Amendment
Bill No. SB 2144
Amendment No. 082773
CHAMBER ACTION
Senate House
.
.
.






1Representative Hudson offered the following:
2
3     Amendment (with title amendment)
4     Remove everything after the enacting clause and insert:
5
6     Section 1.  Subsections (1) and (2) of section 409.904,
7Florida Statutes, are amended to read:
8     409.904  Optional payments for eligible persons.-The agency
9may make payments for medical assistance and related services on
10behalf of the following persons who are determined to be
11eligible subject to the income, assets, and categorical
12eligibility tests set forth in federal and state law. Payment on
13behalf of these Medicaid eligible persons is subject to the
14availability of moneys and any limitations established by the
15General Appropriations Act or chapter 216.
16     (1)  Effective January 1, 2006, and subject to federal
17waiver approval, a person who is age 65 or older or is
18determined to be disabled, whose income is at or below 88
19percent of the federal poverty level, whose assets do not exceed
20established limitations, and who is not eligible for Medicare
21or, if eligible for Medicare, is also eligible for and receiving
22Medicaid-covered institutional care services, hospice services,
23or home and community-based services. The agency shall seek
24federal authorization through a waiver to provide this coverage.
25This subsection expires June 30, 2011.
26     (2)(a)  A family, a pregnant woman, a child under age 21, a
27person age 65 or over, or a blind or disabled person, who would
28be eligible under any group listed in s. 409.903(1), (2), or
29(3), except that the income or assets of such family or person
30exceed established limitations. For a family or person in one of
31these coverage groups, medical expenses are deductible from
32income in accordance with federal requirements in order to make
33a determination of eligibility. A family or person eligible
34under the coverage known as the "medically needy," is eligible
35to receive the same services as other Medicaid recipients, with
36the exception of services in skilled nursing facilities and
37intermediate care facilities for the developmentally disabled.
38This paragraph expires June 30, 2011.
39     (b)  Effective July 1, 2011, a pregnant woman or a child
40younger than 21 years of age who would be eligible under any
41group listed in s. 409.903, except that the income or assets of
42such group exceed established limitations. For a person in one
43of these coverage groups, medical expenses are deductible from
44income in accordance with federal requirements in order to make
45a determination of eligibility. A person eligible under the
46coverage known as the "medically needy" is eligible to receive
47the same services as other Medicaid recipients, with the
48exception of services in skilled nursing facilities and
49intermediate care facilities for the developmentally disabled.
50     Section 2.  Subsections (7) and (12) of section 409.906,
51Florida Statutes, are amended to read:
52     409.906  Optional Medicaid services.-Subject to specific
53appropriations, the agency may make payments for services which
54are optional to the state under Title XIX of the Social Security
55Act and are furnished by Medicaid providers to recipients who
56are determined to be eligible on the dates on which the services
57were provided. Any optional service that is provided shall be
58provided only when medically necessary and in accordance with
59state and federal law. Optional services rendered by providers
60in mobile units to Medicaid recipients may be restricted or
61prohibited by the agency. Nothing in this section shall be
62construed to prevent or limit the agency from adjusting fees,
63reimbursement rates, lengths of stay, number of visits, or
64number of services, or making any other adjustments necessary to
65comply with the availability of moneys and any limitations or
66directions provided for in the General Appropriations Act or
67chapter 216. If necessary to safeguard the state's systems of
68providing services to elderly and disabled persons and subject
69to the notice and review provisions of s. 216.177, the Governor
70may direct the Agency for Health Care Administration to amend
71the Medicaid state plan to delete the optional Medicaid service
72known as "Intermediate Care Facilities for the Developmentally
73Disabled." Optional services may include:
74     (7)  CHIROPRACTIC SERVICES.-Effective October 1, 2011, the
75agency may pay for manual manipulation of the spine and initial
76services, screening, and X rays provided to a recipient under
77the age of 21 by a licensed chiropractic physician.
78     (12)  HEARING SERVICES.-Effective October 1, 2011, the
79agency may pay for hearing and related services, including
80hearing evaluations, hearing aid devices, dispensing of the
81hearing aid, and related repairs, if provided to a recipient
82under the age of 21 by a licensed hearing aid specialist,
83otolaryngologist, otologist, audiologist, or physician.
84     Section 3.  Subsections (14) and (23) of section 409.908,
85Florida Statutes, are amended to read:
86     409.908  Reimbursement of Medicaid providers.-Subject to
87specific appropriations, the agency shall reimburse Medicaid
88providers, in accordance with state and federal law, according
89to methodologies set forth in the rules of the agency and in
90policy manuals and handbooks incorporated by reference therein.
91These methodologies may include fee schedules, reimbursement
92methods based on cost reporting, negotiated fees, competitive
93bidding pursuant to s. 287.057, and other mechanisms the agency
94considers efficient and effective for purchasing services or
95goods on behalf of recipients. If a provider is reimbursed based
96on cost reporting and submits a cost report late and that cost
97report would have been used to set a lower reimbursement rate
98for a rate semester, then the provider's rate for that semester
99shall be retroactively calculated using the new cost report, and
100full payment at the recalculated rate shall be effected
101retroactively. Medicare-granted extensions for filing cost
102reports, if applicable, shall also apply to Medicaid cost
103reports. Payment for Medicaid compensable services made on
104behalf of Medicaid eligible persons is subject to the
105availability of moneys and any limitations or directions
106provided for in the General Appropriations Act or chapter 216.
107Further, nothing in this section shall be construed to prevent
108or limit the agency from adjusting fees, reimbursement rates,
109lengths of stay, number of visits, or number of services, or
110making any other adjustments necessary to comply with the
111availability of moneys and any limitations or directions
112provided for in the General Appropriations Act, provided the
113adjustment is consistent with legislative intent.
114     (14)  A provider of prescribed drugs shall be reimbursed
115the least of the amount billed by the provider, the provider's
116usual and customary charge, or the Medicaid maximum allowable
117fee established by the agency, plus a dispensing fee. The
118Medicaid maximum allowable fee for ingredient cost shall will be
119based on the lowest lower of: the average wholesale price (AWP)
120minus 16.4 percent, the wholesaler acquisition cost (WAC) plus
1213.75 4.75 percent, the federal upper limit (FUL), the state
122maximum allowable cost (SMAC), or the usual and customary (UAC)
123charge billed by the provider. Medicaid providers are required
124to dispense generic drugs if available at lower cost and the
125agency has not determined that the branded product is more cost-
126effective, unless the prescriber has requested and received
127approval to require the branded product. The agency is directed
128to implement a variable dispensing fee for payments for
129prescribed medicines while ensuring continued access for
130Medicaid recipients. The variable dispensing fee may be based
131upon, but not limited to, either or both the volume of
132prescriptions dispensed by a specific pharmacy provider, the
133volume of prescriptions dispensed to an individual recipient,
134and dispensing of preferred-drug-list products. The agency may
135increase the pharmacy dispensing fee authorized by statute and
136in the annual General Appropriations Act by $0.50 for the
137dispensing of a Medicaid preferred-drug-list product and reduce
138the pharmacy dispensing fee by $0.50 for the dispensing of a
139Medicaid product that is not included on the preferred drug
140list. The agency may establish a supplemental pharmaceutical
141dispensing fee to be paid to providers returning unused unit-
142dose packaged medications to stock and crediting the Medicaid
143program for the ingredient cost of those medications if the
144ingredient costs to be credited exceed the value of the
145supplemental dispensing fee. The agency is authorized to limit
146reimbursement for prescribed medicine in order to comply with
147any limitations or directions provided for in the General
148Appropriations Act, which may include implementing a prospective
149or concurrent utilization review program.
150     (23)(a)  The agency shall establish rates at a level that
151ensures no increase in statewide expenditures resulting from a
152change in unit costs for 2 fiscal years effective July 1, 2011
1532009. Reimbursement rates for the 2 fiscal years shall be as
154provided in the General Appropriations Act.
155     (b)  This subsection applies to the following provider
156types:
157     1.  Inpatient hospitals.
158     2.  Outpatient hospitals.
159     3.  Nursing homes.
160     4.  County health departments.
161     5.  Community intermediate care facilities for the
162developmentally disabled.
163     6.  Prepaid health plans.
164
165The agency shall apply the effect of this subsection to the
166reimbursement rates for nursing home diversion programs.
167     (c)  The agency shall create a workgroup on hospital
168reimbursement, a workgroup on nursing facility reimbursement,
169and a workgroup on managed care plan payment. The workgroups
170shall evaluate alternative reimbursement and payment
171methodologies for hospitals, nursing facilities, and managed
172care plans, including prospective payment methodologies for
173hospitals and nursing facilities. The nursing facility workgroup
174shall also consider price-based methodologies for indirect care
175and acuity adjustments for direct care. The agency shall submit
176a report on the evaluated alternative reimbursement
177methodologies to the relevant committees of the Senate and the
178House of Representatives by November 1, 2009.
179     (d)  This subsection expires June 30, 2011.
180     Section 4.  Subsection (2) of section 409.9082, Florida
181Statutes, is amended to read:
182     409.9082  Quality assessment on nursing home facility
183providers; exemptions; purpose; federal approval required;
184remedies.-
185     (2)  Effective April 1, 2009, there is imposed upon each
186nursing home facility a quality assessment. The aggregated
187amount of assessments for all nursing home facilities in a given
188year shall be an amount not exceeding the maximum percentage
189allowed under federal law 5.5 percent of the total aggregate net
190patient service revenue of assessed facilities. The agency shall
191calculate the quality assessment rate annually on a per-
192resident-day basis, exclusive of those resident days funded by
193the Medicare program, as reported by the facilities. The per-
194resident-day assessment rate shall be uniform except as
195prescribed in subsection (3). Each facility shall report monthly
196to the agency its total number of resident days, exclusive of
197Medicare Part A resident days, and shall remit an amount equal
198to the assessment rate times the reported number of days. The
199agency shall collect, and each facility shall pay, the quality
200assessment each month. The agency shall collect the assessment
201from nursing home facility providers by no later than the 15th
202of the next succeeding calendar month. The agency shall notify
203providers of the quality assessment and provide a standardized
204form to complete and submit with payments. The collection of the
205nursing home facility quality assessment shall commence no
206sooner than 5 days after the agency's initial payment of the
207Medicaid rates containing the elements prescribed in subsection
208(4). Nursing home facilities may not create a separate line-item
209charge for the purpose of passing through the assessment to
210residents.
211     Section 5.  Subsection (8) of section 409.9083, Florida
212Statutes, is amended to read:
213     409.9083  Quality assessment on privately operated
214intermediate care facilities for the developmentally disabled;
215exemptions; purpose; federal approval required; remedies.-
216     (8)  This section is repealed October 1, 2011.
217     Section 6.  Paragraph (a) of subsection (2) of section
218409.911, Florida Statutes, is amended to read:
219     409.911  Disproportionate share program.-Subject to
220specific allocations established within the General
221Appropriations Act and any limitations established pursuant to
222chapter 216, the agency shall distribute, pursuant to this
223section, moneys to hospitals providing a disproportionate share
224of Medicaid or charity care services by making quarterly
225Medicaid payments as required. Notwithstanding the provisions of
226s. 409.915, counties are exempt from contributing toward the
227cost of this special reimbursement for hospitals serving a
228disproportionate share of low-income patients.
229     (2)  The Agency for Health Care Administration shall use
230the following actual audited data to determine the Medicaid days
231and charity care to be used in calculating the disproportionate
232share payment:
233     (a)  The average of the 2004, 2005, and 2006 2003, 2004,
234and 2005 audited disproportionate share data to determine each
235hospital's Medicaid days and charity care for the 2011-2012
2362010-2011 state fiscal year.
237     Section 7.  Section 409.9112, Florida Statutes, is amended
238to read:
239     409.9112  Disproportionate share program for regional
240perinatal intensive care centers.-In addition to the payments
241made under s. 409.911, the agency shall design and implement a
242system for making disproportionate share payments to those
243hospitals that participate in the regional perinatal intensive
244care center program established pursuant to chapter 383. The
245system of payments must conform to federal requirements and
246distribute funds in each fiscal year for which an appropriation
247is made by making quarterly Medicaid payments. Notwithstanding
248s. 409.915, counties are exempt from contributing toward the
249cost of this special reimbursement for hospitals serving a
250disproportionate share of low-income patients. For the 2011-2012
2512010-2011 state fiscal year, the agency may not distribute
252moneys under the regional perinatal intensive care centers
253disproportionate share program.
254     (1)  The following formula shall be used by the agency to
255calculate the total amount earned for hospitals that participate
256in the regional perinatal intensive care center program:
257
258
TAE = HDSP/THDSP
259Where:
260     TAE = total amount earned by a regional perinatal intensive
261care center.
262     HDSP = the prior state fiscal year regional perinatal
263intensive care center disproportionate share payment to the
264individual hospital.
265     THDSP = the prior state fiscal year total regional
266perinatal intensive care center disproportionate share payments
267to all hospitals.
268
269     (2)  The total additional payment for hospitals that
270participate in the regional perinatal intensive care center
271program shall be calculated by the agency as follows:
272
273
TAP = TAE x TA
274Where:
275     TAP = total additional payment for a regional perinatal
276intensive care center.
277     TAE = total amount earned by a regional perinatal intensive
278care center.
279     TA = total appropriation for the regional perinatal
280intensive care center disproportionate share program.
281
282     (3)  In order to receive payments under this section, a
283hospital must be participating in the regional perinatal
284intensive care center program pursuant to chapter 383 and must
285meet the following additional requirements:
286     (a)  Agree to conform to all departmental and agency
287requirements to ensure high quality in the provision of
288services, including criteria adopted by departmental and agency
289rule concerning staffing ratios, medical records, standards of
290care, equipment, space, and such other standards and criteria as
291the department and agency deem appropriate as specified by rule.
292     (b)  Agree to provide information to the department and
293agency, in a form and manner to be prescribed by rule of the
294department and agency, concerning the care provided to all
295patients in neonatal intensive care centers and high-risk
296maternity care.
297     (c)  Agree to accept all patients for neonatal intensive
298care and high-risk maternity care, regardless of ability to pay,
299on a functional space-available basis.
300     (d)  Agree to develop arrangements with other maternity and
301neonatal care providers in the hospital's region for the
302appropriate receipt and transfer of patients in need of
303specialized maternity and neonatal intensive care services.
304     (e)  Agree to establish and provide a developmental
305evaluation and services program for certain high-risk neonates,
306as prescribed and defined by rule of the department.
307     (f)  Agree to sponsor a program of continuing education in
308perinatal care for health care professionals within the region
309of the hospital, as specified by rule.
310     (g)  Agree to provide backup and referral services to the
311county health departments and other low-income perinatal
312providers within the hospital's region, including the
313development of written agreements between these organizations
314and the hospital.
315     (h)  Agree to arrange for transportation for high-risk
316obstetrical patients and neonates in need of transfer from the
317community to the hospital or from the hospital to another more
318appropriate facility.
319     (4)  Hospitals which fail to comply with any of the
320conditions in subsection (3) or the applicable rules of the
321department and agency may not receive any payments under this
322section until full compliance is achieved. A hospital which is
323not in compliance in two or more consecutive quarters may not
324receive its share of the funds. Any forfeited funds shall be
325distributed by the remaining participating regional perinatal
326intensive care center program hospitals.
327     Section 8.  Section 409.9113, Florida Statutes, is amended
328to read:
329     409.9113  Disproportionate share program for teaching
330hospitals.-In addition to the payments made under ss. 409.911
331and 409.9112, the agency shall make disproportionate share
332payments to statutorily defined teaching hospitals for their
333increased costs associated with medical education programs and
334for tertiary health care services provided to the indigent. This
335system of payments must conform to federal requirements and
336distribute funds in each fiscal year for which an appropriation
337is made by making quarterly Medicaid payments. Notwithstanding
338s. 409.915, counties are exempt from contributing toward the
339cost of this special reimbursement for hospitals serving a
340disproportionate share of low-income patients. For the 2011-2012
3412010-2011 state fiscal year, the agency shall distribute the
342moneys provided in the General Appropriations Act to statutorily
343defined teaching hospitals and family practice teaching
344hospitals under the teaching hospital disproportionate share
345program. The funds provided for statutorily defined teaching
346hospitals shall be distributed in the same proportion as the
347state fiscal year 2003-2004 teaching hospital disproportionate
348share funds were distributed or as otherwise provided in the
349General Appropriations Act. The funds provided for family
350practice teaching hospitals shall be distributed equally among
351family practice teaching hospitals.
352     (1)  On or before September 15 of each year, the agency
353shall calculate an allocation fraction to be used for
354distributing funds to state statutory teaching hospitals.
355Subsequent to the end of each quarter of the state fiscal year,
356the agency shall distribute to each statutory teaching hospital,
357as defined in s. 408.07, an amount determined by multiplying
358one-fourth of the funds appropriated for this purpose by the
359Legislature times such hospital's allocation fraction. The
360allocation fraction for each such hospital shall be determined
361by the sum of the following three primary factors, divided by
362three:
363     (a)  The number of nationally accredited graduate medical
364education programs offered by the hospital, including programs
365accredited by the Accreditation Council for Graduate Medical
366Education and the combined Internal Medicine and Pediatrics
367programs acceptable to both the American Board of Internal
368Medicine and the American Board of Pediatrics at the beginning
369of the state fiscal year preceding the date on which the
370allocation fraction is calculated. The numerical value of this
371factor is the fraction that the hospital represents of the total
372number of programs, where the total is computed for all state
373statutory teaching hospitals.
374     (b)  The number of full-time equivalent trainees in the
375hospital, which comprises two components:
376     1.  The number of trainees enrolled in nationally
377accredited graduate medical education programs, as defined in
378paragraph (a). Full-time equivalents are computed using the
379fraction of the year during which each trainee is primarily
380assigned to the given institution, over the state fiscal year
381preceding the date on which the allocation fraction is
382calculated. The numerical value of this factor is the fraction
383that the hospital represents of the total number of full-time
384equivalent trainees enrolled in accredited graduate programs,
385where the total is computed for all state statutory teaching
386hospitals.
387     2.  The number of medical students enrolled in accredited
388colleges of medicine and engaged in clinical activities,
389including required clinical clerkships and clinical electives.
390Full-time equivalents are computed using the fraction of the
391year during which each trainee is primarily assigned to the
392given institution, over the course of the state fiscal year
393preceding the date on which the allocation fraction is
394calculated. The numerical value of this factor is the fraction
395that the given hospital represents of the total number of full-
396time equivalent students enrolled in accredited colleges of
397medicine, where the total is computed for all state statutory
398teaching hospitals.
399
400The primary factor for full-time equivalent trainees is computed
401as the sum of these two components, divided by two.
402     (c)  A service index that comprises three components:
403     1.  The Agency for Health Care Administration Service
404Index, computed by applying the standard Service Inventory
405Scores established by the agency to services offered by the
406given hospital, as reported on Worksheet A-2 for the last fiscal
407year reported to the agency before the date on which the
408allocation fraction is calculated. The numerical value of this
409factor is the fraction that the given hospital represents of the
410total Agency for Health Care Administration Service Index
411values, where the total is computed for all state statutory
412teaching hospitals.
413     2.  A volume-weighted service index, computed by applying
414the standard Service Inventory Scores established by the Agency
415for Health Care Administration to the volume of each service,
416expressed in terms of the standard units of measure reported on
417Worksheet A-2 for the last fiscal year reported to the agency
418before the date on which the allocation factor is calculated.
419The numerical value of this factor is the fraction that the
420given hospital represents of the total volume-weighted service
421index values, where the total is computed for all state
422statutory teaching hospitals.
423     3.  Total Medicaid payments to each hospital for direct
424inpatient and outpatient services during the fiscal year
425preceding the date on which the allocation factor is calculated.
426This includes payments made to each hospital for such services
427by Medicaid prepaid health plans, whether the plan was
428administered by the hospital or not. The numerical value of this
429factor is the fraction that each hospital represents of the
430total of such Medicaid payments, where the total is computed for
431all state statutory teaching hospitals.
432
433The primary factor for the service index is computed as the sum
434of these three components, divided by three.
435     (2)  By October 1 of each year, the agency shall use the
436following formula to calculate the maximum additional
437disproportionate share payment for statutorily defined teaching
438hospitals:
439
TAP = THAF x A
440Where:
441     TAP = total additional payment.
442     THAF = teaching hospital allocation factor.
443     A = amount appropriated for a teaching hospital
444disproportionate share program.
445     Section 9.  Section 409.9117, Florida Statutes, is amended
446to read:
447     409.9117  Primary care disproportionate share program.-For
448the 2011-2012 2010-2011 state fiscal year, the agency shall not
449distribute moneys under the primary care disproportionate share
450program.
451     (1)  If federal funds are available for disproportionate
452share programs in addition to those otherwise provided by law,
453there shall be created a primary care disproportionate share
454program.
455     (2)  The following formula shall be used by the agency to
456calculate the total amount earned for hospitals that participate
457in the primary care disproportionate share program:
458
459
TAE = HDSP/THDSP
460Where:
461     TAE = total amount earned by a hospital participating in
462the primary care disproportionate share program.
463     HDSP = the prior state fiscal year primary care
464disproportionate share payment to the individual hospital.
465     THDSP = the prior state fiscal year total primary care
466disproportionate share payments to all hospitals.
467
468     (3)  The total additional payment for hospitals that
469participate in the primary care disproportionate share program
470shall be calculated by the agency as follows:
471
472
TAP = TAE x TA
473
474Where:
475     TAP = total additional payment for a primary care hospital.
476     TAE = total amount earned by a primary care hospital.
477     TA = total appropriation for the primary care
478disproportionate share program.
479
480     (4)  In the establishment and funding of this program, the
481agency shall use the following criteria in addition to those
482specified in s. 409.911, and payments may not be made to a
483hospital unless the hospital agrees to:
484     (a)  Cooperate with a Medicaid prepaid health plan, if one
485exists in the community.
486     (b)  Ensure the availability of primary and specialty care
487physicians to Medicaid recipients who are not enrolled in a
488prepaid capitated arrangement and who are in need of access to
489such physicians.
490     (c)  Coordinate and provide primary care services free of
491charge, except copayments, to all persons with incomes up to 100
492percent of the federal poverty level who are not otherwise
493covered by Medicaid or another program administered by a
494governmental entity, and to provide such services based on a
495sliding fee scale to all persons with incomes up to 200 percent
496of the federal poverty level who are not otherwise covered by
497Medicaid or another program administered by a governmental
498entity, except that eligibility may be limited to persons who
499reside within a more limited area, as agreed to by the agency
500and the hospital.
501     (d)  Contract with any federally qualified health center,
502if one exists within the agreed geopolitical boundaries,
503concerning the provision of primary care services, in order to
504guarantee delivery of services in a nonduplicative fashion, and
505to provide for referral arrangements, privileges, and
506admissions, as appropriate. The hospital shall agree to provide
507at an onsite or offsite facility primary care services within 24
508hours to which all Medicaid recipients and persons eligible
509under this paragraph who do not require emergency room services
510are referred during normal daylight hours.
511     (e)  Cooperate with the agency, the county, and other
512entities to ensure the provision of certain public health
513services, case management, referral and acceptance of patients,
514and sharing of epidemiological data, as the agency and the
515hospital find mutually necessary and desirable to promote and
516protect the public health within the agreed geopolitical
517boundaries.
518     (f)  In cooperation with the county in which the hospital
519resides, develop a low-cost, outpatient, prepaid health care
520program to persons who are not eligible for the Medicaid
521program, and who reside within the area.
522     (g)  Provide inpatient services to residents within the
523area who are not eligible for Medicaid or Medicare, and who do
524not have private health insurance, regardless of ability to pay,
525on the basis of available space, except that hospitals may not
526be prevented from establishing bill collection programs based on
527ability to pay.
528     (h)  Work with the Florida Healthy Kids Corporation, the
529Florida Health Care Purchasing Cooperative, and business health
530coalitions, as appropriate, to develop a feasibility study and
531plan to provide a low-cost comprehensive health insurance plan
532to persons who reside within the area and who do not have access
533to such a plan.
534     (i)  Work with public health officials and other experts to
535provide community health education and prevention activities
536designed to promote healthy lifestyles and appropriate use of
537health services.
538     (j)  Work with the local health council to develop a plan
539for promoting access to affordable health care services for all
540persons who reside within the area, including, but not limited
541to, public health services, primary care services, inpatient
542services, and affordable health insurance generally.
543
544Any hospital that fails to comply with any of the provisions of
545this subsection, or any other contractual condition, may not
546receive payments under this section until full compliance is
547achieved.
548     Section 10.  Paragraph (b) of subsection (16) and paragraph
549(a) of subsection (39) of section 409.912, Florida Statutes, are
550amended to read:
551     409.912  Cost-effective purchasing of health care.-The
552agency shall purchase goods and services for Medicaid recipients
553in the most cost-effective manner consistent with the delivery
554of quality medical care. To ensure that medical services are
555effectively utilized, the agency may, in any case, require a
556confirmation or second physician's opinion of the correct
557diagnosis for purposes of authorizing future services under the
558Medicaid program. This section does not restrict access to
559emergency services or poststabilization care services as defined
560in 42 C.F.R. part 438.114. Such confirmation or second opinion
561shall be rendered in a manner approved by the agency. The agency
562shall maximize the use of prepaid per capita and prepaid
563aggregate fixed-sum basis services when appropriate and other
564alternative service delivery and reimbursement methodologies,
565including competitive bidding pursuant to s. 287.057, designed
566to facilitate the cost-effective purchase of a case-managed
567continuum of care. The agency shall also require providers to
568minimize the exposure of recipients to the need for acute
569inpatient, custodial, and other institutional care and the
570inappropriate or unnecessary use of high-cost services. The
571agency shall contract with a vendor to monitor and evaluate the
572clinical practice patterns of providers in order to identify
573trends that are outside the normal practice patterns of a
574provider's professional peers or the national guidelines of a
575provider's professional association. The vendor must be able to
576provide information and counseling to a provider whose practice
577patterns are outside the norms, in consultation with the agency,
578to improve patient care and reduce inappropriate utilization.
579The agency may mandate prior authorization, drug therapy
580management, or disease management participation for certain
581populations of Medicaid beneficiaries, certain drug classes, or
582particular drugs to prevent fraud, abuse, overuse, and possible
583dangerous drug interactions. The Pharmaceutical and Therapeutics
584Committee shall make recommendations to the agency on drugs for
585which prior authorization is required. The agency shall inform
586the Pharmaceutical and Therapeutics Committee of its decisions
587regarding drugs subject to prior authorization. The agency is
588authorized to limit the entities it contracts with or enrolls as
589Medicaid providers by developing a provider network through
590provider credentialing. The agency may competitively bid single-
591source-provider contracts if procurement of goods or services
592results in demonstrated cost savings to the state without
593limiting access to care. The agency may limit its network based
594on the assessment of beneficiary access to care, provider
595availability, provider quality standards, time and distance
596standards for access to care, the cultural competence of the
597provider network, demographic characteristics of Medicaid
598beneficiaries, practice and provider-to-beneficiary standards,
599appointment wait times, beneficiary use of services, provider
600turnover, provider profiling, provider licensure history,
601previous program integrity investigations and findings, peer
602review, provider Medicaid policy and billing compliance records,
603clinical and medical record audits, and other factors. Providers
604shall not be entitled to enrollment in the Medicaid provider
605network. The agency shall determine instances in which allowing
606Medicaid beneficiaries to purchase durable medical equipment and
607other goods is less expensive to the Medicaid program than long-
608term rental of the equipment or goods. The agency may establish
609rules to facilitate purchases in lieu of long-term rentals in
610order to protect against fraud and abuse in the Medicaid program
611as defined in s. 409.913. The agency may seek federal waivers
612necessary to administer these policies.
613     (16)
614     (b)  The responsibility of the agency under this subsection
615shall include the development of capabilities to identify actual
616and optimal practice patterns; patient and provider educational
617initiatives; methods for determining patient compliance with
618prescribed treatments; fraud, waste, and abuse prevention and
619detection programs; and beneficiary case management programs.
620     1.  The practice pattern identification program shall
621evaluate practitioner prescribing patterns based on national and
622regional practice guidelines, comparing practitioners to their
623peer groups. The agency and its Drug Utilization Review Board
624shall consult with the Department of Health and a panel of
625practicing health care professionals consisting of the
626following: the Speaker of the House of Representatives and the
627President of the Senate shall each appoint three physicians
628licensed under chapter 458 or chapter 459; and the Governor
629shall appoint two pharmacists licensed under chapter 465 and one
630dentist licensed under chapter 466 who is an oral surgeon. Terms
631of the panel members shall expire at the discretion of the
632appointing official. The advisory panel shall be responsible for
633evaluating treatment guidelines and recommending ways to
634incorporate their use in the practice pattern identification
635program. Practitioners who are prescribing inappropriately or
636inefficiently, as determined by the agency, may have their
637prescribing of certain drugs subject to prior authorization or
638may be terminated from all participation in the Medicaid
639program.
640     2.  The agency shall also develop educational interventions
641designed to promote the proper use of medications by providers
642and beneficiaries.
643     3.  The agency shall implement a pharmacy fraud, waste, and
644abuse initiative that may include a surety bond or letter of
645credit requirement for participating pharmacies, enhanced
646provider auditing practices, the use of additional fraud and
647abuse software, recipient management programs for beneficiaries
648inappropriately using their benefits, and other steps that will
649eliminate provider and recipient fraud, waste, and abuse. The
650initiative shall address enforcement efforts to reduce the
651number and use of counterfeit prescriptions.
652     4.  By September 30, 2002, The agency may shall contract
653with an entity in the state to provide electronic access to
654Medicaid prescription refill data and information relating to
655the Medicaid Preferred Drug List to Medicaid providers implement
656a wireless handheld clinical pharmacology drug information
657database for practitioners. The initiative shall be designed to
658enhance the agency's efforts to reduce fraud, abuse, and errors
659in the prescription drug benefit program and to otherwise
660further the intent of this paragraph.
661     5.  By April 1, 2006, the agency shall contract with an
662entity to design a database of clinical utilization information
663or electronic medical records for Medicaid providers. This
664system must be web-based and allow providers to review on a
665real-time basis the utilization of Medicaid services, including,
666but not limited to, physician office visits, inpatient and
667outpatient hospitalizations, laboratory and pathology services,
668radiological and other imaging services, dental care, and
669patterns of dispensing prescription drugs in order to coordinate
670care and identify potential fraud and abuse.
671     6.  The agency may apply for any federal waivers needed to
672administer this paragraph.
673     (39)(a)  The agency shall implement a Medicaid prescribed-
674drug spending-control program that includes the following
675components:
676     1.  A Medicaid preferred drug list, which shall be a
677listing of cost-effective therapeutic options recommended by the
678Medicaid Pharmacy and Therapeutics Committee established
679pursuant to s. 409.91195 and adopted by the agency for each
680therapeutic class on the preferred drug list. At the discretion
681of the committee, and when feasible, the preferred drug list
682should include at least two products in a therapeutic class. The
683agency may post the preferred drug list and updates to the
684preferred drug list on an Internet website without following the
685rulemaking procedures of chapter 120. Antiretroviral agents are
686excluded from the preferred drug list. The agency shall also
687limit the amount of a prescribed drug dispensed to no more than
688a 34-day supply unless the drug products' smallest marketed
689package is greater than a 34-day supply, or the drug is
690determined by the agency to be a maintenance drug in which case
691a 100-day maximum supply may be authorized. The agency is
692authorized to seek any federal waivers necessary to implement
693these cost-control programs and to continue participation in the
694federal Medicaid rebate program, or alternatively to negotiate
695state-only manufacturer rebates. The agency may adopt rules to
696implement this subparagraph. The agency shall continue to
697provide unlimited contraceptive drugs and items. The agency must
698establish procedures to ensure that:
699     a.  There is a response to a request for prior consultation
700by telephone or other telecommunication device within 24 hours
701after receipt of a request for prior consultation; and
702     b.  A 72-hour supply of the drug prescribed is provided in
703an emergency or when the agency does not provide a response
704within 24 hours as required by sub-subparagraph a.
705     2.  Reimbursement to pharmacies for Medicaid prescribed
706drugs shall be set at the lowest lesser of: the average
707wholesale price (AWP) minus 16.4 percent, the wholesaler
708acquisition cost (WAC) plus 3.75 4.75 percent, the federal upper
709limit (FUL), the state maximum allowable cost (SMAC), or the
710usual and customary (UAC) charge billed by the provider.
711     3.  The agency shall develop and implement a process for
712managing the drug therapies of Medicaid recipients who are using
713significant numbers of prescribed drugs each month. The
714management process may include, but is not limited to,
715comprehensive, physician-directed medical-record reviews, claims
716analyses, and case evaluations to determine the medical
717necessity and appropriateness of a patient's treatment plan and
718drug therapies. The agency may contract with a private
719organization to provide drug-program-management services. The
720Medicaid drug benefit management program shall include
721initiatives to manage drug therapies for HIV/AIDS patients,
722patients using 20 or more unique prescriptions in a 180-day
723period, and the top 1,000 patients in annual spending. The
724agency shall enroll any Medicaid recipient in the drug benefit
725management program if he or she meets the specifications of this
726provision and is not enrolled in a Medicaid health maintenance
727organization.
728     4.  The agency may limit the size of its pharmacy network
729based on need, competitive bidding, price negotiations,
730credentialing, or similar criteria. The agency shall give
731special consideration to rural areas in determining the size and
732location of pharmacies included in the Medicaid pharmacy
733network. A pharmacy credentialing process may include criteria
734such as a pharmacy's full-service status, location, size,
735patient educational programs, patient consultation, disease
736management services, and other characteristics. The agency may
737impose a moratorium on Medicaid pharmacy enrollment when it is
738determined that it has a sufficient number of Medicaid-
739participating providers. The agency must allow dispensing
740practitioners to participate as a part of the Medicaid pharmacy
741network regardless of the practitioner's proximity to any other
742entity that is dispensing prescription drugs under the Medicaid
743program. A dispensing practitioner must meet all credentialing
744requirements applicable to his or her practice, as determined by
745the agency.
746     5.  The agency shall develop and implement a program that
747requires Medicaid practitioners who prescribe drugs to use a
748counterfeit-proof prescription pad for Medicaid prescriptions.
749The agency shall require the use of standardized counterfeit-
750proof prescription pads by Medicaid-participating prescribers or
751prescribers who write prescriptions for Medicaid recipients. The
752agency may implement the program in targeted geographic areas or
753statewide.
754     6.  The agency may enter into arrangements that require
755manufacturers of generic drugs prescribed to Medicaid recipients
756to provide rebates of at least 15.1 percent of the average
757manufacturer price for the manufacturer's generic products.
758These arrangements shall require that if a generic-drug
759manufacturer pays federal rebates for Medicaid-reimbursed drugs
760at a level below 15.1 percent, the manufacturer must provide a
761supplemental rebate to the state in an amount necessary to
762achieve a 15.1-percent rebate level.
763     7.  The agency may establish a preferred drug list as
764described in this subsection, and, pursuant to the establishment
765of such preferred drug list, it is authorized to negotiate
766supplemental rebates from manufacturers that are in addition to
767those required by Title XIX of the Social Security Act and at no
768less than 14 percent of the average manufacturer price as
769defined in 42 U.S.C. s. 1936 on the last day of a quarter unless
770the federal or supplemental rebate, or both, equals or exceeds
77129 percent. There is no upper limit on the supplemental rebates
772the agency may negotiate. The agency may determine that specific
773products, brand-name or generic, are competitive at lower rebate
774percentages. Agreement to pay the minimum supplemental rebate
775percentage will guarantee a manufacturer that the Medicaid
776Pharmaceutical and Therapeutics Committee will consider a
777product for inclusion on the preferred drug list. However, a
778pharmaceutical manufacturer is not guaranteed placement on the
779preferred drug list by simply paying the minimum supplemental
780rebate. Agency decisions will be made on the clinical efficacy
781of a drug and recommendations of the Medicaid Pharmaceutical and
782Therapeutics Committee, as well as the price of competing
783products minus federal and state rebates. The agency is
784authorized to contract with an outside agency or contractor to
785conduct negotiations for supplemental rebates. For the purposes
786of this section, the term "supplemental rebates" means cash
787rebates. Effective July 1, 2004, value-added programs as a
788substitution for supplemental rebates are prohibited. The agency
789is authorized to seek any federal waivers to implement this
790initiative.
791     8.  The Agency for Health Care Administration shall expand
792home delivery of pharmacy products. The agency is authorized to
793amend the state plan and issue a procurement, as necessary, in
794order to implement this program. The procurements shall include
795agreements with a pharmacy or pharmacies located in the state to
796provide mail order delivery services at no cost to the
797recipients who elect to receive home delivery of pharmacy
798products. The procurement shall focus on serving recipients with
799chronic diseases for which pharmacy expenditures represent a
800significant portion of Medicaid pharmacy expenditures or which
801impact a significant portion of the Medicaid population. To
802assist Medicaid patients in securing their prescriptions and
803reduce program costs, the agency shall expand its current mail-
804order-pharmacy diabetes-supply program to include all generic
805and brand-name drugs used by Medicaid patients with diabetes.
806Medicaid recipients in the current program may obtain
807nondiabetes drugs on a voluntary basis. This initiative is
808limited to the geographic area covered by the current contract.
809The agency may seek and implement any federal waivers necessary
810to implement this subparagraph.
811     9.  The agency shall limit to one dose per month any drug
812prescribed to treat erectile dysfunction.
813     10.a.  The agency may implement a Medicaid behavioral drug
814management system. The agency may contract with a vendor that
815has experience in operating behavioral drug management systems
816to implement this program. The agency is authorized to seek
817federal waivers to implement this program.
818     b.  The agency, in conjunction with the Department of
819Children and Family Services, may implement the Medicaid
820behavioral drug management system that is designed to improve
821the quality of care and behavioral health prescribing practices
822based on best practice guidelines, improve patient adherence to
823medication plans, reduce clinical risk, and lower prescribed
824drug costs and the rate of inappropriate spending on Medicaid
825behavioral drugs. The program may include the following
826elements:
827     (I)  Provide for the development and adoption of best
828practice guidelines for behavioral health-related drugs such as
829antipsychotics, antidepressants, and medications for treating
830bipolar disorders and other behavioral conditions; translate
831them into practice; review behavioral health prescribers and
832compare their prescribing patterns to a number of indicators
833that are based on national standards; and determine deviations
834from best practice guidelines.
835     (II)  Implement processes for providing feedback to and
836educating prescribers using best practice educational materials
837and peer-to-peer consultation.
838     (III)  Assess Medicaid beneficiaries who are outliers in
839their use of behavioral health drugs with regard to the numbers
840and types of drugs taken, drug dosages, combination drug
841therapies, and other indicators of improper use of behavioral
842health drugs.
843     (IV)  Alert prescribers to patients who fail to refill
844prescriptions in a timely fashion, are prescribed multiple same-
845class behavioral health drugs, and may have other potential
846medication problems.
847     (V)  Track spending trends for behavioral health drugs and
848deviation from best practice guidelines.
849     (VI)  Use educational and technological approaches to
850promote best practices, educate consumers, and train prescribers
851in the use of practice guidelines.
852     (VII)  Disseminate electronic and published materials.
853     (VIII)  Hold statewide and regional conferences.
854     (IX)  Implement a disease management program with a model
855quality-based medication component for severely mentally ill
856individuals and emotionally disturbed children who are high
857users of care.
858     11.a.  The agency shall implement a Medicaid prescription
859drug management system. The agency may contract with a vendor
860that has experience in operating prescription drug management
861systems in order to implement this system. Any management system
862that is implemented in accordance with this subparagraph must
863rely on cooperation between physicians and pharmacists to
864determine appropriate practice patterns and clinical guidelines
865to improve the prescribing, dispensing, and use of drugs in the
866Medicaid program. The agency may seek federal waivers to
867implement this program.
868     b.  The drug management system must be designed to improve
869the quality of care and prescribing practices based on best
870practice guidelines, improve patient adherence to medication
871plans, reduce clinical risk, and lower prescribed drug costs and
872the rate of inappropriate spending on Medicaid prescription
873drugs. The program must:
874     (I)  Provide for the development and adoption of best
875practice guidelines for the prescribing and use of drugs in the
876Medicaid program, including translating best practice guidelines
877into practice; reviewing prescriber patterns and comparing them
878to indicators that are based on national standards and practice
879patterns of clinical peers in their community, statewide, and
880nationally; and determine deviations from best practice
881guidelines.
882     (II)  Implement processes for providing feedback to and
883educating prescribers using best practice educational materials
884and peer-to-peer consultation.
885     (III)  Assess Medicaid recipients who are outliers in their
886use of a single or multiple prescription drugs with regard to
887the numbers and types of drugs taken, drug dosages, combination
888drug therapies, and other indicators of improper use of
889prescription drugs.
890     (IV)  Alert prescribers to patients who fail to refill
891prescriptions in a timely fashion, are prescribed multiple drugs
892that may be redundant or contraindicated, or may have other
893potential medication problems.
894     (V)  Track spending trends for prescription drugs and
895deviation from best practice guidelines.
896     (VI)  Use educational and technological approaches to
897promote best practices, educate consumers, and train prescribers
898in the use of practice guidelines.
899     (VII)  Disseminate electronic and published materials.
900     (VIII)  Hold statewide and regional conferences.
901     (IX)  Implement disease management programs in cooperation
902with physicians and pharmacists, along with a model quality-
903based medication component for individuals having chronic
904medical conditions.
905     12.  The agency is authorized to contract for drug rebate
906administration, including, but not limited to, calculating
907rebate amounts, invoicing manufacturers, negotiating disputes
908with manufacturers, and maintaining a database of rebate
909collections.
910     13.  The agency may specify the preferred daily dosing form
911or strength for the purpose of promoting best practices with
912regard to the prescribing of certain drugs as specified in the
913General Appropriations Act and ensuring cost-effective
914prescribing practices.
915     14.  The agency may require prior authorization for
916Medicaid-covered prescribed drugs. The agency may, but is not
917required to, prior-authorize the use of a product:
918     a.  For an indication not approved in labeling;
919     b.  To comply with certain clinical guidelines; or
920     c.  If the product has the potential for overuse, misuse,
921or abuse.
922
923The agency may require the prescribing professional to provide
924information about the rationale and supporting medical evidence
925for the use of a drug. The agency may post prior authorization
926criteria and protocol and updates to the list of drugs that are
927subject to prior authorization on an Internet website without
928amending its rule or engaging in additional rulemaking.
929     15.  The agency, in conjunction with the Pharmaceutical and
930Therapeutics Committee, may require age-related prior
931authorizations for certain prescribed drugs. The agency may
932preauthorize the use of a drug for a recipient who may not meet
933the age requirement or may exceed the length of therapy for use
934of this product as recommended by the manufacturer and approved
935by the Food and Drug Administration. Prior authorization may
936require the prescribing professional to provide information
937about the rationale and supporting medical evidence for the use
938of a drug.
939     16.  The agency shall implement a step-therapy prior
940authorization approval process for medications excluded from the
941preferred drug list. Medications listed on the preferred drug
942list must be used within the previous 12 months prior to the
943alternative medications that are not listed. The step-therapy
944prior authorization may require the prescriber to use the
945medications of a similar drug class or for a similar medical
946indication unless contraindicated in the Food and Drug
947Administration labeling. The trial period between the specified
948steps may vary according to the medical indication. The step-
949therapy approval process shall be developed in accordance with
950the committee as stated in s. 409.91195(7) and (8). A drug
951product may be approved without meeting the step-therapy prior
952authorization criteria if the prescribing physician provides the
953agency with additional written medical or clinical documentation
954that the product is medically necessary because:
955     a.  There is not a drug on the preferred drug list to treat
956the disease or medical condition which is an acceptable clinical
957alternative;
958     b.  The alternatives have been ineffective in the treatment
959of the beneficiary's disease; or
960     c.  Based on historic evidence and known characteristics of
961the patient and the drug, the drug is likely to be ineffective,
962or the number of doses have been ineffective.
963
964The agency shall work with the physician to determine the best
965alternative for the patient. The agency may adopt rules waiving
966the requirements for written clinical documentation for specific
967drugs in limited clinical situations.
968     17.  The agency shall implement a return and reuse program
969for drugs dispensed by pharmacies to institutional recipients,
970which includes payment of a $5 restocking fee for the
971implementation and operation of the program. The return and
972reuse program shall be implemented electronically and in a
973manner that promotes efficiency. The program must permit a
974pharmacy to exclude drugs from the program if it is not
975practical or cost-effective for the drug to be included and must
976provide for the return to inventory of drugs that cannot be
977credited or returned in a cost-effective manner. The agency
978shall determine if the program has reduced the amount of
979Medicaid prescription drugs which are destroyed on an annual
980basis and if there are additional ways to ensure more
981prescription drugs are not destroyed which could safely be
982reused. The agency's conclusion and recommendations shall be
983reported to the Legislature by December 1, 2005.
984     Section 11.  Notwithstanding s. 430.707, Florida Statutes,
985and subject to federal approval of the application to be a site
986for the Program of All-inclusive Care for the Elderly, the
987Agency for Health Care Administration shall contract with one
988private health care organization, the sole member of which is a
989private, not-for-profit corporation that owns and manages health
990care organizations which provide comprehensive long-term care
991services, including nursing home, assisted living, independent
992housing, home care, adult day care, and care management, with a
993board-certified, trained geriatrician as the medical director.
994This organization shall provide these services to frail and
995elderly persons who reside in Palm Beach County. The
996organization shall be exempt from the requirements of chapter
997641, Florida Statutes. The agency, in consultation with the
998Department of Elderly Affairs and subject to an appropriation,
999shall approve up to 150 initial enrollees in the Program of All-
1000inclusive Care for the Elderly established by this organization
1001to serve elderly persons who reside in Palm Beach County.
1002     Section 12.  This act shall take effect July 1, 2011.
1003
1004
1005
-----------------------------------------------------
1006
T I T L E  A M E N D M E N T
1007     Remove the entire title and insert:
1008
A bill to be entitled
1009An act relating to Medicaid services; amending s. 409.904,
1010F.S.; repealing the sunset of provisions authorizing the
1011federal waiver for certain persons age 65 and older or who
1012have a disability; repealing the sunset of provisions
1013authorizing a specified medically needy program;
1014eliminating the limit to services placed on the medically
1015needy program for pregnant women and children younger than
1016age 21; amending s. 409.906, F.S.; eliminating adult
1017Medicaid optional coverage for chiropractic services;
1018eliminating adult Medicaid optional coverage for hearing
1019services; amending s. 409.908, F.S.; updating the formula
1020used for calculating reimbursements to Medicaid providers
1021for prescribed drugs; continuing the requirement that the
1022Agency for Health Care Administration set certain
1023institutional provider reimbursement rates in a manner
1024that results in no automatic cost-based statewide
1025expenditure increase; deleting an obsolete requirement to
1026establish workgroups to evaluate alternate reimbursement
1027and payment methods; eliminating the repeal date of the
1028suspension of the use of cost data to set certain
1029institutional provider reimbursement rates; amending s.
1030409.9082, F.S.; revising the allowed aggregated amount of
1031assessments for all nursing home facilities to conform
1032with federal law; amending s. 409.9083, F.S.; eliminating
1033the repeal date of the quality assessment on privately
1034operated intermediate care facilities for the
1035developmentally disabled; amending s. 409.911, F.S.;
1036updating the audited data specified for use in calculating
1037disproportionate share; amending s. 409.9112, F.S.;
1038continuing the prohibition against distributing moneys
1039under the perinatal intensive care centers
1040disproportionate share program; amending s. 409.9113,
1041F.S.; continuing authorization for the distribution of
1042moneys to certain teaching hospitals under the
1043disproportionate share program; amending s. 409.9117,
1044F.S.; continuing the prohibition against distributing
1045moneys under the primary care disproportionate share
1046program; amending s. 409.912, F.S.; allowing the agency to
1047continue to contract for electronic access to certain
1048pharmacology drug information; eliminating the requirement
1049to implement a wireless handheld clinical pharmacology
1050drug information database for practitioners; updating the
1051formula used for calculating reimbursement to Medicaid
1052providers for prescribed drugs; authorizing the agency to
1053seek federal approval and to issue a procurement in order
1054to implement a home delivery of pharmacy products program;
1055establishing the provisions for the procurement and the
1056program; eliminating the requirement for the expansion of
1057the mail-order-pharmacy diabetes-supply program;
1058eliminating certain provisions of the Medicaid
1059prescription drug management program; authorizing the
1060agency to contract with an organization to provide certain
1061benefits under a federal program in Palm Beach County;
1062providing an exemption from ch. 641, F.S., for the
1063organization; authorizing, subject to appropriation,
1064enrollment slots for the Program of All-inclusive Care for
1065the Elderly in Palm Beach County; providing an effective
1066date.


CODING: Words stricken are deletions; words underlined are additions.