Bill Text: FL S2514 | 2017 | Regular Session | Prefiled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Prefiled.html
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-Prefiled.html
Florida Senate - 2017 (PROPOSED BILL) SPB 2514 FOR CONSIDERATION By the Committee on Appropriations 576-02557C-17 20172514pb 1 A bill to be entitled 2 An act relating to health care; amending s. 210.20, 3 F.S.; providing that a specified percentage of the 4 cigarette tax, up to a specified amount, be paid 5 annually to the Florida Consortium of National Cancer 6 Institute Centers Program, rather than the Sanford 7 Burnham Medical Research Institute; requiring that the 8 funds be used to advance cures for cancers afflicting 9 pediatric populations through basic or applied 10 research; amending s. 381.922, F.S.; revising the 11 goals of the William G. “Bill” Bankhead, Jr., and 12 David Coley Cancer Research Program to include 13 identifying ways to increase pediatric enrollment in 14 cancer clinical trials; establishing the Live Like 15 Bella Initiative to advance progress toward curing 16 pediatric cancer, subject to an appropriation; 17 amending s. 394.9082, F.S.; creating the Substance 18 Abuse and Mental Health (SAMH) Safety Net Network; 19 providing legislative intent; requiring the Department 20 of Children and Families and the Agency for Health 21 Care Administration to determine the scope of services 22 to be offered through providers contracted with the 23 SAMH Safety Net Network; authorizing the SAMH Safety 24 Net Network to provide Medicaid reimbursable services 25 beyond the limits of the state Medicaid plan under 26 certain circumstances; providing that general revenue 27 matching funds for the services shall be derived from 28 the existing unmatched general revenue funds within 29 the substance abuse and mental health program and 30 documented through general revenue expenditure 31 submissions by the department; requiring the agency, 32 in consultation with the department, to seek federal 33 authorization for administrative claiming pursuant to 34 a specified federal program to fund certain 35 interventions, case managers, and facility services; 36 requiring the department, in collaboration with the 37 agency, to document local funding of behavioral health 38 services; requiring the agency to seek certain federal 39 matching funds; amending s. 395.602, F.S.; revising 40 the definition of the term “rural hospital” to include 41 a hospital classified as a sole community hospital, 42 regardless of the number of licensed beds; amending s. 43 409.904, F.S.; authorizing the agency to make payments 44 for medical assistance and related services on behalf 45 of a person diagnosed with acquired immune deficiency 46 syndrome who meets certain criteria, subject to the 47 availability of moneys and specified limitations; 48 amending s. 409.908, F.S.; revising requirements 49 related to the long-term care reimbursement plan and 50 cost reporting system; requiring the calculation of 51 separate prices for each patient care subcomponent 52 based on specified cost reports; providing that 53 certain ceilings and targets apply only to providers 54 being reimbursed on a cost-based system; expanding the 55 direct care subcomponent to include allowable therapy 56 and dietary costs; specifying that allowable ancillary 57 costs are included in the indirect care cost 58 subcomponent; requiring the agency to establish, by a 59 specified date, a technical advisory council to assist 60 in ongoing development and refining of quality 61 measures used in the nursing home prospective payment 62 system; providing for membership; requiring that 63 nursing home prospective payment rates be rebased at a 64 specified interval; authorizing the payment of a 65 direct care supplemental payment to certain providers; 66 specifying the amount providers will be reimbursed for 67 a specified period of time, which may be a cost-based 68 rate or a prospective payment rate; providing for 69 expiration of this reimbursement mechanism on a 70 specified date; requiring the agency to reimburse 71 providers on a cost-based rate or a rebased 72 prospective payment rate, beginning on a specified 73 date; requiring that Medicaid pay deductibles and 74 coinsurance for certain X-ray services provided in an 75 assisted living facility or in the patient’s home; 76 amending s. 409.909, F.S.; providing that the agency 77 shall make payments and distribute funds to qualifying 78 institutions in addition to hospitals under the 79 Statewide Medicaid Residency Program; amending s. 80 409.9082; revising the uses of quality assessment and 81 federal matching funds to include the partial funding 82 of the quality incentive payment program for nursing 83 facilities that exceed quality benchmarks; amending s. 84 409.911, F.S.; updating obsolete language; amending s. 85 409.9119, F.S.; revising criteria for the 86 participation of hospitals in the disproportionate 87 share program for specialty hospitals for children; 88 amending s. 409.913, F.S.; removing a requirement that 89 the agency provide each Medicaid recipient with an 90 explanation of benefits; authorizing the agency to 91 provide an explanation of benefits to a sample of 92 Medicaid recipients or their representatives; amending 93 s. 409.975, F.S.; authorizing, rather than requiring, 94 a managed care plan to offer a network contract to 95 certain medical equipment and supplies providers in 96 the region; requiring the agency to contract with the 97 SAMH Safety Net Network; specifying that the contract 98 must require managing entities to provide specified 99 services to certain individuals; requiring the agency 100 to conduct a comprehensive readiness assessment before 101 contracting with the SAMH Safety Net Network; 102 requiring the agency and the department to develop 103 performance measures for the SAMH Safety Net Network; 104 requiring the agency and the department to develop 105 performance measures to evaluate the SAMH Safety Net 106 Network and its services; requiring the agency, in 107 consultation with the department and managing 108 entities, to determine the rates for services added to 109 the state Medicaid plan; amending s. 409.979, F.S.; 110 expanding eligibility for long-term care services to 111 include hospital level of care for certain individuals 112 diagnosed with cystic fibrosis; revising eligibility 113 for certain Medicaid recipients in the long-term care 114 managed care program; requiring the agency to contract 115 with an additional, not-for-profit organization that 116 meets certain conditions and offers specified services 117 to frail elders who reside in Miami-Dade County, 118 subject to federal approval; exempting the 119 organization from ch. 641, F.S., relating to health 120 care service programs; requiring the agency, in 121 consultation with the Department of Elderly Affairs, 122 to approve a certain number of initial enrollees in 123 the Program of All-inclusive Care for the Elderly 124 (PACE); requiring the agency to contract with a 125 specified not-for-profit organization, a not-for 126 profit agency serving elders, and a not-for-profit 127 hospice in Leon County to be a site for PACE, subject 128 to federal approval; authorizing PACE to serve 129 eligible enrollees in Gadsden, Jefferson, Leon, and 130 Wakulla Counties; requiring the agency, in 131 consultation with the department, to approve a certain 132 number of initial enrollees in PACE at the new site, 133 subject to an appropriation; amending s. 17 of chapter 134 2011-61, Laws of Florida; requiring the agency, in 135 consultation with the department, to approve a certain 136 number of initial enrollees in PACE to serve frail 137 elders who reside in certain counties; amending s. 9 138 of chapter 2016-65, Laws of Florida; revising an 139 effective date; revising the date that rates for 140 hospital outpatient services must take effect; 141 amending s. 29 of chapter 2016-65, Laws of Florida; 142 requiring the agency, in consultation with the 143 department, to approve a certain number of enrollees 144 in the PACE established to serve frail elders who 145 reside in Hospice Service Area 7; requiring the agency 146 to contract with a not-for-profit organization that 147 meets certain criteria to offer specified services to 148 frail elders who reside in Alachua County, subject to 149 federal approval; exempting the organization from ch. 150 641, F.S., relating to health care service programs; 151 requiring the agency, in consultation with the 152 department, to approve a certain number of initial 153 enrollees in PACE at the new site, subject to certain 154 conditions; providing effective dates. 155 156 Be It Enacted by the Legislature of the State of Florida: 157 158 Section 1. Paragraph (c) of subsection (2) of section 159 210.20, Florida Statutes, is amended to read: 160 210.20 Employees and assistants; distribution of funds.— 161 (2) As collections are received by the division from such 162 cigarette taxes, it shall pay the same into a trust fund in the 163 State Treasury designated “Cigarette Tax Collection Trust Fund” 164 which shall be paid and distributed as follows: 165 (c) Beginning July 1, 20172013, and continuing through 166 June 30, 2033, the division shall from month to month certify to 167 the Chief Financial Officer the amount derived from the 168 cigarette tax imposed by s. 210.02, less the service charges 169 provided for in s. 215.20 and less 0.9 percent of the amount 170 derived from the cigarette tax imposed by s. 210.02, which shall 171 be deposited into the Alcoholic Beverage and Tobacco Trust Fund, 172 specifying an amount equal to 1 percent of the net collections, 173 not to exceed $3 million annually, and that amount shall be 174 deposited into the Biomedical Research Trust Fund in the 175 Department of Health. These funds are appropriated annuallyin176an amount not to exceed $3 millionfrom the Biomedical Research 177 Trust Fund and distributed pursuant to s. 381.915 for the 178 advancement of cures for cancers afflicting pediatric 179 populations through basic or applied research, including, but 180 not limited to, clinical trials and nontoxic drug discovery 181Department of Health and the Sanford-Burnham Medical Research182Institute to work in conjunction for the purpose of establishing183activities and grant opportunities in relation to biomedical184research. 185 Section 2. Subsection (2) of section 381.922, Florida 186 Statutes, is amended to read: 187 381.922 William G. “Bill” Bankhead, Jr., and David Coley 188 Cancer Research Program.— 189 (2) The program shall provide grants for cancer research to 190 further the search for cures for cancer. 191 (a) Emphasis shall be given to the following goals, as 192 those goals support the advancement of such cures: 193 1. Efforts to significantly expand cancer research capacity 194 in the state by: 195 a. Identifying ways to attract new research talent and 196 attendant national grant-producing researchers to cancer 197 research facilities in this state; 198 b. Implementing a peer-reviewed, competitive process to 199 identify and fund the best proposals to expand cancer research 200 institutes in this state; 201 c. Funding through available resources for those proposals 202 that demonstrate the greatest opportunity to attract federal 203 research grants and private financial support; 204 d. Encouraging the employment of bioinformatics in order to 205 create a cancer informatics infrastructure that enhances 206 information and resource exchange and integration through 207 researchers working in diverse disciplines, to facilitate the 208 full spectrum of cancer investigations; 209 e. Facilitating the technical coordination, business 210 development, and support of intellectual property as it relates 211 to the advancement of cancer research; and 212 f. Aiding in other multidisciplinary research-support 213 activities as they inure to the advancement of cancer research. 214 2. Efforts to improve both research and treatment through 215 greater participation in clinical trials networks by: 216 a. Identifying ways to increase pediatric and adult 217 enrollment in cancer clinical trials; 218 b. Supporting public and private professional education 219 programs designed to increase the awareness and knowledge about 220 cancer clinical trials; 221 c. Providing tools to cancer patients and community-based 222 oncologists to aid in the identification of cancer clinical 223 trials available in the state; and 224 d. Creating opportunities for the state’s academic cancer 225 centers to collaborate with community-based oncologists in 226 cancer clinical trials networks. 227 3. Efforts to reduce the impact of cancer on disparate 228 groups by: 229 a. Identifying those cancers that disproportionately impact 230 certain demographic groups; and 231 b. Building collaborations designed to reduce health 232 disparities as they relate to cancer. 233 (b) Preference may be given to grant proposals that foster 234 collaborations among institutions, researchers, and community 235 practitioners, as such proposals support the advancement of 236 cures through basic or applied research, including clinical 237 trials involving cancer patients and related networks. 238 (c) There is established within the program the Live Like 239 Bella Initiative. The purpose of the initiative is to advance 240 progress toward curing pediatric cancer by awarding grants 241 through the peer-reviewed, competitive process established under 242 subsection (3). This paragraph is subject to the annual 243 appropriation of funds by the Legislature. 244 Section 3. Subsection (11) is added to section 394.9082, 245 Florida Statutes, to read: 246 394.9082 Behavioral health managing entities.— 247 (11) SUBSTANCE ABUSE AND MENTAL HEALTH (SAMH) SAFETY NET 248 NETWORK.— 249 (a) It is the intent of the Legislature to create the 250 Substance Abuse and Mental Health (SAMH) Safety Net Network to 251 support and enhance the community mental health and substance 252 abuse services currently provided by managing entities. The SAMH 253 Safety Net Network as used in this section means the managing 254 entities and their contracted network of providers. Contracted 255 providers are considered vendors and not subrecipients, as 256 defined in s. 215.97. Managing entities and their contracted 257 providers are not public employees for purposes of chapter 112. 258 (b) The department and the agency shall establish the SAMH 259 Safety Net Network by adding specific behavioral health services 260 currently provided by managing entities to the state Medicaid 261 plan and adjusting the amount of units of services for specific 262 Medicaid services to better serve Medicaid-eligible individuals 263 with severe and persistent mental health or substance use 264 disorders, and their families, who are currently served by 265 managing entities. It is the intent of the Legislature to have 266 the department submit documentation of general revenue 267 expenditures to the agency for the state match for the services 268 and for the agency to pay managing entities the federal Medicaid 269 portion for services provided. 270 1. Behavioral health services currently funded by managing 271 entities through the substance abuse and mental health program 272 shall be added by the agency to the state Medicaid plan through 273 a state plan amendment. These services shall be provided 274 exclusively through the providers contracted with the SAMH 275 Safety Net Network. The department and the agency shall 276 determine which services are essential for individuals served by 277 managing entities through coordinated systems of care and which 278 services will most efficiently use state and federal resources. 279 2. The state Medicaid plan currently limits the amount of 280 behavioral health services that may be provided to a covered 281 individual. However, the SAMH Safety Net Network is authorized 282 to provide Medicaid reimbursable services beyond these limits 283 when providing services, including, but not limited to, 284 assessment, group therapy, individual therapy, psychosocial 285 rehabilitation, day treatment, medication management, 286 therapeutic onsite services, substance abuse inpatient or 287 residential detoxification, inpatient hospital services, and 288 crisis stabilization unit or as appropriate in lieu of services. 289 (c) The required general revenue matching funds for the 290 services shall be derived from the existing unmatched general 291 revenue funds within the substance abuse and mental health 292 program and documented through general revenue expenditure 293 submissions by the department. The Medicaid reimbursement for 294 services provided by the SAMH Safety Net Network shall be 295 limited to the availability of general revenue matching funds 296 within the substance abuse and mental health program for such 297 purpose. 298 (d) Except as otherwise provided in this part, the state 299 share of funds sufficient to implement the provisions of this 300 act shall be redirected from existing general revenue funds in 301 the department which are used for funding mental health and 302 substance abuse services, excluding funding for residential 303 services. The need for these state-only funds must be offset by 304 the infusion of federal funds made available to the SAMH Safety 305 Net Network under the provisions of this act. 306 Section 4. The Agency for Health Care Administration, in 307 consultation with the Department of Children and Families, shall 308 seek federal authorization for administrative claiming pursuant 309 to the Medicaid Administrative Claiming program to fund: 310 (1) The department’s team-based interventions, including, 311 but not limited to, community action treatment teams and family 312 intervention treatment teams, which focus on the entire family 313 to prevent out-of-home placements in the child welfare, 314 behavioral health, and criminal justice systems. 315 (2) Case managers employed by the department’s child 316 welfare community-based care lead agency who are responsible for 317 locating, coordinating, and monitoring necessary and appropriate 318 services extending beyond direct services for Medicaid-eligible 319 children, including, but not limited to, outreach, referral, 320 eligibility determination, and case management. 321 (3) Central receiving facility services for individuals 322 with mental health or substance use disorders. 323 Section 5. The Department of Children and Families, in 324 collaboration with the Agency for Health Care Administration, 325 shall document the extent to which behavioral health services 326 are funded with contributions from units of local government. 327 The agency shall seek federal authority to have these funds 328 qualify for federal matching funds as certified public 329 expenditures. 330 Section 6. Paragraph (e) of subsection (2) of section 331 395.602, Florida Statutes, is amended to read: 332 395.602 Rural hospitals.— 333 (2) DEFINITIONS.—As used in this part, the term: 334 (e) “Rural hospital” means an acute care hospital licensed 335 under this chapter, having 100 or fewer licensed beds and an 336 emergency room, which is: 337 1. The sole provider within a county with a population 338 density of up to 100 persons per square mile; 339 2. An acute care hospital, in a county with a population 340 density of up to 100 persons per square mile, which is at least 341 30 minutes of travel time, on normally traveled roads under 342 normal traffic conditions, from any other acute care hospital 343 within the same county; 344 3. A hospital supported by a tax district or subdistrict 345 whose boundaries encompass a population of up to 100 persons per 346 square mile; 347 4. A hospital classified as a sole community hospital under 348 42 C.F.R. s. 412.92, regardless of the number ofwhich has up to349175licensed beds; 350 5. A hospital with a service area that has a population of 351 up to 100 persons per square mile. As used in this subparagraph, 352 the term “service area” means the fewest number of zip codes 353 that account for 75 percent of the hospital’s discharges for the 354 most recent 5-year period, based on information available from 355 the hospital inpatient discharge database in the Florida Center 356 for Health Information and Transparency at the agency; or 357 6. A hospital designated as a critical access hospital, as 358 defined in s. 408.07. 359 360 Population densities used in this paragraph must be based upon 361 the most recently completed United States census. A hospital 362 that received funds under s. 409.9116 for a quarter beginning no 363 later than July 1, 2002, is deemed to have been and shall 364 continue to be a rural hospital from that date through June 30, 365 2021, if the hospital continues to have up to 100 licensed beds 366 and an emergency room. An acute care hospital that has not 367 previously been designated as a rural hospital and that meets 368 the criteria of this paragraph shall be granted such designation 369 upon application, including supporting documentation, to the 370 agency. A hospital that was licensed as a rural hospital during 371 the 2010-2011 or 2011-2012 fiscal year shall continue to be a 372 rural hospital from the date of designation through June 30, 373 2021, if the hospital continues to have up to 100 licensed beds 374 and an emergency room. 375 Section 7. Subsection (11) is added to section 409.904, 376 Florida Statutes, to read: 377 409.904 Optional payments for eligible persons.—The agency 378 may make payments for medical assistance and related services on 379 behalf of the following persons who are determined to be 380 eligible subject to the income, assets, and categorical 381 eligibility tests set forth in federal and state law. Payment on 382 behalf of these Medicaid eligible persons is subject to the 383 availability of moneys and any limitations established by the 384 General Appropriations Act or chapter 216. 385 (11) Subject to federal waiver approval, a person diagnosed 386 with acquired immune deficiency syndrome (AIDS) who has an AIDS 387 related opportunistic infection and is at risk of 388 hospitalization as determined by the agency and whose income is 389 at or below 300 percent of the Federal Benefit Rate. 390 Section 8. Subsections (2) and (14) of section 409.908, 391 Florida Statutes, are amended to read: 392 409.908 Reimbursement of Medicaid providers.—Subject to 393 specific appropriations, the agency shall reimburse Medicaid 394 providers, in accordance with state and federal law, according 395 to methodologies set forth in the rules of the agency and in 396 policy manuals and handbooks incorporated by reference therein. 397 These methodologies may include fee schedules, reimbursement 398 methods based on cost reporting, negotiated fees, competitive 399 bidding pursuant to s. 287.057, and other mechanisms the agency 400 considers efficient and effective for purchasing services or 401 goods on behalf of recipients. If a provider is reimbursed based 402 on cost reporting and submits a cost report late and that cost 403 report would have been used to set a lower reimbursement rate 404 for a rate semester, then the provider’s rate for that semester 405 shall be retroactively calculated using the new cost report, and 406 full payment at the recalculated rate shall be effected 407 retroactively. Medicare-granted extensions for filing cost 408 reports, if applicable, shall also apply to Medicaid cost 409 reports. Payment for Medicaid compensable services made on 410 behalf of Medicaid eligible persons is subject to the 411 availability of moneys and any limitations or directions 412 provided for in the General Appropriations Act or chapter 216. 413 Further, nothing in this section shall be construed to prevent 414 or limit the agency from adjusting fees, reimbursement rates, 415 lengths of stay, number of visits, or number of services, or 416 making any other adjustments necessary to comply with the 417 availability of moneys and any limitations or directions 418 provided for in the General Appropriations Act, provided the 419 adjustment is consistent with legislative intent. 420 (2)(a)1. Reimbursement to nursing homes licensed under part 421 II of chapter 400 and state-owned-and-operated intermediate care 422 facilities for the developmentally disabled licensed under part 423 VIII of chapter 400 must be made prospectively. 424 2. Unless otherwise limited or directed in the General 425 Appropriations Act, reimbursement to hospitals licensed under 426 part I of chapter 395 for the provision of swing-bed nursing 427 home services must be made on the basis of the average statewide 428 nursing home payment, and reimbursement to a hospital licensed 429 under part I of chapter 395 for the provision of skilled nursing 430 services must be made on the basis of the average nursing home 431 payment for those services in the county in which the hospital 432 is located. When a hospital is located in a county that does not 433 have any community nursing homes, reimbursement shall be 434 determined by averaging the nursing home payments in counties 435 that surround the county in which the hospital is located. 436 Reimbursement to hospitals, including Medicaid payment of 437 Medicare copayments, for skilled nursing services shall be 438 limited to 30 days, unless a prior authorization has been 439 obtained from the agency. Medicaid reimbursement may be extended 440 by the agency beyond 30 days, and approval must be based upon 441 verification by the patient’s physician that the patient 442 requires short-term rehabilitative and recuperative services 443 only, in which case an extension of no more than 15 days may be 444 approved. Reimbursement to a hospital licensed under part I of 445 chapter 395 for the temporary provision of skilled nursing 446 services to nursing home residents who have been displaced as 447 the result of a natural disaster or other emergency may not 448 exceed the average county nursing home payment for those 449 services in the county in which the hospital is located and is 450 limited to the period of time which the agency considers 451 necessary for continued placement of the nursing home residents 452 in the hospital. 453 (b) Subject to any limitations or directions in the General 454 Appropriations Act, the agency shall establish and implement a 455 state Title XIX Long-Term Care Reimbursement Plan for nursing 456 home care in order to provide care and services in conformance 457 with the applicable state and federal laws, rules, regulations, 458 and quality and safety standards and to ensure that individuals 459 eligible for medical assistance have reasonable geographic 460 access to such care. 461 1. The agency shall amend the long-term care reimbursement 462 plan and cost reporting system to create direct care and 463 indirect care subcomponents of the patient care component of the 464 per diem rate. These two subcomponents together shall equal the 465 patient care component of the per diem rate. Separate prices 466cost-based ceilingsshall be calculated for each patient care 467 subcomponent, initially based on the September 2016 rate setting 468 cost reports and subsequently based on the most recently audited 469 cost report used during a rebasing year. The direct care 470 subcomponent of the per diem rate for any providers still being 471 reimbursed on a cost basis shall be limited by the cost-based 472 class ceiling, and the indirect care subcomponent may be limited 473 by the lower of the cost-based class ceiling, the target rate 474 class ceiling, or the individual provider target. The ceilings 475 and targets apply only to providers being reimbursed on a cost 476 based system. 477 2. The direct care subcomponent shall include salaries and 478 benefits of direct care staff providing nursing services 479 including registered nurses, licensed practical nurses, and 480 certified nursing assistants who deliver care directly to 481 residents in the nursing home facility, allowable therapy costs, 482 and dietary costs. This excludes nursing administration, staff 483 development, the staffing coordinator, and the administrative 484 portion of the minimum data set and care plan coordinators. The 485 direct care subcomponent also includes medically necessary 486 dental care, vision care, hearing care, and podiatric care. 487 3. All other patient care costs shall be included in the 488 indirect care cost subcomponent of the patient care per diem 489 rate, including complex medical equipment, medical supplies, and 490 other allowable ancillary costs. Costs may not be allocated 491 directly or indirectly to the direct care subcomponent from a 492 home office or management company. 493 4. On July 1 of each year, the agency shall report to the 494 Legislature direct and indirect care costs, including average 495 direct and indirect care costs per resident per facility and 496 direct care and indirect care salaries and benefits per category 497 of staff member per facility. 498 5. Before December 31, 2017, the agency must establish a 499 technical advisory council to assist in ongoing development and 500 refining of the quality measures used in the nursing home 501 prospective payment system. The advisory council must include, 502 but need not be limited to, representatives of nursing home 503 providers and other interested stakeholders.In order to offset504the cost of general and professional liability insurance, the505agency shall amend the plan to allow for interim rate506adjustments to reflect increases in the cost of general or507professional liability insurance for nursing homes. This508provision shall be implemented to the extent existing509appropriations are available.510 6. Every fourth year, the agency shall rebase nursing home 511 prospective payment rates to reflect changes in cost based on 512 the most recently audited cost report for each participating 513 provider. 514 7. A direct care supplemental payment may be made to 515 providers whose direct care hours per patient day are above the 516 80th percentile and who provide Medicaid services to a larger 517 percentage of Medicaid patients than the state average. 518 8. For the period beginning on October 1, 2017, and ending 519 on September 30, 2020, the agency shall reimburse providers the 520 greater of their September 2016 cost-based rate or their 521 prospective payment rate. Effective October 1, 2020, the agency 522 shall reimburse providers the greater of 95 percent of their 523 cost-based rate or their rebased prospective payment rate, using 524 the most recently audited cost report for each facility. This 525 subsection shall expire September 30, 2022. 526 9. Pediatric, Florida Department of Veterans Affairs, and 527 government-owned facilities are exempt from the pricing model 528 established in this subsection and shall remain on a cost-based 529 prospective payment system. Effective October 1, 2018, the 530 agency shall set rates for all facilities remaining on a cost 531 based prospective payment system using each facility’s most 532 recently audited cost report, eliminating retroactive 533 settlements. 534 535 It is the intent of the Legislature that the reimbursement plan 536 achieve the goal of providing access to health care for nursing 537 home residents who require large amounts of care while 538 encouraging diversion services as an alternative to nursing home 539 care for residents who can be served within the community. The 540 agency shall base the establishment of any maximum rate of 541 payment, whether overall or component, on the available moneys 542 as provided for in the General Appropriations Act. The agency 543 may base the maximum rate of payment on the results of 544 scientifically valid analysis and conclusions derived from 545 objective statistical data pertinent to the particular maximum 546 rate of payment. 547 (14) Medicare premiums for persons eligible for both 548 Medicare and Medicaid coverage shall be paid at the rates 549 established by Title XVIII of the Social Security Act. For 550 Medicare services rendered to Medicaid-eligible persons, 551 Medicaid shall pay Medicare deductibles and coinsurance as 552 follows: 553 (a) Medicaid’s financial obligation for deductibles and 554 coinsurance payments shall be based on Medicare allowable fees, 555 not on a provider’s billed charges. 556 (b) Medicaid will pay no portion of Medicare deductibles 557 and coinsurance when payment that Medicare has made for the 558 service equals or exceeds what Medicaid would have paid if it 559 had been the sole payor. The combined payment of Medicare and 560 Medicaid shall not exceed the amount Medicaid would have paid 561 had it been the sole payor. The Legislature finds that there has 562 been confusion regarding the reimbursement for services rendered 563 to dually eligible Medicare beneficiaries. Accordingly, the 564 Legislature clarifies that it has always been the intent of the 565 Legislature before and after 1991 that, in reimbursing in 566 accordance with fees established by Title XVIII for premiums, 567 deductibles, and coinsurance for Medicare services rendered by 568 physicians to Medicaid eligible persons, physicians be 569 reimbursed at the lesser of the amount billed by the physician 570 or the Medicaid maximum allowable fee established by the Agency 571 for Health Care Administration, as is permitted by federal law. 572 It has never been the intent of the Legislature with regard to 573 such services rendered by physicians that Medicaid be required 574 to provide any payment for deductibles, coinsurance, or 575 copayments for Medicare cost sharing, or any expenses incurred 576 relating thereto, in excess of the payment amount provided for 577 under the State Medicaid plan for such service. This payment 578 methodology is applicable even in those situations in which the 579 payment for Medicare cost sharing for a qualified Medicare 580 beneficiary with respect to an item or service is reduced or 581 eliminated. This expression of the Legislature is in 582 clarification of existing law and shall apply to payment for, 583 and with respect to provider agreements with respect to, items 584 or services furnished on or after the effective date of this 585 act. This paragraph applies to payment by Medicaid for items and 586 services furnished before the effective date of this act if such 587 payment is the subject of a lawsuit that is based on the 588 provisions of this section, and that is pending as of, or is 589 initiated after, the effective date of this act. 590 (c) Notwithstanding paragraphs (a) and (b): 591 1. Medicaid payments for Nursing Home Medicare part A 592 coinsurance are limited to the Medicaid nursing home per diem 593 rate less any amounts paid by Medicare, but only up to the 594 amount of Medicare coinsurance. The Medicaid per diem rate shall 595 be the rate in effect for the dates of service of the crossover 596 claims and may not be subsequently adjusted due to subsequent 597 per diem rate adjustments. 598 2. Medicaid shall pay all deductibles and coinsurance for 599 Medicare-eligible recipients receiving freestanding end stage 600 renal dialysis center services. 601 3. Medicaid payments for general and specialty hospital 602 inpatient services are limited to the Medicare deductible and 603 coinsurance per spell of illness. Medicaid payments for hospital 604 Medicare Part A coinsurance shall be limited to the Medicaid 605 hospital per diem rate less any amounts paid by Medicare, but 606 only up to the amount of Medicare coinsurance. Medicaid payments 607 for coinsurance shall be limited to the Medicaid per diem rate 608 in effect for the dates of service of the crossover claims and 609 may not be subsequently adjusted due to subsequent per diem 610 adjustments. 611 4. Medicaid shall pay all deductibles and coinsurance for 612 Medicare emergency transportation services provided by 613 ambulances licensed pursuant to chapter 401. 614 5. Medicaid shall pay all deductibles and coinsurance for 615 portable X-ray Medicare Part B services provided in a nursing 616 home, in an assisted living facility, or in the patient’s home. 617 Section 9. Subsection (4) of section 409.9082, Florida 618 Statutes, is amended to read: 619 409.9082 Quality assessment on nursing home facility 620 providers; exemptions; purpose; federal approval required; 621 remedies.— 622 (4) The purpose of the nursing home facility quality 623 assessment is to ensure continued quality of care. Collected 624 assessment funds shall be used to obtain federal financial 625 participation through the Medicaid program to make Medicaid 626 payments for nursing home facility services up to the amount of 627 nursing home facility Medicaid rates as calculated in accordance 628 with the approved state Medicaid plan in effect on December 31, 629 2007. The quality assessment and federal matching funds shall be 630 used exclusively for the following purposes and in the following 631 order of priority: 632 (a) To reimburse the Medicaid share of the quality 633 assessment as a pass-through, Medicaid-allowable cost; 634 (b) To increase to each nursing home facility’s Medicaid 635 rate, as needed, an amount that restores rate reductions 636 effective on or after January 1, 2008, as provided in the 637 General Appropriations Act; and 638 (c) To partially fund the quality incentive payment program 639 for nursing facilities that exceed quality benchmarksincrease640each nursing home facility’s Medicaid rate that accounts for the641portion of the total assessment not included in paragraphs (a)642and (b) which begins a phase-in to a pricing model for the643operating cost component. 644 Section 10. Section 409.909, Florida Statutes, is amended 645 to read: 646 409.909 Statewide Medicaid Residency Program.— 647 (1) The Statewide Medicaid Residency Program is established 648 to improve the quality of care and access to care for Medicaid 649 recipients, expand graduate medical education on an equitable 650 basis, and increase the supply of highly trained physicians 651 statewide. The agency shall make payments to hospitals licensed 652 under part I of chapter 395 and to qualifying institutions as 653 defined in paragraph (2)(c) for graduate medical education 654 associated with the Medicaid program. This system of payments is 655 designed to generate federal matching funds under Medicaid and 656 distribute the resulting funds to participating hospitals on a 657 quarterly basis in each fiscal year for which an appropriation 658 is made. 659 (2) On or before September 15 of each year, the agency 660 shall calculate an allocation fraction to be used for 661 distributing funds to participating hospitals and to qualifying 662 institutions as defined in paragraph (2)(c). On or before the 663 final business day of each quarter of a state fiscal year, the 664 agency shall distribute to each participating hospital one 665 fourth of that hospital’s annual allocation calculated under 666 subsection (4). The allocation fraction for each participating 667 hospital is based on the hospital’s number of full-time 668 equivalent residents and the amount of its Medicaid payments. As 669 used in this section, the term: 670 (a) “Full-time equivalent,” or “FTE,” means a resident who 671 is in his or her residency period, with the initial residency 672 period defined as the minimum number of years of training 673 required before the resident may become eligible for board 674 certification by the American Osteopathic Association Bureau of 675 Osteopathic Specialists or the American Board of Medical 676 Specialties in the specialty in which he or she first began 677 training, not to exceed 5 years. The residency specialty is 678 defined as reported using the current residency type codes in 679 the Intern and Resident Information System (IRIS), required by 680 Medicare. A resident training beyond the initial residency 681 period is counted as 0.5 FTE, unless his or her chosen specialty 682 is in primary care, in which case the resident is counted as 1.0 683 FTE. For the purposes of this section, primary care specialties 684 include: 685 1. Family medicine; 686 2. General internal medicine; 687 3. General pediatrics; 688 4. Preventive medicine; 689 5. Geriatric medicine; 690 6. Osteopathic general practice; 691 7. Obstetrics and gynecology; 692 8. Emergency medicine; 693 9. General surgery; and 694 10. Psychiatry. 695 (b) “Medicaid payments” means the estimated total payments 696 for reimbursing a hospital for direct inpatient services for the 697 fiscal year in which the allocation fraction is calculated based 698 on the hospital inpatient appropriation and the parameters for 699 the inpatient diagnosis-related group base rate, including 700 applicable intergovernmental transfers, specified in the General 701 Appropriations Act, as determined by the agency. Effective July 702 1, 2017, the term “Medicaid payments” means the estimated total 703 payments for reimbursing a hospital and qualifying institutions 704 as defined in paragraph (2)(c) for direct inpatient and 705 outpatient services for the fiscal year in which the allocation 706 fraction is calculated based on the hospital inpatient 707 appropriation and outpatient appropriation and the parameters 708 for the inpatient diagnosis-related group base rate, including 709 applicable intergovernmental transfers, specified in the General 710 Appropriations Act, as determined by the agency. 711 (c) “Qualifying institution” means a federally Qualified 712 Health Center holding an Accreditation Council for Graduate 713 Medical Education institutional accreditation. 714 (d) “Resident” means a medical intern, fellow, or resident 715 enrolled in a program accredited by the Accreditation Council 716 for Graduate Medical Education, the American Association of 717 Colleges of Osteopathic Medicine, or the American Osteopathic 718 Association at the beginning of the state fiscal year during 719 which the allocation fraction is calculated, as reported by the 720 hospital to the agency. 721 (3) The agency shall use the following formula to calculate 722 a participating hospital’s and qualifying institution’s 723 allocation fraction: 724 725 HAF=[0.9 x (HFTE/TFTE)] + [0.1 x (HMP/TMP)] 726 727 Where: 728 HAF=A hospital’s and qualifying institution’s allocation 729 fraction. 730 HFTE=A hospital’s and qualifying institution’s total number 731 of FTE residents. 732 TFTE=The total FTE residents for all participating 733 hospitals and qualifying institutions. 734 HMP=A hospital’s and qualifying institution’s Medicaid 735 payments. 736 TMP=The total Medicaid payments for all participating 737 hospitals and qualifying institutions. 738 739 (4) A hospital’s and qualifying institution’s annual 740 allocation shall be calculated by multiplying the funds 741 appropriated for the Statewide Medicaid Residency Program in the 742 General Appropriations Act by that hospital’s and qualifying 743 institution’s allocation fraction. If the calculation results in 744 an annual allocation that exceeds two times the average per FTE 745 resident amount for all hospitals and qualifying institutions, 746 the hospital’s and qualifying institution’s annual allocation 747 shall be reduced to a sum equaling no more than two times the 748 average per FTE resident. The funds calculated for that hospital 749 and qualifying institution in excess of two times the average 750 per FTE resident amount for all hospitals and qualifying 751 institutions shall be redistributed to participating hospitals 752 and qualifying institutions whose annual allocation does not 753 exceed two times the average per FTE resident amount for all 754 hospitals and qualifying institutions, using the same 755 methodology and payment schedule specified in this section. 756 (5) The Graduate Medical Education Startup Bonus Program is 757 established to provide resources for the education and training 758 of physicians in specialties which are in a statewide supply 759 and-demand deficit. Hospitals and qualifying institutions as 760 defined in paragraph (2)(c) eligible for participation in 761 subsection (1) are eligible to participate in the Graduate 762 Medical Education Startup Bonus Program established under this 763 subsection. Notwithstanding subsection (4) or an FTE’s residency 764 period, and in any state fiscal year in which funds are 765 appropriated for the startup bonus program, the agency shall 766 allocate a $100,000 startup bonus for each newly created 767 resident position that is authorized by the Accreditation 768 Council for Graduate Medical Education or Osteopathic 769 Postdoctoral Training Institution in an initial or established 770 accredited training program that is in a physician specialty in 771 statewide supply-and-demand deficit. In any year in which 772 funding is not sufficient to provide $100,000 for each newly 773 created resident position, funding shall be reduced pro rata 774 across all newly created resident positions in physician 775 specialties in statewide supply-and-demand deficit. 776 (a) Hospitals and qualifying institutions as defined in 777 paragraph (2)(c) applying for a startup bonus must submit to the 778 agency by March 1 their Accreditation Council for Graduate 779 Medical Education or Osteopathic Postdoctoral Training 780 Institution approval validating the new resident positions 781 approved on or after March 2 of the prior fiscal year through 782 March 1 of the current fiscal year for the physician specialties 783 identified in a statewide supply-and-demand deficit as provided 784 in the current fiscal year’s General Appropriations Act. An 785 applicant hospital or qualifying institution as defined in 786 paragraph (2)(c) may validate a change in the number of 787 residents by comparing the number in the prior period 788 Accreditation Council for Graduate Medical Education or 789 Osteopathic Postdoctoral Training Institution approval to the 790 number in the current year. 791 (b) Any unobligated startup bonus funds on April 15 of each 792 fiscal year shall be proportionally allocated to hospitals and 793 to qualifying institutions as defined in paragraph (2)(c) 794 participating under subsection (3) for existing FTE residents in 795 the physician specialties in statewide supply-and-demand 796 deficit. This nonrecurring allocation shall be in addition to 797 the funds allocated in subsection (4). Notwithstanding 798 subsection (4), the allocation under this subsection may not 799 exceed $100,000 per FTE resident. 800 (c) For purposes of this subsection, physician specialties 801 and subspecialties, both adult and pediatric, in statewide 802 supply-and-demand deficit are those identified in the General 803 Appropriations Act. 804 (d) The agency shall distribute all funds authorized under 805 the Graduate Medical Education Startup Bonus Program on or 806 before the final business day of the fourth quarter of a state 807 fiscal year. 808 (6) Beginning in the 2015-2016 state fiscal year, the 809 agency shall reconcile each participating hospital’s total 810 number of FTE residents calculated for the state fiscal year 2 811 years before with its most recently available Medicare cost 812 reports covering the same time period. Reconciled FTE counts 813 shall be prorated according to the portion of the state fiscal 814 year covered by a Medicare cost report. Using the same 815 definitions, methodology, and payment schedule specified in this 816 section, the reconciliation shall apply any differences in 817 annual allocations calculated under subsection (4) to the 818 current year’s annual allocations. 819 (7) The agency may adopt rules to administer this section. 820 Section 11. Paragraph (a) of subsection (2) of section 821 409.911, Florida Statutes, is amended, and paragraph (b) of that 822 subsection is republished, to read: 823 409.911 Disproportionate share program.—Subject to specific 824 allocations established within the General Appropriations Act 825 and any limitations established pursuant to chapter 216, the 826 agency shall distribute, pursuant to this section, moneys to 827 hospitals providing a disproportionate share of Medicaid or 828 charity care services by making quarterly Medicaid payments as 829 required. Notwithstanding the provisions of s. 409.915, counties 830 are exempt from contributing toward the cost of this special 831 reimbursement for hospitals serving a disproportionate share of 832 low-income patients. 833 (2) The Agency for Health Care Administration shall use the 834 following actual audited data to determine the Medicaid days and 835 charity care to be used in calculating the disproportionate 836 share payment: 837 (a) The average of the 2009, 2010, and 20112007, 2008, and8382009audited disproportionate share data to determine each 839 hospital’s Medicaid days and charity care for the 2017-2018 8402015-2016state fiscal year. 841 (b) If the Agency for Health Care Administration does not 842 have the prescribed 3 years of audited disproportionate share 843 data as noted in paragraph (a) for a hospital, the agency shall 844 use the average of the years of the audited disproportionate 845 share data as noted in paragraph (a) which is available. 846 Section 12. Section 409.9119, Florida Statutes, is amended 847 to read: 848 409.9119 Disproportionate share program for specialty 849 hospitals for children.—In addition to the payments made under 850 s. 409.911, the Agency for Health Care Administration shall 851 develop and implement a system under which disproportionate 852 share payments are made to those hospitals that are separately 853 licensed by the state as specialty hospitals for children, have 854 a federal Centers for Medicare and Medicaid Services 855 certification number in the 3300-3399 range, have Medicaid days 856 that exceed 55 percent of their total days and Medicare days 857 that are less than 5 percent of their total days, and were 858 licensed on January 1, 2012January 1, 2000, as specialty 859 hospitals for children. This system of payments must conform to 860 federal requirements and must distribute funds in each fiscal 861 year for which an appropriation is made by making quarterly 862 Medicaid payments. Notwithstanding s. 409.915, counties are 863 exempt from contributing toward the cost of this special 864 reimbursement for hospitals that serve a disproportionate share 865 of low-income patients. The agency may make disproportionate 866 share payments to specialty hospitals for children as provided 867 for in the General Appropriations Act. 868 (1) Unless specified in the General Appropriations Act, the 869 agency shall use the following formula to calculate the total 870 amount earned for hospitals that participate in the specialty 871 hospital for children disproportionate share program: 872 873 TAE = DSR x BMPD x MD 874 875 Where: 876 TAE = total amount earned by a specialty hospital for 877 children. 878 DSR = disproportionate share rate. 879 BMPD = base Medicaid per diem. 880 MD = Medicaid days. 881 882 (2) The agency shall calculate the total additional payment 883 for hospitals that participate in the specialty hospital for 884 children disproportionate share program as follows: 885 886 TAP = (TAE x TA) ÷ STAE 887 888 Where: 889 TAP = total additional payment for a specialty hospital for 890 children. 891 TAE = total amount earned by a specialty hospital for 892 children. 893 TA = total appropriation for the specialty hospital for 894 children disproportionate share program. 895 STAE = sum of total amount earned by each hospital that 896 participates in the specialty hospital for children 897 disproportionate share program. 898 899 (3) A hospital may not receive any payments under this 900 section until it achieves full compliance with the applicable 901 rules of the agency. A hospital that is not in compliance for 902 two or more consecutive quarters may not receive its share of 903 the funds. Any forfeited funds must be distributed to the 904 remaining participating specialty hospitals for children that 905 are in compliance. 906 (4) Notwithstanding any provision of this section to the 907 contrary, for the 2017-20182016-2017state fiscal year, for 908 hospitals achieving full compliance under subsection (3), the 909 agency shall make disproportionate share payments to specialty 910 hospitals for children as provided in the 2017-20182016-2017911 General Appropriations Act. This subsection expires July 1, 2018 9122017. 913 Section 13. Subsection (36) of section 409.913, Florida 914 Statutes, is amended to read: 915 409.913 Oversight of the integrity of the Medicaid 916 program.—The agency shall operate a program to oversee the 917 activities of Florida Medicaid recipients, and providers and 918 their representatives, to ensure that fraudulent and abusive 919 behavior and neglect of recipients occur to the minimum extent 920 possible, and to recover overpayments and impose sanctions as 921 appropriate. Beginning January 1, 2003, and each year 922 thereafter, the agency and the Medicaid Fraud Control Unit of 923 the Department of Legal Affairs shall submit a joint report to 924 the Legislature documenting the effectiveness of the state’s 925 efforts to control Medicaid fraud and abuse and to recover 926 Medicaid overpayments during the previous fiscal year. The 927 report must describe the number of cases opened and investigated 928 each year; the sources of the cases opened; the disposition of 929 the cases closed each year; the amount of overpayments alleged 930 in preliminary and final audit letters; the number and amount of 931 fines or penalties imposed; any reductions in overpayment 932 amounts negotiated in settlement agreements or by other means; 933 the amount of final agency determinations of overpayments; the 934 amount deducted from federal claiming as a result of 935 overpayments; the amount of overpayments recovered each year; 936 the amount of cost of investigation recovered each year; the 937 average length of time to collect from the time the case was 938 opened until the overpayment is paid in full; the amount 939 determined as uncollectible and the portion of the uncollectible 940 amount subsequently reclaimed from the Federal Government; the 941 number of providers, by type, that are terminated from 942 participation in the Medicaid program as a result of fraud and 943 abuse; and all costs associated with discovering and prosecuting 944 cases of Medicaid overpayments and making recoveries in such 945 cases. The report must also document actions taken to prevent 946 overpayments and the number of providers prevented from 947 enrolling in or reenrolling in the Medicaid program as a result 948 of documented Medicaid fraud and abuse and must include policy 949 recommendations necessary to prevent or recover overpayments and 950 changes necessary to prevent and detect Medicaid fraud. All 951 policy recommendations in the report must include a detailed 952 fiscal analysis, including, but not limited to, implementation 953 costs, estimated savings to the Medicaid program, and the return 954 on investment. The agency must submit the policy recommendations 955 and fiscal analyses in the report to the appropriate estimating 956 conference, pursuant to s. 216.137, by February 15 of each year. 957 The agency and the Medicaid Fraud Control Unit of the Department 958 of Legal Affairs each must include detailed unit-specific 959 performance standards, benchmarks, and metrics in the report, 960 including projected cost savings to the state Medicaid program 961 during the following fiscal year. 962 (36)At least three times a year,The agency mayshall963 provide to a sample ofeachMedicaid recipientsrecipientor 964 their representatives through the distribution of explanations 965his or her representativean explanationof benefits information 966 about services reimbursed by the Medicaid program for goods and 967 services to such recipients, includingin the form of a letter968that is mailed to the most recent address of the recipient on969the record with the Department of Children and Families. The970explanation of benefits must include the patient’s name, the971name of the health care provider and the address of the location972where the service was provided, a description of all services973billed to Medicaid in terminology that should be understood by a974reasonable person, andinformation on how to report 975 inappropriate or incorrect billing to the agency or other law 976 enforcement entities for review or investigation. At least once977a year,the letter also must includeinformation on how to 978 report criminal Medicaid fraud to,the Medicaid Fraud Control 979 Unit’s toll-free hotline number, and information about the 980 rewards available under s. 409.9203. The explanation of benefits 981 may not be mailed for Medicaid independent laboratory services 982 as described in s. 409.905(7) or for Medicaid certified match 983 services as described in ss. 409.9071 and 1011.70. 984 Section 14. Paragraph (e) of subsection (1) of section 985 409.975, Florida Statutes, is amended, and subsection (7) is 986 added to that section, to read: 987 409.975 Managed care plan accountability.—In addition to 988 the requirements of s. 409.967, plans and providers 989 participating in the managed medical assistance program shall 990 comply with the requirements of this section. 991 (1) PROVIDER NETWORKS.—Managed care plans must develop and 992 maintain provider networks that meet the medical needs of their 993 enrollees in accordance with standards established pursuant to 994 s. 409.967(2)(c). Except as provided in this section, managed 995 care plans may limit the providers in their networks based on 996 credentials, quality indicators, and price. 997 (e) Each managed care plan maymustoffer a network 998 contract to each home medical equipment and supplies provider in 999 the region which meets quality and fraud prevention and 1000 detection standards established by the plan and which agrees to 1001 accept the lowest price previously negotiated between the plan 1002 and another such provider. 1003 (7) SUBSTANCE ABUSE AND MENTAL HEALTH (SAMH) SAFETY NET 1004 NETWORK.— 1005 (a) The agency shall contract with the Substance Abuse and 1006 Mental Health (SAMH) Safety Net Network, established under s. 1007 394.9082(11), to plan, coordinate, and contract for delivering 1008 certain community mental health and substance abuse services, 1009 thereby improving access to behavioral health care, promoting 1010 the continuity of such services, and supporting efficient and 1011 effective delivery of such services under this section. The 1012 contract must require managing entities to provide specified 1013 services to Medicaid-eligible individuals with specified 1014 behaviors, diagnoses, or addictions. 1015 (b) Before contracting, the agency must conduct a 1016 comprehensive readiness assessment to ensure that the SAMH 1017 Safety Net Network has the necessary infrastructure, financial 1018 resources, and relevant experience to implement the contract. 1019 The agency and the department shall develop performance measures 1020 to evaluate the impact of the SAMH Safety Net Network and to 1021 determine the adequacy, timeliness, and quality of the services 1022 provided for specified target populations and the efficiency of 1023 the services in addressing mental health and substance use 1024 disorders within a community. 1025 (c) The agency, in consultation with the department and 1026 managing entities, shall determine the rates for services added 1027 to the state Medicaid plan. The rates shall be developed based 1028 on the full cost of the services and reasonable administrative 1029 costs for providers and managing entities. 1030 Section 15. Subsection (1) and (2) of section 409.979, 1031 Florida Statutes, are amended to read: 1032 409.979 Eligibility.— 1033 (1) PREREQUISITE CRITERIA FOR ELIGIBILITY.—Medicaid 1034 recipients who meet all of the following criteria are eligible 1035 to receive long-term care services and must receive long-term 1036 care services by participating in the long-term care managed 1037 care program. The recipient must be: 1038 (a) Sixty-five years of age or older, or age 18 or older 1039 and eligible for Medicaid by reason of a disability. 1040 (b) Determined by the Comprehensive Assessment Review and 1041 Evaluation for Long-Term Care Services (CARES) preadmission 1042 screening program to require: 1043 1. Nursing facility care as defined in s. 409.985(3); or 1044 2. Hospital level of care for individuals diagnosed with 1045 cystic fibrosis. 1046 (2) ENROLLMENT OFFERS.—Subject to the availability of 1047 funds, the Department of Elderly Affairs shall make offers for 1048 enrollment to eligible individuals based on a wait-list 1049 prioritization. Before making enrollment offers, the agency and 1050 the Department of Elderly Affairs shall determine that 1051 sufficient funds exist to support additional enrollment into 1052 plans. 1053 (a) A Medicaid recipient enrolled in one of the following 1054 Medicaid home and community-based services waiver programs who 1055 meets the eligibility criteria established in subsection (1) is 1056 eligible to participate in the long-term care managed care 1057 program and must be transitioned into the long-term care managed 1058 care program by January 1, 2018: 1059 1. Traumatic Brain and Spinal Cord Injury Waiver. 1060 2. Adult Cystic Fibrosis Waiver. 1061 3. Project AIDS Care Waiver. 1062 (b) The agency shall seek federal approval to terminate the 1063 Traumatic Brain and Spinal Cord Injury Waiver, the Adult Cystic 1064 Fibrosis Waiver, and the Project AIDS Care Waiver once all 1065 eligible Medicaid recipients have transitioned into the long 1066 term care managed care program. 1067 Section 16. Subject to federal approval of the application 1068 to be a site for the Program of All-inclusive Care for the 1069 Elderly (PACE), the Agency for Health Care Administration shall 1070 contract with an additional not-for-profit organization to serve 1071 individuals and families in Miami-Dade County. The not-for 1072 profit organization must have a history of serving primarily the 1073 Hispanic population by providing primary care services, 1074 nutrition, meals, and adult day care to senior citizens. The 1075 not-for-profit organization shall leverage existing community 1076 based care providers and health care organizations to provide 1077 PACE services to frail elders who reside in Miami-Dade County. 1078 The organization is exempt from the requirements of chapter 641, 1079 Florida Statutes. The agency, in consultation with the 1080 Department of Elderly Affairs and subject to an appropriation, 1081 shall approve up to 250 initial enrollees in the additional PACE 1082 site established by this organization to serve frail elders who 1083 reside in Miami-Dade County. 1084 Section 17. Notwithstanding section 27 of chapter 2016-65, 1085 Laws of Florida, and subject to federal approval of the 1086 application to be a site for the Program of All-inclusive Care 1087 for the Elderly (PACE), the Agency for Health Care 1088 Administration shall contract with a not-for-profit 1089 organization, formed by a partnership with a not-for-profit 1090 hospital, a not-for-profit agency serving elders, and a not-for 1091 profit hospice in Leon County. The not-for-profit PACE shall 1092 serve eligible PACE enrollees in Gadsden, Jefferson, Leon, and 1093 Wakulla Counties. The Agency for Health Care Administration, in 1094 consultation with the Department of Elderly Affairs and subject 1095 to an appropriation, shall approve up to 300 initial enrollees 1096 for the additional PACE site. 1097 Section 18. Section 17 of chapter 2011-61, Laws of Florida, 1098 is amended to read: 1099 Section 17. Notwithstanding s. 430.707, Florida Statutes, 1100 and subject to federal approval of the application to be a site 1101 for the Program of All-inclusive Care for the Elderly, the 1102 Agency for Health Care Administration shall contract with one 1103 private health care organization, the sole member of which is a 1104 private, not-for-profit corporation that owns and manages health 1105 care organizations which provide comprehensive long-term care 1106 services, including nursing home, assisted living, independent 1107 housing, home care, adult day care, and care management, with a 1108 board-certified, trained geriatrician as the medical director. 1109 This organization shall provide these services to frail and 1110 elderly persons who reside in Indian River, Martin, Okeechobee, 1111 Palm Beach, and St. Lucie CountiesCounty. The organization is 1112 exempt from the requirements of chapter 641, Florida Statutes. 1113 The agency, in consultation with the Department of Elderly 1114 Affairs and subject to an appropriation, shall approve up to 150 1115 initial enrollees who reside in Palm Beach County and up to 150 1116 initial enrollees who reside in Martin County in the Program of 1117 All-inclusive Care for the Elderly established by this 1118 organization to serve elderly personswho reside in Palm Beach1119County. 1120 Section 19. Effective June 30, 2017, section 9 of chapter 1121 2016-65, Laws of Florida, is amended to read: 1122 Section 9. Effective July 1, 20182017, paragraph (b) of 1123 subsection (6) of section 409.905, Florida Statutes, is amended 1124 to read: 1125 409.905 Mandatory Medicaid services.—The agency may make 1126 payments for the following services, which are required of the 1127 state by Title XIX of the Social Security Act, furnished by 1128 Medicaid providers to recipients who are determined to be 1129 eligible on the dates on which the services were provided. Any 1130 service under this section shall be provided only when medically 1131 necessary and in accordance with state and federal law. 1132 Mandatory services rendered by providers in mobile units to 1133 Medicaid recipients may be restricted by the agency. Nothing in 1134 this section shall be construed to prevent or limit the agency 1135 from adjusting fees, reimbursement rates, lengths of stay, 1136 number of visits, number of services, or any other adjustments 1137 necessary to comply with the availability of moneys and any 1138 limitations or directions provided for in the General 1139 Appropriations Act or chapter 216. 1140 (6) HOSPITAL OUTPATIENT SERVICES.— 1141 (b) The agency shall implement a prospective payment 1142 methodology for establishing reimbursement rates for outpatient 1143 hospital services. Rates shall be calculated annually and take 1144 effect July 1, 20182017, and July 1 of each year thereafter. 1145 The methodology shall categorize the amount and type of services 1146 used in various ambulatory visits which group together 1147 procedures and medical visits that share similar characteristics 1148 and resource utilization. 1149 1. Adjustments may not be made to the rates after July 31 1150 of the state fiscal year in which the rates take effect. 1151 2. Errors in source data or calculations discovered after 1152 July 31 of each state fiscal year must be reconciled in a 1153 subsequent rate period. However, the agency may not make any 1154 adjustment to a hospital’s reimbursement more than 5 years after 1155 a hospital is notified of an audited rate established by the 1156 agency. The prohibition against adjustments more than 5 years 1157 after notification is remedial and applies to actions by 1158 providers involving Medicaid claims for hospital services. 1159 Hospital reimbursement is subject to such limits or ceilings as 1160 may be established in law or described in the agency’s hospital 1161 reimbursement plan. Specific exemptions to the limits or 1162 ceilings may be provided in the General Appropriations Act. 1163 Section 20. Section 29 of chapter 2016-65, Laws of Florida, 1164 is amended to read: 1165 Section 29. Subject to federal approval of the application 1166 to be a site for the Program of All-inclusive Care for the 1167 Elderly (PACE), the Agency for Health Care Administration shall 1168 contract with one private, not-for-profit hospice organization 1169 located in Lake County which operates health care organizations 1170 licensed in Hospice Areas 7B and 3E and which provides 1171 comprehensive services, including hospice and palliative care, 1172 to frail elders who reside in these service areas. The 1173 organization is exempt from the requirements of chapter 641, 1174 Florida Statutes. The agency, in consultation with the 1175 Department of Elderly Affairs and subject to the appropriation 1176 of funds by the Legislature, shall approve up to 150 initial 1177 enrollees in the Program of All-inclusive Care for the Elderly 1178 established by the organization to serve frail elders who reside 1179 in Hospice Service Areas 7B and 3E. The agency, in consultation 1180 with the department and subject to an appropriation, shall 1181 approve up to 150 enrollees in the Program of All-inclusive Care 1182 for the Elderly established by this organization to serve frail 1183 elders who reside in Hospice Service Area 7C. 1184 Section 21. Subject to federal approval of the application 1185 to be a site for the Program of All-inclusive Care for the 1186 Elderly (PACE), the Agency for Health Care Administration shall 1187 contract with one not-for-profit organization that satisfies 1188 each of the following conditions: 1189 (1) The organization is exempt from federal income taxation 1190 as an entity described in s. 501(c)(3) of the Internal Revenue 1191 Code of 1986, as amended; 1192 (2) The organization is licensed pursuant to part IV of 1193 chapter 400, Florida Statutes, to provide hospice services in 1194 the Agency for Health Care Administration Areas 3 and 4 and 1195 operates inpatient hospice care centers in each of the following 1196 counties within those regions: Alachua, Citrus, Clay, Columbia, 1197 and Putnam; 1198 (3) The organization has more than 30 years of experience 1199 as a licensed hospice provider in this state; and 1200 (4) The organization is affiliated, through common 1201 ownership or control, with other not-for-profit organizations 1202 licensed by the agency to provide home health services, to 1203 operate a nursing home, and to operate an assisted living 1204 facility. 1205 1206 The approved not-for-profit organization shall provide PACE 1207 services to frail and elderly persons who reside in Alachua 1208 County. The organization is exempt from the requirements of 1209 chapter 641, Florida Statutes. The agency, in consultation with 1210 the Department of Elder Affairs and subject to an appropriation, 1211 shall approve up to 150 initial enrollees in the PACE site 1212 established by this organization to serve frail and elderly 1213 persons who reside in Alachua County. 1214 Section 22. Except as otherwise expressly provided in this 1215 act and except for this section, which shall take effect upon 1216 becoming a law, this act shall take effect July 1, 2017.