Medicare Advantage and Section 1876 Cost Plan Network Adequacy Guidance (Last updated: , 2018) February 20 Medicare Advantage and Section 1876 Cost Plan Network Adequacy Guidance (Last updated: February 20, 2018) Medicare Advantage and Section 1876 Cost Plan Network Adequacy Guidance (Last updated: , 2018) February 20 Table of Contents 1. Introduction ..............................................................................................................................1 1.1. Network Adequacy Requirements..............................................................................1 1.1.1. Triennial Network Adequacy Review .................................................................1 1.1.2. Triggering Events...............................................................................................2 1.1.3. Timing of Network Adequacy Reviews ...............................................................2 1.2. Compliance/Enforcement Actions ..............................................................................3 1.3. Ensuring Access to Care ..............................................................................................3 1.4. Document Organization ..............................................................................................3 2. Specialty Types .........................................................................................................................6 2.1. Selection of Provider and Facility Specialty Types ...................................................6 2.2. Current Specialty Types ..............................................................................................6 3. Quantitative Measurements of Network Adequacy ..............................................................7 3.1. Methodology for Measuring Access to Covered Services ........................................7 3.1.1. County Type Designations .................................................................................7 3.1.2. Minimum Number Requirement .........................................................................8 3.1.3. Maximum Time and Distance Standard ...........................................................10 4. Health Service Delivery Table Upload Instructions ...........................................................17 4.1. Populating the HSD Tables .......................................................................................17 4.1.1. Provider HSD Table ........................................................................................17 4.1.2. Facility HSD Table ..........................................................................................18 4.2. Organization-Initiated Testing of Contracted Networks .......................................18 5. Exception Requests for Network Adequacy Criteria .........................................................20 5.1. Exception Request Upload Instructions...................................................................21 5.2. County Type Considerations ....................................................................................21 5.3. Rationales for Not Contracting.................................................................................21 5.3.1. Invalid Rationales ............................................................................................21 5.3.2. Valid Rationales ...............................................................................................22 5.3.3 Expanded Flexibility for Rural Areas ..............................................................23 5.4. Pattern of Care Rationales ........................................................................................23 pg. i Medicare Advantage and Section 1876 Cost Plan Network Adequacy Guidance (Last updated: February 20, 2018) 6. Partial Counties ......................................................................................................................25 6.1. Necessary .........................................................................................................................25 6.2. Nondiscriminatory ..........................................................................................................26 6.3. In the Best Interests of the Beneficiaries .......................................................................26 6.4. Partial County Justification Submission Instructions .................................................26 6.4.1 Partial County Request in the Application Module .........................................26 6.4.2 Partial County Request for the Network Management Module .......................27 7. Provider-Specific Plans .........................................................................................................28 8. Regional Preferred Provider Organizations .......................................................................29 8.1. Requesting an Exception to Network Adequacy Criteria ......................................29 8.2. RPPO-Specific Exception to Written Agreements..................................................29 8.2.1. RPPO-Specific Exception Request in the Application Module ........................29 8.2.2. RPPO-Specific Exception Request for the Network Management Module .....29 9. Sub-Networks .........................................................................................................................31 Appendix A: Frequently Asked Questions ...............................................................................32 A-1. General Network Adequacy ......................................................................................32 A-2. Specialty Types ...........................................................................................................34 A-3. Quantitative Standards .............................................................................................35 A-4. Health Service Delivery Table Uploads in HPMS ..................................................36 A-5. Exceptions ...................................................................................................................40 A-6. Partial Counties ..........................................................................................................43 A-7. Provider-Specific Plan ...............................................................................................44 A-8. Regional Preferred Provider Organizations (RPPO) .............................................45 A-9. Sub-Networks .............................................................................................................46 Appendix B: Guidance on Developing Valid Addresses .........................................................48 Appendix C: Provider Specialty Type Codes ...........................................................................50 Appendix D: Facility Specialty Type Codes .............................................................................52 Appendix E: Exception Request Template ..............................................................................53 Appendix F: Partial County Justification Template ...............................................................57 Appendix G: Provider HSD Table ............................................................................................59 pg. ii Medicare Advantage and Section 1876 Cost Plan Network Adequacy Guidance (Last updated: February 20, 2018) Appendix H: Provider HSD Table Definitions .........................................................................60 Appendix I: Facility HSD Table ...............................................................................................62 Appendix J: Facility HSD Table Definitions ...........................................................................63 Appendix K: Regional Preferred Provider Organization (RPPO) Upload Template ..........65 pg. iii Medicare Advantage and Section 1876 Cost Plan Network Adequacy Guidance (Last updated: , 2018) February 20 1. Introduction The Centers for Medicare & Medicaid Services (CMS) regulations at 42 CFR 417.414, 42 CFR 417.416, 42 CFR 422.112(a)(1)(i), and 42 CFR 422.114(a)(3)(ii) require that all Medicare Advantage organizations (MAOs) offering coordinated care plans, network-based private fee- for-service (PFFS) plans, and network-based medical savings account (MSA) plans, as well as section 1876 cost organizations, maintain a network of appropriate providers that is sufficient to provide adequate access to covered services to meet the needs of the population served. These organization types must provide enrollees health care services through a contracted network of providers that is consistent with the pattern of care in the network service area (see 42 CFR 422.112(a)(10)). Medicare Advantage (MA) regional preferred provider organizations (RPPOs) are an exception and, under specified conditions and upon CMS pre-approval, can arrange for care in portions of a regional service area on a non-network basis (42 CFR 422.112(a)(1)(ii)). 1.1. Network Adequacy Requirements Organizations must meet current network adequacy requirements.1 CMS expects that organizations continuously monitor their contracted networks throughout the respective contract year to ensure compliance with the current network adequacy criteria. CMS also monitors an organization’s compliance with network adequacy requirements. Each year, CMS assesses health care industry trends and enrollee health care needs to establish network adequacy criteria. This network adequacy criteria includes provider and facility specialty types that must be available consistent with CMS number, time, and distance standards. Access to each specialty type is assessed using quantitative standards based on the local availability of providers and facilities to ensure that organizations contract with a sufficient number of providers and facilities to furnish health care services without placing undue burden on enrollees seeking covered services. CMS programs the network adequacy criteria into the Network Management Module (NMM) in the Health Plan Management System (HPMS) to facilitate an automated review of an organization’s network adequacy. See section 2 and section 3 for discussion of the current network adequacy criteria. CMS also provides organizations an opportunity to request exception(s) to the network adequacy criteria and reviews those requests manually. As discussed in section 5, valid exceptions to the network adequacy criteria occur where there has been a change to the health care landscape that is not currently reflected in the network adequacy criteria. Organizations should also reference chapter 4 of the Medicare Managed Care Manual (MMCM) for more information on network adequacy requirements.2 1.1.1. Triennial Network Adequacy Review CMS monitors network compliance by reviewing organizations’ networks on a triennial basis (i.e., every three years). The triennial network adequacy review requires an organization to upload its full contract-level network into the NMM in HPMS. CMS provides organizations that are due for their triennial review at least 60 days’ notice before the deadline to submit their networks. The triennial network adequacy review cycle helps to ensure a consistent process for network oversight and monitoring. For more information, please see the Office of Management 1 The term “organization” is used throughout this document to refer to both MA organizations and section 1876 cost organizations. 2 The MMCM is available on CMS’s website. pg. 1 Medicare Advantage and Section 1876 Cost Plan Network Adequacy Guidance (Last updated: February 20, 2018) and Budget (OMB)-approved information collection “Triennial Network Adequacy Review for Medicare Advantage Organizations and 1876 Cost Plans” (OMB 0938-1346, CMS-10636). 1.1.2. Triggering Events In addition to the triennial network adequacy review, CMS may perform a network review after specific triggering events. Triggering events include: 1. Initial application: Any organization seeking to offer a new contract must demonstrate compliance with network adequacy requirements in the proposed service area. 2. Service area expansion (SAE) application: Any organization seeking to expand the service area of an existing contract must demonstrate compliance with network adequacy requirements in the proposed service area. 3. Significant Provider/facility contract termination: When a contract between an organization and a provider or facility is terminated, and CMS determines it to be significant, then CMS may request to review the network in order to ensure the organization’s ongoing compliance with network adequacy requirements. For more information on significant network changes, please refer to chapter 4 of the MMCM. 4. Change of ownership transaction: As defined in 42 CFR 422, Subpart L, a change of ownership is the transfer of title, assets, and property to the new owner or acquiring entity that becomes the successor in interest to the current owner’s contract(s). Acquiring entities that have not been approved by CMS to operate in the acquired service area may need to demonstrate compliance with network adequacy requirements. If required, CMS will provide acquiring entities with the necessary instructions for submitting their contracted network for CMS review. Existing organizations should reference the change of ownership requirements in chapter 12 of the MMCM for additional information regarding CMS notification requirements. 5. Network access complaint: If CMS receives complaints from an enrollee, caregiver, or other source that indicates an organization is not providing sufficient access to covered health care services, CMS may elect to review the organization’s contracted network. 6. Organization-disclosed network gap: CMS expects that organizations continuously monitor their networks for compliance with the current network adequacy requirements. CMS encourages organizations to notify their CMS Account Managers upon discovery that their network is out of compliance. Once notified, CMS will request that the organization upload its contracted network for CMS review. The extent of the CMS network adequacy review varies based on the specific circumstances of the triggering event. An initial application always prompts a full network review, while an SAE application prompts a partial network review of only the new counties. Triggering events 3-6 as detailed above may prompt either a full or partial network review. CMS will provide organizations with specific instructions for submitting their contracted networks and identify a specific submission timeframe. If an organization experiences a triggering event requiring a full network review, then the timing of that organization’s subsequent triennial review may be reset. 1.1.3. Timing of Network Adequacy Reviews Prior to the formal network review, CMS provides all organizations the opportunity to upload their networks in the NMM for an informal review. CMS provides technical assistance, guidance, and consultation to organizations that want to take advantage of this opportunity. pg. 2 Medicare Advantage and Section 1876 Cost Plan Network Adequacy Guidance (Last updated: February 20, 2018) However, CMS must give priority to initial and SAE applicants and organizations due for their triennial review before assisting other organizations requesting an informal review. All organizations submit their bids by the first Monday in June, reflecting their assumed service area for the upcoming coverage year. Initial and SAE applicants and organizations due for their triennial review must upload their health service delivery (HSD) tables into the NMM in mid- June for CMS review.3 Initial and SAE applicants must upload their tables for the upcoming contract year, while organizations due for their triennial review must upload their tables for the current contract year. Organizations will not be permitted to resubmit revised Bid Pricing Tools (BPTs) or adjust assumptions in the previously submitted BPTs, but can terminate plan benefit package(s) prior to signing their contract. 1.2. Compliance/Enforcement Actions Organizations that fail to meet network adequacy requirements during their triennial review may be subject to compliance or enforcement actions. Initial applicants that fail to meet network adequacy requirements may be suppressed from Medicare Plan Finder for the upcoming Annual Election Period until the initial applicant is determined to have an adequate network in place and is prepared to provide access to services under such network in the new contract. Both initial and SAE applicants that fail to meet the network adequacy requirements by January 1 (when services must be provided under the new contract or service area) may also be subject to compliance or enforcement actions. 1.3. Ensuring Access to Care Organizations that fail to meet network adequacy requirements must ensure access to specialty care by permitting enrollees to see out-of-network specialists at the individual enrollee’s in- network cost sharing level for those counties/specialties that fail to have an adequate network (42 CFR 422.112(a)(3)) and may need to make alternate arrangements if the network of primary care providers is not sufficient to ensure access to medically necessary care (42 CFR 422.112(a)(2)). Organizations must also notify affected enrollees at least 30 days in advance of the effective date of applicable changes in rules to address the inadequate network (42 CFR 422.111(d)(3)). 1.4. Document Organization The remaining sections of this document provide detailed guidance related to CMS’s network adequacy requirements. This document is organized as follows. 3 For more information on HSD tables, please see section 4. pg. 3 Medicare Advantage and Section 1876 Cost Plan Network Adequacy Guidance (Last updated: February 20, 2018) Section Section Title Description Number 1 Introduction This section provides an introduction to CMS’s network adequacy requirements, network review guidance, information on compliance/enforcement actions, and requirements for ensuring access to care. 2 Specialty Types This section identifies CMS methodology for establishing the specialty types CMS will assess in order to determine that an organization’s contracted network provides sufficient access to covered services. 3 Quantitative This section discusses CMS’s methodology Measurements of Network for establishing quantitative measurements Adequacy for each specialty type listed under section 2. 4 Health Service Delivery This section describes how organizations Table Upload Instructions submit contracted networks for review against CMS’s network adequacy criteria, which is the combination of the specialty types and quantitative measurements outlined under section 2 and section 3. 5 Exception Requests for This section describes the process by which Network Adequacy organizations can request exceptions to Criteria CMS’s quantitative time and distance standards discussed under section 3. 6 Partial Counties This section describes CMS’s requirement that organizations serve full counties and describes the process by which organizations may request an exception to the CMS’s full county policy (also known as the “county integrity rule”). 7 Provider-Specific Plans This section defines provider-specific plans (PSPs) and outlines how and when CMS reviews PSP networks. 8 Regional Preferred This section defines regional preferred Provider Organizations provider organizations (RPPOs) and the unique opportunity afforded to RPPOs for providing access to care for enrollees. 9. Sub-Networks This section defines sub-networks and enrollee access requirements for sub- networks. pg. 4 Medicare Advantage and Section 1876 Cost Plan Network Adequacy Guidance (Last updated: February 20, 2018) In addition to the sections above, there are several appendices that provide additional guidance and templates to organizations. Questions concerning this document should be directed to CMS’s website portal. Please note that the guidance contained in this document does not apply to the following product types: Medicare/Medicaid Plans (MMPs), section 1833 cost plans, and non- network PFFS/MSA plans. pg. 5 Medicare Advantage and Section 1876 Cost Plan Network Adequacy Guidance (Last updated: February 20, 2018) 2. Specialty Types 2.1. Selection of Provider and Facility Specialty Types Through the development of the network adequacy criteria, CMS establishes national standards that would ensure access to covered healthcare services. CMS identifies provider and facility specialty types critical to providing services through a consideration of: • Medicare Fee-for-service (FFS) utilization patterns, • Utilization of provider/facility specialty types in Medicare FFS and managed care programs, • Clinical needs of Medicare beneficiaries, and • Specialty types measured to assess the adequacy of other managed care products (e.g., Tricare, Medicaid, and commercial products). CMS publishes any changes to the specialty types each year on our website. 2.2. Current Specialty Types Currently, CMS measures 27 provider specialty types4 and 14 facility specialty types5 to assess the adequacy of the network for each service area. CMS has created specific codes for each of the provider and facility specialty types which may be found in Appendix C and Appendix D of this document. Organizations must use the codes when completing Provider and Facility HSD Tables. Additional information on specialty types and codes is available in the current HSD Reference File posted on CMS’s website. 4 Primary care providers (specialty code S03) are measured as a single specialty, but submitted under six codes (001 through 006). 5 Beginning in 2018, organizations will not be required to include Orthotics & Prosthetics, Home Health, Durable Medical Equipment, Heart Transplant Program, Heart/Lung Transplant Program, Kidney Transplant Program, Liver Transplant Program, Lung Transplant Program, or Pancreas Transplant Program on their HSD tables. Instead, organizations will attest in their applications that they are able to provide adequate beneficiary access to these specialty types. pg. 6