81_FR_49805 81 FR 49660 - Notice of Opportunity for Hearing on Compliance of Arkansas State Plan Provisions Concerning Provision of Benefits During a Reasonable Opportunity Period With Titles XI and XIX (Medicaid) of the Social Security Act

81 FR 49660 - Notice of Opportunity for Hearing on Compliance of Arkansas State Plan Provisions Concerning Provision of Benefits During a Reasonable Opportunity Period With Titles XI and XIX (Medicaid) of the Social Security Act

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services

Federal Register Volume 81, Issue 145 (July 28, 2016)

Page Range49660-49662
FR Document2016-17923

Federal Register, Volume 81 Issue 145 (Thursday, July 28, 2016)
[Federal Register Volume 81, Number 145 (Thursday, July 28, 2016)]
[Notices]
[Pages 49660-49662]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17923]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS)

Centers for Medicare & Medicaid Services


Notice of Opportunity for Hearing on Compliance of Arkansas State 
Plan Provisions Concerning Provision of Benefits During a Reasonable 
Opportunity Period With Titles XI and XIX (Medicaid) of the Social 
Security Act

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

ACTION: Notice of Opportunity for a Hearing Compliance of Arkansas 
Medicaid State Plan--Provision of Benefits During a Reasonable 
Opportunity Period.

-----------------------------------------------------------------------

CLOSING DATE: Requests to participate in the hearing as a party must be 
received by the presiding officer by August 29, 2016.

FOR FURTHER INFORMATION CONTACT: Benjamin R. Cohen, Hearing Officer, 
Centers for Medicare & Medicaid Services, 2520 Lord Baltimore Drive, 
Suite L, Baltimore, MD 21244.

SUPPLEMENTARY INFORMATION: This notice announces the opportunity for an 
administrative hearing concerning the finding of the Administrator of 
the Centers for Medicare & Medicaid Services (CMS) that the State of 
Arkansas is not providing Medicaid benefits during a reasonable 
opportunity period.
    Section 1902(a)(46) of the Social Security Act (the Act) requires 
state plans for medical assistance to provide ``that information is 
requested and exchanged for purposes of income and eligibility 
verification in accordance with a State system which meets the 
requirements of section 1137 of this Act.'' Section 1137(d) of the Act 
and regulations at 42 CFR 435.911(c) require that the state agency 
provide a reasonable opportunity period to individuals who are 
determined otherwise eligible for Medicaid but for whom the state 
agency is unable to promptly verify satisfactory immigration status. In 
its approved State Plan Amendment (SPA) 13-0018, the Arkansas 
Department of Human Services (DHS) provides assurance that it provides 
Medicaid to citizens and nationals of the United States and to certain 
non-citizens, including during a reasonable opportunity period pending 
verification of their citizenship, national status or satisfactory 
immigration status, in accordance with the requirements of sections 
1902(a)(46), 1902(ee), 1903(x) and 1137(d) of the Act. Despite such 
assurance in the Medicaid state plan, it is CMS' understanding based on 
numerous discussions and interactions with the state that Arkansas is 
not providing Medicaid benefits to individuals who declared under 
penalty of perjury that they are in a satisfactory immigration status, 
have met all other eligibility requirements for Medicaid in the state, 
and are pending verification of their immigration status.
    With a formal determination by the CMS Administrator that the 
Arkansas DHS has failed to comply substantially with these 
requirements, made after a hearing or absent a hearing request, CMS 
will begin this FFP withholding and it will continue until the Arkansas 
DHS comes into compliance with the requirement to provide Medicaid 
benefits during a reasonable opportunity period for otherwise eligible 
non-citizens who have declared under penalty of perjury that they are 
in a satisfactory immigration status.
    Arkansas submitted state plan amendment (SPA) Transmittal Number 
13-0018 on September 23, 2013, which described the Arkansas DHS's 
policies and practices related to citizenship and non-citizen 
eligibility, including the assurance that the Arkansas DHS provides 
Medicaid benefits during the reasonable opportunity period to 
individuals who have declared under penalty of perjury that they are in 
a satisfactory immigration status pending verification of such status. 
During the review of this SPA, CMS learned that the Arkansas DHS was 
not providing Medicaid benefits during a reasonable opportunity period 
to individuals who have declared under penalty of perjury that they are 
in a satisfactory immigration status and who meet all other eligibility 
requirements in the state, pending verification of such status. 
Throughout 2014 and 2015, CMS and Arkansas engaged in extensive 
technical assistance discussions. CMS sent a letter to the Arkansas DHS 
on April 1, 2015, reiterating the requirement for Arkansas to comply 
with the statute and regulations. During this time, CMS received 
multiple draft corrective action plans (CAPs) from Arkansas that set 
out schedules to come into compliance with section 1137(d) of the Act 
by July 1, 2014, October 2015, April 2016, and, most recently, August 
2016.
    On November 3, 2015, CMS approved Arkansas' SPA 13-0018. At the 
same time, CMS issued a companion letter informing Arkansas that, if it 
did not demonstrate compliance with these requirements within 30 days 
of the date of the letter, CMS would initiate formal compliance 
proceedings. To date, CMS

[[Page 49661]]

has not received evidence of compliance with the requirement to provide 
Medicaid benefits to non-citizens during a reasonable opportunity 
period.
    The notice to Arkansas containing the details concerning this 
compliance issue, the proposed withholding of FFP, opportunity for a 
hearing, and possibility of postponing and ultimately avoiding 
withholding by coming into compliance, reads as follows:
Dear Ms. Stehle:
    This letter provides notice that the Centers for Medicare & 
Medicaid Services (CMS) has found a serious issue of noncompliance 
because the Arkansas Department of Human Services (DHS) is not 
providing Medicaid benefits during a reasonable opportunity period as 
required by section 1137(d) of the Social Security Act (the Act) and 
regulations at 42 CFR. Sec.  435.911(c).
    Pursuant to section 1904 of the Act and 42 CFR 430.35, a portion of 
the federal financial participation (FFP) of the administrative costs 
associated with the operation of the Arkansas Medicaid program will be 
withheld. However, CMS is first providing the Arkansas DHS with an 
opportunity for a hearing on this withholding decision. With a formal 
determination by the CMS Administrator that the Arkansas DHS has failed 
to comply substantially with these requirements, made after a hearing 
or absent a hearing request, CMS will begin this FFP withholding and it 
will continue until the Arkansas DHS comes into compliance with the 
requirement to provide Medicaid benefits during a reasonable 
opportunity period for otherwise eligible non-citizens who have 
declared under penalty of perjury that they are in a satisfactory 
immigration status. The details of the finding, proposed withholding, 
opportunity for the Arkansas DHS to request a hearing on the finding, 
and possibility of postponing, and ultimately avoiding, withholding by 
coming into compliance are described below.
    CMS learned of the Arkansas DHS' non-compliance with section 
1137(d) of the Act and regulations at 42 CFR 435.911(c) during the 
review of State Plan Amendment (SPA) Transmittal Number 13-0018. 
Section 1902(a)(46) of the Act requires state plans for medical 
assistance to provide ``that information is requested and exchanged for 
purposes of income and eligibility verification in accordance with a 
State system which meets the requirements of section 1137 of this 
Act.'' Section 1137(d) of the Act requires that the state agency 
provide a reasonable opportunity period to individuals who are 
determined otherwise eligible for Medicaid but for whom the state 
agency is unable to promptly verify satisfactory immigration status. 
See also, 42 CFR. Sec.  435.911(c). In the approved SPA 13-0018, the 
Arkansas DHS provides assurance that it provides Medicaid to citizens 
and nationals of the United States and to certain non-citizens, 
including during a reasonable opportunity period pending verification 
of their citizenship, national status or satisfactory immigration 
status, in accordance with the requirements of sections 1902(a)(46), 
1902(ee), 1903(x) and 1137(d) of the Act. Despite such assurance in the 
Medicaid state plan, it is our understanding that the Arkansas DHS is 
not providing Medicaid benefits to individuals who declare under 
penalty of perjury that they are in a satisfactory immigration status, 
meet all other eligibility requirements for Medicaid in the state, and 
are pending verification of such status.
    In processing SPA 13-0018, CMS and the Arkansas DHS discussed this 
issue on October 10, 2013, and again on December 9, 2013, and the 
Arkansas DHS acknowledged that it is not furnishing benefits during the 
reasonable opportunity period to individuals who declare under penalty 
of perjury that they are in a satisfactory immigration status. A formal 
Request for Additional Information (RAI) was issued on December 20, 
2013, which requested a description of the steps the Arkansas DHS would 
take to implement the change, a timeline by which the steps would be 
accomplished and a date by which the changes will be completed to be in 
compliance with section 1137(d) of the Act. CMS also sent a letter to 
the Arkansas DHS on April 1, 2015, reiterating the requirement for the 
Arkansas DHS to comply with the statute and regulations.
    Throughout 2014 and 2015, CMS and the Arkansas DHS engaged in 
extensive technical assistance discussions. During this time, CMS 
received multiple draft corrective action plans (CAPs) from the 
Arkansas DHS that set out schedules for compliance with section 1137(d) 
of the Act, including dates of compliance by July 1, 2014, October 
2015, and April 2016. The Arkansas DHS formally responded to the 
December 20, 2013, RAI on October 7, 2015. The RAI response included a 
revised schedule for compliance with section 1137(d) of the Act by 
April of 2016. On November 3, 2015, CMS approved Arkansas' SPA 13-0018, 
which describes the Arkansas DHS's policies and practices related to 
citizenship and non-citizen eligibility, including the assurance that 
the Arkansas DHS is providing Medicaid benefits during the reasonable 
opportunity period to individuals who have declared under penalty of 
perjury that they are in a satisfactory immigration status pending 
verification of such status. At the same time, CMS issued a companion 
letter informing the Arkansas DHS that, if it did not demonstrate 
compliance with these requirements within 30 days of the date of the 
letter, CMS would initiate formal compliance proceedings. The Arkansas 
DHS did not come into compliance by the specified date and on February 
23, 2016, submitted a revised timeline for compliance with section 
1137(d) of the Act, with a compliance date of August 2016.
    The Arkansas DHS' submission of its quarterly expenditure reports 
through the CMS-64 includes a certification that the Arkansas DHS is 
operating under the authority of its approved Medicaid state plan. 
However, at this time, CMS has not received information from the 
Arkansas DHS providing evidence of compliance with its approved state 
plan, section 1137(d) of the Act and regulations at 42 CFR 435.911(c).
    In light of the Arkansas DHS' non-compliance with section 1137(d) 
of the Act, CMS is moving forward with a formal determination of 
substantial noncompliance with federal requirements described in 
section 1137(d) of the Act and the regulations at 42 CFR 435.911(c) to 
provide Medicaid coverage to otherwise eligible non-citizens pending 
verification of their satisfactory immigration status during a 
reasonable opportunity period if the individual meets all other 
eligibility criteria for Medicaid. Subject to the state's opportunity 
for a hearing, CMS will withhold a portion of federal financial 
participation (FFP) from the Arkansas DHS' quarterly claim of 
expenditures for administrative costs until such time as the Arkansas 
DHS is and continues to be in compliance with the federal requirements. 
The withholding will initially be three percent of the federal share of 
the Arkansas DHS' quarterly claim for administrative expenditures, an 
amount that was developed based on the proportion of total state 
Medicaid expenditures that are used for expenditures for eligibility 
determinations, as reported on Form CMS-64.10 Line 50. The withholding 
percentage will increase by two percentage points (i.e. 5 percent, 7 
percent, etc.) for every quarter in which the Arkansas DHS remains out 
of compliance, up to a maximum withholding percentage of 100 percent 
(of total administrative expenditures). The withholding will end when 
the Arkansas DHS fully and satisfactorily

[[Page 49662]]

implements a corrective action plan to bring its procedures to process 
eligibility determinations under its Medicaid program into compliance 
with the federal requirements.
    The state has 30 days from the date of this letter to request a 
hearing. As specified in the accompanying Federal Register notice, the 
Arkansas DHS has an opportunity for an administrative hearing prior to 
this determination becoming final. However, the Arkansas DHS must 
request a hearing. If a request for a hearing is submitted timely, the 
hearing will be convened by the Hearing Officer designated below no 
later than 60 days after the date of the Federal Register notice, or a 
later date by agreement of the parties and the Hearing Officer, at the 
CMS Regional Office in Dallas, Texas, in accordance with the procedures 
set forth in federal regulations at 42 CFR part 430, subpart D. The 
issue in any such hearing will be whether benefits are being provided 
during a reasonable opportunity period to individuals who have declared 
under penalty of perjury that they are in a to a satisfactory 
immigration status pending verification of such status, if they meet 
all other eligibility requirements, in accordance with the state plan 
and 42 CFR 435.911(c). Any request for such a hearing should be sent to 
the designated Hearing Officer. The Hearing Officer also should be 
notified if the Arkansas DHS requests a hearing but cannot meet the 
timeframe expressed in this notice. The Hearing Officer designated for 
this matter is: Benjamin R. Cohen, Hearing Officer, Centers for 
Medicare & Medicaid Services, 2520 Lord Baltimore Drive, Suite L, 
Baltimore, MD 21244.
    If the Arkansas DHS plans to come into compliance with the approved 
state plan, the Arkansas DHS should submit, within 30 days of the date 
of this letter, an explanation of how the Arkansas DHS plans to come 
into compliance with federal requirements and the timeframe for doing 
so. If that explanation is satisfactory, CMS may consider postponing 
any requested hearing, which could also delay the imposition of the 
withholding of funds as described above. Our goal is to have the 
Arkansas DHS come into compliance, and CMS continues to be available to 
provide technical assistance to the Arkansas DHS in achieving this 
outcome.
    Should you not request a hearing within 30 days, a notice of 
withholding will be sent to you and the withholding of federal funds 
will begin as described above.
    If you have any questions or wish to discuss this determination 
further, please contact: Bill Brooks, Associate Regional Administrator, 
Division of Medicaid and Children's Health Operations, CMS Dallas 
Regional Office, 1301 Young Street, Suite 714, Dallas, TX 75202, 214-
767-4461.
Sincerely,
Andrew M. Slavitt
Acting Administrator

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


    Dated: July 22, 2016.
Andrew M. Slavitt,
Acting Administrator, Centers for Medicare & Medicaid Services.
[FR Doc. 2016-17923 Filed 7-27-16; 8:45 am]
 BILLING CODE 4120-01-P



                                             49660                          Federal Register / Vol. 81, No. 145 / Thursday, July 28, 2016 / Notices

                                                Status: Open to the public, limited                   DEPARTMENT OF HEALTH AND                              assurance in the Medicaid state plan, it
                                             only by the space and telephone lines                    HUMAN SERVICES (HHS)                                  is CMS’ understanding based on
                                             available. The meeting room                                                                                    numerous discussions and interactions
                                             accommodates 100 people and there                        Centers for Medicare & Medicaid                       with the state that Arkansas is not
                                             will be 50 telephone lines available.                    Services                                              providing Medicaid benefits to
                                                                                                                                                            individuals who declared under penalty
                                                Purpose: The committee advises the                    Notice of Opportunity for Hearing on                  of perjury that they are in a satisfactory
                                             Secretary, Department of Health and                      Compliance of Arkansas State Plan                     immigration status, have met all other
                                             Human Services, and the Assistant                        Provisions Concerning Provision of                    eligibility requirements for Medicaid in
                                             Secretary for Health in the (a)                          Benefits During a Reasonable                          the state, and are pending verification of
                                             coordination of all research and                         Opportunity Period With Titles XI and                 their immigration status.
                                             education programs and other activities                  XIX (Medicaid) of the Social Security                    With a formal determination by the
                                             within the Department and with other                     Act                                                   CMS Administrator that the Arkansas
                                             federal, state, local and private agencies,              AGENCY:  Centers for Medicare &                       DHS has failed to comply substantially
                                             and (b) establishment and maintenance                    Medicaid Services (CMS), HHS.                         with these requirements, made after a
                                             of liaison with appropriate private                      ACTION: Notice of Opportunity for a
                                                                                                                                                            hearing or absent a hearing request,
                                             entities, federal agencies, and state and                Hearing Compliance of Arkansas                        CMS will begin this FFP withholding
                                             local public health agencies with                        Medicaid State Plan—Provision of                      and it will continue until the Arkansas
                                             respect to smoking and health activities.                Benefits During a Reasonable                          DHS comes into compliance with the
                                                                                                      Opportunity Period.                                   requirement to provide Medicaid
                                                Matters for Discussion: The topic of                                                                        benefits during a reasonable opportunity
                                             the meeting is ‘‘Increasing Smoke-free                                                                         period for otherwise eligible non-
                                             and Tobacco-free Environments.’’ The                     CLOSING DATE:    Requests to participate in
                                                                                                      the hearing as a party must be received               citizens who have declared under
                                             objectives of the meeting are to assess                                                                        penalty of perjury that they are in a
                                                                                                      by the presiding officer by August 29,
                                             the progress of expanding smoke-free                                                                           satisfactory immigration status.
                                                                                                      2016.
                                             and tobacco-free environments 10 years                                                                            Arkansas submitted state plan
                                             after the landmark 2006 Surgeon                          FOR FURTHER INFORMATION CONTACT:                      amendment (SPA) Transmittal Number
                                             General’s Report on the health                           Benjamin R. Cohen, Hearing Officer,                   13–0018 on September 23, 2013, which
                                             consequences of exposure to                              Centers for Medicare & Medicaid                       described the Arkansas DHS’s policies
                                             secondhand smoke, and to identify                        Services, 2520 Lord Baltimore Drive,                  and practices related to citizenship and
                                             specific federal actions that can be taken               Suite L, Baltimore, MD 21244.                         non-citizen eligibility, including the
                                             to further our progress.                                 SUPPLEMENTARY INFORMATION: This                       assurance that the Arkansas DHS
                                                                                                      notice announces the opportunity for an               provides Medicaid benefits during the
                                                Agenda items are subject to change as                 administrative hearing concerning the                 reasonable opportunity period to
                                             priorities dictate.                                      finding of the Administrator of the                   individuals who have declared under
                                                Contact Person for More Information:                  Centers for Medicare & Medicaid                       penalty of perjury that they are in a
                                             Substantive program information as                       Services (CMS) that the State of                      satisfactory immigration status pending
                                             well as summaries of the meeting and                     Arkansas is not providing Medicaid                    verification of such status. During the
                                             roster of committee members may be                       benefits during a reasonable opportunity              review of this SPA, CMS learned that
                                             obtained from the internet at                            period.                                               the Arkansas DHS was not providing
                                             www.cdc.gov/tobacco or from Ms.                             Section 1902(a)(46) of the Social                  Medicaid benefits during a reasonable
                                                                                                      Security Act (the Act) requires state                 opportunity period to individuals who
                                             Monica L. Swann, Management and
                                                                                                      plans for medical assistance to provide               have declared under penalty of perjury
                                             Program Analyst, National Center for
                                                                                                      ‘‘that information is requested and                   that they are in a satisfactory
                                             Chronic Disease Prevention and Health
                                                                                                      exchanged for purposes of income and                  immigration status and who meet all
                                             Promotion, CDC, 395 E. Street SW.,                       eligibility verification in accordance
                                             Washington, DC 20024. Telephone:                                                                               other eligibility requirements in the
                                                                                                      with a State system which meets the                   state, pending verification of such
                                             (202) 245–0552.                                          requirements of section 1137 of this                  status. Throughout 2014 and 2015, CMS
                                                The Director, Management Analysis                     Act.’’ Section 1137(d) of the Act and                 and Arkansas engaged in extensive
                                             and Services Office, has been delegated                  regulations at 42 CFR 435.911(c) require              technical assistance discussions. CMS
                                             the authority to sign Federal Register                   that the state agency provide a                       sent a letter to the Arkansas DHS on
                                             notices pertaining to announcements of                   reasonable opportunity period to                      April 1, 2015, reiterating the
                                             meetings and other committee                             individuals who are determined                        requirement for Arkansas to comply
                                             management activities, for both the                      otherwise eligible for Medicaid but for               with the statute and regulations. During
                                             Centers for Disease Control and                          whom the state agency is unable to                    this time, CMS received multiple draft
                                             Prevention and the Agency for Toxic                      promptly verify satisfactory immigration              corrective action plans (CAPs) from
                                             Substances and Disease Registry.                         status. In its approved State Plan                    Arkansas that set out schedules to come
                                                                                                      Amendment (SPA) 13–0018, the                          into compliance with section 1137(d) of
                                             Catherine Ramadei,                                       Arkansas Department of Human                          the Act by July 1, 2014, October 2015,
                                             Acting Director, Management Analysis and                 Services (DHS) provides assurance that                April 2016, and, most recently, August
                                             Services Office Centers for Disease Control              it provides Medicaid to citizens and                  2016.
                                             and Prevention.                                          nationals of the United States and to                    On November 3, 2015, CMS approved
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                                             [FR Doc. 2016–17799 Filed 7–27–16; 8:45 am]              certain non-citizens, including during a              Arkansas’ SPA 13–0018. At the same
                                             BILLING CODE 4163–18–P                                   reasonable opportunity period pending                 time, CMS issued a companion letter
                                                                                                      verification of their citizenship, national           informing Arkansas that, if it did not
                                                                                                      status or satisfactory immigration status,            demonstrate compliance with these
                                                                                                      in accordance with the requirements of                requirements within 30 days of the date
                                                                                                      sections 1902(a)(46), 1902(ee), 1903(x)               of the letter, CMS would initiate formal
                                                                                                      and 1137(d) of the Act. Despite such                  compliance proceedings. To date, CMS


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                                                                            Federal Register / Vol. 81, No. 145 / Thursday, July 28, 2016 / Notices                                           49661

                                             has not received evidence of compliance                  otherwise eligible for Medicaid but for               opportunity period to individuals who
                                             with the requirement to provide                          whom the state agency is unable to                    have declared under penalty of perjury
                                             Medicaid benefits to non-citizens during                 promptly verify satisfactory immigration              that they are in a satisfactory
                                             a reasonable opportunity period.                         status. See also, 42 CFR. § 435.911(c). In            immigration status pending verification
                                                The notice to Arkansas containing the                 the approved SPA 13–0018, the                         of such status. At the same time, CMS
                                             details concerning this compliance                       Arkansas DHS provides assurance that it               issued a companion letter informing the
                                             issue, the proposed withholding of FFP,                  provides Medicaid to citizens and                     Arkansas DHS that, if it did not
                                             opportunity for a hearing, and                           nationals of the United States and to                 demonstrate compliance with these
                                             possibility of postponing and ultimately                 certain non-citizens, including during a              requirements within 30 days of the date
                                             avoiding withholding by coming into                      reasonable opportunity period pending                 of the letter, CMS would initiate formal
                                             compliance, reads as follows:                            verification of their citizenship, national           compliance proceedings. The Arkansas
                                             Dear Ms. Stehle:                                         status or satisfactory immigration status,            DHS did not come into compliance by
                                                This letter provides notice that the                  in accordance with the requirements of                the specified date and on February 23,
                                             Centers for Medicare & Medicaid                          sections 1902(a)(46), 1902(ee), 1903(x)               2016, submitted a revised timeline for
                                             Services (CMS) has found a serious                       and 1137(d) of the Act. Despite such                  compliance with section 1137(d) of the
                                             issue of noncompliance because the                       assurance in the Medicaid state plan, it              Act, with a compliance date of August
                                             Arkansas Department of Human                             is our understanding that the Arkansas                2016.
                                             Services (DHS) is not providing                          DHS is not providing Medicaid benefits                   The Arkansas DHS’ submission of its
                                             Medicaid benefits during a reasonable                    to individuals who declare under                      quarterly expenditure reports through
                                             opportunity period as required by                        penalty of perjury that they are in a                 the CMS–64 includes a certification that
                                             section 1137(d) of the Social Security                   satisfactory immigration status, meet all             the Arkansas DHS is operating under
                                             Act (the Act) and regulations at 42 CFR.                 other eligibility requirements for                    the authority of its approved Medicaid
                                             § 435.911(c).                                            Medicaid in the state, and are pending                state plan. However, at this time, CMS
                                                Pursuant to section 1904 of the Act                   verification of such status.                          has not received information from the
                                             and 42 CFR 430.35, a portion of the                         In processing SPA 13–0018, CMS and                 Arkansas DHS providing evidence of
                                             federal financial participation (FFP) of                 the Arkansas DHS discussed this issue                 compliance with its approved state
                                             the administrative costs associated with                 on October 10, 2013, and again on                     plan, section 1137(d) of the Act and
                                             the operation of the Arkansas Medicaid                   December 9, 2013, and the Arkansas                    regulations at 42 CFR 435.911(c).
                                             program will be withheld. However,                       DHS acknowledged that it is not                          In light of the Arkansas DHS’ non-
                                             CMS is first providing the Arkansas                      furnishing benefits during the                        compliance with section 1137(d) of the
                                             DHS with an opportunity for a hearing                    reasonable opportunity period to                      Act, CMS is moving forward with a
                                             on this withholding decision. With a                     individuals who declare under penalty                 formal determination of substantial
                                             formal determination by the CMS                          of perjury that they are in a satisfactory            noncompliance with federal
                                             Administrator that the Arkansas DHS                      immigration status. A formal Request for              requirements described in section
                                             has failed to comply substantially with                  Additional Information (RAI) was                      1137(d) of the Act and the regulations
                                             these requirements, made after a hearing                 issued on December 20, 2013, which                    at 42 CFR 435.911(c) to provide
                                             or absent a hearing request, CMS will                    requested a description of the steps the              Medicaid coverage to otherwise eligible
                                             begin this FFP withholding and it will                   Arkansas DHS would take to implement                  non-citizens pending verification of
                                             continue until the Arkansas DHS comes                    the change, a timeline by which the                   their satisfactory immigration status
                                             into compliance with the requirement to                  steps would be accomplished and a date                during a reasonable opportunity period
                                             provide Medicaid benefits during a                       by which the changes will be completed                if the individual meets all other
                                             reasonable opportunity period for                        to be in compliance with section                      eligibility criteria for Medicaid. Subject
                                             otherwise eligible non-citizens who                      1137(d) of the Act. CMS also sent a                   to the state’s opportunity for a hearing,
                                             have declared under penalty of perjury                   letter to the Arkansas DHS on April 1,                CMS will withhold a portion of federal
                                             that they are in a satisfactory                          2015, reiterating the requirement for the             financial participation (FFP) from the
                                             immigration status. The details of the                   Arkansas DHS to comply with the                       Arkansas DHS’ quarterly claim of
                                             finding, proposed withholding,                           statute and regulations.                              expenditures for administrative costs
                                             opportunity for the Arkansas DHS to                         Throughout 2014 and 2015, CMS and                  until such time as the Arkansas DHS is
                                             request a hearing on the finding, and                    the Arkansas DHS engaged in extensive                 and continues to be in compliance with
                                             possibility of postponing, and                           technical assistance discussions. During              the federal requirements. The
                                             ultimately avoiding, withholding by                      this time, CMS received multiple draft                withholding will initially be three
                                             coming into compliance are described                     corrective action plans (CAPs) from the               percent of the federal share of the
                                             below.                                                   Arkansas DHS that set out schedules for               Arkansas DHS’ quarterly claim for
                                                CMS learned of the Arkansas DHS’                      compliance with section 1137(d) of the                administrative expenditures, an amount
                                             non-compliance with section 1137(d) of                   Act, including dates of compliance by                 that was developed based on the
                                             the Act and regulations at 42 CFR                        July 1, 2014, October 2015, and April                 proportion of total state Medicaid
                                             435.911(c) during the review of State                    2016. The Arkansas DHS formally                       expenditures that are used for
                                             Plan Amendment (SPA) Transmittal                         responded to the December 20, 2013,                   expenditures for eligibility
                                             Number 13–0018. Section 1902(a)(46) of                   RAI on October 7, 2015. The RAI                       determinations, as reported on Form
                                             the Act requires state plans for medical                 response included a revised schedule                  CMS–64.10 Line 50. The withholding
                                             assistance to provide ‘‘that information                 for compliance with section 1137(d) of                percentage will increase by two
                                             is requested and exchanged for purposes                  the Act by April of 2016. On November                 percentage points (i.e. 5 percent, 7
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                                             of income and eligibility verification in                3, 2015, CMS approved Arkansas’ SPA                   percent, etc.) for every quarter in which
                                             accordance with a State system which                     13–0018, which describes the Arkansas                 the Arkansas DHS remains out of
                                             meets the requirements of section 1137                   DHS’s policies and practices related to               compliance, up to a maximum
                                             of this Act.’’ Section 1137(d) of the Act                citizenship and non-citizen eligibility,              withholding percentage of 100 percent
                                             requires that the state agency provide a                 including the assurance that the                      (of total administrative expenditures).
                                             reasonable opportunity period to                         Arkansas DHS is providing Medicaid                    The withholding will end when the
                                             individuals who are determined                           benefits during the reasonable                        Arkansas DHS fully and satisfactorily


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                                             49662                          Federal Register / Vol. 81, No. 145 / Thursday, July 28, 2016 / Notices

                                             implements a corrective action plan to                   please contact: Bill Brooks, Associate                ADDRESSES:   In commenting, please refer
                                             bring its procedures to process                          Regional Administrator, Division of                   to file code CMS–1667–PN. Because of
                                             eligibility determinations under its                     Medicaid and Children’s Health                        staff and resource limitations, we cannot
                                             Medicaid program into compliance with                    Operations, CMS Dallas Regional Office,               accept comments by facsimile (FAX)
                                             the federal requirements.                                1301 Young Street, Suite 714, Dallas, TX              transmission.
                                                The state has 30 days from the date of                75202, 214–767–4461.                                     You may submit comments in one of
                                             this letter to request a hearing. As                     Sincerely,                                            three ways (please choose only one of
                                             specified in the accompanying Federal                    Andrew M. Slavitt                                     the ways listed):
                                             Register notice, the Arkansas DHS has                    Acting Administrator                                     1. Electronically. You may submit
                                             an opportunity for an administrative
                                                                                                      (Catalog of Federal Domestic Assistance               electronic comments on this exception
                                             hearing prior to this determination                      Program No. 13.714, Medicaid Assistance               request to http://www.regulations.gov.
                                             becoming final. However, the Arkansas                    Program.)                                             Follow the instructions under the ‘‘More
                                             DHS must request a hearing. If a request
                                                                                                                                                            Search Options’’ tab.
                                             for a hearing is submitted timely, the                     Dated: July 22, 2016.
                                             hearing will be convened by the Hearing                                                                           2. By regular mail. You may mail
                                                                                                      Andrew M. Slavitt,
                                             Officer designated below no later than                                                                         written comments to the following
                                                                                                      Acting Administrator, Centers for Medicare
                                             60 days after the date of the Federal                                                                          address ONLY: Centers for Medicare &
                                                                                                      & Medicaid Services.
                                             Register notice, or a later date by                                                                            Medicaid Services, Department of
                                                                                                      [FR Doc. 2016–17923 Filed 7–27–16; 8:45 am]
                                             agreement of the parties and the Hearing                                                                       Health and Human Services, Attention:
                                                                                                      BILLING CODE 4120–01–P
                                             Officer, at the CMS Regional Office in                                                                         CMS–1667–PN, P.O. Box 8010,
                                             Dallas, Texas, in accordance with the                                                                          Baltimore, MD 21244–1850.
                                             procedures set forth in federal                          DEPARTMENT OF HEALTH AND                              Please allow sufficient time for mailed
                                             regulations at 42 CFR part 430, subpart                  HUMAN SERVICES                                        comments to be received before the
                                             D. The issue in any such hearing will be                                                                       close of the comment period.
                                             whether benefits are being provided                      Centers for Medicare & Medicaid                          3. By express or overnight mail. You
                                             during a reasonable opportunity period                   Services                                              may send written comments to the
                                             to individuals who have declared under
                                                                                                                                                            following address ONLY: Department of
                                             penalty of perjury that they are in a to                 [CMS–1667–PN]
                                                                                                                                                            Health and Human Services, Attention:
                                             a satisfactory immigration status
                                                                                                      Medicare Program; Request for an                      CMS–1667–PN, Mail Stop C4–26–05,
                                             pending verification of such status, if
                                                                                                      Exception to the Prohibition on                       7500 Security Boulevard, Baltimore, MD
                                             they meet all other eligibility
                                                                                                      Expansion of Facility Capacity Under                  21244–1850.
                                             requirements, in accordance with the
                                             state plan and 42 CFR 435.911(c). Any                    the Hospital Ownership and Rural                         For information on viewing public
                                             request for such a hearing should be                     Provider Exceptions to the Physician                  comments, see the beginning of the
                                             sent to the designated Hearing Officer.                  Self-Referral Prohibition                             SUPPLEMENTARY INFORMATION section.
                                             The Hearing Officer also should be                                                                             FOR FURTHER INFORMATION CONTACT:
                                                                                                      AGENCY:  Centers for Medicare &
                                             notified if the Arkansas DHS requests a                                                                        POH-ExceptionRequests@cms.hhs.gov.
                                                                                                      Medicaid Services (CMS), HHS.
                                             hearing but cannot meet the timeframe                                                                          SUPPLEMENTARY INFORMATION:
                                             expressed in this notice. The Hearing                    ACTION: Proposed notice.
                                             Officer designated for this matter is:                                                                         Inspection of Public Comments
                                                                                                      SUMMARY:   The Social Security Act
                                             Benjamin R. Cohen, Hearing Officer,
                                                                                                      prohibits a physician-owned hospital                     All comments received before the
                                             Centers for Medicare & Medicaid
                                                                                                      from expanding its facility capacity,                 close of the comment period are
                                             Services, 2520 Lord Baltimore Drive,
                                                                                                      unless the Secretary of the Department                available for viewing by the public,
                                             Suite L, Baltimore, MD 21244.
                                                If the Arkansas DHS plans to come                     of Health and Human Services (the                     including any personally identifiable or
                                             into compliance with the approved state                  Secretary) grants the hospital’s request              confidential business information that is
                                             plan, the Arkansas DHS should submit,                    for an exception to that prohibition after            included in a comment. We post all
                                             within 30 days of the date of this letter,               considering input on the hospital’s                   comments received before the close of
                                             an explanation of how the Arkansas                       request from individuals and entities in              the comment period on the following
                                             DHS plans to come into compliance                        the community where the hospital is                   Web site as soon as possible after they
                                             with federal requirements and the                        located. The Centers for Medicare &                   have been received: http://
                                             timeframe for doing so. If that                          Medicaid Services (CMS) has received a                www.regulations.gov. Follow the search
                                             explanation is satisfactory, CMS may                     request from a physician-owned                        instructions on that Web site to view
                                             consider postponing any requested                        hospital for an exception to the                      public comments.
                                             hearing, which could also delay the                      prohibition against expansion of facility                We will allow stakeholders 30 days
                                             imposition of the withholding of funds                   capacity. This notice solicits comments               from the date of this notice to submit
                                             as described above. Our goal is to have                  on the request from individuals and                   written comments. Comments received
                                             the Arkansas DHS come into                               entities in the community in which the                timely will be available for public
                                             compliance, and CMS continues to be                      physician-owned hospital is located.                  inspection as they are received,
                                             available to provide technical assistance                Community input may inform our                        generally beginning approximately 3
                                             to the Arkansas DHS in achieving this                    determination regarding whether the                   weeks after publication of this notice, at
                                             outcome.                                                 requesting hospital qualifies for an                  the headquarters of the Centers for
                                                                                                      exception to the prohibition against
Lhorne on DSK30JT082PROD with NOTICES




                                                Should you not request a hearing                                                                            Medicare & Medicaid Services, 7500
                                             within 30 days, a notice of withholding                  expansion of facility capacity.                       Security Boulevard, Baltimore,
                                             will be sent to you and the withholding                  DATES: Comment Date: To be assured                    Maryland 21244, Monday through
                                             of federal funds will begin as described                 consideration, comments must be                       Friday of each week from 8:30 a.m. to
                                             above.                                                   received at one of the addresses                      4 p.m. To schedule an appointment to
                                                If you have any questions or wish to                  provided below, no later than 5 p.m. on               view public comments, please phone 1–
                                             discuss this determination further,                      August 29, 2016.                                      800–743–3951.


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Document Created: 2016-07-28 01:47:35
Document Modified: 2016-07-28 01:47:35
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of Opportunity for a Hearing Compliance of Arkansas Medicaid State Plan--Provision of Benefits During a Reasonable Opportunity Period.
DatesRequests to participate in the hearing as a party must be received by the presiding officer by August 29, 2016.
ContactBenjamin R. Cohen, Hearing Officer, Centers for Medicare & Medicaid Services, 2520 Lord Baltimore Drive, Suite L, Baltimore, MD 21244.
FR Citation81 FR 49660 

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