OAR 410-141-3710: Contract Termination and Close-Out Requirements

(1) This rule applies to any termination of an MCE contract, including but not limited to non-renewal under OAR 410-141-3725, expiration of the contract at the end of its term, or termination during the term of the contract initiated by either party. Consistent with OAR 410-141-3725, MCEs shall abide by all requirements in this rule regardless of whether termination notice is provided by the Authority or the MCE. (2) The party initiating the termination shall render written notice of termination to the other party by certified mail, return receipt requested, or in person with proof of delivery and a contemporaneous copy emailed to the other party’s contract administrator. (3) The notice of termination shall specify the circumstances giving rise to termination and the date on which such termination shall become effective. (4) After receipt of an MCE’s notification of intent not to renew or notice of termination, the Authority shall issue written notice to the MCE specifying: (a) The effective date of termination; (b) The MCE’s operational and reporting requirements; and (c) Timelines for submission of deliverables. (5) Upon notification of termination or non-renewal, an MCE shall submit to the Authority a transition plan detailing how it fulfills its continuing obligations for the duration of the contract. The transition plan shall include: (a) How each of the MCE’s members and contracted providers are notified of the termination of the contract; (b) A plan to transition its members to other MCEs; and (c) A plan for closing out its MCE business, including but not limited to the operational and reporting requirements and timelines for submission of deliverables, as specified by the Authority, and the requirements specified in this rule. (6) Transition plans are subject to approval by the Authority: (a) The MCE must revise the transition plan as necessary to obtain approval by the Authority; (b) Failure to submit a transition plan and obtain written approval of the termination plan by the Authority may result in the Authority’s withholding of 20 percent of the MCE’s monthly capitation payment until the Authority has approved the transition plan; (c) If the Authority’s approval of the transition plan occurs less than 90 days before the effective date of termination, then the Authority may require the MCE to extend the contract to a later effective date of termination, including as necessary the MCE’s acceptance of amendments to the contract generally applicable to MCE contracts through the extended effective date. (7) The MCE shall designate an individual as the contract transition coordinator. (8) The contract transition coordinator shall be the Authority’s contact for ensuring the MCE’s completion of the MCE’s contractual obligations, performance, operations, and member transitions including the transition plan. (9) MCEs shall submit reports to the Authority every 30 calendar days detailing the MCE’s progress in executing its transition plan. In the event of the MCE’s substantial failure to execute timely its transition plan, the Authority may withhold 20 percent of any payments due to the MCE from the Authority until such failure is corrected. (10) MCEs shall submit a final report to the Authority describing how it fulfilled all transition and close-out activities described in the transition plan. The final report is subject to the Authority approval before issuance of any final payment. (11) MCEs shall continue to perform all financial, management, and administrative services obligations identified in contract throughout the closeout period, including at minimum: (a) Restricted reserves and insurance coverage for a period of 18 months following the notice of termination, or until the state provides the MCE with written release agreeing that all continuing obligations are fulfilled, whichever is earlier; (b) Maintaining adequate staffing to perform all required functions as specified in contract; (c) Supplying all information necessary to the Authority or its designee upon request for reimbursement of any outstanding claims at the time of termination; (d) Assisting the Authority to ensure an orderly transition of member services after notice of termination consistent with the Authority’s Transition of Care Policy; and (e) To make available all signed provider agreements or subcontracts to the Authority upon request. (12) The MCE must arrange for the orderly transfer of all OHP members assigned to the MCE to coverage under any new arrangement authorized by the Authority, including any actions required by the Authority to complete the transition of members and the termination of the MCE contract. These actions include: (a) Forwarding of all medical or financial records related to the contractually obligated activities; (b) High needs care coordination; (c) Facilitation and scheduling of medically necessary appointments for care and services; (d) Identification of chronically ill high risk, hospitalized, and pregnant members in their last four weeks of pregnancy. (13) If a change of providers may be harmful to the member, the MCE must continue to provide services until that treatment is concluded or appropriate transfer of care is arranged. (14) The MCE shall make available and require its providers and subcontractors to make available to the Authority copies of medical, behavioral, oral and managed long-term services and supports records, patient files, and any other pertinent information necessary for efficient care management of enrollees, as determined by the Director of the Authority: (a) Records shall be in a usable form and shall be provided at no expense to the Authority, using a file format and dates for transfer specified by the Authority; (b) Under no circumstances shall a Medicaid member be billed for this service; (c) Information that shall be required includes: (A) Numbers and status of grievances in process; (B) Numbers and status of hospital authorizations in process, listed by hospital; (C) Daily hospital logs; (D) Prior authorizations approved, pending, or denied; (E) Program exceptions approved; (F) Medical cost ratio data; (G) Information on outstanding payments for medical care rendered to members; (H) All encounter data required under the terminated agreement; (I) Identification of members whose treatment or treatment plans require continuity of care consideration; (J) Any other information or records deemed necessary by the Authority to facilitate the transition of care. (15) Following expiration of the contract and the completion of closeout period obligations, the MCE shall: (a) Maintain claims processing functions as necessary for a minimum of 18 months after the date of termination. If additional claims are outstanding, the MCE shall maintain the claims processing system as long as necessary to complete final adjudication of all claims; (b) Remain liable and retain financial responsibility for all claims with dates of service prior to the date of termination; (c) Maintain financial responsibility for patients who were admitted to an inpatient stay prior to the termination date through the date of discharge from their continuous inpatient stay in accordance with OARs 410-141-3500, 410-141-3805, and 410-141-3850, and to the extent the MCE is responsible under the contract; (d) Maintain financial responsibility for services rendered prior to the termination date, for which payment is denied by the MCE and subsequently approved upon appeal by the provider; and (e) Assist the Authority with grievances and appeals for dates of service prior to the termination date. (16) Runout activities shall consist of the processing, payment, and reconciliations necessary regarding all enrollees, claims for payment from providers, appeals by both providers and members, and financial reporting deemed necessary by the Authority, including: (a) Monthly claims aging report including IBNR amounts; (b) Quarterly financial statements and annual audited financial statements in conformity with the specification in the contract up to the date specified by the Authority; (c) Certified encounter reporting until all services rendered prior to contract expiration or termination have reached adjudicated status and the Authority data validation of the information is complete; (d) Arranging for the retention, preservation, and availability of all records, including those records related to member grievance and appeals, litigation, base data, Medical Loss Ratio (MLR) reports, claims settlement, and those records covered under HIPAA as required by contract and state and federal law; (e) Details of any existing third-party liability (TPL) or personal injury lien (PIL) cases and making any necessary arrangements to transfer the cases to the Authority’s TPL and PIL units; and (f) Final reports that identify all expenditures for any period in which the MCE continued to pay claims for services provided during the contract period. (17) The Authority may require status reports or updates to the data reporting requirements in section (16) of this rule upon request. (18) MCEs shall submit to the Authority a written request for release certifying that all obligations have been satisfied. The Authority shall provide an official written release upon satisfaction of activities associated with the contract expiration or termination plan. The request must be signed, expressly under penalty of False Claims Act liability, by the president and the chief financial officer of the MCE and must attest that, except as expressly described in a writing attached to the attestation: (a) All payments are received by the MCE under the contract, and all the MCE’s liabilities under the contract are extinguished; (b) All reports, reconciliations, member matters, and provider matters are resolved and finalized; and (c) The MCE complied with all contractual and legal requirements, including completion of the activities described in the transition plan. (19) To the extent that the request for release under section (18) of this rule attaches any exception, the request for release must include a plan describing how each exception is resolved. Any payments due under the terms of the contract for services between the Authority and the MCE, including the distribution of restricted reserve funds or any withheld capitation amount, may be withheld until the Authority receives all written and properly executed documents from the MCE. The MCE is subject to all obligations under the contract, associated rules, and the transition plan until a final written release is issued by the Director of the Authority. Such release shall: (a) Apply only to the extent of the MCE’s responsibilities under the MCE contract, associated rules, and the transition plan; (b) Apply only to the extent the MCE’s submissions to the Authority are true, complete, and accurate; (c) Apply only between the Authority and the MCE; (d) Not bind third parties; (e) Not preclude the Authority’s assertion of indemnity, contribution, or other obligations based on third-party claims; (f) Not preclude the Authority’s assertion of false claims liability, Medicaid fraud, common-law fraud, or other claims, false statements, or fraud; and (g) Not affect any post-termination obligations of the MCE under the contract for preservation of records or for auditors’ access.