[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: 42CFR438.50]



[Page 217-218]

 

                         TITLE 42--PUBLIC HEALTH

 

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

                  HEALTH AND HUMAN SERVICES (CONTINUED)

 

PART 438_MANAGED CARE--Table of Contents

 

                    Subpart B_State Responsibilities

 

Sec.  438.50  State Plan requirements.





    (a) General rule. A State plan that requires Medicaid recipients to 

enroll in



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managed care entities must comply with the provisions of this section, 

except when the State imposes the requirement--

    (1) As part of a demonstration project under section 1115 of the 

Act; or

    (2) Under a waiver granted under section 1915(b) of the Act.

    (b) State plan information. The plan must specify--

    (1) The types of entities with which the State contracts;

    (2) The payment method it uses (for example, whether fee-for-service 

or capitation);

    (3) Whether it contracts on a comprehensive risk basis; and

    (4) The process the State uses to involve the public in both design 

and initial implementation of the program and the methods it uses to 

ensure ongoing public involvement once the State plan has been 

implemented.

    (c) State plan assurances. The plan must provide assurances that the 

State meets applicable requirements of the following statute and 

regulations:

    (1) Section 1903(m) of the Act, for MCOs and MCO contracts.

    (2) Section 1905(t) of the Act, for PCCMs and PCCM contracts.

    (3) Section 1932(a)(1)(A) of the Act, for the State's option to 

limit freedom of choice by requiring recipients to receive their 

benefits through managed care entities.

    (4) This part, for MCOs and PCCMs.

    (5) Part 434 of this chapter, for all contracts.

    (6) Section 438.6(c), for payments under any risk contracts, and 

Sec.  447.362 of this chapter for payments under any nonrisk contracts.

    (d) Limitations on enrollment. The State must provide assurances 

that, in implementing the State plan managed care option, it will not 

require the following groups to enroll in an MCO or PCCM:

    (1) Recipients who are also eligible for Medicare.

    (2) Indians who are members of Federally recognized tribes, except 

when the MCO or PCCM is--

    (i) The Indian Health Service; or

    (ii) An Indian health program or Urban Indian program operated by a 

tribe or tribal organization under a contract, grant, cooperative 

agreement or compact with the Indian Health Service.

    (3) Children under 19 years of age who are--

    (i) Eligible for SSI under title XVI;

    (ii) Eligible under section 1902(e)(3) of the Act;

    (iii) In foster care or other out-of-home placement;

    (iv) Receiving foster care or adoption assistance; or

    (v) Receiving services through a family-centered, community-based, 

coordinated care system that receives grant funds under section 

501(a)(1)(D) of title V, and is defined by the State in terms of either 

program participation or special health care needs.

    (e) Priority for enrollment. The State must have an enrollment 

system under which recipients already enrolled in an MCO or PCCM are 

given priority to continue that enrollment if the MCO or PCCM does not 

have the capacity to accept all those seeking enrollment under the 

program.

    (f) Enrollment by default. (1) For recipients who do not choose an 

MCO or PCCM during their enrollment period, the State must have a 

default enrollment process for assigning those recipients to contracting 

MCOs and PCCMs.

    (2) The process must seek to preserve existing provider-recipient 

relationships and relationships with providers that have traditionally 

served Medicaid recipients. If that is not possible, the State must 

distribute the recipients equitably among qualified MCOs and PCCMs 

available to enroll them, excluding those that are subject to the 

intermediate sanction described in Sec.  438.702(a)(4).

    (3) An ``existing provider-recipient relationship'' is one in which 

the provider was the main source of Medicaid services for the recipient 

during the previous year. This may be established through State records 

of previous managed care enrollment or fee-for-service experience, or 

through contact with the recipient.

    (4) A provider is considered to have ``traditionally served'' 

Medicaid recipients if it has experience in serving the Medicaid 

population.



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