Senate Bill sb1828

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2007                                  SB 1828

    By Senator Fasano





    11-1206A-07                                             See HB

  1                      A bill to be entitled

  2         An act relating to the Medicaid managed care

  3         pilot program; amending s. 409.91211, F.S.;

  4         requiring the Agency for Health Care

  5         Administration to develop a methodology for

  6         calculating risk-adjusted capitation rates

  7         based on information in the encounter database;

  8         requiring that specified criteria be met prior

  9         to implementation of the methodology; providing

10         for use of an interim risk-adjusted

11         methodology; providing a phase-in schedule for

12         the encounter-based methodology for

13         participating managed care plans; requiring the

14         phase-in schedule to be applied anew for

15         counties into which the program expands;

16         providing an effective date.

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

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20         Section 1.  Subsections (8) and (9) of section

21  409.91211, Florida Statutes, are amended to read:

22         409.91211  Medicaid managed care pilot program.--

23         (8)(a)  The agency shall develop a methodology for

24  calculating risk-adjusted capitation rates using comprehensive

25  encounter and diagnosis data pursuant to subparagraph (3)(p)4.

26  for all acute Medicaid services. Prior to the implementation

27  of the risk-adjusted capitation rate methodology, the agency

28  shall ensure that all of the following criteria are met:

29         1.  Agency staff is sufficiently educated and trained

30  regarding issues and methods related to compiling encounter

31  

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    Florida Senate - 2007                                  SB 1828
    11-1206A-07                                             See HB




 1  data to implement and maintain the Florida Medicaid encounter

 2  data system.

 3         2.  The Florida Medicaid Management Information System

 4  has the capacity to house, maintain, and manage the

 5  anticipated volume of encounter data records that will be

 6  produced.

 7         3.  The agency has ensured that the encounter data

 8  system is secure, protects personal health information, and is

 9  in compliance with 45 C.F.R. ss. 160.102, 160.103, and 164,

10  subpart A, commonly referred to as the HIPAA Privacy

11  Regulation.

12         4.  The agency has implemented a validation system to

13  ensure the encounter data is accurate; has been screened for

14  completeness, logic, and consistency; and is standardized to

15  facilitate the use of various models for the payment of claims

16  and submission of data.

17         5.  The agency has compiled no less than 1 year's worth

18  of complete encounter and diagnostic data to permit the

19  adjustment of capitation rates for health risk differences and

20  has ensured, through validation by an independent actuary,

21  that the data are of sufficient integrity to be used for

22  risk-adjustment purposes in accordance with actuarial

23  standards of practice that are generally recognized as sound

24  and appropriate.

25         6.  The agency has consulted with the technical

26  advisory panel regarding the development and implementation of

27  the comprehensive encounter and diagnosis data system and

28  sought input from the panel.

29         7.  The risk-adjusted capitation rates have been

30  certified by an independent actuary and approved by the

31  Centers for Medicare and Medicaid Services.

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    Florida Senate - 2007                                  SB 1828
    11-1206A-07                                             See HB




 1         (b)  The agency must ensure, in the first two state

 2  fiscal years in which a risk-adjusted methodology is a

 3  component of rate setting, that, under any risk-adjustment

 4  methodology, no managed care plan providing comprehensive

 5  benefits to TANF and SSI recipients under this section has an

 6  aggregate risk score that varies by more than 10 percent from

 7  the aggregate weighted mean of all managed care plans

 8  providing comprehensive benefits to TANF and SSI recipients in

 9  a reform area. A risk-adjusted capitation paid by the agency

10  The agency's payment to a managed care plan shall be based on

11  an such revised aggregate risk score revised in accordance

12  with the provisions of this paragraph.

13         (c)  The agency may implement an interim risk-adjusted

14  capitation rate methodology to be used before a fully

15  functional encounter and diagnostic data system has been in

16  operation for no less than 12 months pursuant to paragraph

17  (a). If the agency implements an interim methodology, the

18  capitation rates during the interim period shall be weighted

19  so that 75 percent of each capitation rate is based on the

20  methodology developed under s. 409.9124 and 25 percent is

21  based on the interim risk-adjusted capitation rate

22  methodology.

23         (9)  After any calculations of aggregate risk scores or

24  revised aggregate risk scores in subsection (8) and after a

25  fully functional encounter and diagnostic data system has been

26  in operation for no less than 12 months, the capitation rates

27  for plans participating under this section shall be phased in,

28  and this phase-in schedule shall be applied anew, in its

29  entirety, in any county in which the risk-adjusted capitation

30  rate methodology is implemented, as follows:

31  

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    Florida Senate - 2007                                  SB 1828
    11-1206A-07                                             See HB




 1         (a)  For managed care plan contracts taking effect in

 2  the first and second state fiscal years after a fully

 3  functional encounter and diagnostic data system has been in

 4  operation for no less than 12 months, the capitation rates

 5  shall be weighted so that 75 percent of each capitation rate

 6  is based on the methodology developed under s. 409.9124 and 25

 7  percent is based on the risk-adjusted capitation rate

 8  methodology developed under subsection (8). In the first year,

 9  the capitation rates shall be weighted so that 75 percent of

10  each capitation rate is based on the current methodology and

11  25 percent is based on a new risk-adjusted capitation rate

12  methodology.

13         (b)  For managed care plan contracts taking effect in

14  the third state fiscal year after a fully functional encounter

15  and diagnostic data system has been in operation for no less

16  than 12 months, the capitation rates shall be weighted so that

17  70 percent of each capitation rate is based on the methodology

18  developed under s. 409.9124 and 30 percent is based on the

19  risk-adjusted capitation rate methodology developed under

20  subsection (8). In the second year, the capitation rates shall

21  be weighted so that 50 percent of each capitation rate is

22  based on the current methodology and 50 percent is based on a

23  new risk-adjusted rate methodology.

24         (c)  For managed care plan contracts taking effect in

25  the fourth state fiscal year after a fully functional

26  encounter and diagnostic data system has been in operation for

27  no less than 12 months, the capitation rates shall be weighted

28  so that 50 percent of each capitation rate is based on the

29  methodology developed under s. 409.9124 and 50 percent is

30  based on the risk-adjusted capitation rate methodology

31  developed under subsection (8).

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    Florida Senate - 2007                                  SB 1828
    11-1206A-07                                             See HB




 1         (d)  For managed care plan contracts taking effect in

 2  the fifth state fiscal year after a fully functional encounter

 3  and diagnostic data system has been in operation for no less

 4  than 12 months, the capitation rates shall be weighted so that

 5  25 percent of each capitation rate is based on the methodology

 6  developed under s. 409.9124 and 75 percent is based on the

 7  risk-adjusted capitation rate methodology developed under

 8  subsection (8).

 9         (e)  For managed care plan contracts taking effect in

10  the sixth state fiscal year after a fully functional encounter

11  and diagnostic data system has been in operation for no less

12  than 12 months In the following fiscal year, the risk-adjusted

13  capitation methodology may be fully implemented.

14         Section 2.  This act shall take effect July 1, 2007.

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