Florida 2023 2023 Regular Session

Florida Senate Bill S2510 Analysis / Analysis

Filed 03/29/2023

                    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 Appropriations  
 
BILL: SB 2510 
INTRODUCER:  Appropriations Committee 
SUBJECT:  Health 
DATE: March 29, 2023 
 
 ANALYST STAFF DIRECTOR  REFERENCE  	ACTION 
 McKnight Sadberry AP Submitted as Comm. Bill/Fav 
 
I. Summary: 
SB 2510 conforms statutes to the funding decisions related to Health Care in the Senate proposed 
General Appropriations Act for Fiscal Year 2023-2024. The bill: 
 Increases the income threshold above which a resident in a State Veterans’ nursing facility 
would be required to contribute to his or her account from $130 to $160 per month. 
 Clarifies the premiums paid under Florida KidCare's full-pay programs are based on the 
combined-risk premium. 
 Increases the nursing home prospective payment reimbursement methodology for the Quality 
Incentive Program Payment Pool from 6 percent to 10 percent of the September 2016 non-
property related payments of included facilities. 
 Creates the Graduate Medical Education Slots for Doctors Program. 
 Provides for a portion of the Statewide Medicaid Managed Care achieved savings rebate to 
be repaid to the federal government. 
 Authorizes an Area Agency on Aging to carryforward documented unexpended state funds 
from one fiscal year to the next, however, the cumulative amount carried forward may not 
exceed 10 percent of the area agency's planning and service area allocation for the 
community care for the elderly program. 
 
The bill takes effect on July 1, 2023. 
II. Present Situation: 
State Veterans’ Homes 
Once Medicaid eligibility is established for an individual requiring an institutional level of care, 
some of his or her income is used to pay for Medicaid services. For individuals residing in an 
institution, most of their incomes are applied to the cost of that care, with the exception of a 
small personal needs allowance used to pay for personal needs that are not covered by 
REVISED:   BILL: SB 2510   	Page 2 
 
Medicaid.
1
 A personal needs allowance is the amount of income a resident may retain for 
personal expenditures not covered by the nursing home, such as toiletries and haircuts. 
 
The Florida Department of Veterans’ Affairs operates eight skilled nursing facilities and one 
assisted living facility.
2
 Every resident of a state veteran domiciliary or nursing home who 
receives a pension, compensation, or gratuity from the United States Government or income 
from any other source of more than $130 per month is required to contribute to his or her 
maintenance and support while residing in a home, pursuant to a schedule of payment 
determined by the home administrator and department director that shall not exceed the actual 
cost of operating and maintaining the home.
3
  
 
The Florida KidCare Program 
The Florida KidCare (KidCare) program was established in 1998 as a combination of Medicaid 
delivery systems and public and private partnerships, with a wrap-around delivery system 
serving children with special health care needs.
4
 The KidCare program, codified in ss. 409.810 
through 409.821, F.S., encompasses four government-sponsored health insurance programs 
serving Florida’s children: MediKids, Florida Healthy Kids (Healthy Kids), Children’s Medical 
Services Network (CMSN), and Medicaid for children.
5
  
 
Three of the four programs, MediKids, Healthy Kids, and the CMSN, directly receive federal 
Children’s Health Insurance Program (CHIP) funding and constitute Florida’s CHIP program. 
The CHIP was designed as a federal and state partnership, similar to Medicaid, with the goal of 
expanding health insurance to children whose families earn too much income to be eligible for 
Medicaid, but not enough money to purchase private, comprehensive health insurance. 
 
The CHIP is administered by states, according to federal requirements. The program is funded 
jointly by states and the federal government. The federal CHIP is authorized and funded through 
Fiscal Year 2027 via the Bipartisan Budget Act of 2018 (P.L. 115-123).
6
 
  
CHIP funding is also used to enhance the match rate for some children in Medicaid. More 
specifically: 
 MediKids is a Medicaid “look-alike” program administered by the Agency for Health Care 
Administration (AHCA) for children ages 1 through 4 who are at or below 200 percent of the 
                                                
1
 42 U.S.C. s. 1396a (q). 
2
 Florida Department of Veterans’ Affairs, State Veterans’ Homes, available at https://floridavets.org/locations/state-
veterans-nursing-homes/ (last visited March 14, 2023). 
3
 Section 296.37, F.S 
4
 Chapter 1998-288, Laws of Fla. 
5
 Florida KidCare, https://www.floridakidcare.org/ (last visited Mar. 13, 2023). 
6
 The Medicaid and CHIP Payment and Access Commission, State Children’s Health Insurance Program (CHIP), (February 
2018) available at https://www.macpac.gov/wp-content/uploads/2018/02/State-Children%E2%80%99s-Health-Insurance-
Program-CHIP.pdf (last visited Mar. 13, 2023).  BILL: SB 2510   	Page 3 
 
federal poverty level (FPL).
7
 Families whose income exceeds 200 percent of the FPL can 
elect to participate in the MediKids full-pay premium option.
8
 
 Healthy Kids is for children ages 5 through 18 and administered by the Florida Healthy Kids 
Corporation (FHKC). Children in families with income between 133 percent and 200 percent 
of the FPL ($33,383 and $50,200 for a family of four) are eligible for subsidized coverage 
through the Healthy Kids program.
9
 Families whose income exceeds 200 percent of the FPL 
can elect to participate in the Healthy Kids full-pay option.
10
 
 Children’s Medical Services Network (CMSN) is a program for children from birth through 
age 18 with special health care needs.
11
 The Department of Health (DOH) operates the 
program which is open to all children who meet the clinical eligibility criteria that are 
Medicaid or Title XXI eligible.
12
 
 Medicaid eligibility is determined by the Department of Children and Families (DCF) and 
provides Title XIX coverage to infants from birth to age 1 who are at or below 200 percent of 
the FPL and children ages 1 through 18 who are at or below 133 percent of the FPL.
13
 
 
Families who receive Medicaid are not responsible for paying premiums or co-payments. 
Families with children that qualify for other KidCare program components are responsible for 
paying monthly premiums and co-payments for certain services. The Healthy Kids program
14
 
and the MediKids program
15
 both utilize a combined-risk premium model of Title XXI-
subsidized and full-pay enrollments for medical insurance payments. 
 
The total monthly family payment for CHIP enrollees is $15 or $20 for families with incomes 
between 133 percent and 200 percent of the FPL.
16
 The per-child monthly premium rate is 
$210.18 for full-pay MediKids coverage and $259.50 for full-pay Healthy Kids coverage, 
including dental coverage.
17
 
 
As of March 2023, 4,883 children are enrolled in subsidized MediKids; 3,280 children are 
enrolled in MediKids under the full-pay option; 76,340 children are enrolled in subsidized 
Healthy Kids; 21,650 children are enrolled in Healthy Kids under the full-pay option; 6,575 
children are enrolled in the CMSN; and 2,466,597 children are enrolled in the Medicaid 
program.
18
 
 
                                                
7
 Section 409.8132(6), F.S. 
8
 Agency for Health Care Administration, Florida KidCare, Welcome to MediKids, 
https://ahca.myflorida.com/medicaid/Policy_and_Quality/Policy/program_policy/FLKidCare/PDF/FLORIDA_MEDIKIDS_I
NFORMATION_2019.pdf (last visited Mar. 13, 2023). 
9
 Florida Healthy Kids Corporation, Subsidized Premiums/Copays, https://www.healthykids.org/cost/subsidized/ (last visited 
Mar. 13, 2023). 
10
 Id. 
11
 See ch. 391, F.S. 
12
 Id. 
13
 Florida Healthy Kids, Florida KidCare Health and Dental Insurance Program Eligibility Overview, 
https://www.floridakidcare.org/_docs/Florida_KidCare_Income_Guidelines.pdf (last visited Mar. 13, 2023). 
14
 Chapter 2019-115, Laws of Fla., Specific Appropriation 178. 
15
 Chapter 2020-111, Laws of Fla., Specific Appropriation 185. 
16
 Supra note 13. 
17
 Id. 
18
 Agency for Health Care Administration, Florida KidCare, Florida KidCare Enrollment Report, March 2023 (on file with 
the Senate Appropriations Committee on Health and Human Services).  BILL: SB 2510   	Page 4 
 
The KidCare program is jointly administered by the AHCA, the FHKC, the DOH, the DCF, and 
the Office of Insurance Regulation. The general KidCare program responsibilities of each agency 
are outlined in the table below: 
 
Entity 	Responsibilities 
Agency for Health 
Care Administration
19
 
 Administration of the state Medicaid program that serves 
individuals eligible for Medicaid under Title XIX. 
 Administration of the MediKids program that serves Title XXI 
children from age 1 through age 4. 
 The Title XXI state contact with the federal Centers for 
Medicare & Medicaid Services. 
 Distribution of federal funds for Title XXI programs. 
 Management of the contract with the FHKC. 
 Development and maintenance of the Title XXI Florida KidCare 
State Plan. 
Department of Children 
and Families
20
 
 Processing Medicaid applications and determining children’s 
eligibility for Medicaid. 
Department of Health
21
  Administration of the CMSN that offers a range of services to 
Title XIX and XXI children from birth through age 18 who have 
special health care needs. 
 Chair of the Florida KidCare Coordinating Council. 
 In consultation with the FHKC and the DCF, establishment of a 
toll-free telephone line to assist families with questions about the 
program. 
Florida Healthy Kids 
Corporation
22
 
 Under a contract with the AHCA, perform the administrative 
KidCare functions including eligibility determination, premium 
billing and collection, refunds, and customer service. 
 Administration of the Florida Healthy Kids program for Title 
XXI children from age 5 through age 18. 
Office of Insurance 
Regulation
23
 
 Certification that health benefits coverage plans seeking to 
provide services under the KidCare program, aside from services 
provided under Healthy Kids and CMSN, meet, exceed, or are 
equivalent to the benchmark benefit plan and that the health 
insurance plans will be offered at an approved rate. 
 
Nursing Home Prospective Payment System 
In 2018, Florida Medicaid nursing homes transitioned from a cost-based reimbursement 
methodology to a prospective payment reimbursement methodology.
24
 The parameters for the 
prospective payment system are outlined in s. 409.908, F.S., and include patient care 
                                                
19
 See part II of ch. 409, F.S. 
20
 Section 409.818(1), F.S. 
21
 See ch. 391 and s. 409.818(2), F.S. 
22
 Section 624.91, F.S. 
23
 Section 409.818(4), F.S. 
24
 Chapter 2017-129, Laws of Fla., Fla. Admin. Code R. 59G-6.010(4)(a) (2021).  BILL: SB 2510   	Page 5 
 
components, quality incentive payments, a fair rental value system, and additional supplemental 
add-on payments. 
 
For quality incentive payments, a provider is awarded points for process, outcome, structural and 
credentialing measures using most recently reported data on May 31 of the rate period year. To 
qualify for a quality incentive payment, a provider must meet the minimum threshold defined in 
s. 409.908, F.S.
25
  
 
The quality incentive payment calculation is currently limited to 6 percent of the September 2016 
non-property related payments of included facilities,
26
 which totals $185,636,623.
27
 The 
calculation for the Quality Incentive Program is calculated as follows:
28
 
 
Facility Annualized Medicaid Days 
 
x 
Quality Points with Lower Limit 
 
x 
Total Quality Budget 
 
Average Annualized Medicaid Days 
of All Facilities 
Sum of Total Points Awarded to 
All Facilities 
Facility Annualized 
Medicaid 
 
Statewide Medicaid Managed Care (SMMC) Program 
In 2011, the Legislature established the Medicaid program as a statewide, integrated managed 
care program for all covered services, and directed the Agency for Health Care Administration 
(AHCA) to create the Statewide Medicaid Managed Care (SMMC) program and contract with 
managed care plans on a regional basis to provide services to eligible recipients.
29
 The SMMC 
minimum benefits are authorized by federal authority and are specifically required in s. 409.973, 
F.S., for Managed Medical Assistance (MMA) plans and s. 409.98, F.S., for Long-Term Care 
(LTC) plans. 
 
Today, the majority of Florida Medicaid recipients receive their services through a managed care 
plan contracted with the AHCA under the SMMC program. The SMMC program has three 
components: 
 MMA: provides Medicaid covered medical services like doctor visits, hospital care, 
prescribed drugs, mental health care, and transportation to these services.
30
 
 LTC: provides Medicaid LTC services like care in a nursing facility, assisted living, or at 
home. To get LTC you must be at least 18 years old and meet nursing home level of care (or 
meet hospital level of care if you have Cystic Fibrosis).
31
 
 Dental: provides all Medicaid dental services for children and adults. All individuals on 
Medicaid must enroll in a dental plan.
32
 
 
                                                
25
 Fla. Admin. Code R. 59G-6.010(2)(y) (2021). 
26
 Section 408.908(2)(b)1e, Florida Statutes 
27
 Email from the Agency for Health Care Administration to the Senate Appropriations Committee on Health and Human 
Services, (Mar. 15, 2023) (on file with the Senate Appropriations Committee on Health and Human Services). 
28
 Fla. Admin. Code R. 59G-6.010(4)(b) (2021). 
29
 Chapter 2011-134, Laws of Fla. 
30
 Agency for Health Care Administration, Statewide Medicaid Managed Care, Health Plans and Programs, available at 
https://www.flmedicaidmanagedcare.com/health/comparehealthplans (last visited Mar. 21, 2023). 
31
 Id. 
32
 Id.  BILL: SB 2510   	Page 6 
 
Achieved Savings Rebate 
The AHCA implemented the Achieved Savings Rebate (ASR) Program as an incentive for 
proper use of state funds. The program monitors plans’ premium revenues, medical and 
administrative costs, and income or losses in a uniform manner.
33
 The AHCA is responsible for 
verifying the achieved savings rebate (ASR) for all Medicaid prepaid plans. Prepaid plans are 
required 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.
34
  
 
The ASR is established by determining pretax income as a percentage of revenues and applying 
the following income sharing ratios: 
 All profit up to five percent of revenue is retained by the plan. Half of the profit above five 
percent 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. All refunds to the 
state are transferred to the General Revenue Fund, unallocated.
35
 
 Plans may retain an additional one percent of revenue if they meet or exceed quality 
measures defined by the AHCA, including plan performance for managing complex, chronic 
conditions that are associated with an elevated likelihood of recurring high-cost medical 
treatments.
36
 
 
The following chart reflects 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:
37
 
 
ASR Year Total Rebate Number of plans 
2015 $2,373,946 2 
2016 $30,440,542 4 
2017/2018 $12,517,103 1 
2019 $129,298,856 2 
2020 $274,856,893 11 
2021 $316,351,121 13 
 
 
Graduate Medical Education 
Graduate medical education (GME) refers to the training residents complete after medical school 
graduation to develop clinical and professional skills required to practice medicine. During this 
                                                
33
 Office of Program Policy Analysis and Government Accountability, AHCA Reorganized to Enhance Managed Care 
Program Oversight and Continues to Recoup Fee-for-Service Overpayments (Report No. 16-03), available at 
https://oppaga.fl.gov/Documents/Reports/16-03.pdf (last visited Mar. 22, 2023) 
33
 Id. 
34
 Section 409.967(3), F.S. 
35
 Section 409.967(3)(f), F.S. 
36
 Section 409.967(3)(g), F.S. 
37
 Agency for Health Care Administration, Bureau of Medicaid Finance Program, Historical Achieved Savings Rebate, 2015-
2021 (Jan. 2023) (on file with the Senate Appropriations Committee on Health and Human Services).  BILL: SB 2510   	Page 7 
 
education, residents train in a specialty (e.g., general surgery, pediatrics, or internal medicine).
38
 
All medical school graduates must complete a period of GME, or residency training, to be 
licensed to practice medicine in the United States. GME comprises the second phase, after 
medical school, of the formal education that prepares doctors for medical practice. During 
residency, doctors learn skills and techniques specific to their chosen specialty under the 
supervision of attending physicians and serve as part of a care team.
39
 
 
GME programs include residencies and fellowships. First year GME students fill categorical or 
preliminary resident positions. Categorical residents begin a multi-year program with a 
sponsoring institution during their first year of GME training. During their first year, preliminary 
residents receive prerequisite training. After receiving prerequisite training, preliminary residents 
transfer to categorical resident programs. After completing a residency program, physicians may 
also pursue advanced GME training by completing a fellowship in a subspecialty program, such 
as cardiology or vascular surgery.
40
 
 
Graduate Medical Education Accreditation 
The Accreditation Council for Graduate Medical Education (ACGME) accredits allopathic GME 
programs, and the American Osteopathic Association (AOA) accredits osteopathic GME 
programs. 
 
The ACGME is a private, 501(c)(3), not-for-profit organization that accredits GME (physician 
residency and fellowship) and certain medically related post-doctoral fellowship programs and 
the institutions that sponsor them in the United States.
41
 ACGME accreditation is overseen by a 
Review Committee made up of volunteer specialty experts from the field that set accreditation 
standards and provide peer evaluation of Sponsoring Institutions and specialty and subspecialty 
residency and fellowship programs. In academic year 2019-2020, there were approximately 865 
ACGME-accredited institutions sponsoring approximately 12,000 residency and fellowship 
programs in 182 specialties and subspecialties.
42
  
 
The AOA is the primary certifying body for osteopathic physicians and the accrediting agency 
for all osteopathic medical schools. The AOA represent more than 178,000 osteopathic 
physicians and medical students across the United States. The AOA accredits Osteopathic 
Postdoctoral Training Institutions, which train residents in community-based settings.
43
 With 
osteopathic residency programs, a college of osteopathic medicine serves as the academic 
sponsor and has an agreement with a base institution. Residents in these programs train at base 
                                                
38
 Office of Program Policy Analysis and Government Accountability, Florida’s Graduate Medical Education System 
(Report No. 14-08), available at https://oppaga.fl.gov/Documents/Reports/14-08.pdf (last visited Mar. 21, 2023). 
39
 Association of American Medical Colleges, State-by-State Graduate Medical Education Data, available at 
https://www.aamc.org/advocacy-policy/state-state-graduate-medical-education-data (last visited Mar. 22, 2023). 
40
 Association of American Medical Colleges, State-by-State Graduate Medical Education Data, available at 
https://www.aamc.org/advocacy-policy/state-state-graduate-medical-education-data (last visited Mar. 22, 2023). 
41
 Accreditation Council for Graduate Medical Education, ACGME Frequently Asked Questions (FAQs), available at 
https://www.acgme.org/about-us/acgme-frequently-asked-questions/ (last visited Mar. 22, 2023). 
42
 Accreditation Council for Graduate Medical Education, What We Do, available at https://www.acgme.org/What-We-
Do/Overview (last visited Mar. 21, 2023). 
43
 American Osteopathic Association, About Us, available at https://osteopathic.org/about/ (last visited Mar. 22, 2023).  BILL: SB 2510   	Page 8 
 
institutions, which are most often hospitals. The base institution maintains administrative and 
financial responsibility.
44
  
 
Florida’s Graduate Medical Education Programs 
Florida’s GME program consists of the Statewide Medicaid Residency, the Startup Bonus, and 
the High Tertiary, Primary Care, Mental and Behavioral Health, and Psychiatry programs. In 
Fiscal Year 2022-2023, $291,644,448 was appropriated to fund GME programs.
45
 
 
Florida’s Graduate Medical Education (GME) Programs
46
 
Statewide 
Medicaid 
Residency 
 
Provides $97,300,000 in funding to hospitals and qualifying institutions 
for residency programs associated with the Medicaid program, using a 
statutory allocation formula to equitably distribute GME funding. 
Qualifying hospitals must be licensed under part I of chapter 395, Florida 
Statutes. Qualifying institution means a Federally Qualified Health Center 
holding an Accreditation Council for Graduate Medical Education 
institutional accreditation. 
Startup Bonus 
 
 
Provides $100,000,000 in funding to hospitals and qualifying institutions 
up to $100,000 per newly created residency slot that is dedicated to a 
physician specialty or subspecialty in statewide shortage. “Qualifying 
institution” means a Federally Qualified Health Center holding an 
Accreditation Council for Graduate Medical Education institutional 
accreditation. 
High Tertiary 
Care 
Provides $66,000,000 in funding to statutory teaching hospitals that 
provide charity care greater than $15 million and also provide highly 
specialized tertiary care. 
Primary Care Provides $22,600,000 in funding in primary care and training in Medicaid 
regions with primary care demand greater than supply by 25 percent or 
more. 
Mental & 
Behavioral 
Health 
Provides $4,400,000 in funding to address the declining GME in severe 
deficit of physicians trained in mental health and behavioral health 
facilities licensed under section 394, Florida Statutes. 
Psychiatry Provides $1,344,447 in funding for psychiatry residency slots in adult and 
child psychiatry for accredited Federally Qualified Health Centers.  
 
Physician Shortage 
Despite enhanced GME funding having a positive impact, due to a growing population and an 
aging physician workforce, signs indicate a physician shortage is looming in Florida. Florida’s 
physician licensure data suggests that in 2019 there were 55,083 full-time equivalent (FTE) 
physicians actively practicing in Florida. Of these physicians, the average age is 51 and 
approximately 26 percent are over the age of 60 years old.
 47
 
                                                
44
 Office of Program Policy Analysis and Government Accountability, Florida’s Graduate Medical Education System 
(Report No. 14-08), available at https://oppaga.fl.gov/Documents/Reports/14-08.pdf (last visited Mar. 21, 2023). 
45
 Chapter 2022-156, Laws of Fla., Specific Appropriation 202.  
46
 Id. 
47
 IHS Market, Florida Statewide Regional Physician Workforce Analysis: 2019 to 2023 (December 2021), available at 
https://safetynetsflorida.org/wp-content/uploads/Florida-Physician-Workforce-Analysis.pdf (last visited Mar. 21, 2023).  BILL: SB 2510   	Page 9 
 
 
Florida’s 2019 physician supply was approximately 3,835 FTEs lower than estimated demand, 
meaning, that Florida’s supply was only able to meet 93 percent of estimated demand relative to 
national averages. However, the report suggests that if current trends continue, Florida’s 
projected 2035 supply and demand could yield a shortfall of approximately 17,924 FTE 
physicians with supply sufficient to meet only 77 percent of projected demand.
48
  
 
Demand for physicians across the United States is projected to grow faster than supply leading to 
a potential nationwide shortfall of as many as 124,000 FTE physicians in 2034. This includes a 
projected shortage of between 17,800 and 48,000 primary care physicians, between 15,800 and 
30,200 surgeons, between 3,800 and 13,400 internal medicine and pediatric specialists, and 
between 10,300 and 35,600 physicians across the other specialties.
49
 
 
Community Care for the Elderly 
The Community Care for the Elderly (CCE) program provides community-based services in a 
continuum of care to help elders with functional impairments to live in the least restrictive and 
most cost-effective environment suitable to their needs.
50
 
 
The CCE program provides a wide range of services to clients, depending on their needs. These 
services include, but are not limited to, adult day care, chore assistance, counseling, home-
delivered meals, home nursing, legal assistance, material aid, medical therapeutic services, 
personal care, respite, transportation, and other community-based services.
 51
 
 
The Department of Elder Affairs (DOEA) administers the program through contracts with Area 
Agencies on Aging (AAAs), which subcontract with CCE Lead Agencies. Service delivery is 
provided by 49 Lead Agencies around the state. The CCE program is not a component of 
Medicaid but rather is funded by a combination of state general revenue and client contributions. 
Clients are assessed a co-payment based on a sliding scale developed by the DOEA.
52
 
 
To be eligible for the CCE program, an individual must be 60 years of age or older and 
functionally impaired,
53
 as determined by an initial comprehensive assessment and annual 
reassessments. Primary consideration for services is given to elders referred to the Department of 
Children Family’s (DCF) Adult Protective Services (APS) and determined by APS to be victims 
of abuse, neglect, or exploitation and in need of immediate services to prevent further harm.
54
 
Individuals not referred by APS may still receive services, but according to a prioritization which 
is based upon the potential recipient’s frailty level and likelihood of institutional placement. The 
DOEA is also required to consider an applicant’s income when prioritizing services. Those less 
                                                
48
 Id. 
49
 IHS Market, Florida Statewide Regional Physician Workforce Analysis: 2019 to 2023 (December 2021), available at 
https://safetynetsflorida.org/wp-content/uploads/Florida-Physician-Workforce-Analysis.pdf (last visited Mar. 21, 2023). 
50
 Section 430.202, F.S. 
51
 Department of Elderly Affairs, 2022 Summary of Programs and Services- Page 40, available at 
https://elderaffairs.org/publications-reports/summary-of-programs-and-services/ (last visited March 13, 2023). 
52
 Id. 
53
 Section 430.203(7), F.S. 
54
 Section 430.205(5)(a), F.S.  BILL: SB 2510   	Page 10 
 
able to pay for services must receive higher priority than those with a greater ability to pay for 
services.
55
 
III. Effect of Proposed Changes: 
Section 1 amends s. 296.37, F.S., to increase the personal needs allowance to $160 per month for 
residents of State Veterans’ Homes. 
 
Section 2 amends s. 409.814, F.S., to clarify the premiums paid under Florida KidCare’s full-pay 
programs are based on the combined-risk premium. 
 
Section 3 amends s. 409.908, F.S., to increase the nursing home prospective payment 
reimbursement methodology for the Quality Incentive Program Payment Pool from 6 percent to 
10 percent of the September 2016 non-property related payments of included facilities. 
 
Section 4 amends s. 409.909, F.S. to create the Graduate Medical Education Slots for Doctors 
Program to address the physician shortage by increasing the supply of highly trained physicians 
through the creation of new resident positions. The bill requires the Agency for Health Care 
Administration to allocate $100,000 to hospitals and qualifying institutions for each newly 
created resident position that is accredited by the Accreditation Council for Graduate Medical 
Education or Osteopathic Postdoctoral Training Institution in an initial or established accredited 
training program that is in a physician specialty or subspecialty in a statewide supply-and-
demand deficit as identified in the General Appropriations Act. The bill further prohibits funds 
from the program to be used for resident positions that previously received funding under the 
Statewide Medicaid Residency Program. 
 
Section 5 amends s. 409.967, F.S. to provide for the Statewide Medicaid Managed Care 
achieved savings rebate to be adjusted for the Federal Medical Assistance Percentage, and for the 
federal share to be transferred to the Medical Care Trust Fund. 
 
Section 6 amends s. 430.204, F.S., to authorize the Area Agencies on Aging to carryforward 
documented unexpended state funds from one fiscal year to the next. However, the cumulative 
amount carried forward may not exceed 10 percent of the area agency’s planning and service 
area allocation for the community care for the elderly program. Any unexpended state funds in 
excess of the percentage must be returned to the department. The bill provides the following 
requirements: 
 The funds carried forward may not be used in any way that would create increased recurring 
future obligations, and such funds may not be used for any type of program or service that is 
not currently authorized by existing contracts; 
 Expenditures of funds carried forward must be separately reported to the department; 
 Any unexpended funds that remain at the end of the contract period shall be returned to the 
department; and 
 Funds carried forward may be retained through any contract renewals and any new 
procurements as long as the same area agency on aging is retained by the Department of 
Elder Affairs. 
                                                
55
 Section 430.205(5)(b), F.S.  BILL: SB 2510   	Page 11 
 
 
Section 7 provides an effective date of July 1, 2023. 
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: 
Personal Needs Allowance 
Residents in a State Veterans’ Nursing Home whose income is less than $160 per month 
will continue to not be required to contribute to their personal needs account. 
 
Nursing Home Reimbursement Rate Adjustment 
The bill conforms to SPB 2500, the Senate Proposed General Appropriations Act for 
Fiscal Year 2023-2024, which provides $37,609,980 in recurring funds from the General 
Revenue Fund and $55,208,332 in recurring funds from the Medical Care Trust Fund, to 
increase the nursing home prospective payment reimbursement methodology for the  BILL: SB 2510   	Page 12 
 
Quality Incentive Program Payment Pool from 6 percent to 10 percent of the September 
2016 non-property related payments of included facilities. 
 
Graduate Medical Education Slots for Doctors Program 
The bill conforms to SPB 2500, the proposed Fiscal Year 2023-2024 Senate General 
Appropriations Act, which provides $12,156,000 in recurring funds from the General 
Revenue Fund and $17,844,000 in recurring funds from the Medical Care Trust Fund to 
create the Graduate Medical Education Slots for Doctors Program. 
 
Area Agency on Aging 
The bill assists the Department of Elder Affairs and the Area Agency on Aging in 
avoiding year-end surpluses and deficit challenges, by allowing unexpended state funds 
for the AAAs to be carryforward from one fiscal year to the next. These projections are 
difficult due to multiple, uncontrollable factors including care plan fluctuations due to 
changing client care needs, acute care episodes, client attrition, and the financial impact 
of Adult Protective Service referrals from the Department of Children and Families. 
VI. Technical Deficiencies: 
None. 
VII. Related Issues: 
None. 
VIII. Statutes Affected: 
This bill substantially amends the following sections of the Florida Statutes: 296.37, 409.814, 
409.908, 409.909, 409.967, and 430.204. 
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.