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<regulation prefix="Regulation" num=".04" citation="COMAR 10.67.09.04" title_num="10" subtitle_num="67" chapter_num="09" heading="MCO Actions and Decisions.">
  <paragraph num="A.">
    <text>For certain services to enrollees that require preauthorization the following conditions apply:</text>
    <paragraph num="(1)">
      <text>For standard authorization decisions, the MCO shall make a determination within 2 business days of receipt of necessary clinical information, but not later than 14 calendar days from the date of the initial request so as not to adversely affect the health of the enrollee;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>For expedited authorization decisions, the MCO shall make a determination and provide notice no later than 72 hours after receipt of the request for service if the provider indicates or the MCO determines that the standard time frame stated in §A(1) of this regulation could jeopardize:</text>
      <paragraph num="(a)">
        <text>The enrollee’s life;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The enrollee’s health; or</text>
      </paragraph>
      <paragraph num="(c)">
        <text>The enrollee’s ability to attain, maintain, or regain maximum function;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>For all covered outpatient drug authorization decisions, the MCO shall provide notice by telephone or other telecommunication device within 24 hours of a preauthorization request in accordance with section 1927(d)(5)(A) of the Social Security Act;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Standard and expedited authorization decisions may be extended up to 14 calendar days, if the following conditions are met:</text>
      <paragraph num="(a)">
        <text>The enrollee or the provider requests an extension; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The MCO justifies to the Department, upon request, a need for additional information and how the extension is in the enrollee’s interest; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>If the MCO successfully justifies extending the standard service authorization decision time frame, the MCO shall:</text>
      <paragraph num="(a)">
        <text>Give the enrollee written notice of the reason for the decision to extend the time frame;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Inform the enrollee of the right to file a grievance if he or she disagrees with the extension decision; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Issue and carry out the MCO’s determination as expeditiously as the enrollee’s health condition requires but not later than the date the extension expires.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Any decision to deny a service authorization request or to authorize a service in an amount, duration, or scope that is less than requested:</text>
    <paragraph num="(1)">
      <text>Shall be made by a health care professional who has appropriate clinical expertise in treating the enrollee's condition or disease; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>May not be based solely on diagnosis, type of illness, or condition.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>An MCO shall ensure that compensation to individuals or entities that conduct utilization management activities is not structured to provide incentives for the individual or entity to deny, limit, or discontinue medically necessary services to any enrollee.</text>
  </paragraph>
  <paragraph num="D.">
    <text>Notices of a decision to deny a standard authorization shall be provided to the enrollee and the requesting provider within 72 hours from the date of determination.</text>
  </paragraph>
  <paragraph num="E.">
    <text>An MCO shall give an enrollee written notice of any action within the following time frames:</text>
    <paragraph num="(1)">
      <text>At least 10 days before the action for termination, suspension, or reduction of a previously authorized covered service;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The notice period is reduced to 5 days if probable enrollee fraud has been verified;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>By the date of the action for the following:</text>
      <paragraph num="(a)">
        <text>The MCO has factual information confirming the death of an enrollee;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>A signed written enrollee statement requesting service termination or giving information requiring termination or reduction of services, where the enrollee understands that this is the result of supplying that information;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>The enrollee's admission to an institution where they are ineligible for further services;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>The enrollee's address is unknown and mail directed to the enrollee has no forwarding address;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>The enrollee has been accepted for Medicaid services by another jurisdiction;</text>
      </paragraph>
      <paragraph num="(f)">
        <text>The enrollee's physician prescribes a change in the level of medical care; or</text>
      </paragraph>
      <paragraph num="(g)">
        <text>An adverse determination made with regard to the preadmission screening requirements for nursing facility admissions; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>As soon as practicable for nursing facility transfers or discharges when:</text>
      <paragraph num="(a)">
        <text>The safety or health of individuals in the facility would be endangered;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The enrollee’s health improves sufficiently to allow a more immediate transfer or discharge; or</text>
      </paragraph>
      <paragraph num="(c)">
        <text>An immediate transfer or discharge is required by the enrollee’s urgent medical needs; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>For denial of payment, at the time of any action affecting the claim.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>A notice of adverse action shall:</text>
    <paragraph num="(1)">
      <text>Be in writing;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Meet the following requirements:</text>
      <paragraph num="(a)">
        <text>Be translated for enrollees who speak prevalent non-English languages;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Include language clarifying that oral interpretation is available for all languages and how to access it;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Be written in an easily understood language and format that takes into consideration enrollees with special needs;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Be available in alternative formats; and</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Inform enrollees that information is available in alternative formats and how to access those formats; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>Contain the following information:</text>
      <paragraph num="(a)">
        <text>The action the MCO has made or intends to make;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The reasons for the action, including the right for the enrollee to be provided upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the MCO’s action, including:</text>
        <paragraph num="(i)">
          <text>Medical necessity criteria; and</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Any processes, strategies, or evidentiary standards used in setting coverage limits;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(c)">
        <text>The enrollee’s right to request an appeal of the MCO’s action, including information on:</text>
        <paragraph num="(i)">
          <text>Exhausting the MCO’s one level of appeal; and</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>The right to request a State fair hearing;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(d)">
        <text>The procedures for exercising the rights described;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>The circumstances under which an appeal process can be expedited and how to request it;</text>
      </paragraph>
      <paragraph num="(f)">
        <text>The enrollee’s right to have benefits continue pending resolution of the appeal;</text>
      </paragraph>
      <paragraph num="(g)">
        <text>How to request that benefits be continued; and</text>
      </paragraph>
      <paragraph num="(h)">
        <text>The circumstances under which the enrollee may be required to pay the costs of the services.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>If an MCO does not make an authorization decision within the times specified in §A of this regulation, the untimely decision is considered a denial and thus an adverse action subject to the notice requirements in §§C and E of this regulation.</text>
  </paragraph>
</regulation>