WSR 05-14-072



(Health and Rehabilitative Services Administration)

[ Filed June 30, 2005, 1:50 p.m. ]

Subject of Possible Rule Making: WAC 388-865-0201 and related sections which govern the allocation of funds to regional support networks for provision of community mental health services.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 71.05.560, 71.24.035 (5)(m), (13), 71.34.800, 42 C.F.R. 438, ESSB 6090, Section 204, DSHS MHD Program Budget and the Freedom of Choice Waiver under section 1915(c) of the Social Security Act.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: These rules are necessary to implement the mandates required by the Center for Medicare and Medicaid Services 1915(b) Freedom of Choice Waiver. The regulations implement section 1903 (m)(2)(A)(iii) of the Social Security Act requiring payments in risk contracts to be made on an actuarially sound basis. ESSB 6090, Section 204 (1)(b), directs new methodology for distribution non-Medicaid ("state only") funds to the regional support networks.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The Center for Medicare and Medicaid Services of the Department of Human and Health Services of the federal government also regulate this subject. The Region X Office of CMS will receive and review proposed revisions during the rule-making process.

Process for Developing New Rule: DSHS welcomes public participation. If interested, contact the staff person below. During the process, the MHD will post drafts on the web site at After the rule is drafted, DSHS will file a copy with the Office of the Code Reviser with a notice of proposed rule making and send a copy to everyone on the current mailing list and anyone else 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 Karie Castleberry, P.O. Box 45320, Olympia, WA 98504-5320, phone (360) 902-0799, fax (360) 902-7691, TTY (360) 902-8070, e-mail

June 24, 2005

Andy Fernando, Manager

Rules and Policies Assistance Unit

Washington State Code Reviser's Office