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<regulation prefix="Regulation" num=".17" citation="COMAR 10.67.04.17" title_num="10" subtitle_num="67" chapter_num="04" heading="Subcontractual Relationships.">
  <paragraph num="A.">
    <text>Subcontracting Permitted.</text>
    <paragraph num="(1)">
      <text>Consistent with this regulation, an MCO may subcontract services that it is required to provide to its enrollees under COMAR 10.67.06 to a health care provider that is licensed, certified, or otherwise legally authorized to provide those services.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>An MCO may not discriminate for the participation, reimbursement, or indemnification of any provider who is acting within the scope of the provider's license or certification under applicable State law, solely on the basis of that license or certification.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>An MCO shall have written agreements with subcontractors that comply with 42 CFR §§438.214 and 455.105, as amended, and include at least the following:</text>
      <paragraph num="(a)">
        <text>A provision that the subcontractor be subject to all of the requirements to which the MCO is subject under its contract with the Department and pursuant to the Department's regulations;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>A clear description of the services to be performed under the subcontract sufficient to definitively inform the Department which of the MCO's obligations have been subcontracted;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>A provision for the subcontractor's release to the MCO and to the Department, upon request, of any information necessary for the MCO to perform any of its contractual and regulatory obligations under its contract with the Department, including, but not limited to, its records, reporting, and quality assurance duties;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>A provision requiring that the subcontractor complies with all State and federal requirements regarding audit, inspection, and evaluation;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>A provision that copies of the subcontractor's medical records pertaining to the MCO's enrollees shall be furnished to the MCO upon request for transfer to a subsequent provider in the event of a termination of the subcontract;</text>
      </paragraph>
      <paragraph num="(f)">
        <text>A provision to the effect that no termination of the subcontract shall be effective without prior written notice to the Department;</text>
      </paragraph>
      <paragraph num="(g)">
        <text>An agreement that the subcontractor will look solely to the MCO for compensation for covered services provided to the MCO's enrollees under the subcontract;</text>
      </paragraph>
      <paragraph num="(h)">
        <text>An assurance that evidence of the subcontractor's professional liability coverage will be submitted annually to the MCO;</text>
      </paragraph>
      <paragraph num="(i)">
        <text>A provision that no assignment of the subcontract by the subcontractor is effective without prior written notice to the Department;</text>
      </paragraph>
      <paragraph num="(j)">
        <text>If the subcontractor is authorized by the MCO to make referrals, a provision requiring the subcontractor to use the uniform consultation referral form adopted by the Maryland Insurance Administration at COMAR 31.10.12.06;</text>
      </paragraph>
      <paragraph num="(k)">
        <text>A provision to the effect that each provision of the subcontract that is required under this section supersede and be controlling over any conflicting terms that appear in the subcontract;</text>
      </paragraph>
      <paragraph num="(l)">
        <text>A provision for revocation of the delegation of activities or obligations, or specifying other remedies in instances where the Department or the MCO determines that the subcontractor has not performed satisfactorily;</text>
      </paragraph>
      <paragraph num="(m)">
        <text>A provision stating that the MCO has the right to audit the subcontractor pursuant to 42 CFR §438.230(c)(3)(i) for 10 years from the final date of the contract period or from the date of completion of any audit, whichever is later; and</text>
      </paragraph>
      <paragraph num="(n)">
        <text>A provision to the effect that all providers and subcontractors are subject to a grievance and appeal system consistent with the requirements of COMAR 10.67.09.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>An MCO may not subcontract for hospital services with a hospital or an entity related to a hospital unless that hospital is in compliance with COMAR 10.37.12 (fixed price contracting regulations).</text>
    </paragraph>
    <paragraph num="(5)">
      <text>An MCO may not prohibit or otherwise restrict a health care professional, acting within the lawful scope of practice, from advising or advocating on behalf of an enrollee who is the provider's patient for:</text>
      <paragraph num="(a)">
        <text>The enrollee's health status, medical care, or treatment options, including any alternative treatment that may be self-administered;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Any information the enrollee needs in order to decide among all relevant treatment options;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>The risks, benefits, and consequences of treatment or nontreatment; or</text>
      </paragraph>
      <paragraph num="(d)">
        <text>The enrollee's right to participate in decisions regarding the enrollee's own health care, including the right to refuse treatment, and to express preferences about future treatment decisions.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Subcontractual Relations Reporting Requirements.</text>
    <paragraph num="(1)">
      <text>An MCO shall submit its standard subcontract to the Department for its approval at least 30 days in advance of the MCO entering into any subcontracts covered by this regulation.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>An MCO shall submit to the Department for its prior approval material modifications to, or deviations from, its approved standard subcontract.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>An MCO shall submit to the Department a specification of procedures to be followed when reallocating responsibility in the event of a change in obligations in its approved standard subcontract.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Network Provider Termination.</text>
      <paragraph num="(a)">
        <text>When an MCO and provider terminate their contract the MCO shall provide the Department with a written notice regarding the termination.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>If the MCO is terminating the contract, the notice required in §B(4)(a) of this regulation shall be provided at the later of:</text>
        <paragraph num="(i)">
          <text>30 calendar days before the effective date of the termination; or</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>15 calendar days after receipt or issuance of the termination notice.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(c)">
        <text>If the provider is terminating the contract, the notice required in §B(4)(a) of this regulation shall be provided within 15 days after the MCO receives the notice from the terminating provider.</text>
      </paragraph>
      <paragraph num="(d)">
        <text>If 50 to 99 enrollees are affected, the notice shall contain the:</text>
        <paragraph num="(i)">
          <text>Date of termination;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Name or names of providers or subcontractors terminating;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Number of enrollees affected; and</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>MCO's plan for transitioning enrollees to other providers.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(e)">
        <text>If more than 99 enrollees are affected, the MCO shall provide the Department with a Department-approved termination survey.</text>
      </paragraph>
      <paragraph num="(f)">
        <text>In determining the number of enrollees affected under §B(4)(d) and (e) of this regulation, the MCO shall consider:</text>
        <paragraph num="(i)">
          <text>For PCPs, the number of enrollees assigned to the PCP; and</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>For all other providers, the number of enrollees who are in active treatment or who have had an encounter with the provider in the previous 12 months.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>Subcontractor Termination.</text>
      <paragraph num="(a)">
        <text>When an MCO terminates a subcontract impacting its operations, covered services, or enrollees, the MCO shall provide the Department with written notice regarding the termination that describes:</text>
        <paragraph num="(i)">
          <text>The dollar amount of the subcontract;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>The effect of the termination on MCO operations;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>The effect of the termination on MCO covered services or enrollees; and</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>The MCO’s plan to replace the subcontractor, if applicable.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>If the termination of the subcontract impacts MCO operations, the notice required in §B(5)(a) of this regulation shall be provided at least 90 days before the effective date of the termination.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>By entering into a subcontract to provide health care services on behalf of an MCO, the subcontractor becomes subject to all the requirements concerning audits and inspections by the Department and other government agencies that are imposed upon the MCO by statute or regulation, or by its contract with the Department.</text>
  </paragraph>
  <paragraph num="D.">
    <text>An MCO shall monitor the performance of its subcontractors, including, but not limited to, the areas of enrollee and provider complaints, access issues, quality assurance activities, record keeping, and reporting requirements.</text>
  </paragraph>
  <paragraph num="E.">
    <text>An MCO shall report to the Department any material deviations from required procedures by its subcontractor which, in the MCO's judgment, can be expected to have a significant effect on quality of care, or on enrollees' ability to access care.</text>
  </paragraph>
</regulation>