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Medicaid Contract Purchasing Specifications

Medical Necessity

Central to the concept of managed care is the control of utilization of covered services by enrollees. This control is commonly exercised through determinations as to whether an item or service sought on behalf of an individual enrollee is "medically necessary." Note that many of the child-related purchasing specifications do not use the terms "medical necessity" or "clinical necessity;" instead, they address "coverage determination" standards and procedures appropriate to both MCOs and BHOs. These pediatric purchasing specifications also speak to the scope of prior authorization controls, if any, used by Contractors to constrain use of services by enrolled children.

Purchasing Specification

Related Contract Language

ACCESS

  • §A2-9 (prior authorization)
  • §A3-2(c) (prohibition against use of care coordinator for utilization management)

CD

  • §107(b) (qualified personnel)
  • §107(c) (exclusion from prior authorization)
  • §107(d) (coverage determination defined)
CW
  • (see CBHN purchasing specifications below)
CBHN

Chapter I (prime/prime):

Chapter II (prime/subprime):

 

CSHCN
  • §107(a) (standards and procedures)
  • §107(b) (role of care coordinator in coverage determinations)

CC

  • §104 (duties relating to translations for enrollees with limited English proficiency)

DENTAL

  • §108 (coverage determinations)
IMMUN

LEAD

MEDIPED
SCHIP

‡The "prime/prime" arrangement has two primary contractors—the MCO and the BHO—to which the state purchaser makes capitation payments. Under this arrangement, a child is enrolled in both the MCO and the BHO. The "prime/subprime" arrangement involves one primary contractor and a subcontractor. The state purchaser contracts with and makes capitation payments to an MCO; the MCO, in turn, subcontracts with the BHO for the provision of behavioral health services.

  • ACCESS = Access to Services (July 2000)
  • CD = Child Development Services (July 2000)
  • CW = Child Welfare (December 2001)
  • CBHN = Children with Behavioral Health Needs (December 2000)
  • CSHCN = Children with Special Health Care Needs (August 2000)
  • CC = Cultural Competence (Updated, November 2001)
  • DENTAL = Dental and Oral Pediatric Health Services (March 2000)
  • IMMUN = Immunizations (May 1998)
  • LEAD = Childhood Lead Poisoning Services (November 1998)
  • MEDIPED = Medicaid Pediatric Services (September 1999)
  • SBHC = School-Based Health Center Services (January 2002)
  • SCHIP = SCHIP Pediatric Services (April 2002)