Florida Senate - 2017                                     SB 712
       
       
        
       By Senator Bean
       
       4-01261-17                                             2017712__
    1                        A bill to be entitled                      
    2         An act relating to nursing homes; amending s. 409.908,
    3         F.S.; revising provisions related to the setting of
    4         Medicaid reimbursement rates for nursing homes;
    5         requiring the Agency for Healthcare Administration to
    6         recalculate nursing home reimbursement ceilings every
    7         3 years and to make some adjustments; amending s.
    8         409.9082, F.S.; requiring that an increase in a
    9         nursing home facility’s Medicaid rate be allocated
   10         proportionately in accordance with a certain quality
   11         matrix; providing an effective date.
   12          
   13  Be It Enacted by the Legislature of the State of Florida:
   14  
   15         Section 1. Subsection (2) of section 409.908, Florida
   16  Statutes, is amended to read:
   17         409.908 Reimbursement of Medicaid providers.—Subject to
   18  specific appropriations, the agency shall reimburse Medicaid
   19  providers, in accordance with state and federal law, according
   20  to methodologies set forth in the rules of the agency and in
   21  policy manuals and handbooks incorporated by reference therein.
   22  These methodologies may include fee schedules, reimbursement
   23  methods based on cost reporting, negotiated fees, competitive
   24  bidding pursuant to s. 287.057, and other mechanisms the agency
   25  considers efficient and effective for purchasing services or
   26  goods on behalf of recipients. If a provider is reimbursed based
   27  on cost reporting and submits a cost report late and that cost
   28  report would have been used to set a lower reimbursement rate
   29  for a rate semester, then the provider’s rate for that semester
   30  shall be retroactively calculated using the new cost report, and
   31  full payment at the recalculated rate shall be effected
   32  retroactively. Medicare-granted extensions for filing cost
   33  reports, if applicable, shall also apply to Medicaid cost
   34  reports. Payment for Medicaid compensable services made on
   35  behalf of Medicaid eligible persons is subject to the
   36  availability of moneys and any limitations or directions
   37  provided for in the General Appropriations Act or chapter 216.
   38  Further, nothing in this section shall be construed to prevent
   39  or limit the agency from adjusting fees, reimbursement rates,
   40  lengths of stay, number of visits, or number of services, or
   41  making any other adjustments necessary to comply with the
   42  availability of moneys and any limitations or directions
   43  provided for in the General Appropriations Act, provided the
   44  adjustment is consistent with legislative intent.
   45         (2)(a)1. Reimbursement to nursing homes licensed under part
   46  II of chapter 400 and state-owned-and-operated intermediate care
   47  facilities for the developmentally disabled licensed under part
   48  VIII of chapter 400 must be made prospectively.
   49         2. Unless otherwise limited or directed in the General
   50  Appropriations Act, reimbursement to hospitals licensed under
   51  part I of chapter 395 for the provision of swing-bed nursing
   52  home services must be made on the basis of the average statewide
   53  nursing home payment, and reimbursement to a hospital licensed
   54  under part I of chapter 395 for the provision of skilled nursing
   55  services must be made on the basis of the average nursing home
   56  payment for those services in the county in which the hospital
   57  is located. When a hospital is located in a county that does not
   58  have any community nursing homes, reimbursement shall be
   59  determined by averaging the nursing home payments in counties
   60  that surround the county in which the hospital is located.
   61  Reimbursement to hospitals, including Medicaid payment of
   62  Medicare copayments, for skilled nursing services shall be
   63  limited to 30 days, unless a prior authorization has been
   64  obtained from the agency. Medicaid reimbursement may be extended
   65  by the agency beyond 30 days, and approval must be based upon
   66  verification by the patient’s physician that the patient
   67  requires short-term rehabilitative and recuperative services
   68  only, in which case an extension of no more than 15 days may be
   69  approved. Reimbursement to a hospital licensed under part I of
   70  chapter 395 for the temporary provision of skilled nursing
   71  services to nursing home residents who have been displaced as
   72  the result of a natural disaster or other emergency may not
   73  exceed the average county nursing home payment for those
   74  services in the county in which the hospital is located and is
   75  limited to the period of time which the agency considers
   76  necessary for continued placement of the nursing home residents
   77  in the hospital.
   78         (b) Subject to any limitations or directions in the General
   79  Appropriations Act, the agency shall establish and implement a
   80  state Title XIX Long-Term Care Reimbursement Plan for nursing
   81  home care in order to provide care and services in conformance
   82  with the applicable state and federal laws, rules, regulations,
   83  and quality and safety standards and to ensure that individuals
   84  eligible for medical assistance have reasonable geographic
   85  access to such care.
   86         1. The agency shall amend the long-term care reimbursement
   87  plan and cost reporting system to create direct care and
   88  indirect care subcomponents of the patient care component of the
   89  per diem rate. These two subcomponents together shall equal the
   90  patient care component of the per diem rate. Separate cost-based
   91  ceilings shall be calculated for each patient care subcomponent.
   92  The direct care subcomponent of the per diem rate shall be
   93  limited by the cost-based class ceiling, and the indirect care
   94  subcomponent may be limited by the lower of the cost-based class
   95  ceiling, the target rate class ceiling, or the individual
   96  provider target.
   97         2. The direct care subcomponent shall include salaries and
   98  benefits of direct care staff providing nursing services
   99  including registered nurses, licensed practical nurses, and
  100  certified nursing assistants who deliver care directly to
  101  residents in the nursing home facility. This excludes nursing
  102  administration, staff development, the staffing coordinator, and
  103  the administrative portion of the minimum data set and care plan
  104  coordinators. The direct care subcomponent also includes
  105  medically necessary dental care, vision care, hearing care, and
  106  podiatric care.
  107         3. All other patient care costs shall be included in the
  108  indirect care cost subcomponent of the patient care per diem
  109  rate. Costs may not be allocated directly or indirectly to the
  110  direct care subcomponent from a home office or management
  111  company.
  112         4. On July 1 of each year, the agency shall report to the
  113  Legislature direct and indirect care costs, including average
  114  direct and indirect care costs per resident per facility and
  115  direct care and indirect care salaries and benefits per category
  116  of staff member per facility.
  117         5. In order to offset the cost of general and professional
  118  liability insurance, the agency shall amend the plan to allow
  119  for interim rate adjustments to reflect increases in the cost of
  120  general or professional liability insurance for nursing homes.
  121  This provision shall be implemented to the extent existing
  122  appropriations are available.
  123         6. After July 1, 2017, the agency shall set nursing home
  124  rates based only on audited cost reports and may not make
  125  retroactive rate adjustments.
  126         a. The property component of the reimbursement rates shall
  127  be calculated based on the Fair Rental Value System developed by
  128  Navigant Consulting, Inc., as part of the study pursuant to
  129  Specific Appropriation 186 of the 2016-2017 General
  130  Appropriations Act.
  131         b. Newly constructed facilities shall be paid the average
  132  reimbursement rate of the geographic and size grouping in which
  133  they are located.
  134         c. Newly licensed providers pursuant to changes of
  135  ownership shall be paid the reimbursement rate of the previous
  136  licensee.
  137         d. The agency shall recalculate nursing home reimbursement
  138  ceilings and rates every 3 years and shall adjust the rates in
  139  the intervening years with an appropriate inflation adjustment.
  140  
  141  It is the intent of the Legislature that the reimbursement plan
  142  achieve the goal of providing access to health care for nursing
  143  home residents who require large amounts of care while
  144  encouraging diversion services as an alternative to nursing home
  145  care for residents who can be served within the community. The
  146  agency shall base the establishment of any maximum rate of
  147  payment, whether overall or component, on the available moneys
  148  as provided for in the General Appropriations Act. The agency
  149  may base the maximum rate of payment on the results of
  150  scientifically valid analysis and conclusions derived from
  151  objective statistical data pertinent to the particular maximum
  152  rate of payment.
  153         Section 2. Subsection (4) of section 409.9082, Florida
  154  Statutes, is amended to read:
  155         409.9082 Quality assessment on nursing home facility
  156  providers; exemptions; purpose; federal approval required;
  157  remedies.—
  158         (4) The purpose of the nursing home facility quality
  159  assessment is to ensure continued quality of care. Collected
  160  assessment funds shall be used to obtain federal financial
  161  participation through the Medicaid program to make Medicaid
  162  payments for nursing home facility services up to the amount of
  163  nursing home facility Medicaid rates as calculated in accordance
  164  with the approved state Medicaid plan in effect on December 31,
  165  2007. The quality assessment and federal matching funds shall be
  166  used exclusively for the following purposes and in the following
  167  order of priority:
  168         (a) To reimburse the Medicaid share of the quality
  169  assessment as a pass-through, Medicaid-allowable cost;
  170         (b) To increase to each nursing home facility’s Medicaid
  171  rate, as needed, an amount that restores rate reductions
  172  effective on or after January 1, 2008, as provided in the
  173  General Appropriations Act; and
  174         (c) To increase each nursing home facility’s Medicaid rate
  175  that accounts for the portion of the total assessment not
  176  included in paragraphs (a) and (b) which begins a phase-in to a
  177  pricing model for the operating cost component. This increase
  178  shall be allocated proportionately to each nursing home facility
  179  based on the Quality Matrix without a lower threshold developed
  180  by Navigant Consulting, Inc., as part of the study pursuant to
  181  Specific Appropriation 186 of the 2016-2017 General
  182  Appropriations Act.
  183         Section 3. This act shall take effect July 1, 2017.