Senate Bill sb0390e1
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    CS for SB 390                                  First Engrossed
  1                      A bill to be entitled
  2         An act relating to health care; amending s.
  3         400.23, F.S.; delaying the effective date of
  4         certain requirements concerning hours of direct
  5         care per resident for nursing home facilities;
  6         amending s. 409.904, F.S.; revising
  7         requirements for certain optional payments
  8         under the Medicaid program; amending s.
  9         409.906, F.S.; deleting provisions authorizing
10         payment for adult dental services; revising
11         requirements for hearing and visual services to
12         limit such services to persons younger than 21
13         years of age; amending s. 409.908, F.S.,
14         relating to reimbursement of Medicaid
15         providers; conforming a cross-reference;
16         amending s. 409.9081, F.S.; providing a
17         copayment under the Medicaid program for
18         certain nonemergency hospital visits; amending
19         s. 409.912, F.S.; authorizing the Agency for
20         Health Care Administration to establish certain
21         protocols for categories of drugs; removing
22         certain requirements for prior authorization
23         for nursing home residents and
24         institutionalized adults; prohibiting
25         value-added rebates to a pharmaceutical
26         manufacturer; deleting provisions authorizing
27         certain benefits in conjunction with
28         supplemental rebates; amending s. 409.9122,
29         F.S.; revising the percentage of Medicaid
30         recipients required to be enrolled in managed
31         care; amending s. 409.915, F.S.; increasing the
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    CS for SB 390                                  First Engrossed
 1         requirements for county contributions to
 2         Medicaid; amending s. 409.815, F.S., relating
 3         to benefits coverage; specifying a maximum
 4         annual benefit for children's dental services;
 5         revising requirements for the Agency for Health
 6         Care Administration in distributing moneys
 7         under the regular disproportionate share
 8         program for the 2003-2004 fiscal year;
 9         providing legislative findings; providing a
10         contingency with respect to specified
11         provisions of the act taking effect; providing
12         an effective date.
13  
14  Be It Enacted by the Legislature of the State of Florida:
15  
16         Section 1.  Paragraph (a) of subsection (3) of section
17  400.23, Florida Statutes, is amended to read:
18         400.23  Rules; evaluation and deficiencies; licensure
19  status.--
20         (3)(a)  The agency shall adopt rules providing for the
21  minimum staffing requirements for nursing homes. These
22  requirements shall include, for each nursing home facility, a
23  minimum certified nursing assistant staffing of 2.3 hours of
24  direct care per resident per day beginning January 1, 2002,
25  increasing to 2.6 hours of direct care per resident per day
26  beginning January 1, 2003, and increasing to 2.9 hours of
27  direct care per resident per day beginning July January 1,
28  2004. Beginning January 1, 2002, no facility shall staff below
29  one certified nursing assistant per 20 residents, and a
30  minimum licensed nursing staffing of 1.0 hour of direct
31  resident care per resident per day but never below one
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    CS for SB 390                                  First Engrossed
 1  licensed nurse per 40 residents. Nursing assistants employed
 2  under s. 400.211(2) may be included in computing the staffing
 3  ratio for certified nursing assistants only if they provide
 4  nursing assistance services to residents on a full-time basis.
 5  Each nursing home must document compliance with staffing
 6  standards as required under this paragraph and post daily the
 7  names of staff on duty for the benefit of facility residents
 8  and the public. The agency shall recognize the use of licensed
 9  nurses for compliance with minimum staffing requirements for
10  certified nursing assistants, provided that the facility
11  otherwise meets the minimum staffing requirements for licensed
12  nurses and that the licensed nurses so recognized are
13  performing the duties of a certified nursing assistant. Unless
14  otherwise approved by the agency, licensed nurses counted
15  towards the minimum staffing requirements for certified
16  nursing assistants must exclusively perform the duties of a
17  certified nursing assistant for the entire shift and shall not
18  also be counted towards the minimum staffing requirements for
19  licensed nurses. If the agency approved a facility's request
20  to use a licensed nurse to perform both licensed nursing and
21  certified nursing assistant duties, the facility must allocate
22  the amount of staff time specifically spent on certified
23  nursing assistant duties for the purpose of documenting
24  compliance with minimum staffing requirements for certified
25  and licensed nursing staff. In no event may the hours of a
26  licensed nurse with dual job responsibilities be counted
27  twice.
28         Section 2.  Subsection (2) of section 409.904, Florida
29  Statutes, is amended to read:
30         409.904  Optional payments for eligible persons.--The
31  agency may make payments for medical assistance and related
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    CS for SB 390                                  First Engrossed
 1  services on behalf of the following persons who are determined
 2  to be eligible subject to the income, assets, and categorical
 3  eligibility tests set forth in federal and state law.  Payment
 4  on behalf of these Medicaid eligible persons is subject to the
 5  availability of moneys and any limitations established by the
 6  General Appropriations Act or chapter 216.
 7         (2)  A caretaker relative or parent, A pregnant woman,
 8  a child under age 19 who would otherwise qualify for Florida
 9  Kidcare Medicaid, or a child up to age 21 who would otherwise
10  qualify under s. 409.903(1), a person age 65 or over, or a
11  blind or disabled person, who would otherwise be eligible for
12  Florida Medicaid, except that the income or assets of such
13  family or person exceed established limitations. For a family
14  or person in one of these coverage groups, medical expenses
15  are deductible from income in accordance with federal
16  requirements in order to make a determination of eligibility.
17  Expenses used to meet spend-down liability are not
18  reimbursable by Medicaid. Effective May 1, 2003, when
19  determining the eligibility of a pregnant woman or, a child,
20  or an aged, blind, or disabled individual, $270 shall be
21  deducted from the countable income of the filing unit. When
22  determining the eligibility of the parent or caretaker
23  relative as defined by Title XIX of the Social Security Act,
24  the additional income disregard of $270 does not apply. A
25  family or person eligible under the coverage known as the
26  "medically needy," is eligible to receive the same services as
27  other Medicaid recipients, with the exception of services in
28  skilled nursing facilities and intermediate care facilities
29  for the developmentally disabled.
30         Section 3.  Section 409.906, Florida Statutes, is
31  amended to read:
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    CS for SB 390                                  First Engrossed
 1         409.906  Optional Medicaid services.--Subject to
 2  specific appropriations, the agency may make payments for
 3  services which are optional to the state under Title XIX of
 4  the Social Security Act and are furnished by Medicaid
 5  providers to recipients who are determined to be eligible on
 6  the dates on which the services were provided.  Any optional
 7  service that is provided shall be provided only when medically
 8  necessary and in accordance with state and federal law.
 9  Optional services rendered by providers in mobile units to
10  Medicaid recipients may be restricted or prohibited by the
11  agency. Nothing in this section shall be construed to prevent
12  or limit the agency from adjusting fees, reimbursement rates,
13  lengths of stay, number of visits, or number of services, or
14  making any other adjustments necessary to comply with the
15  availability of moneys and any limitations or directions
16  provided for in the General Appropriations Act or chapter 216.
17  If necessary to safeguard the state's systems of providing
18  services to elderly and disabled persons and subject to the
19  notice and review provisions of s. 216.177, the Governor may
20  direct the Agency for Health Care Administration to amend the
21  Medicaid state plan to delete the optional Medicaid service
22  known as "Intermediate Care Facilities for the Developmentally
23  Disabled."  Optional services may include:
24         (1)  ADULT DENTAL SERVICES.--The agency may pay for
25  medically necessary, emergency dental procedures to alleviate
26  pain or infection. Emergency dental care shall be limited to
27  emergency oral examinations, necessary radiographs,
28  extractions, and incision and drainage of abscess, for a
29  recipient who is age 21 or older. However, Medicaid will not
30  provide reimbursement for dental services provided in a mobile
31  dental unit, except for a mobile dental unit:
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    CS for SB 390                                  First Engrossed
 1         (a)  Owned by, operated by, or having a contractual
 2  agreement with the Department of Health and complying with
 3  Medicaid's county health department clinic services program
 4  specifications as a county health department clinic services
 5  provider.
 6         (b)  Owned by, operated by, or having a contractual
 7  arrangement with a federally qualified health center and
 8  complying with Medicaid's federally qualified health center
 9  specifications as a federally qualified health center
10  provider.
11         (c)  Rendering dental services to Medicaid recipients,
12  21 years of age and older, at nursing facilities.
13         (d)  Owned by, operated by, or having a contractual
14  agreement with a state-approved dental educational
15  institution.
16         (1)(2)  ADULT HEALTH SCREENING SERVICES.--The agency
17  may pay for an annual routine physical examination, conducted
18  by or under the direction of a licensed physician, for a
19  recipient age 21 or older, without regard to medical
20  necessity, in order to detect and prevent disease, disability,
21  or other health condition or its progression.
22         (2)(3)  AMBULATORY SURGICAL CENTER SERVICES.--The
23  agency may pay for services provided to a recipient in an
24  ambulatory surgical center licensed under part I of chapter
25  395, by or under the direction of a licensed physician or
26  dentist.
27         (3)(4)  BIRTH CENTER SERVICES.--The agency may pay for
28  examinations and delivery, recovery, and newborn assessment,
29  and related services, provided in a licensed birth center
30  staffed with licensed physicians, certified nurse midwives,
31  and midwives licensed in accordance with chapter 467, to a
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    CS for SB 390                                  First Engrossed
 1  recipient expected to experience a low-risk pregnancy and
 2  delivery.
 3         (4)(5)  CASE MANAGEMENT SERVICES.--The agency may pay
 4  for primary care case management services rendered to a
 5  recipient pursuant to a federally approved waiver, and
 6  targeted case management services for specific groups of
 7  targeted recipients, for which funding has been provided and
 8  which are rendered pursuant to federal guidelines. The agency
 9  is authorized to limit reimbursement for targeted case
10  management services in order to comply with any limitations or
11  directions provided for in the General Appropriations Act.
12  Notwithstanding s. 216.292, the Department of Children and
13  Family Services may transfer general funds to the Agency for
14  Health Care Administration to fund state match requirements
15  exceeding the amount specified in the General Appropriations
16  Act for targeted case management services.
17         (5)(6)  CHILDREN'S DENTAL SERVICES.--The agency may pay
18  for diagnostic, preventive, or corrective procedures,
19  including orthodontia in severe cases, provided to a recipient
20  under age 21, by or under the supervision of a licensed
21  dentist.  Services provided under this program include
22  treatment of the teeth and associated structures of the oral
23  cavity, as well as treatment of disease, injury, or impairment
24  that may affect the oral or general health of the individual.
25  However, Medicaid will not provide reimbursement for dental
26  services provided in a mobile dental unit, except for a mobile
27  dental unit:
28         (a)  Owned by, operated by, or having a contractual
29  agreement with the Department of Health and complying with
30  Medicaid's county health department clinic services program
31  
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    CS for SB 390                                  First Engrossed
 1  specifications as a county health department clinic services
 2  provider.
 3         (b)  Owned by, operated by, or having a contractual
 4  arrangement with a federally qualified health center and
 5  complying with Medicaid's federally qualified health center
 6  specifications as a federally qualified health center
 7  provider.
 8         (c)  Rendering dental services to Medicaid recipients,
 9  21 years of age and older, at nursing facilities.
10         (d)  Owned by, operated by, or having a contractual
11  agreement with a state-approved dental educational
12  institution.
13         (6)(7)  CHIROPRACTIC SERVICES.--The agency may pay for
14  manual manipulation of the spine and initial services,
15  screening, and X rays provided to a recipient by a licensed
16  chiropractic physician.
17         (7)(8)  COMMUNITY MENTAL HEALTH SERVICES.--
18         (a)  The agency may pay for rehabilitative services
19  provided to a recipient by a mental health or substance abuse
20  provider under contract with the agency or the Department of
21  Children and Family Services to provide such services.  Those
22  services which are psychiatric in nature shall be rendered or
23  recommended by a psychiatrist, and those services which are
24  medical in nature shall be rendered or recommended by a
25  physician or psychiatrist. The agency must develop a provider
26  enrollment process for community mental health providers which
27  bases provider enrollment on an assessment of service need.
28  The provider enrollment process shall be designed to control
29  costs, prevent fraud and abuse, consider provider expertise
30  and capacity, and assess provider success in managing
31  utilization of care and measuring treatment outcomes.
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    CS for SB 390                                  First Engrossed
 1  Providers will be selected through a competitive procurement
 2  or selective contracting process. In addition to other
 3  community mental health providers, the agency shall consider
 4  for enrollment mental health programs licensed under chapter
 5  395 and group practices licensed under chapter 458, chapter
 6  459, chapter 490, or chapter 491. The agency is also
 7  authorized to continue operation of its behavioral health
 8  utilization management program and may develop new services if
 9  these actions are necessary to ensure savings from the
10  implementation of the utilization management system. The
11  agency shall coordinate the implementation of this enrollment
12  process with the Department of Children and Family Services
13  and the Department of Juvenile Justice. The agency is
14  authorized to utilize diagnostic criteria in setting
15  reimbursement rates, to preauthorize certain high-cost or
16  highly utilized services, to limit or eliminate coverage for
17  certain services, or to make any other adjustments necessary
18  to comply with any limitations or directions provided for in
19  the General Appropriations Act.
20         (b)  The agency is authorized to implement
21  reimbursement and use management reforms in order to comply
22  with any limitations or directions in the General
23  Appropriations Act, which may include, but are not limited to:
24  prior authorization of treatment and service plans; prior
25  authorization of services; enhanced use review programs for
26  highly used services; and limits on services for those
27  determined to be abusing their benefit coverages.
28         (8)(9)  DIALYSIS FACILITY SERVICES.--Subject to
29  specific appropriations being provided for this purpose, the
30  agency may pay a dialysis facility that is approved as a
31  dialysis facility in accordance with Title XVIII of the Social
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    CS for SB 390                                  First Engrossed
 1  Security Act, for dialysis services that are provided to a
 2  Medicaid recipient under the direction of a physician licensed
 3  to practice medicine or osteopathic medicine in this state,
 4  including dialysis services provided in the recipient's home
 5  by a hospital-based or freestanding dialysis facility.
 6         (9)(10)  DURABLE MEDICAL EQUIPMENT.--The agency may
 7  authorize and pay for certain durable medical equipment and
 8  supplies provided to a Medicaid recipient as medically
 9  necessary.
10         (10)(11)  HEALTHY START SERVICES.--The agency may pay
11  for a continuum of risk-appropriate medical and psychosocial
12  services for the Healthy Start program in accordance with a
13  federal waiver. The agency may not implement the federal
14  waiver unless the waiver permits the state to limit enrollment
15  or the amount, duration, and scope of services to ensure that
16  expenditures will not exceed funds appropriated by the
17  Legislature or available from local sources. If the Health
18  Care Financing Administration does not approve a federal
19  waiver for Healthy Start services, the agency, in consultation
20  with the Department of Health and the Florida Association of
21  Healthy Start Coalitions, is authorized to establish a
22  Medicaid certified-match program for Healthy Start services.
23  Participation in the Healthy Start certified-match program
24  shall be voluntary, and reimbursement shall be limited to the
25  federal Medicaid share to Medicaid-enrolled Healthy Start
26  coalitions for services provided to Medicaid recipients. The
27  agency shall take no action to implement a certified-match
28  program without ensuring that the amendment and review
29  requirements of ss. 216.177 and 216.181 have been met.
30         (11)(12)  CHILDREN'S HEARING SERVICES.--The agency may
31  pay for hearing and related services, including hearing
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    CS for SB 390                                  First Engrossed
 1  evaluations, hearing aid devices, dispensing of the hearing
 2  aid, and related repairs, if provided to a recipient younger
 3  than 21 years of age by a licensed hearing aid specialist,
 4  otolaryngologist, otologist, audiologist, or physician.
 5         (12)(13)  HOME AND COMMUNITY-BASED SERVICES.--The
 6  agency may pay for home-based or community-based services that
 7  are rendered to a recipient in accordance with a federally
 8  approved waiver program. The agency may limit or eliminate
 9  coverage for certain Project AIDS Care Waiver services,
10  preauthorize high-cost or highly utilized services, or make
11  any other adjustments necessary to comply with any limitations
12  or directions provided for in the General Appropriations Act.
13         (13)(14)  HOSPICE CARE SERVICES.--The agency may pay
14  for all reasonable and necessary services for the palliation
15  or management of a recipient's terminal illness, if the
16  services are provided by a hospice that is licensed under part
17  VI of chapter 400 and meets Medicare certification
18  requirements.
19         (14)(15)  INTERMEDIATE CARE FACILITY FOR THE
20  DEVELOPMENTALLY DISABLED SERVICES.--The agency may pay for
21  health-related care and services provided on a 24-hour-a-day
22  basis by a facility licensed and certified as a Medicaid
23  Intermediate Care Facility for the Developmentally Disabled,
24  for a recipient who needs such care because of a developmental
25  disability.
26         (15)(16)  INTERMEDIATE CARE SERVICES.--The agency may
27  pay for 24-hour-a-day intermediate care nursing and
28  rehabilitation services rendered to a recipient in a nursing
29  facility licensed under part II of chapter 400, if the
30  services are ordered by and provided under the direction of a
31  physician.
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    CS for SB 390                                  First Engrossed
 1         (16)(17)  OPTOMETRIC SERVICES.--The agency may pay for
 2  services provided to a recipient, including examination,
 3  diagnosis, treatment, and management, related to ocular
 4  pathology, if the services are provided by a licensed
 5  optometrist or physician.
 6         (17)(18)  PHYSICIAN ASSISTANT SERVICES.--The agency may
 7  pay for all services provided to a recipient by a physician
 8  assistant licensed under s. 458.347 or s. 459.022.
 9  Reimbursement for such services must be not less than 80
10  percent of the reimbursement that would be paid to a physician
11  who provided the same services.
12         (18)(19)  PODIATRIC SERVICES.--The agency may pay for
13  services, including diagnosis and medical, surgical,
14  palliative, and mechanical treatment, related to ailments of
15  the human foot and lower leg, if provided to a recipient by a
16  podiatric physician licensed under state law.
17         (19)(20)  PRESCRIBED DRUG SERVICES.--The agency may pay
18  for medications that are prescribed for a recipient by a
19  physician or other licensed practitioner of the healing arts
20  authorized to prescribe medications and that are dispensed to
21  the recipient by a licensed pharmacist or physician in
22  accordance with applicable state and federal law.
23         (20)(21)  REGISTERED NURSE FIRST ASSISTANT
24  SERVICES.--The agency may pay for all services provided to a
25  recipient by a registered nurse first assistant as described
26  in s. 464.027.  Reimbursement for such services may not be
27  less than 80 percent of the reimbursement that would be paid
28  to a physician providing the same services.
29         (21)(22)  STATE HOSPITAL SERVICES.--The agency may pay
30  for all-inclusive psychiatric inpatient hospital care provided
31  to a recipient age 65 or older in a state mental hospital.
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    CS for SB 390                                  First Engrossed
 1         (22)(23)  CHILDREN'S VISUAL SERVICES.--The agency may
 2  pay for visual examinations, eyeglasses, and eyeglass repairs
 3  for a recipient younger than 21 years of age, if they are
 4  prescribed by a licensed physician specializing in diseases of
 5  the eye or by a licensed optometrist.
 6         (23)(24)  CHILD-WELFARE-TARGETED CASE MANAGEMENT.--The
 7  Agency for Health Care Administration, in consultation with
 8  the Department of Children and Family Services, may establish
 9  a targeted case-management project in those counties
10  identified by the Department of Children and Family Services
11  and for all counties with a community-based child welfare
12  project, as authorized under s. 409.1671, which have been
13  specifically approved by the department. Results of targeted
14  case management projects shall be reported to the Social
15  Services Estimating Conference established under s. 216.136.
16  The covered group of individuals who are eligible to receive
17  targeted case management include children who are eligible for
18  Medicaid; who are between the ages of birth through 21; and
19  who are under protective supervision or postplacement
20  supervision, under foster-care supervision, or in shelter care
21  or foster care. The number of individuals who are eligible to
22  receive targeted case management shall be limited to the
23  number for whom the Department of Children and Family Services
24  has available matching funds to cover the costs. The general
25  revenue funds required to match the funds for services
26  provided by the community-based child welfare projects are
27  limited to funds available for services described under s.
28  409.1671. The Department of Children and Family Services may
29  transfer the general revenue matching funds as billed by the
30  Agency for Health Care Administration.
31  
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    CS for SB 390                                  First Engrossed
 1         (24)(25)  ASSISTIVE-CARE SERVICES.--The agency may pay
 2  for assistive-care services provided to recipients with
 3  functional or cognitive impairments residing in assisted
 4  living facilities, adult family-care homes, or residential
 5  treatment facilities. These services may include health
 6  support, assistance with the activities of daily living and
 7  the instrumental acts of daily living, assistance with
 8  medication administration, and arrangements for health care.
 9         Section 4.  Subsection (20) of section 409.908, Florida
10  Statutes, is amended to read:
11         409.908  Reimbursement of Medicaid providers.--Subject
12  to specific appropriations, the agency shall reimburse
13  Medicaid providers, in accordance with state and federal law,
14  according to methodologies set forth in the rules of the
15  agency and in policy manuals and handbooks incorporated by
16  reference therein.  These methodologies may include fee
17  schedules, reimbursement methods based on cost reporting,
18  negotiated fees, competitive bidding pursuant to s. 287.057,
19  and other mechanisms the agency considers efficient and
20  effective for purchasing services or goods on behalf of
21  recipients. If a provider is reimbursed based on cost
22  reporting and submits a cost report late and that cost report
23  would have been used to set a lower reimbursement rate for a
24  rate semester, then the provider's rate for that semester
25  shall be retroactively calculated using the new cost report,
26  and full payment at the recalculated rate shall be affected
27  retroactively. Medicare-granted extensions for filing cost
28  reports, if applicable, shall also apply to Medicaid cost
29  reports. Payment for Medicaid compensable services made on
30  behalf of Medicaid eligible persons is subject to the
31  availability of moneys and any limitations or directions
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    CS for SB 390                                  First Engrossed
 1  provided for in the General Appropriations Act or chapter 216.
 2  Further, nothing in this section shall be construed to prevent
 3  or limit the agency from adjusting fees, reimbursement rates,
 4  lengths of stay, number of visits, or number of services, or
 5  making any other adjustments necessary to comply with the
 6  availability of moneys and any limitations or directions
 7  provided for in the General Appropriations Act, provided the
 8  adjustment is consistent with legislative intent.
 9         (20)  A renal dialysis facility that provides dialysis
10  services under s. 409.906(8) s. 409.906(9) must be reimbursed
11  the lesser of the amount billed by the provider, the
12  provider's usual and customary charge, or the maximum
13  allowable fee established by the agency, whichever amount is
14  less.
15         Section 5.  Subsection (1) of section 409.9081, Florida
16  Statutes, is amended to read:
17         409.9081  Copayments.--
18         (1)  The agency shall require, subject to federal
19  regulations and limitations, each Medicaid recipient to pay at
20  the time of service a nominal copayment for the following
21  Medicaid services:
22         (a)  Hospital outpatient services:  up to $3 for each
23  hospital outpatient visit.
24         (b)  Physician services: up to $2 copayment for each
25  visit with a physician licensed under chapter 458, chapter
26  459, chapter 460, chapter 461, or chapter 463.
27         (c)  Hospital emergency department visits for
28  nonemergency care: $15 for each emergency department visit.
29         Section 6.  Section 409.912, Florida Statutes, is
30  amended to read:
31  
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    CS for SB 390                                  First Engrossed
 1         409.912  Cost-effective purchasing of health care.--The
 2  agency shall purchase goods and services for Medicaid
 3  recipients in the most cost-effective manner consistent with
 4  the delivery of quality medical care.  The agency shall
 5  maximize the use of prepaid per capita and prepaid aggregate
 6  fixed-sum basis services when appropriate and other
 7  alternative service delivery and reimbursement methodologies,
 8  including competitive bidding pursuant to s. 287.057, designed
 9  to facilitate the cost-effective purchase of a case-managed
10  continuum of care. The agency shall also require providers to
11  minimize the exposure of recipients to the need for acute
12  inpatient, custodial, and other institutional care and the
13  inappropriate or unnecessary use of high-cost services. The
14  agency may establish prior authorization requirements for
15  certain populations of Medicaid beneficiaries, certain drug
16  classes, or particular drugs to prevent fraud, abuse, overuse,
17  and possible dangerous drug interactions. The agency may also
18  establish step-therapy protocols for the categories of drugs
19  representing Cox II and proton pump inhibitor drugs. The
20  Pharmaceutical and Therapeutics Committee shall make
21  recommendations to the agency on drugs for which prior
22  authorization is required. The agency shall inform the
23  Pharmaceutical and Therapeutics Committee of its decisions
24  regarding drugs subject to prior authorization.
25         (1)  The agency may enter into agreements with
26  appropriate agents of other state agencies or of any agency of
27  the Federal Government and accept such duties in respect to
28  social welfare or public aid as may be necessary to implement
29  the provisions of Title XIX of the Social Security Act and ss.
30  409.901-409.920.
31  
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    CS for SB 390                                  First Engrossed
 1         (2)  The agency may contract with health maintenance
 2  organizations certified pursuant to part I of chapter 641 for
 3  the provision of services to recipients.
 4         (3)  The agency may contract with:
 5         (a)  An entity that provides no prepaid health care
 6  services other than Medicaid services under contract with the
 7  agency and which is owned and operated by a county, county
 8  health department, or county-owned and operated hospital to
 9  provide health care services on a prepaid or fixed-sum basis
10  to recipients, which entity may provide such prepaid services
11  either directly or through arrangements with other providers.
12  Such prepaid health care services entities must be licensed
13  under parts I and III by January 1, 1998, and until then are
14  exempt from the provisions of part I of chapter 641. An entity
15  recognized under this paragraph which demonstrates to the
16  satisfaction of the Department of Insurance that it is backed
17  by the full faith and credit of the county in which it is
18  located may be exempted from s. 641.225.
19         (b)  An entity that is providing comprehensive
20  behavioral health care services to certain Medicaid recipients
21  through a capitated, prepaid arrangement pursuant to the
22  federal waiver provided for by s. 409.905(5). Such an entity
23  must be licensed under chapter 624, chapter 636, or chapter
24  641 and must possess the clinical systems and operational
25  competence to manage risk and provide comprehensive behavioral
26  health care to Medicaid recipients. As used in this paragraph,
27  the term "comprehensive behavioral health care services" means
28  covered mental health and substance abuse treatment services
29  that are available to Medicaid recipients. The secretary of
30  the Department of Children and Family Services shall approve
31  provisions of procurements related to children in the
                                  17
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    CS for SB 390                                  First Engrossed
 1  department's care or custody prior to enrolling such children
 2  in a prepaid behavioral health plan. Any contract awarded
 3  under this paragraph must be competitively procured. In
 4  developing the behavioral health care prepaid plan procurement
 5  document, the agency shall ensure that the procurement
 6  document requires the contractor to develop and implement a
 7  plan to ensure compliance with s. 394.4574 related to services
 8  provided to residents of licensed assisted living facilities
 9  that hold a limited mental health license. The agency must
10  ensure that Medicaid recipients have available the choice of
11  at least two managed care plans for their behavioral health
12  care services. To ensure unimpaired access to behavioral
13  health care services by Medicaid recipients, all contracts
14  issued pursuant to this paragraph shall require 80 percent of
15  the capitation paid to the managed care plan, including health
16  maintenance organizations, to be expended for the provision of
17  behavioral health care services. In the event the managed care
18  plan expends less than 80 percent of the capitation paid
19  pursuant to this paragraph for the provision of behavioral
20  health care services, the difference shall be returned to the
21  agency. The agency shall provide the managed care plan with a
22  certification letter indicating the amount of capitation paid
23  during each calendar year for the provision of behavioral
24  health care services pursuant to this section. The agency may
25  reimburse for substance-abuse-treatment services on a
26  fee-for-service basis until the agency finds that adequate
27  funds are available for capitated, prepaid arrangements.
28         1.  By January 1, 2001, the agency shall modify the
29  contracts with the entities providing comprehensive inpatient
30  and outpatient mental health care services to Medicaid
31  
                                  18
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    CS for SB 390                                  First Engrossed
 1  recipients in Hillsborough, Highlands, Hardee, Manatee, and
 2  Polk Counties, to include substance-abuse-treatment services.
 3         2.  By December 31, 2001, the agency shall contract
 4  with entities providing comprehensive behavioral health care
 5  services to Medicaid recipients through capitated, prepaid
 6  arrangements in Charlotte, Collier, DeSoto, Escambia, Glades,
 7  Hendry, Lee, Okaloosa, Pasco, Pinellas, Santa Rosa, Sarasota,
 8  and Walton Counties. The agency may contract with entities
 9  providing comprehensive behavioral health care services to
10  Medicaid recipients through capitated, prepaid arrangements in
11  Alachua County. The agency may determine if Sarasota County
12  shall be included as a separate catchment area or included in
13  any other agency geographic area.
14         3.  Children residing in a Department of Juvenile
15  Justice residential program approved as a Medicaid behavioral
16  health overlay services provider shall not be included in a
17  behavioral health care prepaid health plan pursuant to this
18  paragraph.
19         4.  In converting to a prepaid system of delivery, the
20  agency shall in its procurement document require an entity
21  providing comprehensive behavioral health care services to
22  prevent the displacement of indigent care patients by
23  enrollees in the Medicaid prepaid health plan providing
24  behavioral health care services from facilities receiving
25  state funding to provide indigent behavioral health care, to
26  facilities licensed under chapter 395 which do not receive
27  state funding for indigent behavioral health care, or
28  reimburse the unsubsidized facility for the cost of behavioral
29  health care provided to the displaced indigent care patient.
30         5.  Traditional community mental health providers under
31  contract with the Department of Children and Family Services
                                  19
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    CS for SB 390                                  First Engrossed
 1  pursuant to part IV of chapter 394 and inpatient mental health
 2  providers licensed pursuant to chapter 395 must be offered an
 3  opportunity to accept or decline a contract to participate in
 4  any provider network for prepaid behavioral health services.
 5         (c)  A federally qualified health center or an entity
 6  owned by one or more federally qualified health centers or an
 7  entity owned by other migrant and community health centers
 8  receiving non-Medicaid financial support from the Federal
 9  Government to provide health care services on a prepaid or
10  fixed-sum basis to recipients.  Such prepaid health care
11  services entity must be licensed under parts I and III of
12  chapter 641, but shall be prohibited from serving Medicaid
13  recipients on a prepaid basis, until such licensure has been
14  obtained.  However, such an entity is exempt from s. 641.225
15  if the entity meets the requirements specified in subsections
16  (14) and (15).
17         (d)  No more than four provider service networks for
18  demonstration projects to test Medicaid direct contracting.
19  The demonstration projects may be reimbursed on a
20  fee-for-service or prepaid basis.  A provider service network
21  which is reimbursed by the agency on a prepaid basis shall be
22  exempt from parts I and III of chapter 641, but must meet
23  appropriate financial reserve, quality assurance, and patient
24  rights requirements as established by the agency.  The agency
25  shall award contracts on a competitive bid basis and shall
26  select bidders based upon price and quality of care. Medicaid
27  recipients assigned to a demonstration project shall be chosen
28  equally from those who would otherwise have been assigned to
29  prepaid plans and MediPass.  The agency is authorized to seek
30  federal Medicaid waivers as necessary to implement the
31  provisions of this section.  A demonstration project awarded
                                  20
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    CS for SB 390                                  First Engrossed
 1  pursuant to this paragraph shall be for 4 years from the date
 2  of implementation.
 3         (e)  An entity that provides comprehensive behavioral
 4  health care services to certain Medicaid recipients through an
 5  administrative services organization agreement. Such an entity
 6  must possess the clinical systems and operational competence
 7  to provide comprehensive health care to Medicaid recipients.
 8  As used in this paragraph, the term "comprehensive behavioral
 9  health care services" means covered mental health and
10  substance abuse treatment services that are available to
11  Medicaid recipients. Any contract awarded under this paragraph
12  must be competitively procured. The agency must ensure that
13  Medicaid recipients have available the choice of at least two
14  managed care plans for their behavioral health care services.
15         (f)  An entity that provides in-home physician services
16  to test the cost-effectiveness of enhanced home-based medical
17  care to Medicaid recipients with degenerative neurological
18  diseases and other diseases or disabling conditions associated
19  with high costs to Medicaid. The program shall be designed to
20  serve very disabled persons and to reduce Medicaid reimbursed
21  costs for inpatient, outpatient, and emergency department
22  services. The agency shall contract with vendors on a
23  risk-sharing basis.
24         (g)  Children's provider networks that provide care
25  coordination and care management for Medicaid-eligible
26  pediatric patients, primary care, authorization of specialty
27  care, and other urgent and emergency care through organized
28  providers designed to service Medicaid eligibles under age 18
29  and pediatric emergency departments' diversion programs. The
30  networks shall provide after-hour operations, including
31  evening and weekend hours, to promote, when appropriate, the
                                  21
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    CS for SB 390                                  First Engrossed
 1  use of the children's networks rather than hospital emergency
 2  departments.
 3         (h)  An entity authorized in s. 430.205 to contract
 4  with the agency and the Department of Elderly Affairs to
 5  provide health care and social services on a prepaid or
 6  fixed-sum basis to elderly recipients. Such prepaid health
 7  care services entities are exempt from the provisions of part
 8  I of chapter 641 for the first 3 years of operation. An entity
 9  recognized under this paragraph that demonstrates to the
10  satisfaction of the Department of Insurance that it is backed
11  by the full faith and credit of one or more counties in which
12  it operates may be exempted from s. 641.225.
13         (i)  A Children's Medical Services network, as defined
14  in s. 391.021.
15         (4)  The agency may contract with any public or private
16  entity otherwise authorized by this section on a prepaid or
17  fixed-sum basis for the provision of health care services to
18  recipients. An entity may provide prepaid services to
19  recipients, either directly or through arrangements with other
20  entities, if each entity involved in providing services:
21         (a)  Is organized primarily for the purpose of
22  providing health care or other services of the type regularly
23  offered to Medicaid recipients;
24         (b)  Ensures that services meet the standards set by
25  the agency for quality, appropriateness, and timeliness;
26         (c)  Makes provisions satisfactory to the agency for
27  insolvency protection and ensures that neither enrolled
28  Medicaid recipients nor the agency will be liable for the
29  debts of the entity;
30         (d)  Submits to the agency, if a private entity, a
31  financial plan that the agency finds to be fiscally sound and
                                  22
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    CS for SB 390                                  First Engrossed
 1  that provides for working capital in the form of cash or
 2  equivalent liquid assets excluding revenues from Medicaid
 3  premium payments equal to at least the first 3 months of
 4  operating expenses or $200,000, whichever is greater;
 5         (e)  Furnishes evidence satisfactory to the agency of
 6  adequate liability insurance coverage or an adequate plan of
 7  self-insurance to respond to claims for injuries arising out
 8  of the furnishing of health care;
 9         (f)  Provides, through contract or otherwise, for
10  periodic review of its medical facilities and services, as
11  required by the agency; and
12         (g)  Provides organizational, operational, financial,
13  and other information required by the agency.
14         (5)  The agency may contract on a prepaid or fixed-sum
15  basis with any health insurer that:
16         (a)  Pays for health care services provided to enrolled
17  Medicaid recipients in exchange for a premium payment paid by
18  the agency;
19         (b)  Assumes the underwriting risk; and
20         (c)  Is organized and licensed under applicable
21  provisions of the Florida Insurance Code and is currently in
22  good standing with the Department of Insurance.
23         (6)  The agency may contract on a prepaid or fixed-sum
24  basis with an exclusive provider organization to provide
25  health care services to Medicaid recipients provided that the
26  exclusive provider organization meets applicable managed care
27  plan requirements in this section, ss. 409.9122, 409.9123,
28  409.9128, and 627.6472, and other applicable provisions of
29  law.
30         (7)  The Agency for Health Care Administration may
31  provide cost-effective purchasing of chiropractic services on
                                  23
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    CS for SB 390                                  First Engrossed
 1  a fee-for-service basis to Medicaid recipients through
 2  arrangements with a statewide chiropractic preferred provider
 3  organization incorporated in this state as a not-for-profit
 4  corporation.  The agency shall ensure that the benefit limits
 5  and prior authorization requirements in the current Medicaid
 6  program shall apply to the services provided by the
 7  chiropractic preferred provider organization.
 8         (8)  The agency shall not contract on a prepaid or
 9  fixed-sum basis for Medicaid services with an entity which
10  knows or reasonably should know that any officer, director,
11  agent, managing employee, or owner of stock or beneficial
12  interest in excess of 5 percent common or preferred stock, or
13  the entity itself, has been found guilty of, regardless of
14  adjudication, or entered a plea of nolo contendere, or guilty,
15  to:
16         (a)  Fraud;
17         (b)  Violation of federal or state antitrust statutes,
18  including those proscribing price fixing between competitors
19  and the allocation of customers among competitors;
20         (c)  Commission of a felony involving embezzlement,
21  theft, forgery, income tax evasion, bribery, falsification or
22  destruction of records, making false statements, receiving
23  stolen property, making false claims, or obstruction of
24  justice; or
25         (d)  Any crime in any jurisdiction which directly
26  relates to the provision of health services on a prepaid or
27  fixed-sum basis.
28         (9)  The agency, after notifying the Legislature, may
29  apply for waivers of applicable federal laws and regulations
30  as necessary to implement more appropriate systems of health
31  care for Medicaid recipients and reduce the cost of the
                                  24
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    CS for SB 390                                  First Engrossed
 1  Medicaid program to the state and federal governments and
 2  shall implement such programs, after legislative approval,
 3  within a reasonable period of time after federal approval.
 4  These programs must be designed primarily to reduce the need
 5  for inpatient care, custodial care and other long-term or
 6  institutional care, and other high-cost services.
 7         (a)  Prior to seeking legislative approval of such a
 8  waiver as authorized by this subsection, the agency shall
 9  provide notice and an opportunity for public comment.  Notice
10  shall be provided to all persons who have made requests of the
11  agency for advance notice and shall be published in the
12  Florida Administrative Weekly not less than 28 days prior to
13  the intended action.
14         (b)  Notwithstanding s. 216.292, funds that are
15  appropriated to the Department of Elderly Affairs for the
16  Assisted Living for the Elderly Medicaid waiver and are not
17  expended shall be transferred to the agency to fund
18  Medicaid-reimbursed nursing home care.
19         (10)  The agency shall establish a postpayment
20  utilization control program designed to identify recipients
21  who may inappropriately overuse or underuse Medicaid services
22  and shall provide methods to correct such misuse.
23         (11)  The agency shall develop and provide coordinated
24  systems of care for Medicaid recipients and may contract with
25  public or private entities to develop and administer such
26  systems of care among public and private health care providers
27  in a given geographic area.
28         (12)  The agency shall operate or contract for the
29  operation of utilization management and incentive systems
30  designed to encourage cost-effective use services.
31  
                                  25
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    CS for SB 390                                  First Engrossed
 1         (13)(a)  The agency shall operate the Comprehensive
 2  Assessment and Review (CARES) nursing facility preadmission
 3  screening program to ensure that Medicaid payment for nursing
 4  facility care is made only for individuals whose conditions
 5  require such care and to ensure that long-term care services
 6  are provided in the setting most appropriate to the needs of
 7  the person and in the most economical manner possible. The
 8  CARES program shall also ensure that individuals participating
 9  in Medicaid home and community-based waiver programs meet
10  criteria for those programs, consistent with approved federal
11  waivers.
12         (b)  The agency shall operate the CARES program through
13  an interagency agreement with the Department of Elderly
14  Affairs.
15         (c)  Prior to making payment for nursing facility
16  services for a Medicaid recipient, the agency must verify that
17  the nursing facility preadmission screening program has
18  determined that the individual requires nursing facility care
19  and that the individual cannot be safely served in
20  community-based programs. The nursing facility preadmission
21  screening program shall refer a Medicaid recipient to a
22  community-based program if the individual could be safely
23  served at a lower cost and the recipient chooses to
24  participate in such program.
25         (d)  By January 1 of each year, the agency shall submit
26  a report to the Legislature and the Office of Long-Term-Care
27  Policy describing the operations of the CARES program. The
28  report must describe:
29         1.  Rate of diversion to community alternative
30  programs;
31  
                                  26
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    CS for SB 390                                  First Engrossed
 1         2.  CARES program staffing needs to achieve additional
 2  diversions;
 3         3.  Reasons the program is unable to place individuals
 4  in less restrictive settings when such individuals desired
 5  such services and could have been served in such settings;
 6         4.  Barriers to appropriate placement, including
 7  barriers due to policies or operations of other agencies or
 8  state-funded programs; and
 9         5.  Statutory changes necessary to ensure that
10  individuals in need of long-term care services receive care in
11  the least restrictive environment.
12         (14)(a)  The agency shall identify health care
13  utilization and price patterns within the Medicaid program
14  which are not cost-effective or medically appropriate and
15  assess the effectiveness of new or alternate methods of
16  providing and monitoring service, and may implement such
17  methods as it considers appropriate. Such methods may include
18  disease management initiatives, an integrated and systematic
19  approach for managing the health care needs of recipients who
20  are at risk of or diagnosed with a specific disease by using
21  best practices, prevention strategies, clinical-practice
22  improvement, clinical interventions and protocols, outcomes
23  research, information technology, and other tools and
24  resources to reduce overall costs and improve measurable
25  outcomes.
26         (b)  The responsibility of the agency under this
27  subsection shall include the development of capabilities to
28  identify actual and optimal practice patterns; patient and
29  provider educational initiatives; methods for determining
30  patient compliance with prescribed treatments; fraud, waste,
31  
                                  27
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    CS for SB 390                                  First Engrossed
 1  and abuse prevention and detection programs; and beneficiary
 2  case management programs.
 3         1.  The practice pattern identification program shall
 4  evaluate practitioner prescribing patterns based on national
 5  and regional practice guidelines, comparing practitioners to
 6  their peer groups. The agency and its Drug Utilization Review
 7  Board shall consult with a panel of practicing health care
 8  professionals consisting of the following: the Speaker of the
 9  House of Representatives and the President of the Senate shall
10  each appoint three physicians licensed under chapter 458 or
11  chapter 459; and the Governor shall appoint two pharmacists
12  licensed under chapter 465 and one dentist licensed under
13  chapter 466 who is an oral surgeon. Terms of the panel members
14  shall expire at the discretion of the appointing official. The
15  panel shall begin its work by August 1, 1999, regardless of
16  the number of appointments made by that date. The advisory
17  panel shall be responsible for evaluating treatment guidelines
18  and recommending ways to incorporate their use in the practice
19  pattern identification program. Practitioners who are
20  prescribing inappropriately or inefficiently, as determined by
21  the agency, may have their prescribing of certain drugs
22  subject to prior authorization.
23         2.  The agency shall also develop educational
24  interventions designed to promote the proper use of
25  medications by providers and beneficiaries.
26         3.  The agency shall implement a pharmacy fraud, waste,
27  and abuse initiative that may include a surety bond or letter
28  of credit requirement for participating pharmacies, enhanced
29  provider auditing practices, the use of additional fraud and
30  abuse software, recipient management programs for
31  beneficiaries inappropriately using their benefits, and other
                                  28
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    CS for SB 390                                  First Engrossed
 1  steps that will eliminate provider and recipient fraud, waste,
 2  and abuse. The initiative shall address enforcement efforts to
 3  reduce the number and use of counterfeit prescriptions.
 4         4.  By September 30, 2002, the agency shall contract
 5  with an entity in the state to implement a wireless handheld
 6  clinical pharmacology drug information database for
 7  practitioners. The initiative shall be designed to enhance the
 8  agency's efforts to reduce fraud, abuse, and errors in the
 9  prescription drug benefit program and to otherwise further the
10  intent of this paragraph.
11         5.  The agency may apply for any federal waivers needed
12  to implement this paragraph.
13         (15)  An entity contracting on a prepaid or fixed-sum
14  basis shall, in addition to meeting any applicable statutory
15  surplus requirements, also maintain at all times in the form
16  of cash, investments that mature in less than 180 days
17  allowable as admitted assets by the Department of Insurance,
18  and restricted funds or deposits controlled by the agency or
19  the Department of Insurance, a surplus amount equal to
20  one-and-one-half times the entity's monthly Medicaid prepaid
21  revenues. As used in this subsection, the term "surplus" means
22  the entity's total assets minus total liabilities. If an
23  entity's surplus falls below an amount equal to
24  one-and-one-half times the entity's monthly Medicaid prepaid
25  revenues, the agency shall prohibit the entity from engaging
26  in marketing and preenrollment activities, shall cease to
27  process new enrollments, and shall not renew the entity's
28  contract until the required balance is achieved.  The
29  requirements of this subsection do not apply:
30         (a)  Where a public entity agrees to fund any deficit
31  incurred by the contracting entity; or
                                  29
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    CS for SB 390                                  First Engrossed
 1         (b)  Where the entity's performance and obligations are
 2  guaranteed in writing by a guaranteeing organization which:
 3         1.  Has been in operation for at least 5 years and has
 4  assets in excess of $50 million; or
 5         2.  Submits a written guarantee acceptable to the
 6  agency which is irrevocable during the term of the contracting
 7  entity's contract with the agency and, upon termination of the
 8  contract, until the agency receives proof of satisfaction of
 9  all outstanding obligations incurred under the contract.
10         (16)(a)  The agency may require an entity contracting
11  on a prepaid or fixed-sum basis to establish a restricted
12  insolvency protection account with a federally guaranteed
13  financial institution licensed to do business in this state.
14  The entity shall deposit into that account 5 percent of the
15  capitation payments made by the agency each month until a
16  maximum total of 2 percent of the total current contract
17  amount is reached. The restricted insolvency protection
18  account may be drawn upon with the authorized signatures of
19  two persons designated by the entity and two representatives
20  of the agency. If the agency finds that the entity is
21  insolvent, the agency may draw upon the account solely with
22  the two authorized signatures of representatives of the
23  agency, and the funds may be disbursed to meet financial
24  obligations incurred by the entity under the prepaid contract.
25  If the contract is terminated, expired, or not continued, the
26  account balance must be released by the agency to the entity
27  upon receipt of proof of satisfaction of all outstanding
28  obligations incurred under this contract.
29         (b)  The agency may waive the insolvency protection
30  account requirement in writing when evidence is on file with
31  the agency of adequate insolvency insurance and reinsurance
                                  30
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    CS for SB 390                                  First Engrossed
 1  that will protect enrollees if the entity becomes unable to
 2  meet its obligations.
 3         (17)  An entity that contracts with the agency on a
 4  prepaid or fixed-sum basis for the provision of Medicaid
 5  services shall reimburse any hospital or physician that is
 6  outside the entity's authorized geographic service area as
 7  specified in its contract with the agency, and that provides
 8  services authorized by the entity to its members, at a rate
 9  negotiated with the hospital or physician for the provision of
10  services or according to the lesser of the following:
11         (a)  The usual and customary charges made to the
12  general public by the hospital or physician; or
13         (b)  The Florida Medicaid reimbursement rate
14  established for the hospital or physician.
15         (18)  When a merger or acquisition of a Medicaid
16  prepaid contractor has been approved by the Department of
17  Insurance pursuant to s. 628.4615, the agency shall approve
18  the assignment or transfer of the appropriate Medicaid prepaid
19  contract upon request of the surviving entity of the merger or
20  acquisition if the contractor and the other entity have been
21  in good standing with the agency for the most recent 12-month
22  period, unless the agency determines that the assignment or
23  transfer would be detrimental to the Medicaid recipients or
24  the Medicaid program.  To be in good standing, an entity must
25  not have failed accreditation or committed any material
26  violation of the requirements of s. 641.52 and must meet the
27  Medicaid contract requirements.  For purposes of this section,
28  a merger or acquisition means a change in controlling interest
29  of an entity, including an asset or stock purchase.
30         (19)  Any entity contracting with the agency pursuant
31  to this section to provide health care services to Medicaid
                                  31
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    CS for SB 390                                  First Engrossed
 1  recipients is prohibited from engaging in any of the following
 2  practices or activities:
 3         (a)  Practices that are discriminatory, including, but
 4  not limited to, attempts to discourage participation on the
 5  basis of actual or perceived health status.
 6         (b)  Activities that could mislead or confuse
 7  recipients, or misrepresent the organization, its marketing
 8  representatives, or the agency. Violations of this paragraph
 9  include, but are not limited to:
10         1.  False or misleading claims that marketing
11  representatives are employees or representatives of the state
12  or county, or of anyone other than the entity or the
13  organization by whom they are reimbursed.
14         2.  False or misleading claims that the entity is
15  recommended or endorsed by any state or county agency, or by
16  any other organization which has not certified its endorsement
17  in writing to the entity.
18         3.  False or misleading claims that the state or county
19  recommends that a Medicaid recipient enroll with an entity.
20         4.  Claims that a Medicaid recipient will lose benefits
21  under the Medicaid program, or any other health or welfare
22  benefits to which the recipient is legally entitled, if the
23  recipient does not enroll with the entity.
24         (c)  Granting or offering of any monetary or other
25  valuable consideration for enrollment, except as authorized by
26  subsection (21).
27         (d)  Door-to-door solicitation of recipients who have
28  not contacted the entity or who have not invited the entity to
29  make a presentation.
30         (e)  Solicitation of Medicaid recipients by marketing
31  representatives stationed in state offices unless approved and
                                  32
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    CS for SB 390                                  First Engrossed
 1  supervised by the agency or its agent and approved by the
 2  affected state agency when solicitation occurs in an office of
 3  the state agency.  The agency shall ensure that marketing
 4  representatives stationed in state offices shall market their
 5  managed care plans to Medicaid recipients only in designated
 6  areas and in such a way as to not interfere with the
 7  recipients' activities in the state office.
 8         (f)  Enrollment of Medicaid recipients.
 9         (20)  The agency may impose a fine for a violation of
10  this section or the contract with the agency by a person or
11  entity that is under contract with the agency.  With respect
12  to any nonwillful violation, such fine shall not exceed $2,500
13  per violation.  In no event shall such fine exceed an
14  aggregate amount of $10,000 for all nonwillful violations
15  arising out of the same action.  With respect to any knowing
16  and willful violation of this section or the contract with the
17  agency, the agency may impose a fine upon the entity in an
18  amount not to exceed $20,000 for each such violation.  In no
19  event shall such fine exceed an aggregate amount of $100,000
20  for all knowing and willful violations arising out of the same
21  action.
22         (21)  A health maintenance organization or a person or
23  entity exempt from chapter 641 that is under contract with the
24  agency for the provision of health care services to Medicaid
25  recipients may not use or distribute marketing materials used
26  to solicit Medicaid recipients, unless such materials have
27  been approved by the agency. The provisions of this subsection
28  do not apply to general advertising and marketing materials
29  used by a health maintenance organization to solicit both
30  non-Medicaid subscribers and Medicaid recipients.
31  
                                  33
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    CS for SB 390                                  First Engrossed
 1         (22)  Upon approval by the agency, health maintenance
 2  organizations and persons or entities exempt from chapter 641
 3  that are under contract with the agency for the provision of
 4  health care services to Medicaid recipients may be permitted
 5  within the capitation rate to provide additional health
 6  benefits that the agency has found are of high quality, are
 7  practicably available, provide reasonable value to the
 8  recipient, and are provided at no additional cost to the
 9  state.
10         (23)  The agency shall utilize the statewide health
11  maintenance organization complaint hotline for the purpose of
12  investigating and resolving Medicaid and prepaid health plan
13  complaints, maintaining a record of complaints and confirmed
14  problems, and receiving disenrollment requests made by
15  recipients.
16         (24)  The agency shall require the publication of the
17  health maintenance organization's and the prepaid health
18  plan's consumer services telephone numbers and the "800"
19  telephone number of the statewide health maintenance
20  organization complaint hotline on each Medicaid identification
21  card issued by a health maintenance organization or prepaid
22  health plan contracting with the agency to serve Medicaid
23  recipients and on each subscriber handbook issued to a
24  Medicaid recipient.
25         (25)  The agency shall establish a health care quality
26  improvement system for those entities contracting with the
27  agency pursuant to this section, incorporating all the
28  standards and guidelines developed by the Medicaid Bureau of
29  the Health Care Financing Administration as a part of the
30  quality assurance reform initiative.  The system shall
31  include, but need not be limited to, the following:
                                  34
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    CS for SB 390                                  First Engrossed
 1         (a)  Guidelines for internal quality assurance
 2  programs, including standards for:
 3         1.  Written quality assurance program descriptions.
 4         2.  Responsibilities of the governing body for
 5  monitoring, evaluating, and making improvements to care.
 6         3.  An active quality assurance committee.
 7         4.  Quality assurance program supervision.
 8         5.  Requiring the program to have adequate resources to
 9  effectively carry out its specified activities.
10         6.  Provider participation in the quality assurance
11  program.
12         7.  Delegation of quality assurance program activities.
13         8.  Credentialing and recredentialing.
14         9.  Enrollee rights and responsibilities.
15         10.  Availability and accessibility to services and
16  care.
17         11.  Ambulatory care facilities.
18         12.  Accessibility and availability of medical records,
19  as well as proper recordkeeping and process for record review.
20         13.  Utilization review.
21         14.  A continuity of care system.
22         15.  Quality assurance program documentation.
23         16.  Coordination of quality assurance activity with
24  other management activity.
25         17.  Delivering care to pregnant women and infants; to
26  elderly and disabled recipients, especially those who are at
27  risk of institutional placement; to persons with developmental
28  disabilities; and to adults who have chronic, high-cost
29  medical conditions.
30         (b)  Guidelines which require the entities to conduct
31  quality-of-care studies which:
                                  35
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    CS for SB 390                                  First Engrossed
 1         1.  Target specific conditions and specific health
 2  service delivery issues for focused monitoring and evaluation.
 3         2.  Use clinical care standards or practice guidelines
 4  to objectively evaluate the care the entity delivers or fails
 5  to deliver for the targeted clinical conditions and health
 6  services delivery issues.
 7         3.  Use quality indicators derived from the clinical
 8  care standards or practice guidelines to screen and monitor
 9  care and services delivered.
10         (c)  Guidelines for external quality review of each
11  contractor which require: focused studies of patterns of care;
12  individual care review in specific situations; and followup
13  activities on previous pattern-of-care study findings and
14  individual-care-review findings.  In designing the external
15  quality review function and determining how it is to operate
16  as part of the state's overall quality improvement system, the
17  agency shall construct its external quality review
18  organization and entity contracts to address each of the
19  following:
20         1.  Delineating the role of the external quality review
21  organization.
22         2.  Length of the external quality review organization
23  contract with the state.
24         3.  Participation of the contracting entities in
25  designing external quality review organization review
26  activities.
27         4.  Potential variation in the type of clinical
28  conditions and health services delivery issues to be studied
29  at each plan.
30         5.  Determining the number of focused pattern-of-care
31  studies to be conducted for each plan.
                                  36
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    CS for SB 390                                  First Engrossed
 1         6.  Methods for implementing focused studies.
 2         7.  Individual care review.
 3         8.  Followup activities.
 4         (26)  In order to ensure that children receive health
 5  care services for which an entity has already been
 6  compensated, an entity contracting with the agency pursuant to
 7  this section shall achieve an annual Early and Periodic
 8  Screening, Diagnosis, and Treatment (EPSDT) Service screening
 9  rate of at least 60 percent for those recipients continuously
10  enrolled for at least 8 months. The agency shall develop a
11  method by which the EPSDT screening rate shall be calculated.
12  For any entity which does not achieve the annual 60 percent
13  rate, the entity must submit a corrective action plan for the
14  agency's approval.  If the entity does not meet the standard
15  established in the corrective action plan during the specified
16  timeframe, the agency is authorized to impose appropriate
17  contract sanctions.  At least annually, the agency shall
18  publicly release the EPSDT Services screening rates of each
19  entity it has contracted with on a prepaid basis to serve
20  Medicaid recipients.
21         (27)  The agency shall perform enrollments and
22  disenrollments for Medicaid recipients who are eligible for
23  MediPass or managed care plans. Notwithstanding the
24  prohibition contained in paragraph (18)(f), managed care plans
25  may perform preenrollments of Medicaid recipients under the
26  supervision of the agency or its agents. For the purposes of
27  this section, "preenrollment" means the provision of marketing
28  and educational materials to a Medicaid recipient and
29  assistance in completing the application forms, but shall not
30  include actual enrollment into a managed care plan.  An
31  application for enrollment shall not be deemed complete until
                                  37
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    CS for SB 390                                  First Engrossed
 1  the agency or its agent verifies that the recipient made an
 2  informed, voluntary choice.  The agency, in cooperation with
 3  the Department of Children and Family Services, may test new
 4  marketing initiatives to inform Medicaid recipients about
 5  their managed care options at selected sites. The agency shall
 6  report to the Legislature on the effectiveness of such
 7  initiatives. The agency may contract with a third party to
 8  perform managed care plan and MediPass enrollment and
 9  disenrollment services for Medicaid recipients and is
10  authorized to adopt rules to implement such services. The
11  agency may adjust the capitation rate only to cover the costs
12  of a third-party enrollment and disenrollment contract, and
13  for agency supervision and management of the managed care plan
14  enrollment and disenrollment contract.
15         (28)  Any lists of providers made available to Medicaid
16  recipients, MediPass enrollees, or managed care plan enrollees
17  shall be arranged alphabetically showing the provider's name
18  and specialty and, separately, by specialty in alphabetical
19  order.
20         (29)  The agency shall establish an enhanced managed
21  care quality assurance oversight function, to include at least
22  the following components:
23         (a)  At least quarterly analysis and followup,
24  including sanctions as appropriate, of managed care
25  participant utilization of services.
26         (b)  At least quarterly analysis and followup,
27  including sanctions as appropriate, of quality findings of the
28  Medicaid peer review organization and other external quality
29  assurance programs.
30  
31  
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    CS for SB 390                                  First Engrossed
 1         (c)  At least quarterly analysis and followup,
 2  including sanctions as appropriate, of the fiscal viability of
 3  managed care plans.
 4         (d)  At least quarterly analysis and followup,
 5  including sanctions as appropriate, of managed care
 6  participant satisfaction and disenrollment surveys.
 7         (e)  The agency shall conduct regular and ongoing
 8  Medicaid recipient satisfaction surveys.
 9  
10  The analyses and followup activities conducted by the agency
11  under its enhanced managed care quality assurance oversight
12  function shall not duplicate the activities of accreditation
13  reviewers for entities regulated under part III of chapter
14  641, but may include a review of the finding of such
15  reviewers.
16         (30)  Each managed care plan that is under contract
17  with the agency to provide health care services to Medicaid
18  recipients shall annually conduct a background check with the
19  Florida Department of Law Enforcement of all persons with
20  ownership interest of 5 percent or more or executive
21  management responsibility for the managed care plan and shall
22  submit to the agency information concerning any such person
23  who has been found guilty of, regardless of adjudication, or
24  has entered a plea of nolo contendere or guilty to, any of the
25  offenses listed in s. 435.03.
26         (31)  The agency shall, by rule, develop a process
27  whereby a Medicaid managed care plan enrollee who wishes to
28  enter hospice care may be disenrolled from the managed care
29  plan within 24 hours after contacting the agency regarding
30  such request. The agency rule shall include a methodology for
31  the agency to recoup managed care plan payments on a pro rata
                                  39
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    CS for SB 390                                  First Engrossed
 1  basis if payment has been made for the enrollment month when
 2  disenrollment occurs.
 3         (32)  The agency and entities which contract with the
 4  agency to provide health care services to Medicaid recipients
 5  under this section or s. 409.9122 must comply with the
 6  provisions of s. 641.513 in providing emergency services and
 7  care to Medicaid recipients and MediPass recipients.
 8         (33)  All entities providing health care services to
 9  Medicaid recipients shall make available, and encourage all
10  pregnant women and mothers with infants to receive, and
11  provide documentation in the medical records to reflect, the
12  following:
13         (a)  Healthy Start prenatal or infant screening.
14         (b)  Healthy Start care coordination, when screening or
15  other factors indicate need.
16         (c)  Healthy Start enhanced services in accordance with
17  the prenatal or infant screening results.
18         (d)  Immunizations in accordance with recommendations
19  of the Advisory Committee on Immunization Practices of the
20  United States Public Health Service and the American Academy
21  of Pediatrics, as appropriate.
22         (e)  Counseling and services for family planning to all
23  women and their partners.
24         (f)  A scheduled postpartum visit for the purpose of
25  voluntary family planning, to include discussion of all
26  methods of contraception, as appropriate.
27         (g)  Referral to the Special Supplemental Nutrition
28  Program for Women, Infants, and Children (WIC).
29         (34)  Any entity that provides Medicaid prepaid health
30  plan services shall ensure the appropriate coordination of
31  health care services with an assisted living facility in cases
                                  40
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    CS for SB 390                                  First Engrossed
 1  where a Medicaid recipient is both a member of the entity's
 2  prepaid health plan and a resident of the assisted living
 3  facility. If the entity is at risk for Medicaid targeted case
 4  management and behavioral health services, the entity shall
 5  inform the assisted living facility of the procedures to
 6  follow should an emergent condition arise.
 7         (35)  The agency may seek and implement federal waivers
 8  necessary to provide for cost-effective purchasing of home
 9  health services, private duty nursing services,
10  transportation, independent laboratory services, and durable
11  medical equipment and supplies through competitive bidding
12  pursuant to s. 287.057. The agency may request appropriate
13  waivers from the federal Health Care Financing Administration
14  in order to competitively bid such services. The agency may
15  exclude providers not selected through the bidding process
16  from the Medicaid provider network.
17         (36)  The Agency for Health Care Administration is
18  directed to issue a request for proposal or intent to
19  negotiate to implement on a demonstration basis an outpatient
20  specialty services pilot project in a rural and urban county
21  in the state.  As used in this subsection, the term
22  "outpatient specialty services" means clinical laboratory,
23  diagnostic imaging, and specified home medical services to
24  include durable medical equipment, prosthetics and orthotics,
25  and infusion therapy.
26         (a)  The entity that is awarded the contract to provide
27  Medicaid managed care outpatient specialty services must, at a
28  minimum, meet the following criteria:
29         1.  The entity must be licensed by the Department of
30  Insurance under part II of chapter 641.
31  
                                  41
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    CS for SB 390                                  First Engrossed
 1         2.  The entity must be experienced in providing
 2  outpatient specialty services.
 3         3.  The entity must demonstrate to the satisfaction of
 4  the agency that it provides high-quality services to its
 5  patients.
 6         4.  The entity must demonstrate that it has in place a
 7  complaints and grievance process to assist Medicaid recipients
 8  enrolled in the pilot managed care program to resolve
 9  complaints and grievances.
10         (b)  The pilot managed care program shall operate for a
11  period of 3 years.  The objective of the pilot program shall
12  be to determine the cost-effectiveness and effects on
13  utilization, access, and quality of providing outpatient
14  specialty services to Medicaid recipients on a prepaid,
15  capitated basis.
16         (c)  The agency shall conduct a quality assurance
17  review of the prepaid health clinic each year that the
18  demonstration program is in effect. The prepaid health clinic
19  is responsible for all expenses incurred by the agency in
20  conducting a quality assurance review.
21         (d)  The entity that is awarded the contract to provide
22  outpatient specialty services to Medicaid recipients shall
23  report data required by the agency in a format specified by
24  the agency, for the purpose of conducting the evaluation
25  required in paragraph (e).
26         (e)  The agency shall conduct an evaluation of the
27  pilot managed care program and report its findings to the
28  Governor and the Legislature by no later than January 1, 2001.
29         (37)  The agency shall enter into agreements with
30  not-for-profit organizations based in this state for the
31  purpose of providing vision screening.
                                  42
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    CS for SB 390                                  First Engrossed
 1         (38)(a)  The agency shall implement a Medicaid
 2  prescribed-drug spending-control program that includes the
 3  following components:
 4         1.  Medicaid prescribed-drug coverage for brand-name
 5  drugs for adult Medicaid recipients is limited to the
 6  dispensing of four brand-name drugs per month per recipient.
 7  Children are exempt from this restriction. Antiretroviral
 8  agents are excluded from this limitation. No requirements for
 9  prior authorization or other restrictions on medications used
10  to treat mental illnesses such as schizophrenia, severe
11  depression, or bipolar disorder may be imposed on Medicaid
12  recipients. Medications that will be available without
13  restriction for persons with mental illnesses include atypical
14  antipsychotic medications, conventional antipsychotic
15  medications, selective serotonin reuptake inhibitors, and
16  other medications used for the treatment of serious mental
17  illnesses. The agency shall also limit the amount of a
18  prescribed drug dispensed to no more than a 34-day supply. The
19  agency shall continue to provide unlimited generic drugs,
20  contraceptive drugs and items, and diabetic supplies. Although
21  a drug may be included on the preferred drug formulary, it
22  would not be exempt from the four-brand limit. The agency may
23  authorize exceptions to the brand-name-drug restriction based
24  upon the treatment needs of the patients, only when such
25  exceptions are based on prior consultation provided by the
26  agency or an agency contractor, but the agency must establish
27  procedures to ensure that:
28         a.  There will be a response to a request for prior
29  consultation by telephone or other telecommunication device
30  within 24 hours after receipt of a request for prior
31  consultation;
                                  43
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    CS for SB 390                                  First Engrossed
 1         b.  A 72-hour supply of the drug prescribed will be
 2  provided in an emergency or when the agency does not provide a
 3  response within 24 hours as required by sub-subparagraph a.;
 4  and
 5         c.  Except for the exception for nursing home residents
 6  and other institutionalized adults and Except for drugs on the
 7  restricted formulary for which prior authorization may be
 8  sought by an institutional or community pharmacy, prior
 9  authorization for an exception to the brand-name-drug
10  restriction is sought by the prescriber and not by the
11  pharmacy. When prior authorization is granted for a patient in
12  an institutional setting beyond the brand-name-drug
13  restriction, such approval is authorized for 12 months and
14  monthly prior authorization is not required for that patient.
15         2.  Reimbursement to pharmacies for Medicaid prescribed
16  drugs shall be set at the average wholesale price less 13.25
17  percent.
18         3.  The agency shall develop and implement a process
19  for managing the drug therapies of Medicaid recipients who are
20  using significant numbers of prescribed drugs each month. The
21  management process may include, but is not limited to,
22  comprehensive, physician-directed medical-record reviews,
23  claims analyses, and case evaluations to determine the medical
24  necessity and appropriateness of a patient's treatment plan
25  and drug therapies. The agency may contract with a private
26  organization to provide drug-program-management services. The
27  Medicaid drug benefit management program shall include
28  initiatives to manage drug therapies for HIV/AIDS patients,
29  patients using 20 or more unique prescriptions in a 180-day
30  period, and the top 1,000 patients in annual spending.
31  
                                  44
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    CS for SB 390                                  First Engrossed
 1         4.  The agency may limit the size of its pharmacy
 2  network based on need, competitive bidding, price
 3  negotiations, credentialing, or similar criteria. The agency
 4  shall give special consideration to rural areas in determining
 5  the size and location of pharmacies included in the Medicaid
 6  pharmacy network. A pharmacy credentialing process may include
 7  criteria such as a pharmacy's full-service status, location,
 8  size, patient educational programs, patient consultation,
 9  disease-management services, and other characteristics. The
10  agency may impose a moratorium on Medicaid pharmacy enrollment
11  when it is determined that it has a sufficient number of
12  Medicaid-participating providers.
13         5.  The agency shall develop and implement a program
14  that requires Medicaid practitioners who prescribe drugs to
15  use a counterfeit-proof prescription pad for Medicaid
16  prescriptions. The agency shall require the use of
17  standardized counterfeit-proof prescription pads by
18  Medicaid-participating prescribers or prescribers who write
19  prescriptions for Medicaid recipients. The agency may
20  implement the program in targeted geographic areas or
21  statewide.
22         6.  The agency may enter into arrangements that require
23  manufacturers of generic drugs prescribed to Medicaid
24  recipients to provide rebates of at least 15.1 percent of the
25  average manufacturer price for the manufacturer's generic
26  products. These arrangements shall require that if a
27  generic-drug manufacturer pays federal rebates for
28  Medicaid-reimbursed drugs at a level below 15.1 percent, the
29  manufacturer must provide a supplemental rebate to the state
30  in an amount necessary to achieve a 15.1-percent rebate level.
31  
                                  45
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    CS for SB 390                                  First Engrossed
 1         7.  The agency may establish a preferred drug formulary
 2  in accordance with 42 U.S.C. s. 1396r-8, and, pursuant to the
 3  establishment of such formulary, it is authorized to negotiate
 4  supplemental rebates from manufacturers that are in addition
 5  to those required by Title XIX of the Social Security Act and
 6  at no less than 10 percent of the average manufacturer price
 7  as defined in 42 U.S.C. s. 1936 on the last day of a quarter
 8  unless the federal or supplemental rebate, or both, equals or
 9  exceeds 25 percent. There is no upper limit on the
10  supplemental rebates the agency may negotiate. The agency may
11  determine that specific products, brand-name or generic, are
12  competitive at lower rebate percentages. Agreement to pay the
13  minimum supplemental rebate percentage will guarantee a
14  manufacturer that the Medicaid Pharmaceutical and Therapeutics
15  Committee will consider a product for inclusion on the
16  preferred drug formulary. However, a pharmaceutical
17  manufacturer is not guaranteed placement on the formulary by
18  simply paying the minimum supplemental rebate. Agency
19  decisions will be made on the clinical efficacy of a drug and
20  recommendations of the Medicaid Pharmaceutical and
21  Therapeutics Committee, as well as the price of competing
22  products minus federal and state rebates. The agency is
23  authorized to contract with an outside agency or contractor to
24  conduct negotiations for supplemental rebates. For the
25  purposes of this section, the term "supplemental rebates" may
26  include, at the agency's discretion, cash rebates and other
27  program benefits that offset a Medicaid expenditure. Effective
28  July 1, 2003, value-added programs as a substitution for
29  supplemental rebates are prohibited. Such other program
30  benefits may include, but are not limited to, disease
31  management programs, drug product donation programs, drug
                                  46
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    CS for SB 390                                  First Engrossed
 1  utilization control programs, prescriber and beneficiary
 2  counseling and education, fraud and abuse initiatives, and
 3  other services or administrative investments with guaranteed
 4  savings to the Medicaid program in the same year the rebate
 5  reduction is included in the General Appropriations Act. The
 6  agency is authorized to seek any federal waivers to implement
 7  this initiative.
 8         8.  The agency shall establish an advisory committee
 9  for the purposes of studying the feasibility of using a
10  restricted drug formulary for nursing home residents and other
11  institutionalized adults. The committee shall be comprised of
12  seven members appointed by the Secretary of Health Care
13  Administration. The committee members shall include two
14  physicians licensed under chapter 458 or chapter 459; three
15  pharmacists licensed under chapter 465 and appointed from a
16  list of recommendations provided by the Florida Long-Term Care
17  Pharmacy Alliance; and two pharmacists licensed under chapter
18  465.
19         9.  The Agency for Health Care Administration shall
20  expand home delivery of pharmacy products. To assist Medicaid
21  patients in securing their prescriptions and reduce program
22  costs, the agency shall expand its current mail-order-pharmacy
23  diabetes-supply program to include all generic and brand-name
24  drugs used by Medicaid patients with diabetes. Medicaid
25  recipients in the current program may obtain nondiabetes drugs
26  on a voluntary basis. This initiative is limited to the
27  geographic area covered by the current contract. The agency
28  may seek and implement any federal waivers necessary to
29  implement this subparagraph.
30         (b)  The agency shall implement this subsection to the
31  extent that funds are appropriated to administer the Medicaid
                                  47
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    CS for SB 390                                  First Engrossed
 1  prescribed-drug spending-control program. The agency may
 2  contract all or any part of this program to private
 3  organizations.
 4         (c)  The agency shall submit quarterly reports to the
 5  Governor, the President of the Senate, and the Speaker of the
 6  House of Representatives which must include, but need not be
 7  limited to, the progress made in implementing this subsection
 8  and its effect on Medicaid prescribed-drug expenditures.
 9         (39)  Notwithstanding the provisions of chapter 287,
10  the agency may, at its discretion, renew a contract or
11  contracts for fiscal intermediary services one or more times
12  for such periods as the agency may decide; however, all such
13  renewals may not combine to exceed a total period longer than
14  the term of the original contract.
15         (40)  The agency shall provide for the development of a
16  demonstration project by establishment in Miami-Dade County of
17  a long-term-care facility licensed pursuant to chapter 395 to
18  improve access to health care for a predominantly minority,
19  medically underserved, and medically complex population and to
20  evaluate alternatives to nursing home care and general acute
21  care for such population.  Such project is to be located in a
22  health care condominium and colocated with licensed facilities
23  providing a continuum of care.  The establishment of this
24  project is not subject to the provisions of s. 408.036 or s.
25  408.039.  The agency shall report its findings to the
26  Governor, the President of the Senate, and the Speaker of the
27  House of Representatives by January 1, 2003.
28         Section 7.  Paragraphs (f) and (k) of subsection (2) of
29  section 409.9122, Florida Statutes, are amended to read:
30         409.9122  Mandatory Medicaid managed care enrollment;
31  programs and procedures.--
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    CS for SB 390                                  First Engrossed
 1         (2)
 2         (f)  When a Medicaid recipient does not choose a
 3  managed care plan or MediPass provider, the agency shall
 4  assign the Medicaid recipient to a managed care plan or
 5  MediPass provider. Medicaid recipients who are subject to
 6  mandatory assignment but who fail to make a choice shall be
 7  assigned to managed care plans until an enrollment of 40 45
 8  percent in MediPass and 60 55 percent in managed care plans is
 9  achieved. Once this enrollment is achieved, the assignments
10  shall be divided in order to maintain an enrollment in
11  MediPass and managed care plans which is in a 40 45 percent
12  and 60 55 percent proportion, respectively. Thereafter,
13  assignment of Medicaid recipients who fail to make a choice
14  shall be based proportionally on the preferences of recipients
15  who have made a choice in the previous period. Such
16  proportions shall be revised at least quarterly to reflect an
17  update of the preferences of Medicaid recipients. The agency
18  shall disproportionately assign Medicaid-eligible recipients
19  who are required to but have failed to make a choice of
20  managed care plan or MediPass, including children, and who are
21  to be assigned to the MediPass program to children's networks
22  as described in s. 409.912(3)(g), Children's Medical Services
23  network as defined in s. 391.021, exclusive provider
24  organizations, provider service networks, minority physician
25  networks, and pediatric emergency department diversion
26  programs authorized by this chapter or the General
27  Appropriations Act, in such manner as the agency deems
28  appropriate, until the agency has determined that the networks
29  and programs have sufficient numbers to be economically
30  operated. For purposes of this paragraph, when referring to
31  assignment, the term "managed care plans" includes health
                                  49
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    CS for SB 390                                  First Engrossed
 1  maintenance organizations, exclusive provider organizations,
 2  provider service networks, minority physician networks,
 3  Children's Medical Services network, and pediatric emergency
 4  department diversion programs authorized by this chapter or
 5  the General Appropriations Act. Beginning July 1, 2002, the
 6  agency shall assign all children in families who have not made
 7  a choice of a managed care plan or MediPass in the required
 8  timeframe to a pediatric emergency room diversion program
 9  described in s. 409.912(3)(g) that, as of July 1, 2002, has
10  executed a contract with the agency, until such network or
11  program has reached an enrollment of 15,000 children. Once
12  that minimum enrollment level has been reached, the agency
13  shall assign children who have not chosen a managed care plan
14  or MediPass to the network or program in a manner that
15  maintains the minimum enrollment in the network or program at
16  not less than 15,000 children. To the extent practicable, the
17  agency shall also assign all eligible children in the same
18  family to such network or program. When making assignments,
19  the agency shall take into account the following criteria:
20         1.  A managed care plan has sufficient network capacity
21  to meet the need of members.
22         2.  The managed care plan or MediPass has previously
23  enrolled the recipient as a member, or one of the managed care
24  plan's primary care providers or MediPass providers has
25  previously provided health care to the recipient.
26         3.  The agency has knowledge that the member has
27  previously expressed a preference for a particular managed
28  care plan or MediPass provider as indicated by Medicaid
29  fee-for-service claims data, but has failed to make a choice.
30  
31  
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    CS for SB 390                                  First Engrossed
 1         4.  The managed care plan's or MediPass primary care
 2  providers are geographically accessible to the recipient's
 3  residence.
 4         (k)  When a Medicaid recipient does not choose a
 5  managed care plan or MediPass provider, the agency shall
 6  assign the Medicaid recipient to a managed care plan, except
 7  in those counties in which there are fewer than two managed
 8  care plans accepting Medicaid enrollees, in which case
 9  assignment shall be to a managed care plan or a MediPass
10  provider. Medicaid recipients in counties with fewer than two
11  managed care plans accepting Medicaid enrollees who are
12  subject to mandatory assignment but who fail to make a choice
13  shall be assigned to managed care plans until an enrollment of
14  40 45 percent in MediPass and 60 55 percent in managed care
15  plans is achieved. Once that enrollment is achieved, the
16  assignments shall be divided in order to maintain an
17  enrollment in MediPass and managed care plans which is in a 40
18  45 percent and 60 55 percent proportion, respectively. In
19  geographic areas where the agency is contracting for the
20  provision of comprehensive behavioral health services through
21  a capitated prepaid arrangement, recipients who fail to make a
22  choice shall be assigned equally to MediPass or a managed care
23  plan. For purposes of this paragraph, when referring to
24  assignment, the term "managed care plans" includes exclusive
25  provider organizations, provider service networks, Children's
26  Medical Services network, minority physician networks, and
27  pediatric emergency department diversion programs authorized
28  by this chapter or the General Appropriations Act. When making
29  assignments, the agency shall take into account the following
30  criteria:
31  
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    CS for SB 390                                  First Engrossed
 1         1.  A managed care plan has sufficient network capacity
 2  to meet the need of members.
 3         2.  The managed care plan or MediPass has previously
 4  enrolled the recipient as a member, or one of the managed care
 5  plan's primary care providers or MediPass providers has
 6  previously provided health care to the recipient.
 7         3.  The agency has knowledge that the member has
 8  previously expressed a preference for a particular managed
 9  care plan or MediPass provider as indicated by Medicaid
10  fee-for-service claims data, but has failed to make a choice.
11         4.  The managed care plan's or MediPass primary care
12  providers are geographically accessible to the recipient's
13  residence.
14         5.  The agency has authority to make mandatory
15  assignments based on quality of service and performance of
16  managed care plans.
17         Section 8.  Subsection (2) of section 409.915, Florida
18  Statutes, is amended to read:
19         409.915  County contributions to Medicaid.--Although
20  the state is responsible for the full portion of the state
21  share of the matching funds required for the Medicaid program,
22  in order to acquire a certain portion of these funds, the
23  state shall charge the counties for certain items of care and
24  service as provided in this section.
25         (2)  A county's participation must be 35 percent of the
26  total cost, or the applicable discounted cost paid by the
27  state for Medicaid recipients enrolled in health maintenance
28  organizations or prepaid health plans, of providing the items
29  listed in subsection (1), except that the payments for items
30  listed in paragraph (1)(b) may not exceed $70 $55 per month
31  per person.
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    CS for SB 390                                  First Engrossed
 1         Section 9.  Paragraph (q) of subsection (2) of section
 2  409.815, Florida Statutes, is amended to read:
 3         409.815  Health benefits coverage; limitations.--
 4         (2)  BENCHMARK BENEFITS.--In order for health benefits
 5  coverage to qualify for premium assistance payments for an
 6  eligible child under ss. 409.810-409.820, the health benefits
 7  coverage, except for coverage under Medicaid and Medikids,
 8  must include the following minimum benefits, as medically
 9  necessary.
10         (q)  Dental services.--Subject to a specific
11  appropriation for this benefit, Covered services include those
12  dental services provided to children by the Florida Medicaid
13  program under s. 409.906(5), up to a maximum benefit of $750
14  per enrollee per year.
15         Section 10.  (1)  Notwithstanding section 409.911(3),
16  Florida Statutes, for the state fiscal year 2003-2004 only,
17  the agency shall distribute moneys under the regular
18  disproportionate share program only to hospitals that meet the
19  federal minimum requirements and to public hospitals. Public
20  hospitals are defined as those hospitals identified as
21  government owned or operated in the Financial Hospital Uniform
22  Reporting System (FHURS) data available to the agency as of
23  January 1, 2002. The following methodology shall be used to
24  distribute disproportionate share dollars to hospitals that
25  meet the federal minimum requirements and to the public
26  hospitals:
27         (a)  For hospitals that meet the federal minimum
28  requirements and do not qualify as a public hospital, the
29  following formula shall be used:
30  
31  DSHP = (HMD/TMSD)*$1 million
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    CS for SB 390                                  First Engrossed
 1  
 2  DSHP = disproportionate share hospital payment.
 3  HMD = hospital Medicaid days.
 4  TSD = total state Medicaid days.
 5  
 6         (b)  The following formulas shall be used to pay
 7  disproportionate share dollars to public hospitals:
 8         1.  For state mental health hospitals:
 9  
10  DSHP = (HMD/TMDMH) * TAAMH
11  
12  The total amount available for the state mental health
13  hospitals shall be the difference between the federal cap for
14  Institutions for Mental Diseases and the amounts paid under
15  the mental health disproportionate share program.
16         2.  For non-state government owned or operated
17  hospitals with 3,200 or more Medicaid days:
18  
19  DSHP = [(.82*HCCD/TCCD) + (.18*HMD/TMD)] * TAAPH
20  TAAPH = TAA - TAAMH
21  
22         3.  For non-state government owned or operated
23  hospitals with less than 3,200 Medicaid days, a total of
24  $400,000 shall be distributed equally among these hospitals.
25  
26  Where:
27  
28  TAA = total available appropriation.
29  TAAPH = total amount available for public hospitals.
30  TAAMH = total amount available for mental health hospitals.
31  DSHP = disproportionate share hospital payments.
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    CS for SB 390                                  First Engrossed
 1  HMD = hospital Medicaid days.
 2  TMDMH = total state Medicaid days for mental health days.
 3  TMD = total state Medicaid days for public hospitals.
 4  HCCD = hospital charity care dollars.
 5  TCCD = total state charity care dollars for public non-state
 6  hospitals.
 7  
 8  In computing the above amounts for public hospitals and
 9  hospitals that qualify under the federal minimum requirements,
10  the agency shall use the 1997 audited data. In the event there
11  is no complete 1997 audited data for a hospital, the agency
12  shall use the 1994 audited data.
13         (2)  Notwithstanding section 409.9112, Florida
14  Statutes, for state fiscal year 2003-2004, only
15  disproportionate share payments to regional perinatal
16  intensive care centers shall be distributed in the same
17  proportion as the disproportionate share payments made to the
18  regional perinatal intensive care centers in the state fiscal
19  year 2001-2002.
20         (3)  Notwithstanding section 409.9117, Florida
21  Statutes, for state fiscal year 2003-2004 only,
22  disproportionate share payments to hospitals that qualify for
23  primary care disproportionate share payments shall be
24  distributed in the same proportion as the primary care
25  disproportionate share payments made to those hospitals in the
26  state fiscal year 2001-2002.
27         (4)  For state fiscal year 2003-2004 only, no
28  disproportionate share payments for specialty hospitals for
29  children shall be made to hospitals under the provisions of
30  section 409.9119, Florida Statutes.
31         (5)  This section is repealed on July 1, 2004.
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    CS for SB 390                                  First Engrossed
 1         Section 11.  The Legislature finds and declares that
 2  this act fulfills an important state interest.
 3         Section 12.  Sections 1, 2, 3, 4, 8, and 11 of this
 4  act, and the part of section 6 of this act which amends the
 5  introductory portion of section 409.912, Florida Statutes,
 6  shall not take effect if one or more bills enacted during the
 7  2003 legislative session, or an extension thereof, become law
 8  which increase receipts to the General Revenue Fund in an
 9  amount sufficient to support contingent appropriations in the
10  2003-2004 General Appropriations Act to:
11         (1)  Increase certified nursing assistant staffing to
12  2.9 hours of direct care per resident per day, effective
13  January 1, 2004;
14         (2)  Provide Medicaid coverage for adults under the
15  Medically Needy Program;
16         (3)  Provide Medicaid coverage for adult emergency
17  dental, visual, and hearing services;
18         (4)  Not implement step-therapy protocols for Cox II
19  drugs; and
20         (5)  Continue county contributions for Medicaid nursing
21  home care at the current level rather than an increased level.
22         Section 13.  Except as otherwise expressly provided in
23  this act, this act shall take effect July 1, 2003.
24  
25  
26  
27  
28  
29  
30  
31  
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