SB 2514                                          First Engrossed
       
       
       
       
       
       
       
       
       20172514e1
       
    1                        A bill to be entitled                      
    2         An act relating to health care; amending s. 210.20,
    3         F.S.; providing that a specified percentage of the
    4         cigarette tax, up to a specified amount, be paid
    5         annually to the Florida Consortium of National Cancer
    6         Institute Centers Program, rather than the Sanford
    7         Burnham Medical Research Institute; requiring that the
    8         funds be used to advance cures for cancers afflicting
    9         pediatric populations through basic or applied
   10         research; amending s. 381.922, F.S.; revising the
   11         goals of the William G. “Bill” Bankhead, Jr., and
   12         David Coley Cancer Research Program to include
   13         identifying ways to increase pediatric enrollment in
   14         cancer clinical trials; establishing the Live Like
   15         Bella Initiative to advance progress toward curing
   16         pediatric cancer, subject to an appropriation;
   17         amending s. 394.9082, F.S.; revising the reporting
   18         requirements of the acute care services utilization
   19         database; requiring the Department of Children and
   20         Families to post certain data on its website; creating
   21         the Substance Abuse and Mental Health (SAMH) Safety
   22         Net Network; providing legislative intent; requiring
   23         the Department of Children and Families and the Agency
   24         for Health Care Administration to determine the scope
   25         of services to be offered through providers contracted
   26         with the SAMH Safety Net Network; authorizing the SAMH
   27         Safety Net Network to provide Medicaid reimbursable
   28         services beyond the limits of the state Medicaid plan
   29         under certain circumstances; providing that general
   30         revenue matching funds for the services shall be
   31         derived from the existing unmatched general revenue
   32         funds within the substance abuse and mental health
   33         program and documented through general revenue
   34         expenditure submissions by the department; requiring
   35         the agency, in consultation with the department, to
   36         seek federal authorization for administrative claiming
   37         pursuant to a specified federal program to fund
   38         certain interventions, case managers, and facility
   39         services; requiring the department, in collaboration
   40         with the agency, to document local funding of
   41         behavioral health services; requiring the agency to
   42         seek certain federal matching funds; amending s.
   43         395.602, F.S.; revising the definition of the term
   44         “rural hospital” to include a hospital classified as a
   45         sole community hospital, regardless of the number of
   46         licensed beds; amending s. 400.179, F.S.; providing
   47         that certain fees deposited into the Medicaid nursing
   48         home overpayment account in the Grants and Donations
   49         Trust Fund may be used by the agency for enhanced
   50         payments to nursing facilities as specified in the
   51         General Appropriations Act or other law; amending s.
   52         409.904, F.S.; authorizing the agency to make payments
   53         for medical assistance and related services on behalf
   54         of a person diagnosed with acquired immune deficiency
   55         syndrome who meets certain criteria, subject to the
   56         availability of moneys and specified limitations;
   57         amending s. 409.908, F.S.; revising requirements
   58         related to the long-term care reimbursement plan and
   59         cost reporting system; requiring the calculation of
   60         separate prices for each patient care subcomponent
   61         based on specified cost reports; providing that
   62         certain ceilings and targets apply only to providers
   63         being reimbursed on a cost-based system; expanding the
   64         direct care subcomponent to include allowable therapy
   65         and dietary costs; specifying that allowable ancillary
   66         costs are included in the indirect care cost
   67         subcomponent; requiring the agency to establish, by a
   68         specified date, a technical advisory council to assist
   69         in ongoing development and refining of quality
   70         measures used in the nursing home prospective payment
   71         system; providing for membership; requiring that
   72         nursing home prospective payment rates be rebased at a
   73         specified interval; authorizing the payment of a
   74         direct care supplemental payment to certain providers;
   75         specifying the amount providers will be reimbursed for
   76         a specified period of time, which may be a cost-based
   77         rate or a prospective payment rate; providing for
   78         expiration of this reimbursement mechanism on a
   79         specified date; requiring the agency to reimburse
   80         providers on a cost-based rate or a rebased
   81         prospective payment rate, beginning on a specified
   82         date; requiring that Medicaid pay deductibles and
   83         coinsurance for certain X-ray services provided in an
   84         assisted living facility or in the patient’s home;
   85         amending s. 409.909, F.S.; providing that the agency
   86         shall make payments and distribute funds to qualifying
   87         institutions in addition to hospitals under the
   88         Statewide Medicaid Residency Program; amending s.
   89         409.9082, F.S.; revising the uses of quality
   90         assessment and federal matching funds to include the
   91         partial funding of the quality incentive payment
   92         program for nursing facilities that exceed quality
   93         benchmarks; amending s. 409.911, F.S.; updating
   94         obsolete language; amending s. 409.9119, F.S.;
   95         revising criteria for the participation of hospitals
   96         in the disproportionate share program for specialty
   97         hospitals for children; amending s. 409.913, F.S.;
   98         removing a requirement that the agency provide each
   99         Medicaid recipient with an explanation of benefits;
  100         authorizing the agency to provide an explanation of
  101         benefits to a sample of Medicaid recipients or their
  102         representatives; amending s. 409.975, F.S.;
  103         authorizing, rather than requiring, a managed care
  104         plan to offer a network contract to certain medical
  105         equipment and supplies providers in the region;
  106         requiring the agency to contract with the SAMH Safety
  107         Net Network; specifying that the contract must require
  108         managing entities to provide specified services to
  109         certain individuals; requiring the agency to conduct a
  110         comprehensive readiness assessment before contracting
  111         with the SAMH Safety Net Network; requiring the agency
  112         and the department to develop performance measures for
  113         the SAMH Safety Net Network; requiring the agency and
  114         the department to develop performance measures to
  115         evaluate the SAMH Safety Net Network and its services;
  116         requiring the agency, in consultation with the
  117         department and managing entities, to determine the
  118         rates for services added to the state Medicaid plan;
  119         amending s. 409.979, F.S.; expanding eligibility for
  120         long-term care services to include hospital level of
  121         care for certain individuals diagnosed with cystic
  122         fibrosis; revising eligibility for certain Medicaid
  123         recipients in the long-term care managed care program;
  124         amending s. 409.983, F.S.; eliminating the requirement
  125         that the agency consider facility costs adjusted for
  126         inflation in the establishment of certain payment
  127         rates for nursing homes; requiring the agency to
  128         contract with an additional, not-for-profit
  129         organization that meets certain conditions and offers
  130         specified services to frail elders who reside in
  131         Miami-Dade County, subject to federal approval;
  132         exempting the organization from ch. 641, F.S.,
  133         relating to health care service programs; requiring
  134         the agency, in consultation with the Department of
  135         Elderly Affairs, to approve a certain number of
  136         initial enrollees in the Program of All-inclusive Care
  137         for the Elderly (PACE); requiring the agency to
  138         contract with a specified not-for-profit organization,
  139         a not-for-profit agency serving elders, and a not-for
  140         profit hospice in Leon County to be a site for PACE,
  141         subject to federal approval; authorizing PACE to serve
  142         eligible enrollees in Gadsden, Jefferson, Leon, and
  143         Wakulla Counties; requiring the agency, in
  144         consultation with the department, to approve a certain
  145         number of initial enrollees in PACE at the new site,
  146         subject to an appropriation; amending s. 17 of chapter
  147         2011-61, Laws of Florida; requiring the agency, in
  148         consultation with the department, to approve a certain
  149         number of initial enrollees in PACE to serve frail
  150         elders who reside in certain counties; amending s. 9
  151         of chapter 2016-65, Laws of Florida; revising an
  152         effective date; revising the date that rates for
  153         hospital outpatient services must take effect;
  154         amending s. 29 of chapter 2016-65, Laws of Florida;
  155         requiring the agency, in consultation with the
  156         department, to approve a certain number of enrollees
  157         in the PACE established to serve frail elders who
  158         reside in Hospice Service Area 7; requiring the agency
  159         to contract with a not-for-profit organization that
  160         meets certain criteria to offer specified services to
  161         frail elders who reside in Alachua County, subject to
  162         federal approval; exempting the organization from ch.
  163         641, F.S., relating to health care service programs;
  164         requiring the agency, in consultation with the
  165         department, to approve a certain number of initial
  166         enrollees in PACE at the new site, subject to certain
  167         conditions; requiring the agency to contract with an
  168         organization that meets certain criteria to offer
  169         specified services to frail elders who reside in
  170         certain counties, subject to federal approval;
  171         exempting the organization from ch. 641, F.S.,
  172         relating to health care service programs; requiring
  173         the agency, in consultation with the department, to
  174         approve a certain number of initial enrollees in PACE
  175         at the new site, subject to certain conditions;
  176         providing that the agency may seek any necessary
  177         waiver or state plan amendments to serve a certain
  178         purpose; providing effective dates.
  179          
  180  Be It Enacted by the Legislature of the State of Florida:
  181  
  182         Section 1. Paragraph (c) of subsection (2) of section
  183  210.20, Florida Statutes, is amended to read:
  184         210.20 Employees and assistants; distribution of funds.—
  185         (2) As collections are received by the division from such
  186  cigarette taxes, it shall pay the same into a trust fund in the
  187  State Treasury designated “Cigarette Tax Collection Trust Fund”
  188  which shall be paid and distributed as follows:
  189         (c) Beginning July 1, 2017 2013, and continuing through
  190  June 30, 2033, the division shall from month to month certify to
  191  the Chief Financial Officer the amount derived from the
  192  cigarette tax imposed by s. 210.02, less the service charges
  193  provided for in s. 215.20 and less 0.9 percent of the amount
  194  derived from the cigarette tax imposed by s. 210.02, which shall
  195  be deposited into the Alcoholic Beverage and Tobacco Trust Fund,
  196  specifying an amount equal to 1 percent of the net collections,
  197  not to exceed $3 million annually, and that amount shall be
  198  deposited into the Biomedical Research Trust Fund in the
  199  Department of Health. These funds are appropriated annually in
  200  an amount not to exceed $3 million from the Biomedical Research
  201  Trust Fund for the advancement of cures for cancers afflicting
  202  pediatric populations through basic or applied research,
  203  including, but not limited to, clinical trials and nontoxic drug
  204  discovery. These funds are not included in the calculation for
  205  the distribution of funds pursuant to s. 381.915; however, these
  206  funds shall be distributed to cancer centers participating in
  207  the Florida Consortium of National Cancer Institute Centers
  208  Program in the same proportion as is allocated to each cancer
  209  center in accordance with s. 381.915 and are in addition to any
  210  funds distributed pursuant to that section Department of Health
  211  and the Sanford-Burnham Medical Research Institute to work in
  212  conjunction for the purpose of establishing activities and grant
  213  opportunities in relation to biomedical research.
  214         Section 2. Subsection (2) of section 381.922, Florida
  215  Statutes, is amended to read:
  216         381.922 William G. “Bill” Bankhead, Jr., and David Coley
  217  Cancer Research Program.—
  218         (2) The program shall provide grants for cancer research to
  219  further the search for cures for cancer.
  220         (a) Emphasis shall be given to the following goals, as
  221  those goals support the advancement of such cures:
  222         1. Efforts to significantly expand cancer research capacity
  223  in the state by:
  224         a. Identifying ways to attract new research talent and
  225  attendant national grant-producing researchers to cancer
  226  research facilities in this state;
  227         b. Implementing a peer-reviewed, competitive process to
  228  identify and fund the best proposals to expand cancer research
  229  institutes in this state;
  230         c. Funding through available resources for those proposals
  231  that demonstrate the greatest opportunity to attract federal
  232  research grants and private financial support;
  233         d. Encouraging the employment of bioinformatics in order to
  234  create a cancer informatics infrastructure that enhances
  235  information and resource exchange and integration through
  236  researchers working in diverse disciplines, to facilitate the
  237  full spectrum of cancer investigations;
  238         e. Facilitating the technical coordination, business
  239  development, and support of intellectual property as it relates
  240  to the advancement of cancer research; and
  241         f. Aiding in other multidisciplinary research-support
  242  activities as they inure to the advancement of cancer research.
  243         2. Efforts to improve both research and treatment through
  244  greater participation in clinical trials networks by:
  245         a. Identifying ways to increase pediatric and adult
  246  enrollment in cancer clinical trials;
  247         b. Supporting public and private professional education
  248  programs designed to increase the awareness and knowledge about
  249  cancer clinical trials;
  250         c. Providing tools to cancer patients and community-based
  251  oncologists to aid in the identification of cancer clinical
  252  trials available in the state; and
  253         d. Creating opportunities for the state’s academic cancer
  254  centers to collaborate with community-based oncologists in
  255  cancer clinical trials networks.
  256         3. Efforts to reduce the impact of cancer on disparate
  257  groups by:
  258         a. Identifying those cancers that disproportionately impact
  259  certain demographic groups; and
  260         b. Building collaborations designed to reduce health
  261  disparities as they relate to cancer.
  262         (b) Preference may be given to grant proposals that foster
  263  collaborations among institutions, researchers, and community
  264  practitioners, as such proposals support the advancement of
  265  cures through basic or applied research, including clinical
  266  trials involving cancer patients and related networks.
  267         (c) There is established within the program the Live Like
  268  Bella Initiative. The purpose of the initiative is to advance
  269  progress toward curing pediatric cancer by awarding grants
  270  through the peer-reviewed, competitive process established under
  271  subsection (3). This paragraph is subject to the annual
  272  appropriation of funds by the Legislature.
  273         Section 3. Paragraph (a) of subsection (10) of section
  274  394.9082, Florida Statutes, is republished, paragraph (b) of
  275  that subsection is amended, paragraph (f) is added to that
  276  subsection, and subsection (11) is added to that section, to
  277  read:
  278         394.9082 Behavioral health managing entities.—
  279         (10) ACUTE CARE SERVICES UTILIZATION DATABASE.—The
  280  department shall develop, implement, and maintain standards
  281  under which a managing entity shall collect utilization data
  282  from all public receiving facilities situated within its
  283  geographical service area and all detoxification and addictions
  284  receiving facilities under contract with the managing entity. As
  285  used in this subsection, the term “public receiving facility”
  286  means an entity that meets the licensure requirements of, and is
  287  designated by, the department to operate as a public receiving
  288  facility under s. 394.875 and that is operating as a licensed
  289  crisis stabilization unit.
  290         (a) The department shall develop standards and protocols to
  291  be used for data collection, storage, transmittal, and analysis.
  292  The standards and protocols shall allow for compatibility of
  293  data and data transmittal between public receiving facilities,
  294  detoxification facilities, addictions receiving facilities,
  295  managing entities, and the department for the implementation,
  296  and to meet the requirements, of this subsection.
  297         (b) A managing entity shall require providers specified in
  298  paragraph (a) to submit data, in real time or at least daily, to
  299  the managing entity for:
  300         1. All admissions and discharges of clients receiving
  301  public receiving facility services who qualify as indigent, as
  302  defined in s. 394.4787.
  303         2. All admissions and discharges of clients receiving
  304  substance abuse services in an addictions receiving facility or
  305  detoxification facility pursuant to parts IV and V of chapter
  306  397 who qualify as indigent.
  307         3. The current active census of total licensed and utilized
  308  beds, the number of beds purchased by the department, the number
  309  of clients qualifying as indigent occupying who occupy any of
  310  those beds, and the total number of unoccupied licensed beds,
  311  regardless of funding, and the number in excess of licensed
  312  capacity. Crisis units licensed for both adult and child use
  313  will report as a single unit.
  314         (f) The department shall post on its website, by facility,
  315  the data collected pursuant to this subsection and update such
  316  posting monthly.
  317         (11)SUBSTANCE ABUSE AND MENTAL HEALTH (SAMH) SAFETY NET
  318  NETWORK.—
  319         (a)It is the intent of the Legislature to create the
  320  Substance Abuse and Mental Health (SAMH) Safety Net Network to
  321  support and enhance the community mental health and substance
  322  abuse services currently provided by managing entities. The SAMH
  323  Safety Net Network as used in this section means the managing
  324  entities and their contracted network of providers. Contracted
  325  providers are considered vendors and not subrecipients, as
  326  defined in s. 215.97. Managing entities and their contracted
  327  providers are not public employees for purposes of chapter 112.
  328         (b) The department and the agency shall establish the SAMH
  329  Safety Net Network by adding specific behavioral health services
  330  currently provided by managing entities to the state Medicaid
  331  plan and adjusting the amount of units of services for specific
  332  Medicaid services to better serve Medicaid-eligible individuals
  333  with severe and persistent mental health or substance use
  334  disorders, and their families, who are currently served by
  335  managing entities. It is the intent of the Legislature to have
  336  the department submit documentation of general revenue
  337  expenditures to the agency for the state match for the services
  338  and for the agency to pay managing entities the federal Medicaid
  339  portion for services provided.
  340         1. Behavioral health services currently funded by managing
  341  entities through the substance abuse and mental health program
  342  shall be added by the agency to the state Medicaid plan through
  343  a state plan amendment. These services shall be provided
  344  exclusively through the providers contracted with the SAMH
  345  Safety Net Network. The department and the agency shall
  346  determine which services are essential for individuals served by
  347  managing entities through coordinated systems of care and which
  348  services will most efficiently use state and federal resources.
  349         2. The state Medicaid plan currently limits the amount of
  350  behavioral health services that may be provided to a covered
  351  individual. However, the SAMH Safety Net Network is authorized
  352  to provide Medicaid reimbursable services beyond these limits
  353  when providing services, including, but not limited to,
  354  assessment, group therapy, individual therapy, psychosocial
  355  rehabilitation, day treatment, medication management,
  356  therapeutic onsite services, substance abuse inpatient or
  357  residential detoxification, inpatient hospital services, and
  358  crisis stabilization unit or as appropriate in lieu of services.
  359         (c) The required general revenue matching funds for the
  360  services shall be derived from the existing unmatched general
  361  revenue funds within the substance abuse and mental health
  362  program and documented through general revenue expenditure
  363  submissions by the department. The Medicaid reimbursement for
  364  services provided by the SAMH Safety Net Network shall be
  365  limited to the availability of general revenue matching funds
  366  within the substance abuse and mental health program for such
  367  purpose.
  368         (d) Except as otherwise provided in this part, the state
  369  share of funds sufficient to implement the provisions of this
  370  act shall be redirected from existing general revenue funds in
  371  the department which are used for funding mental health and
  372  substance abuse services, excluding funding for residential
  373  services. The need for these state-only funds must be offset by
  374  the infusion of federal funds made available to the SAMH Safety
  375  Net Network under the provisions of this act.
  376         Section 4. The Agency for Health Care Administration, in
  377  consultation with the Department of Children and Families, shall
  378  seek federal authorization for administrative claiming pursuant
  379  to the Medicaid Administrative Claiming program to fund:
  380         (1)The department’s team-based interventions, including,
  381  but not limited to, community action treatment teams and family
  382  intervention treatment teams, which focus on the entire family
  383  to prevent out-of-home placements in the child welfare,
  384  behavioral health, and criminal justice systems.
  385         (2)Case managers employed by the department’s child
  386  welfare community-based care lead agency who are responsible for
  387  locating, coordinating, and monitoring necessary and appropriate
  388  services extending beyond direct services for Medicaid-eligible
  389  children, including, but not limited to, outreach, referral,
  390  eligibility determination, and case management.
  391         (3)Central receiving facility services for individuals
  392  with mental health or substance use disorders.
  393         Section 5. The Department of Children and Families, in
  394  collaboration with the Agency for Health Care Administration,
  395  shall document the extent to which behavioral health services
  396  are funded with contributions from units of local government.
  397  The agency shall seek federal authority to have these funds
  398  qualify for federal matching funds as certified public
  399  expenditures.
  400         Section 6. Paragraph (e) of subsection (2) of section
  401  395.602, Florida Statutes, is amended to read:
  402         395.602 Rural hospitals.—
  403         (2) DEFINITIONS.—As used in this part, the term:
  404         (e) “Rural hospital” means an acute care hospital licensed
  405  under this chapter, having 100 or fewer licensed beds and an
  406  emergency room, which is:
  407         1. The sole provider within a county with a population
  408  density of up to 100 persons per square mile;
  409         2. An acute care hospital, in a county with a population
  410  density of up to 100 persons per square mile, which is at least
  411  30 minutes of travel time, on normally traveled roads under
  412  normal traffic conditions, from any other acute care hospital
  413  within the same county;
  414         3. A hospital supported by a tax district or subdistrict
  415  whose boundaries encompass a population of up to 100 persons per
  416  square mile;
  417         4. A hospital classified as a sole community hospital under
  418  42 C.F.R. s. 412.92, regardless of the number of which has up to
  419  175 licensed beds;
  420         5. A hospital with a service area that has a population of
  421  up to 100 persons per square mile. As used in this subparagraph,
  422  the term “service area” means the fewest number of zip codes
  423  that account for 75 percent of the hospital’s discharges for the
  424  most recent 5-year period, based on information available from
  425  the hospital inpatient discharge database in the Florida Center
  426  for Health Information and Transparency at the agency; or
  427         6. A hospital designated as a critical access hospital, as
  428  defined in s. 408.07.
  429  
  430  Population densities used in this paragraph must be based upon
  431  the most recently completed United States census. A hospital
  432  that received funds under s. 409.9116 for a quarter beginning no
  433  later than July 1, 2002, is deemed to have been and shall
  434  continue to be a rural hospital from that date through June 30,
  435  2021, if the hospital continues to have up to 100 licensed beds
  436  and an emergency room. An acute care hospital that has not
  437  previously been designated as a rural hospital and that meets
  438  the criteria of this paragraph shall be granted such designation
  439  upon application, including supporting documentation, to the
  440  agency. A hospital that was licensed as a rural hospital during
  441  the 2010-2011 or 2011-2012 fiscal year shall continue to be a
  442  rural hospital from the date of designation through June 30,
  443  2021, if the hospital continues to have up to 100 licensed beds
  444  and an emergency room.
  445         Section 7. Paragraph (d) of subsection (2) of section
  446  400.179, Florida Statutes, is amended to read:
  447         400.179 Liability for Medicaid underpayments and
  448  overpayments.—
  449         (2) Because any transfer of a nursing facility may expose
  450  the fact that Medicaid may have underpaid or overpaid the
  451  transferor, and because in most instances, any such underpayment
  452  or overpayment can only be determined following a formal field
  453  audit, the liabilities for any such underpayments or
  454  overpayments shall be as follows:
  455         (d) Where the transfer involves a facility that has been
  456  leased by the transferor:
  457         1. The transferee shall, as a condition to being issued a
  458  license by the agency, acquire, maintain, and provide proof to
  459  the agency of a bond with a term of 30 months, renewable
  460  annually, in an amount not less than the total of 3 months’
  461  Medicaid payments to the facility computed on the basis of the
  462  preceding 12-month average Medicaid payments to the facility.
  463         2. A leasehold licensee may meet the requirements of
  464  subparagraph 1. by payment of a nonrefundable fee, paid at
  465  initial licensure, paid at the time of any subsequent change of
  466  ownership, and paid annually thereafter, in the amount of 1
  467  percent of the total of 3 months’ Medicaid payments to the
  468  facility computed on the basis of the preceding 12-month average
  469  Medicaid payments to the facility. If a preceding 12-month
  470  average is not available, projected Medicaid payments may be
  471  used. The fee shall be deposited into the Grants and Donations
  472  Trust Fund and shall be accounted for separately as a Medicaid
  473  nursing home overpayment account. These fees shall be used at
  474  the sole discretion of the agency to repay nursing home Medicaid
  475  overpayments or for enhanced payments to nursing facilities as
  476  specified in the General Appropriations Act or other law.
  477  Payment of this fee shall not release the licensee from any
  478  liability for any Medicaid overpayments, nor shall payment bar
  479  the agency from seeking to recoup overpayments from the licensee
  480  and any other liable party. As a condition of exercising this
  481  lease bond alternative, licensees paying this fee must maintain
  482  an existing lease bond through the end of the 30-month term
  483  period of that bond. The agency is herein granted specific
  484  authority to promulgate all rules pertaining to the
  485  administration and management of this account, including
  486  withdrawals from the account, subject to federal review and
  487  approval. This provision shall take effect upon becoming law and
  488  shall apply to any leasehold license application. The financial
  489  viability of the Medicaid nursing home overpayment account shall
  490  be determined by the agency through annual review of the account
  491  balance and the amount of total outstanding, unpaid Medicaid
  492  overpayments owing from leasehold licensees to the agency as
  493  determined by final agency audits. By March 31 of each year, the
  494  agency shall assess the cumulative fees collected under this
  495  subparagraph, minus any amounts used to repay nursing home
  496  Medicaid overpayments and amounts transferred to contribute to
  497  the General Revenue Fund pursuant to s. 215.20. If the net
  498  cumulative collections, minus amounts utilized to repay nursing
  499  home Medicaid overpayments, exceed $25 million, the provisions
  500  of this subparagraph shall not apply for the subsequent fiscal
  501  year.
  502         3. The leasehold licensee may meet the bond requirement
  503  through other arrangements acceptable to the agency. The agency
  504  is herein granted specific authority to promulgate rules
  505  pertaining to lease bond arrangements.
  506         4. All existing nursing facility licensees, operating the
  507  facility as a leasehold, shall acquire, maintain, and provide
  508  proof to the agency of the 30-month bond required in
  509  subparagraph 1., above, on and after July 1, 1993, for each
  510  license renewal.
  511         5. It shall be the responsibility of all nursing facility
  512  operators, operating the facility as a leasehold, to renew the
  513  30-month bond and to provide proof of such renewal to the agency
  514  annually.
  515         6. Any failure of the nursing facility operator to acquire,
  516  maintain, renew annually, or provide proof to the agency shall
  517  be grounds for the agency to deny, revoke, and suspend the
  518  facility license to operate such facility and to take any
  519  further action, including, but not limited to, enjoining the
  520  facility, asserting a moratorium pursuant to part II of chapter
  521  408, or applying for a receiver, deemed necessary to ensure
  522  compliance with this section and to safeguard and protect the
  523  health, safety, and welfare of the facility’s residents. A lease
  524  agreement required as a condition of bond financing or
  525  refinancing under s. 154.213 by a health facilities authority or
  526  required under s. 159.30 by a county or municipality is not a
  527  leasehold for purposes of this paragraph and is not subject to
  528  the bond requirement of this paragraph.
  529         Section 8. Subsection (11) is added to section 409.904,
  530  Florida Statutes, to read:
  531         409.904 Optional payments for eligible persons.—The agency
  532  may make payments for medical assistance and related services on
  533  behalf of the following persons who are determined to be
  534  eligible subject to the income, assets, and categorical
  535  eligibility tests set forth in federal and state law. Payment on
  536  behalf of these Medicaid eligible persons is subject to the
  537  availability of moneys and any limitations established by the
  538  General Appropriations Act or chapter 216.
  539         (11) Subject to federal waiver approval, a person diagnosed
  540  with acquired immune deficiency syndrome (AIDS) who has an AIDS
  541  related opportunistic infection and is at risk of
  542  hospitalization as determined by the agency and whose income is
  543  at or below 300 percent of the Federal Benefit Rate.
  544         Section 9. Subsections (2) and (14) of section 409.908,
  545  Florida Statutes, are amended to read:
  546         409.908 Reimbursement of Medicaid providers.—Subject to
  547  specific appropriations, the agency shall reimburse Medicaid
  548  providers, in accordance with state and federal law, according
  549  to methodologies set forth in the rules of the agency and in
  550  policy manuals and handbooks incorporated by reference therein.
  551  These methodologies may include fee schedules, reimbursement
  552  methods based on cost reporting, negotiated fees, competitive
  553  bidding pursuant to s. 287.057, and other mechanisms the agency
  554  considers efficient and effective for purchasing services or
  555  goods on behalf of recipients. If a provider is reimbursed based
  556  on cost reporting and submits a cost report late and that cost
  557  report would have been used to set a lower reimbursement rate
  558  for a rate semester, then the provider’s rate for that semester
  559  shall be retroactively calculated using the new cost report, and
  560  full payment at the recalculated rate shall be effected
  561  retroactively. Medicare-granted extensions for filing cost
  562  reports, if applicable, shall also apply to Medicaid cost
  563  reports. Payment for Medicaid compensable services made on
  564  behalf of Medicaid eligible persons is subject to the
  565  availability of moneys and any limitations or directions
  566  provided for in the General Appropriations Act or chapter 216.
  567  Further, nothing in this section shall be construed to prevent
  568  or limit the agency from adjusting fees, reimbursement rates,
  569  lengths of stay, number of visits, or number of services, or
  570  making any other adjustments necessary to comply with the
  571  availability of moneys and any limitations or directions
  572  provided for in the General Appropriations Act, provided the
  573  adjustment is consistent with legislative intent.
  574         (2)(a)1. Reimbursement to nursing homes licensed under part
  575  II of chapter 400 and state-owned-and-operated intermediate care
  576  facilities for the developmentally disabled licensed under part
  577  VIII of chapter 400 must be made prospectively.
  578         2. Unless otherwise limited or directed in the General
  579  Appropriations Act, reimbursement to hospitals licensed under
  580  part I of chapter 395 for the provision of swing-bed nursing
  581  home services must be made on the basis of the average statewide
  582  nursing home payment, and reimbursement to a hospital licensed
  583  under part I of chapter 395 for the provision of skilled nursing
  584  services must be made on the basis of the average nursing home
  585  payment for those services in the county in which the hospital
  586  is located. When a hospital is located in a county that does not
  587  have any community nursing homes, reimbursement shall be
  588  determined by averaging the nursing home payments in counties
  589  that surround the county in which the hospital is located.
  590  Reimbursement to hospitals, including Medicaid payment of
  591  Medicare copayments, for skilled nursing services shall be
  592  limited to 30 days, unless a prior authorization has been
  593  obtained from the agency. Medicaid reimbursement may be extended
  594  by the agency beyond 30 days, and approval must be based upon
  595  verification by the patient’s physician that the patient
  596  requires short-term rehabilitative and recuperative services
  597  only, in which case an extension of no more than 15 days may be
  598  approved. Reimbursement to a hospital licensed under part I of
  599  chapter 395 for the temporary provision of skilled nursing
  600  services to nursing home residents who have been displaced as
  601  the result of a natural disaster or other emergency may not
  602  exceed the average county nursing home payment for those
  603  services in the county in which the hospital is located and is
  604  limited to the period of time which the agency considers
  605  necessary for continued placement of the nursing home residents
  606  in the hospital.
  607         (b) Subject to any limitations or directions in the General
  608  Appropriations Act, the agency shall establish and implement a
  609  state Title XIX Long-Term Care Reimbursement Plan for nursing
  610  home care in order to provide care and services in conformance
  611  with the applicable state and federal laws, rules, regulations,
  612  and quality and safety standards and to ensure that individuals
  613  eligible for medical assistance have reasonable geographic
  614  access to such care.
  615         1. The agency shall amend the long-term care reimbursement
  616  plan and cost reporting system to create direct care and
  617  indirect care subcomponents of the patient care component of the
  618  per diem rate. These two subcomponents together shall equal the
  619  patient care component of the per diem rate. Separate prices
  620  cost-based ceilings shall be calculated for each patient care
  621  subcomponent, initially based on the September 2016 rate setting
  622  cost reports and subsequently based on the most recently audited
  623  cost report used during a rebasing year. The direct care
  624  subcomponent of the per diem rate for any providers still being
  625  reimbursed on a cost basis shall be limited by the cost-based
  626  class ceiling, and the indirect care subcomponent may be limited
  627  by the lower of the cost-based class ceiling, the target rate
  628  class ceiling, or the individual provider target. The ceilings
  629  and targets apply only to providers being reimbursed on a cost
  630  based system.
  631         2. The direct care subcomponent shall include salaries and
  632  benefits of direct care staff providing nursing services
  633  including registered nurses, licensed practical nurses, and
  634  certified nursing assistants who deliver care directly to
  635  residents in the nursing home facility, allowable therapy costs,
  636  and dietary costs. This excludes nursing administration, staff
  637  development, the staffing coordinator, and the administrative
  638  portion of the minimum data set and care plan coordinators. The
  639  direct care subcomponent also includes medically necessary
  640  dental care, vision care, hearing care, and podiatric care.
  641         3. All other patient care costs shall be included in the
  642  indirect care cost subcomponent of the patient care per diem
  643  rate, including complex medical equipment, medical supplies, and
  644  other allowable ancillary costs. Costs may not be allocated
  645  directly or indirectly to the direct care subcomponent from a
  646  home office or management company.
  647         4. On July 1 of each year, the agency shall report to the
  648  Legislature direct and indirect care costs, including average
  649  direct and indirect care costs per resident per facility and
  650  direct care and indirect care salaries and benefits per category
  651  of staff member per facility.
  652         5. Before December 31, 2017, the agency must establish a
  653  technical advisory council to assist in ongoing development and
  654  refining of the quality measures used in the nursing home
  655  prospective payment system. The advisory council must include,
  656  but need not be limited to, representatives of nursing home
  657  providers and other interested stakeholders. In order to offset
  658  the cost of general and professional liability insurance, the
  659  agency shall amend the plan to allow for interim rate
  660  adjustments to reflect increases in the cost of general or
  661  professional liability insurance for nursing homes. This
  662  provision shall be implemented to the extent existing
  663  appropriations are available.
  664         6. Every fourth year, the agency shall rebase nursing home
  665  prospective payment rates to reflect changes in cost based on
  666  the most recently audited cost report for each participating
  667  provider.
  668         7. A direct care supplemental payment may be made to
  669  providers whose direct care hours per patient day are above the
  670  80th percentile and who provide Medicaid services to a larger
  671  percentage of Medicaid patients than the state average.
  672         8. For the period beginning on October 1, 2017, and ending
  673  on September 30, 2020, the agency shall reimburse providers the
  674  greater of their September 2016 cost-based rate or their
  675  prospective payment rate. Effective October 1, 2020, the agency
  676  shall reimburse providers the greater of 95 percent of their
  677  cost-based rate or their rebased prospective payment rate, using
  678  the most recently audited cost report for each facility. This
  679  subsection shall expire September 30, 2022.
  680         9. Pediatric, Florida Department of Veterans Affairs, and
  681  government-owned facilities are exempt from the pricing model
  682  established in this subsection and shall remain on a cost-based
  683  prospective payment system. Effective October 1, 2018, the
  684  agency shall set rates for all facilities remaining on a cost
  685  based prospective payment system using each facility’s most
  686  recently audited cost report, eliminating retroactive
  687  settlements.
  688  
  689  It is the intent of the Legislature that the reimbursement plan
  690  achieve the goal of providing access to health care for nursing
  691  home residents who require large amounts of care while
  692  encouraging diversion services as an alternative to nursing home
  693  care for residents who can be served within the community. The
  694  agency shall base the establishment of any maximum rate of
  695  payment, whether overall or component, on the available moneys
  696  as provided for in the General Appropriations Act. The agency
  697  may base the maximum rate of payment on the results of
  698  scientifically valid analysis and conclusions derived from
  699  objective statistical data pertinent to the particular maximum
  700  rate of payment.
  701         (14) Medicare premiums for persons eligible for both
  702  Medicare and Medicaid coverage shall be paid at the rates
  703  established by Title XVIII of the Social Security Act. For
  704  Medicare services rendered to Medicaid-eligible persons,
  705  Medicaid shall pay Medicare deductibles and coinsurance as
  706  follows:
  707         (a) Medicaid’s financial obligation for deductibles and
  708  coinsurance payments shall be based on Medicare allowable fees,
  709  not on a provider’s billed charges.
  710         (b) Medicaid will pay no portion of Medicare deductibles
  711  and coinsurance when payment that Medicare has made for the
  712  service equals or exceeds what Medicaid would have paid if it
  713  had been the sole payor. The combined payment of Medicare and
  714  Medicaid shall not exceed the amount Medicaid would have paid
  715  had it been the sole payor. The Legislature finds that there has
  716  been confusion regarding the reimbursement for services rendered
  717  to dually eligible Medicare beneficiaries. Accordingly, the
  718  Legislature clarifies that it has always been the intent of the
  719  Legislature before and after 1991 that, in reimbursing in
  720  accordance with fees established by Title XVIII for premiums,
  721  deductibles, and coinsurance for Medicare services rendered by
  722  physicians to Medicaid eligible persons, physicians be
  723  reimbursed at the lesser of the amount billed by the physician
  724  or the Medicaid maximum allowable fee established by the Agency
  725  for Health Care Administration, as is permitted by federal law.
  726  It has never been the intent of the Legislature with regard to
  727  such services rendered by physicians that Medicaid be required
  728  to provide any payment for deductibles, coinsurance, or
  729  copayments for Medicare cost sharing, or any expenses incurred
  730  relating thereto, in excess of the payment amount provided for
  731  under the State Medicaid plan for such service. This payment
  732  methodology is applicable even in those situations in which the
  733  payment for Medicare cost sharing for a qualified Medicare
  734  beneficiary with respect to an item or service is reduced or
  735  eliminated. This expression of the Legislature is in
  736  clarification of existing law and shall apply to payment for,
  737  and with respect to provider agreements with respect to, items
  738  or services furnished on or after the effective date of this
  739  act. This paragraph applies to payment by Medicaid for items and
  740  services furnished before the effective date of this act if such
  741  payment is the subject of a lawsuit that is based on the
  742  provisions of this section, and that is pending as of, or is
  743  initiated after, the effective date of this act.
  744         (c) Notwithstanding paragraphs (a) and (b):
  745         1. Medicaid payments for Nursing Home Medicare part A
  746  coinsurance are limited to the Medicaid nursing home per diem
  747  rate less any amounts paid by Medicare, but only up to the
  748  amount of Medicare coinsurance. The Medicaid per diem rate shall
  749  be the rate in effect for the dates of service of the crossover
  750  claims and may not be subsequently adjusted due to subsequent
  751  per diem rate adjustments.
  752         2. Medicaid shall pay all deductibles and coinsurance for
  753  Medicare-eligible recipients receiving freestanding end stage
  754  renal dialysis center services.
  755         3. Medicaid payments for general and specialty hospital
  756  inpatient services are limited to the Medicare deductible and
  757  coinsurance per spell of illness. Medicaid payments for hospital
  758  Medicare Part A coinsurance shall be limited to the Medicaid
  759  hospital per diem rate less any amounts paid by Medicare, but
  760  only up to the amount of Medicare coinsurance. Medicaid payments
  761  for coinsurance shall be limited to the Medicaid per diem rate
  762  in effect for the dates of service of the crossover claims and
  763  may not be subsequently adjusted due to subsequent per diem
  764  adjustments.
  765         4. Medicaid shall pay all deductibles and coinsurance for
  766  Medicare emergency transportation services provided by
  767  ambulances licensed pursuant to chapter 401.
  768         5. Medicaid shall pay all deductibles and coinsurance for
  769  portable X-ray Medicare Part B services provided in a nursing
  770  home, in an assisted living facility, or in the patient’s home.
  771         Section 10. Subsection (4) of section 409.9082, Florida
  772  Statutes, is amended to read:
  773         409.9082 Quality assessment on nursing home facility
  774  providers; exemptions; purpose; federal approval required;
  775  remedies.—
  776         (4) The purpose of the nursing home facility quality
  777  assessment is to ensure continued quality of care. Collected
  778  assessment funds shall be used to obtain federal financial
  779  participation through the Medicaid program to make Medicaid
  780  payments for nursing home facility services up to the amount of
  781  nursing home facility Medicaid rates as calculated in accordance
  782  with the approved state Medicaid plan in effect on December 31,
  783  2007. The quality assessment and federal matching funds shall be
  784  used exclusively for the following purposes and in the following
  785  order of priority:
  786         (a) To reimburse the Medicaid share of the quality
  787  assessment as a pass-through, Medicaid-allowable cost;
  788         (b) To increase to each nursing home facility’s Medicaid
  789  rate, as needed, an amount that restores rate reductions
  790  effective on or after January 1, 2008, as provided in the
  791  General Appropriations Act; and
  792         (c) To partially fund the quality incentive payment program
  793  for nursing facilities that exceed quality benchmarks increase
  794  each nursing home facility’s Medicaid rate that accounts for the
  795  portion of the total assessment not included in paragraphs (a)
  796  and (b) which begins a phase-in to a pricing model for the
  797  operating cost component.
  798         Section 11. Section 409.909, Florida Statutes, is amended
  799  to read:
  800         409.909 Statewide Medicaid Residency Program.—
  801         (1) The Statewide Medicaid Residency Program is established
  802  to improve the quality of care and access to care for Medicaid
  803  recipients, expand graduate medical education on an equitable
  804  basis, and increase the supply of highly trained physicians
  805  statewide. The agency shall make payments to hospitals licensed
  806  under part I of chapter 395 and to qualifying institutions as
  807  defined in paragraph (2)(c) for graduate medical education
  808  associated with the Medicaid program. This system of payments is
  809  designed to generate federal matching funds under Medicaid and
  810  distribute the resulting funds to participating hospitals on a
  811  quarterly basis in each fiscal year for which an appropriation
  812  is made.
  813         (2) On or before September 15 of each year, the agency
  814  shall calculate an allocation fraction to be used for
  815  distributing funds to participating hospitals and to qualifying
  816  institutions as defined in paragraph (2)(c). On or before the
  817  final business day of each quarter of a state fiscal year, the
  818  agency shall distribute to each participating hospital one
  819  fourth of that hospital’s annual allocation calculated under
  820  subsection (4). The allocation fraction for each participating
  821  hospital is based on the hospital’s number of full-time
  822  equivalent residents and the amount of its Medicaid payments. As
  823  used in this section, the term:
  824         (a) “Full-time equivalent,” or “FTE,” means a resident who
  825  is in his or her residency period, with the initial residency
  826  period defined as the minimum number of years of training
  827  required before the resident may become eligible for board
  828  certification by the American Osteopathic Association Bureau of
  829  Osteopathic Specialists or the American Board of Medical
  830  Specialties in the specialty in which he or she first began
  831  training, not to exceed 5 years. The residency specialty is
  832  defined as reported using the current residency type codes in
  833  the Intern and Resident Information System (IRIS), required by
  834  Medicare. A resident training beyond the initial residency
  835  period is counted as 0.5 FTE, unless his or her chosen specialty
  836  is in primary care, in which case the resident is counted as 1.0
  837  FTE. For the purposes of this section, primary care specialties
  838  include:
  839         1. Family medicine;
  840         2. General internal medicine;
  841         3. General pediatrics;
  842         4. Preventive medicine;
  843         5. Geriatric medicine;
  844         6. Osteopathic general practice;
  845         7. Obstetrics and gynecology;
  846         8. Emergency medicine;
  847         9. General surgery; and
  848         10. Psychiatry.
  849         (b) “Medicaid payments” means the estimated total payments
  850  for reimbursing a hospital for direct inpatient services for the
  851  fiscal year in which the allocation fraction is calculated based
  852  on the hospital inpatient appropriation and the parameters for
  853  the inpatient diagnosis-related group base rate, including
  854  applicable intergovernmental transfers, specified in the General
  855  Appropriations Act, as determined by the agency. Effective July
  856  1, 2017, the term “Medicaid payments” means the estimated total
  857  payments for reimbursing a hospital and qualifying institutions
  858  as defined in paragraph (2)(c) for direct inpatient and
  859  outpatient services for the fiscal year in which the allocation
  860  fraction is calculated based on the hospital inpatient
  861  appropriation and outpatient appropriation and the parameters
  862  for the inpatient diagnosis-related group base rate, including
  863  applicable intergovernmental transfers, specified in the General
  864  Appropriations Act, as determined by the agency.
  865         (c) “Qualifying institution” means a federally Qualified
  866  Health Center holding an Accreditation Council for Graduate
  867  Medical Education institutional accreditation.
  868         (d) “Resident” means a medical intern, fellow, or resident
  869  enrolled in a program accredited by the Accreditation Council
  870  for Graduate Medical Education, the American Association of
  871  Colleges of Osteopathic Medicine, or the American Osteopathic
  872  Association at the beginning of the state fiscal year during
  873  which the allocation fraction is calculated, as reported by the
  874  hospital to the agency.
  875         (3) The agency shall use the following formula to calculate
  876  a participating hospital’s and qualifying institution’s
  877  allocation fraction:
  878  
  879             HAF=[0.9 x (HFTE/TFTE)] + [0.1 x (HMP/TMP)]           
  880  
  881         Where:
  882         HAF=A hospital’s and qualifying institution’s allocation
  883  fraction.
  884         HFTE=A hospital’s and qualifying institution’s total number
  885  of FTE residents.
  886         TFTE=The total FTE residents for all participating
  887  hospitals and qualifying institutions.
  888         HMP=A hospital’s and qualifying institution’s Medicaid
  889  payments.
  890         TMP=The total Medicaid payments for all participating
  891  hospitals and qualifying institutions.
  892  
  893         (4) A hospital’s and qualifying institution’s annual
  894  allocation shall be calculated by multiplying the funds
  895  appropriated for the Statewide Medicaid Residency Program in the
  896  General Appropriations Act by that hospital’s and qualifying
  897  institution’s allocation fraction. If the calculation results in
  898  an annual allocation that exceeds two times the average per FTE
  899  resident amount for all hospitals and qualifying institutions,
  900  the hospital’s and qualifying institution’s annual allocation
  901  shall be reduced to a sum equaling no more than two times the
  902  average per FTE resident. The funds calculated for that hospital
  903  and qualifying institution in excess of two times the average
  904  per FTE resident amount for all hospitals and qualifying
  905  institutions shall be redistributed to participating hospitals
  906  and qualifying institutions whose annual allocation does not
  907  exceed two times the average per FTE resident amount for all
  908  hospitals and qualifying institutions, using the same
  909  methodology and payment schedule specified in this section.
  910         (5) The Graduate Medical Education Startup Bonus Program is
  911  established to provide resources for the education and training
  912  of physicians in specialties which are in a statewide supply
  913  and-demand deficit. Hospitals and qualifying institutions as
  914  defined in paragraph (2)(c) eligible for participation in
  915  subsection (1) are eligible to participate in the Graduate
  916  Medical Education Startup Bonus Program established under this
  917  subsection. Notwithstanding subsection (4) or an FTE’s residency
  918  period, and in any state fiscal year in which funds are
  919  appropriated for the startup bonus program, the agency shall
  920  allocate a $100,000 startup bonus for each newly created
  921  resident position that is authorized by the Accreditation
  922  Council for Graduate Medical Education or Osteopathic
  923  Postdoctoral Training Institution in an initial or established
  924  accredited training program that is in a physician specialty in
  925  statewide supply-and-demand deficit. In any year in which
  926  funding is not sufficient to provide $100,000 for each newly
  927  created resident position, funding shall be reduced pro rata
  928  across all newly created resident positions in physician
  929  specialties in statewide supply-and-demand deficit.
  930         (a) Hospitals and qualifying institutions as defined in
  931  paragraph (2)(c) applying for a startup bonus must submit to the
  932  agency by March 1 their Accreditation Council for Graduate
  933  Medical Education or Osteopathic Postdoctoral Training
  934  Institution approval validating the new resident positions
  935  approved on or after March 2 of the prior fiscal year through
  936  March 1 of the current fiscal year for the physician specialties
  937  identified in a statewide supply-and-demand deficit as provided
  938  in the current fiscal year’s General Appropriations Act. An
  939  applicant hospital or qualifying institution as defined in
  940  paragraph (2)(c) may validate a change in the number of
  941  residents by comparing the number in the prior period
  942  Accreditation Council for Graduate Medical Education or
  943  Osteopathic Postdoctoral Training Institution approval to the
  944  number in the current year.
  945         (b) Any unobligated startup bonus funds on April 15 of each
  946  fiscal year shall be proportionally allocated to hospitals and
  947  to qualifying institutions as defined in paragraph (2)(c)
  948  participating under subsection (3) for existing FTE residents in
  949  the physician specialties in statewide supply-and-demand
  950  deficit. This nonrecurring allocation shall be in addition to
  951  the funds allocated in subsection (4). Notwithstanding
  952  subsection (4), the allocation under this subsection may not
  953  exceed $100,000 per FTE resident.
  954         (c) For purposes of this subsection, physician specialties
  955  and subspecialties, both adult and pediatric, in statewide
  956  supply-and-demand deficit are those identified in the General
  957  Appropriations Act.
  958         (d) The agency shall distribute all funds authorized under
  959  the Graduate Medical Education Startup Bonus Program on or
  960  before the final business day of the fourth quarter of a state
  961  fiscal year.
  962         (6) Beginning in the 2015-2016 state fiscal year, the
  963  agency shall reconcile each participating hospital’s total
  964  number of FTE residents calculated for the state fiscal year 2
  965  years before with its most recently available Medicare cost
  966  reports covering the same time period. Reconciled FTE counts
  967  shall be prorated according to the portion of the state fiscal
  968  year covered by a Medicare cost report. Using the same
  969  definitions, methodology, and payment schedule specified in this
  970  section, the reconciliation shall apply any differences in
  971  annual allocations calculated under subsection (4) to the
  972  current year’s annual allocations.
  973         (7) The agency may adopt rules to administer this section.
  974         Section 12. Paragraph (a) of subsection (2) of section
  975  409.911, Florida Statutes, is amended, and paragraph (b) of that
  976  subsection is republished, to read:
  977         409.911 Disproportionate share program.—Subject to specific
  978  allocations established within the General Appropriations Act
  979  and any limitations established pursuant to chapter 216, the
  980  agency shall distribute, pursuant to this section, moneys to
  981  hospitals providing a disproportionate share of Medicaid or
  982  charity care services by making quarterly Medicaid payments as
  983  required. Notwithstanding the provisions of s. 409.915, counties
  984  are exempt from contributing toward the cost of this special
  985  reimbursement for hospitals serving a disproportionate share of
  986  low-income patients.
  987         (2) The Agency for Health Care Administration shall use the
  988  following actual audited data to determine the Medicaid days and
  989  charity care to be used in calculating the disproportionate
  990  share payment:
  991         (a) The average of the 2009, 2010, and 2011 2007, 2008, and
  992  2009 audited disproportionate share data to determine each
  993  hospital’s Medicaid days and charity care for the 2017-2018
  994  2015-2016 state fiscal year.
  995         (b) If the Agency for Health Care Administration does not
  996  have the prescribed 3 years of audited disproportionate share
  997  data as noted in paragraph (a) for a hospital, the agency shall
  998  use the average of the years of the audited disproportionate
  999  share data as noted in paragraph (a) which is available.
 1000         Section 13. Section 409.9119, Florida Statutes, is amended
 1001  to read:
 1002         409.9119 Disproportionate share program for specialty
 1003  hospitals for children.—In addition to the payments made under
 1004  s. 409.911, the Agency for Health Care Administration shall
 1005  develop and implement a system under which disproportionate
 1006  share payments are made to those hospitals that are separately
 1007  licensed by the state as specialty hospitals for children, have
 1008  a federal Centers for Medicare and Medicaid Services
 1009  certification number in the 3300-3399 range, have Medicaid days
 1010  that exceed 55 percent of their total days and Medicare days
 1011  that are less than 5 percent of their total days, and were
 1012  licensed on January 1, 2012 January 1, 2000, as specialty
 1013  hospitals for children. This system of payments must conform to
 1014  federal requirements and must distribute funds in each fiscal
 1015  year for which an appropriation is made by making quarterly
 1016  Medicaid payments. Notwithstanding s. 409.915, counties are
 1017  exempt from contributing toward the cost of this special
 1018  reimbursement for hospitals that serve a disproportionate share
 1019  of low-income patients. The agency may make disproportionate
 1020  share payments to specialty hospitals for children as provided
 1021  for in the General Appropriations Act.
 1022         (1) Unless specified in the General Appropriations Act, the
 1023  agency shall use the following formula to calculate the total
 1024  amount earned for hospitals that participate in the specialty
 1025  hospital for children disproportionate share program:
 1026  
 1027                        TAE = DSR x BMPD x MD                      
 1028  
 1029  Where:
 1030         TAE = total amount earned by a specialty hospital for
 1031  children.
 1032         DSR = disproportionate share rate.
 1033         BMPD = base Medicaid per diem.
 1034         MD = Medicaid days.
 1035  
 1036         (2) The agency shall calculate the total additional payment
 1037  for hospitals that participate in the specialty hospital for
 1038  children disproportionate share program as follows:
 1039  
 1040                       TAP = (TAE x TA) ÷ STAE                     
 1041  
 1042  Where:
 1043         TAP = total additional payment for a specialty hospital for
 1044  children.
 1045         TAE = total amount earned by a specialty hospital for
 1046  children.
 1047         TA = total appropriation for the specialty hospital for
 1048  children disproportionate share program.
 1049         STAE = sum of total amount earned by each hospital that
 1050  participates in the specialty hospital for children
 1051  disproportionate share program.
 1052  
 1053         (3) A hospital may not receive any payments under this
 1054  section until it achieves full compliance with the applicable
 1055  rules of the agency. A hospital that is not in compliance for
 1056  two or more consecutive quarters may not receive its share of
 1057  the funds. Any forfeited funds must be distributed to the
 1058  remaining participating specialty hospitals for children that
 1059  are in compliance.
 1060         (4) Notwithstanding any provision of this section to the
 1061  contrary, for the 2017-2018 2016-2017 state fiscal year, for
 1062  hospitals achieving full compliance under subsection (3), the
 1063  agency shall make disproportionate share payments to specialty
 1064  hospitals for children as provided in the 2017-2018 2016-2017
 1065  General Appropriations Act. This subsection expires July 1, 2018
 1066  2017.
 1067         Section 14. Subsection (36) of section 409.913, Florida
 1068  Statutes, is amended to read:
 1069         409.913 Oversight of the integrity of the Medicaid
 1070  program.—The agency shall operate a program to oversee the
 1071  activities of Florida Medicaid recipients, and providers and
 1072  their representatives, to ensure that fraudulent and abusive
 1073  behavior and neglect of recipients occur to the minimum extent
 1074  possible, and to recover overpayments and impose sanctions as
 1075  appropriate. Beginning January 1, 2003, and each year
 1076  thereafter, the agency and the Medicaid Fraud Control Unit of
 1077  the Department of Legal Affairs shall submit a joint report to
 1078  the Legislature documenting the effectiveness of the state’s
 1079  efforts to control Medicaid fraud and abuse and to recover
 1080  Medicaid overpayments during the previous fiscal year. The
 1081  report must describe the number of cases opened and investigated
 1082  each year; the sources of the cases opened; the disposition of
 1083  the cases closed each year; the amount of overpayments alleged
 1084  in preliminary and final audit letters; the number and amount of
 1085  fines or penalties imposed; any reductions in overpayment
 1086  amounts negotiated in settlement agreements or by other means;
 1087  the amount of final agency determinations of overpayments; the
 1088  amount deducted from federal claiming as a result of
 1089  overpayments; the amount of overpayments recovered each year;
 1090  the amount of cost of investigation recovered each year; the
 1091  average length of time to collect from the time the case was
 1092  opened until the overpayment is paid in full; the amount
 1093  determined as uncollectible and the portion of the uncollectible
 1094  amount subsequently reclaimed from the Federal Government; the
 1095  number of providers, by type, that are terminated from
 1096  participation in the Medicaid program as a result of fraud and
 1097  abuse; and all costs associated with discovering and prosecuting
 1098  cases of Medicaid overpayments and making recoveries in such
 1099  cases. The report must also document actions taken to prevent
 1100  overpayments and the number of providers prevented from
 1101  enrolling in or reenrolling in the Medicaid program as a result
 1102  of documented Medicaid fraud and abuse and must include policy
 1103  recommendations necessary to prevent or recover overpayments and
 1104  changes necessary to prevent and detect Medicaid fraud. All
 1105  policy recommendations in the report must include a detailed
 1106  fiscal analysis, including, but not limited to, implementation
 1107  costs, estimated savings to the Medicaid program, and the return
 1108  on investment. The agency must submit the policy recommendations
 1109  and fiscal analyses in the report to the appropriate estimating
 1110  conference, pursuant to s. 216.137, by February 15 of each year.
 1111  The agency and the Medicaid Fraud Control Unit of the Department
 1112  of Legal Affairs each must include detailed unit-specific
 1113  performance standards, benchmarks, and metrics in the report,
 1114  including projected cost savings to the state Medicaid program
 1115  during the following fiscal year.
 1116         (36) At least three times a year, The agency may shall
 1117  provide to a sample of each Medicaid recipients recipient or
 1118  their representatives through the distribution of explanations
 1119  his or her representative an explanation of benefits information
 1120  about services reimbursed by the Medicaid program for goods and
 1121  services to such recipients, including in the form of a letter
 1122  that is mailed to the most recent address of the recipient on
 1123  the record with the Department of Children and Families. The
 1124  explanation of benefits must include the patient’s name, the
 1125  name of the health care provider and the address of the location
 1126  where the service was provided, a description of all services
 1127  billed to Medicaid in terminology that should be understood by a
 1128  reasonable person, and information on how to report
 1129  inappropriate or incorrect billing to the agency or other law
 1130  enforcement entities for review or investigation. At least once
 1131  a year, the letter also must include information on how to
 1132  report criminal Medicaid fraud to, the Medicaid Fraud Control
 1133  Unit’s toll-free hotline number, and information about the
 1134  rewards available under s. 409.9203. The explanation of benefits
 1135  may not be mailed for Medicaid independent laboratory services
 1136  as described in s. 409.905(7) or for Medicaid certified match
 1137  services as described in ss. 409.9071 and 1011.70.
 1138         Section 15. Paragraph (e) of subsection (1) of section
 1139  409.975, Florida Statutes, is amended, and subsection (7) is
 1140  added to that section, to read:
 1141         409.975 Managed care plan accountability.—In addition to
 1142  the requirements of s. 409.967, plans and providers
 1143  participating in the managed medical assistance program shall
 1144  comply with the requirements of this section.
 1145         (1) PROVIDER NETWORKS.—Managed care plans must develop and
 1146  maintain provider networks that meet the medical needs of their
 1147  enrollees in accordance with standards established pursuant to
 1148  s. 409.967(2)(c). Except as provided in this section, managed
 1149  care plans may limit the providers in their networks based on
 1150  credentials, quality indicators, and price.
 1151         (e) Each managed care plan may must offer a network
 1152  contract to each home medical equipment and supplies provider in
 1153  the region which meets quality and fraud prevention and
 1154  detection standards established by the plan and which agrees to
 1155  accept the lowest price previously negotiated between the plan
 1156  and another such provider.
 1157         (7) SUBSTANCE ABUSE AND MENTAL HEALTH (SAMH) SAFETY NET
 1158  NETWORK.—
 1159         (a) The agency shall contract with the Substance Abuse and
 1160  Mental Health (SAMH) Safety Net Network, established under s.
 1161  394.9082(11), to plan, coordinate, and contract for delivering
 1162  certain community mental health and substance abuse services,
 1163  thereby improving access to behavioral health care, promoting
 1164  the continuity of such services, and supporting efficient and
 1165  effective delivery of such services under this section. The
 1166  contract must require managing entities to provide specified
 1167  services to Medicaid-eligible individuals with specified
 1168  behaviors, diagnoses, or addictions.
 1169         (b) Before contracting, the agency must conduct a
 1170  comprehensive readiness assessment to ensure that the SAMH
 1171  Safety Net Network has the necessary infrastructure, financial
 1172  resources, and relevant experience to implement the contract.
 1173  The agency and the department shall develop performance measures
 1174  to evaluate the impact of the SAMH Safety Net Network and to
 1175  determine the adequacy, timeliness, and quality of the services
 1176  provided for specified target populations and the efficiency of
 1177  the services in addressing mental health and substance use
 1178  disorders within a community.
 1179         (c) The agency, in consultation with the department and
 1180  managing entities, shall determine the rates for services added
 1181  to the state Medicaid plan. The rates shall be developed based
 1182  on the full cost of the services and reasonable administrative
 1183  costs for providers and managing entities.
 1184         Section 16. Subsections (1) and (2) of section 409.979,
 1185  Florida Statutes, are amended to read:
 1186         409.979 Eligibility.—
 1187         (1) PREREQUISITE CRITERIA FOR ELIGIBILITY.—Medicaid
 1188  recipients who meet all of the following criteria are eligible
 1189  to receive long-term care services and must receive long-term
 1190  care services by participating in the long-term care managed
 1191  care program. The recipient must be:
 1192         (a) Sixty-five years of age or older, or age 18 or older
 1193  and eligible for Medicaid by reason of a disability.
 1194         (b) Determined by the Comprehensive Assessment Review and
 1195  Evaluation for Long-Term Care Services (CARES) preadmission
 1196  screening program to require:
 1197         1. Nursing facility care as defined in s. 409.985(3); or
 1198         2. Hospital level of care for individuals diagnosed with
 1199  cystic fibrosis.
 1200         (2) ENROLLMENT OFFERS.—Subject to the availability of
 1201  funds, the Department of Elderly Affairs shall make offers for
 1202  enrollment to eligible individuals based on a wait-list
 1203  prioritization. Before making enrollment offers, the agency and
 1204  the Department of Elderly Affairs shall determine that
 1205  sufficient funds exist to support additional enrollment into
 1206  plans.
 1207         (a) A Medicaid recipient enrolled in one of the following
 1208  Medicaid home and community-based services waiver programs who
 1209  meets the eligibility criteria established in subsection (1) is
 1210  eligible to participate in the long-term care managed care
 1211  program and must be transitioned into the long-term care managed
 1212  care program by January 1, 2018:
 1213         1. Traumatic Brain and Spinal Cord Injury Waiver.
 1214         2. Adult Cystic Fibrosis Waiver.
 1215         3. Project AIDS Care Waiver.
 1216         (b) The agency shall seek federal approval to terminate the
 1217  Traumatic Brain and Spinal Cord Injury Waiver, the Adult Cystic
 1218  Fibrosis Waiver, and the Project AIDS Care Waiver once all
 1219  eligible Medicaid recipients have transitioned into the long
 1220  term care managed care program.
 1221         Section 17. Subsection (6) of section 409.983, Florida
 1222  Statutes, is amended to read:
 1223         409.983 Long-term care managed care plan payment.—In
 1224  addition to the payment provisions of s. 409.968, the agency
 1225  shall provide payment to plans in the long-term care managed
 1226  care program pursuant to this section.
 1227         (6) The agency shall establish nursing-facility-specific
 1228  payment rates for each licensed nursing home based on facility
 1229  costs adjusted for inflation and other factors as authorized in
 1230  the General Appropriations Act. Payments to long-term care
 1231  managed care plans shall be reconciled, as necessary, to
 1232  reimburse actual payments to nursing facilities resulting from
 1233  changes in nursing home per diem rates, but may not be
 1234  reconciled to actual days experienced by the long-term care
 1235  managed care plans.
 1236         Section 18. Subject to federal approval of the application
 1237  to be a site for the Program of All-inclusive Care for the
 1238  Elderly (PACE), the Agency for Health Care Administration shall
 1239  contract with an additional not-for-profit organization to serve
 1240  individuals and families in Miami-Dade County. The not-for
 1241  profit organization must have a history of serving primarily the
 1242  Hispanic population by providing primary care services,
 1243  nutrition, meals, and adult day care to senior citizens. The
 1244  not-for-profit organization shall leverage existing community
 1245  based care providers and health care organizations to provide
 1246  PACE services to frail elders who reside in Miami-Dade County.
 1247  The organization is exempt from the requirements of chapter 641,
 1248  Florida Statutes. The agency, in consultation with the
 1249  Department of Elderly Affairs and subject to an appropriation,
 1250  shall approve up to 250 initial enrollees in the additional PACE
 1251  site established by this organization to serve frail elders who
 1252  reside in Miami-Dade County.
 1253         Section 19. Notwithstanding section 27 of chapter 2016-65,
 1254  Laws of Florida, and subject to federal approval of the
 1255  application to be a site for the Program of All-inclusive Care
 1256  for the Elderly (PACE), the Agency for Health Care
 1257  Administration shall contract with a not-for-profit
 1258  organization, formed by a partnership with a not-for-profit
 1259  hospital, a not-for-profit agency serving elders, and a not-for
 1260  profit hospice in Leon County. The not-for-profit PACE shall
 1261  serve eligible PACE enrollees in Gadsden, Jefferson, Leon, and
 1262  Wakulla Counties. The Agency for Health Care Administration, in
 1263  consultation with the Department of Elderly Affairs and subject
 1264  to an appropriation, shall approve up to 300 initial enrollees
 1265  for the additional PACE site.
 1266         Section 20. Section 17 of chapter 2011-61, Laws of Florida,
 1267  is amended to read:
 1268         Section 17. Notwithstanding s. 430.707, Florida Statutes,
 1269  and subject to federal approval of the application to be a site
 1270  for the Program of All-inclusive Care for the Elderly, the
 1271  Agency for Health Care Administration shall contract with one
 1272  private health care organization, the sole member of which is a
 1273  private, not-for-profit corporation that owns and manages health
 1274  care organizations which provide comprehensive long-term care
 1275  services, including nursing home, assisted living, independent
 1276  housing, home care, adult day care, and care management, with a
 1277  board-certified, trained geriatrician as the medical director.
 1278  This organization shall provide these services to frail and
 1279  elderly persons who reside in Indian River, Martin, Okeechobee,
 1280  Palm Beach, and St. Lucie Counties County. The organization is
 1281  exempt from the requirements of chapter 641, Florida Statutes.
 1282  The agency, in consultation with the Department of Elderly
 1283  Affairs and subject to an appropriation, shall approve up to 150
 1284  initial enrollees who reside in Palm Beach County and up to 150
 1285  initial enrollees who reside in Martin County in the Program of
 1286  All-inclusive Care for the Elderly established by this
 1287  organization to serve elderly persons who reside in Palm Beach
 1288  County.
 1289         Section 21. Effective June 30, 2017, section 9 of chapter
 1290  2016-65, Laws of Florida, is amended to read:
 1291         Section 9. Effective July 1, 2018 2017, paragraph (b) of
 1292  subsection (6) of section 409.905, Florida Statutes, is amended
 1293  to read:
 1294         409.905 Mandatory Medicaid services.—The agency may make
 1295  payments for the following services, which are required of the
 1296  state by Title XIX of the Social Security Act, furnished by
 1297  Medicaid providers to recipients who are determined to be
 1298  eligible on the dates on which the services were provided. Any
 1299  service under this section shall be provided only when medically
 1300  necessary and in accordance with state and federal law.
 1301  Mandatory services rendered by providers in mobile units to
 1302  Medicaid recipients may be restricted by the agency. Nothing in
 1303  this section shall be construed to prevent or limit the agency
 1304  from adjusting fees, reimbursement rates, lengths of stay,
 1305  number of visits, number of services, or any other adjustments
 1306  necessary to comply with the availability of moneys and any
 1307  limitations or directions provided for in the General
 1308  Appropriations Act or chapter 216.
 1309         (6) HOSPITAL OUTPATIENT SERVICES.—
 1310         (b) The agency shall implement a prospective payment
 1311  methodology for establishing reimbursement rates for outpatient
 1312  hospital services. Rates shall be calculated annually and take
 1313  effect July 1, 2018 2017, and July 1 of each year thereafter.
 1314  The methodology shall categorize the amount and type of services
 1315  used in various ambulatory visits which group together
 1316  procedures and medical visits that share similar characteristics
 1317  and resource utilization.
 1318         1. Adjustments may not be made to the rates after July 31
 1319  of the state fiscal year in which the rates take effect.
 1320         2. Errors in source data or calculations discovered after
 1321  July 31 of each state fiscal year must be reconciled in a
 1322  subsequent rate period. However, the agency may not make any
 1323  adjustment to a hospital’s reimbursement more than 5 years after
 1324  a hospital is notified of an audited rate established by the
 1325  agency. The prohibition against adjustments more than 5 years
 1326  after notification is remedial and applies to actions by
 1327  providers involving Medicaid claims for hospital services.
 1328  Hospital reimbursement is subject to such limits or ceilings as
 1329  may be established in law or described in the agency’s hospital
 1330  reimbursement plan. Specific exemptions to the limits or
 1331  ceilings may be provided in the General Appropriations Act.
 1332         Section 22. Section 29 of chapter 2016-65, Laws of Florida,
 1333  is amended to read:
 1334         Section 29. Subject to federal approval of the application
 1335  to be a site for the Program of All-inclusive Care for the
 1336  Elderly (PACE), the Agency for Health Care Administration shall
 1337  contract with one private, not-for-profit hospice organization
 1338  located in Lake County which operates health care organizations
 1339  licensed in Hospice Areas 7B and 3E and which provides
 1340  comprehensive services, including hospice and palliative care,
 1341  to frail elders who reside in these service areas. The
 1342  organization is exempt from the requirements of chapter 641,
 1343  Florida Statutes. The agency, in consultation with the
 1344  Department of Elderly Affairs and subject to the appropriation
 1345  of funds by the Legislature, shall approve up to 150 initial
 1346  enrollees in the Program of All-inclusive Care for the Elderly
 1347  established by the organization to serve frail elders who reside
 1348  in Hospice Service Areas 7B and 3E. The agency, in consultation
 1349  with the department and subject to an appropriation, shall
 1350  approve up to 150 enrollees in the Program of All-inclusive Care
 1351  for the Elderly established by this organization to serve frail
 1352  elders who reside in Hospice Service Area 7C.
 1353         Section 23. Subject to federal approval of the application
 1354  to be a site for the Program of All-inclusive Care for the
 1355  Elderly (PACE), the Agency for Health Care Administration shall
 1356  contract with one not-for-profit organization that satisfies
 1357  each of the following conditions:
 1358         (1) The organization is exempt from federal income taxation
 1359  as an entity described in s. 501(c)(3) of the Internal Revenue
 1360  Code of 1986, as amended;
 1361         (2) The organization is licensed pursuant to part IV of
 1362  chapter 400, Florida Statutes, to provide hospice services in
 1363  the Agency for Health Care Administration Areas 3 and 4 and
 1364  operates inpatient hospice care centers in each of the following
 1365  counties within those regions: Alachua, Citrus, Clay, Columbia,
 1366  and Putnam;
 1367         (3) The organization has more than 30 years of experience
 1368  as a licensed hospice provider in this state; and
 1369         (4) The organization is affiliated, through common
 1370  ownership or control, with other not-for-profit organizations
 1371  licensed by the agency to provide home health services, to
 1372  operate a nursing home, and to operate an assisted living
 1373  facility.
 1374  
 1375  The approved not-for-profit organization shall provide PACE
 1376  services to frail and elderly persons who reside in Alachua
 1377  County. The organization is exempt from the requirements of
 1378  chapter 641, Florida Statutes. The agency, in consultation with
 1379  the Department of Elder Affairs and subject to an appropriation,
 1380  shall approve up to 150 initial enrollees in the PACE site
 1381  established by this organization to serve frail and elderly
 1382  persons who reside in Alachua County.
 1383         Section 24. Subject to federal approval of the application
 1384  to be a site for the Program of All-inclusive Care for the
 1385  Elderly (PACE), the Agency for Health Care Administration shall
 1386  contract with an organization located in Miami-Dade County that
 1387  owns and operates primary care medical centers in South Florida.
 1388  The organization shall leverage its existing community-based
 1389  care providers to provide PACE services to frail elders who
 1390  reside in Broward, Miami-Dade, and Palm Beach Counties. The
 1391  organization is exempt from the requirements of chapter 641,
 1392  Florida Statutes. The agency, in consultation with the
 1393  Department of Elderly Affairs and subject to an appropriation of
 1394  funds by the Legislature, shall approve up to 300 initial
 1395  enrollees in the PACE site established by the organization for
 1396  frail elders who reside in Broward, Miami-Dade, and Palm Beach
 1397  Counties. The agency may seek any necessary waiver or state plan
 1398  amendments to implement this section.
 1399         Section 25. Except as otherwise expressly provided in this
 1400  act and except for this section, which shall take effect upon
 1401  becoming a law, this act shall take effect July 1, 2017.