Medicare Managed Care Manual (Pub. 100-16), Ch. 4 § 50.6
Cost Sharing for Dual-Eligible Enrollees Requiring an Institutional
50.6 – Cost Sharing for Dual-Eligible Enrollees Requiring an Institutional
Level of Care
(Rev. 121, Issued: 04-22-16, Effective: 04-22-16, Implementation: 04-22-16)
As provided under section 1860D-14 of the Act, Full Medicaid institutionalized
individuals have no cost sharing for covered Part D drugs under their PDP or MA-PD
plan. Effective January 1, 2012, section 1860D-14 of the Act also eliminates Part D cost
sharing for Full Medicaid individuals who would be institutionalized if they were not
receiving home and community-based services (HCBS) either through:
• A HCBS waiver authorized for a state under section 1115 or subsection (c) or (d)
of section 1915 of the Act;
• A Medicaid State Plan Amendment under section 1915(i) of the Act; or
• A Medicaid managed care organization with a contract under section 1903(m) or
section 1932 of the Act.
A SNP must determine or an enrollee must demonstrate that s/he is a Full Medicaid
individual receiving HCBS under title XIX with the following:
• A copy of a state-issued Notice of Action, Notice of Determination, or Notice of
Enrollment that includes the enrollee’s name and HCBS eligibility date during a
month after June of the previous calendar year;
• A copy of a state-approved HCBS Service Plan that includes the enrollee’s name
and effective date beginning during a month after June of the previous calendar
year;
•
A copy of a state-issued prior authorization approval letter for HCBS that
includes the enrollee’s name and effective date beginning during a month after
June of the previous calendar year; or
• Other documentation provided by the state showing HCBS eligibility status
during a month after June of the previous calendar year.
See chapter 16b of the MMCM, “Special Needs Plans” for more information on dual
eligible enrollees, SNPs, and D-SNPs at https://www.cms.gov/Regulations-and-
Guidance/Guidance/Manuals/Downloads/mc86c16b.pdf.