83_FR_63103 83 FR 62869 - Notice of Hearing: Reconsideration of Disapproval Washington Medicaid State Plan Amendment (SPA) 17-0002

83 FR 62869 - Notice of Hearing: Reconsideration of Disapproval Washington Medicaid State Plan Amendment (SPA) 17-0002

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

Federal Register Volume 83, Issue 234 (December 6, 2018)

Page Range62869-62870
FR Document2018-26495

This notice announces an administrative hearing to be held on January 15, 2019, at the Department of Health and Human Services, Centers for Medicare & Medicaid Services, Division of Medicaid and Children's Health, Seattle Regional Office, 701 Fifth Avenue, Suite 1600, Seattle, WA 98104 to reconsider CMS' decision to disapprove Washington's Medicaid SPA 17-0002.

Federal Register, Volume 83 Issue 234 (Thursday, December 6, 2018)
[Federal Register Volume 83, Number 234 (Thursday, December 6, 2018)]
[Notices]
[Pages 62869-62870]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-26495]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services


Notice of Hearing: Reconsideration of Disapproval Washington 
Medicaid State Plan Amendment (SPA) 17-0002

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

ACTION: Notice of hearing: reconsideration of disapproval.

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

SUMMARY: This notice announces an administrative hearing to be held on 
January 15, 2019, at the Department of Health and Human Services, 
Centers for Medicare & Medicaid Services, Division of Medicaid and 
Children's Health, Seattle Regional Office, 701 Fifth Avenue, Suite 
1600, Seattle, WA 98104 to reconsider CMS' decision to disapprove 
Washington's Medicaid SPA 17-0002.

DATES: Requests to participate in the hearing as a party must be 
received by the presiding officer by December 20, 2018.

FOR FURTHER INFORMATION CONTACT: Benjamin R. Cohen, Presiding Officer, 
CMS, 2520 Lord Baltimore Drive, Suite L, Baltimore, Maryland 21244, 
Telephone: (410) 786-3169.

SUPPLEMENTARY INFORMATION: This notice announces an administrative 
hearing to reconsider CMS' decision to disapprove Washington's Medicaid 
state plan amendment (SPA) 17-0002, which was submitted to the Centers 
for Medicare & Medicaid Services (CMS) on June 26, 2017 and disapproved 
on September 10, 2018. This SPA requested CMS approval to: Bring 
Washington into compliance with the pharmacy reimbursement requirements 
in the Covered Outpatient Drugs final rule with comment period (CMS-
2345-FC) (Final Rule). Specifically, SPA 17-0002 proposed to revise the 
current pharmacy reimbursement methodology from reimbursing for 
ingredient costs based on Estimated Acquisition Cost (EAC), plus a 
tiered dispensing fee (High-volume pharmacies $4.24/Rx, Mid-volume 
pharmacies $4.56/Rx, Low-volume pharmacies $5.25/Rx, and Unit Does 
System $5.25/Rx), to reimbursing for ingredient cost based on Actual 
Acquisition Cost (AAC), using the National Average Drug Acquisition 
Cost (NADAC) without a change in the new requirements for a 
professional dispensing fee. In addition, SPA 17-0002 included proposed 
changes to reimbursement for 340B drugs, physician-administered drugs, 
clotting factor, federal supply schedule, and drugs purchased at 
nominal price.
    The issues to be considered at the hearing are whether Washington 
SPA 17-0002 is inconsistent with the requirements of:
     Section 1902(a)(30)(A) of the Social Security Act (the 
Act) which requires, in part, that states have a state plan that 
provides such methods and procedures to assure that payment rates are 
consistent with efficiency, economy, and quality of care and are 
sufficient to enlist enough providers so that care and services are 
available under the plan at least to the extent that such care and 
services are available to the general population in the geographic 
area.
     Federal regulations at 42 CFR 447.502, 447.512 and 447.518 
which provide that payments for drugs are to be based on the ingredient 
cost of the drug based on AAC and a Professional Dispensing Fee (PDF).
    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 in the Federal Register 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 state Medicaid agency of additional issues that 
will be considered at the hearing, we will also publish that notice in 
the Federal Register.
    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 Washington announcing an administrative hearing to 
reconsider the disapproval of its SPA reads as follows:

Ms. MaryAnne Lindeblad
Director
State of Washington, Health Care Authority
626 8th Avenue PO Box 45502
Olympia, WA 98504-5050

Dear Ms. Lindeblad:
I am responding to your November 5, 2018 request for reconsideration of 
the decision to disapprove Washington's State Plan amendment (SPA) 17-
0002. Washington SPA 17-0002 was submitted to the Centers for Medicare 
& Medicaid Services (CMS) on June 26, 2017, and disapproved on 
September 10, 2018. I am scheduling a hearing on your request for 
reconsideration to be held on January 15, 2019, at the Department of 
Health and Human Services, Centers for Medicare & Medicaid Services, 
Division of Medicaid and Children's Health, Seattle Regional Office, 
701 Fifth Avenue, Suite 1600, Seattle, WA 98104.
    I am designating Mr. Benjamin R. Cohen as the presiding officer. If 
these arrangements present any problems, please contact Mr. Cohen at 
(410) 786-3169. In order to facilitate any communication that may be 
necessary between the parties prior 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. If the hearing date is not 
acceptable, Mr. Cohen can set another date mutually agreeable to the 
parties. The hearing will be governed by the procedures prescribed by 
federal regulations at 42 CFR part 430.
    This SPA requested CMS approval to bring Washington into compliance 
with the pharmacy reimbursement requirements in the Covered Outpatient 
Drugs final rule with comment period (CMS-2345-FC) (Final Rule). 
Specifically, SPA 17-0002 proposed to revise the current pharmacy 
reimbursement methodology from reimbursing for ingredient costs based 
on Estimated Acquisition Cost (EAC), plus a tiered dispensing fee 
(High-volume pharmacies $4.24/Rx, Mid-volume pharmacies $4.56/Rx, Low-
volume pharmacies $5.25/Rx, and Unit Does System $5.25/Rx), to 
reimbursing for ingredient cost based on Actual Acquisition Cost (AAC), 
using the National Average Drug Acquisition Cost (NADAC) without a 
change in the new requirements for a professional dispensing fee. In 
addition, SPA 17-0002 included proposed changes to reimbursement for 
340B drugs, physician-administered drugs, clotting factor, federal 
supply schedule, and drugs purchased at nominal price.

[[Page 62870]]

    The issues to be considered at the hearing are whether Washington 
SPA 17-0027 is inconsistent with the requirements of:

 Section 1902(a)(30)(A) of the Social Security Act (the Act) 
which requires, in part, that states have a state plan that provides 
such methods and procedures to assure that payments are consistent with 
efficiency, economy, and quality of care and are sufficient to enlist 
enough providers so that care and services are available under the plan 
at least to the extent that such care and services are available to the 
general population in the geographic area.
 Federal regulations at 42 CFR 447.502, 447.512 and 447.518 
which provide that payments for drugs are to be based on the ingredient 
cost of the drug based on AAC and a Professional Dispensing Fee (PDF).

In the event that CMS and the State come to agreement on resolution of 
the issues which formed the basis for disapproval, this SPA may be 
moved to approval prior to the scheduled hearing.

Sincerely,
Seema Verma
Administrator
cc: Benjamin R. Cohen

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

    Dated: November 30, 2018.
Seema Verma,
Administrator, Centers for Medicare & Medicaid Services.
[FR Doc. 2018-26495 Filed 12-4-18; 8:45 am]
 BILLING CODE 4120-01-P



                                                                          Federal Register / Vol. 83, No. 234 / Thursday, December 6, 2018 / Notices                                           62869

                                               Jeffrey M. Zirger,                                      Acquisition Cost (AAC), using the                     Director
                                               Acting Lead, Information Collection Review              National Average Drug Acquisition Cost                State of Washington, Health Care
                                               Office, Office of Scientific Integrity, Office          (NADAC) without a change in the new                   Authority
                                               of Science, Centers for Disease Control and             requirements for a professional                       626 8th Avenue PO Box 45502
                                               Prevention (CDC).                                       dispensing fee. In addition, SPA 17–                  Olympia, WA 98504–5050
                                               [FR Doc. 2018–26351 Filed 12–4–18; 8:45 am]             0002 included proposed changes to                     Dear Ms. Lindeblad:
                                               BILLING CODE 4163–18–P                                  reimbursement for 340B drugs,                         I am responding to your November 5,
                                                                                                       physician-administered drugs, clotting                2018 request for reconsideration of the
                                                                                                       factor, federal supply schedule, and                  decision to disapprove Washington’s
                                               DEPARTMENT OF HEALTH AND                                drugs purchased at nominal price.                     State Plan amendment (SPA) 17–0002.
                                               HUMAN SERVICES                                             The issues to be considered at the                 Washington SPA 17–0002 was
                                                                                                       hearing are whether Washington SPA                    submitted to the Centers for Medicare &
                                               Centers for Medicare & Medicaid
                                                                                                       17–0002 is inconsistent with the                      Medicaid Services (CMS) on June 26,
                                               Services
                                                                                                       requirements of:                                      2017, and disapproved on September
                                               Notice of Hearing: Reconsideration of                      • Section 1902(a)(30)(A) of the Social             10, 2018. I am scheduling a hearing on
                                               Disapproval Washington Medicaid                         Security Act (the Act) which requires, in             your request for reconsideration to be
                                               State Plan Amendment (SPA) 17–0002                      part, that states have a state plan that              held on January 15, 2019, at the
                                                                                                       provides such methods and procedures                  Department of Health and Human
                                               AGENCY: Centers for Medicare &                          to assure that payment rates are                      Services, Centers for Medicare &
                                               Medicaid Services (CMS), HHS.                           consistent with efficiency, economy,                  Medicaid Services, Division of Medicaid
                                               ACTION: Notice of hearing:                              and quality of care and are sufficient to             and Children’s Health, Seattle Regional
                                               reconsideration of disapproval.                         enlist enough providers so that care and              Office, 701 Fifth Avenue, Suite 1600,
                                                                                                       services are available under the plan at              Seattle, WA 98104.
                                               SUMMARY:   This notice announces an                     least to the extent that such care and
                                               administrative hearing to be held on                                                                             I am designating Mr. Benjamin R.
                                                                                                       services are available to the general                 Cohen as the presiding officer. If these
                                               January 15, 2019, at the Department of                  population in the geographic area.
                                               Health and Human Services, Centers for                                                                        arrangements present any problems,
                                                                                                          • Federal regulations at 42 CFR                    please contact Mr. Cohen at (410) 786–
                                               Medicare & Medicaid Services, Division                  447.502, 447.512 and 447.518 which
                                               of Medicaid and Children’s Health,                                                                            3169. In order to facilitate any
                                                                                                       provide that payments for drugs are to                communication that may be necessary
                                               Seattle Regional Office, 701 Fifth                      be based on the ingredient cost of the
                                               Avenue, Suite 1600, Seattle, WA 98104                                                                         between the parties prior to the hearing,
                                                                                                       drug based on AAC and a Professional                  please notify the presiding officer to
                                               to reconsider CMS’ decision to                          Dispensing Fee (PDF).
                                               disapprove Washington’s Medicaid SPA                                                                          indicate acceptability of the hearing
                                                                                                          Section 1116 of the Act and federal                date that has been scheduled and
                                               17–0002.                                                regulations at 42 CFR part 430 establish              provide names of the individuals who
                                               DATES: Requests to participate in the                   Department procedures that provide an                 will represent the State at the hearing.
                                               hearing as a party must be received by                  administrative hearing for                            If the hearing date is not acceptable, Mr.
                                               the presiding officer by December 20,                   reconsideration of a disapproval of a                 Cohen can set another date mutually
                                               2018.                                                   state plan or plan amendment. CMS is                  agreeable to the parties. The hearing
                                               FOR FURTHER INFORMATION CONTACT:                        required to publish in the Federal                    will be governed by the procedures
                                               Benjamin R. Cohen, Presiding Officer,                   Register a copy of the notice to a state              prescribed by federal regulations at 42
                                               CMS, 2520 Lord Baltimore Drive, Suite                   Medicaid agency that informs the                      CFR part 430.
                                               L, Baltimore, Maryland 21244,                           agency of the time and place of the                      This SPA requested CMS approval to
                                               Telephone: (410) 786–3169.                              hearing, and the issues to be considered.             bring Washington into compliance with
                                               SUPPLEMENTARY INFORMATION: This                         If we subsequently notify the state                   the pharmacy reimbursement
                                               notice announces an administrative                      Medicaid agency of additional issues                  requirements in the Covered Outpatient
                                               hearing to reconsider CMS’ decision to                  that will be considered at the hearing,               Drugs final rule with comment period
                                               disapprove Washington’s Medicaid state                  we will also publish that notice in the               (CMS–2345–FC) (Final Rule).
                                               plan amendment (SPA) 17–0002, which                     Federal Register.                                     Specifically, SPA 17–0002 proposed to
                                               was submitted to the Centers for                           Any individual or group that wants to              revise the current pharmacy
                                               Medicare & Medicaid Services (CMS) on                   participate in the hearing as a party                 reimbursement methodology from
                                               June 26, 2017 and disapproved on                        must petition the presiding officer                   reimbursing for ingredient costs based
                                               September 10, 2018. This SPA requested                  within 15 days after publication of this              on Estimated Acquisition Cost (EAC),
                                               CMS approval to: Bring Washington into                  notice, in accordance with the                        plus a tiered dispensing fee (High-
                                               compliance with the pharmacy                            requirements contained at 42 CFR                      volume pharmacies $4.24/Rx, Mid-
                                               reimbursement requirements in the                       430.76(b)(2). Any interested person or                volume pharmacies $4.56/Rx, Low-
                                               Covered Outpatient Drugs final rule                     organization that wants to participate as             volume pharmacies $5.25/Rx, and Unit
                                               with comment period (CMS–2345–FC)                       amicus curiae must petition the                       Does System $5.25/Rx), to reimbursing
                                               (Final Rule). Specifically, SPA 17–0002                 presiding officer before the hearing                  for ingredient cost based on Actual
                                               proposed to revise the current pharmacy                 begins in accordance with the                         Acquisition Cost (AAC), using the
                                               reimbursement methodology from                          requirements contained at 42 CFR                      National Average Drug Acquisition Cost
                                               reimbursing for ingredient costs based                  430.76(c). If the hearing is later                    (NADAC) without a change in the new
khammond on DSK30JT082PROD with NOTICES




                                               on Estimated Acquisition Cost (EAC),                    rescheduled, the presiding officer will               requirements for a professional
                                               plus a tiered dispensing fee (High-                     notify all participants.                              dispensing fee. In addition, SPA 17–
                                               volume pharmacies $4.24/Rx, Mid-                           The notice to Washington announcing                0002 included proposed changes to
                                               volume pharmacies $4.56/Rx, Low-                        an administrative hearing to reconsider               reimbursement for 340B drugs,
                                               volume pharmacies $5.25/Rx, and Unit                    the disapproval of its SPA reads as                   physician-administered drugs, clotting
                                               Does System $5.25/Rx), to reimbursing                   follows:                                              factor, federal supply schedule, and
                                               for ingredient cost based on Actual                     Ms. MaryAnne Lindeblad                                drugs purchased at nominal price.


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                                               62870                               Federal Register / Vol. 83, No. 234 / Thursday, December 6, 2018 / Notices

                                                  The issues to be considered at the                                    Seema Verma                                                   Social Security Act (the Act) for each
                                               hearing are whether Washington SPA                                       Administrator                                                 public child welfare agency requesting
                                               17–0027 is inconsistent with the                                         cc: Benjamin R. Cohen                                         Federal funding for foster care, adoption
                                               requirements of:                                                                                                                       assistance and guardianship assistance
                                                                                                                          Section 1116 of the Social Security Act (42
                                               • Section 1902(a)(30)(A) of the Social                                   U.S.C. 1316; 42 CFR 430.18) (Catalog of                       under the Act. Section 479B of the Act
                                                  Security Act (the Act) which requires,                                Federal Domestic Assistance program No.                       provides for an Indian tribe, tribal
                                                  in part, that states have a state plan                                13.714. Medicaid Assistance Program.)                         organization or tribal consortium (Tribe)
                                                  that provides such methods and                                                                                                      to operate a title IV–E program in the
                                                                                                                          Dated: November 30, 2018.
                                                  procedures to assure that payments                                                                                                  same manner as a State with minimal
                                                                                                                        Seema Verma,                                                  exceptions. The Tribe must have an
                                                  are consistent with efficiency,
                                                                                                                        Administrator, Centers for Medicare &                         approved title IV–E Plan. The title IV–
                                                  economy, and quality of care and are                                  Medicaid Services.
                                                  sufficient to enlist enough providers                                                                                               E plan provides assurances the
                                                                                                                        [FR Doc. 2018–26495 Filed 12–4–18; 8:45 am]                   programs will be administered in
                                                  so that care and services are available
                                                  under the plan at least to the extent
                                                                                                                        BILLING CODE 4120–01–P                                        conformity with the specific
                                                  that such care and services are                                                                                                     requirements stipulated in title IV–E.
                                                  available to the general population in                                                                                              The plan must include all applicable
                                                                                                                        DEPARTMENT OF HEALTH AND                                      State or Tribal statutory, regulatory, or
                                                  the geographic area.                                                  HUMAN SERVICES
                                               • Federal regulations at 42 CFR                                                                                                        policy references and citations for each
                                                  447.502, 447.512 and 447.518 which                                                                                                  requirement as well as supporting
                                                                                                                        Administration for Children and
                                                  provide that payments for drugs are to                                                                                              documentation. A title IV–E agency may
                                                                                                                        Families
                                                  be based on the ingredient cost of the                                                                                              use the pre-print format prepared by the
                                                  drug based on AAC and a Professional                                  Submission for OMB Review;                                    Children’s Bureau of the Administration
                                                  Dispensing Fee (PDF).                                                 Comment Request                                               for Children and Families or a different
                                                                                                                                                                                      format, on the condition that the format
                                               In the event that CMS and the State                                        Title: Plan for Foster Care and                             used includes all of the title IV–E plan
                                               come to agreement on resolution of the                                   Adoption Assistance: Title IV–E of the                        requirements of the law.
                                               issues which formed the basis for                                        Social Security Act.                                            Respondents: Title IV–E agencies
                                               disapproval, this SPA may be moved to                                      OMB No.: 0970–0433.                                         administering or supervising the
                                               approval prior to the scheduled hearing.                                   Description: A title IV–E plan is                           administration of the title IV–E
                                               Sincerely,                                                               required by section 471, part IV–E of the                     programs.

                                                                                                                                 ANNUAL BURDEN ESTIMATES
                                                                                                                                                                                     Number of             Average
                                                                                                                                                                    Number of         responses         burden hours   Total burden
                                                                                               Instrument                                                          respondents           per                 per          hours
                                                                                                                                                                                     respondent           response

                                               Title IV–E Plan .................................................................................................         17               1                 16             272



                                                 Estimated Total Annual Burden                                          of Management and Budget, Paperwork                             OMB No.: 0970–0177.
                                               Hours: 272.                                                              Reduction Project, Email: OIRA_                                  Description: The information obtained
                                                 Additional Information: Copies of the                                  SUBMISSION@OMB.EOP.GOV, Attn:                                 from this form will be used to: (1)
                                               proposed collection may be obtained by                                   Desk Officer for the Administration for                       Report Child Support Enforcement
                                               writing to the Administration for                                        Children and Families.                                        activities to the Congress as required by
                                               Children and Families, Office of                                                                                                       law; (2) calculate incentive measures
                                                                                                                        Robert Sargis,
                                               Planning, Research and Evaluation, 330                                                                                                 performance and performance
                                                                                                                        Reports Clearance Officer.
                                               C Street SW, Washington, DC 20201.                                                                                                     indicators utilized in the program; and
                                                                                                                        [FR Doc. 2018–26416 Filed 12–4–18; 8:45 am]
                                               Attention Reports Clearance Officer. All                                                                                               (3) assist the Office of Child Support
                                               requests should be identified by the title                               BILLING CODE 4184–01–P
                                                                                                                                                                                      Enforcement (OCSE) in monitoring and
                                               of the information collection. Email                                                                                                   evaluating State Child Support
                                               address: infocollection@acf.hhs.gov.                                                                                                   programs.
                                                                                                                        DEPARTMENT OF HEALTH AND
                                                 OMB Comment: OMB is required to
                                                                                                                        HUMAN SERVICES                                                  OCSE is proposing updates to the
                                               make a decision concerning the
                                               collection of information between 30                                                                                                   OCSE–157 report instructions to update
                                                                                                                        Administration for Children and                               and clarify reporting requirements.
                                               and 60 days after publication of this                                    Families
                                               document in the Federal Register.                                                                                                      Respondents are encouraged to contact
                                               Therefore, a comment is best assured of                                  Submission for OMB Review;                                    the agency to obtain a copy of the
                                               having its full effect if OMB receives it                                Comment Request                                               revised instructions for review and
                                                                                                                                                                                      comment.
khammond on DSK30JT082PROD with NOTICES




                                               within 30 days of publication. Written
                                               comments and recommendations for the                                       Title: OCSE–157 Child Support                                 Respondents: State, Local or Tribal
                                               proposed information collection should                                   Enforcement Program Annual Data                               Government.
                                               be sent directly to the following: Office                                Report




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Document Created: 2018-12-05 02:36:11
Document Modified: 2018-12-05 02:36:11
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 hearing: reconsideration of disapproval.
DatesRequests to participate in the hearing as a party must be received by the presiding officer by December 20, 2018.
ContactBenjamin R. Cohen, Presiding Officer, CMS, 2520 Lord Baltimore Drive, Suite L, Baltimore, Maryland 21244, Telephone: (410) 786-3169.
FR Citation83 FR 62869 

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