Bill Text: FL S2514 | 2017 | Regular Session | Enrolled
Bill Title: Health Care
Spectrum: Committee Bill
Status: (Passed) 2017-06-19 - Chapter No. 2017-129, companion bill(s) passed, see SB 2500 (Ch. 2017-70) [S2514 Detail]
Download: Florida-2017-S2514-Enrolled.html
ENROLLED 2017 Legislature SB 2514, 2nd Engrossed 20172514er 1 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; amending 21 s. 395.602, F.S.; revising the definition of the term 22 “rural hospital” to include a hospital classified as a 23 sole community hospital, regardless of the number of 24 licensed beds; amending s. 400.179, F.S.; providing 25 that certain fees deposited into the Medicaid nursing 26 home overpayment account in the Grants and Donations 27 Trust Fund may be used by the agency for enhanced 28 payments to nursing facilities as specified in the 29 General Appropriations Act or other law; amending s. 30 409.904, F.S.; authorizing the agency to make payments 31 for medical assistance and related services on behalf 32 of a person diagnosed with acquired immune deficiency 33 syndrome who meets certain criteria, subject to the 34 availability of moneys and specified limitations; 35 amending s. 409.906, F.S.; deleting a provision 36 relating to consolidation of waiver services to 37 conform to changes made by the act; amending s. 38 409.908, F.S.; revising requirements related to the 39 long-term care reimbursement plan and cost reporting 40 system; requiring the calculation of separate prices 41 for each patient care subcomponent based on specified 42 cost reports; providing that certain ceilings and 43 targets apply only to providers being reimbursed on a 44 cost-based system; requiring implementation of a 45 prospective payment methodology for rate setting 46 purposes; providing parameters; expanding the direct 47 care subcomponent to include allowable therapy and 48 dietary costs; specifying that allowable ancillary 49 costs are included in the indirect care cost 50 subcomponent; requiring that nursing home prospective 51 payment rates be rebased at a specified interval; 52 authorizing the payment of a direct care supplemental 53 payment to certain providers; specifying the amount 54 providers will be reimbursed for a specified period of 55 time, which may be a cost-based rate or a prospective 56 payment rate; providing for expiration of this 57 reimbursement mechanism on a specified date; requiring 58 the agency to reimburse providers on a cost-based rate 59 or a rebased prospective payment rate, beginning on a 60 specified date; requiring that Medicaid pay 61 deductibles and coinsurance for certain X-ray services 62 provided in an assisted living facility or in the 63 patient’s home; deleting a provision relating to 64 reimbursement rate parameters for certain Medicaid 65 providers; authorizing the agency to receive funds 66 from certain governmental entities for specified 67 purposes; providing requirements for letters of 68 agreement executed by a local governmental entity; 69 amending s. 409.9082, F.S.; revising the uses of 70 quality assessment and federal matching funds to 71 include the partial funding of the quality incentive 72 payment program for nursing facilities that exceed 73 quality benchmarks; amending s. 409.909, F.S.; 74 providing that the agency shall make payments and 75 distribute funds to qualifying institutions in 76 addition to hospitals under the Statewide Medicaid 77 Residency Program; amending s. 409.911, F.S.; updating 78 obsolete language; amending s. 409.9119, F.S.; 79 revising criteria for the participation of hospitals 80 in the disproportionate share program for specialty 81 hospitals for children; amending s. 409.913, F.S.; 82 removing a requirement that the agency provide each 83 Medicaid recipient with an explanation of benefits; 84 authorizing the agency to provide an explanation of 85 benefits to a sample of Medicaid recipients or their 86 representatives; amending s. 409.975, F.S.; 87 authorizing, rather than requiring, a managed care 88 plan to offer a network contract to certain medical 89 equipment and supplies providers in the region; 90 amending s. 409.979, F.S.; expanding eligibility for 91 long-term care services to include hospital level of 92 care for certain individuals diagnosed with cystic 93 fibrosis; revising eligibility for certain Medicaid 94 recipients in the long-term care managed care program; 95 amending s. 409.983, F.S.; eliminating the requirement 96 that the agency consider facility costs adjusted for 97 inflation and other factors in the establishment of 98 certain payment rates for nursing facilities; amending 99 s. 409.901, F.S.; revising the definition of the term 100 “third party”; amending s. 409.910, F.S.; revising 101 provisions relating to responsibility for Medicaid 102 payments in settlement proceedings; extending period 103 of time for filing a claim of lien filed for purposes 104 of third-party liability; extending the period of time 105 within which the agency is authorized to pursue 106 certain causes of action; revising procedures for a 107 recipient to contest the amount payable to the agency 108 when federal law limits reimbursement under certain 109 circumstances; requiring certain entities responsible 110 for payment of claims to provide certain records and 111 information and respond to requests for payment of 112 claims within a specified timeframe as a condition of 113 doing business in the state; providing circumstances 114 under which such parties are obligated to pay claims; 115 deleting provisions relating to cooperative agreements 116 between the agency, the Office of Insurance 117 Regulation, and the Department of Revenue; requiring 118 the agency to contract with a specified not-for-profit 119 organization, a not-for-profit agency serving elders, 120 and a not-for-profit hospice in Leon County to be a 121 site for the Program for All-inclusive Care for the 122 Elderly (PACE), subject to federal approval of the 123 application site; authorizing PACE to serve eligible 124 enrollees in Gadsden, Jefferson, Leon, and Wakulla 125 Counties; requiring the agency, in consultation with 126 the department, to approve a certain number of initial 127 enrollees in PACE at the new site, subject to an 128 appropriation; amending s. 17 of chapter 2011-61, Laws 129 of Florida; requiring the agency, in consultation with 130 the department, to approve a certain number of initial 131 enrollees in PACE to serve frail elders who reside in 132 certain counties; amending s. 29 of chapter 2016-65, 133 Laws of Florida; requiring the agency, in consultation 134 with the department, to approve a certain number of 135 enrollees in the PACE established to serve frail 136 elders who reside in Hospice Service Area 7C; 137 requiring the agency, in consultation with the 138 department, to approve a certain number of initial 139 enrollees in PACE at the new site, subject to certain 140 conditions; amending ss. 391.055, 393.0661, 409.968, 141 427.0135, and 1011.70, F.S.; conforming cross 142 references; providing appropriations; providing 143 effective dates. 144 145 Be It Enacted by the Legislature of the State of Florida: 146 147 Section 1. Paragraph (c) of subsection (2) of section 148 210.20, Florida Statutes, is amended to read: 149 210.20 Employees and assistants; distribution of funds.— 150 (2) As collections are received by the division from such 151 cigarette taxes, it shall pay the same into a trust fund in the 152 State Treasury designated “Cigarette Tax Collection Trust Fund” 153 which shall be paid and distributed as follows: 154 (c) Beginning July 1, 20172013, and continuing through 155 June 30, 2033, the division shall from month to month certify to 156 the Chief Financial Officer the amount derived from the 157 cigarette tax imposed by s. 210.02, less the service charges 158 provided for in s. 215.20 and less 0.9 percent of the amount 159 derived from the cigarette tax imposed by s. 210.02, which shall 160 be deposited into the Alcoholic Beverage and Tobacco Trust Fund, 161 specifying an amount equal to 1 percent of the net collections, 162 not to exceed $3 million annually, and that amount shall be 163 deposited into the Biomedical Research Trust Fund in the 164 Department of Health. These funds are appropriated annuallyin165an amount not to exceed $3 millionfrom the Biomedical Research 166 Trust Fund for the advancement of cures for cancers afflicting 167 pediatric populations through basic or applied research, 168 including, but not limited to, clinical trials and nontoxic drug 169 discovery. These funds are not included in the calculation for 170 the distribution of funds pursuant to s. 381.915; however, these 171 funds shall be distributed to cancer centers participating in 172 the Florida Consortium of National Cancer Institute Centers 173 Program in the same proportion as is allocated to each cancer 174 center in accordance with s. 381.915 and are in addition to any 175 funds distributed pursuant to that sectionDepartment of Health176and the Sanford-Burnham Medical Research Institute to work in177conjunction for the purpose of establishing activities and grant178opportunities in relation to biomedical research. 179 Section 2. Subsection (2) of section 381.922, Florida 180 Statutes, is amended to read: 181 381.922 William G. “Bill” Bankhead, Jr., and David Coley 182 Cancer Research Program.— 183 (2) The program shall provide grants for cancer research to 184 further the search for cures for cancer. 185 (a) Emphasis shall be given to the following goals, as 186 those goals support the advancement of such cures: 187 1. Efforts to significantly expand cancer research capacity 188 in the state by: 189 a. Identifying ways to attract new research talent and 190 attendant national grant-producing researchers to cancer 191 research facilities in this state; 192 b. Implementing a peer-reviewed, competitive process to 193 identify and fund the best proposals to expand cancer research 194 institutes in this state; 195 c. Funding through available resources for those proposals 196 that demonstrate the greatest opportunity to attract federal 197 research grants and private financial support; 198 d. Encouraging the employment of bioinformatics in order to 199 create a cancer informatics infrastructure that enhances 200 information and resource exchange and integration through 201 researchers working in diverse disciplines, to facilitate the 202 full spectrum of cancer investigations; 203 e. Facilitating the technical coordination, business 204 development, and support of intellectual property as it relates 205 to the advancement of cancer research; and 206 f. Aiding in other multidisciplinary research-support 207 activities as they inure to the advancement of cancer research. 208 2. Efforts to improve both research and treatment through 209 greater participation in clinical trials networks by: 210 a. Identifying ways to increase pediatric and adult 211 enrollment in cancer clinical trials; 212 b. Supporting public and private professional education 213 programs designed to increase the awareness and knowledge about 214 cancer clinical trials; 215 c. Providing tools to cancer patients and community-based 216 oncologists to aid in the identification of cancer clinical 217 trials available in the state; and 218 d. Creating opportunities for the state’s academic cancer 219 centers to collaborate with community-based oncologists in 220 cancer clinical trials networks. 221 3. Efforts to reduce the impact of cancer on disparate 222 groups by: 223 a. Identifying those cancers that disproportionately impact 224 certain demographic groups; and 225 b. Building collaborations designed to reduce health 226 disparities as they relate to cancer. 227 (b) Preference may be given to grant proposals that foster 228 collaborations among institutions, researchers, and community 229 practitioners, as such proposals support the advancement of 230 cures through basic or applied research, including clinical 231 trials involving cancer patients and related networks. 232 (c) There is established within the program the Live Like 233 Bella Initiative. The purpose of the initiative is to advance 234 progress toward curing pediatric cancer by awarding grants 235 through the peer-reviewed, competitive process established under 236 subsection (3). This paragraph is subject to the annual 237 appropriation of funds by the Legislature. 238 Section 3. Paragraph (a) of subsection (10) of section 239 394.9082, Florida Statutes, is republished, paragraph (b) of 240 that subsection is amended, and paragraph (f) is added to that 241 subsection, to read: 242 394.9082 Behavioral health managing entities.— 243 (10) ACUTE CARE SERVICES UTILIZATION DATABASE.—The 244 department shall develop, implement, and maintain standards 245 under which a managing entity shall collect utilization data 246 from all public receiving facilities situated within its 247 geographical service area and all detoxification and addictions 248 receiving facilities under contract with the managing entity. As 249 used in this subsection, the term “public receiving facility” 250 means an entity that meets the licensure requirements of, and is 251 designated by, the department to operate as a public receiving 252 facility under s. 394.875 and that is operating as a licensed 253 crisis stabilization unit. 254 (a) The department shall develop standards and protocols to 255 be used for data collection, storage, transmittal, and analysis. 256 The standards and protocols shall allow for compatibility of 257 data and data transmittal between public receiving facilities, 258 detoxification facilities, addictions receiving facilities, 259 managing entities, and the department for the implementation, 260 and to meet the requirements, of this subsection. 261 (b) A managing entity shall require providers specified in 262 paragraph (a) to submit data, in real time or at least daily, to 263 the managing entity for: 264 1. All admissions and discharges of clients receiving 265 public receiving facility services who qualify as indigent, as 266 defined in s. 394.4787. 267 2. All admissions and discharges of clients receiving 268 substance abuse services in an addictions receiving facility or 269 detoxification facility pursuant to parts IV and V of chapter 270 397 who qualify as indigent. 271 3. The current active census of total licensedand utilized272 beds, the number of beds purchased by the department, the number 273 of clients qualifying as indigent occupyingwho occupy any of274 those beds, and the total number of unoccupied licensed beds, 275 regardless of funding, and the number in excess of licensed276capacity. Crisis units licensed for both adult and child use277will report as a single unit. 278 (f) The department shall post on its website, by facility, 279 the data collected pursuant to this subsection and update such 280 posting monthly. 281 Section 4. Paragraph (e) of subsection (2) of section 282 395.602, Florida Statutes, is amended to read: 283 395.602 Rural hospitals.— 284 (2) DEFINITIONS.—As used in this part, the term: 285 (e) “Rural hospital” means an acute care hospital licensed 286 under this chapter, having 100 or fewer licensed beds and an 287 emergency room, which is: 288 1. The sole provider within a county with a population 289 density of up to 100 persons per square mile; 290 2. An acute care hospital, in a county with a population 291 density of up to 100 persons per square mile, which is at least 292 30 minutes of travel time, on normally traveled roads under 293 normal traffic conditions, from any other acute care hospital 294 within the same county; 295 3. A hospital supported by a tax district or subdistrict 296 whose boundaries encompass a population of up to 100 persons per 297 square mile; 298 4. A hospital classified as a sole community hospital under 299 42 C.F.R. s. 412.92, regardless of the number ofwhich has up to300175licensed beds; 301 5. A hospital with a service area that has a population of 302 up to 100 persons per square mile. As used in this subparagraph, 303 the term “service area” means the fewest number of zip codes 304 that account for 75 percent of the hospital’s discharges for the 305 most recent 5-year period, based on information available from 306 the hospital inpatient discharge database in the Florida Center 307 for Health Information and Transparency at the agency; or 308 6. A hospital designated as a critical access hospital, as 309 defined in s. 408.07. 310 311 Population densities used in this paragraph must be based upon 312 the most recently completed United States census. A hospital 313 that received funds under s. 409.9116 for a quarter beginning no 314 later than July 1, 2002, is deemed to have been and shall 315 continue to be a rural hospital from that date through June 30, 316 2021, if the hospital continues to have up to 100 licensed beds 317 and an emergency room. An acute care hospital that has not 318 previously been designated as a rural hospital and that meets 319 the criteria of this paragraph shall be granted such designation 320 upon application, including supporting documentation, to the 321 agency. A hospital that was licensed as a rural hospital during 322 the 2010-2011 or 2011-2012 fiscal year shall continue to be a 323 rural hospital from the date of designation through June 30, 324 2021, if the hospital continues to have up to 100 licensed beds 325 and an emergency room. 326 Section 5. Effective October 1, 2018, paragraph (d) of 327 subsection (2) of section 400.179, Florida Statutes, is amended 328 to read: 329 400.179 Liability for Medicaid underpayments and 330 overpayments.— 331 (2) Because any transfer of a nursing facility may expose 332 the fact that Medicaid may have underpaid or overpaid the 333 transferor, and because in most instances, any such underpayment 334 or overpayment can only be determined following a formal field 335 audit, the liabilities for any such underpayments or 336 overpayments shall be as follows: 337 (d) Where the transfer involves a facility that has been 338 leased by the transferor: 339 1. The transferee shall, as a condition to being issued a 340 license by the agency, acquire, maintain, and provide proof to 341 the agency of a bond with a term of 30 months, renewable 342 annually, in an amount not less than the total of 3 months’ 343 Medicaid payments to the facility computed on the basis of the 344 preceding 12-month average Medicaid payments to the facility. 345 2. A leasehold licensee may meet the requirements of 346 subparagraph 1. by payment of a nonrefundable fee, paid at 347 initial licensure, paid at the time of any subsequent change of 348 ownership, and paid annually thereafter, in the amount of 1 349 percent of the total of 3 months’ Medicaid payments to the 350 facility computed on the basis of the preceding 12-month average 351 Medicaid payments to the facility. If a preceding 12-month 352 average is not available, projected Medicaid payments may be 353 used. The fee shall be deposited into the Grants and Donations 354 Trust Fund and shall be accounted for separately as a Medicaid 355 nursing home overpayment account. These fees shall be used at 356 the sole discretion of the agency to repay nursing home Medicaid 357 overpayments or for enhanced payments to nursing facilities as 358 specified in the General Appropriations Act or other law. 359 Payment of this fee shall not release the licensee from any 360 liability for any Medicaid overpayments, nor shall payment bar 361 the agency from seeking to recoup overpayments from the licensee 362 and any other liable party. As a condition of exercising this 363 lease bond alternative, licensees paying this fee must maintain 364 an existing lease bond through the end of the 30-month term 365 period of that bond. The agency is herein granted specific 366 authority to promulgate all rules pertaining to the 367 administration and management of this account, including 368 withdrawals from the account, subject to federal review and 369 approval. This provision shall take effect upon becoming law and 370 shall apply to any leasehold license application. The financial 371 viability of the Medicaid nursing home overpayment account shall 372 be determined by the agency through annual review of the account 373 balance and the amount of total outstanding, unpaid Medicaid 374 overpayments owing from leasehold licensees to the agency as 375 determined by final agency audits. By March 31 of each year, the 376 agency shall assess the cumulative fees collected under this 377 subparagraph, minus any amounts used to repay nursing home 378 Medicaid overpayments and amounts transferred to contribute to 379 the General Revenue Fund pursuant to s. 215.20. If the net 380 cumulative collections, minus amounts utilized to repay nursing 381 home Medicaid overpayments, exceed $25 million, the provisions 382 of this subparagraph shall not apply for the subsequent fiscal 383 year. 384 3. The leasehold licensee may meet the bond requirement 385 through other arrangements acceptable to the agency. The agency 386 is herein granted specific authority to promulgate rules 387 pertaining to lease bond arrangements. 388 4. All existing nursing facility licensees, operating the 389 facility as a leasehold, shall acquire, maintain, and provide 390 proof to the agency of the 30-month bond required in 391 subparagraph 1., above, on and after July 1, 1993, for each 392 license renewal. 393 5. It shall be the responsibility of all nursing facility 394 operators, operating the facility as a leasehold, to renew the 395 30-month bond and to provide proof of such renewal to the agency 396 annually. 397 6. Any failure of the nursing facility operator to acquire, 398 maintain, renew annually, or provide proof to the agency shall 399 be grounds for the agency to deny, revoke, and suspend the 400 facility license to operate such facility and to take any 401 further action, including, but not limited to, enjoining the 402 facility, asserting a moratorium pursuant to part II of chapter 403 408, or applying for a receiver, deemed necessary to ensure 404 compliance with this section and to safeguard and protect the 405 health, safety, and welfare of the facility’s residents. A lease 406 agreement required as a condition of bond financing or 407 refinancing under s. 154.213 by a health facilities authority or 408 required under s. 159.30 by a county or municipality is not a 409 leasehold for purposes of this paragraph and is not subject to 410 the bond requirement of this paragraph. 411 Section 6. Subsection (11) is added to section 409.904, 412 Florida Statutes, to read: 413 409.904 Optional payments for eligible persons.—The agency 414 may make payments for medical assistance and related services on 415 behalf of the following persons who are determined to be 416 eligible subject to the income, assets, and categorical 417 eligibility tests set forth in federal and state law. Payment on 418 behalf of these Medicaid eligible persons is subject to the 419 availability of moneys and any limitations established by the 420 General Appropriations Act or chapter 216. 421 (11) Subject to federal waiver approval, a person diagnosed 422 with acquired immune deficiency syndrome (AIDS) who has an AIDS 423 related opportunistic infection and is at risk of 424 hospitalization as determined by the agency and whose income is 425 at or below 300 percent of the Federal Benefit Rate. 426 Section 7. Paragraph (b) of subsection (13) of section 427 409.906, Florida Statutes, is amended to read: 428 409.906 Optional Medicaid services.—Subject to specific 429 appropriations, the agency may make payments for services which 430 are optional to the state under Title XIX of the Social Security 431 Act and are furnished by Medicaid providers to recipients who 432 are determined to be eligible on the dates on which the services 433 were provided. Any optional service that is provided shall be 434 provided only when medically necessary and in accordance with 435 state and federal law. Optional services rendered by providers 436 in mobile units to Medicaid recipients may be restricted or 437 prohibited by the agency. Nothing in this section shall be 438 construed to prevent or limit the agency from adjusting fees, 439 reimbursement rates, lengths of stay, number of visits, or 440 number of services, or making any other adjustments necessary to 441 comply with the availability of moneys and any limitations or 442 directions provided for in the General Appropriations Act or 443 chapter 216. If necessary to safeguard the state’s systems of 444 providing services to elderly and disabled persons and subject 445 to the notice and review provisions of s. 216.177, the Governor 446 may direct the Agency for Health Care Administration to amend 447 the Medicaid state plan to delete the optional Medicaid service 448 known as “Intermediate Care Facilities for the Developmentally 449 Disabled.” Optional services may include: 450 (13) HOME AND COMMUNITY-BASED SERVICES.— 451(b) The agency may consolidate types of services offered in452the Aged and Disabled Waiver, the Channeling Waiver, the Project453AIDS Care Waiver, and the Traumatic Brain and Spinal Cord Injury454Waiver programs in order to group similar services under a455single service, or continue a service upon evidence of the need456for including a particular service type in a particular waiver.457The agency is authorized to seek a Medicaid state plan amendment458or federal waiver approval to implement this policy.459 Section 8. Effective October 1, 2018, subsection (2) of 460 section 409.908, Florida Statutes, is amended to read: 461 409.908 Reimbursement of Medicaid providers.—Subject to 462 specific appropriations, the agency shall reimburse Medicaid 463 providers, in accordance with state and federal law, according 464 to methodologies set forth in the rules of the agency and in 465 policy manuals and handbooks incorporated by reference therein. 466 These methodologies may include fee schedules, reimbursement 467 methods based on cost reporting, negotiated fees, competitive 468 bidding pursuant to s. 287.057, and other mechanisms the agency 469 considers efficient and effective for purchasing services or 470 goods on behalf of recipients. If a provider is reimbursed based 471 on cost reporting and submits a cost report late and that cost 472 report would have been used to set a lower reimbursement rate 473 for a rate semester, then the provider’s rate for that semester 474 shall be retroactively calculated using the new cost report, and 475 full payment at the recalculated rate shall be effected 476 retroactively. Medicare-granted extensions for filing cost 477 reports, if applicable, shall also apply to Medicaid cost 478 reports. Payment for Medicaid compensable services made on 479 behalf of Medicaid eligible persons is subject to the 480 availability of moneys and any limitations or directions 481 provided for in the General Appropriations Act or chapter 216. 482 Further, nothing in this section shall be construed to prevent 483 or limit the agency from adjusting fees, reimbursement rates, 484 lengths of stay, number of visits, or number of services, or 485 making any other adjustments necessary to comply with the 486 availability of moneys and any limitations or directions 487 provided for in the General Appropriations Act, provided the 488 adjustment is consistent with legislative intent. 489 (2)(a)1. Reimbursement to nursing homes licensed under part 490 II of chapter 400 and state-owned-and-operated intermediate care 491 facilities for the developmentally disabled licensed under part 492 VIII of chapter 400 must be made prospectively. 493 2. Unless otherwise limited or directed in the General 494 Appropriations Act, reimbursement to hospitals licensed under 495 part I of chapter 395 for the provision of swing-bed nursing 496 home services must be made on the basis of the average statewide 497 nursing home payment, and reimbursement to a hospital licensed 498 under part I of chapter 395 for the provision of skilled nursing 499 services must be made on the basis of the average nursing home 500 payment for those services in the county in which the hospital 501 is located. When a hospital is located in a county that does not 502 have any community nursing homes, reimbursement shall be 503 determined by averaging the nursing home payments in counties 504 that surround the county in which the hospital is located. 505 Reimbursement to hospitals, including Medicaid payment of 506 Medicare copayments, for skilled nursing services shall be 507 limited to 30 days, unless a prior authorization has been 508 obtained from the agency. Medicaid reimbursement may be extended 509 by the agency beyond 30 days, and approval must be based upon 510 verification by the patient’s physician that the patient 511 requires short-term rehabilitative and recuperative services 512 only, in which case an extension of no more than 15 days may be 513 approved. Reimbursement to a hospital licensed under part I of 514 chapter 395 for the temporary provision of skilled nursing 515 services to nursing home residents who have been displaced as 516 the result of a natural disaster or other emergency may not 517 exceed the average county nursing home payment for those 518 services in the county in which the hospital is located and is 519 limited to the period of time which the agency considers 520 necessary for continued placement of the nursing home residents 521 in the hospital. 522 (b) Subject to any limitations or directions in the General 523 Appropriations Act, the agency shall establish and implement a 524 state Title XIX Long-Term Care Reimbursement Plan for nursing 525 home care in order to provide care and services in conformance 526 with the applicable state and federal laws, rules, regulations, 527 and quality and safety standards and to ensure that individuals 528 eligible for medical assistance have reasonable geographic 529 access to such care. 530 1. The agency shall amend the long-term care reimbursement 531 plan and cost reporting system to create direct care and 532 indirect care subcomponents of the patient care component of the 533 per diem rate. These two subcomponents together shall equal the 534 patient care component of the per diem rate. Separate prices 535cost-based ceilingsshall be calculated for each patient care 536 subcomponent, initially based on the September 2016 rate setting 537 cost reports and subsequently based on the most recently audited 538 cost report used during a rebasing year. The direct care 539 subcomponent of the per diem rate for any providers still being 540 reimbursed on a cost basis shall be limited by the cost-based 541 class ceiling, and the indirect care subcomponent may be limited 542 by the lower of the cost-based class ceiling, the target rate 543 class ceiling, or the individual provider target. The ceilings 544 and targets apply only to providers being reimbursed on a cost 545 based system. Effective October 1, 2018, a prospective payment 546 methodology shall be implemented for rate setting purposes with 547 the following parameters: 548 a. Peer Groups, including: 549 (I) North-SMMC Regions 1-9, less Palm Beach and Okeechobee 550 Counties; and 551 (II) South-SMMC Regions 10-11, plus Palm Beach and 552 Okeechobee Counties. 553 b. Percentage of Median Costs based on the cost reports 554 used for September 2016 rate setting: 555 (I) Direct Care Costs........................100 percent. 556 (II) Indirect Care Costs......................92 percent. 557 (III) Operating Costs.........................86 percent. 558 c. Floors: 559 (I) Direct Care Component.....................95 percent. 560 (II) Indirect Care Component................92.5 percent. 561 (III) Operating Component...........................None. 562 d. Pass-through PaymentsReal Estate and Personal Property 563 Taxes and Property Insurance. 564 e. Quality Incentive Program Payment Pool....6 percent of 565 September 2016 non-property related payments of included 566 facilities. 567 f. Quality Score Threshold to Quality for Quality Incentive 568 Payment..................20th percentile of included facilities. 569 g. Fair Rental Value System Payment Parameters: 570 (I) Building Value per Square Foot based on 2018 RS Means. 571 (II) Land Valuation...10 percent of Gross Building value. 572 (III) Facility Square Footage......Actual Square Footage. 573 (IV) Moveable Equipment Allowance.........$8,000 per bed. 574 (V) Obsolescence Factor......................1.5 percent. 575 (VI) Fair Rental Rate of Return................8 percent. 576 (VII) Minimum Occupancy.......................90 percent. 577 (VIII) Maximum Facility Age.....................40 years. 578 (IX) Minimum Square Footage per Bed..................350. 579 (X) Maximum Square Footage for Bed...................500. 580 (XI) Minimum Cost of a renovation/replacements$500 per bed. 581 h. Ventilator Supplemental payment of $200 per Medicaid day 582 of 40,000 ventilator Medicaid days per fiscal year. 583 2. The direct care subcomponent shall include salaries and 584 benefits of direct care staff providing nursing services 585 including registered nurses, licensed practical nurses, and 586 certified nursing assistants who deliver care directly to 587 residents in the nursing home facility, allowable therapy costs, 588 and dietary costs. This excludes nursing administration, staff 589 development, the staffing coordinator, and the administrative 590 portion of the minimum data set and care plan coordinators. The 591 direct care subcomponent also includes medically necessary 592 dental care, vision care, hearing care, and podiatric care. 593 3. All other patient care costs shall be included in the 594 indirect care cost subcomponent of the patient care per diem 595 rate, including complex medical equipment, medical supplies, and 596 other allowable ancillary costs. Costs may not be allocated 597 directly or indirectly to the direct care subcomponent from a 598 home office or management company. 599 4. On July 1 of each year, the agency shall report to the 600 Legislature direct and indirect care costs, including average 601 direct and indirect care costs per resident per facility and 602 direct care and indirect care salaries and benefits per category 603 of staff member per facility. 604 5. Every fourth year, the agency shall rebase nursing home 605 prospective payment rates to reflect changes in cost based on 606 the most recently audited cost report for each participating 607 providerIn order to offset the cost of general and professional608liability insurance, the agency shall amend the plan to allow609for interim rate adjustments to reflect increases in the cost of610general or professional liability insurance for nursing homes.611This provision shall be implemented to the extent existing612appropriations are available. 613 6. A direct care supplemental payment may be made to 614 providers whose direct care hours per patient day are above the 615 80th percentile and who provide Medicaid services to a larger 616 percentage of Medicaid patients than the state average. 617 7. For the period beginning on October 1, 2018, and ending 618 on September 30, 2021, the agency shall reimburse providers the 619 greater of their September 2016 cost-based rate or their 620 prospective payment rate. Effective October 1, 2021, the agency 621 shall reimburse providers the greater of 95 percent of their 622 cost-based rate or their rebased prospective payment rate, using 623 the most recently audited cost report for each facility. This 624 subparagraph shall expire September 30, 2023. 625 8. Pediatric, Florida Department of Veterans Affairs, and 626 government-owned facilities are exempt from the pricing model 627 established in this subsection and shall remain on a cost-based 628 prospective payment system. Effective October 1, 2018, the 629 agency shall set rates for all facilities remaining on a cost 630 based prospective payment system using each facility’s most 631 recently audited cost report, eliminating retroactive 632 settlements. 633 634 It is the intent of the Legislature that the reimbursement plan 635 achieve the goal of providing access to health care for nursing 636 home residents who require large amounts of care while 637 encouraging diversion services as an alternative to nursing home 638 care for residents who can be served within the community. The 639 agency shall base the establishment of any maximum rate of 640 payment, whether overall or component, on the available moneys 641 as provided for in the General Appropriations Act. The agency 642 may base the maximum rate of payment on the results of 643 scientifically valid analysis and conclusions derived from 644 objective statistical data pertinent to the particular maximum 645 rate of payment. 646 Section 9. Subsections (6) through (26) of section 409.908, 647 Florida Statutes, are renumbered as subsections (5) through 648 (25), respectively, present subsections (5), (14), and (24) are 649 amended, and a new subsection (26) is added to that section, to 650 read: 651 409.908 Reimbursement of Medicaid providers.—Subject to 652 specific appropriations, the agency shall reimburse Medicaid 653 providers, in accordance with state and federal law, according 654 to methodologies set forth in the rules of the agency and in 655 policy manuals and handbooks incorporated by reference therein. 656 These methodologies may include fee schedules, reimbursement 657 methods based on cost reporting, negotiated fees, competitive 658 bidding pursuant to s. 287.057, and other mechanisms the agency 659 considers efficient and effective for purchasing services or 660 goods on behalf of recipients. If a provider is reimbursed based 661 on cost reporting and submits a cost report late and that cost 662 report would have been used to set a lower reimbursement rate 663 for a rate semester, then the provider’s rate for that semester 664 shall be retroactively calculated using the new cost report, and 665 full payment at the recalculated rate shall be effected 666 retroactively. Medicare-granted extensions for filing cost 667 reports, if applicable, shall also apply to Medicaid cost 668 reports. Payment for Medicaid compensable services made on 669 behalf of Medicaid eligible persons is subject to the 670 availability of moneys and any limitations or directions 671 provided for in the General Appropriations Act or chapter 216. 672 Further, nothing in this section shall be construed to prevent 673 or limit the agency from adjusting fees, reimbursement rates, 674 lengths of stay, number of visits, or number of services, or 675 making any other adjustments necessary to comply with the 676 availability of moneys and any limitations or directions 677 provided for in the General Appropriations Act, provided the 678 adjustment is consistent with legislative intent. 679(5)An ambulatory surgical center shall be reimbursed the680lesser of the amount billed by the provider or the Medicare681established allowable amount for the facility.682 (13)(14)Medicare premiums for persons eligible for both 683 Medicare and Medicaid coverage shall be paid at the rates 684 established by Title XVIII of the Social Security Act. For 685 Medicare services rendered to Medicaid-eligible persons, 686 Medicaid shall pay Medicare deductibles and coinsurance as 687 follows: 688 (a) Medicaid’s financial obligation for deductibles and 689 coinsurance payments shall be based on Medicare allowable fees, 690 not on a provider’s billed charges. 691 (b) Medicaid will pay no portion of Medicare deductibles 692 and coinsurance when payment that Medicare has made for the 693 service equals or exceeds what Medicaid would have paid if it 694 had been the sole payor. The combined payment of Medicare and 695 Medicaid shall not exceed the amount Medicaid would have paid 696 had it been the sole payor. The Legislature finds that there has 697 been confusion regarding the reimbursement for services rendered 698 to dually eligible Medicare beneficiaries. Accordingly, the 699 Legislature clarifies that it has always been the intent of the 700 Legislature before and after 1991 that, in reimbursing in 701 accordance with fees established by Title XVIII for premiums, 702 deductibles, and coinsurance for Medicare services rendered by 703 physicians to Medicaid eligible persons, physicians be 704 reimbursed at the lesser of the amount billed by the physician 705 or the Medicaid maximum allowable fee established by the Agency 706 for Health Care Administration, as is permitted by federal law. 707 It has never been the intent of the Legislature with regard to 708 such services rendered by physicians that Medicaid be required 709 to provide any payment for deductibles, coinsurance, or 710 copayments for Medicare cost sharing, or any expenses incurred 711 relating thereto, in excess of the payment amount provided for 712 under the State Medicaid plan for such service. This payment 713 methodology is applicable even in those situations in which the 714 payment for Medicare cost sharing for a qualified Medicare 715 beneficiary with respect to an item or service is reduced or 716 eliminated. This expression of the Legislature is in 717 clarification of existing law and shall apply to payment for, 718 and with respect to provider agreements with respect to, items 719 or services furnished on or after the effective date of this 720 act. This paragraph applies to payment by Medicaid for items and 721 services furnished before the effective date of this act if such 722 payment is the subject of a lawsuit that is based on the 723 provisions of this section, and that is pending as of, or is 724 initiated after, the effective date of this act. 725 (c) Notwithstanding paragraphs (a) and (b): 726 1. Medicaid payments for Nursing Home Medicare part A 727 coinsurance are limited to the Medicaid nursing home per diem 728 rate less any amounts paid by Medicare, but only up to the 729 amount of Medicare coinsurance. The Medicaid per diem rate shall 730 be the rate in effect for the dates of service of the crossover 731 claims and may not be subsequently adjusted due to subsequent 732 per diem rate adjustments. 733 2. Medicaid shall pay all deductibles and coinsurance for 734 Medicare-eligible recipients receiving freestanding end stage 735 renal dialysis center services. 736 3. Medicaid payments for general and specialty hospital 737 inpatient services are limited to the Medicare deductible and 738 coinsurance per spell of illness. Medicaid payments for hospital 739 Medicare Part A coinsurance shall be limited to the Medicaid 740 hospital per diem rate less any amounts paid by Medicare, but 741 only up to the amount of Medicare coinsurance. Medicaid payments 742 for coinsurance shall be limited to the Medicaid per diem rate 743 in effect for the dates of service of the crossover claims and 744 may not be subsequently adjusted due to subsequent per diem 745 adjustments. 746 4. Medicaid shall pay all deductibles and coinsurance for 747 Medicare emergency transportation services provided by 748 ambulances licensed pursuant to chapter 401. 749 5. Medicaid shall pay all deductibles and coinsurance for 750 portable X-ray Medicare Part B services provided in a nursing 751 home, in an assisted living facility, or in the patient’s home. 752 (23)(24)(a) The agency shall establish rates at a level 753 that ensures no increase in statewide expenditures resulting 754 from a change in unit costs effective July 1, 2011. 755 Reimbursement rates shall be as provided in the General 756 Appropriations Act. 757 (b) Base rate reimbursement for inpatient services under a 758 diagnosis-related group payment methodology shall be provided in 759 the General Appropriations Act. 760 (c) Base rate reimbursement for outpatient services under 761 an enhanced ambulatory payment group methodology shall be 762 provided in the General Appropriations Act. 763 (d)(c)This subsection applies to the following provider 764 types: 7651.Inpatient hospitals.7662.Outpatient hospitals.767 1.3.Nursing homes. 768 2.4.County health departments. 7695.Prepaid health plans.770 (e)(d)The agency shall apply the effect of this subsection 771 to the reimbursement rates for nursing home diversion programs. 772 (26) The agency may receive funds from state entities, 773 including, but not limited to, the Department of Health, local 774 governments, and other local political subdivisions, for the 775 purpose of making special exception payments, including federal 776 matching funds. Funds received for this purpose shall be 777 separately accounted for and may not be commingled with other 778 state or local funds in any manner. The agency may certify all 779 local governmental funds used as state match under Title XIX of 780 the Social Security Act to the extent and in the manner 781 authorized under the General Appropriations Act and pursuant to 782 an agreement between the agency and the local governmental 783 entity. In order for the agency to certify such local 784 governmental funds, a local governmental entity must submit a 785 final, executed letter of agreement to the agency, which must be 786 received by October 1 of each fiscal year and provide the total 787 amount of local governmental funds authorized by the entity for 788 that fiscal year under the General Appropriations Act. The local 789 governmental entity shall use a certification form prescribed by 790 the agency. At a minimum, the certification form must identify 791 the amount being certified and describe the relationship between 792 the certifying local governmental entity and the local health 793 care provider. Local governmental funds outlined in the letters 794 of agreement must be received by the agency no later than 795 October 31 of each fiscal year in which such funds are pledged, 796 unless an alternative plan is specifically approved by the 797 agency. 798 Section 10. Effective October 1, 2018, subsection (4) of 799 section 409.9082, Florida Statutes, is amended to read: 800 409.9082 Quality assessment on nursing home facility 801 providers; exemptions; purpose; federal approval required; 802 remedies.— 803 (4) The purpose of the nursing home facility quality 804 assessment is to ensure continued quality of care. Collected 805 assessment funds shall be used to obtain federal financial 806 participation through the Medicaid program to make Medicaid 807 payments for nursing home facility services up to the amount of 808 nursing home facility Medicaid rates as calculated in accordance 809 with the approved state Medicaid plan in effect on December 31, 810 2007. The quality assessment and federal matching funds shall be 811 used exclusively for the following purposes and in the following 812 order of priority: 813 (a) To reimburse the Medicaid share of the quality 814 assessment as a pass-through, Medicaid-allowable cost; 815 (b) To increase to each nursing home facility’s Medicaid 816 rate, as needed, an amount that restores rate reductions 817 effective on or after January 1, 2008, as provided in the 818 General Appropriations Act; and 819 (c) To partially fund the quality incentive payment program 820 for nursing facilities that exceed quality benchmarksincrease821each nursing home facility’s Medicaid rate that accounts for the822portion of the total assessment not included in paragraphs (a)823and (b) which begins a phase-in to a pricing model for the824operating cost component. 825 Section 11. Section 409.909, Florida Statutes, is amended 826 to read: 827 409.909 Statewide Medicaid Residency Program.— 828 (1) The Statewide Medicaid Residency Program is established 829 to improve the quality of care and access to care for Medicaid 830 recipients, expand graduate medical education on an equitable 831 basis, and increase the supply of highly trained physicians 832 statewide. The agency shall make payments to hospitals licensed 833 under part I of chapter 395 and to qualifying institutions as 834 defined in paragraph (2)(c) for graduate medical education 835 associated with the Medicaid program. This system of payments is 836 designed to generate federal matching funds under Medicaid and 837 distribute the resulting funds to participating hospitals on a 838 quarterly basis in each fiscal year for which an appropriation 839 is made. 840 (2) On or before September 15 of each year, the agency 841 shall calculate an allocation fraction to be used for 842 distributing funds to participating hospitals and to qualifying 843 institutions as defined in paragraph (2)(c). On or before the 844 final business day of each quarter of a state fiscal year, the 845 agency shall distribute to each participating hospital one 846 fourth of that hospital’s annual allocation calculated under 847 subsection (4). The allocation fraction for each participating 848 hospital is based on the hospital’s number of full-time 849 equivalent residents and the amount of its Medicaid payments. As 850 used in this section, the term: 851 (a) “Full-time equivalent,” or “FTE,” means a resident who 852 is in his or her residency period, with the initial residency 853 period defined as the minimum number of years of training 854 required before the resident may become eligible for board 855 certification by the American Osteopathic Association Bureau of 856 Osteopathic Specialists or the American Board of Medical 857 Specialties in the specialty in which he or she first began 858 training, not to exceed 5 years. The residency specialty is 859 defined as reported using the current residency type codes in 860 the Intern and Resident Information System (IRIS), required by 861 Medicare. A resident training beyond the initial residency 862 period is counted as 0.5 FTE, unless his or her chosen specialty 863 is in primary care, in which case the resident is counted as 1.0 864 FTE. For the purposes of this section, primary care specialties 865 include: 866 1. Family medicine; 867 2. General internal medicine; 868 3. General pediatrics; 869 4. Preventive medicine; 870 5. Geriatric medicine; 871 6. Osteopathic general practice; 872 7. Obstetrics and gynecology; 873 8. Emergency medicine; 874 9. General surgery; and 875 10. Psychiatry. 876 (b) “Medicaid payments” means the estimated total payments 877 for reimbursing a hospital for direct inpatient services for the 878 fiscal year in which the allocation fraction is calculated based 879 on the hospital inpatient appropriation and the parameters for 880 the inpatient diagnosis-related group base rate and the 881 parameters for the outpatient enhanced ambulatory payment group 882 rate, including applicable intergovernmental transfers, 883 specified in the General Appropriations Act, as determined by 884 the agency. Effective July 1, 2017, the term “Medicaid payments” 885 means the estimated total payments for reimbursing a hospital 886 and qualifying institutions as defined in paragraph (2)(c) for 887 direct inpatient and outpatient services for the fiscal year in 888 which the allocation fraction is calculated based on the 889 hospital inpatient appropriation and outpatient appropriation 890 and the parameters for the inpatient diagnosis-related group 891 base rate and the parameters for the outpatient enhanced 892 ambulatory payment group rate, including applicable 893 intergovernmental transfers, specified in the General 894 Appropriations Act, as determined by the agency. 895 (c) “Qualifying institution” means a federally Qualified 896 Health Center holding an Accreditation Council for Graduate 897 Medical Education institutional accreditation. 898 (d) “Resident” means a medical intern, fellow, or resident 899 enrolled in a program accredited by the Accreditation Council 900 for Graduate Medical Education, the American Association of 901 Colleges of Osteopathic Medicine, or the American Osteopathic 902 Association at the beginning of the state fiscal year during 903 which the allocation fraction is calculated, as reported by the 904 hospital to the agency. 905 (3) The agency shall use the following formula to calculate 906 a participating hospital’s and qualifying institution’s 907 allocation fraction: 908 909 HAF=[0.9 x (HFTE/TFTE)] + [0.1 x (HMP/TMP)] 910 911 Where: 912 HAF=A hospital’s and qualifying institution’s allocation 913 fraction. 914 HFTE=A hospital’s and qualifying institution’s total number 915 of FTE residents. 916 TFTE=The total FTE residents for all participating 917 hospitals and qualifying institutions. 918 HMP=A hospital’s and qualifying institution’s Medicaid 919 payments. 920 TMP=The total Medicaid payments for all participating 921 hospitals and qualifying institutions. 922 923 (4) A hospital’s and qualifying institution’s annual 924 allocation shall be calculated by multiplying the funds 925 appropriated for the Statewide Medicaid Residency Program in the 926 General Appropriations Act by that hospital’s and qualifying 927 institution’s allocation fraction. If the calculation results in 928 an annual allocation that exceeds two times the average per FTE 929 resident amount for all hospitals and qualifying institutions, 930 the hospital’s and qualifying institution’s annual allocation 931 shall be reduced to a sum equaling no more than two times the 932 average per FTE resident. The funds calculated for that hospital 933 and qualifying institution in excess of two times the average 934 per FTE resident amount for all hospitals and qualifying 935 institutions shall be redistributed to participating hospitals 936 and qualifying institutions whose annual allocation does not 937 exceed two times the average per FTE resident amount for all 938 hospitals and qualifying institutions, using the same 939 methodology and payment schedule specified in this section. 940 (5) The Graduate Medical Education Startup Bonus Program is 941 established to provide resources for the education and training 942 of physicians in specialties which are in a statewide supply 943 and-demand deficit. Hospitals and qualifying institutions as 944 defined in paragraph (2)(c) eligible for participation in 945 subsection (1) are eligible to participate in the Graduate 946 Medical Education Startup Bonus Program established under this 947 subsection. Notwithstanding subsection (4) or an FTE’s residency 948 period, and in any state fiscal year in which funds are 949 appropriated for the startup bonus program, the agency shall 950 allocate a $100,000 startup bonus for each newly created 951 resident position that is authorized by the Accreditation 952 Council for Graduate Medical Education or Osteopathic 953 Postdoctoral Training Institution in an initial or established 954 accredited training program that is in a physician specialty in 955 statewide supply-and-demand deficit. In any year in which 956 funding is not sufficient to provide $100,000 for each newly 957 created resident position, funding shall be reduced pro rata 958 across all newly created resident positions in physician 959 specialties in statewide supply-and-demand deficit. 960 (a) Hospitals and qualifying institutions as defined in 961 paragraph (2)(c) applying for a startup bonus must submit to the 962 agency by March 1 their Accreditation Council for Graduate 963 Medical Education or Osteopathic Postdoctoral Training 964 Institution approval validating the new resident positions 965 approved on or after March 2 of the prior fiscal year through 966 March 1 of the current fiscal year for the physician specialties 967 identified in a statewide supply-and-demand deficit as provided 968 in the current fiscal year’s General Appropriations Act. An 969 applicant hospital or qualifying institution as defined in 970 paragraph (2)(c) may validate a change in the number of 971 residents by comparing the number in the prior period 972 Accreditation Council for Graduate Medical Education or 973 Osteopathic Postdoctoral Training Institution approval to the 974 number in the current year. 975 (b) Any unobligated startup bonus funds on April 15 of each 976 fiscal year shall be proportionally allocated to hospitals and 977 to qualifying institutions as defined in paragraph (2)(c) 978 participating under subsection (3) for existing FTE residents in 979 the physician specialties in statewide supply-and-demand 980 deficit. This nonrecurring allocation shall be in addition to 981 the funds allocated in subsection (4). Notwithstanding 982 subsection (4), the allocation under this subsection may not 983 exceed $100,000 per FTE resident. 984 (c) For purposes of this subsection, physician specialties 985 and subspecialties, both adult and pediatric, in statewide 986 supply-and-demand deficit are those identified in the General 987 Appropriations Act. 988 (d) The agency shall distribute all funds authorized under 989 the Graduate Medical Education Startup Bonus Program on or 990 before the final business day of the fourth quarter of a state 991 fiscal year. 992 (6) Beginning in the 2015-2016 state fiscal year, the 993 agency shall reconcile each participating hospital’s total 994 number of FTE residents calculated for the state fiscal year 2 995 years before with its most recently available Medicare cost 996 reports covering the same time period. Reconciled FTE counts 997 shall be prorated according to the portion of the state fiscal 998 year covered by a Medicare cost report. Using the same 999 definitions, methodology, and payment schedule specified in this 1000 section, the reconciliation shall apply any differences in 1001 annual allocations calculated under subsection (4) to the 1002 current year’s annual allocations. 1003 (7) The agency may adopt rules to administer this section. 1004 Section 12. Paragraph (a) of subsection (2) of section 1005 409.911, Florida Statutes, is amended, and paragraph (b) of that 1006 subsection is republished, to read: 1007 409.911 Disproportionate share program.—Subject to specific 1008 allocations established within the General Appropriations Act 1009 and any limitations established pursuant to chapter 216, the 1010 agency shall distribute, pursuant to this section, moneys to 1011 hospitals providing a disproportionate share of Medicaid or 1012 charity care services by making quarterly Medicaid payments as 1013 required. Notwithstanding the provisions of s. 409.915, counties 1014 are exempt from contributing toward the cost of this special 1015 reimbursement for hospitals serving a disproportionate share of 1016 low-income patients. 1017 (2) The Agency for Health Care Administration shall use the 1018 following actual audited data to determine the Medicaid days and 1019 charity care to be used in calculating the disproportionate 1020 share payment: 1021 (a) The average of the 2009, 2010, and 20112007, 2008, and10222009audited disproportionate share data to determine each 1023 hospital’s Medicaid days and charity care for the 2017-2018 10242015-2016state fiscal year. 1025 (b) If the Agency for Health Care Administration does not 1026 have the prescribed 3 years of audited disproportionate share 1027 data as noted in paragraph (a) for a hospital, the agency shall 1028 use the average of the years of the audited disproportionate 1029 share data as noted in paragraph (a) which is available. 1030 Section 13. Section 409.9119, Florida Statutes, is amended 1031 to read: 1032 409.9119 Disproportionate share program for specialty 1033 hospitals for children.—In addition to the payments made under 1034 s. 409.911, the Agency for Health Care Administration shall 1035 develop and implement a system under which disproportionate 1036 share payments are made to those hospitals that are separately 1037 licensed by the state as specialty hospitals for children, have 1038 a federal Centers for Medicare and Medicaid Services 1039 certification number in the 3300-3399 range, have Medicaid days 1040 that exceed 55 percent of their total days and Medicare days 1041 that are less than 5 percent of their total days, and were 1042 licensed on January 1, 2013January 1, 2000, as specialty 1043 hospitals for children. This system of payments must conform to 1044 federal requirements and must distribute funds in each fiscal 1045 year for which an appropriation is made by making quarterly 1046 Medicaid payments. Notwithstanding s. 409.915, counties are 1047 exempt from contributing toward the cost of this special 1048 reimbursement for hospitals that serve a disproportionate share 1049 of low-income patients. The agency may make disproportionate 1050 share payments to specialty hospitals for children as provided 1051 for in the General Appropriations Act. 1052 (1) Unless specified in the General Appropriations Act, the 1053 agency shall use the following formula to calculate the total 1054 amount earned for hospitals that participate in the specialty 1055 hospital for children disproportionate share program: 1056 1057 TAE = DSR x BMPD x MD 1058 1059 Where: 1060 TAE = total amount earned by a specialty hospital for 1061 children. 1062 DSR = disproportionate share rate. 1063 BMPD = base Medicaid per diem. 1064 MD = Medicaid days. 1065 1066 (2) The agency shall calculate the total additional payment 1067 for hospitals that participate in the specialty hospital for 1068 children disproportionate share program as follows: 1069 1070 TAP = (TAE x TA) ÷ STAE 1071 1072 Where: 1073 TAP = total additional payment for a specialty hospital for 1074 children. 1075 TAE = total amount earned by a specialty hospital for 1076 children. 1077 TA = total appropriation for the specialty hospital for 1078 children disproportionate share program. 1079 STAE = sum of total amount earned by each hospital that 1080 participates in the specialty hospital for children 1081 disproportionate share program. 1082 1083 (3) A hospital may not receive any payments under this 1084 section until it achieves full compliance with the applicable 1085 rules of the agency. A hospital that is not in compliance for 1086 two or more consecutive quarters may not receive its share of 1087 the funds. Any forfeited funds must be distributed to the 1088 remaining participating specialty hospitals for children that 1089 are in compliance. 1090 (4) Notwithstanding any provision of this section to the 1091 contrary, for the 2017-20182016-2017state fiscal year, for 1092 hospitals achieving full compliance under subsection (3), the 1093 agency shall make disproportionate share payments to specialty 1094 hospitals for children as provided in the 2017-20182016-20171095 General Appropriations Act. This subsection expires July 1, 2018 10962017. 1097 Section 14. Subsection (36) of section 409.913, Florida 1098 Statutes, is amended to read: 1099 409.913 Oversight of the integrity of the Medicaid 1100 program.—The agency shall operate a program to oversee the 1101 activities of Florida Medicaid recipients, and providers and 1102 their representatives, to ensure that fraudulent and abusive 1103 behavior and neglect of recipients occur to the minimum extent 1104 possible, and to recover overpayments and impose sanctions as 1105 appropriate. Beginning January 1, 2003, and each year 1106 thereafter, the agency and the Medicaid Fraud Control Unit of 1107 the Department of Legal Affairs shall submit a joint report to 1108 the Legislature documenting the effectiveness of the state’s 1109 efforts to control Medicaid fraud and abuse and to recover 1110 Medicaid overpayments during the previous fiscal year. The 1111 report must describe the number of cases opened and investigated 1112 each year; the sources of the cases opened; the disposition of 1113 the cases closed each year; the amount of overpayments alleged 1114 in preliminary and final audit letters; the number and amount of 1115 fines or penalties imposed; any reductions in overpayment 1116 amounts negotiated in settlement agreements or by other means; 1117 the amount of final agency determinations of overpayments; the 1118 amount deducted from federal claiming as a result of 1119 overpayments; the amount of overpayments recovered each year; 1120 the amount of cost of investigation recovered each year; the 1121 average length of time to collect from the time the case was 1122 opened until the overpayment is paid in full; the amount 1123 determined as uncollectible and the portion of the uncollectible 1124 amount subsequently reclaimed from the Federal Government; the 1125 number of providers, by type, that are terminated from 1126 participation in the Medicaid program as a result of fraud and 1127 abuse; and all costs associated with discovering and prosecuting 1128 cases of Medicaid overpayments and making recoveries in such 1129 cases. The report must also document actions taken to prevent 1130 overpayments and the number of providers prevented from 1131 enrolling in or reenrolling in the Medicaid program as a result 1132 of documented Medicaid fraud and abuse and must include policy 1133 recommendations necessary to prevent or recover overpayments and 1134 changes necessary to prevent and detect Medicaid fraud. All 1135 policy recommendations in the report must include a detailed 1136 fiscal analysis, including, but not limited to, implementation 1137 costs, estimated savings to the Medicaid program, and the return 1138 on investment. The agency must submit the policy recommendations 1139 and fiscal analyses in the report to the appropriate estimating 1140 conference, pursuant to s. 216.137, by February 15 of each year. 1141 The agency and the Medicaid Fraud Control Unit of the Department 1142 of Legal Affairs each must include detailed unit-specific 1143 performance standards, benchmarks, and metrics in the report, 1144 including projected cost savings to the state Medicaid program 1145 during the following fiscal year. 1146 (36)At least three times a year,The agency mayshall1147 provide to a sample ofeachMedicaid recipientsrecipientor 1148 their representatives through the distribution of explanations 1149his or her representativean explanationof benefits information 1150 about services reimbursed by the Medicaid program for goods and 1151 services to such recipients, includingin the form of a letter1152that is mailed to the most recent address of the recipient on1153the record with the Department of Children and Families. The1154explanation of benefits must include the patient’s name, the1155name of the health care provider and the address of the location1156where the service was provided, a description of all services1157billed to Medicaid in terminology that should be understood by a1158reasonable person, andinformation on how to report 1159 inappropriate or incorrect billing to the agency or other law 1160 enforcement entities for review or investigation. At least once1161a year,the letter also must includeinformation on how to 1162 report criminal Medicaid fraud to,the Medicaid Fraud Control 1163 Unit’s toll-free hotline number, and information about the 1164 rewards available under s. 409.9203. The explanation of benefits 1165 may not be mailed for Medicaid independent laboratory services 1166 as described in s. 409.905(7) or for Medicaid certified match 1167 services as described in ss. 409.9071 and 1011.70. 1168 Section 15. Paragraph (e) of subsection (1) of section 1169 409.975, Florida Statutes, is amended, to read: 1170 409.975 Managed care plan accountability.—In addition to 1171 the requirements of s. 409.967, plans and providers 1172 participating in the managed medical assistance program shall 1173 comply with the requirements of this section. 1174 (1) PROVIDER NETWORKS.—Managed care plans must develop and 1175 maintain provider networks that meet the medical needs of their 1176 enrollees in accordance with standards established pursuant to 1177 s. 409.967(2)(c). Except as provided in this section, managed 1178 care plans may limit the providers in their networks based on 1179 credentials, quality indicators, and price. 1180 (e) Each managed care plan maymustoffer a network 1181 contract to each home medical equipment and supplies provider in 1182 the region which meets quality and fraud prevention and 1183 detection standards established by the plan and which agrees to 1184 accept the lowest price previously negotiated between the plan 1185 and another such provider. 1186 Section 16. Subsections (1) and (2) of section 409.979, 1187 Florida Statutes, are amended to read: 1188 409.979 Eligibility.— 1189 (1) PREREQUISITE CRITERIA FOR ELIGIBILITY.—Medicaid 1190 recipients who meet all of the following criteria are eligible 1191 to receive long-term care services and must receive long-term 1192 care services by participating in the long-term care managed 1193 care program. The recipient must be: 1194 (a) Sixty-five years of age or older, or age 18 or older 1195 and eligible for Medicaid by reason of a disability. 1196 (b) Determined by the Comprehensive Assessment Review and 1197 Evaluation for Long-Term Care Services (CARES) preadmission 1198 screening program to require: 1199 1. Nursing facility care as defined in s. 409.985(3); or 1200 2. Hospital level of care, for individuals diagnosed with 1201 cystic fibrosis. 1202 (2) ENROLLMENT OFFERS.—Subject to the availability of 1203 funds, the Department of Elderly Affairs shall make offers for 1204 enrollment to eligible individuals based on a wait-list 1205 prioritization. Before making enrollment offers, the agency and 1206 the Department of Elderly Affairs shall determine that 1207 sufficient funds exist to support additional enrollment into 1208 plans. 1209 (a) A Medicaid recipient enrolled in one of the following 1210 Medicaid home and community-based services waiver programs who 1211 meets the eligibility criteria established in subsection (1) is 1212 eligible to participate in the long-term care managed care 1213 program and must be transitioned into the long-term care managed 1214 care program by January 1, 2018: 1215 1. Traumatic Brain and Spinal Cord Injury Waiver. 1216 2. Adult Cystic Fibrosis Waiver. 1217 3. Project AIDS Care Waiver. 1218 (b) The agency shall seek federal approval to terminate the 1219 Traumatic Brain and Spinal Cord Injury Waiver, the Adult Cystic 1220 Fibrosis Waiver, and the Project AIDS Care Waiver once all 1221 eligible Medicaid recipients have transitioned into the long 1222 term care managed care program. 1223 Section 17. Effective October 1, 2018, subsection (6) of 1224 section 409.983, Florida Statutes, is amended to read: 1225 409.983 Long-term care managed care plan payment.—In 1226 addition to the payment provisions of s. 409.968, the agency 1227 shall provide payment to plans in the long-term care managed 1228 care program pursuant to this section. 1229 (6) The agency shall establish nursing-facility-specific 1230 payment rates for each licensed nursing homebased on facility1231costs adjusted for inflation and other factorsas authorized in 1232 the General Appropriations Act. Payments to long-term care 1233 managed care plans shall be reconciled, as necessary, to 1234 reimburse actual payments to nursing facilities resulting from 1235 changes in nursing home per diem rates, but may not be 1236 reconciled to actual days experienced by the long-term care 1237 managed care plans. 1238 Section 18. Subsection (27) of section 409.901, Florida 1239 Statutes, is amended to read: 1240 409.901 Definitions; ss. 409.901-409.920.—As used in ss. 1241 409.901-409.920, except as otherwise specifically provided, the 1242 term: 1243 (27) “Third party” means an individual, entity, or program, 1244 excluding Medicaid, that is, may be, could be, should be, or has 1245 been liable for all or part of the cost of medical services 1246 related to any medical assistance covered by Medicaid. A third 1247 party includes a third-party administrator;ora pharmacy 1248 benefits manager; a health insurer; a self-insured plan; a group 1249 health plan, as defined in s. 607(1) of the Employee Retirement 1250 Income Security Act of 1974; a service benefit plan; a managed 1251 care organization; liability insurance, including self 1252 insurance; no-fault insurance; workers’ compensation laws or 1253 plans; or other parties that are, by statute, contract, or 1254 agreement, legally responsible for payment of a claim for a 1255 health care item or service. 1256 Section 19. Subsection (4), paragraph (c) of subsection 1257 (6), paragraph (h) of subsection (11), subsection (16), 1258 paragraph (b) of subsection (17), and subsection (20) of section 1259 409.910, Florida Statutes, are amended to read: 1260 409.910 Responsibility for payments on behalf of Medicaid 1261 eligible persons when other parties are liable.— 1262 (4) After the agency has provided medical assistance under 1263 the Medicaid program, it shall seekrecovery ofreimbursement 1264 from third-party benefits to the limit of legal liability and 1265 for the full amount of third-party benefits, but not in excess 1266 of the amount of medical assistance paid by Medicaid, as to: 1267 (a) Claims for which the agency has a waiver pursuant to 1268 federal law; or 1269 (b) Situations in which the agency learns of the existence 1270 of a liable third party or in which third-party benefits are 1271 discovered or become available after medical assistance has been 1272 provided by Medicaid. 1273 (6) When the agency provides, pays for, or becomes liable 1274 for medical care under the Medicaid program, it has the 1275 following rights, as to which the agency may assert independent 1276 principles of law, which shall nevertheless be construed 1277 together to provide the greatest recovery from third-party 1278 benefits: 1279 (c) The agency is entitled to, and has, an automatic lien 1280 for the full amount of medical assistance provided by Medicaid 1281 to or on behalf of the recipient for medical care furnished as a 1282 result of any covered injury or illness for which a third party 1283 is or may be liable, upon the collateral, as defined in s. 1284 409.901. 1285 1. The lien attaches automatically when a recipient first 1286 receives treatment for which the agency may be obligated to 1287 provide medical assistance under the Medicaid program. The lien 1288 is perfected automatically at the time of attachment. 1289 2. The agency is authorized to file a verified claim of 1290 lien. The claim of lien shall be signed by an authorized 1291 employee of the agency, and shall be verified as to the 1292 employee’s knowledge and belief. The claim of lien may be filed 1293 and recorded with the clerk of the circuit court in the 1294 recipient’s last known county of residence or in any county 1295 deemed appropriate by the agency. The claim of lien, to the 1296 extent known by the agency, shall contain: 1297 a. The name and last known address of the person to whom 1298 medical care was furnished. 1299 b. The date of injury. 1300 c. The period for which medical assistance was provided. 1301 d. The amount of medical assistance provided or paid, or 1302 for which Medicaid is otherwise liable. 1303 e. The names and addresses of all persons claimed by the 1304 recipient to be liable for the covered injuries or illness. 1305 3. The filing of the claim of lien pursuant to this section 1306 shall be notice thereof to all persons. 1307 4. If the claim of lien is filed within 3 years1 year1308 after the later of the date when the last item of medical care 1309 relative to a specific covered injury or illness was paid, or 1310 the date of discovery by the agency of the liability of any 1311 third party, or the date of discovery of a cause of action 1312 against a third party brought by a recipient or his or her legal 1313 representative, record notice shall relate back to the time of 1314 attachment of the lien. 1315 5. If the claim of lien is filed after 3 years1 yearafter 1316 the later of the events specified in subparagraph 4., notice 1317 shall be effective as of the date of filing. 1318 6. Only one claim of lien need be filed to provide notice 1319 as set forth in this paragraph and shall provide sufficient 1320 notice as to any additional or after-paid amount of medical 1321 assistance provided by Medicaid for any specific covered injury 1322 or illness. The agency may, in its discretion, file additional, 1323 amended, or substitute claims of lien at any time after the 1324 initial filing, until the agency has been repaid the full amount 1325 of medical assistance provided by Medicaid or otherwise has 1326 released the liable parties and recipient. 1327 7. No release or satisfaction of any cause of action, suit, 1328 claim, counterclaim, demand, judgment, settlement, or settlement 1329 agreement shall be valid or effectual as against a lien created 1330 under this paragraph, unless the agency joins in the release or 1331 satisfaction or executes a release of the lien. An acceptance of 1332 a release or satisfaction of any cause of action, suit, claim, 1333 counterclaim, demand, or judgment and any settlement of any of 1334 the foregoing in the absence of a release or satisfaction of a 1335 lien created under this paragraph shall prima facie constitute 1336 an impairment of the lien, and the agency is entitled to recover 1337 damages on account of such impairment. In an action on account 1338 of impairment of a lien, the agency may recover from the person 1339 accepting the release or satisfaction or making the settlement 1340 the full amount of medical assistance provided by Medicaid. 1341 Nothing in this section shall be construed as creating a lien or 1342 other obligation on the part of an insurer which in good faith 1343 has paid a claim pursuant to its contract without knowledge or 1344 actual notice that the agency has provided medical assistance 1345 for the recipient related to a particular covered injury or 1346 illness. However, notice or knowledge that an insured is, or has 1347 been a Medicaid recipient within 1 year from the date of service 1348 for which a claim is being paid creates a duty to inquire on the 1349 part of the insurer as to any injury or illness for which the 1350 insurer intends or is otherwise required to pay benefits. 1351 8. The lack of a properly filed claim of lien shall not 1352 affect the agency’s assignment or subrogation rights provided in 1353 this subsection, nor shall it affect the existence of the lien, 1354 but only the effective date of notice as provided in 1355 subparagraph 5. 1356 9. The lien created by this paragraph is a first lien and 1357 superior to the liens and charges of any provider, and shall 1358 exist for a period of 7 years, if recorded, after the date of 1359 recording; and shall exist for a period of 7 years after the 1360 date of attachment, if not recorded. If recorded, the lien may 1361 be extended for one additional period of 7 years by rerecording 1362 the claim of lien within the 90-day period preceding the 1363 expiration of the lien. 1364 10. The clerk of the circuit court for each county in the 1365 state shall endorse on a claim of lien filed under this 1366 paragraph the date and hour of filing and shall record the claim 1367 of lien in the official records of the county as for other 1368 records received for filing. The clerk shall receive as his or 1369 her fee for filing and recording any claim of lien or release of 1370 lien under this paragraph the total sum of $2. Any fee required 1371 to be paid by the agency shall not be required to be paid in 1372 advance of filing and recording, but may be billed to the agency 1373 after filing and recording of the claim of lien or release of 1374 lien. 1375 11. After satisfaction of any lien recorded under this 1376 paragraph, the agency shall, within 60 days after satisfaction, 1377 either file with the appropriate clerk of the circuit court or 1378 mail to any appropriate party, or counsel representing such 1379 party, if represented, a satisfaction of lien in a form 1380 acceptable for filing in Florida. 1381 (11) The agency may, as a matter of right, in order to 1382 enforce its rights under this section, institute, intervene in, 1383 or join any legal or administrative proceeding in its own name 1384 in one or more of the following capacities: individually, as 1385 subrogee of the recipient, as assignee of the recipient, or as 1386 lienholder of the collateral. 1387 (h) Except as otherwise provided in this section, actions 1388 to enforce the rights of the agency under this section shall be 1389 commenced within 65years after the date a cause of action 1390 accrues, with the period running from the later of the date of 1391 discovery by the agency of a case filed by a recipient or his or 1392 her legal representative, or of discovery of any judgment, 1393 award, or settlement contemplated in this section, or of 1394 discovery of facts giving rise to a cause of action under this 1395 section. Nothing in this paragraph affects or prevents a 1396 proceeding to enforce a lien during the existence of the lien as 1397 set forth in subparagraph (6)(c)9. 1398 (16) Any transfer or encumbrance of any right, title, or 1399 interest to which the agency has a right pursuant to this 1400 section, with the intent, likelihood, or practical effect of 1401 defeating, hindering, or reducing reimbursement torecovery by1402 the agency forreimbursement ofmedical assistance provided by 1403 Medicaid, shall be deemed to be a fraudulent conveyance, and 1404 such transfer or encumbrance shall be void and of no effect 1405 against the claim of the agency, unless the transfer was for 1406 adequate consideration and the proceeds of the transfer are 1407 reimbursed in full to the agency, but not in excess of the 1408 amount of medical assistance provided by Medicaid. 1409 (17) 1410 (b) If federal law limits the agency to reimbursement from 1411 the recovered medical expense damages, a recipient, or his or 1412 her legal representative, may contest the amount designated as 1413 recovered medical expense damages payable to the agency pursuant 1414 to the formula specified in paragraph (11)(f) by filing a 1415 petition under chapter 120 within 21 days after the date of 1416 payment of funds to the agency or after the date of placing the 1417 full amount of the third-party benefits in the trust account for 1418 the benefit of the agency pursuant to paragraph (a). The 1419 petition shall be filed with the Division of Administrative 1420 Hearings. For purposes of chapter 120, the payment of funds to 1421 the agency or the placement of the full amount of the third 1422 party benefits in the trust account for the benefit of the 1423 agency constitutes final agency action and notice thereof. Final 1424 order authority for the proceedings specified in this subsection 1425 rests with the Division of Administrative Hearings. This 1426 procedure is the exclusive method for challenging the amount of 1427 third-party benefits payable to the agency. In order to 1428 successfully challenge the amount designated as recovered 1429 medical expensespayable to the agency, the recipient must 1430 prove, by clear and convincing evidence, that thea lesser1431 portion of the total recovery which should be allocated as 1432reimbursement forpast and future medical expenses is less than 1433 the amount calculated by the agency pursuant to the formula set 1434 forth in paragraph (11)(f). Alternatively, the recipient must 1435 prove by clear and convincing evidenceorthat Medicaid provided 1436 a lesser amount of medical assistance than that asserted by the 1437 agency. 1438 (20)(a) Entities providing health insurance as defined in 1439 s. 624.603, health maintenance organizations and prepaid health 1440 clinics as defined in chapter 641, and, on behalf of their 1441 clients, third-party administrators,andpharmacy benefits 1442 managers, and any other third parties, as defined in s. 1443 409.901(27), which are legally responsible for payment of a 1444 claim for a health care item or service as a condition of doing 1445 business in the state or providing coverage to residents of this 1446 state, shall provide such records and information as are 1447 necessary to accomplish the purpose of this section, unless such 1448 requirement results in an unreasonable burden. 1449 (b) An entity must respond to a request for payment with 1450 payment on the claim, a written request for additional 1451 information with which to process the claim, or a written reason 1452 for denial of the claim within 90 working days after receipt of 1453 written proof of loss or claim for payment for a health care 1454 item or service provided to a Medicaid recipient who is covered 1455 by the entity. Failure to pay or deny a claim within 140 days 1456 after receipt of the claim creates an uncontestable obligation 1457 to pay the claim. 1458(a)The director of the agency and the Director of the1459Office of Insurance Regulation of the Financial Services1460Commission shall enter into a cooperative agreement for1461requesting and obtaining information necessary to effect the1462purpose and objective of this section.14631.The agency shall request only that information necessary1464to determine whether health insurance as defined pursuant to s.1465624.603, or those health services provided pursuant to chapter1466641, could be, should be, or have been claimed and paid with1467respect to items of medical care and services furnished to any1468person eligible for services under this section.14692.All information obtained pursuant to subparagraph 1. is1470confidential and exempt from s. 119.07(1). The agency shall1471provide the information obtained pursuant to subparagraph 1. to1472the Department of Revenue for purposes of administering the1473state Title IV-D program. The agency and the Department of1474Revenue shall enter into a cooperative agreement for purposes of1475implementing this requirement.14763.The cooperative agreement or rules adopted under this1477subsection may include financial arrangements to reimburse the1478reporting entities for reasonable costs or a portion thereof1479incurred in furnishing the requested information. Neither the1480cooperative agreement nor the rules shall require the automation1481of manual processes to provide the requested information.1482(b)The agency and the Financial Services Commission1483jointly shall adopt rules for the development and administration1484of the cooperative agreement. The rules shall include the1485following:14861.A method for identifying those entities subject to1487furnishing information under the cooperative agreement.14882.A method for furnishing requested information.14893.Procedures for requesting exemption from the cooperative1490agreement based on an unreasonable burden to the reporting1491entity.1492 Section 20. Notwithstanding section 27 of chapter 2016-65, 1493 Laws of Florida, and subject to federal approval of the 1494 application to be a site for the Program of All-inclusive Care 1495 for the Elderly (PACE), the Agency for Health Care 1496 Administration shall contract with a not-for-profit 1497 organization, formed by a partnership with a not-for-profit 1498 hospital, a not-for-profit agency serving elders, and a not-for 1499 profit hospice in Leon County. The not-for-profit PACE shall 1500 serve eligible PACE enrollees in Gadsden, Jefferson, Leon, and 1501 Wakulla Counties. The Agency for Health Care Administration, in 1502 consultation with the Department of Elderly Affairs and subject 1503 to an appropriation, shall approve up to 300 initial enrollees 1504 for the additional PACE site. 1505 Section 21. Section 17 of chapter 2011-61, Laws of Florida, 1506 is amended to read: 1507 Section 17. Notwithstanding s. 430.707, Florida Statutes, 1508 and subject to federal approval of the application to be a site 1509 for the Program of All-inclusive Care for the Elderly, the 1510 Agency for Health Care Administration shall contract with one 1511 private health care organization, the sole member of which is a 1512 private, not-for-profit corporation that owns and manages health 1513 care organizations which provide comprehensive long-term care 1514 services, including nursing home, assisted living, independent 1515 housing, home care, adult day care, and care management, with a 1516 board-certified, trained geriatrician as the medical director. 1517 This organization shall provide these services to frail and 1518 elderly persons who reside in Indian River, Martin, Okeechobee, 1519 Palm Beach, and St. Lucie CountiesCounty. The organization is 1520 exempt from the requirements of chapter 641, Florida Statutes. 1521 The agency, in consultation with the Department of Elderly 1522 Affairs and subject to an appropriation, shall approve up to 150 1523 initial enrollees who reside in Palm Beach County and up to 150 1524 initial enrollees who reside in Martin County in the Program of 1525 All-inclusive Care for the Elderly established by this 1526 organization to serve elderly personswho reside in Palm Beach1527County. 1528 Section 22. Section 29 of chapter 2016-65, Laws of Florida, 1529 is amended to read: 1530 Section 29. Subject to federal approval of the application 1531 to be a site for the Program of All-inclusive Care for the 1532 Elderly (PACE), the Agency for Health Care Administration shall 1533 contract with one private, not-for-profit hospice organization 1534 located in Lake County which operates health care organizations 1535 licensed in Hospice Areas 7B and 3E and which provides 1536 comprehensive services, including hospice and palliative care, 1537 to frail elders who reside in these service areas. The 1538 organization is exempt from the requirements of chapter 641, 1539 Florida Statutes. The agency, in consultation with the 1540 Department of Elderly Affairs and subject to the appropriation 1541 of funds by the Legislature, shall approve up to 150 initial 1542 enrollees in the Program of All-inclusive Care for the Elderly 1543 established by the organization to serve frail elders who reside 1544 in Hospice Service Areas 7B and 3E. The agency, in consultation 1545 with the department and subject to an appropriation, shall 1546 approve up to 150 enrollees in the Program of All-inclusive Care 1547 for the Elderly established by this organization to serve frail 1548 elders who reside in Hospice Service Area 7C. 1549 Section 23. Subsection (3) of section 391.055, Florida 1550 Statutes, is amended to read: 1551 391.055 Service delivery systems.— 1552 (3) The Children’s Medical Services network may contract 1553 with school districts participating in the certified school 1554 match program pursuant to ss. 409.908(21)409.908(22)and 1555 1011.70 for the provision of school-based services, as provided 1556 for in s. 409.9071, for Medicaid-eligible children who are 1557 enrolled in the Children’s Medical Services network. 1558 Section 24. Subsection (7) of section 393.0661, Florida 1559 Statutes, is amended to read: 1560 393.0661 Home and community-based services delivery system; 1561 comprehensive redesign.—The Legislature finds that the home and 1562 community-based services delivery system for persons with 1563 developmental disabilities and the availability of appropriated 1564 funds are two of the critical elements in making services 1565 available. Therefore, it is the intent of the Legislature that 1566 the Agency for Persons with Disabilities shall develop and 1567 implement a comprehensive redesign of the system. 1568 (7) The agency shall collect premiums or cost sharing 1569 pursuant to s. 409.906(13)(c)409.906(13)(d). 1570 Section 25. Paragraph (a) of subsection (4) of section 1571 409.968, Florida Statutes, is amended to read: 1572 409.968 Managed care plan payments.— 1573 (4)(a) Subject to a specific appropriation and federal 1574 approval under s. 409.906(13)(d)409.906(13)(e), the agency 1575 shall establish a payment methodology to fund managed care plans 1576 for flexible services for persons with severe mental illness and 1577 substance use disorders, including, but not limited to, 1578 temporary housing assistance. A managed care plan eligible for 1579 these payments must do all of the following: 1580 1. Participate as a specialty plan for severe mental 1581 illness or substance use disorders or participate in counties 1582 designated by the General Appropriations Act; 1583 2. Include providers of behavioral health services pursuant 1584 to chapters 394 and 397 in the managed care plan’s provider 1585 network; and 1586 3. Document a capability to provide housing assistance 1587 through agreements with housing providers, relationships with 1588 local housing coalitions, and other appropriate arrangements. 1589 Section 26. Subsection (3) of section 427.0135, Florida 1590 Statutes, is amended to read: 1591 427.0135 Purchasing agencies; duties and responsibilities. 1592 Each purchasing agency, in carrying out the policies and 1593 procedures of the commission, shall: 1594 (3) Not procure transportation disadvantaged services 1595 without initially negotiating with the commission, as provided 1596 in s. 287.057(3)(e)12., or unless otherwise authorized by 1597 statute. If the purchasing agency, after consultation with the 1598 commission, determines that it cannot reach mutually acceptable 1599 contract terms with the commission, the purchasing agency may 1600 contract for the same transportation services provided in a more 1601 cost-effective manner and of comparable or higher quality and 1602 standards. The Medicaid agency shall implement this subsection 1603 in a manner consistent with s. 409.908(18)409.908(19)and as 1604 otherwise limited or directed by the General Appropriations Act. 1605 Section 27. Subsections (1) and (5) of section 1011.70, 1606 Florida Statutes, are amended to read: 1607 1011.70 Medicaid certified school funding maximization.— 1608 (1) Each school district, subject to the provisions of ss. 1609 409.9071 and 409.908(21)409.908(22)and this section, is 1610 authorized to certify funds provided for a category of required 1611 Medicaid services termed “school-based services,” which are 1612 reimbursable under the federal Medicaid program. Such services 1613 shall include, but not be limited to, physical, occupational, 1614 and speech therapy services, behavioral health services, mental 1615 health services, transportation services, Early Periodic 1616 Screening, Diagnosis, and Treatment (EPSDT) administrative 1617 outreach for the purpose of determining eligibility for 1618 exceptional student education, and any other such services, for 1619 the purpose of receiving federal Medicaid financial 1620 participation. Certified school funding shall not be available 1621 for the following services: 1622 (a) Family planning. 1623 (b) Immunizations. 1624 (c) Prenatal care. 1625 (5) Lab schools, as authorized under s. 1002.32, shall be 1626 authorized to participate in the Medicaid certified school match 1627 program on the same basis as school districts subject to the 1628 provisions of subsections (1)-(4) and ss. 409.9071 and 1629 409.908(21)409.908(22). 1630 Section 28. For the 2017-2018 fiscal year, $578,918,460 in 1631 nonrecurring funds from the Grants and Donations Trust Fund and 1632 $924,467,313 in nonrecurring funds from the Medical Care Trust 1633 Fund are appropriated to the Agency for Health Care 1634 Administration for the purpose of implementing a Low-Income Pool 1635 Program. These funds shall be held in reserve. Subject to the 1636 federal approval of the final terms and conditions of the Low 1637 Income Pool, the Agency for Health Care Administration shall 1638 submit a budget amendment requesting release of the funds held 1639 in reserve pursuant to chapter 216, Florida Statutes. If the 1640 chair and vice chair of the Legislative Budget Commission or the 1641 President of the Senate and the Speaker of the House of 1642 Representatives object in writing to a proposed amendment within 1643 14 days after notification, the Governor shall void the action. 1644 In addition to the proposed amendment, the agency must submit: 1645 the Reimbursement and Funding Methodology Document, as specified 1646 in the terms and conditions, which documents permissible Low 1647 Income Pool expenditures; a proposed distribution model by 1648 entity; and a proposed listing of entities contributing 1649 Intergovernmental Transfers to support the state match required. 1650 Low-Income Pool payments to providers under this section are 1651 contingent upon the nonfederal share being provided through 1652 intergovernmental transfers in the Grants and Donations Trust 1653 Fund. In the event the funds are not available in the Grants and 1654 Donations Trust Fund, the State of Florida is not obligated to 1655 make payments under this section. This section expires July 1, 1656 2018. 1657 Section 29. For the 2017-2018 fiscal year, $94,414,800 in 1658 nonrecurring funds from the Grants and Donations Trust Fund and 1659 $151,585,200 in nonrecurring funds from the Medical Care Trust 1660 Funds are appropriated to the Agency for Health Care 1661 Administration to continue medical school faculty physician 1662 supplemental payments. These funds shall be held in reserve. 1663 These funds shall be used to continue supplemental payments for 1664 services provided by doctors of medicine and osteopathy, as well 1665 as other licensed health care practitioners acting under the 1666 supervision of those doctors, who are employed by or under 1667 contract with a medical school in Florida. These funds may also 1668 be used for pass-through, sub-capitation, differential fee, or 1669 directed lump sum payments for doctors of medicine and 1670 osteopathy, as well as other licensed health care practitioners 1671 acting under the supervision of those doctors, who are employed 1672 by or under contract with a medical school in Florida. Subject 1673 to federal approval to continue the supplemental and/or pass 1674 through, sub-capitation, differential fee, or directed lump sum 1675 payments, the Agency for Health Care Administration may submit a 1676 budget amendment requesting release of the funds held in reserve 1677 pursuant to the provisions of chapter 216, Florida Statutes. If 1678 the chair and vice chair of the Legislative Budget Commission or 1679 the President of the Senate and the Speaker of the House of 1680 Representatives object in writing to a proposed amendment within 1681 14 days following notification, the Governor shall void the 1682 action. The amendment shall include the federal approvals, a 1683 proposed distribution model by entity, and a proposed listing of 1684 entities contributing Intergovernmental Transfers to support the 1685 state match required. Payments to providers under this section 1686 are contingent upon the nonfederal share being provided through 1687 intergovernmental transfers in the Grants and Donations Trust 1688 Fund. In the event the funds are not available in the Grants and 1689 Donations Trust Fund, the State of Florida is not obligated to 1690 make payments under this section. This section expires July 1, 1691 2018. 1692 Section 30. Except as otherwise expressly provided in this 1693 act, this act shall take effect July 1, 2017.