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2005 Legislative Session Review

The Florida Legislature concluded its 2005 General Session on Friday, May 6, 2005. A total of 2,475 bills were introduced, 2,067 of which were general legislative bills. Only 749 bills passed at least one chamber (30.3% of the total bills introduced) and 394 bills passed both chambers (15.9% of the total bills introduced) and either have been or will be considered by Governor Bush for enactment.

The Florida College of Emergency Physicians specifically targeted several areas of legislative efforts in 2005, primarily:

  Medicaid Reform,

  Assignment of Benefits,

  Implementation of Constitutional Amendments 7 & 8,

  Mandatory HIV Testing for Pregnant Women,

  Off-Site Emergency Departments,

  Traffic Violations and Trauma Center Funding,

  High Deductible Insurance Study Group and

  Other Bills of Interest.

Medicaid Reform

Emergency Medicine Specific Summary

  The Medicaid managed care pilot program must cover emergency services and care as a required benefit and comply with current statutory requirements found in s. 409.9128.

  The pilot program must include a provision for continuing fee-for-service payments for emergency services, including but not limited to, individuals who access ambulance services or emergency departments and who are subsequently determined to be eligible for Medicaid services.

  The legislation also directs AHCA to work with local hospitals, emergency medical services providers, public and private health care providers and local communities to work together and enter into agreements to provide alternative sources of care for Medicaid-recipients for those who need non-emergency care.

  The bill also requires AHCA to contract with an entity to design a database of clinical utilization information or electronic medical records and a prescription drug management system for Medicaid providers.

Medicaid Managed Care Pilot Program

Creates s. 409.91211, F.S., authorizing AHCA to seek an 1115 waiver from the federal government to create a statewide capitated managed care pilot program. Phase one of the demonstration shall be implemented in two geographic areas- one site Broward County and one site to initially include Duval County and shall be expanded to include Baker, Clay, and Nassau Counties within 1 year after the Duval County program becomes operational. Waiver authority is contingent upon federal approval to preserve the upper-payment-limit funding mechanism and the disproportionate share program for hospitals. Upon completion of the evaluation conducted by OPPAGA and in consultation with the Auditor General, AHCA may request statewide expansion of the demonstration projects. Statewide phase-in to additional counties shall be contingent upon review and approval by the Legislature.

AHCA is given the following powers, duties, and responsibilities with respect to the Medicaid Managed Care Pilot Program:

  To develop and recommend a system to deliver all mandatory services specified in s. 409.905, F.S., and optional services specified in s. 409.906, F.S., as approved by CMS and the Legislature in the waiver, and specifies that services to recipients under plan benefits shall include emergency services provided under s. 409.9128, F.S.

  To recommend Medicaid eligibility categories from those specified in ss. 409.903, F.S., and 409.904, F.S.

  To design the managed care pilot program to maximize all available funds.

  To set actuarially sound, risk-adjusted capitation rates for Medicaid recipients in the pilot which can be separated to cover comprehensive care, enhanced services, and catastrophic care.

  To determine and recommend program standards and credentialing requirements for capitated managed care networks to participate in the pilot program. Specifies minimum standards and credentialing requirements to be included.

  To develop and recommend a mechanism for providing information to Medicaid recipients for the purpose of selecting a capitated managed care plan. Sets minimum standards for information that must be provide to a recipient about each plan. Also requires that there is a record of recipient acknowledgment that choice counseling has been provided. Specifies Choice Counseling minimum requirements.

  To develop and recommend descriptions of the eligibility assignment process which will be used to facilitate client choice while ensuring pilot programs adequate enrollment levels.

  To develop and recommend a system to monitor the provisions of health care services in the pilot program, including utilization and quality of health care services for the purpose of ensuring access to medically necessary services. This system shall include an encounter data-information system that collects and reports utilization information. The system shall include a method for verifying data integrity within the database and within the provider’s medical records.

  To recommend a grievance-resolution process for Medicaid recipients enrolled in a capitated managed care network under the pilot program modeled after the subscriber assistance panel as created in s. 408.7056, F.S.

  To recommend a grievance-resolution process for health care providers employed by or contracted with capitated managed care network under the pilot program in order to settle disputes among the provider and the managed care network or the provider and the agency.

  To develop and recommend criteria to designate health care providers as eligible to participate in the pilot program. Sets minimum criteria as those specified in s. 409.907, F.S. Also requires that all health care providers under contract with the pilot program be duly licensed in the state.

  To develop and recommend health care provider agreements for participation in the pilot program. Also to develop and recommend agreements with other state or local governmental programs or institutions for the coordination of health care.

  To develop and recommend a system to oversee the activities of the pilot program participants, health care providers, and capitated managed care networks in order to prevent fraud and abuse, over-utilization or duplicative utilization, underutilization or inappropriate denial of services, neglect of participants and to recover overpayments as appropriate.

  To develop and provide actuarial and benefit design analysis that indicate the effect on capitation rates and benefits offered in the pilot program over a prospective 5-year period based.

  To develop a mechanism to require capitated managed care plans to reimburse qualified emergency service providers, including, but not limited to, ambulance services, in accordance with ss. 409.908 and 409.9128, F.S. The pilot program must include a provision for continuing fee-for-service payments for emergency services, including but not limited to, individuals who access ambulance services or emergency departments and who are subsequently determined to be eligible for Medicaid services.

  Provides for continuation of the Certified School Match program.

  To develop and recommend a mechanism whereby Medicaid recipients who are already enrolled in a managed care plan or the Medipass program in the pilot areas shall be offered the opportunity to change to capitated managed care plans on a staggered basis. Gives all Medicaid recipients 30 days in which to make a choice of capitated managed care plans or they are assigned a plan. Gives the recipient 90 days in which to voluntarily disenroll and select another capitated managed care network. Allows AHCA to apply for a federal waiver to lock eligible Medicaid recipients into a capitated managed care network for 12 months after an open enrollment period. After 12 months of enrollment, a recipient may select another capitated managed care network.

  To develop and recommend a service delivery alternative for children having chronic medical conditions which establishes a medical home project to provide primary care services to this population. This project shall include an evaluation component to determine impacts on hospitalization, length of stays, emergency room visits, costs, and access to care, including specialty care and patient and family satisfaction.

  To develop a recommend a service delivery mechanism with in the capitated managed care plans to provide Medicaid services to persons with developmental disabilities and Medicaid eligible children in foster care.

  Medicaid Opt-Out Option: Allows AHCA to apply for a federal waiver to allow recipients to purchase health care coverage through an employer-sponsored health insurance plan instead of through a Medicaid certified plan.

Requires AHCA to post all waiver applications on its website for 30 days before submitting the application to CMS, and all waiver applications shall be provided for review and comment to the appropriate committees of the Senate and House for at least 10 working days prior to submission. All waivers submitted to and approved by CMS must be approved by the Legislature. Federally approved waivers must be submitted to the President of the Senate and Speaker of the House for referral to the appropriate legislative committees. The appropriate committees shall recommend whether to approve the implementation of any waivers to the Legislature as a whole. AHCA shall submit a plan containing a recommended timeline for implementation of any waivers and budgetary projections of the effect of the pilot program on the total Medicaid budget for the 2006-2007 through 2009-2010 state fiscal years. This implementation plan shall be submitted to the Senate President and House Speaker at the same time any waivers are submitted for consideration by the Legislature.

Integrated Care Pilots for Those 60
or Older

Requires AHCA in partnership with the Department of Elderly Affairs (DOEA) to create by December 1, 2005, an integrated, capitated delivery system for Medicaid recipients who are 60 years of age or older. Though AHCA is granted the authority to seek federal waivers for the pilots, AHCA must receive specific authorization from the Legislature prior to implementing the waiver. The integrated-care management model will initially be a pilot in two areas of the state with one of the area’s enrollment being on a voluntary basis. The program must combine all funding for Medicaid services provided to individuals 60 years of age or older into the integrated system, including funds for: Medicaid home and community based waiver services; all Medicaid services authorized in ss. 409.905 and 409.906, excluding funds for Medicaid nursing home services unless it can be demonstrated as cost effective; and the collection of Medicare coinsurance and deductibles for persons dually eligible for Medicaid and Medicare. Excluded from the integrated pilot are those individuals 60 years or older that are enrolled in the following programs: developmental disabilities waiver, family and supported-living waiver, the project AIDS care waiver, traumatic brain injury and spinal cord injury waiver, consumer-directed care waiver, program of all-inclusive care for the elderly, residents of institutional care for the elderly, and residents of institutional care facilities for the developmentally disabled. The program must use a competitive-procurement process to select entities to operate the integrated system, and defines which entities are eligible to submit bids. Provides additional operating procedures for program. Requires OPPAGA in consultation with the Auditor General, to conduct within 24 months after implementation, a comprehensive evaluation of the pilot projected to included: assessment of cost savings; consumer education, choice, and access to services; coordinated care; and quality of care.

The Medicaid Reform bill also includes
the following revisions to the Medicaid Program:

  Medicaid Electronic Medical Records: Requires AHCA to contract by April 1, 2006 with an entity to design a database of clinical utilization information or electronic medical records for Medicaid providers. This system must be web-based and allow providers to review on a real-time basis the utilization of Medicaid services, including, but not limited to, physician office visits, inpatient and outpatient hospitalizations, laboratory and pathology services, radiological and other imaging services, dental care, and patterns of dispensing prescription drugs in order to coordinate care and identify potential fraud and abuse.

  Medicaid Prescription-Drug-Management System: Requires AHCA to implement a Medicaid prescription-drug-management system. The management system must rely on cooperation between physicians and pharmacists to determine appropriate practice patterns and clinical guidelines to improve the prescribing, dispensing, and use of drugs in the Medicaid program. Provides additional requirement regarding the administration of the system, including: development of best-practice guidelines for the use and prescribing of drugs and determining deviations from best-practice guidelines; review of prescribing patterns by using clinical peer prescribing comparisons; access to Medicaid recipients who are outliers in their use and alerts to practitioners for patients who fail to refill their prescriptions or who are prescribed multiple drugs that may be redundant, contraindicated, or may have other potential medication problems; track spending trends for drugs; provider education and feedback; statewide and regional conferences; and implement disease-management programs in cooperation with physicians and pharmacists, along with a model quality-based medication component for individuals having chronic medical conditions.

  Emergency Department Diversion Programs: Requires AHCA to encourage hospitals, emergency medical services providers, and other public and private health care providers to work together in their local communities to enter into agreements or arrangements to ensure access to alternatives to emergency services and care for those Medicaid recipients who need non-emergency care. The agency shall coordinate with hospitals, emergency medical services providers, private health plans, capitated managed care networks, and other public and private health care providers to develop and implement emergency department diversion programs for Medicaid recipients.

  Clinical Practice Patterns: Requires AHCA to contract with a vendor to monitor and evaluate the clinical practice patterns of providers in order to identify trends that are outside the normal practice patterns. Requires that the vendor is able to provide information and counseling to a providers outside the norms in order to improve patient care and reduce inappropriate utilization.

  Explanation of Benefits: Requires AHCA to provide to each Medicaid recipient an explanation of benefits in the form of a letter. The explanation of benefits must include the patient’s name, the name of the health care provider and the address of the location where the service was provided, a description of all services billed to Medicaid in terminology that should be understood by a reasonable person, and information on how to report inappropriate or incorrect billing.

  Collection of Co-payments: Requires AHCA to submit to the Legislature by December 15, 2005, a report on the legal and administrative barriers to enforcing sect 409.9081, F.S., This report must describe how many services require co-payments, which providers collect co-payments, and the total amount of co-payments collected from recipients for all services required under sect 409.9081, by provider type for the 2001-2002 through 2004-2005 fiscal years. Requires AHCA to recommend a mechanism to enforce the requirements for Medicaid recipients to make co-payments which does not shift the co-payment amount to the provider. Requires AHCA to also identify the federal or state laws or regulation that permit Medicaid recipients to declare impoverishment in order to avoid paying the co-payment and extent to which these statements of impoverishment are verified. If claims of impoverishment are not currently verified, requires AHCA to recommend a system for such verification. The report must also identify any other cost-sharing measures that could imposed on Medicaid recipients.

  Allows AHCA to competitively bid single-source-provider contracts if procurement results in demonstrated cost savings to the state without limiting access to care.

  Requires AHCA to determine instances in which allowing Medicaid beneficiaries to purchase durable medical equipment and other goods is less expensive to the Medicaid program than long-term rental of the equipment. Requires AHCA to develop rules to facilitate the purchases in lieu of long-term rentals.

  Requires AHCA, to the extent permitted by federal law and as allowed under s. 409.906, to provide reimbursement for emergency mental health care services for Medicaid recipients in crisis-stabilization facilities licensed under s. 394.875 as long as those services are less expensive than the same services provided in a hospital setting.

  Requires AHCA to develop a procedure for determining whether health care providers and service vendors can provide the Medicaid program using a business case that demonstrates whether a particular good or service can offset the cost of providing the good or service in an alternative setting or through other means and therefore should receive a higher reimbursement. Specifies what the case model must include. Allows AHCA to recommend a change in the reimbursement schedule if it is found to be cost-effective under the business care.

  CARES- Comprehensive Assessment and Review for Long-Term Care Services nursing facility preadmission screening program: Requires CARES staff to consult with the person making the determination that a nursing home resident is no longer eligible for Medicare because of lack of progress towards rehabilitation, and if the CARES staff disagrees with that determination, authorizes the CARES staff to assist the Medicare beneficiary with an appeal of the disqualification from Medicare coverage, subject to federal matching funds through Medicaid.

  Return and Reuse Program for drugs dispensed by pharmacies to institutional recipients: Requires AHCA to determine if the program has reduced the amount of Medicaid prescription drugs which are destroyed on an annual basis and if there are additional ways to ensure more prescription drugs are not destroyed which could safely be reused. Requires AHCA’s conclusion and recommendations to be reported to the Legislature by December 1, 2005.

  Medicaid Lung Transplants: Requires AHCA to reimbursement using a global reimbursement fee to approved lung transplant facilities for providing lung transplant services to Medicaid recipients.

  Provider Service Networks or PSNs: Stipulates that any contract previously awarded to a PSN operated by a hospital pursuant to sect 409, F.S., shall remain in effect for a period of 3 years following the current contract-expiration date, and providers a definition of a provider service network.

  Payer of Last Resort Report: Requires AHCA to submit to the Legislature by January 15, 2006, recommendations to ensure that Medicaid is the payer of last resort. The report must identify the public and private entities that are liable for primary payment of health care services and recommend methods to improve enforcement of third party liability responsibility and repayment of benefits to the state Medicaid program.

  Study of the Long-term Care Community Diversion Pilot Project: Requires OPPAGA to submit by January 15, 2006, a study of the long-term care community diversion pilot project authorized under sect 430.701-430.709, F.S. Provides criteria for study. Also requires AHCA to identify how many individuals in the long-term care diversion programs who receive care at home have a patient-responsibility payment associated with their participation in the diversion program. If no system is available to assess this information, AHCA shall determine the cost of creating a system to identify and collect these payments and whether the cost of developing a system for this purpose is offset by the amount of patient responsibility payments which could be collected with the system. Requires AHCA to report this information to the Legislature by December 1, 2005.

  Medicaid Buy-In Study: Requires OPPAGA to conduct a study of state programs that allow non-Medicaid eligible persons under a certain income level to buy into the Medicaid program as if it were private insurance. Provides criteria for study including if the Medically Needy program could be redesigned to be a Medicaid buy-in program. Study to be submitted to the Legislature by January 1, 2006.

  Medicaid Prescription Drug Study: Requires OPPAGA, in consultation with the Office of Attorney General, Medicaid Fraud Control Unit and the Auditor General, to conduct a study to examine issues related to the amount of state and federal dollars lost due to fraud and abuse in the Medicaid Prescription drug program. Provides criteria for the study. Requires submission of the study by January 1, 2006, and specifies who receives the report.

  Repeal of provisions in SB 404: Repeals provision in SB 404, the Medicaid Conforming bill, that dealt with Medicaid provider reimbursement. Specifically repeals sections of SB 404 that amended sects 393.0661, 409.907, 409.9082, sect 23 of SB 404 and introductory provisions of sect 409.908, F.S. Also repeals requirements in SB 404 that dealt with HMO capitated payment and requires the adjustment in rates must result in an increase of 2.8% in the average per-member, per-month rate paid to prepaid health plans. Requires the Senate Select Committee on Medicaid Reform to study how provider rates are established and modified, how provider agreements and administrative rulemaking effect those rates, the discretion allowed by federal law for the setting of rates by the state, and the impact of litigation on provider rates. Requires the Committee to issue a report containing recommendation by March 1, 2006, and specifies who receives the report.

  Provides Appropriations for the Act and provides the effective date of July 1, 2005.