[Federal Register Volume 81, Number 139 (Wednesday, July 20, 2016)]
[Rules and Regulations]
[Pages 47045-47046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17157]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

42 CFR Part 457

[CMS-2390-F2]
RIN-0938-AS25


Medicaid and Children's Health Insurance Program (CHIP) Programs; 
Medicaid Managed Care, CHIP Delivered in Managed Care, and Revisions 
Related to Third Party Liability; Correcting Amendment

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

ACTION: Final rule; correcting amendment.

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SUMMARY: This document corrects a technical error that appeared in the 
final rule published in the May 6, 2016 Federal Register (81 FR 27498 
through 27901) entitled, ``Medicaid and Children's Health Insurance 
Program (CHIP) Programs; Medicaid Managed Care, CHIP Delivered in 
Managed Care, and Revisions Related to Third Party Liability.'' The 
effective date for the rule was July 5, 2016.

DATES: Effective Date: This correcting document is effective July 18, 
2016.
    Applicability Date: The corrections indicated in this document are 
applicable beginning July 5, 2016.

FOR FURTHER INFORMATION CONTACT: Melissa Williams, (410) 786-4435, 
CHIP.

SUPPLEMENTARY INFORMATION: 

I. Background

    In FR Doc. 2016-09581 (81 FR 27498 through 27901), the final rule 
entitled, ``Medicaid and Children's Health Insurance Program (CHIP) 
Programs; Medicaid Managed Care, CHIP Delivered in Managed Care, and 
Revisions Related to Third Party Liability'' there was a technical 
error that is identified and corrected in this correcting document. The 
correction is applicable as of July 5, 2016.

II. Summary of Errors in the Regulations Text

    On page 27896 of the Medicaid and Children's Health Insurance 
Program (CHIP) Programs; Medicaid Managed Care, CHIP Delivered in 
Managed Care, and Revisions Related to Third Party Liability final 
rule, we made a technical error in the regulation text of Sec.  457.10. 
In this paragraph, we inadvertently omitted an amendatory instruction 
to add the definition of ``Federally Qualified HMO'' in alphabetical 
order. Accordingly, we are revising the amendatory instruction for 
Sec.  457.10 to add this definition as it was published in the May 6, 
2016 Federal Register.

III. Waiver of Proposed Rulemaking and Delay in Effective Date

    Under 5 U.S.C. 553(b) of the Administrative Procedure Act (APA), 
the agency is required to publish a notice of the proposed rule in the 
Federal Register before the provisions of a rule take effect. In 
addition, section 553(d) of the APA mandates a 30-day delay in 
effective date after issuance or publication of a rule. Sections 
553(b)(B) and 553(d)(3) of the APA provide for exceptions from the APA 
notice and comment, and delay in effective date requirements. Section 
553(b)(B) of the APA authorizes an agency to dispense with normal 
notice and comment rulemaking procedures for good cause if the agency 
makes a finding that the notice and comment process is impracticable, 
unnecessary, or contrary to the public interest; and includes a 
statement of the finding and the reasons for it in the notice. In 
addition, section 553(d)(3) of the APA allows the agency to avoid the 
30-day delay in effective date where such delay is contrary to the 
public interest and the agency includes in the rule a statement of the 
finding and the reasons for it.
    In our view, this correcting document does not constitute a 
rulemaking that would be subject to these requirements. This document 
merely corrects technical errors in the Medicaid and Children's Health 
Insurance Program (CHIP) Programs; Medicaid Managed Care, CHIP 
Delivered in Managed Care, and Revisions Related to Third Party 
Liability final rule. The corrections contained in this document are 
consistent with, and do not make substantive changes to, the policies 
and payment methodologies that were adopted subject to notice and 
comment procedures in the Medicaid and Children's Health Insurance 
Program (CHIP) Programs; Medicaid Managed Care, CHIP Delivered in 
Managed Care, and Revisions Related to Third Party Liability final 
rule. As a result, the corrections made through this correcting 
document are intended to ensure that the Medicaid and Children's Health 
Insurance Program (CHIP) Programs; Medicaid Managed Care, CHIP 
Delivered in Managed Care, and Revisions Related to Third Party 
Liability final rule accurately reflects the policies adopted in that 
rule.
    Even if this were a rulemaking to which the notice and comment and 
delayed effective date requirements applied, we find that there is good 
cause to waive such requirements. Undertaking further notice and 
comment procedures to incorporate the corrections in this document into 
the Medicaid and Children's Health Insurance Program (CHIP) Programs; 
Medicaid Managed Care, CHIP Delivered in Managed Care, and Revisions 
Related to Third Party Liability final rule or delaying the effective 
date of the corrections would be contrary to the public interest 
because it is in the public interest to ensure that the Medicaid and 
Children's Health Insurance Program (CHIP) Programs; Medicaid Managed 
Care, CHIP Delivered in Managed Care, and Revisions Related to Third 
Party Liability final rule accurately reflects our final policies as 
soon as possible following the date they take effect. Further, such 
procedures would be unnecessary, because we are not altering the 
payment methodologies or policies or making any substantive revision to 
the description of the definition as proposed or purported to be 
finalized in the preamble of the final rule, but rather, we are simply 
correcting the Federal Register document to reflect the policies that 
we previously proposed, received comment on, and subsequently 
finalized. This correcting document is intended solely to ensure that 
the Medicaid and Children's Health Insurance Program (CHIP) Programs; 
Medicaid Managed Care, CHIP Delivered in Managed Care, and Revisions 
Related to Third Party Liability final rule accurately reflects these 
policies. For these reasons, we believe there is good cause to waive 
the

[[Page 47046]]

requirements for notice and comment and delay in effective date.

List of Subjects in 42 CFR Part 457

    Administrative practice and procedure, Grant programs-health, 
Health insurance, Reporting and recordkeeping requirements.

    Accordingly, 42 CFR chapter IV is corrected by making the following 
correcting amendment to part 457:

PART 457--ALLOTMENTS AND GRANTS TO STATES

0
1. The authority citation for part 457 continues to read as follows:

    Authority:  Section 1102 of the Social Security Act (42 U.S.C. 
1302).


0
2. Section 457.10 is amended by adding the definition of ``Federally 
Qualified HMO'' in alphabetical order to read as follows:


Sec.  457.10  Definitions and use of terms.

* * * * *
    Federally qualified HMO means an HMO that CMS has determined is a 
qualified HMO under section 2791(b)(3) of the Public Health Service 
Act.
* * * * *

    Dated: July 14, 2016.
Madhura Valverde,
Executive Secretary to the Department, Department of Health and Human 
Services.
[FR Doc. 2016-17157 Filed 7-18-16; 4:15 pm]
 BILLING CODE 4120-01-P