Subject of Possible Rule Making: WAC 388-538-112, the Medical Assistance Administration's (MAA's) fair hearing process for enrollee appeals of managed care organization (MCO) actions.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 74.08.090, 74.09.522, 74.09.450.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: On September 2, 2003, the Medical Assistance Administration filed a rule-making order amending chapter 388-538 WAC, Managed care, under WSR 03-18-110. This filing amended the managed care rules to bring the program into compliance with the federal Balanced Budget Act (BBA) of 1997. Due to an administrative error, WAC 388-538-112(5) omitted listing the department as a party to the MAA fair hearing, and did not state the time limit for a fair hearing. It is MAA's intention to correct these errors with this rule-making action.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

     Process for Developing New Rule: The department invites the interested public to review and comment on draft material. For information about how to participate, contact the person listed below.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Ann Myers, Rules and Publications Section, P.O. Box 45533, Olympia, WA 98504, phone (360) 725-1345, fax (360) 586-9727, e-mail myersea@dshs.wa.gov.

October 20, 2003

Brian H. Lindgren, Manager

Rules and Policies Assistance Unit

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