Original Notice.

     Preproposal statement of inquiry was filed as WSR 12-06-036.

     Title of Rule and Other Identifying Information: WAC 182-501-0135 Patient review and coordination.

     Hearing Location(s): Health Care Authority (HCA), Cherry Street Plaza Building, Sue Crystal Conference Room 106A, 626 8th Avenue, Olympia, WA 98504 (metered public parking is available street side around building. A map is available at http://maa.dshs.wa.gov/pdf/CherryStreetDirectionsNMap.pdf or directions can be obtained by calling (360) 725-1000), on November 27, 2012, at 10:00 a.m.

     Date of Intended Adoption: Not sooner than November 28, 2012.

     Submit Written Comments to: HCA Rules Coordinator, P.O. Box 45504, Olympia, WA 98504-5504, delivery 626 8th Avenue, Olympia, WA 98504, e-mail arc@hca.wa.gov, fax (360) 586-9727, by 5:00 p.m. on November 27, 2012.

     Assistance for Persons with Disabilities: Contact Kelly Richters by November 19, 2012, TTY/TDD (800) 848-5429 or (360) 725-1307 or e-mail kelly.richters@hca.wa.gov.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Pursuant to 2ESHB 1087, effective April 1, 2012, HCA is directed to pay for only medically necessary emergency services performed in the emergency room. HCA is also adding criteria for ADATSA clients and changing the rereview and hearing processes.

     Statutory Authority for Adoption: RCW 41.05.021 and 2ESHB 1087.

     Statute Being Implemented: RCW 41.05.021 and 2ESHB 1087.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: HCA, governmental.

     Name of Agency Personnel Responsible for Drafting: Jason R. P. Crabbe, P.O. Box 45504, Olympia, WA 98504-5504, (360) 725-1346; Implementation and Enforcement: Bernice Lawson, P.O. Box 45530, Olympia, WA 98504-5530, (360) 725-1392.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. The HCA has analyzed the proposed new and amended rules and determines they will not have an adverse economic impact on small businesses. The preparation of a comprehensive small business economic impact statement therefore is not required.

     A cost-benefit analysis is not required under RCW 34.05.328. RCW 34.05.328 does not apply to HCA rules unless requested by the joint administrative rules [review] committee or applied voluntarily.

October 23, 2012

Kevin M. Sullivan

Rules Coordinator

OTS-5078.2

AMENDATORY SECTION(Amending WSR 11-14-075, filed 6/30/11, effective 7/1/11)

WAC 182-501-0135   Patient review and coordination (PRC).   (1) Patient review and coordination (PRC) is a health and safety program((, formerly known as the patient review and restriction (PRR) program,)) that coordinates care and ensures ((that)) clients ((selected for enrollment)) enrolled in PRC use services appropriately and in accordance with ((department)) agency rules and policies.

     (a) PRC applies to medical assistance fee-for-service and managed care clients. ((PRC does not apply to clients eligible for the family planning only program.))

     (b) PRC is authorized under federal medicaid law by 42 U.S.C. 1396n (a)(2) and 42 C.F.R. 431.54.

     (2) Definitions. The following definitions apply to this section only:

     "Appropriate use" -- Use of health care services that are ((adapted to or appropriate)) safe and effective for a client's health care needs.

     "Assigned provider" -- ((A department-enrolled)) An agency-enrolled health care provider or one participating with ((a department)) an agency-contracted managed care organization (MCO) who agrees to be assigned as a primary provider and coordinator of services for a fee-for-service or managed care client in the PRC program. Assigned providers can include a primary care provider (PCP), a pharmacy, a prescriber of controlled substances ((prescriber)), and a hospital for ((nonemergent hospital)) nonemergency services.

     "At-risk" -- A term used to describe one or more of the following:

     (a) A client with a medical history of:

     ((• Indications of forging or altering prescriptions;

     •)) (i) Seeking and((/or)) obtaining health care services at a frequency or amount that is not medically necessary; or

     ((•)) (ii) Potential life-threatening events or life-threatening conditions that required or may require medical intervention.

     (b) Behaviors or practices that could jeopardize a client's medical treatment or health including, but not limited to:

     ((•)) (i) Indications of forging or altering prescriptions;

     (ii) Referrals from medical personnel, social services personnel, or MCO personnel about inappropriate behaviors or practices that place((s)) the client at risk;

     ((•)) (iii) Noncompliance with medical or drug and alcohol treatment;

     ((•)) (iv) Paying cash for medical services that result in a controlled substance prescription or paying cash for controlled substances;

     ((•)) (v) Arrests for diverting controlled substance prescriptions;

     (vi) Positive urine drug screen for illicit street drugs or nonprescribed controlled substances; ((or

     •)) (vii) Negative urine drug screen for prescribed controlled substances; or

     (viii) Unauthorized use of a client's services card ((or)) for an unauthorized purpose.

     "Care management" -- Services provided to clients with multiple health, behavioral, and social needs ((in order)) to improve care coordination, client education, and client self-management skills.

     "Client" -- A person enrolled in ((a department)) an agency health care program and receiving service from fee-for-service provider(s) or ((a managed care organization (MCO),)) an MCO-contracted with the ((department)) agency.

     "Conflicting" -- Drugs ((and/))or health care services that are incompatible ((and/))or unsuitable for use together because of undesirable chemical or physiological effects.

     "Contraindicated" -- ((To indicate or show)) A medical treatment ((or)), procedure, or medication that is inadvisable or not recommended or warranted.

     (("Controlled substances prescriber" -- Any of the following health care professionals who, within their scope of professional practice, are licensed to prescribe and administer controlled substances (see chapter 69.50 RCW, Uniform Controlled Substance Act) for a legitimate medical purpose:

     • A physician under chapter 18.71 RCW;

     • A physician assistant under chapter 18.71A RCW;

     • An osteopathic physician under chapter 18.57 RCW;

     • An osteopathic physician assistant under chapter 18.57A RCW; and

     • An advanced registered nurse practitioner under chapter 18.79 RCW.))

     "Duplicative" -- Applies to the use of the same or similar drugs and health care services without due medical justification. Example: A client receives health care services from two or more providers for the same or similar condition(s) in an overlapping time frame, or the client receives two or more similarly acting drugs in an overlapping time frame, which could result in a harmful drug interaction or an adverse reaction.

     "Emergency department information exchange (EDIE)" -- An internet-delivered service that enables health care providers to better identify and treat high users of the emergency department and special needs patients. When patients enter the emergency room, EDIE can proactively alert health care providers through different venues such as fax, phone, e-mail, or integration with a facility's current electronic medical records.

     "Emergency medical condition" -- See WAC 182-500-0030.

     "Emergency services" -- See 42 C.F.R. 447.53.

     "Just cause" -- A legitimate reason to justify the action taken, including but not limited to, protecting the health and safety of the client.

     (("Managed care organization" or "MCO" -- An organization having a certificate of authority or certificate of registration from the office of insurance commissioner, that contracts with the department under a comprehensive risk contract to provide prepaid health care services to eligible medical assistance clients under the department's managed care programs.))

     "Managed care client" -- A medical assistance client enrolled in, and receiving health care services from, ((a department)) an agency-contracted managed care organization (MCO).

     "Managed care organization" or "MCO" -- See WAC 182-538-050.

     "Prescriber of controlled substances" -- Any of the following health care professionals who, within their scope of professional practice, are licensed to prescribe and administer controlled substances (see chapter 69.50 RCW, Uniform Controlled Substance Act) for a legitimate medical purpose:

     (a) A physician under chapter 18.71 RCW;

     (b) A physician assistant under chapter 18.71A RCW;

     (c) An osteopathic physician under chapter 18.57 RCW;

     (d) An osteopathic physician assistant under chapter 18.57A RCW; and

     (e) An advanced registered nurse practitioner under chapter 18.79 RCW.

     "Primary care provider" or "PCP" -- A person licensed or certified under Title 18 RCW including, but not limited to, a physician, an advanced registered nurse practitioner (ARNP), or a physician assistant (PA) who supervises, coordinates, and provides health care services to a client, initiates referrals for specialty and ancillary care, and maintains the client's continuity of care.

     (3) Clients selected for PRC review. The ((department)) agency or MCO selects a client for PRC review when either or both of the following occur:

     (a) A ((utilization)) usage review report indicates the client has not ((utilized)) used health care services appropriately; or

     (b) Medical providers, social service agencies, or other concerned parties have provided direct referrals to the ((department)) agency or MCO.

     (4) When a fee-for-service client is selected for PRC review, the prior authorization process as defined in ((chapter 388-530)) WAC 182-500-0085 may be required:

     (a) Prior to or during a PRC review; or

     (b) When the client is currently in the PRC program.

     (5) Review for placement in the PRC program. When the ((department)) agency or MCO selects a client for PRC review, the ((department)) agency or MCO staff, with clinical oversight, reviews ((a)) either the client's medical ((and/)) history or billing history, or both, to determine if the client has ((utilized)) used health care services at a frequency or amount that is not medically necessary (42 C.F.R. 431.54(e)).

     (6) ((Utilization)) Usage guidelines for PRC placement. ((Department)) Agency or MCO staff use the following ((utilization)) usage guidelines to determine PRC placement. A client may be placed in the PRC program when either the client's medical ((and/)) history or billing ((histories document)) history, or both, documents any of the following:

     (a) Any two or more of the following conditions occurred in a period of ninety consecutive calendar days in the previous twelve months. The client:

     (i) Received services from four or more different providers, including physicians, ((advanced registered nurse practitioners ())ARNPs(())), and ((physician assistants ())PAs(())) not located in the same clinic or practice;

     (ii) Had prescriptions filled by four or more different pharmacies;

     (iii) Received ten or more prescriptions;

     (iv) Had prescriptions written by four or more different prescribers not located in the same clinic or practice;

     (v) Received similar services ((from two or more providers)) in the same day not located in the same clinic or practice; or

     (vi) Had ten or more office visits.

     (b) Any one of the following occurred within a period of ninety consecutive calendar days in the previous twelve months. The client:

     (i) Made two or more emergency department visits;

     (ii) ((Has a medical history that indicates)) Exhibits "at-risk" ((utilization)) usage patterns;

     (iii) Made repeated and documented efforts to seek health care services that are not medically necessary; or

     (iv) ((Has been)) Was counseled at least once by a health care provider, or ((a department)) an agency or MCO staff member((,)) with clinical oversight, about the appropriate use of health care services.

     (c) The client received prescriptions for controlled substances from two or more different prescribers not located in the same clinic or practice in any one month ((in a period of ninety consecutive days in the previous twelve months)) within the ninety-day review period.

     (d) The ((client's)) client has either a medical ((and/)) history or billing history, or both, that demonstrates a pattern of the following at any time in the previous twelve months:

     (i) ((The client has a history of)) Using health care services in a manner that is duplicative, excessive, or contraindicated; ((or))

     (ii) ((The client has a history of receiving)) Seeking conflicting health care services, drugs, or supplies that are not within acceptable medical practice;

     (iii) Being on substance abuse programs such as the Alcohol and Drug Abuse Treatment and Support Act (ADATSA).

     (7) PRC review results. As a result of the PRC review, the ((department)) agency or MCO ((staff)) may take any of the following steps:

     (a) Determine that no action is needed and close the client's file;

     (b) Send the client and, if applicable, the client's authorized representative((,)) a one-time only letter of concern with information on specific findings and notice of potential placement in the PRC program; or

     (c) Determine that the ((utilization)) usage guidelines for PRC placement establish that the client has ((utilized)) used health care services at an amount or frequency that is not medically necessary, in which case the ((department)) agency or MCO will take one or more of the following actions:

     (i) Refer the client for education on appropriate use of health care services;

     (ii) Refer the client to other support services or agencies; or

     (iii) Place the client into the PRC program for an initial placement period of no less than twenty-four months. For clients younger than eighteen years of age, the MCO must get agency approval prior to placing the client into the PRC program.

     (8) Initial placement in the PRC program. When a client is initially placed in the PRC program:

     (a) The ((department)) agency or MCO places the client for no less than twenty-four months with one or more of the following types of health care providers:

     (i) Primary care provider (PCP) (((as defined in subsection (2) of this section)));

     (ii) Pharmacy for all prescriptions;

     (iii) Prescriber of controlled substances ((prescriber));

     (iv) Hospital ((())for ((nonemergent hospital)) nonemergency services(())) unless referred by the assigned PCP or a specialist. A client may receive covered emergency services from any hospital; or

     (v) Another qualified provider type, as determined by ((department)) agency or MCO program staff on a case-by-case basis.

     (b) The managed care client will remain in the same MCO for no less than twelve months unless:

     (i) The client moves to a residence outside the MCO's service area and the MCO is not available in the new location; or

     (ii) The client's assigned provider no longer participates with the MCO and is available in another MCO, and the client wishes to remain with the current provider; or

     (iii) The client is in a voluntary enrollment program or a voluntary enrollment county.

     (c) A managed care client placed in the PRC program must remain in the PRC program for ((the initial)) no less than twenty-four months ((period)) regardless of whether the client changes MCOs or becomes a fee-for-service client.

     (((d) A care management program may be offered to a client.))

     (9) Notifying the client about placement in the PRC program. When the client is initially placed in the PRC program, the ((department)) agency or the MCO sends the client and, if applicable, the client's authorized representative, a written notice ((containing at least the following components)) that:

     (a) Informs the client of the reason for the PRC program placement;

     (b) Directs the client to respond to the ((department)) agency or MCO within ten business days of the date of the written notice ((about taking the following actions));

     (c) Directs the client to take the following actions:

     (i) Select providers, subject to ((department)) agency or MCO approval;

     (ii) Submit additional health care information, justifying the client's use of health care services; or

     (iii) Request assistance, if needed, from the ((department)) agency or MCO program staff.

     (((c))) (d) Informs the client of hearing or appeal rights (see subsection (14) of this section).

     (((d))) (e) Informs the client that if a response is not received within ten calendar days of the date of the notice, the client will be assigned a provider(s) by the ((department)) agency or MCO.

     (10) Selection and role of assigned provider. A client ((may be afforded)) will have a limited choice of providers.

     (a) The following providers are not available:

     (i) A provider who is being reviewed by the ((department)) agency or licensing authority regarding quality of care;

     (ii) A provider who has been suspended or disqualified from participating as ((a department)) an agency-enrolled or MCO-contracted provider; or

     (iii) A provider whose business license is suspended or revoked by the licensing authority.

     (b) For a client placed in the PRC program, the assigned:

     (i) Provider(s) must be located in the client's local geographic area, in the client's selected MCO, and((/or)) be reasonably accessible to the client.

     (ii) ((Primary care provider ())PCP(())) supervises and coordinates health care services for the client, including continuity of care and referrals to specialists when necessary. ((The PCP must be one of the following:))

     (A) The PCP:

     (I) Provides the plan of care for clients that have documented use of the emergency department for a reason that is not deemed to be an emergency medical condition;

     (II) Files the plan of care with each emergency department that the client is using or with the emergency department information exchange;

     (III) Makes referrals to substance abuse treatment for clients who are using the emergency department for substance abuse issues; and

     (IV) Makes referrals to mental health treatment for clients who are using the emergency department for mental health treatment issues.

     (B) The assigned PCP must be one of the following:

     (I) A physician ((who meets the criteria as defined in chapter 388-502 WAC));

     (((B))) (II) An advanced registered nurse practitioner (ARNP) ((who meets the criteria as defined in chapter 388-502 WAC)); or

     (((C))) (III) A licensed physician assistant (PA), practicing with a supervising physician.

     (iii) Prescriber of controlled substances ((prescriber)) prescribes all controlled substances for the client((.));

     (iv) Pharmacy fills all prescriptions for the client((.)); and

     (v) Hospital provides all ((nonemergent)) hospital nonemergency services.

     (c) A client placed in the PRC program ((cannot change)) must remain with the assigned provider((s)) for twelve months after the assignments are made, unless:

     (i) The client moves to a residence outside the provider's geographic area;

     (ii) The provider moves out of the client's local geographic area and is no longer reasonably accessible to the client;

     (iii) The provider refuses to continue to serve the client;

     (iv) The client did not select the provider. The client may request to change an assigned provider once within thirty calendar days of the initial assignment; or

     (v) The client's assigned provider no longer participates with the MCO. In this case, the client may select a new provider from the list of available providers in the MCO or follow the assigned provider to the new MCO.

     (d) When an assigned prescribing provider no longer contracts with the ((department)) agency or the MCO:

     (i) All prescriptions from the provider are invalid thirty calendar days following the date the contract ends; ((and))

     (ii) All prescriptions from the provider are subject to applicable prescription drugs (outpatient) rules in chapter ((388-530)) 182-530 WAC or appropriate MCO rules((.)); and

     (iii) The client must choose or be assigned another provider according to the requirements in this section.

     (11) PRC placement ((periods)).

     (a) The ((length of time for a client's)) initial PRC placement ((includes:)) is no less than twenty-four consecutive months.

     (((a))) (b) The ((initial period of)) second PRC placement((, which)) is ((a minimum of twenty-four consecutive months.

     (b) The second period of PRC placement, which is)) no less than an additional thirty-six consecutive months.

     (c) ((The third period and)) Each subsequent ((period of)) PRC placement((, which)) is ((an additional)) no less than seventy-two consecutive months.

     (12) ((Department)) Agency or MCO review of a PRC placement period. The ((department)) agency or MCO reviews a client's use of health care services prior to the end of each PRC placement period described in subsection (11) of this section using the ((utilization)) guidelines in subsection (6) of this section.

     (a) The ((department)) agency or MCO assigns the next PRC placement ((period)) if the ((utilization)) usage guidelines for PRC placement in subsection (6) of this section apply to the client.

     (b) When the ((department)) agency or MCO assigns a subsequent PRC placement ((period)), the ((department)) agency or MCO sends the client and, if applicable, the client's authorized representative, a written notice informing the client:

     (i) Of the reason for the subsequent PRC program placement;

     (ii) Of the length of the subsequent PRC placement;

     (iii) That the current providers assigned to the client continue to be assigned to the client during the subsequent PRC placement ((period));

     (iv) That all PRC program rules continue to apply; ((and))

     (v) Of hearing or appeal rights (see subsection (14) of this section); and

     (vi) Of the rules that support the decision.

     (c) The ((department)) agency may remove a client from PRC placement if the client:

     (i) Successfully completes a treatment program that is provided by a chemical dependency service provider certified by the ((department)) agency under chapter 388-805 WAC;

     (ii) Submits documentation of completion of the approved treatment program to the ((department)) agency; and

     (iii) Maintains appropriate use of health care services within the ((utilization)) usage guidelines described in subsection (6) of this section for six consecutive months after the date the treatment ends.

     (d) The ((department)) agency or MCO determines the appropriate placement ((period)) for a client who has been placed back into the program.

     (e) A client will remain placed in the PRC program regardless of change in eligibility program type or change in address.

     (13) Client financial responsibility. A client placed in the PRC program may be billed by a provider and held financially responsible for health care services when the client obtains ((nonemergent)) nonemergency services and the provider who renders the services is not assigned or referred under the PRC program.

     (14) Right to hearing or appeal.

     (a) A fee-for-service client who believes the ((department)) agency has taken an invalid action pursuant to this section may request a hearing.

     (b) A managed care client who believes the MCO has taken an invalid action pursuant to this section or chapter ((388-538)) 182-538 WAC must exhaust the MCO's internal appeal process set forth in WAC ((388-538-110)) 182-538-110 prior to requesting a hearing. Managed care clients ((can not)) cannot change MCOs until the appeal or hearing is resolved and there is a final ruling.

     (c) A client must request the hearing or appeal within ninety calendar days after the client receives the written notice of placement in the PRC program.

     (d) The ((department)) agency conducts a hearing according to chapter ((388-02 WAC)) 388-526 or 182-526 WAC, whichever is applicable at the time of the request for hearing. Definitions for the terms "hearing," "initial order," and "final order" used in this subsection are found in WAC ((388-02-0010)) 388-526-0010 or 182-526-0010, whichever is applicable at the time of the request for hearing.

     (e) A client who requests a hearing or appeal within ten calendar days from the date of the written notice of an initial PRC placement period under subsection (11)(a) of this section will not be placed in the PRC program until the date an initial order is issued that supports the client's placement in the PRC program or otherwise ordered by an administrative law judge (ALJ).

     (f) A client who requests a hearing or appeal more than ten calendar days from the date of the ((written)) notice under subsection (9) of this section will remain placed in the PRC program unless a final administrative order is entered that orders the client's removal from the program.

     (g) A client who requests a hearing or appeal within ninety calendar days from the date of receiving the written notice under subsection (9) of this section and who has already been assigned providers will remain placed in the PRC program unless a final administrative order is entered that orders the client's removal from the program.

     (h) An ((administrative law judge ())ALJ(())) may rule that the client be placed in the PRC program prior to the date the record is closed and prior to the date the initial order is issued based on a showing of just cause.

     (i) The client who requests a hearing challenging placement into the PRC program has the burden of proving the ((department's)) agency's or MCO's action was invalid. For standard of proof, see ((WAC 388-02-0485)) chapter 388-526 or 182-526 WAC, whichever is applicable at the time of the request for hearing.

[11-14-075, recodified as § 182-501-0135, filed 6/30/11, effective 7/1/11. Statutory Authority: RCW 74.08.090. 10-19-057, § 388-501-0135, filed 9/14/10, effective 10/15/10. Statutory Authority: RCW 74.08.090 and 42 C.F.R. 431.51, 431.54(e) and 456.1; 42 U.S.C. 1396n. 08-05-010, § 388-501-0135, filed 2/7/08, effective 3/9/08. Statutory Authority: RCW 74.08.090, 74.09.520, 74.04.055, and 42 C.F.R. 431.54. 06-14-062, § 388-501-0135, filed 6/30/06, effective 7/31/06. Statutory Authority: RCW 74.08.090, 74.04.055, and 42 C.F.R. Subpart B 431.51, 431.54 (e) and (3), and 456.1. 04-01-099, § 388-501-0135, filed 12/16/03, effective 1/16/04. Statutory Authority: RCW 74.08.090. 01-02-076, § 388-501-0135, filed 12/29/00, effective 1/29/01. Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057 and 74.08.090. 98-16-044, § 388-501-0135, filed 7/31/98, effective 9/1/98. Statutory Authority: RCW 74.08.090 and 74.09.522. 97-03-038, § 388-501-0135, filed 1/9/97, effective 2/9/97. Statutory Authority: RCW 74.08.090. 94-10-065 (Order 3732), § 388-501-0135, filed 5/3/94, effective 6/3/94. Formerly WAC 388-81-100.]