[Code of Federal Regulations]

[Title 42, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR433.113]



[Page 91-92]

 

                         TITLE 42--PUBLIC HEALTH

 

  CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF 

                  HEALTH AND HUMAN SERVICES (CONTINUED)

 

PART 433_STATE FISCAL ADMINISTRATION--Table of Contents

 

Subpart C_Mechanized Claims Processing and Information Retrieval Systems

 

Sec.  433.113  Reduction of FFP for failure to operate a system and 



obtain initial approval.



    (a) Except as waived under Sec.  433.130 or 433.131, FFP will be 

reduced as specified in paragraph (b) of this section unless the 

Medicaid agency has in continuous operation a mechanized claims 

processing and information retrieval system that meets the following 

conditions:

    (1) The APD for the system was approved by CMS;

    (2) The system is operational by September 30, 1985; and

    (3) The system is initially approved by the last day of the fourth 

quarter that begins after the date the system



[[Page 92]]



became operational as determined by CMS.

    (b) CMS will reduce FFP in expenditures for compensation and 

training of skilled professional medical personnel and support staff 

under section 1903(a)(2) of the Act, and for general administration 

under section 1903(a)(7) of the Act, by the following increments applied 

separately to those two categories of expenditures:

    (1) Five percentage points for the first two quarters beginning 

after a deadline in paragraph (a) of this section;

    (2) An additional five percentage points during each additional two-

quarter period, through the quarter in which the State achieves 

compliance with the conditions for initial operation or initial approval 

of an operating system. FFP reductions will not exceed 25 percentage 

points for each type of reduction.

    (c) The amount of FFP (determined under section 1903(a)(3)(B)) that 

would be available retroactively for operating a system that later 

receives initial approval will be reduced by CMS by the same percentage 

points for the identical periods of time described in subparagraph 

(b)(1) of this section, until the system is initially approved. No 

reduction will be made after the first quarter during which the system 

is initially approved.



[50 FR 30847, July 30, 1985, as amended at 54 FR 41973, Oct. 13, 1989]