[Code of Federal Regulations]
[Title 42, Volume 2]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 42CFR422.152]

[Page 859-861]
 
                         TITLE 42--PUBLIC HEALTH
 
                             HUMAN SERVICES
 
PART 422--MEDICARE+CHOICE PROGRAM--Table of Contents
 
                      Subpart D--Quality Assurance
 
Sec. 422.152  Quality assessment and performance improvement program.

    Source: 63 FR 35082, June 26, 1998, unless otherwise noted.


    (a) General rule. Each M+C organization that offers one or more M+C 
plans must have, for each of those plans, an ongoing quality assessment 
and performance improvement program that meets the applicable 
requirements of this section for the services it furnishes to its M+C 
enrollees.
    (b) Requirements for network M+C MSA plans and M+C coordinated care 
plans other than PPO plans. An organization offering a network M+C MSA 
plan or M+C coordinated care plan other than a PPO plan must do the 
following:
    (1) Meet the requirements in paragraph (c)(1) of this section 
concerning performance measurement and reporting. With respect to an M+C 
coordinated care plan, an organization must also meet the requirements 
of paragraph (c)(2) of this section concerning the achievement of 
minimum performance levels. The requirements of paragraph (c)(2) of this 
section do not apply with respect to an M+C MSA plan.
    (2) Conduct performance improvement projects as described in 
paragraph (d) of this section. These projects must achieve, through 
ongoing measurement and intervention, demonstrable and sustained 
improvement in significant aspects of clinical care and nonclinical care 
areas that can be expected to have a favorable effect on health outcomes 
and enrollee satisfaction.
    (3) In processing requests for initial or continued authorization of 
services, follow written policies and procedures that reflect current 
standards of medical practice.
    (4) Have in effect mechanisms to detect both underutilization and 
overutilization of services.
    (5) Make available to CMS information on quality and outcomes 
measures that will enable beneficiaries to compare health coverage 
options and select among them, as provided in Sec. 422.64(c)(10).
    (c) Performance measurement and reporting. The organization offering 
the plan must do the following:
    (1) Measure performance under the plan, using standard measures 
required by CMS, and report its performance to CMS. The standard 
measures may be specified in uniform data collection and reporting 
instruments required by CMS, and will relate to--

[[Page 860]]

    (i) Clinical areas including effectiveness of care, enrollee 
perception of care, and use of services; and
    (ii) Nonclinical areas including access to and availability of 
services, appeals and grievances, and organizational characteristics.
    (2) Achieve any minimum performance levels that CMS establishes 
locally, regionally, or nationally with respect to the standard 
measures.
    (i) In establishing minimum performance levels, CMS considers 
historical plan and original Medicare performance data and trends.
    (ii) CMS establishes the minimum performance levels prospectively 
upon contract initiation and renewal.
    (iii) The organization must meet the minimum performance levels by 
the end of the contract year.
    (iv) In accordance with Sec. 422.506, CMS may decline to renew the 
organization's contract in the year that CMS determines that it did not 
meet the minimum performance levels.
    (d) Performance improvement projects. (1) Performance improvement 
projects are organization initiatives that focus on specified clinical 
and nonclinical areas and that involve the following:
    (i) Measurement of performance.
    (ii) System interventions, including the establishment or alteration 
of practice guidelines.
    (iii) Improving performance.
    (iv) Systematic follow-up on the effect of the interventions.
    (2) Each project must address the entire population to which the 
measurement specified in paragraph (d)(1)(i) of this section is 
relevant.
    (3) CMS establishes M+C organization and M+C plan-specific 
obligations for the number and distribution of projects among the 
required clinical and nonclinical areas, in accordance with paragraphs 
(d)(4) and (d)(5) of this section, to ensure that the projects are 
representative of the entire spectrum of clinical and nonclinical care 
areas associated with a plan.
    (4) The required clinical areas include:
    (i) Prevention and care of acute and chronic conditions.
    (ii) High-volume services.
    (iii) High-risk services.
    (iv) Continuity and coordination of care.
    (5) The required nonclinical areas include:
    (i) Appeals, grievances, and other complaints.
    (ii) Access to, and availability of, services.
    (6) In addition to requiring that the organization initiate its own 
performance improvement projects, CMS may require that the organization-
-
    (i) Conduct particular performance improvement projects that are 
specific to the organization; and
    (ii) Participate in national or statewide performance improvement 
projects.
    (7) For each project, the organization must assess performance under 
the plan using quality indicators that are--
    (i) Objective, clearly and unambiguously defined, and based on 
current clinical knowledge or health services research; and
    (ii) Capable of measuring outcomes such as changes in health status, 
functional status and enrollee satisfaction, or valid proxies of those 
outcomes.
    (8) Performance assessment on the selected indicators must be based 
on systematic ongoing collection and analysis of valid and reliable 
data.
    (9) Interventions must achieve improvement that is significant and 
sustained over time.
    (10) The organization must report the status and results of each 
project to CMS as requested.
    (e) Requirements for M+C PPO plans, non-network MSA plans, and M+C 
private fee-for-service plans. An organization offering an M+C plan, 
non-network MSA plan, or private fee-for-service plan must do the 
following:
    (1) Measure performance under the plan using standard measures 
required by CMS and report its performance to CMS. The standard measures 
may be specified in uniform data collection and reporting instruments 
required by CMS and will relate to--
    (i) Clinical areas including effectiveness of care, enrollee 
perception of care, and use of services; and
    (ii) Nonclinical areas including access to and availability of 
services, appeals and grievances, and organizational characteristics.

[[Page 861]]

    (2) Evaluate the continuity and coordination of care furnished to 
enrollees.
    (3) If the organization uses written protocols for utilization 
review, the organization must--
    (i) Base those protocols on current standards of medical practice; 
and
    (ii) Have mechanisms to evaluate utilization of services and to 
inform enrollees and providers of services of the results of the 
evaluation.
    (f) Requirements for all types of plans--(1) Health information. For 
all types of plans that it offers, an organization must--
    (i) Maintain a health information system that collects, analyzes, 
and integrates the data necessary to implement its quality assessment 
and performance improvement program;
    (ii) Ensure that the information it receives from providers of 
services is reliable and complete; and
    (iii) Make all collected information available to CMS.
    (2) Program review. For each plan, there must be in effect a process 
for formal evaluation, at least annually, of the impact and 
effectiveness of its quality assessment and performance improvement 
program.
    (3) Remedial action. For each plan, the organization must correct 
all problems that come to its attention through internal surveillance, 
complaints, or other mechanisms.

[63 FR 35082, June 26, 1998, as amended at 65 FR 40323, June 29, 2000]