Florida 2022 2022 Regular Session

Florida House Bill H7047 Comm Sub / Bill

Filed 02/24/2022

                       
 
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A bill to be entitled 1 
An act relating to Medicaid managed care; amending s. 2 
409.908, F.S.; requiring the Agency for Health Care 3 
Administration to determine compliance with essential 4 
provider contracting requirements; requiring the 5 
agency to withhold supplemental payments under certain 6 
circumstances; requiring the agency to identify 7 
certain essential providers by the end of each fiscal 8 
year; requiring certain providers and managed care 9 
plans to mediate network contracts and jointly notify 10 
the agency of mediation commencement by a specified 11 
date; specifying requirements for mediation; 12 
specifying the content of a written postmediation 13 
report and requiring that such report be submitted to 14 
the agency by a specified date; requiring the agency 15 
to publish all postmediation reports on its website; 16 
amending s. 409.912, F.S.; requiring the reimbursement 17 
of certain provider service networks on a prepaid 18 
basis; removing obsolete language related to provider 19 
service network reimbursement; repealing s. 409.9124, 20 
F.S., relating to managed care re imbursement; amending 21 
s. 409.964, F.S.; removing obsolete language related 22 
to requiring the agency to provide public notice 23 
before seeking a Medicaid waiver; amending s. 409.966, 24 
F.S.; revising a provision related to a requirement 25     
 
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that the agency include c ertain information in a 26 
utilization and spending databook; requiring the 27 
agency to conduct a single, statewide procurement and 28 
negotiate and select plans on a regional basis; 29 
authorizing the agency to select plans on a statewide 30 
basis under certain circums tances; specifying the 31 
procurement regions; removing obsolete language 32 
related to prepaid rates and an additional procurement 33 
award; making conforming changes; amending s. 409.967, 34 
F.S.; removing obsolete language related to certain 35 
hospital contracts; req uiring the agency to test 36 
provider network databases to confirm that enrollees 37 
have timely access to all covered benefits; removing 38 
obsolete language related to a request for 39 
information; authorizing plans to reduce an achieved 40 
savings rebate under certain circumstances; 41 
classifying certain expenditures as medical expenses; 42 
amending s. 409.968, F.S.; removing obsolete language 43 
related to provider service network reimbursement; 44 
amending s. 409.973, F.S.; requiring healthy behaviors 45 
programs to address tobacc o use and opioid abuse; 46 
removing obsolete language related to primary care 47 
appointments; requiring managed care plans to 48 
establish certain programs to improve dental health 49 
outcomes; requiring the agency to establish 50     
 
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performance and outcome measures; requi ring the agency 51 
to annually review certain data and expenditures for 52 
dental-related emergency department visits and 53 
reconcile such expenditures against prepaid dental 54 
plan capitation payments; requiring prepaid dental 55 
plans and nondental managed care plans to enter into a 56 
mutual coordination of benefits agreement for 57 
specified purposes by a specified date; requiring 58 
prepaid dental plans and nondental managed care plans 59 
to meet quarterly for certain purposes beginning on a 60 
specified date; specifying the part ies' obligations 61 
for such meetings; requiring the agency to establish 62 
provider network requirements for dental plans, 63 
including prepaid dental plan provider network 64 
requirements regarding sedation dentistry services; 65 
requiring sanctions under certain circu mstances; 66 
requiring the agency to assess plan compliance at 67 
least quarterly and enforce network adequacy 68 
requirements in a timely manner; amending s. 409.974, 69 
F.S.; establishing numbers of regional contract awards 70 
in the Medicaid managed medical assistance program; 71 
amending s. 409.975, F.S.; providing that regional 72 
perinatal intensive care centers are regional 73 
resources and essential providers for managed care 74 
plans; requiring managed care plans to contract with 75     
 
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such centers; requiring the agency to assess plan 76 
compliance with certain requirements at least 77 
quarterly; requiring the agency to impose contract 78 
enforcement financial sanctions on or assess contract 79 
damages against certain plans by a specified date 80 
annually; removing regional perinatal intensive ca re 81 
centers from, and including certain cancer hospitals 82 
in, the list of statewide essential providers; 83 
providing a payment rate for certain cancer hospitals 84 
without network contracts; amending s. 409.977, F.S.; 85 
prohibiting the agency from automatically enr olling 86 
recipients in managed care plans under certain 87 
circumstances; removing obsolete language related to 88 
automatic enrollment and certain federal approvals; 89 
providing that children receiving guardianship 90 
assistance payments are eligible for a specialty p lan; 91 
requiring the agency to amend existing contracts under 92 
the Statewide Medicaid Managed Care program to 93 
implement specified provisions of the act; requiring 94 
the agency to implement specified provisions of the 95 
act for the 2025 plan year; amending s. 409. 981, F.S.; 96 
specifying the number of regional contract awards in 97 
the long-term care managed care plan; making a 98 
conforming change; amending ss. 409.8132 and 409.906, 99 
F.S.; conforming cross -references; providing an 100     
 
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effective date. 101 
 102 
Be It Enacted by the L egislature of the State of Florida: 103 
 104 
 Section 1.  Subsection (26) of section 409.908, Florida 105 
Statutes, is amended to read: 106 
 409.908  Reimbursement of Medicaid providers. —Subject to 107 
specific appropriations, the agency shall reimburse Medicaid 108 
providers, in accordance with state and federal law, according 109 
to methodologies set forth in the rules of the agency and in 110 
policy manuals and handbooks incorporated by reference therein. 111 
These methodologies may include fee schedules, reimbursement 112 
methods based on cost reporting, negotiated fees, competitive 113 
bidding pursuant to s. 287.057, and other mechanisms the agency 114 
considers efficient and effective for purchasing services or 115 
goods on behalf of recipients. If a provider is reimbursed based 116 
on cost reporting and submits a cost report late and that cost 117 
report would have been used to set a lower reimbursement rate 118 
for a rate semester, then the provider's rate for that semester 119 
shall be retroactively calculated using the new cost report, and 120 
full payment at the reca lculated rate shall be effected 121 
retroactively. Medicare -granted extensions for filing cost 122 
reports, if applicable, shall also apply to Medicaid cost 123 
reports. Payment for Medicaid compensable services made on 124 
behalf of Medicaid-eligible persons is subject t o the 125     
 
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availability of moneys and any limitations or directions 126 
provided for in the General Appropriations Act or chapter 216. 127 
Further, nothing in this section shall be construed to prevent 128 
or limit the agency from adjusting fees, reimbursement rates, 129 
lengths of stay, number of visits, or number of services, or 130 
making any other adjustments necessary to comply with the 131 
availability of moneys and any limitations or directions 132 
provided for in the General Appropriations Act, provided the 133 
adjustment is consistent with legislative intent. 134 
 (26)  The agency may receive funds from state entities, 135 
including, but not limited to, the Department of Health, local 136 
governments, and other local political subdivisions, for the 137 
purpose of making special exception payments and Low Income Pool 138 
Program payments, including federal matching funds. Funds 139 
received for this purpose shall be separately accounted for and 140 
may not be commingled with other state or local funds in any 141 
manner. The agency may certify all local governmental fun ds used 142 
as state match under Title XIX of the Social Security Act to the 143 
extent and in the manner authorized under the General 144 
Appropriations Act and pursuant to an agreement between the 145 
agency and the local governmental entity. In order for the 146 
agency to certify such local governmental funds, a local 147 
governmental entity must submit a final, executed letter of 148 
agreement to the agency, which must be received by October 1 of 149 
each fiscal year and provide the total amount of local 150     
 
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governmental funds authorized by the entity for that fiscal year 151 
under the General Appropriations Act. The local governmental 152 
entity shall use a certification form prescribed by the agency. 153 
At a minimum, the certification form must identify the amount 154 
being certified and describe the r elationship between the 155 
certifying local governmental entity and the local health care 156 
provider. Local governmental funds outlined in the letters of 157 
agreement must be received by the agency no later than October 158 
31 of each fiscal year in which such funds a re pledged, unless 159 
an alternative plan is specifically approved by the agency. To 160 
be eligible for low-income pool funding or other forms of 161 
supplemental payments funded by intergovernmental transfers, and 162 
in addition to any other applicable requirements, e ssential 163 
providers identified in s. 409.975(1)(a) s. 409.975(1)(a)2. must 164 
have a network offer to contract with each managed care plan in 165 
their region and essential providers identified in s. 166 
409.975(1)(b) s. 409.975(1)(b)1. and 3. must have a network 167 
offer to contract with each managed care plan in the state. 168 
Before releasing such supplemental payments, in the event the 169 
parties have not executed network contracts, the agency shall 170 
determine whether such contracts are in place and evaluate the 171 
parties' efforts to complete negotiations. If such efforts 172 
continue to fail, the agency must withhold such supplemental 173 
payments beginning no later than January 1 of each fiscal year 174 
for essential providers without such contracts in place. By the 175     
 
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end of each fiscal yea r, the agency shall identify essential 176 
providers who have not executed required network contracts with 177 
the applicable managed care plans for the next fiscal year. By 178 
July 30, such providers and plans must enter into mediation and 179 
jointly notify the agency of mediation commencement. Selection 180 
of a mediator must be by mutual agreement of the plan and 181 
provider, or, if they cannot agree, by the agency from a list of 182 
at least four mediators submitted by the parties. The costs of 183 
the mediation shall be borne equa lly by the parties. The 184 
mediation must be completed before September 30. On or before 185 
October 1, the mediator must submit a written postmediation 186 
report to the agency, including the outcome of the mediation 187 
and, if mediation resulted in an impasse, conclus ions and 188 
recommendations as to the cause of the impasse, the party most 189 
responsible for the impasse, and whether the mediator believes 190 
that either party negotiated in bad faith. If the mediator 191 
recommends to the agency that a party or both parties negotiat ed 192 
in bad faith, the postmediation report must state the basis for 193 
such recommendation, cite all relevant information forming the 194 
basis of the recommendation, and attach any relevant 195 
documentation. The agency must promptly publish all 196 
postmediation reports on its website in the third quarter of the 197 
fiscal year if it determines that, based upon the totality of 198 
the circumstances, the essential provider has negotiated with 199 
the managed care plan in bad faith. If the agency determines 200     
 
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that an essential provider has negotiated in bad faith, it must 201 
notify the essential provider at least 90 days in advance of the 202 
start of the third quarter of the fiscal year and afford the 203 
essential provider hearing rights in accordance with chapter 204 
120. 205 
 Section 2.  Subsection ( 1) of section 409.912, Florida 206 
Statutes, is amended to read: 207 
 409.912  Cost-effective purchasing of health care. —The 208 
agency shall purchase goods and services for Medicaid recipients 209 
in the most cost-effective manner consistent with the delivery 210 
of quality medical care. To ensure that medical services are 211 
effectively utilized, the agency may, in any case, require a 212 
confirmation or second physician's opinion of the correct 213 
diagnosis for purposes of authorizing future services under the 214 
Medicaid program. This section does not restrict access to 215 
emergency services or poststabilization care services as defined 216 
in 42 C.F.R. s. 438.114. Such confirmation or second opinion 217 
shall be rendered in a manner approved by the agency. The agency 218 
shall maximize the use of pre paid per capita and prepaid 219 
aggregate fixed-sum basis services when appropriate and other 220 
alternative service delivery and reimbursement methodologies, 221 
including competitive bidding pursuant to s. 287.057, designed 222 
to facilitate the cost -effective purchase of a case-managed 223 
continuum of care. The agency shall also require providers to 224 
minimize the exposure of recipients to the need for acute 225     
 
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inpatient, custodial, and other institutional care and the 226 
inappropriate or unnecessary use of high -cost services. The 227 
agency shall contract with a vendor to monitor and evaluate the 228 
clinical practice patterns of providers in order to identify 229 
trends that are outside the normal practice patterns of a 230 
provider's professional peers or the national guidelines of a 231 
provider's professional association. The vendor must be able to 232 
provide information and counseling to a provider whose practice 233 
patterns are outside the norms, in consultation with the agency, 234 
to improve patient care and reduce inappropriate utilization. 235 
The agency may mandate prior authorization, drug therapy 236 
management, or disease management participation for certain 237 
populations of Medicaid beneficiaries, certain drug classes, or 238 
particular drugs to prevent fraud, abuse, overuse, and possible 239 
dangerous drug intera ctions. The Pharmaceutical and Therapeutics 240 
Committee shall make recommendations to the agency on drugs for 241 
which prior authorization is required. The agency shall inform 242 
the Pharmaceutical and Therapeutics Committee of its decisions 243 
regarding drugs subjec t to prior authorization. The agency is 244 
authorized to limit the entities it contracts with or enrolls as 245 
Medicaid providers by developing a provider network through 246 
provider credentialing. The agency may competitively bid single -247 
source-provider contracts i f procurement of goods or services 248 
results in demonstrated cost savings to the state without 249 
limiting access to care. The agency may limit its network based 250     
 
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on the assessment of beneficiary access to care, provider 251 
availability, provider quality standards, time and distance 252 
standards for access to care, the cultural competence of the 253 
provider network, demographic characteristics of Medicaid 254 
beneficiaries, practice and provider -to-beneficiary standards, 255 
appointment wait times, beneficiary use of services, pr ovider 256 
turnover, provider profiling, provider licensure history, 257 
previous program integrity investigations and findings, peer 258 
review, provider Medicaid policy and billing compliance records, 259 
clinical and medical record audits, and other factors. Providers 260 
are not entitled to enrollment in the Medicaid provider network. 261 
The agency shall determine instances in which allowing Medicaid 262 
beneficiaries to purchase durable medical equipment and other 263 
goods is less expensive to the Medicaid program than long -term 264 
rental of the equipment or goods. The agency may establish rules 265 
to facilitate purchases in lieu of long -term rentals in order to 266 
protect against fraud and abuse in the Medicaid program as 267 
defined in s. 409.913. The agency may seek federal waivers 268 
necessary to administer these policies. 269 
 (1)  The agency may contract with a provider service 270 
network, which must may be reimbursed on a fee-for-service or 271 
prepaid basis. Prepaid provider service networks shall receive 272 
per-member, per-month payments. A provider service network that 273 
does not choose to be a prepaid plan shall receive fee -for-274 
service rates with a shared savings settlement. The fee -for-275     
 
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service option shall be available to a provider service network 276 
only for the first 2 years of the plan's operation or un til the 277 
contract year beginning September 1, 2014, whichever is later. 278 
The agency shall annually conduct cost reconciliations to 279 
determine the amount of cost savings achieved by fee -for-service 280 
provider service networks for the dates of service in the peri od 281 
being reconciled. Only payments for covered services for dates 282 
of service within the reconciliation period and paid within 6 283 
months after the last date of service in the reconciliation 284 
period shall be included. The agency shall perform the necessary 285 
adjustments for the inclusion of claims incurred but not 286 
reported within the reconciliation for claims that could be 287 
received and paid by the agency after the 6 -month claims 288 
processing time lag. The agency shall provide the results of the 289 
reconciliations to t he fee-for-service provider service networks 290 
within 45 days after the end of the reconciliation period. The 291 
fee-for-service provider service networks shall review and 292 
provide written comments or a letter of concurrence to the 293 
agency within 45 days after re ceipt of the reconciliation 294 
results. This reconciliation shall be considered final. 295 
 (a)  A provider service network which is reimbursed by the 296 
agency on a prepaid basis shall be exempt from parts I and III 297 
of chapter 641 but must comply with the solvency requirements in 298 
s. 641.2261(2) and meet appropriate financial reserve, quality 299 
assurance, and patient rights requirements as established by the 300     
 
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agency. 301 
 (b)  A provider service network is a network established or 302 
organized and operated by a health care pro vider, or group of 303 
affiliated health care providers, which provides a substantial 304 
proportion of the health care items and services under a 305 
contract directly through the provider or affiliated group of 306 
providers and may make arrangements with physicians or other 307 
health care professionals, health care institutions, or any 308 
combination of such individuals or institutions to assume all or 309 
part of the financial risk on a prospective basis for the 310 
provision of basic health services by the physicians, by other 311 
health professionals, or through the institutions. The health 312 
care providers must have a controlling interest in the governing 313 
body of the provider service network organization. 314 
 Section 3.  Section 409.9124, Florida Statutes, is 315 
repealed. 316 
 Section 4.  Section 409.964, Florida Statutes, is amended 317 
to read: 318 
 409.964  Managed care program; state plan; waivers. —The 319 
Medicaid program is established as a statewide, integrated 320 
managed care program for all covered services, including long -321 
term care services. The ag ency shall apply for and implement 322 
state plan amendments or waivers of applicable federal laws and 323 
regulations necessary to implement the program. Before seeking a 324 
waiver, the agency shall provide public notice and the 325     
 
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opportunity for public comment and in clude public feedback in 326 
the waiver application. The agency shall hold one public meeting 327 
in each of the regions described in s. 409.966(2), and the time 328 
period for public comment for each region shall end no sooner 329 
than 30 days after the completion of the public meeting in that 330 
region. 331 
 Section 5.  Paragraph (f) of subsection (3) of section 332 
409.966, Florida Statutes, is redesignated as paragraph (d), and 333 
subsection (2), present paragraphs (a), (d), and (e) of 334 
subsection (3), and subsection (4) of that section are amended 335 
to read: 336 
 409.966  Eligible plans; selection. — 337 
 (2)  ELIGIBLE PLAN SELECTION. —The agency shall select a 338 
limited number of eligible plans to participate in the Medicaid 339 
program using invitations to negotiate in accordance with s. 340 
287.057(1)(c). At least 90 days before issuing an invitation to 341 
negotiate, the agency shall compile and publish a databook 342 
consisting of a comprehensive set of utilization and spending 343 
data consistent with actuarial rate -setting practices and 344 
standards for at least the most recent 24 months 3 most recent 345 
contract years consistent with the rate -setting periods for all 346 
Medicaid recipients by region or county. The source of the data 347 
in the report must include both historic fee-for-service claims 348 
and validated data from the Medicaid Encounter Data System. The 349 
report must be available in electronic form and delineate 350     
 
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utilization use by age, gender, eligibility group, geographic 351 
area, and aggregate clinical risk score. The agency shall 352 
conduct a single, statewide procure ment, shall negotiate and 353 
select plans on a regional basis, and may select plans on a 354 
statewide basis if deemed the best value for the state and 355 
Medicaid recipients. Plan selection separate and simultaneous 356 
procurements shall be conducted in each of the fo llowing 357 
regions: 358 
 (a)  Region A, which consists of Bay, Calhoun, Escambia, 359 
Franklin, Gadsden, Gulf, Holmes, Jackson, Jefferson, Leon, 360 
Liberty, Madison, Okaloosa, Santa Rosa, Taylor, Wakulla, Walton, 361 
and Washington Counties. 362 
 (b)  Region B, which consists o f Alachua, Baker, Bradford, 363 
Citrus, Clay, Columbia, Dixie, Duval, Flagler, Gilchrist, 364 
Hamilton, Hernando, Lafayette, Lake, Levy, Marion, Nassau, 365 
Putnam, St. Johns, Sumter, Suwannee, Union, and Volusia 366 
Counties. 367 
 (c)  Region C, which consists of Hardee, Hig hlands, 368 
Hillsborough, Manatee, Pasco, Pinellas, and Polk Counties. 369 
 (d)  Region D, which consists of Brevard, Orange, Osceola, 370 
and Seminole Counties. 371 
 (e)  Region E, which consists of Charlotte, Collier, 372 
DeSoto, Glades, Hendry, Lee, and Sarasota Counties. 373 
 (f)  Region F, which consists of Indian River, Martin, 374 
Okeechobee, Palm Beach, and St. Lucie Counties. 375     
 
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 (g)  Region G, which consists of Broward County. 376 
 (h)  Region H, which consists of Miami -Dade and Monroe 377 
Counties. 378 
 (a)  Region 1, which consists of Escambia, Okaloosa, Santa 379 
Rosa, and Walton Counties. 380 
 (b)  Region 2, which consists of Bay, Calhoun, Franklin, 381 
Gadsden, Gulf, Holmes, Jackson, Jefferson, Leon, Liberty, 382 
Madison, Taylor, Wakulla, and Washington Counties. 383 
 (c)  Region 3, which consists of Al achua, Bradford, Citrus, 384 
Columbia, Dixie, Gilchrist, Hamilton, Hernando, Lafayette, Lake, 385 
Levy, Marion, Putnam, Sumter, Suwannee, and Union Counties. 386 
 (d)  Region 4, which consists of Baker, Clay, Duval, 387 
Flagler, Nassau, St. Johns, and Volusia Counties. 388 
 (e)  Region 5, which consists of Pasco and Pinellas 389 
Counties. 390 
 (f)  Region 6, which consists of Hardee, Highlands, 391 
Hillsborough, Manatee, and Polk Counties. 392 
 (g)  Region 7, which consists of Brevard, Orange, Osceola, 393 
and Seminole Counties. 394 
 (h)  Region 8, which consists of Charlotte, Collier, 395 
DeSoto, Glades, Hendry, Lee, and Sarasota Counties. 396 
 (i)  Region 9, which consists of Indian River, Martin, 397 
Okeechobee, Palm Beach, and St. Lucie Counties. 398 
 (j)  Region 10, which consists of Broward County. 399 
 (k)  Region 11, which consists of Miami -Dade and Monroe 400     
 
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Counties. 401 
 (3)  QUALITY SELECTION CRITERIA. — 402 
 (a)  The invitation to negotiate must specify the criteria 403 
and the relative weight of the criteria that will be used for 404 
determining the acceptability of the reply a nd guiding the 405 
selection of the organizations with which the agency negotiates. 406 
In addition to criteria established by the agency, the agency 407 
shall consider the following factors in the selection of 408 
eligible plans: 409 
 1.  Accreditation by the National Commit tee for Quality 410 
Assurance, the Joint Commission, or another nationally 411 
recognized accrediting body. 412 
 2.  Experience serving similar populations, including the 413 
organization's record in achieving specific quality standards 414 
with similar populations. 415 
 3.  Availability and accessibility of primary care and 416 
specialty physicians in the provider network. 417 
 4.  Establishment of community partnerships with providers 418 
that create opportunities for reinvestment in community -based 419 
services. 420 
 5.  Organization commitment to quality improvement and 421 
documentation of achievements in specific quality improvement 422 
projects, including active involvement by organization 423 
leadership. 424 
 6.  Provision of additional benefits, particularly dental 425     
 
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care and disease management, and other initiatives that improve 426 
health outcomes. 427 
 7.  Evidence that an eligible plan has obtained signed 428 
contracts or written agreements or signed contracts or has made 429 
substantial progress in establishing relationships with 430 
providers before the plan submits submitting a response. 431 
 8.  Comments submitted in writing by any enrolled Medicaid 432 
provider relating to a specifically identified plan 433 
participating in the procurement in the same region as the 434 
submitting provider. 435 
 9.  Documentation of policies and procedures for preventing 436 
fraud and abuse. 437 
 10.  The business relationship an eligible plan has with 438 
any other eligible plan that responds to the invitation to 439 
negotiate. 440 
 (d)  For the first year of the first contract term, the 441 
agency shall negotiate capitation rate s or fee for service 442 
payments with each plan in order to guarantee aggregate savings 443 
of at least 5 percent. 444 
 1.  For prepaid plans, determination of the amount of 445 
savings shall be calculated by comparison to the Medicaid rates 446 
that the agency paid managed care plans for similar populations 447 
in the same areas in the prior year. In regions containing no 448 
prepaid plans in the prior year, determination of the amount of 449 
savings shall be calculated by comparison to the Medicaid rates 450     
 
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established and certified for t hose regions in the prior year. 451 
 2.  For provider service networks operating on a fee -for-452 
service basis, determination of the amount of savings shall be 453 
calculated by comparison to the Medicaid rates that the agency 454 
paid on a fee-for-service basis for the same services in the 455 
prior year. 456 
 (e)  To ensure managed care plan participation in Regions 1 457 
and 2, the agency shall award an additional contract to each 458 
plan with a contract award in Region 1 or Region 2. Such 459 
contract shall be in any other region in whi ch the plan 460 
submitted a responsive bid and negotiates a rate acceptable to 461 
the agency. If a plan that is awarded an additional contract 462 
pursuant to this paragraph is subject to penalties pursuant to 463 
s. 409.967(2)(i) for activities in Region 1 or Region 2, the 464 
additional contract is automatically terminated 180 days after 465 
the imposition of the penalties. the plan must reimburse the 466 
agency for the cost of enrollment changes and other transition 467 
activities. 468 
 (4)  ADMINISTRATIVE CHALLENGE. —Any eligible plan tha t 469 
participates in an invitation to negotiate in more than one 470 
region and is selected in at least one region may not begin 471 
serving Medicaid recipients in any region for which it was 472 
selected until all administrative challenges to procurements 473 
required by this section to which the eligible plan is a party 474 
have been finalized. If the number of plans selected is less 475     
 
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than the maximum amount of plans permitted in the region, the 476 
agency may contract with other selected plans in the region not 477 
participating in the administrative challenge before resolution 478 
of the administrative challenge. For purposes of this 479 
subsection, an administrative challenge is finalized if an order 480 
granting voluntary dismissal with prejudice has been entered by 481 
any court established under A rticle V of the State Constitution 482 
or by the Division of Administrative Hearings, a final order has 483 
been entered into by the agency and the deadline for appeal has 484 
expired, a final order has been entered by the First District 485 
Court of Appeal and the time t o seek any available review by the 486 
Florida Supreme Court has expired, or a final order has been 487 
entered by the Florida Supreme Court and a warrant has been 488 
issued. 489 
 Section 6.  Paragraphs (c) and (f) of subsection (2) and 490 
paragraph (b) of subsection (4) of section 409.967, Florida 491 
Statutes, are amended, and paragraph (k) is added to subsection 492 
(3) of that section, to read: 493 
 409.967  Managed care plan accountability. — 494 
 (2)  The agency shall establish such contract requirements 495 
as are necessary for the oper ation of the statewide managed care 496 
program. In addition to any other provisions the agency may deem 497 
necessary, the contract must require: 498 
 (c)  Access.— 499 
 1.  The agency shall establish specific standards for the 500     
 
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number, type, and regional distribution of providers in managed 501 
care plan networks to ensure access to care for both adults and 502 
children. Each plan must maintain a regionwide network of 503 
providers in sufficient numbers to meet the access standards for 504 
specific medical services for all recipients enr olled in the 505 
plan. The exclusive use of mail -order pharmacies may not be 506 
sufficient to meet network access standards. Consistent with the 507 
standards established by the agency, provider networks may 508 
include providers located outside the region. A plan may 509 
contract with a new hospital facility before the date the 510 
hospital becomes operational if the hospital has commenced 511 
construction, will be licensed and operational by January 1, 512 
2013, and a final order has issued in any civil or 513 
administrative challenge. Each plan shall establish and maintain 514 
an accurate and complete electronic database of contracted 515 
providers, including information about licensure or 516 
registration, locations and hours of operation, specialty 517 
credentials and other certifications, specific perf ormance 518 
indicators, and such other information as the agency deems 519 
necessary. The database must be available online to both the 520 
agency and the public and have the capability to compare the 521 
availability of providers to network adequacy standards and to 522 
accept and display feedback from each provider's patients. Each 523 
plan shall submit quarterly reports to the agency identifying 524 
the number of enrollees assigned to each primary care provider. 525     
 
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The agency shall conduct, or contract for, systematic and 526 
continuous testing of the provider network databases maintained 527 
by each plan to confirm accuracy, confirm that behavioral health 528 
providers are accepting enrollees, and confirm that enrollees 529 
have timely access to all covered benefits behavioral health 530 
services. 531 
 2.  Each managed care plan must publish any prescribed drug 532 
formulary or preferred drug list on the plan's website in a 533 
manner that is accessible to and searchable by enrollees and 534 
providers. The plan must update the list within 24 hours after 535 
making a change. Each plan must ensure that the prior 536 
authorization process for prescribed drugs is readily accessible 537 
to health care providers, including posting appropriate contact 538 
information on its website and providing timely responses to 539 
providers. For Medicaid recip ients diagnosed with hemophilia who 540 
have been prescribed anti -hemophilic-factor replacement 541 
products, the agency shall provide for those products and 542 
hemophilia overlay services through the agency's hemophilia 543 
disease management program. 544 
 3.  Managed care plans, and their fiscal agents or 545 
intermediaries, must accept prior authorization requests for any 546 
service electronically. 547 
 4.  Managed care plans serving children in the care and 548 
custody of the Department of Children and Families must maintain 549 
complete medical, dental, and behavioral health encounter 550     
 
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information and participate in making such information available 551 
to the department or the applicable contracted community -based 552 
care lead agency for use in providing comprehensive and 553 
coordinated case manageme nt. The agency and the department shall 554 
establish an interagency agreement to provide guidance for the 555 
format, confidentiality, recipient, scope, and method of 556 
information to be made available and the deadlines for 557 
submission of the data. The scope of info rmation available to 558 
the department shall be the data that managed care plans are 559 
required to submit to the agency. The agency shall determine the 560 
plan's compliance with standards for access to medical, dental, 561 
and behavioral health services; the use of me dications; and 562 
followup on all medically necessary services recommended as a 563 
result of early and periodic screening, diagnosis, and 564 
treatment. 565 
 (f)  Continuous improvement. —The agency shall establish 566 
specific performance standards and expected milestones o r 567 
timelines for improving performance over the term of the 568 
contract. 569 
 1.  Each managed care plan shall establish an internal 570 
health care quality improvement system, including enrollee 571 
satisfaction and disenrollment surveys. The quality improvement 572 
system must include incentives and disincentives for network 573 
providers. 574 
 2.  Each plan must collect and report the Health Plan 575     
 
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Employer Data and Information Set (HEDIS) measures, as specified 576 
by the agency. These measures must be published on the plan's 577 
website in a manner that allows recipients to reliably compare 578 
the performance of plans. The agency shall use the HEDIS 579 
measures as a tool to monitor plan performance. 580 
 3.  Each managed care plan must be accredited by the 581 
National Committee for Quality Assurance, th e Joint Commission, 582 
or another nationally recognized accrediting body, or have 583 
initiated the accreditation process, within 1 year after the 584 
contract is executed. For any plan not accredited within 18 585 
months after executing the contract, the agency shall su spend 586 
automatic assignment under s. 409.977 and 409.984. 587 
 4.  By the end of the fourth year of the first contract 588 
term, the agency shall issue a request for information to 589 
determine whether cost savings could be achieved by contracting 590 
for plan oversight a nd monitoring, including analysis of 591 
encounter data, assessment of performance measures, and 592 
compliance with other contractual requirements. 593 
 (3)  ACHIEVED SAVINGS REBATE. — 594 
 (k)  Plans that contribute funds pursuant to paragraph 595 
(4)(b) or paragraph (4)(c) may reduce the rebate owed by an 596 
amount equal to the amount of the contribution. 597 
 (4)  MEDICAL LOSS RATIO. —If required as a condition of a 598 
waiver, the agency may calculate a medical loss ratio for 599 
managed care plans. The calculation shall use uniform finan cial 600     
 
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data collected from all plans and shall be computed for each 601 
plan on a statewide basis. The method for calculating the 602 
medical loss ratio shall meet the following criteria: 603 
 (b)  Funds provided by plans to graduate medical education 604 
institutions to underwrite the costs of residency positions in 605 
graduate medical education programs, undergraduate and graduate 606 
student positions in nursing education programs, or student 607 
positions in any degree or technical program deemed a critical 608 
shortage area by the age ncy shall be classified as medical 609 
expenditures, provided that the funding is sufficient to sustain 610 
the positions for the number of years necessary to complete the 611 
program residency requirements and the residency or student 612 
positions funded by the plans ar e actively involved in the 613 
institution's provision active providers of care to Medicaid and 614 
uninsured patients. 615 
 Section 7.  Subsection (2) of section 409.968, Florida 616 
Statutes, is amended to read: 617 
 409.968  Managed care plan payments. — 618 
 (2)  Provider service networks may be prepaid plans and 619 
receive per-member, per-month payments negotiated pursuant to 620 
the procurement process described in s. 409.966. Provider 621 
service networks that choose not to be prepaid plans shall 622 
receive fee-for-service rates with a shared savings settlement. 623 
The fee-for-service option shall be available to a provider 624 
service network only for the first 2 years of its operation. The 625     
 
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agency shall annually conduct cost reconciliations to determine 626 
the amount of cost savin gs achieved by fee-for-service provider 627 
service networks for the dates of service within the period 628 
being reconciled. Only payments for covered services for dates 629 
of service within the reconciliation period and paid within 6 630 
months after the last date of s ervice in the reconciliation 631 
period must be included. The agency shall perform the necessary 632 
adjustments for the inclusion of claims incurred but not 633 
reported within the reconciliation period for claims that could 634 
be received and paid by the agency after t he 6-month claims 635 
processing time lag. The agency shall provide the results of the 636 
reconciliations to the fee -for-service provider service networks 637 
within 45 days after the end of the reconciliation period. The 638 
fee-for-service provider service networks sha ll review and 639 
provide written comments or a letter of concurrence to the 640 
agency within 45 days after receipt of the reconciliation 641 
results. This reconciliation is considered final. 642 
 Section 8.  Subsection (3) and paragraph (b) of subsection 643 
(4) of section 409.973, Florida Statutes, are amended, and 644 
paragraphs (c) through (g) are added to subsection (5) of that 645 
section, to read: 646 
 409.973  Benefits.— 647 
 (3)  HEALTHY BEHAVIORS. —Each plan operating in the managed 648 
medical assistance program shall establish a pro gram to 649 
encourage and reward healthy behaviors. At a minimum, each plan 650     
 
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must establish a medically approved tobacco use smoking 651 
cessation program, a medically directed weight loss program, and 652 
a medically approved alcohol or substance abuse recovery 653 
program, which shall include, at a minimum, a focus on opioid 654 
abuse recovery. Each plan must identify enrollees who use 655 
tobacco smoke, are morbidly obese, or are diagnosed with alcohol 656 
or substance abuse in order to establish written agreements to 657 
secure the enrollees' commitment to participation in these 658 
programs. 659 
 (4)  PRIMARY CARE INITIATIVE. —Each plan operating in the 660 
managed medical assistance program shall establish a program to 661 
encourage enrollees to establish a relationship with their 662 
primary care provider. Each plan shall: 663 
 (b)  If the enrollee was not a Medicaid recipient before 664 
enrollment in the plan, assist the enrollee in scheduling an 665 
appointment with the primary care provider. If possible the 666 
appointment should be made within 30 days after enroll ment in 667 
the plan. For enrollees who become eligible for Medicaid between 668 
January 1, 2014, and December 31, 2015, the appointment should 669 
be scheduled within 6 months after enrollment in the plan. 670 
 (5)  PROVISION OF DENTAL SERVICES. — 671 
 (c)  Given the effect o f oral health on overall health, 672 
each prepaid dental plan shall establish a program to improve 673 
dental health outcomes and increase utilization of preventive 674 
dental services. The agency shall establish performance and 675     
 
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outcome measures, regularly assess plan performance, and publish 676 
data on such measures. Program components shall, at a minimum, 677 
include: 678 
 1.  An education program to inform enrollees of the 679 
connection between oral health and overall health and preventive 680 
steps to improve dental health. 681 
 2.  An enrollee incentive program designed to increase 682 
utilization of preventive dental services. 683 
 (d)  The agency shall annually review encounter data and 684 
claims expenditures in the Statewide Medicaid Managed Care 685 
program for emergency department visits relating to nontraumatic 686 
and ambulatory sensitive dental conditions and reconcile service 687 
expenditures for these visits against capitation payments made 688 
to the prepaid dental plans. 689 
 (e)  By October 1, 2022, each prepaid dental plan and each 690 
nondental managed care plan shall enter into a mutual 691 
coordination of benefits agreement that includes data sharing 692 
requirements and coordination protocols to support the provision 693 
of dental services and reduction of potentially preventable 694 
events. 695 
 (f)  Beginning July 2022, ea ch prepaid dental plan and each 696 
nondental managed care plan must meet quarterly to collaborate 697 
on specific goals to improve quality of care and enrollee 698 
health. Plans shall mutually establish, in writing, shared 699 
goals, specific and measurable objectives, a nd complementary 700     
 
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strategies pertinent to state Medicaid priorities. The goals, 701 
objectives, and strategies must address improving access and 702 
appropriate utilization, maximizing efficiency by integrating 703 
health and dental care, improving patient experiences, attending 704 
to unmet social needs that affect preventive care utilization 705 
and early disease detection, and identifying and reducing 706 
disparities. 707 
 (g)  The agency shall establish provider network 708 
requirements for dental plans. In addition, the agency must 709 
establish provider network requirements sufficient to ensure 710 
access to medically necessary sedation services, including, but 711 
not limited to, network participation by dentists credentialed 712 
to provide services in inpatient and outpatient settings and by 713 
inpatient and outpatient facilities and anesthesia service 714 
providers. The agency shall assess plan compliance with network 715 
adequacy requirements at least quarterly and shall enforce such 716 
requirements in a timely manner. 717 
 Section 9.  Subsections (1) and (2) of section 409.974, 718 
Florida Statutes, are amended to read: 719 
 409.974  Eligible plans. — 720 
 (1)  ELIGIBLE PLAN SELECTION. —The agency shall select 721 
eligible plans for the managed medical assistance program 722 
through the procurement process described in s. 409.966. The 723 
agency shall select at least one provider service network for 724 
each region, if any submit a responsive bid. The agency shall 725     
 
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procure the number of plans, inclusive of statewide plans, if 726 
any, for each region as follows: 727 
 (a)  At least three plans and up to four plans for Region 728 
A. 729 
 (b)  At least five plans and up to six plans for Region B. 730 
 (c)  At least six plans and up to ten plans for Region C. 731 
 (d)  At least five plans and up to six plans for Region D. 732 
 (e)  At least three plans and up to four plans for Region 733 
E. 734 
 (f)  At least three plans and up to five plans for Region 735 
F. 736 
 (g)  At least three plans and up to five plans for Region 737 
G. 738 
 (h)  At least five plans and up to ten plans for Region H 739 
The agency shall notice invitations to negotiate no later than 740 
January 1, 2013. 741 
 (a)  The agency shall procure two plans for Region 1. At 742 
least one plan shall be a provider service network if any 743 
provider service networks submit a responsive bid. 744 
 (b)  The agency shall procure two plans for Region 2. At 745 
least one plan shall be a provider service network if any 746 
provider service networks submit a responsive bid. 747 
 (c)  The agency shall procure at least three plans and up 748 
to five plans for Region 3. At least one plan must be a provider 749 
service network if any provider serv ice networks submit a 750     
 
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responsive bid. 751 
 (d)  The agency shall procure at least three plans and up 752 
to five plans for Region 4. At least one plan must be a provider 753 
service network if any provider service networks submit a 754 
responsive bid. 755 
 (e)  The agency shall procure at least two plans and up to 756 
four plans for Region 5. At least one plan must be a provider 757 
service network if any provider service networks submit a 758 
responsive bid. 759 
 (f)  The agency shall procure at least four plans and up to 760 
seven plans for Region 6. At least one plan must be a provider 761 
service network if any provider service networks submit a 762 
responsive bid. 763 
 (g)  The agency shall procure at least three plans and up 764 
to six plans for Region 7. At least one plan must be a provider 765 
service network if any provider service networks submit a 766 
responsive bid. 767 
 (h)  The agency shall procure at least two plans and up to 768 
four plans for Region 8. At least one plan must be a provider 769 
service network if any provider service networks submit a 770 
responsive bid. 771 
 (i)  The agency shall procure at least two plans and up to 772 
four plans for Region 9. At least one plan must be a provider 773 
service network if any provider service networks submit a 774 
responsive bid. 775     
 
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 (j)  The agency shall procure at least two plans and up t o 776 
four plans for Region 10. At least one plan must be a provider 777 
service network if any provider service networks submit a 778 
responsive bid. 779 
 (k)  The agency shall procure at least five plans and up to 780 
10 plans for Region 11. At least one plan must be a prov ider 781 
service network if any provider service networks submit a 782 
responsive bid. 783 
 784 
If no provider service network submits a responsive bid, the 785 
agency shall procure no more than one less than the maximum 786 
number of eligible plans permitted in that region. With in 12 787 
months after the initial invitation to negotiate, the agency 788 
shall attempt to procure a provider service network. The agency 789 
shall notice another invitation to negotiate only with provider 790 
service networks in those regions where no provider service 791 
network has been selected. 792 
 (2)  QUALITY SELECTION CRITERIA. —In addition to the 793 
criteria established in s. 409.966, the agency shall consider 794 
evidence that an eligible plan has obtained signed contracts or 795 
written agreements or signed contracts or has made substantial 796 
progress in establishing relationships with providers before the 797 
plan submits submitting a response. The agency shall evaluate 798 
and give special weight to evidence of signed contracts with 799 
essential providers as defined by the agency pursuant to s. 800     
 
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409.975(1). The agency shall exercise a preference for plans 801 
with a provider network in which over 10 percent of the 802 
providers use electronic health records, as defined in s. 803 
408.051. When all other factors are equal, the agency shall 804 
consider whether the organization has a contract to provide 805 
managed long-term care services in the same region and shall 806 
exercise a preference for such plans. 807 
 Section 10.  Paragraphs (a) and (b) of subsection (1) of 808 
section 409.975, Florida Statutes, are amended to read : 809 
 409.975  Managed care plan accountability. —In addition to 810 
the requirements of s. 409.967, plans and providers 811 
participating in the managed medical assistance program shall 812 
comply with the requirements of this section. 813 
 (1)  PROVIDER NETWORKS. —Managed care plans must develop and 814 
maintain provider networks that meet the medical needs of their 815 
enrollees in accordance with standards established pursuant to 816 
s. 409.967(2)(c). Except as provided in this section, managed 817 
care plans may limit the providers in the ir networks based on 818 
credentials, quality indicators, and price. 819 
 (a)  Plans must include all providers in the region that 820 
are classified by the agency as essential Medicaid providers, 821 
unless the agency approves, in writing, an alternative 822 
arrangement for securing the types of services offered by the 823 
essential providers. Providers are essential for serving 824 
Medicaid enrollees if they offer services that are not available 825     
 
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from any other provider within a reasonable access standard, or 826 
if they provided a subst antial share of the total units of a 827 
particular service used by Medicaid patients within the region 828 
during the last 3 years and the combined capacity of other 829 
service providers in the region is insufficient to meet the 830 
total needs of the Medicaid patients. The agency may not 831 
classify physicians and other practitioners as essential 832 
providers.  833 
 1. The agency, at a minimum, shall determine which 834 
providers in the following categories are essential Medicaid 835 
providers: 836 
 a.1. Federally qualified health centers. 837 
 b.2. Statutory teaching hospitals as defined in s. 838 
408.07(46). 839 
 c.3. Hospitals that are trauma centers as defined in s. 840 
395.4001(15). 841 
 d.4. Hospitals located at least 25 miles from any other 842 
hospital with similar services. 843 
 2.  Regional perinatal intensive care centers as defined in 844 
s. 383.16(2) are regional resources and essential providers for 845 
all managed care plans in the applicable region. All managed 846 
care plans in a region must have a network contract with each 847 
regional perinatal intensive car e center in the region. 848 
 3. Managed care plans that have not contracted with all 849 
essential providers in the region as of the first date of 850     
 
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recipient enrollment, or with whom an essential provider has 851 
terminated its contract, must negotiate in good faith w ith such 852 
essential providers for 1 year or until an agreement is reached, 853 
whichever is first. Payments for services rendered by a 854 
nonparticipating essential provider shall be made at the 855 
applicable Medicaid rate as of the first day of the contract 856 
between the agency and the plan. A rate schedule for all 857 
essential providers shall be attached to the contract between 858 
the agency and the plan. After 1 year, managed care plans that 859 
are unable to contract with essential providers shall notify the 860 
agency and propose an alternative arrangement for securing the 861 
essential services for Medicaid enrollees. The arrangement must 862 
rely on contracts with other participating providers, regardless 863 
of whether those providers are located within the same region as 864 
the nonparticipating essential service provider. If the 865 
alternative arrangement is approved by the agency, payments to 866 
nonparticipating essential providers after the date of the 867 
agency's approval shall equal 90 percent of the applicable 868 
Medicaid rate. Except for payment f or emergency services, if the 869 
alternative arrangement is not approved by the agency, payment 870 
to nonparticipating essential providers shall equal 110 percent 871 
of the applicable Medicaid rate. 872 
 873 
The agency shall assess plan compliance with this paragraph at 874 
least quarterly. No later than January 1 of each year, the 875     
 
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agency must impose contract enforcement financial sanctions on, 876 
or assess contract damages against, a plan without a network 877 
contract as required by this subsection with an essential 878 
provider subject to the requirements of s. 409.908(26). 879 
 (b)  Certain providers are statewide resources and 880 
essential providers for all managed care plans in all regions. 881 
All managed care plans must include these essential providers in 882 
their networks. 883 
 1. Statewide essential providers include: 884 
 a.1. Faculty plans of Florida medical schools. 885 
 2.  Regional perinatal intensive care centers as defined in 886 
s. 383.16(2). 887 
 b.3. Hospitals licensed as specialty children's hospitals 888 
as defined in s. 395.002(28). 889 
 c.  Florida cancer hospitals that meet the criteria in 42 890 
U.S.C. s. 1395ww(d)(1)(B)(v). 891 
 4.  Accredited and integrated systems serving medically 892 
complex children which comprise separately licensed, but 893 
commonly owned, health care providers delivering at least the 894 
following services: medical group home, in -home and outpatient 895 
nursing care and therapies, pharmacy services, durable medical 896 
equipment, and Prescribed Pediatric Extended Care. 897 
 2. Managed care plans that have not contracted with all 898 
statewide essential provi ders in all regions as of the first 899 
date of recipient enrollment must continue to negotiate in good 900     
 
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faith. Payments to physicians on the faculty of nonparticipating 901 
Florida medical schools shall be made at the applicable Medicaid 902 
rate. Payments for service s rendered by regional perinatal 903 
intensive care centers shall be made at the applicable Medicaid 904 
rate as of the first day of the contract between the agency and 905 
the plan. Except for payments for emergency services, payments 906 
to nonparticipating specialty ch ildren's hospitals and payments 907 
to nonparticipating Florida cancer hospitals that meet the 908 
criteria in 42 U.S.C. s. 1395ww(d)(1)(B)(v) shall equal the 909 
highest rate established by contract between that provider and 910 
any other Medicaid managed care plan. 911 
 912 
The agency shall assess plan compliance with this paragraph at 913 
least quarterly. No later than January 1 of each year, the 914 
agency must impose contract enforcement financial sanctions on, 915 
or assess contract damages against, a plan without a network 916 
contract as required by this subsection with an essential 917 
provider subject to the requirements of s. 409.908(26). 918 
 Section 11.  Subsections (1), (4), and (5) of section 919 
409.977, Florida Statutes, are amended to read: 920 
 409.977  Enrollment. — 921 
 (1)  The agency shall aut omatically enroll into a managed 922 
care plan those Medicaid recipients who do not voluntarily 923 
choose a plan pursuant to s. 409.969. The agency shall 924 
automatically enroll recipients in plans that meet or exceed the 925     
 
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performance or quality standards established pursuant to s. 926 
409.967 and may not automatically enroll recipients in a plan 927 
that is deficient in those performance or quality standards. 928 
When a specialty plan is available to accommodate a specific 929 
condition or diagnosis of a recipient, the agency shall assign 930 
the recipient to that plan. The agency may not automatically 931 
enroll recipients in a managed medical assistance plan that has 932 
more than 50 percent of the enrollees in the region. In the 933 
first year of the first contract term only, if a recipient was 934 
previously enrolled in a plan that is still available in the 935 
region, the agency shall automatically enroll the recipient in 936 
that plan unless an applicable specialty plan is available. 937 
Except as otherwise provided in this part, the agency may not 938 
engage in practices that are designed to favor one managed care 939 
plan over another. 940 
 (4)  The agency shall develop a process to enable a 941 
recipient with access to employer -sponsored health care coverage 942 
to opt out of all managed care plans and to use Medicaid 943 
financial assistance to pay for the recipient's share of the 944 
cost in such employer -sponsored coverage. Contingent upon 945 
federal approval, The agency shall also enable recipients with 946 
access to other insurance or related products providing access 947 
to health care servi ces created pursuant to state law, including 948 
any product available under the Florida Health Choices Program, 949 
or any health exchange, to opt out. The amount of financial 950     
 
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assistance provided for each recipient may not exceed the amount 951 
of the Medicaid premiu m that would have been paid to a managed 952 
care plan for that recipient. The agency shall seek federal 953 
approval to require Medicaid recipients with access to employer -954 
sponsored health care coverage to enroll in that coverage and 955 
use Medicaid financial assist ance to pay for the recipient's 956 
share of the cost for such coverage. The amount of financial 957 
assistance provided for each recipient may not exceed the amount 958 
of the Medicaid premium that would have been paid to a managed 959 
care plan for that recipient. 960 
 (5)  Specialty plans serving children in the care and 961 
custody of the department may serve such children as long as 962 
they remain in care, including those remaining in extended 963 
foster care pursuant to s. 39.6251, or are in subsidized 964 
adoption and continue to be e ligible for Medicaid pursuant to s. 965 
409.903, or are receiving guardianship assistance payments and 966 
continue to be eligible for Medicaid pursuant to s. 409.903 . 967 
 Section 12.  The Agency for Health Care Administration must 968 
amend existing contracts under th e Statewide Medicaid Managed 969 
Care program to implement the amendments made by this act to ss. 970 
409.908, 409.967, 409.973, 409.975, and 409.977, Florida 971 
Statutes. The agency must implement the amendments made by this 972 
act to ss. 409.966, 409.974, and 409.981, Florida Statutes, for 973 
the 2025 plan year. 974 
 Section 13.  Subsection (2) of section 409.981, Florida 975     
 
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Statutes, is amended to read: 976 
 409.981  Eligible long -term care plans.— 977 
 (2)  ELIGIBLE PLAN SELECTION. —The agency shall select 978 
eligible plans for the long-term care managed care program 979 
through the procurement process described in s. 409.966. The 980 
agency shall select at least one provider service network for 981 
each region, if any provider service network submits a 982 
responsive bid. The agency shall procure the number of plans, 983 
inclusive of statewide plans, if any, for each region as 984 
follows: 985 
 (a)  At least three plans and up to four plans for Region 986 
A. 987 
 (b)  At least three plans and up to six plans for Region B. 988 
 (c)  At least five plans and up to ten plans for R egion C. 989 
 (d)  At least three plans and up to six plans for Region D. 990 
 (e)  At least three plans and up to four plans for Region 991 
E. 992 
 (f)  At least three plans and up to five plans for Region 993 
F. 994 
 (g)  At least three plans and up to four plans for Region 995 
G. 996 
 (h)  At least five plans and up to ten plans for Region H. 997 
 (a)  Two plans for Region 1. At least one plan must be a 998 
provider service network if any provider service networks submit 999 
a responsive bid. 1000     
 
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 (b)  Two plans for Region 2. At least one plan must be a 1001 
provider service network if any provider service networks submit 1002 
a responsive bid. 1003 
 (c)  At least three plans and up to five plans for Region 1004 
3. At least one plan must be a provider service network if any 1005 
provider service networks submit a responsive bi d. 1006 
 (d)  At least three plans and up to five plans for Region 1007 
4. At least one plan must be a provider service network if any 1008 
provider service network submits a responsive bid. 1009 
 (e)  At least two plans and up to four plans for Region 5. 1010 
At least one plan must be a provider service network if any 1011 
provider service networks submit a responsive bid. 1012 
 (f)  At least four plans and up to seven plans for Region 1013 
6. At least one plan must be a provider service network if any 1014 
provider service networks submit a respon sive bid. 1015 
 (g)  At least three plans and up to six plans for Region 7. 1016 
At least one plan must be a provider service network if any 1017 
provider service networks submit a responsive bid. 1018 
 (h)  At least two plans and up to four plans for Region 8. 1019 
At least one plan must be a provider service network if any 1020 
provider service networks submit a responsive bid. 1021 
 (i)  At least two plans and up to four plans for Region 9. 1022 
At least one plan must be a provider service network if any 1023 
provider service networks submit a resp onsive bid. 1024 
 (j)  At least two plans and up to four plans for Region 10. 1025     
 
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At least one plan must be a provider service network if any 1026 
provider service networks submit a responsive bid. 1027 
 (k)  At least five plans and up to 10 plans for Region 11. 1028 
At least one plan must be a provider service network if any 1029 
provider service networks submit a responsive bid. 1030 
 1031 
If no provider service network submits a responsive bid in a 1032 
region other than Region A 1 or Region 2, the agency shall 1033 
procure no more than one fewer less than the maximum number of 1034 
eligible plans permitted in that region. Within 12 months after 1035 
the initial invitation to negotiate, the agency shall attempt to 1036 
procure a provider service network. The agency shall notice 1037 
another invitation to negotiate only wi th provider service 1038 
networks in regions where no provider service network has been 1039 
selected. 1040 
 Section 14.  Subsection (4) of section 409.8132, Florida 1041 
Statutes, is amended to read: 1042 
 409.8132  Medikids program component. — 1043 
 (4)  APPLICABILITY OF LAWS RELAT ING TO MEDICAID.—The 1044 
provisions of ss. 409.902, 409.905, 409.906, 409.907, 409.908, 1045 
409.912, 409.9121, 409.9122, 409.9123, 409.9124, 409.9127, 1046 
409.9128, 409.913, 409.916, 409.919, 409.920, and 409.9205 apply 1047 
to the administration of the Medikids program co mponent of the 1048 
Florida Kidcare program, except that s. 409.9122 applies to 1049 
Medikids as modified by the provisions of subsection (7). 1050     
 
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 Section 15.  Paragraph (d) of subsection (13) of section 1051 
409.906, Florida Statutes, is amended to read: 1052 
 409.906  Optional Medicaid services. —Subject to specific 1053 
appropriations, the agency may make payments for services which 1054 
are optional to the state under Title XIX of the Social Security 1055 
Act and are furnished by Medicaid providers to recipients who 1056 
are determined to be el igible on the dates on which the services 1057 
were provided. Any optional service that is provided shall be 1058 
provided only when medically necessary and in accordance with 1059 
state and federal law. Optional services rendered by providers 1060 
in mobile units to Medicaid recipients may be restricted or 1061 
prohibited by the agency. Nothing in this section shall be 1062 
construed to prevent or limit the agency from adjusting fees, 1063 
reimbursement rates, lengths of stay, number of visits, or 1064 
number of services, or making any other adj ustments necessary to 1065 
comply with the availability of moneys and any limitations or 1066 
directions provided for in the General Appropriations Act or 1067 
chapter 216. If necessary to safeguard the state's systems of 1068 
providing services to elderly and disabled person s and subject 1069 
to the notice and review provisions of s. 216.177, the Governor 1070 
may direct the Agency for Health Care Administration to amend 1071 
the Medicaid state plan to delete the optional Medicaid service 1072 
known as "Intermediate Care Facilities for the Devel opmentally 1073 
Disabled." Optional services may include: 1074 
 (13)  HOME AND COMMUNITY -BASED SERVICES.— 1075     
 
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 (d)  The agency shall seek federal approval to pay for 1076 
flexible services for persons with severe mental illness or 1077 
substance use disorders, including, but not limited to, 1078 
temporary housing assistance. Payments may be made as enhanced 1079 
capitation rates or incentive payments to managed care plans 1080 
that meet the requirements of s. 409.968(3) s. 409.968(4). 1081 
 Section 16.  This act shall take effect July 1, 2022. 1082