Florida Senate - 2012                              CS for SB 730
       
       
       
       By the Committee on Health Regulation; and Senators Flores,
       Negron, and Gaetz
       
       
       
       588-02046A-12                                          2012730c1
    1                        A bill to be entitled                      
    2         An act relating to Medicaid managed care plans;
    3         amending s. 409.9122, F.S.; requiring the Agency for
    4         Health Care Administration to establish per-member,
    5         per-month payments; substituting the Medicare
    6         Advantage Coordinated Care Plan for the Medicare
    7         Advantage Special Needs Plan; amending s. 409.962,
    8         F.S.; revising the definition of “eligible plan” to
    9         include certain Medicare plans; amending s. 409.967,
   10         F.S.; limiting the penalty that a plan must pay if it
   11         leaves a region before the end of the contract term;
   12         amending s. 409.974, F.S.; correcting a cross
   13         reference; providing that certain Medicare plans are
   14         not subject to procurement requirements or plan
   15         limits; amending s. 409.977, F.S.; requiring dually
   16         eligible Medicaid recipients to be enrolled in the
   17         Medicare plan in which they are already enrolled;
   18         amending s. 409.981, F.S.; revising the list of
   19         Medicare plans that are not subject to procurement
   20         requirements for long-term care plans; amending s.
   21         409.984, F.S.; revising the list of Medicare plans in
   22         which dually eligible Medicaid recipients are enrolled
   23         in order to receive long-term care; providing an
   24         effective date.
   25  
   26  Be It Enacted by the Legislature of the State of Florida:
   27  
   28         Section 1. Subsection (15) of section 409.9122, Florida
   29  Statutes, is amended to read:
   30         409.9122 Mandatory Medicaid managed care enrollment;
   31  programs and procedures.—
   32         (15) The agency shall may establish a per-member, per-month
   33  payment for enrollees who are enrolled in a Medicare Advantage
   34  Coordinated Care Plan and who Medicare Advantage Special Needs
   35  members that are also eligible for Medicaid as a mechanism for
   36  meeting the state’s cost-sharing obligation. The agency may also
   37  develop a per-member, per-month payment only for Medicaid
   38  covered services for which the state is responsible. The agency
   39  shall develop a mechanism to ensure that such per-member, per
   40  month payment enhances the value to the state and enrolled
   41  members by limiting cost sharing, enhances the scope of Medicare
   42  supplemental benefits that are equal to or greater than Medicaid
   43  coverage for select services, and improves care coordination.
   44         Section 2. Subsection (6) of section 409.962, Florida
   45  Statutes, is amended to read:
   46         409.962 Definitions.—As used in this part, except as
   47  otherwise specifically provided, the term:
   48         (6) “Eligible plan” means a health insurer authorized under
   49  chapter 624, an exclusive provider organization authorized under
   50  chapter 627, a health maintenance organization authorized under
   51  chapter 641, or a provider service network authorized under s.
   52  409.912(4)(d), or an accountable care organization authorized
   53  under federal law. For purposes of the managed medical
   54  assistance program, the term also includes the Children’s
   55  Medical Services Network authorized under chapter 391. For
   56  purposes of dually eligible Medicaid and Medicare recipients
   57  enrolled in the managed medical assistance program and the long
   58  term care managed care program, the term also includes entities
   59  qualified under 42 C.F.R. part 422 as Medicare Advantage
   60  Preferred Provider Organizations, Medicare Advantage Provider
   61  sponsored Organizations, Medicare Advantage Health Maintenance
   62  Organizations, Medicare Advantage Coordinated Care Plans, and
   63  Medicare Advantage Special Needs Plans, and the Program of All
   64  inclusive Care for the Elderly.
   65         Section 3. Paragraph (h) of subsection (2) of section
   66  409.967, Florida Statutes, is amended to read:
   67         409.967 Managed care plan accountability.—
   68         (2) The agency shall establish such contract requirements
   69  as are necessary for the operation of the statewide managed care
   70  program. In addition to any other provisions the agency may deem
   71  necessary, the contract must require:
   72         (h) Penalties.—
   73         1. Withdrawal and enrollment reduction.—Managed care plans
   74  that reduce enrollment levels or leave a region before the end
   75  of the contract term must reimburse the agency for the cost of
   76  enrollment changes and other transition activities. If more than
   77  one plan leaves a region at the same time, costs must be shared
   78  by the departing plans proportionate to their enrollments. In
   79  addition to the payment of costs, departing provider services
   80  networks must pay a per-enrollee per enrollee penalty of up to 3
   81  months’ payment and continue to provide services to the enrollee
   82  for 90 days or until the enrollee is enrolled in another plan,
   83  whichever occurs first. In addition to payment of costs, all
   84  other departing plans must pay a penalty of 25 percent of that
   85  portion of the minimum surplus maintained requirement pursuant
   86  to s. 641.225(1) which is attributable to the provision of
   87  coverage to Medicaid enrollees. Plans shall provide at least 180
   88  days’ notice to the agency before withdrawing from a region. If
   89  a managed care plan leaves a region before the end of the
   90  contract term, the agency shall terminate all contracts with
   91  that plan in other regions, pursuant to the termination
   92  procedures in subparagraph 3.
   93         2. Encounter data.—If a plan fails to comply with the
   94  encounter data reporting requirements of this section for 30
   95  days, the agency must assess a fine of $5,000 per day for each
   96  day of noncompliance beginning on the 31st day. On the 31st day,
   97  the agency must notify the plan that the agency will initiate
   98  contract termination procedures on the 90th day unless the plan
   99  comes into compliance before that date.
  100         3. Termination.—If the agency terminates more than one
  101  regional contract with the same managed care plan due to
  102  noncompliance with the requirements of this section, the agency
  103  shall terminate all the regional contracts held by that plan.
  104  When terminating multiple contracts, the agency must develop a
  105  plan to provide for the transition of enrollees to other plans,
  106  and phase in phase-in the terminations over a time period
  107  sufficient to ensure a smooth transition.
  108         Section 4. Subsection (2) of section 409.974, Florida
  109  Statutes, is amended, and subsection (5) is added to that
  110  section, to read:
  111         409.974 Eligible plans.—
  112         (2) QUALITY SELECTION CRITERIA.—In addition to the criteria
  113  established in s. 409.966, the agency shall consider evidence
  114  that an eligible plan has written agreements or signed contracts
  115  or has made substantial progress in establishing relationships
  116  with providers before the plan submitted submitting a response.
  117  The agency shall evaluate and give special weight to evidence of
  118  signed contracts with essential providers as determined defined
  119  by the agency pursuant to s. 409.975(1) 409.975(2). The agency
  120  shall exercise a preference for plans with a provider network in
  121  which more than over 10 percent of the providers use electronic
  122  health records, as defined in s. 408.051. When all other factors
  123  are equal, the agency shall consider whether the organization
  124  has a contract to provide managed long-term care services in the
  125  same region and shall exercise a preference for such plans.
  126         (5) MEDICARE PLANS.—Participation by an entity qualified
  127  under 42 C.F.R. PART 422 as a Medicare Advantage Preferred
  128  Provider Organization, Medicare Advantage Provider-sponsored
  129  Organization, Medicare Advantage Health Maintenance
  130  Organization, Medicare Advantage Coordinated Care Plan, or
  131  Medicare Advantage Special Needs Plan shall be pursuant to a
  132  contract with the agency and is not subject to the procurement
  133  requirements or regional plan limits of this section if the
  134  plan’s Medicaid enrollees in the region consist exclusively of
  135  its current Medicare enrollees who are dually eligible for
  136  Medicaid and Medicare services. Otherwise, such organizations
  137  and plans are subject to all procurement requirements.
  138         Section 5. Subsection (1) of section 409.977, Florida
  139  Statutes, is amended to read:
  140         409.977 Enrollment.—
  141         (1) The agency shall automatically enroll into a managed
  142  care plan those Medicaid recipients who do not voluntarily
  143  choose a plan pursuant to s. 409.969. The agency shall
  144  automatically enroll recipients in plans that meet or exceed the
  145  performance or quality standards established pursuant to s.
  146  409.967 and may not automatically enroll recipients in a plan
  147  that is deficient in those performance or quality standards. If
  148  When a specialty plan is available to accommodate a specific
  149  condition or diagnosis of a recipient, the agency shall assign
  150  the recipient to that plan. In the first year of the first
  151  contract term only, if a recipient was previously enrolled in a
  152  plan that is still available in the region, the agency shall
  153  automatically enroll the recipient in that plan unless an
  154  applicable specialty plan is available. If a recipient is dually
  155  eligible for Medicaid and Medicare services and is currently
  156  receiving Medicare services from an entity listed in s.
  157  409.974(5), the agency shall automatically enroll the recipient
  158  in that plan for Medicaid services if the plan is currently
  159  under contract with the agency pursuant to s. 409.974(5). Except
  160  as otherwise provided in this part, the agency may not engage in
  161  practices that are designed to favor one managed care plan over
  162  another.
  163         Section 6. Subsection (5) of section 409.981, Florida
  164  Statutes, is amended to read:
  165         409.981 Eligible long-term care plans.—
  166         (5) MEDICARE PLANS.—Participation by a Medicare Advantage
  167  Preferred Provider Organization, Medicare Advantage Provider
  168  sponsored Organization, Medicare Advantage Health Maintenance
  169  Organization, Medicare Advantage Coordinated Care Plan, or
  170  Medicare Advantage Special Needs Plan shall be pursuant to a
  171  contract with the agency and is not subject to the procurement
  172  requirements if the plan’s Medicaid enrollees consist
  173  exclusively of its current Medicare enrollees recipients who are
  174  deemed dually eligible for Medicaid and Medicare services.
  175  Otherwise, such organizations and plans Medicare Advantage
  176  Preferred Provider Organizations, Medicare Advantage Provider
  177  sponsored Organizations, and Medicare Advantage Special Needs
  178  Plans are subject to all procurement requirements.
  179         Section 7. Subsection (1) of section 409.984, Florida
  180  Statutes, is amended to read:
  181         409.984 Enrollment in a long-term care managed care plan.—
  182         (1) The agency shall automatically enroll into a long-term
  183  care managed care plan those Medicaid recipients who do not
  184  voluntarily choose a plan pursuant to s. 409.969. The agency
  185  shall automatically enroll recipients in plans that meet or
  186  exceed the performance or quality standards established pursuant
  187  to s. 409.967 and may not automatically enroll recipients in a
  188  plan that is deficient in those performance or quality
  189  standards. If a recipient is deemed dually eligible for Medicaid
  190  and Medicare services and is currently receiving Medicare
  191  services from an entity qualified under 42 C.F.R. part 422 as a
  192  Medicare Advantage Preferred Provider Organization, Medicare
  193  Advantage Provider-sponsored Organization, Medicare Advantage
  194  Health Maintenance Organization, Medicare Advantage Coordinated
  195  Care Plan, or Medicare Advantage Special Needs Plan, the agency
  196  shall automatically enroll the recipient in such plan for
  197  Medicaid services if the plan is under contract with the agency
  198  currently participating in the long-term care managed care
  199  program. Except as otherwise provided in this part, the agency
  200  may not engage in practices that are designed to favor one
  201  managed care plan over another.
  202         Section 8. This act shall take effect July 1, 2012.