Senate Bill sb1276e1
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    CS for SB 1276                           First Engrossed (ntc)
  1                      A bill to be entitled
  2         An act relating to health care; amending s.
  3         216.341, F.S.; clarifying that certain
  4         provisions relate to the disbursement of trust
  5         funds of the Department of Health, not county
  6         health department trust funds; providing that
  7         certain limitations on the number of authorized
  8         positions do not apply to positions in the
  9         Department of Health funded by specified
10         sources; amending s. 400.23, F.S.; reducing the
11         nursing home staffing requirement for certified
12         nursing assistants; amending s. 409.814, F.S.,
13         as amended, relating to eligibility for the
14         Florida KidCare program; providing that a child
15         who is otherwise disqualified based on a
16         preexisting medical condition shall be eligible
17         when enrollment is possible; amending s.
18         409.903, F.S.; amending income levels that
19         determine the eligibility of pregnant women and
20         children under 1 year of age for mandatory
21         medical assistance; amending s. 409.904, F.S.;
22         clarifying Medicaid recipients' responsibility
23         for the cost of nursing home care; providing
24         limitations on the care available to certain
25         persons under "medically needy" coverage;
26         amending income levels that determine the
27         eligibility of children under 1 year of age for
28         optional medical assistance; amending s.
29         409.905, F.S.; deleting an obsolete reference;
30         establishing a utilization-management program
31         for private duty nursing for children and
                                  1
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    CS for SB 1276                           First Engrossed (ntc)
 1         hospital neonatal intensive-care stays;
 2         establishing a hospitalist program; eliminating
 3         transportation services for nondisabled
 4         beneficiaries; authorizing the Agency for
 5         Health Care Administration to contract for
 6         transportation services; amending s. 409.906,
 7         F.S.; allowing the consolidation of certain
 8         services; authorizing the implementation of a
 9         home-based and community-based services
10         utilization-management program; specifying the
11         income standard for hospice care; amending s.
12         409.9065, F.S.; allowing the Agency for Health
13         Care Administration to operate a limited
14         pharmaceutical expense assistance program under
15         specified conditions; providing limitations on
16         benefits under the program; providing for
17         copayments; amending s. 409.907, F.S.;
18         clarifying that Medicaid provider network
19         status is not an entitlement; amending s.
20         409.911, F.S.; establishing the Medicaid
21         Disproportionate Share Council; amending s.
22         409.912, F.S.; reducing payment for
23         pharmaceutical ingredient prices; expanding the
24         existing pharmaceutical supplemental rebate
25         threshold to a minimum of 27 percent;
26         authorizing a return and reuse prescription
27         drug program; allowing for utilization
28         management and prior authorization for certain
29         categories of drugs; limiting allowable monthly
30         dosing of drugs that enhance or enable sexual
31         performance; modifying Medicaid prescribed drug
                                  2
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    CS for SB 1276                           First Engrossed (ntc)
 1         coverage to allow for preferred daily dosages
 2         of certain select pharmaceuticals; authorizing
 3         a prior-authorization program for the off-label
 4         use of Medicaid prescribed pharmaceuticals;
 5         adopting an algorithm-based treatment protocol
 6         for select mental health disorders; requiring
 7         the agency to implement a behavioral health
 8         drug management program financed through an
 9         agreement with pharmaceutical manufacturers;
10         providing contract requirements and program
11         requirements; providing for application of
12         certain drug limits and prior-authorization
13         requirements if the agency is unable to
14         negotiate a contract; allowing for limitation
15         of the Medicaid provider networks; amending s.
16         409.9122, F.S.; revising prerequisites to
17         mandatory assignment; specifying managed care
18         enrollment in certain areas of the state;
19         requiring certain Medicaid applicants to select
20         a managed care plan at the time of application;
21         eliminating the exclusion of special hospital
22         payments from rates for health maintenance
23         organizations; providing technical updates;
24         amending ss. 430.204 and 430.205, F.S.;
25         rescinding the expiration of certain funding
26         provisions relating to
27         community-care-for-the-elderly core services
28         and to the community care service system;
29         amending s. 624.91, F.S., the Florida Healthy
30         Kids Corporation Act; deleting certain
31         eligibility requirements for state-funded
                                  3
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    CS for SB 1276                           First Engrossed (ntc)
 1         assistance in paying premiums for the Florida
 2         Healthy Kids program; requiring purchases to be
 3         made in a manner consistent with delivering
 4         accessible medical care; providing an effective
 5         date.
 6  
 7  Be It Enacted by the Legislature of the State of Florida:
 8  
 9         Section 1.  Section 216.341, Florida Statutes, is
10  amended to read:
11         216.341  Disbursement of Department of Health county
12  health department trust funds; appropriation of authorized
13  positions.--
14         (1)  County health department trust funds may be
15  expended by the Department of Health for the respective county
16  health departments in accordance with budgets and plans agreed
17  upon by the county authorities of each county and the
18  Department of Health.
19         (2)  The requirement limitations on appropriations
20  provided in s. 216.262(1) shall not apply to Department of
21  Health positions funded by:
22         (a)  County health department trust funds; or.
23         (b)  The United States Trust Fund.
24         Section 2.  Effective May 1, 2004, paragraph (a) of
25  subsection (3) of section 400.23, Florida Statutes, is amended
26  to read:
27         400.23  Rules; evaluation and deficiencies; licensure
28  status.--
29         (3)(a)  The agency shall adopt rules providing for the
30  minimum staffing standards requirements for nursing homes.
31  These standards requirements shall require include, in for
                                  4
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    CS for SB 1276                           First Engrossed (ntc)
 1  each nursing home facility, a minimum certified nursing
 2  assistant staffing of 2.3 hours of direct care per resident
 3  per day beginning January 1, 2002, and increasing to 2.6 hours
 4  of direct care per resident per day beginning January 1, 2003,
 5  and increasing to 2.9 hours of direct care per resident per
 6  day beginning May 1, 2004. Beginning January 1, 2002, no
 7  facility shall staff below one certified nursing assistant per
 8  20 residents, and a minimum licensed nursing staffing of 1.0
 9  hour of direct resident care per resident per day but never
10  below one licensed nurse per 40 residents. Nursing assistants
11  employed never below one licensed nurse per 40 residents.
12  Nursing assistants employed under s. 400.211(2) may be
13  included in computing the staffing ratio for certified nursing
14  assistants only if they provide nursing assistance services to
15  residents on a full-time basis. Each nursing home must
16  document compliance with staffing standards as required under
17  this paragraph and post daily the names of staff on duty for
18  the benefit of facility residents and the public. The agency
19  shall recognize the use of licensed nurses for compliance with
20  minimum staffing requirements for certified nursing
21  assistants, provided that the facility otherwise meets the
22  minimum staffing requirements for licensed nurses and that the
23  licensed nurses so recognized are performing the duties of a
24  certified nursing assistant. Unless otherwise approved by the
25  agency, licensed nurses counted towards the minimum staffing
26  requirements for certified nursing assistants must exclusively
27  perform the duties of a certified nursing assistant for the
28  entire shift and shall not also be counted towards the minimum
29  staffing requirements for licensed nurses. If the agency
30  approved a facility's request to use a licensed nurse to
31  perform both licensed nursing and certified nursing assistant
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    CS for SB 1276                           First Engrossed (ntc)
 1  duties, the facility must allocate the amount of staff time
 2  specifically spent on each set of certified nursing assistant
 3  duties for the purpose of documenting compliance with minimum
 4  staffing requirements for certified and licensed nursing
 5  staff. In no event may the hours of a licensed nurse with dual
 6  job responsibilities be counted twice.
 7         Section 3.  Section 409.814, Florida Statutes, as
 8  amended by CS for SB 2000, 1st engrossed, is amended to read:
 9         409.814  Eligibility.--A child who has not reached 19
10  years of age whose family income is equal to or below 200
11  percent of the federal poverty level is eligible for the
12  Florida KidCare program as provided in this section. A child
13  who is otherwise eligible for KidCare and who has a
14  preexisting condition that prevents coverage under another
15  insurance plan as described in subsection (4) which would have
16  disqualified the child for KidCare if the child were able to
17  enroll in the plan shall be eligible for KidCare coverage when
18  enrollment is possible. For enrollment in the Children's
19  Medical Services network, a complete application includes the
20  medical or behavioral health screening. If, subsequently, an
21  individual is determined to be ineligible for coverage, he or
22  she must immediately be disenrolled from the respective
23  Florida KidCare program component.
24         (1)  A child who is eligible for Medicaid coverage
25  under s. 409.903 or s. 409.904 must be enrolled in Medicaid
26  and is not eligible to receive health benefits under any other
27  health benefits coverage authorized under the Florida KidCare
28  program.
29         (2)  A child who is not eligible for Medicaid, but who
30  is eligible for the Florida KidCare program, may obtain health
31  benefits coverage under any of the other components listed in
                                  6
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    CS for SB 1276                           First Engrossed (ntc)
 1  s. 409.813 if such coverage is approved and available in the
 2  county in which the child resides. However, a child who is
 3  eligible for Medikids may participate in the Florida Healthy
 4  Kids program only if the child has a sibling participating in
 5  the Florida Healthy Kids program and the child's county of
 6  residence permits such enrollment.
 7         (3)  A child who is eligible for the Florida KidCare
 8  program who is a child with special health care needs, as
 9  determined through a medical or behavioral screening
10  instrument, is eligible for health benefits coverage from and
11  shall be referred to the Children's Medical Services network.
12         (4)  The following children are not eligible to receive
13  premium assistance for health benefits coverage under the
14  Florida KidCare program, except under Medicaid if the child
15  would have been eligible for Medicaid under s. 409.903 or s.
16  409.904 as of June 1, 1997:
17         (a)  A child who is eligible for coverage under a state
18  health benefit plan on the basis of a family member's
19  employment with a public agency in the state.
20         (b)  A child who is currently eligible for or covered
21  under a family member's group health benefit plan or under
22  other employer health insurance coverage, excluding coverage
23  provided under the Florida Healthy Kids Corporation as
24  established under s. 624.91, provided that the cost of the
25  child's participation is not greater than 5 percent of the
26  family's income. This provision shall be applied during
27  redetermination for children who were enrolled prior to July
28  1, 2004. These enrollees shall have 6 months of eligibility
29  following redetermination to allow for a transition to the
30  other health benefit plan.
31  
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    CS for SB 1276                           First Engrossed (ntc)
 1         (c)  A child who is seeking premium assistance for the
 2  Florida KidCare program through employer-sponsored group
 3  coverage, if the child has been covered by the same employer's
 4  group coverage during the 6 months prior to the family's
 5  submitting an application for determination of eligibility
 6  under the program.
 7         (d)  A child who is an alien, but who does not meet the
 8  definition of qualified alien, in the United States.
 9         (e)  A child who is an inmate of a public institution
10  or a patient in an institution for mental diseases.
11         (f)  A child who has had his or her coverage in an
12  employer-sponsored health benefit plan voluntarily canceled in
13  the last 6 months, except those children who were on the
14  waiting list prior to January 31, 2004.
15         (5)  A child whose family income is above 200 percent
16  of the federal poverty level or a child who is excluded under
17  the provisions of subsection (4) may participate in the
18  Florida KidCare program, excluding the Medicaid program, but
19  is subject to the following provisions:
20         (a)  The family is not eligible for premium assistance
21  payments and must pay the full cost of the premium, including
22  any administrative costs.
23         (b)  The agency is authorized to place limits on
24  enrollment in Medikids by these children in order to avoid
25  adverse selection. The number of children participating in
26  Medikids whose family income exceeds 200 percent of the
27  federal poverty level must not exceed 10 percent of total
28  enrollees in the Medikids program.
29         (c)  The board of directors of the Florida Healthy Kids
30  Corporation is authorized to place limits on enrollment of
31  these children in order to avoid adverse selection. In
                                  8
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    CS for SB 1276                           First Engrossed (ntc)
 1  addition, the board is authorized to offer a reduced benefit
 2  package to these children in order to limit program costs for
 3  such families. The number of children participating in the
 4  Florida Healthy Kids program whose family income exceeds 200
 5  percent of the federal poverty level must not exceed 10
 6  percent of total enrollees in the Florida Healthy Kids
 7  program.
 8         (d)  Children described in this subsection are not
 9  counted in the annual enrollment ceiling for the Florida
10  KidCare program.
11         (6)  Once a child is enrolled in the Florida KidCare
12  program, the child is eligible for coverage under the program
13  for 6 months without a redetermination or reverification of
14  eligibility, if the family continues to pay the applicable
15  premium. Eligibility for program components funded through
16  Title XXI of the Social Security Act shall terminate when a
17  child attains the age of 19. Effective January 1, 1999, a
18  child who has not attained the age of 5 and who has been
19  determined eligible for the Medicaid program is eligible for
20  coverage for 12 months without a redetermination or
21  reverification of eligibility.
22         (7)  When determining or reviewing a child's
23  eligibility under the Florida KidCare program, the applicant
24  shall be provided with reasonable notice of changes in
25  eligibility which may affect enrollment in one or more of the
26  program components. When a transition from one program
27  component to another is authorized, there shall be cooperation
28  between the program components and the affected family which
29  promotes continuity of health care coverage. Any authorized
30  transfers must be managed within the program's overall
31  appropriated or authorized levels of funding. Each component
                                  9
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    CS for SB 1276                           First Engrossed (ntc)
 1  of the program shall establish a reserve to ensure that
 2  transfers between components will be accomplished within
 3  current year appropriations. These reserves shall be reviewed
 4  by each convening of the Social Services Estimating Conference
 5  to determine the adequacy of such reserves to meet actual
 6  experience.
 7         (8)  In determining the eligibility of a child, an
 8  assets test is not required. Each applicant shall provide
 9  written documentation during the application process and the
10  redetermination process, including, but not limited to, the
11  following:
12         (a)  Proof of family income supported by copies of any
13  federal income tax return for the prior year, any wages and
14  earnings statements (W-2 forms), and any other appropriate
15  document.
16         (b)  A statement from all family members that:
17         1.  Their employer does not sponsor a health benefit
18  plan for employees; or
19         2.  The potential enrollee is not covered by the
20  employer-sponsored health benefit plan because the potential
21  enrollee is not eligible for coverage, or, if the potential
22  enrollee is eligible but not covered, a statement of the cost
23  to enroll the potential enrollee in the employer-sponsored
24  health benefit plan.
25         (9)  Subject to paragraph (4)(b) and s. 624.91(3), the
26  Florida KidCare program shall withhold benefits from an
27  enrollee if the program obtains evidence that the enrollee is
28  no longer eligible, submitted incorrect or fraudulent
29  information in order to establish eligibility, or failed to
30  provide verification of eligibility. The applicant or enrollee
31  shall be notified that because of such evidence program
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    CS for SB 1276                           First Engrossed (ntc)
 1  benefits will be withheld unless the applicant or enrollee
 2  contacts a designated representative of the program by a
 3  specified date, which must be within 10 days after the date of
 4  notice, to discuss and resolve the matter. The program shall
 5  make every effort to resolve the matter within a timeframe
 6  that will not cause benefits to be withheld from an eligible
 7  enrollee.
 8         (10)  The following individuals may be subject to
 9  prosecution in accordance with s. 414.39:
10         (a)  An applicant obtaining or attempting to obtain
11  benefits for a potential enrollee under the Florida KidCare
12  program when the applicant knows or should have known the
13  potential enrollee does not qualify for the Florida KidCare
14  program.
15         (b)  An individual who assists an applicant in
16  obtaining or attempting to obtain benefits for a potential
17  enrollee under the Florida KidCare program when the individual
18  knows or should have known the potential enrollee does not
19  qualify for the Florida KidCare program.
20         Section 4.  Subsection (5) of section 409.903, Florida
21  Statutes, is amended to read:
22         409.903  Mandatory payments for eligible persons.--The
23  agency shall make payments for medical assistance and related
24  services on behalf of the following persons who the
25  department, or the Social Security Administration by contract
26  with the Department of Children and Family Services,
27  determines to be eligible, subject to the income, assets, and
28  categorical eligibility tests set forth in federal and state
29  law.  Payment on behalf of these Medicaid eligible persons is
30  subject to the availability of moneys and any limitations
31  established by the General Appropriations Act or chapter 216.
                                  11
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    CS for SB 1276                           First Engrossed (ntc)
 1         (5)  Effective October 1, 2004, a pregnant woman for
 2  the duration of her pregnancy and for the postpartum period as
 3  defined in federal law and rule, or a child under age 1, if
 4  either is living in a family that has an income which is at or
 5  below 150 percent of the most current federal poverty level,
 6  or, effective January 1, 1992, that has an income which is at
 7  or below 185 percent of the most current federal poverty
 8  level. Such a person is not subject to an assets test.
 9  Further, a pregnant woman who applies for eligibility for the
10  Medicaid program through a qualified Medicaid provider must be
11  offered the opportunity, subject to federal rules, to be made
12  presumptively eligible for the Medicaid program.
13         Section 5.  Subsections (2), (3), and (8) of section
14  409.904, Florida Statutes, are amended to read:
15         409.904  Optional payments for eligible persons.--The
16  agency may make payments for medical assistance and related
17  services on behalf of the following persons who are determined
18  to be eligible subject to the income, assets, and categorical
19  eligibility tests set forth in federal and state law.  Payment
20  on behalf of these Medicaid eligible persons is subject to the
21  availability of moneys and any limitations established by the
22  General Appropriations Act or chapter 216.
23         (2)  A family, a pregnant woman, a child under age 21,
24  a person age 65 or over, or a blind or disabled person, who
25  would be eligible under any group listed in s. 409.903(1),
26  (2), or (3), except that the income or assets of such family
27  or person exceed established limitations. For a family or
28  person in one of these coverage groups, medical expenses are
29  deductible from income in accordance with federal requirements
30  in order to make a determination of eligibility. Children and
31  pregnant women A family or person eligible under the coverage
                                  12
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    CS for SB 1276                           First Engrossed (ntc)
 1  known as the "medically needy," are is eligible to receive the
 2  same services as other Medicaid recipients, with the exception
 3  of services in skilled nursing facilities and intermediate
 4  care facilities for the developmentally disabled. Effective
 5  January 1, 2005, parents or caretaker relatives of children
 6  eligible under the coverage known as "medically needy" and
 7  aged, blind, or disabled persons eligible under such coverage
 8  are limited to pharmacy services only.
 9         (3)  A person who is in need of the services of a
10  licensed nursing facility, a licensed intermediate care
11  facility for the developmentally disabled, or a state mental
12  hospital, whose income does not exceed 300 percent of the SSI
13  income standard, and who meets the assets standards
14  established under federal and state law. In determining the
15  person's responsibility for the cost of care, the following
16  amounts must be deducted from the person's income:
17         (a)  The monthly personal allowance for residents as
18  set based on appropriations.
19         (b)  The reasonable costs of medically necessary
20  services and supplies that are not reimbursable by the
21  Medicaid program.
22         (c)  The cost of premiums, copayments, coinsurance, and
23  deductibles for supplemental health insurance.
24         (8)  Effective October 1, 2004, a child under 1 year of
25  age who lives in a family that has an income above 150 185
26  percent of the most recently published federal poverty level,
27  but which is at or below 200 percent of such poverty level. In
28  determining the eligibility of such child, an assets test is
29  not required. A child who is eligible for Medicaid under this
30  subsection must be offered the opportunity, subject to federal
31  rules, to be made presumptively eligible.
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    CS for SB 1276                           First Engrossed (ntc)
 1         Section 6.  Section 409.905, Florida Statutes, is
 2  amended to read:
 3         409.905  Mandatory Medicaid services.--The agency may
 4  make payments for the following services, which are required
 5  of the state by Title XIX of the Social Security Act,
 6  furnished by Medicaid providers to recipients who are
 7  determined to be eligible on the dates on which the services
 8  were provided. Any service under this section shall be
 9  provided only when medically necessary and in accordance with
10  state and federal law. Mandatory services rendered by
11  providers in mobile units to Medicaid recipients may be
12  restricted by the agency. Nothing in this section shall be
13  construed to prevent or limit the agency from adjusting fees,
14  reimbursement rates, lengths of stay, number of visits, number
15  of services, or any other adjustments necessary to comply with
16  the availability of moneys and any limitations or directions
17  provided for in the General Appropriations Act or chapter 216.
18         (1)  ADVANCED REGISTERED NURSE PRACTITIONER
19  SERVICES.--The agency shall pay for services provided to a
20  recipient by a licensed advanced registered nurse practitioner
21  who has a valid collaboration agreement with a licensed
22  physician on file with the Department of Health or who
23  provides anesthesia services in accordance with established
24  protocol required by state law and approved by the medical
25  staff of the facility in which the anesthetic service is
26  performed. Reimbursement for such services must be provided in
27  an amount that equals not less than 80 percent of the
28  reimbursement to a physician who provides the same services,
29  unless otherwise provided for in the General Appropriations
30  Act.
31  
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    CS for SB 1276                           First Engrossed (ntc)
 1         (2)  EARLY AND PERIODIC SCREENING, DIAGNOSIS, AND
 2  TREATMENT SERVICES.--The agency shall pay for early and
 3  periodic screening and diagnosis of a recipient under age 21
 4  to ascertain physical and mental problems and conditions and
 5  provide treatment to correct or ameliorate these problems and
 6  conditions.  These services include all services determined by
 7  the agency to be medically necessary for the treatment,
 8  correction, or amelioration of these problems, including
 9  personal care, private duty nursing, durable medical
10  equipment, physical therapy, occupational therapy, speech
11  therapy, respiratory therapy, and immunizations.
12         (3)  FAMILY PLANNING SERVICES.--The agency shall pay
13  for services necessary to enable a recipient voluntarily to
14  plan family size or to space children. These services include
15  information; education; counseling regarding the availability,
16  benefits, and risks of each method of pregnancy prevention;
17  drugs and supplies; and necessary medical care and followup.
18  Each recipient participating in the family planning portion of
19  the Medicaid program must be provided freedom to choose any
20  alternative method of family planning, as required by federal
21  law.
22         (4)  HOME HEALTH CARE SERVICES.--The agency shall pay
23  for nursing and home health aide services, supplies,
24  appliances, and durable medical equipment, necessary to assist
25  a recipient living at home. An entity that provides services
26  pursuant to this subsection shall be licensed under part IV of
27  chapter 400 or part II of chapter 499, if appropriate.  These
28  services, equipment, and supplies, or reimbursement therefor,
29  may be limited as provided in the General Appropriations Act
30  and do not include services, equipment, or supplies provided
31  to a person residing in a hospital or nursing facility.
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    CS for SB 1276                           First Engrossed (ntc)
 1         (a)  In providing home health care services, the agency
 2  may require prior authorization of care based on diagnosis.
 3         (b)  Effective November 1, 2004, the agency shall
 4  implement a comprehensive utilization program that requires
 5  prior authorization of all private duty nursing services for
 6  children, including children served by the Department of
 7  Health's Children's Medical Services program. The agency may
 8  competitively bid a contract to select a qualified
 9  organization to provide such services. The agency may seek
10  federal waiver approval as necessary to implement this policy.
11         (5)  HOSPITAL INPATIENT SERVICES.--The agency shall pay
12  for all covered services provided for the medical care and
13  treatment of a recipient who is admitted as an inpatient by a
14  licensed physician or dentist to a hospital licensed under
15  part I of chapter 395.  However, the agency shall limit the
16  payment for inpatient hospital services for a Medicaid
17  recipient 21 years of age or older to 45 days or the number of
18  days specified in the annual necessary to comply with the
19  General Appropriations Act.
20         (a)  The agency is authorized to implement
21  reimbursement and utilization management reforms in order to
22  comply with any limitations or directions in the General
23  Appropriations Act, which may include, but are not limited to:
24  prior authorization for inpatient psychiatric days; prior
25  authorization for nonemergency hospital inpatient admissions
26  for individuals 21 years of age and older; authorization of
27  emergency and urgent-care admissions within 24 hours after
28  admission; enhanced utilization and concurrent review programs
29  for highly utilized services; reduction or elimination of
30  covered days of service; adjusting reimbursement ceilings for
31  variable costs; adjusting reimbursement ceilings for fixed and
                                  16
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    CS for SB 1276                           First Engrossed (ntc)
 1  property costs; and implementing target rates of increase. The
 2  agency may limit prior authorization for hospital inpatient
 3  services to selected diagnosis-related groups, based on an
 4  analysis of the cost and potential for unnecessary
 5  hospitalizations represented by certain diagnoses. Admissions
 6  for normal delivery and newborns are exempt from requirements
 7  for prior authorization. In implementing the provisions of
 8  this section related to prior authorization, the agency shall
 9  ensure that the process for authorization is accessible 24
10  hours per day, 7 days per week and authorization is
11  automatically granted when not denied within 4 hours after the
12  request. Authorization procedures must include steps for
13  review of denials. Upon implementing the prior authorization
14  program for hospital inpatient services, the agency shall
15  discontinue its hospital retrospective review program.
16         (b)  A licensed hospital maintained primarily for the
17  care and treatment of patients having mental disorders or
18  mental diseases is not eligible to participate in the hospital
19  inpatient portion of the Medicaid program except as provided
20  in federal law.  However, subject to federal Medicaid waiver
21  approval, the agency may pay for the department shall apply
22  for a waiver, within 9 months after June 5, 1991, designed to
23  provide hospitalization services for mental health reasons to
24  children and adults in the most cost-effective and lowest cost
25  setting possible.  Such waiver shall include a request for the
26  opportunity to pay for care in hospitals known under federal
27  law as "institutions for mental disease" or "IMD's."  The
28  waiver proposal shall propose no additional aggregate cost to
29  the state or Federal Government, and shall be conducted in
30  Hillsborough County, Highlands County, Hardee County, Manatee
31  County, and Polk County.  The waiver proposal may incorporate
                                  17
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    CS for SB 1276                           First Engrossed (ntc)
 1  competitive bidding for hospital services, comprehensive
 2  brokering, prepaid capitated arrangements, or other mechanisms
 3  deemed by the agency department to show promise in reducing
 4  the cost of acute care and increasing the effectiveness of
 5  preventive care.  When developing The waiver proposal, the
 6  department shall take into account price, quality,
 7  accessibility, linkages of the hospital to community services
 8  and family support programs, plans of the hospital to ensure
 9  the earliest discharge possible, and the comprehensiveness of
10  the mental health and other health care services offered by
11  participating providers.
12         (c)  The agency for Health Care Administration shall
13  adjust a hospital's current inpatient per diem rate to reflect
14  the cost of serving the Medicaid population at that
15  institution if:
16         1.  The hospital experiences an increase in Medicaid
17  caseload by more than 25 percent in any year, primarily
18  resulting from the closure of a hospital in the same service
19  area occurring after July 1, 1995;
20         2.  The hospital's Medicaid per diem rate is at least
21  25 percent below the Medicaid per patient cost for that year;
22  or
23         3.  The hospital is located in a county that has five
24  or fewer hospitals, began offering obstetrical services on or
25  after September 1999, and has submitted a request in writing
26  to the agency for a rate adjustment after July 1, 2000, but
27  before September 30, 2000, in which case such hospital's
28  Medicaid inpatient per diem rate shall be adjusted to cost,
29  effective July 1, 2002.
30  
31  
                                  18
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    CS for SB 1276                           First Engrossed (ntc)
 1  No later than October 1 of each year, the agency must provide
 2  estimated costs for any adjustment in a hospital inpatient per
 3  diem pursuant to this paragraph to the Executive Office of the
 4  Governor, the House of Representatives General Appropriations
 5  Committee, and the Senate Appropriations Committee. Before the
 6  agency implements a change in a hospital's inpatient per diem
 7  rate pursuant to this paragraph, the Legislature must have
 8  specifically appropriated sufficient funds in the General
 9  Appropriations Act to support the increase in cost as
10  estimated by the agency.
11         (d)  Effective September 1, 2004, the agency shall
12  implement a hospitalist program in certain high-volume
13  participating hospitals, in select counties or statewide.  The
14  program shall require hospitalists to authorize and manage
15  Medicaid recipients' hospital admissions and lengths of stay.
16  Individuals who are dually eligible for Medicare and Medicaid
17  are exempted from this requirement.  Medicaid participating
18  physicians and other practitioners with hospital admitting
19  privileges shall coordinate and review admissions of Medicaid
20  beneficiaries with the hospitalist.  The agency may
21  competitively bid a contract for selection of a qualified
22  organization to provide hospitalist services.  The agency may
23  seek federal waiver approval as necessary to implement this
24  policy.
25         (e)  Effective November 1, 2004, the agency shall
26  implement a comprehensive utilization management program for
27  hospital neonatal intensive care stays in certain high-volume
28  Medicaid participating hospitals, in select counties or
29  statewide, and shall replace existing hospital inpatient
30  utilization management programs.  The program shall be
31  designed to manage the lengths of stay for children being
                                  19
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    CS for SB 1276                           First Engrossed (ntc)
 1  treated in neonatal intensive care units and must seek the
 2  earliest medically appropriate discharge to the child's home
 3  or other less costly treatment setting.  The agency may
 4  competitively bid a contract for selection of a qualified
 5  organization to provide neonatal intensive care utilization
 6  management services.  The agency may seek federal waiver
 7  approval as necessary to implement this policy.
 8         (6)  HOSPITAL OUTPATIENT SERVICES.--The agency shall
 9  pay for preventive, diagnostic, therapeutic, or palliative
10  care and other services provided to a recipient in the
11  outpatient portion of a hospital licensed under part I of
12  chapter 395, and provided under the direction of a licensed
13  physician or licensed dentist, except that payment for such
14  care and services is limited to $1,500 per state fiscal year
15  per recipient, unless an exception has been made by the
16  agency, and with the exception of a Medicaid recipient under
17  age 21, in which case the only limitation is medical
18  necessity.
19         (7)  INDEPENDENT LABORATORY SERVICES.--The agency shall
20  pay for medically necessary diagnostic laboratory procedures
21  ordered by a licensed physician or other licensed practitioner
22  of the healing arts which are provided for a recipient in a
23  laboratory that meets the requirements for Medicare
24  participation and is licensed under chapter 483, if required.
25         (8)  NURSING FACILITY SERVICES.--The agency shall pay
26  for 24-hour-a-day nursing and rehabilitative services for a
27  recipient in a nursing facility licensed under part II of
28  chapter 400 or in a rural hospital, as defined in s. 395.602,
29  or in a Medicare certified skilled nursing facility operated
30  by a hospital, as defined by s. 395.002(11), that is licensed
31  under part I of chapter 395, and in accordance with provisions
                                  20
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    CS for SB 1276                           First Engrossed (ntc)
 1  set forth in s. 409.908(2)(a), which services are ordered by
 2  and provided under the direction of a licensed physician.
 3  However, if a nursing facility has been destroyed or otherwise
 4  made uninhabitable by natural disaster or other emergency and
 5  another nursing facility is not available, the agency must pay
 6  for similar services temporarily in a hospital licensed under
 7  part I of chapter 395 provided federal funding is approved and
 8  available.
 9         (9)  PHYSICIAN SERVICES.--The agency shall pay for
10  covered services and procedures rendered to a recipient by, or
11  under the personal supervision of, a person licensed under
12  state law to practice medicine or osteopathic medicine.  These
13  services may be furnished in the physician's office, the
14  Medicaid recipient's home, a hospital, a nursing facility, or
15  elsewhere, but shall be medically necessary for the treatment
16  of an injury, illness, or disease within the scope of the
17  practice of medicine or osteopathic medicine as defined by
18  state law.  The agency shall not pay for services that are
19  clinically unproven, experimental, or for purely cosmetic
20  purposes.
21         (10)  PORTABLE X-RAY SERVICES.--The agency shall pay
22  for professional and technical portable radiological services
23  ordered by a licensed physician or other licensed practitioner
24  of the healing arts which are provided by a licensed
25  professional in a setting other than a hospital, clinic, or
26  office of a physician or practitioner of the healing arts, on
27  behalf of a recipient.
28         (11)  RURAL HEALTH CLINIC SERVICES.--The agency shall
29  pay for outpatient primary health care services for a
30  recipient provided by a clinic certified by and participating
31  in the Medicare program which is located in a federally
                                  21
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    CS for SB 1276                           First Engrossed (ntc)
 1  designated, rural, medically underserved area and has on its
 2  staff one or more licensed primary care nurse practitioners or
 3  physician assistants, and a licensed staff supervising
 4  physician or a consulting supervising physician.
 5         (12)  TRANSPORTATION SERVICES.--The agency shall ensure
 6  that appropriate transportation services are available for a
 7  Medicaid recipient in need of transport to a qualified
 8  Medicaid provider for medically necessary and
 9  Medicaid-compensable services, provided a recipient's client's
10  ability to choose a specific transportation provider is shall
11  be limited to those options resulting from policies
12  established by the agency to meet the fiscal limitations of
13  the General Appropriations Act. Effective January 1, 2005,
14  except for persons who meet Medicaid disability standards
15  adopted by rule, nonemergency transportation services may not
16  be offered to nondisabled recipients if public transportation
17  is generally available in the beneficiary's community. The
18  agency may pay for transportation and other related travel
19  expenses as necessary only if these services are not otherwise
20  available. The agency may competitively bid and contract with
21  a statewide vendor on a capitated basis for the provision of
22  nonemergency transportation services.  The agency may seek
23  federal waiver approval as necessary to implement this
24  subsection.
25         Section 7.  Subsections (13), (14), and (15) of section
26  409.906, Florida Statutes, are amended to read:
27         409.906  Optional Medicaid services.--Subject to
28  specific appropriations, the agency may make payments for
29  services which are optional to the state under Title XIX of
30  the Social Security Act and are furnished by Medicaid
31  providers to recipients who are determined to be eligible on
                                  22
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    CS for SB 1276                           First Engrossed (ntc)
 1  the dates on which the services were provided.  Any optional
 2  service that is provided shall be provided only when medically
 3  necessary and in accordance with state and federal law.
 4  Optional services rendered by providers in mobile units to
 5  Medicaid recipients may be restricted or prohibited by the
 6  agency. Nothing in this section shall be construed to prevent
 7  or limit the agency from adjusting fees, reimbursement rates,
 8  lengths of stay, number of visits, or number of services, or
 9  making any other adjustments necessary to comply with the
10  availability of moneys and any limitations or directions
11  provided for in the General Appropriations Act or chapter 216.
12  If necessary to safeguard the state's systems of providing
13  services to elderly and disabled persons and subject to the
14  notice and review provisions of s. 216.177, the Governor may
15  direct the Agency for Health Care Administration to amend the
16  Medicaid state plan to delete the optional Medicaid service
17  known as "Intermediate Care Facilities for the Developmentally
18  Disabled."  Optional services may include:
19         (13)  HOME AND COMMUNITY-BASED SERVICES.--The agency
20  may pay for home-based or community-based services that are
21  rendered to a recipient in accordance with a federally
22  approved waiver program.
23         (a)  The agency may limit or eliminate coverage for
24  certain Project AIDS Care Waiver services, preauthorize
25  high-cost or highly utilized services, or make any other
26  adjustments necessary to comply with any limitations or
27  directions provided for in the General Appropriations Act.
28         (b)  The agency may consolidate types of services
29  offered in the Aged and Disabled Waiver, the Channeling
30  Waiver, Project AIDS Care Waiver, and the Traumatic Brain and
31  Spinal Cord Injury Waiver programs in order to group similar
                                  23
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    CS for SB 1276                           First Engrossed (ntc)
 1  services under a single service, or upon evidence of the need
 2  for including a particular service type in a particular
 3  waiver.  The agency may seek federal waiver approval as
 4  necessary to implement this policy.
 5         (c)  The agency may implement a utilization management
 6  program designed to preauthorize home-and-community-based
 7  service plans, including, but not limited to, proposed
 8  quantity and duration of services, and to monitor ongoing
 9  service use by participants in the program.  The agency may
10  competitively procure a qualified organization to provide
11  utilization management of home-and-community-based services.
12  The agency may seek federal waiver approval as necessary to
13  implement this policy.
14         (14)  HOSPICE CARE SERVICES.--The agency may pay for
15  all reasonable and necessary services for the palliation or
16  management of a recipient's terminal illness, if the services
17  are provided by a hospice that is licensed under part VI of
18  chapter 400 and meets Medicare certification requirements.
19  Effective October 1, 2004, subject to federal approval, the
20  community hospice income standard would be equal to the level
21  set in s. 409.904(1).
22         (15)  INTERMEDIATE CARE FACILITY FOR THE
23  DEVELOPMENTALLY DISABLED SERVICES.--The agency may pay for
24  health-related care and services provided on a 24-hour-a-day
25  basis by a facility licensed and certified as a Medicaid
26  Intermediate Care Facility for the Developmentally Disabled,
27  for a recipient who needs such care because of a developmental
28  disability.
29         Section 8.  Present subsection (8) of section 409.9065,
30  Florida Statutes, is redesignated as subsection (9), and a new
31  subsection (8) is added to that section, to read:
                                  24
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    CS for SB 1276                           First Engrossed (ntc)
 1         409.9065  Pharmaceutical expense assistance.--
 2         (8)  In the absence of state appropriations for the
 3  expansion of the Lifesaver Rx Program to provide benefits to
 4  higher income groups and additional discounts as described in
 5  subsections (2) and (3), the Agency for Health Care
 6  Administration may, subject to federal approval and continuing
 7  state appropriations, operate a pharmaceutical expense
 8  assistance program that limits eligibility and benefits to
 9  Medicaid beneficiaries who do not normally receive Medicaid
10  benefits, are Florida residents age 65 and older, have an
11  income less than or equal to 120 percent of the federal
12  poverty level, are eligible for Medicare, and request to be
13  enrolled in the program. Benefits under the limited
14  pharmaceutical expense assistance program shall include
15  Medicaid payment for up to $160 per month for prescribed
16  drugs, subject to benefit utilization controls applied to
17  other Medicaid prescribed drug benefits and the following
18  copayments: $2 per generic product, $5 for a product that is
19  on the Medicaid Preferred Drug List, and $15 for a product
20  that is not on the Preferred Drug List.
21         Section 9.  Subsection (12) is added to section
22  409.907, Florida Statutes, to read:
23         409.907  Medicaid provider agreements.--The agency may
24  make payments for medical assistance and related services
25  rendered to Medicaid recipients only to an individual or
26  entity who has a provider agreement in effect with the agency,
27  who is performing services or supplying goods in accordance
28  with federal, state, and local law, and who agrees that no
29  person shall, on the grounds of handicap, race, color, or
30  national origin, or for any other reason, be subjected to
31  
                                  25
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    CS for SB 1276                           First Engrossed (ntc)
 1  discrimination under any program or activity for which the
 2  provider receives payment from the agency.
 3         (12)  Licensed, certified, or otherwise qualified
 4  providers are not entitled to enrollment in a Medicaid
 5  provider network.
 6         Section 10.  Subsection (9) is added to section
 7  409.911, Florida Statutes, to read:
 8         409.911  Disproportionate share program.--Subject to
 9  specific allocations established within the General
10  Appropriations Act and any limitations established pursuant to
11  chapter 216, the agency shall distribute, pursuant to this
12  section, moneys to hospitals providing a disproportionate
13  share of Medicaid or charity care services by making quarterly
14  Medicaid payments as required. Notwithstanding the provisions
15  of s. 409.915, counties are exempt from contributing toward
16  the cost of this special reimbursement for hospitals serving a
17  disproportionate share of low-income patients.
18         (9)  The Agency for Health Care Administration shall
19  convene a Medicaid Disproportionate Share Council.
20         (a)  The purpose of the council is to study and make
21  recommendations regarding:
22         1.  The formula for the regular disproportionate share
23  program and alternative financing options;
24         2.  Enhanced Medicaid funding through the Special
25  Medicaid Payment program; and
26         3.  The federal status of the upper-payment-limit
27  funding option and how this option may be used to promote
28  health care initiatives determined by the council to be state
29  health care priorities.
30         (b)  The council shall include representatives of the
31  Executive Office of the Governor and of the agency,
                                  26
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    CS for SB 1276                           First Engrossed (ntc)
 1  representatives from teaching, public, private nonprofit,
 2  private for-profit, and family practice teaching hospitals,
 3  and representatives from other groups as needed.
 4         (c)  The council shall submit its findings and
 5  recommendations to the Governor and the Legislature no later
 6  than February 1 of each year.
 7         Section 11.  Subsection (40) of section 409.912,
 8  Florida Statutes, is amended, and subsection (45) is added to
 9  that section, to read:
10         409.912  Cost-effective purchasing of health care.--The
11  agency shall purchase goods and services for Medicaid
12  recipients in the most cost-effective manner consistent with
13  the delivery of quality medical care.  The agency shall
14  maximize the use of prepaid per capita and prepaid aggregate
15  fixed-sum basis services when appropriate and other
16  alternative service delivery and reimbursement methodologies,
17  including competitive bidding pursuant to s. 287.057, designed
18  to facilitate the cost-effective purchase of a case-managed
19  continuum of care. The agency shall also require providers to
20  minimize the exposure of recipients to the need for acute
21  inpatient, custodial, and other institutional care and the
22  inappropriate or unnecessary use of high-cost services. The
23  agency may establish prior authorization requirements for
24  certain populations of Medicaid beneficiaries, certain drug
25  classes, or particular drugs to prevent fraud, abuse, overuse,
26  and possible dangerous drug interactions. The Pharmaceutical
27  and Therapeutics Committee shall make recommendations to the
28  agency on drugs for which prior authorization is required. The
29  agency shall inform the Pharmaceutical and Therapeutics
30  Committee of its decisions regarding drugs subject to prior
31  authorization.
                                  27
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    CS for SB 1276                           First Engrossed (ntc)
 1         (40)(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;
                                  28
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    CS for SB 1276                           First Engrossed (ntc)
 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 14.25
17  13.25 percent or wholesale acquisition cost plus 5 percent,
18  whichever is less.
19         3.  The agency shall develop and implement a process
20  for managing the drug therapies of Medicaid recipients who are
21  using significant numbers of prescribed drugs each month. The
22  management process may include, but is not limited to,
23  comprehensive, physician-directed medical-record reviews,
24  claims analyses, and case evaluations to determine the medical
25  necessity and appropriateness of a patient's treatment plan
26  and drug therapies. The agency may contract with a private
27  organization to provide drug-program-management services. The
28  Medicaid drug benefit management program shall include
29  initiatives to manage drug therapies for HIV/AIDS patients,
30  patients using 20 or more unique prescriptions in a 180-day
31  period, and the top 1,000 patients in annual spending.
                                  29
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    CS for SB 1276                           First Engrossed (ntc)
 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  
                                  30
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    CS for SB 1276                           First Engrossed (ntc)
 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 12 10 percent of the average manufacturer
 7  price as defined in 42 U.S.C. s. 1936 on the last day of a
 8  quarter unless the federal or supplemental rebate, or both,
 9  equals or exceeds 27 25 percent. There is no upper limit on
10  the supplemental rebates the agency may negotiate. The agency
11  may determine that specific products, brand-name or generic,
12  are competitive at lower rebate percentages. Agreement to pay
13  the 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. Such
28  other program benefits may include, but are not limited to,
29  disease management programs, drug product donation programs,
30  drug utilization control programs, prescriber and beneficiary
31  counseling and education, fraud and abuse initiatives, and
                                  31
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    CS for SB 1276                           First Engrossed (ntc)
 1  other services or administrative investments with guaranteed
 2  savings to the Medicaid program in the same year the rebate
 3  reduction is included in the General Appropriations Act. The
 4  agency is authorized to seek any federal waivers necessary to
 5  implement this initiative.
 6         8.  The agency shall implement a return and reuse
 7  program for drugs dispensed by pharmacies to institutional
 8  recipients, which includes payment of a $5 restocking fee for
 9  the implementation and operation of the program.  The return
10  and reuse program shall be implemented electronically and in a
11  manner that promotes efficiency.  The program must permit a
12  pharmacy to exclude drugs from the program if it is not
13  practical or cost-effective for the drug to be included and
14  must provide for the return to inventory of drugs that cannot
15  be credited or returned in a cost-effective manner. The agency
16  shall establish an advisory committee for the purposes of
17  studying the feasibility of using a restricted drug formulary
18  for nursing home residents and other institutionalized adults.
19  The committee shall be comprised of seven members appointed by
20  the Secretary of Health Care Administration. The committee
21  members shall include two physicians licensed under chapter
22  458 or chapter 459; three pharmacists licensed under chapter
23  465 and appointed from a list of recommendations provided by
24  the Florida Long-Term Care Pharmacy Alliance; and two
25  pharmacists licensed under chapter 465.
26         9.  The agency for Health Care Administration shall
27  expand home delivery of pharmacy products. To assist Medicaid
28  patients in securing their prescriptions and reduce program
29  costs, the agency shall expand its current mail-order-pharmacy
30  diabetes-supply program to include all generic and brand-name
31  drugs used by Medicaid patients with diabetes. Medicaid
                                  32
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    CS for SB 1276                           First Engrossed (ntc)
 1  recipients in the current program may obtain nondiabetes drugs
 2  on a voluntary basis. This initiative is limited to the
 3  geographic area covered by the current contract. The agency
 4  may seek and implement any federal waivers necessary to
 5  implement this subparagraph.
 6         10.  The agency shall implement a
 7  utilization-management and prior-authorization program for
 8  COX-II selective inhibitor products.  The program shall use
 9  evidence-based therapy management guidelines to ensure medical
10  necessity and appropriate prescribing of COX-II products
11  versus conventional nonsteroidal anti-inflammatory agents
12  (NSAIDS) in the absence of contraindications regardless of
13  preferred drug list status.  The agency may seek federal
14  waiver approval as necessary to implement this policy.
15         11.  The agency shall limit to one dose per month any
16  drug prescribed for the purpose of enhancing or enabling
17  sexual performance. The agency may seek federal waiver
18  approval as necessary to implement this policy.
19         12.  The agency may specify the preferred daily dosing
20  form or strength for the purpose of promoting best practices
21  with regard to the prescribing of certain drugs and ensuring
22  cost-effective prescribing practices.
23         13.  The agency may require prior authorization for the
24  off-label use of Medicaid-covered prescribed drugs.  The
25  agency may, but is not required to, preauthorize the use of a
26  product for an indication not in the approved labeling. Prior
27  authorization may require the prescribing professional to
28  provide information about the rationale and supporting medical
29  evidence for the off-label use of a drug.
30         14.  The agency may adopt an algorithm-driven treatment
31  protocol for major psychiatric disorders, including, at a
                                  33
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    CS for SB 1276                           First Engrossed (ntc)
 1  minimum, schizophrenia, major depressive disorders, and
 2  bipolar disorder.  The purpose of the algorithms is to improve
 3  the quality of care, achieve the best possible patient
 4  outcomes, and ensure cost-effective management of the use of
 5  medications.  The medication program shall use evidence-based,
 6  consensus medication treatment algorithms, clinical and
 7  technical support necessary to aid clinician implementation of
 8  the algorithm, patient and family education programs to ensure
 9  that the patient is an active partner in care, and the uniform
10  documentation of care provided and patient outcomes achieved.
11  The agency shall coordinate the development and adoption of
12  medication algorithms with the Department of Children and
13  Family Services. The agency may seek any federal waivers
14  necessary to implement this program.
15         15.  The agency shall implement a Medicaid behavioral
16  health drug management program financed through a value-added
17  agreement with pharmaceutical manufacturers that provide
18  financing for program startup and operational costs and
19  guarantee Medicaid budget savings. The agency shall contract
20  for the implementation of this program with vendors that have
21  an established relationship with pharmaceutical manufacturers
22  providing grant funds and experience in operating behavioral
23  health drug management programs. The agency, in conjunction
24  with the Department of Children and Family Services, shall
25  implement the Medicaid behavioral health drug management
26  system that is designed to improve the quality of care and
27  behavioral health prescribing practices based on best-practice
28  guidelines, improve patient adherence to medication plans,
29  reduce clinical risk, and lower prescribed drug costs and the
30  rate of inappropriate spending on Medicaid behavioral drugs.
31  The program must:
                                  34
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    CS for SB 1276                           First Engrossed (ntc)
 1         a.  Provide for the development and adoption of
 2  best-practice guidelines for behavioral-health-related drugs,
 3  such as antipsychotics, antidepressants, and medications for
 4  treating bipolar disorders and other behavioral conditions,
 5  and translate them into practice; review behavioral health
 6  prescribers and compare their prescribing patterns to a number
 7  of indicators that are based on national standards; and
 8  determine deviations from best-practice guidelines;
 9         b.  Implement processes for providing feedback to and
10  educating prescribers using best-practice educational
11  materials and peer-to-peer consultation;
12         c.  Assess Medicaid beneficiaries who are outliers in
13  their use of behavioral health drugs with regard to the
14  numbers and types of drugs taken, drug dosages, combination
15  drug therapies, and other indicators of improper use of
16  behavioral health drugs;
17         d.  Alert prescribers to patients who fail to refill
18  prescriptions in a timely fashion, are prescribed multiple
19  same-class behavioral health drugs, and may have other
20  potential medication problems;
21         e.  Track spending trends for behavioral health drugs
22  and deviation from best-practice guidelines;
23         f.  Use educational and technological approaches to
24  promote best practices; educate consumers; and train
25  prescribers in the use of practice guidelines;
26         g.  Disseminate electronic and published materials;
27         h.  Hold statewide and regional conferences; and
28         i.  Implement a disease-management program with a model
29  quality-based medication component for severely mentally ill
30  individuals and emotionally disturbed children who are high
31  users of care.
                                  35
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    CS for SB 1276                           First Engrossed (ntc)
 1  
 2  If the agency is unable to negotiate a contract with one or
 3  more manufacturers to finance and guarantee savings associated
 4  with a behavioral health drug management program by July 30,
 5  2004, the four-brand drug limit and preferred drug list
 6  prior-authorization requirements shall apply to
 7  mental-health-related drugs, notwithstanding any provision in
 8  subparagraph 1.
 9         (b)  The agency shall implement this subsection to the
10  extent that funds are appropriated to administer the Medicaid
11  prescribed-drug spending-control program. The agency may
12  contract all or any part or all of this program, including the
13  overall management of the drug program, to private
14  organizations.
15         (c)  The agency shall submit quarterly reports to the
16  Governor, the President of the Senate, and the Speaker of the
17  House of Representatives which must include, but need not be
18  limited to, the progress made in implementing this subsection
19  and its effect on Medicaid prescribed-drug expenditures.
20         (45)  The agency may implement Medicaid fee-for-service
21  provider network controls, including, but not limited to,
22  provider credentialing.  If a credentialing process is used,
23  the agency may limit its network based upon the following
24  considerations:
25         (a)  Beneficiary access to care;
26         (b)  Provider availability;
27         (c)  Provider quality standards;
28         (d)  Cultural competency;
29         (e)  Demographic characteristics of beneficiaries;
30         (f)  Practice standards;
31         (g)  Service wait times;
                                  36
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    CS for SB 1276                           First Engrossed (ntc)
 1         (h)  Usage criteria;
 2         (i)  Provider turnover;
 3         (j)  Provider profiling;
 4         (k)  Provider license history;
 5         (l)  History of fraud and abuse findings;
 6         (m)  Peer review;
 7         (n)  Policy and billing infractions;
 8         (o)  Clinical and medical record audit findings; and
 9         (p)  Such other findings as the agency considers
10  necessary to ensure the integrity of the program.
11         Section 12.  Subsection (2) of section 409.9122,
12  Florida Statutes, is amended, and subsection (14) is added to
13  that section, to read:
14         409.9122  Mandatory Medicaid managed care enrollment;
15  programs and procedures.--
16         (2)(a)  The agency shall enroll in a managed care plan
17  or MediPass all Medicaid recipients, except those Medicaid
18  recipients who are: in an institution; enrolled in the
19  Medicaid medically needy program; or eligible for both
20  Medicaid and Medicare.  However, to the extent permitted by
21  federal law, the agency may enroll in a managed care plan or
22  MediPass a Medicaid recipient who is exempt from mandatory
23  managed care enrollment, provided that:
24         1.  The recipient's decision to enroll in a managed
25  care plan or MediPass is voluntary;
26         2.  If the recipient chooses to enroll in a managed
27  care plan, the agency has determined that the managed care
28  plan provides specific programs and services which address the
29  special health needs of the recipient; and
30         3.  The agency receives any necessary waivers from the
31  federal Health Care Financing Administration.
                                  37
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    CS for SB 1276                           First Engrossed (ntc)
 1  
 2  The agency shall develop rules to establish policies by which
 3  exceptions to the mandatory managed care enrollment
 4  requirement may be made on a case-by-case basis. The rules
 5  shall include the specific criteria to be applied when making
 6  a determination as to whether to exempt a recipient from
 7  mandatory enrollment in a managed care plan or MediPass.
 8  School districts participating in the certified school match
 9  program pursuant to ss. 409.908(21) and 1011.70 shall be
10  reimbursed by Medicaid, subject to the limitations of s.
11  1011.70(1), for a Medicaid-eligible child participating in the
12  services as authorized in s. 1011.70, as provided for in s.
13  409.9071, regardless of whether the child is enrolled in
14  MediPass or a managed care plan. Managed care plans shall make
15  a good faith effort to execute agreements with school
16  districts regarding the coordinated provision of services
17  authorized under s. 1011.70. County health departments
18  delivering school-based services pursuant to ss. 381.0056 and
19  381.0057 shall be reimbursed by Medicaid for the federal share
20  for a Medicaid-eligible child who receives Medicaid-covered
21  services in a school setting, regardless of whether the child
22  is enrolled in MediPass or a managed care plan.  Managed care
23  plans shall make a good faith effort to execute agreements
24  with county health departments regarding the coordinated
25  provision of services to a Medicaid-eligible child. To ensure
26  continuity of care for Medicaid patients, the agency, the
27  Department of Health, and the Department of Education shall
28  develop procedures for ensuring that a student's managed care
29  plan or MediPass provider receives information relating to
30  services provided in accordance with ss. 381.0056, 381.0057,
31  409.9071, and 1011.70.
                                  38
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    CS for SB 1276                           First Engrossed (ntc)
 1         (b)  A Medicaid recipient shall not be enrolled in or
 2  assigned to a managed care plan or MediPass unless the managed
 3  care plan or MediPass has complied with the quality-of-care
 4  standards specified in paragraphs (3)(a) and (b),
 5  respectively.
 6         (c)  Medicaid recipients shall have a choice of managed
 7  care plans or MediPass.  The Agency for Health Care
 8  Administration, the Department of Health, the Department of
 9  Children and Family Services, and the Department of Elderly
10  Affairs shall cooperate to ensure that each Medicaid recipient
11  receives clear and easily understandable information that
12  meets the following requirements:
13         1.  Explains the concept of managed care, including
14  MediPass.
15         2.  Provides information on the comparative performance
16  of managed care plans and MediPass in the areas of quality,
17  credentialing, preventive health programs, network size and
18  availability, and patient satisfaction.
19         3.  Explains where additional information on each
20  managed care plan and MediPass in the recipient's area can be
21  obtained.
22         4.  Explains that recipients have the right to choose
23  their own managed care plans or MediPass.  However, if a
24  recipient does not choose a managed care plan or MediPass, the
25  agency will assign the recipient to a managed care plan or
26  MediPass according to the criteria specified in this section.
27         5.  Explains the recipient's right to complain, file a
28  grievance, or change managed care plans or MediPass providers
29  if the recipient is not satisfied with the managed care plan
30  or MediPass.
31  
                                  39
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    CS for SB 1276                           First Engrossed (ntc)
 1         (d)  The agency shall develop a mechanism for providing
 2  information to Medicaid recipients for the purpose of making a
 3  managed care plan or MediPass selection.  Examples of such
 4  mechanisms may include, but not be limited to, interactive
 5  information systems, mailings, and mass marketing materials.
 6  Managed care plans and MediPass providers are prohibited from
 7  providing inducements to Medicaid recipients to select their
 8  plans or from prejudicing Medicaid recipients against other
 9  managed care plans or MediPass providers.
10         (e)  Medicaid recipients who are already enrolled in a
11  managed care plan or MediPass shall be offered the opportunity
12  to change managed care plans or MediPass providers on a
13  staggered basis, as defined by the agency. All Medicaid
14  recipients shall have 90 days in which to make a choice of
15  managed care plans or MediPass providers. Those Medicaid
16  recipients who do not make a choice shall be assigned to a
17  managed care plan or MediPass in accordance with paragraph
18  (f). To facilitate continuity of care, for a Medicaid
19  recipient who is also a recipient of Supplemental Security
20  Income (SSI), prior to assigning the SSI recipient to a
21  managed care plan or MediPass, the agency shall determine
22  whether the SSI recipient has an ongoing relationship with a
23  MediPass provider or managed care plan, and if so, the agency
24  shall assign the SSI recipient to that MediPass provider or
25  managed care plan. Those SSI recipients who do not have such a
26  provider relationship shall be assigned to a managed care plan
27  or MediPass provider in accordance with paragraph (f).
28         (f)  When a Medicaid recipient does not choose a
29  managed care plan or MediPass provider, the agency shall
30  assign the Medicaid recipient to a managed care plan or
31  MediPass provider. Medicaid recipients who are subject to
                                  40
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    CS for SB 1276                           First Engrossed (ntc)
 1  mandatory assignment but who fail to make a choice shall be
 2  assigned to managed care plans until an enrollment of 39 40
 3  percent in MediPass and 61 60 percent in managed care plans is
 4  achieved. Once this enrollment is achieved, the assignments of
 5  recipients who fail to make a choice shall be divided in order
 6  to maintain an enrollment in MediPass and managed care plans
 7  which is in a 39 40 percent and 61 60 percent proportion,
 8  respectively. Thereafter, assignment of Medicaid recipients
 9  who fail to make a choice shall be based proportionally on the
10  preferences of recipients who have made a choice in the
11  previous period. Such proportions shall be revised at least
12  quarterly to reflect an update of the preferences of Medicaid
13  recipients. The agency shall disproportionately assign
14  Medicaid-eligible recipients who are required to but have
15  failed to make a choice of managed care plan or MediPass,
16  including children, and who are to be assigned to the MediPass
17  program to children's networks as described in s.
18  409.912(3)(g), Children's Medical Services network as defined
19  in s. 391.021, exclusive provider organizations, provider
20  service networks, minority physician networks, and pediatric
21  emergency department diversion programs authorized by this
22  chapter or the General Appropriations Act, in such manner as
23  the agency deems appropriate, until the agency has determined
24  that the networks and programs have sufficient numbers to be
25  economically operated. For purposes of this paragraph, when
26  referring to assignment, the term "managed care plans"
27  includes health maintenance organizations, exclusive provider
28  organizations, provider service networks, minority physician
29  networks, Children's Medical Services network, and pediatric
30  emergency department diversion programs authorized by this
31  chapter or the General Appropriations Act. When making
                                  41
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    CS for SB 1276                           First Engrossed (ntc)
 1  assignments, the agency shall take into account the following
 2  criteria and considerations:
 3         1.  A managed care plan has sufficient network capacity
 4  to meet the need of members.
 5         2.  The managed care plan or MediPass has previously
 6  enrolled the recipient as a member, or one of the managed care
 7  plan's primary care providers or MediPass providers has
 8  previously provided health care to the recipient.
 9         3.  The agency has knowledge that the member has
10  previously expressed a preference for a particular managed
11  care plan or MediPass provider as indicated by Medicaid
12  fee-for-service claims data, but has failed to make a choice.
13         4.  The managed care plan's or MediPass primary care
14  providers are geographically accessible to the recipient's
15  residence.
16  
17  (g)  When more than one managed care plan or MediPass provider
18  meets the criteria specified in this paragraph (f), the agency
19  shall make recipient assignments consecutively by family unit.
20         (g)(h)  The agency may not engage in practices that are
21  designed to favor one managed care plan over another or that
22  are designed to influence Medicaid recipients to enroll in
23  MediPass rather than in a managed care plan or to enroll in a
24  managed care plan rather than in MediPass. This subsection
25  does not prohibit the agency from reporting on the performance
26  of MediPass or any managed care plan, as measured by
27  performance criteria developed by the agency.
28         (h)  Effective January 1, 2005, the agency and the
29  Department of Children and Family Services shall ensure that
30  applicants for Medicaid for categories of assistance that
31  require eligible applicants to enroll in managed care shall
                                  42
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    CS for SB 1276                           First Engrossed (ntc)
 1  choose or be assigned to a managed care plan prior to an
 2  eligibility start date so that enrollment in a managed care
 3  plan begins on the same day as the eligibility start date.
 4         (i)  After a recipient has made a selection or has been
 5  enrolled in a managed care plan or MediPass, the recipient
 6  shall have 90 days in which to voluntarily disenroll and
 7  select another managed care plan or MediPass provider.  After
 8  90 days, no further changes may be made except for cause.
 9  Cause shall include, but not be limited to, poor quality of
10  care, lack of access to necessary specialty services, an
11  unreasonable delay or denial of service, or fraudulent
12  enrollment.  The agency shall develop criteria for good cause
13  disenrollment for chronically ill and disabled populations who
14  are assigned to managed care plans if more appropriate care is
15  available through the MediPass program.  The agency must make
16  a determination as to whether cause exists.  However, the
17  agency may require a recipient to use the managed care plan's
18  or MediPass grievance process prior to the agency's
19  determination of cause, except in cases in which immediate
20  risk of permanent damage to the recipient's health is alleged.
21  The grievance process, when utilized, must be completed in
22  time to permit the recipient to disenroll no later than the
23  first day of the second month after the month the
24  disenrollment request was made. If the managed care plan or
25  MediPass, as a result of the grievance process, approves an
26  enrollee's request to disenroll, the agency is not required to
27  make a determination in the case.  The agency must make a
28  determination and take final action on a recipient's request
29  so that disenrollment occurs no later than the first day of
30  the second month after the month the request was made.  If the
31  agency fails to act within the specified timeframe, the
                                  43
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    CS for SB 1276                           First Engrossed (ntc)
 1  recipient's request to disenroll is deemed to be approved as
 2  of the date agency action was required.  Recipients who
 3  disagree with the agency's finding that cause does not exist
 4  for disenrollment shall be advised of their right to pursue a
 5  Medicaid fair hearing to dispute the agency's finding.
 6         (j)  The agency shall apply for a federal waiver from
 7  the Health Care Financing Administration to lock eligible
 8  Medicaid recipients into a managed care plan or MediPass for
 9  12 months after an open enrollment period. After 12 months'
10  enrollment, a recipient may select another managed care plan
11  or MediPass provider.  However, nothing shall prevent a
12  Medicaid recipient from changing primary care providers within
13  the managed care plan or MediPass program during the 12-month
14  period.
15         (k)  When a Medicaid recipient does not choose a
16  managed care plan or MediPass provider, the agency shall
17  assign the Medicaid recipient to a managed care plan, except
18  in those counties in which there are fewer than two managed
19  care plans accepting Medicaid enrollees, in which case
20  assignment shall be to a managed care plan or a MediPass
21  provider. Medicaid recipients in counties with fewer than two
22  managed care plans accepting Medicaid enrollees who are
23  subject to mandatory assignment but who fail to make a choice
24  shall be assigned to managed care plans until an enrollment of
25  39 40 percent in MediPass and 61 60 percent in managed care
26  plans is achieved. Once that enrollment is achieved, the
27  assignments shall be divided in order to maintain an
28  enrollment in MediPass and managed care plans which is in a 39
29  40 percent and 61 60 percent proportion, respectively. In
30  geographic areas where the agency is contracting for the
31  provision of comprehensive behavioral health services through
                                  44
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    CS for SB 1276                           First Engrossed (ntc)
 1  a capitated prepaid arrangement, recipients who fail to make a
 2  choice shall be assigned equally to MediPass or a managed care
 3  plan. For purposes of this paragraph, when referring to
 4  assignment, the term "managed care plans" includes exclusive
 5  provider organizations, provider service networks, Children's
 6  Medical Services network, minority physician networks, and
 7  pediatric emergency department diversion programs authorized
 8  by this chapter or the General Appropriations Act. When making
 9  assignments, the agency shall take into account the following
10  criteria:
11         1.  A managed care plan has sufficient network capacity
12  to meet the need of members.
13         2.  The managed care plan or MediPass has previously
14  enrolled the recipient as a member, or one of the managed care
15  plan's primary care providers or MediPass providers has
16  previously provided health care to the recipient.
17         3.  The agency has knowledge that the member has
18  previously expressed a preference for a particular managed
19  care plan or MediPass provider as indicated by Medicaid
20  fee-for-service claims data, but has failed to make a choice.
21         4.  The managed care plan's or MediPass primary care
22  providers are geographically accessible to the recipient's
23  residence.
24         5.  The agency has authority to make mandatory
25  assignments based on quality of service and performance of
26  managed care plans.
27         (l)  Notwithstanding the provisions of chapter 287, the
28  agency may, at its discretion, renew cost-effective contracts
29  for choice counseling services once or more for such periods
30  as the agency may decide. However, all such renewals may not
31  
                                  45
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    CS for SB 1276                           First Engrossed (ntc)
 1  combine to exceed a total period longer than the term of the
 2  original contract.
 3         (14)  The agency shall include in its calculation of
 4  the hospital inpatient component of a Medicaid health
 5  maintenance organization's capitation rate any special
 6  payments, including, but not limited to, upper payment limit
 7  or disproportionate share hospital payments, made to
 8  qualifying hospitals through the fee-for-service program. The
 9  agency may seek federal waiver approval as needed to implement
10  this adjustment.
11         Section 13.  Paragraph (b) of subsection (1) of section
12  430.204, Florida Statutes, is amended to read:
13         430.204  Community-care-for-the-elderly core services;
14  departmental powers and duties.--
15         (1)
16         (b)  For fiscal year 2003-2004 only, The department
17  shall fund, through each area agency on aging in each county
18  as defined in s. 125.011(1), more than one community care
19  service system the primary purpose of which is the prevention
20  of unnecessary institutionalization of functionally impaired
21  elderly persons through the provision of community-based core
22  services. This paragraph expires July 1, 2004.
23         Section 14.  Paragraph (b) of subsection (1) of section
24  430.205, Florida Statutes, is amended to read:
25         430.205  Community care service system.--
26         (1)
27         (b)  For fiscal year 2003-2004 only, The department
28  shall fund, through the area agency on aging in each county as
29  defined in s. 125.011(1), more than one community care service
30  system that provides case management and other in-home and
31  community services as needed to help elderly persons maintain
                                  46
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    CS for SB 1276                           First Engrossed (ntc)
 1  independence and prevent or delay more costly institutional
 2  care. This paragraph expires July 1, 2004.
 3         Section 15.  Subsection (3) and paragraph (b) of
 4  subsection (5) of section 624.91, Florida Statutes, as amended
 5  by CS for SB 2000, 1st Engrossed, are amended to read:
 6         624.91  The Florida Healthy Kids Corporation Act.--
 7         (3)  ELIGIBILITY FOR STATE-FUNDED ASSISTANCE.--Only the
 8  following individuals are eligible for state-funded assistance
 9  in paying Florida Healthy Kids premiums:
10         (a)  Residents of this state who are eligible for the
11  Florida KidCare program pursuant to s. 409.814.
12         (b)  Notwithstanding s. 409.814, legal aliens who are
13  enrolled in the Florida Healthy Kids program as of January 31,
14  2004, who do not qualify for Title XXI federal funds because
15  they are not qualified aliens as defined in s. 409.811.
16         (c)  Notwithstanding s. 409.814, individuals who have
17  attained the age of 19 as of March 31, 2004, who were
18  receiving Florida Healthy Kids benefits prior to the enactment
19  of the Florida KidCare program. This paragraph shall be
20  repealed March 31, 2005.
21         (d)  Notwithstanding s. 409.814, state employee
22  dependents who were enrolled in the Florida Healthy Kids
23  program as of January 31, 2004. Such individuals shall remain
24  eligible until January 1, 2005.
25         (4)(5)  CORPORATION AUTHORIZATION, DUTIES, POWERS.--
26         (b)  The Florida Healthy Kids Corporation shall:
27         1.  Arrange for the collection of any family, local
28  contributions, or employer payment or premium, in an amount to
29  be determined by the board of directors, to provide for
30  payment of premiums for comprehensive insurance coverage and
31  for the actual or estimated administrative expenses.
                                  47
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    CS for SB 1276                           First Engrossed (ntc)
 1         2.  Arrange for the collection of any voluntary
 2  contributions to provide for payment of premiums for children
 3  who are not eligible for medical assistance under Title XXI of
 4  the Social Security Act. Each fiscal year, the corporation
 5  shall establish a local match policy for the enrollment of
 6  non-Title-XXI-eligible children in the Healthy Kids program.
 7  By May 1 of each year, the corporation shall provide written
 8  notification of the amount to be remitted to the corporation
 9  for the following fiscal year under that policy. Local match
10  sources may include, but are not limited to, funds provided by
11  municipalities, counties, school boards, hospitals, health
12  care providers, charitable organizations, special taxing
13  districts, and private organizations. The minimum local match
14  cash contributions required each fiscal year and local match
15  credits shall be determined by the General Appropriations Act.
16  The corporation shall calculate a county's local match rate
17  based upon that county's percentage of the state's total
18  non-Title-XXI expenditures as reported in the corporation's
19  most recently audited financial statement. In awarding the
20  local match credits, the corporation may consider factors
21  including, but not limited to, population density, per capita
22  income, and existing child-health-related expenditures and
23  services.
24         3.  Subject to the provisions of s. 409.8134, accept
25  voluntary supplemental local match contributions that comply
26  with the requirements of Title XXI of the Social Security Act
27  for the purpose of providing additional coverage in
28  contributing counties under Title XXI.
29         4.  Establish the administrative and accounting
30  procedures for the operation of the corporation.
31  
                                  48
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    CS for SB 1276                           First Engrossed (ntc)
 1         5.  Establish, with consultation from appropriate
 2  professional organizations, standards for preventive health
 3  services and providers and comprehensive insurance benefits
 4  appropriate to children, provided that such standards for
 5  rural areas shall not limit primary care providers to
 6  board-certified pediatricians.
 7         6.  Determine eligibility for children seeking to
 8  participate in the Title XXI-funded components of the Florida
 9  KidCare program consistent with the requirements specified in
10  s. 409.814, as well as the non-Title-XXI-eligible children as
11  provided in subsection (3).
12         7.  Establish procedures under which providers of local
13  match to, applicants to and participants in the program may
14  have grievances reviewed by an impartial body and reported to
15  the board of directors of the corporation.
16         8.  Establish participation criteria and, if
17  appropriate, contract with an authorized insurer, health
18  maintenance organization, or third-party administrator to
19  provide administrative services to the corporation.
20         9.  Establish enrollment criteria which shall include
21  penalties or waiting periods of not fewer than 60 days for
22  reinstatement of coverage upon voluntary cancellation for
23  nonpayment of family premiums.
24         10.  Contract with authorized insurers or any provider
25  of health care services, meeting standards established by the
26  corporation, for the provision of comprehensive insurance
27  coverage to participants. Such standards shall include
28  criteria under which the corporation may contract with more
29  than one provider of health care services in program sites.
30  Health plans shall be selected through a competitive bid
31  process. The Florida Healthy Kids Corporation shall purchase
                                  49
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    CS for SB 1276                           First Engrossed (ntc)
 1  goods and services in the most cost-effective manner
 2  consistent with the delivery of quality and accessible medical
 3  care. The maximum administrative cost for a Florida Healthy
 4  Kids Corporation contract shall be 15 percent. The minimum
 5  medical loss ratio for a Florida Healthy Kids Corporation
 6  contract shall be 85 percent. The health plan selection
 7  criteria and scoring system, and the scoring results, shall be
 8  available upon request for inspection after the bids have been
 9  awarded.
10         11.  Establish disenrollment criteria in the event
11  local matching funds are insufficient to cover enrollments.
12         12.  Develop and implement a plan to publicize the
13  Florida Healthy Kids Corporation, the eligibility requirements
14  of the program, and the procedures for enrollment in the
15  program and to maintain public awareness of the corporation
16  and the program.
17         13.  Secure staff necessary to properly administer the
18  corporation. Staff costs shall be funded from state and local
19  matching funds and such other private or public funds as
20  become available. The board of directors shall determine the
21  number of staff members necessary to administer the
22  corporation.
23         14.  Provide a report annually to the Governor, Chief
24  Financial Officer, Commissioner of Education, Senate
25  President, Speaker of the House of Representatives, and
26  Minority Leaders of the Senate and the House of
27  Representatives.
28         15.  Establish benefit packages that which conform to
29  the provisions of the Florida KidCare program, as created in
30  ss. 409.810-409.820.
31  
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    CS for SB 1276                           First Engrossed (ntc)
 1         Section 16.  This act shall take effect July 1, 2004,
 2  except that this section and section 2 of this act shall take
 3  effect May 1, 2004, or upon becoming a law, whichever occurs
 4  later, in which case section 2 of this act shall operate
 5  retroactive to May 1, 2004.
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CODING: Words stricken are deletions; words underlined are additions.