House Bill hb0703e1

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                                           HB 703, First Engrossed



  1                      A bill to be entitled

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

  3         20.41, F.S.; providing for administration of

  4         the State Long-Term Care Ombudsman Council by

  5         the Department of Elderly Affairs; amending s.

  6         400.0063, F.S.; locating the Office of the

  7         State Long-Term Care Ombudsman in the

  8         department; providing for appointment of the

  9         ombudsman by the Secretary of Elderly Affairs;

10         amending s. 400.0065, F.S.; requiring the

11         secretary's approval of staff for the local

12         ombudsman councils; deleting requirement that

13         the ombudsman prepare an annual legislative

14         budget request; revising rulemaking authority;

15         amending s. 400.0067, F.S.; revising duties of

16         the State Long-Term Care Ombudsman Council;

17         providing duties of the department and

18         secretary; amending s. 400.0071, F.S.; revising

19         procedures relating to complaints; amending s.

20         400.0087, F.S.; revising provisions relating to

21         agency oversight; amending s. 400.0089, F.S.;

22         revising reporting responsibilities; repealing

23         s. 400.0066(2) and (3), F.S., relating to

24         administrative support for the ombudsman

25         program and interference with ombudsman staff

26         or volunteers; creating s. 409.221, F.S.;

27         creating the "Florida Consumer-Directed Care

28         Act"; providing legislative findings; providing

29         legislative intent; establishing the

30         consumer-directed care program; providing for

31         consumer selection of certain long-term care


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                                           HB 703, First Engrossed



  1         services and providers; providing for

  2         interagency agreements between the Agency for

  3         Health Care Administration and the Department

  4         of Elderly Affairs, the Department of Health,

  5         and the Department of Children and Family

  6         Services; providing for program eligibility and

  7         enrollment; providing definitions; providing

  8         for consumer budget allowances and purchasing

  9         guidelines; specifying authorized services;

10         providing roles and responsibilities of

11         consumers, the agency and departments, and

12         fiduciary intermediaries; providing background

13         screening requirements for persons who render

14         care under the program; providing rulemaking

15         authority of the agency and departments;

16         requiring the agency to apply for federal

17         waivers as necessary; requiring ongoing program

18         reviews and annual reports; requiring the

19         Agency for Health Care Administration and the

20         Department of Elderly Affairs to submit a plan

21         to the Governor and Legislature for reducing

22         nursing home bed days funded under the Medicaid

23         program; amending s. 400.179, F.S.; providing

24         an exception from a bond requirement for

25         certain mortgage arrangements; amending s.

26         408.034, F.S.; providing additional

27         requirements for the Agency for Health Care

28         Administration in determining the need for

29         additional nursing facility beds; amending s.

30         409.912, F.S.; requiring the Agency for Health

31         Care Administration to establish a nursing


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                                           HB 703, First Engrossed



  1         facility preadmission screening program;

  2         authorizing the agency to operate the program

  3         by contract; requiring an annual report to the

  4         Legislature and the Office of Long-Term Care

  5         Policy; amending s. 430.03, F.S.; revising the

  6         purposes of the Department of Elderly Affairs

  7         with respect to developing policy, making

  8         recommendations, coordinating activities, and

  9         overseeing research; amending s. 430.04, F.S.;

10         revising the duties of the Department of

11         Elderly Affairs with respect to developing

12         programs and policies related to aging;

13         creating s. 430.041, F.S.; establishing the

14         Office of Long-Term Care Policy within the

15         Department of Elderly Affairs; requiring the

16         office to develop a State Long-Term Care Plan;

17         requiring the office to make recommendations

18         for coordinating the services provided by state

19         agencies; providing for appointment of the

20         director of the Office of Long-Term Care

21         Policy; providing for the appointment of an

22         advisory board to the Office of Long-Term Care

23         Policy; specifying membership in the advisory

24         board; providing for reimbursement of per diem

25         and 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 the Agency for Health Care

29         Administration and the Department of Elderly

30         Affairs to provide staff and support services

31         for the Office of Long-Term Care Policy;


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                                           HB 703, First Engrossed



  1         creating s. 430.7031, F.S.; requiring the

  2         Department of Elderly Affairs and the Agency

  3         for Health Care Administration to implement a

  4         nursing home transition program; providing

  5         requirements for the program; amending ss.

  6         409.908, 430.708, and 641.386, F.S., relating

  7         to reimbursement of Medicaid providers,

  8         certificates of need, and agent licensing and

  9         appointment; conforming cross references to

10         changes made by the act; amending s. 627.9408,

11         F.S.; authorizing the department to adopt by

12         rule certain provisions of the Long-Term Care

13         Insurance Model Regulation, as adopted by the

14         National Association of Insurance

15         Commissioners; providing an effective date.

16

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

18

19         Section 1.  Subsection (4) of section 20.41, Florida

20  Statutes, is amended to read:

21         20.41  Department of Elderly Affairs.--There is created

22  a Department of Elderly Affairs.

23         (4)  The department shall administer administratively

24  house the State Long-Term Care Ombudsman Council, created by

25  s. 400.0067, and the local long-term care ombudsman councils,

26  created by s. 400.0069 and shall, as required by s. 712 of the

27  federal Older Americans Act of 1965, ensure that both the

28  state and local long-term care ombudsman councils operate in

29  compliance with the Older Americans Act.  The councils in

30  performance of their duties shall not be subject to control,

31  supervision, or direction by the department.


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                                           HB 703, First Engrossed



  1         Section 2.  Subsection (1) and paragraph (b) of

  2  subsection (2) of section 400.0063, Florida Statutes, are

  3  amended to read:

  4         400.0063  Establishment of Office of State Long-Term

  5  Care Ombudsman; designation of ombudsman and legal advocate.--

  6         (1)  There is created an Office of State Long-Term Care

  7  Ombudsman, which shall be located for administrative purposes

  8  in the Department of Elderly Affairs.

  9         (2)

10         (b)  The State Long-Term Care Ombudsman shall be

11  appointed by and shall serve at the pleasure of the Secretary

12  of Elderly Affairs State Long-Term Care Ombudsman Council.  No

13  person who has a conflict of interest, or has an immediate

14  family member who has a conflict of interest, may be involved

15  in the designation of the ombudsman.

16         Section 3.  Paragraphs (c) and (f) of subsection (2)

17  and subsection (3) of section 400.0065, Florida Statutes, are

18  amended to read:

19         400.0065  State Long-Term Care Ombudsman; duties and

20  responsibilities; conflict of interest.--

21         (2)  The State Long-Term Care Ombudsman shall have the

22  duty and authority to:

23         (c)  Within the limits of federal and state funding

24  authorized and appropriated, employ such personnel, including

25  staff for local ombudsman councils, as are necessary to

26  perform adequately the functions of the office and provide or

27  contract for legal services to assist the state and local

28  ombudsman councils in the performance of their duties.  Staff

29  positions for each local ombudsman council may be established

30  as career service positions, and shall be filled by the

31


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                                           HB 703, First Engrossed



  1  ombudsman after approval by the secretary consultation with

  2  the respective local ombudsman council.

  3         (f)  Annually prepare a budget request that shall be

  4  submitted to the Governor by the department for transmittal to

  5  the Legislature.

  6         (3)  The State Long-Term Care Ombudsman shall not:

  7         (a)  Have a direct involvement in the licensing or

  8  certification of, or an ownership or investment interest in, a

  9  long-term care facility or a provider of a long-term care

10  service.

11         (b)  Be employed by, or participate in the management

12  of, a long-term care facility.

13         (c)  Receive, or have a right to receive, directly or

14  indirectly, remuneration, in cash or in kind, under a

15  compensation agreement with the owner or operator of a

16  long-term care facility.

17

18  The Department of Elderly Affairs, in consultation with the

19  ombudsman, shall adopt rules to establish procedures to

20  identify and eliminate conflicts of interest as described in

21  this subsection.

22         Section 4.  Paragraphs (c), (d), (f), and (g) of

23  subsection (2) and paragraph (b) of subsection (3) of section

24  400.0067, Florida Statutes, are amended to read:

25         400.0067  Establishment of State Long-Term Care

26  Ombudsman Council; duties; membership.--

27         (2)  The State Long-Term Care Ombudsman Council shall:

28         (c)  Assist the ombudsman to discover, investigate, and

29  determine the existence of abuse or neglect in any long-term

30  care facility. and to develop procedures, in consultation with

31  The Department of Elderly Affairs shall develop procedures,


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                                           HB 703, First Engrossed



  1  relating to such investigations. Investigations may consist,

  2  in part, of one or more onsite administrative inspections.

  3         (d)  Assist the ombudsman in eliciting, receiving,

  4  responding to, and resolving complaints made by or on behalf

  5  of long-term care facility residents and in developing

  6  procedures, in consultation with the Department of Elderly

  7  Affairs, relating to the receipt and resolution of such

  8  complaints. The secretary shall approve all such procedures.

  9         (f)  Be authorized to call upon appropriate agencies of

10  state government for such professional assistance as may be

11  needed in the discharge of its duties, including assistance

12  from the adult protective services program of the Department

13  of Children and Family Services.

14         (f)(g)  Prepare an annual report describing the

15  activities carried out by the ombudsman and the State

16  Long-Term Care Ombudsman Council in the year for which the

17  report is prepared.  The State Long-Term Care Ombudsman

18  Council shall submit the report to the Secretary of Elderly

19  Affairs. The secretary shall in turn submit the report to the

20  Commissioner of the United States Administration on Aging, the

21  Governor, the President of the Senate, the Speaker of the

22  House of Representatives, the minority leaders of the House

23  and Senate, the chairpersons of appropriate House and Senate

24  committees, the Secretary of Secretaries of Elderly Affairs

25  and Children and Family Services, and the Secretary of Health

26  Care Administration.  The report shall be submitted by the

27  Secretary of Elderly Affairs at least 30 days before the

28  convening of the regular session of the Legislature and shall,

29  at a minimum:

30         1.  Contain and analyze data collected concerning

31  complaints about and conditions in long-term care facilities.


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                                           HB 703, First Engrossed



  1         2.  Evaluate the problems experienced by residents of

  2  long-term care facilities.

  3         3.  Contain recommendations for improving the quality

  4  of life of the residents and for protecting the health,

  5  safety, welfare, and rights of the residents.

  6         4.  Analyze the success of the ombudsman program during

  7  the preceding year and identify the barriers that prevent the

  8  optimal operation of the program.  The report of the program's

  9  successes shall also address the relationship between the

10  state long-term care ombudsman program, the Department of

11  Elderly Affairs, the Agency for Health Care Administration,

12  and the Department of Children and Family Services, and an

13  assessment of how successfully the state long-term care

14  ombudsman program has carried out its responsibilities under

15  the Older Americans Act.

16         5.  Provide policy and regulatory and legislative

17  recommendations to solve identified problems; resolve

18  residents' complaints; improve the quality of care and life of

19  the residents; protect the health, safety, welfare, and rights

20  of the residents; and remove the barriers to the optimal

21  operation of the state long-term care ombudsman program.

22         6.  Contain recommendations from the local ombudsman

23  councils regarding program functions and activities.

24         7.  Include a report on the activities of the legal

25  advocate and other legal advocates acting on behalf of the

26  local and state councils.

27         (3)

28         (b)1.  The ombudsman, in consultation with the

29  secretary and the state ombudsman council, shall submit to the

30  Governor a list of at least eight names of persons who are not

31  serving on a local council.


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                                           HB 703, First Engrossed



  1         2.  The Governor shall appoint three members chosen

  2  from the list, at least one of whom must be over 60 years of

  3  age.

  4         3.  If the Governor's appointments are not made within

  5  60 days after the ombudsman submits the list, the ombudsman,

  6  in consultation with the secretary State Long-Term Care

  7  Ombudsman Council, shall appoint three members, one of whom

  8  must be over 60 years of age.

  9         Section 5.  Subsection (1) of section 400.0071, Florida

10  Statutes, is amended to read:

11         400.0071  Complaint procedures.--

12         (1)  The state ombudsman council shall recommend to the

13  ombudsman and the secretary establish state and local

14  procedures for receiving complaints against a nursing home or

15  long-term care facility or its employee. The procedures shall

16  be implemented after the approval of the ombudsman and the

17  secretary.

18         Section 6.  Subsections (1) and (2) of section

19  400.0087, Florida Statutes, are amended to read:

20         400.0087  Agency oversight.--

21         (1)  The Department of Elderly Affairs shall monitor

22  the local ombudsman councils responsible for carrying out the

23  duties delegated by s. 400.0069 and federal law.  The

24  department, in consultation with the ombudsman and the State

25  Long-Term Care Ombudsman Council, shall adopt rules to

26  establish the policies and procedures for the monitoring of

27  local ombudsman councils.

28         (2)  The department is responsible for ensuring that

29  the Office of State Long-Term Care Ombudsman prepares its

30  annual report; provides information to public and private

31  agencies, legislators, and others; provides appropriate


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                                           HB 703, First Engrossed



  1  training to representatives of the office or of the state or

  2  local long-term care ombudsman councils; and coordinates

  3  ombudsman services with the Advocacy Center for Persons with

  4  Disabilities and with providers of legal services to residents

  5  of long-term care facilities in compliance with state and

  6  federal laws.

  7         Section 7.  Section 400.0089, Florida Statutes, is

  8  amended to read:

  9         400.0089  Agency reports.--The State Long-Term Care

10  Ombudsman Council, shall, in cooperation with the Department

11  of Elderly Affairs shall, maintain a statewide uniform

12  reporting system to collect and analyze data relating to

13  complaints and conditions in long-term care facilities and to

14  residents, for the purpose of identifying and resolving

15  significant problems. The State Long-Term Care Ombudsman

16  Council shall submit such data as part of its annual report

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

18  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         Section 8.  Subsections (2) and (3) of section

25  400.0066, Florida Statutes, are repealed.

26         Section 9.  Section 409.221, Florida Statutes, is

27  created to read:

28         409.221  Consumer-directed care program.--

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

30  "Florida Consumer-Directed Care Act."

31


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                                           HB 703, First Engrossed



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

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

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

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

  5  services the opportunity to select the services they need and

  6  the providers they want, including family and friends,

  7  enhances their sense of dignity and autonomy. The Legislature

  8  also finds that providing consumers choice and control, as

  9  tested in current research and demonstration projects, has

10  been beneficial and should be developed further and

11  implemented statewide.

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

13  Legislature to nurture the autonomy of those citizens of the

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

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

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

17  give such individuals more choices in and greater control over

18  the purchased long-term care services they receive.

19         (4)  CONSUMER-DIRECTED CARE.--

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

21  Administration shall establish the consumer-directed care

22  program which shall be based on the principles of consumer

23  choice and control. The agency shall implement the program

24  upon federal approval. The agency shall establish interagency

25  cooperative agreements with and shall work with the

26  Departments of Elderly Affairs, Health, and Children and

27  Family Services to implement and administer the program. The

28  program shall allow enrolled persons to choose the providers

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

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

31  within the funds appropriated by the Legislature.


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                                           HB 703, First Engrossed



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

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

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

  4  designate an eligible representative, may choose to

  5  participate in the consumer-directed care program.

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

  7  term:

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

  9  available each month to a consumer to purchase needed

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

11  needs assessment.

12         2.  "Consultant" means an individual who provides

13  technical assistance to consumers in meeting their

14  responsibilities under this section.

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

16  participate in the program, has met the enrollment

17  requirements, and has received an approved budget allowance.

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

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

20  budget allowance, retains the funds, processes employment

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

22  ensure correctness, writes paychecks to providers, and

23  delivers paychecks to the consumer for distribution to

24  providers and caregivers.

25         5.  "Provider" means:

26         a.  A person licensed or otherwise permitted to render

27  services eligible for reimbursement under this program for

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

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

30  is the employer of record.

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                                           HB 703, First Engrossed



  1         6.  "Representative" means an uncompensated individual

  2  designated by the consumer to assist in managing the

  3  consumer's budget allowance and needed services.

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

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

  6  results of their assessed functional needs and the financial

  7  resources of the program. Consumers shall receive the budget

  8  allowance directly from an agency-approved fiscal

  9  intermediary. Each department shall develop purchasing

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

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

12  services.

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

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

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

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

17  are not limited to, the following:

18         1.  Personal care.

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

20  shopping, and transportation.

21         3.  Home modifications and assistive devices which may

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

23  avoid institutional placement.

24         4.  Assistance in taking self-administered medication.

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

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

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

28  400.554.

29         6.  Personal care and support services provided in an

30  assisted living facility.

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                                           HB 703, First Engrossed



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

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

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

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

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

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

  7  are not limited to, the following:

  8         a.  Developing a job description.

  9         b.  Selecting caregivers and submitting information for

10  the background screening as required in s. 435.05.

11         c.  Communicating needs, preferences, and expectations

12  about services being purchased.

13         d.  Providing the fiscal intermediary with all

14  information necessary for provider payments and tax

15  requirements.

16         e.  Ending the employment of an unsatisfactory

17  caregiver.

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

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

20  are not limited to, the following:

21         a.  Communicating needs, preferences, and expectations

22  about services being purchased.

23         b.  Ending the services of an unsatisfactory provider.

24         c.  Providing the fiscal agent with all information

25  necessary for provider payments and tax requirements.

26         (g)  Agency and departments roles and

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

28  responsibilities include, but are not limited to, the

29  following:

30

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                                           HB 703, First Engrossed



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

  2  with the service plan, and providing ongoing assistance with

  3  the service plan.

  4         2.  Offering the services of consultants who shall

  5  provide training, technical assistance, and support to the

  6  consumer.

  7         3.  Completing the background screening for providers.

  8         4.  Approving fiscal intermediaries.

  9         5.  Establishing the minimum qualifications for all

10  caregivers and providers and being the final arbiter of the

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

12         (h)  Fiscal intermediary roles and

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

14  responsibilities include, but are not limited to, the

15  following:

16         1.  Providing recordkeeping services.

17         2.  Retaining the consumer-directed care funds,

18  processing employment and tax information, reviewing records

19  to ensure correctness, writing paychecks to providers, and

20  delivering paychecks to the consumer for distribution.

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

22  who render care under this section shall comply with the

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

24  employment pursuant to s. 435.06.

25         1.  Persons excluded from employment may request an

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

27  Persons not subject to certification or professional licensure

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

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

30  provisions of s. 435.07.

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                                           HB 703, First Engrossed



  1         2.  The agency shall, as allowable, reimburse

  2  consumer-employed caregivers for the cost of conducting

  3  background screening as required by this section.

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

  5  this section:

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

  7  Health, and Children and Family Services are authorized to

  8  adopt and enforce rules.

  9         2.  The agency shall take all necessary action to

10  ensure state compliance with federal regulations. The agency

11  shall apply for any necessary federal waivers or waiver

12  amendments needed to implement the program.

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

14  Departments of Elderly Affairs, Health, and Children and

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

16  assess the implementation of the consumer-directed care

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

18  written report to the Legislature that includes each

19  department's review of the program and contains

20  recommendations for improvements to the program.

21         Section 10.  (1)  Prior to December 1, 2002, the Agency

22  for Health Care Administration in consultation with the

23  Department of Elderly Affairs shall submit to the Governor,

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

25  Representatives a plan to reduce the number of nursing home

26  bed days purchased by the state Medicaid program and to

27  replace such nursing home care with care provided in less

28  costly alternative settings.

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

30  Medicaid-funded bed days and recommend specific statutory and

31  operational changes necessary to achieve such reduction.


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                                           HB 703, First Engrossed



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

  2  cost-effectiveness and the relative strengths and weaknesses

  3  of programs that serve as alternatives to nursing homes.

  4         Section 11.  Paragraph (d) of subsection (5) of section

  5  400.179, Florida Statutes, is amended to read:

  6         400.179  Sale or transfer of ownership of a nursing

  7  facility; liability for Medicaid underpayments and

  8  overpayments.--

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

10  expose the fact that Medicaid may have underpaid or overpaid

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

12  underpayment or overpayment can only be determined following a

13  formal field audit, the liabilities for any such underpayments

14  or overpayments shall be as follows:

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

16  been leased by the transferor:

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

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

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

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

21  months Medicaid payments to the facility computed on the basis

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

23  facility.

24         2.  The leasehold operator may meet the bond

25  requirement through other arrangements acceptable to the

26  department.

27         3.  All existing nursing facility licensees, operating

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

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

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

31  license renewal.


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                                           HB 703, First Engrossed



  1         4.  It shall be the responsibility of all nursing

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

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

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

  5  renewal.

  6         5.  Any failure of the nursing facility operator to

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

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

  9  revoke, or suspend the facility license to operate such

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

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

12  applying for a receiver, deemed necessary to ensure compliance

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

14  safety, and welfare of the facility's residents.

15

16  However, notwithstanding any provision of this section to the

17  contrary, a lease agreement required as a condition of bond

18  financing or refinancing under s. 154.213 by a health

19  facilities authority or under s. 159.30 by a county or

20  municipality is not considered to be a leasehold and,

21  therefore, is not subject to the bond requirements of this

22  paragraph.

23         Section 12.  Section 408.034, Florida Statutes, is

24  amended to read:

25         408.034  Duties and responsibilities of agency;

26  rules.--

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

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

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

30  review in accordance with the district plans and present and

31  future federal and state statutes.  The agency is designated


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                                           HB 703, First Engrossed



  1  as the state health planning agency for purposes of federal

  2  law.

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

  4  to health care facilities and health service providers, as

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

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

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

  8  health care facility which fails to receive a certificate of

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

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

11  methodologies for health services and health facilities. In

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

13  minimum, consider the demographic characteristics of the

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

15  patterns, standards and trends, geographic accessibility, and

16  market economics.

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

18  additional community nursing facility beds in any area of the

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

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

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

22  shall examine nursing home placement patterns and demographic

23  patterns of persons entering nursing homes and the

24  availability of and effectiveness of existing home-based and

25  community-based service delivery systems at meeting the

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

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

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

29  delivery systems to lessen the need for additional nursing

30  facility beds.

31


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                                           HB 703, First Engrossed



  1         (5)(4)  The agency shall establish by rule a

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

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

  4  agency establishes pilot community diversion programs through

  5  the Title XIX aging waiver program.

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

  7  implement ss. 408.031-408.045.

  8         Section 13.  Present subsections (13) through (39) of

  9  section 409.912, Florida Statutes, are renumbered as

10  subsections (14) through (40), respectively, and subsection

11  (13) is added to said section, to read:

12         409.912  Cost-effective purchasing of health care.--The

13  agency shall purchase goods and services for Medicaid

14  recipients in the most cost-effective manner consistent with

15  the delivery of quality medical care.  The agency shall

16  maximize the use of prepaid per capita and prepaid aggregate

17  fixed-sum basis services when appropriate and other

18  alternative service delivery and reimbursement methodologies,

19  including competitive bidding pursuant to s. 287.057, designed

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

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

22  minimize the exposure of recipients to the need for acute

23  inpatient, custodial, and other institutional care and the

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

25  agency may establish prior authorization requirements for

26  certain populations of Medicaid beneficiaries, certain drug

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

28  and possible dangerous drug interactions. The Pharmaceutical

29  and Therapeutics Committee shall make recommendations to the

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

31  agency shall inform the Pharmaceutical and Therapeutics


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                                           HB 703, First Engrossed



  1  Committee of its decisions regarding drugs subject to prior

  2  authorization.

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

  4  Assessment and Review (CARES) nursing facility preadmission

  5  screening program to ensure that Medicaid payment for nursing

  6  facility care is made only for individuals whose conditions

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

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

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

10  CARES program shall also ensure that individuals participating

11  in Medicaid home and community-based waiver programs meet

12  criteria for those programs, consistent with approved federal

13  waivers.

14         (b)  The agency may operate the CARES program using its

15  own staff or may contract with another state agency or other

16  provider. If the agency contracts for the operation of the

17  program, the agency must maintain policy control of all

18  operations of the program, including the criteria applied and

19  forms used, and perform regular monitoring to ensure effective

20  and efficient operation of the program and ensure that the

21  operation of the program is consistent with state and federal

22  law and rules.

23         (c)  The agency shall develop performance standards for

24  the CARES program.

25         (d)  Prior to making payment for nursing facility

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

27  the nursing facility preadmission screening program has

28  determined that the individual requires nursing facility care

29  and that the individual cannot be safely served in

30  community-based programs. The nursing facility preadmission

31  screening program shall refer a Medicaid recipient to a


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                                           HB 703, First Engrossed



  1  community-based program if the individual could be safely

  2  served at a lower cost and the recipient chooses to

  3  participate in such program.

  4         (e)  By January 1 of each year, the agency shall submit

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

  6  Policy describing the operations of the CARES program. The

  7  report must describe:

  8         1.  Rate of diversion to community alternative

  9  programs.

10         2.  CARES program staffing needs to achieve additional

11  diversions.

12         3.  Reasons the program is unable to place individuals

13  in less restrictive settings when such individuals desired

14  such services and could have been served in such settings.

15         4.  Barriers to appropriate placement, including

16  barriers due to policies or operations of other agencies or

17  state-funded programs.

18         5.  Statutory changes necessary to ensure that

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

20  the least restrictive environment.

21         Section 14.  Section 430.03, Florida Statutes, is

22  amended to read:

23         430.03  Purposes.--The purposes of the Department of

24  Elderly Affairs are to:

25         (1)  Serve as the primary state agency responsible for

26  administering human services programs for the elderly and for

27  developing policy recommendations for long-term care.

28         (2)  Combat ageism and create public awareness and

29  understanding of the potentials and needs of elderly persons.

30         (3)  Study and plan for programs and services to meet

31  identified and projected needs and to provide opportunities


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                                           HB 703, First Engrossed



  1  for personal development and achievement of persons aged 60

  2  years and older.

  3         (4)  Advocate quality programs and services for the

  4  state's elderly population and on behalf of the individual

  5  citizen's needs.

  6         (5)  Coordinate interdepartmental policy development

  7  and program planning for all state agencies that provide

  8  services for the elderly population in order to prevent

  9  duplicative efforts, to maximize utilization of resources, and

10  to ensure cooperation, communication, and departmental

11  linkages.

12         (6)  Recommend state and local level organizational

13  models for the planning, coordination, implementation, and

14  evaluation of programs serving the elderly population.

15         (5)(7)  Oversee implementation of federally funded and

16  state-funded programs and services for the state's elderly

17  population.

18         (6)(8)  Recommend legislative budget requests for

19  programs and services for the state's elderly population.

20         (7)(9)  Serve as a state-level information

21  clearinghouse and encourage the development of local-level

22  identifiable points of information and referral regarding all

23  federal, state, and local resources of assistance to elderly

24  citizens.

25         (8)(10)  Assist elderly persons to secure needed

26  services in accordance with personal choice and in a manner

27  that achieves or maintains autonomy and prevents, reduces, or

28  eliminates dependency.

29         (9)(11)  Promote the maintenance and improvement of the

30  physical well-being and mental health of elderly persons.

31


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                                           HB 703, First Engrossed



  1         (10)(12)  Promote opportunities for volunteerism among

  2  the elderly population.

  3         (11)(13)  Promote the prevention of neglect, abuse, or

  4  exploitation of elderly persons unable to protect their own

  5  interests.

  6         (12)(14)  Eliminate and prevent inappropriate

  7  institutionalization of elderly persons by promoting

  8  community-based care, home-based care, or other forms of less

  9  intensive care.

10         (13)(15)  Aid in the support of families and other

11  caregivers of elderly persons.

12         (14)(16)  Promote intergenerational relationships.

13         (17)  Oversee aging research conducted or funded by any

14  state agency to ensure that such activities are coordinated

15  and directed to fulfill the intent and purposes of this act.

16         Section 15.  Section 430.04, Florida Statutes, is

17  amended to read:

18         430.04  Duties and responsibilities of the Department

19  of Elderly Affairs.--The Department of Elderly Affairs shall:

20         (1)  Administer human services and long-term care

21  programs, including programs funded under the federal Older

22  Americans Act of 1965, as amended, and other programs that are

23  assigned to it by law.

24         (2)  Be responsible for ensuring that each area agency

25  on aging operates in a manner to ensure that the elderly of

26  this state receive the best services possible.  The department

27  shall rescind designation of an area agency on aging or take

28  intermediate measures against the agency, including corrective

29  action, unannounced special monitoring, temporary assumption

30  of operation of one or more programs by the department,

31  placement on probationary status, imposing a moratorium on


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                                           HB 703, First Engrossed



  1  agency action, imposing financial penalties for

  2  nonperformance, or other administrative action pursuant to

  3  chapter 120, if the department finds that:

  4         (a)  An intentional or negligent act of the agency has

  5  materially affected the health, welfare, or safety of clients,

  6  or substantially and negatively affected the operation of an

  7  aging services program.

  8         (b)  The agency lacks financial stability sufficient to

  9  meet contractual obligations or that contractual funds have

10  been misappropriated.

11         (c)  The agency has committed multiple or repeated

12  violations of legal and regulatory requirements or department

13  standards.

14         (d)  The agency has failed to continue the provision or

15  expansion of services after the declaration of a state of

16  emergency.

17         (e)  The agency has failed to adhere to the terms of

18  its contract with the department.

19         (f)  The agency has failed to implement and maintain a

20  department-approved client grievance resolution procedure.

21         (3)  Prepare and submit the state plan as required by

22  the United States Administration on Aging. to the Governor,

23  each Cabinet member, the President of the Senate, the Speaker

24  of the House of Representatives, the minority leaders of the

25  House and Senate, and chairpersons of appropriate House and

26  Senate committees a master plan for policies and programs in

27  the state related to aging. The plan must identify and assess

28  the needs of the elderly population in the areas of housing,

29  employment, education and training, medical care, long-term

30  care, preventive care, protective services, social services,

31  mental health, transportation, and long-term care insurance,


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                                           HB 703, First Engrossed



  1  and other areas considered appropriate by the department.  The

  2  plan must assess the needs of particular subgroups of the

  3  population and evaluate the capacity of existing programs,

  4  both public and private and in state and local agencies, to

  5  respond effectively to identified needs.  If the plan

  6  recommends the transfer of any program or service from the

  7  Department of Children and Family Services to another state

  8  department, the plan must also include recommendations that

  9  provide for an independent third-party mechanism, as currently

10  exists in the Florida advocacy councils established in ss.

11  402.165 and 402.166, for protecting the constitutional and

12  human rights of recipients of departmental services. The plan

13  must include policy goals and program strategies designed to

14  respond efficiently to current and projected needs. The plan

15  must also include policy goals and program strategies to

16  promote intergenerational relationships and activities.

17  Public hearings and other appropriate processes shall be

18  utilized by the department to solicit input for the

19  development and updating of the master plan from parties

20  including, but not limited to, the following:

21         (a)  Elderly citizens and their families and

22  caregivers.

23         (b)  Local-level public and private service providers,

24  advocacy organizations, and other organizations relating to

25  the elderly.

26         (c)  Local governments.

27         (d)  All state agencies that provide services to the

28  elderly.

29         (e)  University centers on aging.

30         (f)  Area agency on aging and community care for the

31  elderly lead agencies.


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                                           HB 703, First Engrossed



  1         (4)  Serve as an information clearinghouse at the state

  2  level, and assist local-level information and referral

  3  resources as a repository and means for dissemination of

  4  information regarding all federal, state, and local resources

  5  for assistance to the elderly in the areas of, but not limited

  6  to, health, social welfare, long-term care, protective

  7  services, consumer protection, education and training,

  8  housing, employment, recreation, transportation, insurance,

  9  and retirement.

10         (5)  Recommend guidelines for the development of roles

11  for state agencies that provide services for the aging, review

12  plans of agencies that provide such services, and relay these

13  plans to the Governor, each Cabinet member, the President of

14  the Senate, the Speaker of the House of Representatives, the

15  minority leaders of the House and Senate, and chairpersons of

16  appropriate House and Senate committees.

17         (6)  Recommend to the Governor, each Cabinet member,

18  the President of the Senate, the Speaker of the House of

19  Representatives, the minority leaders of the House and Senate,

20  and chairpersons of appropriate House and Senate committees an

21  organizational framework for the planning, coordination,

22  implementation, and evaluation of programs related to aging,

23  with the purpose of expanding and improving programs and

24  opportunities available to the state's elderly population and

25  enhancing a continuum of long-term care.  This framework must

26  assure that:

27         (a)  Performance objectives are established.

28         (b)  Program reviews are conducted statewide.

29         (c)  Each major program related to aging is reviewed

30  every 3 years.

31


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                                           HB 703, First Engrossed



  1         (d)  Agency budget requests reflect the results and

  2  recommendations of such program reviews.

  3         (e)  Program decisions lead to the distinctive roles

  4  established for state agencies that provide aging services.

  5         (7)  Advise the Governor, each Cabinet member, the

  6  President of the Senate, the Speaker of the House of

  7  Representatives, the minority leaders of the House and Senate,

  8  and the chairpersons of appropriate House and Senate

  9  committees regarding the need for and location of programs

10  related to aging.

11         (8)  Review and coordinate aging research plans of all

12  state agencies to ensure the conformance of research

13  objectives to issues and needs addressed in the master plan

14  for policies and programs related to aging.  The research

15  activities that must be reviewed and coordinated by the

16  department include, but are not limited to, contracts with

17  academic institutions, development of educational and training

18  curriculums, Alzheimer's disease and other medical research,

19  studies of long-term care and other personal assistance needs,

20  and design of adaptive or modified living environments.

21         (9)  Review budget requests for programs related to

22  aging for compliance with the master plan for policies and

23  programs related to aging before submission to the Governor

24  and the Legislature.

25         (10)  Update the master plan for policies and programs

26  related to aging every 3 years.

27         (11)  Review implementation of the master plan for

28  programs and policies related to aging and annually report to

29  the Governor, each Cabinet member, the President of the

30  Senate, the Speaker of the House of Representatives, the

31  minority leaders of the House and Senate, and the chairpersons


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                                           HB 703, First Engrossed



  1  of appropriate House and Senate committees the progress

  2  towards implementation of the plan.

  3         (12)  Request other departments that administer

  4  programs affecting the state's elderly population to amend

  5  their plans, rules, policies, and research objectives as

  6  necessary to conform with the master plan for policies and

  7  programs related to aging.

  8         (5)(13)  Hold public meetings regularly throughout the

  9  state for purposes of receiving information and maximizing the

10  visibility of important issues.

11         (6)(14)  Conduct policy analysis and program evaluation

12  studies assigned by the Legislature.

13         (7)(15)  Assist the Governor, each Cabinet member, the

14  President of the Senate, the Speaker of the House of

15  Representatives, the minority leaders of the House and Senate,

16  and the chairpersons of appropriate House and Senate

17  committees in the conduct of their responsibilities in such

18  capacities as they consider appropriate.

19         (8)(16)  Call upon appropriate agencies of state

20  government for such assistance as is needed in the discharge

21  of its duties. All agencies shall cooperate in assisting the

22  department in carrying out its responsibilities as prescribed

23  by this section. However, no provision of law with respect to

24  confidentiality of information may be violated.

25         Section 16.  Section 430.041, Florida Statutes, is

26  created to read:

27         430.041  Office of Long-Term Care Policy.--

28         (1)  There is established within the Department of

29  Elderly Affairs the Office of Long-Term Care Policy to analyze

30  the state's long-term care system and increase the

31  availability and the use of noninstitutional settings to


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                                           HB 703, First Engrossed



  1  provide care to the elderly and to ensure coordination among

  2  the agencies responsible for the long-term care continuum. The

  3  Department of Elderly Affairs shall provide administrative

  4  support and service to the Office of Long-Term Care Policy.

  5  The office is not subject to control, supervision, or

  6  direction by the Department of Elderly Affairs in the

  7  performance of its duties.

  8         (2)  The Office of Long-Term Care Policy shall:

  9         (a)  Ensure close communication and coordination among

10  state agencies involved in developing and administering a more

11  efficient and coordinated long-term care service delivery

12  system in this state.

13         (b)  Ensure that state agencies involved in developing

14  long-term care policy have considered the preferences of

15  consumers, providers, and local elected officials.

16         (c)  Study and plan for programs to meet identified and

17  projected needs of people who need long-term care.

18         (d)  Develop a State Long-Term Care Plan and policy

19  recommendations to ensure that appropriate long-term care is

20  available in institutional and community-based settings.

21         (e)  Update the State Long-Term Care Plan every 3

22  years.

23         (f)  Recommend state and local organizational models

24  for the planning, coordination, implementation, and evaluation

25  of programs serving people with long-term care needs.

26         (g)  Make recommendations to agencies for budget

27  requests for long-term care programs to ensure consistency

28  with the State Long-Term Care Plan.

29         (h)  Develop and recommend strategies for ensuring

30  compliance with all federal requirements regarding access to

31  and choice of services and providers.


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                                           HB 703, First Engrossed



  1         (i)  Identify duplication and unnecessary service

  2  provision in the long-term care system and make

  3  recommendations to decrease inappropriate service provision.

  4         (j)  Make recommendations to increase consistency in

  5  administering the state's long-term care programs.

  6         (k)  Ensure regular periodic evaluations of all

  7  programs providing long-term care services to determine

  8  whether the programs are cost-effective, of high quality,

  9  operating efficiently, and consistent with state policy.

10         (l)  Monitor characteristics of people applying for and

11  entering institutional and community-based long-term care, and

12  changes to these characteristics over time, to determine the

13  reasons and causes for changing levels of state expenditures

14  and to determine services that the state's system of

15  community-based care could provide to lessen the need for

16  facility-based care.

17         (m)  Recommend changes to the preadmission screening

18  system of state nursing homes to ensure that individuals in

19  need of long-term care are served in settings most appropriate

20  to their needs.

21         (n)  Recommend mechanisms to encourage families and

22  other caregivers to assist people in need of long-term care

23  services to remain as independent as possible.

24         (o)  Analyze waiting lists for long-term care services

25  and recommend strategies to reduce the time applicants wait

26  for services.

27         (p)  Oversee research on aging conducted or funded by

28  any state agency to ensure that such research is coordinated

29  and directed to fulfill the intent and purposes of this act.

30         (3)  The director of the Office of Long-Term Care

31  Policy shall be appointed by and serve at the pleasure of the


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                                           HB 703, First Engrossed



  1  Governor. The director of the Office of Long-Term Care Policy

  2  shall report to the Governor.

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

  4  advisory board, whose chair is to be selected by the board.

  5  The board shall consist of:

  6         (a)  A member of the Senate, appointed by the President

  7  of the Senate.

  8         (b)  A member of the House of Representatives,

  9  appointed by the Speaker of the House of Representatives.

10         (c)  The Secretary of Health Care Administration.

11         (d)  The Secretary of Elderly Affairs.

12         (e)  The state Medicaid Director.

13         (f)  Two representatives of providers of long-term care

14  services for elderly persons, appointed by the Governor.

15         (g)  Two representatives of people receiving long-term

16  care services, appointed by the Governor from groups

17  representing elderly persons.

18         (5)  Members of the advisory board shall serve without

19  compensation, but are entitled to receive reimbursement for

20  travel and per diem as provided in s. 112.061.

21         (6)  The advisory board shall meet at least monthly or

22  more often at the call of its chair or at the request of a

23  majority of its members.

24         (7)  The office shall submit a report of its policy,

25  legislative, and funding recommendations to the Governor and

26  the Legislature by January 1 of each year.

27         (8)  Personnel who are solely under the direction of

28  the Office of Long-Term Care Policy shall be provided by the

29  Agency for Health Care Administration and the Department of

30  Elderly Affairs. The office shall call upon appropriate

31  agencies of state government, including the centers on aging


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                                           HB 703, First Engrossed



  1  in the State University System, for assistance needed in

  2  discharging its duties. All agencies shall assist the office

  3  in carrying out its responsibilities prescribed by this

  4  section.

  5         Section 17.  Section 430.7031, Florida Statutes, is

  6  created to read:

  7         430.7031  Nursing home transition program.--The

  8  department and the Agency for Health Care Administration:

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

10  assist individuals residing in nursing homes to regain

11  independence and to move to less costly settings.

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

13  nursing home residents who are able to move to community

14  placements, and to provide case management and supportive

15  services to such individuals while they are in nursing homes

16  to assist such individuals in moving to less expensive and

17  less restrictive settings.

18         (3)  Shall modify existing service delivery systems or

19  develop new service delivery systems to economically and

20  efficiently meet such individuals' care needs.

21         (4)  Shall offer such individuals priority placement

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

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

24  services to individuals to whom services are offered.

25         (5)  May seek federal waivers necessary to administer

26  this section.

27         Section 18.  Subsection (4) of section 409.908, Florida

28  Statutes, is amended to read:

29         409.908  Reimbursement of Medicaid providers.--Subject

30  to specific appropriations, the agency shall reimburse

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


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                                           HB 703, First Engrossed



  1  according to methodologies set forth in the rules of the

  2  agency and in policy manuals and handbooks incorporated by

  3  reference therein.  These methodologies may include fee

  4  schedules, reimbursement methods based on cost reporting,

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

  6  and other mechanisms the agency considers efficient and

  7  effective for purchasing services or goods on behalf of

  8  recipients.  Payment for Medicaid compensable services made on

  9  behalf of Medicaid eligible persons is subject to the

10  availability of moneys and any limitations or directions

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

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

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

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

15  making any other adjustments necessary to comply with the

16  availability of moneys and any limitations or directions

17  provided for in the General Appropriations Act, provided the

18  adjustment is consistent with legislative intent.

19         (4)  Subject to any limitations or directions provided

20  for in the General Appropriations Act, alternative health

21  plans, health maintenance organizations, and prepaid health

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

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

24  prospectively paid to the provider monthly for each Medicaid

25  recipient enrolled.  The amount may not exceed the average

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

27  claims experience, for recipients in the same or similar

28  category of eligibility.  The agency shall calculate

29  capitation rates on a regional basis and, beginning September

30  1, 1995, shall include age-band differentials in such

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


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                                           HB 703, First Engrossed



  1  statutory teaching hospitals, specialty hospitals, and

  2  community hospital education program hospitals from

  3  reimbursement ceilings and the cost of special Medicaid

  4  payments shall not be included in premiums paid to health

  5  maintenance organizations or prepaid health care plans. Each

  6  rate semester, the agency shall calculate and publish a

  7  Medicaid hospital rate schedule that does not reflect either

  8  special Medicaid payments or the elimination of rate

  9  reimbursement ceilings, to be used by hospitals and Medicaid

10  health maintenance organizations, in order to determine the

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

12  409.9128(5), and 641.513(6).

13         Section 19.  Section 430.708, Florida Statutes, is

14  amended to read:

15         430.708  Certificate of need.--To ensure that Medicaid

16  community diversion pilot projects result in a reduction in

17  the projected average monthly nursing home caseload, the

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

19  408.034(5) s. 408.034(4):

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

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

22  pilot project areas.

23         (2)  Reduce the conditions imposed on existing nursing

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

25  number of projected community diversion slots.

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

27  Medicaid-participating nursing homes eligible for Medicaid,

28  through a Medicaid-selective contracting process or some other

29  appropriate method.

30

31


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                                           HB 703, First Engrossed



  1         (4)  Determine the feasibility of increasing the

  2  nursing home occupancy threshold used in determining nursing

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

  4         Section 20.  Section 627.9408, Florida Statutes, is

  5  amended to read:

  6         627.9408  Rules.--

  7         (1)  The department has authority to adopt rules

  8  pursuant to ss. 120.536(1) and 120.54 to implement the

  9  provisions of this part.

10         (2)  The department may adopt by rule the provisions of

11  the Long-Term Care Insurance Model Regulation adopted by the

12  National Association of Insurance Commissioners in the second

13  quarter of the year 2000 which are not in conflict with the

14  Florida Insurance Code.

15         Section 21.  Subsection (4) of section 641.386, Florida

16  Statutes, is amended to read:

17         641.386  Agent licensing and appointment required;

18  exceptions.--

19         (4)  All agents and health maintenance organizations

20  shall comply with and be subject to the applicable provisions

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

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

23  when marketing for any health maintenance organization

24  licensed pursuant to this part, including those organizations

25  under contract with the Agency for Health Care Administration

26  to provide health care services to Medicaid recipients or any

27  private entity providing health care services to Medicaid

28  recipients pursuant to a prepaid health plan contract with the

29  Agency for Health Care Administration.

30         Section 22.  This act shall take effect July 1, 2002.

31


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