Bill Text: FL S2514 | 2017 | Regular Session | Engrossed
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-Engrossed.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-Engrossed.html
SB 2514 First Engrossed 20172514e1 1 A bill to be entitled 2 An act relating to health care; amending s. 210.20, 3 F.S.; providing that a specified percentage of the 4 cigarette tax, up to a specified amount, be paid 5 annually to the Florida Consortium of National Cancer 6 Institute Centers Program, rather than the Sanford 7 Burnham Medical Research Institute; requiring that the 8 funds be used to advance cures for cancers afflicting 9 pediatric populations through basic or applied 10 research; amending s. 381.922, F.S.; revising the 11 goals of the William G. “Bill” Bankhead, Jr., and 12 David Coley Cancer Research Program to include 13 identifying ways to increase pediatric enrollment in 14 cancer clinical trials; establishing the Live Like 15 Bella Initiative to advance progress toward curing 16 pediatric cancer, subject to an appropriation; 17 amending s. 394.9082, F.S.; revising the reporting 18 requirements of the acute care services utilization 19 database; requiring the Department of Children and 20 Families to post certain data on its website; creating 21 the Substance Abuse and Mental Health (SAMH) Safety 22 Net Network; providing legislative intent; requiring 23 the Department of Children and Families and the Agency 24 for Health Care Administration to determine the scope 25 of services to be offered through providers contracted 26 with the SAMH Safety Net Network; authorizing the SAMH 27 Safety Net Network to provide Medicaid reimbursable 28 services beyond the limits of the state Medicaid plan 29 under certain circumstances; providing that general 30 revenue matching funds for the services shall be 31 derived from the existing unmatched general revenue 32 funds within the substance abuse and mental health 33 program and documented through general revenue 34 expenditure submissions by the department; requiring 35 the agency, in consultation with the department, to 36 seek federal authorization for administrative claiming 37 pursuant to a specified federal program to fund 38 certain interventions, case managers, and facility 39 services; requiring the department, in collaboration 40 with the agency, to document local funding of 41 behavioral health services; requiring the agency to 42 seek certain federal matching funds; amending s. 43 395.602, F.S.; revising the definition of the term 44 “rural hospital” to include a hospital classified as a 45 sole community hospital, regardless of the number of 46 licensed beds; amending s. 400.179, F.S.; providing 47 that certain fees deposited into the Medicaid nursing 48 home overpayment account in the Grants and Donations 49 Trust Fund may be used by the agency for enhanced 50 payments to nursing facilities as specified in the 51 General Appropriations Act or other law; amending s. 52 409.904, F.S.; authorizing the agency to make payments 53 for medical assistance and related services on behalf 54 of a person diagnosed with acquired immune deficiency 55 syndrome who meets certain criteria, subject to the 56 availability of moneys and specified limitations; 57 amending s. 409.908, F.S.; revising requirements 58 related to the long-term care reimbursement plan and 59 cost reporting system; requiring the calculation of 60 separate prices for each patient care subcomponent 61 based on specified cost reports; providing that 62 certain ceilings and targets apply only to providers 63 being reimbursed on a cost-based system; expanding the 64 direct care subcomponent to include allowable therapy 65 and dietary costs; specifying that allowable ancillary 66 costs are included in the indirect care cost 67 subcomponent; requiring the agency to establish, by a 68 specified date, a technical advisory council to assist 69 in ongoing development and refining of quality 70 measures used in the nursing home prospective payment 71 system; providing for membership; requiring that 72 nursing home prospective payment rates be rebased at a 73 specified interval; authorizing the payment of a 74 direct care supplemental payment to certain providers; 75 specifying the amount providers will be reimbursed for 76 a specified period of time, which may be a cost-based 77 rate or a prospective payment rate; providing for 78 expiration of this reimbursement mechanism on a 79 specified date; requiring the agency to reimburse 80 providers on a cost-based rate or a rebased 81 prospective payment rate, beginning on a specified 82 date; requiring that Medicaid pay deductibles and 83 coinsurance for certain X-ray services provided in an 84 assisted living facility or in the patient’s home; 85 amending s. 409.909, F.S.; providing that the agency 86 shall make payments and distribute funds to qualifying 87 institutions in addition to hospitals under the 88 Statewide Medicaid Residency Program; amending s. 89 409.9082, F.S.; revising the uses of quality 90 assessment and federal matching funds to include the 91 partial funding of the quality incentive payment 92 program for nursing facilities that exceed quality 93 benchmarks; amending s. 409.911, F.S.; updating 94 obsolete language; amending s. 409.9119, F.S.; 95 revising criteria for the participation of hospitals 96 in the disproportionate share program for specialty 97 hospitals for children; amending s. 409.913, F.S.; 98 removing a requirement that the agency provide each 99 Medicaid recipient with an explanation of benefits; 100 authorizing the agency to provide an explanation of 101 benefits to a sample of Medicaid recipients or their 102 representatives; amending s. 409.975, F.S.; 103 authorizing, rather than requiring, a managed care 104 plan to offer a network contract to certain medical 105 equipment and supplies providers in the region; 106 requiring the agency to contract with the SAMH Safety 107 Net Network; specifying that the contract must require 108 managing entities to provide specified services to 109 certain individuals; requiring the agency to conduct a 110 comprehensive readiness assessment before contracting 111 with the SAMH Safety Net Network; requiring the agency 112 and the department to develop performance measures for 113 the SAMH Safety Net Network; requiring the agency and 114 the department to develop performance measures to 115 evaluate the SAMH Safety Net Network and its services; 116 requiring the agency, in consultation with the 117 department and managing entities, to determine the 118 rates for services added to the state Medicaid plan; 119 amending s. 409.979, F.S.; expanding eligibility for 120 long-term care services to include hospital level of 121 care for certain individuals diagnosed with cystic 122 fibrosis; revising eligibility for certain Medicaid 123 recipients in the long-term care managed care program; 124 amending s. 409.983, F.S.; eliminating the requirement 125 that the agency consider facility costs adjusted for 126 inflation in the establishment of certain payment 127 rates for nursing homes; requiring the agency to 128 contract with an additional, not-for-profit 129 organization that meets certain conditions and offers 130 specified services to frail elders who reside in 131 Miami-Dade County, subject to federal approval; 132 exempting the organization from ch. 641, F.S., 133 relating to health care service programs; requiring 134 the agency, in consultation with the Department of 135 Elderly Affairs, to approve a certain number of 136 initial enrollees in the Program of All-inclusive Care 137 for the Elderly (PACE); requiring the agency to 138 contract with a specified not-for-profit organization, 139 a not-for-profit agency serving elders, and a not-for 140 profit hospice in Leon County to be a site for PACE, 141 subject to federal approval; authorizing PACE to serve 142 eligible enrollees in Gadsden, Jefferson, Leon, and 143 Wakulla Counties; requiring the agency, in 144 consultation with the department, to approve a certain 145 number of initial enrollees in PACE at the new site, 146 subject to an appropriation; amending s. 17 of chapter 147 2011-61, Laws of Florida; requiring the agency, in 148 consultation with the department, to approve a certain 149 number of initial enrollees in PACE to serve frail 150 elders who reside in certain counties; amending s. 9 151 of chapter 2016-65, Laws of Florida; revising an 152 effective date; revising the date that rates for 153 hospital outpatient services must take effect; 154 amending s. 29 of chapter 2016-65, Laws of Florida; 155 requiring the agency, in consultation with the 156 department, to approve a certain number of enrollees 157 in the PACE established to serve frail elders who 158 reside in Hospice Service Area 7; requiring the agency 159 to contract with a not-for-profit organization that 160 meets certain criteria to offer specified services to 161 frail elders who reside in Alachua County, subject to 162 federal approval; exempting the organization from ch. 163 641, F.S., relating to health care service programs; 164 requiring the agency, in consultation with the 165 department, to approve a certain number of initial 166 enrollees in PACE at the new site, subject to certain 167 conditions; requiring the agency to contract with an 168 organization that meets certain criteria to offer 169 specified services to frail elders who reside in 170 certain counties, subject to federal approval; 171 exempting the organization from ch. 641, F.S., 172 relating to health care service programs; requiring 173 the agency, in consultation with the department, to 174 approve a certain number of initial enrollees in PACE 175 at the new site, subject to certain conditions; 176 providing that the agency may seek any necessary 177 waiver or state plan amendments to serve a certain 178 purpose; providing effective dates. 179 180 Be It Enacted by the Legislature of the State of Florida: 181 182 Section 1. Paragraph (c) of subsection (2) of section 183 210.20, Florida Statutes, is amended to read: 184 210.20 Employees and assistants; distribution of funds.— 185 (2) As collections are received by the division from such 186 cigarette taxes, it shall pay the same into a trust fund in the 187 State Treasury designated “Cigarette Tax Collection Trust Fund” 188 which shall be paid and distributed as follows: 189 (c) Beginning July 1, 20172013, and continuing through 190 June 30, 2033, the division shall from month to month certify to 191 the Chief Financial Officer the amount derived from the 192 cigarette tax imposed by s. 210.02, less the service charges 193 provided for in s. 215.20 and less 0.9 percent of the amount 194 derived from the cigarette tax imposed by s. 210.02, which shall 195 be deposited into the Alcoholic Beverage and Tobacco Trust Fund, 196 specifying an amount equal to 1 percent of the net collections, 197 not to exceed $3 million annually, and that amount shall be 198 deposited into the Biomedical Research Trust Fund in the 199 Department of Health. These funds are appropriated annuallyin200an amount not to exceed $3 millionfrom the Biomedical Research 201 Trust Fund for the advancement of cures for cancers afflicting 202 pediatric populations through basic or applied research, 203 including, but not limited to, clinical trials and nontoxic drug 204 discovery. These funds are not included in the calculation for 205 the distribution of funds pursuant to s. 381.915; however, these 206 funds shall be distributed to cancer centers participating in 207 the Florida Consortium of National Cancer Institute Centers 208 Program in the same proportion as is allocated to each cancer 209 center in accordance with s. 381.915 and are in addition to any 210 funds distributed pursuant to that sectionDepartment of Health211and the Sanford-Burnham Medical Research Institute to work in212conjunction for the purpose of establishing activities and grant213opportunities in relation to biomedical research. 214 Section 2. Subsection (2) of section 381.922, Florida 215 Statutes, is amended to read: 216 381.922 William G. “Bill” Bankhead, Jr., and David Coley 217 Cancer Research Program.— 218 (2) The program shall provide grants for cancer research to 219 further the search for cures for cancer. 220 (a) Emphasis shall be given to the following goals, as 221 those goals support the advancement of such cures: 222 1. Efforts to significantly expand cancer research capacity 223 in the state by: 224 a. Identifying ways to attract new research talent and 225 attendant national grant-producing researchers to cancer 226 research facilities in this state; 227 b. Implementing a peer-reviewed, competitive process to 228 identify and fund the best proposals to expand cancer research 229 institutes in this state; 230 c. Funding through available resources for those proposals 231 that demonstrate the greatest opportunity to attract federal 232 research grants and private financial support; 233 d. Encouraging the employment of bioinformatics in order to 234 create a cancer informatics infrastructure that enhances 235 information and resource exchange and integration through 236 researchers working in diverse disciplines, to facilitate the 237 full spectrum of cancer investigations; 238 e. Facilitating the technical coordination, business 239 development, and support of intellectual property as it relates 240 to the advancement of cancer research; and 241 f. Aiding in other multidisciplinary research-support 242 activities as they inure to the advancement of cancer research. 243 2. Efforts to improve both research and treatment through 244 greater participation in clinical trials networks by: 245 a. Identifying ways to increase pediatric and adult 246 enrollment in cancer clinical trials; 247 b. Supporting public and private professional education 248 programs designed to increase the awareness and knowledge about 249 cancer clinical trials; 250 c. Providing tools to cancer patients and community-based 251 oncologists to aid in the identification of cancer clinical 252 trials available in the state; and 253 d. Creating opportunities for the state’s academic cancer 254 centers to collaborate with community-based oncologists in 255 cancer clinical trials networks. 256 3. Efforts to reduce the impact of cancer on disparate 257 groups by: 258 a. Identifying those cancers that disproportionately impact 259 certain demographic groups; and 260 b. Building collaborations designed to reduce health 261 disparities as they relate to cancer. 262 (b) Preference may be given to grant proposals that foster 263 collaborations among institutions, researchers, and community 264 practitioners, as such proposals support the advancement of 265 cures through basic or applied research, including clinical 266 trials involving cancer patients and related networks. 267 (c) There is established within the program the Live Like 268 Bella Initiative. The purpose of the initiative is to advance 269 progress toward curing pediatric cancer by awarding grants 270 through the peer-reviewed, competitive process established under 271 subsection (3). This paragraph is subject to the annual 272 appropriation of funds by the Legislature. 273 Section 3. Paragraph (a) of subsection (10) of section 274 394.9082, Florida Statutes, is republished, paragraph (b) of 275 that subsection is amended, paragraph (f) is added to that 276 subsection, and subsection (11) is added to that section, to 277 read: 278 394.9082 Behavioral health managing entities.— 279 (10) ACUTE CARE SERVICES UTILIZATION DATABASE.—The 280 department shall develop, implement, and maintain standards 281 under which a managing entity shall collect utilization data 282 from all public receiving facilities situated within its 283 geographical service area and all detoxification and addictions 284 receiving facilities under contract with the managing entity. As 285 used in this subsection, the term “public receiving facility” 286 means an entity that meets the licensure requirements of, and is 287 designated by, the department to operate as a public receiving 288 facility under s. 394.875 and that is operating as a licensed 289 crisis stabilization unit. 290 (a) The department shall develop standards and protocols to 291 be used for data collection, storage, transmittal, and analysis. 292 The standards and protocols shall allow for compatibility of 293 data and data transmittal between public receiving facilities, 294 detoxification facilities, addictions receiving facilities, 295 managing entities, and the department for the implementation, 296 and to meet the requirements, of this subsection. 297 (b) A managing entity shall require providers specified in 298 paragraph (a) to submit data, in real time or at least daily, to 299 the managing entity for: 300 1. All admissions and discharges of clients receiving 301 public receiving facility services who qualify as indigent, as 302 defined in s. 394.4787. 303 2. All admissions and discharges of clients receiving 304 substance abuse services in an addictions receiving facility or 305 detoxification facility pursuant to parts IV and V of chapter 306 397 who qualify as indigent. 307 3. The current active census of total licensedand utilized308 beds, the number of beds purchased by the department, the number 309 of clients qualifying as indigent occupyingwho occupy any of310 those beds, and the total number of unoccupied licensed beds, 311 regardless of funding, and the number in excess of licensed312capacity. Crisis units licensed for both adult and child use313will report as a single unit. 314 (f) The department shall post on its website, by facility, 315 the data collected pursuant to this subsection and update such 316 posting monthly. 317 (11) SUBSTANCE ABUSE AND MENTAL HEALTH (SAMH) SAFETY NET 318 NETWORK.— 319 (a) It is the intent of the Legislature to create the 320 Substance Abuse and Mental Health (SAMH) Safety Net Network to 321 support and enhance the community mental health and substance 322 abuse services currently provided by managing entities. The SAMH 323 Safety Net Network as used in this section means the managing 324 entities and their contracted network of providers. Contracted 325 providers are considered vendors and not subrecipients, as 326 defined in s. 215.97. Managing entities and their contracted 327 providers are not public employees for purposes of chapter 112. 328 (b) The department and the agency shall establish the SAMH 329 Safety Net Network by adding specific behavioral health services 330 currently provided by managing entities to the state Medicaid 331 plan and adjusting the amount of units of services for specific 332 Medicaid services to better serve Medicaid-eligible individuals 333 with severe and persistent mental health or substance use 334 disorders, and their families, who are currently served by 335 managing entities. It is the intent of the Legislature to have 336 the department submit documentation of general revenue 337 expenditures to the agency for the state match for the services 338 and for the agency to pay managing entities the federal Medicaid 339 portion for services provided. 340 1. Behavioral health services currently funded by managing 341 entities through the substance abuse and mental health program 342 shall be added by the agency to the state Medicaid plan through 343 a state plan amendment. These services shall be provided 344 exclusively through the providers contracted with the SAMH 345 Safety Net Network. The department and the agency shall 346 determine which services are essential for individuals served by 347 managing entities through coordinated systems of care and which 348 services will most efficiently use state and federal resources. 349 2. The state Medicaid plan currently limits the amount of 350 behavioral health services that may be provided to a covered 351 individual. However, the SAMH Safety Net Network is authorized 352 to provide Medicaid reimbursable services beyond these limits 353 when providing services, including, but not limited to, 354 assessment, group therapy, individual therapy, psychosocial 355 rehabilitation, day treatment, medication management, 356 therapeutic onsite services, substance abuse inpatient or 357 residential detoxification, inpatient hospital services, and 358 crisis stabilization unit or as appropriate in lieu of services. 359 (c) The required general revenue matching funds for the 360 services shall be derived from the existing unmatched general 361 revenue funds within the substance abuse and mental health 362 program and documented through general revenue expenditure 363 submissions by the department. The Medicaid reimbursement for 364 services provided by the SAMH Safety Net Network shall be 365 limited to the availability of general revenue matching funds 366 within the substance abuse and mental health program for such 367 purpose. 368 (d) Except as otherwise provided in this part, the state 369 share of funds sufficient to implement the provisions of this 370 act shall be redirected from existing general revenue funds in 371 the department which are used for funding mental health and 372 substance abuse services, excluding funding for residential 373 services. The need for these state-only funds must be offset by 374 the infusion of federal funds made available to the SAMH Safety 375 Net Network under the provisions of this act. 376 Section 4. The Agency for Health Care Administration, in 377 consultation with the Department of Children and Families, shall 378 seek federal authorization for administrative claiming pursuant 379 to the Medicaid Administrative Claiming program to fund: 380 (1) The department’s team-based interventions, including, 381 but not limited to, community action treatment teams and family 382 intervention treatment teams, which focus on the entire family 383 to prevent out-of-home placements in the child welfare, 384 behavioral health, and criminal justice systems. 385 (2) Case managers employed by the department’s child 386 welfare community-based care lead agency who are responsible for 387 locating, coordinating, and monitoring necessary and appropriate 388 services extending beyond direct services for Medicaid-eligible 389 children, including, but not limited to, outreach, referral, 390 eligibility determination, and case management. 391 (3) Central receiving facility services for individuals 392 with mental health or substance use disorders. 393 Section 5. The Department of Children and Families, in 394 collaboration with the Agency for Health Care Administration, 395 shall document the extent to which behavioral health services 396 are funded with contributions from units of local government. 397 The agency shall seek federal authority to have these funds 398 qualify for federal matching funds as certified public 399 expenditures. 400 Section 6. Paragraph (e) of subsection (2) of section 401 395.602, Florida Statutes, is amended to read: 402 395.602 Rural hospitals.— 403 (2) DEFINITIONS.—As used in this part, the term: 404 (e) “Rural hospital” means an acute care hospital licensed 405 under this chapter, having 100 or fewer licensed beds and an 406 emergency room, which is: 407 1. The sole provider within a county with a population 408 density of up to 100 persons per square mile; 409 2. An acute care hospital, in a county with a population 410 density of up to 100 persons per square mile, which is at least 411 30 minutes of travel time, on normally traveled roads under 412 normal traffic conditions, from any other acute care hospital 413 within the same county; 414 3. A hospital supported by a tax district or subdistrict 415 whose boundaries encompass a population of up to 100 persons per 416 square mile; 417 4. A hospital classified as a sole community hospital under 418 42 C.F.R. s. 412.92, regardless of the number ofwhich has up to419175licensed beds; 420 5. A hospital with a service area that has a population of 421 up to 100 persons per square mile. As used in this subparagraph, 422 the term “service area” means the fewest number of zip codes 423 that account for 75 percent of the hospital’s discharges for the 424 most recent 5-year period, based on information available from 425 the hospital inpatient discharge database in the Florida Center 426 for Health Information and Transparency at the agency; or 427 6. A hospital designated as a critical access hospital, as 428 defined in s. 408.07. 429 430 Population densities used in this paragraph must be based upon 431 the most recently completed United States census. A hospital 432 that received funds under s. 409.9116 for a quarter beginning no 433 later than July 1, 2002, is deemed to have been and shall 434 continue to be a rural hospital from that date through June 30, 435 2021, if the hospital continues to have up to 100 licensed beds 436 and an emergency room. An acute care hospital that has not 437 previously been designated as a rural hospital and that meets 438 the criteria of this paragraph shall be granted such designation 439 upon application, including supporting documentation, to the 440 agency. A hospital that was licensed as a rural hospital during 441 the 2010-2011 or 2011-2012 fiscal year shall continue to be a 442 rural hospital from the date of designation through June 30, 443 2021, if the hospital continues to have up to 100 licensed beds 444 and an emergency room. 445 Section 7. Paragraph (d) of subsection (2) of section 446 400.179, Florida Statutes, is amended to read: 447 400.179 Liability for Medicaid underpayments and 448 overpayments.— 449 (2) Because any transfer of a nursing facility may expose 450 the fact that Medicaid may have underpaid or overpaid the 451 transferor, and because in most instances, any such underpayment 452 or overpayment can only be determined following a formal field 453 audit, the liabilities for any such underpayments or 454 overpayments shall be as follows: 455 (d) Where the transfer involves a facility that has been 456 leased by the transferor: 457 1. The transferee shall, as a condition to being issued a 458 license by the agency, acquire, maintain, and provide proof to 459 the agency of a bond with a term of 30 months, renewable 460 annually, in an amount not less than the total of 3 months’ 461 Medicaid payments to the facility computed on the basis of the 462 preceding 12-month average Medicaid payments to the facility. 463 2. A leasehold licensee may meet the requirements of 464 subparagraph 1. by payment of a nonrefundable fee, paid at 465 initial licensure, paid at the time of any subsequent change of 466 ownership, and paid annually thereafter, in the amount of 1 467 percent of the total of 3 months’ Medicaid payments to the 468 facility computed on the basis of the preceding 12-month average 469 Medicaid payments to the facility. If a preceding 12-month 470 average is not available, projected Medicaid payments may be 471 used. The fee shall be deposited into the Grants and Donations 472 Trust Fund and shall be accounted for separately as a Medicaid 473 nursing home overpayment account. These fees shall be used at 474 the sole discretion of the agency to repay nursing home Medicaid 475 overpayments or for enhanced payments to nursing facilities as 476 specified in the General Appropriations Act or other law. 477 Payment of this fee shall not release the licensee from any 478 liability for any Medicaid overpayments, nor shall payment bar 479 the agency from seeking to recoup overpayments from the licensee 480 and any other liable party. As a condition of exercising this 481 lease bond alternative, licensees paying this fee must maintain 482 an existing lease bond through the end of the 30-month term 483 period of that bond. The agency is herein granted specific 484 authority to promulgate all rules pertaining to the 485 administration and management of this account, including 486 withdrawals from the account, subject to federal review and 487 approval. This provision shall take effect upon becoming law and 488 shall apply to any leasehold license application. The financial 489 viability of the Medicaid nursing home overpayment account shall 490 be determined by the agency through annual review of the account 491 balance and the amount of total outstanding, unpaid Medicaid 492 overpayments owing from leasehold licensees to the agency as 493 determined by final agency audits. By March 31 of each year, the 494 agency shall assess the cumulative fees collected under this 495 subparagraph, minus any amounts used to repay nursing home 496 Medicaid overpayments and amounts transferred to contribute to 497 the General Revenue Fund pursuant to s. 215.20. If the net 498 cumulative collections, minus amounts utilized to repay nursing 499 home Medicaid overpayments, exceed $25 million, the provisions 500 of this subparagraph shall not apply for the subsequent fiscal 501 year. 502 3. The leasehold licensee may meet the bond requirement 503 through other arrangements acceptable to the agency. The agency 504 is herein granted specific authority to promulgate rules 505 pertaining to lease bond arrangements. 506 4. All existing nursing facility licensees, operating the 507 facility as a leasehold, shall acquire, maintain, and provide 508 proof to the agency of the 30-month bond required in 509 subparagraph 1., above, on and after July 1, 1993, for each 510 license renewal. 511 5. It shall be the responsibility of all nursing facility 512 operators, operating the facility as a leasehold, to renew the 513 30-month bond and to provide proof of such renewal to the agency 514 annually. 515 6. Any failure of the nursing facility operator to acquire, 516 maintain, renew annually, or provide proof to the agency shall 517 be grounds for the agency to deny, revoke, and suspend the 518 facility license to operate such facility and to take any 519 further action, including, but not limited to, enjoining the 520 facility, asserting a moratorium pursuant to part II of chapter 521 408, or applying for a receiver, deemed necessary to ensure 522 compliance with this section and to safeguard and protect the 523 health, safety, and welfare of the facility’s residents. A lease 524 agreement required as a condition of bond financing or 525 refinancing under s. 154.213 by a health facilities authority or 526 required under s. 159.30 by a county or municipality is not a 527 leasehold for purposes of this paragraph and is not subject to 528 the bond requirement of this paragraph. 529 Section 8. Subsection (11) is added to section 409.904, 530 Florida Statutes, to read: 531 409.904 Optional payments for eligible persons.—The agency 532 may make payments for medical assistance and related services on 533 behalf of the following persons who are determined to be 534 eligible subject to the income, assets, and categorical 535 eligibility tests set forth in federal and state law. Payment on 536 behalf of these Medicaid eligible persons is subject to the 537 availability of moneys and any limitations established by the 538 General Appropriations Act or chapter 216. 539 (11) Subject to federal waiver approval, a person diagnosed 540 with acquired immune deficiency syndrome (AIDS) who has an AIDS 541 related opportunistic infection and is at risk of 542 hospitalization as determined by the agency and whose income is 543 at or below 300 percent of the Federal Benefit Rate. 544 Section 9. Subsections (2) and (14) of section 409.908, 545 Florida Statutes, are amended to read: 546 409.908 Reimbursement of Medicaid providers.—Subject to 547 specific appropriations, the agency shall reimburse Medicaid 548 providers, in accordance with state and federal law, according 549 to methodologies set forth in the rules of the agency and in 550 policy manuals and handbooks incorporated by reference therein. 551 These methodologies may include fee schedules, reimbursement 552 methods based on cost reporting, negotiated fees, competitive 553 bidding pursuant to s. 287.057, and other mechanisms the agency 554 considers efficient and effective for purchasing services or 555 goods on behalf of recipients. If a provider is reimbursed based 556 on cost reporting and submits a cost report late and that cost 557 report would have been used to set a lower reimbursement rate 558 for a rate semester, then the provider’s rate for that semester 559 shall be retroactively calculated using the new cost report, and 560 full payment at the recalculated rate shall be effected 561 retroactively. Medicare-granted extensions for filing cost 562 reports, if applicable, shall also apply to Medicaid cost 563 reports. Payment for Medicaid compensable services made on 564 behalf of Medicaid eligible persons is subject to the 565 availability of moneys and any limitations or directions 566 provided for in the General Appropriations Act or chapter 216. 567 Further, nothing in this section shall be construed to prevent 568 or limit the agency from adjusting fees, reimbursement rates, 569 lengths of stay, number of visits, or number of services, or 570 making any other adjustments necessary to comply with the 571 availability of moneys and any limitations or directions 572 provided for in the General Appropriations Act, provided the 573 adjustment is consistent with legislative intent. 574 (2)(a)1. Reimbursement to nursing homes licensed under part 575 II of chapter 400 and state-owned-and-operated intermediate care 576 facilities for the developmentally disabled licensed under part 577 VIII of chapter 400 must be made prospectively. 578 2. Unless otherwise limited or directed in the General 579 Appropriations Act, reimbursement to hospitals licensed under 580 part I of chapter 395 for the provision of swing-bed nursing 581 home services must be made on the basis of the average statewide 582 nursing home payment, and reimbursement to a hospital licensed 583 under part I of chapter 395 for the provision of skilled nursing 584 services must be made on the basis of the average nursing home 585 payment for those services in the county in which the hospital 586 is located. When a hospital is located in a county that does not 587 have any community nursing homes, reimbursement shall be 588 determined by averaging the nursing home payments in counties 589 that surround the county in which the hospital is located. 590 Reimbursement to hospitals, including Medicaid payment of 591 Medicare copayments, for skilled nursing services shall be 592 limited to 30 days, unless a prior authorization has been 593 obtained from the agency. Medicaid reimbursement may be extended 594 by the agency beyond 30 days, and approval must be based upon 595 verification by the patient’s physician that the patient 596 requires short-term rehabilitative and recuperative services 597 only, in which case an extension of no more than 15 days may be 598 approved. Reimbursement to a hospital licensed under part I of 599 chapter 395 for the temporary provision of skilled nursing 600 services to nursing home residents who have been displaced as 601 the result of a natural disaster or other emergency may not 602 exceed the average county nursing home payment for those 603 services in the county in which the hospital is located and is 604 limited to the period of time which the agency considers 605 necessary for continued placement of the nursing home residents 606 in the hospital. 607 (b) Subject to any limitations or directions in the General 608 Appropriations Act, the agency shall establish and implement a 609 state Title XIX Long-Term Care Reimbursement Plan for nursing 610 home care in order to provide care and services in conformance 611 with the applicable state and federal laws, rules, regulations, 612 and quality and safety standards and to ensure that individuals 613 eligible for medical assistance have reasonable geographic 614 access to such care. 615 1. The agency shall amend the long-term care reimbursement 616 plan and cost reporting system to create direct care and 617 indirect care subcomponents of the patient care component of the 618 per diem rate. These two subcomponents together shall equal the 619 patient care component of the per diem rate. Separate prices 620cost-based ceilingsshall be calculated for each patient care 621 subcomponent, initially based on the September 2016 rate setting 622 cost reports and subsequently based on the most recently audited 623 cost report used during a rebasing year. The direct care 624 subcomponent of the per diem rate for any providers still being 625 reimbursed on a cost basis shall be limited by the cost-based 626 class ceiling, and the indirect care subcomponent may be limited 627 by the lower of the cost-based class ceiling, the target rate 628 class ceiling, or the individual provider target. The ceilings 629 and targets apply only to providers being reimbursed on a cost 630 based system. 631 2. The direct care subcomponent shall include salaries and 632 benefits of direct care staff providing nursing services 633 including registered nurses, licensed practical nurses, and 634 certified nursing assistants who deliver care directly to 635 residents in the nursing home facility, allowable therapy costs, 636 and dietary costs. This excludes nursing administration, staff 637 development, the staffing coordinator, and the administrative 638 portion of the minimum data set and care plan coordinators. The 639 direct care subcomponent also includes medically necessary 640 dental care, vision care, hearing care, and podiatric care. 641 3. All other patient care costs shall be included in the 642 indirect care cost subcomponent of the patient care per diem 643 rate, including complex medical equipment, medical supplies, and 644 other allowable ancillary costs. Costs may not be allocated 645 directly or indirectly to the direct care subcomponent from a 646 home office or management company. 647 4. On July 1 of each year, the agency shall report to the 648 Legislature direct and indirect care costs, including average 649 direct and indirect care costs per resident per facility and 650 direct care and indirect care salaries and benefits per category 651 of staff member per facility. 652 5. Before December 31, 2017, the agency must establish a 653 technical advisory council to assist in ongoing development and 654 refining of the quality measures used in the nursing home 655 prospective payment system. The advisory council must include, 656 but need not be limited to, representatives of nursing home 657 providers and other interested stakeholders.In order to offset658the cost of general and professional liability insurance, the659agency shall amend the plan to allow for interim rate660adjustments to reflect increases in the cost of general or661professional liability insurance for nursing homes. This662provision shall be implemented to the extent existing663appropriations are available.664 6. Every fourth year, the agency shall rebase nursing home 665 prospective payment rates to reflect changes in cost based on 666 the most recently audited cost report for each participating 667 provider. 668 7. A direct care supplemental payment may be made to 669 providers whose direct care hours per patient day are above the 670 80th percentile and who provide Medicaid services to a larger 671 percentage of Medicaid patients than the state average. 672 8. For the period beginning on October 1, 2017, and ending 673 on September 30, 2020, the agency shall reimburse providers the 674 greater of their September 2016 cost-based rate or their 675 prospective payment rate. Effective October 1, 2020, the agency 676 shall reimburse providers the greater of 95 percent of their 677 cost-based rate or their rebased prospective payment rate, using 678 the most recently audited cost report for each facility. This 679 subsection shall expire September 30, 2022. 680 9. Pediatric, Florida Department of Veterans Affairs, and 681 government-owned facilities are exempt from the pricing model 682 established in this subsection and shall remain on a cost-based 683 prospective payment system. Effective October 1, 2018, the 684 agency shall set rates for all facilities remaining on a cost 685 based prospective payment system using each facility’s most 686 recently audited cost report, eliminating retroactive 687 settlements. 688 689 It is the intent of the Legislature that the reimbursement plan 690 achieve the goal of providing access to health care for nursing 691 home residents who require large amounts of care while 692 encouraging diversion services as an alternative to nursing home 693 care for residents who can be served within the community. The 694 agency shall base the establishment of any maximum rate of 695 payment, whether overall or component, on the available moneys 696 as provided for in the General Appropriations Act. The agency 697 may base the maximum rate of payment on the results of 698 scientifically valid analysis and conclusions derived from 699 objective statistical data pertinent to the particular maximum 700 rate of payment. 701 (14) Medicare premiums for persons eligible for both 702 Medicare and Medicaid coverage shall be paid at the rates 703 established by Title XVIII of the Social Security Act. For 704 Medicare services rendered to Medicaid-eligible persons, 705 Medicaid shall pay Medicare deductibles and coinsurance as 706 follows: 707 (a) Medicaid’s financial obligation for deductibles and 708 coinsurance payments shall be based on Medicare allowable fees, 709 not on a provider’s billed charges. 710 (b) Medicaid will pay no portion of Medicare deductibles 711 and coinsurance when payment that Medicare has made for the 712 service equals or exceeds what Medicaid would have paid if it 713 had been the sole payor. The combined payment of Medicare and 714 Medicaid shall not exceed the amount Medicaid would have paid 715 had it been the sole payor. The Legislature finds that there has 716 been confusion regarding the reimbursement for services rendered 717 to dually eligible Medicare beneficiaries. Accordingly, the 718 Legislature clarifies that it has always been the intent of the 719 Legislature before and after 1991 that, in reimbursing in 720 accordance with fees established by Title XVIII for premiums, 721 deductibles, and coinsurance for Medicare services rendered by 722 physicians to Medicaid eligible persons, physicians be 723 reimbursed at the lesser of the amount billed by the physician 724 or the Medicaid maximum allowable fee established by the Agency 725 for Health Care Administration, as is permitted by federal law. 726 It has never been the intent of the Legislature with regard to 727 such services rendered by physicians that Medicaid be required 728 to provide any payment for deductibles, coinsurance, or 729 copayments for Medicare cost sharing, or any expenses incurred 730 relating thereto, in excess of the payment amount provided for 731 under the State Medicaid plan for such service. This payment 732 methodology is applicable even in those situations in which the 733 payment for Medicare cost sharing for a qualified Medicare 734 beneficiary with respect to an item or service is reduced or 735 eliminated. This expression of the Legislature is in 736 clarification of existing law and shall apply to payment for, 737 and with respect to provider agreements with respect to, items 738 or services furnished on or after the effective date of this 739 act. This paragraph applies to payment by Medicaid for items and 740 services furnished before the effective date of this act if such 741 payment is the subject of a lawsuit that is based on the 742 provisions of this section, and that is pending as of, or is 743 initiated after, the effective date of this act. 744 (c) Notwithstanding paragraphs (a) and (b): 745 1. Medicaid payments for Nursing Home Medicare part A 746 coinsurance are limited to the Medicaid nursing home per diem 747 rate less any amounts paid by Medicare, but only up to the 748 amount of Medicare coinsurance. The Medicaid per diem rate shall 749 be the rate in effect for the dates of service of the crossover 750 claims and may not be subsequently adjusted due to subsequent 751 per diem rate adjustments. 752 2. Medicaid shall pay all deductibles and coinsurance for 753 Medicare-eligible recipients receiving freestanding end stage 754 renal dialysis center services. 755 3. Medicaid payments for general and specialty hospital 756 inpatient services are limited to the Medicare deductible and 757 coinsurance per spell of illness. Medicaid payments for hospital 758 Medicare Part A coinsurance shall be limited to the Medicaid 759 hospital per diem rate less any amounts paid by Medicare, but 760 only up to the amount of Medicare coinsurance. Medicaid payments 761 for coinsurance shall be limited to the Medicaid per diem rate 762 in effect for the dates of service of the crossover claims and 763 may not be subsequently adjusted due to subsequent per diem 764 adjustments. 765 4. Medicaid shall pay all deductibles and coinsurance for 766 Medicare emergency transportation services provided by 767 ambulances licensed pursuant to chapter 401. 768 5. Medicaid shall pay all deductibles and coinsurance for 769 portable X-ray Medicare Part B services provided in a nursing 770 home, in an assisted living facility, or in the patient’s home. 771 Section 10. Subsection (4) of section 409.9082, Florida 772 Statutes, is amended to read: 773 409.9082 Quality assessment on nursing home facility 774 providers; exemptions; purpose; federal approval required; 775 remedies.— 776 (4) The purpose of the nursing home facility quality 777 assessment is to ensure continued quality of care. Collected 778 assessment funds shall be used to obtain federal financial 779 participation through the Medicaid program to make Medicaid 780 payments for nursing home facility services up to the amount of 781 nursing home facility Medicaid rates as calculated in accordance 782 with the approved state Medicaid plan in effect on December 31, 783 2007. The quality assessment and federal matching funds shall be 784 used exclusively for the following purposes and in the following 785 order of priority: 786 (a) To reimburse the Medicaid share of the quality 787 assessment as a pass-through, Medicaid-allowable cost; 788 (b) To increase to each nursing home facility’s Medicaid 789 rate, as needed, an amount that restores rate reductions 790 effective on or after January 1, 2008, as provided in the 791 General Appropriations Act; and 792 (c) To partially fund the quality incentive payment program 793 for nursing facilities that exceed quality benchmarksincrease794each nursing home facility’s Medicaid rate that accounts for the795portion of the total assessment not included in paragraphs (a)796and (b) which begins a phase-in to a pricing model for the797operating cost component. 798 Section 11. Section 409.909, Florida Statutes, is amended 799 to read: 800 409.909 Statewide Medicaid Residency Program.— 801 (1) The Statewide Medicaid Residency Program is established 802 to improve the quality of care and access to care for Medicaid 803 recipients, expand graduate medical education on an equitable 804 basis, and increase the supply of highly trained physicians 805 statewide. The agency shall make payments to hospitals licensed 806 under part I of chapter 395 and to qualifying institutions as 807 defined in paragraph (2)(c) for graduate medical education 808 associated with the Medicaid program. This system of payments is 809 designed to generate federal matching funds under Medicaid and 810 distribute the resulting funds to participating hospitals on a 811 quarterly basis in each fiscal year for which an appropriation 812 is made. 813 (2) On or before September 15 of each year, the agency 814 shall calculate an allocation fraction to be used for 815 distributing funds to participating hospitals and to qualifying 816 institutions as defined in paragraph (2)(c). On or before the 817 final business day of each quarter of a state fiscal year, the 818 agency shall distribute to each participating hospital one 819 fourth of that hospital’s annual allocation calculated under 820 subsection (4). The allocation fraction for each participating 821 hospital is based on the hospital’s number of full-time 822 equivalent residents and the amount of its Medicaid payments. As 823 used in this section, the term: 824 (a) “Full-time equivalent,” or “FTE,” means a resident who 825 is in his or her residency period, with the initial residency 826 period defined as the minimum number of years of training 827 required before the resident may become eligible for board 828 certification by the American Osteopathic Association Bureau of 829 Osteopathic Specialists or the American Board of Medical 830 Specialties in the specialty in which he or she first began 831 training, not to exceed 5 years. The residency specialty is 832 defined as reported using the current residency type codes in 833 the Intern and Resident Information System (IRIS), required by 834 Medicare. A resident training beyond the initial residency 835 period is counted as 0.5 FTE, unless his or her chosen specialty 836 is in primary care, in which case the resident is counted as 1.0 837 FTE. For the purposes of this section, primary care specialties 838 include: 839 1. Family medicine; 840 2. General internal medicine; 841 3. General pediatrics; 842 4. Preventive medicine; 843 5. Geriatric medicine; 844 6. Osteopathic general practice; 845 7. Obstetrics and gynecology; 846 8. Emergency medicine; 847 9. General surgery; and 848 10. Psychiatry. 849 (b) “Medicaid payments” means the estimated total payments 850 for reimbursing a hospital for direct inpatient services for the 851 fiscal year in which the allocation fraction is calculated based 852 on the hospital inpatient appropriation and the parameters for 853 the inpatient diagnosis-related group base rate, including 854 applicable intergovernmental transfers, specified in the General 855 Appropriations Act, as determined by the agency. Effective July 856 1, 2017, the term “Medicaid payments” means the estimated total 857 payments for reimbursing a hospital and qualifying institutions 858 as defined in paragraph (2)(c) for direct inpatient and 859 outpatient services for the fiscal year in which the allocation 860 fraction is calculated based on the hospital inpatient 861 appropriation and outpatient appropriation and the parameters 862 for the inpatient diagnosis-related group base rate, including 863 applicable intergovernmental transfers, specified in the General 864 Appropriations Act, as determined by the agency. 865 (c) “Qualifying institution” means a federally Qualified 866 Health Center holding an Accreditation Council for Graduate 867 Medical Education institutional accreditation. 868 (d) “Resident” means a medical intern, fellow, or resident 869 enrolled in a program accredited by the Accreditation Council 870 for Graduate Medical Education, the American Association of 871 Colleges of Osteopathic Medicine, or the American Osteopathic 872 Association at the beginning of the state fiscal year during 873 which the allocation fraction is calculated, as reported by the 874 hospital to the agency. 875 (3) The agency shall use the following formula to calculate 876 a participating hospital’s and qualifying institution’s 877 allocation fraction: 878 879 HAF=[0.9 x (HFTE/TFTE)] + [0.1 x (HMP/TMP)] 880 881 Where: 882 HAF=A hospital’s and qualifying institution’s allocation 883 fraction. 884 HFTE=A hospital’s and qualifying institution’s total number 885 of FTE residents. 886 TFTE=The total FTE residents for all participating 887 hospitals and qualifying institutions. 888 HMP=A hospital’s and qualifying institution’s Medicaid 889 payments. 890 TMP=The total Medicaid payments for all participating 891 hospitals and qualifying institutions. 892 893 (4) A hospital’s and qualifying institution’s annual 894 allocation shall be calculated by multiplying the funds 895 appropriated for the Statewide Medicaid Residency Program in the 896 General Appropriations Act by that hospital’s and qualifying 897 institution’s allocation fraction. If the calculation results in 898 an annual allocation that exceeds two times the average per FTE 899 resident amount for all hospitals and qualifying institutions, 900 the hospital’s and qualifying institution’s annual allocation 901 shall be reduced to a sum equaling no more than two times the 902 average per FTE resident. The funds calculated for that hospital 903 and qualifying institution in excess of two times the average 904 per FTE resident amount for all hospitals and qualifying 905 institutions shall be redistributed to participating hospitals 906 and qualifying institutions whose annual allocation does not 907 exceed two times the average per FTE resident amount for all 908 hospitals and qualifying institutions, using the same 909 methodology and payment schedule specified in this section. 910 (5) The Graduate Medical Education Startup Bonus Program is 911 established to provide resources for the education and training 912 of physicians in specialties which are in a statewide supply 913 and-demand deficit. Hospitals and qualifying institutions as 914 defined in paragraph (2)(c) eligible for participation in 915 subsection (1) are eligible to participate in the Graduate 916 Medical Education Startup Bonus Program established under this 917 subsection. Notwithstanding subsection (4) or an FTE’s residency 918 period, and in any state fiscal year in which funds are 919 appropriated for the startup bonus program, the agency shall 920 allocate a $100,000 startup bonus for each newly created 921 resident position that is authorized by the Accreditation 922 Council for Graduate Medical Education or Osteopathic 923 Postdoctoral Training Institution in an initial or established 924 accredited training program that is in a physician specialty in 925 statewide supply-and-demand deficit. In any year in which 926 funding is not sufficient to provide $100,000 for each newly 927 created resident position, funding shall be reduced pro rata 928 across all newly created resident positions in physician 929 specialties in statewide supply-and-demand deficit. 930 (a) Hospitals and qualifying institutions as defined in 931 paragraph (2)(c) applying for a startup bonus must submit to the 932 agency by March 1 their Accreditation Council for Graduate 933 Medical Education or Osteopathic Postdoctoral Training 934 Institution approval validating the new resident positions 935 approved on or after March 2 of the prior fiscal year through 936 March 1 of the current fiscal year for the physician specialties 937 identified in a statewide supply-and-demand deficit as provided 938 in the current fiscal year’s General Appropriations Act. An 939 applicant hospital or qualifying institution as defined in 940 paragraph (2)(c) may validate a change in the number of 941 residents by comparing the number in the prior period 942 Accreditation Council for Graduate Medical Education or 943 Osteopathic Postdoctoral Training Institution approval to the 944 number in the current year. 945 (b) Any unobligated startup bonus funds on April 15 of each 946 fiscal year shall be proportionally allocated to hospitals and 947 to qualifying institutions as defined in paragraph (2)(c) 948 participating under subsection (3) for existing FTE residents in 949 the physician specialties in statewide supply-and-demand 950 deficit. This nonrecurring allocation shall be in addition to 951 the funds allocated in subsection (4). Notwithstanding 952 subsection (4), the allocation under this subsection may not 953 exceed $100,000 per FTE resident. 954 (c) For purposes of this subsection, physician specialties 955 and subspecialties, both adult and pediatric, in statewide 956 supply-and-demand deficit are those identified in the General 957 Appropriations Act. 958 (d) The agency shall distribute all funds authorized under 959 the Graduate Medical Education Startup Bonus Program on or 960 before the final business day of the fourth quarter of a state 961 fiscal year. 962 (6) Beginning in the 2015-2016 state fiscal year, the 963 agency shall reconcile each participating hospital’s total 964 number of FTE residents calculated for the state fiscal year 2 965 years before with its most recently available Medicare cost 966 reports covering the same time period. Reconciled FTE counts 967 shall be prorated according to the portion of the state fiscal 968 year covered by a Medicare cost report. Using the same 969 definitions, methodology, and payment schedule specified in this 970 section, the reconciliation shall apply any differences in 971 annual allocations calculated under subsection (4) to the 972 current year’s annual allocations. 973 (7) The agency may adopt rules to administer this section. 974 Section 12. Paragraph (a) of subsection (2) of section 975 409.911, Florida Statutes, is amended, and paragraph (b) of that 976 subsection is republished, to read: 977 409.911 Disproportionate share program.—Subject to specific 978 allocations established within the General Appropriations Act 979 and any limitations established pursuant to chapter 216, the 980 agency shall distribute, pursuant to this section, moneys to 981 hospitals providing a disproportionate share of Medicaid or 982 charity care services by making quarterly Medicaid payments as 983 required. Notwithstanding the provisions of s. 409.915, counties 984 are exempt from contributing toward the cost of this special 985 reimbursement for hospitals serving a disproportionate share of 986 low-income patients. 987 (2) The Agency for Health Care Administration shall use the 988 following actual audited data to determine the Medicaid days and 989 charity care to be used in calculating the disproportionate 990 share payment: 991 (a) The average of the 2009, 2010, and 20112007, 2008, and9922009audited disproportionate share data to determine each 993 hospital’s Medicaid days and charity care for the 2017-2018 9942015-2016state fiscal year. 995 (b) If the Agency for Health Care Administration does not 996 have the prescribed 3 years of audited disproportionate share 997 data as noted in paragraph (a) for a hospital, the agency shall 998 use the average of the years of the audited disproportionate 999 share data as noted in paragraph (a) which is available. 1000 Section 13. Section 409.9119, Florida Statutes, is amended 1001 to read: 1002 409.9119 Disproportionate share program for specialty 1003 hospitals for children.—In addition to the payments made under 1004 s. 409.911, the Agency for Health Care Administration shall 1005 develop and implement a system under which disproportionate 1006 share payments are made to those hospitals that are separately 1007 licensed by the state as specialty hospitals for children, have 1008 a federal Centers for Medicare and Medicaid Services 1009 certification number in the 3300-3399 range, have Medicaid days 1010 that exceed 55 percent of their total days and Medicare days 1011 that are less than 5 percent of their total days, and were 1012 licensed on January 1, 2012January 1, 2000, as specialty 1013 hospitals for children. This system of payments must conform to 1014 federal requirements and must distribute funds in each fiscal 1015 year for which an appropriation is made by making quarterly 1016 Medicaid payments. Notwithstanding s. 409.915, counties are 1017 exempt from contributing toward the cost of this special 1018 reimbursement for hospitals that serve a disproportionate share 1019 of low-income patients. The agency may make disproportionate 1020 share payments to specialty hospitals for children as provided 1021 for in the General Appropriations Act. 1022 (1) Unless specified in the General Appropriations Act, the 1023 agency shall use the following formula to calculate the total 1024 amount earned for hospitals that participate in the specialty 1025 hospital for children disproportionate share program: 1026 1027 TAE = DSR x BMPD x MD 1028 1029 Where: 1030 TAE = total amount earned by a specialty hospital for 1031 children. 1032 DSR = disproportionate share rate. 1033 BMPD = base Medicaid per diem. 1034 MD = Medicaid days. 1035 1036 (2) The agency shall calculate the total additional payment 1037 for hospitals that participate in the specialty hospital for 1038 children disproportionate share program as follows: 1039 1040 TAP = (TAE x TA) ÷ STAE 1041 1042 Where: 1043 TAP = total additional payment for a specialty hospital for 1044 children. 1045 TAE = total amount earned by a specialty hospital for 1046 children. 1047 TA = total appropriation for the specialty hospital for 1048 children disproportionate share program. 1049 STAE = sum of total amount earned by each hospital that 1050 participates in the specialty hospital for children 1051 disproportionate share program. 1052 1053 (3) A hospital may not receive any payments under this 1054 section until it achieves full compliance with the applicable 1055 rules of the agency. A hospital that is not in compliance for 1056 two or more consecutive quarters may not receive its share of 1057 the funds. Any forfeited funds must be distributed to the 1058 remaining participating specialty hospitals for children that 1059 are in compliance. 1060 (4) Notwithstanding any provision of this section to the 1061 contrary, for the 2017-20182016-2017state fiscal year, for 1062 hospitals achieving full compliance under subsection (3), the 1063 agency shall make disproportionate share payments to specialty 1064 hospitals for children as provided in the 2017-20182016-20171065 General Appropriations Act. This subsection expires July 1, 2018 10662017. 1067 Section 14. Subsection (36) of section 409.913, Florida 1068 Statutes, is amended to read: 1069 409.913 Oversight of the integrity of the Medicaid 1070 program.—The agency shall operate a program to oversee the 1071 activities of Florida Medicaid recipients, and providers and 1072 their representatives, to ensure that fraudulent and abusive 1073 behavior and neglect of recipients occur to the minimum extent 1074 possible, and to recover overpayments and impose sanctions as 1075 appropriate. Beginning January 1, 2003, and each year 1076 thereafter, the agency and the Medicaid Fraud Control Unit of 1077 the Department of Legal Affairs shall submit a joint report to 1078 the Legislature documenting the effectiveness of the state’s 1079 efforts to control Medicaid fraud and abuse and to recover 1080 Medicaid overpayments during the previous fiscal year. The 1081 report must describe the number of cases opened and investigated 1082 each year; the sources of the cases opened; the disposition of 1083 the cases closed each year; the amount of overpayments alleged 1084 in preliminary and final audit letters; the number and amount of 1085 fines or penalties imposed; any reductions in overpayment 1086 amounts negotiated in settlement agreements or by other means; 1087 the amount of final agency determinations of overpayments; the 1088 amount deducted from federal claiming as a result of 1089 overpayments; the amount of overpayments recovered each year; 1090 the amount of cost of investigation recovered each year; the 1091 average length of time to collect from the time the case was 1092 opened until the overpayment is paid in full; the amount 1093 determined as uncollectible and the portion of the uncollectible 1094 amount subsequently reclaimed from the Federal Government; the 1095 number of providers, by type, that are terminated from 1096 participation in the Medicaid program as a result of fraud and 1097 abuse; and all costs associated with discovering and prosecuting 1098 cases of Medicaid overpayments and making recoveries in such 1099 cases. The report must also document actions taken to prevent 1100 overpayments and the number of providers prevented from 1101 enrolling in or reenrolling in the Medicaid program as a result 1102 of documented Medicaid fraud and abuse and must include policy 1103 recommendations necessary to prevent or recover overpayments and 1104 changes necessary to prevent and detect Medicaid fraud. All 1105 policy recommendations in the report must include a detailed 1106 fiscal analysis, including, but not limited to, implementation 1107 costs, estimated savings to the Medicaid program, and the return 1108 on investment. The agency must submit the policy recommendations 1109 and fiscal analyses in the report to the appropriate estimating 1110 conference, pursuant to s. 216.137, by February 15 of each year. 1111 The agency and the Medicaid Fraud Control Unit of the Department 1112 of Legal Affairs each must include detailed unit-specific 1113 performance standards, benchmarks, and metrics in the report, 1114 including projected cost savings to the state Medicaid program 1115 during the following fiscal year. 1116 (36)At least three times a year,The agency mayshall1117 provide to a sample ofeachMedicaid recipientsrecipientor 1118 their representatives through the distribution of explanations 1119his or her representativean explanationof benefits information 1120 about services reimbursed by the Medicaid program for goods and 1121 services to such recipients, includingin the form of a letter1122that is mailed to the most recent address of the recipient on1123the record with the Department of Children and Families. The1124explanation of benefits must include the patient’s name, the1125name of the health care provider and the address of the location1126where the service was provided, a description of all services1127billed to Medicaid in terminology that should be understood by a1128reasonable person, andinformation on how to report 1129 inappropriate or incorrect billing to the agency or other law 1130 enforcement entities for review or investigation. At least once1131a year,the letter also must includeinformation on how to 1132 report criminal Medicaid fraud to,the Medicaid Fraud Control 1133 Unit’s toll-free hotline number, and information about the 1134 rewards available under s. 409.9203. The explanation of benefits 1135 may not be mailed for Medicaid independent laboratory services 1136 as described in s. 409.905(7) or for Medicaid certified match 1137 services as described in ss. 409.9071 and 1011.70. 1138 Section 15. Paragraph (e) of subsection (1) of section 1139 409.975, Florida Statutes, is amended, and subsection (7) is 1140 added to that section, to read: 1141 409.975 Managed care plan accountability.—In addition to 1142 the requirements of s. 409.967, plans and providers 1143 participating in the managed medical assistance program shall 1144 comply with the requirements of this section. 1145 (1) PROVIDER NETWORKS.—Managed care plans must develop and 1146 maintain provider networks that meet the medical needs of their 1147 enrollees in accordance with standards established pursuant to 1148 s. 409.967(2)(c). Except as provided in this section, managed 1149 care plans may limit the providers in their networks based on 1150 credentials, quality indicators, and price. 1151 (e) Each managed care plan maymustoffer a network 1152 contract to each home medical equipment and supplies provider in 1153 the region which meets quality and fraud prevention and 1154 detection standards established by the plan and which agrees to 1155 accept the lowest price previously negotiated between the plan 1156 and another such provider. 1157 (7) SUBSTANCE ABUSE AND MENTAL HEALTH (SAMH) SAFETY NET 1158 NETWORK.— 1159 (a) The agency shall contract with the Substance Abuse and 1160 Mental Health (SAMH) Safety Net Network, established under s. 1161 394.9082(11), to plan, coordinate, and contract for delivering 1162 certain community mental health and substance abuse services, 1163 thereby improving access to behavioral health care, promoting 1164 the continuity of such services, and supporting efficient and 1165 effective delivery of such services under this section. The 1166 contract must require managing entities to provide specified 1167 services to Medicaid-eligible individuals with specified 1168 behaviors, diagnoses, or addictions. 1169 (b) Before contracting, the agency must conduct a 1170 comprehensive readiness assessment to ensure that the SAMH 1171 Safety Net Network has the necessary infrastructure, financial 1172 resources, and relevant experience to implement the contract. 1173 The agency and the department shall develop performance measures 1174 to evaluate the impact of the SAMH Safety Net Network and to 1175 determine the adequacy, timeliness, and quality of the services 1176 provided for specified target populations and the efficiency of 1177 the services in addressing mental health and substance use 1178 disorders within a community. 1179 (c) The agency, in consultation with the department and 1180 managing entities, shall determine the rates for services added 1181 to the state Medicaid plan. The rates shall be developed based 1182 on the full cost of the services and reasonable administrative 1183 costs for providers and managing entities. 1184 Section 16. Subsections (1) and (2) of section 409.979, 1185 Florida Statutes, are amended to read: 1186 409.979 Eligibility.— 1187 (1) PREREQUISITE CRITERIA FOR ELIGIBILITY.—Medicaid 1188 recipients who meet all of the following criteria are eligible 1189 to receive long-term care services and must receive long-term 1190 care services by participating in the long-term care managed 1191 care program. The recipient must be: 1192 (a) Sixty-five years of age or older, or age 18 or older 1193 and eligible for Medicaid by reason of a disability. 1194 (b) Determined by the Comprehensive Assessment Review and 1195 Evaluation for Long-Term Care Services (CARES) preadmission 1196 screening program to require: 1197 1. Nursing facility care as defined in s. 409.985(3); or 1198 2. Hospital level of care for individuals diagnosed with 1199 cystic fibrosis. 1200 (2) ENROLLMENT OFFERS.—Subject to the availability of 1201 funds, the Department of Elderly Affairs shall make offers for 1202 enrollment to eligible individuals based on a wait-list 1203 prioritization. Before making enrollment offers, the agency and 1204 the Department of Elderly Affairs shall determine that 1205 sufficient funds exist to support additional enrollment into 1206 plans. 1207 (a) A Medicaid recipient enrolled in one of the following 1208 Medicaid home and community-based services waiver programs who 1209 meets the eligibility criteria established in subsection (1) is 1210 eligible to participate in the long-term care managed care 1211 program and must be transitioned into the long-term care managed 1212 care program by January 1, 2018: 1213 1. Traumatic Brain and Spinal Cord Injury Waiver. 1214 2. Adult Cystic Fibrosis Waiver. 1215 3. Project AIDS Care Waiver. 1216 (b) The agency shall seek federal approval to terminate the 1217 Traumatic Brain and Spinal Cord Injury Waiver, the Adult Cystic 1218 Fibrosis Waiver, and the Project AIDS Care Waiver once all 1219 eligible Medicaid recipients have transitioned into the long 1220 term care managed care program. 1221 Section 17. Subsection (6) of section 409.983, Florida 1222 Statutes, is amended to read: 1223 409.983 Long-term care managed care plan payment.—In 1224 addition to the payment provisions of s. 409.968, the agency 1225 shall provide payment to plans in the long-term care managed 1226 care program pursuant to this section. 1227 (6) The agency shall establish nursing-facility-specific 1228 payment rates for each licensed nursing homebased on facility1229costs adjusted for inflation and other factorsas authorized in 1230 the General Appropriations Act. Payments to long-term care 1231 managed care plans shall be reconciled, as necessary, to 1232 reimburse actual payments to nursing facilities resulting from 1233 changes in nursing home per diem rates, but may not be 1234 reconciled to actual days experienced by the long-term care 1235 managed care plans. 1236 Section 18. Subject to federal approval of the application 1237 to be a site for the Program of All-inclusive Care for the 1238 Elderly (PACE), the Agency for Health Care Administration shall 1239 contract with an additional not-for-profit organization to serve 1240 individuals and families in Miami-Dade County. The not-for 1241 profit organization must have a history of serving primarily the 1242 Hispanic population by providing primary care services, 1243 nutrition, meals, and adult day care to senior citizens. The 1244 not-for-profit organization shall leverage existing community 1245 based care providers and health care organizations to provide 1246 PACE services to frail elders who reside in Miami-Dade County. 1247 The organization is exempt from the requirements of chapter 641, 1248 Florida Statutes. The agency, in consultation with the 1249 Department of Elderly Affairs and subject to an appropriation, 1250 shall approve up to 250 initial enrollees in the additional PACE 1251 site established by this organization to serve frail elders who 1252 reside in Miami-Dade County. 1253 Section 19. Notwithstanding section 27 of chapter 2016-65, 1254 Laws of Florida, and subject to federal approval of the 1255 application to be a site for the Program of All-inclusive Care 1256 for the Elderly (PACE), the Agency for Health Care 1257 Administration shall contract with a not-for-profit 1258 organization, formed by a partnership with a not-for-profit 1259 hospital, a not-for-profit agency serving elders, and a not-for 1260 profit hospice in Leon County. The not-for-profit PACE shall 1261 serve eligible PACE enrollees in Gadsden, Jefferson, Leon, and 1262 Wakulla Counties. The Agency for Health Care Administration, in 1263 consultation with the Department of Elderly Affairs and subject 1264 to an appropriation, shall approve up to 300 initial enrollees 1265 for the additional PACE site. 1266 Section 20. Section 17 of chapter 2011-61, Laws of Florida, 1267 is amended to read: 1268 Section 17. Notwithstanding s. 430.707, Florida Statutes, 1269 and subject to federal approval of the application to be a site 1270 for the Program of All-inclusive Care for the Elderly, the 1271 Agency for Health Care Administration shall contract with one 1272 private health care organization, the sole member of which is a 1273 private, not-for-profit corporation that owns and manages health 1274 care organizations which provide comprehensive long-term care 1275 services, including nursing home, assisted living, independent 1276 housing, home care, adult day care, and care management, with a 1277 board-certified, trained geriatrician as the medical director. 1278 This organization shall provide these services to frail and 1279 elderly persons who reside in Indian River, Martin, Okeechobee, 1280 Palm Beach, and St. Lucie CountiesCounty. The organization is 1281 exempt from the requirements of chapter 641, Florida Statutes. 1282 The agency, in consultation with the Department of Elderly 1283 Affairs and subject to an appropriation, shall approve up to 150 1284 initial enrollees who reside in Palm Beach County and up to 150 1285 initial enrollees who reside in Martin County in the Program of 1286 All-inclusive Care for the Elderly established by this 1287 organization to serve elderly personswho reside in Palm Beach1288County. 1289 Section 21. Effective June 30, 2017, section 9 of chapter 1290 2016-65, Laws of Florida, is amended to read: 1291 Section 9. Effective July 1, 20182017, paragraph (b) of 1292 subsection (6) of section 409.905, Florida Statutes, is amended 1293 to read: 1294 409.905 Mandatory Medicaid services.—The agency may make 1295 payments for the following services, which are required of the 1296 state by Title XIX of the Social Security Act, furnished by 1297 Medicaid providers to recipients who are determined to be 1298 eligible on the dates on which the services were provided. Any 1299 service under this section shall be provided only when medically 1300 necessary and in accordance with state and federal law. 1301 Mandatory services rendered by providers in mobile units to 1302 Medicaid recipients may be restricted by the agency. Nothing in 1303 this section shall be construed to prevent or limit the agency 1304 from adjusting fees, reimbursement rates, lengths of stay, 1305 number of visits, number of services, or any other adjustments 1306 necessary to comply with the availability of moneys and any 1307 limitations or directions provided for in the General 1308 Appropriations Act or chapter 216. 1309 (6) HOSPITAL OUTPATIENT SERVICES.— 1310 (b) The agency shall implement a prospective payment 1311 methodology for establishing reimbursement rates for outpatient 1312 hospital services. Rates shall be calculated annually and take 1313 effect July 1, 20182017, and July 1 of each year thereafter. 1314 The methodology shall categorize the amount and type of services 1315 used in various ambulatory visits which group together 1316 procedures and medical visits that share similar characteristics 1317 and resource utilization. 1318 1. Adjustments may not be made to the rates after July 31 1319 of the state fiscal year in which the rates take effect. 1320 2. Errors in source data or calculations discovered after 1321 July 31 of each state fiscal year must be reconciled in a 1322 subsequent rate period. However, the agency may not make any 1323 adjustment to a hospital’s reimbursement more than 5 years after 1324 a hospital is notified of an audited rate established by the 1325 agency. The prohibition against adjustments more than 5 years 1326 after notification is remedial and applies to actions by 1327 providers involving Medicaid claims for hospital services. 1328 Hospital reimbursement is subject to such limits or ceilings as 1329 may be established in law or described in the agency’s hospital 1330 reimbursement plan. Specific exemptions to the limits or 1331 ceilings may be provided in the General Appropriations Act. 1332 Section 22. Section 29 of chapter 2016-65, Laws of Florida, 1333 is amended to read: 1334 Section 29. Subject to federal approval of the application 1335 to be a site for the Program of All-inclusive Care for the 1336 Elderly (PACE), the Agency for Health Care Administration shall 1337 contract with one private, not-for-profit hospice organization 1338 located in Lake County which operates health care organizations 1339 licensed in Hospice Areas 7B and 3E and which provides 1340 comprehensive services, including hospice and palliative care, 1341 to frail elders who reside in these service areas. The 1342 organization is exempt from the requirements of chapter 641, 1343 Florida Statutes. The agency, in consultation with the 1344 Department of Elderly Affairs and subject to the appropriation 1345 of funds by the Legislature, shall approve up to 150 initial 1346 enrollees in the Program of All-inclusive Care for the Elderly 1347 established by the organization to serve frail elders who reside 1348 in Hospice Service Areas 7B and 3E. The agency, in consultation 1349 with the department and subject to an appropriation, shall 1350 approve up to 150 enrollees in the Program of All-inclusive Care 1351 for the Elderly established by this organization to serve frail 1352 elders who reside in Hospice Service Area 7C. 1353 Section 23. Subject to federal approval of the application 1354 to be a site for the Program of All-inclusive Care for the 1355 Elderly (PACE), the Agency for Health Care Administration shall 1356 contract with one not-for-profit organization that satisfies 1357 each of the following conditions: 1358 (1) The organization is exempt from federal income taxation 1359 as an entity described in s. 501(c)(3) of the Internal Revenue 1360 Code of 1986, as amended; 1361 (2) The organization is licensed pursuant to part IV of 1362 chapter 400, Florida Statutes, to provide hospice services in 1363 the Agency for Health Care Administration Areas 3 and 4 and 1364 operates inpatient hospice care centers in each of the following 1365 counties within those regions: Alachua, Citrus, Clay, Columbia, 1366 and Putnam; 1367 (3) The organization has more than 30 years of experience 1368 as a licensed hospice provider in this state; and 1369 (4) The organization is affiliated, through common 1370 ownership or control, with other not-for-profit organizations 1371 licensed by the agency to provide home health services, to 1372 operate a nursing home, and to operate an assisted living 1373 facility. 1374 1375 The approved not-for-profit organization shall provide PACE 1376 services to frail and elderly persons who reside in Alachua 1377 County. The organization is exempt from the requirements of 1378 chapter 641, Florida Statutes. The agency, in consultation with 1379 the Department of Elder Affairs and subject to an appropriation, 1380 shall approve up to 150 initial enrollees in the PACE site 1381 established by this organization to serve frail and elderly 1382 persons who reside in Alachua County. 1383 Section 24. Subject to federal approval of the application 1384 to be a site for the Program of All-inclusive Care for the 1385 Elderly (PACE), the Agency for Health Care Administration shall 1386 contract with an organization located in Miami-Dade County that 1387 owns and operates primary care medical centers in South Florida. 1388 The organization shall leverage its existing community-based 1389 care providers to provide PACE services to frail elders who 1390 reside in Broward, Miami-Dade, and Palm Beach Counties. The 1391 organization is exempt from the requirements of chapter 641, 1392 Florida Statutes. The agency, in consultation with the 1393 Department of Elderly Affairs and subject to an appropriation of 1394 funds by the Legislature, shall approve up to 300 initial 1395 enrollees in the PACE site established by the organization for 1396 frail elders who reside in Broward, Miami-Dade, and Palm Beach 1397 Counties. The agency may seek any necessary waiver or state plan 1398 amendments to implement this section. 1399 Section 25. Except as otherwise expressly provided in this 1400 act and except for this section, which shall take effect upon 1401 becoming a law, this act shall take effect July 1, 2017.