[Federal Register Volume 67, Number 115 (Friday, June 14, 2002)]
[Notices]
[Pages 40932-40933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15006]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services


Notice of Hearing: Reconsideration of Disapproval of Iowa State 
Plan Amendment 01-19

AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS

ACTION: Notice of hearing.

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SUMMARY: This notice announces an administrative hearing on August 2, 
2002, at 10 a.m., Plaza Room; Richard Bolling Federal Building; 601 E. 
Twelfth Street; Kansas City, Missouri 64106 to reconsider our decision 
to disapprove Iowa State Plan Amendment (SPA) 01-19.
    Closing Date: Requests to participate in the hearing as a party 
must be received by the presiding officer by (15 days after 
publication).

FOR FURTHER INFORMATION CONTACT: Kathleen Scully-Hayes, Presiding 
Officer, CMS, C1-09-13, 7500 Security Boulevard, Baltimore, Maryland 
21244, Telephone: (410) 786-2055.

SUPPLEMENTARY INFORMATION: This notice announces an administrative 
hearing to reconsider our decision to disapprove Iowa's State Plan 
Amendment (SPA) 01-19. This SPA would establish a new target group for 
case management services for children under age 18 in need of child 
welfare services.
    The issues that factored into the disapproval are: (1) Duplication 
of payment authority under other programs, which is not consistent with 
guidance in the State Medicaid Manual, applicable cost principles; and 
statutory requirements at section 1902(a)(30)(A) of the Social Security 
Act (Act) for rates consistent with efficiency, economy, and quality of 
care; (2) insufficient description of a functional payment methodology 
which means that the SPA does not contain all the information necessary 
to determine whether it is consistent with all applicable requirements 
(in particular the requirements that rates be consistent with 
efficiency, economy, and quality of care), as mandated by 42 CFR 
430.10; and (3) while not part of the original disapproval letter, 
restriction of beneficiary freedom of choice of providers pursuant to 
section 1902(a)(23) of the Act because of the limitation of providers 
to employees of public welfare agencies, which CMS is now including as 
an issue for reconsideration.
    After consideration of the issues discussed above, and after 
consultation with the Secretary, as required by 42 CFR 430.15(c)(2), 
the CMS Administrator disapproved Iowa SPA 01-19.
    Section 1116 of the Social Security Act (the Act) and 42 CFR part 
430 establish Department procedures that provide an administrative 
hearing for reconsideration of a disapproval of a State plan or plan 
amendment. The Centers for Medicare & Medicaid Services (CMS) is 
required to publish a copy of the notice to a state Medicaid agency 
that informs the agency of the time and place of the hearing and the 
issues to be considered. If we subsequently notify the agency of 
additional issues that will be considered at the hearing, we will also 
publish that notice.
    Any individual or group that wants to participate in the hearing as 
a party must petition the presiding officer within 15 days after 
publication of this notice, in accordance with the requirements 
contained at 42 CFR 430.76(b)(2). Any interested person or organization 
that wants to participate as amicus curiae must petition the presiding 
officer before the hearing begins in accordance with the requirements 
contained at 42 CFR 430.76(c). If the hearing is later rescheduled, the 
presiding officer will notify all participants.
    The notice to Iowa announcing an administrative hearing to 
reconsider the disapproval of its SPA reads as follows:

    Ms. Jessie K. Rasmussen, Director, Iowa Department of Human 
Services, Hoover State Office Building, Des Moines, IA 50319-0114.

    Dear Ms. Rasmussen: I am responding to your request for 
reconsideration of the decision to disapprove Iowa State Plan 
Amendment (SPA) 01-19. Iowa submitted SPA 01-19 on July 13, 2001. 
This SPA would establish a new target group for case management 
services for children under age 18 in need of child welfare 
services.
    The SPA was disapproved because of the following issues: (1) 
Duplication of payment authority under other programs, which is not 
consistent with guidance in the State Medicaid Manual, applicable 
cost principles, and statutory requirements at section 
1902(a)(30)(A) of the Social Security Act (Act) for rates consistent 
with efficiency, economy, and quality of care; (2) insufficient 
description of a functional payment methodology, which means that 
the SPA does not contain all the information necessary to determine 
whether it is consistent with all applicable requirements (in 
particular the requirements that rates be consistent with 
efficiency, economy, and quality of care), as mandated by 42 CFR 
430.10; and (3) while not part of the original disapproval letter, 
restriction of beneficiary freedom of choice of providers pursuant 
to section 1902(a)(23) of the Act because of the limitation of 
providers to employees of public welfare agencies, which the Centers 
for Medicare & Medicaid Services is now including as an issue for 
reconsideration.
    After consideration of the issues set forth above, and after 
consultation with the Secretary as required under 42 CFR 
430.15(c)(2), I disapproved Iowa SPA 01-19.
    I am scheduling a hearing on your request for reconsideration to 
be held on August 2, 2002, at 10 a.m.; Plaza Room; Richard Bolling 
Federal Building; 601 E. Twelfth Street; Kansas City, Missouri 
64106.
    If this date is not acceptable, we would be glad to set another 
date that is mutually agreeable to the parties. The hearing will be 
governed by the procedures prescribed at 42 CFR, part 430.
    I am designating Ms. Kathleen Scully-Hayes as the presiding 
officer. If these arrangements present any problems, please contact 
the presiding officer. In order to facilitate any communication, 
which may be necessary between the parties to the hearing, please 
notify the presiding officer to indicate acceptability of the 
hearing date that has been scheduled and provide names of the 
individuals who will represent the State at the hearing. The 
presiding officer may be reached at (410) 786-2055.

        Sincerely,
Thomas A. Scully.

    Section 1116 of the Act (42 U.S.C. section 1316); 42 CFR section 
430.18) (Catalog of Federal Domestic Assistance Program No. 13.714, 
Medicaid Assistance Program)



[[Page 40933]]


    Dated: June 7, 2002.
Thomas A. Scully,
Administrator, Centers for Medicare & Medicaid Services.
[FR Doc. 02-15006 Filed 6-13-02; 8:45 am]
BILLING CODE 4163-18-P