[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: 42CFR433.120]



[Page 93-94]

 

                         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.  433.120  Procedures for reduction of FFP after reapproval review.



    (a) If CMS determines after the reapproval review that the system no 

longer meets the conditions of reapproval in Sec.  433.119, CMS will 

reduce FFP for system operations for at least four quarters. However, no 

system will be subject to reduction of FFP for at least the first four 

quarters after the quarter in which the system is initially approved as 

eligible for 75 percent FFP.



[[Page 94]]



    (b) CMS will reduce FFP in expenditures for system operations from 

75 percent to no more than 70 percent and no less than 50 percent; 

however, CMS will not reduce FFP by more than 10 percentage points in 

any four-quarter period. The percentage to which the FFP is reduced will 

depend primarily on the following criteria:

    (1) The number of conditions judged unsatisfactory;

    (2) The extent to which conditions were not met;

    (3) The significance of the unsatisfactory conditions in overall 

mechanized claims processing and information retrieval system 

operations; and

    (4) The actual and potential program impact attributable to the 

unsatisfactory conditions.



[50 FR 30848, July 30, 1985, as amended at 54 FR 41974, Oct. 13, 1989]