Florida Senate - 2011             CONFERENCE COMMITTEE AMENDMENT
       Bill No. SB 2144, 1st Eng.
       
       
       
       
       
       
                                Barcode 784096                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: AD/CR          .                                
             05/06/2011 09:23 PM       .                                
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       The Conference Committee on SB 2144, 1st Eng. recommended the
       following:
       
    1         Senate Conference Committee Amendment (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Paragraph (a) of subsection (3) of section
    7  400.23, Florida Statutes, is amended to read:
    8         400.23 Rules; evaluation and deficiencies; licensure
    9  status.—
   10         (3)(a)1. The agency shall adopt rules providing minimum
   11  staffing requirements for nursing home facilities homes. These
   12  requirements must shall include, for each nursing home facility:
   13         a. A minimum weekly average of certified nursing assistant
   14  and licensed nursing staffing combined of 3.6 3.9 hours of
   15  direct care per resident per day. As used in this sub
   16  subparagraph, a week is defined as Sunday through Saturday.
   17         b. A minimum certified nursing assistant staffing of 2.5
   18  2.7 hours of direct care per resident per day. A facility may
   19  not staff below one certified nursing assistant per 20
   20  residents.
   21         c. A minimum licensed nursing staffing of 1.0 hour of
   22  direct care per resident per day. A facility may not staff below
   23  one licensed nurse per 40 residents.
   24         2. Nursing assistants employed under s. 400.211(2) may be
   25  included in computing the staffing ratio for certified nursing
   26  assistants only if their job responsibilities include only
   27  nursing-assistant-related duties.
   28         3. Each nursing home facility must document compliance with
   29  staffing standards as required under this paragraph and post
   30  daily the names of staff on duty for the benefit of facility
   31  residents and the public.
   32         4. The agency shall recognize the use of licensed nurses
   33  for compliance with minimum staffing requirements for certified
   34  nursing assistants if, provided that the nursing home facility
   35  otherwise meets the minimum staffing requirements for licensed
   36  nurses and that the licensed nurses are performing the duties of
   37  a certified nursing assistant. Unless otherwise approved by the
   38  agency, licensed nurses counted toward the minimum staffing
   39  requirements for certified nursing assistants must exclusively
   40  perform the duties of a certified nursing assistant for the
   41  entire shift and not also be counted toward the minimum staffing
   42  requirements for licensed nurses. If the agency approved a
   43  facility’s request to use a licensed nurse to perform both
   44  licensed nursing and certified nursing assistant duties, the
   45  facility must allocate the amount of staff time specifically
   46  spent on certified nursing assistant duties for the purpose of
   47  documenting compliance with minimum staffing requirements for
   48  certified and licensed nursing staff. In no event may The hours
   49  of a licensed nurse with dual job responsibilities may not be
   50  counted twice.
   51         Section 2. Section 408.815, Florida Statutes, is amended to
   52  read:
   53         408.815 License or application denial; revocation.—
   54         (1) In addition to the grounds provided in authorizing
   55  statutes, grounds that may be used by the agency for denying and
   56  revoking a license or change of ownership application include
   57  any of the following actions by a controlling interest:
   58         (a) False representation of a material fact in the license
   59  application or omission of any material fact from the
   60  application.
   61         (b) An intentional or negligent act materially affecting
   62  the health or safety of a client of the provider.
   63         (c) A violation of this part, authorizing statutes, or
   64  applicable rules.
   65         (d) A demonstrated pattern of deficient performance.
   66         (e) The applicant, licensee, or controlling interest has
   67  been or is currently excluded, suspended, or terminated from
   68  participation in the state Medicaid program, the Medicaid
   69  program of any other state, or the Medicare program.
   70         (2) If a licensee lawfully continues to operate while a
   71  denial or revocation is pending in litigation, the licensee must
   72  continue to meet all other requirements of this part,
   73  authorizing statutes, and applicable rules and must file
   74  subsequent renewal applications for licensure and pay all
   75  licensure fees. The provisions of ss. 120.60(1) and
   76  408.806(3)(c) do shall not apply to renewal applications filed
   77  during the time period in which the litigation of the denial or
   78  revocation is pending until that litigation is final.
   79         (3) An action under s. 408.814 or denial of the license of
   80  the transferor may be grounds for denial of a change of
   81  ownership application of the transferee.
   82         (4) Unless an applicant is determined by the agency to
   83  satisfy the provisions of subsection (5) for the action in
   84  question, the agency shall deny an application for a license or
   85  license renewal based upon any of the following actions of an
   86  applicant, a controlling interest of the applicant, or any
   87  entity in which a controlling interest of the applicant was an
   88  owner or officer when the following actions occurred In addition
   89  to the grounds provided in authorizing statutes, the agency
   90  shall deny an application for a license or license renewal if
   91  the applicant or a person having a controlling interest in an
   92  applicant has been:
   93         (a) A conviction or Convicted of, or enters a plea of
   94  guilty or nolo contendere to, regardless of adjudication, a
   95  felony under chapter 409, chapter 817, chapter 893, 21 U.S.C.
   96  ss. 801-970, or 42 U.S.C. ss. 1395-1396, Medicaid fraud,
   97  Medicare fraud, or insurance fraud, unless the sentence and any
   98  subsequent period of probation for such convictions or plea
   99  ended more than 15 years before prior to the date of the
  100  application; or
  101         (b) Termination Terminated for cause from the Medicare
  102  Florida Medicaid program or a state Medicaid program pursuant to
  103  s. 409.913, unless the applicant has been in good standing with
  104  the Medicare program or a state the Florida Medicaid program for
  105  the most recent 5 years and the termination occurred at least 20
  106  years before the date of the application.; or
  107         (c) Terminated for cause, pursuant to the appeals
  108  procedures established by the state or Federal Government, from
  109  the federal Medicare program or from any other state Medicaid
  110  program, unless the applicant has been in good standing with a
  111  state Medicaid program or the federal Medicare program for the
  112  most recent 5 years and the termination occurred at least 20
  113  years prior to the date of the application.
  114         (5) For any application subject to denial under subsection
  115  (4), the agency may consider mitigating circumstances as
  116  applicable, including, but not limited to:
  117         (a) Completion or lawful release from confinement,
  118  supervision, or sanction, including the terms of probation, and
  119  full restitution;
  120         (b) Execution of a compliance plan with the agency;
  121         (c) Compliance with an integrity agreement or compliance
  122  plan with another government agency;
  123         (d) Determination by any state Medicaid program or the
  124  Medicare program that the controlling interest or entity in
  125  which the controlling interest was an owner or officer is
  126  currently allowed to participate in the state Medicaid program
  127  or the Medicare program, directly as a provider or indirectly as
  128  an owner or officer of a provider entity;
  129         (e) Continuation of licensure by the controlling interest
  130  or entity in which the controlling interest was an owner or
  131  officer, directly as a licensee or indirectly as an owner or
  132  officer of a licensed entity in the state where the action
  133  occurred;
  134         (f) Overall impact upon the public health, safety, or
  135  welfare; or
  136         (g) Determination that a license denial is not commensurate
  137  with the prior action taken by the Medicare or state Medicaid
  138  program.
  139  
  140  After considering the circumstances set forth in this
  141  subsection, the agency shall grant the license, with or without
  142  conditions, grant a provisional license for a period of no more
  143  than the licensure cycle, with or without conditions, or deny
  144  the license.
  145         (6) In order to ensure the health, safety, and welfare of
  146  clients when a license has been denied, revoked, or is set to
  147  terminate, the agency may extend the license expiration date for
  148  up to 30 days for the sole purpose of allowing the safe and
  149  orderly discharge of clients. The agency may impose conditions
  150  on the extension, including, but not limited to, prohibiting or
  151  limiting admissions, expedited discharge planning, required
  152  status reports, and mandatory monitoring by the agency or third
  153  parties. When imposing these conditions, the agency shall
  154  consider the nature and number of clients, the availability and
  155  location of acceptable alternative placements, and the ability
  156  of the licensee to continue providing care to the clients. The
  157  agency may terminate the extension or modify the conditions at
  158  any time. This authority is in addition to any other authority
  159  granted to the agency under chapter 120, this part, and
  160  authorizing statutes but creates no right or entitlement to an
  161  extension of a license expiration date.
  162         Section 3. Subsections (1) and (2) of section 409.904,
  163  Florida Statutes, are amended to read:
  164         409.904 Optional payments for eligible persons.—The agency
  165  may make payments for medical assistance and related services on
  166  behalf of the following persons who are determined to be
  167  eligible subject to the income, assets, and categorical
  168  eligibility tests set forth in federal and state law. Payment on
  169  behalf of these Medicaid eligible persons is subject to the
  170  availability of moneys and any limitations established by the
  171  General Appropriations Act or chapter 216.
  172         (1) Effective January 1, 2006, and Subject to federal
  173  waiver approval, a person who is age 65 or older or is
  174  determined to be disabled, whose income is at or below 88
  175  percent of the federal poverty level, whose assets do not exceed
  176  established limitations, and who is not eligible for Medicare
  177  or, if eligible for Medicare, is also eligible for and receiving
  178  Medicaid-covered institutional care services, hospice services,
  179  or home and community-based services. The agency shall seek
  180  federal authorization through a waiver to provide this coverage.
  181  This subsection expires June 30, 2011.
  182         (2)(a) A family, a pregnant woman, a child under age 21, a
  183  person age 65 or over, or a blind or disabled person, who would
  184  be eligible under any group listed in s. 409.903(1), (2), or
  185  (3), except that the income or assets of such family or person
  186  exceed established limitations. For a family or person in one of
  187  these coverage groups, medical expenses are deductible from
  188  income in accordance with federal requirements in order to make
  189  a determination of eligibility. A family or person eligible
  190  under the coverage known as the “medically needy,” is eligible
  191  to receive the same services as other Medicaid recipients, with
  192  the exception of services in skilled nursing facilities and
  193  intermediate care facilities for the developmentally disabled.
  194  This paragraph expires June 30, 2011.
  195         (b) Effective July 1, 2011, a pregnant woman or a child
  196  younger than 21 years of age who would be eligible under any
  197  group listed in s. 409.903, except that the income or assets of
  198  such group exceed established limitations. For a person in one
  199  of these coverage groups, medical expenses are deductible from
  200  income in accordance with federal requirements in order to make
  201  a determination of eligibility. A person eligible under the
  202  coverage known as the “medically needy” is eligible to receive
  203  the same services as other Medicaid recipients, with the
  204  exception of services in skilled nursing facilities and
  205  intermediate care facilities for the developmentally disabled.
  206         Section 4. Paragraphs (d), (e), and (f) of subsection (5)
  207  of section 409.905, Florida Statutes, are amended to read:
  208         409.905 Mandatory Medicaid services.—The agency may make
  209  payments for the following services, which are required of the
  210  state by Title XIX of the Social Security Act, furnished by
  211  Medicaid providers to recipients who are determined to be
  212  eligible on the dates on which the services were provided. Any
  213  service under this section shall be provided only when medically
  214  necessary and in accordance with state and federal law.
  215  Mandatory services rendered by providers in mobile units to
  216  Medicaid recipients may be restricted by the agency. Nothing in
  217  this section shall be construed to prevent or limit the agency
  218  from adjusting fees, reimbursement rates, lengths of stay,
  219  number of visits, number of services, or any other adjustments
  220  necessary to comply with the availability of moneys and any
  221  limitations or directions provided for in the General
  222  Appropriations Act or chapter 216.
  223         (5) HOSPITAL INPATIENT SERVICES.—The agency shall pay for
  224  all covered services provided for the medical care and treatment
  225  of a recipient who is admitted as an inpatient by a licensed
  226  physician or dentist to a hospital licensed under part I of
  227  chapter 395. However, the agency shall limit the payment for
  228  inpatient hospital services for a Medicaid recipient 21 years of
  229  age or older to 45 days or the number of days necessary to
  230  comply with the General Appropriations Act.
  231         (d) The agency shall implement a hospitalist program in
  232  nonteaching hospitals, select counties, or statewide. The
  233  program shall require hospitalists to manage Medicaid
  234  recipients’ hospital admissions and lengths of stay. Individuals
  235  who are dually eligible for Medicare and Medicaid are exempted
  236  from this requirement. Medicaid participating physicians and
  237  other practitioners with hospital admitting privileges shall
  238  coordinate and review admissions of Medicaid recipients with the
  239  hospitalist. The agency may competitively bid a contract for
  240  selection of a single qualified organization to provide
  241  hospitalist services. The agency may procure hospitalist
  242  services by individual county or may combine counties in a
  243  single procurement. The qualified organization shall contract
  244  with or employ board-eligible physicians in Miami-Dade, Palm
  245  Beach, Hillsborough, Pasco, and Pinellas Counties. The agency is
  246  authorized to seek federal waivers to implement this program.
  247         (d)(e) The agency shall implement a comprehensive
  248  utilization management program for hospital neonatal intensive
  249  care stays in certain high-volume participating hospitals,
  250  select counties, or statewide, and shall replace existing
  251  hospital inpatient utilization management programs for neonatal
  252  intensive care admissions. The program shall be designed to
  253  manage the lengths of stay for children being treated in
  254  neonatal intensive care units and must seek the earliest
  255  medically appropriate discharge to the child’s home or other
  256  less costly treatment setting. The agency may competitively bid
  257  a contract for the selection of a qualified organization to
  258  provide neonatal intensive care utilization management services.
  259  The agency may is authorized to seek any federal waivers to
  260  implement this initiative.
  261         (e)(f) The agency may develop and implement a program to
  262  reduce the number of hospital readmissions among the non
  263  Medicare population eligible in areas 9, 10, and 11.
  264         Section 5. Paragraph (b) of subsection (2) and subsections
  265  (14) and (23) of section 409.908, Florida Statutes, are amended
  266  to read:
  267         409.908 Reimbursement of Medicaid providers.—Subject to
  268  specific appropriations, the agency shall reimburse Medicaid
  269  providers, in accordance with state and federal law, according
  270  to methodologies set forth in the rules of the agency and in
  271  policy manuals and handbooks incorporated by reference therein.
  272  These methodologies may include fee schedules, reimbursement
  273  methods based on cost reporting, negotiated fees, competitive
  274  bidding pursuant to s. 287.057, and other mechanisms the agency
  275  considers efficient and effective for purchasing services or
  276  goods on behalf of recipients. If a provider is reimbursed based
  277  on cost reporting and submits a cost report late and that cost
  278  report would have been used to set a lower reimbursement rate
  279  for a rate semester, then the provider’s rate for that semester
  280  shall be retroactively calculated using the new cost report, and
  281  full payment at the recalculated rate shall be effected
  282  retroactively. Medicare-granted extensions for filing cost
  283  reports, if applicable, shall also apply to Medicaid cost
  284  reports. Payment for Medicaid compensable services made on
  285  behalf of Medicaid eligible persons is subject to the
  286  availability of moneys and any limitations or directions
  287  provided for in the General Appropriations Act or chapter 216.
  288  Further, nothing in this section shall be construed to prevent
  289  or limit the agency from adjusting fees, reimbursement rates,
  290  lengths of stay, number of visits, or number of services, or
  291  making any other adjustments necessary to comply with the
  292  availability of moneys and any limitations or directions
  293  provided for in the General Appropriations Act, provided the
  294  adjustment is consistent with legislative intent.
  295         (2)
  296         (b) Subject to any limitations or directions provided for
  297  in the General Appropriations Act, the agency shall establish
  298  and implement a state Florida Title XIX Long-Term Care
  299  Reimbursement Plan (Medicaid) for nursing home care in order to
  300  provide care and services in conformance with the applicable
  301  state and federal laws, rules, regulations, and quality and
  302  safety standards and to ensure that individuals eligible for
  303  medical assistance have reasonable geographic access to such
  304  care.
  305         1. The agency shall amend the long-term care reimbursement
  306  plan and cost reporting system to create direct care and
  307  indirect care subcomponents of the patient care component of the
  308  per diem rate. These two subcomponents together shall equal the
  309  patient care component of the per diem rate. Separate cost-based
  310  ceilings shall be calculated for each patient care subcomponent.
  311  The direct care subcomponent of the per diem rate shall be
  312  limited by the cost-based class ceiling, and the indirect care
  313  subcomponent may be limited by the lower of the cost-based class
  314  ceiling, the target rate class ceiling, or the individual
  315  provider target.
  316         2. The direct care subcomponent shall include salaries and
  317  benefits of direct care staff providing nursing services
  318  including registered nurses, licensed practical nurses, and
  319  certified nursing assistants who deliver care directly to
  320  residents in the nursing home facility. This excludes nursing
  321  administration, minimum data set, and care plan coordinators,
  322  staff development, and staffing coordinator, and the
  323  administrative portion of the minimum data set and care plan
  324  coordinators.
  325         3. All other patient care costs shall be included in the
  326  indirect care cost subcomponent of the patient care per diem
  327  rate. There shall be no Costs may not be allocated directly or
  328  indirectly allocated to the direct care subcomponent from a home
  329  office or management company.
  330         4. On July 1 of each year, the agency shall report to the
  331  Legislature direct and indirect care costs, including average
  332  direct and indirect care costs per resident per facility and
  333  direct care and indirect care salaries and benefits per category
  334  of staff member per facility.
  335         5. In order to offset the cost of general and professional
  336  liability insurance, the agency shall amend the plan to allow
  337  for interim rate adjustments to reflect increases in the cost of
  338  general or professional liability insurance for nursing homes.
  339  This provision shall be implemented to the extent existing
  340  appropriations are available.
  341  
  342  It is the intent of the Legislature that the reimbursement plan
  343  achieve the goal of providing access to health care for nursing
  344  home residents who require large amounts of care while
  345  encouraging diversion services as an alternative to nursing home
  346  care for residents who can be served within the community. The
  347  agency shall base the establishment of any maximum rate of
  348  payment, whether overall or component, on the available moneys
  349  as provided for in the General Appropriations Act. The agency
  350  may base the maximum rate of payment on the results of
  351  scientifically valid analysis and conclusions derived from
  352  objective statistical data pertinent to the particular maximum
  353  rate of payment.
  354         (14) A provider of prescribed drugs shall be reimbursed the
  355  least of the amount billed by the provider, the provider’s usual
  356  and customary charge, or the Medicaid maximum allowable fee
  357  established by the agency, plus a dispensing fee. The Medicaid
  358  maximum allowable fee for ingredient cost must will be based on
  359  the lowest lower of: the average wholesale price (AWP) minus
  360  16.4 percent, the wholesaler acquisition cost (WAC) plus 1.5
  361  4.75 percent, the federal upper limit (FUL), the state maximum
  362  allowable cost (SMAC), or the usual and customary (UAC) charge
  363  billed by the provider.
  364         (a) Medicaid providers must are required to dispense
  365  generic drugs if available at lower cost and the agency has not
  366  determined that the branded product is more cost-effective,
  367  unless the prescriber has requested and received approval to
  368  require the branded product.
  369         (b) The agency shall is directed to implement a variable
  370  dispensing fee for payments for prescribed medicines while
  371  ensuring continued access for Medicaid recipients. The variable
  372  dispensing fee may be based upon, but not limited to, either or
  373  both the volume of prescriptions dispensed by a specific
  374  pharmacy provider, the volume of prescriptions dispensed to an
  375  individual recipient, and dispensing of preferred-drug-list
  376  products.
  377         (c) The agency may increase the pharmacy dispensing fee
  378  authorized by statute and in the annual General Appropriations
  379  Act by $0.50 for the dispensing of a Medicaid preferred-drug
  380  list product and reduce the pharmacy dispensing fee by $0.50 for
  381  the dispensing of a Medicaid product that is not included on the
  382  preferred drug list.
  383         (d) The agency may establish a supplemental pharmaceutical
  384  dispensing fee to be paid to providers returning unused unit
  385  dose packaged medications to stock and crediting the Medicaid
  386  program for the ingredient cost of those medications if the
  387  ingredient costs to be credited exceed the value of the
  388  supplemental dispensing fee.
  389         (e) The agency may is authorized to limit reimbursement for
  390  prescribed medicine in order to comply with any limitations or
  391  directions provided for in the General Appropriations Act, which
  392  may include implementing a prospective or concurrent utilization
  393  review program.
  394         (23)(a) The agency shall establish rates at a level that
  395  ensures no increase in statewide expenditures resulting from a
  396  change in unit costs for 2 fiscal years effective July 1, 2011
  397  2009. Reimbursement rates for the 2 fiscal years shall be as
  398  provided in the General Appropriations Act.
  399         (b) This subsection applies to the following provider
  400  types:
  401         1. Inpatient hospitals.
  402         2. Outpatient hospitals.
  403         3. Nursing homes.
  404         4. County health departments.
  405         5. Community intermediate care facilities for the
  406  developmentally disabled.
  407         6. Prepaid health plans.
  408         (c) The agency shall apply the effect of this subsection to
  409  the reimbursement rates for nursing home diversion programs.
  410         (c) The agency shall create a workgroup on hospital
  411  reimbursement, a workgroup on nursing facility reimbursement,
  412  and a workgroup on managed care plan payment. The workgroups
  413  shall evaluate alternative reimbursement and payment
  414  methodologies for hospitals, nursing facilities, and managed
  415  care plans, including prospective payment methodologies for
  416  hospitals and nursing facilities. The nursing facility workgroup
  417  shall also consider price-based methodologies for indirect care
  418  and acuity adjustments for direct care. The agency shall submit
  419  a report on the evaluated alternative reimbursement
  420  methodologies to the relevant committees of the Senate and the
  421  House of Representatives by November 1, 2009.
  422         (d) This subsection expires June 30, 2011.
  423         Section 6. Subsection (2) and paragraph (d) of subsection
  424  (3) of section 409.9082, Florida Statutes, are amended to read:
  425         409.9082 Quality assessment on nursing home facility
  426  providers; exemptions; purpose; federal approval required;
  427  remedies.—
  428         (2) Effective April 1, 2009, a quality assessment there is
  429  imposed upon each nursing home facility a quality assessment.
  430  The aggregated amount of assessments for all nursing home
  431  facilities in a given year shall be an amount not exceeding the
  432  maximum percentage allowed under federal law 5.5 percent of the
  433  total aggregate net patient service revenue of assessed
  434  facilities. The agency shall calculate the quality assessment
  435  rate annually on a per-resident-day basis, exclusive of those
  436  resident days funded by the Medicare program, as reported by the
  437  facilities. The per-resident-day assessment rate must shall be
  438  uniform except as prescribed in subsection (3). Each facility
  439  shall report monthly to the agency its total number of resident
  440  days, exclusive of Medicare Part A resident days, and shall
  441  remit an amount equal to the assessment rate times the reported
  442  number of days. The agency shall collect, and each facility
  443  shall pay, the quality assessment each month. The agency shall
  444  collect the assessment from nursing home facility providers by
  445  no later than the 15th day of the next succeeding calendar
  446  month. The agency shall notify providers of the quality
  447  assessment and provide a standardized form to complete and
  448  submit with payments. The collection of the nursing home
  449  facility quality assessment shall commence no sooner than 5 days
  450  after the agency’s initial payment of the Medicaid rates
  451  containing the elements prescribed in subsection (4). Nursing
  452  home facilities may not create a separate line-item charge for
  453  the purpose of passing through the assessment through to
  454  residents.
  455         (3)
  456         (d) Effective July 1, 2011 2009, the agency may exempt from
  457  the quality assessment or apply a lower quality assessment rate
  458  to a qualified public, nonstate-owned or operated nursing home
  459  facility whose total annual indigent census days are greater
  460  than 20 25 percent of the facility’s total annual census days.
  461         Section 7. Subsection (8) of section 409.9083, Florida
  462  Statutes, is amended to read:
  463         409.9083 Quality assessment on privately operated
  464  intermediate care facilities for the developmentally disabled;
  465  exemptions; purpose; federal approval required; remedies.—
  466         (8) This section is repealed October 1, 2011.
  467         Section 8. Paragraph (a) of subsection (2) of section
  468  409.911, Florida Statutes, is amended, and paragraph (d) is
  469  added to subsection (4) of that section, to read:
  470         409.911 Disproportionate share program.—Subject to specific
  471  allocations established within the General Appropriations Act
  472  and any limitations established pursuant to chapter 216, the
  473  agency shall distribute, pursuant to this section, moneys to
  474  hospitals providing a disproportionate share of Medicaid or
  475  charity care services by making quarterly Medicaid payments as
  476  required. Notwithstanding the provisions of s. 409.915, counties
  477  are exempt from contributing toward the cost of this special
  478  reimbursement for hospitals serving a disproportionate share of
  479  low-income patients.
  480         (2) The Agency for Health Care Administration shall use the
  481  following actual audited data to determine the Medicaid days and
  482  charity care to be used in calculating the disproportionate
  483  share payment:
  484         (a) The average of the 2004, 2005, and 2006 2003, 2004, and
  485  2005 audited disproportionate share data to determine each
  486  hospital’s Medicaid days and charity care for the 2011-2012
  487  2010-2011 state fiscal year.
  488         (4) The following formulas shall be used to pay
  489  disproportionate share dollars to public hospitals:
  490         (d) Any nonstate government owned or operated hospital
  491  eligible for payments under this section on July 1, 2011,
  492  remains eligible for payments during the 2011-2012 state fiscal
  493  year.
  494         Section 9. Section 409.9112, Florida Statutes, is amended
  495  to read:
  496         409.9112 Disproportionate share program for regional
  497  perinatal intensive care centers.—In addition to the payments
  498  made under s. 409.911, the agency shall design and implement a
  499  system for making disproportionate share payments to those
  500  hospitals that participate in the regional perinatal intensive
  501  care center program established pursuant to chapter 383. The
  502  system of payments must conform to federal requirements and
  503  distribute funds in each fiscal year for which an appropriation
  504  is made by making quarterly Medicaid payments. Notwithstanding
  505  s. 409.915, counties are exempt from contributing toward the
  506  cost of this special reimbursement for hospitals serving a
  507  disproportionate share of low-income patients. For the 2011-2012
  508  2010-2011 state fiscal year, the agency may not distribute
  509  moneys under the regional perinatal intensive care centers
  510  disproportionate share program.
  511         (1) The following formula shall be used by the agency to
  512  calculate the total amount earned for hospitals that participate
  513  in the regional perinatal intensive care center program:
  514  
  515                          TAE = HDSP/THDSP                         
  516  
  517         Where:
  518         TAE = total amount earned by a regional perinatal intensive
  519  care center.
  520         HDSP = the prior state fiscal year regional perinatal
  521  intensive care center disproportionate share payment to the
  522  individual hospital.
  523         THDSP = the prior state fiscal year total regional
  524  perinatal intensive care center disproportionate share payments
  525  to all hospitals.
  526  
  527         (2) The total additional payment for hospitals that
  528  participate in the regional perinatal intensive care center
  529  program shall be calculated by the agency as follows:
  530  
  531                           TAP = TAE x TA                          
  532  
  533         Where:
  534         TAP = total additional payment for a regional perinatal
  535  intensive care center.
  536         TAE = total amount earned by a regional perinatal intensive
  537  care center.
  538         TA = total appropriation for the regional perinatal
  539  intensive care center disproportionate share program.
  540  
  541         (3) In order to receive payments under this section, a
  542  hospital must be participating in the regional perinatal
  543  intensive care center program pursuant to chapter 383 and must
  544  meet the following additional requirements:
  545         (a) Agree to conform to all departmental and agency
  546  requirements to ensure high quality in the provision of
  547  services, including criteria adopted by departmental and agency
  548  rule concerning staffing ratios, medical records, standards of
  549  care, equipment, space, and such other standards and criteria as
  550  the department and agency deem appropriate as specified by rule.
  551         (b) Agree to provide information to the Department of
  552  Health and the agency, in a form and manner to be prescribed by
  553  rule of the department and agency, concerning the care provided
  554  to all patients in neonatal intensive care centers and high-risk
  555  maternity care.
  556         (c) Agree to accept all patients for neonatal intensive
  557  care and high-risk maternity care, regardless of ability to pay,
  558  on a functional space-available basis.
  559         (d) Agree to develop arrangements with other maternity and
  560  neonatal care providers in the hospital’s region for the
  561  appropriate receipt and transfer of patients in need of
  562  specialized maternity and neonatal intensive care services.
  563         (e) Agree to establish and provide a developmental
  564  evaluation and services program for certain high-risk neonates,
  565  as prescribed and defined by rule of the department.
  566         (f) Agree to sponsor a program of continuing education in
  567  perinatal care for health care professionals within the region
  568  of the hospital, as specified by rule.
  569         (g) Agree to provide backup and referral services to the
  570  county health departments and other low-income perinatal
  571  providers within the hospital’s region, including the
  572  development of written agreements between these organizations
  573  and the hospital.
  574         (h) Agree to arrange for transportation for high-risk
  575  obstetrical patients and neonates in need of transfer from the
  576  community to the hospital or from the hospital to another more
  577  appropriate facility.
  578         (4) Hospitals that which fail to comply with any of the
  579  conditions in subsection (3) or the applicable rules of the
  580  Department of Health and the agency may not receive any payments
  581  under this section until full compliance is achieved. A hospital
  582  that which is not in compliance in two or more consecutive
  583  quarters may not receive its share of the funds. Any forfeited
  584  funds shall be distributed by the remaining participating
  585  regional perinatal intensive care center program hospitals.
  586         Section 10. Section 409.9113, Florida Statutes, is amended
  587  to read:
  588         409.9113 Disproportionate share program for teaching
  589  hospitals.—In addition to the payments made under ss. 409.911
  590  and 409.9112, the agency shall make disproportionate share
  591  payments to statutorily defined teaching hospitals, as defined
  592  in s. 408.07, for their increased costs associated with medical
  593  education programs and for tertiary health care services
  594  provided to the indigent. This system of payments must conform
  595  to federal requirements and distribute funds in each fiscal year
  596  for which an appropriation is made by making quarterly Medicaid
  597  payments. Notwithstanding s. 409.915, counties are exempt from
  598  contributing toward the cost of this special reimbursement for
  599  hospitals serving a disproportionate share of low-income
  600  patients. For the 2011-2012 2010-2011 state fiscal year, the
  601  agency shall distribute the moneys provided in the General
  602  Appropriations Act to statutorily defined teaching hospitals and
  603  family practice teaching hospitals, as defined in s. 395.805,
  604  pursuant to this section under the teaching hospital
  605  disproportionate share program. The funds provided for
  606  statutorily defined teaching hospitals shall be distributed in
  607  the same proportion as the state fiscal year 2003-2004 teaching
  608  hospital disproportionate share funds were distributed or as
  609  otherwise provided in the General Appropriations Act. The funds
  610  provided for family practice teaching hospitals shall be
  611  distributed equally among family practice teaching hospitals.
  612         (1) On or before September 15 of each year, the agency
  613  shall calculate an allocation fraction to be used for
  614  distributing funds to state statutory teaching hospitals.
  615  Subsequent to the end of each quarter of the state fiscal year,
  616  the agency shall distribute to each statutory teaching hospital,
  617  as defined in s. 408.07, an amount determined by multiplying
  618  one-fourth of the funds appropriated for this purpose by the
  619  Legislature times such hospital’s allocation fraction. The
  620  allocation fraction for each such hospital shall be determined
  621  by the sum of the following three primary factors, divided by
  622  three:
  623         (a) The number of nationally accredited graduate medical
  624  education programs offered by the hospital, including programs
  625  accredited by the Accreditation Council for Graduate Medical
  626  Education and the combined Internal Medicine and Pediatrics
  627  programs acceptable to both the American Board of Internal
  628  Medicine and the American Board of Pediatrics at the beginning
  629  of the state fiscal year preceding the date on which the
  630  allocation fraction is calculated. The numerical value of this
  631  factor is the fraction that the hospital represents of the total
  632  number of programs, where the total is computed for all state
  633  statutory teaching hospitals.
  634         (b) The number of full-time equivalent trainees in the
  635  hospital, which comprises two components:
  636         1. The number of trainees enrolled in nationally accredited
  637  graduate medical education programs, as defined in paragraph
  638  (a). Full-time equivalents are computed using the fraction of
  639  the year during which each trainee is primarily assigned to the
  640  given institution, over the state fiscal year preceding the date
  641  on which the allocation fraction is calculated. The numerical
  642  value of this factor is the fraction that the hospital
  643  represents of the total number of full-time equivalent trainees
  644  enrolled in accredited graduate programs, where the total is
  645  computed for all state statutory teaching hospitals.
  646         2. The number of medical students enrolled in accredited
  647  colleges of medicine and engaged in clinical activities,
  648  including required clinical clerkships and clinical electives.
  649  Full-time equivalents are computed using the fraction of the
  650  year during which each trainee is primarily assigned to the
  651  given institution, over the course of the state fiscal year
  652  preceding the date on which the allocation fraction is
  653  calculated. The numerical value of this factor is the fraction
  654  that the given hospital represents of the total number of full
  655  time equivalent students enrolled in accredited colleges of
  656  medicine, where the total is computed for all state statutory
  657  teaching hospitals.
  658  
  659  The primary factor for full-time equivalent trainees is computed
  660  as the sum of these two components, divided by two.
  661         (c) A service index that comprises three components:
  662         1. The Agency for Health Care Administration Service Index,
  663  computed by applying the standard Service Inventory Scores
  664  established by the agency to services offered by the given
  665  hospital, as reported on Worksheet A-2 for the last fiscal year
  666  reported to the agency before the date on which the allocation
  667  fraction is calculated. The numerical value of this factor is
  668  the fraction that the given hospital represents of the total
  669  Agency for Health Care Administration Service index values,
  670  where the total is computed for all state statutory teaching
  671  hospitals.
  672         2. A volume-weighted service index, computed by applying
  673  the standard Service Inventory Scores established by the agency
  674  for Health Care Administration to the volume of each service,
  675  expressed in terms of the standard units of measure reported on
  676  Worksheet A-2 for the last fiscal year reported to the agency
  677  before the date on which the allocation factor is calculated.
  678  The numerical value of this factor is the fraction that the
  679  given hospital represents of the total volume-weighted service
  680  index values, where the total is computed for all state
  681  statutory teaching hospitals.
  682         3. Total Medicaid payments to each hospital for direct
  683  inpatient and outpatient services during the fiscal year
  684  preceding the date on which the allocation factor is calculated.
  685  This includes payments made to each hospital for such services
  686  by Medicaid prepaid health plans, whether the plan was
  687  administered by the hospital or not. The numerical value of this
  688  factor is the fraction that each hospital represents of the
  689  total of such Medicaid payments, where the total is computed for
  690  all state statutory teaching hospitals.
  691  
  692  The primary factor for the service index is computed as the sum
  693  of these three components, divided by three.
  694         (2) By October 1 of each year, the agency shall use the
  695  following formula to calculate the maximum additional
  696  disproportionate share payment for statutory statutorily defined
  697  teaching hospitals:
  698  
  699                           TAP = THAF x A                          
  700  
  701         Where:
  702         TAP = total additional payment.
  703         THAF = teaching hospital allocation factor.
  704         A = amount appropriated for a teaching hospital
  705  disproportionate share program.
  706         Section 11. Section 409.9117, Florida Statutes, is amended
  707  to read:
  708         409.9117 Primary care disproportionate share program.—For
  709  the 2011-2012 2010-2011 state fiscal year, the agency shall not
  710  distribute moneys under the primary care disproportionate share
  711  program.
  712         (1) If federal funds are available for disproportionate
  713  share programs in addition to those otherwise provided by law,
  714  there shall be created a primary care disproportionate share
  715  program shall be established.
  716         (2) The following formula shall be used by the agency to
  717  calculate the total amount earned for hospitals that participate
  718  in the primary care disproportionate share program:
  719  
  720                          TAE = HDSP/THDSP                         
  721  
  722         Where:
  723         TAE = total amount earned by a hospital participating in
  724  the primary care disproportionate share program.
  725         HDSP = the prior state fiscal year primary care
  726  disproportionate share payment to the individual hospital.
  727         THDSP = the prior state fiscal year total primary care
  728  disproportionate share payments to all hospitals.
  729  
  730         (3) The total additional payment for hospitals that
  731  participate in the primary care disproportionate share program
  732  shall be calculated by the agency as follows:
  733  
  734                           TAP = TAE x TA                          
  735  
  736         Where:
  737         TAP = total additional payment for a primary care hospital.
  738         TAE = total amount earned by a primary care hospital.
  739         TA = total appropriation for the primary care
  740  disproportionate share program.
  741  
  742         (4) In establishing the establishment and funding of this
  743  program, the agency shall use the following criteria in addition
  744  to those specified in s. 409.911, and payments may not be made
  745  to a hospital unless the hospital agrees to:
  746         (a) Cooperate with a Medicaid prepaid health plan, if one
  747  exists in the community.
  748         (b) Ensure the availability of primary and specialty care
  749  physicians to Medicaid recipients who are not enrolled in a
  750  prepaid capitated arrangement and who are in need of access to
  751  such physicians.
  752         (c) Coordinate and provide primary care services free of
  753  charge, except copayments, to all persons with incomes up to 100
  754  percent of the federal poverty level who are not otherwise
  755  covered by Medicaid or another program administered by a
  756  governmental entity, and to provide such services based on a
  757  sliding fee scale to all persons with incomes up to 200 percent
  758  of the federal poverty level who are not otherwise covered by
  759  Medicaid or another program administered by a governmental
  760  entity, except that eligibility may be limited to persons who
  761  reside within a more limited area, as agreed to by the agency
  762  and the hospital.
  763         (d) Contract with any federally qualified health center, if
  764  one exists within the agreed geopolitical boundaries, concerning
  765  the provision of primary care services, in order to guarantee
  766  delivery of services in a nonduplicative fashion, and to provide
  767  for referral arrangements, privileges, and admissions, as
  768  appropriate. The hospital shall agree to provide at an onsite or
  769  offsite facility primary care services within 24 hours at an
  770  onsite or offsite facility to which all Medicaid recipients and
  771  persons eligible under this paragraph who do not require
  772  emergency room services are referred during normal daylight
  773  hours.
  774         (e) Cooperate with the agency, the county, and other
  775  entities to ensure the provision of certain public health
  776  services, case management, referral and acceptance of patients,
  777  and sharing of epidemiological data, as the agency and the
  778  hospital find mutually necessary and desirable to promote and
  779  protect the public health within the agreed geopolitical
  780  boundaries.
  781         (f) In cooperation with the county in which the hospital
  782  resides, develop a low-cost, outpatient, prepaid health care
  783  program to persons who are not eligible for the Medicaid
  784  program, and who reside within the area.
  785         (g) Provide inpatient services to residents within the area
  786  who are not eligible for Medicaid or Medicare, and who do not
  787  have private health insurance, regardless of ability to pay, on
  788  the basis of available space, except that hospitals may not be
  789  prevented from establishing bill collection programs based on
  790  ability to pay.
  791         (h) Work with the Florida Healthy Kids Corporation, the
  792  Florida Health Care Purchasing Cooperative, and business health
  793  coalitions, as appropriate, to develop a feasibility study and
  794  plan to provide a low-cost comprehensive health insurance plan
  795  to persons who reside within the area and who do not have access
  796  to such a plan.
  797         (i) Work with public health officials and other experts to
  798  provide community health education and prevention activities
  799  designed to promote healthy lifestyles and appropriate use of
  800  health services.
  801         (j) Work with the local health council to develop a plan
  802  for promoting access to affordable health care services for all
  803  persons who reside within the area, including, but not limited
  804  to, public health services, primary care services, inpatient
  805  services, and affordable health insurance generally.
  806  
  807  Any hospital that fails to comply with any of the provisions of
  808  this subsection, or any other contractual condition, may not
  809  receive payments under this section until full compliance is
  810  achieved.
  811         Section 12. Paragraph (b) of subsection (4), paragraph (b)
  812  of subsection (16), and paragraph (a) of subsection (39) of
  813  section 409.912, Florida Statutes, are amended to read:
  814         409.912 Cost-effective purchasing of health care.—The
  815  agency shall purchase goods and services for Medicaid recipients
  816  in the most cost-effective manner consistent with the delivery
  817  of quality medical care. To ensure that medical services are
  818  effectively utilized, the agency may, in any case, require a
  819  confirmation or second physician’s opinion of the correct
  820  diagnosis for purposes of authorizing future services under the
  821  Medicaid program. This section does not restrict access to
  822  emergency services or poststabilization care services as defined
  823  in 42 C.F.R. part 438.114. Such confirmation or second opinion
  824  shall be rendered in a manner approved by the agency. The agency
  825  shall maximize the use of prepaid per capita and prepaid
  826  aggregate fixed-sum basis services when appropriate and other
  827  alternative service delivery and reimbursement methodologies,
  828  including competitive bidding pursuant to s. 287.057, designed
  829  to facilitate the cost-effective purchase of a case-managed
  830  continuum of care. The agency shall also require providers to
  831  minimize the exposure of recipients to the need for acute
  832  inpatient, custodial, and other institutional care and the
  833  inappropriate or unnecessary use of high-cost services. The
  834  agency shall contract with a vendor to monitor and evaluate the
  835  clinical practice patterns of providers in order to identify
  836  trends that are outside the normal practice patterns of a
  837  provider’s professional peers or the national guidelines of a
  838  provider’s professional association. The vendor must be able to
  839  provide information and counseling to a provider whose practice
  840  patterns are outside the norms, in consultation with the agency,
  841  to improve patient care and reduce inappropriate utilization.
  842  The agency may mandate prior authorization, drug therapy
  843  management, or disease management participation for certain
  844  populations of Medicaid beneficiaries, certain drug classes, or
  845  particular drugs to prevent fraud, abuse, overuse, and possible
  846  dangerous drug interactions. The Pharmaceutical and Therapeutics
  847  Committee shall make recommendations to the agency on drugs for
  848  which prior authorization is required. The agency shall inform
  849  the Pharmaceutical and Therapeutics Committee of its decisions
  850  regarding drugs subject to prior authorization. The agency is
  851  authorized to limit the entities it contracts with or enrolls as
  852  Medicaid providers by developing a provider network through
  853  provider credentialing. The agency may competitively bid single
  854  source-provider contracts if procurement of goods or services
  855  results in demonstrated cost savings to the state without
  856  limiting access to care. The agency may limit its network based
  857  on the assessment of beneficiary access to care, provider
  858  availability, provider quality standards, time and distance
  859  standards for access to care, the cultural competence of the
  860  provider network, demographic characteristics of Medicaid
  861  beneficiaries, practice and provider-to-beneficiary standards,
  862  appointment wait times, beneficiary use of services, provider
  863  turnover, provider profiling, provider licensure history,
  864  previous program integrity investigations and findings, peer
  865  review, provider Medicaid policy and billing compliance records,
  866  clinical and medical record audits, and other factors. Providers
  867  shall not be entitled to enrollment in the Medicaid provider
  868  network. The agency shall determine instances in which allowing
  869  Medicaid beneficiaries to purchase durable medical equipment and
  870  other goods is less expensive to the Medicaid program than long
  871  term rental of the equipment or goods. The agency may establish
  872  rules to facilitate purchases in lieu of long-term rentals in
  873  order to protect against fraud and abuse in the Medicaid program
  874  as defined in s. 409.913. The agency may seek federal waivers
  875  necessary to administer these policies.
  876         (4) The agency may contract with:
  877         (b) An entity that is providing comprehensive behavioral
  878  health care services to certain Medicaid recipients through a
  879  capitated, prepaid arrangement pursuant to the federal waiver
  880  provided for by s. 409.905(5). Such entity must be licensed
  881  under chapter 624, chapter 636, or chapter 641, or authorized
  882  under paragraph (c) or paragraph (d), and must possess the
  883  clinical systems and operational competence to manage risk and
  884  provide comprehensive behavioral health care to Medicaid
  885  recipients. As used in this paragraph, the term “comprehensive
  886  behavioral health care services” means covered mental health and
  887  substance abuse treatment services that are available to
  888  Medicaid recipients. The Secretary of the Department of Children
  889  and Family Services shall approve provisions of procurements
  890  related to children in the department’s care or custody before
  891  enrolling such children in a prepaid behavioral health plan. Any
  892  contract awarded under this paragraph must be competitively
  893  procured. In developing The behavioral health care prepaid plan
  894  procurement document, the agency shall ensure that the
  895  procurement document requires the contractor to develop and
  896  implement a plan to ensure compliance with s. 394.4574 related
  897  to services provided to residents of licensed assisted living
  898  facilities that hold a limited mental health license. Except as
  899  provided in subparagraph 8., and except in counties where the
  900  Medicaid managed care pilot program is authorized pursuant to s.
  901  409.91211, the agency shall seek federal approval to contract
  902  with a single entity meeting these requirements to provide
  903  comprehensive behavioral health care services to all Medicaid
  904  recipients not enrolled in a Medicaid managed care plan
  905  authorized under s. 409.91211, a provider service network
  906  authorized under paragraph (d), or a Medicaid health maintenance
  907  organization in an AHCA area. In an AHCA area where the Medicaid
  908  managed care pilot program is authorized pursuant to s.
  909  409.91211 in one or more counties, the agency may procure a
  910  contract with a single entity to serve the remaining counties as
  911  an AHCA area or the remaining counties may be included with an
  912  adjacent AHCA area and are subject to this paragraph. Each
  913  entity must offer a sufficient choice of providers in its
  914  network to ensure recipient access to care and the opportunity
  915  to select a provider with whom they are satisfied. The network
  916  shall include all public mental health hospitals. To ensure
  917  unimpaired access to behavioral health care services by Medicaid
  918  recipients, all contracts issued pursuant to this paragraph must
  919  require 80 percent of the capitation paid to the managed care
  920  plan, including health maintenance organizations and capitated
  921  provider service networks, to be expended for the provision of
  922  behavioral health care services. If the managed care plan
  923  expends less than 80 percent of the capitation paid for the
  924  provision of behavioral health care services, the difference
  925  shall be returned to the agency. The agency shall provide the
  926  plan with a certification letter indicating the amount of
  927  capitation paid during each calendar year for behavioral health
  928  care services pursuant to this section. The agency may reimburse
  929  for substance abuse treatment services on a fee-for-service
  930  basis until the agency finds that adequate funds are available
  931  for capitated, prepaid arrangements.
  932         1. By January 1, 2001, The agency shall modify the
  933  contracts with the entities providing comprehensive inpatient
  934  and outpatient mental health care services to Medicaid
  935  recipients in Hillsborough, Highlands, Hardee, Manatee, and Polk
  936  Counties, to include substance abuse treatment services.
  937         2. By July 1, 2003, the agency and the Department of
  938  Children and Family Services shall execute a written agreement
  939  that requires collaboration and joint development of all policy,
  940  budgets, procurement documents, contracts, and monitoring plans
  941  that have an impact on the state and Medicaid community mental
  942  health and targeted case management programs.
  943         3. Except as provided in subparagraph 8., by July 1, 2006,
  944  the agency and the Department of Children and Family Services
  945  shall contract with managed care entities in each AHCA area
  946  except area 6 or arrange to provide comprehensive inpatient and
  947  outpatient mental health and substance abuse services through
  948  capitated prepaid arrangements to all Medicaid recipients who
  949  are eligible to participate in such plans under federal law and
  950  regulation. In AHCA areas where eligible individuals number less
  951  than 150,000, the agency shall contract with a single managed
  952  care plan to provide comprehensive behavioral health services to
  953  all recipients who are not enrolled in a Medicaid health
  954  maintenance organization, a provider service network authorized
  955  under paragraph (d), or a Medicaid capitated managed care plan
  956  authorized under s. 409.91211. The agency may contract with more
  957  than one comprehensive behavioral health provider to provide
  958  care to recipients who are not enrolled in a Medicaid capitated
  959  managed care plan authorized under s. 409.91211, a provider
  960  service network authorized under paragraph (d), or a Medicaid
  961  health maintenance organization in AHCA areas where the eligible
  962  population exceeds 150,000. In an AHCA area where the Medicaid
  963  managed care pilot program is authorized pursuant to s.
  964  409.91211 in one or more counties, the agency may procure a
  965  contract with a single entity to serve the remaining counties as
  966  an AHCA area or the remaining counties may be included with an
  967  adjacent AHCA area and shall be subject to this paragraph.
  968  Contracts for comprehensive behavioral health providers awarded
  969  pursuant to this section shall be competitively procured. Both
  970  for-profit and not-for-profit corporations are eligible to
  971  compete. Managed care plans contracting with the agency under
  972  subsection (3) or paragraph (d), shall provide and receive
  973  payment for the same comprehensive behavioral health benefits as
  974  provided in AHCA rules, including handbooks incorporated by
  975  reference. In AHCA area 11, the agency shall contract with at
  976  least two comprehensive behavioral health care providers to
  977  provide behavioral health care to recipients in that area who
  978  are enrolled in, or assigned to, the MediPass program. One of
  979  the behavioral health care contracts must be with the existing
  980  provider service network pilot project, as described in
  981  paragraph (d), for the purpose of demonstrating the cost
  982  effectiveness of the provision of quality mental health services
  983  through a public hospital-operated managed care model. Payment
  984  shall be at an agreed-upon capitated rate to ensure cost
  985  savings. Of the recipients in area 11 who are assigned to
  986  MediPass under s. 409.9122(2)(k), a minimum of 50,000 of those
  987  MediPass-enrolled recipients shall be assigned to the existing
  988  provider service network in area 11 for their behavioral care.
  989         4. By October 1, 2003, the agency and the department shall
  990  submit a plan to the Governor, the President of the Senate, and
  991  the Speaker of the House of Representatives which provides for
  992  the full implementation of capitated prepaid behavioral health
  993  care in all areas of the state.
  994         a. Implementation shall begin in 2003 in those AHCA areas
  995  of the state where the agency is able to establish sufficient
  996  capitation rates.
  997         b. If the agency determines that the proposed capitation
  998  rate in any area is insufficient to provide appropriate
  999  services, the agency may adjust the capitation rate to ensure
 1000  that care will be available. The agency and the department may
 1001  use existing general revenue to address any additional required
 1002  match but may not over-obligate existing funds on an annualized
 1003  basis.
 1004         c. Subject to any limitations provided in the General
 1005  Appropriations Act, the agency, in compliance with appropriate
 1006  federal authorization, shall develop policies and procedures
 1007  that allow for certification of local and state funds.
 1008         5. Children residing in a statewide inpatient psychiatric
 1009  program, or in a Department of Juvenile Justice or a Department
 1010  of Children and Family Services residential program approved as
 1011  a Medicaid behavioral health overlay services provider may not
 1012  be included in a behavioral health care prepaid health plan or
 1013  any other Medicaid managed care plan pursuant to this paragraph.
 1014         6. In converting to a prepaid system of delivery, the
 1015  agency shall in its procurement document require an entity
 1016  providing only comprehensive behavioral health care services to
 1017  prevent the displacement of indigent care patients by enrollees
 1018  in the Medicaid prepaid health plan providing behavioral health
 1019  care services from facilities receiving state funding to provide
 1020  indigent behavioral health care, to facilities licensed under
 1021  chapter 395 which do not receive state funding for indigent
 1022  behavioral health care, or reimburse the unsubsidized facility
 1023  for the cost of behavioral health care provided to the displaced
 1024  indigent care patient.
 1025         7. Traditional community mental health providers under
 1026  contract with the Department of Children and Family Services
 1027  pursuant to part IV of chapter 394, child welfare providers
 1028  under contract with the Department of Children and Family
 1029  Services in areas 1 and 6, and inpatient mental health providers
 1030  licensed pursuant to chapter 395 must be offered an opportunity
 1031  to accept or decline a contract to participate in any provider
 1032  network for prepaid behavioral health services.
 1033         8. All Medicaid-eligible children, except children in area
 1034  1 and children in Highlands County, Hardee County, Polk County,
 1035  or Manatee County of area 6, that are open for child welfare
 1036  services in the HomeSafeNet system, shall receive their
 1037  behavioral health care services through a specialty prepaid plan
 1038  operated by community-based lead agencies through a single
 1039  agency or formal agreements among several agencies. The agency
 1040  shall work with the specialty plan to develop clinically
 1041  effective, evidence-based alternatives as a downward
 1042  substitution for the statewide inpatient psychiatric program and
 1043  similar residential care and institutional services. The
 1044  specialty prepaid plan must result in savings to the state
 1045  comparable to savings achieved in other Medicaid managed care
 1046  and prepaid programs. Such plan must provide mechanisms to
 1047  maximize state and local revenues. The specialty prepaid plan
 1048  shall be developed by the agency and the Department of Children
 1049  and Family Services. The agency may seek federal waivers to
 1050  implement this initiative. Medicaid-eligible children whose
 1051  cases are open for child welfare services in the HomeSafeNet
 1052  system and who reside in AHCA area 10 are exempt from the
 1053  specialty prepaid plan upon the development of a service
 1054  delivery mechanism for children who reside in area 10 as
 1055  specified in s. 409.91211(3)(dd).
 1056         (16)
 1057         (b) The responsibility of the agency under this subsection
 1058  includes shall include the development of capabilities to
 1059  identify actual and optimal practice patterns; patient and
 1060  provider educational initiatives; methods for determining
 1061  patient compliance with prescribed treatments; fraud, waste, and
 1062  abuse prevention and detection programs; and beneficiary case
 1063  management programs.
 1064         1. The practice pattern identification program shall
 1065  evaluate practitioner prescribing patterns based on national and
 1066  regional practice guidelines, comparing practitioners to their
 1067  peer groups. The agency and its Drug Utilization Review Board
 1068  shall consult with the Department of Health and a panel of
 1069  practicing health care professionals consisting of the
 1070  following: the Speaker of the House of Representatives and the
 1071  President of the Senate shall each appoint three physicians
 1072  licensed under chapter 458 or chapter 459; and the Governor
 1073  shall appoint two pharmacists licensed under chapter 465 and one
 1074  dentist licensed under chapter 466 who is an oral surgeon. Terms
 1075  of the panel members shall expire at the discretion of the
 1076  appointing official. The advisory panel shall be responsible for
 1077  evaluating treatment guidelines and recommending ways to
 1078  incorporate their use in the practice pattern identification
 1079  program. Practitioners who are prescribing inappropriately or
 1080  inefficiently, as determined by the agency, may have their
 1081  prescribing of certain drugs subject to prior authorization or
 1082  may be terminated from all participation in the Medicaid
 1083  program.
 1084         2. The agency shall also develop educational interventions
 1085  designed to promote the proper use of medications by providers
 1086  and beneficiaries.
 1087         3. The agency shall implement a pharmacy fraud, waste, and
 1088  abuse initiative that may include a surety bond or letter of
 1089  credit requirement for participating pharmacies, enhanced
 1090  provider auditing practices, the use of additional fraud and
 1091  abuse software, recipient management programs for beneficiaries
 1092  inappropriately using their benefits, and other steps that will
 1093  eliminate provider and recipient fraud, waste, and abuse. The
 1094  initiative shall address enforcement efforts to reduce the
 1095  number and use of counterfeit prescriptions.
 1096         4. By September 30, 2002, The agency may shall contract
 1097  with an entity in the state to provide Medicaid providers with
 1098  electronic access to Medicaid prescription refill data and
 1099  information relating to the Medicaid preferred drug list
 1100  implement a wireless handheld clinical pharmacology drug
 1101  information database for practitioners. The initiative shall be
 1102  designed to enhance the agency’s efforts to reduce fraud, abuse,
 1103  and errors in the prescription drug benefit program and to
 1104  otherwise further the intent of this paragraph.
 1105         5. By April 1, 2006, The agency shall contract with an
 1106  entity to design a database of clinical utilization information
 1107  or electronic medical records for Medicaid providers. The
 1108  database This system must be web-based and allow providers to
 1109  review on a real-time basis the utilization of Medicaid
 1110  services, including, but not limited to, physician office
 1111  visits, inpatient and outpatient hospitalizations, laboratory
 1112  and pathology services, radiological and other imaging services,
 1113  dental care, and patterns of dispensing prescription drugs in
 1114  order to coordinate care and identify potential fraud and abuse.
 1115         6. The agency may apply for any federal waivers needed to
 1116  administer this paragraph.
 1117         (39)(a) The agency shall implement a Medicaid prescribed
 1118  drug spending-control program that includes the following
 1119  components:
 1120         1. A Medicaid preferred drug list, which shall be a listing
 1121  of cost-effective therapeutic options recommended by the
 1122  Medicaid Pharmacy and Therapeutics Committee established
 1123  pursuant to s. 409.91195 and adopted by the agency for each
 1124  therapeutic class on the preferred drug list. At the discretion
 1125  of the committee, and when feasible, the preferred drug list
 1126  should include at least two products in a therapeutic class. The
 1127  agency may post the preferred drug list and updates to the
 1128  preferred drug list on an Internet website without following the
 1129  rulemaking procedures of chapter 120. Antiretroviral agents are
 1130  excluded from the preferred drug list. The agency shall also
 1131  limit the amount of a prescribed drug dispensed to no more than
 1132  a 34-day supply unless the drug products’ smallest marketed
 1133  package is greater than a 34-day supply, or the drug is
 1134  determined by the agency to be a maintenance drug in which case
 1135  a 100-day maximum supply may be authorized. The agency may is
 1136  authorized to seek any federal waivers necessary to implement
 1137  these cost-control programs and to continue participation in the
 1138  federal Medicaid rebate program, or alternatively to negotiate
 1139  state-only manufacturer rebates. The agency may adopt rules to
 1140  administer implement this subparagraph. The agency shall
 1141  continue to provide unlimited contraceptive drugs and items. The
 1142  agency must establish procedures to ensure that:
 1143         a. There is a response to a request for prior consultation
 1144  by telephone or other telecommunication device within 24 hours
 1145  after receipt of a request for prior consultation; and
 1146         b. A 72-hour supply of the drug prescribed is provided in
 1147  an emergency or when the agency does not provide a response
 1148  within 24 hours as required by sub-subparagraph a.
 1149         2. Reimbursement to pharmacies for Medicaid prescribed
 1150  drugs shall be set at the lowest lesser of: the average
 1151  wholesale price (AWP) minus 16.4 percent, the wholesaler
 1152  acquisition cost (WAC) plus 1.5 4.75 percent, the federal upper
 1153  limit (FUL), the state maximum allowable cost (SMAC), or the
 1154  usual and customary (UAC) charge billed by the provider.
 1155         3. The agency shall develop and implement a process for
 1156  managing the drug therapies of Medicaid recipients who are using
 1157  significant numbers of prescribed drugs each month. The
 1158  management process may include, but is not limited to,
 1159  comprehensive, physician-directed medical-record reviews, claims
 1160  analyses, and case evaluations to determine the medical
 1161  necessity and appropriateness of a patient’s treatment plan and
 1162  drug therapies. The agency may contract with a private
 1163  organization to provide drug-program-management services. The
 1164  Medicaid drug benefit management program shall include
 1165  initiatives to manage drug therapies for HIV/AIDS patients,
 1166  patients using 20 or more unique prescriptions in a 180-day
 1167  period, and the top 1,000 patients in annual spending. The
 1168  agency shall enroll any Medicaid recipient in the drug benefit
 1169  management program if he or she meets the specifications of this
 1170  provision and is not enrolled in a Medicaid health maintenance
 1171  organization.
 1172         4. The agency may limit the size of its pharmacy network
 1173  based on need, competitive bidding, price negotiations,
 1174  credentialing, or similar criteria. The agency shall give
 1175  special consideration to rural areas in determining the size and
 1176  location of pharmacies included in the Medicaid pharmacy
 1177  network. A pharmacy credentialing process may include criteria
 1178  such as a pharmacy’s full-service status, location, size,
 1179  patient educational programs, patient consultation, disease
 1180  management services, and other characteristics. The agency may
 1181  impose a moratorium on Medicaid pharmacy enrollment if when it
 1182  is determined that it has a sufficient number of Medicaid
 1183  participating providers. The agency must allow dispensing
 1184  practitioners to participate as a part of the Medicaid pharmacy
 1185  network regardless of the practitioner’s proximity to any other
 1186  entity that is dispensing prescription drugs under the Medicaid
 1187  program. A dispensing practitioner must meet all credentialing
 1188  requirements applicable to his or her practice, as determined by
 1189  the agency.
 1190         5. The agency shall develop and implement a program that
 1191  requires Medicaid practitioners who prescribe drugs to use a
 1192  counterfeit-proof prescription pad for Medicaid prescriptions.
 1193  The agency shall require the use of standardized counterfeit
 1194  proof prescription pads by Medicaid-participating prescribers or
 1195  prescribers who write prescriptions for Medicaid recipients. The
 1196  agency may implement the program in targeted geographic areas or
 1197  statewide.
 1198         6. The agency may enter into arrangements that require
 1199  manufacturers of generic drugs prescribed to Medicaid recipients
 1200  to provide rebates of at least 15.1 percent of the average
 1201  manufacturer price for the manufacturer’s generic products.
 1202  These arrangements shall require that if a generic-drug
 1203  manufacturer pays federal rebates for Medicaid-reimbursed drugs
 1204  at a level below 15.1 percent, the manufacturer must provide a
 1205  supplemental rebate to the state in an amount necessary to
 1206  achieve a 15.1-percent rebate level.
 1207         7. The agency may establish a preferred drug list as
 1208  described in this subsection, and, pursuant to the establishment
 1209  of such preferred drug list, it is authorized to negotiate
 1210  supplemental rebates from manufacturers that are in addition to
 1211  those required by Title XIX of the Social Security Act and at no
 1212  less than 14 percent of the average manufacturer price as
 1213  defined in 42 U.S.C. s. 1936 on the last day of a quarter unless
 1214  the federal or supplemental rebate, or both, equals or exceeds
 1215  29 percent. There is no upper limit on the supplemental rebates
 1216  the agency may negotiate. The agency may determine that specific
 1217  products, brand-name or generic, are competitive at lower rebate
 1218  percentages. Agreement to pay the minimum supplemental rebate
 1219  percentage will guarantee a manufacturer that the Medicaid
 1220  Pharmaceutical and Therapeutics Committee will consider a
 1221  product for inclusion on the preferred drug list. However, a
 1222  pharmaceutical manufacturer is not guaranteed placement on the
 1223  preferred drug list by simply paying the minimum supplemental
 1224  rebate. Agency decisions will be made on the clinical efficacy
 1225  of a drug and recommendations of the Medicaid Pharmaceutical and
 1226  Therapeutics Committee, as well as the price of competing
 1227  products minus federal and state rebates. The agency may is
 1228  authorized to contract with an outside agency or contractor to
 1229  conduct negotiations for supplemental rebates. For the purposes
 1230  of this section, the term “supplemental rebates” means cash
 1231  rebates. Effective July 1, 2004, Value-added programs as a
 1232  substitution for supplemental rebates are prohibited. The agency
 1233  may is authorized to seek any federal waivers to implement this
 1234  initiative.
 1235         8. The agency for Health Care Administration shall expand
 1236  home delivery of pharmacy products. The agency may amend the
 1237  state plan and issue a procurement, as necessary, in order to
 1238  implement this program. The procurements must include agreements
 1239  with a pharmacy or pharmacies located in the state to provide
 1240  mail order delivery services at no cost to the recipients who
 1241  elect to receive home delivery of pharmacy products. The
 1242  procurement must focus on serving recipients with chronic
 1243  diseases for which pharmacy expenditures represent a significant
 1244  portion of Medicaid pharmacy expenditures or which impact a
 1245  significant portion of the Medicaid population. To assist
 1246  Medicaid patients in securing their prescriptions and reduce
 1247  program costs, the agency shall expand its current mail-order
 1248  pharmacy diabetes-supply program to include all generic and
 1249  brand-name drugs used by Medicaid patients with diabetes.
 1250  Medicaid recipients in the current program may obtain
 1251  nondiabetes drugs on a voluntary basis. This initiative is
 1252  limited to the geographic area covered by the current contract.
 1253  The agency may seek and implement any federal waivers necessary
 1254  to implement this subparagraph.
 1255         9. The agency shall limit to one dose per month any drug
 1256  prescribed to treat erectile dysfunction.
 1257         10.a. The agency may implement a Medicaid behavioral drug
 1258  management system. The agency may contract with a vendor that
 1259  has experience in operating behavioral drug management systems
 1260  to implement this program. The agency may is authorized to seek
 1261  federal waivers to implement this program.
 1262         b. The agency, in conjunction with the Department of
 1263  Children and Family Services, may implement the Medicaid
 1264  behavioral drug management system that is designed to improve
 1265  the quality of care and behavioral health prescribing practices
 1266  based on best practice guidelines, improve patient adherence to
 1267  medication plans, reduce clinical risk, and lower prescribed
 1268  drug costs and the rate of inappropriate spending on Medicaid
 1269  behavioral drugs. The program may include the following
 1270  elements:
 1271         (I) Provide for the development and adoption of best
 1272  practice guidelines for behavioral health-related drugs such as
 1273  antipsychotics, antidepressants, and medications for treating
 1274  bipolar disorders and other behavioral conditions; translate
 1275  them into practice; review behavioral health prescribers and
 1276  compare their prescribing patterns to a number of indicators
 1277  that are based on national standards; and determine deviations
 1278  from best practice guidelines.
 1279         (II) Implement processes for providing feedback to and
 1280  educating prescribers using best practice educational materials
 1281  and peer-to-peer consultation.
 1282         (III) Assess Medicaid beneficiaries who are outliers in
 1283  their use of behavioral health drugs with regard to the numbers
 1284  and types of drugs taken, drug dosages, combination drug
 1285  therapies, and other indicators of improper use of behavioral
 1286  health drugs.
 1287         (IV) Alert prescribers to patients who fail to refill
 1288  prescriptions in a timely fashion, are prescribed multiple same
 1289  class behavioral health drugs, and may have other potential
 1290  medication problems.
 1291         (V) Track spending trends for behavioral health drugs and
 1292  deviation from best practice guidelines.
 1293         (VI) Use educational and technological approaches to
 1294  promote best practices, educate consumers, and train prescribers
 1295  in the use of practice guidelines.
 1296         (VII) Disseminate electronic and published materials.
 1297         (VIII) Hold statewide and regional conferences.
 1298         (IX) Implement a disease management program with a model
 1299  quality-based medication component for severely mentally ill
 1300  individuals and emotionally disturbed children who are high
 1301  users of care.
 1302         11.a. The agency shall implement a Medicaid prescription
 1303  drug management system.
 1304         a. The agency may contract with a vendor that has
 1305  experience in operating prescription drug management systems in
 1306  order to implement this system. Any management system that is
 1307  implemented in accordance with this subparagraph must rely on
 1308  cooperation between physicians and pharmacists to determine
 1309  appropriate practice patterns and clinical guidelines to improve
 1310  the prescribing, dispensing, and use of drugs in the Medicaid
 1311  program. The agency may seek federal waivers to implement this
 1312  program.
 1313         b. The drug management system must be designed to improve
 1314  the quality of care and prescribing practices based on best
 1315  practice guidelines, improve patient adherence to medication
 1316  plans, reduce clinical risk, and lower prescribed drug costs and
 1317  the rate of inappropriate spending on Medicaid prescription
 1318  drugs. The program must:
 1319         (I) Provide for the development and adoption of best
 1320  practice guidelines for the prescribing and use of drugs in the
 1321  Medicaid program, including translating best practice guidelines
 1322  into practice; reviewing prescriber patterns and comparing them
 1323  to indicators that are based on national standards and practice
 1324  patterns of clinical peers in their community, statewide, and
 1325  nationally; and determine deviations from best practice
 1326  guidelines.
 1327         (II) Implement processes for providing feedback to and
 1328  educating prescribers using best practice educational materials
 1329  and peer-to-peer consultation.
 1330         (III) Assess Medicaid recipients who are outliers in their
 1331  use of a single or multiple prescription drugs with regard to
 1332  the numbers and types of drugs taken, drug dosages, combination
 1333  drug therapies, and other indicators of improper use of
 1334  prescription drugs.
 1335         (IV) Alert prescribers to recipients patients who fail to
 1336  refill prescriptions in a timely fashion, are prescribed
 1337  multiple drugs that may be redundant or contraindicated, or may
 1338  have other potential medication problems.
 1339         (V) Track spending trends for prescription drugs and
 1340  deviation from best practice guidelines.
 1341         (VI) Use educational and technological approaches to
 1342  promote best practices, educate consumers, and train prescribers
 1343  in the use of practice guidelines.
 1344         (VII) Disseminate electronic and published materials.
 1345         (VIII) Hold statewide and regional conferences.
 1346         (IX) Implement disease management programs in cooperation
 1347  with physicians and pharmacists, along with a model quality
 1348  based medication component for individuals having chronic
 1349  medical conditions.
 1350         12. The agency may is authorized to contract for drug
 1351  rebate administration, including, but not limited to,
 1352  calculating rebate amounts, invoicing manufacturers, negotiating
 1353  disputes with manufacturers, and maintaining a database of
 1354  rebate collections.
 1355         13. The agency may specify the preferred daily dosing form
 1356  or strength for the purpose of promoting best practices with
 1357  regard to the prescribing of certain drugs as specified in the
 1358  General Appropriations Act and ensuring cost-effective
 1359  prescribing practices.
 1360         14. The agency may require prior authorization for
 1361  Medicaid-covered prescribed drugs. The agency may, but is not
 1362  required to, prior-authorize the use of a product:
 1363         a. For an indication not approved in labeling;
 1364         b. To comply with certain clinical guidelines; or
 1365         c. If the product has the potential for overuse, misuse, or
 1366  abuse.
 1367  
 1368  The agency may require the prescribing professional to provide
 1369  information about the rationale and supporting medical evidence
 1370  for the use of a drug. The agency may post prior authorization
 1371  criteria and protocol and updates to the list of drugs that are
 1372  subject to prior authorization on an Internet website without
 1373  amending its rule or engaging in additional rulemaking.
 1374         15. The agency, in conjunction with the Pharmaceutical and
 1375  Therapeutics Committee, may require age-related prior
 1376  authorizations for certain prescribed drugs. The agency may
 1377  preauthorize the use of a drug for a recipient who may not meet
 1378  the age requirement or may exceed the length of therapy for use
 1379  of this product as recommended by the manufacturer and approved
 1380  by the Food and Drug Administration. Prior authorization may
 1381  require the prescribing professional to provide information
 1382  about the rationale and supporting medical evidence for the use
 1383  of a drug.
 1384         16. The agency shall implement a step-therapy prior
 1385  authorization approval process for medications excluded from the
 1386  preferred drug list. Medications listed on the preferred drug
 1387  list must be used within the previous 12 months before prior to
 1388  the alternative medications that are not listed. The step
 1389  therapy prior authorization may require the prescriber to use
 1390  the medications of a similar drug class or for a similar medical
 1391  indication unless contraindicated in the Food and Drug
 1392  Administration labeling. The trial period between the specified
 1393  steps may vary according to the medical indication. The step
 1394  therapy approval process shall be developed in accordance with
 1395  the committee as stated in s. 409.91195(7) and (8). A drug
 1396  product may be approved without meeting the step-therapy prior
 1397  authorization criteria if the prescribing physician provides the
 1398  agency with additional written medical or clinical documentation
 1399  that the product is medically necessary because:
 1400         a. There is not a drug on the preferred drug list to treat
 1401  the disease or medical condition which is an acceptable clinical
 1402  alternative;
 1403         b. The alternatives have been ineffective in the treatment
 1404  of the beneficiary’s disease; or
 1405         c. Based on historic evidence and known characteristics of
 1406  the patient and the drug, the drug is likely to be ineffective,
 1407  or the number of doses have been ineffective.
 1408  
 1409  The agency shall work with the physician to determine the best
 1410  alternative for the patient. The agency may adopt rules waiving
 1411  the requirements for written clinical documentation for specific
 1412  drugs in limited clinical situations.
 1413         17. The agency shall implement a return and reuse program
 1414  for drugs dispensed by pharmacies to institutional recipients,
 1415  which includes payment of a $5 restocking fee for the
 1416  implementation and operation of the program. The return and
 1417  reuse program shall be implemented electronically and in a
 1418  manner that promotes efficiency. The program must permit a
 1419  pharmacy to exclude drugs from the program if it is not
 1420  practical or cost-effective for the drug to be included and must
 1421  provide for the return to inventory of drugs that cannot be
 1422  credited or returned in a cost-effective manner. The agency
 1423  shall determine if the program has reduced the amount of
 1424  Medicaid prescription drugs which are destroyed on an annual
 1425  basis and if there are additional ways to ensure more
 1426  prescription drugs are not destroyed which could safely be
 1427  reused. The agency’s conclusion and recommendations shall be
 1428  reported to the Legislature by December 1, 2005.
 1429         Section 13. Paragraph (m) is added to subsection (2) and
 1430  subsection (15) is added to section 409.9122, Florida Statutes,
 1431  to read:
 1432         409.9122 Mandatory Medicaid managed care enrollment;
 1433  programs and procedures.—
 1434         (2)
 1435         (m) If the Medicaid recipient is diagnosed with HIV/AIDS
 1436  and resides in Broward, Miami-Dade, or Palm Beach counties, the
 1437  agency shall assign the recipient to a managed care plan that is
 1438  a health maintenance organization authorized under Chapter 641,
 1439  under contract with the agency on July 1, 2011, and which offers
 1440  a delivery system through a university-based teaching and
 1441  research-oriented organization that specializes in providing
 1442  health care services and treatment for individuals diagnosed
 1443  with HIV/AIDS.
 1444         (15) The agency shall contract with a single provider
 1445  service network to function as a managing entity for the
 1446  MediPass program in all counties with fewer than two prepaid
 1447  plans. The contractor shall be responsible for implementing
 1448  preauthorization procedures, case management programs, and
 1449  utilization management initiatives in order to improve care
 1450  coordination and patient outcomes while reducing costs. The
 1451  contractor may earn an administrative fee if the fee is less
 1452  than any savings as determined by the reconciliation process
 1453  under s. 409.912(4)(d)1.
 1454         Section 14. Section 636.0145, Florida Statutes, is amended
 1455  to read:
 1456         636.0145 Certain entities contracting with Medicaid.
 1457  Notwithstanding the requirements of s. 409.912(4)(b), an entity
 1458  that is providing comprehensive inpatient and outpatient mental
 1459  health care services to certain Medicaid recipients in
 1460  Hillsborough, Highlands, Hardee, Manatee, and Polk Counties
 1461  through a capitated, prepaid arrangement pursuant to the federal
 1462  waiver provided for in s. 409.905(5) must become licensed under
 1463  chapter 636 by December 31, 1998. Any entity licensed under this
 1464  chapter which provides services solely to Medicaid recipients
 1465  under a contract with Medicaid is shall be exempt from ss.
 1466  636.017, 636.018, 636.022, 636.028, and 636.034, and 636.066(1).
 1467         Section 15. The amendments to s. 636.0145, Florida
 1468  Statutes, under this act shall operate prospectively and do not
 1469  provide a basis for relief from or assessment of taxes not paid,
 1470  or for determining any denial of or right to a refund of taxes
 1471  paid before the effective date of the act.
 1472         Section 16. (1) The Legislature finds that hundreds of
 1473  millions of dollars appropriated annually in support of the
 1474  state’s Medicaid program and other critical health programs come
 1475  directly from revenues resulting from the settlement in State of
 1476  Florida v. American Tobacco Co., No. 95-1466AH (Fla. 15th Cir.
 1477  Ct.), that maintaining those revenues is critical to the health
 1478  of this state’s residents, that s. 569.23(3), Florida Statutes,
 1479  protects the continued receipt of those revenues, that the
 1480  sunset of s. 569.23(3), Florida Statutes, will undermine
 1481  financial support for the state’s Medicaid and other critical
 1482  health programs, and that the sunset of that subsection should
 1483  therefore be repealed.
 1484         (2) Paragraph (f) of subsection (3) of section 569.23,
 1485  Florida Statutes, is repealed.
 1486         Section 17. Notwithstanding s. 430.707, Florida Statutes,
 1487  and subject to federal approval of the application to be a site
 1488  for the Program of All-inclusive Care for the Elderly, the
 1489  Agency for Health Care Administration shall contract with one
 1490  private health care organization, the sole member of which is a
 1491  private, not-for-profit corporation that owns and manages health
 1492  care organizations which provide comprehensive long-term care
 1493  services, including nursing home, assisted living, independent
 1494  housing, home care, adult day care, and care management, with a
 1495  board-certified, trained geriatrician as the medical director.
 1496  This organization shall provide these services to frail and
 1497  elderly persons who reside in Palm Beach County. The
 1498  organization is exempt from the requirements of chapter 641,
 1499  Florida Statutes. The agency, in consultation with the
 1500  Department of Elderly Affairs and subject to an appropriation,
 1501  shall approve up to 150 initial enrollees in the Program of All
 1502  inclusive Care for the Elderly established by this organization
 1503  to serve elderly persons who reside in Palm Beach County.
 1504         Section 18. This act shall take effect July 1, 2011.
 1505  
 1506  ================= T I T L E  A M E N D M E N T ================
 1507         And the title is amended as follows:
 1508         Delete everything before the enacting clause
 1509  and insert:
 1510                        A bill to be entitled                      
 1511         An act relating to Medicaid; amending s. 400.23, F.S.;
 1512         revising the minimum staffing requirements for nursing
 1513         homes; amending s. 408.815, F.S.; requiring that the
 1514         Agency for Health Care Administration deny an
 1515         application for a license or license renewal of an
 1516         applicant, a controlling interest of the applicant, or
 1517         any entity in which a controlling interest of the
 1518         applicant was an owner or officer during the
 1519         occurrence of certain actions; authorizing the agency
 1520         to consider certain mitigating circumstances;
 1521         authorizing the agency to extend a license expiration
 1522         date under certain circumstances; amending s. 409.904,
 1523         F.S.; repealing the sunset of provisions authorizing
 1524         the federal waiver for certain persons age 65 and
 1525         older or who have a disability; repealing the sunset
 1526         of provisions authorizing a specified medically needy
 1527         program; eliminating the limit to services placed on
 1528         the medically needy program for pregnant women and
 1529         children younger than age 21; amending s. 409.905,
 1530         F.S.; deleting provisions requiring that the agency
 1531         implement hospitalist programs; amending s. 409.908,
 1532         F.S.; revising the factors that are excluded from the
 1533         direct care subcomponent of the long-term care
 1534         reimbursement plan for nursing home care; revising the
 1535         factors for calculating the maximum allowable fee for
 1536         pharmaceutical ingredient costs; continuing the
 1537         requirement that the Agency for Health Care
 1538         Administration set certain institutional provider
 1539         reimbursement rates in a manner that results in no
 1540         automatic cost-based statewide expenditure increase;
 1541         deleting an obsolete requirement to establish
 1542         workgroups to evaluate alternate reimbursement and
 1543         payment methods; eliminating the repeal date of the
 1544         suspension of the use of cost data to set certain
 1545         institutional provider reimbursement rates; amending
 1546         s. 409.9082, F.S.; revising the aggregated amount of
 1547         the quality assessment for nursing home facilities;
 1548         exempting certain nursing home facilities from the
 1549         quality assessment; amending s. 409.9083, F.S.;
 1550         eliminating the repeal date of the quality assessment
 1551         on privately operated intermediate care facilities for
 1552         the developmentally disabled; amending s. 409.911,
 1553         F.S.; updating references to data to be used for the
 1554         disproportionate share program; providing that certain
 1555         hospitals eligible for payments remain eligible for
 1556         payments during the next fiscal year; amending s.
 1557         409.9112, F.S.; extending the prohibition against
 1558         distributing moneys under the regional perinatal
 1559         intensive care centers disproportionate share program
 1560         for another year; amending s. 409.9113, F.S.;
 1561         extending the disproportionate share program for
 1562         teaching hospitals for another year; amending s.
 1563         409.9117, F.S.; extending the prohibition against
 1564         distributing moneys under the primary care
 1565         disproportionate share program for another year;
 1566         amending s. 409.912, F.S.; providing for alternatives
 1567         to the statewide inpatient psychiatric program;
 1568         allowing the agency to continue to contract for
 1569         electronic access to certain pharmacology drug
 1570         information; eliminating the requirement to implement
 1571         a wireless handheld clinical pharmacology drug
 1572         information database for practitioners; revising the
 1573         factors for calculating the maximum allowable fee for
 1574         pharmaceutical ingredient costs; deleting obsolete
 1575         provisions; authorizing the agency to seek federal
 1576         approval and to issue a procurement in order to
 1577         implement a home delivery of pharmacy products
 1578         program; establishing the provisions for the
 1579         procurement and the program; eliminating the
 1580         requirement for the expansion of the mail-order
 1581         pharmacy diabetes-supply program; eliminating certain
 1582         provisions of the Medicaid prescription drug
 1583         management program; amending s. 409.9122, F.S.;
 1584         requiring the agency to assign Medicaid recipients
 1585         with HIV/AIDS in certain counties to a certain type of
 1586         managed care plan; requiring the agency to contract
 1587         with a single provider service network to manage the
 1588         MediPass program in certain counties; amending s.
 1589         636.0145, F.S.; exempting certain entities providing
 1590         services solely to Medicaid recipients under a
 1591         Medicaid contract from being subject to the premium
 1592         tax imposed on premiums, contributions, and
 1593         assessments received by prepaid limited health service
 1594         organizations; providing for prospective operation and
 1595         specifying that the act does not provide a basis for
 1596         relief from or assessment of taxes not paid, or for
 1597         determining any denial of or right to a refund of
 1598         taxes paid, before the effective date of the act;
 1599         providing legislative intent with respect to the need
 1600         to maintain revenues that support critical health
 1601         programs; repealing s. 569.23(3)(f), F.S.; abrogating
 1602         the repeal of provisions requiring that appellants of
 1603         tobacco settlement agreement judgments provide
 1604         specified security; authorizing the agency to contract
 1605         with an organization to provide certain benefits under
 1606         a federal program in Palm Beach County; providing an
 1607         exemption from ch. 641, F.S., for the organization;
 1608         authorizing, subject to appropriation, enrollment
 1609         slots for the Program of All-inclusive Care for the
 1610         Elderly in Palm Beach County; providing an effective
 1611         date.