Managed care organization; provider contract; material change; notice
Note: This section is part of the statutory regime applying to Nebraska’s Medical Assistance Program. It was enacted in 2020 (LB 956). Although this database does not otherwise include state Medicaid statutes, this law is included as a point of interest, given its recent enactment.
(1) For purposes of this section:
(a)(i) Material change means a change to a provider contract, the occurrence and timing of which is not otherwise clearly identified in the provider contract, that decreases the provider’s payment or compensation for services to be provided or changes the administrative procedures in a way that may reasonably be expected to significantly increase the provider’s administrative expense, including altering an existing prior authorization, precertification, or notification.
(ii) Material change does not include a change implemented as a result of a requirement of state law, rules and regulations adopted and promulgated or policies established by the Department of Health and Human Services, or policies or regulations of the federal Centers for Medicare and Medicaid Services of the United States Department of Health and Human Services; and
(b) Provider means a provider that has entered into a provider contract with a managed care organization to provide health care services under the medical assistance program.
(2) Each managed care organization shall establish procedures for changing an existing provider contract with a provider that include the requirements of this section.
(3) If a managed care organization makes any material change to a provider contract, the managed care organization shall provide the provider with at least sixty days’ notice of the material change. The notice of a material change required under this section shall include:
(a) The effective date of the material change;
(b) A description of the material change;
(c) The name, business address, telephone number, and electronic mail address of a representative of the managed care organization to discuss the material change, if requested by the provider;
(d) Notice of the opportunity for a meeting using real-time communication to discuss the proposed changes if requested by the provider, including any mode of telecommunications in which all users can exchange information instantly such as the use of traditional telephone, mobile telephone, teleconferencing, and videoconferencing. If requested by the provider, the opportunity to communicate to discuss the proposed changes may occur via electronic mail instead of real-time communication; and
(e) Notice that upon three material changes in a twelve-month period, the provider may request a copy of the provider contract with material changes consolidated into a single document. The provision of the copy of the provider contract with the material changes incorporated by the managed care organization (i) shall be for informational purposes only, (ii) shall have no effect on the terms and conditions of the provider contract, and (iii) shall not be construed as the creation of a new contract.
(4) Any notice required to be delivered pursuant to this section shall be sent to the provider’s point of contact as set forth in the provider contract and shall be clearly and conspicuously marked “contract change”. If no point of contact is set forth in the provider contract, the insurer shall send the requisite notice to the provider’s place of business addressed to the provider.