Florida 2022 2022 Regular Session

Florida Senate Bill S1950 Analysis / Analysis

Filed 01/25/2022

                    The Florida Senate 
BILL ANALYSIS AND FISCAL IMPACT STATEMENT 
(This document is based on the provisions contained in the legislation as of the latest date listed below.) 
Prepared By: The Professional Staff of the Committee on Health Policy  
 
BILL: SB 1950 
INTRODUCER:  Senator Brodeur 
SUBJECT:  Statewide Medicaid Managed Care Program 
DATE: January 25, 2022 
 
 ANALYST STAFF DIRECTOR  REFERENCE  	ACTION 
1. Smith Brown HP Pre-meeting 
2.     AHS   
3.     AP  
 
I. Summary: 
SB 1950 makes revisions to the Florida Medicaid program. In Florida, the majority of Medicaid 
recipients receive their services through a managed care plan contracted with the Agency for 
Health Care Administration (AHCA) under the Statewide Medicaid Managed Care (SMMC) 
program. The SMMC program has two components, the Managed Medical Assistance (MMA) 
program and the Long-term Care (LTC) program. The SMMC program was fully implemented 
in August 2014 and was re-procured for a period beginning December 2018 and ending in 
December 2023. In 2020, the Legislature extended the allowable term of the SMMC contracts 
from five to six years. As a result, the current contracts will end in December 2024. The AHCA 
will conduct its next procurement in 2022-2023 with the new contracts beginning at the end of 
2024. 
 
The bill amends Part IV of ch. 409, F.S., relating to the SMMC program, and affects the 
recurring competitive procurement of program contracts with Medicaid managed care plans. The 
bill also makes conforming changes to Part III. SB 1950: 
 Requires provider service networks (PSNs) to be reimbursed on a prepaid basis. 
 Authorizes the AHCA to select eligible managed care plans to provide services through a 
single statewide procurement and deletes the requirement that the AHCA conduct separate 
and simultaneous procurements for each Medicaid region. 
 Authorizes the AHCA to award contracts to managed care plans on a regional or statewide 
basis. 
 Outlines a new regional structure for plan selection under the MMA and LTC programs with 
a minimum and maximum number of plans designated for each region. The bill provides for 
eight regions named by letters (Regions A-H), rather than the 11 regions named by numbers 
(Regions 1-11) in current law. 
 Requires the AHCA to award a contract to at least one PSN in each of the eight regions under 
the MMA program and under the LTC program. 
REVISED:   BILL: SB 1950   	Page 2 
 
 Amends the Achieved Savings Rebates (ASR) structure to change thresholds relating to 
profit-sharing for managed care plans. 
 Requires managed care plans to include Florida cancer hospitals that meet specified federal 
criteria in their networks as essential providers. 
 Revises MMA plan healthy behaviors program requirements to include tobacco cessation 
programs, rather than smoking cessation programs, and to clarify that substance abuse 
programs must include opioid abuse recovery. 
 Authorizes an MMA child welfare specialty plan to serve a child in a permanent 
guardianship situation whose parents receiving payments through the Guardianship 
Assistance Program. 
 Deletes obsolete language. 
 
SB 1950 has an indeterminate fiscal impact. 
 
The bill provides an effective date of July 1, 2022. 
II. Present Situation: 
Florida Medicaid Program 
The Medicaid program is a joint federal-state program that finances health coverage for 
individuals, including eligible low-income adults, children, pregnant women, elderly adults, and 
persons with disabilities.
1
 The Centers for Medicare & Medicaid Services (CMS) within the U.S. 
Department of Health and Human Services (HHS) is responsible for administering the federal 
Medicaid program. Florida Medicaid is the health care safety net for low-income Floridians. 
Florida’s program is administered by the AHCA and financed through state and federal funds.
2
 
 
A Medicaid state plan is an agreement between a state and the federal government describing 
how the state administers its Medicaid programs. The state plan establishes groups of individuals 
covered under the Medicaid program, services that are provided, payment methodologies, and 
other administrative and organizational requirements. 
 
In order to participate in Medicaid, federal law requires states to cover certain population groups 
(mandatory eligibility groups) and gives states the flexibility to cover other population groups 
(optional eligibility groups).
 
States set individual eligibility criteria within federal minimum 
standards. The AHCA may seek an amendment to the state plan as necessary to comply with 
federal or state laws or to implement program changes. States send state plan amendments to the 
federal CMS for review and approval.
3
 
 
Medicaid enrollees generally receive benefits through one of two service-delivery systems: fee-
for-service or managed care. Under fee-for-service, health care providers are paid by the state 
Medicaid program for each service provided to a Medicaid enrollee. Under managed care, the 
state contracts with private managed care plans for the coordination and payment of services for 
                                                
1
 Medicaid.gov, Medicaid, available at https://www.medicaid.gov/medicaid/index.html (last visited Jan. 23, 2022). 
2
 Section 20.42, F.S. 
3
 Medicaid.gov, Medicaid State Plan Amendments, available at https://www.medicaid.gov/medicaid/medicaid-state-plan-
amendments/index.html (last visited Jan. 23, 2022).  BILL: SB 1950   	Page 3 
 
Medicaid enrollees. The state pays the managed care plans a capitation payment, or fixed 
monthly payment, per recipient enrolled in the managed care plan. 
 
Statewide Medicaid Managed Care (SMMC) Program 
In Florida, the majority of Medicaid recipients receive their services through a managed care 
plan contracted with the AHCA under the SMMC program. The SMMC program has three 
components, the MMA program that provides primary care, acute care, and behavioral health 
care services; LTC program that provides long-term care services, including nursing facility and 
home and community-based services; and the dental component. The SMMC minimum benefits 
are authorized by federal authority and are specifically required in ss. 409.973 for MMA plans 
and 409.98, F.S. for LTC plans. 
 
In 2011, the Florida Legislature created Part IV of ch. 409, F.S., directing the AHCA to create 
the SMMC program and contract with managed care plans on a regional basis to provide services 
to eligible recipients.
4
 Part VI of ch. 409 addresses program eligibility and enrollment, plan 
selection, covered benefits, plan accountability, and plan payment: 
 Sections 409.965 through 409.969, F.S., apply to the SMMC program as a whole (including 
the LTC and MMA components); 
 Sections 409.971 through 409.977, F.S., apply to the MMA program; and 
 Sections 409.978 through 409.985, F.S., apply to the LTC program. 
 
Sections 409.966, 409.974, and 409.981, F.S., outline the requirements for selecting eligible 
plans to participate in the SMMC program. 
 
Eligible Plan Selection
5
 
The SMMC program was fully implemented in August 2014. During the initial SMMC 
procurement, the AHCA awarded contracts to 18 plans, including seven provider service 
networks (PSNs). By the end of the first contract period, due to various mergers, acquisitions, 
and conversions to HMO status, only one PSN remained (South Florida Community Care 
Network, DBA Community Care Plan). 
 
During the second procurement for a period beginning December 2018 and ending in December 
2023, the AHCA awarded contracts to 16 plans, including five PSNs, (Community Care Plan, 
Florida Community Care, Lighthouse, Miami Children’s, and Vivida) but only three of the PSNs 
currently remain in the program due to mergers and acquisitions with a total of 10 health plans. 
In 2020, the Legislature extended the allowable term of the SMMC contracts from five to six 
years. As a result, the AHCA the current contracts will end in December 2024. The AHCA will 
conduct its next procurement in 2022-2023 with the new contracts beginning at the end of 2024. 
 
Various mergers and acquisitions have occurred during the lifecycle of each SMMC contract, 
resulting in a situation where a majority of enrollees are receiving services from statewide plans 
that operate in all 11 regions. As of October 1, 2021, 40 percent of the SMMC population, 
                                                
4
 Chapter 2011-134, Laws of Fla. 
5
 Agency for Health Care Administration, 2022 Agency Legislative Bill Analysis for SB 1950, Jan. 19, 2022 (on file with the 
Senate Committee on Health Policy).  BILL: SB 1950   	Page 4 
 
including those enrolled in a specialty plan, were enrolled in a plan operating statewide and 79 
percent were enrolled in a plan that operates in a least eight of the 11 regions. Based on the 2017-
2018 procurement, as impacted by various mergers, acquisitions, and name changes that have 
occurred since the procurement, the following charts reflect the currently operational SMMC 
plans as of October 1, 2021
6
: 
 
 
                                                
6
 Id.  BILL: SB 1950   	Page 5 
 
 
 
Provider Service Networks (PSNs) 
A PSN in the Medicaid program is a managed care plan established or organized and operated by 
a health care provider, or group of affiliated health care providers, which provides a substantial 
proportion of the health care items and services under a contract directly through the provider or 
affiliated group of providers and may make arrangements with physicians or other health care 
professionals, health care institutions, or any combination of such individuals or institutions to 
assume all or part of the financial risk on a prospective basis for the provision of basic health  BILL: SB 1950   	Page 6 
 
services by the physicians, by other health professionals, or through the institutions.
7
 The health 
care providers must have a controlling interest in the governing body of the PSN. The AHCA is 
authorized to contract with PSNs under s. 409.912(1), F.S., and may currently reimburse PSNs 
on a fee-for-service basis with a shared savings settlement or on a prepaid basis with per-
member, per-month payments. A PSN may be reimbursed on a fee-for-service basis for only the 
first two years of the plan’s operation.
8
 
 
Specialty Plans
9
 
An MMA managed care plan can participate in the MMA program as a standard plan or as a 
specialty plan. A specialty plan is a managed care plan that serves Medicaid recipients who meet 
specified criteria based on age, medical condition, or diagnosis.
10
 Under federal Medicaid law 
and the SMMC waiver, each recipient has a choice of plans and may select any available plan 
unless that plan is restricted by contract to a specific population that does not include the 
recipient.
11
 If a specialty plan is available to accommodate a specific condition or diagnosis of a 
Medicaid recipient, the AHCA must automatically enroll the recipient in that plan unless the 
recipient chooses a different plan.
12
 MMA specialty plans cover the same health care services as 
the standard MMA plans, and in addition, they must maintain a care coordination program 
tailored to the special needs of the plan’s enrollees.  
 
When a recipient is eligible for more than one MMA specialty plan, the AHCA uses a ranking to 
determine which MMA specialty plan to assign. Unless the recipient chooses to enroll in another 
MMA specialty plan for which he or she is eligible, or in a standard MMA plan offered in his or 
her region, the recipient is automatically assigned to the specialty plan listed highest on the 
ranking. The AHCA has awarded specialty plan contracts to serve enrollees with specialty 
conditions including severe mental illness, HIV/AIDS, as well as children with special health 
care needs, and those involved with Florida’s child welfare system. 
 
Achieved Savings Rebates (ASR) Program 
Section 409.967(3), F.S., creates the ASR program, which requires all Medicaid prepaid plans to 
provide the AHCA with unaudited quarterly and annual reports that detail managed care plan 
financial operations and performance for the applicable reporting period. If a plan reports that its 
profits exceed a certain percent of revenue (thereby achieving savings for the overall program), 
the plan must return a portion of the profits (a rebate) to the state. 
 
Under s. 409.967(3)(f), F.S., all profit up to five percent of revenue is retained by the plan. Half 
of the profit above that threshold and up to 10 percent of revenue is retained by the plan and the 
other half refunded to the state. All profit above 10 percent of revenue is refunded to the state. 
Under s. 409.967(3)(g), F.S., plans may retain an additional one percent of revenue as an 
incentive to meet agency-defined quality measures, including plan performance for managing 
                                                
7
 Section 409.912(1)(b), F.S. 
8
 Id. 
9
 Agency for Health Care Administration, Medicaid Managed Medical Assistance Specialty Plans available at 
https://ahca.myflorida.com/medicaid/statewide_mc/pdf/mma/Specialty_Plans_110316.pdf (last visited Jan. 23, 2022). 
10
 Section 409.962(18), F.S. 
11
 Section 409.969(1), F.S. 
12
 Section 409.977(1), F.S.  BILL: SB 1950   	Page 7 
 
complex, chronic conditions that are associated with an elevated likelihood of recurring high-
cost medical treatments. 
 
The following charts reflect the total amount of rebates the plans were required to pay to the 
AHCA and the number of plans who made a payment, by year. 
 
MMA/LTC Plans
13
: 
ASR Year Total Rebate Number of plans 
2015 $           2,373,946  2 
2106 $         30,440,542  4 
2017/2018 $         13,140,788  1 
2019 $      127,889,844  1 
2020 $      218,431,920  8 
 
Dental
14
: 
ASR Year Total Rebate Number of plans 
2019 $           1,409,012  1 
2020 $         55,796,119 3 
 
III. Effect of Proposed Changes: 
Section 1 of the bill amends s. 409.912(1), F.S., to eliminate fee-for-service (FFS) 
reimbursement of provider service networks (PSNs) in conjunction with changes made to s. 
409.968(2), F.S., in section 6 of the bill. Under these changes, PSNs must be reimbursed on a 
prepaid basis, receiving a per-member, per-month payment. This section of the bill prohibits the 
AHCA from contracting with a PSN outside of the procurement process in s. 409.966, F.S., as 
amended by section 4 of the bill. 
 
Changes to this subsection relocate, but do not substantively change, language exempting PSNs 
from parts I and III of ch. 643, F.S. 
 
Section 2 of the bill repeals obsolete language in s. 409.9124, F.S., relating to managed care plan 
reimbursement. 
 
Section 3 of the bill amends s. 409.964, F.S., to eliminate an obsolete requirement that the 
AHCA provide public notice and the opportunity for public comment before seeking a waiver to 
implement the SMMC program. This language is obsolete as the public notice and public 
meeting requirements were met prior to the AHCA seeking federal authority to implement the 
SMMC program in 2011 and 2012. 
 
Section 4 of the bill amends s. 409.966(2), F.S., to require the AHCA’s databook consisting of 
Medicaid utilization and spending data (which must be published 90 days before issuing an 
                                                
13
 Supra note 5. 
14
 Id.  BILL: SB 1950   	Page 8 
 
invitation to negotiate) to include at least the 24 most recent months of data from the Medicaid 
Encounter Data System. This removes the requirement that the databook consist of data for the 
three most recent contract years, include historic fee-for-service claims, and delineate utilization 
by age, gender, eligibility group, geographic area, and aggregate clinical risk score. 
 
This section of the bill deletes the requirement for the AHCA to conduct separate and 
simultaneous procurements for each Medicaid region and outlines a new structure for regional 
awards. The new structure includes eight regions named by letters (Regions A-H), rather than the 
11 regions named by numbers (Regions 1-11) included in the original statute. 
 
The following map and chart outline the eight regions proposed in the bill:
15
 
 
 
                                                
15
 Id. 
Current Regions 	Counties  	Proposed Regions 
Region 1 ESCAMBIA, OKALOOSA, SANTA ROSA, WALTON 
Region A 
Region 2 
BAY, CALHOUN, FRANKLIN, GADSDEN, GULF, 
HOLMES, JACKSON, JEFFERSON, LEON, LIBERTY, 
MADISON, TAYLOR, WAKULLA, WASHINGTON  BILL: SB 1950   	Page 9 
 
 
This section of the bill deletes obsolete language in s. 409.966(3)(d), F.S., which required AHCA 
to negotiate capitation rates for the first year of the first contract term. It also deletes 
s. 409.966(3)(e), F.S., which awarded additional contracts to plans who are awarded contracts in 
Regions 1 and 2. The AHCA indicates that because the bill merges Regions 1 and 2 into a single 
Region A, and because the bill provides for the award of statewide contracts, this provision is no 
longer needed.
16
 
 
Section 5 of the bill amends s. 409.967, F.S., to delete obsolete language in paragraphs (2)(c) 
relating to plans contracting with hospital facilities that became licensed and operational before 
January 1, 2013. This section of the bill also deletes obsolete language in subparagraph (2)(f)4., 
requiring the AHCA to issue a request for information to determine whether cost savings could 
be achieved through oversight and management by the end of the fourth year of the first contract 
term.  
 
Currently under s. 409.967(3)(f), F.S., all profit up to five percent of revenue is retained by the 
plan. Half of the profit above that threshold and up to 10 percent of revenue is retained by the 
plan and the other half refunded to the state. All profit above 10 percent of revenue is refunded to 
the state. Under current s. 409.967(3)(g), F.S., plans may retain an additional one percent of 
revenue as an incentive to meet agency-defined quality measures, including plan performance for 
managing complex, chronic conditions that are associated with an elevated likelihood of 
recurring high-cost medical treatments. 
 
                                                
16
 Id. 
Region 3 
ALACHUA, BRADFORD, CITRUS, COLUMBIA, DIXIE, 
GILCHRIST, HAMILTON, HERNANDO, LAFAYETTE, 
LAKE, LEVY, MARION, PUTNAM, SUMTER, 
SUWANNEE, UNION 
Region B 
Region 4 
BAKER, CLAY, DUVAL, FLAGLER, NASSAU, ST 
JOHNS, VOLUSIA 
Region 5 PASCO & PINELLAS 
Region C 
Region 6 
HARDEE, HIGHLANDS, HILLSBOROUGH, MANATEE, 
POLK 
Region 7 BREVARD, ORANGE, OSCEOLA, SEMINOLE 	Region D 
Region 8 
CHARLOTTE, COLLIER, DESOTO, GLADES, HENDRY, 
LEE, SARASOTA 
Region E 
Region 9 
INDIAN RIVER, MARTIN, OKEECHOBEE, PALM 
BEACH, ST LUCIE 
Region F 
Region 10 BROWARD 	Region G 
Region 11 
MIAMI-DADE & MONROE 
Region H  BILL: SB 1950   	Page 10 
 
Current Statute 3% 4% 5% 6% 7% 8% 9% 10
% 
11
% 
Profit retained without 
meeting agency-defined 
quality measures 
100% 100% 100% 50% 50% 50% 50
% 
50% 0% 
Profit retained meeting 
agency-defined quality 
measures 
100% 100% 100% 100
% 
50% 50% 50
% 
50% 0% 
 
The bill changes the threshold at which profit-sharing begins from five percent to three percent 
of revenue.  The bill authorizes the plans to retain up to an additional two percent of revenue, 
rather than the additional one percent. The bill specifies that AHCA’s quality measures must 
include two tiers, with tier one exceeding quality measures and tier two more-so exceeding those 
quality measures. A plan meeting tier one quality or performance targets would retain all profit 
up to four percent of revenue. A plan meeting tier two quality or performance targets would 
retain all profit to five percent of revenue. Half of the profit above such final threshold, up to 10 
percent of revenue, would be retained by the plan and the other half refunded to the state. All 
profit above 10 percent of revenue would continue to be refunded to the state. 
 
Under the bill 3% 4% 5% 6% 7% 8% 9% 10% 11% 
Profit retained without 
meeting any quality 
benchmarks 
100% 50% 50% 50% 50% 50% 50% 50% 0% 
Profit retained once new 
tier one benchmarks are 
met  
100% 100% 50% 50% 50% 50% 50% 50% 0% 
Profit retained once new 
tier two benchmarks are 
met  
100% 100% 100% 50% 50% 50% 50% 50% 0% 
 
Section 6 of the bill amends s. 409.968(2), F.S., to delete language allowing PSNs to receive fee-
for-service rates with a shared savings settlement. In conjunction with changes made to 
s. 409.912. F.S., in section 1 of this bill, the bill requires all PSNs to be prepaid plans, receiving a 
per-member, per-month payment, and negotiated pursuant to the procurement process in s. 
409.966, F.S. 
 
Section 7 of the bill amends s. 409.973, F.S., to revise language related to Healthy Behaviors 
programs which MMA plans are required to establish to encourage and reward healthy 
behaviors. The bill requires each plan to establish a “tobacco cessation program” rather than a 
“smoking cessation program” to ensure that each program also includes smokeless tobacco 
products. It also requires an MMA plan’s substance abuse recovery program to include opioid 
abuse recovery. 
 
This section of the bill also deletes obsolete language in 409.97(4)(b), F.S., relating to the 
Primary Care Initiative, which requires the plans to schedule an appointment with a primary care  BILL: SB 1950   	Page 11 
 
provider for enrollees who became eligible for Medicaid between January 1, 2014 and December 
31, 2015, within 6 months of enrollment in the plan. 
 
Section 8 of the bill amends s. 409.974(1), F.S., to outline the structure for plan selection under 
the MMA program. This section authorizes the AHCA to select eligible plans to provide services 
through a single statewide procurement and to award contracts to plans on a regional or 
statewide basis. It requires the AHCA to award a contract to at least one PSN in each of the 8 
regions and to procure: 
 3-4 plans for Region A 
 3-6 plans for Region B 
 5-10 plans for Region C 
 3-6 plans for Region D 
 3-4 plans for Region E 
 3-5 plans for Region F 
 3-5 plans for Region G 
 5-10 plans for Region H 
 
This section of the bill also amends s. 409.974(2), F.S., to eliminate the requirement that the 
AHCA exercise a preference for plans with a provider network in which over 10 percent of the 
providers use electronic health records. It is estimated that 80 percent of providers currently use 
electronic health records.
17
 
 
Section 9 of the bill amends s. 409.975(1)(b), F.S., to expand the list of statewide essential 
providers to include Florida cancer hospitals that meet the criteria in 42 U.S.C. s. 
1395ww(d)(1)(B)(v). Currently, Moffitt Cancer Center in Tampa and Sylvester Comprehensive 
Cancer Center in Miami meet this criteria. Under the bill, managed care plans would be required 
to include these cancer hospitals in their networks as essential providers. 
 
Section 10 of the bill amends s. 409.977, F.S., to revise and relocate the requirement for the 
AHCA to maintain a recipient’s enrollment in a plan if a recipient was enrolled in a plan 
immediately before the recipient’s choice period and that plan is still available in the region, 
unless an applicable specialty plan is available from subsection (1) to subsection (2). 
 
This section of the bill deletes the requirement in s. 409.977(4), F.S., for the AHCA to develop 
and implement a process to enable a Medicaid recipient with access to employer-sponsored 
health care coverage to opt out of all managed care plans and to use Medicaid financial 
assistance to pay for the recipient’s share of the cost in such employer-sponsored coverage. The 
AHCA has obtained federal approval for what has come to be known as their Health Insurance 
Premium Payment (HIPP) program
18
 and continues to implement this program.
19
 As of August 
                                                
17
 Email from Legislative Affairs Director, Agency for Health Care Administration, to Senate Committee on Health Policy 
Staff (Jan. 24, 2022) (on file with the Senate Committee on Health Policy). 
18
 See Rule 59G-7.007, F.A.C.  
19
 The AHCA reports that for the 2020 calendar year, $95,388.79 was spent on premium reimbursements through the HIPP 
program. From January to August of 2021, $912,363.87 was spent on premium reimbursements through the program. Supra 
note 5.  BILL: SB 1950   	Page 12 
 
2021, 53 recipients were participating in the HIPP program.
20
 See “Related Issues” section of 
this bill analysis. 
 
This section of the bill also amends s. 409.977(5), F.S., to authorize a child welfare specialty 
managed care plan under contract with the MMA program to serve a child in a permanent 
guardianship situation.
21
 Specifically, such a child must continue to be eligible for Medicaid and 
must receive guardianship assistance payments under the Guardianship Assistance Program. 
Currently, only children in foster care, extended foster care, or subsidized adoption are eligible 
for the child welfare specialty plan. 
 
Section 11 of the bill amends s. 409.981, F.S., to outline the structure for plan selection under 
the LTC program. Tracking the structure for MMA plan selection above in section 8 of this bill, 
except as noted, this section authorizes the AHCA to select eligible plans to provide services 
through a single statewide procurement and to award contracts to plans on a regional or 
statewide basis. It requires the AHCA to award a contract to at least one PSN in each of the eight 
regions and to procure: 
 3-4 plans for Region A 
 3-6 plans for Region B 
 5-10 plans for Region C 
 3-6 plans for Region D 
 3-4 plans for Region E 
 3-5 plans for Region F 
 3-4 plans for Region G
22
 
 5-10 plans for region H 
 
Section 12 of the bill amends s. 409.8132, F.S., to conform a cross-reference to changes made in 
bill section 2 which repeals s. 409.9124, F.S. 
 
Section 13 of the bill reenacts s. 409.962, F.S., to incorporate changes made by this act to s. 
409.912, F.S., in bill section 1. 
 
Section 14 of the bill reenacts s. 641.19, F.S., to incorporate changes made by this act to s. 
409.912, F.S., in bill section 1. 
 
Section 15 of the bill reenacts s. 430.2053, F.S., to incorporate changes made by this act to s. 
409.981, F.S., in bill section 11. 
 
Section 16 of the bill provides an effective date of July 1, 2022.  
 
                                                
20
 Supra note 17. 
21
 For more information on the Sunshine Health Child Welfare Specialty Plan and the Guardianship Assistance Program, see 
Florida Senate Bill Analysis and Fiscal Impact Statement for CS/SB 1080, Jan. 19, 2022 available at 
https://www.flsenate.gov/Session/Bill/2022/1080/Analyses/2022s01080.hp.PDF (last visited Jan. 23, 2022). The provisions 
of CS/SB 1080 are identical to the changes made to s. 409.977(5), F.S., in this bill. 
22
 Note that the AHCA must award 3-5 MMA plans for Region G under bill section 8.  BILL: SB 1950   	Page 13 
 
IV. Constitutional Issues: 
A. Municipality/County Mandates Restrictions: 
None. 
B. Public Records/Open Meetings Issues: 
None. 
C. Trust Funds Restrictions: 
None. 
D. State Tax or Fee Increases: 
None. 
E. Other Constitutional Issues: 
None. 
V. Fiscal Impact Statement: 
A. Tax/Fee Issues: 
None. 
B. Private Sector Impact: 
None. 
C. Government Sector Impact: 
Changes made by the bill to the Achieved Savings Rebate program could result in cost 
savings. The bill tasks the AHCA with specifying two tiers of quality measures on which 
profit-sharing would be based. Without additional information as to what those quality 
measures are, it is impossible to estimate whether the AHCA would receive revenue (and 
at what percent) from the plans, and a fiscal impact is indeterminate. 
 
The capitation rate for children in the child welfare specialty plan is higher than the rates 
for most children in other plans. If children become eligible and receive services through 
the child welfare specialty plan as authorized in the bill, the bill will have an 
indeterminate negative fiscal impact. The AHCA estimates a maximum fiscal impact of 
$12.2 million annually ($4.7 million General Revenue) based on rate year 2020-21 based 
on an estimate of 4,120 children who currently would be eligible for the change in 
plans.
23
 
                                                
23
 Id.  BILL: SB 1950   	Page 14 
 
 
The precise fiscal impact of children becoming newly eligible for the child welfare 
specialty plans cannot be calculated without knowing the Medicaid region in which an 
eligible child resides and the capitation rate category in which the child is currently 
categorized. This is because Medicaid capitation rates vary by region and children could 
be in different rate cells based on age, gender, Medicaid eligibility category, and other 
characteristics. 
VI. Technical Deficiencies: 
None. 
VII. Related Issues: 
The bill amends s. 409.977(4), F.S., at lines 856-875 to delete a requirement for the AHCA to 
develop and implement what has come to be known as their HIPP program. Though federal 
authority for the program has already been granted, it is possible that deleting this language 
could compromise the AHCA’s authority to continue implementation of the program under state 
law. If it is intended for the AHCA’s authority to remain in place to implement the HIPP 
program, then this section should be amended. 
VIII. Statutes Affected: 
This bill substantially amends the following sections of the Florida Statutes: 409.912, 409.964, 
409.966, 409.967, 409.968, 409.973, 409.974, 409.975, 409.977, 409.981, and 409.8132. 
 
This bill repeals section 409.9124 of the Florida Statutes. 
 
This bill reenacts the following sections of the Florida Statutes: 409.962, 641.19, and 430.2053.  
IX. Additional Information: 
A. Committee Substitute – Statement of Changes: 
(Summarizing differences between the Committee Substitute and the prior version of the bill.) 
None. 
B. Amendments: 
None. 
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.