Subject of Possible Rule Making: WAC 182-538-070 Payments and sanctions for managed care organizations (MCOs) in integrated managed care regional service areas; new section(s) under chapter 182-538 WAC, Managed care, regarding sanctions for managed care organizations; other related rules as appropriate.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The agency intends to develop and revise rules that allow it to be flexible in its approach to sanctions with managed care organizations, as authorized by 42 C.F.R. 438.702(b). During the course of this review, the agency may identify additional related changes that are required in order to improve clarity or update policy.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Centers for Medicare and Medicaid Services.

Process for Developing New Rule: The agency welcomes the public to take part in developing this rule. If interested, contact the person identified below to receive an early rule draft to review. After the early review, the agency will send a notice of proposed rule making (CR-102) to everyone receiving this notice and anyone who requests a copy.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Melinda Froud, Rulemaking Questions, P.O. Box 42716, Olympia, WA 98504-2716, phone 360-725-1408, fax 360-586-9727, telecommunication[s] relay service (TRS) 711, email melinda.froud@hca.wa.gov, website www.hca.wa.gov/about-hca/rulemaking; or Michael Brown, Program Questions, P.O. Box 45503, Olympia, WA 98504-5503, phone 360-725-0913, fax 360-586-9727, TRS 711, email michael.brown@hca.wa.gov, website www.hca.wa.gov/about-hca/rulemaking.