Bill Text: FL S1484 | 2010 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Medicaid [WPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2010-05-28 - Approved by Governor; Chapter No. 2010-144 [S1484 Detail]

Download: Florida-2010-S1484-Comm_Sub.html
 
Florida Senate - 2010                      CS for CS for SB 1484 
 
By the Policy and Steering Committee on Ways and Means; the 
Committee on Health and Human Services Appropriations; and 
Senator Peaden 
576-03795-10                                          20101484c2 
1                        A bill to be entitled 
2         An act relating to Medicaid; amending s. 409.912, 
3         F.S.; authorizing the Agency for Health Care 
4         Administration to contract with an entity for the 
5         provision of comprehensive behavioral health care 
6         services to certain Medicaid recipients who are not 
7         enrolled in a Medicaid managed care plan or a Medicaid 
8         provider service network under certain circumstances; 
9         requiring the agency to impose a fine against a person 
10         under contract with the agency who violates certain 
11         provisions; requiring an entity that contracts with 
12         the agency as a managed care plan to post a surety 
13         bond with the agency or maintain an account of a 
14         specified sum; requiring the agency to pursue the 
15         entity if the entity terminates the contract with the 
16         agency before the end date of the contract; amending 
17         s. 409.91211, F.S.; extending by 3 years the statewide 
18         implementation of an enhanced service delivery system 
19         for the Florida Medicaid program; providing for the 
20         expansion of the pilot project into counties that have 
21         two or more plans and the capacity to serve the 
22         designated population; requiring that the agency 
23         provide certain specified data to the recipient when 
24         selecting a capitated managed care plan; revising 
25         certain requirements for entities performing choice 
26         counseling for recipients; requiring the agency to 
27         provide behavioral health care services to Medicaid 
28         eligible children; extending a date by which the 
29         behavioral health care services will be delivered to 
30         children; deleting a provision under which certain 
31         Medicaid recipients who are not currently enrolled in 
32         a capitated managed care plan upon implementation are 
33         not eligible for specified services for the amount of 
34         time that the recipients do not enroll in a capitated 
35         managed care network; authorizing the agency to extend 
36         the time to continue operation of the pilot program; 
37         requiring that the agency seek public input on 
38         extending and expanding the managed care pilot program 
39         and post certain information on its website; amending 
40         s. 409.9122, F.S.; providing that time allotted to any 
41         Medicaid recipient for the selection of, enrollment 
42         in, or disenrollment from a managed care plan or 
43         MediPass is tolled throughout any month in which the 
44         enrollment broker or choice counseling provider 
45         adversely affects a beneficiary’s ability to access 
46         choice counseling or enrollment broker services by its 
47         failure to comply with the terms and conditions of its 
48         contract with the agency or has otherwise acted or 
49         failed to act in a manner that the agency deems likely 
50         to jeopardize its ability to perform certain assigned 
51         responsibilities; requiring the agency to incorporate 
52         certain provisions after a specified date in its 
53         contracts related to sanctions or fines for any action 
54         or the failure to act on the part of an enrollment 
55         broker or choice counselor provider; providing an 
56         effective date. 
57 
58  Be It Enacted by the Legislature of the State of Florida: 
59 
60         Section 1. Paragraph (b) of subsection (4) of section 
61  409.912, Florida Statutes, is amended, paragraph (d) of 
62  subsection (4) of that section is reenacted, present subsections 
63  (23) through (53) of that section are renumbered as subsections 
64  (24) through (54), respectively, a new subsection (23) is added 
65  to that section, and present subsections (21) and (22) of that 
66  section are amended, to read: 
67         409.912 Cost-effective purchasing of health care.—The 
68  agency shall purchase goods and services for Medicaid recipients 
69  in the most cost-effective manner consistent with the delivery 
70  of quality medical care. To ensure that medical services are 
71  effectively utilized, the agency may, in any case, require a 
72  confirmation or second physician’s opinion of the correct 
73  diagnosis for purposes of authorizing future services under the 
74  Medicaid program. This section does not restrict access to 
75  emergency services or poststabilization care services as defined 
76  in 42 C.F.R. part 438.114. Such confirmation or second opinion 
77  shall be rendered in a manner approved by the agency. The agency 
78  shall maximize the use of prepaid per capita and prepaid 
79  aggregate fixed-sum basis services when appropriate and other 
80  alternative service delivery and reimbursement methodologies, 
81  including competitive bidding pursuant to s. 287.057, designed 
82  to facilitate the cost-effective purchase of a case-managed 
83  continuum of care. The agency shall also require providers to 
84  minimize the exposure of recipients to the need for acute 
85  inpatient, custodial, and other institutional care and the 
86  inappropriate or unnecessary use of high-cost services. The 
87  agency shall contract with a vendor to monitor and evaluate the 
88  clinical practice patterns of providers in order to identify 
89  trends that are outside the normal practice patterns of a 
90  provider’s professional peers or the national guidelines of a 
91  provider’s professional association. The vendor must be able to 
92  provide information and counseling to a provider whose practice 
93  patterns are outside the norms, in consultation with the agency, 
94  to improve patient care and reduce inappropriate utilization. 
95  The agency may mandate prior authorization, drug therapy 
96  management, or disease management participation for certain 
97  populations of Medicaid beneficiaries, certain drug classes, or 
98  particular drugs to prevent fraud, abuse, overuse, and possible 
99  dangerous drug interactions. The Pharmaceutical and Therapeutics 
100  Committee shall make recommendations to the agency on drugs for 
101  which prior authorization is required. The agency shall inform 
102  the Pharmaceutical and Therapeutics Committee of its decisions 
103  regarding drugs subject to prior authorization. The agency is 
104  authorized to limit the entities it contracts with or enrolls as 
105  Medicaid providers by developing a provider network through 
106  provider credentialing. The agency may competitively bid single 
107  source-provider contracts if procurement of goods or services 
108  results in demonstrated cost savings to the state without 
109  limiting access to care. The agency may limit its network based 
110  on the assessment of beneficiary access to care, provider 
111  availability, provider quality standards, time and distance 
112  standards for access to care, the cultural competence of the 
113  provider network, demographic characteristics of Medicaid 
114  beneficiaries, practice and provider-to-beneficiary standards, 
115  appointment wait times, beneficiary use of services, provider 
116  turnover, provider profiling, provider licensure history, 
117  previous program integrity investigations and findings, peer 
118  review, provider Medicaid policy and billing compliance records, 
119  clinical and medical record audits, and other factors. Providers 
120  shall not be entitled to enrollment in the Medicaid provider 
121  network. The agency shall determine instances in which allowing 
122  Medicaid beneficiaries to purchase durable medical equipment and 
123  other goods is less expensive to the Medicaid program than long 
124  term rental of the equipment or goods. The agency may establish 
125  rules to facilitate purchases in lieu of long-term rentals in 
126  order to protect against fraud and abuse in the Medicaid program 
127  as defined in s. 409.913. The agency may seek federal waivers 
128  necessary to administer these policies. 
129         (4) The agency may contract with: 
130         (b) An entity that is providing comprehensive behavioral 
131  health care services to certain Medicaid recipients through a 
132  capitated, prepaid arrangement pursuant to the federal waiver 
133  provided for by s. 409.905(5). Such entity must be licensed 
134  under chapter 624, chapter 636, or chapter 641, or authorized 
135  under paragraph (c) or paragraph (d), and must possess the 
136  clinical systems and operational competence to manage risk and 
137  provide comprehensive behavioral health care to Medicaid 
138  recipients. As used in this paragraph, the term “comprehensive 
139  behavioral health care services” means covered mental health and 
140  substance abuse treatment services that are available to 
141  Medicaid recipients. The secretary of the Department of Children 
142  and Family Services shall approve provisions of procurements 
143  related to children in the department’s care or custody before 
144  enrolling such children in a prepaid behavioral health plan. Any 
145  contract awarded under this paragraph must be competitively 
146  procured. In developing the behavioral health care prepaid plan 
147  procurement document, the agency shall ensure that the 
148  procurement document requires the contractor to develop and 
149  implement a plan to ensure compliance with s. 394.4574 related 
150  to services provided to residents of licensed assisted living 
151  facilities that hold a limited mental health license. Except as 
152  provided in subparagraph 8., and except in counties where the 
153  Medicaid managed care pilot program is authorized pursuant to s. 
154  409.91211, the agency shall seek federal approval to contract 
155  with a single entity meeting these requirements to provide 
156  comprehensive behavioral health care services to all Medicaid 
157  recipients not enrolled in a Medicaid managed care plan 
158  authorized under s. 409.91211, a provider service network 
159  authorized under paragraph (d), or a Medicaid health maintenance 
160  organization in an AHCA area. In an AHCA area where the Medicaid 
161  managed care pilot program is authorized pursuant to s. 
162  409.91211 in one or more counties, the agency may procure a 
163  contract with a single entity to serve the remaining counties as 
164  an AHCA area or the remaining counties may be included with an 
165  adjacent AHCA area and are subject to this paragraph. Each 
166  entity must offer a sufficient choice of providers in its 
167  network to ensure recipient access to care and the opportunity 
168  to select a provider with whom they are satisfied. The network 
169  shall include all public mental health hospitals. To ensure 
170  unimpaired access to behavioral health care services by Medicaid 
171  recipients, all contracts issued pursuant to this paragraph must 
172  require 80 percent of the capitation paid to the managed care 
173  plan, including health maintenance organizations and capitated 
174  provider service networks, to be expended for the provision of 
175  behavioral health care services. If the managed care plan 
176  expends less than 80 percent of the capitation paid for the 
177  provision of behavioral health care services, the difference 
178  shall be returned to the agency. The agency shall provide the 
179  plan with a certification letter indicating the amount of 
180  capitation paid during each calendar year for behavioral health 
181  care services pursuant to this section. The agency may reimburse 
182  for substance abuse treatment services on a fee-for-service 
183  basis until the agency finds that adequate funds are available 
184  for capitated, prepaid arrangements. 
185         1. By January 1, 2001, the agency shall modify the 
186  contracts with the entities providing comprehensive inpatient 
187  and outpatient mental health care services to Medicaid 
188  recipients in Hillsborough, Highlands, Hardee, Manatee, and Polk 
189  Counties, to include substance abuse treatment services. 
190         2. By July 1, 2003, the agency and the Department of 
191  Children and Family Services shall execute a written agreement 
192  that requires collaboration and joint development of all policy, 
193  budgets, procurement documents, contracts, and monitoring plans 
194  that have an impact on the state and Medicaid community mental 
195  health and targeted case management programs. 
196         3. Except as provided in subparagraph 8., by July 1, 2006, 
197  the agency and the Department of Children and Family Services 
198  shall contract with managed care entities in each AHCA area 
199  except area 6 or arrange to provide comprehensive inpatient and 
200  outpatient mental health and substance abuse services through 
201  capitated prepaid arrangements to all Medicaid recipients who 
202  are eligible to participate in such plans under federal law and 
203  regulation. In AHCA areas where eligible individuals number less 
204  than 150,000, the agency shall contract with a single managed 
205  care plan to provide comprehensive behavioral health services to 
206  all recipients who are not enrolled in a Medicaid health 
207  maintenance organization, a provider service network authorized 
208  under paragraph (d), or a Medicaid capitated managed care plan 
209  authorized under s. 409.91211. The agency may contract with more 
210  than one comprehensive behavioral health provider to provide 
211  care to recipients who are not enrolled in a Medicaid capitated 
212  managed care plan authorized under s. 409.91211, a provider 
213  service network authorized under paragraph (d), or a Medicaid 
214  health maintenance organization in AHCA areas where the eligible 
215  population exceeds 150,000. In an AHCA area where the Medicaid 
216  managed care pilot program is authorized pursuant to s. 
217  409.91211 in one or more counties, the agency may procure a 
218  contract with a single entity to serve the remaining counties as 
219  an AHCA area or the remaining counties may be included with an 
220  adjacent AHCA area and shall be subject to this paragraph. 
221  Contracts for comprehensive behavioral health providers awarded 
222  pursuant to this section shall be competitively procured. Both 
223  for-profit and not-for-profit corporations are eligible to 
224  compete. Managed care plans contracting with the agency under 
225  subsection (3) or paragraph (d), shall provide and receive 
226  payment for the same comprehensive behavioral health benefits as 
227  provided in AHCA rules, including handbooks incorporated by 
228  reference. In AHCA area 11, the agency shall contract with at 
229  least two comprehensive behavioral health care providers to 
230  provide behavioral health care to recipients in that area who 
231  are enrolled in, or assigned to, the MediPass program. One of 
232  the behavioral health care contracts must be with the existing 
233  provider service network pilot project, as described in 
234  paragraph (d), for the purpose of demonstrating the cost 
235  effectiveness of the provision of quality mental health services 
236  through a public hospital-operated managed care model. Payment 
237  shall be at an agreed-upon capitated rate to ensure cost 
238  savings. Of the recipients in area 11 who are assigned to 
239  MediPass under s. 409.9122(2)(k), a minimum of 50,000 of those 
240  MediPass-enrolled recipients shall be assigned to the existing 
241  provider service network in area 11 for their behavioral care. 
242         4. By October 1, 2003, the agency and the department shall 
243  submit a plan to the Governor, the President of the Senate, and 
244  the Speaker of the House of Representatives which provides for 
245  the full implementation of capitated prepaid behavioral health 
246  care in all areas of the state. 
247         a. Implementation shall begin in 2003 in those AHCA areas 
248  of the state where the agency is able to establish sufficient 
249  capitation rates. 
250         b. If the agency determines that the proposed capitation 
251  rate in any area is insufficient to provide appropriate 
252  services, the agency may adjust the capitation rate to ensure 
253  that care will be available. The agency and the department may 
254  use existing general revenue to address any additional required 
255  match but may not over-obligate existing funds on an annualized 
256  basis. 
257         c. Subject to any limitations provided in the General 
258  Appropriations Act, the agency, in compliance with appropriate 
259  federal authorization, shall develop policies and procedures 
260  that allow for certification of local and state funds. 
261         5. Children residing in a statewide inpatient psychiatric 
262  program, or in a Department of Juvenile Justice or a Department 
263  of Children and Family Services residential program approved as 
264  a Medicaid behavioral health overlay services provider may not 
265  be included in a behavioral health care prepaid health plan or 
266  any other Medicaid managed care plan pursuant to this paragraph. 
267         6. In converting to a prepaid system of delivery, the 
268  agency shall in its procurement document require an entity 
269  providing only comprehensive behavioral health care services to 
270  prevent the displacement of indigent care patients by enrollees 
271  in the Medicaid prepaid health plan providing behavioral health 
272  care services from facilities receiving state funding to provide 
273  indigent behavioral health care, to facilities licensed under 
274  chapter 395 which do not receive state funding for indigent 
275  behavioral health care, or reimburse the unsubsidized facility 
276  for the cost of behavioral health care provided to the displaced 
277  indigent care patient. 
278         7. Traditional community mental health providers under 
279  contract with the Department of Children and Family Services 
280  pursuant to part IV of chapter 394, child welfare providers 
281  under contract with the Department of Children and Family 
282  Services in areas 1 and 6, and inpatient mental health providers 
283  licensed pursuant to chapter 395 must be offered an opportunity 
284  to accept or decline a contract to participate in any provider 
285  network for prepaid behavioral health services. 
286         8. All Medicaid-eligible children, except children in area 
287  1 and children in Highlands County, Hardee County, Polk County, 
288  or Manatee County of area 6, that are open for child welfare 
289  services in the HomeSafeNet system, shall receive their 
290  behavioral health care services through a specialty prepaid plan 
291  operated by community-based lead agencies through a single 
292  agency or formal agreements among several agencies. The 
293  specialty prepaid plan must result in savings to the state 
294  comparable to savings achieved in other Medicaid managed care 
295  and prepaid programs. Such plan must provide mechanisms to 
296  maximize state and local revenues. The specialty prepaid plan 
297  shall be developed by the agency and the Department of Children 
298  and Family Services. The agency may seek federal waivers to 
299  implement this initiative. Medicaid-eligible children whose 
300  cases are open for child welfare services in the HomeSafeNet 
301  system and who reside in AHCA area 10 are exempt from the 
302  specialty prepaid plan upon the development of a service 
303  delivery mechanism for children who reside in area 10 as 
304  specified in s. 409.91211(3)(dd). 
305         (d) A provider service network may be reimbursed on a fee 
306  for-service or prepaid basis. A provider service network which 
307  is reimbursed by the agency on a prepaid basis shall be exempt 
308  from parts I and III of chapter 641, but must comply with the 
309  solvency requirements in s. 641.2261(2) and meet appropriate 
310  financial reserve, quality assurance, and patient rights 
311  requirements as established by the agency. Medicaid recipients 
312  assigned to a provider service network shall be chosen equally 
313  from those who would otherwise have been assigned to prepaid 
314  plans and MediPass. The agency is authorized to seek federal 
315  Medicaid waivers as necessary to implement the provisions of 
316  this section. Any contract previously awarded to a provider 
317  service network operated by a hospital pursuant to this 
318  subsection shall remain in effect for a period of 3 years 
319  following the current contract expiration date, regardless of 
320  any contractual provisions to the contrary. A provider service 
321  network is a network established or organized and operated by a 
322  health care provider, or group of affiliated health care 
323  providers, including minority physician networks and emergency 
324  room diversion programs that meet the requirements of s. 
325  409.91211, which provides a substantial proportion of the health 
326  care items and services under a contract directly through the 
327  provider or affiliated group of providers and may make 
328  arrangements with physicians or other health care professionals, 
329  health care institutions, or any combination of such individuals 
330  or institutions to assume all or part of the financial risk on a 
331  prospective basis for the provision of basic health services by 
332  the physicians, by other health professionals, or through the 
333  institutions. The health care providers must have a controlling 
334  interest in the governing body of the provider service network 
335  organization. 
336         (21) Any entity contracting with the agency pursuant to 
337  this section to provide health care services to Medicaid 
338  recipients is prohibited from engaging in any of the following 
339  practices or activities: 
340         (a) Practices that are discriminatory, including, but not 
341  limited to, attempts to discourage participation on the basis of 
342  actual or perceived health status. 
343         (b) Activities that could mislead or confuse recipients, or 
344  misrepresent the organization, its marketing representatives, or 
345  the agency. Violations of this paragraph include, but are not 
346  limited to: 
347         1. False or misleading claims that marketing 
348  representatives are employees or representatives of the state or 
349  county, or of anyone other than the entity or the organization 
350  by whom they are reimbursed. 
351         2. False or misleading claims that the entity is 
352  recommended or endorsed by any state or county agency, or by any 
353  other organization which has not certified its endorsement in 
354  writing to the entity. 
355         3. False or misleading claims that the state or county 
356  recommends that a Medicaid recipient enroll with an entity. 
357         4. Claims that a Medicaid recipient will lose benefits 
358  under the Medicaid program, or any other health or welfare 
359  benefits to which the recipient is legally entitled, if the 
360  recipient does not enroll with the entity. 
361         (c) Granting or offering of any monetary or other valuable 
362  consideration for enrollment, except as authorized by subsection 
363  (25) (24). 
364         (d) Door-to-door solicitation of recipients who have not 
365  contacted the entity or who have not invited the entity to make 
366  a presentation. 
367         (e) Solicitation of Medicaid recipients by marketing 
368  representatives stationed in state offices unless approved and 
369  supervised by the agency or its agent and approved by the 
370  affected state agency when solicitation occurs in an office of 
371  the state agency. The agency shall ensure that marketing 
372  representatives stationed in state offices shall market their 
373  managed care plans to Medicaid recipients only in designated 
374  areas and in such a way as to not interfere with the recipients’ 
375  activities in the state office. 
376         (f) Enrollment of Medicaid recipients. 
377         (22) The agency shall may impose a fine for a violation of 
378  this section or the contract with the agency by a person or 
379  entity that is under contract with the agency. With respect to 
380  any nonwillful violation, such fine shall not exceed $2,500 per 
381  violation. In no event shall such fine exceed an aggregate 
382  amount of $10,000 for all nonwillful violations arising out of 
383  the same action. With respect to any knowing and willful 
384  violation of this section or the contract with the agency, the 
385  agency may impose a fine upon the entity in an amount not to 
386  exceed $20,000 for each such violation. In no event shall such 
387  fine exceed an aggregate amount of $100,000 for all knowing and 
388  willful violations arising out of the same action. 
389         (23)Any entity that contracts with the agency on a prepaid 
390  or fixed-sum basis as a managed care plan as defined in s. 
391  409.9122(2)(f) or s. 409.91211 shall post a surety bond with the 
392  agency in an amount that is equivalent to a 1-year guaranteed 
393  savings amount as specified in the contract. In lieu of a surety 
394  bond, the agency may establish an irrevocable account in which 
395  the vendor funds an equivalent amount over a 6-month period. The 
396  purpose of the surety bond or account is to protect the agency 
397  if the entity terminates its contract with the agency before the 
398  scheduled end date for the contract. If the contract is 
399  terminated by the vendor for any reason, the agency shall pursue 
400  a claim against the surety bond or account for an early 
401  termination fee. The early termination fee must be equal to 
402  administrative costs incurred by the state due to the early 
403  termination and the differential of the guaranteed savings based 
404  on the original contract term and the corresponding termination 
405  date. The agency shall terminate a vendor who does not reimburse 
406  the state within 30 days after any early termination involving 
407  administrative costs and requiring reimbursement of lost savings 
408  from the Medicaid program. 
409         Section 2. Subsections (1) through (6) of section 
410  409.91211, Florida Statutes, are amended to read: 
411         409.91211 Medicaid managed care pilot program.— 
412         (1)(a) The agency is authorized to seek and implement 
413  experimental, pilot, or demonstration project waivers, pursuant 
414  to s. 1115 of the Social Security Act, to create a statewide 
415  initiative to provide for a more efficient and effective service 
416  delivery system that enhances quality of care and client 
417  outcomes in the Florida Medicaid program pursuant to this 
418  section. Phase one of the demonstration shall be implemented in 
419  two geographic areas. One demonstration site shall include only 
420  Broward County. A second demonstration site shall initially 
421  include Duval County and shall be expanded to include Baker, 
422  Clay, and Nassau Counties within 1 year after the Duval County 
423  program becomes operational. The agency shall implement 
424  expansion of the program to include the remaining counties of 
425  the state and remaining eligibility groups in accordance with 
426  the process specified in the federally approved special terms 
427  and conditions numbered 11-W-00206/4, as approved by the federal 
428  Centers for Medicare and Medicaid Services on October 19, 2005, 
429  with a goal of full statewide implementation by June 30, 2014 
430  2011. 
431         (b) This waiver extension shall authority is contingent 
432  upon federal approval to preserve the low-income pool upper 
433  payment-limit funding mechanism for providers and hospitals, 
434  including a guarantee of a reasonable growth factor, a 
435  methodology to allow the use of a portion of these funds to 
436  serve as a risk pool for demonstration sites, provisions to 
437  preserve the state’s ability to use intergovernmental transfers, 
438  and provisions to protect the disproportionate share program 
439  authorized pursuant to this chapter. Upon completion of the 
440  evaluation conducted under s. 3, ch. 2005-133, Laws of Florida, 
441  The agency shall expand may request statewide expansion of the 
442  demonstration to counties that have two or more plans and that 
443  have capacity to serve the designated population projects. The 
444  agency may expand to additional counties as plan capacity is 
445  developed. Statewide phase-in to additional counties shall be 
446  contingent upon review and approval by the Legislature. Under 
447  the upper-payment-limit program, or the low-income pool as 
448  implemented by the Agency for Health Care Administration 
449  pursuant to federal waiver, the state matching funds required 
450  for the program shall be provided by local governmental entities 
451  through intergovernmental transfers in accordance with published 
452  federal statutes and regulations. The Agency for Health Care 
453  Administration shall distribute upper-payment-limit, 
454  disproportionate share hospital, and low-income pool funds 
455  according to published federal statutes, regulations, and 
456  waivers and the low-income pool methodology approved by the 
457  federal Centers for Medicare and Medicaid Services. 
458         (c) It is the intent of the Legislature that the low-income 
459  pool plan required by the terms and conditions of the Medicaid 
460  reform waiver and submitted to the federal Centers for Medicare 
461  and Medicaid Services propose the distribution of the above 
462  mentioned program funds based on the following objectives: 
463         1. Assure a broad and fair distribution of available funds 
464  based on the access provided by Medicaid participating 
465  hospitals, regardless of their ownership status, through their 
466  delivery of inpatient or outpatient care for Medicaid 
467  beneficiaries and uninsured and underinsured individuals; 
468         2. Assure accessible emergency inpatient and outpatient 
469  care for Medicaid beneficiaries and uninsured and underinsured 
470  individuals; 
471         3. Enhance primary, preventive, and other ambulatory care 
472  coverages for uninsured individuals; 
473         4. Promote teaching and specialty hospital programs; 
474         5. Promote the stability and viability of statutorily 
475  defined rural hospitals and hospitals that serve as sole 
476  community hospitals; 
477         6. Recognize the extent of hospital uncompensated care 
478  costs; 
479         7. Maintain and enhance essential community hospital care; 
480         8. Maintain incentives for local governmental entities to 
481  contribute to the cost of uncompensated care; 
482         9. Promote measures to avoid preventable hospitalizations; 
483         10. Account for hospital efficiency; and 
484         11. Contribute to a community’s overall health system. 
485         (2) The Legislature intends for the capitated managed care 
486  pilot program to: 
487         (a) Provide recipients in Medicaid fee-for-service or the 
488  MediPass program a comprehensive and coordinated capitated 
489  managed care system for all health care services specified in 
490  ss. 409.905 and 409.906. 
491         (b) Stabilize Medicaid expenditures under the pilot program 
492  compared to Medicaid expenditures in the pilot area for the 3 
493  years before implementation of the pilot program, while 
494  ensuring: 
495         1. Consumer education and choice. 
496         2. Access to medically necessary services. 
497         3. Coordination of preventative, acute, and long-term care. 
498         4. Reductions in unnecessary service utilization. 
499         (c) Provide an opportunity to evaluate the feasibility of 
500  statewide implementation of capitated managed care networks as a 
501  replacement for the current Medicaid fee-for-service and 
502  MediPass systems. 
503         (3) The agency shall have the following powers, duties, and 
504  responsibilities with respect to the pilot program: 
505         (a) To implement a system to deliver all mandatory services 
506  specified in s. 409.905 and optional services specified in s. 
507  409.906, as approved by the Centers for Medicare and Medicaid 
508  Services and the Legislature in the waiver pursuant to this 
509  section. Services to recipients under plan benefits shall 
510  include emergency services provided under s. 409.9128. 
511         (b) To implement a pilot program, including Medicaid 
512  eligibility categories specified in ss. 409.903 and 409.904, as 
513  authorized in an approved federal waiver. 
514         (c) To implement the managed care pilot program that 
515  maximizes all available state and federal funds, including those 
516  obtained through intergovernmental transfers, the low-income 
517  pool, supplemental Medicaid payments, and the disproportionate 
518  share program. Within the parameters allowed by federal statute 
519  and rule, the agency may seek options for making direct payments 
520  to hospitals and physicians employed by or under contract with 
521  the state’s medical schools for the costs associated with 
522  graduate medical education under Medicaid reform. 
523         (d) To implement actuarially sound, risk-adjusted 
524  capitation rates for Medicaid recipients in the pilot program 
525  which cover comprehensive care, enhanced services, and 
526  catastrophic care. 
527         (e) To implement policies and guidelines for phasing in 
528  financial risk for approved provider service networks that, for 
529  purposes of this paragraph, include the Children’s Medical 
530  Services Network, over a 5-year period. These policies and 
531  guidelines must include an option for a provider service network 
532  to be paid fee-for-service rates. For any provider service 
533  network established in a managed care pilot area, the option to 
534  be paid fee-for-service rates must include a savings-settlement 
535  mechanism that is consistent with s. 409.912(44). This model 
536  must be converted to a risk-adjusted capitated rate by the 
537  beginning of the sixth year of operation, and may be converted 
538  earlier at the option of the provider service network. Federally 
539  qualified health centers may be offered an opportunity to accept 
540  or decline a contract to participate in any provider network for 
541  prepaid primary care services. 
542         (f) To implement stop-loss requirements and the transfer of 
543  excess cost to catastrophic coverage that accommodates the risks 
544  associated with the development of the pilot program. 
545         (g) To recommend a process to be used by the Social 
546  Services Estimating Conference to determine and validate the 
547  rate of growth of the per-member costs of providing Medicaid 
548  services under the managed care pilot program. 
549         (h) To implement program standards and credentialing 
550  requirements for capitated managed care networks to participate 
551  in the pilot program, including those related to fiscal 
552  solvency, quality of care, and adequacy of access to health care 
553  providers. It is the intent of the Legislature that, to the 
554  extent possible, any pilot program authorized by the state under 
555  this section include any federally qualified health center, 
556  federally qualified rural health clinic, county health 
557  department, the Children’s Medical Services Network within the 
558  Department of Health, or other federally, state, or locally 
559  funded entity that serves the geographic areas within the 
560  boundaries of the pilot program that requests to participate. 
561  This paragraph does not relieve an entity that qualifies as a 
562  capitated managed care network under this section from any other 
563  licensure or regulatory requirements contained in state or 
564  federal law which would otherwise apply to the entity. The 
565  standards and credentialing requirements shall be based upon, 
566  but are not limited to: 
567         1. Compliance with the accreditation requirements as 
568  provided in s. 641.512. 
569         2. Compliance with early and periodic screening, diagnosis, 
570  and treatment screening requirements under federal law. 
571         3. The percentage of voluntary disenrollments. 
572         4. Immunization rates. 
573         5. Standards of the National Committee for Quality 
574  Assurance and other approved accrediting bodies. 
575         6. Recommendations of other authoritative bodies. 
576         7. Specific requirements of the Medicaid program, or 
577  standards designed to specifically meet the unique needs of 
578  Medicaid recipients. 
579         8. Compliance with the health quality improvement system as 
580  established by the agency, which incorporates standards and 
581  guidelines developed by the Centers for Medicare and Medicaid 
582  Services as part of the quality assurance reform initiative. 
583         9. The network’s infrastructure capacity to manage 
584  financial transactions, recordkeeping, data collection, and 
585  other administrative functions. 
586         10. The network’s ability to submit any financial, 
587  programmatic, or patient-encounter data or other information 
588  required by the agency to determine the actual services provided 
589  and the cost of administering the plan. 
590         (i) To implement a mechanism for providing information to 
591  Medicaid recipients for the purpose of selecting a capitated 
592  managed care plan. For each plan available to a recipient, the 
593  agency, at a minimum, shall ensure that the recipient is 
594  provided with: 
595         1. A list and description of the benefits provided. 
596         2. Information about cost sharing. 
597         3. A list of providers participating in the plan networks. 
598         4.3. Plan performance data, if available. 
599         4.An explanation of benefit limitations. 
600         5.Contact information, including identification of 
601  providers participating in the network, geographic locations, 
602  and transportation limitations. 
603         6.Any other information the agency determines would 
604  facilitate a recipient’s understanding of the plan or insurance 
605  that would best meet his or her needs. 
606         (j) To implement a system to ensure that there is a record 
607  of recipient acknowledgment that plan choice counseling has been 
608  provided. 
609         (k) To implement a choice counseling system to ensure that 
610  the choice counseling process and related material are designed 
611  to provide counseling through face-to-face interaction, by 
612  telephone or, and in writing and through other forms of relevant 
613  media. Materials shall be written at the fourth-grade reading 
614  level and available in a language other than English when 5 
615  percent of the county speaks a language other than English. 
616  Choice counseling shall also use language lines and other 
617  services for impaired recipients, such as TTD/TTY. 
618         (l) To implement a system that prohibits capitated managed 
619  care plans, their representatives, and providers employed by or 
620  contracted with the capitated managed care plans from recruiting 
621  persons eligible for or enrolled in Medicaid, from providing 
622  inducements to Medicaid recipients to select a particular 
623  capitated managed care plan, and from prejudicing Medicaid 
624  recipients against other capitated managed care plans. The 
625  system shall require the entity performing choice counseling to 
626  determine if the recipient has made a choice of a plan or has 
627  opted out because of duress, threats, payment to the recipient, 
628  or incentives promised to the recipient by a third party. If the 
629  choice counseling entity determines that the decision to choose 
630  a plan was unlawfully influenced or a plan violated any of the 
631  provisions of s. 409.912(21), the choice counseling entity shall 
632  immediately report the violation to the agency’s program 
633  integrity section for investigation. Verification of choice 
634  counseling by the recipient shall include a stipulation that the 
635  recipient acknowledges the provisions of this subsection. 
636         (m) To implement a choice counseling system that promotes 
637  health literacy, uses technology effectively, and provides 
638  information intended aimed to reduce minority health disparities 
639  through outreach activities for Medicaid recipients. 
640         (n) To contract with entities to perform choice counseling. 
641  The agency may establish standards and performance contracts, 
642  including standards requiring the contractor to hire choice 
643  counselors who are representative of the state’s diverse 
644  population and to train choice counselors in working with 
645  culturally diverse populations. 
646         (o) To implement eligibility assignment processes to 
647  facilitate client choice while ensuring pilot programs of 
648  adequate enrollment levels. These processes shall ensure that 
649  pilot sites have sufficient levels of enrollment to conduct a 
650  valid test of the managed care pilot program within a 2-year 
651  timeframe. 
652         (p) To implement standards for plan compliance, including, 
653  but not limited to, standards for quality assurance and 
654  performance improvement, standards for peer or professional 
655  reviews, grievance policies, and policies for maintaining 
656  program integrity. The agency shall develop a data-reporting 
657  system, seek input from managed care plans in order to establish 
658  requirements for patient-encounter reporting, and ensure that 
659  the data reported is accurate and complete. 
660         1. In performing the duties required under this section, 
661  the agency shall work with managed care plans to establish a 
662  uniform system to measure and monitor outcomes for a recipient 
663  of Medicaid services. 
664         2. The system shall use financial, clinical, and other 
665  criteria based on pharmacy, medical services, and other data 
666  that is related to the provision of Medicaid services, 
667  including, but not limited to: 
668         a. The Health Plan Employer Data and Information Set 
669  (HEDIS) or measures that are similar to HEDIS. 
670         b. Member satisfaction. 
671         c. Provider satisfaction. 
672         d. Report cards on plan performance and best practices. 
673         e. Compliance with the requirements for prompt payment of 
674  claims under ss. 627.613, 641.3155, and 641.513. 
675         f. Utilization and quality data for the purpose of ensuring 
676  access to medically necessary services, including 
677  underutilization or inappropriate denial of services. 
678         3. The agency shall require the managed care plans that 
679  have contracted with the agency to establish a quality assurance 
680  system that incorporates the provisions of s. 409.912(27) and 
681  any standards, rules, and guidelines developed by the agency. 
682         4. The agency shall establish an encounter database in 
683  order to compile data on health services rendered by health care 
684  practitioners who provide services to patients enrolled in 
685  managed care plans in the demonstration sites. The encounter 
686  database shall: 
687         a. Collect the following for each type of patient encounter 
688  with a health care practitioner or facility, including: 
689         (I) The demographic characteristics of the patient. 
690         (II) The principal, secondary, and tertiary diagnosis. 
691         (III) The procedure performed. 
692         (IV) The date and location where the procedure was 
693  performed. 
694         (V) The payment for the procedure, if any. 
695         (VI) If applicable, the health care practitioner’s 
696  universal identification number. 
697         (VII) If the health care practitioner rendering the service 
698  is a dependent practitioner, the modifiers appropriate to 
699  indicate that the service was delivered by the dependent 
700  practitioner. 
701         b. Collect appropriate information relating to prescription 
702  drugs for each type of patient encounter. 
703         c. Collect appropriate information related to health care 
704  costs and utilization from managed care plans participating in 
705  the demonstration sites. 
706         5. To the extent practicable, when collecting the data the 
707  agency shall use a standardized claim form or electronic 
708  transfer system that is used by health care practitioners, 
709  facilities, and payors. 
710         6. Health care practitioners and facilities in the 
711  demonstration sites shall electronically submit, and managed 
712  care plans participating in the demonstration sites shall 
713  electronically receive, information concerning claims payments 
714  and any other information reasonably related to the encounter 
715  database using a standard format as required by the agency. 
716         7. The agency shall establish reasonable deadlines for 
717  phasing in the electronic transmittal of full encounter data. 
718         8. The system must ensure that the data reported is 
719  accurate and complete. 
720         (q) To implement a grievance resolution process for 
721  Medicaid recipients enrolled in a capitated managed care network 
722  under the pilot program modeled after the subscriber assistance 
723  panel, as created in s. 408.7056. This process shall include a 
724  mechanism for an expedited review of no greater than 24 hours 
725  after notification of a grievance if the life of a Medicaid 
726  recipient is in imminent and emergent jeopardy. 
727         (r) To implement a grievance resolution process for health 
728  care providers employed by or contracted with a capitated 
729  managed care network under the pilot program in order to settle 
730  disputes among the provider and the managed care network or the 
731  provider and the agency. 
732         (s) To implement criteria in an approved federal waiver to 
733  designate health care providers as eligible to participate in 
734  the pilot program. These criteria must include at a minimum 
735  those criteria specified in s. 409.907. 
736         (t) To use health care provider agreements for 
737  participation in the pilot program. 
738         (u) To require that all health care providers under 
739  contract with the pilot program be duly licensed in the state, 
740  if such licensure is available, and meet other criteria as may 
741  be established by the agency. These criteria shall include at a 
742  minimum those criteria specified in s. 409.907. 
743         (v) To ensure that managed care organizations work 
744  collaboratively with other state or local governmental programs 
745  or institutions for the coordination of health care to eligible 
746  individuals receiving services from such programs or 
747  institutions. 
748         (w) To implement procedures to minimize the risk of 
749  Medicaid fraud and abuse in all plans operating in the Medicaid 
750  managed care pilot program authorized in this section. 
751         1. The agency shall ensure that applicable provisions of 
752  this chapter and chapters 414, 626, 641, and 932 which relate to 
753  Medicaid fraud and abuse are applied and enforced at the 
754  demonstration project sites. 
755         2. Providers must have the certification, license, and 
756  credentials that are required by law and waiver requirements. 
757         3. The agency shall ensure that the plan is in compliance 
758  with s. 409.912(21) and (22). 
759         4. The agency shall require that each plan establish 
760  functions and activities governing program integrity in order to 
761  reduce the incidence of fraud and abuse. Plans must report 
762  instances of fraud and abuse pursuant to chapter 641. 
763         5. The plan shall have written administrative and 
764  management arrangements or procedures, including a mandatory 
765  compliance plan, which are designed to guard against fraud and 
766  abuse. The plan shall designate a compliance officer who has 
767  sufficient experience in health care. 
768         6.a. The agency shall require all managed care plan 
769  contractors in the pilot program to report all instances of 
770  suspected fraud and abuse. A failure to report instances of 
771  suspected fraud and abuse is a violation of law and subject to 
772  the penalties provided by law. 
773         b. An instance of fraud and abuse in the managed care plan, 
774  including, but not limited to, defrauding the state health care 
775  benefit program by misrepresentation of fact in reports, claims, 
776  certifications, enrollment claims, demographic statistics, or 
777  patient-encounter data; misrepresentation of the qualifications 
778  of persons rendering health care and ancillary services; bribery 
779  and false statements relating to the delivery of health care; 
780  unfair and deceptive marketing practices; and false claims 
781  actions in the provision of managed care, is a violation of law 
782  and subject to the penalties provided by law. 
783         c. The agency shall require that all contractors make all 
784  files and relevant billing and claims data accessible to state 
785  regulators and investigators and that all such data is linked 
786  into a unified system to ensure consistent reviews and 
787  investigations. 
788         (x) To develop and provide actuarial and benefit design 
789  analyses that indicate the effect on capitation rates and 
790  benefits offered in the pilot program over a prospective 5-year 
791  period based on the following assumptions: 
792         1. Growth in capitation rates which is limited to the 
793  estimated growth rate in general revenue. 
794         2. Growth in capitation rates which is limited to the 
795  average growth rate over the last 3 years in per-recipient 
796  Medicaid expenditures. 
797         3. Growth in capitation rates which is limited to the 
798  growth rate of aggregate Medicaid expenditures between the 2003 
799  2004 fiscal year and the 2004-2005 fiscal year. 
800         (y) To develop a mechanism to require capitated managed 
801  care plans to reimburse qualified emergency service providers, 
802  including, but not limited to, ambulance services, in accordance 
803  with ss. 409.908 and 409.9128. The pilot program must include a 
804  provision for continuing fee-for-service payments for emergency 
805  services, including, but not limited to, individuals who access 
806  ambulance services or emergency departments and who are 
807  subsequently determined to be eligible for Medicaid services. 
808         (z) To ensure that school districts participating in the 
809  certified school match program pursuant to ss. 409.908(21) and 
810  1011.70 shall be reimbursed by Medicaid, subject to the 
811  limitations of s. 1011.70(1), for a Medicaid-eligible child 
812  participating in the services as authorized in s. 1011.70, as 
813  provided for in s. 409.9071, regardless of whether the child is 
814  enrolled in a capitated managed care network. Capitated managed 
815  care networks must make a good faith effort to execute 
816  agreements with school districts regarding the coordinated 
817  provision of services authorized under s. 1011.70. County health 
818  departments and federally qualified health centers delivering 
819  school-based services pursuant to ss. 381.0056 and 381.0057 must 
820  be reimbursed by Medicaid for the federal share for a Medicaid 
821  eligible child who receives Medicaid-covered services in a 
822  school setting, regardless of whether the child is enrolled in a 
823  capitated managed care network. Capitated managed care networks 
824  must make a good faith effort to execute agreements with county 
825  health departments and federally qualified health centers 
826  regarding the coordinated provision of services to a Medicaid 
827  eligible child. To ensure continuity of care for Medicaid 
828  patients, the agency, the Department of Health, and the 
829  Department of Education shall develop procedures for ensuring 
830  that a student’s capitated managed care network provider 
831  receives information relating to services provided in accordance 
832  with ss. 381.0056, 381.0057, 409.9071, and 1011.70. 
833         (aa) To implement a mechanism whereby Medicaid recipients 
834  who are already enrolled in a managed care plan or the MediPass 
835  program in the pilot areas shall be offered the opportunity to 
836  change to capitated managed care plans on a staggered basis, as 
837  defined by the agency. All Medicaid recipients shall have 30 
838  days in which to make a choice of capitated managed care plans. 
839  Those Medicaid recipients who do not make a choice shall be 
840  assigned to a capitated managed care plan in accordance with 
841  paragraph (4)(a) and shall be exempt from s. 409.9122. To 
842  facilitate continuity of care for a Medicaid recipient who is 
843  also a recipient of Supplemental Security Income (SSI), prior to 
844  assigning the SSI recipient to a capitated managed care plan, 
845  the agency shall determine whether the SSI recipient has an 
846  ongoing relationship with a provider or capitated managed care 
847  plan, and, if so, the agency shall assign the SSI recipient to 
848  that provider or capitated managed care plan where feasible. 
849  Those SSI recipients who do not have such a provider 
850  relationship shall be assigned to a capitated managed care plan 
851  provider in accordance with paragraph (4)(a) and shall be exempt 
852  from s. 409.9122. 
853         (bb) To develop and recommend a service delivery 
854  alternative for children having chronic medical conditions which 
855  establishes a medical home project to provide primary care 
856  services to this population. The project shall provide 
857  community-based primary care services that are integrated with 
858  other subspecialties to meet the medical, developmental, and 
859  emotional needs for children and their families. This project 
860  shall include an evaluation component to determine impacts on 
861  hospitalizations, length of stays, emergency room visits, costs, 
862  and access to care, including specialty care and patient and 
863  family satisfaction. 
864         (cc) To develop and recommend service delivery mechanisms 
865  within capitated managed care plans to provide Medicaid services 
866  as specified in ss. 409.905 and 409.906 to persons with 
867  developmental disabilities sufficient to meet the medical, 
868  developmental, and emotional needs of these persons. 
869         (dd) To implement service delivery mechanisms within a 
870  specialty plan in area 10 capitated managed care plans to 
871  provide behavioral health care services Medicaid services as 
872  specified in ss. 409.905 and 409.906 to Medicaid-eligible 
873  children whose cases are open for child welfare services in the 
874  HomeSafeNet system. These services must be coordinated with 
875  community-based care providers as specified in s. 409.1671, 
876  where available, and be sufficient to meet the medical, 
877  developmental, behavioral, and emotional needs of these 
878  children. Children in area 10 who have an open case in the 
879  HomeSafeNet system shall be enrolled into the specialty plan. 
880  These service delivery mechanisms must be implemented no later 
881  than July 1, 2011 2008, in AHCA area 10 in order for the 
882  children in AHCA area 10 to remain exempt from the statewide 
883  plan under s. 409.912(4)(b)8. An administrative fee may be paid 
884  to the specialty plan for the coordination of services based on 
885  the receipt of the state share of that fee being provided 
886  through intergovernmental transfers. 
887         (4)(a) A Medicaid recipient in the pilot area who is not 
888  currently enrolled in a capitated managed care plan upon 
889  implementation is not eligible for services as specified in ss. 
890  409.905 and 409.906, for the amount of time that the recipient 
891  does not enroll in a capitated managed care network. If a 
892  Medicaid recipient has not enrolled in a capitated managed care 
893  plan within 30 days after eligibility, the agency shall assign 
894  the Medicaid recipient to a capitated managed care plan based on 
895  the assessed needs of the recipient as determined by the agency 
896  and the recipient shall be exempt from s. 409.9122. When making 
897  assignments, the agency shall take into account the following 
898  criteria: 
899         1. A capitated managed care network has sufficient network 
900  capacity to meet the needs of members. 
901         2. The capitated managed care network has previously 
902  enrolled the recipient as a member, or one of the capitated 
903  managed care network’s primary care providers has previously 
904  provided health care to the recipient. 
905         3. The agency has knowledge that the member has previously 
906  expressed a preference for a particular capitated managed care 
907  network as indicated by Medicaid fee-for-service claims data, 
908  but has failed to make a choice. 
909         4. The capitated managed care network’s primary care 
910  providers are geographically accessible to the recipient’s 
911  residence. 
912         5.Plan performance as designed by the agency. 
913         (b) When more than one capitated managed care network 
914  provider meets the criteria specified in paragraph (3)(h), the 
915  agency shall make recipient assignments consecutively by family 
916  unit. 
917         (c) If a recipient is currently enrolled with a Medicaid 
918  managed care organization that also operates an approved reform 
919  plan within a demonstration area and the recipient fails to 
920  choose a plan during the reform enrollment process or during 
921  redetermination of eligibility, the recipient shall be 
922  automatically assigned by the agency into the most appropriate 
923  reform plan operated by the recipient’s current Medicaid managed 
924  care plan. If the recipient’s current managed care plan does not 
925  operate a reform plan in the demonstration area which adequately 
926  meets the needs of the Medicaid recipient, the agency shall use 
927  the automatic assignment process as prescribed in the special 
928  terms and conditions numbered 11-W-00206/4. All enrollment and 
929  choice counseling materials provided by the agency must contain 
930  an explanation of the provisions of this paragraph for current 
931  managed care recipients. 
932         (d) Except for plan performance as provided for in 
933  paragraph (a), the agency may not engage in practices that are 
934  designed to favor one capitated managed care plan over another 
935  or that are designed to influence Medicaid recipients to enroll 
936  in a particular capitated managed care network in order to 
937  strengthen its particular fiscal viability. 
938         (e) After a recipient has made a selection or has been 
939  enrolled in a capitated managed care network, the recipient 
940  shall have 90 days in which to voluntarily disenroll and select 
941  another capitated managed care network. After 90 days, no 
942  further changes may be made except for cause. Cause shall 
943  include, but not be limited to, poor quality of care, lack of 
944  access to necessary specialty services, an unreasonable delay or 
945  denial of service, inordinate or inappropriate changes of 
946  primary care providers, service access impairments due to 
947  significant changes in the geographic location of services, or 
948  fraudulent enrollment. The agency may require a recipient to use 
949  the capitated managed care network’s grievance process as 
950  specified in paragraph (3)(q) prior to the agency’s 
951  determination of cause, except in cases in which immediate risk 
952  of permanent damage to the recipient’s health is alleged. The 
953  grievance process, when used, must be completed in time to 
954  permit the recipient to disenroll no later than the first day of 
955  the second month after the month the disenrollment request was 
956  made. If the capitated managed care network, as a result of the 
957  grievance process, approves an enrollee’s request to disenroll, 
958  the agency is not required to make a determination in the case. 
959  The agency must make a determination and take final action on a 
960  recipient’s request so that disenrollment occurs no later than 
961  the first day of the second month after the month the request 
962  was made. If the agency fails to act within the specified 
963  timeframe, the recipient’s request to disenroll is deemed to be 
964  approved as of the date agency action was required. Recipients 
965  who disagree with the agency’s finding that cause does not exist 
966  for disenrollment shall be advised of their right to pursue a 
967  Medicaid fair hearing to dispute the agency’s finding. 
968         (f) The agency shall apply for federal waivers from the 
969  Centers for Medicare and Medicaid Services to lock eligible 
970  Medicaid recipients into a capitated managed care network for 12 
971  months after an open enrollment period. After 12 months of 
972  enrollment, a recipient may select another capitated managed 
973  care network. However, nothing shall prevent a Medicaid 
974  recipient from changing primary care providers within the 
975  capitated managed care network during the 12-month period. 
976         (g) The agency shall apply for federal waivers from the 
977  Centers for Medicare and Medicaid Services to allow recipients 
978  to purchase health care coverage through an employer-sponsored 
979  health insurance plan instead of through a Medicaid-certified 
980  plan. This provision shall be known as the opt-out option. 
981         1. A recipient who chooses the Medicaid opt-out option 
982  shall have an opportunity for a specified period of time, as 
983  authorized under a waiver granted by the Centers for Medicare 
984  and Medicaid Services, to select and enroll in a Medicaid 
985  certified plan. If the recipient remains in the employer 
986  sponsored plan after the specified period, the recipient shall 
987  remain in the opt-out program for at least 1 year or until the 
988  recipient no longer has access to employer-sponsored coverage, 
989  until the employer’s open enrollment period for a person who 
990  opts out in order to participate in employer-sponsored coverage, 
991  or until the person is no longer eligible for Medicaid, 
992  whichever time period is shorter. 
993         2. Notwithstanding any other provision of this section, 
994  coverage, cost sharing, and any other component of employer 
995  sponsored health insurance shall be governed by applicable state 
996  and federal laws. 
997         (5) This section authorizes does not authorize the agency 
998  to seek an extension amendment and to continue operation 
999  implement any provision of the s. 1115 of the Social Security 
1000  Act experimental, pilot, or demonstration project waiver to 
1001  reform the state Medicaid program in any part of the state other 
1002  than the two geographic areas specified in this section unless 
1003  approved by the Legislature. 
1004         (6) The agency shall develop and submit for approval 
1005  applications for waivers of applicable federal laws and 
1006  regulations as necessary to extend and expand implement the 
1007  managed care pilot project as defined in this section. The 
1008  agency shall seek public input on the waiver and post all waiver 
1009  applications under this section on its Internet website for 30 
1010  days before submitting the applications to the United States 
1011  Centers for Medicare and Medicaid Services. The 30 days shall 
1012  commence with the initial posting and must conclude 30 days 
1013  prior to approval by the United States Centers for Medicare and 
1014  Medicaid Services. All waiver applications shall be provided for 
1015  review and comment to the appropriate committees of the Senate 
1016  and House of Representatives for at least 10 working days prior 
1017  to submission. All waivers submitted to and approved by the 
1018  United States Centers for Medicare and Medicaid Services under 
1019  this section must be approved by the Legislature. Federally 
1020  approved waivers must be submitted to the President of the 
1021  Senate and the Speaker of the House of Representatives for 
1022  referral to the appropriate legislative committees. The 
1023  appropriate committees shall recommend whether to approve the 
1024  implementation of any waivers to the Legislature as a whole. The 
1025  agency shall submit a plan containing a recommended timeline for 
1026  implementation of any waivers and budgetary projections of the 
1027  effect of the pilot program under this section on the total 
1028  Medicaid budget for the 2006-2007 through 2009-2010 state fiscal 
1029  years. This implementation plan shall be submitted to the 
1030  President of the Senate and the Speaker of the House of 
1031  Representatives at the same time any waivers are submitted for 
1032  consideration by the Legislature. The agency may implement the 
1033  waiver and special terms and conditions numbered 11-W-00206/4, 
1034  as approved by the federal Centers for Medicare and Medicaid 
1035  Services. If the agency seeks approval by the Federal Government 
1036  of any modifications to these special terms and conditions, the 
1037  agency must provide written notification of its intent to modify 
1038  these terms and conditions to the President of the Senate and 
1039  the Speaker of the House of Representatives at least 15 days 
1040  before submitting the modifications to the Federal Government 
1041  for consideration. The notification must identify all 
1042  modifications being pursued and the reason the modifications are 
1043  needed. Upon receiving federal approval of any modifications to 
1044  the special terms and conditions, the agency shall provide a 
1045  report to the Legislature describing the federally approved 
1046  modifications to the special terms and conditions within 7 days 
1047  after approval by the Federal Government. 
1048         Section 3. Paragraph (m) is added to subsection (2) of 
1049  section 409.9122, Florida Statutes, to read: 
1050         409.9122 Mandatory Medicaid managed care enrollment; 
1051  programs and procedures.— 
1052         (2) 
1053         (m)1. Time allotted pursuant to this subsection to any 
1054  Medicaid recipient for the selection of, enrollment in, or 
1055  disenrollment from a managed care plan or MediPass is tolled 
1056  throughout any month in which the enrollment broker or choice 
1057  counseling provider, whichever is applicable, has adversely 
1058  affected a beneficiary’s ability to access choice counseling or 
1059  enrollment broker services by its failure to comply with the 
1060  terms and conditions of its contract or has otherwise acted or 
1061  failed to act in a manner that the agency deems likely to 
1062  jeopardize its ability to perform its assigned responsibilities 
1063  as set forth in paragraphs (c) and (d). During any month in 
1064  which time is tolled for a recipient, he or she must be afforded 
1065  uninterrupted access to benefits and services in the same 
1066  delivery system available prior to such tolling. 
1067         2. The agency shall incorporate into all pertinent 
1068  contracts that are executed or renewed on or after July 1, 2010, 
1069  provisions authorizing and requiring the agency to impose 
1070  sanctions or fines against an enrollment broker or choice 
1071  counselor if a recipient is adversely affected due to any action 
1072  or failure to act on the part of the enrollment broker or choice 
1073  counselor. 
1074         Section 4. This act shall take effect July 1, 2010. 
feedback