Medicaid Program Integrity Manual (Pub. 100-15)
mpi115_Appendices
Length: 11,143 wordsOfficial source
Medicaid Program Integrity Manual
Appendices
Table of Contents
(Rev. 14174; Issued: 08-28-25)
Transmittals for Appendices
A
Close-Out Letter Sample
B
Closing Summary Template
C
Desk or Field Audit Notification Letter Sample
D
Medicaid Major Case Coordination Pre/Post Meeting Report – Work Details
Executive Summary Tip Sheet
E
Final Findings Report – State Transmittal Letter Template Sample
F
Final Findings Report – State Transmittal Letter Template for FFS with No MCO
Recoupment
G
Final Findings Report – State Transmittal Letter Template for No MCO
Recoupment
H
Final Findings Report Addendum – State Transmittal Letter Sample
I
Information Exchange Agreement (IEA)
J
Joint Operating Agreement (JOA)
K
Medicaid Program Integrity Manual Acronyms
L
State Collaboration Vetting Form Sample
M
Vulnerability Template
N
State Vetting Form for the Managed Care Plan Project
O
Analytic Findings Report Sample
Appendix A
Close-Out Letter Sample
(Rev. 11948; Issued:04-13-23, Effective: 05-15-23; Implementation: 05-15-23)
Date
Provider Name Attn:
Provider Address
Provider Number:
NPI Number:
Dear PROVIDER NAME:
UPIC NAME has conducted an audit on behalf of the Centers for Medicare & Medicaid
Services (CMS), Medicaid Integrity Program. This audit examined claims for AUDIT
ISSUE for the time period DATE through DATE.
Based upon this audit, CMS has determined no further review is necessary at this time.
You should retain the records pertaining to the items and services that were the subject of
this audit in accordance with applicable state and federal law (including Section
1902(a)(4) of the Social Security Act and 42 CFR 431.17). You are advised that all the
claims that were the subject of this audit may be re-audited or reinvestigated at a future
date by the state of STATE NAME, CMS, or other state or federal agencies or
authorities.
Appendix B
Closing Summary Template
(Rev. 11948; Issued:04-13-23, Effective: 05-15-23; Implementation: 05-15-23)
Medicaid Investigation/Audit Closing Summary
Unified Program Integrity Contractor
Self-explanatory
Jurisdiction
Self-explanatory
UPIC Internal Tracking ID
Self-explanatory
UCM ID
Self-explanatory
Investigation/Audit Dates
Opened:
Closed:
State Medicaid Agency
Self-explanatory
Provider Type
Self-explanatory
Provider Name
Provider list attachment permissible
Self-explanatory
Provider NPI
Self-explanatory
Description of Audit
In this space, provide a general summary of the investigation, to include any associated
allegations.
Investigation/Audit Lead Source(s)
In this space, provide a description of the source that prompted the opening of this
investigation. Examples may be OIG, State, CPI, FPS Alert, HFPP, etc.
Data Source
In this space, provide a description of the data sources used during the investigation/audit.
Examples may include but is not limited to TMSIS, MMIS, HFPP, State, PDMP, FQHCs, etc.
Closure Reason
Self-explanatory
Next Steps
In this space, provide a description of the next steps that may include but is not limited to
referrals, 6 month look back, MFCU, education, etc.
Additional Notes & Documentation
In this space, please provide any additional information and/or description of additional
documents to be attached to this form. Examples may include separate list of related providers
that could not fit in the provided fields above, provider address, citation of rules/regulations,
etc.
Appendix C
Desk or Field Audit Notification Letter Sample
(Rev. 11948; Issued:04-13-23, Effective: 05-15-23; Implementation: 05-15-23)
Date
Provider Name Attn:
Provider Address:
Provider Number:
NPI Number:
Dear PROVIDER NAME:
This is to inform you that you or your facility has been selected for an audit of claims
billed to Medicaid with dates of services from DATE through DATE. The objective of
our audit is to determine whether the claims for services were billed and paid in
accordance with applicable federal and state Medicaid laws, regulations, and policies.
Section 6034 of the Deficit Reduction Act of 2005 (DRA) established the Medicaid
Integrity Program, through which the Centers for Medicare & Medicaid Services (CMS)
shall conduct reviews and audits of claims submitted by Medicaid providers. As a
Medicaid provider and a recipient of funds under the state Medicaid program, you are
subject to these reviews and audits. The DRA authorizes CMS to utilize contractors,
including UPIC NAME, to conduct such reviews and audits.
In accordance with the DRA and other applicable federal laws, you are required to
provide CMS and its contractor, UPIC NAME, with timely, unrestricted access to all
documents and records that relate in any way to Medicaid claims and payments.
THE FOLLOWING LANGUAGE IS RELATED TO A DESK AUDIT:
To facilitate the audit, we are requesting that all documentation related to the listed claim
lines on the enclosed claims listing be assembled and provided to UPIC NAME. We have
included a list of types of documentation that may be required to support the claims
billed. The documents must be legible and arranged in an orderly manner. Be aware that
this list is not all inclusive and that UPIC NAME may request additional documentation
necessary to conduct and complete its audit. The requested information should be
forwarded to UPIC NAME at the following address within 30 business days from receipt
of this letter.
UPIC NAME
ATTN
ADDRESS
THE FOLLOWING LANGUAGE IS RELATED TO A FIELD AUDIT:
An auditor from UPIC NAME, will be contacting you in the near future to schedule an
entrance conference and discuss the audit process, which will include an on-site visit.
Upon arrival at the on-site visit, UPIC NAME, will conduct an entrance conference, and
will need adequate workspace to conduct the audit.
During the entrance conference, UPIC NAME, will request an overview of your
organization, including your Medicaid claims submission process, any policies and
procedures related to this process, and an organizational chart.
To facilitate the audit, we are requesting that certain information shown in the enclosed
document be assembled and provided to UPIC NAME, at the entrance conference.
The documents must be legible and arranged in an orderly manner. This list is not all
inclusive, and UPIC NAME may request additional documentation necessary to conduct
and complete the audit.
Any applicable state sanctions may be imposed against you if you fail to provide the
information that is requested. Depending on the laws in your state, sanctions may include,
but not be limited to, vendor hold and/or exclusion from participation as a provider in the
state Medicaid program, until the matter is resolved. Additionally, payments for services
for which you fail to produce records to UPIC NAME will be recovered from you.
Appendix D
Medicaid Major Case Coordination Pre/Post Meeting Report – Work
Details
Executive Summary Tip Sheet
(Rev. 13099; Issued: 04-10-25; Effective: 05-12-25; Implementation: 05-12-25)
The Executive Summary is a free text field that the UPIC should populate to convey
important information about the investigation. The information in this field should be a
high-level summary of the relevant activities that have occurred during the investigation
as well as any pertinent linkages and should be updated frequently. The UCM Medicaid
MCC Executive Summary Tip Sheet mirrors the type of information provided in the
Medicare MCC Executive Summary.
Items to Include in the Executive Summary
Allegation
A summary of the findings related to the allegation.
Background of the Investigation
Source of Data
A summary of key data findings.
A summary of investigative findings.
Detail associated with linked referring providers and/or linkages that would be of value
to CMS, LE, and stakeholders.
Zone Restriction (ZR) information to include current and past ZR information.
A summary of the linkages to other investigations or suspect providers (including
linkages to other UPIC/I-MEDIC investigations).
A summary of the ownership to include linkages to other entities that are of importance.
Billing company/management company information, e.g. name, etc.
Current and previous investigation information to include the date and the decisions
made and the reasons why this is being presented or re-presented at the MMCC, when
applicable.
Previous medical review information to include a high-level summary of the denials,
denial rates, and denial reasons (identify if any of the denials were technical in nature).
A summary describing if these denials are related to the same issues that are currently
being investigated.
A summary of any education that was issued to the provider (including education
provided by the State Medicaid Agency), including the dates the education was issued.
This would include any letters that outlined corrective actions to the provider.
State Policy References
Medicare Exposure
MCO/FFS Exposure
PDMP Review (if Opioid)
Patient Harm Assessment
Dollars at Risk
Identified Medicaid Overpayment Amount
UPIC Point of Contact, including e-mail
Note: State Administration Actions are the responsibility of the state once the case is
referred from the UPIC to the state or when the case was closed after it was a LE
referral. Updating State Administrative Actions and outcomes in UCM is highly
recommended.
Appendix E
Final Findings Report - State Transmittal Letter Template Sample
(Rev. 11948; Issued:04-13-23, Effective: 05-15-23; Implementation: 05-15-23)
<Date>
<Name of State Medicaid Director>, <Title>
<Address>
<City, State, Zip Code>
Dear < Mr. /Ms. State Medicaid Director Last Name>:
Enclosed is the final findings report for <provider name>, state Medicaid provider
#<number>/NPI #<number>. The investigation was conducted by <name of UPIC>, on
behalf of the Centers for Medicare & Medicaid Services (CMS), and concerned Medicaid
claims paid to <provider name>. The investigation encompassed the Medicaid claims <<,
associated with the managed care organization <MCO name>,> for services provided during
the period of <date audit period started > through <date audit period ended >.
<Name of state> is responsible for initiating the state recovery process and furnishing the
final findings report to the provider. CMS will not send a copy of the final findings report to
the provider. The final findings report identifies <$0,000.00> total computable,
(<$0,000.00> FFP) in unallowable claims paid to <provider name>. In accordance with
§1903(d)(2)(C) of the Social Security Act, <name of state> has one (1) year from the date of
this letter to recover or attempt to recover the overpayment from the provider before the
Federal share must be refunded to CMS. Any amounts actually collected prior to the
expiration of the one year time limit, however, remain due on the CMS-64 form for the
quarter in which collection is actually made (see
http://www.cms.gov/smdl/downloads/SMD10014.pdf).
Please report on Line 9C1, Recoveries: Fraud, Waste and Abuse Efforts, in the amount of
<$0,000.00> total computable (<$0,000.00> FFP) using feeder Form CMS-64.9C1, Line 5,
CMS Medicaid Integrity Contractors (MICs).
If you have any questions regarding this final findings report, please contact me by telephone
at (312) 353-2990 or by e-mail at Elizabeth.Lindner@cms.hhs.gov.
Sincerely,
Elizabeth Lindner, Director
Division of Field Operations - North
cc:
<Name of State PI Director>, <State> PI Director
<UPIC contact>
Robert Lane, CMS Division of Financial Operations, FMG, CMCS
Leticia Barraza, CMS Division of Financial Operations, FMG, CMCS
Dorothy Ferguson, CMS Division of Financial Operations, FMG, CMCS
Appendix F
Final Findings Report – State Transmittal Letter Template for FFS
with No MCO Recoupment
(Rev. 11948; Issued:04-13-23, Effective: 05-15-23; Implementation: 05-15-23)
<Date>
<Name of State Medicaid Director>, <Title>
<Address>
<City, State, Zip Code>
Dear < Mr. /Ms. State Medicaid Director Last Name>:
Enclosed is the final findings report for <provider name>, state Medicaid provider
#<number>/NPI #<number>. The investigation was conducted by <name of UPIC>, on
behalf of the Centers for Medicare & Medicaid Services (CMS), and concerned Medicaid
claims paid to <provider name>. The investigation encompassed both Medicaid fee-for-
service and managed care claims, associated with the managed care organization <MCO
name>, for services provided during the period of <date audit period started > through <date
audit period ended >.
The report identified a fee-for-service overpayment of <$0,000.00> total computable
(<$0,000.00> FFP) that should be recovered by the state. The report also identified
<$0,000.00> as overpayments paid by the managed care organizations; those should be
handled in accordance with the state’s managed care contract and the requirements of 42
CFR 438.608(d).
<Name of state> is responsible for initiating the state recovery process and furnishing the
final findings report to the provider. CMS will not send a copy of the final findings report to
the provider. In accordance with §1903(d)(2)(C) of the Social Security Act, <name of
state>has one (1) year from the date of this letter to recover or attempt to recover the
overpayment from the provider before the Federal share must be refunded to CMS. Any
amounts actually collected prior to the expiration of the one year time limit, however, are
due on the CMS-64 form for the quarter in which collection is actually made (see
http://www.cms.gov/smdl/downloads/SMD10014.pdf).
Please report on Line 9C1, Recoveries: Fraud, Waste and Abuse Efforts, the total
computable amount of <$0,000.00 amount state can recover only> (<$0,000.00 amount state
can recover only> FFP). This amount should first be entered on feeder Form CMS-64.9C1,
Line 5, CMS Medicaid Integrity Contractors (MICs).
If you have any questions regarding this final findings report, please contact me by telephone
at (312) 353-2990 or by e-mail at Elizabeth.Lindner@cms.hhs.gov.
Sincerely,
Elizabeth Lindner, Director
Division of Field Operations - North
Investigations and Audits Group
cc:
<Name of State PI Director>, <State> PI Director
<UPIC contact>
Robert Lane, CMS Division of Financial Operations, FMG, CMCS
Leticia Barraza, CMS Division of Financial Operations, FMG, CMCS
Dorothy Ferguson, CMS Division of Financial Operations, FMG, CMCS
Appendix G
Final Findings Report – State Transmittal Letter Template with No
MCO Recoupment
(Rev. 11948; Issued:04-13-23, Effective: 05-15-23; Implementation: 05-15-23)
<Date>
<Name of State Medicaid Director>, <Title>
<Address>
<City, State, Zip Code>
Dear < Mr. /Ms. State Medicaid Director Last Name>:
Enclosed is the final findings report for <provider name>, state Medicaid provider
#<number>/NPI #<number>. The investigation was conducted by <name of UPIC>, on
behalf of the Centers for Medicare & Medicaid Services (CMS), and concerned Medicaid
claims paid to <provider name>. The investigation encompassed Medicaid claims associated
with the managed care organization <MCO name> for services provided during the period of
<date audit period started > through <date audit period ended >.
The report identified <$0,000.00> in overpayments paid by <MCO name> to the provider.
This overpayment should be handled in accordance with the state’s managed care contract
and the requirements of 42 CFR 438.608(d). <State> is responsible for furnishing the final
findings report to the provider. CMS will not send a copy of the final findings report to the
provider.
If you have any questions regarding this final findings report, please contact me by telephone
at (312) 353-2990 or by e-mail at Elizabeth.Lindner@cms.hhs.gov.
Sincerely,
Elizabeth Lindner, Director
Division of Field Operations - North
cc:
<Name of State PI Director>, <State> PI Director
<UPIC contact>
Robert Lane, CMS Division of Financial Operations, FMG, CMCS
Leticia Barraza, CMS Division of Financial Operations, FMG, CMCS
Dorothy Ferguson, CMS Division of Financial Operations, FMG, CMCS
Appendix H
Final Findings Report Addendum – State Transmittal Letter Sample
(Rev. 11948; Issued:04-13-23, Effective: 05-15-23; Implementation: 05-15-23)
<Date>
<Name of State Medicaid Director>, <Title>
<State Medicaid PI Dept. Name
<Address>
<City, State, Zip Code>
Dear < Mr. /Ms. State Medicaid Director Last Name>:
On <date FFR issued>, the Centers for Medicare & Medicaid Services (CMS) issued a final
findings report for <provider name>, State Medicaid provider #<number>/NPI #<number>.
The investigation was conducted by <name of UPIC> on behalf of CMS and encompassed
the Medicaid claims<<,associated with the managed care organization <MCO name>,>> for
services provided during the period of <date audit period started > through <date audit
period ended >.
Subsequent to the issuance of the final findings report, issues relating <brief description of
discrepancies identified> were discovered. Consequently, the overpayment amount on
<Appendix or Attachment name >has been revised, resulting in the identified overpayment
changing from <$0,000.00> to <$0,000.00>. The Federal share has changed from
<$0,000.00> to <$0,000.00>.
The remainder of the above referenced final findings report shall remain unchanged and shall
continue in full force and effect.
Sincerely,
Elizabeth Lindner, Director
Division of Field Operations - North
cc:
<Name of State PI Director>, <State> PI Director
<UPIC contact>
Robert Lane, CMS Division of Financial Operations, FMG, CMCS
Leticia Barraza, CMS Division of Financial Operations, FMG, CMCS
Dorothy Ferguson, CMS Division of Financial Operations, FMG, CMCS
Appendix I
Information Exchange Agreement (IEA)
(Rev. 11948; Issued:04-13-23, Effective: 05-15-23; Implementation: 05-15-23)
INFORMATION EXCHANGE AGREEMENT
BETWEEN
THE CENTERS FOR MEDICARE & MEDICAID SERVICES
AND
PARTICIPATING STATE MEDICAID AGENCIES
FOR
THE DISCLOSURE OF MEDICARE AND MEDICAID INFORMATION
CMS Information Exchange No. 2017-17
Effective:
Expiration:
I.
PURPOSE, LEGAL AUTHORITY, AND DEFINITIONS
A. Purpose
The purpose of this Agreement is to establish the conditions, safeguards, and procedures
under which the Centers for Medicare & Medicaid Services (CMS) will conduct an
information exchange program with participating State Medicaid Agencies (SMA) that
will match and study claims, billing, and eligibility information to detect suspected
instances of programmatic fraud, waste and abuse (FW&A). To support the health
oversight activities of CMS, CMS and the SMA and/or its contractor(s) will provide
CMS and/or its contractor (hereinafter referred to as the “Custodian”) with Medicare and
Medicaid records pertaining to eligibility, claims, and billing information, which CMS
and/or the Custodian will match.
Utilizing fraud detection software, the information will then be used to identify patterns of
aberrant practices and abnormal patterns requiring further investigation. Aberrant
practices and abnormal patterns identified in this matching program that constitute
FW&A will involve individuals who are practitioners, providers and suppliers of
services, Medicare beneficiaries, Medicaid recipients, and other individuals whose
information may be maintained in the records.
Furthermore, § 6034(g) (1) (B) of the Deficit Reduction Act (DRA), Public Law (Pub.
L.aw)109-171; 42 United States Code (U.S.C.) § 1395ddd (g)(1)(B) provides for the
disclosure of certain information that will be derived from these CMS health oversight
activities to "States (including a Medicaid Fraud Control Unit (MFCU) described in §
1903(q))" of the Social Security Act (the Act). The SMA will therefore receive
information from CMS for use in their own FW&A programs.
B. Legal Authority
This IEA is executed to comply with the Privacy Act of 1974 (Title 5 U.S.C. § 552a), as
amended, and the Office of Management and Budget (OMB) Circular A-130, titled
“Managing Information as a Strategic Resource” at 81 Federal Register (FR) 49689 (July 28,
2016).
This Agreement provides for information exchange of matched data that is fully consistent
with the authority of the Secretary of the Department of Health and Human Services (HHS)
(the Secretary). Sections 1816 and 1842 of the Act permits the Secretary to make audits of
the records of providers as necessary to ensure that proper payments are made, to assist in the
application of safeguards against unnecessary utilization of services furnished by providers of
services and other persons to individuals entitled to benefits, and to perform other functions
as are necessary (Pub. L. 108-173 § 911, amending Title XVIII, § 1874A (42 U.S.C. §
1395kk-1).
Section 1857 of the Act provides that the Secretary, or any person or organization designated
by the Secretary shall have the right to “inspect or otherwise evaluate (i) the quality,
appropriateness, and timeliness of services performed under the contract” (42
U.S.C. § 1395w-27(d) (2) (A)); and “audit and inspect any books and records of [a Medicare
Advantage] organization that pertain to services performed or determinations of amounts
payable under the contract” (42 U.S.C. § 1395w-27(d) (2) (B)).
Furthermore, § 6402 (b) of the Affordable Care Act, which amended Title XVIII
§ 1860D-15(f)(2) of the Act, permits the use of Part D data “by officers, employees, and
contractors of HHS for the purposes of, and to the extent necessary in conducting oversight,
evaluation, and enforcement.”
Additionally, § 1874(b) of the Act authorizes the Secretary to “contract with any person,
agency, or institution to secure on a reimbursable basis such special data, actuarial
information, and other information as may be necessary in the carrying out of his functions
under Subchapter XVIII” (42 U.S.C. § 1395kk (b)).
Section 1893 of the Act establishes the Medicare Integrity Program (MIP), under which the
Secretary may contract with eligible entities to conduct a variety of program safeguard
activities, including fraud review employing equipment and software technologies that
surpass existing capabilities (42 U.S.C. § 1395ddd)). These entities are called Unified
Program Integrity Contractors (UPIC) and Medicare Drug Integrity Contractors (MEDIC).
Pursuant to the applicable state statutes and guidelines for the participating SMA charged
with the administration of the Medicaid program, disclosure of the Medicaid data pursuant to
this Agreement is for purposes directly connected with the administration of the Medicaid
program, in compliance with 42 Code of Federal Regulations (CFR) §§
431.300 through 431.307. Those purposes include the detection, prosecution, and deterrence
of FW&A in the Medicaid program. (See state signature page for the legal authority for each
specific state, if needed.)
CMS would cite to 45 CFR § 164.501 (definition of “Health Oversight Agency”) and 45 CFR
§ 164.512(d) as bases under which it believes the participating SMA may make the
contemplated disclosures of Medicaid data to CMS’ contractor. It would also note that under
§ 6034(g)(1)(B) of the DRA (42 U.S.C. 1395ddd(g)(1)(B)), CMS is required to disclose
certain data and statistical information collected by the Medi-Medi program to States and
other named parties. This data can then be used by each receiving state’s own FW&A
programs.
C. Definitions
For purposes of this Agreement, the following definitions apply:
1.
“Custodian” means the Medicaid and/or Medicare Integrity Program entity with
which CMS is contracting as its Business Associate under the Health Insurance
Portability and Accountability Act (HIPAA) Privacy and Security Rules at 45
Code of Federal Regulations (CFR) Parts 160 and 164 to perform the data
exchange of matched data and related functions described in this Agreement.
The term Custodian shall apply to a Unified Program Integrity Contractor (UPIC)
and/or the One Program Integrity Systems Integrator and shall be designated on
the Custodian signature page(s) of this Agreement;
2.
“Medicare” means the health insurance program established under Title XVIII of
the Act;
3.
“Medicaid” means the Medicaid program established under Title XIX of the
Act, together with other health care programs established under state law;
4.
“One Program Integrity” (One PI)- Serves as a system application, tool and
databases providing access to the CMS Integrated Data Repository (IDR) which
houses, at a minimum, the most current Medicare Parts A and B billing and
payment data;
5.
"State Medicaid Agency" means the single State agency administering or
supervising the administration of a State Medicaid plan.
II. DESCRIPTION OF EXCHANGE OF MATCHED DATA
The information provided by CMS on Medicare records and the participating SMA on
Medicaid records will be used in an information exchange program of matched data of
claims and eligibility in the Medicare and SMA programs. CMS and the participating SMA
data will be matched by linking elements of both programs that identify Medicare
beneficiaries and Medicaid Program recipients as well as providers who are common to both
programs. In addition to the provider and beneficiary/recipient identifiers, the match will
include claim data elements identifying services, procedures, diagnostic codes, prescription
drugs, and other related information that may permit detection of FW&A. The exchange
program of matched data described herein will be conducted via sophisticated fraud
detection software that identifies patterns and deviations there-from, in data sets to identify
potential FW&A.
As such, the software may match any or all fields in one record against any or all fields in
one or more other records. Because of the impossibility of precisely identifying beforehand
all possible matching combinations, this Agreement instead sets forth in Section III. A., a list
that includes, but is not limited to, examples of data elements contained in the Medicare and
Medicaid records subject to matching exchange.
In light of § 6034(g)(1)(B) of DRA, this information exchange of matched data will
ultimately enhance the ability of CMS and the participating SMA to detect FW&A, as well as
effectuate potential administrative actions for practitioners, providers, and suppliers in both
the Medicare and Medicaid programs. Combining claims and eligibility data from multiple
health programs provides a more complete picture of beneficiary/recipient care and provider
practices than can be gained by analyzing data from one program in isolation and likely will
reveal patterns of FW&A undetectable from analysis of data from any one particular
program. This premise will be thoroughly evaluated in conducting this exchange of matched
data, and to meet the DRA requirements. CMS may require additional reporting
requirements from the SMA to determine the outcomes of the administrative actions
identified from the matched data. To ensure adequate program evaluation, all Medicaid
related reports created by the Custodian pursuant to the exchange will be provided to the
participating SMA as they are provided to CMS as permitted by law.
Potential FW&A will be detected through data analysis and investigation. Identified
potential FW&A in the Medicare program will be more fully developed, and referred to
entities that may include the Medicare Administrative Contractors (MAC), UPIC, National
Benefit Integrity (NBI), Medicare Drug Integrity Contractor (MEDIC), and/or law
enforcement agencies including the HHS’ Office of Inspector General, the Department of
Justice, as well as other entities that are legally obligated to obtain such information.
Identified potential FW&A in the State Medicaid Program detected by the exchange of
matched data will be more fully developed and referred to appropriate SMA authorities, the
UPIC, and/or law enforcement agencies to include both HHS’ Office of Inspector General,
the Department of Justice, and the SMA’s Medicaid Fraud Control Unit (MFCU). Identified
potential FW&A that involve both the Medicare and SMA Programs will be more fully
developed and referred to the appropriate parties for further action.
III. DESCRIPTION OF RECORDS
The Privacy Act requires that each Exchange Agreement for matched data specify a
description of the records which will be matched and exchanged, including a sample of data
elements that will be used, the approximate number of records that will be matched, and the
projected starting and completion dates of the program.
Data Elements to be used for Matching
A. Data Elements Included in Records File by the participating SMA
The participating SMA shall make available to CMS records for the matching that, at a
minimum, will include the following data elements:
Recipient Identification
Recipient Identification Relational Recipient Claim Number
Recipient Claim Number Account Number Recipient Identification Code
Recipient Given Name Recipient Middle Name Recipient Surname Name Recipient Birth
Date
Social Security Numbers
Recipient Social Security Number Relational Recipient Social Security Number
Provider Data
Provider Identification Number (PIN) Provider National Provider Identifier (NPI)
Provider Social Security Number or Tax Identification Number
Procedure Data
HCPCS Procedure Codes CPT Procedure Codes
Diagnoses Data
ICD 9 Detail Diagnosis Code/ ICD 10 Detail Diagnosis Code (following transition) ICD 9
Primary Header Diagnosis Code/ ICD 10 Primary Header Diagnosis Code (following
transition)
B. Data Elements Included in Records File by CMS
CMS shall make available records for the matching that, at a minimum, will include the
following data elements:
Part A Entitlement
Beneficiary Part A Entitlement Relational Beneficiary Part A Entitlement Start Date
Beneficiary Part A Entitlement Termination Date Beneficiary Part A Entitlement Status Code
Part B Entitlement
Beneficiary Part B Entitlement Relational Beneficiary Part B Entitlement Start Date
Beneficiary Part B Entitlement Termination Date Beneficiary Part B Entitlement Status Code
Part D Entitlement
Beneficiary Part D Entitlement Relational Beneficiary Part D Entitlement Start Date
Beneficiary Part D Entitlement Termination Date Beneficiary Part D Entitlement Status Code
Entitlement Reason
Beneficiary Entitlement Reason Code Relational Beneficiary Entitlement Reason Code
Change Date Beneficiary Entitlement Reason Code
Provider Data
Provider Identification Number (PIN)
Provider National Provider Identifier (NPI)
Provider Social Security Number or Tax Identification Number Drug Enforcement
Administration (DEA) number
Provider State License Identifier (if applicable)
Procedure Data
HCPCS Procedure Codes CPT Procedure Codes
Diagnoses Data
ICD 9 Detail Diagnosis Code/ ICD 10 Detail Diagnosis Code (following transition) ICD 9
Primary Header Diagnosis Code/ ICD 10 Primary Header Diagnosis Code (following
transition)
Member Data
Name
Date of birth Gender
SSN
SMA Member Identified
C. Disclosure of Information by CMS to the Participating SMA
The participating SMA record files will be matched against CMS files and all exchanged data
on individual recipients or providers that impact the Medicaid program will be made available
to the participating SMA.
D.
Projected Starting and Completion Dates
The Agreement shall remain in effect for a period not to exceed 5 years from the last date of
when all parties have signed this agreement; however, within 3 months prior to the
expiration of this Agreement, CMS may renew this Agreement for not more than 5
additional years subject to the requirements of the participating agencies.
E. CMS data for the Exchange of Matched Data are maintained in the Following
Database:
Medicare Integrated Data Repository (IDR), System No. 09-70-0571 was published at 71 FR
74915 (December 13, 2006). Data maintained in this system will be released pursuant to
routine use number 11 as set forth in the system notice. The One PI Custodian will release
matched data to the participating SMA. If such system infrastructure shall change then an
amendment shall be added to this document to account for such change.
F. Number of Records Involved and Operational Time Factors
1.
Medicare records will include the entire body of Medicare data for all eligible
beneficiaries residing in the participating State and providers billing for
treatment and services for the time period of analysis.
2.
Each participating SMA’s records file will contain records representing that
SMA’s total Medicaid utilization, as stated on the SMA signature page, related
to individuals who are Medicaid recipients for the time period of analysis.
3.
CMS will provide the Custodian with access to claims and eligibility data for the
Medicare program updated on a monthly basis. Presently, three or more years of
data are accessible at any given time. The custodian will have access to the time
period as specified for the analysis period.
4.
The participating SMA will provide the CMS with access to current Medicaid
Program claims and eligibility data with updates on the frequency specified on
the participating SMA’s signature page. The participating SMA will be able to
make available a minimum of 3 years of Medicaid data for FW&A analysis.
IV. RETENTION AND DESTRUCTION OF IDENTIFIABLE RECORDS
The data files provided for the data exchange program will be maintained and disclosed by
CMS, and neither CMS nor the participating SMA will create a separate electronic file
consisting of individuals whose records were provided in this exchange program. However,
as a result of this project, files will be created for both Medicare and participating Medicaid
states based on this merged data to support recovery of overpayments, or to pursue
investigation and possible prosecution of fraud, waste and abuse cases. These files will be
destroyed in a manner consistent with the destruction of other, similar files, created via other
means. Other than files created for the aforementioned purposes, CMS and the participating
SMA will retain all identifiable records received from the exchange of this matched data
only for the period of time required for the period of performance related to the data of this
program, and will then destroy the records. Older data will be deleted as new data becomes
available. Magnetic tape files shall be erased. Electronic data shall be deleted. The User
agrees to destroy and send written certification of the destruction of the files to CMS within
30 days. The User agrees not to retain CMS files or any parts thereof, or specific bidding
information, and those files that can be used in concert with other information to identify
after the aforementioned file(s) are destroyed unless the appropriate Systems Manager or the
person designated in this Agreement grants written authorization.
CMS shall maintain, acquire, use and disclose all state Medicaid data provided by the
participating SMA under this Agreement in compliance with applicable laws and regulations
governing such information, including but not limited to 42 U.S.C. § 1396a(a)(7), 42 CFR §
431.300 et seq., and 45 CFR § 205.50 et. seq. This responsibility includes treating all
Medicaid recipient data provided by the participating SMA as confidential. CMS shall
provide the participating SMA with a list of personnel authorized to access the State
Medicaid data upon request.
V. SAFEGUARDS AND SECURITY PROCEDURES
CMS has safeguards in place for authorized users and monitors such users to ensure against
excessive or unauthorized use. Personnel having access to identifiable data have been trained
in the Privacy Act and information security requirements. Employees who maintain
identifiable data are instructed not to release data until the intended recipient agrees to
implement appropriate management, operational and technical safeguards sufficient to
protect the confidentiality, integrity and availability of the information and information
systems and to prevent unauthorized access.
The collection of identifiable data will conform to all applicable Federal laws and
regulations and Federal, HHS, and CMS policies and standards as they relate to information
security and data privacy. These laws and regulations include but are not limited to: the
Privacy Act of 1974; the Federal Information Security Modernization Act of 2014; the
Computer Fraud and Abuse Act of 1986; the Health Insurance Portability and Accountability
Act of 1996; the E-Government Act of 2002, the Clinger-Cohen Act of 1996; the Medicare
Modernization Act of 2003, and the corresponding implementing regulations. OMB Circular
A-130, Managing Information as a Strategic Resource, Appendix III, and Security of Federal
Automated Information Resources also applies. Federal, HHS, and CMS policies and
standards include but are not limited to: all pertinent National Institute of Standards and
Technology publications; and the HHS Information Systems Security and Privacy Program
(IS2P).
A. CMS and the participating SMA agree to safeguard data received from each other as
follows:
1.
Access to the records of matched data and to any records created by the
matching of the data exchange will be restricted to only those authorized
employees and officials who need them to perform their official duties in
connection with the uses of the information authorized in this Agreement.
Further, all personnel who will have access to the records of the matched data
and to any records created by the matching of the data will be advised of the
confidential nature of the information, the safeguards required to protect the
record and the civil and criminal sanctions for noncompliance contained in
applicable Federal laws.
2.
The exchanging of records of the matched data and any records created by the
matching of the data will be stored in an area that is physically safe from access
by unauthorized persons during duty hours as well as non-duty hours or when
not in use.
3.
The records of the matched data, and any records created by the matching of the
data, will be processed under the immediate supervision and control of
authorized personnel, to protect the confidentiality of the records in such a way
that unauthorized persons cannot retrieve any such records by means of
computer, remote terminal or other means.
4.
The records of the matched data and records created by the matching of the data
will be transported under appropriate safeguards.
5.
CMS may make on-site inspections, and may make other provisions to ensure
that the Custodian maintains adequate safeguards. CMS shall provide the
participating SMA with any reports and/or documentation relating to such on-
site inspections at its request.
6.
The records of the matched data and the records created by the matching of the
data shall be safeguarded by administrative, physical, and technical safeguards
that reasonably and appropriately protect confidentiality, integrity and
availability of the data as these terms are defined in the Health Insurance
Portability and Accountability Act (HIPAA) Security Rule at 45 CFR Parts 160
and 164. CMS shall ensure that the Custodian is in compliance with this
requirement.
B. CMS and the participating SMA shall also adopt policies and procedures to ensure
that information contained in their respective records shall be used solely as
provided in this Agreement.
C. CMS and the participating SMA will comply with the Health Insurance Portability
and Accountability Act (HIPAA) Privacy and Security Rules. This program of
exchanging matched data employs systems which contain Protected Health
Information (PHI) as defined by HHS regulation “Standards for Privacy of
Individually Identifiable Health Information” (45 CFR §§ 160.103) (65 Fed. Reg.
82462 (Dec. 28, 2000)). Disclosures of PHI authorized by the routine uses cited may
only be made if, and as, permitted or required by the HIPAA Privacy Rule.
D. CMS, the data Custodian, and the participating SMA will comply with the Breach
notification procedures set forth in OMB Memorandum M-17-12 "Preparing for and
Responding to a Breach of Personally Identifiable Information” upon discovery by a
Party to this contract of any suspected or confirmed Breach, inappropriate use of
data, or Security Incident. The Party experiencing the event will notify the other
agency's System Security Contact named in this Agreement within one (1) hour of
discovering the loss, potential loss, Security Incident, or Breach.
If the Custodian and/or the participating SMA is unable to speak with the CMS Systems
Security Contact within one hour or if for some other reason notifying the CMS Systems
Security Contact is not practicable (e.g., it is outside of the normal business hours), the data
Custodian and /or participating SMA will contact the CMS IT Service Desk at 410- 786-2580
or e-mail CMS-IT-ServiceDesk@cms.hhs.gov.
E. The Party that experienced the loss, potential loss, Security Incident, or Breach will
be responsible for following its established procedures, including notifying the
proper organizations (e.g., United State Computer Emergency Readiness Team (US-
CERT)), conducting a breach and risk analysis, and making a determination of the
need for notice and/or remediation to individuals affected by the loss. Parties under
this Agreement will follow PII Breach notification policies and related procedures
as required by OMB guidelines. If the Party experiencing the Breach determines
that the risk of harm requires notification to the affected individuals or other
remedies that Party will carry out these remedies without cost to the other Party.
The SMA agrees to establish appropriate administrative, technical, and physical safeguards
to protect the confidentiality of the data and to prevent unauthorized use or access to it. The
safeguards shall provide a level and scope of security that is not less than the level and scope
of security requirements established by the Office of Management and Budget (OMB) in
OMB Circular No. A-130, Appendix III--Security of Federal Automated Information
Systems) as well as Federal Information Processing Standard 200 entitled “Minimum
Security Requirements for Federal Information and Information Systems”; and, Special
Publication 800-53 “Recommended Security Controls for Federal Information Systems”. The
SMA acknowledges that the use of unsecured telecommunications, including the Internet, to
transmit individually identifiable, bidder identifiable or deducible information derived from
the file(s) specified prohibited.
Further, the SMA agrees that the data must not be physically moved, transmitted or disclosed
in any way from or by the site indicated in without written approval from CMS unless such
movement, transmission or disclosure is required by a law.
VI. RECORDS USAGE, DUPLICATION, AND RE-DISCLOSURE RESTRICTIONS
CMS and the participating SMA agree to the following limitations on the access to and
disclosure and use of, the tapes and information provided under this Agreement.
1. That the data files provided for the program of exchanging matching data will be
maintained and disclosed by the CMS Custodian and will be handled as indicated in
Section IV of this Agreement.
2. That the data supplied and the records created by the matching will be used and
accessed only for the purposes of, and to the extent necessary in, the program created
by this Agreement.
3. That the data provided by the participating SMA will not be duplicated in a separate
file or disseminated for purposes other than those intended by this Agreement
without the written consent of the participating SMA.
4. That, other than for purposes of a particular match under this program, no file will
be created that consists of information concerning only matched individuals.
VII.
REIMBURSEMENT FUNDING
All work to be performed by the Custodian to carry out the exchange in accordance with this
Agreement will be performed on a contractual basis by the Custodian as prescribed in the
contract between the Custodian and CMS. All work to be performed by the participating
SMA to carry out the requirements of this exchange program in accordance with this
Agreement will be performed on a non-reimbursable basis, except to the extent that those
requirements may include administrative or other activities eligible for Federal financial
participation.
VIII.
APPROVAL AND DURATION OF AGREEMENT
A. Effective Date: This Information Exchange Agreement will become effective
from the last date of when all parties have signed this agreement and will remain
in effect for a period not to exceed 5 years from the effective date of the
Agreement. This Agreement may be renewed for consecutive 5 year periods
subject to the requirements of the participating agencies. Information exchange
activities will continue without interruptions during agreement renewal
procedurals.
B. This Agreement may be terminated at any time with the consent of both parties.
If either party does not want to continue this program, it shall notify the other
party of its intention not to continue at least 90 days before the end of the then
current period of the Agreement. Either party may unilaterally terminate this
Agreement upon written notice to the other party requesting termination, in
which case the termination shall be effective 90 days after the date of the notice
or at a later date specified in the notice provided the expiration date does not
exceed the original or the extended completion date of the exchange. At such
time when the agreement terminates, CMS and the SMA will determine such
appropriate closeout procedures to insure the safeguard of CMS data and data
obtained from the SMA. The closeout process will also bring any outstanding
analysis, audits and other investigative activities to a final status for transition to
the applicable party.
IX. PERSONS TO CONTACT
A. The CMS contact for Programmatic issues:
Elizabeth Lindner
DFO-N Director
Division of Field Operations - North Investigations and Audits Group Center for Program
Integrity
Centers for Medicare and Medicaid Services Phone: 312-353-2990
E-mail: elizabeth.lindner@cms.hhs.gov
B. The CMS contact for Privacy issues:
Barbara Demopulos
CMS Privacy Advisor
Division of Security, Privacy Policy and Governance Information Security and Privacy
Group
Office of Information Technology
Centers for Medicare & Medicaid Services 7500 Security Boulevard, Mail Stop: N1-14-40
Baltimore, MD 21244-1849
Telephone: 410-786-5357
E-mail: Barbara.demopulos@cms.hhs.gov
C. The contact person for the participating SMA can be found on the SMA signature
page.
D. The contact person for the Custodian can be found on the Custodian signature page.
E. The contact person for the CMS One Program Integrity Systems Integrator can be
found on the CMS One Program Integrity Systems Integrator signature page
X. APPROVALS
A. Centers for Medicare & Medicaid Services Program Official
The authorized program official, whose signature appears below, accepts and expressly
agrees to the terms and conditions expressed herein, confirm that no verbal agreements of any
kind shall be binding or recognized, and hereby commits his respective organizations to the
terms of this Agreement.
Approved by (Signature of Authorized CMS Program Official)
Print name of CMS CPI Official
Date:
28
B. Centers for Medicare & Medicaid Services Approving Official
The authorized approving official, whose signature appears below, accepts and expressly
agrees to the terms and conditions expressed herein, confirm that no verbal agreements of
any kind shall be binding or recognized, and hereby commits his respective organizations to
the terms of this Agreement.
Approved By (Signature of Authorized CMS Approving Official)
Michael Pagels, Director
Division of Security, Privacy Policy and Governance, and Acting
Senior Official for Privacy
Information Security & Privacy Group Office of Information
Technology
Centers for Medicare & Medicaid Services
Date:
29
C. Participating State Program Official
The authorized Participating State program official, whose signature appears below, accepts
and expressly agrees to the terms and conditions expressed herein, confirms that no verbal
agreements of any kind shall be binding or recognized, and hereby commits his/her
respective organization to the terms of this Agreement.
NAME OF PARTICIPATING STATE
Approved by (Signature of Authorized State Program Official)
Print name of Authorized State Program Official
Date:
The Participating State Records to Be Exchanged for Matching:
The data for the
that will be made available for the
exchange program described herein are maintained in the following data files and the
frequency of the exchange of data will be made on a monthly basis. (All or part of these files
may be used in this data-exchange program):
MMIS which will submit approximately
of encounters annually.
The type of data files being shared on a monthly basis by the
of claims and
shall include but is not limited to:
Claims – managed care/encounter data, crossover and TPL claims, adjustments/
voids, denied claims.
Eligibility - files that include all data elements that are associated with claim
adjudication, and any retro-active eligibility activity
Provider - Medicaid files including any Medicare and NPI reference files
Participating State Legal Authority (as needed):
30
D. CMS Custodian Official
The authorized CMS Custodian official, whose signature appears below, accepts
and expressly agrees to the terms and conditions expressed herein, confirms that
no verbal agreements of any kind shall be binding or recognized, and hereby
commits his/her respective organization to the terms of this Agreement.
Approved by (Signature of Authorized CMS Custodian Official)
Print name of Authorized CMS Custodian Official
Date:
E. CMS One Program Integrity Systems Integrator
The authorized OptumServe Technology Services (One PI) systems support contractor
official, whose signature appears below, accepts and expressly agrees to the terms and
conditions expressed herein, confirms that no verbal agreements of any kind shall be
binding or recognized, and hereby commits his/her respective organization to the terms of
this Agreement.
Approved by (Signature of OptumServe Technology Services official)
Print name of OptumServe Technology Services Official
Date:
Appendix J
Joint Operating Agreement (JOA)
((Rev. 11948; Issued:04-13-23, Effective: 05-15-23; Implementation: 05-15-23)
Joint Operating Agreement (JOA) Between
[Insert UPIC name] and [SMA name]
[Insert Date]
Change History Log
Version
Date
Changed By
Description of Change
Section 1. Introduction
[This template is a guide and includes suggested language which may be changed
pending the agreement of the UPIC and the state Medicaid agency (SMA).]
1.1 Unified Program Integrity Contractor (UPIC) Purpose
The purpose of the UPIC in Medicaid is to work with SMAs to identify potential fraud,
waste, and abuse across the Medicaid and Medicare programs. The program
incorporates data matching, coordination, and information sharing to identify
fraudulent or wasteful billing behavior that goes undetected when the programs are
reviewed in isolation.
1.2 Partner Responsibilities
Medicaid program integrity is a collaborative effort between CMS, [Insert UPIC name]
(under contract to CMS), [Insert SMA name], and law enforcement officials. The
following table summarizes the roles and responsibilities of each partner.
CMS
Provide funding and oversight for the
UPIC
Conducts outreach to states to assess
the program integrity needs
Provides open forum for
communication and facilitates
information sharing
Participate in the Initial State
Collaboration Meeting and program
management meetings
Execute the Information Exchange
Agreement
Establish connectivity with SMA
Provide CMS system training
Provide Medicare and Medicaid policy
and data assistance
Participate in national-level document
sharing
[Insert SMA name]
Participate in Initial State
Collaboration Meeting
Renew Information Exchange
Agreement, if applicable
Complete Joint Operating
Agreement
Establish connectivity, if needed
Provide Medicaid data, if
applicable
Provide and participate in training
Contribute to the Data Analysis
Project Management Strategy
Provide Medicaid policy and data
assistance
Participate in the Data Workgroup
(if applicable)
Participate in program
management meetings
Follow established fraud, waste,
and abuse investigations, audits,
and referral processes
Work on joint investigations or
share investigative findings
Contribute to state-level and
national level document sharing
[Insert UPIC name]
Facilitate the Initial State
Collaboration Meeting
Establish Joint Operating
Agreement
Develop Data Analysis Project
Management Strategy
Provide and receive training
Facilitate program
management meetings
Provide Medicare and
Medicaid policy and data
assistance
Conduct data matching and/or
data analysis
Conduct fraud, waste, and
abuse investigation and
referral processes
Work on joint investigations
Contribute to state-level and
national-level document
sharing
Participate in Data Workgroup
1.3 Joint Operating Agreement Purpose
This Joint Operating Agreement (JOA) is an agreement between [insert UPIC name]
and [insert SMA name] to establish guidelines, duties, and shared expectations of how
each will conduct business with the other. This JOA will include any agreement
between the SMA and the UPIC on program implementation and operation that is not
specified in the PIM.
[Insert UPIC name] and [Insert Medicaid State Agency name] collaborated on the
development of this JOA and agree with the terms of the agreement.
1.4 Maintaining the JOA
1.4.1 Annual Updates
The JOA should be revisited annually. The [insert UPIC name] Medicaid Operations
Lead will be responsible for coordinating the review and revision process.
1.4.2 On-going Updates
All updates are to be sent to the [insert UPIC name] Medicaid Operations Lead. Within
[insert number] weeks, the [insert UPIC name] Medicaid Operations Lead will
distribute a draft to all points of contact identified in this JOA. Feedback is to be
provided within [insert number] weeks. The [Insert UPIC name] project lead will then
distribute a final draft to all points of contact. The [Insert SMA name] contact person
will provide approval of the changes via email or other written format.
1.4.2 Tracking of Changes
Changes to the JOA are identified in the Change History Log on the second page of
this document and are controlled via a version number in the upper right-hand corner
of each page of the document. Changes to the appendices to this document are also
controlled via a version number in the upper right-hand corner of each appendix.
1.5 Liability
Although [insert UPIC name] has a contractual relationship with CMS, there is no
privity of contract between [insert UPIC name] and [insert SMA name]. [Insert UPIC
name] will be indemnified and protected by limitations on liability according to the
terms of the [insert UPIC name]’s “[insert name of UPIC contract”. [Insert UPIC name]
will be indemnified and protected by limitations on liability according to the terms of
its UPIC contract. [Insert UPIC name] is protected against criminal or civil liability as
a result of the performance of duties as a program integrity contractor under its contract
as long as it uses due care. See 63 Fed. Reg. 13,590 (1998) (to be codified at 42 C.F.R.
421.316) (proposed March 20, 1998). In light of the provisions of [insert UPIC name]’s
current contract with CMS and the constraints of law, no amendments to [insert UPIC
name]’s contract will be made with respect to indemnification or limitations on
liability.
1.6 Guiding Documents
The [insert UPIC name] is required to adhere to applicable federal laws, regulations,
the CMS Program Integrity Manual (PIM), and the Statement of Work established with
CMS.
The [Insert SMA name] is required to adhere to applicable federal and state laws, and
regulations.
Section 2. Implementation
This section describes the implementation of Medicaid program integrity coordination
efforts in [Insert State].
2.1 Information Exchange Agreement
When applicable, the [insert SMA name] will renew the Global Information Exchange
Agreement (IEA) with CMS.
Section 3. Dispute Resolution
<Describe the process for resolving disputes between the UPIC and the SMA.>
Section 4. Communications Plan
4.1 Points of Contact
To assure that communication is properly directed, [insert UPIC name] and [insert
SMA name] will each identify (in the Master Contact List) representative(s) to serve
as:
Medicaid Operations Lead and/or Program Integrity Manager – Responsible for acting
as the main project lead for Medicare program integrity coordination efforts. The lead
is responsible for establishing and maintaining the JOA and for leading the resolution
of any JOA-related issues that may arise.
Data Manager – Responsible for the exchange of information regarding data analysis
issues, including understanding the data sources.
[Other roles may be added as appropriate and do not necessary require the level of Key
Personnel as listed in the UPIC SOW.]
4.2 Regular Collaboration
[Insert information on regular meetings that will occur between the UPIC and the SMA.
Two examples are shown below.]
4.2.1 Program Management Meeting
[Insert UPIC name] and [insert SMA name] will participate in Program Management
Meetings. The staff participating in the Program Management Meetings are identified
in the “Master Contact” list at the end of the JOA. [Insert information on the role of the
Program Management Meetings and the frequency of meetings]
4.2.2 Medicaid Program Integrity Coordination Data Workgroup
[Insert UPIC name] and [insert SMA name] will participate in a data workgroup. The
staff participating in the data workgroup is identified in the Master Contact table at the
end of the JOA. [Insert information on the role of the data workgroup and the frequency
of meetings]
Section 5. Training and Information Sharing
[Describe how the UPIC and the SMA will provide cross-training on programs,
policies, and data. See the Medicaid PIM for guidance.]
5.1 Initial Cross-Training
5.2 Ongoing Training
5.3 Subject-Matter Experts
Section 6. Connectivity and Data Sharing
6.1 Connectivity
[Insert UPIC name] and [insert SMA name] and CMS will work together to determine
how data will be shared.
[Insert UPIC name] will develop an Information Technology (IT) Plan providing
details about the data sharing, including security concerns. [Insert SMA name] and
CMS will provide input to the IT Plan.
6.2 Data Sources
[Describe the source of Medicaid data, including the type and elements]
6.3 Reserved
6.4 Data Validation
[Insert UPIC name] is responsible for validating data to ensure program needs are met.
If data are not of sufficient quality, [Insert UPIC name] will identify the problem to
[Insert SMA name] and to CMS. [Insert UPIC name] and [insert SMA name] will work
together through the Data Workgroup to resolve any data problems that arise.
6.5 Security - [Due to the content of this information, it may not be revised by the
SMA or the UPIC.]
[Insert UPIC name] and [Insert SMA name] will meet the security requirements
detailed below (of note, should the SMA have an IEA in place with the UPIC, these
security requirements are also detailed in that agreement).
A. [Insert UPIC name] and the participating SMA agree to safeguard data
received from each other as follows:
1.
Access to the records of data will be restricted to only those authorized
employees and officials who need them to perform their official duties
in connection with the uses of the information authorized in this
Agreement. Further, all personnel who will have access to the records
of the data will be advised of the confidential nature of the
information, the safeguards required to protect the record and the civil
and criminal sanctions for noncompliance contained in applicable
Federal laws.
2.
The exchanging of records of the data will be stored in an area that is
physically safe from access by unauthorized persons during duty hours
as well as non-duty hours or when not in use.
3.
The records of the data will be processed under the immediate
supervision and control of authorized personnel, to protect the
confidentiality of the records in such a way that unauthorized persons
cannot retrieve any such records by means of computer, remote terminal
or other means.
4.
The records of the data will be transported under appropriate
safeguards.
5.
The records of the data shall be safeguarded by administrative,
physical, and technical safeguards that reasonably and appropriately
protect confidentiality, integrity and availability of the data as these
terms are defined in the Health Insurance Portability and Accountability
Act (HIPAA) Security Rule at 45 CFR Parts 160 and 164. CMS shall
ensure that the Custodian is in compliance with this requirement.
B. [Insert UPIC name] and the participating SMA will comply with the Health
Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules.
This program of exchanging data employs systems which contain Protected Health
Information (PHI) as defined by HHS regulation “Standards for Privacy of
Individually Identifiable Health Information” (45 CFR §§ 160.103) (65 Fed. Reg.
82462 (Dec. 28, 2000)). Disclosures of PHI authorized by the routine uses cited may
only be made if, and as, permitted or required by the HIPAA Privacy Rule.
C. [Insert UPIC name] and the participating SMA will comply with the Breach
notification procedures set forth in OMB Memorandum M-17-12 "Preparing for and
Responding to a Breach of Personally Identifiable Information” upon discovery by a
Party to this contract of any suspected or confirmed Breach, inappropriate use of
data, or Security Incident. The Party experiencing the event will notify the other
agency's System Security Contact named in this Agreement within one (1) hour of
discovering the loss, potential loss, Security Incident, or Breach.
If the Custodian and/or the participating SMA is unable to speak with the CMS
Systems Security Contact within one hour or if for some other reason notifying the
CMS Systems Security Contact is not practicable (e.g., it is outside of the normal
business hours), the data Custodian and /or participating SMA will contact the
CMS IT Service Desk at 410- 786-2580 or e-mail CMS-IT-
ServiceDesk@cms.hhs.gov.
D. The Party that experienced the loss, potential loss, Security Incident, or Breach
will be responsible for following its established procedures, including notifying the
proper organizations (e.g., United State Computer Emergency Readiness Team (US-
CERT)), conducting a breach and risk analysis, and making a determination of the
need for notice and/or remediation to individuals affected by the loss. Parties under
this Agreement will follow PII Breach notification policies and related procedures
as required by OMB guidelines. If the Party experiencing the Breach determines that
the risk of harm requires notification to the affected individuals or other remedies
that Party will carry out these remedies without cost to the other Party.
The SMA agrees to establish appropriate administrative, technical, and physical
safeguards to protect the confidentiality of the data and to prevent unauthorized use
or access to it. The safeguards shall provide a level and scope of security that is not
less than the level and scope of security requirements established by the Office of
Management and Budget (OMB) in OMB Circular No. A-130, Appendix III--
Security of Federal Automated Information Systems) as well as Federal Information
Processing Standard 200 entitled “Minimum Security Requirements for Federal
Information and Information Systems”; and, Special Publication 800-53
“Recommended Security Controls for Federal Information Systems”. The SMA
acknowledges that the use of unsecured telecommunications, including the Internet,
to transmit individually identifiable, bidder identifiable or deducible information
derived from the file(s) specified prohibited.
Further, the SMA agrees that the data must not be physically moved, transmitted or
disclosed in any way from or by the site indicated in without written approval from
CMS unless such movement, transmission or disclosure is required by a law.
Section 7. Data Analysis
[Insert UPIC name] will conduct data analysis and report results of the data analysis to
[insert SMA name].
7.1 Identifying and Prioritizing
[Insert UPIC name] and [insert SMA name] will contribute to the identification and
prioritization of potential vulnerabilities as identified in the Policies and Procedures
Manual.
[Describe how the vulnerabilities will be identified and when the prioritization will
occur, i.e. through the data workgroup, through the Project Leads, or other processes.]
7.2 Data Analysis Project Management Strategy
[Insert UPIC name] will develop a Data Analysis Project Management Strategy that
describes the ongoing and ad hoc analyses that will be completed each year. [Insert
SMA name] will provide input to the plan.
[Describe how collaboration will occur, i.e. through the data workgroup or the Project
Leads]
7.3 Data Analysis Reports
[Insert UPIC name] will adhere to the reporting requirements outlined Medicaid PIM.
[Describe any requirements that are unique to the SMA regarding data analysis reports]
Section 8. Investigations and Referrals
[Insert UPIC name] will adhere to the requirements of the Program Integrity Manual
(PIM) and the PPM.
[Insert SMA name] will adhere to [Insert applicable regulation document.]
[Provide a summary of the clarifications agreed to by the UPIC and the SMA on the
overall strategy for working collaboratively on program integrity activities, especially
those issues that might be outside of the PIM, PPM, or state regulations.]
8.1 Joint Investigations
[Describe how joint investigations will be conducted.]
8.2 Referrals
[Insert UPIC name] will refer Medicare cases per the Program Integrity Manual. [Insert
SMA name] will refer cases to the [insert applicable agency] per the [insert applicable
regulation document.]
[Insert any information that would be unique to the state program.]
(See Master Contact List on next page)
Master Contact
Name
Role
Title
Phone
Numbers
Email
Mailing
Address
[Insert UPIC
name]
[Insert
SMA
name]
Appendix K
Medicaid Program Integrity Manual Acronyms
(Rev. 11948; Issued:04-13-23, Effective: 05-15-23; Implementation: 05-15-23)
American Academy of Professional Coders (AAPC)
Business Function Lead (BFL)
Center for Program Integrity (CPI)
Centers for Medicare & Medicaid Services (CMS)
Certified Professional Coder (CPC)
Children’s Health Insurance Program (CHIP)
Civil Monetary Penalty (CMP)
Contracting Officer’s Representative (COR)
Current Procedural Terminology (CPT)
Deficit Reduction Act (DRA)
Department of Justice (DOJ)
Federal Medical Assistance Percentage (FMAP)
Federal Financial Participation (FFP)
Final Findings Report (FFR)
Initial Findings Report (IFR)
Internet Only Manual (IOM)
Local Coverage Determination (LCD)
Medicaid Fiscal Agent (MFA)
Medicaid Fraud Control Unit (MFCU)
Medical Review (MR)
National Coverage Determination (NCD)
Department of Health and Human Services - Office of Inspector General/ Office of
Investigations (HHS-OIG/OI)
Program Integrity (PI)
State Medicaid Agency (SMA)
Surveillance Utilization Review Subsystem (SURS)
Umbrella Statement of Work (USOW)
Unified Program Integrity Contractor (UPIC)
Appendix L
State Collaboration Vetting Form Sample
(Rev. 11948; Issued:04-13-23, Effective: 05-15-23; Implementation: 05-15-23)
Date Sent to State: Click here to enter text.
Sent to: Click here to enter text. CC: Click here to enter text.
Sent by: Click here to enter text.
Provider Information
Provider Name: Click here to enter text.
Provider Entity Type (LLC, Inc., etc.): Click here to enter text.
Provider Location: Click here to enter text.
Provider NPI: Click here to enter text.
Provider TPI: Click here to enter text.
Provider Medicaid ID: Click here to enter text.
ZPIC Internal Tracking Number: Click here to enter text.
Review Period: Click here to enter text.
Type of Provider: Click here to enter text.
Provider Ownership: Click here to enter text.
HHS-OIG Exclusion List: Click here to enter text.
Previous Reviews/Administrative actions taken (UPIC and/or MAC): Click here to
enter text.
Prior/Current State Action:
Current or past known non-OIG State administrative actions taken: Click here to enter
text.
Current or past known State OIG reviews/actions taken: Click here to enter text.
Potential Medicaid Allegations (if applicable, attach additional information to
support the Medicaid peril)
Description of specific suspected behavior, Medicaid violation or scheme in this
investigation:
Click here to enter text.
Medicaid Payment Requirements/Policy:
Click here to enter text.
Top Three Procedure Codes: Click here to enter text.
Medicaid Dollars at Risk Related to the Allegation: Click here to enter text.
Response from the State: (select one)
☐
The State has no interest in this provider.
Please indicated why state has no interest:
☐
The State is interested in joint collaboration and will work with the UPIC.
☐
The State requests the UPIC to develop an investigation on this provider
and advise of its progress during the ongoing investigation.
☐
The State requests further information:
UPIC Contact (Name & Phone): Click here to enter text.
State Investigations Contact (Name & Phone): Click here to enter text.
State Audit Contact (Name & Phone): Click here to enter text.
State Response Date: Click here to enter text.
Additional feedback from the State: Click here to enter text.
Appendix M
Vulnerability Template
(Rev. 11948; Issued:04-13-23, Effective: 05-15-23; Implementation: 05-15-23)
Vulnerability Template Date Submitted:
Submitted By:
Name:
Organization:
Phone:
Email:
Vulnerability
Vulnerability Title:
Provider Type (if applicable):
Vulnerability Description:
Risk Factors (specific conditions, drivers, and/or actions that likely cause the
vulnerability or increase the chances of it occurring):
Be as specific as possible about what the root cause(s) of the vulnerability
may be. This field provides detail that may be used to ultimately help “solve
the problem” and mitigate the vulnerability.
For the below, provide risk assessment point valuation and provide a written
justification for each (This is not required but will greatly assist in the
vulnerability process).
Likelihood (likelihood for the identified vulnerability. Provide 1-2 sentences
behind the reasoning for selecting this level of likelihood for the vulnerability):
4 - Almost Certain (>75% likelihood to occur)
3 - Likely (>50% - <75% likelihood to occur)
2 - Possible (>25% - <50% likelihood to occur)
1 - Unlikely (<25% likelihood to occur)
Patient Harm (Provide 1-2 sentences behind the reasoning for selecting this level
of likelihood for the vulnerability):
4 - Life Threatening
3 - Significant
2 - Minimal
1 - No harm
Financial Impact (Provide 1-2 sentences behind the reasoning for selecting this
level of financial impact for the vulnerability):
4 - Greater than $200m (>$200 million)
3 - $100m - $200m (>$100 million <$200 million)
2 - $10m - $100m (>$10 million <$100 million)
1 - Less than $10m (<$10 million)
Breadth (Provide 1-2 sentences behind the reasoning for selecting this level of
breadth for the vulnerability):
4 - National
3 - Regional
2 - Pocketed
1 - Isolated
Existing Controls (Provide current projects or activities that are underway to
address the risk factor):
Suggested Mitigation Activities (Suggestions for action items (i.e. key results) that
may help to mitigate the risk factor(s):
Source (i.e. person/organization that first identified it):
FPS Model-Related (Y/N):
If yes, simultaneously report the information consistent with requirements of
the FPS.
Attachments (If applicable, upload document(s), such as Office of Inspector
General reports or relevant data that can provide additional information or context
on the vulnerability being reported):
Appendix N
State Vetting Form for the Managed Care Plan Project
(Rev.13099; Issued: 04-10-25; Effective: 05-12-25; Implementation: 05-12-25)
Date Sent to State:
Sent to: CC:
Sent by:
UPIC Contact (Name & Phone):
Plan Information
Managed Care Plan Name:
Plan Type (MCO, PIHP, PAHP):
Plan Location:
Plan NPI (if applicable):
Plan Medicaid ID(s):
Plan Ownership:
HHS-OIG Exclusion List:
Review Information
Review Period:
Areas to be covered include, but are not limited to:
-
Capitation payments
-
Program Integrity Activities
-
Payments to network providers
-
Reviewing denied claims
-
Reviewing denied prior authorizations
-
Provider Network Adequacy
-
Providing Preventive Services
Prior/Current State Action:
1. Have there been any audits or reviews of the plan or its network in the past
two Federal Fiscal Years?
If so, please list the areas of review/audit and the period covered:
2. Current or past State administrative actions taken:
3. Current or past State MFCU reviews/actions taken:
Response from the State: (select one)
☐ The plan is cleared to move forward for the UPIC’s review.
☐ The plan is NOT cleared to move forward for the UPIC’s review due to:
State Investigations Contact (Name & Phone):
State Audit Contact (Name & Phone):
State Response Date:
Appendix O
Analytic Findings Report Sample
(Rev. 13385; Issued: 08-28-25)
UPIC Name
Proactive Data Analysis
Proactive
Title:
UCM PDP
ID:
PDP-xxxxxx-xxxxx
Prepared by:
Date
Prepared:
xx/xx/xxxx
Introduction and Background
Allegation:
Services not rendered, services not medically necessary, upcoding, patient harm, etc.
Methodology:
Medicaid-Only / Non-Crossover Criteria:
• Claim Type (T-MSIS):
• DOS:
• Paid Dates:
• Final, paid claims
• Procedure Codes:
Metrics for target selection:
Summary of Findings:
Target Selection:
The below targets were selected.
Provider 1:
Provider Name:
NPI:
Selection Rationale:
Universe dollar amount:
Allegation specific dollar
amount:
Provider 2:
Provider Name:
NPI:
Selection Rationale:
Universe dollar amount:
Allegation specific dollar
amount: