HLS 19RS-374 ORIGINAL 2019 Regular Session HOUSE BILL NO. 129 BY REPRESENTATIVE CARMODY Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. MEDICAID: Provides relative to Medicaid nonemergency transportation providers and services 1 AN ACT 2To enact R.S. 46:450.2.1, 460.51(15) through (19), and Subpart E of Part XIII of Chapter 3 3 of Title 46 of the Louisiana Revised Statutes of 1950, to be comprised of R.S. 4 46:460.101 through 460.103, relative to the medical assistance program of this state 5 known commonly as Medicaid; to provide for duties of the secretary of the Louisiana 6 Department of Health in administering the Medicaid program; to provide for 7 regulation of providers of nonemergency transportation services for Medicaid 8 enrollees; to require that such providers meet certain qualifications; to authorize 9 nonmedical transportation services in the Medicaid program and provide for 10 regulation of such services; to provide for administration of the Medicaid managed 11 care program; to provide for duties of Medicaid managed care organizations with 12 respect to nonemergency medical and nonmedical transportation; to provide 13 definitions; to require promulgation of administrative rules; and to provide for 14 related matters. 15Be it enacted by the Legislature of Louisiana: 16 Section 1. R.S. 46:450.2.1, 460.51(15) through (19), and Subpart E of Part XIII of 17Chapter 3 of Title 46 of the Louisiana Revised Statutes of 1950, comprised of R.S. 1846:460.101 through 460.103, are hereby enacted to read as follows: Page 1 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 1 §450.2.1. Medicaid nonmedical transportation services 2 A. For purposes of this Section, the following terms have the meaning 3 ascribed to them in this Subsection: 4 (1) "Department" means the Louisiana Department of Health. 5 (2) "Managed care organization" has the meaning ascribed in R.S. 46:460.51. 6 (3) "Nonmedical transportation service" means transportation of a Medicaid 7 recipient enrolled in a managed care plan, other than a recipient whose medical or 8 physical condition contraindicates the use of transportation services, to and from a 9 medically necessary, nonemergency covered healthcare service that is scheduled not 10 more than forty-eight hours before the transportation occurs. The term shall include 11 transportation related to all of the following: 12 (a) Discharge from a healthcare facility. 13 (b) Receipt of urgent care. 14 (c) Obtaining pharmacy services and prescription drugs. 15 (d) Obtaining any time-sensitive covered healthcare service. 16 (e) Any transportation to or from a medically necessary, nonemergency 17 covered healthcare service that the department considers appropriate to be provided 18 by a transportation vendor, as determined by rule or policy of the department. 19 (4) "Transportation network company" means a corporation, partnership, 20 sole proprietorship, or other entity that, for compensation, enables a passenger to 21 prearrange with a driver, exclusively through the entity's digital network, a digitally 22 prearranged ride. The term does not include an entity that provides any of the 23 following: 24 (a) Street-hail taxicab services. 25 (b) Limousine or other car services arranged by a method other than through 26 a digital network. 27 (c) Shared expense carpool or vanpool arrangements. 28 (d) A type of ride service for which either of the following conditions apply: Page 2 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 1 (i) The fee received by the driver does not exceed the driver's costs of 2 providing the ride. 3 (ii) The driver receives a fee that exceeds the driver's costs associated with 4 providing the ride but makes not more than three round-trips per day between the 5 driver's or passenger's place of employment and the driver's or passenger's home. 6 (5) "Transportation vendor" means an entity, including a transportation 7 network company, that contracts with a managed care organization to provide 8 nonmedical transportation services. 9 B. The secretary of the department shall promulgate rules in accordance with 10 the Administrative Procedure Act regarding the manner in which nonmedical 11 transportation services may be arranged and provided. At minimum, the rules shall 12 provide for all of the following: 13 (1) A requirement that each managed care organization create a process to 14 verify that a passenger is eligible to receive nonmedical transportation services. 15 (2) A requirement that each managed care organization create a process to 16 ensure that nonmedical transportation services are provided only to and from covered 17 healthcare services. 18 (3) A requirement that each transportation vendor, before permitting a motor 19 vehicle operator to provide nonmedical transportation services, confirm all of the 20 following: 21 (a) That the operator is at least eighteen years of age. 22 (b) That the operator maintains a valid driver's license issued by this state, 23 another state of the United States, or the District of Columbia. 24 (c) That the operator possesses proof of registration and automobile financial 25 responsibility for each motor vehicle to be used to provide nonmedical transportation 26 services. 27 (4) A requirement that each transportation vendor, before permitting a motor 28 vehicle operator to provide nonmedical transportation services, conduct, or cause to Page 3 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 1 be conducted, a local, state, and national criminal background check for the operator 2 that includes the use of all of the following: 3 (a) A commercial multistate and multijurisdiction criminal records locator 4 or other similar commercial nationwide database. 5 (b) The national sex offender public website maintained by the United States 6 Department of Justice or a successor agency. 7 (5) A requirement that each transportation vendor confirm that any vehicle 8 to be used to provide nonmedical transportation services meets the applicable 9 requirements of Chapter 7 of Title 32 of the Louisiana Revised Statutes of 1950 and 10 has at least four doors. 11 (6) A requirement that each transportation vendor obtain and review the 12 operator's driving record. 13 C. The rules of the department regarding nonmedical transportation services 14 shall prohibit a motor vehicle operator from providing such services if the operator 15 meets any of the following conditions: 16 (1) He has been convicted in the three-year period preceding the issue date 17 of the driving record obtained pursuant to Paragraph (B)(6) of this Section of any of 18 the following: 19 (a) More than three offenses classified by the Department of Public Safety 20 and Corrections as moving violations. 21 (b) One or more of the following offenses: 22 (i) Resisting an officer under R.S. 14.108 or flight from an officer under R.S. 23 14:108.1. 24 (ii) Reckless operation of a vehicle under R.S. 14:99. 25 (iii) Driving without a valid driver's license under R.S. 32:52 or 402(B). 26 (iv) Driving with a suspended driver's license under R.S. 32:415. 27 (2) He has been convicted in the preceding seven-year period of any of the 28 following: 29 (a) Operating a vehicle while intoxicated under R.S. 14:98 et seq. Page 4 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 1 (b) Use of a motor vehicle to commit a felony. 2 (c) A felony crime involving property damage. 3 (d) Fraud. 4 (e) Theft. 5 (f) A crime of violence, including any assault. 6 (g) An act of terrorism. 7 (3) He is found to be registered in the national sex offender public website 8 maintained by the United States Department of Justice or a successor agency. 9 D. The department shall not require a motor vehicle operator to enroll as a 10 Medicaid provider in order to provide nonmedical transportation services or a 11 managed care organization to credential a motor vehicle operator to provide 12 nonmedical transportation services. 13 E. Notwithstanding any other law to the contrary, a motor vehicle operator 14 who is part of a transportation network company's network and who satisfies the 15 requirements provided in this Section and in the rules of the department is qualified 16 to provide nonmedical transportation services. 17 * * * 18 §460.51. Definitions 19 As used in this Part, the following terms have the meaning ascribed in this 20 Section unless the context clearly indicates otherwise: 21 * * * 22 (15) "Managed transportation organization" means any of the following: 23 (a) A regional transit entity as defined in R.S. 48:1501. 24 (b) An entity that contracts with the department to provide or arrange for the 25 provision of nonemergency transportation services under the medical transportation 26 program. 27 (c) A local private transportation provider approved by the department to 28 provide Medicaid nonemergency medical transportation services. Page 5 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 1 (d) Any other entity determined by the secretary to meet the requirements 2 of managed transportation organizations provided in R.S. 46:460.101. 3 (16) "Medical transportation program" means the program that provides 4 nonemergency transportation services to and from covered healthcare services, based 5 on medical necessity, to Medicaid enrollees who have no other means of 6 transportation. 7 (17) "Nonmedical transportation service" has the meaning ascribed in R.S. 8 46:450.2.1. 9 (18) "Transportation network company" has the meaning ascribed in R.S. 10 46:450.2.1. 11 (19) "Transportation vendor" has the meaning ascribed in R.S. 46:450.2.1. 12 * * * 13 SUBPART E. TRANSPORTATION PROGRAM 14 §460.101. Medical transportation; managed transportation organizations and 15 providers 16 A. The department shall provide medical transportation program services on 17 a regional basis through a managed transportation delivery model using managed 18 transportation organizations and providers that, at minimum, meet all of the 19 following conditions and qualifications: 20 (1) Operate under a capitated rate system. 21 (2) Assume financial responsibility under a full-risk model. 22 (3) Operate a call center. 23 (4) Use fixed routes when available and appropriate. 24 (5) Agree to provide data to the department if the department determines that 25 the data is required to receive federal matching funds. 26 B. The department shall procure managed transportation organizations under 27 the medical transportation program through a competitive bidding process for each 28 managed transportation region as determined by the department. Page 6 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 1 C. A managed transportation organization that participates in the medical 2 transportation program shall attempt to contract with medical transportation 3 providers that, at minimum, meet all of the following conditions and qualifications: 4 (1) Are considered significant traditional providers as defined in rule by the 5 secretary. 6 (2) Except as provided by Subsections G and H of this Section, meet the 7 minimum quality and efficiency measures required by Subsection F of this Section 8 and other requirements that may be imposed by the managed transportation 9 organization. 10 (3) Agree to accept the prevailing contract rate of the managed transportation 11 organization. 12 D. To the extent allowed by federal law, a managed transportation 13 organization may own, operate, and maintain a fleet of vehicles or contract with an 14 entity that owns, operates, and maintains a fleet of vehicles. The department shall 15 seek appropriate federal waivers or other authorizations as necessary to implement 16 the provisions of this Subsection. 17 E. The department shall consider the ownership, operation, and maintenance 18 of a fleet of vehicles by a managed transportation organization to be a related-party 19 transaction for purposes of applying experience rebates, administrative costs, and 20 other administrative controls determined by the department. 21 F. Except as provided by Subsections G and H of this Section, the 22 department shall require that managed transportation organizations and providers 23 participating in the medical transportation program meet minimum quality and 24 efficiency measures as determined by the department. 25 G. A managed transportation organization may subcontract with a 26 transportation network company to provide services pursuant to this Section. A rule 27 or other requirement adopted by the secretary pursuant to this Section shall not apply 28 to the subcontracted transportation network company or a motor vehicle operator 29 who is part of the company's network. Neither the department or the managed Page 7 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 1 transportation organization shall require a motor vehicle operator who is part of the 2 subcontracted transportation network company's network to enroll as a Medicaid 3 provider in order to provide services in accordance with this Section. 4 H. Notwithstanding any other provision of law to the contrary, a motor 5 vehicle operator who is part of the network of a transportation network company that 6 subcontracts with a managed transportation organization as authorized in Subsection 7 G of this Section is qualified to provide services in accordance with this Section if 8 the following conditions are met: 9 (1) The transportation network company has satisfied the requirements for 10 transportation vendors with respect to motor vehicle operators provided in R.S. 11 46:450.2.1(B)(3) through (6). 12 (2) The motor vehicle operator does not meet any disqualifying condition 13 provided in R.S. 46:450.2.1(C). 14 §460.102. Nonmedical transportation services; requirements of Medicaid managed 15 care organizations 16 A. Each managed care organization that contracts with the department to 17 provide healthcare services to recipients shall arrange for the provision of 18 nonmedical transportation services that conform with the requirements of R.S. 19 46:450.2.1. A managed care organization may contract with a transportation vendor 20 or other third party to arrange for the provision of nonmedical transportation 21 services. If a managed care organization contracts with a third party that is not a 22 transportation vendor to arrange for the provision of nonmedical transportation 23 services, the third party shall contract with a transportation vendor to deliver the 24 nonmedical transportation services. 25 B. A managed care organization that contracts with a transportation vendor 26 or other third party to arrange for the provision of nonmedical transportation services 27 shall ensure the effective sharing and integration of service coordination, service 28 authorization, and utilization management data between the managed care 29 organization and the transportation vendor or third party. Page 8 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 1 C. A managed care organization shall not require either of the following: 2 (1) A motor vehicle operator to enroll as a Medicaid provider in order to 3 provide nonmedical transportation services. 4 (2) The credentialing of a motor vehicle operator to provide nonmedical 5 transportation services. 6 §460.103. Rulemaking 7 The department shall promulgate all rules in accordance with the 8 Administrative Procedure Act as are necessary to implement the provisions of this 9 Subpart. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 129 Original 2019 Regular Session Carmody Abstract: Authorizes certain providers to furnish nonemergency and nonmedical transportation services to La. Medicaid program enrollees. Medicaid Nonmedical Transportation Services Proposed law provides the following definitions for purposes of proposed law relative to Medicaid nonmedical transportation services: (1)"Nonmedical transportation service" means transportation of a Medicaid recipient enrolled in a managed care plan, other than a recipient whose medical or physical condition contraindicates the use of transportation services, to and from a medically necessary, nonemergency covered healthcare service that is scheduled not more than 48 hours before the transportation occurs, including transportation related to all of the following: (a)Discharge from a healthcare facility. (b)Receipt of urgent care. (c)Obtaining pharmacy services and prescription drugs. (d)Obtaining any time-sensitive covered healthcare service. (e)Any transportation to or from a medically necessary, nonemergency covered healthcare service deemed appropriate to be provided by a transportation vendor, as determined by state Medicaid policy. (2)"Transportation network company" means a corporation, partnership, sole proprietorship, or other entity that, for compensation, enables a passenger to prearrange with a driver, exclusively through the entity's digital network, a digitally Page 9 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 prearranged ride; however, the term does not include an entity that provides any of the following: (a)Street-hail taxicab services. (b)Limousine or other car services arranged by a method other than through a digital network. (c)Shared expense carpool or vanpool arrangements. (d)A type of ride service for which either of the following conditions apply: (i)The fee received by the driver does not exceed the driver's costs of providing the ride. (ii)The driver receives a fee that exceeds the driver's costs associated with providing the ride but makes not more than three round-trips per day between the driver's or passenger's place of employment and the driver's or passenger's home. (5)"Transportation vendor" means an entity, including a transportation network company, that contracts with a Medicaid managed care organization to provide nonmedical transportation services. Proposed law requires the La. Department of Health (LDH) to promulgate administrative rules regarding the manner in which nonmedical transportation services may be arranged and provided. Stipulates that, at minimum, the rules shall provide for all of the following: (1)A requirement that each of the state's Medicaid managed care organizations create a process to verify that a passenger is eligible to receive nonmedical transportation services. (2)A requirement that each of the state's Medicaid managed care organizations create a process to ensure that nonmedical transportation services are provided only to and from covered healthcare services. (3)A requirement that each transportation vendor, before permitting a motor vehicle operator to provide nonmedical transportation services, confirm all of the following: (a)That the operator is at least 18 years of age. (b)That the operator maintains a valid driver's license issued by this state, another U.S. state, or the District of Columbia. (c)That the operator possesses proof of registration and automobile financial responsibility for each motor vehicle to be used to provide nonmedical transportation services. (4)A requirement that each transportation vendor, before permitting a motor vehicle operator to provide nonmedical transportation services, conduct, or cause to be conducted, a local, state, and national criminal background check for the operator and a determination of whether the operator is registered in the national sex offender public website. (5)A requirement that each transportation vendor confirm that any vehicle to be used to provide nonmedical transportation services meets the applicable requirements of present law relative to vehicle registration and has at least four doors. Page 10 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 (6)A requirement that each transportation vendor obtain and review the operator's driving record. Proposed law prohibits a motor vehicle operator from providing nonmedical transportation services if the operator meets any of the following conditions: (1)He has been convicted in the preceding three-year period of any of the following: (a)More than three offenses classified by the Dept. of Public Safety and Corrections as moving violations. (b)One or more of the following offenses: Resisting an officer under R.S. 14:108 or flight from an officer under R.S. 14:108.1, reckless operation of a vehicle, driving without a valid driver's license, or driving with a suspended driver's license. (2)He has been convicted in the preceding seven-year period of any of the following: (a)Operating a vehicle while intoxicated. (b)Use of a motor vehicle to commit a felony. (c)A felony crime involving property damage. (d)Fraud. (e)Theft. (f)A crime of violence, including any assault. (g)An act of terrorism. (3)He is found to be registered in the national sex offender public website. Proposed law prohibits LDH from requiring a motor vehicle operator to enroll as a Medicaid provider in order to provide nonmedical transportation services. Also prohibits LDH from requiring Medicaid managed care organizations to credential a motor vehicle operator to provide nonmedical transportation services. Proposed law provides that notwithstanding any provision of present law to the contrary, a motor vehicle operator who is part of a transportation network company's network and who satisfies the requirements provided in proposed law and in LDH administrative rules is qualified to provide nonmedical transportation services. Medicaid Managed Care Transportation Program Present law provides relative to the operation of major aspects of the state Medicaid program through a system known as managed care in which health benefits and services are delivered through contracted arrangements between the state and managed care organizations that accept a fixed per-member per-month payment for those services. Proposed law retains present law and adds thereto provisions creating a Medicaid managed care transportation program. Proposed law adds the following definitions to present law relative to Medicaid managed care: (1)"Managed transportation organization" means any of the following: Page 11 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 (a)A regional transit entity as defined in present law. (b)An entity that contracts with LDH to provide or arrange for the provision of nonemergency transportation services under the medical transportation program. (c)A local private transportation provider approved by LDH to provide Medicaid nonemergency medical transportation services. (d)Any other entity determined by LDH to meet the requirements of managed transportation organizations provided in proposed law. (2)"Medical transportation program" means the program established in proposed law that provides nonemergency transportation services to and from covered healthcare services, based on medical necessity, to Medicaid enrollees who have no other means of transportation. (3)"Nonmedical transportation service" means transportation of a Medicaid recipient enrolled in a managed care plan, other than a recipient whose medical or physical condition contraindicates the use of transportation services, to and from a medically necessary, nonemergency covered healthcare service that is scheduled not more than 48 hours before the transportation occurs, including transportation related to all of the following: (a)Discharge from a healthcare facility. (b)Receipt of urgent care. (c)Obtaining pharmacy services and prescription drugs. (d)Obtaining any time-sensitive covered healthcare service. (e)Any transportation to or from a medically necessary, nonemergency covered healthcare service deemed appropriate to be provided by a transportation vendor, as determined by state Medicaid policy. (4)"Transportation network company" means a corporation, partnership, sole proprietorship, or other entity that, for compensation, enables a passenger to prearrange with a driver, exclusively through the entity's digital network, a digitally prearranged ride; however, the term does not include an entity that provides any of the following: (a)Street-hail taxicab services. (b)Limousine or other car services arranged by a method other than through a digital network. (c)Shared expense carpool or vanpool arrangements. (d)A type of ride service for which either of the following conditions apply: (i)The fee received by the driver does not exceed the driver's costs of providing the ride. (ii)The driver receives a fee that exceeds the driver's costs associated with providing the ride but makes not more than three round-trips per day between the driver's or passenger's place of employment and the driver's or passenger's home. Page 12 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 (5)"Transportation vendor" means an entity, including a transportation network company, that contracts with a Medicaid managed care organization to provide nonmedical transportation services. Proposed law requires LDH to provide medical transportation services on a regional basis through a managed transportation delivery model using managed transportation organizations and providers that, at minimum, meet all of the following conditions and qualifications: (1)Operate under a capitated rate system. (2)Assume financial responsibility under a full-risk model. (3)Operate a call center. (4)Use fixed routes when available and appropriate. (5)Agree to provide data to LDH if the department determines that the data is required to receive federal matching funds. Proposed law requires LDH to procure managed transportation organizations under the medical transportation program through a competitive bidding process for each managed transportation region. Proposed law requires managed transportation organizations that participate in the medical transportation program to attempt to contract with providers that, at minimum, meet all of the following conditions and qualifications: (1)Are considered significant traditional providers as defined in rule by LDH. (2)Except as otherwise provided in proposed law, meet minimum quality and efficiency measures and other requirements that may be imposed by the managed transportation organization. (3)Agree to accept the prevailing contract rate of the managed transportation organization. Proposed law provides that, to the extent allowed by federal law, a managed transportation organization may own, operate, and maintain a fleet of vehicles or contract with an entity that owns, operates, and maintains a fleet of vehicles. Provides relative to administrative controls to be exercised by LDH relative to such fleets of vehicles. Proposed law authorizes managed transportation organizations to subcontract with a transportation network company to provide medical transportation services pursuant to proposed law. Provides that a rule or other requirement adopted by LDH pursuant to proposed law shall not apply to the subcontracted transportation network company or a motor vehicle operator who is part of the company's network. Stipulates that neither LDH or the managed transportation organization shall require a motor vehicle operator who is part of the subcontracted transportation network company's network to enroll as a Medicaid provider in order to provide services in accordance with proposed law. Proposed law provides that notwithstanding any provision of present law to the contrary, a motor vehicle operator who is part of the network of a transportation network company that subcontracts with a managed transportation organization, as authorized in proposed law, is qualified to provide services in accordance with proposed law if the following conditions are met: Page 13 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-374 ORIGINAL HB NO. 129 (1)The transportation network company has satisfied the requirements for transportation vendors with respect to motor vehicle operators provided in proposed law relative to nonmedical transportation services. (2)The motor vehicle operator does not meet any disqualifying condition provided in proposed law relative to nonmedical transportation services. Proposed law requires Medicaid managed care organizations to arrange for the provision of nonmedical transportation services that conform with the requirements of proposed law. Authorizes managed care organizations to contract with transportation vendors or other third parties to arrange for the provision of nonmedical transportation services. Provides that if a managed care organization contracts with a third party that is not a transportation vendor to arrange for the provision of nonmedical transportation services, the third party shall contract with a transportation vendor to deliver the nonmedical transportation services. Proposed law requires Medicaid managed care organizations that contract with transportation vendors or other third parties to arrange for the provision of nonmedical transportation services to ensure the effective sharing and integration of service coordination, service authorization, and utilization management data between the managed care organization and the transportation vendor or third party. Proposed law provides that a managed care organization shall not require either of the following: (1)A motor vehicle operator to enroll as a Medicaid provider in order to provide nonmedical transportation services. (2)The credentialing of a motor vehicle operator to provide nonmedical transportation services. (Adds R.S. 46:450.2.1, 460.51(15)-(19), and 460.101-460.103) Page 14 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions.