Senate Bill sb1838c2

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    Florida Senate - 2002                    CS for CS for SB 1838

    By the Committees on Children and Families; Health, Aging and
    Long-Term Care; and Senator Brown-Waite




    300-2293-02

  1                      A bill to be entitled

  2         An act relating to long-term care; creating s.

  3         409.221, F.S.; creating the "Florida

  4         Consumer-Directed Care Act"; providing

  5         legislative findings; providing legislative

  6         intent; establishing the consumer-directed care

  7         program; providing for consumer selection of

  8         certain long-term-care services and providers;

  9         providing for interagency agreements between

10         the Agency for Health Care Administration and

11         the Department of Elderly Affairs, the

12         Department of Health, and the Department of

13         Children and Family Services; providing for

14         program eligibility and enrollment; providing

15         definitions; providing for consumer budget

16         allowances and purchasing guidelines;

17         specifying authorized services; providing roles

18         and responsibilities of consumers, the agency

19         and departments, and fiduciary intermediaries;

20         providing background screening requirements for

21         persons who render care under the program;

22         providing rulemaking authority of the agency

23         and departments; requiring the agency to apply

24         for federal waivers as necessary; requiring

25         ongoing program reviews and annual reports;

26         providing legislative findings and intent with

27         respect to the needs of the state's elderly

28         population; requiring the Agency for Health

29         Care Administration and the Department of

30         Elderly Affairs to submit a plan to the

31         Governor and Legislature for reducing

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  1         nursing-home-bed days funded under the Medicaid

  2         program; amending s. 408.034, F.S.; providing

  3         additional requirements for the Agency for

  4         Health Care Administration in determining the

  5         need for additional nursing-facility beds;

  6         amending s. 409.912, F.S.; authorizing the

  7         Agency for Health Care Administration to

  8         contract with vendors on a risk-sharing basis

  9         for in-home physician services; requiring the

10         Agency for Health Care Administration to

11         establish a nursing facility preadmission

12         screening program through an interagency

13         agreement with the Department of Elderly

14         Affairs; requiring an annual report to the

15         Legislature and the Office of Long-Term-Care

16         Policy; creating s. 430.041, F.S.; establishing

17         the Office of Long-Term-Care Policy within the

18         Department of Elderly Affairs; requiring the

19         office to make recommendations for coordinating

20         the services provided by state agencies;

21         providing for the appointment of an advisory

22         board to the Office of Long-Term-Care Policy;

23         specifying membership of the advisory board;

24         providing for reimbursement of per diem and

25         travel expenses for members of the advisory

26         board; requiring that the office submit an

27         annual report to the Governor and Legislature;

28         requiring assistance to the office by state

29         agencies and universities; creating s.

30         430.7031, F.S.; requiring the Department of

31         Elderly Affairs and the Agency for Health Care

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  1         Administration to implement a nursing home

  2         transition program; providing requirements for

  3         the program; amending ss. 409.908, 430.708,

  4         641.386, F.S., relating to reimbursement of

  5         Medicaid providers, certificates of need, and

  6         agent licensing and appointment; conforming

  7         cross-references to changes made by the act;

  8         amending s. 400.0069, F.S.; increasing the

  9         maximum membership of the local long-term care

10         ombudsman councils; amending s. 400.0089, F.S.;

11         requiring the State Long-Term Care Ombudsman

12         Council to publish complaint information

13         quarterly; amending s. 400.0091, F.S.;

14         specifying training requirements for employees

15         of the Office of the State Long-Term Care

16         Ombudsman and its volunteers; amending s.

17         400.179, F.S.; providing an exemption from

18         certain requirements that the transferor of a

19         nursing facility maintain a bond; providing an

20         effective date.

21  

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

23  

24         Section 1.  Section 409.221, Florida Statutes, is

25  created to read:

26         409.221  Consumer-directed care program.--

27         (1)  SHORT TITLE.--This section may be cited as the

28  "Florida Consumer-Directed Care Act."

29         (2)  LEGISLATIVE FINDINGS.--The Legislature finds that

30  alternatives to institutional care, such as in-home and

31  community-based care, should be encouraged. The Legislature

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  1  finds that giving recipients of in-home and community-based

  2  services the opportunity to select the services they need and

  3  the providers they want, including family and friends,

  4  enhances their sense of dignity and autonomy. The Legislature

  5  also finds that providing consumers choice and control, as

  6  tested in current research and demonstration projects, has

  7  been beneficial and should be developed further and

  8  implemented statewide.

  9         (3)  LEGISLATIVE INTENT.--It is the intent of the

10  Legislature to nurture the autonomy of those citizens of the

11  state, of all ages, who have disabilities by providing the

12  long-term care services they need in the least restrictive,

13  appropriate setting. It is the intent of the Legislature to

14  give such individuals more choices in and greater control over

15  the purchased long-term care services they receive.

16         (4)  CONSUMER-DIRECTED CARE.--

17         (a)  Program established.--The Agency for Health Care

18  Administration shall establish the consumer-directed care

19  program which shall be based on the principles of consumer

20  choice and control. The agency shall implement the program

21  upon federal approval. The agency shall establish interagency

22  cooperative agreements with and shall work with the

23  Departments of Elderly Affairs, Health, and Children and

24  Family Services to implement and administer the program. The

25  program shall allow enrolled persons to choose the providers

26  of services and to direct the delivery of services, to best

27  meet their long-term care needs. The program must operate

28  within the funds appropriated by the Legislature.

29         (b)  Eligibility and enrollment.--Persons who are

30  enrolled in one of the Medicaid home and community-based

31  waiver programs and are able to direct their own care, or to

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  1  designate an eligible representative, may choose to

  2  participate in the consumer-directed care program.

  3         (c)  Definitions.--For purposes of this section, the

  4  term:

  5         1.  "Budget allowance" means the amount of money made

  6  available each month to a consumer to purchase needed

  7  long-term care services, based on the results of a functional

  8  needs assessment.

  9         2.  "Consultant" means an individual who provides

10  technical assistance to consumers in meeting their

11  responsibilities under this section.

12         3.  "Consumer" means a person who has chosen to

13  participate in the program, has met the enrollment

14  requirements, and has received an approved budget allowance.

15         4.  "Fiscal intermediary" means an entity approved by

16  the agency that helps the consumer manage the consumer's

17  budget allowance, retains the funds, processes employment

18  information, if any, and tax information, reviews records to

19  ensure correctness, writes paychecks to providers, and

20  delivers paychecks to the consumer for distribution to

21  providers and caregivers.

22         5.  "Provider" means:

23         a.  A person licensed or otherwise permitted to render

24  services eligible for reimbursement under this program for

25  whom the consumer is not the employer of record; or

26         b.  A consumer-employed caregiver for whom the consumer

27  is the employer of record.

28         6.  "Representative" means an uncompensated individual

29  designated by the consumer to assist in managing the

30  consumer's budget allowance and needed services.

31  

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  1         (d)  Budget allowances.--Consumers enrolled in the

  2  program shall be given a monthly budget allowance based on the

  3  results of their assessed functional needs and the financial

  4  resources of the program. Consumers shall receive the budget

  5  allowance directly from an agency-approved fiscal

  6  intermediary. Each department shall develop purchasing

  7  guidelines, approved by the agency, to assist consumers in

  8  using the budget allowance to purchase needed, cost-effective

  9  services.

10         (e)  Services.--Consumers shall use the budget

11  allowance only to pay for home and community-based services

12  that meet the consumer's long-term care needs and are a

13  cost-efficient use of funds. Such services may include, but

14  are not limited to, the following:

15         1.  Personal care.

16         2.  Homemaking and chores, including housework, meals,

17  shopping, and transportation.

18         3.  Home modifications and assistive devices which may

19  increase the consumer's independence or make it possible to

20  avoid institutional placement.

21         4.  Assistance in taking self-administered medication.

22         5.  Day care and respite care services, including those

23  provided by nursing home facilities pursuant to s. 400.141(6)

24  or by adult day care facilities licensed pursuant to s.

25  400.554.

26         6.  Personal care and support services provided in an

27  assisted living facility.

28         (f)  Consumer roles and responsibilities.--Consumers

29  shall be allowed to choose the providers of services, as well

30  as when and how the services are provided. Providers may

31  include a consumer's neighbor, friend, spouse, or relative.

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  1         1.  In cases where a consumer is the employer of

  2  record, the consumer's roles and responsibilities include, but

  3  are not limited to, the following:

  4         a.  Developing a job description.

  5         b.  Selecting caregivers and submitting information for

  6  the background screening as required in s. 435.05.

  7         c.  Communicating needs, preferences, and expectations

  8  about services being purchased.

  9         d.  Providing the fiscal intermediary with all

10  information necessary for provider payments and tax

11  requirements.

12         e.  Ending the employment of an unsatisfactory

13  caregiver.

14         2.  In cases where a consumer is not the employer of

15  record, the consumer's roles and responsibilities include, but

16  are not limited to, the following:

17         a.  Communicating needs, preferences, and expectations

18  about services being purchased.

19         b.  Ending the services of an unsatisfactory provider.

20         c.  Providing the fiscal agent with all information

21  necessary for provider payments and tax requirements.

22         (g)  Agency and departments roles and

23  responsibilities.--The agency's and the departments' roles and

24  responsibilities include, but are not limited to, the

25  following:

26         1.  Assessing each consumer's functional needs, helping

27  with the service plan, and providing ongoing assistance with

28  the service plan.

29         2.  Offering the services of consultants who shall

30  provide training, technical assistance, and support to the

31  consumer.

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  1         3.  Completing the background screening for providers.

  2         4.  Approving fiscal intermediaries.

  3         5.  Establishing the minimum qualifications for all

  4  caregivers and providers and being the final arbiter of the

  5  fitness of any individual to be a caregiver or provider.

  6         (h)  Fiscal intermediary roles and

  7  responsibilities.--The fiscal intermediary's roles and

  8  responsibilities include, but are not limited to, the

  9  following:

10         1.  Providing recordkeeping services.

11         2.  Retaining the consumer-directed care funds,

12  processing employment and tax information, if any, reviewing

13  records to ensure correctness, writing paychecks to providers,

14  and delivering paychecks to the consumer for distribution.

15         (i)  Background screening requirements.--All persons

16  who render care under this section shall comply with the

17  requirements of s. 435.05. Persons shall be excluded from

18  employment pursuant to s. 435.06.

19         1.  Persons excluded from employment may request an

20  exemption from disqualification, as provided in s. 435.07.

21  Persons not subject to certification or professional licensure

22  may request an exemption from the agency. In considering a

23  request for an exemption, the agency shall comply with the

24  provisions of s. 435.07.

25         2.  The agency shall, as allowable, reimburse

26  consumer-employed caregivers for the cost of conducting

27  background screening as required by this section.

28         (j)  Rules; federal waivers.--In order to implement

29  this section:

30  

31  

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  1         1.  The agency and the Departments of Elderly Affairs,

  2  Health, and Children and Family Services are authorized to

  3  adopt and enforce rules.

  4         2.  The agency shall take all necessary action to

  5  ensure state compliance with federal regulations. The agency

  6  shall apply for any necessary federal waivers or waiver

  7  amendments needed to implement the program.

  8         (k)  Reviews and reports.--The agency and the

  9  Departments of Elderly Affairs, Health, and Children and

10  Family Services shall each, on an ongoing basis, review and

11  assess the implementation of the consumer-directed care

12  program. By January 15 of each year, the agency shall submit a

13  written report to the Legislature that includes each

14  department's review of the program and contains

15  recommendations for improvements to the program.

16         Section 2.  The Legislature finds that the State of

17  Florida does not have a comprehensive and effective strategy

18  for economically and efficiently meeting the long-term-care

19  needs of an increasingly elderly population; that multiple

20  state agencies have responsibilities for oversight, planning,

21  and operation of long-term-care programs; that long-term care

22  is provided by a complex array of public and private entities

23  delivering services; that there has not been a focus on

24  evaluation of innovative and pilot projects and expansion of

25  pilot projects that are successful; that the provision of

26  long-term-care services has not been approached holistically;

27  and that the state does not have a mechanism for ensuring that

28  long-term-care programs are effectively and efficiently

29  operated and coordinated to comply with the policies set out

30  in Florida Statutes. It is therefore the intent of the

31  Legislature to increase the rate of diversion of elderly

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  1  persons in need of long-term care to noninstitutional

  2  alternatives; to increase coordination, evaluation, and

  3  planning for the state's long-term-care system; to expand

  4  successful pilot programs; and to establish a nursing facility

  5  preadmission screening program.

  6         Section 3.  (1)  Prior to December 1, 2002, the Agency

  7  for Health Care Administration in consultation with the

  8  Department of Elderly Affairs shall submit to the Governor,

  9  the President of the Senate, and the Speaker of the House of

10  Representatives a plan to reduce the number of

11  nursing-home-bed days purchased by the state Medicaid program

12  and to replace such nursing home care with care provided in

13  less costly alternative settings.

14         (2)  The plan must include specific goals for reducing

15  Medicaid-funded bed days and recommend specific statutory and

16  operational changes necessary to achieve such reduction.

17         (3)  The plan must include an evaluation of the

18  cost-effectiveness and the relative strengths and weaknesses

19  of programs that serve as alternatives to nursing homes.

20         Section 4.  Section 408.034, Florida Statutes, is

21  amended to read:

22         408.034  Duties and responsibilities of agency;

23  rules.--

24         (1)  The agency is designated as the single state

25  agency to issue, revoke, or deny certificates of need and to

26  issue, revoke, or deny exemptions from certificate-of-need

27  review in accordance with the district plans and present and

28  future federal and state statutes.  The agency is designated

29  as the state health planning agency for purposes of federal

30  law.

31  

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  1         (2)  In the exercise of its authority to issue licenses

  2  to health care facilities and health service providers, as

  3  provided under chapters 393, 395, and parts II and VI of

  4  chapter 400, the agency may not issue a license to any health

  5  care facility, health service provider, hospice, or part of a

  6  health care facility which fails to receive a certificate of

  7  need or an exemption for the licensed facility or service.

  8         (3)  The agency shall establish, by rule, uniform need

  9  methodologies for health services and health facilities. In

10  developing uniform need methodologies, the agency shall, at a

11  minimum, consider the demographic characteristics of the

12  population, the health status of the population, service use

13  patterns, standards and trends, geographic accessibility, and

14  market economics.

15         (4)  Prior to determining that there is a need for

16  additional community nursing-facility beds in any area of the

17  state, the agency shall determine that the need cannot be met

18  through the provision, enhancement, or expansion of home and

19  community-based services. In determining such need, the agency

20  shall examine nursing-home-placement patterns and demographic

21  patterns of persons entering nursing homes and the

22  availability of and effectiveness of existing home-based and

23  community-based service delivery systems at meeting the

24  long-term-care needs of the population. The agency shall

25  recommend to the Office of Long-Term-Care Policy changes that

26  could be made to existing home-based and community-based

27  delivery systems to lessen the need for additional

28  nursing-facility beds.

29         (5)(4)  The agency shall establish by rule a

30  nursing-home-bed-need methodology that reduces the community

31  nursing home bed need for the areas of the state where the

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  1  agency establishes pilot community diversion programs through

  2  the Title XIX aging waiver program.

  3         (6)(5)  The agency may adopt rules necessary to

  4  implement ss. 408.031-408.045.

  5         Section 5.  Paragraph (f) of subsection (3) of section

  6  409.912, Florida Statutes, is amended, and present subsections

  7  (13) through (39) of that section are redesignated as

  8  subsections (14) through (40), respectively, and a new

  9  subsection (13) is added to that section, to read:

10         409.912  Cost-effective purchasing of health care.--The

11  agency shall purchase goods and services for Medicaid

12  recipients in the most cost-effective manner consistent with

13  the delivery of quality medical care.  The agency shall

14  maximize the use of prepaid per capita and prepaid aggregate

15  fixed-sum basis services when appropriate and other

16  alternative service delivery and reimbursement methodologies,

17  including competitive bidding pursuant to s. 287.057, designed

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

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

20  minimize the exposure of recipients to the need for acute

21  inpatient, custodial, and other institutional care and the

22  inappropriate or unnecessary use of high-cost services. The

23  agency may establish prior authorization requirements for

24  certain populations of Medicaid beneficiaries, certain drug

25  classes, or particular drugs to prevent fraud, abuse, overuse,

26  and possible dangerous drug interactions. The Pharmaceutical

27  and Therapeutics Committee shall make recommendations to the

28  agency on drugs for which prior authorization is required. The

29  agency shall inform the Pharmaceutical and Therapeutics

30  Committee of its decisions regarding drugs subject to prior

31  authorization.

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  1         (3)  The agency may contract with:

  2         (f)  An entity that provides in-home physician services

  3  to test the cost effectiveness of enhanced home-based medical

  4  care to Medicaid recipients with degenerative neurological

  5  diseases and other diseases or disabling conditions associated

  6  with high costs to Medicaid. The program shall be designed to

  7  serve very disabled persons and to reduce Medicaid reimbursed

  8  costs for inpatient, outpatient, and emergency department

  9  services. The agency shall contract with vendors on a

10  risk-sharing basis. in Pasco County or Pinellas County that

11  provides in-home physician services to Medicaid recipients

12  with degenerative neurological diseases in order to test the

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

14  entity providing the services shall be reimbursed on a

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

16  Medicare reimbursement rates. The agency may apply for waivers

17  of federal regulations necessary to implement such program.

18  This paragraph shall be repealed on July 1, 2002.

19         (13)(a)  The agency shall operate the Comprehensive

20  Assessment and Review (CARES) nursing facility preadmission

21  screening program to ensure that Medicaid payment for nursing

22  facility care is made only for individuals whose conditions

23  require such care and to ensure that long-term-care services

24  are provided in the setting most appropriate to the needs of

25  the person and in the most economical manner possible. The

26  CARES program shall also ensure that individuals participating

27  in Medicaid home and community-based waiver programs meet

28  criteria for those programs, consistent with approved federal

29  waivers.

30  

31  

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  1         (b)  The agency shall operate the CARES program through

  2  an interagency agreement with the Department of Elderly

  3  Affairs.

  4         (c)  Prior to making payment for nursing facility

  5  services for a Medicaid recipient, the agency must verify that

  6  the nursing facility preadmission screening program has

  7  determined that the individual requires nursing facility care

  8  and that the individual cannot be safely served in

  9  community-based programs. The nursing facility preadmission

10  screening program shall refer a Medicaid recipient to a

11  community-based program if the individual could be safely

12  served at a lower cost and the recipient chooses to

13  participate in such program.

14         (d)  By January 1 of each year, the agency shall submit

15  a report to the Legislature and the Office of Long-Term-Care

16  Policy describing the operations of the CARES program. The

17  report must describe:

18         1.  Rate of diversion to community alternative

19  programs;

20         2.  CARES program staffing needs to achieve additional

21  diversions;

22         3.  Reasons the program is unable to place individuals

23  in less restrictive settings when such individuals desired

24  such services and could have been served in such settings;

25         4.  Barriers to appropriate placement, including

26  barriers due to policies or operations of other agencies or

27  state-funded programs; and

28         5.  Statutory changes necessary to ensure that

29  individuals in need of long-term-care services receive care in

30  the least-restrictive environment.

31  

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  1         Section 6.  Section 430.041, Florida Statutes, is

  2  created to read:

  3         430.041  Office of Long-Term-Care Policy.--

  4         (1)  There is established in the Department of Elderly

  5  Affairs the Office of Long-Term-Care Policy to evaluate the

  6  state's long-term-care service delivery system and make

  7  recommendations to increase the availability and the use of

  8  noninstitutional settings to provide care to the elderly and

  9  ensure coordination among the agencies responsible for the

10  long-term-care continuum.

11         (2)  The purpose of the Office of Long-Term-Care Policy

12  is to:

13         (a)  Ensure close communication and coordination among

14  state agencies involved in developing and administering a more

15  efficient and coordinated long-term-care service delivery

16  system in this state;

17         (b)  Identify duplication and unnecessary service

18  provision in the long-term-care system and make

19  recommendations to decrease inappropriate service provision;

20         (c)  Review current programs providing long-term-care

21  services to determine whether the programs are cost effective,

22  of high quality, and operating efficiently and make

23  recommendations to increase consistency and effectiveness in

24  the state's long-term-care programs;

25         (d)  Develop strategies for promoting and implementing

26  cost-effective home and community-based services as an

27  alternative to institutional care which coordinate and

28  integrate the continuum of care needs of the elderly; and

29         (e)  Assist the Office of Long-Term-Care Policy

30  Advisory Council as necessary to help implement this section.

31  

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  1         (3)  The Director of the Office of Long-Term-Care

  2  Policy shall be appointed by, and serve at the pleasure of,

  3  the Governor. The director shall report to, and be under the

  4  general supervision of, the Secretary of Elderly Affairs and

  5  shall not be subject to supervision by any other employee of

  6  the department.

  7         (4)  The Office of Long-Term-Care Policy shall have an

  8  advisory council, whose chair shall be the Director of the

  9  Office of Long-Term-Care Policy. The purposes of the advisory

10  council are to provide assistance and direction to the office

11  and to ensure that the appropriate state agencies are properly

12  implementing recommendations from the office.

13         (a)  The advisory council shall consist of:

14         1.  A member of the Senate, appointed by the President

15  of the Senate;

16         2.  A member of the House of Representatives, appointed

17  by the Speaker of the House of Representatives;

18         3.  The Director of the Office of Long-Term-Care

19  Policy;

20         4.  The Secretary of Health Care Administration;

21         5.  The Secretary of Elderly Affairs;

22         6.  The Secretary of Children and Family Services;

23         7.  The Secretary of Health;

24         8.  The Executive Director of the Department of

25  Veterans' Affairs;

26         9.  A representative of the Florida Association of Area

27  Agencies on Aging, appointed by the Governor;

28         10.  A representative of the Florida Association of

29  Aging Service Providers, appointed by the Governor;

30  

31  

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  1         11.  Three people possessing broad knowledge and

  2  experience in the delivery of long-term-care services,

  3  appointed by the Governor; and

  4         12.  Two representatives of people using long-term-care

  5  services, appointed by the Governor from groups representing

  6  elderly persons.

  7         (b)  Members shall serve without compensation, but are

  8  entitled to receive reimbursement for travel and per diem as

  9  provided in s. 112.061.

10         (c)  The advisory council shall meet at the call of its

11  chair or at the request of a majority of its members. During

12  its first year of existence, the advisory council shall meet

13  at least monthly.

14         (d)  Members of the advisory council appointed by the

15  Governor shall serve at the pleasure of the Governor and shall

16  be appointed to 4-year staggered terms in accordance with s.

17  20.052.

18         (5)(a)  The Department of Elderly Affairs shall provide

19  administrative support and services to the Office of

20  Long-Term-Care Policy.

21         (b)  The office shall call upon appropriate agencies of

22  state government, including the centers on aging in the State

23  University System, for assistance needed in discharging its

24  duties.

25         (c)  Each state agency represented on the Office of

26  Long-Term-Care Policy Advisory Council shall make at least one

27  employee available to work with the Office of Long-Term-Care

28  Policy. All state agencies and universities shall assist the

29  office in carrying out its responsibilities prescribed by this

30  section.

31  

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  1         (d)  Each state agency shall pay from its own funds any

  2  expenses related to its support of the Office of

  3  Long-Term-Care Policy and its participation on the advisory

  4  council. The Department of Elderly Affairs shall be

  5  responsible for expenses related to participation on the

  6  advisory council by members appointed by the Governor.

  7         (6)(a)  By December 1, 2002, the office shall submit to

  8  the advisory council a preliminary report of its findings and

  9  recommendations on improving the long-term-care continuum in

10  this state. The report must contain recommendations and

11  implementation proposals for policy changes, as well as

12  legislative and funding recommendations that will make the

13  system more effective and efficient. The report shall contain

14  a specific plan for accomplishing the recommendations and

15  proposals. Thereafter, the office shall revise and update the

16  report annually and resubmit it to the advisory council for

17  review and comments by November 1 of each year.

18         (b)  The advisory council shall review and recommend

19  any suggested changes to the preliminary report, and each

20  subsequent annual update of the report, within 30 days after

21  the receipt of the preliminary report. Suggested revisions,

22  additions, or deletions shall be made to the Director of the

23  Office of Long-Term-Care Policy.

24         (c)  The office shall submit its final report, and each

25  subsequent annual update of the report, to the Governor and

26  the Legislature within 30 days after the receipt of any

27  revisions, additions, or deletions suggested by the advisory

28  council, or after the time such comments are due to the

29  office.

30         Section 7.  Section 430.7031, Florida Statutes, is

31  created to read:

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  1         430.7031  Nursing home transition program.--The

  2  department and the Agency for Health Care Administration:

  3         (1)  Shall implement a system of care designed to

  4  assist individuals residing in nursing homes to regain

  5  independence and to move to less-costly settings.

  6         (2)  Shall collaboratively work to identify long-stay

  7  nursing home residents who are able to move to community

  8  placements, and to provide case management and supportive

  9  services to such individuals while they are in nursing homes

10  to assist such individuals in moving to less-expensive and

11  less-restrictive settings.

12         (3)  Shall modify existing service delivery systems or

13  develop new service delivery systems to economically and

14  efficiently meet such individuals' care needs.

15         (4)  Shall offer such individuals priority placement

16  and services in all home-based and community-based care

17  programs, and shall ensure that funds are available to provide

18  services to individuals to whom services are offered.

19         (5)  May seek federal waivers necessary to administer

20  this section.

21         Section 8.  Subsection (4) of section 409.908, Florida

22  Statutes, is amended to read:

23         409.908  Reimbursement of Medicaid providers.--Subject

24  to specific appropriations, the agency shall reimburse

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

26  according to methodologies set forth in the rules of the

27  agency and in policy manuals and handbooks incorporated by

28  reference therein.  These methodologies may include fee

29  schedules, reimbursement methods based on cost reporting,

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

31  and other mechanisms the agency considers efficient and

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  1  effective for purchasing services or goods on behalf of

  2  recipients.  Payment for Medicaid compensable services made on

  3  behalf of Medicaid eligible persons is subject to the

  4  availability of moneys and any limitations or directions

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

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

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

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

  9  making any other adjustments necessary to comply with the

10  availability of moneys and any limitations or directions

11  provided for in the General Appropriations Act, provided the

12  adjustment is consistent with legislative intent.

13         (4)  Subject to any limitations or directions provided

14  for in the General Appropriations Act, alternative health

15  plans, health maintenance organizations, and prepaid health

16  plans shall be reimbursed a fixed, prepaid amount negotiated,

17  or competitively bid pursuant to s. 287.057, by the agency and

18  prospectively paid to the provider monthly for each Medicaid

19  recipient enrolled.  The amount may not exceed the average

20  amount the agency determines it would have paid, based on

21  claims experience, for recipients in the same or similar

22  category of eligibility.  The agency shall calculate

23  capitation rates on a regional basis and, beginning September

24  1, 1995, shall include age-band differentials in such

25  calculations. Effective July 1, 2001, the cost of exempting

26  statutory teaching hospitals, specialty hospitals, and

27  community hospital education program hospitals from

28  reimbursement ceilings and the cost of special Medicaid

29  payments shall not be included in premiums paid to health

30  maintenance organizations or prepaid health care plans. Each

31  rate semester, the agency shall calculate and publish a

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  1  Medicaid hospital rate schedule that does not reflect either

  2  special Medicaid payments or the elimination of rate

  3  reimbursement ceilings, to be used by hospitals and Medicaid

  4  health maintenance organizations, in order to determine the

  5  Medicaid rate referred to in ss. 409.912(17) 409.912(16),

  6  409.9128(5), and 641.513(6).

  7         Section 9.  Section 430.708, Florida Statutes, is

  8  amended to read:

  9         430.708  Certificate of need.--To ensure that Medicaid

10  community diversion pilot projects result in a reduction in

11  the projected average monthly nursing home caseload, the

12  agency shall, in accordance with the provisions of s.

13  408.034(5) s. 408.034(4):

14         (1)  Reduce the projected nursing home bed need in each

15  certificate-of-need batching cycle in the community diversion

16  pilot project areas.

17         (2)  Reduce the conditions imposed on existing nursing

18  homes or those to be constructed, in accordance with the

19  number of projected community diversion slots.

20         (3)  Adopt rules to reduce the number of beds in

21  Medicaid-participating nursing homes eligible for Medicaid,

22  through a Medicaid-selective contracting process or some other

23  appropriate method.

24         (4)  Determine the feasibility of increasing the

25  nursing home occupancy threshold used in determining nursing

26  home bed needs under the certificate-of-need process.

27         Section 10.  Subsection (4) of section 641.386, Florida

28  Statutes, is amended to read:

29         641.386  Agent licensing and appointment required;

30  exceptions.--

31  

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  1         (4)  All agents and health maintenance organizations

  2  shall comply with and be subject to the applicable provisions

  3  of ss. 641.309 and 409.912(19) 409.912(18), and all companies

  4  and entities appointing agents shall comply with s. 626.451,

  5  when marketing for any health maintenance organization

  6  licensed pursuant to this part, including those organizations

  7  under contract with the Agency for Health Care Administration

  8  to provide health care services to Medicaid recipients or any

  9  private entity providing health care services to Medicaid

10  recipients pursuant to a prepaid health plan contract with the

11  Agency for Health Care Administration.

12         Section 11.  Subsection (4) of section 400.0069,

13  Florida Statutes, is amended to read:

14         400.0069  Local long-term care ombudsman councils;

15  duties; membership.--

16         (4)  Each local ombudsman council shall be composed of

17  no less than 15 members and no more than 40 30 members from

18  the local planning and service area, to include the following:

19  one medical or osteopathic physician whose practice includes

20  or has included a substantial number of geriatric patients and

21  who may have limited practice in a long-term care facility;

22  one registered nurse who has geriatric experience, if

23  possible; one licensed pharmacist; one registered dietitian;

24  at least six nursing home residents or representative consumer

25  advocates for nursing home residents; at least three residents

26  of assisted living facilities or adult family-care homes or

27  three representative consumer advocates for long-term care

28  facility residents; one attorney; and one professional social

29  worker.  In no case shall the medical director of a long-term

30  care facility or an employee of the Agency for Health Care

31  Administration, the Department of Children and Family

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  1  Services, or the Department of Elderly Affairs serve as a

  2  member or as an ex officio member of a council.  Each member

  3  of the council shall certify that neither the council member

  4  nor any member of the council member's immediate family has

  5  any conflict of interest pursuant to subsection (10).  Local

  6  ombudsman councils are encouraged to recruit council members

  7  who are 60 years of age or older.

  8         Section 12.  Section 400.0089, Florida Statutes, is

  9  amended to read:

10         400.0089  Agency reports.--The State Long-Term Care

11  Ombudsman Council, shall, in cooperation with the Department

12  of Elderly Affairs, maintain a statewide uniform reporting

13  system to collect and analyze data relating to complaints and

14  conditions in long-term care facilities and to residents, for

15  the purpose of identifying and resolving significant problems.

16  The council shall submit such data as part of its annual

17  report required pursuant to s. 400.0067(2)(g) to the Agency

18  for Health Care Administration, the Department of Children and

19  Family Services, the Florida Statewide Advocacy Council, the

20  Advocacy Center for Persons with Disabilities, the

21  Commissioner for the United States Administration on Aging,

22  the National Ombudsman Resource Center, and any other state or

23  federal entities that the ombudsman determines appropriate.

24  The State Long-Term Care Ombudsman Council shall publish

25  quarterly and make readily available information pertaining to

26  the number and types of complaints received by the long-term

27  care ombudsman program.

28         Section 13.  Section 400.0091, Florida Statutes, is

29  amended to read:

30         400.0091  Training.--The ombudsman shall provide

31  appropriate training to all employees of the Office of State

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  1  Long-Term Care Ombudsman and to the state and local long-term

  2  care ombudsman councils, including all unpaid volunteers. All

  3  volunteers and appropriate employees of the Office of the

  4  State Long-Term Care Ombudsman must be given a minimum of 20

  5  hours of training upon employment or enrollment as a volunteer

  6  and 10 hours of continuing education annually thereafter.

  7  Training must cover, at a minimum, guardianships and powers of

  8  attorney, medication administration, care and medication of

  9  residents with dementia and Alzheimer's disease, accounting

10  for residents' funds, discharge rights and responsibilities,

11  and cultural sensitivity. No employee, officer, or

12  representative of the office or of the state or local

13  long-term care ombudsman councils, other than the ombudsman,

14  may carry out any authorized ombudsman duty or responsibility

15  unless the person has received the training required by this

16  section and has been approved by the ombudsman as qualified to

17  carry out ombudsman activities on behalf of the office or the

18  state or local long-term care ombudsman councils.

19         Section 14.  Paragraph (d) of subsection (5) of section

20  400.179, Florida Statutes, is amended to read:

21         400.179  Sale or transfer of ownership of a nursing

22  facility; liability for Medicaid underpayments and

23  overpayments.--

24         (5)  Because any transfer of a nursing facility may

25  expose the fact that Medicaid may have underpaid or overpaid

26  the transferor, and because in most instances, any such

27  underpayment or overpayment can only be determined following a

28  formal field audit, the liabilities for any such underpayments

29  or overpayments shall be as follows:

30         (d)  Where the transfer involves a facility that has

31  been leased by the transferor:

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  1         1.  The transferee shall, as a condition to being

  2  issued a license by the agency, acquire, maintain, and provide

  3  proof to the agency of a bond with a term of 30 months,

  4  renewable annually, in an amount not less than the total of 3

  5  months Medicaid payments to the facility computed on the basis

  6  of the preceding 12-month average Medicaid payments to the

  7  facility.

  8         2.  The leasehold operator may meet the bond

  9  requirement through other arrangements acceptable to the

10  department.

11         3.  All existing nursing facility licensees, operating

12  the facility as a leasehold, shall acquire, maintain, and

13  provide proof to the agency of the 30-month bond required in

14  subparagraph 1., above, on and after July 1, 1993, for each

15  license renewal.

16         4.  It shall be the responsibility of all nursing

17  facility operators, operating the facility as a leasehold, to

18  renew the 30-month bond and to provide proof of such renewal

19  to the agency annually at the time of application for license

20  renewal.

21         5.  Any failure of the nursing facility operator to

22  acquire, maintain, renew annually, or provide proof to the

23  agency shall be grounds for the agency to deny, cancel,

24  revoke, or suspend the facility license to operate such

25  facility and to take any further action, including, but not

26  limited to, enjoining the facility, asserting a moratorium, or

27  applying for a receiver, deemed necessary to ensure compliance

28  with this section and to safeguard and protect the health,

29  safety, and welfare of the facility's residents. A lease

30  agreement required as a condition of bond financing or

31  refinancing under s. 154.213 by a health facilities authority

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  1  or required under s. 159.30 by a county or municipality is not

  2  a leasehold for purposes of this paragraph and is not subject

  3  to the bond requirement of this paragraph.

  4         Section 15.  This act shall take effect July 1, 2002.

  5  

  6          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  7                     CS for Senate Bill 1838

  8                                 

  9  Allows the Agency for Health Care Administration to contract
    with an entity, on a risk sharing basis, to provide in-home
10  physician services for the purpose of testing the cost
    effectiveness of enhanced home-based medical care to Medicaid
11  recipients with degenerative neurological diseases and other
    diseases or disabling conditions associated with high costs to
12  the Medicaid program.

13  Expands the membership of the Office of Long-Term Care Policy
    Advisory Council.
14  
    Increases the maximum number of State Long-Term Care Ombudsman
15  Council members from 30 to 40.

16  Requires the State Long-Term Care Ombudsman Council to publish
    quarterly reports regarding the number and types of complaints
17  received by the long-term care ombudsman program.

18  Requires volunteers and appropriate employees of the Office of
    the State Long-Term Care Ombudsman to be given a minimum of 20
19  hours of training upon employment or enrollment as a volunteer
    and a minimum of 10 hours of training annually.
20  
    Specifies that a lease agreement required as a condition of
21  bond financing or refinancing under s. 154.213, F.S., or s.
    159.30, F.S., is not subject to the bond requirements of s.
22  400.179(5)(d), F.S.

23  

24  

25  

26  

27  

28  

29  

30  

31  

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