Subject of Possible Rule Making: Repealing chapter 388-41 WAC, Medical audit dispute resolution; and new WAC 388-560-1000 Audit dispute resolution process.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 74.08.090 and 43.20B.675.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The department is establishing a new chapter (chapter 388-560 WAC, Medical audit dispute) to consolidate rules regarding the administrative process for audit dispute resolution or medical services providers. WAC 388-41-020 is being repealed to avoid duplication. The rule is being rewritten to update policy to reflect current practice, as well as to comply with the Governor's Executive Order 97-02.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Although no other agency regulates this specific subject, the Office of Contracts and Asset Management and the Office of Administrative Hearings may each have an interest in these rules. In order to maintain consistency, the department will consult with OCAM and OAH as these rules are developed.

Process for Developing New Rule: The department invites the interested public to review and provide input on the draft language of this WAC. Draft material and information about how to participate are available by contacting the DSHS representative identified below.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting L. Mike Freeman, Regulatory Improvement Project, Medical Assistance Administration, Olympia, Washington 98504-5530, phone (360) 586-0941, fax (360) 753-7315, TTY 1-800-848-5429, e-mail freemlm@dshs.wa.gov.

September 30, 1999

Marie Myerchin-Redifer, Manager

Rules and Policies Assistance Unit

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