CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 1 of 27 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. 409.974, F.S.; 15 requiring the CMS program to transfer operation of 16 certain managed care contr acts from the department to 17 the agency effective on a specified date; requiring 18 the CMS program to conduct clinical eligibility 19 screening for certain children and youth with special 20 health care needs; requiring the program to provide 21 ongoing consultation t o the agency for a specified 22 purpose; requiring the agency to establish specific 23 measures for evaluation of services provided to 24 children and youth with special health care needs; 25 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 2 of 27 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 requiring the agency to contract with an independent 26 evaluator to conduct th e evaluation of services 27 provided; specifying requirements for the evaluation; 28 requiring the agency to submit the results of the 29 evaluation to the Governor and the Legislature by a 30 specified date; amending s. 391.016, F.S.; revising 31 the purposes and functi ons of the CMS program; 32 amending s. 391.021, F.S.; revising definitions; 33 amending s. 391.025, F.S.; revising the scope of the 34 CMS program; amending s. 391.026, F.S.; revising the 35 powers and duties of the department to conform to 36 changes made by the act; pr oviding for the future 37 repeal of s. 391.026(8) through (11), F.S., relating 38 to the department's oversight and administration of 39 the CMS program; repealing s. 391.028, F.S., relating 40 to administration of the program; amending s. 391.029, 41 F.S.; revising program eligibility requirements; 42 conforming provisions to changes made by the act; 43 amending s. 391.0315, F.S.; conforming provisions to 44 changes made by the act; providing for future repeal 45 of specified provisions; repealing ss. 391.035, 46 391.037, 391.045, 391. 047, 391.055, and 391.071, F.S., 47 relating to provider qualifications, physicians and 48 private sector services, provider reimbursements, 49 third-party payments, service delivery systems under 50 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 3 of 27 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 program, and quality of care requirements, 51 respectively; amendin g s. 391.097, F.S.; conforming a 52 provision to changes made by the act; repealing part 53 II of ch. 391, F.S., consisting of ss. 391.221 and 54 391.223, F.S., relating to Children's Medical Services 55 councils and panels; amending ss. 409.166, 409.811, 56 409.813, 409.8134, 409.814, 409.815, 409.8177, 57 409.818, 409.912, 409.9126, 409.9131, 409.920, and 58 409.962, F.S.; conforming provisions to changes made 59 by the act; requiring the Agency for Health Care 60 Administration to develop a comprehensive plan to 61 redesign the Florida Medicaid Model Waiver for home 62 and community-based services to include children who 63 receive private duty nursing services; providing 64 requirements for the redesign of waiver program; 65 requiring the Agency for Health Care Administration to 66 submit a report to the Governor, the President of the 67 Senate, and the Speaker of the House of 68 Representatives by a specified date; providing 69 effective dates. 70 71 Be It Enacted by the Legislature of the State of Florida: 72 73 Section 1. Transfer of operation of the Childr en's Medical 74 Services Managed Care Plan. — 75 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 4 of 27 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) Effective July 1, 2025, all statutory powers, duties, 76 functions, records, personnel, pending issues, existing 77 contracts, administrative authority, administrative rules, and 78 unexpended balances of appropriatio ns, allocations, and other 79 funds for the operation of the Department of Health's Children's 80 Medical Services Managed Care Plan are transferred to the Agency 81 for Health Care Administration. 82 (2) The transfer of operations of the Children's Medical 83 Services Managed Care Plan does not affect the validity of any 84 judicial or administrative action pending as of 11:59 p.m. on 85 the day before the effective date of the transfer to which the 86 Department of Health's Children's Medical Services Managed Care 87 Plan is at that time a party, and the Agency for Health Care 88 Administration shall be substituted as a party in interest in 89 any such action. 90 (3) The Department of Health's Children's Medical Services 91 program shall collaborate with the Agency for Health Care 92 Administration in the care of children and youth with special 93 health care needs. The Department of Health's Children's Medical 94 Services program shall do all of the following: 95 (a) Conduct clinical eligibility screening for children 96 and youth with special health ca re needs who are eligible for or 97 enrolled in Medicaid or the Children's Health Insurance Program. 98 (b) Provide ongoing consultation to the Agency for Health 99 Care Administration to ensure high -quality, family-centered, 100 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 5 of 27 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 coordinated health services within an effective system of care 101 for children and youth with special health care needs. 102 Section 2. Subsection (4) of section 409.974, Florida 103 Statutes, is amended to read: 104 409.974 Eligible plans. — 105 (4) CHILDREN'S MEDICAL SERVICES NETWORK.— 106 (a) The Department of Health's Children's Medical Services 107 program shall do all of the following: 108 1. Effective July 1, 2025, transfer to the agency the 109 operation of managed care contracts procured by the department 110 for Medicaid and Children's Health Insurance Program services 111 provided to children and youth with special health care needs 112 who are enrolled in the Children's Medical Services Managed Care 113 Plan. 114 2. Conduct clinical eligibility screening for children and 115 youth with special health care needs who are eligible for or are 116 enrolled in Medicaid or the Children's Health Insurance Program. 117 3. Provide ongoing consultation to the agency to ensure 118 high-quality, family-centered, coordinated health services are 119 provided within an effective system of care for children and 120 youth with special health care needs. 121 (b) The agency shall establish specific measures of 122 access, quality, and costs of providing health care services to 123 children and youth with special health care needs. The agency 124 shall contract with an independent evaluator to conduct an 125 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 6 of 27 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 evaluation of services provided. The evaluation must include, 126 but need not be limited to, all of the following: 127 1. A performance comparison of plans contracted to provide 128 services to children and youth with special health care ne eds as 129 well as plans contracted to serve a broader population of 130 Managed Medical Assistance enrollees. The performance comparison 131 must be based on the measures established by the agency and 132 differentiated based on the age and medical condition or 133 diagnosis of patients receiving services under each plan. 134 2. For each plan, an assessment of cost savings, patient 135 choice, access to services, coordination of care, person -136 centered planning, health and quality -of-life outcomes, patient 137 and provider satisfaction, and provider networks and quality of 138 care. 139 140 The agency shall submit the results of the evaluation to the 141 Governor, the President of the Senate, and the Speaker of the 142 House of Representatives by January 15, 2028 Participation by 143 the Children's Medical Serv ices Network shall be pursuant to a 144 single, statewide contract with the agency that is not subject 145 to the procurement requirements or regional plan number limits 146 of this section. The Children's Medical Services Network must 147 meet all other plan requirements for the managed medical 148 assistance program. 149 Section 3. Subsection (1) of section 391.016, Florida 150 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 7 of 27 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S Statutes, is amended to read: 151 391.016 Purposes and functions. —The Children's Medical 152 Services program is established for the following purposes and 153 authorized to perform the following functions: 154 (1) Provide to children and youth with special health care 155 needs a family-centered, comprehensive, and coordinated 156 statewide managed system of care that links community -based 157 health care with multidisciplinary, regional, and tertiary 158 pediatric specialty care. The program shall coordinate and 159 maintain a consistent medical home for participating children. 160 Section 4. Subsections (1), (2), and (4) of section 161 391.021, Florida Statutes, are amended to read: 162 391.021 Definitions.—When used in this act, the term: 163 (2)(1) "Children's Medical Services Managed Care Plan 164 network" or "plan network" means a statewide managed care 165 service system that includes health care providers, as defined 166 in this section. 167 (1)(2) "Children and youth with special health care needs" 168 means those children and youth younger than 21 years of age who 169 have chronic and serious physical, developmental, behavioral, or 170 emotional conditions and who require health care and related 171 services of a type or amount beyond that which is generally 172 required by children and youth. 173 (4) "Eligible individual" means a child or youth with a 174 special health care need or a female with a high -risk pregnancy, 175 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 8 of 27 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 who meets the financial and medical eligibility standards 176 established in s. 391.029. 177 Section 5. Subsection (1) of section 391.025, Florida 178 Statutes, is amended to read: 179 391.025 Applicability and scope. — 180 (1) The Children's Medical Services program consists of 181 the following components: 182 (a) The newborn scr eening program established in s. 383.14 183 and the newborn, infant, and toddler hearing screening program 184 established in s. 383.145 . 185 (b) The regional perinatal intensive care centers program 186 established in ss. 383.15 -383.19. 187 (c) The developmental evaluation and intervention program, 188 including the Early Steps Program established in ss. 391.301 -189 391.308. 190 (d) The Children's Medical Services Managed Care Plan 191 through the end of June 30, 2025 network. 192 (e) The Children's Multidi sciplinary Assessment Team. 193 (f) The Medical Foster Care Program. 194 (g) The Title V Children and Youth with Special Health 195 Care Needs program. 196 (h) The Safety Net Program. 197 (i) Child Protection Teams and sexual abuse treatment 198 programs established under s. 39.303. 199 (j) The State Child Abuse Death Review Committee and local 200 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 9 of 27 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 child abuse death review committees established in s. 383.402. 201 Section 6. Section 391.026, Florida Statutes, is amended 202 to read: 203 391.026 Powers and duties of the department. —The 204 department shall have the following powers, duties, and 205 responsibilities: 206 (1) To provide or contract for the provision of health 207 services to eligible individuals. 208 (2) To provide services to abused and neglected children 209 through Child Protection Teams pursuant to s. 39.303. 210 (3) To determine the medical and financial eligibility of 211 individuals seeking health services from the program. 212 (4) To coordinate a comprehensive delivery system for 213 eligible individuals to take maximum advantage of all available 214 funds. 215 (5) To coordinate with programs relating to children's 216 medical services in cooperation with other public and private 217 agencies. 218 (6) To initiate and coordinate applications to federal 219 agencies and private organizations for funds, services, or 220 commodities relating to children's medical programs. 221 (7) To sponsor or promote grants for projects, programs, 222 education, or research in the field of children and youth with 223 special health care needs, with an emphasis on early diagnosis 224 and treatment. 225 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 10 of 27 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 (8) To oversee and operate the Children's Medical Services 226 Managed Care Plan through the end of June 30, 2025 network. 227 (9) To establish reimbursement mechanisms for the 228 Children's Medical Services network. 229 (10) To establish Children's Medical Services netw ork 230 standards and credentialing requirements for health care 231 providers and health care services. 232 (11) To serve as a provider and principal case manager for 233 children with special health care needs under Titles XIX and XXI 234 of the Social Security Act. 235 (9)(12) To monitor the provision of health services in the 236 program, including the utilization and quality of health 237 services. 238 (10)(13) To administer the Children and Youth with Special 239 Health Care Needs program in accordance with Title V of the 240 Social Security Act. 241 (14) To establish and operate a grievance resolution 242 process for participants and health care providers. 243 (15) To maintain program integrity in the Children's 244 Medical Services program. 245 (11)(16) To receive and manage health care premiums, 246 capitation payments, and funds from federal, state, local, and 247 private entities for the program. The department may contract 248 with a third-party administrator for processing claims, 249 monitoring medical expenses, and other related services 250 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 11 of 27 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 necessary to the effici ent and cost-effective operation of the 251 Children's Medical Services Managed Care Plan through the end of 252 June 30, 2025 network. The department is authorized to maintain 253 a minimum reserve for the Children's Medical Services network in 254 an amount that is the greater of: 255 (a) Ten percent of total projected expenditures for Title 256 XIX-funded and Title XXI -funded children; or 257 (b) Two percent of total annualized payments from the 258 Agency for Health Care Administration for Title XIX and Title 259 XXI of the Social Sec urity Act. 260 (12)(17) To provide or contract for peer review and other 261 quality-improvement activities. 262 (13)(18) To adopt rules pursuant to ss. 120.536(1) and 263 120.54 to administer the Children's Medical Services Act. 264 (14)(19) To serve as the lead agency in administering the 265 Early Steps Program pursuant to part C of the federal 266 Individuals with Disabilities Education Act and part III of this 267 chapter. 268 (15) To administer the Medical Foster Care Program, 269 including all of the following: 270 (a) Recruitment, training, assessment, and monitoring for 271 the Medical Foster Care Program. 272 (b) Monitoring access and facilitating admissions of 273 eligible children and youth to the program and designated 274 medical foster care homes. 275 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 12 of 27 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 (c) Coordination with the Department of C hildren and 276 Families and the Agency for Health Care Administration or their 277 designees. 278 Section 7. Effective July, 1, 2025, subsections (8) 279 through (11) of section 391.026, Florida Statutes, as amended by 280 this act, are repealed. 281 Section 8. Effective July 1, 2025, section 391.028, 282 Florida Statutes, is repealed. 283 Section 9. Subsections (2) and (3) of section 391.029, 284 Florida Statutes, are amended to read: 285 391.029 Program eligibility. — 286 (2) The following individuals are eligible to receive 287 services through the program: 288 (a) Related to the regional perinatal intensive care 289 centers, a high-risk pregnant female who is enrolled in 290 Medicaid. 291 (b) Children and youth with serious special health care 292 needs from birth to 21 years of age who are enr olled in 293 Medicaid. 294 (c) Children and youth with serious special health care 295 needs from birth to 19 years of age who are enrolled in a 296 program under Title XXI of the Social Security Act. 297 (3) Subject to the availability of funds, the following 298 individuals may receive services through the Children's Medical 299 Services Safety Net program: 300 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 13 of 27 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) Children and youth with serious special health care 301 needs from birth to 21 years of age who do not qualify for 302 Medicaid or Title XXI of the Social Security Act but who are 303 unable to access, due to lack of providers or lack of financial 304 resources, specialized services that are medically necessary or 305 essential family support services. Families shall participate 306 financially in the cost of care based on a sliding fee scale 307 established by the department. 308 (b) Children and youth with special health care needs from 309 birth to 21 years of age, as provided in Title V of the Social 310 Security Act. 311 (c) An infant who receives an award of compensation under 312 s. 766.31(1). The Florida Birth-Related Neurological Injury 313 Compensation Association shall reimburse the Children's Medical 314 Services Network the state's share of funding, which must 315 thereafter be used to obtain matching federal funds under Title 316 XXI of the Social Security Act. 317 Section 10. Section 391.0315, Florida Statutes, is amended 318 to read: 319 391.0315 Benefits.—Benefits provided under the Children's 320 Medical Services Managed Care Plan program for children with 321 special health care needs shall be equivalent to benefits 322 provided to children as specified in ss. 409.905 and 409.906. 323 The department may offer additional benefits through Children's 324 Medical Services programs for early intervention services, 325 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 14 of 27 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 respite services, genetic testing, genetic and nutritional 326 counseling, and parent support services, if such services are 327 determined to be medically necessary. This section is repealed 328 on January 1, 2026. 329 Section 11. Section 391.035, Florida Statutes, is 330 repealed. 331 Section 12. Effective January 1, 2026, section 391.037, 332 Florida Statutes, is repealed. 333 Section 13. Section 391.045, Florida Statutes, is 334 repealed. 335 Section 14. Effective January 1, 2026, section 391.047, 336 Florida Statutes, is repealed. 337 Section 15. Effective January 1, 2026, section 391.055, 338 Florida Statutes, is repealed. 339 Section 16. Effective January 1, 2026, section 391.071, 340 Florida Statutes, is repealed. 341 Section 17. Section 391.097, Florida Statutes, is amended 342 to read: 343 391.097 Research and evaluation. — 344 (1) The department may initiate, fund, and co nduct 345 research and evaluation projects to improve the delivery of 346 children's medical services. The department may cooperate with 347 public and private agencies engaged in work of a similar nature. 348 (2) The Children's Medical Services network shall be 349 included in any evaluation conducted in accordance with the 350 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 15 of 27 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 provisions of Title XXI of the Social Security Act as enacted by 351 the Legislature. 352 Section 18. Part II of chapter 391, Florida Statutes, 353 consisting of ss. 391.221 and 391.223, Florida Statutes, is 354 repealed, and part III of that chapter is redesignated as part 355 II. 356 Section 19. Effective July 1, 2025, paragraph (b) of 357 subsection (5) of section 409.166, Florida Statutes, is amended 358 to read: 359 409.166 Children within the child welfare system; adoption 360 assistance program.— 361 (5) ELIGIBILITY FOR SERVICES. — 362 (b) A child who is handicapped at the time of adoption is 363 shall be eligible for services through a plan under contract 364 with the agency to serve children and youth with special heath 365 care needs the Children's Medical Services network established 366 under part I of chapter 391 if the child was eligible for such 367 services before prior to the adoption. 368 Section 20. Effective July 1, 2025, subsection (7) of 369 section 409.811, Florida Statutes, is amended to read: 370 409.811 Definitions relating to Florida Kidcare Act. —As 371 used in ss. 409.810-409.821, the term: 372 (7) "Children's Medical Services Network" or "network" 373 means a statewide managed care service system as defined in s. 374 391.021(1). 375 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 16 of 27 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 (1) of 376 section 409.813, Florida Statutes, is amended to read: 377 409.813 Health benefits coverage; program components; 378 entitlement and nonentitlement. — 379 (1) The Florida Kidcare program includes health benefits 380 coverage provided to children through the following program 381 components, which shall be marketed as the Florida Kidcare 382 program: 383 (a) Medicaid; 384 (b) Medikids as created in s. 409.8132; 385 (c) The Florida Healthy Kids Corporation as created in s. 386 624.91; 387 (d) Employer-sponsored group health insurance plans 388 approved under ss. 409.810 -409.821; and 389 (e) Plans under contract with the agency to serve children 390 and youth with special health care needs The Children's Medical 391 Services network established in chapter 391 . 392 Section 22. Effective July 1, 2025, subsection (3) of 393 section 409.8134, Florida Statutes, is amended to read: 394 409.8134 Program expenditure ceiling; enrollment. — 395 (3) Upon determination by the Social Services Estimating 396 Conference that there are insuffi cient funds to finance the 397 current enrollment in the Florida Kidcare program within current 398 appropriations, the program shall initiate disenrollment 399 procedures to remove enrollees, except those children enrolled 400 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 17 of 27 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 in a plan under contract with the agency to serve children with 401 special health care needs the Children's Medical Services 402 Network, on a last-in, first-out basis until the expenditure and 403 appropriation levels are balanced. 404 Section 23. Subsection (3) and paragraph (c) of subsection 405 (10) of section 409.814, Florida Statutes, are amended to read: 406 409.814 Eligibility. —A child who has not reached 19 years 407 of age whose family income is equal to or below 300 percent of 408 the federal poverty level is eligible for the Florida Kidcare 409 program as provided in this section. If an enrolled individual 410 is determined to be ineligible for coverage, he or she must be 411 immediately disenrolled from the respective Florida Kidcare 412 program component. 413 (3) A Title XXI-funded child who is eligible for the 414 Florida Kidcare program who is a child with special health care 415 needs, as determined through a medical or behavioral screening 416 instrument, is eligible for health benefits coverage from and 417 shall be assigned to and may opt out of a plan under contract 418 with the agency to serv e children with special health care needs 419 the Children's Medical Services Network . 420 (10) In determining the eligibility of a child, an assets 421 test is not required. If eligibility for the Florida Kidcare 422 program cannot be verified using reliable data sourc es in 423 accordance with federal requirements, each applicant shall 424 provide documentation during the application process and the 425 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 18 of 27 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 redetermination process, including, but not limited to, the 426 following: 427 (c) To enroll in a plan under contract with the agency to 428 service children with special health care needs the Children's 429 Medical Services Network , a completed application, including a 430 Children's Medical Services clinical screening. 431 Section 24. Effective July 1, 2025, paragraph (t) of 432 subsection (2) of sectio n 409.815, Florida Statutes, is amended 433 to read: 434 409.815 Health benefits coverage; limitations. — 435 (2) BENCHMARK BENEFITS. —In order for health benefits 436 coverage to qualify for premium assistance payments for an 437 eligible child under ss. 409.810 -409.821, the health benefits 438 coverage, except for coverage under Medicaid and Medikids, must 439 include the following minimum benefits, as medically necessary. 440 (t) Enhancements to minimum requirements. — 441 1. This section sets the minimum benefits that must be 442 included in any health benefits coverage, other than Medicaid or 443 Medikids coverage, offered under ss. 409.810 -409.821. Health 444 benefits coverage may include additional benefits not included 445 under this subsection, but may not include benefits excluded 446 under paragraph (r). 447 2. Health benefits coverage may extend any limitations 448 beyond the minimum benefits described in this section. 449 450 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 19 of 27 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 Except for a plan under contract with the agency to serve 451 children with special health care needs the Children's Medical 452 Services Network, the agency may not increase the premium 453 assistance payment for either additional benefits provided 454 beyond the minimum benefits described in this section or the 455 imposition of less restrictive service limitations. 456 Section 25. Effective July 1, 2025, paragraph (i) of 457 subsection (1) of section 409.8177, Florida Statutes, is amended 458 to read: 459 409.8177 Program evaluation. — 460 (1) The agency, in consultation with the Department of 461 Health, the Department of Children and Families, and the Florida 462 Healthy Kids Corporation, shall contract for an evaluation of 463 the Florida Kidcare program and shall by January 1 of each year 464 submit to the Governor, the President of the Senate, and the 465 Speaker of the House of Representatives a report of the program. 466 In addition to the items specified under s. 2108 of Title XXI of 467 the Social Security Act, the report shall include an assessment 468 of crowd-out and access to health care, as well as the 469 following: 470 (i) An assessment of the effectiveness of the Florida 471 Kidcare program, inc luding Medicaid, the Florida Healthy Kids 472 program, Medikids, and the plans under contract with the agency 473 to serve children with special health care needs Children's 474 Medical Services network , and other public and private programs 475 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 20 of 27 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 in the state in increasing the availability of affordable 476 quality health insurance and health care for children. 477 Section 26. Effective July 1, 2025, subsection (4) of 478 section 409.818, Florida Statutes, is amended to read: 479 409.818 Administration. —In order to implement ss. 409. 810-480 409.821, the following agencies shall have the following duties: 481 (4) The Office of Insurance Regulation shall certify that 482 health benefits coverage plans that seek to provide services 483 under the Florida Kidcare program, except those offered through 484 the Florida Healthy Kids Corporation or the Children's Medical 485 Services Network, meet, exceed, or are actuarially equivalent to 486 the benchmark benefit plan and that health insurance plans will 487 be offered at an approved rate. In determining actuarial 488 equivalence of benefits coverage, the Office of Insurance 489 Regulation and health insurance plans must comply with the 490 requirements of s. 2103 of Title XXI of the Social Security Act. 491 The department shall adopt rules necessary for certifying health 492 benefits coverage plans. 493 Section 27. Effective July 1, 2025, subsection (11) of 494 section 409.912, Florida Statutes, is amended to read: 495 409.912 Cost-effective purchasing of health care. —The 496 agency shall purchase goods and services for Medicaid recipients 497 in the most cost-effective manner consistent with the delivery 498 of quality medical ca re. To ensure that medical services are 499 effectively utilized, the agency may, in any case, require a 500 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 21 of 27 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 confirmation or second physician's opinion of the correct 501 diagnosis for purposes of authorizing future services under the 502 Medicaid program. This section do es not restrict access to 503 emergency services or poststabilization care services as defined 504 in 42 C.F.R. s. 438.114. Such confirmation or second opinion 505 shall be rendered in a manner approved by the agency. The agency 506 shall maximize the use of prepaid per c apita and prepaid 507 aggregate fixed-sum basis services when appropriate and other 508 alternative service delivery and reimbursement methodologies, 509 including competitive bidding pursuant to s. 287.057, designed 510 to facilitate the cost -effective purchase of a case -managed 511 continuum of care. The agency shall also require providers to 512 minimize the exposure of recipients to the need for acute 513 inpatient, custodial, and other institutional care and the 514 inappropriate or unnecessary use of high -cost services. The 515 agency shall contract with a vendor to monitor and evaluate the 516 clinical practice patterns of providers in order to identify 517 trends that are outside the normal practice patterns of a 518 provider's professional peers or the national guidelines of a 519 provider's professional association. The vendor must be able to 520 provide information and counseling to a provider whose practice 521 patterns are outside the norms, in consultation with the agency, 522 to improve patient care and reduce inappropriate utilization. 523 The agency may manda te prior authorization, drug therapy 524 management, or disease management participation for certain 525 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 22 of 27 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 populations of Medicaid beneficiaries, certain drug classes, or 526 particular drugs to prevent fraud, abuse, overuse, and possible 527 dangerous drug interactions. Th e Pharmaceutical and Therapeutics 528 Committee shall make recommendations to the agency on drugs for 529 which prior authorization is required. The agency shall inform 530 the Pharmaceutical and Therapeutics Committee of its decisions 531 regarding drugs subject to prior authorization. The agency is 532 authorized to limit the entities it contracts with or enrolls as 533 Medicaid providers by developing a provider network through 534 provider credentialing. The agency may competitively bid single -535 source-provider contracts if procurem ent of goods or services 536 results in demonstrated cost savings to the state without 537 limiting access to care. The agency may limit its network based 538 on the assessment of beneficiary access to care, provider 539 availability, provider quality standards, time and distance 540 standards for access to care, the cultural competence of the 541 provider network, demographic characteristics of Medicaid 542 beneficiaries, practice and provider -to-beneficiary standards, 543 appointment wait times, beneficiary use of services, provider 544 turnover, provider profiling, provider licensure history, 545 previous program integrity investigations and findings, peer 546 review, provider Medicaid policy and billing compliance records, 547 clinical and medical record audits, and other factors. Providers 548 are not entitled to enrollment in the Medicaid provider network. 549 The agency shall determine instances in which allowing Medicaid 550 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 23 of 27 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 beneficiaries to purchase durable medical equipment and other 551 goods is less expensive to the Medicaid program than long -term 552 rental of the equipment or goods. The agency may establish rules 553 to facilitate purchases in lieu of long -term rentals in order to 554 protect against fraud and abuse in the Medicaid program as 555 defined in s. 409.913. The agency may seek federal waivers 556 necessary to adminis ter these policies. 557 (11) The agency shall implement a program of all -inclusive 558 care for children. The program of all -inclusive care for 559 children shall be established to provide in -home hospice-like 560 support services to children diagnosed with a life -threatening 561 illness and enrolled in the Children's Medical Services network 562 to reduce hospitalizations as appropriate. The agency, in 563 consultation with the Department of Health, may implement the 564 program of all-inclusive care for children after obtaining 565 approval from the Centers for Medicare and Medicaid Services. 566 Section 28. Effective July 1, 2025, subsection (1) of 567 section 409.9126, Florida Statutes, is amended to read: 568 409.9126 Children with special health care needs. — 569 (1) Except as provided in subse ction (4), children 570 eligible for the Children's Medical Services program who receive 571 Medicaid benefits, and other Medicaid -eligible children with 572 special health care needs, are shall be exempt from the 573 provisions of s. 409.9122 and shall be served through the 574 Children's Medical Services network established in chapter 391 . 575 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 24 of 27 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 29. Effective July 1, 2025, paragraph (a) of 576 subsection (5) of section 409.9131, Florida Statutes, is amended 577 to read: 578 409.9131 Special provisions relating to integrity of the 579 Medicaid program.— 580 (5) DETERMINATIONS OF OVERPAYMENT. —In making a 581 determination of overpayment to a physician, the agency must: 582 (a) Use accepted and valid auditing, accounting, 583 analytical, statistical, or peer -review methods, or combinations 584 thereof. Appropriate statistical methods may include, but are 585 not limited to, sampling and extension to the population, 586 parametric and nonparametric statistics, tests of hypotheses, 587 other generally accepted statistical methods, review of medical 588 records, and a consideration of the physician's client case mix. 589 Before performing a review of the physician's Medicaid records, 590 however, the agency shall make every effort to consider the 591 physician's patient case mix, including, but not limited to, 592 patient age and whether individual patients are clients of the 593 Children's Medical Services Network established in chapter 391 . 594 In meeting its burden of proof in any administrative or court 595 proceeding, the agency may introduce the results of such 596 statistical methods and its othe r audit findings as evidence of 597 overpayment. 598 Section 30. Effective July 1, 2025, paragraph (e) of 599 subsection (1) of section 409.920, Florida Statutes, is amended 600 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 25 of 27 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: 601 409.920 Medicaid provider fraud. — 602 (1) For the purposes of this section, the t erm: 603 (e) "Managed care plans" means a health insurer authorized 604 under chapter 624, an exclusive provider organization authorized 605 under chapter 627, a health maintenance organization authorized 606 under chapter 641, the Children's Medical Services Network 607 authorized under chapter 391 , a prepaid health plan authorized 608 under this chapter, a provider service network authorized under 609 this chapter, a minority physician network authorized under this 610 chapter, and an emergency department diversion program 611 authorized under this chapter or the General Appropriations Act, 612 providing health care services pursuant to a contract with the 613 Medicaid program. 614 Section 31. Effective July 1, 2025, subsection (7) of 615 section 409.962, Florida Statutes, is amended to read: 616 409.962 Definitions.—As used in this part, except as 617 otherwise specifically provided, the term: 618 (7) "Eligible plan" means a health insurer authorized 619 under chapter 624, an exclusive provider organization authorized 620 under chapter 627, a health maintenance organ ization authorized 621 under chapter 641, or a provider service network authorized 622 under s. 409.912(1) or an accountable care organization 623 authorized under federal law. For purposes of the managed 624 medical assistance program, the term also includes the 625 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 26 of 27 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 authorized under chapter 391 626 and entities qualified under 42 C.F.R. part 422 as Medicare 627 Advantage Preferred Provider Organizations, Medicare Advantage 628 Provider-sponsored Organizations, Medicare Advantage Health 629 Maintenance Organizations, Medicare Advantage Coordinated Care 630 Plans, and Medicare Advantage Special Needs Plans, and the 631 Program of All-inclusive Care for the Elderly. 632 Section 32. The Agency for Health Care Administration 633 shall develop a comprehensive plan to redesig n the Florida 634 Medicaid Model Waiver for home and community -based services to 635 include children who receive private duty nursing services. The 636 plan must propose an array of tiered services with the goal of 637 ensuring that institutional care is avoided so child ren can 638 remain in the home or other community setting. The agency must 639 work with stakeholders in developing the plan, including, but 640 not limited to, families of children who are in the model waiver 641 or receiving private duty nursing, advocates for children, 642 providers of services to children receiving private duty 643 nursing, and Statewide Medicaid Managed Care plans. The agency 644 is authorized to contract with necessary experts to assist in 645 developing the plan. The agency must submit a report to the 646 Governor, the President of the Senate, and the Speaker of the 647 House of Representatives by September 30, 2025, addressing, at a 648 minimum, all of the following: 649 (1) The purpose, rationale, and expected benefits of the 650 CS/CS/HB 1085 2025 CODING: Words stricken are deletions; words underlined are additions. hb1085-02-c2 Page 27 of 27 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 redesigned waiver plan. 651 (2) The proposed eligibili ty criteria for clients and 652 service benefit packages to be offered through the redesigned 653 waiver plan. Managed care plans participating in the Statewide 654 Medicaid Managed Care program must provide services under the 655 redesigned waiver plan. 656 (3) A proposed implementation plan and timeline, 657 including, but not limited to, recommendations for the number of 658 clients served by the redesigned waiver plan at initial 659 implementation, changes over time, and any per -client benefit 660 caps. 661 (4) The fiscal impact for the i mplementation year and 662 projections for the next 5 years determined on an actuarially 663 sound basis. 664 (5) An analysis of the availability of services and 665 service providers that would be offered under the redesigned 666 waiver plan and recommendations to increase availability of such 667 services, as applicable. 668 (6) A list of all stakeholders, public and private, who 669 were consulted or contacted the development of the plan. 670 Section 33. Except as otherwise expressly provided in this 671 act, this act shall take effect upon becoming a law. 672