Bill Text: FL S2508 | 2016 | Regular Session | Introduced
Bill Title: Health Care Services
Spectrum: Committee Bill
Status: (Introduced - Dead) 2016-02-11 - Laid on Table, companion bill(s) passed, see HB 5001 (Ch. 2016-66), HB 5003 (Ch. 2016-62), HB 5101 (Ch. 2016-65) [S2508 Detail]
Download: Florida-2016-S2508-Introduced.html
Florida Senate - 2016 SB 2508 By the Committee on Appropriations 576-02995-16 20162508__ 1 A bill to be entitled 2 An act relating to health care services; amending s. 3 322.143, F.S.; providing an exception to the 4 prohibition against a private entity swiping an 5 individual’s driver license or identification card for 6 certain entities for certain purposes; amending s. 7 395.602, F.S.; including specified hospitals in the 8 definition of “rural hospital”; amending s. 409.285, 9 F.S.; requiring appeals related to Medicaid programs 10 directly administered by the Agency for Health Care 11 Administration to be directed to the agency; providing 12 requirements for appeals directed to the agency; 13 providing an exemption from the uniform rules of 14 procedure and from a requirement that certain 15 proceedings be heard before an administrative law 16 judge for specified hearings; requiring the agency to 17 seek federal approval of its authority to oversee 18 appeals; providing that appeals related to Medicaid 19 programs administered by the Agency for Persons with 20 Disabilities are subject to that agency’s hearing 21 rights process; amending s. 409.811, F.S.; defining 22 the term “lawfully residing child”; deleting the 23 definition of the term “qualified alien”; conforming 24 provisions to changes made by the act; amending s. 25 409.814, F.S.; revising eligibility for the Florida 26 Kidcare program to conform to changes made by the act; 27 clarifying that undocumented immigrants are excluded 28 from eligibility; amending s. 409.904, F.S.; providing 29 eligibility for optional payments for medical 30 assistance and related services for certain lawfully 31 residing children; clarifying that undocumented 32 immigrants are excluded from eligibility for optional 33 Medicaid payments or related services; amending s. 34 409.905, F.S.; deleting the limitation on the number 35 of hospital emergency department visits that may be 36 paid for by the Agency for Health Care Administration 37 for certain recipients; amending s. 409.906, F.S.; 38 directing the agency to seek federal approval to 39 provide temporary housing assistance for certain 40 persons; creating s. 409.9064, F.S.; directing the 41 agency to seek federal approval to provide home and 42 community-based services for individuals diagnosed 43 with Phelan-McDermid Syndrome; providing a method for 44 determining financial eligibility for Medicaid 45 benefits in certain circumstances; amending s. 46 409.907, F.S.; authorizing the agency to certify that 47 a Medicaid provider is out of business; creating s. 48 409.9072, F.S.; directing the agency to pay private 49 schools and charter schools that are Medicaid 50 providers for specified school-based services under 51 certain parameters; authorizing the agency to review a 52 school that has applied to the program for capability 53 requirements; providing a reimbursement schedule; 54 providing for a waiver of agency and school 55 confidentiality under certain circumstances; amending 56 s. 409.908, F.S.; revising the list of provider types 57 that are subject to certain statutory provisions 58 relating to the establishment of rates; amending s. 59 409.909; adding psychiatry to a list of primary care 60 specialties under the Statewide Medicaid Residency 61 Program; amending s. 409.911, F.S.; updating the 62 fiscal year for determining each hospital’s Medicaid 63 days and charity care; providing an exception for the 64 distribution of moneys to certain hospitals for the 65 2016-2017 state fiscal year; amending ss. 409.9113, 66 409.9115, and 409.9119, F.S.; providing an exception 67 for the distribution of moneys to certain hospitals 68 for the 2016-2017 state fiscal year; amending s. 69 409.9128, F.S.; conforming provisions to changes made 70 by the act; amending s. 409.967, F.S.; defining the 71 term “Medicaid rate” for the purpose of determining 72 specified managed care plan payments for emergency 73 services in compliance with federal law; requiring 74 annual publication of fee schedules on the agency’s 75 website; amending s. 409.968, F.S.; directing the 76 agency to establish a payment methodology for managed 77 care plans providing housing assistance to specified 78 persons; amending s. 409.975, F.S.; providing for the 79 determination of applicable Medicaid rates for 80 emergency services; defining the term “essential 81 provider”; deleting requirements relating to 82 contracted rates between managed care plans and 83 hospitals; conforming provisions to changes made by 84 the act; amending s. 624.91, F.S.; conforming 85 provisions to changes made by the act; amending s. 86 641.513, F.S.; specifying parameters for payments by a 87 health maintenance organization to a noncontracted 88 provider of emergency services under certain 89 circumstances; conforming provisions to changes made 90 by the act; authorizing a Program of All-Inclusive 91 Care for the Elderly organization granted certain 92 enrollee slots for frail elders residing in Broward 93 County to also use the slots for enrollees residing in 94 Miami-Dade County; authorizing the agency to contract 95 with an organization in Escambia County to provide 96 services under the federal Program of All-inclusive 97 Care for the Elderly in specified areas; exempting the 98 organization from ch. 641, F.S., relating to health 99 care service programs; authorizing enrollment slots 100 for the program in such areas, subject to 101 appropriation; providing effective dates. 102 103 Be It Enacted by the Legislature of the State of Florida: 104 105 Section 1. Subsection (2) of section 322.143, Florida 106 Statutes, is amended and subsection (10) is added to that 107 section, to read: 108 322.143 Use of a driver license or identification card.— 109 (2) Except as provided in subsections (6) and (10) 110subsection (6), a private entity may not swipe an individual’s 111 driver license or identification card, except for the following 112 purposes: 113 (a) To verify the authenticity of a driver license or 114 identification card or to verify the identity of the individual 115 if the individual pays for a good or service with a method other 116 than cash, returns an item, or requests a refund. 117 (b) To verify the individual’s age when providing an age 118 restricted good or service. 119 (c) To prevent fraud or other criminal activity if an 120 individual returns an item or requests a refund and the private 121 entity uses a fraud prevention service company or system. 122 (d) To transmit information to a check services company for 123 the purpose of approving negotiable instruments, electronic 124 funds transfers, or similar methods of payment. 125 (e) To comply with a legal requirement to record, retain, 126 or transmit the driver license information. 127 (10) To combat health care fraud, the Department of Highway 128 Safety and Motor Vehicles shall provide photographic access, 129 pursuant to a written agreement, with hospitals, insurance 130 companies, or their software providers, for the purpose of 131 verifying a patient’s identity or Medicaid eligibility by 132 swiping an individual’s driver license or identification card. 133 Section 2. Paragraph (e) of subsection (2) of section 134 395.602, Florida Statutes, is amended to read: 135 395.602 Rural hospitals.— 136 (2) DEFINITIONS.—As used in this part, the term: 137 (e) “Rural hospital” means an acute care hospital licensed 138 under this chapter, having 100 or fewer licensed beds and an 139 emergency room, which is: 140 1. The sole provider within a county with a population 141 density of up to 100 persons per square mile; 142 2. An acute care hospital, in a county with a population 143 density of up to 100 persons per square mile, which is at least 144 30 minutes of travel time, on normally traveled roads under 145 normal traffic conditions, from any other acute care hospital 146 within the same county; 147 3. A hospital supported by a tax district or subdistrict 148 whose boundaries encompass a population of up to 100 persons per 149 square mile; 150 4. A hospital classified as a sole community hospital under 151 42 C.F.R. s. 412.92 which has up to 175 licensed beds. 152 5.4.A hospital with a service area that has a population 153 of up to 100 persons per square mile. As used in this 154 subparagraph, the term “service area” means the fewest number of 155 zip codes that account for 75 percent of the hospital’s 156 discharges for the most recent 5-year period, based on 157 information available from the hospital inpatient discharge 158 database in the Florida Center for Health Information and Policy 159 Analysis at the agency; or 160 6.5.A hospital designated as a critical access hospital, 161 as defined in s. 408.07. 162 163 Population densities used in this paragraph must be based upon 164 the most recently completed United States census. A hospital 165 that received funds under s. 409.9116 for a quarter beginning no 166 later than July 1, 2002, is deemed to have been and shall 167 continue to be a rural hospital from that date through June 30, 168 2021, if the hospital continues to have up to 100 licensed beds 169 and an emergency room. An acute care hospital that has not 170 previously been designated as a rural hospital and that meets 171 the criteria of this paragraph shall be granted such designation 172 upon application, including supporting documentation, to the 173 agency. A hospital that was licensed as a rural hospital during 174 the 2010-2011 or 2011-2012 fiscal year shall continue to be a 175 rural hospital from the date of designation through June 30, 176 2021, if the hospital continues to have up to 100 licensed beds 177 and an emergency room. 178 Section 3. Section 409.285, Florida Statutes, is amended to 179 read: 180 409.285 Opportunity for hearing and appeal.— 181 (1) If an application for public assistance is not acted 182 upon within a reasonable time after the filing of the 183 application, or is denied in whole or in part, or if an 184 assistance payment is modified or canceled, the applicant or 185 recipient may appeal the decision to the Department of Children 186 and Families in the manner and form prescribed by the 187 department. 188 (a)(2)The hearing authority may be the Secretary of 189 Children and Families, a panel of department officials, or a 190 hearing officer appointed for that purpose. The hearing 191 authority is responsible for a final administrative decision in 192 the name of the department on all issues that have been the 193 subject of a hearing. With regard to the department, the 194 decision of the hearing authority is final and binding. The 195 department is responsible for seeing that the decision is 196 carried out promptly. 197 (b)(3)The department may adopt rules to administer this 198 subsectionsection. Rules for the Temporary Assistance for Needy 199 Families block grant programs must be similar to the federal 200 requirements for Medicaid programs. 201 (2) Appeals related to Medicaid programs directly 202 administered by the Agency for Health Care Administration, 203 including appeals related to Florida’s Statewide Medicaid 204 Managed Care program and associated federal waivers, must be 205 directed to the Agency for Health Care Administration in the 206 manner and form prescribed by the agency. 207 (a) The hearing authority for appeals heard by the Agency 208 for Health Care Administration may be the secretary of the 209 agency, a panel of agency officials, or a hearing officer 210 appointed for that purpose. The hearing authority is responsible 211 for a final administrative decision in the name of the agency on 212 all issues that have been the subject of a hearing. A decision 213 of the hearing authority is final and binding on the agency. The 214 agency is responsible for seeing that the decision is promptly 215 carried out. 216 (b) Notwithstanding ss. 120.569 and 120.57, hearings 217 conducted by the Agency for Health Care Administration pursuant 218 to this subsection are exempt from the uniform rules of 219 procedure under s. 120.54(5) and do not need to be conducted by 220 an administrative law judge assigned by the Division of 221 Administrative Hearings. 222 (c) The Agency for Health Care Administration shall seek 223 federal approval necessary to implement this subsection and may 224 adopt rules necessary to administer this subsection. 225 (3) Appeals related to Medicaid programs administered by 226 the Agency for Persons with Disabilities are subject to s. 227 393.125. 228 Section 4. Present subsections (17) through (22) of section 229 409.811, Florida Statutes, are redesignated as subsections (18) 230 through (23), respectively, a new subsection (17) is added to 231 that section, and present subsections (23) and (24) of that 232 section are amended, to read: 233 409.811 Definitions relating to Florida Kidcare Act.—As 234 used in ss. 409.810-409.821, the term: 235 (17) “Lawfully residing child” means a child who is 236 lawfully present in the United States, meets Medicaid or 237 Children’s Health Insurance Program (CHIP) residency 238 requirements, and may be eligible for medical assistance with 239 federal financial participation as provided under s. 214 of the 240 Children’s Health Insurance Program Reauthorization Act of 2009, 241 Pub. L. No. 111-3, and related federal regulations. 242(23) “Qualified alien” means an alien as defined in s. 431243of the Personal Responsibility and Work Opportunity244Reconciliation Act of 1996, as amended, Pub. L. No. 104-193.245 (24) “Resident” means a United States citizen,or lawfully 246 residing childqualified alien,who is domiciled in this state. 247 Section 5. Paragraph (c) of subsection (4) of section 248 409.814, Florida Statutes, is amended to read: 249 409.814 Eligibility.—A child who has not reached 19 years 250 of age whose family income is equal to or below 200 percent of 251 the federal poverty level is eligible for the Florida Kidcare 252 program as provided in this section. If an enrolled individual 253 is determined to be ineligible for coverage, he or she must be 254 immediately disenrolled from the respective Florida Kidcare 255 program component. 256 (4) The following children are not eligible to receive 257 Title XXI-funded premium assistance for health benefits coverage 258 under the Florida Kidcare program, except under Medicaid if the 259 child would have been eligible for Medicaid under s. 409.903 or 260 s. 409.904 as of June 1, 1997: 261 (c) A child who is an alien,but who does not meet the 262 definition of a lawfully residing childqualified alien, in the263United States. This paragraph does not extend eligibility for 264 the Florida Kidcare program to an undocumented immigrant. 265 Section 6. Present subsections (8) and (9) of section 266 409.904, Florida Statutes, are redesignated as subsections (9) 267 and (10), respectively, and a new subsection (8) is added to 268 that section, to read: 269 409.904 Optional payments for eligible persons.—The agency 270 may make payments for medical assistance and related services on 271 behalf of the following persons who are determined to be 272 eligible subject to the income, assets, and categorical 273 eligibility tests set forth in federal and state law. Payment on 274 behalf of these Medicaid eligible persons is subject to the 275 availability of moneys and any limitations established by the 276 General Appropriations Act or chapter 216. 277 (8) A child who has not attained 19 years of age and who, 278 notwithstanding s. 414.095(3), would be eligible for Medicaid 279 under s. 409.903, except that the child is a lawfully residing 280 child as defined in s. 409.811. This subsection does not extend 281 eligibility for optional Medicaid payments or related services 282 to an undocumented immigrant. 283 Section 7. Subsection (5) of section 409.905, Florida 284 Statutes, is amended to read: 285 409.905 Mandatory Medicaid services.—The agency may make 286 payments for the following services, which are required of the 287 state by Title XIX of the Social Security Act, furnished by 288 Medicaid providers to recipients who are determined to be 289 eligible on the dates on which the services were provided. Any 290 service under this section shall be provided only when medically 291 necessary and in accordance with state and federal law. 292 Mandatory services rendered by providers in mobile units to 293 Medicaid recipients may be restricted by the agency. Nothing in 294 this section shall be construed to prevent or limit the agency 295 from adjusting fees, reimbursement rates, lengths of stay, 296 number of visits, number of services, or any other adjustments 297 necessary to comply with the availability of moneys and any 298 limitations or directions provided for in the General 299 Appropriations Act or chapter 216. 300 (5) HOSPITAL INPATIENT SERVICES.—The agency shall pay for 301 all covered services provided for the medical care and treatment 302 of a recipient who is admitted as an inpatient by a licensed 303 physician or dentist to a hospital licensed under part I of 304 chapter 395. However, the agency shall limit the payment for 305 inpatient hospital services for a Medicaid recipient 21 years of 306 age or older to 45 days or the number of days necessary to 307 comply with the General Appropriations Act.Effective August 1,3082012, the agency shall limit payment for hospital emergency309department visits for a nonpregnant Medicaid recipient 21 years310of age or older to six visits per fiscal year.311 (a) The agency may implement reimbursement and utilization 312 management reforms in order to comply with any limitations or 313 directions in the General Appropriations Act, which may include, 314 but are not limited to: prior authorization for inpatient 315 psychiatric days; prior authorization for nonemergency hospital 316 inpatient admissions for individuals 21 years of age and older; 317 authorization of emergency and urgent-care admissions within 24 318 hours after admission; enhanced utilization and concurrent 319 review programs for highly utilized services; reduction or 320 elimination of covered days of service; adjusting reimbursement 321 ceilings for variable costs; adjusting reimbursement ceilings 322 for fixed and property costs; and implementing target rates of 323 increase. The agency may limit prior authorization for hospital 324 inpatient services to selected diagnosis-related groups, based 325 on an analysis of the cost and potential for unnecessary 326 hospitalizations represented by certain diagnoses. Admissions 327 for normal delivery and newborns are exempt from requirements 328 for prior authorization. In implementing the provisions of this 329 section related to prior authorization, the agency shall ensure 330 that the process for authorization is accessible 24 hours per 331 day, 7 days per week and authorization is automatically granted 332 when not denied within 4 hours after the request. Authorization 333 procedures must include steps for review of denials. Upon 334 implementing the prior authorization program for hospital 335 inpatient services, the agency shall discontinue its hospital 336 retrospective review program. 337 (b) A licensed hospital maintained primarily for the care 338 and treatment of patients having mental disorders or mental 339 diseases is not eligible to participate in the hospital 340 inpatient portion of the Medicaid program except as provided in 341 federal law. However, the department shall apply for a waiver, 342 within 9 months after June 5, 1991, designed to provide 343 hospitalization services for mental health reasons to children 344 and adults in the most cost-effective and lowest cost setting 345 possible. Such waiver shall include a request for the 346 opportunity to pay for care in hospitals known under federal law 347 as “institutions for mental disease” or “IMD’s.” The waiver 348 proposal shall propose no additional aggregate cost to the state 349 or Federal Government, and shall be conducted in Hillsborough 350 County, Highlands County, Hardee County, Manatee County, and 351 Polk County. The waiver proposal may incorporate competitive 352 bidding for hospital services, comprehensive brokering, prepaid 353 capitated arrangements, or other mechanisms deemed by the 354 department to show promise in reducing the cost of acute care 355 and increasing the effectiveness of preventive care. When 356 developing the waiver proposal, the department shall take into 357 account price, quality, accessibility, linkages of the hospital 358 to community services and family support programs, plans of the 359 hospital to ensure the earliest discharge possible, and the 360 comprehensiveness of the mental health and other health care 361 services offered by participating providers. 362 (c) The agency shall implement a prospective payment 363 methodology for establishing reimbursement rates for inpatient 364 hospital services. Rates shall be calculated annually and take 365 effect July 1 of each year. The methodology shall categorize 366 each inpatient admission into a diagnosis-related group and 367 assign a relative payment weight to the base rate according to 368 the average relative amount of hospital resources used to treat 369 a patient in a specific diagnosis-related group category. The 370 agency may adopt the most recent relative weights calculated and 371 made available by the Nationwide Inpatient Sample maintained by 372 the Agency for Healthcare Research and Quality or may adopt 373 alternative weights if the agency finds that Florida-specific 374 weights deviate with statistical significance from national 375 weights for high-volume diagnosis-related groups. The agency 376 shall establish a single, uniform base rate for all hospitals 377 unless specifically exempt pursuant to s. 409.908(1). 378 1. Adjustments may not be made to the rates after October 379 31 of the state fiscal year in which the rates take effect, 380 except for cases of insufficient collections of 381 intergovernmental transfers authorized under s. 409.908(1) or 382 the General Appropriations Act. In such cases, the agency shall 383 submit a budget amendment or amendments under chapter 216 384 requesting approval of rate reductions by amounts necessary for 385 the aggregate reduction to equal the dollar amount of 386 intergovernmental transfers not collected and the corresponding 387 federal match. Notwithstanding the $1 million limitation on 388 increases to an approved operating budget contained in ss. 389 216.181(11) and 216.292(3), a budget amendment exceeding that 390 dollar amount is subject to notice and objection procedures set 391 forth in s. 216.177. 392 2. Errors in source data or calculations discovered after 393 October 31 must be reconciled in a subsequent rate period. 394 However, the agency may not make any adjustment to a hospital’s 395 reimbursement more than 5 years after a hospital is notified of 396 an audited rate established by the agency. The prohibition 397 against adjustments more than 5 years after notification is 398 remedial and applies to actions by providers involving Medicaid 399 claims for hospital services. Hospital reimbursement is subject 400 to such limits or ceilings as may be established in law or 401 described in the agency’s hospital reimbursement plan. Specific 402 exemptions to the limits or ceilings may be provided in the 403 General Appropriations Act. 404 (d) The agency shall implement a comprehensive utilization 405 management program for hospital neonatal intensive care stays in 406 certain high-volume participating hospitals, select counties, or 407 statewide, and replace existing hospital inpatient utilization 408 management programs for neonatal intensive care admissions. The 409 program shall be designed to manage appropriate admissions and 410 discharges for children being treated in neonatal intensive care 411 units and must seek medically appropriate discharge to the 412 child’s home or other less costly treatment setting. The agency 413 may competitively bid a contract for the selection of a 414 qualified organization to provide neonatal intensive care 415 utilization management services. The agency may seek federal 416 waivers to implement this initiative. 417 (e) The agency may develop and implement a program to 418 reduce the number of hospital readmissions among the non 419 Medicare population eligible in areas 9, 10, and 11. 420 Section 8. Paragraph (e) is added to subsection (13) of 421 section 409.906, Florida Statutes, to read: 422 409.906 Optional Medicaid services.—Subject to specific 423 appropriations, the agency may make payments for services which 424 are optional to the state under Title XIX of the Social Security 425 Act and are furnished by Medicaid providers to recipients who 426 are determined to be eligible on the dates on which the services 427 were provided. Any optional service that is provided shall be 428 provided only when medically necessary and in accordance with 429 state and federal law. Optional services rendered by providers 430 in mobile units to Medicaid recipients may be restricted or 431 prohibited by the agency. Nothing in this section shall be 432 construed to prevent or limit the agency from adjusting fees, 433 reimbursement rates, lengths of stay, number of visits, or 434 number of services, or making any other adjustments necessary to 435 comply with the availability of moneys and any limitations or 436 directions provided for in the General Appropriations Act or 437 chapter 216. If necessary to safeguard the state’s systems of 438 providing services to elderly and disabled persons and subject 439 to the notice and review provisions of s. 216.177, the Governor 440 may direct the Agency for Health Care Administration to amend 441 the Medicaid state plan to delete the optional Medicaid service 442 known as “Intermediate Care Facilities for the Developmentally 443 Disabled.” Optional services may include: 444 (13) HOME AND COMMUNITY-BASED SERVICES.— 445 (e) The agency shall seek federal approval to pay for 446 flexible services for persons with severe mental illness or 447 substance abuse disorders, including, but not limited to, 448 temporary housing assistance. Payments may be made as enhanced 449 capitation rates or incentive payments to managed care plans 450 that meet the requirements of s. 409.968(4). 451 Section 9. Section 409.9064, Florida Statutes, is created 452 to read: 453 409.9064 Medicaid Services for Individuals with Phelan 454 McDermid Syndrome.—The agency shall seek federal approval of a 455 Section 1915(i) state plan option for home and community-based 456 services for individuals diagnosed with Phelan-McDermid 457 Syndrome. Financial eligibility for Medicaid benefits under this 458 plan option will be determined in the same manner as the home 459 and community-based services waiver for persons with 460 developmental disabilities. 461 Section 10. Present subsection (12) of section 409.907, 462 Florida Statutes, is redesignated as subsection (13), and a new 463 subsection (12) is added to that subsection, to read: 464 409.907 Medicaid provider agreements.—The agency may make 465 payments for medical assistance and related services rendered to 466 Medicaid recipients only to an individual or entity who has a 467 provider agreement in effect with the agency, who is performing 468 services or supplying goods in accordance with federal, state, 469 and local law, and who agrees that no person shall, on the 470 grounds of handicap, race, color, or national origin, or for any 471 other reason, be subjected to discrimination under any program 472 or activity for which the provider receives payment from the 473 agency. 474 (12) In accordance with 42 C.F.R. s. 433.318(d)(2)(ii), the 475 agency may certify that a provider is out of business and that 476 any overpayments made to the provider cannot be collected under 477 state law. 478 Section 11. Section 409.9072, Florida Statutes, is created 479 to read: 480 409.9072 Medicaid provider agreements for charter schools 481 and private schools.— 482 (1) Subject to a specific appropriation by the Legislature, 483 the agency shall reimburse private schools as defined in s. 484 1002.01 and schools designated as charter schools under s. 485 1002.33 which are Medicaid providers for school-based services 486 pursuant to the rehabilitative services option provided under 42 487 U.S.C. s. 1396d(a)(13) to children younger than 21 years of age 488 with specified disabilities who are eligible for both Medicaid 489 and part B or part H of the Individuals with Disabilities 490 Education Act (IDEA) or the exceptional student education 491 program, or who have an individualized educational plan. 492 (2) Schools that wish to enroll as Medicaid providers and 493 receive Medicaid reimbursement under this section must apply to 494 the agency for a provider agreement and must agree to: 495 (a) Verify Medicaid eligibility. The agency shall work 496 cooperatively with a private school or a charter school that is 497 a Medicaid provider to facilitate the school’s verification of 498 Medicaid eligibility. 499 (b) Develop and maintain the financial and individual 500 education plan records needed to document the appropriate use of 501 state and federal Medicaid funds. 502 (c) Comply with all state and federal Medicaid laws, rules, 503 regulations, and policies, including, but not limited to, those 504 related to the confidentiality of records and freedom of choice 505 of providers. 506 (d) Be responsible for reimbursing the cost of any state or 507 federal disallowance that results from failure to comply with 508 state or federal Medicaid laws, rules, or regulations. 509 (3) The types of school-based services for which schools 510 may be reimbursed under this section are those included in s. 511 1011.70(1). Private schools and charter schools may not be 512 reimbursed by the agency for providing services that are 513 excluded by that subsection. 514 (4) Within 90 days after a private school or a charter 515 school applies to enroll as a Medicaid provider under this 516 section, the agency may conduct a review to ensure that the 517 school has the capability to comply with its responsibilities 518 under subsection (2). A finding by the agency that the school 519 has the capability to comply does not relieve the school of its 520 responsibility to correct any deficiencies or to reimburse the 521 cost of the state or federal disallowances identified pursuant 522 to any subsequent state or federal audits. 523 (5) For reimbursements to private schools and charter 524 schools under this section, the agency shall apply the 525 reimbursement schedule developed under s. 409.9071(5). Health 526 care practitioners engaged by a school to provide services under 527 this section must be enrolled as Medicaid providers and meet the 528 qualifications specified under 42 C.F.R. s. 440.110, as 529 applicable. Each school’s continued participation in providing 530 Medicaid services under this section is contingent upon the 531 school providing to the agency an annual accounting of how the 532 Medicaid reimbursements are used. 533 (6) For Medicaid provider agreements issued under this 534 section, the agency’s and the school’s confidentiality is waived 535 in relation to the state’s efforts to control Medicaid fraud. 536 The agency and the school shall provide any information or 537 documents relating to this section to the Medicaid Fraud Control 538 Unit in the Department of Legal Affairs, upon request, pursuant 539 to the Attorney General’s authority under s. 409.920. 540 Section 12. Effective July 1, 2017, paragraph (c) of 541 subsection (23) of section 409.908, Florida Statutes, is amended 542 to read: 543 409.908 Reimbursement of Medicaid providers.—Subject to 544 specific appropriations, the agency shall reimburse Medicaid 545 providers, in accordance with state and federal law, according 546 to methodologies set forth in the rules of the agency and in 547 policy manuals and handbooks incorporated by reference therein. 548 These methodologies may include fee schedules, reimbursement 549 methods based on cost reporting, negotiated fees, competitive 550 bidding pursuant to s. 287.057, and other mechanisms the agency 551 considers efficient and effective for purchasing services or 552 goods on behalf of recipients. If a provider is reimbursed based 553 on cost reporting and submits a cost report late and that cost 554 report would have been used to set a lower reimbursement rate 555 for a rate semester, then the provider’s rate for that semester 556 shall be retroactively calculated using the new cost report, and 557 full payment at the recalculated rate shall be effected 558 retroactively. Medicare-granted extensions for filing cost 559 reports, if applicable, shall also apply to Medicaid cost 560 reports. Payment for Medicaid compensable services made on 561 behalf of Medicaid eligible persons is subject to the 562 availability of moneys and any limitations or directions 563 provided for in the General Appropriations Act or chapter 216. 564 Further, nothing in this section shall be construed to prevent 565 or limit the agency from adjusting fees, reimbursement rates, 566 lengths of stay, number of visits, or number of services, or 567 making any other adjustments necessary to comply with the 568 availability of moneys and any limitations or directions 569 provided for in the General Appropriations Act, provided the 570 adjustment is consistent with legislative intent. 571 (23) 572 (c) This subsection applies to the following provider 573 types: 574 1. Inpatient hospitals. 575 2. Outpatient hospitals. 5763. Nursing homes.577 3.4.County health departments. 578 4.5.Prepaid health plans. 579 Section 13. Paragraph (a) of subsection (2) of section 580 409.909, Florida Statutes, is amended to read: 581 409.909 Statewide Medicaid Residency Program.— 582 (2) On or before September 15 of each year, the agency 583 shall calculate an allocation fraction to be used for 584 distributing funds to participating hospitals. On or before the 585 final business day of each quarter of a state fiscal year, the 586 agency shall distribute to each participating hospital one 587 fourth of that hospital’s annual allocation calculated under 588 subsection (4). The allocation fraction for each participating 589 hospital is based on the hospital’s number of full-time 590 equivalent residents and the amount of its Medicaid payments. As 591 used in this section, the term: 592 (a) “Full-time equivalent,” or “FTE,” means a resident who 593 is in his or her residency period, with the initial residency 594 period defined as the minimum number of years of training 595 required before the resident may become eligible for board 596 certification by the American Osteopathic Association Bureau of 597 Osteopathic Specialists or the American Board of Medical 598 Specialties in the specialty in which he or she first began 599 training, not to exceed 5 years. The residency specialty is 600 defined as reported using the current residency type codes in 601 the Intern and Resident Information System (IRIS), required by 602 Medicare. A resident training beyond the initial residency 603 period is counted as 0.5 FTE, unless his or her chosen specialty 604 is in primary care, in which case the resident is counted as 1.0 605 FTE. For the purposes of this section, primary care specialties 606 include: 607 1. Family medicine; 608 2. General internal medicine; 609 3. General pediatrics; 610 4. Preventive medicine; 611 5. Geriatric medicine; 612 6. Osteopathic general practice; 613 7. Obstetrics and gynecology; 614 8. Emergency medicine;and615 9. General surgery; and 616 10. Psychiatry. 617 Section 14. Paragraph (a) of subsection (2) of section 618 409.911, Florida Statutes, is amended, and subsection (10) is 619 added to that section, to read: 620 409.911 Disproportionate share program.—Subject to specific 621 allocations established within the General Appropriations Act 622 and any limitations established pursuant to chapter 216, the 623 agency shall distribute, pursuant to this section, moneys to 624 hospitals providing a disproportionate share of Medicaid or 625 charity care services by making quarterly Medicaid payments as 626 required. Notwithstanding the provisions of s. 409.915, counties 627 are exempt from contributing toward the cost of this special 628 reimbursement for hospitals serving a disproportionate share of 629 low-income patients. 630 (2) The Agency for Health Care Administration shall use the 631 following actual audited data to determine the Medicaid days and 632 charity care to be used in calculating the disproportionate 633 share payment: 634 (a) The average of the 2007, 2008, and 2009 audited 635 disproportionate share data to determine each hospital’s 636 Medicaid days and charity care for the 2016-20172015-2016state 637 fiscal year. 638 (10) Notwithstanding the provisions of this section to the 639 contrary, for the 2016-2017 state fiscal year, the agency shall 640 distribute moneys to hospitals providing a disproportionate 641 share of Medicaid or charity care services as provided in the 642 2016-2017 General Appropriations Act. 643 Section 15. Subsection (3) is added to section 409.9113, 644 Florida Statutes, to read: 645 409.9113 Disproportionate share program for teaching 646 hospitals.—In addition to the payments made under s. 409.911, 647 the agency shall make disproportionate share payments to 648 teaching hospitals, as defined in s. 408.07, for their increased 649 costs associated with medical education programs and for 650 tertiary health care services provided to the indigent. This 651 system of payments must conform to federal requirements and 652 distribute funds in each fiscal year for which an appropriation 653 is made by making quarterly Medicaid payments. Notwithstanding 654 s. 409.915, counties are exempt from contributing toward the 655 cost of this special reimbursement for hospitals serving a 656 disproportionate share of low-income patients. The agency shall 657 distribute the moneys provided in the General Appropriations Act 658 to statutorily defined teaching hospitals and family practice 659 teaching hospitals, as defined in s. 395.805, pursuant to this 660 section. The funds provided for statutorily defined teaching 661 hospitals shall be distributed as provided in the General 662 Appropriations Act. The funds provided for family practice 663 teaching hospitals shall be distributed equally among family 664 practice teaching hospitals. 665 (3) Notwithstanding the provisions of this section to the 666 contrary, for the 2016-2017 state fiscal year, the agency shall 667 make disproportionate share payments to teaching hospitals, as 668 defined in s. 408.07, as provided in the 2016-2017 General 669 Appropriations Act. 670 Section 16. Subsection (3) is added to section 409.9115, 671 Florida Statutes, to read: 672 409.9115 Disproportionate share program for mental health 673 hospitals.—The Agency for Health Care Administration shall 674 design and implement a system of making mental health 675 disproportionate share payments to hospitals that qualify for 676 disproportionate share payments under s. 409.911. This system of 677 payments shall conform with federal requirements and shall 678 distribute funds in each fiscal year for which an appropriation 679 is made by making quarterly Medicaid payments. Notwithstanding 680 s. 409.915, counties are exempt from contributing toward the 681 cost of this special reimbursement for patients. 682 (3) Notwithstanding the provisions of this section to the 683 contrary, for the 2016-2017 state fiscal year, for hospitals 684 that qualify under subsection (2), the agency shall distribute 685 funds for the disproportionate share program for mental health 686 hospitals in the same manner as in the 2015-2016 state fiscal 687 year. 688 Section 17. Subsection (4) is added to section 409.9119, 689 Florida Statutes, to read: 690 409.9119 Disproportionate share program for specialty 691 hospitals for children.—In addition to the payments made under 692 s. 409.911, the Agency for Health Care Administration shall 693 develop and implement a system under which disproportionate 694 share payments are made to those hospitals that are licensed by 695 the state as specialty hospitals for children and were licensed 696 on January 1, 2000, as specialty hospitals for children. This 697 system of payments must conform to federal requirements and must 698 distribute funds in each fiscal year for which an appropriation 699 is made by making quarterly Medicaid payments. Notwithstanding 700 s. 409.915, counties are exempt from contributing toward the 701 cost of this special reimbursement for hospitals that serve a 702 disproportionate share of low-income patients. The agency may 703 make disproportionate share payments to specialty hospitals for 704 children as provided for in the General Appropriations Act. 705 (4) Notwithstanding the provisions of this section to the 706 contrary, for the 2016-2017 state fiscal year, for hospitals 707 achieving full compliance under subsection (3), the agency shall 708 make disproportionate share payments to specialty hospitals for 709 children as provided in the 2016-2017 General Appropriations 710 Act. 711 Section 18. Subsection (5) of section 409.9128, Florida 712 Statutes, is amended to read: 713 409.9128 Requirements for providing emergency services and 714 care.— 715 (5) Reimbursement for services provided to an enrollee of a 716 managed care plan under this section by a provider who does not 717 have a contract with the managed care plan shall be the lesser 718 of: 719 (a) The provider’s charges; 720 (b) The usual and customary provider charges for similar 721 services in the community where the services were provided; 722 (c) The charge mutually agreed to by the entity and the 723 provider within 60 days after submittal of the claim; or 724 (d) The Medicaid rate, as provided in s. 409.967(2)(b). 725 Section 19. Paragraph (b) of subsection (2) of section 726 409.967, Florida Statutes, is amended to read: 727 409.967 Managed care plan accountability.— 728 (2) The agency shall establish such contract requirements 729 as are necessary for the operation of the statewide managed care 730 program. In addition to any other provisions the agency may deem 731 necessary, the contract must require: 732 (b) Emergency services.—Managed care plans shall pay for 733 services required by ss. 395.1041 and 401.45 and rendered by a 734 noncontracted provider. The plans must comply with s. 641.3155. 735 Reimbursement for services under this paragraph is the lesser 736 of: 737 1. The provider’s charges; 738 2. The usual and customary provider charges for similar 739 services in the community where the services were provided; 740 3. The charge mutually agreed to by the entity and the 741 provider within 60 days after submittal of the claim; or 742 4. The Medicaid rate, which, for the purposes of this 743 paragraph, means the amount the provider would collect from the 744 agency on a fee-for-service basis, less any amounts for the 745 indirect costs of medical education and the direct costs of 746 graduate medical education that are otherwise included in the 747 agency’s fee-for-service payment, as required under 42 U.S.C. s. 748 1396u-2(b)(2)(D)The rate the agency would have paid on the most749recent October 1st. 750 751 For the purpose of establishing the amounts specified in 752 subparagraph 4., the agency shall publish on its website 753 annually, or more frequently as needed, the applicable fee-for 754 service fee schedules and their effective dates, less any 755 amounts for indirect costs of medical education and direct costs 756 of graduate medical education that are otherwise included in the 757 agency’s fee-for-service payments. 758 Section 20. Present subsection (4) of section 409.968, 759 Florida Statutes, is redesignated as subsection (5) and a new 760 subsection (4) is added to that section, to read: 761 409.968 Managed care plan payments.— 762 (4)(a) Subject to a specific appropriation and federal 763 approval under s. 409.906(13)(e), the agency shall establish a 764 payment methodology to fund managed care plans for flexible 765 services for persons with severe mental illness and substance 766 abuse disorders, including, but not limited to, temporary 767 housing assistance. A managed care plan eligible for these 768 payments must do all of the following: 769 1. Participate as a specialty plan for severe mental 770 illness or substance abuse disorders or participate in counties 771 designated by the General Appropriations Act; 772 2. Include providers of behavioral health services pursuant 773 to chapters 394 and 397 in the managed care plan’s provider 774 network; and 775 3. Document a capability to provide housing assistance 776 through agreements with housing providers, relationships with 777 local housing coalitions, and other appropriate arrangements. 778 (b) After receiving payments authorized by this section for 779 at least 1 year, a managed care plan must document the results 780 of its efforts to maintain the target population in stable 781 housing up to the maximum duration allowed under federal 782 approval. 783 Section 21. Subsections (1) and (6) of section 409.975, 784 Florida Statutes, are amended to read: 785 409.975 Managed care plan accountability.—In addition to 786 the requirements of s. 409.967, plans and providers 787 participating in the managed medical assistance program shall 788 comply with the requirements of this section. 789 (1) PROVIDER NETWORKS.—Managed care plans must develop and 790 maintain provider networks that meet the medical needs of their 791 enrollees in accordance with standards established pursuant to 792 s. 409.967(2)(c). Except as provided in this section, managed 793 care plans may limit the providers in their networks based on 794 credentials, quality indicators, and price. 795 (a) Plans must include all providers in the region that are 796 classified by the agency as essential Medicaid providers, unless 797 the agency approves, in writing, an alternative arrangement for 798 securing the types of services offered by the essential 799 providers. Providers are essential for serving Medicaid 800 enrollees if they offer services that are not available from any 801 other provider within a reasonable access standard, or if they 802 provided a substantial share of the total units of a particular 803 service used by Medicaid patients within the region during the 804 last 3 years and the combined capacity of other service 805 providers in the region is insufficient to meet the total needs 806 of the Medicaid patients. The agency may not classify physicians 807 and other practitioners as essential providers. The agency, at a 808 minimum, shall determine which providers in the following 809 categories are essential Medicaid providers: 810 1. Federally qualified health centers. 811 2. Statutory teaching hospitals as defined in s. 812 408.07(45). 813 3. Hospitals that are trauma centers as defined in s. 814 395.4001(14). 815 4. Hospitals located at least 25 miles from any other 816 hospital with similar services. 817 818 Managed care plans that have not contracted with all essential 819 providers in the region as of the first date of recipient 820 enrollment, or with whom an essential provider has terminated 821 its contract, must negotiate in good faith with such essential 822 providers for 1 year or until an agreement is reached, whichever 823 is first. Payments for services rendered by a nonparticipating 824 essential provider shall be made at the applicable Medicaid rate 825 as of the first day of the contract between the agency and the 826 plan. A rate schedule for all essential providers shall be 827 attached to the contract between the agency and the plan. After 828 1 year, managed care plans that are unable to contract with 829 essential providers shall notify the agency and propose an 830 alternative arrangement for securing the essential services for 831 Medicaid enrollees. The arrangement must rely on contracts with 832 other participating providers, regardless of whether those 833 providers are located within the same region as the 834 nonparticipating essential service provider. If the alternative 835 arrangement is approved by the agency, payments to 836 nonparticipating essential providers after the date of the 837 agency’s approval shall equal 90 percent of the applicable 838 Medicaid rate. Except for payment for emergency services, if the 839 alternative arrangement is not approved by the agency, payment 840 to nonparticipating essential providers shall equal 110 percent 841 of the applicable Medicaid rate. 842 (b) Certain providers are statewide resources and essential 843 providers for all managed care plans in all regions. All managed 844 care plans must include these essential providers in their 845 networks. Statewide essential providers include: 846 1. Faculty plans of Florida medical schools. 847 2. Regional perinatal intensive care centers as defined in 848 s. 383.16(2). 849 3. Hospitals licensed as specialty children’s hospitals as 850 defined in s. 395.002(28). 851 4. Accredited and integrated systems serving medically 852 complex children which comprisethatare comprised ofseparately 853 licensed, but commonly owned, health care providers delivering 854 at least the following services: medical group home, in-home and 855 outpatient nursing care and therapies, pharmacy services, 856 durable medical equipment, and Prescribed Pediatric Extended 857 Care. 858 859 Managed care plans that have not contracted with all statewide 860 essential providers in all regions as of the first date of 861 recipient enrollment must continue to negotiate in good faith. 862 Payments to physicians on the faculty of nonparticipating 863 Florida medical schools shall be made at the applicable Medicaid 864 rate. Payments for services rendered by regional perinatal 865 intensive care centers shall be made at the applicable Medicaid 866 rate as of the first day of the contract between the agency and 867 the plan. Except for payments for emergency services, payments 868 to nonparticipating specialty children’s hospitals shall equal 869 the highest rate established by contract between that provider 870 and any other Medicaid managed care plan. 871 (c) After 12 months of active participation in a plan’s 872 network, the plan may exclude any essential provider from the 873 network for failure to meet quality or performance criteria. If 874 the plan excludes an essential provider from the plan, the plan 875 must provide written notice to all recipients who have chosen 876 that provider for care. The notice shall be provided at least 30 877 days before the effective date of the exclusion. For the 878 purposes of this paragraph, the term “essential provider” 879 includes providers determined by the agency to be essential 880 Medicaid providers under paragraph (a) and the statewide 881 essential providers specified in paragraph (b). 882 (d) The applicable Medicaid rates for emergency services 883 paid by a plan under this section to a provider with which the 884 plan does not have an active contract, shall be determined under 885 the requirements of s. 409.967(2)(b). 886 (e) Each managed care plan must offer a network contract to 887 each home medical equipment and supplies provider in the region 888 which meets quality and fraud prevention and detection standards 889 established by the plan and which agrees to accept the lowest 890 price previously negotiated between the plan and another such 891 provider. 892 (6) PROVIDER PAYMENT.—Managed care plans and hospitals 893 shall negotiate mutually acceptable rates, methods, and terms of 894 payment.For rates, methods, and terms of payment negotiated895after the contract between the agency and the plan is executed,896plans shall pay hospitals, at a minimum, the rate the agency897would have paid on the first day of the contract between the898provider and the plan. Such payments to hospitals may not exceed899120 percent of the rate the agency would have paid on the first900day of the contract between the provider and the plan, unless901specifically approved by the agency.Payment rates may be 902 updated periodically. 903 Section 22. Paragraph (b) of subsection (3) of section 904 624.91, Florida Statutes, is amended to read: 905 624.91 The Florida Healthy Kids Corporation Act.— 906 (3) ELIGIBILITY FOR STATE-FUNDED ASSISTANCE.—Only the 907 following individuals are eligible for state-funded assistance 908 in paying Florida Healthy Kids premiums: 909 (b) Notwithstanding s. 409.814, a legal alienalienswho is 910areenrolled in the Florida Healthy Kids program as of January 911 31, 2004, who doesdonot qualify for Title XXI federal funds 912 because he or she isthey arenot a lawfully residing child 913qualified aliensas defined in s. 409.811. 914 Section 23. Subsection (6) of section 641.513, Florida 915 Statutes, is amended, and subsection (7) is added to that 916 section, to read: 917 641.513 Requirements for providing emergency services and 918 care.— 919 (6) Reimbursement for services under this section provided 920 to subscribers who are Medicaid recipients by a provider for 921 whom no contract exists between the provider and the health 922 maintenance organization shall be determined under chapter 409 923the lesser of:924(a) The provider’s charges;925(b) The usual and customary provider charges for similar926services in the community where the services were provided;927(c) The charge mutually agreed to by the entity and the928provider within 60 days after submittal of the claim; or929(d) The Medicaid rate. 930 (7) Reimbursement for services under this section provided 931 to subscribers who are enrolled in a health maintenance 932 organization pursuant to s. 624.91 by a provider for whom no 933 contract exists between the provider and the health maintenance 934 organization shall be the lesser of: 935 (a) The provider’s charges; 936 (b) The usual and customary provider charges for similar 937 services in the community where the services were provided; 938 (c) The charge mutually agreed to by the entity and the 939 provider within 60 days after submittal of the claim; or 940 (d) The Medicaid rate. 941 Section 24. Subject to federal approval and adoption of a 942 contract amendment with the Agency for Health Care 943 Administration, an organization that is currently authorized to 944 provide Program of All-Inclusive Care for the Elderly (PACE) 945 services in southeast Florida and that is granted authority 946 under section 18 of chapter 2012-33, Laws of Florida, for up to 947 150 enrollee slots to serve frail elders residing in Broward 948 County may also use those PACE slots for frail elders residing 949 in Miami-Dade County. 950 Section 25. Subject to federal approval of the application 951 to be a site for the Program of All-inclusive Care for the 952 Elderly (PACE), the Agency for Health Care Administration shall 953 contract with one private, not-for-profit hospice organization 954 located in Escambia County that owns and manages health care 955 organizations licensed in Hospice Service Areas 1, 2A, and 2B 956 which provide comprehensive services, including, but not limited 957 to, hospice and palliative care, to frail elders who reside in 958 those Hospice Service Areas. The organization is exempt from the 959 requirements of chapter 641, Florida Statutes. The agency, in 960 consultation with the Department of Elderly Affairs and subject 961 to the appropriation of funds by the Legislature, shall approve 962 up to 100 initial enrollees in the Program of All-inclusive Care 963 for the Elderly established by the organization to serve frail 964 elders who reside in Hospice Service Areas 1, 2A, and 2B. 965 Section 26. Except as otherwise expressly provided in this 966 act and except for this section, which shall take effect upon 967 this act becoming a law, this act shall take effect July 1, 968 2016.