[Federal Register Volume 71, Number 201 (Wednesday, October 18, 2006)]
[Notices]
[Pages 61482-61483]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-17368]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services


Notice of Hearing: Reconsideration of Disapproval of Minnesota 
State Plan Amendment 05-015B

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

ACTION: Notice of Hearing.

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SUMMARY: This notice announces an administrative hearing to be held on 
December 4, 2006, at 233 N. Michigan Avenue, Suite 600, the Illinois 
Room, Chicago, IL 60601, to reconsider CMS' decision to disapprove 
Minnesota State plan amendment 05-015B.
    Closing Date: Requests to participate in the hearing as a party 
must be received by the presiding officer by November 2, 2006.

FOR FURTHER INFORMATION CONTACT: Kathleen Scully-Hayes, Presiding

[[Page 61483]]

Officer, CMS, Lord Baltimore Drive, Mail Stop LB-23-20, Baltimore, 
Maryland 21244; Telephone: (410) 786-2055.

SUPPLEMENTARY INFORMATION: This notice announces an administrative 
hearing to reconsider CMS' decision to disapprove Minnesota State plan 
amendment (SPA) 05-015B which was submitted on September 28, 2005. This 
SPA was disapproved on June 12, 2006.
    Under this SPA, the State proposed to limit incurred medical and 
remedial care expenses protected under the post eligibility process 
only to those expenses incurred while an individual is eligible for 
Medicaid.
    Sections 1902(a)(17), and 1902(a)(51) in conjunction with section 
1924 of the Social Security Act (the Act), as these sections are 
refined by section 1902(r)(1), require States to take into account, 
under the post eligibility process, amounts for incurred medical and 
remedial care expenses that are not subject to payment by a third 
party. Section 1902(r)(1)(A)(ii) of the Act and Federal regulations at 
42 CFR 435.733(c)(4)(ii) permit States to place ``reasonable'' limits 
on the amounts of necessary medical and remedial care expenses 
recognized under State law but not covered under the State plan. The 
amendment was disapproved because CMS found that the amendment violated 
the statute for reasons set forth in the disapproval letter.
    The issues to be decided in the hearing are:
     Whether Minnesota's SPA 05-015B impermissibly limits the 
amount of incurred expenses which may be deducted from an 
institutionalized individual's income for purposes of the post 
eligibility process by limiting these expenses to those incurred when 
the individual was Medicaid eligible; and
     Whether allowing this limitation undermines the protection 
of expenses which can be incurred when an individual is not Medicaid 
eligible, which must be considered for purposes of the medically needy 
spend down.
    Section 1116 of the Act and Federal regulations at 42 CFR Part 430, 
establish Department procedures that provide an administrative hearing 
for reconsideration of a disapproval of a State plan or plan amendment. 
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 Minnesota announcing an administrative hearing to 
reconsider the disapproval of its SPA reads as follows:

Ms. Christine Bronson,
Medicaid Director,
Minnesota Department of Human Services,
P.O. Box 64983,
St. Paul, MN 55164-0983.

    Dear Ms. Bronson: I am responding to your request for 
reconsideration of the decision to disapprove the Minnesota State 
plan amendment (SPA) 05-015B, which was submitted on September 28, 
2005, and disapproved on June 12, 2006.
    Under this SPA, the State proposed to limit incurred medical and 
remedial care expenses protected under the post eligibility process 
only to those expenses incurred while an individual is eligible for 
Medicaid.
    Sections 1902(a)(17), and 1902(a)(51) in conjunction with 
section 1924 of the Social Security Act (the Act), as these sections 
are refined by section 1902(r)(1), require States to take into 
account, under the post eligibility process, amounts for incurred 
medical and remedial care expenses that are not subject to payment 
by a third party. Section 1902(r)(1)(A)(ii) of the Act and Federal 
regulations at 42 CFR 435.733(c)(4)(ii) permit States to place 
``reasonable'' limits on the amounts of necessary medical and 
remedial care expenses recognized under State law but not covered 
under the State plan. The amendment was disapproved because CMS 
found that the amendment violated the statute for reasons set forth 
in the disapproval letter.
    The issues to be decided at the hearing are:
     Whether Minnesota's SPA 05-015B impermissibly limits 
the amount of incurred expenses which may be deducted from an 
institutionalized individual's income for purposes of the post 
eligibility process by limiting these expenses to those incurred 
when the individual was Medicaid eligible; and
     Whether allowing this limitation undermines the 
protection of expenses which can be incurred when an individual is 
not Medicaid eligible, which must be considered for purposes of the 
medically needy spend down.
    I am scheduling a hearing on your request for reconsideration to 
be held on December 4, 2006, at 233 N. Michigan Avenue, Suite 600, 
the Illinois Room, Chicago, IL 60601, to reconsider the decision to 
disapprove SPA 05-015B. 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 by Federal 
regulations 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 at (410) 786-2055. 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.

Sincerely,

Mark B. McClellan, M.D., PhD

    Section 1116 of the Social Security Act (42 U.S.C. section 1316); 
(42 CFR section 430.18).

(Catalog of Federal Domestic Assistance program No. 13.714, Medicaid 
Assistance Program.)

    Dated: October 5, 2006.
Mark B. McClellan,
Administrator, Centers for Medicare & Medicaid Services.
[FR Doc. E6-17368 Filed 10-17-06; 8:45 am]
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