Medicare Managed Care Manual (Pub. 100-16), Ch. 11 § 100.2
Other Provisions of the MA Contract
100.2 - Other Provisions of the MA Contract
(Rev. 79, Issued 02-17-06, Effective Date 02-17-06)
Provisions Necessary to Implement MA Program - The MA organization agrees that a
provision will be included in its contract with CMS that specifies such other terms and
conditions as CMS may find necessary and appropriate in order to implement
requirements of the MA program.
Severability of Contracts - The MA contract will provide that, upon CMS's request:
•
The contract will be amended to exclude any MA plan or State-licensed entity
specified by CMS; and
•
A separate contract will be deemed to be in place for any such organization or
entity that is removed from its former MA contract when such a request is made.
Electronic Communication - An MA organization must have the capacity to
communicate with CMS electronically which includes notifying CMS of appropriate
e-mail addresses for contact individuals within the organization (and receiving and
sending e-mail), accessing the Internet to receive instructions and communications, and
sending individual or batch information to CMS or its contractors such as encounter and
enrollment/disenrollment information;
Prompt Payment - The MA organization must comply with the following prompt
payment of claims provisions for claims that have been submitted by providers for
services and supplies rendered to Medicare enrollees when these services and supplies are
furnished by non-contracted providers:
•
The contract between CMS and the MA organization must provide that the MA
organization will pay 95 percent of the "clean claims" within 30 days of receipt if
they are submitted by, or on behalf of, an enrollee of an MA private fee-for-
service plan or are claims for services that are not furnished under a written
agreement between the organization and the provider;
•
The MA organization must pay interest on clean claims that are not paid within 30
days; and
•
All other claims from non-contracted providers must be paid or denied within 60
calendar days from the date of the request for payment.
If a Medicare Advantage organization chooses to use non-contracting providers to
provide services "in lieu of" executing contracts with providers to provide such services,
the Medicare Advantage organization must pay the provider the amount it would have
received under original Medicare for the services.
In the case of "unforeseen" services furnished by a provider that Medicare pays under a
prospective payment system (PPS), e.g., emergency or urgently needed care or certain
post-stabilization care service(s) - a Medicare Advantage organization must pay the lesser
of the hospital's billed charges or the PPS rate, but no more than would have been paid
under original Medicare.
If CMS determines that the MA organization fails to make payments promptly to non-
contracting providers and suppliers, CMS may, following an opportunity for a hearing:
•
Provide for direct payment of the sums owed to providers, or MA private fee-for-
service plan enrollees; and
•
Provide for appropriate reduction in the amounts that would otherwise be paid to
the organization, to reflect the amounts of the direct payments and the cost of
making those payments.
Agreements with Federally Qualified Health Centers
Under the contract, if an MA enrollee receives a service from a Federally Qualified
Health Center (FQHC) that has a written agreement with the MA organization:
• The MA organization must pay a FQHC a similar amount to what it pays other
providers for similar service;
• The FQHC must accept this payment as payment in full, except for allowable cost
sharing which it may collect; and
• Financial incentives, such as risk pool payments or bonuses, and financial
withholdings are not considered in determining the payments by CMS under 42
CFR 422.316(a) (requirements for the MA program).