CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 1 of 29 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 the Children's Medical Services 2 program; transferring operation of the Children's 3 Medical Services Managed Care Plan from the Department 4 of Health to the Agency for Health Care 5 Administration, effective on a specified date; 6 providing construction as to judicial and 7 administrative actions pending as of a specified date 8 and time; requiring the department's Children's 9 Medical Services (CMS) program to collaborate with the 10 agency in the care of children and youth with special 11 health care needs; requiring the CMS program to 12 conduct certain clinical eligibility screenings and 13 provide ongoing consultation to the agency for a 14 specified purpose; amending s. 409.906, F.S.; 15 conforming a cross-reference; amending s. 409.974, 16 F.S.; requiring the CMS pr ogram to transfer operation 17 of certain managed care contracts from the department 18 to the agency effective on a specified date; requiring 19 the CMS program to conduct clinical eligibility 20 screening for certain children and youth with special 21 health care needs; requiring the program to provide 22 ongoing consultation to the agency for a specified 23 purpose; requiring the agency to establish specific 24 measures for evaluation of services provided to 25 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 2 of 29 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 children and youth with special health care needs; 26 requiring the agency to contract with an independent 27 evaluator to conduct the evaluation of services 28 provided; specifying requirements for the evaluation; 29 requiring the agency to submit the results of the 30 evaluation to the Governor and the Legislature by a 31 specified date; amending s. 391.016, F.S.; revising 32 the purposes and functions of the CMS program; 33 amending s. 391.021, F.S.; revising definitions; 34 amending s. 391.025, F.S.; revising the scope of the 35 CMS program; amending s. 391.026, F.S.; revising the 36 powers and duties of the department to conform to 37 changes made by the act; providing for the future 38 repeal of s. 391.026(8) through (11), F.S., relating 39 to the department's oversight and administration of 40 the CMS program; repealing s. 391.028, F.S., relating 41 to administration of the program; amending s. 391.029, 42 F.S.; revising program eligibility requirements; 43 conforming provisions to changes made by the act; 44 amending s. 391.0315, F.S.; conforming provisions to 45 changes made by the act; providing for future repeal 46 of specified provisions; repealing ss. 391.035, 47 391.037, 391.045, 391.047, 391.055, and 391.071, F.S., 48 relating to provider qualifications, physicians and 49 private sector services, provider reimbursements, 50 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 3 of 29 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 third-party payments, service delivery systems under 51 the program, and quality of care requirements, 52 respectively; amending s. 391.097, F.S.; conforming a 53 provision to changes made by the act; repealing part 54 II of ch. 391, F.S., consisting of ss. 391.221 and 55 391.223, F.S., relating to Children's Medical Services 56 councils and panels; amending ss. 409.166, 409.811, 57 409.813, 409.8134, 409.814, 409.815, 409.8177, 58 409.818, 409.912, 409.9126, 409.9131, 409.920, 59 409.962, 409.968, and 409.972, F.S.; conforming 60 provisions to changes made by the act; requiring the 61 Agency for Health Care Administration to develop a 62 comprehensive plan to redesign the Florida Medicaid 63 Model Waiver for home and community -based services to 64 include children who receive private duty nursing 65 services; providing requirements for the redesign of 66 waiver program; requiring the Agency for Health Care 67 Administration to submit a report to the Governor, the 68 President of the Senate, and the Speaker of the House 69 of Representatives by a specified date; providing 70 effective dates. 71 72 Be It Enacted by the Legislature o f the State of Florida: 73 74 Section 1. Transfer of operation of the Children's Medical 75 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 4 of 29 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 Services Managed Care Plan. — 76 (1) Effective July 1, 2025, all statutory powers, duties, 77 functions, records, personnel, pending issues, existing 78 contracts, administrati ve authority, administrative rules, and 79 unexpended balances of appropriations, allocations, and other 80 funds for the operation of the Department of Health's Children's 81 Medical Services Managed Care Plan are transferred to the Agency 82 for Health Care Administ ration. 83 (2) The transfer of operations of the Children's Medical 84 Services Managed Care Plan does not affect the validity of any 85 judicial or administrative action pending as of 11:59 p.m. on 86 the day before the effective date of the transfer to which the 87 Department of Health's Children's Medical Services Managed Care 88 Plan is at that time a party, and the Agency for Health Care 89 Administration shall be substituted as a party in interest in 90 any such action. 91 (3) The Department of Health's Children's Medical S ervices 92 program shall collaborate with the Agency for Health Care 93 Administration in the care of children and youth with special 94 health care needs. The Department of Health's Children's Medical 95 Services program shall do all of the following: 96 (a) Conduct clinical eligibility screening for children 97 and youth with special health care needs who are eligible for or 98 enrolled in Medicaid or the Children's Health Insurance Program. 99 (b) Provide ongoing consultation to the Agency for Health 100 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 5 of 29 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 Administration to ensure high-quality, family-centered, 101 coordinated health services within an effective system of care 102 for children and youth with special health care needs. 103 Section 2. Paragraph (d) of subsection (13) of section 104 409.906, Florida Statutes, is amended to read: 105 409.906 Optional Medicaid services. —Subject to specific 106 appropriations, the agency may make payments for services which 107 are optional to the state under Title XIX of the Social Security 108 Act and are furnished by Medicaid providers to recipients who 109 are determined to be eligible on the dates on which the services 110 were provided. Any optional service that is provided shall be 111 provided only when medically necessary and in accordance with 112 state and federal law. Optional services rendered by providers 113 in mobile units to Medicaid recipients may be restricted or 114 prohibited by the agency. Nothing in this section shall be 115 construed to prevent or limit the agency from adjusting fees, 116 reimbursement rates, lengths of stay, number of visits, or 117 number of services, o r making any other adjustments necessary to 118 comply with the availability of moneys and any limitations or 119 directions provided for in the General Appropriations Act or 120 chapter 216. If necessary to safeguard the state's systems of 121 providing services to elder ly and disabled persons and subject 122 to the notice and review provisions of s. 216.177, the Governor 123 may direct the Agency for Health Care Administration to amend 124 the Medicaid state plan to delete the optional Medicaid service 125 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 6 of 29 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 known as "Intermediate Care Fa cilities for the Developmentally 126 Disabled." Optional services may include: 127 (13) HOME AND COMMUNITY -BASED SERVICES.— 128 (d) The agency shall seek federal approval to pay for 129 flexible services for persons with severe mental illness or 130 substance use disorder s, including, but not limited to, 131 temporary housing assistance. Payments may be made as enhanced 132 capitation rates or incentive payments to managed care plans 133 that meet the requirements of s. 409.968(3) s. 409.968(4). 134 Section 3. Subsection (4) of sectio n 409.974, Florida 135 Statutes, is amended to read: 136 409.974 Eligible plans. — 137 (4) CHILDREN'S MEDICAL SERVICES NETWORK.— 138 (a) The Department of Health's Children's Medical Services 139 program shall do all of the following: 140 1. Effective July 1, 2025, transfer to the agency the 141 operation of managed care contracts procured by the department 142 for Medicaid and Children's Health Insurance Program services 143 provided to children and youth with special health care needs 144 who are enrolled in the Children's Medical Services Managed Care 145 Plan. 146 2. Conduct clinical eligibility screening for children and 147 youth with special health care needs who are eligible for or are 148 enrolled in Medicaid or the Children's Health Insurance Program. 149 3. Provide ongoing consultation to the agency to ensure 150 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 7 of 29 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 high-quality, family-centered, coordinated health services are 151 provided within an effective system of care for children and 152 youth with special health care needs. 153 (b) The agency shall establish specific measures of 154 access, quality, and costs of providing health care services to 155 children and youth with special health care needs. The agency 156 shall contract with an independent evaluator to conduct an 157 evaluation of services provided. The evaluation must include, 158 but need not be limited to, all of the following: 159 1. A performance comparison of plans contracted to provide 160 services to children and youth with special health care needs as 161 well as plans contracted to serve a broader population of 162 Managed Medical Assistance enrollees. The perform ance comparison 163 must be based on the measures established by the agency and 164 differentiated based on the age and medical condition or 165 diagnosis of patients receiving services under each plan. 166 2. For each plan, an assessment of cost savings, patient 167 choice, access to services, coordination of care, person -168 centered planning, health and quality -of-life outcomes, patient 169 and provider satisfaction, and provider networks and quality of 170 care. 171 172 The agency shall submit the results of the evaluation to the 173 Governor, the President of the Senate, and the Speaker of the 174 House of Representatives by January 15, 2028 Participation by 175 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 8 of 29 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 Children's Medical Services Network shall be pursuant to a 176 single, statewide contract with the agency that is not subject 177 to the procurement requirements or regional plan number limits 178 of this section. The Children's Medical Services Network must 179 meet all other plan requirements for the managed medical 180 assistance program. 181 Section 4. Subsection (1) of section 391.016, Florida 182 Statutes, is amended to read: 183 391.016 Purposes and functions. —The Children's Medical 184 Services program is established for the following purposes and 185 authorized to perform the following functions: 186 (1) Provide to children and youth with special health care 187 needs a family-centered, comprehensive, and coordinated 188 statewide managed system of care that links community -based 189 health care with multidisciplinary, regional, and tertiary 190 pediatric specialty care. The program shall coordinate and 191 maintain a consistent medical h ome for participating children. 192 Section 5. Subsections (1), (2), and (4) of section 193 391.021, Florida Statutes, are amended to read: 194 391.021 Definitions. —When used in this act, the term: 195 (2)(1) "Children's Medical Services Managed Care Plan 196 network" or "plan network" means a statewide managed care 197 service system that includes health care providers, as defined 198 in this section. 199 (1)(2) "Children and youth with special health care needs" 200 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 9 of 29 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 means those children and youth younger than 21 years of age who 201 have chronic and serious physical, developmental, behavioral, or 202 emotional conditions and who require health care and related 203 services of a type or amount beyond that which is generally 204 required by children and youth. 205 (4) "Eligible individual" means a child or youth with a 206 special health care need or a female with a high -risk pregnancy, 207 who meets the financial and medical eligibility standards 208 established in s. 391.029. 209 Section 6. Subsection (1) of section 391.025, Florida 210 Statutes, is amended to read: 211 391.025 Applicability and scope. — 212 (1) The Children's Medical Services program consists of 213 the following components: 214 (a) The newborn screening program established in s. 383.14 215 and the newborn, infant, and toddler hearing screening program 216 established in s. 383.145 . 217 (b) The regional perinatal intensive care centers program 218 established in ss. 383.15 -383.19. 219 (c) The developmental evaluation and intervention program, 220 including the Early Steps Program established in ss. 391.301-221 391.308. 222 (d) The Children's Medical Services Managed Care Plan 223 through the end of June 30, 2025 network. 224 (e) The Children's Multidisciplinary Assessment Team. 225 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 10 of 29 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 (f) The Medical Foster Care Program. 226 (g) The Title V Children and Youth wit h Special Health 227 Care Needs program. 228 (h) The Safety Net Program. 229 (i) Child Protection Teams and sexual abuse treatment 230 programs established under s. 39.303. 231 (j) The State Child Abuse Death Review Committee and local 232 child abuse death review committees established in s. 383.402. 233 Section 7. Section 391.026, Florida Statutes, is amended 234 to read: 235 391.026 Powers and duties of the department. —The 236 department shall have the following powers, duties, and 237 responsibilities: 238 (1) To provide or con tract for the provision of health 239 services to eligible individuals. 240 (2) To provide services to abused and neglected children 241 through Child Protection Teams pursuant to s. 39.303. 242 (3) To determine the medical and financial eligibility of 243 individuals seeking health services from the program. 244 (4) To coordinate a comprehensive delivery system for 245 eligible individuals to take maximum advantage of all available 246 funds. 247 (5) To coordinate with programs relating to children's 248 medical services in cooperation w ith other public and private 249 agencies. 250 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 11 of 29 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 (6) To initiate and coordinate applications to federal 251 agencies and private organizations for funds, services, or 252 commodities relating to children's medical programs. 253 (7) To sponsor or promote grants for projects, programs, 254 education, or research in the field of children and youth with 255 special health care needs, with an emphasis on early diagnosis 256 and treatment. 257 (8) To oversee and operate the Children's Medical Services 258 Managed Care Plan through the end of June 3 0, 2025 network. 259 (9) To establish reimbursement mechanisms for the 260 Children's Medical Services network. 261 (10) To establish Children's Medical Services network 262 standards and credentialing requirements for health care 263 providers and health care services. 264 (11) To serve as a provider and principal case manager for 265 children with special health care needs under Titles XIX and XXI 266 of the Social Security Act. 267 (9)(12) To monitor the provision of health services in the 268 program, including the utilization and qua lity of health 269 services. 270 (10)(13) To administer the Children and Youth with Special 271 Health Care Needs program in accordance with Title V of the 272 Social Security Act. 273 (14) To establish and operate a grievance resolution 274 process for participants and healt h care providers. 275 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 12 of 29 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 (15) To maintain program integrity in the Children's 276 Medical Services program. 277 (11)(16) To receive and manage health care premiums, 278 capitation payments, and funds from federal, state, local, and 279 private entities for the program. The d epartment may contract 280 with a third-party administrator for processing claims, 281 monitoring medical expenses, and other related services 282 necessary to the efficient and cost -effective operation of the 283 Children's Medical Services Managed Care Plan through the end of 284 June 30, 2025 network. The department is authorized to maintain 285 a minimum reserve for the Children's Medical Services network in 286 an amount that is the greater of: 287 (a) Ten percent of total projected expenditures for Title 288 XIX-funded and Title XXI -funded children; or 289 (b) Two percent of total annualized payments from the 290 Agency for Health Care Administration for Title XIX and Title 291 XXI of the Social Security Act . 292 (12)(17) To provide or contract for peer review and other 293 quality-improvement activities. 294 (13)(18) To adopt rules pursuant to ss. 120.536(1) and 295 120.54 to administer the Children's Medical Services Act. 296 (14)(19) To serve as the lead agency in administering the 297 Early Steps Program pursuant to part C of the federal 298 Individuals with Disab ilities Education Act and part III of this 299 chapter. 300 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 13 of 29 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 (15) To administer the Medical Foster Care Program, 301 including all of the following: 302 (a) Recruitment, training, assessment, and monitoring for 303 the Medical Foster Care Program. 304 (b) Monitoring access a nd facilitating admissions of 305 eligible children and youth to the program and designated 306 medical foster care homes. 307 (c) Coordination with the Department of Children and 308 Families and the Agency for Health Care Administration or their 309 designees. 310 Section 8. Effective July, 1, 2025, subsections (8) 311 through (11) of section 391.026, Florida Statutes, as amended by 312 this act, are repealed. 313 Section 9. Effective July 1, 2025, section 391.028, 314 Florida Statutes, is repealed. 315 Section 10. Subsections (2) and (3) of section 391.029, 316 Florida Statutes, are amended to read: 317 391.029 Program eligibility. — 318 (2) The following individuals are eligible to receive 319 services through the program: 320 (a) Related to the regional perinatal intensive care 321 centers, a high-risk pregnant female who is enrolled in 322 Medicaid. 323 (b) Children and youth with serious special health care 324 needs from birth to 21 years of age who are enrolled in 325 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 14 of 29 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 Medicaid. 326 (c) Children and youth with serious special health care 327 needs from birth to 19 year s of age who are enrolled in a 328 program under Title XXI of the Social Security Act. 329 (3) Subject to the availability of funds, the following 330 individuals may receive services through the Children's Medical 331 Services Safety Net program: 332 (a) Children and youth with serious special health care 333 needs from birth to 21 years of age who do not qualify for 334 Medicaid or Title XXI of the Social Security Act but who are 335 unable to access, due to lack of providers or lack of financial 336 resources, specialized services that are medically necessary or 337 essential family support services. Families shall participate 338 financially in the cost of care based on a sliding fee scale 339 established by the department. 340 (b) Children and youth with special health care needs from 341 birth to 21 years of age, as provided in Title V of the Social 342 Security Act. 343 (c) An infant who receives an award of compensation under 344 s. 766.31(1). The Florida Birth-Related Neurological Injury 345 Compensation Association shall reimburse the Children's Medical 346 Services Network the state's share of funding, which must 347 thereafter be used to obtain matching federal funds under Title 348 XXI of the Social Security Act. 349 Section 11. Section 391.0315, Florida Statutes, is amended 350 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 15 of 29 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 to read: 351 391.0315 Benefits.—Benefits provided under the Children's 352 Medical Services Managed Care Plan program for children with 353 special health care needs shall be equivalent to benefits 354 provided to children as specified in ss. 409.905 and 409.906. 355 The department may offer additional benefits through Children's 356 Medical Services programs for early intervention services, 357 respite services, genetic testing, genetic and nutritional 358 counseling, and parent support services, if such services are 359 determined to be medically necessary. This section is repealed 360 on January 1, 2026. 361 Section 12. Section 391.035, Florida Statutes, is 362 repealed. 363 Section 13. Effective January 1, 2026, section 391.037, 364 Florida Statutes, is repealed. 365 Section 14. Section 391.045, Florida Statutes, is 366 repealed. 367 Section 15. Effective January 1, 2026, section 391.047, 368 Florida Statutes, is repealed. 369 Section 16. Effective January 1, 2026, section 391.055, 370 Florida Statutes, is repealed. 371 Section 17. Effective January 1, 2026, section 391.071, 372 Florida Statutes, is repealed. 373 Section 18. Section 391.097, Florida Statutes, is amended 374 to read: 375 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 16 of 29 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 391.097 Research and evaluation. — 376 (1) The department may initiate, fund, and conduct 377 research and evaluation projects to improve the delivery of 378 children's medical services. The depar tment may cooperate with 379 public and private agencies engaged in work of a similar nature. 380 (2) The Children's Medical Services network shall be 381 included in any evaluation conducted in accordance with the 382 provisions of Title XXI of the Social Security Act as enacted by 383 the Legislature. 384 Section 19. Part II of chapter 391, Florida Statutes, 385 consisting of ss. 391.221 and 391.223, Florida Statutes, is 386 repealed, and part III of that chapter is redesignated as part 387 II. 388 Section 20. Effective July 1, 2025, paragraph (b) of 389 subsection (5) of section 409.166, Florida Statutes, is amended 390 to read: 391 409.166 Children within the child welfare system; adoption 392 assistance program.— 393 (5) ELIGIBILITY FOR SERVICES. — 394 (b) A child who is handicapped at the time of ado ption is 395 shall be eligible for services through a plan under contract 396 with the agency to serve children and youth with special heath 397 care needs the Children's Medical Services network established 398 under part I of chapter 391 if the child was eligible for such 399 services before prior to the adoption. 400 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 17 of 29 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 21. Effective July 1, 2025, subsection (7) of 401 section 409.811, Florida Statutes, is amended to read: 402 409.811 Definitions relating to Florida Kidcare Act. —As 403 used in ss. 409.810-409.821, the term: 404 (7) "Children's Medical Services Network" or "network" 405 means a statewide managed care service system as defined in s. 406 391.021(1). 407 Section 22. Effective July 1, 2025, subsection (1) of 408 section 409.813, Florida Statutes, is amended to read: 409 409.813 Health benefits coverage; program components; 410 entitlement and nonentitlement. — 411 (1) The Florida Kidcare program includes health benefits 412 coverage provided to children through the following program 413 components, which shall be m arketed as the Florida Kidcare 414 program: 415 (a) Medicaid; 416 (b) Medikids as created in s. 409.8132; 417 (c) The Florida Healthy Kids Corporation as created in s. 418 624.91; 419 (d) Employer-sponsored group health insurance plans 420 approved under ss. 409.810 -409.821; and 421 (e) Plans under contract with the agency to serve children 422 and youth with special health care needs The Children's Medical 423 Services network established in chapter 391 . 424 Section 23. Effective July 1, 2025, subsection (3) of 425 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 18 of 29 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 409.8134, Florid a Statutes, is amended to read: 426 409.8134 Program expenditure ceiling; enrollment. — 427 (3) Upon determination by the Social Services Estimating 428 Conference that there are insufficient funds to finance the 429 current enrollment in the Florida Kidcare program wi thin current 430 appropriations, the program shall initiate disenrollment 431 procedures to remove enrollees, except those children enrolled 432 in a plan under contract with the agency to serve children with 433 special health care needs the Children's Medical Services 434 Network, on a last-in, first-out basis until the expenditure and 435 appropriation levels are balanced. 436 Section 24. Subsection (3) and paragraph (c) of subsection 437 (10) of section 409.814, Florida Statutes, are amended to read: 438 409.814 Eligibility. —A child who has not reached 19 years 439 of age whose family income is equal to or below 300 percent of 440 the federal poverty level is eligible for the Florida Kidcare 441 program as provided in this section. If an enrolled individual 442 is determined to be ineligible for cov erage, he or she must be 443 immediately disenrolled from the respective Florida Kidcare 444 program component. 445 (3) A Title XXI-funded child who is eligible for the 446 Florida Kidcare program who is a child with special health care 447 needs, as determined through a me dical or behavioral screening 448 instrument, is eligible for health benefits coverage from and 449 shall be assigned to and may opt out of a plan under contract 450 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 19 of 29 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 with the agency to serve children with special health care needs 451 the Children's Medical Services Netwo rk. 452 (10) In determining the eligibility of a child, an assets 453 test is not required. If eligibility for the Florida Kidcare 454 program cannot be verified using reliable data sources in 455 accordance with federal requirements, each applicant shall 456 provide documentation during the application process and the 457 redetermination process, including, but not limited to, the 458 following: 459 (c) To enroll in a plan under contract with the agency to 460 service children with special health care needs the Children's 461 Medical Services Network, a completed application, including a 462 Children's Medical Services clinical screening. 463 Section 25. Effective July 1, 2025, paragraph (t) of 464 subsection (2) of section 409.815, Florida Statutes, is amended 465 to read: 466 409.815 Health benefits cove rage; limitations.— 467 (2) BENCHMARK BENEFITS. —In order for health benefits 468 coverage to qualify for premium assistance payments for an 469 eligible child under ss. 409.810 -409.821, the health benefits 470 coverage, except for coverage under Medicaid and Medikids, m ust 471 include the following minimum benefits, as medically necessary. 472 (t) Enhancements to minimum requirements. — 473 1. This section sets the minimum benefits that must be 474 included in any health benefits coverage, other than Medicaid or 475 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 20 of 29 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 Medikids coverage, of fered under ss. 409.810 -409.821. Health 476 benefits coverage may include additional benefits not included 477 under this subsection, but may not include benefits excluded 478 under paragraph (r). 479 2. Health benefits coverage may extend any limitations 480 beyond the minimum benefits described in this section. 481 482 Except for a plan under contract with the agency to serve 483 children with special health care needs the Children's Medical 484 Services Network, the agency may not increase the premium 485 assistance payment for either addit ional benefits provided 486 beyond the minimum benefits described in this section or the 487 imposition of less restrictive service limitations. 488 Section 26. Effective July 1, 2025, paragraph (i) of 489 subsection (1) of section 409.8177, Florida Statutes, is amend ed 490 to read: 491 409.8177 Program evaluation. — 492 (1) The agency, in consultation with the Department of 493 Health, the Department of Children and Families, and the Florida 494 Healthy Kids Corporation, shall contract for an evaluation of 495 the Florida Kidcare program and shall by January 1 of each year 496 submit to the Governor, the President of the Senate, and the 497 Speaker of the House of Representatives a report of the program. 498 In addition to the items specified under s. 2108 of Title XXI of 499 the Social Security Act, the report shall include an assessment 500 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 21 of 29 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 of crowd-out and access to health care, as well as the 501 following: 502 (i) An assessment of the effectiveness of the Florida 503 Kidcare program, including Medicaid, the Florida Healthy Kids 504 program, Medikids, and the plans under contract with the agency 505 to serve children with special health care needs Children's 506 Medical Services network , and other public and private programs 507 in the state in increasing the availability of affordable 508 quality health insurance and health care fo r children. 509 Section 27. Effective July 1, 2025, subsection (4) of 510 section 409.818, Florida Statutes, is amended to read: 511 409.818 Administration. —In order to implement ss. 409.810 -512 409.821, the following agencies shall have the following duties: 513 (4) The Office of Insurance Regulation shall certify that 514 health benefits coverage plans that seek to provide services 515 under the Florida Kidcare program, except those offered through 516 the Florida Healthy Kids Corporation or the Children's Medical 517 Services Network, meet, exceed, or are actuarially equivalent to 518 the benchmark benefit plan and that health insurance plans will 519 be offered at an approved rate. In determining actuarial 520 equivalence of benefits coverage, the Office of Insurance 521 Regulation and health insu rance plans must comply with the 522 requirements of s. 2103 of Title XXI of the Social Security Act. 523 The department shall adopt rules necessary for certifying health 524 benefits coverage plans. 525 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 22 of 29 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 28. Effective July 1, 2025, subsection (11) of 526 section 409.912, Florida Statutes, is amended to read: 527 409.912 Cost-effective purchasing of health care. —The 528 agency shall purchase goods and services for Medicaid recipients 529 in the most cost-effective manner consistent with the delivery 530 of quality medical care. T o ensure that medical services are 531 effectively utilized, the agency may, in any case, require a 532 confirmation or second physician's opinion of the correct 533 diagnosis for purposes of authorizing future services under the 534 Medicaid program. This section does no t restrict access to 535 emergency services or poststabilization care services as defined 536 in 42 C.F.R. s. 438.114. Such confirmation or second opinion 537 shall be rendered in a manner approved by the agency. The agency 538 shall maximize the use of prepaid per capita and prepaid 539 aggregate fixed-sum basis services when appropriate and other 540 alternative service delivery and reimbursement methodologies, 541 including competitive bidding pursuant to s. 287.057, designed 542 to facilitate the cost -effective purchase of a case -managed 543 continuum of care. The agency shall also require providers to 544 minimize the exposure of recipients to the need for acute 545 inpatient, custodial, and other institutional care and the 546 inappropriate or unnecessary use of high -cost services. The 547 agency shall contract with a vendor to monitor and evaluate the 548 clinical practice patterns of providers in order to identify 549 trends that are outside the normal practice patterns of a 550 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 23 of 29 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 provider's professional peers or the national guidelines of a 551 provider's professional association. The vendor must be able to 552 provide information and counseling to a provider whose practice 553 patterns are outside the norms, in consultation with the agency, 554 to improve patient care and reduce inappropriate utilization. 555 The agency may mandate pr ior authorization, drug therapy 556 management, or disease management participation for certain 557 populations of Medicaid beneficiaries, certain drug classes, or 558 particular drugs to prevent fraud, abuse, overuse, and possible 559 dangerous drug interactions. The Pha rmaceutical and Therapeutics 560 Committee shall make recommendations to the agency on drugs for 561 which prior authorization is required. The agency shall inform 562 the Pharmaceutical and Therapeutics Committee of its decisions 563 regarding drugs subject to prior auth orization. The agency is 564 authorized to limit the entities it contracts with or enrolls as 565 Medicaid providers by developing a provider network through 566 provider credentialing. The agency may competitively bid single -567 source-provider contracts if procurement o f goods or services 568 results in demonstrated cost savings to the state without 569 limiting access to care. The agency may limit its network based 570 on the assessment of beneficiary access to care, provider 571 availability, provider quality standards, time and dista nce 572 standards for access to care, the cultural competence of the 573 provider network, demographic characteristics of Medicaid 574 beneficiaries, practice and provider -to-beneficiary standards, 575 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 24 of 29 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 appointment wait times, beneficiary use of services, provider 576 turnover, provider profiling, provider licensure history, 577 previous program integrity investigations and findings, peer 578 review, provider Medicaid policy and billing compliance records, 579 clinical and medical record audits, and other factors. Providers 580 are not entitled to enrollment in the Medicaid provider network. 581 The agency shall determine instances in which allowing Medicaid 582 beneficiaries to purchase durable medical equipment and other 583 goods is less expensive to the Medicaid program than long -term 584 rental of the equipment or goods. The agency may establish rules 585 to facilitate purchases in lieu of long -term rentals in order to 586 protect against fraud and abuse in the Medicaid program as 587 defined in s. 409.913. The agency may seek federal waivers 588 necessary to administer t hese policies. 589 (11) The agency shall implement a program of all -inclusive 590 care for children. The program of all -inclusive care for 591 children shall be established to provide in -home hospice-like 592 support services to children diagnosed with a life -threatening 593 illness and enrolled in the Children's Medical Services network 594 to reduce hospitalizations as appropriate. The agency, in 595 consultation with the Department of Health, may implement the 596 program of all-inclusive care for children after obtaining 597 approval from the Centers for Medicare and Medicaid Services. 598 Section 29. Effective July 1, 2025, subsection (1) of 599 section 409.9126, Florida Statutes, is amended to read: 600 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 25 of 29 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 409.9126 Children with special health care needs. — 601 (1) Except as provided in subsection (4), children 602 eligible for the Children's Medical Services program who receive 603 Medicaid benefits, and other Medicaid -eligible children with 604 special health care needs, are shall be exempt from the 605 provisions of s. 409.9122 and shall be served through the 606 Children's Medical Services network established in chapter 391 . 607 Section 30. Effective July 1, 2025, paragraph (a) of 608 subsection (5) of section 409.9131, Florida Statutes, is amended 609 to read: 610 409.9131 Special provisions relating to integrity of the 611 Medicaid program.— 612 (5) DETERMINATIONS OF OVERPAYMENT. —In making a 613 determination of overpayment to a physician, the agency must: 614 (a) Use accepted and valid auditing, accounting, 615 analytical, statistical, or peer -review methods, or combinations 616 thereof. Appropriate statistical methods may include, but are 617 not limited to, sampling and extension to the population, 618 parametric and nonparametric statistics, tests of hypotheses, 619 other generally accepted statistical methods, review of medical 620 records, and a conside ration of the physician's client case mix. 621 Before performing a review of the physician's Medicaid records, 622 however, the agency shall make every effort to consider the 623 physician's patient case mix, including, but not limited to, 624 patient age and whether individual patients are clients of the 625 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 26 of 29 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 Children's Medical Services Network established in chapter 391 . 626 In meeting its burden of proof in any administrative or court 627 proceeding, the agency may introduce the results of such 628 statistical methods and its other audi t findings as evidence of 629 overpayment. 630 Section 31. Effective July 1, 2025, paragraph (e) of 631 subsection (1) of section 409.920, Florida Statutes, is amended 632 to read: 633 409.920 Medicaid provider fraud. — 634 (1) For the purposes of this section, the term: 635 (e) "Managed care plans" means a health insurer authorized 636 under chapter 624, an exclusive provider organization authorized 637 under chapter 627, a health maintenance organization authorized 638 under chapter 641, the Children's Medical Services Network 639 authorized under chapter 391 , a prepaid health plan authorized 640 under this chapter, a provider service network authorized under 641 this chapter, a minority physician network authorized under this 642 chapter, and an emergency department diversion program 643 authorized under this chapter or the General Appropriations Act, 644 providing health care services pursuant to a contract with the 645 Medicaid program. 646 Section 32. Effective July 1, 2025, subsection (7) of 647 section 409.962, Florida Statutes, is amended to read: 648 409.962 Definitions.—As used in this part, except as 649 otherwise specifically provided, the term: 650 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 27 of 29 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 (7) "Eligible plan" means a health insurer authorized 651 under chapter 624, an exclusive provider organization authorized 652 under chapter 627, a health maintenance organizatio n authorized 653 under chapter 641, or a provider service network authorized 654 under s. 409.912(1) or an accountable care organization 655 authorized under federal law. For purposes of the managed 656 medical assistance program, the term also includes the 657 Children's Medical Services Network authorized under chapter 391 658 and entities qualified under 42 C.F.R. part 422 as Medicare 659 Advantage Preferred Provider Organizations, Medicare Advantage 660 Provider-sponsored Organizations, Medicare Advantage Health 661 Maintenance Organizati ons, Medicare Advantage Coordinated Care 662 Plans, and Medicare Advantage Special Needs Plans, and the 663 Program of All-inclusive Care for the Elderly. 664 Section 33. Subsection (3) of section 409.968, Florida 665 Statutes, is amended to read: 666 409.968 Managed care plan payments.— 667 (3) Reimbursement for prescribed pediatric extended care 668 services provided to children enrolled in a managed care plan 669 under s. 409.972(1)(g) shall be paid to the prescribed pediatric 670 extended care services provider by the agency on a fee-for-671 service basis. 672 Section 34. Paragraph (g) of subsection (1) of section 673 409.972, Florida Statutes, is amended to read: 674 409.972 Mandatory and voluntary enrollment. — 675 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 28 of 29 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 (1) The following Medicaid -eligible persons are exempt 676 from mandatory managed care enrollment required by s. 409.965, 677 and may voluntarily choose to participate in the managed medical 678 assistance program: 679 (g) Children receiving services in a prescribed pediatric 680 extended care center. 681 Section 35. The Agency for Health Care Admini stration 682 shall develop a comprehensive plan to redesign the Florida 683 Medicaid Model Waiver for home and community -based services to 684 include children who receive private duty nursing services. The 685 plan must propose an array of tiered services with the goal o f 686 ensuring that institutional care is avoided so children can 687 remain in the home or other community setting. The agency must 688 work with stakeholders in developing the plan, including, but 689 not limited to, families of children who are in the model waiver 690 or receiving private duty nursing, advocates for children, 691 providers of services to children receiving private duty 692 nursing, and Statewide Medicaid Managed Care plans. The agency 693 is authorized to contract with necessary experts to assist in 694 developing the plan. The agency must submit a report to the 695 Governor, the President of the Senate, and the Speaker of the 696 House of Representatives by September 30, 2025, addressing, at a 697 minimum, all of the following: 698 (1) The purpose, rationale, and expected benefits of the 699 redesigned waiver plan. 700 CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-01-c1 Page 29 of 29 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 (2) The proposed eligibility criteria for clients and 701 service benefit packages to be offered through the redesigned 702 waiver plan. Managed care plans participating in the Statewide 703 Medicaid Managed Care program must provide serv ices under the 704 redesigned waiver plan. 705 (3) A proposed implementation plan and timeline, 706 including, but not limited to, recommendations for the number of 707 clients served by the redesigned waiver plan at initial 708 implementation, changes over time, and any pe r-client benefit 709 caps. 710 (4) The fiscal impact for the implementation year and 711 projections for the next 5 years determined on an actuarially 712 sound basis. 713 (5) An analysis of the availability of services and 714 service providers that would be offered under th e redesigned 715 waiver plan and recommendations to increase availability of such 716 services, as applicable. 717 (6) A list of all stakeholders, public and private, who 718 were consulted or contacted the development of the plan. 719 Section 36. Except as otherwise ex pressly provided in this 720 act, this act shall take effect upon becoming a law. 721