Cal. Code Regs. Tit. 22, § 53869 - Capitation Payment, Payment Rate Determination/Redetermination
(a) In making
capitation payments, the department shall adhere to the requirements specified
in section
53320. Per capita rates of
payment, by the department, for services provided to beneficiaries enrolled in
each plan in a designated region shall be payable effective the date a
beneficiary's enrollment takes effect. Capitation payments by a plan to a
primary care provider or clinic contracting with a plan on a capitation basis
shall be payable effective the date of the beneficiary's enrollment where the
beneficiary's assignment to or selection of a plan has been confirmed by the
plan. However, capitation payments by a plan to a primary care provider for a
beneficiary whose assignment to or selection of a primary care provider was not
confirmed by the plan on the date of the beneficiary's enrollment, but is later
confirmed by the plan, shall be payable no later than 30 days after the
beneficiary's enrollment.
(b) The
department shall determine capitation payment rates annually by actuarial
methods with assistance from an actuary or consulting actuary, except that the
department reserves the right to redetermine rates on an actuarial basis or
move to a negotiated rate for each rate year.
(c) The rates shall not exceed actuarially
equivalent Medi-Cal fee-for-service costs. These costs shall be determined by
viewing the total services and requirements, including administration, provided
under this Chapter by a local initiative or commercial plan, as though such
services and requirements were reimbursable under Chapter 3. For the purposes
of this section:
(1) Costs of administration
include, but are not limited to:
(A)
Salaries, bonuses or benefits paid or incurred with respect to the officers,
directors, partners, trustees or other principal management of the plan, minus,
to the extent that such persons also are providers of health care services, the
minimum reasonable cost of obtaining such health care services from other
persons.
(B) Cost of
marketing.
(C) Legal and accounting
fees and expenses.
(D) Costs
associated with the establishment and maintenance of agreements with providers
of health care services, excluding the cost of reviewing quality and
utilization of such services and cost of reviewing utilization of health care
services on a referral basis.
(E)
Premium on required fidelity and surety bonds and any insurance maintained
pursuant to Health and Safety Code, section
1377,
and any insurance or other expense incurred for the purpose of complying with
Health and Safety Code, section
1375.1.
(F) Costs of preparing reports required by
this Chapter.
(G) Costs of
maintaining facilities for administrative services.
(2) Costs of administration shall not
include:
(A) Bad debt write-off.
(B) Donations.
(C) Out-of-state and out-of country
travel.
(D) Expenditures for
commercial market development.
(E)
Stock losses.
(F) Good
will.
(G) Malpractice
insurance.
(d)
Capitation rates shall be effective for one year beginning the first day of
October each year. In the event that payment of the new rates is delayed beyond
the first day of October, continued payment of the rate in effect shall be
interim payment only. Final payment shall be:
(1) Adjusted by any increase or decrease to
the level of the new rates.
(2)
Effective as of the first day of October.
(e) Notwithstanding subsection (d), payment
of the new annual rates shall commence no later than December 1, provided that
a contract amendment providing for the new annual rates has been prior approved
by the United States Department of Health and Human Services, and signed by the
department and the plan, but has not yet received the approval of all required
control agencies and departments.
(f) Contract amendments providing for the new
annual rates shall provide that:
(1) The plan
stipulates to a confession of judgment, for any amounts received in excess of
the final approved rate, by accepting payment of the new annual rates prior to
final approval.
(g) Any
underpayment by the State, if the final approved rates differ from the rates
set forth in an amendment providing for new annual rates, shall be paid by the
department to the plan within 30 days after final approval of such rate
amendment.
(h) Any overpayment by
the department shall be recovered by withhold of the amount due from the plan's
next capitation payment, not to exceed 25 percent of the capitation payment. If
the overpayment is more than 25 percent, amounts up to 25 percent shall be
withheld from each successive capitation payment until such deficiencies are
recovered by the department. Upon termination the department may recover all
amounts outstanding from the last capitation payment.
(i) The contract between the department and a
local initiative or commercial plan shall include:
(1) The monthly capitation rates.
(2) A description of the actuarial method,
assumptions, cost information and utilization rates used in determining the
rates.
(j) In
redetermining capitation rates, the department shall follow to the requirements
specified in section
53322.
Notes
2. Repealer of section and NOTE and new section and NOTE filed 3-4-97; operative 3-4-97. Submitted to OAL for printing only pursuant to Section 147, SB 485 (Ch. 722/92) (Register 97, No. 10).
Note: Authority cited: Sections 10725, 14105, 14124.5 and 14312, Welfare and Institutions Code. Reference: Sections 14087.3, 14087.4 and 14301, Welfare and Institutions Code.
2. Repealer of section and Note and new section and Note filed 3-4-97; operative 3-4-97. Submitted to OAL for printing only pursuant to Section 147, SB 485 (Ch. 722/92) (Register 97, No. 10).
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