House File 2460 H-8228 Amend House File 2460 as follows: 1 1. Page 85, after line 4 by inserting: 2 < REPORTING OF EXISTING DATA REQUIREMENTS, MINUTES, AND 3 RECOMMENDATIONS > 4 2. Page 92, after line 18 by inserting: 5 < DIVISION ___ 6 MEDICAID MANAGED CARE —— ADDITIONAL OVERSIGHT 7 REQUIREMENTS 8 Sec. ___. LEGISLATIVE FINDINGS —— GOALS AND INTENT. 9 1. The general assembly finds all of the following: 10 a. In the majority of states, Medicaid managed care 11 has been introduced on an incremental basis, beginning 12 with the enrollment of low-income children and parents 13 and proceeding in stages to include nonelderly persons 14 with disabilities and older individuals. Iowa, unlike 15 the majority of states, is implementing Medicaid 16 managed care simultaneously across a broad and diverse 17 population that includes individuals with complex 18 health care and long-term services and supports needs, 19 making these individuals especially vulnerable to 20 receiving inappropriate, inadequate, or substandard 21 services and supports. 22 b. The success or failure of Medicaid managed 23 care in Iowa depends on proper strategic planning and 24 strong oversight, and the incorporation of the core 25 values, principles, and goals of the strategic plan 26 into Medicaid managed care contractual obligations. 27 While Medicaid managed care techniques may create 28 pathways and offer opportunities toward quality 29 improvement and predictability in costs, if cost 30 savings and administrative efficiencies are the 31 primary goals, Medicaid managed care may instead erect 32 new barriers and limit the care and support options 33 available, especially to high-need, vulnerable Medicaid 34 recipients. A well-designed strategic plan and 35 -1- HF2460.3509 (3) 86 pf/rn 1/ 48 #1. #2.
effective oversight ensure that cost savings, improved 1 health outcomes, and efficiencies are not achieved 2 at the expense of diminished program integrity, a 3 reduction in the quality or availability of services, 4 or adverse consequences to the health and well-being of 5 Medicaid recipients. 6 c. Strategic planning should include all of the 7 following: 8 (1) Guidance in establishing and maintaining a 9 robust and appropriate workforce and a provider network 10 capable of addressing all of the diverse, distinct, and 11 wide-ranging treatment and support needs of Medicaid 12 recipients. 13 (2) Developing a sound methodology for establishing 14 and adjusting capitation rates to account for all 15 essential costs involved in treating and supporting the 16 entire spectrum of needs across recipient populations. 17 (3) Addressing the sufficiency of information and 18 data resources to enable review of factors such as 19 utilization, service trends, system performance, and 20 outcomes. 21 (4) Building effective working relationships and 22 developing strategies to support community-level 23 integration that provides cross-system coordination 24 and synchronization among the various service sectors, 25 providers, agencies, and organizations to further 26 holistic well-being and population health goals. 27 d. While the contracts entered into between the 28 state and managed care organizations function as a 29 mechanism for enforcing requirements established by the 30 federal and state governments and allow states to shift 31 the financial risk associated with caring for Medicaid 32 recipients to these contractors, the state ultimately 33 retains responsibility for the Medicaid program and 34 the oversight of the performance of the program’s 35 -2- HF2460.3509 (3) 86 pf/rn 2/ 48
contractors. Administration of the Medicaid program 1 benefits by managed care organizations should not be 2 viewed by state policymakers and state agencies as a 3 means of divesting themselves of their constitutional 4 and statutory responsibilities to ensure that 5 recipients of publicly funded services and supports, as 6 well as taxpayers in general, are effectively served. 7 e. Overseeing the performance of Medicaid managed 8 care contractors requires a different set of skills 9 than those required for administering a fee-for-service 10 program. In the absence of the in-house capacity of 11 the department of human services to perform tasks 12 specific to Medicaid managed care oversight, the state 13 essentially cedes its responsibilities to private 14 contractors and relinquishes its accountability to the 15 public. In order to meet these responsibilities, state 16 policymakers must ensure that the state, including the 17 department of human services as the state Medicaid 18 agency, has the authority and resources, including 19 the adequate number of qualified personnel and the 20 necessary tools, to carry out these responsibilities, 21 provide effective administration, and ensure 22 accountability and compliance. 23 f. State policymakers must also ensure that 24 Medicaid managed care contracts contain, at a minimum, 25 clear, unambiguous performance standards, operating 26 guidelines, data collection, maintenance, retention, 27 and reporting requirements, and outcomes expectations 28 so that contractors and subcontractors are held 29 accountable to clear contract specifications. 30 g. As with all system and program redesign efforts 31 undertaken in the state to date, the assumption 32 of the administration of Medicaid program benefits 33 by managed care organizations must involve ongoing 34 stakeholder input and earn the trust and support of 35 -3- HF2460.3509 (3) 86 pf/rn 3/ 48
these stakeholders. Medicaid recipients, providers, 1 advocates, and other stakeholders have intimate 2 knowledge of the people and processes involved in 3 ensuring the health and safety of Medicaid recipients, 4 and are able to offer valuable insight into the 5 barriers likely to be encountered as well as propose 6 solutions for overcoming these obstacles. Local 7 communities and providers of services and supports 8 have firsthand experience working with the Medicaid 9 recipients they serve and are able to identify factors 10 that must be considered to make a system successful. 11 Agencies and organizations that have specific expertise 12 and experience with the services and supports needs of 13 Medicaid recipients and their families are uniquely 14 placed to provide needed assistance in developing 15 the measures for and in evaluating the quality of the 16 program. 17 2. It is the intent of the general assembly that 18 the Medicaid program be implemented and administered, 19 including through Medicaid managed care policies 20 and contract provisions, in a manner that safeguards 21 the interests of Medicaid recipients, encourages the 22 participation of Medicaid providers, and protects 23 the interests of all taxpayers, while attaining the 24 goals of Medicaid modernization to improve quality and 25 access, promote accountability for outcomes, and create 26 a more predictable and sustainable Medicaid budget. 27 HEALTH POLICY OVERSIGHT COMMITTEE 28 Sec. ___. Section 2.45, subsection 6, Code 2016, is 29 amended to read as follows: 30 6. The legislative health policy oversight 31 committee, which shall be composed of ten members of 32 the general assembly, consisting of five members from 33 each house, to be appointed by the legislative council. 34 The legislative health policy oversight committee 35 -4- HF2460.3509 (3) 86 pf/rn 4/ 48
shall receive updates and review data, public input and 1 concerns, and make recommendations for improvements to 2 and changes in law or rule regarding Medicaid managed 3 care meet at least four times annually to evaluate 4 state health policy and provide continuing oversight 5 for publicly funded programs, including but not limited 6 to all facets of the Medicaid and hawk-i programs 7 to, at a minimum, ensure effective and efficient 8 administration of these programs, address stakeholder 9 concerns, monitor program costs and expenditures, and 10 make recommendations relative to the programs . 11 Sec. ___. HEALTH POLICY OVERSIGHT COMMITTEE 12 —— SUBJECT MATTER REVIEW FOR 2016 LEGISLATIVE 13 INTERIM. During the 2016 legislative interim, the 14 health policy oversight committee created in section 15 2.45 shall, as part of the committee’s evaluation 16 of state health policy and review of all facets of 17 the Medicaid and hawk-i programs, review and make 18 recommendations regarding, at a minimum, all of the 19 following: 20 1. The resources and duties of the office of 21 long-term care ombudsman relating to the provision of 22 assistance to and advocacy for Medicaid recipients 23 to determine the designation of duties and level of 24 resources necessary to appropriately address the needs 25 of such individuals. The committee shall consider the 26 health consumer ombudsman alliance report submitted to 27 the general assembly in December 2015, as well as input 28 from the office of long-term care ombudsman and other 29 entities in making recommendations. 30 2. The health benefits and health benefit 31 utilization management criteria for the Medicaid 32 and hawk-i programs to determine the sufficiency 33 and appropriateness of the benefits offered and the 34 utilization of these benefits. 35 -5- HF2460.3509 (3) 86 pf/rn 5/ 48
3. Prior authorization requirements relative 1 to benefits provided under the Medicaid and hawk-i 2 programs, including but not limited to pharmacy 3 benefits. 4 4. Consistency and uniformity in processes, 5 procedures, forms, and other activities across all 6 Medicaid and hawk-i program participating insurers and 7 managed care organizations, including but not limited 8 to cost and quality reporting, credentialing, billing, 9 prior authorization, and critical incident reporting. 10 5. Provider network adequacy including the use of 11 out-of-network and out-of-state providers. 12 6. The role and interplay of other advisory and 13 oversight entities, including but not limited to the 14 medical assistance advisory council and the hawk-i 15 board. 16 REVIEW OF PROGRAM INTEGRITY DUTIES 17 Sec. ___. REVIEW OF PROGRAM INTEGRITY DUTIES —— 18 WORKGROUP —— REPORT. 19 1. The director of human services shall convene 20 a workgroup comprised of members including the 21 commissioner of insurance, the auditor of state, the 22 Medicaid director and bureau chiefs of the managed care 23 organization oversight and supports bureau, the Iowa 24 Medicaid enterprise support bureau, and the medical 25 and long-term services and supports bureau, and a 26 representative of the program integrity unit, or their 27 designees; and representatives of other appropriate 28 state agencies or other entities including but not 29 limited to the office of the attorney general, the 30 office of long-term care ombudsman, and the Medicaid 31 fraud control unit of the investigations division 32 of the department of inspections and appeals. The 33 workgroup shall do all of the following: 34 a. Review the duties of each entity with 35 -6- HF2460.3509 (3) 86 pf/rn 6/ 48
responsibilities relative to Medicaid program integrity 1 and managed care organizations; review state and 2 federal laws, regulations, requirements, guidance, and 3 policies relating to Medicaid program integrity and 4 managed care organizations; and review the laws of 5 other states relating to Medicaid program integrity 6 and managed care organizations. The workgroup shall 7 determine areas of duplication, fragmentation, 8 and gaps; shall identify possible integration, 9 collaboration and coordination of duties; and shall 10 determine whether existing general state Medicaid 11 program and fee-for-service policies, laws, and 12 rules are sufficient, or if changes or more specific 13 policies, laws, and rules are required to provide 14 for comprehensive and effective administration and 15 oversight of the Medicaid program including under the 16 fee-for-service and managed care methodologies. 17 b. Review historical uses of the Medicaid 18 fraud fund created in section 249A.50 and make 19 recommendations for future uses of the moneys in the 20 fund and any changes in law necessary to adequately 21 address program integrity. 22 c. Review medical loss ratio provisions relative 23 to Medicaid managed care contracts and make 24 recommendations regarding, at a minimum, requirements 25 for the necessary collection, maintenance, retention, 26 reporting, and sharing of data and information by 27 Medicaid managed care organizations for effective 28 determination of compliance, and to identify the 29 costs and activities that should be included in the 30 calculation of administrative costs, medical costs or 31 benefit expenses, health quality improvement costs, 32 and other costs and activities incidental to the 33 determination of a medical loss ratio. 34 d. Review the capacity of state agencies, including 35 -7- HF2460.3509 (3) 86 pf/rn 7/ 48
the need for specialized training and expertise, to 1 address Medicaid and managed care organization program 2 integrity and provide recommendations for the provision 3 of necessary resources and infrastructure, including 4 annual budget projections. 5 e. Review the incentives and penalties applicable 6 to violations of program integrity requirements to 7 determine their adequacy in combating waste, fraud, 8 abuse, and other violations that divert limited 9 resources that would otherwise be expended to safeguard 10 the health and welfare of Medicaid recipients, and make 11 recommendations for necessary adjustments to improve 12 compliance. 13 f. Make recommendations regarding the quarterly and 14 annual auditing of financial reports required to be 15 performed for each Medicaid managed care organization 16 to ensure that the activities audited provide 17 sufficient information to the division of insurance 18 of the department of commerce and the department 19 of human services to ensure program integrity. The 20 recommendations shall also address the need for 21 additional audits or other reviews of managed care 22 organizations. 23 g. Review and make recommendations to prohibit 24 cost-shifting between state and local and public and 25 private funding sources for services and supports 26 provided to Medicaid recipients whether directly or 27 indirectly through the Medicaid program. 28 2. The department of human services shall submit 29 a report of the workgroup to the governor, the health 30 policy oversight committee created in section 2.45, 31 and the general assembly initially, on or before 32 November 15, 2016, and on or before November 15, 33 on an annual basis thereafter, to provide findings 34 and recommendations for a coordinated approach 35 -8- HF2460.3509 (3) 86 pf/rn 8/ 48
to comprehensive and effective administration and 1 oversight of the Medicaid program including under the 2 fee-for-service and managed care methodologies. 3 MEDICAID REINVESTMENT FUND 4 Sec. ___. NEW SECTION . 249A.4C Medicaid 5 reinvestment fund. 6 1. A Medicaid reinvestment fund is created in the 7 state treasury under the authority of the department. 8 The department of human services shall collect an 9 initial contribution of five million dollars from each 10 of the managed care organizations contracting with the 11 state during the fiscal year beginning July 1, 2015, 12 for an aggregate amount of fifteen million dollars, 13 and shall deposit such amount in the fund to be used 14 for Medicaid ombudsman activities through the office 15 of long-term care ombudsman. Additionally, moneys 16 from savings realized from the movement of Medicaid 17 recipients from institutional settings to home and 18 community-based services, the portion of the capitation 19 rate withheld from and not returned to Medicaid managed 20 care organizations at the end of each fiscal year, any 21 recouped excess of capitation rates paid to Medicaid 22 managed care organizations, any overpayments recovered 23 under Medicaid managed care contracts, and any other 24 savings realized from Medicaid managed care or from 25 Medicaid program cost-containment efforts, with the 26 exception of the total amount attributable to the 27 projected savings from Medicaid managed care based on 28 the initial capitation rates established for the fiscal 29 year beginning July 1, 2015, shall be credited to the 30 Medicaid reinvestment fund. 31 2. Notwithstanding section 8.33, moneys credited 32 to the fund from any other account or fund shall 33 not revert to the other account or fund. Moneys 34 in the fund shall only be used as provided in 35 -9- HF2460.3509 (3) 86 pf/rn 9/ 48
appropriations from the fund for the Medicaid program 1 and for health system transformation and integration, 2 including but not limited to providing the necessary 3 infrastructure and resources to protect the interests 4 of Medicaid recipients, maintaining adequate provider 5 participation, and ensuring program integrity. Such 6 uses may include but are not limited to: 7 a. Ensuring appropriate reimbursement of Medicaid 8 providers to maintain the type and number of 9 appropriately trained providers necessary to address 10 the needs of Medicaid recipients. 11 b. Providing home and community-based services 12 as necessary to rebalance the long-term services and 13 supports infrastructure and to reduce Medicaid home and 14 community-based services waiver waiting lists. 15 c. Ensuring that a fully functioning independent 16 Medicaid ombudsman program through the office of 17 long-term care ombudsman is available to provide 18 advocacy services and assistance to eligible and 19 potentially eligible Medicaid recipients. 20 d. Ensuring adequate and appropriate capacity of 21 the department of human services as the single state 22 agency designated to administer and supervise the 23 administration of the Medicaid program, to ensure 24 compliance with state and federal law and program 25 integrity requirements. 26 e. Addressing workforce issues to ensure a 27 competent, diverse, and sustainable health care 28 workforce and to improve access to health care in 29 underserved areas and among underserved populations, 30 recognizing long-term services and supports as an 31 essential component of the health care system. 32 f. Supporting innovation, longer-term community 33 investments, and the activities of local public health 34 agencies, aging and disability resource centers and 35 -10- HF2460.3509 (3) 86 pf/rn 10/ 48
service agencies, mental health and disability services 1 regions, social services, and child welfare entities 2 and other providers of and advocates for services and 3 supports to encourage health system transformation 4 and integration through a broad range of prevention 5 strategies and population-based approaches to meet the 6 holistic needs of the population as a whole. 7 3. The department shall establish a mechanism to 8 measure and certify the amount of savings resulting 9 from Medicaid managed care and Medicaid program 10 cost-containment activities and shall ensure that such 11 realized savings are credited to the fund and used as 12 provided in appropriations from the fund. 13 MEDICAID OMBUDSMAN 14 Sec. ___. Section 231.44, Code 2016, is amended to 15 read as follows: 16 231.44 Utilization of resources —— assistance and 17 advocacy related to long-term services and supports 18 under the Medicaid program. 19 1. The office of long-term care ombudsman may 20 shall utilize its available resources to provide 21 assistance and advocacy services to eligible recipients 22 of long-term services and supports , or individuals 23 seeking long-term services and supports, and the 24 families or legal representatives of such eligible 25 recipients, of long-term services and supports provided 26 through individuals under the Medicaid program. Such 27 assistance and advocacy shall include but is not 28 limited to all of the following: 29 a. Assisting recipients such individuals in 30 understanding the services, coverage, and access 31 provisions and their rights under Medicaid managed 32 care. 33 b. Developing procedures for the tracking and 34 reporting of the outcomes of individual requests for 35 -11- HF2460.3509 (3) 86 pf/rn 11/ 48
assistance, the obtaining of necessary services and 1 supports, and other aspects of the services provided to 2 eligible recipients such individuals . 3 c. Providing advice and assistance relating to the 4 preparation and filing of complaints, grievances, and 5 appeals of complaints or grievances, including through 6 processes available under managed care plans and the 7 state appeals process, relating to long-term services 8 and supports under the Medicaid program. 9 d. Accessing the results of a review of a level 10 of care assessment or reassessment by a managed care 11 organization in which the managed care organization 12 recommends denial or limited authorization of a 13 service, including the type or level of service, the 14 reduction, suspension, or termination of a previously 15 authorized service, or a change in level of care, upon 16 the request of an affected individual. 17 e. Receiving notices of disenrollment or notices 18 that would result in a change in level of care for 19 affected individuals, including involuntary and 20 voluntary discharges or transfers, from the department 21 of human services or a managed care organization. 22 2. A representative of the office of long-term care 23 ombudsman providing assistance and advocacy services 24 authorized under this section for an individual, 25 shall be provided access to the individual, and shall 26 be provided access to the individual’s medical and 27 social records as authorized by the individual or the 28 individual’s legal representative, as necessary to 29 carry out the duties specified in this section . 30 3. A representative of the office of long-term care 31 ombudsman providing assistance and advocacy services 32 authorized under this section for an individual, shall 33 be provided access to administrative records related to 34 the provision of the long-term services and supports to 35 -12- HF2460.3509 (3) 86 pf/rn 12/ 48
the individual, as necessary to carry out the duties 1 specified in this section . 2 4. The office of long-term care ombudsman and 3 representatives of the office, when providing 4 assistance and advocacy services under this section, 5 shall be considered a health oversight agency as 6 defined in 45 C.F.R. §164.501 for the purposes of 7 health oversight activities as described in 45 C.F.R. 8 §164.512(d) including access to the health records 9 and other appropriate information of an individual, 10 including from the department of human services or 11 the applicable Medicaid managed care organization, 12 as necessary to fulfill the duties specified under 13 this section. The department of human services, 14 in collaboration with the office of long-term care 15 ombudsman, shall adopt rules to ensure compliance 16 by affected entities with this subsection and to 17 ensure recognition of the office of long-term care 18 ombudsman as a duly authorized and identified agent or 19 representative of the state. 20 5. The department of human services and Medicaid 21 managed care organizations shall inform eligible 22 and potentially eligible Medicaid recipients of the 23 advocacy services and assistance available through the 24 office of long-term care ombudsman and shall provide 25 contact and other information regarding the advocacy 26 services and assistance to eligible and potentially 27 eligible Medicaid recipients as directed by the office 28 of long-term care ombudsman. 29 6. When providing assistance and advocacy services 30 under this section, the office of long-term care 31 ombudsman shall act as an independent agency, and the 32 office of long-term care ombudsman and representatives 33 of the office shall be free of any undue influence that 34 restrains the ability of the office or the office’s 35 -13- HF2460.3509 (3) 86 pf/rn 13/ 48
representatives from providing such services and 1 assistance. 2 7. The office of long-term care ombudsman shall, in 3 addition to other duties prescribed and at a minimum, 4 do all of the following in the furtherance of the 5 provision of advocacy services and assistance under 6 this section: 7 a. Represent the interests of eligible and 8 potentially eligible Medicaid recipients before 9 governmental agencies. 10 b. Analyze, comment on, and monitor the development 11 and implementation of federal, state, and local laws, 12 regulations, and other governmental policies and 13 actions, and recommend any changes in such laws, 14 regulations, policies, and actions as determined 15 appropriate by the office of long-term care ombudsman. 16 c. To maintain transparency and accountability for 17 activities performed under this section, including 18 for the purposes of claiming federal financial 19 participation for activities that are performed to 20 assist with administration of the Medicaid program: 21 (1) Have complete and direct responsibility for the 22 administration, operation, funding, fiscal management, 23 and budget related to such activities, and directly 24 employ, oversee, and supervise all paid and volunteer 25 staff associated with these activities. 26 (2) Establish separation-of-duties requirements, 27 provide limited access to work space and work 28 product for only necessary staff, and limit access to 29 documents and information as necessary to maintain the 30 confidentiality of the protected health information of 31 individuals served under this section. 32 (3) Collect and submit, annually, to the governor, 33 the health policy oversight committee created in 34 section 2.45, and the general assembly, all of the 35 -14- HF2460.3509 (3) 86 pf/rn 14/ 48
following with regard to those seeking advocacy 1 services or assistance under this section: 2 (a) The number of contacts by contact type and 3 geographic location. 4 (b) The type of assistance requested including the 5 name of the managed care organization involved, if 6 applicable. 7 (c) The time frame between the time of the initial 8 contact and when an initial response was provided. 9 (d) The amount of time from the initial contact to 10 resolution of the problem or concern. 11 (e) The actions taken in response to the request 12 for advocacy or assistance. 13 (f) The outcomes of requests to address problems or 14 concerns. 15 4. 8. For the purposes of this section : 16 a. “Institutional setting” includes a long-term care 17 facility, an elder group home, or an assisted living 18 program. 19 b. “Long-term services and supports” means the broad 20 range of health, health-related, and personal care 21 assistance services and supports, provided in both 22 institutional settings and home and community-based 23 settings, necessary for older individuals and persons 24 with disabilities who experience limitations in their 25 capacity for self-care due to a physical, cognitive, or 26 mental disability or condition. 27 Sec. ___. NEW SECTION . 231.44A Willful 28 interference with duties related to long-term services 29 and supports —— penalty. 30 Willful interference with a representative of the 31 office of long-term care ombudsman in the performance 32 of official duties in accordance with section 231.44 33 is a violation of section 231.44, subject to a penalty 34 prescribed by rule. The office of long-term care 35 -15- HF2460.3509 (3) 86 pf/rn 15/ 48
ombudsman shall adopt rules specifying the amount of a 1 penalty imposed, consistent with the penalties imposed 2 under section 231.42, subsection 8, and specifying 3 procedures for notice and appeal of penalties imposed. 4 Any moneys collected pursuant to this section shall be 5 deposited in the Medicaid reinvestment fund created in 6 section 249A.4C. 7 MEDICAL ASSISTANCE ADVISORY COUNCIL 8 Sec. ___. Section 249A.4B, Code 2016, is amended to 9 read as follows: 10 249A.4B Medical assistance advisory council. 11 1. A medical assistance advisory council is 12 created to comply with 42 C.F.R. §431.12 based on 13 section 1902(a)(4) of the federal Social Security Act 14 and to advise the director about health and medical 15 care services under the medical assistance Medicaid 16 program , participate in Medicaid policy development 17 and program administration, and provide guidance on 18 key issues related to the Medicaid program, whether 19 administered under a fee-for-service, managed care, or 20 other methodology, including but not limited to access 21 to care, quality of care, and service delivery . 22 a. The council shall have the opportunity for 23 participation in policy development and program 24 administration, including furthering the participation 25 of recipients of the program, and without limiting this 26 general authority shall specifically do all of the 27 following: 28 (1) Formulate, review, evaluate, and recommend 29 policies, rules, agency initiatives, and legislation 30 pertaining to the Medicaid program. The council shall 31 have the opportunity to comment on proposed rules 32 prior to commencement of the rulemaking process and on 33 waivers and state plan amendment applications. 34 (2) Prior to the annual budget development process, 35 -16- HF2460.3509 (3) 86 pf/rn 16/ 48
engage in setting priorities, including consideration 1 of the scope and utilization management criteria 2 for benefits, beneficiary eligibility, provider and 3 services reimbursement rates, and other budgetary 4 issues. 5 (3) Provide oversight for and review of the 6 administration of the Medicaid program. 7 (4) Ensure that the membership of the council 8 effectively represents all relevant and concerned 9 viewpoints, particularly those of consumers, providers, 10 and the general public; create public understanding; 11 and ensure that the services provided under the 12 Medicaid program meet the needs of the people served. 13 b. The council shall meet no more than at least 14 quarterly , and prior to the next subsequent meeting 15 of the executive committee . The director of public 16 health The public member acting as a co-chairperson 17 of the executive committee and the professional or 18 business entity member acting as a co-chairperson of 19 the executive committee, shall serve as chairperson 20 co-chairpersons of the council. 21 2. The council shall include all of the following 22 voting members: 23 a. The president, or the president’s 24 representative, of each of the following professional 25 or business entities, or a member of each of the 26 following professional or business entities, selected 27 by the entity: 28 (1) The Iowa medical society. 29 (2) The Iowa osteopathic medical association. 30 (3) The Iowa academy of family physicians. 31 (4) The Iowa chapter of the American academy of 32 pediatrics. 33 (5) The Iowa physical therapy association. 34 (6) The Iowa dental association. 35 -17- HF2460.3509 (3) 86 pf/rn 17/ 48
(7) The Iowa nurses association. 1 (8) The Iowa pharmacy association. 2 (9) The Iowa podiatric medical society. 3 (10) The Iowa optometric association. 4 (11) The Iowa association of community providers. 5 (12) The Iowa psychological association. 6 (13) The Iowa psychiatric society. 7 (14) The Iowa chapter of the national association 8 of social workers. 9 (15) The coalition for family and children’s 10 services in Iowa. 11 (16) The Iowa hospital association. 12 (17) The Iowa association of rural health clinics. 13 (18) The Iowa primary care association. 14 (19) Free clinics of Iowa. 15 (20) The opticians’ association of Iowa, inc. 16 (21) The Iowa association of hearing health 17 professionals. 18 (22) The Iowa speech and hearing association. 19 (23) The Iowa health care association. 20 (24) The Iowa association of area agencies on 21 aging. 22 (25) AARP. 23 (26) The Iowa caregivers association. 24 (27) The Iowa coalition of home and community-based 25 services for seniors. 26 (28) The Iowa adult day services association. 27 (29) Leading age Iowa. 28 (30) The Iowa association for home care. 29 (31) The Iowa council of health care centers. 30 (32) The Iowa physician assistant society. 31 (33) The Iowa association of nurse practitioners. 32 (34) The Iowa nurse practitioner society. 33 (35) The Iowa occupational therapy association. 34 (36) The ARC of Iowa, formerly known as the 35 -18- HF2460.3509 (3) 86 pf/rn 18/ 48
association for retarded citizens of Iowa. 1 (37) The national alliance for the mentally ill on 2 mental illness of Iowa. 3 (38) The Iowa state association of counties. 4 (39) The Iowa developmental disabilities council. 5 (40) The Iowa chiropractic society. 6 (41) The Iowa academy of nutrition and dietetics. 7 (42) The Iowa behavioral health association. 8 (43) The midwest association for medical equipment 9 services or an affiliated Iowa organization. 10 (44) The Iowa public health association. 11 (45) The epilepsy foundation. 12 b. Public representatives which may include members 13 of consumer groups, including recipients of medical 14 assistance or their families, consumer organizations, 15 and others, which shall be appointed by the governor 16 in equal in number to the number of representatives of 17 the professional and business entities specifically 18 represented under paragraph “a” , appointed by the 19 governor for staggered terms of two years each, none 20 of whom shall be members of, or practitioners of, or 21 have a pecuniary interest in any of the professional 22 or business entities specifically represented under 23 paragraph “a” , and a majority of whom shall be current 24 or former recipients of medical assistance or members 25 of the families of current or former recipients. 26 3. The council shall include all of the following 27 nonvoting members: 28 c. a. The director of public health, or the 29 director’s designee. 30 d. b. The director of the department on aging, or 31 the director’s designee. 32 c. The state long-term care ombudsman, or the 33 ombudsman’s designee. 34 d. The ombudsman appointed pursuant to section 35 -19- HF2460.3509 (3) 86 pf/rn 19/ 48
2C.3, or the ombudsman’s designee. 1 e. The dean of Des Moines university —— osteopathic 2 medical center, or the dean’s designee. 3 f. The dean of the university of Iowa college of 4 medicine, or the dean’s designee. 5 g. The following members of the general assembly, 6 each for a term of two years as provided in section 7 69.16B : 8 (1) Two members of the house of representatives, 9 one appointed by the speaker of the house of 10 representatives and one appointed by the minority 11 leader of the house of representatives from their 12 respective parties. 13 (2) Two members of the senate, one appointed by the 14 president of the senate after consultation with the 15 majority leader of the senate and one appointed by the 16 minority leader of the senate. 17 3. 4. a. An executive committee of the council is 18 created and shall consist of the following members of 19 the council: 20 (1) As voting members: 21 (a) Five of the professional or business entity 22 members designated pursuant to subsection 2 , paragraph 23 “a” , and selected by the members specified under that 24 paragraph. 25 (2) (b) Five of the public members appointed 26 pursuant to subsection 2 , paragraph “b” , and selected 27 by the members specified under that paragraph. Of the 28 five public members, at least one member shall be a 29 recipient of medical assistance. 30 (3) (2) As nonvoting members: 31 (a) The director of public health, or the 32 director’s designee. 33 (b) The director of the department on aging, or the 34 director’s designee. 35 -20- HF2460.3509 (3) 86 pf/rn 20/ 48
(c) The state long-term care ombudsman, or the 1 ombudsman’s designee. 2 (d) The ombudsman appointed pursuant to section 3 2C.3, or the ombudsman’s designee. 4 b. The executive committee shall meet on a monthly 5 basis. The director of public health A public member 6 of the executive committee selected by the public 7 members appointed pursuant to subsection 2, paragraph 8 “b” , and a professional or business entity member of 9 the executive committee selected by the professional 10 or business entity members appointed pursuant to 11 subsection 2, paragraph “a” , shall serve as chairperson 12 co-chairpersons of the executive committee. 13 c. Based upon the deliberations of the council , 14 and the executive committee, and the subcommittees, 15 the executive committee , the council, and the 16 subcommittees, respectively, shall make recommendations 17 to the director , to the health policy oversight 18 committee created in section 2.45, to the general 19 assembly’s joint appropriations subcommittee on health 20 and human services, and to the general assembly’s 21 standing committees on human resources regarding the 22 budget, policy, and administration of the medical 23 assistance program. 24 5. a. The council shall create the following 25 subcommittees, and may create additional subcommittees 26 as necessary to address Medicaid program policies, 27 administration, budget, and other factors and issues: 28 (1) A stakeholder safeguards subcommittee, for 29 which the co-chairpersons shall be a public member 30 of the council appointed pursuant to subsection 2, 31 paragraph “b” , and selected by the public members of 32 the council, and a representative of a professional 33 or business entity appointed pursuant to subsection 34 2, paragraph “a” , and selected by the professional or 35 -21- HF2460.3509 (3) 86 pf/rn 21/ 48
business entity representatives of the council. The 1 mission of the stakeholder safeguards subcommittee 2 is to provide for ongoing stakeholder engagement and 3 feedback on issues affecting Medicaid recipients, 4 providers, and other stakeholders, including but not 5 limited to benefits such as transportation, benefit 6 utilization management, the inclusion of out-of-state 7 and out-of-network providers and the use of single-case 8 agreements, and reimbursement of providers and 9 services. 10 (2) The long-term services and supports 11 subcommittee which shall be chaired by the state 12 long-term care ombudsman, or the ombudsman’s designee. 13 The mission of the long-term services and supports 14 subcommittee is to be a resource and to provide advice 15 on policy development and program administration 16 relating to Medicaid long-term services and supports 17 including but not limited to developing outcomes and 18 performance measures for Medicaid managed care for the 19 long-term services and supports population; addressing 20 issues related to home and community-based services 21 waivers and waiting lists; and reviewing the system of 22 long-term services and supports to ensure provision of 23 home and community-based services and the rebalancing 24 of the health care infrastructure in accordance with 25 state and federal law including but not limited to the 26 principles established in Olmstead v. L.C., 527 U.S. 27 581 (1999) and the federal Americans with Disabilities 28 Act and in a manner that reflects a sustainable, 29 person-centered approach to improve health and life 30 outcomes, supports maximum independence, addresses 31 medical and social needs in a coordinated, integrated 32 manner, and provides for sufficient resources including 33 a stable, well-qualified workforce. The subcommittee 34 shall also address and make recommendations regarding 35 -22- HF2460.3509 (3) 86 pf/rn 22/ 48
the need for an ombudsman function for eligible and 1 potentially eligible Medicaid recipients beyond the 2 long-term services and supports population. 3 (3) The transparency, data, and program evaluation 4 subcommittee which shall be chaired by the director of 5 the university of Iowa public policy center, or the 6 director’s designee. The mission of the transparency, 7 data, and program evaluation subcommittee is to 8 ensure Medicaid program transparency; ensure the 9 collection, maintenance, retention, reporting, and 10 analysis of sufficient and meaningful data to provide 11 transparency and inform policy development and program 12 effectiveness; support development and administration 13 of a consumer-friendly dashboard; and promote the 14 ongoing evaluation of Medicaid stakeholder satisfaction 15 with the Medicaid program. 16 (4) The program integrity subcommittee which shall 17 be chaired by the Medicaid director, or the director’s 18 designee. The mission of the program integrity 19 subcommittee is to ensure that a comprehensive system 20 including specific policies, laws, and rules and 21 adequate resources and measures are in place to 22 effectively administer the program and to maintain 23 compliance with federal and state program integrity 24 requirements. 25 (5) A health workforce subcommittee, co-chaired 26 by the bureau chief of the bureau of oral and health 27 delivery systems of the department of public health, 28 or the bureau chief’s designee, and the director of 29 the national alliance on mental illness of Iowa, or 30 the director’s designee. The mission of the health 31 workforce subcommittee is to assess the sufficiency 32 and proficiency of the current and projected health 33 workforce; identify barriers to and gaps in health 34 workforce development initiatives and health 35 -23- HF2460.3509 (3) 86 pf/rn 23/ 48
workforce data to provide foundational, evidence-based 1 information to inform policymaking and resource 2 allocation; evaluate the most efficient application 3 and utilization of roles, functions, responsibilities, 4 activities, and decision-making capacity of health 5 care professionals and other allied and support 6 personnel; and make recommendations for improvement 7 in, and alternative modes of, health care delivery in 8 order to provide a competent, diverse, and sustainable 9 health workforce in the state. The subcommittee shall 10 work in collaboration with the office of statewide 11 clinical education programs of the university of Iowa 12 Carver college of medicine, Des Moines university, 13 Iowa workforce development, and other entities with 14 interest or expertise in the health workforce in 15 carrying out the subcommittee’s duties and developing 16 recommendations. 17 b. The co-chairpersons of the council shall 18 appoint members to each subcommittee from the general 19 membership of the council. Consideration in appointing 20 subcommittee members shall include the individual’s 21 knowledge about, and interest or expertise in, matters 22 that come before the subcommittee. 23 c. Subcommittees shall meet at the call of the 24 co-chairpersons or chairperson of the subcommittee, 25 or at the request of a majority of the members of the 26 subcommittee. 27 4. 6. For each council meeting, executive 28 committee meeting, or subcommittee meeting, a quorum 29 shall consist of fifty percent of the membership 30 qualified to vote. Where a quorum is present, a 31 position is carried by a majority of the members 32 qualified to vote. 33 7. For each council meeting, other than those 34 held during the time the general assembly is in 35 -24- HF2460.3509 (3) 86 pf/rn 24/ 48
session, each legislative member of the council shall 1 be reimbursed for actual travel and other necessary 2 expenses and shall receive a per diem as specified in 3 section 7E.6 for each day in attendance, as shall the 4 members of the council , or the executive committee , 5 or a subcommittee, for each day in attendance at a 6 council, executive committee, or subcommittee meeting, 7 who are recipients or the family members of recipients 8 of medical assistance, regardless of whether the 9 general assembly is in session. 10 5. 8. The department shall provide staff support 11 and independent technical assistance to the council , 12 and the executive committee , and the subcommittees . 13 6. 9. The director shall consider comply with 14 the requirements of this section regarding the 15 duties of the council, and the deliberations and 16 recommendations offered by of the council , and the 17 executive committee , and the subcommittees shall be 18 reflected in the director’s preparation of medical 19 assistance budget recommendations to the council 20 on human services pursuant to section 217.3 , and in 21 implementation of medical assistance program policies , 22 and in administration of the Medicaid program . 23 10. The council, executive committee, and 24 subcommittees shall jointly submit quarterly reports 25 to the health policy oversight committee created in 26 section 2.45 and shall jointly submit a report to the 27 governor and the general assembly initially by January 28 1, 2017, and annually, therefore, summarizing the 29 outcomes and findings of their respective deliberations 30 and any recommendations including but not limited to 31 those for changes in law or policy. 32 11. The council, executive committee, and 33 subcommittees may enlist the services of persons who 34 are qualified by education, expertise, or experience 35 -25- HF2460.3509 (3) 86 pf/rn 25/ 48
to advise, consult with, or otherwise assist the 1 council, executive committee, or subcommittees in the 2 performance of their duties. The council, executive 3 committee, or subcommittees may specifically enlist 4 the assistance of entities such as the university of 5 Iowa public policy center to provide ongoing evaluation 6 of the Medicaid program and to make evidence-based 7 recommendations to improve the program. The council, 8 executive committee, and subcommittees shall enlist 9 input from the patient-centered health advisory council 10 created in section 135.159, the mental health and 11 disabilities services commission created in section 12 225C.5, the commission on aging created in section 13 231.11, the bureau of substance abuse of the department 14 of public health, the Iowa developmental disabilities 15 council, and other appropriate state and local entities 16 to provide advice to the council, executive committee, 17 and subcommittees. 18 12. The department, in accordance with 42 C.F.R. 19 §431.12, shall seek federal financial participation for 20 the activities of the council, the executive committee, 21 and the subcommittees. 22 PATIENT-CENTERED HEALTH RESOURCES AND INFRASTRUCTURE 23 Sec. ___. Section 135.159, subsection 2, Code 2016, 24 is amended to read as follows: 25 2. a. The department shall establish a 26 patient-centered health advisory council which shall 27 include but is not limited to all of the following 28 members, selected by their respective organizations, 29 and any other members the department determines 30 necessary to assist in the department’s duties at 31 various stages of development of the medical home 32 system and in the transformation to a patient-centered 33 infrastructure that integrates and coordinates services 34 and supports to address social determinants of health 35 -26- HF2460.3509 (3) 86 pf/rn 26/ 48
and meet population health goals : 1 (1) The director of human services, or the 2 director’s designee. 3 (2) The commissioner of insurance, or the 4 commissioner’s designee. 5 (3) A representative of the federation of Iowa 6 insurers. 7 (4) A representative of the Iowa dental 8 association. 9 (5) A representative of the Iowa nurses 10 association. 11 (6) A physician and an osteopathic physician 12 licensed pursuant to chapter 148 who are family 13 physicians and members of the Iowa academy of family 14 physicians. 15 (7) A health care consumer. 16 (8) A representative of the Iowa collaborative 17 safety net provider network established pursuant to 18 section 135.153 . 19 (9) A representative of the Iowa developmental 20 disabilities council. 21 (10) A representative of the Iowa chapter of the 22 American academy of pediatrics. 23 (11) A representative of the child and family 24 policy center. 25 (12) A representative of the Iowa pharmacy 26 association. 27 (13) A representative of the Iowa chiropractic 28 society. 29 (14) A representative of the university of Iowa 30 college of public health. 31 (15) A representative of the Iowa public health 32 association. 33 (16) A representative of the area agencies on 34 aging. 35 -27- HF2460.3509 (3) 86 pf/rn 27/ 48
(17) A representative of the mental health and 1 disability services regions. 2 (18) A representative of early childhood Iowa. 3 b. Public members of the patient-centered health 4 advisory council shall receive reimbursement for 5 actual expenses incurred while serving in their 6 official capacity only if they are not eligible for 7 reimbursement by the organization that they represent. 8 c. (1) Beginning July 1, 2016, the 9 patient-centered health advisory council shall 10 do all of the following: 11 (a) Review and make recommendations to the 12 department and to the general assembly regarding 13 the building of effective working relationships and 14 strategies to support state-level and community-level 15 integration, to provide cross-system coordination 16 and synchronization, and to more appropriately align 17 health delivery models and service sectors, including 18 but not limited to public health, aging and disability 19 services agencies, mental health and disability 20 services regions, social services, child welfare, and 21 other providers, agencies, organizations, and sectors 22 to address social determinants of health, holistic 23 well-being, and population health goals. Such review 24 and recommendations shall include a review of funding 25 streams and recommendations for blending and braiding 26 funding to support these efforts. 27 (b) Assist in efforts to evaluate the health 28 workforce to inform policymaking and resource 29 allocation. 30 (2) The patient-centered health advisory council 31 shall submit a report to the department, the health 32 policy oversight committee created in section 2.45, and 33 the general assembly, initially, on or before December 34 15, 2016, and on or before December 15, annually, 35 -28- HF2460.3509 (3) 86 pf/rn 28/ 48
thereafter, including any findings or recommendations 1 resulting from the council’s deliberations. 2 HAWK-I PROGRAM 3 Sec. ___. Section 514I.5, subsection 8, paragraph 4 d, Code 2016, is amended by adding the following new 5 subparagraph: 6 NEW SUBPARAGRAPH . (17) Occupational therapy. 7 Sec. ___. Section 514I.5, subsection 8, Code 2016, 8 is amended by adding the following new paragraph: 9 NEW PARAGRAPH . m. The definition of medically 10 necessary and the utilization management criteria under 11 the hawk-i program in order to ensure that benefits 12 are uniformly and consistently provided across all 13 participating insurers in the type and manner that 14 reflects and appropriately meets the needs, including 15 but not limited to the habilitative and rehabilitative 16 needs, of the child population including those children 17 with special health care needs. 18 MEDICAID PROGRAM POLICY IMPROVEMENT 19 Sec. ___. DIRECTIVES FOR MEDICAID PROGRAM POLICY 20 IMPROVEMENTS. In order to safeguard the interests 21 of Medicaid recipients, encourage the participation 22 of Medicaid providers, and protect the interests 23 of all taxpayers, the department of human services 24 shall comply with or ensure that the specified entity 25 complies with all of the following and shall amend 26 Medicaid managed care contract provisions as necessary 27 to reflect all of the following: 28 1. CONSUMER PROTECTIONS. 29 a. In accordance with 42 C.F.R. §438.420, a 30 Medicaid managed care organization shall continue a 31 recipient’s benefits during an appeal process. If, as 32 allowed when final resolution of an appeal is adverse 33 to the Medicaid recipient, the Medicaid managed care 34 organization chooses to recover the costs of the 35 -29- HF2460.3509 (3) 86 pf/rn 29/ 48
services furnished to the recipient while an appeal is 1 pending, the Medicaid managed care organization shall 2 provide adequate prior notice of potential recovery 3 of costs to the recipient at the time the appeal is 4 filed, and any costs recovered shall be remitted to 5 the department of human services and deposited in the 6 Medicaid reinvestment fund created in section 249A.4C. 7 b. Ensure that each Medicaid managed care 8 organization provides, at a minimum, all the benefits 9 and services deemed medically necessary that were 10 covered, including to the extent and in the same manner 11 and subject to the same prior authorization criteria, 12 by the state program directly under fee for service 13 prior to January 1, 2016. Benefits covered through 14 Medicaid managed care shall comply with the specific 15 requirements in state law applicable to the respective 16 Medicaid recipient population under fee for service. 17 c. Enhance monitoring of the reduction in or 18 suspension or termination of services provided to 19 Medicaid recipients, including reductions in the 20 provision of home and community-based services waiver 21 services or increases in home and community-based 22 services waiver waiting lists. Medicaid managed care 23 organizations shall provide data to the department 24 as necessary for the department to compile periodic 25 reports on the numbers of individuals transferred from 26 state institutions and long-term care facilities to 27 home and community-based services, and the associated 28 savings. Any savings resulting from the transfers as 29 certified by the department shall be deposited in the 30 Medicaid reinvestment fund created in section 249A.4C. 31 d. (1) Require each Medicaid managed care 32 organization to adhere to reasonableness and service 33 authorization standards that are appropriate for and 34 do not disadvantage those individuals who have ongoing 35 -30- HF2460.3509 (3) 86 pf/rn 30/ 48
chronic conditions or who require long-term services 1 and supports. Services and supports for individuals 2 with ongoing chronic conditions or who require 3 long-term services and supports shall be authorized in 4 a manner that reflects the recipient’s continuing need 5 for such services and supports, and limits shall be 6 consistent with a recipient’s current needs assessment 7 and person-centered service plan. 8 (2) In addition to other provisions relating to 9 community-based case management continuity of care 10 requirements, Medicaid managed care contractors shall 11 provide the option to the case manager of a Medicaid 12 recipient who retained the case manager during the 13 six months of transition to Medicaid managed care, if 14 the recipient chooses to continue to retain that case 15 manager beyond the six-month transition period and 16 if the case manager is not otherwise a participating 17 provider of the recipient’s managed care organization 18 provider network, to enter into a single case agreement 19 to continue to provide case management services to the 20 Medicaid recipient. 21 e. Ensure that Medicaid recipients are provided 22 care coordination and case management by appropriately 23 trained professionals in a conflict-free manner. Care 24 coordination and case management shall be provided 25 in a patient-centered and family-centered manner 26 that requires a knowledge of community supports, a 27 reasonable ratio of care coordinators and case managers 28 to Medicaid recipients, standards for frequency of 29 contact with the Medicaid recipient, and specific and 30 adequate reimbursement. 31 f. A Medicaid managed care contract shall include 32 a provision for continuity and coordination of care 33 for a consumer transitioning to Medicaid managed care, 34 including maintaining existing provider-recipient 35 -31- HF2460.3509 (3) 86 pf/rn 31/ 48
relationships and honoring the amount, duration, and 1 scope of a recipient’s authorized services based on 2 the recipient’s medical history and needs. In the 3 initial transition to Medicaid managed care, to ensure 4 the least amount of disruption, Medicaid managed 5 care organizations shall provide, at a minimum, a 6 one-year transition of care period for all provider 7 types, regardless of network status with an individual 8 Medicaid managed care organization. 9 g. Ensure that a Medicaid managed care organization 10 does not arbitrarily deny coverage for medically 11 necessary services based solely on financial reasons 12 and does not shift the responsibility for provision of 13 services or payment of costs of services to another 14 entity to avoid costs or attain savings. 15 h. Ensure that dental coverage, if not integrated 16 into an overall Medicaid managed care contract, is 17 part of the overall holistic, integrated coverage 18 for physical, behavioral, and long-term services and 19 supports provided to a Medicaid recipient. 20 i. Require each Medicaid managed care organization 21 to verify the offering and actual utilization of 22 services and supports and value-added services, 23 an individual recipient’s encounters and the costs 24 associated with each encounter, and requests and 25 associated approvals or denials of services. 26 Verification of actual receipt of services and supports 27 and value-added services shall, at a minimum, consist 28 of comparing receipt of service against both what 29 was authorized in the recipient’s benefit or service 30 plan and what was actually reimbursed. Value-added 31 services shall not be reportable as allowable medical 32 or administrative costs or factored into rate setting, 33 and the costs of value-added services shall not be 34 passed on to recipients or providers. 35 -32- HF2460.3509 (3) 86 pf/rn 32/ 48
j. Provide periodic reports to the governor and 1 the general assembly regarding changes in quality of 2 care and health outcomes for Medicaid recipients under 3 managed care compared to quality of care and health 4 outcomes of the same populations of Medicaid recipients 5 prior to January 1, 2016. 6 k. Require each Medicaid managed care organization 7 to maintain records of complaints, grievances, and 8 appeals, and report the number and types of complaints, 9 grievances, and appeals filed, the resolution of each, 10 and a description of any patterns or trends identified 11 to the department of human services and the health 12 policy oversight committee created in section 2.45, 13 on a monthly basis. The department shall review and 14 compile the data on a quarterly basis and make the 15 compilations available to the public. Following review 16 of reports submitted by the department, a Medicaid 17 managed care organization shall take any corrective 18 action required by the department and shall be subject 19 to any applicable penalties. 20 l. Require Medicaid managed care organizations to 21 survey Medicaid recipients, to collect satisfaction 22 data using a uniform instrument, and to provide a 23 detailed analysis of recipient satisfaction as well as 24 various metrics regarding the volume of and timelines 25 in responding to recipient complaints and grievances as 26 directed by the department of human services. 27 m. Require managed care organizations to allow a 28 recipient to request that the managed care organization 29 enter into a single case agreement with a recipient’s 30 out-of-network provider, including a provider outside 31 of the state, to provide for continuity of care when 32 the recipient has an existing relationship with the 33 provider to provide a covered benefit, or to ensure 34 adequate or timely access to a provider of a covered 35 -33- HF2460.3509 (3) 86 pf/rn 33/ 48
benefit when the managed care organization provider 1 network cannot ensure such adequate or timely access. 2 2. CHILDREN. 3 a. (1) The hawk-i board shall retain all authority 4 specified under chapter 514I relative to the children 5 eligible under section 514I.8 to participate in the 6 hawk-i program, including but not limited to approving 7 any contract entered into pursuant to chapter 514I; 8 approving the benefit package design, reviewing the 9 benefit package design, and making necessary changes 10 to reflect the results of the reviews; and adopting 11 rules for the hawk-i program including those related 12 to qualifying standards for selecting participating 13 insurers for the program and the benefits to be 14 included in a health plan. 15 (2) The hawk-i board shall review benefit plans 16 and utilization review provisions and ensure that 17 benefits provided to children under the hawk-i program, 18 at a minimum, reflect those required by state law as 19 specified in section 514I.5, include both habilitative 20 and rehabilitative services, and are provided as 21 medically necessary relative to the child population 22 served and based on the needs of the program recipient 23 and the program recipient’s medical history. 24 (3) The hawk-i board shall work with the department 25 of human services to coordinate coverage and care for 26 the population of children in the state eligible for 27 either Medicaid or hawk-i coverage so that, to the 28 greatest extent possible, the two programs provide for 29 continuity of care as children transition between the 30 two programs or to private health care coverage. To 31 this end, all contracts with participating insurers 32 providing coverage under the hawk-i program and with 33 all managed care organizations providing coverage for 34 children eligible for Medicaid shall do all of the 35 -34- HF2460.3509 (3) 86 pf/rn 34/ 48
following: 1 (a) Specifically and appropriately address 2 the unique needs of children and children’s health 3 delivery. 4 (b) Provide for the maintaining of child health 5 panels that include representatives of child health, 6 welfare, policy, and advocacy organizations in the 7 state that address child health and child well-being. 8 (c) Address early intervention and prevention 9 strategies, the provision of a child health care 10 delivery infrastructure for children with special 11 health care needs, utilization of current standards 12 and guidelines for children’s health care and 13 pediatric-specific screening and assessment tools, 14 the inclusion of pediatric specialty providers in 15 the provider network, and the utilization of health 16 homes for children and youth with special health 17 care needs including intensive care coordination 18 and family support and access to a professional 19 family-to-family support system. Such contracts 20 shall utilize pediatric-specific quality measures 21 and assessment tools which shall align with existing 22 pediatric-specific measures as determined in 23 consultation with the child health panel and approved 24 by the hawk-i board. 25 (d) Provide special incentives for innovative 26 and evidence-based preventive, behavioral, and 27 developmental health care and mental health care 28 for children’s programs that improve the life course 29 trajectory of these children. 30 (e) Provide that information collected from the 31 pediatric-specific assessments be used to identify 32 health risks and social determinants of health that 33 impact health outcomes. Such data shall be used in 34 care coordination and interventions to improve patient 35 -35- HF2460.3509 (3) 86 pf/rn 35/ 48
outcomes and to drive program designs that improve the 1 health of the population. Aggregate assessment data 2 shall be shared with affected providers on a routine 3 basis. 4 b. In order to monitor the quality of and access 5 to health care for children receiving coverage under 6 the Medicaid program, each Medicaid managed care 7 organization shall uniformly report, in a template 8 format designated by the department of human services, 9 the number of claims submitted by providers and the 10 percentage of claims approved by the Medicaid managed 11 care organization for the early and periodic screening, 12 diagnostic, and treatment (EPSDT) benefit based 13 on the Iowa EPSDT care for kids health maintenance 14 recommendations, including but not limited to 15 physical exams, immunizations, the seven categories of 16 developmental and behavioral screenings, vision and 17 hearing screenings, and lead testing. 18 3. PROVIDER PARTICIPATION ENHANCEMENT. 19 a. Ensure that savings achieved through Medicaid 20 managed care does not come at the expense of further 21 reductions in provider rates. The department shall 22 ensure that Medicaid managed care organizations use 23 reasonable reimbursement standards for all provider 24 types and compensate providers for covered services at 25 not less than the minimum reimbursement established 26 by state law applicable to fee for service for a 27 respective provider, service, or product for a fiscal 28 year and as determined in conjunction with actuarially 29 sound rate setting procedures. Such reimbursement 30 shall extend for the entire duration of a managed care 31 contract. 32 b. To enhance continuity of care in the provision 33 of pharmacy services, Medicaid managed care 34 organizations shall utilize the same preferred drug 35 -36- HF2460.3509 (3) 86 pf/rn 36/ 48
list, recommended drug list, prior authorization 1 criteria, and other utilization management strategies 2 that apply to the state program directly under fee for 3 service and shall apply other provisions of applicable 4 state law including those relating to chemically unique 5 mental health prescription drugs. Reimbursement rates 6 established under Medicaid managed care contracts for 7 ingredient cost reimbursement and dispensing fees shall 8 be subject to and shall reflect provisions of state 9 and federal law, including the minimum reimbursements 10 established in state law for fee for service for a 11 fiscal year. 12 c. Address rate setting and reimbursement of the 13 entire scope of services provided under the Medicaid 14 program to ensure the adequacy of the provider network 15 and to ensure that providers that contribute to the 16 holistic health of the Medicaid recipient, whether 17 inside or outside of the provider network, are 18 compensated for their services. 19 d. Managed care contractors shall submit financial 20 documentation to the department of human services 21 demonstrating payment of claims and expenses by 22 provider type. 23 e. Participating Medicaid providers under a managed 24 care contract shall be allowed to submit claims for up 25 to 365 days following discharge of a Medicaid recipient 26 from a hospital or following the date of service. 27 f. (1) A managed care contract entered into on 28 or after July 1, 2015, shall, at a minimum, reflect 29 all of the following provisions and requirements, and 30 shall extend the following payment rates based on the 31 specified payment floor, as applicable to the provider 32 type: 33 (a) In calculating the rates for prospective 34 payment system hospitals, the following base rates 35 -37- HF2460.3509 (3) 86 pf/rn 37/ 48
shall be used: 1 (i) The inpatient diagnostic related group base 2 rates and certified unit per diem in effect on October 3 1, 2015. 4 (ii) The outpatient ambulatory payment 5 classification base rates in effect on July 1, 2015. 6 (iii) The inpatient psychiatric certified unit per 7 diem in effect on October 1, 2015. 8 (iv) The inpatient physical rehabilitation 9 certified unit per diem in effect on October 1, 2015. 10 (b) In calculating the critical access hospital 11 payment rates, the following base rates shall be used: 12 (i) The inpatient diagnostic related group base 13 rates in effect on July 1, 2015. 14 (ii) The outpatient cost-to-charge ratio in effect 15 on July 1, 2015. 16 (iii) The swing bed per diem in effect on July 1, 17 2015. 18 (c) Critical access hospitals shall receive 19 cost-based reimbursement for one hundred percent of 20 the reasonable costs for the provision of services to 21 Medicaid recipients. 22 (d) Critical access hospitals shall submit annual 23 cost reports and managed care contractors shall submit 24 annual payment reports to the department of human 25 services. The department shall reconcile the critical 26 access hospital’s reported costs with the managed care 27 contractor’s reported payments. The department shall 28 require the managed care contractor to retroactively 29 reimburse a critical access hospital for underpayments. 30 (e) Community mental health centers shall receive 31 one hundred percent of the reasonable costs for the 32 provision of services to Medicaid recipients. 33 (f) Federally qualified health centers shall 34 receive cost-based reimbursement for one hundred 35 -38- HF2460.3509 (3) 86 pf/rn 38/ 48
percent of the reasonable costs for the provision of 1 services to Medicaid recipients. 2 (g) The reimbursement rates for substance-related 3 disorder treatment programs licensed under section 4 125.13, shall be no lower than the rates in effect for 5 the fiscal year beginning July 1, 2015. 6 (2) For managed care contract periods subsequent to 7 the initial contract period, base rates for prospective 8 payment system hospitals and critical access hospitals 9 shall be calculated using the base rate for the prior 10 contract period plus 3 percent. Prospective payment 11 system hospital and critical access hospital base rates 12 shall at no time be less than the previous contract 13 period’s base rates. 14 (3) A managed care contract shall require 15 out-of-network prospective payment system hospital 16 and critical access hospital payment rates to meet or 17 exceed ninety-nine percent of the rates specified for 18 the respective in-network hospitals in accordance with 19 this paragraph “f”. 20 g. If the department of human services collects 21 ownership and control information from Medicaid 22 providers pursuant to 42 C.F.R. §455.104, a managed 23 care organization under contract with the state shall 24 not also require submission of this information from 25 approved enrolled Medicaid providers. 26 h. (1) Ensure that a Medicaid managed care 27 organization develops and maintains a provider network 28 of qualified providers who meet state licensing, 29 credentialing, and certification requirements, as 30 applicable, which network shall be sufficient to 31 provide adequate access to all services covered and for 32 all populations served under the managed care contract. 33 Medicaid managed care organizations shall incorporate 34 existing and traditional providers, including but 35 -39- HF2460.3509 (3) 86 pf/rn 39/ 48
not limited to those providers that comprise the Iowa 1 collaborative safety net provider network created in 2 section 135.153, into their provider networks. 3 (2) Ensure that respective Medicaid populations 4 are managed at all times within funding limitations 5 and contract terms. The department shall also 6 monitor service delivery and utilization to ensure 7 the responsibility for provision of services to 8 Medicaid recipients is not shifted to non-Medicaid 9 covered services to attain savings, and that such 10 responsibility is not shifted to mental health and 11 disability services regions, local public health 12 agencies, aging and disability resource centers, 13 or other entities unless agreement to provide, and 14 provision for adequate compensation for, such services 15 is agreed to between the affected entities in advance. 16 i. Medicaid managed care organizations shall 17 provide an enrolled Medicaid provider approved by the 18 department of human services the opportunity to be a 19 participating network provider. 20 j. Medicaid managed care organizations shall 21 include provider appeals and grievance procedures 22 that in part allow a provider to file a grievance 23 independently but on behalf of a Medicaid recipient 24 and to appeal claims denials which, if determined to 25 be based on claims for medically necessary services 26 whether or not denied on an administrative basis, shall 27 receive appropriate payment. 28 k. (1) Medicaid managed care organizations 29 shall include as primary care providers any provider 30 designated by the state as a primary care provider, 31 subject to a provider’s respective state certification 32 standards, including but not limited to all of the 33 following: 34 (a) A physician who is a family or general 35 -40- HF2460.3509 (3) 86 pf/rn 40/ 48
practitioner, a pediatrician, an internist, an 1 obstetrician, or a gynecologist. 2 (b) An advanced registered nurse practitioner. 3 (c) A physician assistant. 4 (d) A chiropractor licensed pursuant to chapter 5 151. 6 (2) A Medicaid managed care organization shall not 7 impose more restrictive, additional, or different scope 8 of practice requirements or standards of practice on a 9 primary care provider than those prescribed by state 10 law as a prerequisite for participation in the managed 11 care organization’s provider network. 12 4. CAPITATION RATES AND MEDICAL LOSS RATIO. 13 a. Capitation rates shall be developed based on all 14 reasonable, appropriate, and attainable costs. Costs 15 that are not reasonable, appropriate, or attainable, 16 including but not limited to improper payment 17 recoveries, shall not be included in the development 18 of capitated rates. 19 b. Capitation rates for Medicaid recipients falling 20 within different rate cells shall not be expected to 21 cross-subsidize one another and the data used to set 22 capitation rates shall be relevant and timely and tied 23 to the appropriate Medicaid population. 24 c. Any increase in capitation rates for managed 25 care contractors is subject to prior statutory approval 26 and shall not exceed three percent over the existing 27 capitation rate in any one-year period or five percent 28 over the existing capitation rate in any two-year 29 period. 30 d. In addition to withholding two percent of a 31 managed care organization’s annual capitation payment 32 as a pay-for-performance enforcement mechanism, the 33 department of human services shall also withhold an 34 additional two percent of a managed care organization’s 35 -41- HF2460.3509 (3) 86 pf/rn 41/ 48
annual capitation payment until the department is able 1 to ensure that the respective managed care organization 2 has complied with all requirements relating to data, 3 information, transparency, evaluation, and oversight 4 specified by law, rule, contract, or other basis. 5 e. The department of human services shall collect 6 an initial contribution of five million dollars from 7 each of the managed care organizations contracting 8 with the state during the fiscal year beginning July 9 1, 2015, for an aggregate amount of fifteen million 10 dollars, and shall deposit such amount in the Medicaid 11 reinvestment fund, as provided in section 249A.4C, as 12 enacted in this Act, to be used for Medicaid ombudsman 13 activities through the office of long-term care 14 ombudsman. 15 f. A managed care contract shall impose a minimum 16 Medicaid loss ratio of at least eighty-eight percent. 17 In calculating the medical loss ratio, medical costs 18 or benefit expenses shall include only those costs 19 directly related to patient medical care and not 20 ancillary expenses, including but not limited to any 21 of the following: 22 (1) Program integrity activities. 23 (2) Utilization review activities. 24 (3) Fraud prevention activities beyond the scope of 25 those activities necessary to recover incurred claims. 26 (4) Provider network development, education, or 27 management activities. 28 (5) Provider credentialing activities. 29 (6) Marketing expenses. 30 (7) Administrative costs associated with recipient 31 incentives. 32 (8) Clinical data collection activities. 33 (9) Claims adjudication expenses. 34 (10) Customer service or health care professional 35 -42- HF2460.3509 (3) 86 pf/rn 42/ 48
hotline services addressing nonclinical recipient 1 questions. 2 (11) Value-added or cost-containment services, 3 wellness programs, disease management, and case 4 management or care coordination programs. 5 (12) Health quality improvement activities unless 6 specifically approved as a medical cost by state law. 7 Costs of health quality improvement activities included 8 in determining the medical loss ratio shall be only 9 those activities that are independent improvements 10 measurable in individual patients. 11 (13) Insurer claims review activities. 12 (14) Information technology costs unless they 13 directly and credibly improve the quality of health 14 care and do not duplicate, conflict with, or fail to be 15 compatible with similar health information technology 16 efforts of providers. 17 (15) Legal department costs including information 18 technology costs, expenses incurred for review and 19 denial of claims, legal costs related to defending 20 claims, settlements for wrongly denied claims, and 21 costs related to administrative claims handling 22 including salaries of administrative personnel and 23 legal costs. 24 (16) Taxes unrelated to premiums or the provision 25 of medical care. Only state and federal taxes and 26 licensing or regulatory fees relevant to actual 27 premiums collected, not including such taxes and fees 28 as property taxes, taxes on investment income, taxes on 29 investment property, and capital gains taxes, may be 30 included in determining the medical loss ratio. 31 g. (1) Provide enhanced guidance and criteria for 32 defining medical and administrative costs, recoveries, 33 and rebates including pharmacy rebates, and the 34 recording, reporting, and recoupment of such costs, 35 -43- HF2460.3509 (3) 86 pf/rn 43/ 48
recoveries, and rebates realized. 1 (2) Medicaid managed care organizations shall 2 offset recoveries, rebates, and refunds against 3 medical costs, include only allowable administrative 4 expenses in the determination of administrative costs, 5 report costs related to subcontractors properly, and 6 have complete systems checks and review processes to 7 identify overpayment possibilities. 8 (3) Medicaid managed care contractors shall submit 9 publicly available, comprehensive financial statements 10 to the department of human services to verify that the 11 minimum medical loss ratio is being met and shall be 12 subject to periodic audits. 13 5. DATA AND INFORMATION, EVALUATION, AND OVERSIGHT. 14 a. Develop and administer a clear, detailed policy 15 regarding the collection, storage, integration, 16 analysis, maintenance, retention, reporting, sharing, 17 and submission of data and information from the 18 Medicaid managed care organizations and shall require 19 each Medicaid managed care organization to have in 20 place a data and information system to ensure that 21 accurate and meaningful data is available. At a 22 minimum, the data shall allow the department to 23 effectively measure and monitor Medicaid managed care 24 organization performance, quality, outcomes including 25 recipient health outcomes, service utilization, 26 finances, program integrity, the appropriateness 27 of payments, and overall compliance with contract 28 requirements; perform risk adjustments and determine 29 actuarially sound capitation rates and appropriate 30 provider reimbursements; verify that the minimum 31 medical loss ratio is being met; ensure recipient 32 access to and use of services; create quality measures; 33 and provide for program transparency. 34 b. Medicaid managed care organizations shall 35 -44- HF2460.3509 (3) 86 pf/rn 44/ 48
directly capture and retain and shall report actual and 1 detailed medical claims costs and administrative cost 2 data to the department as specified by the department. 3 Medicaid managed care organizations shall allow the 4 department to thoroughly and accurately monitor the 5 medical claims costs and administrative costs data 6 Medicaid managed care organizations report to the 7 department. 8 c. Any audit of Medicaid managed care contracts 9 shall ensure compliance including with respect to 10 appropriate medical costs, allowable administrative 11 costs, the medical loss ratio, cost recoveries, 12 rebates, overpayments, and with specific contract 13 performance requirements. 14 d. The external quality review organization 15 contracting with the department shall review the 16 Medicaid managed care program to determine if the 17 state has sufficient infrastructure and controls in 18 place to effectively oversee the Medicaid managed care 19 organizations and the Medicaid program in order to 20 ensure, at a minimum, compliance with Medicaid managed 21 care organization contracts and to prevent fraud, 22 abuse, and overpayments. The results of any external 23 quality review organization review shall be submitted 24 to the governor, the general assembly, and the health 25 policy oversight committee created in section 2.45. 26 e. Publish benchmark indicators based on Medicaid 27 program outcomes from the fiscal year beginning July 1, 28 2015, to be used to compare outcomes of the Medicaid 29 program as administered by the state program prior 30 to July 1, 2015, to those outcomes of the program 31 under Medicaid managed care. The outcomes shall 32 include a comparison of actual costs of the program 33 as administered prior to and after implementation of 34 Medicaid managed care. The data shall also include 35 -45- HF2460.3509 (3) 86 pf/rn 45/ 48
specific detail regarding the actual expenses incurred 1 by each managed care organization by specific provider 2 line of service. 3 f. Review and approve or deny approval of contract 4 amendments on an ongoing basis to provide for 5 continuous improvement in Medicaid managed care and 6 to incorporate any changes based on changes in law or 7 policy. 8 g. (1) Require managed care contractors to track 9 and report on a monthly basis to the department of 10 human services, at a minimum, all of the following: 11 (a) The number and details relating to prior 12 authorization requests and denials. 13 (b) The ten most common reasons for claims denials. 14 Information reported by a managed care contractor 15 relative to claims shall also include the number 16 of claims denied, appealed, and overturned based on 17 provider type and service type. 18 (c) Utilization of health care services by 19 diagnostic related group and ambulatory payment 20 classification as well as total claims volume. 21 (2) The department shall ensure the validity 22 of all information submitted by a Medicaid managed 23 care organization and shall make the monthly reports 24 available to the public. 25 h. Medicaid managed care organizations shall 26 maintain stakeholder panels comprised of an equal 27 number of Medicaid recipients and providers. Medicaid 28 managed care organizations shall provide for separate 29 provider-specific panels to address detailed payment, 30 claims, process, and other issues as well as grievance 31 and appeals processes. 32 i. Medicaid managed care contracts shall align 33 economic incentives, delivery system reforms, and 34 performance and outcome metrics with those of the state 35 -46- HF2460.3509 (3) 86 pf/rn 46/ 48
innovation models initiatives and Medicaid accountable 1 care organizations. The department of human services 2 shall develop and utilize a common, uniform set of 3 process, quality, and consumer satisfaction measures 4 across all Medicaid payors and providers that align 5 with those developed through the state innovation 6 models initiative and shall ensure that such measures 7 are expanded and adjusted to address additional 8 populations and to meet population health objectives. 9 Medicaid managed care contracts shall include long-term 10 performance and outcomes goals that reward success in 11 achieving population health goals such as improved 12 community health metrics. 13 j. (1) Require consistency and uniformity of 14 processes, procedures, and forms across all Medicaid 15 managed care organizations to reduce the administrative 16 burden to providers and consumers and to increase 17 efficiencies in the program. Such requirements shall 18 apply to but are not limited to areas of uniform cost 19 and quality reporting, uniform prior authorization 20 requirements and procedures, uniform utilization 21 management criteria, centralized, uniform, and seamless 22 credentialing requirements and procedures, and uniform 23 critical incident reporting. 24 (2) The department of human services shall 25 establish a comprehensive provider credentialing 26 process to be recognized and utilized by all Medicaid 27 managed care organization contractors. The process 28 shall meet the national committee for quality assurance 29 and other appropriate standards. The process shall 30 ensure that credentialing is completed in a timely 31 manner without disruption to provider billing 32 processes. 33 k. Medicaid managed care organizations and any 34 entity with which a managed care organization contracts 35 -47- HF2460.3509 (3) 86 pf/rn 47/ 48
for the performance of services shall disclose at no 1 cost to the department all discounts, incentives, 2 rebates, fees, free goods, bundling arrangements, and 3 other agreements affecting the net cost of goods or 4 services provided under a managed care contract. 5 Sec. ___. RETROACTIVE APPLICABILITY. The section 6 of this division of this Act relating to directives 7 for Medicaid program policy improvements applies 8 retroactively to July 1, 2015. 9 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 10 of this Act, being deemed of immediate importance, 11 takes effect upon enactment. > 12 3. By renumbering as necessary. 13 ______________________________ HEDDENS of Story -48- HF2460.3509 (3) 86 pf/rn 48/ 48 #3.