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Medicaid Contract Purchasing Specifications

Children with Special Health Care Needs

Part 1

Services for Children with Special Health Care Needs

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§101. In General
§102. Identification of Children with Special Health Care Needs
§103. Scope of Benefit
§104. Care Coordination Services
§105. Care Plan
§106. Guidelines
§107. Coverage Determination Standards and Procedures
§108. Definitions

§101. In General

Commentary: There is no single definition of children with special health care needs that is commonly accepted. Definitions vary among states that enroll this population in Medicaid managed care as well as within states (e.g., definitions used by a state Title V agency may vary from that used by the same state's Medicaid agency). A recent GAO report gives the following example of this variation: "…children in Michigan must meet the Title V definition of special needs, while those in Oregon must receive SSI or be in foster care." General Accounting Office, Medicaid Managed Care: Challenges in Implementing Safeguards for Children with Special Needs (March 2000), GAO/HEHS-00-37, footnote 8, p. 8, www.gao.gov. . For a review of the definitions of children with special health care needs used by 6 states (Colorado, Connecticut, Delaware, Massachusetts, Michigan, and New Mexico), see Tables 3 and 4, pp 17-33, of Kaye et al., Certain Children with Special Health Care Needs: An Assessment of State Activities and Their Relationship to HCFA's Interim Criteria, National Academy for State Health Policy, (June 2000) http://www.hcfa.gov/medicaid/needsrpt.pdf.

For purposes of this document, children with special health care needs are defined in §108(c) as “children under 21 who have a chronic physical, developmental, or behavioral condition, and require health and related services of a type or amount beyond that which is required by children generally.” This language is drawn from the definition in McPherson et al., “A New Definition of Children with Special Health Care Needs,” Pediatrics (July 1998) p. 137, which was endorsed in a work group convened by MCHB and AMCHP in October, 1998 and by the American Academy of Pediatrics (AAP). Using this definition, a recent analysis estimates that 18% of U.S. children under 18 years old had an existing special health care need in 1994-5. Newacheck, et al., "Access to Health Care for Children with Special Health Care Needs," Pediatrics (April 2000) p. 760-766, www.pediatrics.org.

For pediatrics, the standard of care for children with special health care needs is that of a “medical home” – an approach to providing care that is accessible, family-centered, comprehensive, continuous, coordinated, compassionate, and culturally competent. A detailed explanation of this concept may be found in AAP, Managed Care and Children with Special Needs: Medical Home Checklist (1998), http://www.aap.org/advocacy/medhome/resourcesmedhomechecklist.htm. The purpose of the purchasing specification is to translate the concept of a medical home into an enforceable set of contractual duties that interested purchasers may wish to use in developing purchasing agreements with managed care organizations that serve children with special health care needs. This translation occurs at two levels: that of the Contractor, and that of the individual provider. Part 1 speaks to the Contractor's duties to operate in a manner consistent with the medical home approach; §204A addresses the duties of individual network providers to furnish a medical home to such children in their practices.

(a) Duty to Provide a Medical Home — Contractor shall, for each enrolled child with special health care needs (as defined in §108(c)) identified under subsection (b), comply with the requirements of:

(1) subsection (c) (relating to Contractor's Basic Service Duties);

(2) subsection (d) (relating to Family Participation); and

(3) Part 2 (relating to Service Delivery Duties).

(b) Duty to Identify Enrolled Children with Special Health Care Needs — Contractor, and each provider participating in Contractor’s provider network, shall comply with the requirements of §102 relating to identification of enrolled children with special health care needs.

(c) Basic Service Duties7 — For each enrolled child with special health care needs (as defined in §108(c)), Contractor shall:

(1) cover and furnish, or arrange for the furnishing of, the items and services enumerated under §103(a) in manner consistent with the coverage determination standards and procedures under §107;

(2) comply with the access standards specified in §205;

(3) comply with the child health guidelines enumerated in §1068, including guidelines relating to continuity of care;

(4) under §105, develop a care plan for the child and furnish items and services, including care coordination services, to the child as specified in the plan;

(5) ensure that the child's primary care provider complies with the requirements relating to providing a medical home under §204A;

(6) comply with the requirements of §206 regarding relationships with other agencies; and

(7) comply with requirements of §208 relating to data collection and reporting.

(d) Family Participation

(1) In General — Contractor, and each provider participating in Contractor’s provider network, shall facilitate the participation of the family or caregiver of an enrolled child with special health care needs (as defined in §108(c)) in:

(A) the identification of the child as a child with special health care needs under §102;

(B) the identification and selection of providers, consistent with §203, who can provide continuity of care for the child; and

(C) the development, implementation, and review and update of a care plan for the child described in §105.

(2) Responsibility of Care Coordinator to Family — Contractor shall ensure that a care coordinator selected or assigned (under §104(b)) to an enrolled child with special health care needs (as defined in §108(c)) shall comply with the requirements of:

(A) §104(d)(1) (relating to learning about the child’s diagnosis and treatment needs and the needs of the family or caregiver in supporting the child);

(B) §104(d)(2) (relating to informing about the contents of the care plan developed under §105);

(C) §104(d)(3) (relating to assisting in accessing items and services that are duty of Contractor);

(D) §104(d)(4) and (5) (relating to assisting in accessing and identifying payment sources for items and services that are not duty of Contractor);

(E) §104(d)(10) (relating to tracking the child’s progress under the child’s care plan under §105 and recommending any updates or revisions to such plans based on the experience of the child and the child’s family or caregiver);

(F) §104(d)(12) (relating to accessing, under §209(c), Contractor’s grievance procedures and the state fair hearing process);

(G) §104(d)(13) (relating to assisting in documenting, establishing, and maintaining the child’s eligibility for public program benefits); and

(H) §104(d)(14) (relating to informing about participation in voluntary networks of families or caregivers and in the Family Advisory Board).

Commentary: The following illustrative language would require Contractor to establish and maintain a Family Advisory Board internal to the Contractor. Another option would be for the state to establish and maintain such a Board to advise its Medicaid or other purchasing agency as well as the MCOs with which the state agency contracts. This option is not reflected in these purchasing specifications because it can not be implemented through language in a contract between the state agency and the MCO. Instead, such Board would have to be established under state law or regulation, or through administrative action by the sponsoring agency. For a summary of ongoing advisory committees used by 6 states (Colorado, Connecticut, Delaware, Massachusetts, Michigan, and New Mexico), see Table 21, pp. 158-162, of Kaye et al., Certain Children with Special Health Care Needs: An Assessment of State Activities and Their Relationship to HCFA's Interim Criteria, National Academy for State Health Policy (June 2000), http://www.hcfa.gov/medicaid/needsrpt.pdf.

(3) Family Advisory Board — Contractor shall establish and maintain a Family Advisory Board that:

(A) consists of up to [ ] individuals who are parents or caregivers of an enrolled child with special health care needs (as defined in §108(c)) and who volunteer to participate as members of the Board;

(B) meets as needed (but no less frequently than [ ]) to:

(i) discuss concerns of families or caregivers of enrolled children with special health care needs;

(ii) review the results of any enrollee satisfaction surveys conducted by Contractor under §207(c)(5);

(iii) review any data collected and reported to Purchaser under §208(b);

(iv) review the disposition by Contractor under §209 of grievances and appeals filed by families or caregivers of children with special health care needs; and

(v) review Contractor's enrollee information materials under §202; and

(C) has an opportunity on a [ ] basis to meet with Contractor’s Chief Executive Officer and [drafter insert reference to Contractor's Medical Director and other appropriate officials] to advise the CEO [and other officials] on matters of concern to the Board.

§102. Identification of Children with Special Health Care Needs

Commentary: These purchasing specifications assume that the MCO with which Purchaser is contracting enrolls a general population of children and families, not just children with special health care needs. In order to trigger any duties Purchaser may wish to impose on Contractor with respect to those enrolled children with special health care needs, Contractor must know whether a particular enrolled child has special health care needs. Often a child's disability is itself the basis for the child's categorical eligibility for Medicaid; for example, most states automatically extend Medicaid eligibility to children who qualify for Supplemental Security Income (SSI) payments based on disability.9 In addition, a child's eligibility category may be an indicator of special health care needs (e.g., children receiving foster care payments under Title IV-E). In these cases, the state Medicaid agency (or another state or local agency) is likely to know the child's special needs status. In other cases, however, the basis for the child's Medicaid eligibility does not reflect the child's special needs.

The illustrative language in the following section is intended to assist purchasers in designing approaches to identifying these children from among the general population of enrolled children. For a review of the sources of information used by 4 states (Colorado, Delaware, Massachusetts, and Michigan) to identify children with special health care needs, see Table 6, pp. 44-52 of Kaye et al., Certain Children with Special Health Care Needs: An Assessment of State Activities and Their Relationship to HCFA's Interim Criteria, National Academy for State Health Policy, (June 2000) http://www.hcfa.gov/medicaid/needsrpt.pdf.

To facilitate the exchange of information regarding the identity of children with special health care needs, Purchasers may wish to consider establishing interagency agreements or other arrangements with state Title V children with special health care needs programs, state mental health agencies, state or local education agencies and Part C lead agencies that have programmatic responsibilities for children with disabilities, developmental delays, and special health care needs. Purchasers could transmit such information to Contractors at the time of enrollment of a Medicaid-eligible child with special health care needs. Of course, the exchange and transmission of such information is subject to confidentiality and informed consent requirements applicable under state or federal law. For references to applicable federal rules, see §209(d) and (e).

(a) Duty of Purchaser to Assist in Identification of Children with Special Health Care Needs10

(1) Purchaser Information — Purchaser shall make available to Contractor on a [ ] basis the name and Medicaid eligibility number of each enrolled child whom Purchaser has identified from [drafter insert reference to Purchaser’s Medicaid information system] as a child with special health care needs (as defined in §108(c)).

(2) Information from Other State Agencies11 — Purchaser shall make available to Contractor on a [ ] basis the name and Medicaid eligibility number of each enrolled child with respect to whom the [drafter insert name of State Title V Agency, State Child Welfare Agency, or other appropriate state agency] (with the prior written consent of the child’s family or caregiver) have notified Purchaser that the child is:

(A) receiving services under an IEP (as defined in §108(f)) or an IFSP (as defined in §108(g));

(B) receiving services under a plan for the child under §504 of the Rehabilitation Act of 1973, 29 U.S.C. §794, 45. C.F.R. §84.33 or 34 C.F.R. §104.33; or

(C) receiving services under [drafter insert reference to state or local program for children with special health care needs].

Commentary: HCFA’s "Draft Interim Review Criteria for Children with Special Needs" (June 4, 1999) provides: “The State identifies and/or requires MCOs/PHPs to identify children with special needs.” (p.1-2). HCFA's draft criteria do not specify an instrument for the identification. However, there are a number of tools Purchaser may wish to consider for use in identifying children with special health care needs. The following illustrative language assumes that such a tool would be administered by Contractor. There are other approaches to identifying children with special health care needs, including reliance upon an enrollment broker to perform this function; Purchasers interested in this option would address the issue in their contracts with the enrollment broker.

A number of screening tools are available or under development. One tool is the Living with Illness Screening Tool developed by the Child and Adolescent Health Measurement Initiative (CAHMI) of the Foundation for Accountability (FACCT), www.facct.org. Another tool is QuICCC (Questionnaire for Identifying Children with Chronic Conditions), containing 39 questions for the family or caregiver (or the 19-question version of this instrument, called QuICCC-R); see R.E. Stein et al., “The Questionnaire for Identifying Children with Chronic Conditions: A Measure Based on a Noncategorical Approach,” Pediatrics (April 1997), pp. 513-521. The National Association of Children's Hospitals and Related Institutions (NACHRI), in conjunction with 3M, has developed a classification system using Clinical Risk Groups (CRGs); see Muldoon et al, "Profiling Health Service Needs of Populations Using Diagnosis-based Classification Systems," Journal of Ambulatory Care Management (1997), 20, pp. 1-18.

(b) Identification of Children with Special Health Care Needs

(1) Newborns — Contractor shall comply with the following requirements in the case of a newborn child whose mother is enrolled in Contractor:

(A) Newborns with Congenital Anomalies12 — In the case of a newborn child with a congenital anomaly that is identified prior to the child’s birth or is apparent to the child’s treating physician at birth, Contractor shall:

(i) ensure that a physician designated by Contractor13 conducts an initial assessment (as defined in paragraph (5)) within [ ] days of the child’s birth; and

(ii) if, as a result of the initial assessment conducted under clause (i), the physician is able to make a determination that the newborn is an enrolled child with special health care needs (as defined in §108(c)), Contractor shall:

(I) comply with the requirements of §105 relating to the development of a care plan with respect to the newborn child; and

(II) refer the newborn child to [drafter insert reference to appropriate Part C Lead Agency under the IDEA, 20 U.S.C. §1400 et seq.] for a developmental assessment.

(B) Newborns with No Apparent Anomalies — In the case of a newborn child who is not described in subparagraph (A) and who is an enrolled child, the requirements of paragraph (3) relating to newly enrolled children without an IFSP or an IEP shall apply to Contractor and the providers participating in Contractor’s provider network.

(C) If a newborn child described in subparagraph (A) is determined not to be a child with special health care needs, Contractor shall comply with the requirements of paragraph (6) (relating to second opinions).

(2) Newly Enrolled Children with IFSP or IEP

(A) If, at the time of enrollment of a child with special health care needs, Contractor or a provider participating in Contractor’s provider network knows that the child is receiving services under an IFSP (as defined in §108(g)) or an IEP (as defined in §108(f)), Contractor shall comply with the requirements of §105(b) relating to the development of a care plan by the child’s primary care provider.

(B) The requirements of subparagraph (A) shall apply whether or not a care plan has been developed for the newly enrolled child prior to the child's enrollment through another managed care organization.

(3) Newly Enrolled Children without IFSP or IEP — In the case of a newly enrolled child who is not described in paragraph (2), and in the case of a newborn who is described in paragraph (1)(B):

(A) Contractor shall conduct an initial assessment (as defined in paragraph (5)) within [ ] days of the child’s enrollment;

(B) if, as a result of the initial assessment conducted under subparagraph (A), the primary care provider is able to make a determination that the child is a child with special health care needs (as defined in §108(c)), Contractor shall comply with the requirements of §105 relating to the development of a care plan;

(C) if, subsequent to the initial assessment conducted under subparagraph (A), the primary care provider determines that additional diagnostic procedures covered under §103(a) are necessary to enable the provider to make a determination that the child is a child with special health care needs, Contractor shall furnish or arrange for the furnishing of such diagnostic procedures within [ ] days of the initial assessment, unless the child’s family or caregiver does not give written consent prior to such diagnostic procedures;

(D) if, as the result of additional diagnostic procedures under subparagraph (C), the child is determined to be a child with special health care needs, Contractor shall:

(i) comply with the requirements of §105 relating to the development and implementation of a care plan;14 and

(ii) consistent with §104(d)(7), ensure that the child’s primary care provider or care coordinator refers the child to [drafter insert reference to responsible agencies under Part B and Part C of the IDEA, 20 U.S.C. §1400 et seq.], as appropriate, for the development of an IFSP (as defined in §108(g)) or IEP (as defined in §108(f)); and

(E) if, as the result of additional diagnostic procedures under subparagraph (C), the child is determined not to be a child with special health care needs, Contractor shall comply with the requirements of paragraph (6) (relating to second opinions).

(4) Other Enrolled Children — In the case of an enrolled child who has not been identified by Contractor as a child with special health care needs under paragraphs (1), (2), or (3), Contractor shall comply with the requirements of §105 relating to the development and implementation of a care plan if:

(A) a provider participating in Contractor’s provider network has determined, on the basis of an encounter with the child, that the child is a child with special health care needs;

(B) the child, or the child’s family or caregiver, has identified the child as having a chronic physical, developmental, or behavioral condition and a provider participating in Contractor’s provider network has determined that the child is a child with special health care needs; or

(C) the child has been identified as a child with special health care needs under paragraph (6) (relating to second opinions).

(5) Initial Assessment Defined — An initial assessment is an encounter between an enrolled child and a primary care provider participating in Contractor’s provider network at which the provider administers [drafter insert specification for encounter form] appropriate to the age of the child. The initial assessment may be conducted by a provider participating in Contractor’s provider network during an EPSDT screening encounter described in §102(b)(1) of MEDICAIDSPECS.

(6) Second Opinion — If in the case of a child described in paragraphs (1), (3), or (4), the child is determined not to be a child with special health care needs (as defined in §108(c)), Contractor shall:

(A) offer the family or caregiver of the child an opportunity for a second opinion from a pediatric specialist (as defined in §108(j)):

(i) participating in Contractor’s provider network selected by the family or caregiver; or

(ii) if no pediatric specialist participating in Contractor's provider network is qualified to make the determination with respect to the child, from pediatric specialist selected by the child's family or caregiver and the child's primary care provider under §203(b);

(B) pay for the services of the pediatric specialist selected under subparagraph (A) (and any diagnostic procedures ordered by the specialist in connection with the second opinion); and

(C) ensure that if, in the opinion of the specialist, the child is a child with special health care needs, the initial determination and the second opinion are reviewed by Contractor’s Medical Director and, within [ ] of the second opinion, the Medical Director makes a final determination as to whether Contractor has a duty to the child under paragraph (3)(D) relating to the development and implementation of a care plan.

(7) Inquiries into Existence of Disability — In carrying out its duties to identify children with special health care needs under this subsection, Contractor shall comply with the requirements of §209(b) relating to unnecessary inquiries into the existence of a disability.

§103. Scope of Benefit

Commentary: It is common for states to “carve out” from their general Medicaid MCO contracts some of the services that children with special health care needs require. For example, a CHPR review of 54 state contracts found three different types of Medicaid coverage for behavioral health services: (1) direct coverage (on a fee-for-service basis) under the state Medicaid plan; (2) coverage through a general service agreement with an MCO; and (3) coverage through a managed behavioral health carve-out agreement. Rosenbaum et al., Negotiating the New Health System, Special Report: Mental Illness and Addiction Disorder Treatment and Prevention, GW Center for Health Policy Research, March 1998, p. 27.

Under current law, states may elect not to contract with MCOs for the full range of services to which beneficiaries are entitled under their state Medicaid plans. Instead, they may contract with an MCO for the provision of some services and “carve out” others. These “carve out” services, in turn, may be covered on a fee-for-service basis or through a risk contract with another MCO, or both. For example, in 1997 about two-thirds of the states excluded mental health services, dental services, and health-related services from their contracts with Medicaid MCOs. Ruth Almeida and Harriette Fox, 1997 State Medicaid Managed Care Policies Affecting Children, Maternal and Child Health Policy Research Center (March 1998), p. 6. Accordingly, the following illustrative language assumes that a state purchaser elects to “carve out” some services of importance to children with special health care needs from the purchasing agreement and to cover those services either directly under its state plan or through another contractor.

(a) Covered Items and Services — Contractor shall furnish, or arrange for the furnishing of, to each enrolled child with special health care needs (as defined in §108(c)) who is eligible for benefits under [drafter insert reference to state Medicaid program]:

(1) the items and services15 enumerated in Part 1 of “MEDICAIDSPECS”; and

(2) care coordination services described in §104.

(b) Items and Services for Which Purchaser Remains Responsible

(1) Items and Services Covered by Purchaser — Contractor has no duty under [drafter insert name of purchasing document] to furnish, or arrange for the furnishing of, the following items and services:

(A) [drafter insert list of items and services covered under state Medicaid plan (or, in the case of EPSDT services, eligible for federal matching payments) but excluded from coverage under this purchasing agreement];

(2) Duty of Contractor — Contractor shall notify an enrolled child with special health care needs (as defined in §108(c)) (and the child’s family or caregiver) regarding the items and services described in paragraph (1) by complying with the requirements of:

(A) §202(b)(1) and (b)(2) relating to provision of information to enrolled children with special health care needs; and

(B) §104(d)(3) relating to the responsibilities of the child’s care coordinator to assist the child in accessing items and services specified in the child’s care plan that are described in paragraph (1).

§104. Care Coordination Services

Commentary: The following illustrative language assumes that the Purchaser wishes to provide care coordination services to children with special health care needs through the contracting MCOs in which they are enrolled. It should be noted that states are not required to offer care coordination services to Medicaid beneficiaries generally or to this population in particular, and some states do not cover these services for this population. In addition, not all MCOs are organized to provide care coordination services to children with special health care needs or other enrolled populations through separate care coordinators; instead, they rely upon the treating physician to perform care coordination functions. Finally, if a state Medicaid program elects to cover care coordination services for this population, it may also elect to "carve out" such services from its purchasing agreements with MCOs and provide them on a fee-for-service basis through the state Title V agency or other state or local agencies, or through private organizations. For a review of the care coordination models used by Colorado, Delaware, New Mexico, Oregon, and Washington, see Rosenbach and Young, Care Coordination in Medicaid Managed Care: A Primer for States, Managed Care Organizations, Providers, and Advocates (March 2000) www.chcs.org.

The federal Medicaid statute and implementing regulations do not contain a “care coordination services” category. Thus, it is not possible to state with certainty that the care coordination services set forth in the following illustrative language would qualify for federal Medicaid matching funds. That determination can be made only by HCFA. HCFA's published guidance on coverage of case management services is set forth in State Medicaid Manual at §430216, www.hcfa.gov/pubforms/pub45pdf/smm4t.htm.

(a) In General — Contractor shall comply with the requirements of this section relating to:

(1) assignment or selection of a care coordinator (as defined in §108(b)) under subsection (b); and

(2) the duties of the care coordinator (as defined in §108(b)) under subsection (d).

Commentary: The following illustrative language assumes that the family or caregiver of an enrolled child with special health care needs has the option of refusing to accept a care coordinator for the child. It also assumes that the family or caregiver has the option of declining to accept the particular care coordinator that Contractor wishes to assign to the child. The language would not, however, require Contractor to hire or subcontract with any particular care coordinator in order to meet the wishes of the family or caregiver. The family or caregiver’s choice would be limited to those care coordinators (including a primary care provider, if the family or caregiver so chooses) available within Contractor’s provider network under §204.

(b) Assignment or Selection of Care Coordinator

(1) In General

(A) Contractor shall, within [ ] days of the date described in paragraph (5), notify in writing the family or caregiver of an enrolled child with special health care needs (as defined in §108(c)) of the identity of the care coordinator that Contractor proposes to assign to the child to furnish care coordination services under subsection (d).

(B) This paragraph shall not be construed to require Contractor to assign to a child a care coordinator who does not participate in Contractor’s provider network under §204(e) or with whom Contractor does not have an out-of-network arrangement under §204(f).

(2) Option to Receive Care Coordination Services from Primary Care Provider17 — Contractor shall allow the family or caregiver of an enrolled child with special health care needs to select as the child’s care coordinator a primary care provider participating in Contractor’s provider network who is willing to assume the responsibilities enumerated under subsection (d) with respect to the child.

(3) Option to Receive Care Coordination Services from Care Coordinator — Contractor shall allow the family or caregiver of an enrolled child with special health care needs to receive care coordination services from a care coordinator (as defined in §108(b)) other than a primary care provider if the care coordinator is selected by the child’s primary care provider in consultation with the child’s family or caregiver.

(4) Option to Refuse a Care Coordinator — Contractor shall not assign an enrolled child with special health care needs to a care coordinator (as defined in §108(b)) unless the child’s family or caregiver (or, in the case of an adolescent, the adolescent):

(A) agrees in writing to receive care coordination services under this section from a care coordinator; and

(B) has selected a care coordinator under paragraph (2) or consulted with a primary care provider under paragraph (3).

(5) Date — The date described in this paragraph is the earlier of:

(A) the effective date of enrollment of the child; or

(B) the date on which the enrolled child has been identified as a child with special health care needs (as defined in §108(c)) by a provider participating in Contractor's provider network (whether or not such provider is the child’s primary care provider).

(6) Responsibilities of Care Coordinator — If a care coordinator has been selected by or assigned to an enrolled child or the child’s family or caregiver under paragraphs (2) and (3), Contractor shall ensure that the care coordinator carries out the duties required under subsection (d).

(c) Use of State Title V CSHCN Program Personnel

(1) Option — Contractor may meet the requirements of subsection (b) through the use of care coordinators (as defined under §108(b)) affiliated with [drafter insert name of State Title V CSHCN Agency].

(2) Written Agreement — If Contractor elects to use care coordinators under paragraph (1), Contractor shall enter into a written agreement with [drafter insert name of State Title V CSHCN Agency] under §206(b)(3).

Commentary: The experiences of families of children with special health care needs enrolled in an MCO under a Medicaid demonstration project has enabled evaluators to identify certain issues relating to care coordinators. Discussions with parent focus groups found that “virtually none of the parents knew where or to whom they may file a complaint. Most parents said they would talk to their care manager if they had a problem.” In addition, “Few parents recalled having completed a Plan of Treatment for their child, and the majority said they had never seen or heard of a Plan of Treatment. Of the few parents who were familiar with it, most said they had been asked by their care managers to sign the document, but with no explanation of its contents. Some parents added that the Plan of Treatment was not updated frequently enough, and thus was seldom a reflection of their child’s current needs.” Abt Associates, Evaluation of the District of Columbia’s Demonstration Program, “Managed Care System for Disabled and Special Needs Children,” Second Annual Report (December 18, 1998), Submitted to Office of Strategic Planning, Health Care Financing Administration. The following illustrative language addresses these and other matters.

(d) Responsibilities of Care Coordinator18 — Contractor shall ensure that, in the case of an enrolled child with special health care needs (as defined under §108(c)) who has selected a care coordinator under subsection (a), the care coordinator, consistent with §107(b) relating to utilization management, shall:

(1) make every effort to meet with the family or caregiver of the child, in person or by telephone, within [ ] days of being assigned, in order to learn about the child’s diagnosis and treatment needs and the needs of the family or caregiver in supporting the child;

(2) assist:

(A) the primary care provider in developing the child's care plan under §105(b)(1)(D); and

(B) the child (and the child’s family or caregiver) in understanding the contents of the plan;

(3) assist the child in accessing items and services specified in the child’s care plan under §105 that are:

(A) the duty of Contractor under §103(a); and

(B) required under each of the following plans (if any) that has been developed for the child:

(i) an IFSP (as defined in §108(g));

(ii) an IEP (as defined in §108(f));

(iii) a plan developed for the child by [drafter insert name of state child welfare agency]; and

(iv) [drafter insert references to other applicable treatment plans];

(4) if requested by the child (or, except in the case of an adolescent, the child’s family or caregiver), assist the child, in manner consistent with §209(d) (relating to confidentiality protections), in accessing items and services that are specified in the child’s care plan under §105 and are the responsibility of Purchaser under §103(b);

Commentary: The illustrative language in paragraph (5) assumes that the MCO's care coordinator has the responsibility for assisting an enrolled child's family or caregiver in having payment made for services covered under a state's Medicaid program that are not the duty of the MCO. Another approach would be for the family or caregiver to be referred to appropriate state or local agencies.

(5) if requested by the child (or, except in the case of an adolescent, the child’s family or caregiver), assist the child, in manner consistent with §209(d) (relating to confidentiality protections), in accessing and identifying payment sources for items and services that are specified in the child’s care plan under §105 and not the responsibility of Contractor under §103(a) or Purchaser under §103(b);

(6) consistent with §203(f), assist the child in accessing pediatric specialists (as defined in §108(j)) and other providers participating in Contractor’s provider network that are identified in the child’s care plan under §105;

(7) refer the child to the [drafter insert reference to responsible agencies under Part B and Part C of the Individuals with Disabilities Education Act, 20 U.S.C. §1400 et seq.] unless the child is receiving services under an IEP (as defined in §108(f)) or an IFSP (as defined in §108(g));

(8) if appropriate, in the case of a child age 16 or older, refer the child to the state Vocational Rehabilitation Agency under Title I of the Rehabilitation Act of 1973, 29 U.S.C. §720 et seq., 34 C.F.R. 300.347(b);

(9) facilitate, consistent with the confidentiality protections under §209, the exchange of information and medical records among Contractor, the child’s primary care provider, and [drafter insert reference to responsible agencies under Part B and Part C of the Individuals with Disabilities Education Act, 20 U.S.C. §1400 et seq.];

(10) meet (in person or by telephone) with the child and the child’s family or caregiver in order to track the child’s progress under the child’s care plan under §105 and, based on the experience of the child and the child’s family or caregiver, make recommendations to the child’s primary care provider with respect to updating the care plan under §105(b)(5);

(11) establish working arrangements with care coordinators or case managers (other than those employed by, or under contract to, Contractor) who have responsibilities with respect to the child;

(12) assist the child (and the child’s family or caregiver) in:

(A) understanding the child’s entitlement to a fair hearing under 42 C.F.R. §430.220 and to the continuation of services pending the fair hearing under 42 C.F.R. §430.230 and, in the case of denial, termination, or reduction of items and services covered under §103(a), in effectuating these entitlements; and

(B) accessing, under §209(c), Contractor’s grievance procedures and the state fair hearing process;

(13) assist the child (and the child’s family or caregiver) in documenting, establishing, and maintaining the child’s eligibility for [drafter insert reference to state Medicaid program], the Supplemental Security Income (SSI) program under Title XVI of the Social Security Act, 42 U.S.C. §1381 et seq., and other public program benefits;

(14) inform the child's family or caregiver of the manner in which the child’s family or caregiver may participate in:

(A) voluntary networks organized for mutual support by families or caregivers of children with special health care needs; and

(B) the Family Advisory Board established and maintained by Contractor under §101(d)(3); and

(15) in the case of a child with special health care needs who is an adolescent as defined in §108(a), assist the adolescent in identifying and overcoming transitional issues relating to accessing items and services described in paragraph (3).19

Commentary: In tracking a child’s progress under a care plan, the child’s care coordinator will need to have access to information regarding the services provided to the child. The following illustrative language assumes that Contractor will have such information with respect to the services received by the child from providers participating in Contractor’s provider network, and that Purchaser will have information with respect to services received from providers outside of Contractor’s provider network that bill Purchaser for the care they furnish to the child.

(e) Duty of Purchaser to Assist in Tracking Use of Out-of-Plan Services — Purchaser shall make available on request, to the care coordinator of an enrolled child with special health care needs (as defined §108(c)), information relating to the payment by Purchaser of claims for items or services furnished to the child by providers not participating in Contractor’s provider network.

§105. Care Plan

Commentary: The following illustrative language would require Contractor to develop a care plan for each enrolled child with special health care needs. Children with special health care needs exhibit a wide variety of health conditions and disabilities. Care plans will vary depending upon the complexity of a child’s health care needs: children with multiple diagnoses are likely to require more extensive care plans than those with less complex needs. Care plans will also vary over time as the needs of such children change. The following illustrative language is designed to identify the elements of a care plan regardless of the complexity of the child’s needs at any given point in time.

Interested purchasers may wish to consider the use of abbreviated care plans for children with less complex needs. For example, the American Academy of Pediatrics (AAP) recommends that, in the case of children with less complex health care needs, the care plan be incorporated onto the child health invoice (also known as the diagnosis or reimbursement form) in order to minimize the administrative burden on primary care physicians. Another alternative would be to limit the requirement for the preparation of a care plan to those children with more complex medical needs.

(a) Duty to Develop Care Plan for Enrolled Children with Special Health Care Needs — Contractor shall, consistent with the family participation requirements under §101(d)(1)(C), comply with the requirements of subsections (b), (c), and (d) in the case of an enrolled child:

(1) whom Contractor (or a provider participating in Contractor’s provider network) has identified as a child with special health care needs (as defined in §108(c)) under §102(b); or

(2) with respect to whom Purchaser has notified Contractor under §102(a).

Commentary: The illustrative language below assumes that the child’s primary care provider is responsible for the development of the child’s care plan. Another approach is to vest responsibility for development of the plan in a multidisciplinary team. This approach is reflected in GW CHPR, Optional Purchasing Specifications: Medicaid Managed Care for Children with Behavioral Health Needs (forthcoming).

(b) Development of Care Plan20 — In the case of an enrolled child described in subsection (a), Contractor shall ensure that, within [ ] days of the date described in paragraph (3), the child’s primary care provider shall, consistent with the consultation requirements of paragraph (1) and the family participation requirements of paragraph (2), develop and, consistent with paragraph (5), update a care plan for the child that complies with the requirements of subsection (c).

(1) Consultation — In developing a care plan under this subsection, a primary care provider shall take into consideration:

(A) any requirements (whether or not relating to health care items or services) contained in an IFSP (as defined in §108(g)) or an IEP (as defined in §108(f)) obtained from:

(i) the child's family or caregiver; or

(ii) with the written consent of the family or caregiver, the educational agency referred to in §108(f) or the early intervention agency referred to in §108(g);

(B) the findings of any other formal or informal assessment or evaluation of the child by a health care professional, or the contents of any care plan developed for the child by another Contractor, within [ ] months prior to the effective date of the child’s enrollment;

(C) the professional judgment of a pediatric specialist (as defined in §108(j)), if any, familiar with the child’s special health care needs; and

(D) the professional judgment of the child’s care coordinator (as defined in §108(b)) under §104.

(2) Child and Family Participation — In developing a care plan under this subsection, a primary care provider shall:

(A) allow full participation in the development of the plan by:

(i) the child’s family or caregiver; and

(ii) unless clinically inappropriate or age-inappropriate, the child; and

(B) obtain the signature of the child’s family or caregiver certifying that the family or caregiver has fully participated in the development of the plan and concurs in its diagnostic and treatment recommendations.

(3) Date — The date described in this paragraph is the earlier of:

(A) the effective date of enrollment of the child; or

(B) the date on which the enrolled child has been identified as a child with special health care needs (as defined in §108(c)) by a provider participating in Contractor's provider network (whether or not such provider is the child’s primary care provider).

(4) Access to Care Plan — Contractor shall ensure that each care plan developed under this subsection:

(A) in the case of an enrolled child with special health care needs who is not an adolescent, is promptly made available to the child’s family or caregiver (as defined in §108(e));

(B) in the case of an enrolled child with special health care needs who is an adolescent, is promptly made available to the adolescent and to the adolescent’s family or caregiver;

(C) is explained to the enrolled child (and the child’s family or caregiver) by the child’s care coordinator consistent with §104(d)(1);

(D) is incorporated into the enrolled child’s medical record;

(E) is not disclosed to any person or entity with respect to which disclosure is prohibited under:

(i) 42 C.F.R. Part 2 (pertaining to the confidentiality of data related to alcohol or substance abuse);

(ii) 42 C.F.R. §§431.300 – 431.307;

(iii) the requirements of 34 C.F.R. Part 99.31 implementing the Family and Educational Rights and Privacy Act (FERPA); and

(iv) the confidentiality protections in the Individuals with Disabilities Education Act, 34 C.F.R. §§300.560 – 300.577, and §§303.400 – 303.425; and

(F) is disclosed to a person or entity that is not described in subparagraph (E) only with the prior written consent (specific to the person or entity to which the care plan is to be disclosed) of the child's family or caregiver.

Commentary: The following illustrative language would require periodic updating of the care plan of each enrolled child with special health care needs. The updates would have to be done at a frequency determined by the contracting MCO and the purchaser through negotiations. The duty on the Contractor to update periodically would expire when the enrollee is no longer a child with special health care needs as defined in §108(c) -- i.e., is age 21 or older, or no longer has special health care needs.

(5) Updating of Care Plan — Contractor shall ensure that the care plan of an enrolled child with special health care needs is:

(A) reviewed and updated, no less frequently than at least every [ ] months, by the child’s primary care provider on the basis of:

(i) the provider’s assessment of the child’s health and developmental status and needs;

(ii) the recommendations of the child’s care coordinator under §104(d)(10); and

(iii) the views of the child’s family or caregiver; and

(B) is incorporated into the child’s medical record after each update under subparagraph (A).

Commentary: In some states, the care plan serves as a payment authorization, specifying the items and services that do not require prior approval from the Contractor’s utilization control procedures. In Michigan, the Individualized Health Care Plan (IHCP) for a child functions as the payment authorization. Kids Care of Michigan Provider Manual (9/30/98) pp. 1-12. For illustrative language implementing this approach, see §107(a)(5).

(c) Contents of Care Plan — A care plan for an enrolled child with special health care needs (as defined in §108(c)) developed under subsection (b) shall specify:

(1) the items and services enumerated under §103(a) that are appropriate to prevent the deterioration of the child’s condition(s) and to promote the development or maintenance of age-appropriate functioning by the child;

(2) the items and services carved out under §103(b) that are appropriate to prevent the deterioration of the child’s condition(s) and to promote the development or maintenance of age-appropriate functioning by the child; and

(3) the health education and support services that are:

(A) indicated for the child’s family or caregiver; and

(B) covered under §103(a).

Commentary: Federal Medicaid law, §1903(c) of the Social Security Act, 42 U.S.C. §1396b(c), makes clear that States must pay for items and services covered under their state Medicaid plan even if the item or service is also required under a child’s IEP or IFSP: “Nothing in this title shall be construed as prohibiting or restricting, or as authorizing the Secretary [of HHS] to prohibit or restrict, payment [for services covered under Medicaid to a child with special health care needs] because such services are included in the child’s [IEP or IFSP].”

This statutory provision does not require a state to cover, under its state Medicaid plan, items or services that are optional under federal Medicaid law, even if those items and services could be covered under Medicaid and are required under the child’s IEP or IFSP. Note however, that the Medicaid EPSDT benefit covers all services for which federal matching funds are available that an eligible child is discovered to need as a result of an EPSDT screening, “whether or not such services are covered under the State [Medicaid program],” §1905(r)(5) of the Social Security Act, 42 U.S.C. §1396d(r)(5).

Thus, if a Medicaid-eligible child receives an EPSDT screen, and that screen indicates that a service described in that child's IEP (or IFSP) is medically necessary, the State Medicaid program is required to pay for the service (so long as the service is matchable under federal law). As discussed in the commentary to §103, the state Medicaid program may elect to cover some or all EPSDT services through contracts with MCOs. If the child is enrolled in an MCO, and the state has chosen to purchase the service through the MCO, the MCO is obligated to provide the service, even though the service is enumerated in the child's IEP (or IFSP).

Under current law, Medicaid is “the payer of first resort for medical services provided to children with disabilities pursuant to the [IDEA].” However, Medicaid coverage is not unlimited. For example, there are limits on what states may claim for school health-related transportation services for children with IEPs. See HCFA Letter to State Medicaid Directors, May 21, 1999, www.hcfa.gov/medicaid/smd52199.htm.

A General Accounting Office report concluded: “Both Medicaid and IDEA have an obligation to children with disabilities to ensure that they receive services that will best address their developmental needs, and coordination is essential to meet this obligation. State and local efforts, however, require federal guidance to communicate Medicaid’s coverage and documentation requirements….Recognizing this need, HCFA is developing additional guidance, which it expects to issue in the year 2000.” GAO, Medicaid and Special Education: Coordination of Services for Children with Disabilities is Evolving (December 1999) GAO/HEHS-00-20, p. 18.

HCFA has issued a clarification of its policy vis-à-vis state claiming for school health-related transportation services for children with IEPs under the IDEA in (1) a Letter to State Medicaid Directors (May 21, 1999), www.hcfa.gov/medicaid/smd52199.htm and (2) a draft Guide on Medicaid School-Based Administrative Claiming (February 2000), www.hcfa.gov. There has been some critical commentary on the draft Guide; for example, the Department of Education has recommended that HCFA revise the draft because, in its view, the draft "could be harmful by limiting access by school districts to Medicaid reimbursement for some activities that should be claimable…." HCFA testified before the Senate Finance Committee that "[o]nce we have reviewed the feedback, we expect to make changes before issuing a final Guide." Testimony of Tim Westmoreland, Director, HCFA Center for Medicaid and State Operations (April 5, 2000), www.senate.gov/~finance/4-5hcfa.htm.

(d) Coordination of Care Plans with IFSPs or IEPs — In the case of an enrolled child with special health care needs (as defined in §108(c)) who is receiving services under an IFSP (as defined in §108(g)) or an IEP (as defined in §108(f)) (whether or not at the time of enrollment), Contractor shall:

(1) furnish, or arrange for the furnishing of, the items and services that are:

(A) enumerated under §103(a);

(B) covered under §107; and

(C) required under the child’s IFSP or the IEP;

(2) ensure that the child’s primary care provider incorporates the items and services described in paragraph (1) into the child’s care plan under subsection (c);

(3) furnish, or arrange for the furnishing of, the items and services described in paragraph (1) through providers selected by Contractor (whether or not such providers are identified in, or furnish services to the child under, the IFSP or IEP);

(4) ensure that the child's care coordinator carries out the requirements of §104(d)(3); and

Commentary: The following illustrative language would clarify that the “natural environment” and “least restrictive environment” requirements of federal IDEA law apply to Contractors in the delivery of services through their own provider networks. In some states, early intervention services are provided by free-standing, state-certified agencies that do not participate in MCO provider networks. The following language would not impose any obligations upon Contractors with respect to services furnished to enrolled children by such free-standing, out-of-network agencies.

(5) ensure that:

(A) in the case of a child receiving services under an IFSP, the child, consistent with the Individuals with Disabilities Education Act, 20 U.S.C. §§1435(a)(16), 1436(d)(5), 34 C.F.R. §303.344(d)(1), shall receive items and services that Contractor furnishes under paragraph (1) in natural environments (as defined in §108(h)); and

(B) in the case of a child receiving services under an IEP, whether or not in an educational setting, the child shall receive the following items and services (to the extent that Contractor furnishes such items and services under paragraph (1)) consistent with the least restrictive environment requirement of the Individuals with Disabilities Education Act, 20 U.S.C. §1412(a)(5), 34 C.F.R. §300.550(b) (64 Fed Reg 12547 (March 12, 1999)):

(i) physical therapy;

(ii) speech therapy;

(iii) occupational therapy;

(iv) assistive technology services; and

(v) mental health services.

§106. Guidelines

Commentary: The development of clinical practice guidelines specific to children with special health care needs is in evolution. Some clinical performance measures have been developed for some conditions characteristic of children with special care needs, including chronic pediatric asthma, pediatric HIV, and schizophrenia in children and adolescents. For a database that relates these and other conditions to clinical performance measures, see the Agency for Health Care Policy and Research’s CONQUEST 2.0, http://www.ahrq.gov/qual/conquest.htm. The illustrative language below reflects the recommendations of expert reviewers involved in the development of these purchasing specifications.

(a) Guidelines — Contractor shall furnish or arrange for the furnishing of items and services covered under §103(a) to an enrolled child with special health care needs (as defined in §108(c)) in a manner which is consistent with [drafter insert one or more of the following guidelines]:

(1) the health supervision guidelines enumerated in §006(a)(1) of the Overview of MEDICAIDSPECS;21

(2) A Guide to Substance Abuse Services for Primary Care Clinicians, Treatment Improvement Protocol Series 24, BKD234 (1997) www.health.org/pubs/catalog/series.htm#CSATtip;

(3) Comprehensive Case Management for Substance Abuse Treatment, Treatment Improvement Protocol Series 27, BKD251(1998) www.health.org/pubs/catalog/series.htm#CSATtip; or

(4) Screening and Assessing Adolescents for Substance Use Disorders. Treatment Improvement Protocol Series 31, BKD306 (1999) www.health.org/pubs/catalog/series.htm#CSATtip.

(b) Other Requirements — Contractor shall comply with the requirements of Part 1B of MEDICAIDSPECS relating to the delivery of covered items and services.

§107. Coverage Determination Standards and Procedures22

Commentary: The December 17, 1997 letter from HCFA to State Medicaid Directors regarding the BBA Medicaid managed care amendments states that each risk contract with an MCO “…must include provisions that address the responsibility of the managed care entity to furnish care and services when medically necessary in sufficient detail to ensure that beneficiaries receive needed services to which they are entitled under the contract.” Note that, under §103, interested Purchasers and contracting MCOs could negotiate a list of items and services for which the MCOs would assume responsibility when medically necessary. In deciding whether the MCO is responsible for furnishing or paying for one of the listed items or services in the case of any individual enrolled child, a coverage determination is made. Thus, an item or service may be covered under §103 but not furnished or paid for because of an adverse coverage determination. The following section sets forth illustrative language framing coverage determinations for children with special health care needs.

The following illustrative language does not contemplate automatic authorization of coverage for items and services requested from Contractor by a Title V CSHCN program on behalf of an enrolled child. However, the illustrative language in §101A(b)(6) of MEDICAIDSPECS, would provide a role for the Title V CSHCN program with respect to submission of opinions and evidence in connection with coverage determination decisions. In addition, Contractor could not, under §101A(c)(4) of MEDICAIDSPECS, deny coverage for an item or service on the ground that the item or service is identified in a plan of care developed by a Title V CSHCN program.

(a) Coverage Determination Standards and Procedures

(1) In General — Contractor shall comply with the requirements of §§101A–103A of MEDICAIDSPECS and the requirements of this section relating to the standards and procedures used in determining whether an item or service is covered with respect to an enrolled child with special health care needs (as defined in §108(c)), except that:

(A) the requirements of paragraph (3) shall apply with respect to Contractor’s coverage determinations regarding prescription drugs; and

(B) the requirements of paragraph (4) shall apply with respect to Contractor’s coverage determinations regarding medical equipment.

(2) Personnel Qualified to Make Coverage Determinations — In the case of an enrolled child with special health care needs (as defined in §108(c)), Contractor shall ensure that at least one individual with expertise or experience in the clinical management of the child’s health care need participate in the determination as to whether the item or service is covered.

Commentary: The following language assumes that, in the case of prescriptions written by a physician participating in Contractor’s provider network, the prescription would be covered as prescribed by the physician if the drug is covered under the negotiated benefit package under §103(a). The language also assumes that, under applicable state law, Contractor would not be authorized to substitute generic drugs for brand name drugs prescribed by the treating physician whenever the physician specifies in writing that substitution is not appropriate through the use of such phrases as "do not substitute" or "no substitution."

(3) Coverage of Prescription Drugs

(A) Duty — In the case of a child with special health care needs (as defined in §108(c)), Contractor shall cover and furnish, or arrange for the furnishing of, a prescription drug if the drug is:

(i) covered under §103(a) (and is not carved out under §103(b));23 and

(ii) prescribed by:

(I) the child’s primary care provider; or

(II) a pediatric professional (as defined in §108(i)) participating in Contractor’s provider network.24

(B) Substitution — In carrying out subparagraph (A) with respect to a prescription, Contractor shall not, consistent with [drafter insert reference to state law on drug substitution] substitute, or arrange for the substitution of, a generic version for a prescribed brand name drug if the child's primary care provider or a pediatric professional has indicated in writing on the prescription that substitution is inappropriate.

(4) Coverage of Medical Equipment25

(A) In the case of a child with special health care needs (as defined in §108(c)), Contractor shall cover and furnish, or arrange for the furnishing of, an item of medical equipment if the item is:

(i) covered under §103(a) (and is not carved out under §103(b)); and

(ii) prescribed by:

(I) the child’s primary care provider; or

(II) a pediatric professional (as defined in §108(i)) participating in Contractor’s provider network.26

(B) Coverage of an item of medical equipment shall include the cost of:

(i) customizing the item in a manner appropriate to the physical characteristics and medical needs of the child;

(ii) training the child (and the child’s family or caregiver) in the use of the item; and

(iii) maintaining the item.

(5) Exclusion from Prior Authorization — In the case of an enrolled child with special health care needs (as defined in §108(c)), Contractor shall not require prior authorization with respect to:

(A) any item or service (including any direct access visit to a pediatric specialist (as defined in §108(j)) enumerated in the child’s care plan under §105;27

(B) in the case of a child with special health care needs with respect to whom a care plan is not in effect, items and services:

(i) described in §103A(d) of MEDICAIDSPECS;28 and

(ii) to the extent not described in clause (i), any item or service enumerated in §103(a) that is related to the treatment of an ongoing chronic or disabling condition that has been diagnosed by the child’s primary care provider or by a pediatric specialist (as defined in §108(j)) participating in Contractor’s provider network.

(b) Role of Care Coordinator in Utilization Management29

Commentary: There is no consensus on the appropriate role for a care coordinator in the MCO’s decision-making as to whether an item or service will be covered for an enrollee for whom the care coordinator is responsible. Some believe that, because of his or her knowledge of the enrollee’s circumstances, the care coordinator is the most appropriate person to make coverage determinations affecting that enrollee. Others believe that the care coordinator’s primary responsibility is to advocate within the MCO on behalf of the enrollee, and that requiring the care coordinator to manage the enrollee’s utilization of services would be inconsistent with this responsibility. The following illustrative language attempts to strike a balance between these two views by authorizing the care coordinator, with the consent of the child's family or caregiver, to provide information to the personnel making the coverage determination but not to participate directly in the determination itself.

(1) Prohibition on Participation in Coverage Determination — Contractor shall ensure that no care coordinator (as defined in §108(b)) participate directly in a determination as to whether an item or service sought by an enrolled child with special health care needs (as defined in §108(c)) will be covered under [drafter insert name of purchasing document].

(2) Provision of Information for Coverage Determination — Contractor may authorize a care coordinator to provide to the individuals responsible for coverage determinations under this section information material to the determination regarding an enrolled child with special health care needs for whom the care coordinator is responsible, but only if the child or the child’s family or caregiver consents to the provision of such information.30

§108. Definitions

(a) Adolescent – a child age [ ]31 through 20.

(b) Care coordinator – an individual who has demonstrated experience and appropriate training in the coordination of medical and related services to children with special health care needs and who is one of the following:

(1) a physician32 (including the primary care provider selected by an enrolled child under §203(b));

(2) a registered nurse;

(3) a social worker;

(4) a family counselor;

(5) a service coordinator assigned by an early intervention program under Part C of the Individuals with Disabilities Education Act (IDEA) 20 U.S.C. §1400 et seq.; or

(6) a health educator.

Commentary: The following definition combines criteria used by HRSA's Maternal and Child Health Bureau for purposes of Title V with the definition in the Medicaid statute (which is also the definition used in HCFA's "Draft Interim Review Criteria for Children with Special Needs," June 4, 1999). The six categories listed in the following illustrative language reflects the Medicaid statute under §1932(a)(2)(A) of the Social Security Act, 42 U.S.C. §1396u-2(a)(2)(A), as added by the Balanced Budget Act of 1997 (BBA), P.L. 105-33. A recent GAO analysis of this statutory definition concludes that "it does not cover some Medicaid-eligible children whose health conditions could merit recognition as exceptional and whose treatment in a managed care setting deserves to be closely monitored." General Accounting Office, Medicaid Managed Care: Challenges In Implementing Safeguards for Children with Special Needs (March 2000) GAO/HEHS-00-37, p. 15, www.gao.gov

(c) Child with special health care needs – a child under 2133 who has a chronic physical, developmental, or behavioral condition, and requires health and related services of a type or amount beyond that which is required by children generally34, including a child who, consistent with §1932(a)(2)(A) of the Social Security Act, 42 U.S.C. §1396u-2(a)(2)(A):

(1) is eligible for Supplemental Security Income (SSI) benefits under Title XVI of the Social Security Act, 42 U.S.C. §1381 et seq.;

(2) is a child with special health care needs described in §501(a)(1)(D) of the Social Security Act, 42 U.S.C. §701(a)(1)(D);

(3) is a child described in §1902(e)(3) of the Social Security Act, 42 U.S.C. §1396a(e)(3);35

(4) is a child receiving foster care maintenance payment under §472 of the Social Security Act, 42 U.S.C. §672;

(5) is a child receiving adoption assistance under §473 of the Social Security Act, 42 U.S.C. §673; or

(6) a child who is in foster care or otherwise in an out-of-home placement.36

(d) Contractor – the managed care organization doing business as [drafter insert name] that has entered into an agreement with Purchaser under [drafter insert name of purchasing document].

(e) Family or caregiver37 – a natural or adoptive parent of a child, a grandparent or stepparent with whom the child lives, or an individual or entity that is a foster parent, legal guardian or other individual or agency with legal authority or responsibility to care for the child.

(f) Individualized educational program (IEP)38 – a plan of services developed by an educational agency pursuant to the Individuals with Disabilities Education Act (IDEA), 20 U.S.C. §1401(11), 34 C.F.R. §§300.15, 300.347, which sets forth the special education and related services required by a child.

(g) Individualized family services plan (IFSP)39 – a plan of services developed by an early intervention agency pursuant to the Individuals with Disabilities Education Act (IDEA), 20 U.S.C. §§1401(12), 1436(d), 34 C.F.R. §§303.14, 303.340, 303.344, which sets forth the early intervention services required by a child and the child’s family or caregiver.

(h) Natural environment – as defined in the Individuals with Disabilities Education Act (IDEA), 20 U.S.C. §§1435(a)(16), 1436(d)(5), 34 C.F.R. §§303.12(b), 303.18, a setting, including the home, that is natural or normal for the child’s age peers who have no disabilities.

Commentary: In applying the primary care provider selection requirements under §203, the following definitions in (i) and (j) draw a distinction between a "pediatric professional" and a "pediatric specialist". As used by the American Academy of Pediatrics and in these specifications, the term "pediatric professionals" refer to physicians who are trained as specialists in pediatrics, including pediatric medical subspecialists and pediatric surgical specialists. Pediatric professionals could serve as primary care providers. On the other hand, "pediatric specialists" would not serve as primary care providers, but enrolled children would have access to such specialists through the child's care plan and under the access requirements in §205. While "pediatric professionals" are a subset of “pediatric specialists,” the latter category includes practitioners and clinics other than pediatricians, including child psychiatrists and psychologists.

(i) Pediatric professional – a physician who is trained as a specialist in pediatrics, including a pediatric medical subspecialist and a pediatric surgical specialist.

(j) Pediatric specialist – a provider (as defined in subsection (l)), including a pediatric professional (as defined in subsection (i)) who is a physician, child psychiatrist, child psychologist, or other health care practitioner who, with respect to the diagnosis, treatment, or management of a child’s (or adolescent’s) illness, injury or condition, has specialized expertise (as evidenced by certification or licensure or other means of formal recognition) relating to the particular illness, injury, or condition of the child (or adolescent).40

(k) Primary care provider – a provider (as defined in subsection (l)) that meets the requirements of §502(c) of Part 5 of MEDICAIDSPECS.

(l) Provider – a health care practitioner, clinic, hospital, school, or other entity licensed by the State to furnish medical, dental, mental health, or other health care services.

(m) Provider network – the set of providers that have entered into enforceable written agreements with Contractor that comply with the requirements of [drafter insert name of purchasing document] to furnish, or arrange for the furnishing of, covered items and services under §103(a) to enrolled children.

(n) Purchaser – [drafter insert name of state purchasing agency].

(o) Refer – as used in this document, the terms “refer” and “referral” shall not be construed to authorize payment by Contractor for an item or service or obligate Contractor to pay for an item or service.

(p) Other terms – see Part 14 of MEDICAIDSPECS.


Endnotes

  1. This duty is derived from Ad Hoc Task Force on Definition of the Medical Home, AAP, “The Medical Home,” 90 Pediatrics No. 5 (November 1992), p. 774. For additional information, see AAP’s Medical Home Program for Children with Special Needs (MHPCSN) at www.aap.org/advocacy/medhome.htm.
  2. An alternative option would be to delete paragraph (3) and any reference to child health guidelines. Under this option, the contractor would have a duty only to furnish covered services in accordance with specified coverage determination standards and procedures.
  3. For a discussion of Medicaid eligibility rules for children with special health care needs, see Schneider et al., Medicaid Eligibility for Individuals with Disabilities (May 2000), http://www.kff.org/medicaid/2150-index.html.
  4. HCFA’s "Key Approaches to the Use of Managed Care Systems for Persons with Special Health Care Needs" (October 1998), www.hcfa.gov/medicaid/smd-snpf.htm, provides that states should consider “[d]eveloping mechanisms to use a ‘health needs assessment’ process or other process (such as review of past Medicaid claims data) to identify existing or undiagnosed medical conditions.”
  5. For an analysis of MCO contracts involving children under the jurisdiction of state child welfare agencies, see Wehr, et al., Managing Child Welfare: An Analysis of Contracts for Child Welfare Service Systems (1999), GW CHPR, www.samhsa.gov.
  6. For more information on the National Birth Defects Prevention Network (NBDPN) recent report on "Birth Defect Surveillance Data from Selected States 1989-1996,” see Teratology 61:86-158 (2000). This review collected data from 29 state birth defect surveillance programs for 47 specific birth defects.
  7. Depending upon the time frame selected and the child's course of treatment, this could be a hospital staff physician or the child's primary care provider under §203.
  8. Note that under §105(b)(4), the Contractor’s duty to develop a care plan includes the duty to refer a child to the responsible agencies under Parts B and C of the Individuals with Disabilities Education Act, 20 U.S.C. §1400 et seq. The public agencies responsible for the development of IFSPs must hold the first meeting with the child and the family within 45 days of receiving a referral, 34 C.F.R. §303.321(e).
  9. Among the items and services to which Medicaid-eligible children are entitled is the EPSDT benefit, which contains coverage of particular importance to CSHCN. See National Health Law Program, Medicaid Managed Care and Children with Special Needs: An EPSDT Checklist, http://www.nhelp.org/pubs/mc1997checklist-epsdt.html.

    For additional information on the Medicaid benefits package, see Schneider and Garfield, Medicaid Benefits (July 2000) Kaiser Commission on Medicaid and the Uninsured, www.kff.org.
  10. HCFA’s State Medicaid Manual §4302.2H explains that when case management services are found to be medically necessary, states have several options: (1) EPSDT: “Case management services may be provided to persons participating in the EPSDT program by an existing service provider such as a physician or clinic referring the child to a specialist; (2) Administrative Case Management: “Case management services may be provided to EPSDT participants by the Medicaid agency or another state agency, such as Title V, the Health Department, or an entity with which the Medicaid agency has an interagency agreement.” and (3) Targeted Case Management Services: “The service must meet the statutory definition of case management services as defined in §1915(g)" (e.g., “services which will assist individuals eligible under the plan in gaining access to needed medical, social, educational, and other services”), www.hcfa.gov/pubforms/pub45pdf/smm4t.htm.
  11. This policy is based upon the following principles from the AAP’s managed care policy statement: “The primary care pediatric health professionals should assume the role of the care coordinator (i.e., the physician who assures that all referrals are medically necessary). The function of the PCP might be transferred to a pediatric medical subspecialist for certain children with complex physical and/or mental health problems (e.g., those with special health care needs such as children with cystic fibrosis, juvenile rheumatoid arthritis) if the specialist assumes responsibility and financial risk for primary and specialty care. For certain physical, developmental, mental health, and social problems, the PCP may seek the assistance of a multidisciplinary team with participation by appropriate public programs (e.g., Title V program for children with special health care needs).” See “Care Coordination: Integrating Health and Related Systems of Care for Children with Special Health Care Needs,” 104 Pediatrics No. 4 (October 1999), p. 978-981.
  12. HCFA’s "Draft Interim Review Criteria for Children with Special Needs" (June 4, 1999) provides: “The State has required the MCOs/PHPs to provide case management services to children with special needs” (p. 3).
  13. For a discussion of care for adolescents with special health care needs, see American Academy of Pediatrics, "Transition of Care for Adolescents with Special Health Care Needs," Pediatrics (December 1996) Vol. 98, No. 6, p. 1203. For a discussion of transitional issues affecting the health of adolescents generally, see Children Now, Partners in Transition: Adolescents and Managed Care (April 2000), www.childrennow.org.
  14. HCFA’s "Draft Interim Review Criteria for Children with Special Needs" (June 4, 1999) provides: “The State requires an assessment of each child’s needs and implementation of a treatment plan based on that assessment” (p. 3).
  15. Among the guidelines enumerated in §006(a)(1) of MEDICAIDSPECS are: (1) Bright Futures: Guidelines for Health Supervision of Infants, Children, and Adolescents, 2nd Edition (2000); (2) Guidelines for Adolescent Preventive Services (GAPS)(1995); and (3) AAP’s Guidelines for Health Supervision III (1997). Note that a version of Bright Futures that is specific to children with special health care needs is under development through HRSA’s Maternal and Child Health Bureau (MCHB).
  16. See also Ireys, H.T., Wehr, E., and Cooke, R.E. Assuring High Quality of Care for Persons with Developmental Disabilities and Other Special Health Care Needs: Specifications for a Definition of Medical Necessity, The Johns Hopkins University, June 1999, http://www.jhsph.edu/centers/cshcn/publications.html.
  17. In the case of individuals with HIV, HCFA has written to State Medicaid directors: “If your State includes drugs and covers the HIV population in managed care, these drugs must be available in managed care formularies. If your State excludes prescription drugs from managed care contractual requirements and capitation rates, the requirements of the drug rebate program are then applicable. States should examine their existing contracts to determine if prescription drugs are covered through managed care plans, what (if any) benefit restrictions may apply, and whether the capitation rates should be adjusted to account for the introduction of new drugs such as the protease inhibitors. The above considerations may not be broadly applicable if people with HIV/AIDS are specifically excluded from managed care (even on a voluntary basis), or the enrollment of HIV/AIDS-infected beneficiaries, or not widely distributed among plans. Under these circumstances, States may ‘carve out’ the prescription of, and payment for, drugs used in the treatment of HIV/AIDS (including protease inhibitors) from managed care contracts and capitation rates.” Letter from Sally K. Richardson, Director, Medicaid Bureau, to State Medicaid Directors, June 19, 1996.
  18. An alternative option would be to add pediatric specialists participating in the state Title V CSHCN program to the list of providers whose prescriptions for drugs Contractor must cover and pay for.
  19. In a Letter to State Medicaid Directors dated September 4, 1998, HCFA sets forth interpretive guidance clarifying policies concerning Medicaid coverage of medical equipment (ME) and the use of lists in making such coverage determinations. The Letter provides that “…a State will be in compliance with federal Medicaid requirements only if, with respect to an individual applicant’s request for an item of ME, the following conditions are met:

    The process is timely and employs reasonable and specific criteria by which an individual item of ME will be judged for coverage under the State’s home health services benefit. These criteria must be sufficiently specific to permit a determination of whether an item of ME that does not appear on a State’s pre-approved list has been arbitrarily excluded from coverage based solely on a diagnosis, type of illness, or condition.

    The State’s process and criteria, as well as the State’s list of pre-approved items, are made available to beneficiaries and the public.

    Beneficiaries are informed of their right, under 42 C.F.R. Part 431, Subpart E, to a fair hearing to determine whether an adverse decision is contrary to the law cited above.”

    States are not required to contract for the provision of ME with MCOs; however, a State Medicaid agency may find itself liable for items of medical equipment that are omitted from a purchasing agreement or that are denied due to coverage rules inconsistent with the September 4 letter.
  20. An alternative option would be to add pediatric specialists participating in the state Title V CSHCN program to the list of providers whose prescriptions for ME Contractor must cover and pay for.
  21. An alternative option would be to exclude from prior authorization only a subset of the items and services specified in the child's treatment plan, such as the number of direct access visits to pediatric specialists and any prescription drug requirements.
  22. Among the 14 classes of items and services excluded from prior authorization under §103A(d) of MEDICAIDSPECS are emergency services, urgent care, and EPSDT screens.
  23. An alternative option would be to limit the prohibition on participation of the care coordinator in utilization management to cases in which the child’s primary care provider is also the child’s care coordinator.
  24. An alternative option would be to authorize the provision of such information to individuals responsible for coverage determinations whether or not the child or the child’s family or caregiver consents.
  25. Bright Futures uses an age range from 11 through 20. Guidelines for Adolescent Preventive Services (GAPS) uses a range from 12 through 20. The Medicaid EPSDT benefit extends to all Medicaid-eligible children under age 21, §1905(a)(4)(B) of the Social Security Act, 42 U.S.C. §1396d(a)(4)(B).
  26. See AAP, “Care Coordination: Integrating Health and Related Systems of Care for Children with Special Health Care Needs,” 104 Pediatrics No. 4 (October 1999), pp. 978-981.
  27. Although the following statutory categories are limited to children under age 19, the definition in the illustrative language above extends to children under age 21, the line of demarcation for the EPSDT services benefit.
  28. These criteria are drawn from Merle McPherson et al., “A New Definition of Children with Special Health Care Needs,” 102 Pediatrics No. 1, July 1998, p. 137. The assessment tools described in footnote 12 are aligned with this definition.
  29. This refers to a child who is under 18, qualifies as disabled for purposes of the Supplemental Security Income (SSI) program, and requires the level of care provided by an institution but can appropriately be cared for at home or in the community.
  30. An alternative option would be to add one or more of the following categories of children within which there is a high prevalence of chronic conditions: (1) recipients of family preservation and support services from a state child welfare agency pursuant to 42 U.S.C. §629 et seq.; (2) homeless (as defined in §1401(n) of MEDICAIDSPECS) or at risk of being homeless; or (3) a member of family of a migratory agricultural worker (as defined in §1401(r) of MEDICAIDSPECS) or a seasonal agricultural worker (as defined in §1401(y) of MEDICAIDSPECS); (4) is under age 3 and is eligible for early intervention services under the Individuals with Disabilities Education Act, 20 U.S.C. §§1400 et seq., 34 C.F.R. §§303.16, 303.300; or (5) is age 3 or over and is eligible for special education and related services under the Individuals with Disabilities Education Act, 20 U.S.C. §§1400 et seq., 34 C.F.R. §300.7.
  31. An alternative option would be to define “parent” and “foster parent” as the terms are defined for purposes of an IEP at 34 C.F.R. §300.20 or for purposes of an IFSP at 34 C.F.R. §303.l9.
  32. For additional regulatory requirements relating to an IEP, see 34 C.F.R. §§300.340 - 300.361.
  33. For additional regulatory requirements relating to an IFSP, see 34 C.F.R. §§303.340 - 303.345.
  34. An alternative option is to enumerate as “other entities” one or more of the following: (1) hospitals with the highest level of designation of advanced newborn intensive care capacity; (2) hospitals with a pediatric intensive care unit; (3) hospitals offering pediatric psychiatric care; (4) centers of excellence; and (5) specialty providers of multidisciplinary care in a single integrated unit.