CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 1 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 2 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 3 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 4 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 5 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 6 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 7 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 8 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 9 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 10 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 11 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 12 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 13 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 14 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 15 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 16 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 17 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 18 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 19 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 20 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 21 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 22 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 23 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 24 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 25 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 26 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 27 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 28 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 29 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 30 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 31 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 32 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 33 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 34 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 35 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 36 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 37 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 38 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 39 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 40 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 41 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 42 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 43 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 CS/HB 7047 2022 CODING: Words stricken are deletions; words underlined are additions. hb7047-01-c1 Page 44 of 44 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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