Terminating Approval for Suppliers

3044 - Terminating Approval for Suppliers (Rev. 1, 05-21-04) If the SA certifies that a supplier is no longer in compliance with the Conditions for Coverage, the RO notifies the supplier of the certification and processes the termination. (See Exhibit 187.) In supplier terminations, although there may not be a provider agreement to terminate and the Act does not use the term, “terminate,” formal adjudicative disapproval is clearly implied in the Act. Unless otherwise noted, procedures for provider terminations are equally applicable to certified suppliers. SMAs are notified of supplier terminations. If the SMA continues making payments to Medicaid suppliers, FFP is disallowed. (See Chapter 6 for laboratories.) The termination of coverage is effective following at least a 2 calendar-day notice if immediate jeopardy is present, otherwise it is at least a 15 calendar-day notice to the supplier (42 CFR 489.53(c)). The RO notifies the carrier and the Divisions of Medicare and Medicaid of a supplier termination action and the effective date. Public notification is optional for suppliers other than RHCs, ASCs, FQHCs, and OPOs (42 CFR 486.325(e)). Public notification, when undertaken, should be given in accordance with §3034.