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<regulation prefix="Regulation" num=".21" citation="COMAR 10.09.44.21" title_num="10" subtitle_num="09" chapter_num="44" heading="Payment Rates and Procedures.">
  <paragraph num="A.">
    <text>The Department shall:</text>
    <paragraph num="(1)">
      <text>Pay the PACE provider for each PACE participant based on the fixed capitation payment or payments specified in §E of this regulation; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Calculate the capitation payment or payments for the PACE provider using the methodology described in §B of this regulation.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Calculation of PACE Capitation Payments.</text>
    <paragraph num="(1)">
      <text>PACE capitation payments are calculated on a per-member per-month basis.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Capitation payments are specific to both the regional service area, as described in §C of this regulation, and the participant age and coverage status, as described in §D of this regulation.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Capitation payments are calculated using an AWOP analysis, which is determined using a base period of Medicaid fee for service participant data that:</text>
      <paragraph num="(a)">
        <text>Spans two State fiscal years;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Is specific to the PACE eligible population;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Is weighted by the expected ratio of participants receiving long-term care services in institutional and community-based settings; and</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Excludes participants enrolled in the following programs:</text>
        <paragraph num="(i)">
          <text>Medicaid managed care programs;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>PACE; and</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Home and community-based services waivers operated by the Developmental Disabilities Administration.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>The Department shall set the PACE capitation rate as 98 percent of the calculated AWOP.</text>
    </paragraph>
    <paragraph num="(5)">
      <text>The Department shall recalculate PACE capitation rates annually by trending forward the base period by 1 year.</text>
    </paragraph>
    <paragraph num="(6)">
      <text>Certain categories of costs not associated with a PACE-eligible, nursing facility-certified population are excluded from the claims data.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Capitation rates shall be categorized by regional service area as follows:</text>
    <paragraph num="(1)">
      <text>Baltimore Metro — Baltimore City and Anne Arundel, Baltimore, Carroll, Cecil, Harford, and Howard counties;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Washington Metro — Calvert, Charles, Frederick, Montgomery, Prince George’s, and St. Mary’s counties; and</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Rural Regions — Allegany, Caroline, Dorchester, Garrett, Kent, Queen Anne’s, Somerset, Talbot, Washington, Wicomico, and Worcester counties.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>Capitation rates shall be categorized by participant age and coverage status as follows:</text>
    <paragraph num="(1)">
      <text>Ages 55—64, Medicaid-only;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Ages 65 and over, Medicaid-only;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Ages 55—64, dual eligibility; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Ages 65 and over, dual eligibility.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>For services provided on or after January 1, 2024, the Department shall pay the PACE provider at the following per-member per-month capitation rates:</text>
  </paragraph>
  <paragraph num="F.">
    <text>The capitation rate paid by the Department to the PACE provider for a participant shall be accepted as payment in full for the PACE provider benefit package provided by the PACE provider according to its PACE Organization Provider Agreement, and additional charge may not be made to the participant, the Department, or any other entity except as provided under Regulation .05 of this chapter.</text>
  </paragraph>
  <paragraph num="G.">
    <text>The Department shall recover any overpayments made to the PACE provider.</text>
  </paragraph>
  <paragraph num="H.">
    <text>A capitation payment may not be made to the PACE provider on behalf of a participant for whom fee-for-service or a capitation payment for the same period has been made by the Department to any other provider, HMO, or managed care organization.</text>
  </paragraph>
  <paragraph num="I.">
    <text>Capitation payment may not be made to the PACE provider on behalf of a participant if the Department's eligibility verification system indicates that the participant is not eligible for Medicaid benefits.</text>
  </paragraph>
  <paragraph num="J.">
    <text>The Department shall provide retroactive capitation to the PACE provider on behalf of a participant when:</text>
    <paragraph num="(1)">
      <text>The Department's eligibility verification system indicates that the participant has established a retroactive eligibility period to a previous PACE enrollment period; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Services were provided by the PACE provider and no other fee-for-service provider.</text>
    </paragraph>
  </paragraph>
  <paragraph num="K.">
    <text>Program Changes.</text>
    <paragraph num="(1)">
      <text>Amendments, revisions, or additions to the State Plan or the State or federal regulations, guidelines, or policies shall, insofar as they affect the scope or nature of Program benefits available to eligible persons, be considered as amendments to the PACE provider benefit package, unless the Department shall otherwise notify the PACE provider.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The Department or PACE may determine that a change in the PACE provider benefit package, or in the Program's reporting or other administrative requirements, is a substantial modification of the financial or other responsibilities of the PACE provider, and so may request an adjustment in the PACE provider's capitation payment.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Refusal of an adjustment in the PACE provider's capitation payment by the other party shall, at the discretion of the party making the request, be grounds for termination of the PACE Organization Provider Agreement.</text>
    </paragraph>
  </paragraph>
</regulation>