  5  if such payment is the subject of a lawsuit that is based on
  6  the provisions of this section, and that is pending as of, or
  7  is initiated after, the effective date of this act.
  8         (d)  Notwithstanding The following provisions are
  9  exceptions to paragraphs (a)-(c):
10         1.  Medicaid payments for Nursing Home Medicare part A
11  coinsurance shall be the lesser of the Medicare coinsurance
12  amount or the Medicaid nursing home per diem rate.
13         2.  Medicaid shall pay all deductibles and coinsurance
14  for Nursing Home Medicare part B services.
15         2.3.  Medicaid shall pay all deductibles and
16  coinsurance for Medicare-eligible recipients receiving
17  freestanding end stage renal dialysis center services.
18         4.  Medicaid shall pay all deductibles and coinsurance
19  for hospital outpatient Medicare part B services.
20         3.5.  Medicaid payments for general hospital inpatient
21  services shall be limited to the Medicare deductible per spell
22  of illness.  Medicaid shall make no payment toward coinsurance
23  for Medicare general hospital inpatient services.
24         4.6.  Medicaid shall pay all deductibles and
25  coinsurance for Medicare emergency transportation services
26  provided by ambulances licensed pursuant to chapter 401.
27         (14)  A provider of prescribed drugs shall be
28  reimbursed on the basis of competitive bidding or for the
29  least of the amount billed by the provider, the provider's
30  usual and customary charge, or the Medicaid maximum allowable
31  fee established by the agency, plus a dispensing fee. The
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  1  agency is directed to implement a variable dispensing fee for
  2  payments for prescribed medicines while ensuring continued
  3  access for Medicaid recipients.  The variable dispensing fee
  4  may be based upon, but not limited to, either or both the
  5  volume of prescriptions dispensed by a specific pharmacy
  6  provider and the volume of prescriptions dispensed to an
  7  individual recipient. The agency is authorized to limit
  8  reimbursement for prescribed medicine in order to comply with
  9  any limitations or directions provided for in the General
10  Appropriations Act, which may include implementing a
11  prospective or concurrent utilization review program.
12         (15)  A provider of primary care case management
13  services rendered pursuant to a federally approved waiver
14  shall be reimbursed by payment of a fixed, prepaid monthly sum
15  for each Medicaid recipient enrolled with the provider.
16         (16)  A provider of rural health clinic services and
17  federally qualified health center services shall be reimbursed
18  a rate per visit based on total reasonable costs of the
19  clinic, as determined by the agency in accordance with federal
20  regulations.
21         (17)  A provider of targeted case management services
22  shall be reimbursed pursuant to an established fee, except
23  where the Federal Government requires a public provider be
24  reimbursed on the basis of average actual costs.
25         (18)  Unless otherwise provided for in the General
26  Appropriations Act, a provider of transportation services
27  shall be reimbursed the lesser of the amount billed by the
28  provider or the Medicaid maximum allowable fee established by
29  the agency, except when the agency has entered into a direct
30  contract with the provider, or with a community transportation
31  coordinator, for the provision of an all-inclusive service, or
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  1  when services are provided pursuant to an agreement negotiated
  2  between the agency and the provider.  The agency, as provided
  3  for in s. 427.0135, shall purchase transportation services
  4  through the community coordinated transportation system, if
  5  available, unless the agency determines a more cost-effective
  6  method for Medicaid clients. Nothing in this subsection shall
  7  be construed to limit or preclude the agency from contracting
  8  for services using a prepaid capitation rate or from
  9  establishing maximum fee schedules, individualized
10  reimbursement policies by provider type, negotiated fees,
11  prior authorization, competitive bidding, increased use of
12  mass transit, or any other mechanism that the agency considers
13  efficient and effective for the purchase of services on behalf
14  of Medicaid clients, including implementing a transportation
15  eligibility process. The agency shall not be required to
16  contract with any community transportation coordinator or
17  transportation operator that has been determined by the
18  agency, the Department of Legal Affairs Medicaid Fraud Control
19  Unit, or any other state or federal agency to have engaged in
20  any abusive or fraudulent billing activities. The agency is
21  authorized to competitively procure transportation services or
22  make other changes necessary to secure approval of federal
23  waivers needed to permit federal financing of Medicaid
24  transportation services at the service matching rate rather
25  than the administrative matching rate.
26         (19)  County health department services may be
27  reimbursed a rate per visit based on total reasonable costs of
28  the clinic, as determined by the agency in accordance with
29  federal regulations under the authority of 42 C.F.R. s.
30  431.615.
31
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  1         (20)  A renal dialysis facility that provides dialysis
  2  services under s. 409.906(8)(9) must be reimbursed the lesser
  3  of the amount billed by the provider, the provider's usual and
  4  customary charge, or the maximum allowable fee established by
  5  the agency, whichever amount is less.
  6         (21)  The agency shall reimburse school districts which
  7  certify the state match pursuant to ss. 236.0812 and 409.9071
  8  for the federal portion of the school district's allowable
  9  costs to deliver the services, based on the reimbursement
10  schedule.  The school district shall determine the costs for
11  delivering services as authorized in ss. 236.0812 and 409.9071
12  for which the state match will be certified. Reimbursement of
13  school-based providers is contingent on such providers being
14  enrolled as Medicaid providers and meeting the qualifications
15  contained in 42 C.F.R. s. 440.110, unless otherwise waived by
16  the federal Health Care Financing Administration. Speech
17  therapy providers who are certified through the Department of
18  Education pursuant to rule 6A-4.0176, Florida Administrative
19  Code, are eligible for reimbursement for services that are
20  provided on school premises. Any employee of the school
21  district who has been fingerprinted and has received a
22  criminal background check in accordance with Department of
23  Education rules and guidelines shall be exempt from any agency
24  requirements relating to criminal background checks.
25  Elementary, middle, and secondary schools affiliated with
26  Florida universities may separately enroll in the Medicaid
27  certified school match program and may certify local
28  expenditures for Medicaid school health services and the
29  administrative claiming program.
30
31
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  1         (22)  Reimbursement to state-owned-and-operated
  2  intermediate care facilities for the developmentally disabled
  3  licensed under chapter 393 must be made prospectively.
  4         Section 9.  Paragraph (c) of subsection (1), paragraph
  5  (b) of subsection (3), and subsection (7) of section 409.911,
  6  Florida Statutes, are amended to read:
  7         409.911  Disproportionate share program.--Subject to
  8  specific allocations established within the General
  9  Appropriations Act and any limitations established pursuant to
10  chapter 216, the agency shall distribute, pursuant to this
11  section, moneys to hospitals providing a disproportionate
12  share of Medicaid or charity care services by making quarterly
13  Medicaid payments as required. Notwithstanding the provisions
14  of s. 409.915, counties are exempt from contributing toward
15  the cost of this special reimbursement for hospitals serving a
16  disproportionate share of low-income patients.
17         (1)  Definitions.--As used in this section and s.
18  409.9112:
19         (c)  "Base Medicaid per diem" means the hospital's
20  Medicaid per diem rate initially established by the Agency for
21  Health Care Administration on January 1, 1999 prior to the
22  beginning of each state fiscal year.  The base Medicaid per
23  diem rate shall not include any additional per diem increases
24  received as a result of the disproportionate share
25  distribution.
26         (3)  In computing the disproportionate share rate:
27         (b)  The agency shall use 1994 the most recent calendar
28  year audited financial data available at the beginning of each
29  state fiscal year for the calculation of disproportionate
30  share payments under this section.
31
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  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 10.  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
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  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
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  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
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  1  voluntary Medicaid preferred prescribed drug list to all
  2  Medicaid prescribing providers in the state.
  3         Section 11.  Subsection (2) of section 409.9116,
  4  Florida Statutes, is amended to read:
  5         409.9116  Disproportionate share/financial assistance
  6  program for rural hospitals.--In addition to the payments made
  7  under s. 409.911, the Agency for Health Care Administration
  8  shall administer a federally matched disproportionate share
  9  program and a state-funded financial assistance program for
10  statutory rural hospitals. The agency shall make
11  disproportionate share payments to statutory rural hospitals
12  that qualify for such payments and financial assistance
13  payments to statutory rural hospitals that do not qualify for
14  disproportionate share payments. The disproportionate share
15  program payments shall be limited by and conform with federal
16  requirements. Funds shall be distributed quarterly in each
17  fiscal year for which an appropriation is made.
18  Notwithstanding the provisions of s. 409.915, counties are
19  exempt from contributing toward the cost of this special
20  reimbursement for hospitals serving a disproportionate share
21  of low-income patients.
22         (2)  The agency shall use the following formula for
23  distribution of funds for the disproportionate share/financial
24  assistance program for rural hospitals:
25         (a)  The agency shall first determine a preliminary
26  payment amount for each rural hospital by allocating all
27  available state funds using the following formula:
28
29                  PDAER = (TAERH x TARH)/STAERH
30
31  Where:
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  1         PDAER = preliminary distribution amount for each rural
  2  hospital.
  3         TAERH = total amount earned by each rural hospital.
  4         TARH = total amount appropriated or distributed under
  5  this section.
  6         STAERH = sum of total amount earned by each rural
  7  hospital.
  8         (b)  Federal matching funds for the disproportionate
  9  share program shall then be calculated for those hospitals
10  that qualify for disproportionate share in paragraph (a).
11         (c)  The state-funds-only payment amount shall then be
12  calculated for each hospital using the following formula:
13
14         SFOER = Maximum value of (1) SFOL - PDAER or (2) 0
15
16  Where:
17         SFOER = state-funds-only payment amount for each rural
18  hospital.
19         SFOL = state-funds-only payment level, which is set at
20  4 percent of TARH.
21
22  In calculating the SFOER, PDAER includes federal matching
23  funds from paragraph (b).
24         (d)  The adjusted total amount allocated to the rural
25  disproportionate share program shall then be calculated using
26  the following formula:
27
28                     ATARH = (TARH - SSFOER)
29
30  Where:
31
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  1         ATARH = adjusted total amount appropriated or
  2  distributed under this section.
  3         SSFOER = sum of the state-funds-only payment amount
  4  calculated under paragraph (c) for all rural hospitals.
  5         (e)  The distribution of the adjusted total amount of
  6  rural disproportionate share hospital funds shall then be
  7  calculated using the following formula:
  8
  9                 DAERH = [(TAERH x ATARH)/STAERH]
10
11  Where:
12         DAERH = distribution amount for each rural hospital.
13         (f)  Federal matching funds for the disproportionate
14  share program shall then be calculated for those hospitals
15  that qualify for disproportionate share in paragraph (e).
16         (g)  State-funds-only payment amounts calculated under
17  paragraph (c) and corresponding federal matching funds are
18  then added to the results of paragraph (f) to determine the
19  total distribution amount for each rural hospital.  In
20  determining the payment amount for each rural hospital under
21  this section, the agency shall first allocate all available
22  state funds by the following formula:
23
24                   DAER = (TAERH x TARH)/STAERH
25
26  Where:
27         DAER = distribution amount for each rural hospital.
28         STAERH = sum of total amount earned by each rural
29  hospital.
30         TAERH = total amount earned by each rural hospital.
31
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  1         TARH = total amount appropriated or distributed under
  2  this section.
  3
  4  Federal matching funds for the disproportionate share program
  5  shall then be calculated for those hospitals that qualify for
  6  disproportionate share payments under this section.
  7         Section 12.  Paragraph (b) of subsection (3),
  8  subsections (26) and (34), and paragraph (a) of subsection
  9  (37) of section 409.912, Florida Statutes, are amended to
10  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         (3)  The agency may contract with:
25         (b)  An entity that provides is providing comprehensive
26  behavioral health care services to certain Medicaid recipients
27  through a capitated, prepaid arrangement pursuant to the
28  federal waiver provided for by s. 409.905(5). Such an entity
29  must be licensed under chapter 624, chapter 636, or chapter
30  641 and must possess the clinical systems and operational
31  competence to manage risk and provide comprehensive behavioral
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  1  health care to Medicaid recipients. As used in this paragraph,
  2  the term "comprehensive behavioral health care services" means
  3  covered mental health and substance abuse treatment services
  4  that are available to Medicaid recipients. The secretary of
  5  the Department of Children and Family Services shall approve
  6  provisions of procurements related to children in the
  7  department's care or custody prior to enrolling such children
  8  in a prepaid behavioral health plan. Any contract awarded
  9  under this paragraph must be competitively procured. In
10  developing the behavioral health care prepaid plan procurement
11  document, the agency shall ensure that the procurement
12  document requires the contractor to develop and implement a
13  plan to ensure compliance with s. 394.4574 related to services
14  provided to residents of licensed assisted living facilities
15  that hold a limited mental health license. The agency must
16  ensure that Medicaid recipients have available the choice of
17  at least two managed care plans for their behavioral health
18  care services. The agency may continue to reimburse for
19  substance abuse treatment services on a fee-for-service basis
20  until the agency finds that adequate funds are available for
21  capitated, prepaid arrangements or until the agency determines
22  that a capitated arrangement will not adversely affect the
23  availability of substance abuse treatment services.
24         1.  By January 1, 2001, the agency shall modify the
25  contracts with the entities providing comprehensive inpatient
26  and outpatient mental health care services to Medicaid
27  recipients in Hillsborough, Highlands, Hardee, Manatee, and
28  Polk Counties, to include substance-abuse-treatment services.
29         2.  By December 31, 2001, the agency shall contract
30  with entities providing comprehensive behavioral health care
31  services to Medicaid recipients through capitated, prepaid
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  1  arrangements in Charlotte, Collier, DeSoto, Escambia, Glades,
  2  Hendry, Lee, Okaloosa, Pasco, Pinellas, Santa Rosa, Sarasota,
  3  and Walton Counties. The agency may contract with entities
  4  providing comprehensive behavioral health care services to
  5  Medicaid recipients through capitated, prepaid arrangements in
  6  Alachua County. The agency may determine if Sarasota County
  7  shall be included as a separate catchment area or included in
  8  any other agency geographic area.
  9         1.3.  Children residing in a Department of Juvenile
10  Justice residential program approved as a Medicaid behavioral
11  health overlay services provider shall not be included in a
12  behavioral health care prepaid health plan pursuant to this
13  paragraph.
14         2.4.  In converting to a prepaid system of delivery,
15  the agency shall in its procurement document require an entity
16  providing comprehensive behavioral health care services to
17  prevent the displacement of indigent care patients by
18  enrollees in the Medicaid prepaid health plan providing
19  behavioral health care services from facilities receiving
20  state funding to provide indigent behavioral health care, to
21  facilities licensed under chapter 395 which do not receive
22  state funding for indigent behavioral health care, or
23  reimburse the unsubsidized facility for the cost of behavioral
24  health care provided to the displaced indigent care patient.
25         3.5.  Traditional community mental health providers
26  under contract with the Department of Children and Family
27  Services pursuant to part IV of chapter 394 and inpatient
28  mental health providers licensed pursuant to chapter 395 must
29  be offered an opportunity to accept or decline a contract to
30  participate in any provider network for prepaid behavioral
31  health services.
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  1         (26)  The agency shall conduct perform choice
  2  counseling, enrollments, and disenrollments for Medicaid
  3  recipients who are eligible for MediPass or managed care
  4  plans.  Notwithstanding the prohibition contained in paragraph
  5  (18)(f), managed care plans may perform preenrollments of
  6  Medicaid recipients under the supervision of the agency or its
  7  agents.  For the purposes of this section, "preenrollment"
  8  means the provision of marketing and educational materials to
  9  a Medicaid recipient and assistance in completing the
10  application forms, but shall not include actual enrollment
11  into a managed care plan.  An application for enrollment shall
12  not be deemed complete until the agency or its agent verifies
13  that the recipient made an informed, voluntary choice.  The
14  agency, in cooperation with the Department of Children and
15  Family Services, may test new marketing initiatives to inform
16  Medicaid recipients about their managed care options at
17  selected sites.  The agency shall report to the Legislature on
18  the effectiveness of such initiatives.  The agency may
19  contract with a third party to perform managed care plan and
20  MediPass choice-counseling, enrollment, and disenrollment
21  services for Medicaid recipients and is authorized to adopt
22  rules to implement such services. The agency may adjust the
23  capitation rate only to cover the costs of a third-party
24  choice-counseling, enrollment, and disenrollment contract, and
25  for agency supervision and management of the managed care plan
26  choice-counseling, enrollment, and disenrollment contract.
27         (34)  The agency may provide for cost-effective
28  purchasing of home health services, hospital inpatient and
29  outpatient services, private duty nursing services,
30  independent laboratory services, durable medical equipment and
31  supplies, nursing home services, other long-term care
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  1  services, and prescribed drug services through competitive
  2  bidding negotiation pursuant to s. 287.057. The agency may
  3  request appropriate waivers from the federal Health Care
  4  Financing Administration in order to competitively bid such
  5  home health services. The agency may exclude providers not
  6  selected through the bidding process from the Medicaid
  7  provider network.
  8         (37)(a)  The agency shall implement a Medicaid
  9  prescribed-drug spending-control program that includes the
10  following components:
11         1.  Medicaid prescribed-drug coverage for brand-name
12  drugs for adult Medicaid recipients not residing in nursing
13  homes or other institutions is limited to the dispensing of
14  four brand-name drugs per month per recipient. Children and
15  institutionalized adults are exempt from this restriction.
16  Antiretroviral agents are excluded from this limitation. No
17  requirements for prior authorization or other restrictions on
18  medications used to treat mental illnesses such as
19  schizophrenia, severe depression, or bipolar disorder may be
20  imposed on Medicaid recipients. Medications that will be
21  available without restriction for persons with mental
22  illnesses include atypical antipsychotic medications,
23  conventional antipsychotic medications, selective serotonin
24  reuptake inhibitors, and other medications used for the
25  treatment of serious mental illnesses. The agency shall also
26  limit the amount of a prescribed drug dispensed to no more
27  than a 34-day supply. The agency shall continue to provide
28  unlimited generic drugs, contraceptive drugs and items, and
29  diabetic supplies. The agency may authorize exceptions to the
30  brand-name-drug restriction or to the restricted drug
31  formulary, based upon the treatment needs of the patients,
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  1  only when such exceptions are based on prior consultation
  2  provided by the agency or an agency contractor, but the agency
  3  must establish procedures to ensure that:
  4         a.  There will be a response to a request for prior
  5  consultation by telephone or other telecommunication device
  6  within 24 hours after receipt of a request for prior
  7  consultation; and
  8         b.  A 72-hour supply of the drug prescribed will be
  9  provided in an emergency or when the agency does not provide a
10  response within 24 hours as required by sub-subparagraph a.
11         2.  Reimbursement to pharmacies for Medicaid prescribed
12  drugs shall be set at the lowest of the average wholesale
13  price less 13.25 percent, the wholesaler acquisition cost plus
14  7 percent, the federal or state pricing limit, or the
15  provider's usual and customary charge.
16         3.  The agency shall develop and implement a process
17  for managing the drug therapies of Medicaid recipients who are
18  using significant numbers of prescribed drugs each month. The
19  management process may include, but is not limited to,
20  comprehensive, physician-directed medical-record reviews,
21  claims analyses, and case evaluations to determine the medical
22  necessity and appropriateness of a patient's treatment plan
23  and drug therapies. The agency may contract with a private
24  organization to provide drug-program-management services.
25         4.  The agency may limit the size of its pharmacy
26  network based on need, competitive bidding, price
27  negotiations, credentialing, or similar criteria. The agency
28  shall give special consideration to rural areas in determining
29  the size and location of pharmacies included in the Medicaid
30  pharmacy network. A pharmacy credentialing process may include
31  criteria such as a pharmacy's full-service status, location,
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  1  size, patient educational programs, patient consultation,
  2  disease-management services, and other characteristics. The
  3  agency may impose a moratorium on Medicaid pharmacy enrollment
  4  when it is determined that it has a sufficient number of
  5  Medicaid-participating providers.
  6         5.  The agency shall develop and implement a program
  7  that requires Medicaid practitioners who prescribe drugs to
  8  use a counterfeit-proof prescription pad for Medicaid
  9  prescriptions. The agency shall require the use of
10  standardized counterfeit-proof prescription pads by
11  Medicaid-participating prescribers or prescribers who write
12  prescriptions for Medicaid recipients. The agency may
13  implement the program in targeted geographic areas or
14  statewide.
15         6.  The agency may enter into arrangements that require
16  manufacturers of generic drugs prescribed to Medicaid
17  recipients to provide rebates of at least 15.1 percent of the
18  average manufacturer price for the manufacturer's generic
19  products. These arrangements shall require that if a
20  generic-drug manufacturer pays federal rebates for
21  Medicaid-reimbursed drugs at a level below 15.1 percent, the
22  manufacturer must provide a supplemental rebate to the state
23  in an amount necessary to achieve a 15.1-percent rebate level.
24  If a generic-drug manufacturer raises its price in excess of
25  the Consumer Price Index (Urban), the excess amount shall be
26  included in the supplemental rebate to the state.
27         7.  The agency may establish a restricted drug
28  formulary in accordance with 42 U.S.C. s. 1396r and, pursuant
29  to the establishment of such formulary, is authorized to
30  negotiate supplemental rebates from manufacturers at no less
31  than 10 percent of the average wholesale price on the last day
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  1  of each quarter. State supplemental manufacturer rebates shall
  2  be invoiced concurrently with federal rebates.
  3         Section 13.  Paragraph (a) of subsection (1) and
  4  subsection (7) of section 409.915, Florida Statutes, are
  5  amended to read:
  6         409.915  County contributions to Medicaid.--Although
  7  the state is responsible for the full portion of the state
  8  share of the matching funds required for the Medicaid program,
  9  in order to acquire a certain portion of these funds, the
10  state shall charge the counties for certain items of care and
11  service as provided in this section.
12         (1)  Each county shall participate in the following
13  items of care and service:
14         (a)  Payments for inpatient hospitalization in excess
15  of 10 12 days, but not in excess of 45 days, with the
16  exception of pregnant women and children whose income is in
17  excess of the federal poverty level and who do not participate
18  in the Medicaid medically needy program.
19         (7)  Counties are exempt from contributing toward the
20  cost of new exemptions on inpatient ceilings for statutory
21  teaching hospitals, specialty hospitals, and community
22  hospital education program hospitals that came into effect
23  July 1, 2000, and for special Medicaid payments that came into
24  effect on or after July 1, 2000.  Notwithstanding any
25  provision of this section to the contrary, counties are exempt
26  from contributing toward the increased cost of hospital
27  inpatient services due to the elimination of ceilings on
28  Medicaid inpatient reimbursement rates paid to teaching
29  hospitals, specialty hospitals, and community health education
30  program hospitals and for special Medicaid reimbursements to
31  hospitals for which the Legislature has specifically
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  1  appropriated funds. This subsection is repealed on July 1,
  2  2001.
  3         Section 14.  Section 636.0145, Florida Statutes, is
  4  repealed:
  5         636.0145  Certain entities contracting with
  6  Medicaid.--Notwithstanding the requirements of s.
  7  409.912(3)(b), an entity that is providing comprehensive
  8  inpatient and outpatient mental health care services to
  9  certain Medicaid recipients in Hillsborough, Highlands,
10  Hardee, Manatee, and Polk Counties through a capitated,
11  prepaid arrangement pursuant to the federal waiver provided
12  for in s. 409.905(5) must become licensed under chapter 636 by
13  December 31, 1998. Any entity licensed under this chapter
14  which provides services solely to Medicaid recipients under a
15  contract with Medicaid shall be exempt from ss. 636.017,
16  636.018, 636.022, 636.028, and 636.034.
17         Section 15.  The Legislature determines and declares
18  that this act fulfills an important state interest.
19         Section 16.  This act shall take effect July 1, 2001.
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    Florida House of Representatives - 2001                HB 1753
    187-883A-01
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  2                          HOUSE SUMMARY
  3
      Revises various provisions relating to duties of the
  4    Agency for Health Care Administration with respect to
      Medicaid.  Deletes the requirement to provide recipients
  5    counseling regarding choice among health care provider
      options.  Revises Medicaid eligibility requirements for
  6    pregnant women and children under age 1.  Revises
      Medicaid eligibility requirements for certain elderly or
  7    disabled persons.  Revises Medicaid eligibility
      requirements of postpartum women for family planning
  8    services.  Authorizes payment for health insurance
      premiums of eligible individuals if cost-effective.
  9    Updates provisions relating to hospital inpatient
      behavioral health services provided pursuant to a
10    federally approved waiver and expands provision of such
      services statewide.  Deletes adult denture services as
11    optional Medicaid services and restricts authorized
      hearing and visual services to children.  Provides
12    additional requirements for authorized intermediate care
      services.  Adds assistive care services as an optional
13    Medicaid service for recipients in certain residential
      living settings.  Provides for reimbursement of hospital
14    inpatient and outpatient services at certain rates.
      Prohibits increases in reimbursement rates to nursing
15    homes associated with changes in ownership.  Precludes
      premium adjustments to managed care organizations under
16    certain circumstances.  Revises provisions relating to
      physician reimbursement and the reimbursement fee
17    schedule.  Deletes certain preferential Medicaid payments
      for dually eligible recipients. Authorizes competitive
18    procurement of transportation services or the securing
      through waivers of federal financing of transportation
19    services at certain rates. Authorizes public schools
      affiliated with Florida universities to separately enroll
20    in the Medicaid certified school match program and
      certify local expenditures therefor.  Updates data
21    requirements and share rates for disproportionate share
      distributions and modifies the formula for
22    disproportionate share/financial assistance distributions
      to rural hospitals.  Revises provisions relating to the
23    membership of the Medicaid Pharmaceutical and
      Therapeutics Committee.  Provides for establishment of a
24    restricted drug formulary for Medicaid providers,
      authorizes exemptions therefrom, and authorizes
25    negotiation of supplemental rebates from drug
      manufacturers pursuant thereto. Authorizes continued
26    reimbursement of substance abuse treatment services on a
      fee-for-service basis under certain conditions.  Deletes
27    authorization to test new marketing initiatives relating
      to managed care options. Deletes a restriction on
28    adjustment of capitation rates.  Permits competitive
      bidding for certain services.  Modifies reimbursement to
29    pharmacies.  Requires prescriptions for Medicaid
      recipients to be on certain standardized forms.
30    Increases county contributions to Medicaid for inpatient
      hospitalization.  Exempts counties from contributing
31    toward the cost of inpatient services provided by certain
      hospitals and for special Medicaid payments under certain
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    Florida House of Representatives - 2001                HB 1753
    187-883A-01
  1    conditions.  Provides a finding of important state
      interest.  See bill for details.
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