CMS-10237 Part C - Medicare Advantage and 1876 Cost Plan Expansion

Medicare Advantage Application - Part C and 1876 Cost Plan Expansion Application Regulations under 42 CFR 422 (Subpart K) & 417.400 (CMS-10237)

CY2017 Part C - MA and 1876 Cost Plan Expansion Application (30Day)docx

Part C Medicare Advantage Application and 1876 Cost Plan Expansion Application

OMB: 0938-0935

⚠️ Notice: This form may be outdated. More recent filings and information on OMB 0938-0935 can be found here:

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PART C -MEDICARE ADVANTAGE
and 1876 COST PLAN EXPANSION
APPLICATION
For all new applicants and existing Medicare Advantage contractors seeking
to expand a service area -- CCP, PFFS, MSA, RPPO, SNPs, and EGWPs
For all existing Medicare Cost Plan contractors seeking to expand the
contract service area

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services (CMS)
Center for Medicare (CM)
Medicare Drug and Health Plan Contract Administration Group
(MCAG)
Medicare Advantage Coordinated Care Plan (CCPs) must offer at least one
Medicare Advantage plan that includes a Part D prescription drug benefit
(MA-PD) in each county of its service area. Therefore, CCP applicants must
timely submit a Medicare Advantage-Prescription Drug (MA-PD) application
to offer Part D prescription drug benefits as a condition of approval this
application.

PUBLIC REPORTING BURDEN: According to the Paperwork Reduction Act of 1995, no persons are required to respond to a
collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection
is 0938-0935. The time required to complete this information collection is estimated to average 50 hours per response, including the
time to review instructions, search existing data resources, and gather the data needed, and complete and review the information
collection. If you have any comments, concerning the accuracy of the time estimate(s) or suggestions for improving this form, please
write to CMS, Attn: Reports Clearance Officer, 7500 Security Boulevard, Baltimore, Maryland 21244-1850.

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GENERAL INFORMATION ........................................................ 5
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10

Overview .............................................................................................................. 5
Types of MA Products ......................................................................................... 5
Important References ........................................................................................... 6
Technical Support ................................................................................................ 6
The Health Plan Management System (HPMS) .................................................. 8
Submitting Notice of Intent to Apply (NOIA)..................................................... 9
Additional Information ...................................................................................... 10
Due Dates for Applications – Medicare Advantage and Medicare Cost Plans . 12
Request to Modify a Pending Application ......................................................... 12
Application Determination and Appeal Rights .................................................. 13

INSTRUCTIONS .......................................................................... 14
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11

Overview ........................................................................................................... 14
Applicants Seeking to Offer New Employer/Union-Only Group Waiver Plans
(EGWPs) ........................................................................................................... 15
Applicants Seeking to Offer Employer/Union Direct Contract MAO.............. 15
Applicants Seeking to Offer Special Needs Plans (SNPs)................................ 15
Applicants Seeking to Expand Medicare Cost Plans ....................................... 16
Applicants Seeking to Serve Partial Counties .................................................. 16
Types of Applications ....................................................................................... 16
Chart of Required Attestations by Type of Applicant ...................................... 17
Health Services Delivery (HSD) Tables Instructions ....................................... 19
Document (Upload) Submission Instructions ................................................... 20
MA Part D (MA-PD) Prescription Drug Benefit Instructions .......................... 20

ATTESTATIONS .......................................................................... 21
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
3.14
3.15
3.16

Experience & Organization History.............................................................. 21
Administrative Management ............................................................................. 22
State Licensure .................................................................................................. 24
Program Integrity .............................................................................................. 27
Compliance Plan ............................................................................................... 27
Key Management Staff ..................................................................................... 28
Fiscal Soundness ............................................................................................... 28
Service Area ...................................................................................................... 29
CMS Provider Participation Contracts & Agreements ..................................... 29
Contracts for Administrative & Management Services .................................... 31
Health Services Management & Delivery ........................................................ 32
Quality Improvement Program ......................................................................... 34
Marketing .......................................................................................................... 36
Eligibility, Enrollment, and Disenrollment ....................................................... 39
Working Aged Membership ............................................................................. 42
Claims ............................................................................................................... 43

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3.17
3.18
3.19
3.20
3.21
3.22
3.23
3.24
3.25
3.26
3.27
3.28

Communications between MAO and CMS ...................................................... 43
Grievances......................................................................................................... 44
Appeals ............................................................................................................. 46
Health Insurance Portability and Accountability Act of 1996 (HIPAA) .......... 49
Continuation Area ............................................................................................. 49
Part C Application Certification ....................................................................... 50
RPPO Essential Hospital................................................................................... 50
Access to Services (PFFS & MSA) .................................................................. 51
Claims Processing (PFFS & MSA)................................................................... 54
Payment Provisions........................................................................................... 56
General Administration/Management ............................................................... 57
Past Performance …………………………………………………………… 59

Document Upload Templates ....................................................... 60
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10

History/Structure/Organizational Charts .......................................................... 60
Minimum Enrollment Waiver Request Upload Document .............................. 62
Two Year Prohibition Waiver Request Upload Document ............................. 63
CMS State Certification Form .......................................................................... 64
Part C Application Certification Form .............................................................. 70
RPPO State Licensure Table............................................................................. 72
RPPO State Licensure Attestation .................................................................... 73
RPPO Essential Hospital Designation Table .................................................... 74
RPPO Essential Hospital Attestation ................................................................ 75
Partial County Justification ............................................................................... 76

APPENDIX I: Solicitations for Special Needs Plan (SNP) Application
......................................................................................................... 78
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
5.13
5.14
5.15
5.16
5.17

Background ....................................................................................................... 78
Instructions........................................................................................................ 78
Initial (new) SNP .............................................................................................. 78
SNP Service Area Expansion (SAE) ................................................................ 79
Renewal SNPs that are Not Expanding their Service Area .............................. 79
D-SNP State Medicaid Agency(ies) Contract(s) .............................................. 81
I-SNP Attestations ............................................................................................ 81
C-SNP, D-SNP and I-SNP ESRD Waiver Request .......................................... 82
Model of Care Attestations ............................................................................... 82
Health Risk Assessment Attestations ............................................................... 83
SNP Quality Improvement Program Requirements.......................................... 84
Past Performance Attestation ............................................................................ 85
D-SNP State Medicaid Agency Contract Matrix .............................................. 86
FIDE Special Needs Plan (SNP) Contract Review Matrix .............................. 87
I-SNP Upload Documents ................................................................................ 87
ESRD Waiver Request Upload Document ....................................................... 91
Model of Care Matrix Upload Document ......................................................... 93

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APPENDIX II: Employer/Union-Only Group Waiver Plans (EGWPs)
MAO “800 Series” ....................................................................... 101
6.1
6.2
6.3
6.4

Background ..................................................................................................... 101
Instructions...................................................................................................... 101
Request for Additional Waivers/Modification of Requirements (Optional) .. 102
Attestations ..................................................................................................... 103

APPENDIX III: Employer/Union Direct Contract for MA.... 108
7.1
7.2
7.3
7.4
7.5

Background ..................................................................................................... 108
Instructions...................................................................................................... 108
Request for Additional Waivers/Modification of Requirements (Optional) .. 109
Attestations ..................................................................................................... 110
Part C Financial Solvency & Capital Adequacy Documentation For Direct Contract
MAO applicants: ............................................................................................. 114

APPENDIX IV: Medicare Cost Plan Service Area Expansion
Application ................................................................................... 125
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8

State Licensure ................................................................................................ 125
Service Area .................................................................................................... 127
CMS Provider Participation Contracts & Agreements ................................... 127
Contracts for Administrative & Management Services .................................. 128
Health Services Management & Delivery ...................................................... 130
Part C Application Certification ..................................................................... 132
Full Financial Risk .......................................................................................... 132
Budget Forecast .............................................................................................. 132

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GENERAL INFORMATION

1.1 Overview
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA)
significantly revised the Medicare + Choice managed care program, now called the Medicare
Advantage (MA) program, and added outpatient prescription drugs to Medicare, offered by
either stand-alone prescription drug plan sponsors or Medicare Advantage Organizations
(MAOs). The MMA changes make managed care more accessible, efficient, and attractive to
beneficiaries seeking options to meet their needs. The MA program offers several kinds of plans
and health care choices, including Regional Preferred Provider Organizations (RPPOs), Private
Fee-For-Service (PFFS) plans, Special Needs Plans (SNPs), and Medical Savings Account
(MSA) plans.
The Medicare outpatient prescription drug benefit is a landmark addition to the Medicare
program. More people have prescription drug coverage and are saving money on prescription
drugs than ever before. Costs to the government for the program are lower than expected, as are
premiums for prescription drug plans.
People with Medicare not only have more quality health care choices than in the past but also
have more information about those choices. The Centers for Medicare & Medicaid Services
(CMS) welcomes organizations that can add value to these programs, make them more
accessible to Medicare beneficiaries, and meet all the contracting requirements.
1.2 Types of MA Products
The MA program is comprised of a variety of product types, including:
•

•
•
•

Coordinated Care Plans (CCPs)
ο Health Maintenance Organizations (HMOs) with or without a Point of Service (POS)
benefit
ο Local Preferred Provider Organizations (LPPOs)
ο Regional Preferred Provider Organizations (RPPOs)
ο Special Needs Plans (SNPs)
Private Fee-for-Service (PFFS) plans
Medical Savings Account (MSA) plans
Employer Group Waiver plans (EGWPs)

Qualifying organizations may contract with CMS to offer any of these types of products. To
offer one or more of these products, an application must be submitted according to the
instructions in this application.
Note: The MMA requires that CCPs offer at least one MA plan that includes a Part D
prescription drug benefit (MA Part D or MA-PD) in each county of its service area. To meet this

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requirement, the applicant must timely complete and submit a separate Part D application in
connection with this Part C Application.
PFFS plans have the option to offer the Part D drug benefit. MSA plans cannot offer the Part D
drug benefit.
1.3 Important References
MA Organizations
The following are key references about the MA program:
•
•

•
•

Social Security Act: 42 U.S.C 1395 et seq.:
http://www.ssa.gov/OP_Home/ssact/title18/1800.htm
Medicare Regulations: 42 CFR 422:
http://ecfr.gpoaccess.gov/cgi/t/text/textidx?c=ecfr&sid=4b0dbb0c0250d4508a613bbc3d131961&tpl=/ecfrbrowse/Title42/42cfr422_
main_02.tpl
Medicare Managed Care Manual: http://www.cms.gov/Regulations-andGuidance/Guidance/Manuals/Internet-Only-Manuals-IOMs.html
Marketing Guidelines: http://www.cms.gov/ManagedCareMarketing/

Medicare Cost Plans
Information requested in this application is based on Section 1876 of the Social Security Act
(SSA) and the applicable regulations of Title XIII of the Public Health Services Act.
Additional information can be found on the Centers for Medicare & Medicaid Services (CMS)
Web site: http://www.cms.gov/MedicareCostPlans/
•
•

•

SSA: 42 U.S.C. 1395mm:
http://www.ssa.gov/OP_Home/ssact/title18/1876.htm
Medicare Regulations: 42 CFR 417:
http://ecfr.gpoaccess.gov/cgi/t/text/textidx?c=ecfr&sid=8072f532d9936eba1bee882c805beedb&tpl=/ecfrbrowse/Title42/42cfr417_
main_02.tpl
Centers for Medicare & Medicaid Services (CMS) Web site: http://www.cms.gov

1.4 Technical Support
CMS conducts special training sessions and user group calls for new applicants and existing
contractors. All applicants are strongly encouraged to participate in these sessions, which are
announced via the HPMS (see section 1.5 below) and/or the CMS main website.
CMS Central Office (CO) staff and Regional Office (RO) staff are available to provide technical
support to all applicants during the application process. While preparing the application,
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applicants may send an email by going to https://dmao.lmi.org/ and clicking on the MA
Applications tab. Please note: this is a webpage, not an email address. Applicants should
contact their RO to request assistance with specific issues related to their deficiency letters.
Below is a list of CMS RO contacts.
This information is also available at:
https://www.cms.gov/RegionalOffices/
RO ICMS – BOSTON REGIONAL OFFICE
John F. Kennedy Federal Building, Room 2325, Boston, MA 02203
Telephone: 617-565-1267
States: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont
RO II CMS – NEW YORK REGIONAL OFFICE
26 Federal Plaza, Room 3811, New York, NY 10278
Telephone: 212-616-2353
States: New Jersey, New York, Puerto Rico and Virgin Islands
RO III CMS – PHILADELPHIA REGIONAL OFFICE
Public Ledger Building, Suite 216, 150 S. Independence Mall West, Philadelphia, PA
19106-3499
Telephone: 215-861-4224
States: Delaware, District Of Columbia, Maryland, Pennsylvania, Virginia and West
Virginia
RO IV CMS – ATLANTA REGIONAL OFFICE
Atlanta Federal Center, 61 Forsyth Street, SW, Suite 4T20, Atlanta, GA 30303-8909
Telephone: 404-562-7362
States: Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South
Carolina and Tennessee
RO V CMS – CHICAGO REGIONAL OFFICE
233 North Michigan Avenue, Suite 600, Chicago, IL 60601-5519
Telephone: 312-353-3620
States: Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin
RO VI CMS – DALLAS REGIONAL OFFICE
1301 Young Street, Room 714, Dallas, TX 75202
Telephone: 214-767-4471
States: Arkansas, Louisiana, Oklahoma, New Mexico and Texas
RO VII CMS – KANSAS CITY REGIONAL OFFICE
Richard Bolling Federal Office Building, 601 East 12th Street, Room 235, Kansas City,
MO, 64106
Telephone: 816-426-5783
States: Iowa, Kansas, Missouri and Nebraska

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RO VIII CMS – DENVER REGIONAL OFFICE
1961 Stout Street, Room 08-148, Denver, CO 80294
Telephone: 303-844-2111
States: Colorado, Montana, North Dakota, South Dakota, Utah and Wyoming
RO IX CMS – SAN FRANCISCO REGIONAL OFFICE
Division of Medicare Health Plans Operations
90 7th Street, Suite 5-300 (5w), San Francisco, CA 94103-6707
Telephone: 415-744-3602
States: Arizona, California, Guam, Hawaii, Nevada, American Samoa and The
Commonwealth of Northern Mariana Islands
RO X CMS – SEATTLE REGIONAL OFFICE
Blanchard Plaza Building
2201 Sixth Avenue, MS/RX-40, Seattle, WA 98121
Telephone: (206) 615-2306
States: Alaska, Idaho, Oregon and Washington
For general information about this application, please send an email by going to:
https://dmao.lmi.org/ and clicking on the MA Applications tab. Please note: this is a webpage,
not an email address..
1.5 The Health Plan Management System (HPMS)
A. HPMS is the primary information collection vehicle through which MAOs and Medicare
Cost Plan contractors will communicate with CMS during the application process, bid
submission process, ongoing operations of the MA program or Medicare Cost Plan contracts,
reporting and oversight activities.
B. Applicants are required to enter contact and other information collected in HPMS in order to
facilitate the application review process. Applicants must promptly enter organizational data
into HPMS and keep the information up to date. These requirements ensure that CMS has
current information and is able to provide guidance to the appropriate contacts within the
organization. In the event that an applicant is awarded a contract, this information will also
be used for frequent communications during contract implementation. Therefore, it is
important that this information be accurate at all times. Please note that it is CMS’
expectation that the MA and Part D Application Contact is a direct employee of the
applicant.
C. HPMS is also the vehicle used to disseminate CMS guidance to MAOs and Medicare Cost
Plan contractors. This information is then incorporated into the appropriate manuals. It is
imperative for MAOs and Medicare Cost Plan contractors to independently check HPMS
memos and follow the guidance as indicated in the memos.

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D. Applicants and other interested parties, whom do not have access to HPMS, can stay abreast
of current HPMS memos and guidance by subscribing to the Medicare Advantage listserv.
Subscribers to the CMS PLAN or INDUSTRY listservs receive memos and guidance
regarding Medicare Advantage and Part D prescription drug programs.
If you do not have access to HPMS but would like to receive CMS guidance and memos,
simply request to be added to one of the following listservs:
•
•

PLAN listserv: Choose this listserv to get HPMS guidance and memos if you are a user
that works for an MA or Part D organization but your role in the company does not
require HPMS access.
INDUSTRY listserv: Choose this listserv if you are an industry user that is not associated
with any existing MA or Part D organization, but work with MA and Part D in some
capacity (e.g., consultants, PBMs, doctors, pharmacists, etc).

Please email your request directly to Sara Walters at Sara.Walters@cms.hhs.gov. Please
indicate in the email which listserv you wish you join. If you wish to join the PLAN listserv
please provide the contract number(s) you are associated with.
1.6 Submitting Notice of Intent to Apply (NOIA)
MA applicants
Organizations interested in offering a new MA product, expanding the service area of an existing
product, or submitting a PFFS network transition application must complete a nonbinding NOIA.
CMS will not accept applications from organizations that fail to submit a timely NOIA. Upon
submitting the completed form to CMS, the organization will be assigned a pending contract
number (H number) to use throughout the application and subsequent operational processes.
Once a contract number is assigned, the applicant should request a CMS User ID. An application
for Access to CMS Computer Systems (for HPMS access) is required and can be found at:
https://applications.cms.hhs.gov. Upon approval of the CMS User ID request, the applicant will
receive a CMS User ID(s) and password(s) for HPMS access. Existing MAO’s requesting
service area expansions do not need to apply for a new contract number.
Medicare Cost Plans
No initial or new 1876 Cost Plan applications can be accepted by CMS during this application
cycle. CMS will accept applications to expand service areas of existing 1876 Cost Plans for
2017 in accordance with 42 CFR 417.402. During the CMS review of these applications, the
most current data will be employed to apply the Cost Plan Competition Requirements with
regard to this type of application. CMS will make a determination whether an application of this
type cannot be processed during this application cycle to the extent that the expansion
application is for a requested service area or portions of a service area in which at least two
competing Medicare Advantage local coordinated care plans or two Medicare Advantage
Regional PPO coordinated care plans meeting specified enrollment thresholds are available. If

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this is the case, the applicant will be informed and the application withdrawn from further
processing and review.
Existing Cost contractors requesting service area expansions should not apply for a new Cost
contract number.
1.7 Additional Information
1.7.A Bid Submission and Training
On or before the first Monday of June of every year, all MAOs and Medicare Cost Plan
contractors offering Part D* must submit a bid, comprised of the proper benefits and pricing for
each MA plan for the upcoming year based on its determination of expected revenue needs. Each
bid will have 3 components: original Medicare benefits (A/B); prescription drugs under Part D
(if offered under the plan); and supplemental benefits. Bids must also reflect the amount of
enrollee cost sharing. CMS will review bids and request additional information if needed.
MAOs and Medicare Cost Plan contractors must submit the benefit plan or plans it intends to
offer under the bids submitted. No bid submission is needed at the time the application is due.
Further instructions and time frames for bid submissions are provided at:
http://www.cms.gov/MedicareAdvtgSpecRateStats/01_Overview.asp#TopOfPage
In order to prepare plan bids, applicants will use HPMS to define its plan structures, associated
plan service areas, and then download the Plan Benefit Package (PBP) and Bid Pricing Tool
(BPT) software. For each plan being offered, applicants will use the PBP software to describe the
detailed structure of its MA or Medicare Cost Plan benefit and the BPT software to define its bid
pricing information.
Once the PBP and BPT software requirements have been completed for each plan being offered,
applicants will upload their bids into HPMS. Applicants will be able to submit bid uploads via
HPMS on their PBP or BPT one or more times between May and the CY bid deadline, which is
the first Monday in June each year. CMS will use the last successful upload received for each
plan as the official bid submission.
CMS will provide technical instructions and guidance upon release of HPMS bid functionality as
well as the PBP and BPT software. In addition, systems training will be available at the Bid
Training in Spring 2016.
* Medicare Cost contractors are not required to offer Part D coverage but may elect to do so. A
cost contractor that elects to offer Part D coverage is required to submit a Bid.
1.7.B System and Data Transmission Testing
All MAOs and Medicare Cost Plan contractors must submit information about their membership
to CMS electronically and have the capability to download files or receive electronic information
directly. Prior to the approval of a contract, MAOs must contact the MA Help Desk at 1-800927-8069 for specific guidance on establishing connectivity and the electronic submission of

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files. Instructions are also on the MA Help Desk web page,
https://www.cms.gov/mapdhelpdesk/, in the Plan Reference Guide for CMS Part C/D systems
link. The MA Help Desk is the primary contact for all issues related to the physical submission
of transaction files to CMS.
1.7.C Protecting Confidential Information
Applicants may seek to protect their information from disclosure under the Freedom of
Information Act (FOIA) by claiming that FOIA Exemption 4 applies. The applicant is required
to label the information in question “confidential” or “proprietary” and explain the applicability
of the FOIA exemption it is claiming. When there is a request for information that is designated
by the applicant as confidential or that could reasonably be considered exempt under FOIA
Exemption 4, CMS is required by its FOIA regulation at 45 CFR 5.65(d) and by Executive Order
12600 to give the submitter notice before the information is disclosed. To decide whether the
applicants information is protected by Exemption 4, CMS must determine whether the applicant
has shown that: (1) disclosure of the information might impair the government's ability to obtain
necessary information in the future; (2) disclosure of the information would cause substantial
harm to the competitive position of the submitter; (3) disclosure would impair other government
interests, such as program effectiveness and compliance; or (4) disclosure would impair other
private interests, such as an interest in controlling availability of intrinsically valuable records,
which are sold in the market place. Consistent with our approach under other Medicare
programs, CMS would not release information that would be considered proprietary in nature if
the applicant has shown it meets the requirements for FOIA Exemption 4.
1.7.D Payment Information Form
Please complete the Payment Information form that is located at:
http://www.cms.gov/MedicareAdvantageApps/Downloads/pmtform.pdf.
The document contains financial institution information and Medicare contractor data.
Please submit the fully completed Payment Information form and following documents to CMS:
• Copy of a voided check or a letter from bank confirming the routing and account
information
• W-9 Form
The completed Payment Information Form and supporting documentation must be emailed to
DPO_PAYMENT_ADMINISTRATOR@cms.hhs.gov by the date the completed applications
are due to CMS. The subject line of the email should be “Payment Information Form for [insert
contract number]”, and the plan should specify the effective date (month and year) in the body of
the email.
If the applicant has questions about this form, please contact Louise Matthews at (410) 7866903.

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1.8 Due Dates for Applications – Medicare Advantage and Medicare Cost Plans
* Note: all dates listed below are subject to change.
Applications must be submitted by 8:00 P.M. EST, February 17, 2016. CMS will not review
applications received after this date and time. Applicant’s access to application fields within
HPMS will be blocked after this date and time.
Below is a tentative timeline for the Part C (MA program) and Medicare Cost Plan application
review process:
APPLICATION AND BID REVIEW PROCESS *
Date
November 13,2015

December 4, 2015 * First
Friday in December
January 12,2016

Milestone
Recommended date by which applicants should submit their Notice
of Intent to Apply Form to CMS to ensure access to Health Plan
Management System (HPMS) by the date applications are released.
CMS User ID form due to CMS
Final Applications Posted by CMS

January 29,2016

Deadline for NOIA form submission to CMS

February 17,2016

Completed Applications due to CMS

April 2016
Mid to End of May 2016

Plan Creation module, Plan Benefit Package (PBP), and Bid Pricing
Tool (BPT) available on HPMS.
Health Plan Management System (HPMS) formulary submission
window.
PBP/BPT Upload Module available on HPMS

May 2016
June 6, 2016 *First Monday
Bids due to CMS.
in June
Late August 2016

CMS completes review and approval of bid data.

September 2016

CMS executes MA and MA-PD contracts with organizations whose
bids are approved and who otherwise meet CMS requirements.

Mid October 2016

Annual Coordinated Election Period begins for CY 2017 plans.

* Note: all dates listed above are subject to change.
1.9 Request to Modify a Pending Application
Applicants seeking to withdraw or reduce the service area of a pending application (i.e., one
being reviewed by CMS) must submit a written request to CMS on the organization’s letterhead
and signed by an authorized corporate official.
Applicants may submit the request using any of the following methods:

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Email - Send the request in PDF format as an attachment to the email message by going
to https://dmao.lmi.org/ and clicking on the MA Applications tab. Please note: this is a
webpage, not an email address. Send a copy of the letter via e-mail to the Regional office
Account Manager or Application reviewer.

Mail – Address the request to:
CMS
Attn: MCAG/DMAO
Mail Stop: C4-22-04
7500 Security Blvd.
Baltimore, MD 21244
Mail a copy of the request to the Regional Office Account Manager or Application
Reviewer.

Fax - Send faxed requests to the attention of the Part C Applications Operations Manager
at (410) 786-8933. Fax a copy to the Regional Office Account Manager or Application
Reviewer.

The following information must be included in the request:
•
•
•
•
•

Applicant Organization’s Legal Entity Name
Full and Correct Address and Point of Contact information for follow-up, if necessary
Contract Number (H#)
Reason for withdrawal
Exact Description of the Nature of the Withdrawal, for example:
ο Withdrawal from individual Medicare market counties (keeping Medicare employer
group counties, e.g., 800 series plan(s))
ο Withdrawal from employer group counties (keeping the individual Medicare market
counties)
ο Withdrawal of the entire application.
ο Withdrawal of specifically named counties from both individual Medicare and employer
group markets

1.10 Application Determination and Appeal Rights
All applicants
If CMS determines that the applicant is not qualified and denies this application, the applicant
has the right to appeal this determination through a hearing before a CMS Hearing Officer.
Administrative appeals of MA-PD application denials are governed by 42 CFR 422, Subpart N.
The request for a hearing must be in writing, signed by an authorized official of the applicant
organization, and received by CMS within 15 calendar days from the date CMS notifies the
MAO of its determination (see 42 CFR 422.662.) If the 15th day falls on a weekend or federal
holiday, the applicant has until the next regular business day to submit its request.
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The appealing organization must receive a favorable determination resulting from the hearing or
review as specified under Part 422, Subpart N prior to September 1, 2016 (tentative date) in order
to qualify for a Medicare contract to begin January 1, 2017.

2
2.1

INSTRUCTIONS
Overview

Applicants must complete the 2017 MA or Medicare Cost Plan Service Area Expansion
application using HPMS as instructed. CMS will only accept submissions using this current 2017
version of the MA application. All documentation must contain the appropriate CMS-issued
contract number.
In preparing a response to the prompts throughout this application, the applicant must mark
“Yes” or “No” in sections organized with that format. By responding “Yes,” the applicant is
certifying that its organization complies with the relevant requirements as of the date the
application is submitted to CMS, unless a different date is stated by CMS.
CMS may verify an applicant’s readiness and compliance with Medicare requirements through
on-site visits at the applicant’s facilities as well as through other program monitoring techniques
throughout the application process, as well as at any time both prior to and after the start of the
contract year. Failure to meet the requirements represented in this application and to operate MA
or Medicare Cost plans consistent with the applicable statutes, regulations, and the MA or
Medicare Cost Plan contract, and other CMS guidance could result in the suspension of plan
marketing and enrollment. If these issues are not corrected in a timely manner, the applicant will
be disqualified from participation in the MA or Medicare Cost Plan program, as applicable.
Throughout this application, applicants are asked to provide various documents and/or tables in
HPMS. There is a summary of all documents required to be submitted at the end of each
attestation section.
CMS strongly encourages MA applicants to refer to the regulations at 42 CFR 422 while
Medicare Cost Plan applicants should refer to the regulations at 42 CFR 417 to clearly
understand the nature of the requirements in order to provide an appropriate submission. Nothing
in this application is intended to supersede the regulations at 42 CFR 422 or 42 CFR 417. Failure
to reference a regulatory requirement in this application does not affect the applicability of such
requirement, and applicants are required to comply with all applicable requirements of the
regulations in Part 422 or 417 of Title 42 of the CFR. Applicants must read HPMS memos and
visit the CMS web site periodically to stay informed about new or revised guidance documents.

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2.2

Applicants Seeking to Offer New Employer/Union-Only Group Waiver Plans
(EGWPs)

Applicants who wish to offer MA or MA-PD products under Employer/Union-Only Group
Waivers must complete and timely submit a separate EGWP application. Please see APPENDIX
II: Employer/Union-Only Group Waiver Plans (EGWPs) MAO “800 Series” of this application
for details about EGWPs.
All applicants will be able to enter their EGWP service areas directly into HPMS during the
application process (refer to HPMS User Guide). Applicants may provide coverage to employer
group members wherever they reside (i.e., nationwide). However, in order to provide coverage to
retirees wherever they reside, applicants must set their service area to include all areas where
retirees reside during the plan year (i.e., national service areas).
2.3

Applicants Seeking to Offer Employer/Union Direct Contract MAO

Applicants who wish to offer an Employer/Union Direct Contract Private Fee-For Service
(PFFS) MAO must complete and timely submit a separate EGWP application. Please see
APPENDIX III: Employer/Union Direct Contract for MA of this application for details about the
Direct Contract MAO.
In general, MAOs can cover beneficiaries only in the service areas in which they are state
licensed and approved by CMS to offer benefits. CMS has waived these requirements for Direct
Contract MAOs. Direct Contract MAO applicants can extend coverage to all of their Medicareeligible active members/retirees regardless of whether they reside in one or more MAO regions
in the nation. In order to provide coverage to retirees wherever they reside, Direct Contract MAO
applicants must set their service area to include all areas where retirees may reside during the
plan year. CMS will not permit mid-year service area expansions.
Direct Contract MAOs that offer Part D coverage (i.e., MA-PDs) will be required to submit
pharmacy access information for the entire defined service area during the application process
and demonstrate sufficient access in these areas in accordance with employer group waiver
pharmacy access policy.
2.4

Applicants Seeking to Offer Special Needs Plans (SNPs)

New and expanding SNPs must also complete and timely submit a separate SNP proposal.
Existing SNPs that require re-approval under the NCQA SNP Approval process should only
submit their Model of Care written narrative and Model of Care Matrix Upload Document in the
HPMS Model of Care Module.. These SNPs will not be required to submit any other portion of
the MA application or SNP proposal, unless specifically noted (e.g., in the instructions for

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submission of contracts with State Medicaid Agencies). Please refer to APPENDIX I:
Solicitations for Special Needs Plan (SNP) Applications for specific instructions and details.
Existing Dual Eligible SNPs will need to submit a signed and executed State Medicaid Agency
Contract in HPMS without submitting any other portion of the SNP proposal unless the existing
D-SNP applying for a Service Area Expansion.

2.5

Applicants Seeking to Expand Medicare Cost Plans

All 2017 applicants seeking to expand the service area of an existing Medicare Cost Plan must
complete and timely submit a separate Medicare Cost Plan application. Please refer to
APPENDIX IV: Medicare Cost Plan Service Area Expansion Application for application
instructions and details.
2.6

Applicants Seeking to Serve Partial Counties

Applicants seeking to serve less than a full county (i.e., a partial county) must enter all service
area information in HPMS by the application submission deadline. Applicants cannot introduce
a partial county request after the initial application submission. In other words, applicants cannot
reduce a full-county request to a partial county request during the application review period.
2.7

Types of Applications

Initial Applications are for:
•
•
•

Applicants who are seeking an MA contract to offer an MA product for the first time or to
offer an MA product they do not already offer.
Existing MA Organizations who are seeking an MA contract to offer a type of MA product
they do not currently offer.
Existing PFFS contractors who are required to transition some or all of their service area to a
network based product.

Note: An RPPO applicant may apply as a single entity or as a joint enterprise. Joint Enterprise
applicants must provide as part of their application a copy of the agreement executed by the
State-licensed entities describing their rights and responsibilities to each other and to CMS in the
operation of a Medicare Part D benefit plan. Such an agreement must address at least the
following issues:
•
•

Termination of participation in the joint enterprise by one or more of the member
organizations; and
Allocation of CMS payments between/among the member organizations.

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Service Area Expansion Applications are for:
•
•

Existing MAO contractors who are seeking to expand the service area of an existing contract
number.
Existing MAO contractors who are seeking to expand the service area of an existing SNP.

Note: Service Area Expansion applications will require Health Service Delivery (HSD) Tables
for the entire network not just the counties that an applicant is proposing to expand into with the
SAE request.

2.8

Chart of Required Attestations by Type of Applicant

This chart (Chart 1) describes the required attestations that must be completed for each type of
application and applicant. The purpose of this chart is to provide the applicant with a summary of
the attestation topics. First, the applicant must determine if the application will be an initial or
service area expansion type. Then the applicant must select the type of MA product it will
provide. The corresponding location of each attestation is provided under the column labeled
“Section #,” which corresponds to this application package.
Chart 1 - Required Attestations by Type of Application
Attestation Topic

Section #

Initial Applicants

Service Area Expansion

CCP

PFFS

RPPO

MSA

CCP

PFFS

RPPO

MSA

Experience and Organizational History

3.1

Administrative Management

3.2

State Licensure

3.3

Program Integrity

3.4

Compliance Plan

3.5

Key Management Staff

3.6

Fiscal Soundness

3.7

Service Area

3.8

CMS Provider Participation Contracts &
Agreements

3.9

Contracts for Administrative & Management
Services

3.10

Health Services Management & Delivery

3.11

Quality Improvement Program

3.12

Marketing

3.13

Eligibility, Enrollment, and Disenrollment,

3.14

Working Aged Membership

3.15

Claims

3.16

Communications between MAO and CMS

3.17

Grievances

3.18

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Attestation Topic

Section #

Initial Applicants

Service Area Expansion

CCP

PFFS

RPPO

MSA

CCP

PFFS

RPPO

MSA

Appeals

3.19

Health Insurance Portability and
Accountability Act of 1996 (HIPPA)

3.20

Continuation Area

3.21

Part C Application Certification

3.22

RPPO Essential Hospital

3.23

Access to Services

3.24

Claims Processing

3.25

Payment Provisions

3.26

General Administration/Management

3.27

Past Performance

3.28

X
X

*Indicates applicants with a network

Indicates that applicants are not required to complete attestations but must upload selected information, as

required, in HPMS system.

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2.9

Health Services Delivery (HSD) Tables Instructions

Applicants are required to demonstrate network adequacy through the submission of
HSD Tables. Detailed instructions on how to complete each of the required HSD Tables
are available in a separate file along with the HSD Table templates. The HSD instructions
and table templates are available in the MA Download file in HPMS.
As part of the application module in HPMS, CMS will be providing applicants with an
automated tool for submitting network information via HSD tables. The tables will then
be reviewed automatically against default adequacy measures for each required provider
type in each county. This process will permit applicants to determine if they have
achieved network adequacy before finalizing their application. Further, CMS will make
these default values known prior to the opening of the application module. As such,
applicants will see the values (providers and facilities of each required type in each
county) that CMS requires before the application module opens. Applicants who believe
that CMS default values for a given provider type in a given county are not in line with
local patterns of care may seek an exception, in which case the applicant will submit
required information to support the exception request(s). The HSD exception review will
occur manually by a CMS reviewer as it has in the past. Applicants who submit HSD
tables that 'clear' CMS's default values will still be required to submit signed contracts
and other documents that demonstrate the accuracy of the HSD table submissions.
Applicants may still be determined to have network deficiencies even if they 'pass' the
automated review.
CMS will be providing training to applicants on the automated system, the HSD
tables, and the default values for determining network adequacy after the application
module opens, and expects to annually post the default values for determining network
adequacy in the Fall of each year.
Application forms and tables associated with the applications are available in separate
Microsoft Word or Excel files that are available at:
http://www.cms.gov/MedicareAdvantageApps/. Microsoft Word files located on the
CMS web site are posted in a .zip format and can also be found in the MA Download file
in HPMS.
Applicants must submit separate completed copies of each table template for each
area/region or county that the applicant is requesting. Specific instructions on how to
complete and submit each table will be outlined in the 2017 HPMS User Guide for the
Part C Application.

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2.10

Document (Upload) Submission Instructions

MA applicants must include their assigned H number in the file name of all submitted
documents. Medicare Cost Plan Service Area Expansion applicants should use their
existing H number in the file name of all submitted documents. Applicants are
encouraged to be descriptive in naming all files. If the applicant is required to provide
multiple versions of the same document, the applicant should insert a number, letter, or
even the state name at the end of each file name for easy identification (see the
Application Readme.file).

2.11

MA Part D (MA-PD) Prescription Drug Benefit Instructions

The Part D Application for MA-PD applicants is an abbreviated version of the
application used by stand-alone Prescription Drug Plan (PDPs), as the regulation allows
CMS to waive provisions that are duplicative of MA requirements or where a waiver
would facilitate the coordination of Part C and Part D benefits. Further, the Part D
Application for MA-PD applicants includes a mechanism for applicants to request CMS
approval of waivers for specific Part D requirements under the authority of 42 CFR
423.458(b)(2). The Part D Application for MA-PD applicants can be found at:
http://www.cms.gov/PrescriptionDrugCovContra/04_RxContracting_ApplicationGuidanc
e.asp#TopOfPage. Specific instructions to guide MA-PD applicants in applying to offer
Part D benefits during 2017 are provided in the Part D Application for MA-PD applicants
and must be followed.
Note: Failure to file the required Part D Application for MA-PD applicants will render
the MA-PD Application incomplete and could result in the denial of this application.
Failure to submit supporting documentation consistent with these instructions may delay
the review by CMS and may result in the applicant receiving a Notice of Intent to Deny
(NOID) or a Notice of Denial.

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3 ATTESTATIONS
3.1

Experience & Organization History

The purpose of this section is to allow applicants to submit information describing their
experience and organizational history. A description of the MAO’s structure of
ownership, subsidiaries, and business affiliations will enable CMS to more fully
understand additional factors that contribute to the management and operation of MA
plans.
An organization must meet minimum enrollment requirements in order to hold a
Medicare Advantage contract with CMS (see 42 CFR 422.514). The minimum
enrollment requirement is an indicator that the organization applying for a Medicare
Advantage contract is able to handle risk and capitated payments. CMS expects that an
organization is able to effectively manage a health care delivery system including the
enrollment and disenrollment of members and the timely payment of claims, provide
quality assurances, and have systems to handle grievances and appeals.
CMS recognizes that new applicants may believe they are capable of administering and
managing an MA contract although they do not meet the minimum enrollment requirements.
CMS also recognizes that there may be reasonable factors, such as specific populations
served or geographic location that might result in a plan having low enrollment. For
example, SNPs may legitimately have low enrollment because of their focus on a subset of
enrollees with certain medical conditions. Such organizations and new applicants may
submit a request to waive the enrollment requirements.

The following attestations were developed to implement the regulations of 42 CFR
422.502(b), d 422.503(b) and 422.514.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: EXPERIENCE &
ORGANIZATIONAL HISTORY

YES

N/A

1. Is the applicant applying to be the same type of
organization as indicated on the applicants NOIA?
The applicant may verify its organization type by
looking at the Contract Management Basic page. If
the type of organization the applicants organization
intends to offer has changed, do not complete this
application. Send an email by going to
https://dmao.lmi.org/ and clicking on the MA
Applications tab. Please note: this is a webpage,

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not an email address. Please indicate the pending
contract number and the type of organization for
which the applicant is now seeking to apply in the
email.
2. The applicant attests that it has at least 5,000
individuals enrolled for the purpose of receiving
health benefits from the organization; or it has at
least 1,500 individuals enrolled for purposes of
receiving health benefits from the organization and
the organization primarily serves individuals
residing outside of urbanized areas as defined in
§412.62(f)). If the applicant attests Yes to the above
no upload is required. If the applicant attests No,
the applicant must submit a Minimum Enrollment
Waiver Request by uploading the Minimum
Enrollment Waiver Request Upload Document and
any supporting documentation.
Note: The applicant may count members enrolled
in other risk based health insurance products
offered by the organization (e.g., commercial,
Medicaid).
Note: CMS will provide any Minimum Enrollment
Waiver review related deficiencies to applicants in
the Notice of Intent to Deny.
B. In HPMS, upload the History/Structure/Organizational Charts. This is a brief
summary of the applicant’s history, structure and ownership. Include organizational
charts to show the structure including ownership, subsidiaries, and business
affiliations.
C. In HPMS, upload a Minimum Enrollment Waiver Request Upload Document and any
supporting documentation if you attested “No” to question 3.1.2.

3.2

Administrative Management

The purpose of the administrative management attestations is to ensure that MAOs have
the appropriate resources and structures available to effectively and efficiently manage
administrative issues associated with Medicare beneficiaries. CMS requires that MA
plans have sufficient personnel and systems to organize, implement, control, and evaluate
financial and marketing activities, oversee quality assurance, and manage the
administrative aspects of the organization. The following attestations were developed to
implement the regulations of 42 CFR 422.503(b)(4)(ii) and 422.506(a)(4)(a).

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A. In HPMS, complete the table below:
RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: ADMINISTRATIVE
MANAGEMENT

YES

1. A contract of the applicant has been non-renewed or
terminated within the past 2 years.
• If “Yes”, the applicant must submit the Two Year
Prohibition Waiver Request Upload document via HPMS.
2. The applicant currently operates a CMS Cost contract
under Section 1876 of the SSA in some or all of the
intended service area of this application.
3. The applicant offers health plan products to a commercial
population.
4. The applicant currently has administrative and
management arrangements that feature a policy making
body (e.g., board of directors) exercising oversight and
control over the organization’s policies and personnel (e.g.,
human resources) to ensure that management actions are in
the best interest of the organization and its enrollees.
5. The applicant currently has administrative and
management agreements that feature personnel systems
sufficient for the organization to organize, implement,
control and evaluate financial and marketing activities,
quality assurance, and the administrative aspects of the
organization.
6. The applicant currently has administrative and
management agreements that feature an executive manager
/ chief executive officer whose appointment and removal
are under the control of the policy-making body.
B. In HPMS, upload the Two Year Prohibition Waiver Request Upload document if the
applicant answers “Yes” to the corresponding question above.

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3.3

State Licensure

To ensure that all MAOs operate in compliance with state and federal regulations, CMS
requires MAOs to be licensed under state law. This requirement will ensure that MAOs
adhere to state regulations aimed at protecting Medicare beneficiaries. The following
attestations were developed based on the regulations at 42 CFR 422.400.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: STATE LICENSURE

YES

N/A

1. Applicant is licensed under state law as a riskbearing entity eligible to offer health insurance or
health benefits coverage in each state in which the
applicant proposes to offer the managed care
product. In addition, the scope of the license or
authority allows the applicant to offer the type of
managed care product that it intends to offer in
the state or states.
•

If “Yes”, upload in HPMS an executed
copy of a state license certificate and the
CMS State Certification Form for each
state being requested.

•

Note: Applicant must meet and document
all applicable licensure and certification
requirements no later than the applicants
final upload opportunity, in response to
CMS’ NOID communication.
2. Applicant is a Joint Enterprise.
•

If “Yes”, upload the copy of the Joint
Enterprise agreement executed by the statelicensed entities.
3. Applicant is licensed under state law as a riskbearing entity eligible to offer health insurance or
health benefits in at least one state in the RPPO
region, and if not licensed in all states, the
applicant has applied for additional state licenses
for the remaining states in the RPPO regions. In
addition, the scope of the license or authority
allows the applicant to offer the type of MA plan
that it intends to offer in the state or states.

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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: STATE LICENSURE
•

If “Yes”, upload in HPMS an executed
copy of a state license certificate and the
CMS State Certification Form for each
state being requested or the RPPO State
Licensure Attestation for MA RPPOs and a
complete RPPO State Licensure Table for
each MA Region, if applicant is not
licensed in all states within the region.

•

YES

N/A

•

Note: Joint Enterprise applicants must
submit state certification forms for each
member of the enterprise.
4. Applicant is currently under some type of
supervision, corrective action plan or special
monitoring by the state licensing authority in any
state. This means that the applicant has to
disclose actions in any state against the legal
entity which filed the application.
•

If “Yes”, upload in HPMS an explanation
of the specific actions taken by the state
licensing authority.
5. Applicant conducts business as "doing business
as" (d/b/a) or uses a name different than the name
shown on its Articles of Incorporation.
•

If “Yes”, upload in HPMS a copy of the
state approval for the d/b/a.
6. For states or territories whose license(s) renew
after the first Monday in June, applicant agrees to
(1) upload, in addition to the current license, a
copy of its completed license renewal application
or other documentation (e.g., invoice from
payment of renewal fee, invoice from prior year
for licenses which renew late in the calendar year

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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: STATE LICENSURE

YES

N/A

to show when and how they renewed the previous
year; emails between the applicant and the State
verifying the process is being followed) to show
that the renewal process is being completed in a
timely manner, and (2) electronically send a copy
of the renewed license to the CMS Regional
Office Account Manager promptly upon issuance
and no later than 12/31/16.
•

Note: If the applicant does not have a
license that renews after the first Monday
in June, then the applicant should respond
"N/A".

B. In HPMS, upload an executed copy of the State License Certificate and the CMS
State Certification Form for each state being requested, if applicant answers “Yes” to
the corresponding question above.
C. In HPMS, upload a copy of the current State Licensure Certificate and a copy of the
completed license renewal application or other documentation (e.g., invoice from
payment of renewal fee, invoice from prior year for licenses which renew late in the
calendar year to show when and how they renewed the previous year; emails between
the applicant and the State verifying the process is being followed), if applicant
answers “Yes” to the statement regarding the current license renewal date falling after
the first Monday in June.
D. In HPMS, upload a copy of the Joint Enterprise agreement executed by the statelicensed entities, if applicant answers “Yes” to the corresponding question above.
E. In HPMS, upload executed copy of the RPPO State Licensure Attestation for MA
RPPOs and a complete RPPO State Licensure Table for each MA Region, if applicant
is not licensed in all states within the region and answers “Yes” to the corresponding
question above.
F. In HPMS, upload the State Corrective Plans / State Monitoring Explanation (as
applicable), if applicant answers “Yes” to the corresponding question above.
G. In HPMS, upload the State Approval for d/b/a, if applicant answers “Yes” to the
corresponding question above.
Note: Federal Preemption Authority – The MMA amended section 1856(b)(3) of the SSA
and significantly broadened the scope of Federal preemption of state law. The revised

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MA regulations’ at 42 CFR 422.402 states that MA standards supersede state law or
regulation with respect to MA plans other than licensing laws and laws relating to plan
solvency.
3.4

Program Integrity

A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: BUSINESS INTEGRITY
1. Applicant, applicant staff, and its affiliated companies,
subsidiaries or subcontractors (first tier, downstream, and
related entities), and subcontractor staff agree that they
are bound by 2 CFR 376 and attest that they are not
excluded by the Department of Health and Human
Services Office of the Inspector General or by the General
Services Administration exclusion lists. Please note that
this includes any member of the board of directors and
any key management or executive staff or any major
stockholder.

3.5

YES

Compliance Plan

The purpose of a compliance plan is to ensure that the MAO, including but not limited to
compliance officers, organization employees, contractors, managers and directors, abides
by all federal and state regulations, standards, and guidelines. To accomplish this
objective, the plan should include the following components: training/education,
communication plan, disciplinary standards, internal monitoring/auditing procedures, etc.
The following information was developed to implement the regulations of 42 CFR
422.503(b)(4)(vi).
A. In HPMS, complete the table below:
RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: COMPLIANCE PLAN

YES

1. Applicant has a compliance plan that is ready for
implementation.
B. If you are applying as a MA-only non-network organization (i.e. PFFS or MSA), in
HPMS, upload a copy of the applicants Medicare Part C Compliance Plan in an
Adobe.pdf format.

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Note: The Part C compliance plan must be developed in accordance with 42 CFR
422.503(b)(4)(vi). The compliance plan must demonstrate that all seven elements
in the regulation and in Chapter 21 of the Medicare Managed Care Manual
(MMCM) are implemented and specific to the issues and challenges presented by
the Part C program.
C. If you are applying as a MA-only non-network organization (i.e. PFFS or MSA) in
HPMS, complete and upload the Crosswalk for Part C Compliance Plan document.
3.6

Key Management Staff

The purpose of this section is to ensure that qualified staff is available to support the
MAO. An organizational chart showing the relationships of the various departments will
demonstrate that the MAO meets this requirement. The following attestations were
developed to implement the regulations of 42 CFR 422.503(b)(4)(ii).
In HPMS, complete the table below:
RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: KEY STAFF MANAGEMENT

YES

1. Applicant attests that all staff is qualified to perform their
respective duties.
2. Applicant attests that they have completed the Contact
Management/Information/Data page in HPMS.

B. In HPMS, upload organizational charts showing the relationship of various
departments.
3.7

Fiscal Soundness

A. In HPMS, complete the table below:

YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: FISCAL SOUNDNESS

YES

1. Applicant maintains a fiscally sound operation and maintains

a positive net worth (Total Assets exceed Total Liabilities).
B. In HPMS, upload the most recent independently audited financial statements that are
available and the most recent Quarterly NAIC Health Blank or other form of
quarterly financials if the NAIC Health Blank is not required by your state. CMS

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reserves the right to request additional financial information as it sees fit to determine
if the applicant is maintaining a fiscally sound operation.
Note: If the applicant was not in business in previous years, , it must electronically
upload the financial information it submitted to the state at the time the state licensure
was requested. If the applicant has a parent company, it must submit the parent’s most
recent independently audited financial statements and the most recent Quarterly
NAIC Health Blank or other form of quarterly financials if the NAIC Health Blank is
not required by your state.
3.8

Service Area

The purpose of the service area attestation is to clearly define which areas will be served
by the MAO. A service area for local MA plans is defined as a geographic area composed
of a county or multiple counties, while a service area for MA regional plans is a region
approved by CMS. The following attestation was developed to implement the regulations
of 42 CFR 422.2.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: SERVICE AREA

YES

1. Applicant meets the county integrity rule as outlined in
Chapter 4 of the MMCM and will serve the entire county.
•

If "No", complete CMS’ Partial County Justification
document.

Note: Applicant may only designate or request a partial county service area during the
initial application submission.
B. In HPMS, on the Contract Management/Contract Service Area/Service Area Data
page, enter the state and county information for the area the applicant proposes to
serve. Applicants that do not meet the county integrity rule and applying for a
partial county must complete CMS’ Partial County Justification document.
3.9

CMS Provider Participation Contracts & Agreements

This section contains attestations that address the requirements of 42 CFR 422.504,
which require that MAOs have oversight for contractors, subcontractors, and other
entities. The intent of the regulations is to ensure services provided by these parties meet

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contractual obligations, laws, regulations, and CMS instructions. The MAO is held
responsible for the compliance of its providers and subcontractors with all contractual,
legal, regulatory, and operational obligations. Beneficiaries shall be protected from
payment or fees that are the obligation of the MAO. Further guidance is provided in
Chapter 11 of the MMCM.

A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: PROVIDER CONTRACTS AND
AGREEMENTS

YES

1. Applicant agrees to comply with all applicable provider
requirements in subpart E of this part, including provider
certification requirements, anti-discrimination requirements,
provider participation and consultation requirements, the
prohibition on interference with provider advice, limits on
provider indemnification, rules governing payments to
providers, and limits on physician incentive plans. 42 CFR
422.504(a)(6)
2. Applicant agrees that all provider and supplier contracts or
agreements contain the required contract provisions that are
described in the Medicare Managed Care Manual, and CMS
regulations at 42 CFR 422.504.
3. Applicant has or will have executed provider, facility, and
supplier contracts in place to demonstrate adequate access and
availability of covered services, in accordance with CMS
established standards throughout the requested service area.
4. Applicant agrees to have all provider contracts and/or
agreements available upon CMS request.
5. Applicant has executed “CMS Medicare Advantage Contract
Amendments” with ALL of its contracted providers and
facilities (first tier contracts and downstream contracts at
every level).
6. Applicant has executed “CMS Medicare Advantage Contract
Amendments” with SOME of its contracted providers and
facilities (first tier contracts and downstream contracts at
every level).
7. Applicant has executed “CMS Medicare Advantage Contract
Amendments” with NONE of its contracted providers and
facilities (first tier contracts and downstream contracts at
every level).

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3.10 Contracts for Administrative & Management Services
This section describes the requirements the applicant must demonstrate to ensure that any
contracts for administrative/management services comply with the requirements of all
Medicare laws, regulations, and CMS instructions in accordance with 42 CFR
422.504(i)(4)(v). Further guidance is provided in Chapter 11.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: CONTRACTS FOR ADMINISTRATIVE
MANAGEMENT SERVICES

YES

1. Applicant has contracts with related entities, contractors and
subcontractors (first tier, downstream, and related entities) to
perform, implement or operate any aspect of MA operations
for the MA contract.
2. Applicant verifies that it has entered accurate information
related to the delegated entities and their functions in the
HPMS Delegated Business Function Table in HPMS.
3. Applicant agrees that as it implements, acquires, or upgrades
health information technology (HIT) systems, where
available, the HIT systems and products will meet standards
and implementation specifications adopted under section
3004 of the Public Health Services Act as added by section
13101 of the American Recovery and Reinvestment Act of
2009, P.L. 111-5.
4. Applicant agrees that all contracts for administrative and
management services contain the required contract provisions
that are described in the MMCM, and the CMS contract
requirements in accordance with 42 CFR 422.504.
B. In HPMS, enter the Delegated Business Functions under the Part C Data Link.
Note: If the applicant plans to delegate a specific function but cannot at this time
name the entity with which the applicant will contract, enter "Not Yet Determined" so
that CMS is aware of the applicants plans to delegate that function. If the applicant
delegates a particular function to a number of different entities (e.g., claims
processing to multiple medical groups), then list the five most significant entities for
each delegated business function identified and in the list for the sixth, enter
"Multiple Additional Entities".

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3.11 Health Services Management & Delivery
The purpose of the Health Service Management and Delivery attestations is to ensure that
all applicants deliver timely and accessible health services for Medicare beneficiaries.
CMS recognizes the importance of ensuring continuity of care and developing policies
for medical necessity determinations. Therefore, MAOs will be required to select,
evaluate, and credential providers that meet CMS’ standards, in addition to ensuring the
availability of a range of providers necessary to meet the health care needs of Medicare
beneficiaries. The following attestations were developed to implement the regulations of
42 CFR 422.112, and 422.114.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: HEALTH SERVICES
MANAGEMENT AND DELIVERY

YES

1. Applicant agrees to establish, maintain, and monitor the
performance of a comprehensive network of providers to
ensure sufficient access to Medicare covered services as
well as supplemental services offered by the MAO in
accordance with written policies, procedures, and
standards for participation established by the MAO.
Participation status will be revalidated at appropriate
intervals as required by CMS regulations and guidelines.
2. Applicant has executed written agreements with providers
(first tier, downstream, or other entity instruments)
structured in compliance with CMS regulations and
guidelines.
3. Applicant, through its contracted or deemed participating
provider network, along with other specialists outside the
network, community resources or social services within the
MAO’s service area, agrees to provide ongoing primary
care and specialty care as needed and guarantee the
continuity of care and the integration of services through:
a. Prompt, convenient, and appropriate access to
covered services by enrollees 24 hours a day, 7
days a week;
b. The coordination of the individual care needs of
enrollees in accordance with policies and
procedures as established by the applicant;
c. Enrollee involvement in decisions regarding
treatment, proper education on treatment options,
and the coordination of follow-up care;

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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: HEALTH SERVICES
MANAGEMENT AND DELIVERY

YES

d. Effectively addressing and overcoming barriers to
enrollee compliance with prescribed treatments and
regimens; and
e. Addressing diverse patient populations in a
culturally competent manner.
Applicant agrees to establish policies, procedures, and
standards that:
a. Ensure and facilitate the availability, convenient
and timely access to all Medicare covered services
as well as any supplemental services offered by the
MAO;
b. Ensure access to medically necessary care and the
development of medically necessary individualized
care plans for enrollees;
c. Promptly and efficiently coordinate and facilitate
access to clinical information by all providers
involved in delivering the individualized care plan
of the enrollee;
d. Communicate and enforce compliance by providers
with medical necessity determinations; and
e. Do not discriminate against Medicare enrollees.
Applicant has verified that contracted providers included
in the MA Facility Table are Medicare certified and the
applicant certifies that it will only contract with Medicare
certified providers in the future.
Applicant agrees to provide all services covered by
Medicare Part A and Part B and to comply with CMS
national coverage determinations, general coverage
guidelines included in Original Medicare manuals and
instructions, and the written coverage decisions of local
Medicare contractors with jurisdiction for claims in the
geographic service area covered by the MAO.
Applicant agrees that it will provide all medically
necessary transplant services to its Medicare enrollees in
full agreement with the CMS guidance found in Chapter
4, Benefits and Beneficiary Protections, Medicare
Managed Care Manual (10.11.)
Applicants offering coordinated care plans agree that
when providing transplant services at clinical locations
outside of the plan’s service area, in accordance with the

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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: HEALTH SERVICES
MANAGEMENT AND DELIVERY

YES

provisions of Chapter 4, Benefits and Beneficiary
Protections, Medicare Managed Care Manual at 10.11, the
applicant will arrange for and pay for reasonable
accommodation and transportation for the enrollee/patient
and a companion.
B. In HPMS, upload the following completed HSD tables:
•
•

MA Provider Table
MA Facility Table

3.12 Quality Improvement Program
The purpose of this section is to ensure that all applicants have a Quality Improvement
Program (QI) Program. A QI Program will ensure that MAOs have the infrastructure
available to increase quality, performance, and efficiency of the program on an on-going
basis, and will help identify actual or potential triggers or activities for the purpose of
mitigating risk and enhancing patient safety. This process will provide MAOs an
opportunity to resolve identified areas of concern. The following attestations were
developed to implement the regulations of 42 CFR 422.152 and Chapter 5 of the
MMCM.
A. In HPMS, complete the table below:
Attestation

Response

MAO/PPO/RPPO/LPPO Quality Improvement Program Plan
Requirements.
Respond “Yes” or “No” to the following statements
1. Applicant has an ongoing QI Program that is ready for
implementation. 42 CFR 422.152(a)

YES

2. Applicant agrees to provide CMS with all documents
pertaining to the QI Program upon request.
3. Applicant has mechanisms that encourage its providers to
participate in CMS and HHS Quality Improvement Initiatives.
4. Applicant has written policy and procedures that reflect
current standards of medical practice.

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Attestation

Response

MAO/PPO/RPPO/LPPO Quality Improvement Program Plan
Requirements.
Respond “Yes” or “No” to the following statements
5. Applicant has a health information system to collect, analyze,
and integrate valid and reliable data to conduct its overall
quality improvement program.
6. Applicant has a system to maintain health information for
CMS review as requested.

YES

7. Applicant has a system to ensure that data collected, analyzed,
and reported are accurate and complete.
8. Applicant manages their health information system to comply
with HIPPA and privacy laws, and professional standards of
health information management.
9. Applicant has a mechanism to detect both underutilization
and overutilization of services.
10. Applicant takes action to correct problems identified through
its quality improvement activities as well as complaints from
beneficiaries and providers.
11. Applicant identifies beneficiaries with multiple or severe
chronic conditions that would benefit from participation in a
chronic care improvement program.
12. Applicant has a mechanism to monitor beneficiaries that
participate in a chronic care improvement program.
13. Applicant conducts one or more quality improvement projects
on clinical or non-clinical areas.
14. For each quality improvement project, applicant measures
performance, applies interventions to improve performance,
evaluates performance, and conducts periodic follow-up to
ensure the effectiveness of the intervention.
15. For each quality improvement project, applicant evaluates
performance using quality indicators that are objective,
clearly defined, and correspond to measurable outcomes such
as changes in health status, functional status, and beneficiary
satisfaction.
16. Applicant evaluates the continuity and coordination of care
furnished to enrollees.
17. Applicant measures performance using standard measures
(HEDIS, HOS, CAHPS) required by CMS and report its
performance to CMS.

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Attestation

Response

MAO/PPO/RPPO/LPPO Quality Improvement Program Plan
Requirements.
Respond “Yes” or “No” to the following statements
18. Applicant conducts a formal evaluation at least annually, on
the impact and effectiveness of the MAOs overall quality
improvement program.

YES

3.13 Marketing
The purpose of the Medicare Operations Marketing attestations is to ensure that all
applicants comply with all CMS regulations and guidance including, but not limited to,
the Managed Care Manual, user guides, the annual Call Letter, and communications
through HPMS. Medicare Advantage MA and Cost Plans are required to provide
comprehensive information in written form and via a call center to ensure that Medicare
beneficiaries understand the features of their MA plans. The following attestations were
developed to implement the regulations of 42 CFR 422.2260 through 422.2276.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: MEDICARE OPERATIONS –
MARKETING

YES

1. Applicant complies with marketing guidelines and approval
procedures that are contained in Chapter 3 of the Medicare
Managed Care Manual and posted on the
http://www.cms.gov/Medicare/HealthPlans/ManagedCareMarketing/FinalPartCMarketingGuidelines.
html website, including the requirements of the File and Use
Certification process.
2. Applicant agrees to make available to beneficiaries those
marketing materials, notices, and other standardized letters and
forms that comply with CMS marketing requirements.
3. Annually and at the time of enrollment, the applicant agrees to
provide enrollees information about the following features, as
described in the marketing guidelines:
• Enrollment Instruction Forms (Enrollment Kit-at the time of
enrollment)
• Beneficiary Procedural Rights
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N/A

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: MEDICARE OPERATIONS –
MARKETING

YES

•
•

Potential for Contract Termination
Summary of Benefits (Enrollment Kit-at the time of
enrollment and upon request)
• Annual Notice of Change (ANOC)/Evidence of Coverage
(EOC)
• Premiums
• Service Area
• Provider Directory
• Plan ratings information
• Membership ID Card (required at the time of enrollment and
as needed or required by plan sponsor post-enrollment)
4. The applicant agrees to verify the identity of the caller as a
beneficiary or validate the authority of the caller to act on behalf
of the beneficiary prior to discussing any Personal Health
Information as required under HIPAA.
5. Applicant agrees to maintain a toll-free customer service call
center that provides customer telephone service to current and
prospective enrollees in compliance with CMS standards. This
means the applicant complies with the following:
•

Call center operates during normal business hours, seven
days a week from 8:00 AM to 8:00 PM for all time zones of
the applicants respective service areas.

•

During these hours, current and prospective enrollees must
be able to speak with a live customer service representative.
Plans/Part D Sponsors may use alternative technologies on
Thanksgiving and Christmas Day.

•

From February 15 to September 30, Plans/Part D Sponsors
may use alternative technologies on Saturdays, Sundays, and
Federal holidays.
If a beneficiary is required to leave a message in voice mail
box due to the utilization of an automated phone system, the
applicant ensures that a return call to a beneficiary is made
in a timely manner, but no later than one business day after
receipt of the message.
Call center must provide interpreter service to all nonEnglish speaking, or limited English proficient (LEP)

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N/A

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: MEDICARE OPERATIONS –
MARKETING

YES

beneficiaries.
6. Applicant agrees to provide Toll Free TTY or TDD numbers for
all hearing impaired beneficiaries in conjunction with all other
phone numbers utilized for call center activity.
7. Applicant agrees to make the marketing materials specified by
CMS available in any language that is the primary language of
at least 5% of a plan sponsor’s benefit package service area.
NOTE: Plan sponsors operating in service areas that do not meet
the 5% threshold are not required to produce any translated
materials.
8. The applicant agrees to operate a toll-free call center to respond
to physicians and other providers requesting exceptions,
coverage determinations, prior authorizations, and beneficiary
appeals. This means the applicant complies with the following:
•

The call center must be available to callers from 8:00 am to
6:00 pm, consistent with the local time zone of each of the
applicant’s respective service areas, Monday through Friday,
at a minimum.

•

An alternative technology, such as an interactive voice
response system or voice mail, may be used outside of these
hours, ensuring that information may be submitted for action
by the applicant 24 hours a day, 7 days a week.
9. The applicant agrees to comply with CMS performance
requirements for all call centers including:
•

The average hold time for a beneficiary to reach a customer
service representative is two minutes or less.

•

Eighty percent (80%) of all incoming calls are answered
within 30 seconds.

•

The disconnect rate for all incoming customer calls does not
exceed 5%.

•

Acknowledgement of all calls received via an alternative
technology within one business day.

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N/A

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: MEDICARE OPERATIONS –
MARKETING

YES

10. Applicant agrees to guarantee that all call center staff are
effectively trained to provide thorough, accurate, and specific
information on all MA product offerings, including applicable
eligibility requirements, cost sharing amount, premiums, and
provider networks.
11. Applicant agrees to implement and maintain an explicit process
for handling customer complaints.
12. Applicant agrees to develop and maintain an Internet Web site
providing thorough, accurate, and specific information as
specified by CMS.
13. Applicant agrees to provide initial and renewal compensation to
a broker or agent for the sale of a Medicare health plan
consistent with CMS requirements.
14. Applicant agrees that brokers and agents selling Medicare
products are trained and tested, annually, on Medicare rules and
regulations and the specifics of the plans they are selling, and
that they pass with a minimum score as specified in CMS
guidance.
3.14 Eligibility, Enrollment, and Disenrollment
This section identifies attestations consistent with the requirements of 42 CFR 422.50
through 422.74, which address the eligibility requirements to enroll in, continue
enrollment in, or disenroll from an MA plan. The intent of these regulations is to ensure
that all MAOs fully comply with the requirements set forth to ensure services adhere to
standard processes and meet contractual obligations, laws, regulations and CMS
instructions.
A. In HPMS, complete the table below:
RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: MEDICARE OPERATIONS
– ELIGIBILITY, ENROLLMENT and DISENROLLMENT
1. Applicant agrees to comply with all CMS regulations and
guidance pertaining to eligibility, enrollment and
disenrollment for MA, including, but not limited to, the
MMCM, user guides, the annual Call Letter, and interim
guidance and other communications distributed via HPMS.

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N/A

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: MEDICARE OPERATIONS
– ELIGIBILITY, ENROLLMENT and DISENROLLMENT
2. Applicant agrees to provide required notices to
beneficiaries, including pre-enrollment and postenrollment materials, consistent with CMS rules,
guidelines, and regulations, including, but not limited to,
the Annual Notice of Change (ANOC) /Summary of
Benefits (SB)/Evidence of Coverage (EOC), Provider
Directories, Enrollment and Disenrollment notices,
Coverage Denials, ID card, and other standardized and/or
mandated notices.
3. Applicant agrees to accept enrollment elections during
valid election periods from all MA eligible Medicare
beneficiaries who reside in the MA service area, as
provided in Chapter 2 of the MMCM.
4. Applicant agrees to accept responsibility for accurately
determining the eligibility of the beneficiary for
enrollment, as described in Chapter 2 of the MMCM.
5. Applicant agrees to accept responsibility for determining
that a valid election period exists, permitting the
beneficiary to request enrollment in the MAO’s product,
and will accept voluntary disenrollments only during
timeframes specified by CMS.
6. Applicant agrees to collect and transmit data elements
specified by CMS for the purposes of enrolling and
disenrolling beneficiaries in accordance with the CMS’
Eligibility, Enrollment and Disenrollment Guidance.
7. Applicant agrees to ensure that enrollee coverage in the
plan begins as of the effective date of enrollment in the
plan, consistent with the detailed procedures described in
the CMS enrollment guidance. Organizations may not
delay enrollment or otherwise withhold benefits while
waiting for successful (i.e., accepted) transactions to/from
MARx.
8. Applicant agrees to develop, operate and maintain viable
systems, processes, and procedures for the timely,
accurate, and valid enrollment and disenrollment of
beneficiaries in the MAO, consistent with all CMS
requirements, guidelines, and regulations.
9. In the event of contract termination, applicant will notify
enrollees of termination and of alternatives for obtaining
other MA coverage, as well as Medicare prescription drug
coverage, in accordance with Part 422 and Part 423
regulations.

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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: MEDICARE OPERATIONS YES
– ELIGIBILITY, ENROLLMENT and DISENROLLMENT
10. Applicant agrees to establish business processes and
communication protocols for the prompt resolution of
urgent issues affecting beneficiaries, such as late changes
in enrollment or co-pay status, in collaboration with CMS.
11. Applicant acknowledges that enrollees can make
enrollment changes, during election periods for which they
are eligible, in the following ways: A) Electing a different
MA plan by submitting an enrollment request to that
MAO, B) Submitting a request for disenrollment to the
MAO in the form and manner prescribed by CMS.
12. Applicant agrees to perform the following functions upon
receipt of an enrollee’s request for voluntary
disenrollment:
• Submit a disenrollment transaction to CMS within
timeframes specified by CMS.
• Provide enrollee with notice to acknowledge
disenrollment request in a format specified by
CMS.
• File and retain disenrollment requests for the period
specified in CMS instructions, and
• In cases where lock-in applies, include in the notice
a statement explaining that
ο The member remains enrolled until the effective
date of disenrollment
ο Until the effective date of disenrollment (except
for urgent and/or emergent care) neither the
MAO nor CMS will pay for services that have
not been provided or arranged for by the MAO
prior to voluntary disenrollment.
13. Applicant will comply with all standards and requirements
regarding involuntary disenrollment of an individual
initiated by the MAO for any circumstances listed below:
• Any monthly plan premiums are not paid on a
timely basis, subject to the grace period for late
payment.
• Individual has engaged in disruptive behavior.
• Individual provides fraudulent information on his
or her election form or permits abuse of his or her
enrollment card.
14. If the applicant disenrolls an individual for the reasons
stated above, applicant agrees to give the individual
required written notice(s) of disenrollment with an
explanation of why the MAO is planning to disenroll the
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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: MEDICARE OPERATIONS YES
– ELIGIBILITY, ENROLLMENT and DISENROLLMENT
individual. Notices and reason must:
• Be provided to the individual before submission of
the disenrollment to CMS.
• Include an explanation of the individual's right to a
hearing under the MAO's grievance procedure.
15. Applicant acknowledges and commits to utilizing HPMS
as the principle tool for submitting and receiving formal
communications related to MAO performance, enrollee
inquiries (CTM), notices and memoranda from CMS staff,
routine reporting, and the fulfillment of other functional
and regulatory responsibilities and requirements, including,
but not limited to, the submission of marketing materials,
applications, attestations, bids, contact information, and
oversight activities.
16. On a monthly basis, applicant agrees to accurately and
thoroughly process and submit the necessary information
to validate enrollment in support of the monthly payment,
as provided under 42 CRF 422 subpart G.

3.15 Working Aged Membership
The purpose of these attestations is to ensure that applicants report all working aged
members to CMS, as well as to identify amounts payable, coordinate benefits to
enrollees, and identify primary Medicare patients. The following attestations were
developed to implement the regulations of 42 CFR 422.108.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: WORKING AGED
MEMBERSHIP

YES

A. Applicant agrees to identify, document, and report to CMS
relevant coverage information for working aged, including:
• Identify payers that are primary to Medicare
• Identify the amounts payable by those payers
• Coordinate the applicant’s benefits or amounts
payable with the benefits or amounts payable by the
primary payers.

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3.16 Claims
The purpose of these attestations is to ensure that the applicant properly dates and
processes all claims, per CMS instructions listed herein. These attestations also provide
the applicant with general guidance on how to appropriately notify beneficiaries of claim
decisions. The following attestations were developed to implement the regulations of 42
CFR 422.504(c) and 42 CFR 422.520(a).
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: CLAIMS

YES

1. Applicant agrees to date stamp all claims as they are
received, whether in paper form or via electronic
submission, in a manner that is acceptable to CMS.
2. Applicant will ensure that all claims are processed
promptly and in accordance with CMS regulations and
guidelines.
3. Applicant agrees to give the beneficiary prompt notice of
acceptance or denial of a claim’s payment in a format
consistent with the appeals and notice requirements stated
in 42 CFR Part 422 Subpart M.
4. Applicant agrees to comply with all applicable standards
and requirements and establish meaningful procedures for
the development and processing of all claims, including
having an effective system for receiving, controlling, and
processing claims actions promptly and correctly.
5. Applicant agrees to use an automated claims system that
demonstrates the ability to accurately and timely pay
contracted and non-contracted providers according to CMS
requirements.

3.17 Communications between MAO and CMS
CMS is committed to ensuring clear communications with MAOs. The purpose of this
section is to ensure that all applicants engage in effective and timely communications
with CMS. Such communications will help improve and support administrative
coordination between CMS and MAOs. The following attestations were developed to
implement the regulations of 42 CFR 422.504(b).

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A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: COMMUNICATIONS

YES

1. Applicant agrees to facilitate the provision of access to and
assignment of User IDs and Passwords for CMS systems
applications for all key functional, operational, and regulatory
staff within the MAO to ensure the timely completion of
required transactions within the CMS systems structure,
including HPMS, MARx and any other online application
with restricted access.
2. Applicant acknowledges and commits to utilizing HPMS as
the principle tool for submitting and receiving formal
communications related to MAO performance, enrollee
inquiries (CTM), notices and memoranda from CMS staff,
routine reporting, and the fulfillment of other functional and
regulatory responsibilities and requirements including, but not
limited to, the submission of marketing materials,
applications, attestations, bids, contact information, and
oversight activities.
3. Applicant agrees to establish connectivity to CMS via the
AT&T Medicare Data Communications Network (MDCN) or
via the Gentran Filesaver.
4. Applicant agrees to submit test enrollment and disenrollment
transmissions.
5. Applicant agrees to submit enrollment, disenrollment and
change transactions to CMS within 7 calendar days to
communicate membership information to CMS each month.
6. Applicant agrees to reconcile MA data to CMS
enrollment/payment reports within 45 days of availability.
7. Applicant agrees to submit enrollment/payment attestation
forms within 45 days of CMS report availability.
8. Applicant agrees to ensure that enrollee coverage in the plan
begins as of the effective date of enrollment in the plan,
consistent with the detailed procedures described in the CMS
enrollment guidance. Organizations may not delay enrollment
or otherwise withhold benefits while waiting for successful
(i.e. accepted) transactions to/from MARx.
3.18 Grievances
CMS is committed to guaranteeing that Medicare beneficiaries have access to, education
on, decision making authority for, and are in receipt of quality health care. To ensure that
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beneficiaries have the ability to express their concerns and that those concerns are acted
on promptly, MAOs must have a grievance program structured in compliance with CMS
regulations and guidelines. In this capacity, a grievance is defined as any complaint or
dispute, other than one involving an organization determination, expressing
dissatisfaction with the manner in which a Medicare health plan or delegated entity
provides health care services, regardless of whether any remedial action can be taken.
Enrollees or their representatives may make the complaint or dispute, either orally or in
writing, to a Medicare health plan, provider, or facility. An expedited grievance may also
include a complaint that a Medicare health plan refused to expedite an organization
determination or reconsideration, or invoked an extension to an organization
determination or reconsideration period. In addition, grievances may include complaints
regarding the timeliness, appropriateness, access to, and/or setting of a provided health
service, procedure, or item. Grievance issues may also include complaints that a covered
health service procedure or item during a course of treatment did not meet accepted
standards for delivery of health care.
The following attestations were developed to implement the regulations of 42 CFR
422.561and 42 CFR 422.564.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: GRIEVANCES

YES

1. Applicant agrees to comply with all applicable regulations,
standards, guidelines and/or requirements, establishing
meaningful processes, procedures, and effectively training the
relevant staff and subcontractors (first tier, downstream and
related entities), to accept, identify, track, record, resolve, and
report enrollee grievances within the timelines established by
CMS. An accessible and auditable record of all grievances
received on behalf of the MAO, both oral and written, will be
maintained to include, at a minimum: the receipt date, mode
of submission (i.e. fax, telephone, letter, e-mail, etc.),
originator of grievance (person or entity), enrollee affected,
subject, final disposition, and date of enrollee notification of
the disposition.
2. Applicant agrees to advise all MA enrollees of the definition
of a grievance, their rights, the relevant processes, and the
timelines associated with the submission and resolution of
grievances to the MAO and its subcontractors (first tier,
downstream and related entities) through the provision of
information and outreach materials.

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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: GRIEVANCES

YES

3. Applicant agrees to accept grievances from enrollees at least
by telephone and in writing (including fax).
4. Applicant agrees to inform enrollees of the complaint process
that is available to the enrollee under the Quality
Improvement Organization (QIO) process.

3.19 Appeals
CMS recognizes the importance of the appeals process for both MAOs and Medicare
beneficiaries. The purpose of this section is to ensure that beneficiaries have the
opportunity to submit an appeal. Accordingly, MAOs must have an appeals process
structured in compliance with CMS regulations and guidelines. An appeal is defined as
any of the procedures that deal with the review of adverse organization determinations on
the health care services the enrollee believes he or she is entitled to receive, including
delay in providing, arranging for, or approving the health care services (such that a delay
would adversely affect the health of the enrollee), or on any amounts the enrollee must
pay for a service, as defined under 422.566(b). These procedures include reconsiderations
by the MAO, and if necessary, an independent review entity, hearings before an
Administrative Law Judge (ALJ), review by the Medicare Appeals Council (MAC), and
judicial review. The following attestations were developed to implement the regulations
of 42 CFR 422.561.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: APPEALS

YES

1. Applicant agrees to adopt policies and procedures for
beneficiary organizational determinations, exceptions, and
appeals consistent with 42 CFR 422, subpart M.
2. Applicant agrees to maintain a process for completing
reconsiderations that includes a written description of how
its organization will provide for standard reconsideration
requests and expedited reconsideration requests, where each
are applicable, and how its organization will comply with
such description. Such policies and procedures will be

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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: APPEALS

YES

made available to CMS on request.
3. Applicant agrees to ensure that the reconsideration policy
complies with CMS regulatory timelines for processing
standard and expedited reconsideration requests as
expeditiously as the enrollee's health condition requires.
4. Applicant agrees to ensure that the reconsideration policy
complies with CMS requirements as to assigning the
appropriate person or persons to conduct requested
reconsiderations.
5. Applicant agrees to ensure that the reconsideration policy
complies with CMS timeframes for forwarding
reconsideration request cases to CMS' independent review
entity (IRE) where the applicant affirms an organization
determination adverse to the member or as otherwise
required under CMS policy.
6. Applicant agrees to ensure that its reconsideration policy
complies with CMS required timelines regarding applicants
effectuation through payment, service authorization or
service provision in cases where the organization's
determinations are reversed in whole or part (by itself, the
IRE, or some higher level of appeal) in favor of the
member.
7. Applicant agrees to make its enrollees aware of the
organization determination, reconsideration, and appeals
process through information provided in the Evidence of
Coverage and outreach materials.
8. Applicant agrees to establish and maintain a process
designed to track and address in a timely manner all
organization determinations and reconsideration requests,
including those transferred to the IRE, an Administrative
Law Judge (ALJ) or some higher level of appeal, received
both orally and in writing, that includes, at a minimum:
• Date of receipt
• Date of any notification
• Disposition of request
• Date of disposition
9. Applicant agrees to make available to CMS, upon CMS
request, organization determination and reconsideration
records.

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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: APPEALS

YES

10. Applicant agrees to not restrict the number of
reconsideration requests submitted by or on behalf of a
member.

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3.20 Health Insurance Portability and Accountability Act of 1996 (HIPAA)
and CMS issued guidance 07/23/2007 and 8/28/2007; 2008 Call Letter
A. In HPMS, complete the table below:
RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: HEALTH INSURANCE
PORTABILITY AND ACCOUNTABILITY ACT OF 1996
(HIPAA)

YES

1. Applicant complies with the HIPAA administrative
simplification rules at 45 CFR Parts 160, 162, and 164.
2. Applicant agrees to accept the monthly capitation payment
consistent with the HIPAA-adopted ASC X12N 820,
Payroll Deducted and Other Group Premium Payment for
Insurance Products (“820”).
3. Applicant agrees to submit the Offshore Subcontract
Information and Attestation for each offshore subcontractor
(first tier, downstream, and related entities) that receive,
process, transfer, handle, store, or access Medicare
beneficiary PHI by the last Friday in September for the
upcoming contract year.
4. Applicant agrees to not use any part of an enrollee’s Social
Security Number (SSN) or Medicare ID Number (i.e.,
Health Insurance Claim Number) on the enrollee’s
identification card.
3.21 Continuation Area
The purpose of a continuation area is to ensure continuity of care for enrollees who no
longer reside in the service area of a plan and who permanently move into the geographic
area designated by the MAO as a continuation area. A continuation area is defined as an
additional area (outside the service area) within which the MAO offering a local plan
furnishes or arranges to furnish services to its continuation-of-enrollment enrollees.
Enrollees must reside in a continuation area on a permanent basis and provide
documentation that establishes residency, such as a driver’s license or voter registration
card. A continuation area does not expand the service area of any MA local plan. The
following attestations were developed to implement the regulations of 42 CFR 422.54.

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A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: CONTINUATION AREA

YES

1. Applicant agrees to establish a continuation area (outside the
service area) within which the MAO offering a local plan
furnishes or arranges to furnish services to its enrollees that
initially resided in the contract service area.
2. Applicant agrees to submit marketing materials that will
describe the continuation area options.
3. Applicant agrees to make arrangements with providers for
payment of claims for Medicare covered benefits to ensure
beneficiary access to services in the continuation area.
4. Applicant agrees to provide for reasonable cost-sharing for
services furnished in the continuation area. An enrollee's costsharing liability is limited to the cost-sharing amounts required
in the MA local plan's service area (in which the enrollee no
longer resides).

3.22 Part C Application Certification
A. In HPMS, upload a completed and signed Adobe.pdf format copy of the Part C
Application Certification Form.
Note: Once the Part C application is complete, applicants seeking to offer a Part D plan
must complete the Part D application in HPMS. PFFS and Cost Plan SAE organizations
have the option to offer Part D plans. MSAs are not allowed to offer Part D plans.
3.23 RPPO Essential Hospital
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: RPPO ESSENTIAL HOSPITAL

YES

1. Applicant is requesting essential hospital designation for noncontracted hospitals.
• If “Yes”, upload in HPMS a completed CMS Essential

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N/A

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: RPPO ESSENTIAL HOSPITAL

YES

Hospital Designation Table and Attestation.
B. In HPMS, upload a completed CMS Essential Hospital Designation Table.
3.24 Access to Services (PFFS & MSA)
The purpose of these attestations is to provide the applicant with information regarding
the offering of the various PFFS models, including a network, partial network, or nonnetwork PFFS model to its members, as applicable. Additionally, these attestations will
inform the applicant of the documents and/or information that will need to be uploaded
into HPMS. The following attestations were developed to implement the regulations of
42 CFR 422.114(a)(2)(iii).
Please note that, Section 1862(d) of the SSA, as amended by Section 162(a)(1) of MIPPA,
requires those PFFS plans operating in “network areas” to meet the access standards
described in section 1852(d)(4)(B) of the Act through contracts with providers. The list of
those areas considered “network areas” for purposes of the 2017 application and contracting
requirements can be found at: http://www.cms.hhs.gov/PrivateFeeforServicePlans/. CMS will
not accept a non-network or partial network application that includes any of the areas
identified as “network areas” in the referenced document. Furthermore, applicants wishing to
offer both network PFFS products and non-network or partial network PFFS products must
do so under separate contracts.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: ACCESS TO SERVICES

YES

1. Applicant agrees to offer a combination PFFS Model that
meets CMS’ access requirements per 42 CFR
422.114(a)(2)(iii).
•

Note: If the applicant has established payment rates
that are less than Original Medicare for one or more
categories of Medicare covered services under the
MA PFFS plan, the applicant must offer a
combination PFFS model.

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N/A

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: ACCESS TO SERVICES

YES

*This attestation is not applicable to MSA applicants.
2. Applicant agrees to offer a network PFFS model only per
42 CFR 422.114(a)(2)(ii).
•

Note: If the applicant has established payment rates
that are less than Original Medicare for all
Medicare covered services under the MA PFFS
plan, then the applicant must offer a network PFFS
model.

*This attestation is not applicable to MSA applicants.
3. Applicant agrees to offer a non-network PFFS model only
per 42 CFR 422.114(a)(2)(i).
*This attestation is not applicable to MSA applicants.
4. If providing a network or partial network PFFS plan,
Applicant has direct contracts and agreements with a
sufficient number and range of providers, to meet the
access standards described in section 1852(d)(i) of the Act.
*This attestation is not applicable to MSA applicants.
5. If providing a combination network, applicant is providing
a direct contracted network for the following Medicare
covered services:
DROP DOWN BOX WITH THE FOLLOWING
SERVICES:
• Acute Inpatient Hospital Care
• Diagnostic & Therapeutic Radiology (excluding
mammograms)
• DME/Prosthetic Devices
• Home Health Services
• Lab Services
• Mental Illness – Inpatient Treatment
• Mental Illness – Outpatient Treatment
• Mammography
• Renal Dialysis – Outpatient
• SNF Services

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N/A

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: ACCESS TO SERVICES

YES

• Surgical Services (outpatient or ambulatory)
• Therapy – Outpatient Occupational/Physical
• Therapy – Outpatient Speech
• Transplants (Heart, Heart and Lung, Intestinal, Kidney,
Liver, Lung, Pancreas)
• Other
• Note: If applicant selects "Other", upload in HPMS
a thorough description of proposed services,
including rationale for providing a contract network
for the proposed service.
•

If applicant proposes to furnish certain categories of
service through a contracted network, upload in
HPMS a narrative description of the proposed
network. Please ensure that the categories are
clearly defined in the narrative description.

*This attestation is not applicable to MSA applicants.
6. Applicant agrees to post the organization's "Terms and
Conditions of Payment" on its website, which describes to
members and providers the plan payment rates (including
member cost sharing) and provider billing procedures.
• Note: applicant can use CMS model terms and
conditions of payment guidance.
*This attestation is not applicable to MSA applicants.
7. Applicant agrees to provide information to its members and
providers explaining the provider deeming process and the
payment mechanisms for providers.
*This attestation is not applicable to MSA applicants.
NOTE: PFFS applicants must select the combination PFFS model, the network model or
the non-network model (Attestations #1-3) as appropriate for each type of contract (and
application) they seek. A single contract cannot encompass more than one of these
models.
B. In HPMS, upload a description of Proposed Services for combination networks, if
applicant selects "Other" for question 5. If applicant proposes to furnish certain
categories of service through a contracted network, please ensure that the categories

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N/A

are clearly defined in the narrative description. This upload is required for selected
PFFS applicants.
C. In HPMS, upload a description of how the applicant will follow CMS’s national
coverage decisions and written decisions of carriers and intermediaries (LMRP)
throughout the United States (Refer to 42 CFR 422.101 (b)). This upload is required
for PFFS and MSA applicants.
D. In HPMS, upload a description of how the applicant’s policies ensure that health
services are provided in a culturally competent manner to enrollees of different
backgrounds. This upload is required for PFFS and MSA applicants.
3.25 Claims Processing (PFFS & MSA)
The purpose of these attestations is to verify that the applicant uses a validated claims
system, properly implements the Reimbursement Grid and pays all providers according to
the PFFS plan's terms and conditions of payment. Additionally, upon request, the
applicant will submit to CMS its complete and thorough Provider Dispute Resolution
Policies and Procedures (P&Ps), bi-weekly reports detailing complaints, and/or bi-weekly
reports detailing appeals and/or claims. The following attestations were developed to
implement the regulations of 42 CFR 422.216.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: CLAIMS PROCESSING

YES

1. Applicant agrees to use a claims system that was
previously tested and demonstrates the ability to accurately
and timely pay Medicare FFS payments.
2. If using a claims system that was not previously validated,
Applicant agrees to provide documentation upon request.
3. Applicant has in place the necessary operational claims
systems, staffing, processes, functions, etc. to properly
institute the Reimbursement Grid and pay all providers
according to the PFFS plan’s terms and conditions of
payment.
*This attestation is not applicable to MSA Plans.
4. Applicant agrees that upon request, it will submit its
complete and thorough Provider Dispute Resolution
Policies and Procedures (P&Ps) to address any written or
verbal provider dispute/complaints, particularly regarding

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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: CLAIMS PROCESSING

YES

the amount reimbursed. The availability of these P&Ps
must be disclosed to providers. The applicant must submit
information on how it has integrated the P&Ps into all staff
training - particularly in Provider Relations, Customer
Service and Appeals/Grievances.
5. Applicant agrees that upon request, it will submit a
biweekly report to the CMS RO Account Manager that
outlines all provider complaints (verbal and written),
particularly where providers or beneficiaries question the
amount paid for six months following the receipt of the
first claim. This report will outline the investigation and
the resolution including the completion of a CMS designed
worksheet.
6. Applicant agrees that upon request, it will submit a
biweekly report to the CMS RO Account Manager that
outlines all beneficiary appeals and/or complaints (verbal
and written) related to claims for the six months following
the receipt of the first claim. This report will outline the
investigation and the resolution including the completion
of CMS designed worksheet.

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3.26 Payment Provisions
This section may be applicable to PFFS & MSA Plans
The purpose of these attestations is to ensure that the applicant has an appropriate system
in place to properly pay providers and to ensure that enrollees are not being overcharged.
Additionally, it instructs applicants to upload a Reimbursement Grid in HPMS. The
following attestations were developed to implement the regulations of 42 CFR
422.216(c).
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: PAYMENT PROVISIONS

YES

1. PFFS Plans -- Applicant has a system in place that allows
the applicant to correctly pay providers who furnish
services to its members the correct payment rate according
to the PFFS plan's terms and conditions of payment (e.g., if
the PFFS plan meets CMS' access requirements by paying
providers at Original Medicare payment rates, then it will
have a system in place to correctly pay at those rates
throughout the United States).
*This attestation is not applicable to MSA applicants.
2. The applicant has a system in place to ensure members are
not charged more in cost sharing or balance billing than the
amounts specified in the PFFS plan's terms and conditions
of payment. [Refer to 42 CFR 422.216(c)].

*This attestation is not applicable to MSA applicants
Applicant agrees that information in the Payment
Reimbursement Grid is true and accurate. (PFFS and MSA
applicants)
Applicant agrees to ensure that members are not charged
more than the Medicare-allowed charge (up to the limiting
charge for non-Medicare participating providers) when
they receive medical services.
Applicant has a system in place to timely furnish an
advance determination of coverage upon a verbal or
written request by a member or provider.
The applicant has a system in place to ensure members are
not charged after the deductible has been met. [Refer to 42

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N/A

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: PAYMENT PROVISIONS

YES

CFR 422.103(c)].
*This attestation is not applicable to PFFS applicants.
7. Applicant agrees to allow providers to balance bill the
beneficiary up to allowed amount.
• Note: This only applies to applicants that allow
balance billing.
B. In HPMS, upload a completed Payment Reimbursement grid.
Note: Organization may use any format for the Payment Reimbursement grid that best
outlines the organization’s rates. There is no CMS-prescribed format.
3.27 General Administration/Management
This section is applicable to MSA applicants
The purpose of these attestations is to ensure that the applicant is offering Medical
Savings Accounts (MSA) plans that follow requirements set forth in law, regulation and
CMS instructions. The applicant may establish a relationship with a banking partner and
have a system in place to receive Medicare deposits to MSA plan enrollee accounts. The
following sections of 42 CFR 422 contain provisions that are specific to Medical Savings
Accounts : 422.2, 422.4(a) and (c), 422.56, 422.62(d), 422.100(b)(2), 422.102(b),
422.103, 422.104, 422.111(a), 422.152, 422.252, 422.254(e), 422.256(e), 422.262(b)(2),
422.270(a)(1), 422.304(c)(2), and lastly, 422.314.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: MEDICAL SAVINGS
ACCOUNTS (MSA)

YES

1. Applicant is offering network MSA plans that follow the
CCP network model.
2. Applicant is offering network MSA plans that follow the
PFFS network model.

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N/A

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: MEDICAL SAVINGS
ACCOUNTS (MSA)

YES

3. Applicant currently operates a commercial Health Savings
Account (HSA) plan or other type of commercial taxfavored health plan or an MA Medical Savings Account
(MSA) plan.
4. Applicant agrees to serve as the MA MSA Trustee or
Custodian for receiving Medicare deposits to MSA plan
enrollee accounts.
5. Applicant agrees to establish a relationship with a banking
partner that meets the Internal Revenue Service (IRS)
requirements (as a bank, insurance company or other
entity) as set out in Treasury Reg. Secs. 1.408-2(e)(2)
through (e)(5).
• If “Yes”, upload the banking contract in HPMS.
6. Applicant agrees to establish policies and procedures with
its banking partner that include the services provided by
the banking partner, including how members access funds,
how spending is tracked and applied to the deductible, and
how claims are processed.
B. In HPMS, upload the banking contract for review by CMS and the applicant, if
applicant answered “Yes” to question 5 above, to ensure that ALL CMS direct and/or
any delegated contracting requirements are included in the contract.
C. In HPMS, upload a description of how the applicant will track enrollee usage of
information provided on the cost and quality of providers. Be sure to include how the
applicant intends to track use of health services between those enrollees who utilize
transparency information and those who do not.
D. In HPMS, upload a description of how the applicant will recover current-year deposit
amounts for members who are disenrolled from the plan before the end of the
calendar year.

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3.28 Past Performance
A. In HPMS, complete the table below:
Response
Attestation
Past Performance
1. The Medicare Advantage plan(s) currently offered by
the applicant, applicants’ parent organization, or
subsidiary of the applicants’ parent organization has been
operational since January 1, 2015 or earlier. (If the
Yes/No/NA
applicant, applicants parent organization, or a subsidiary
of applicants parent organization does not have any
existing contracts with CMS to operate a Medicare
Advantage Plan, select “NA”.)

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4 Document Upload Templates
4.1

History/Structure/Organizational Charts

Note: CMS REQUESTS THAT YOU LIMIT THIS DOCUMENT TO EIGHT (8) PAGES.

Please Check:
_____New to the MA program (initial application)
_____Cost Plan SAE Application
SECTION 1: All applicants (new and existing) must complete this section.
1. Please give a brief summary of applicant’s history.
a. Structure:
b. Ownership:
2. Attach a diagram of applicant’s ownership structure.
3. Attach a diagram of the applicant’s relation to its subsidiaries, as well as its
business affiliations.
SECTION II: Applicants that are new to the MA Program must complete this section.
1. Please provide the date of the company’s last financial audit.

What were the results of that audit?

3. Briefly describe the financial status of the applicants company.

4. Briefly explain the applicants marketing philosophy.

5. Who in the applicant’s organization can appoint and remove the executive
manager?

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6. Please submit a brief description and/or a flow chart of the applicants claims
processing systems and operations.

7. Please submit a brief description and/or flow chart of the applicant’s
grievances process.

8. Please provide a brief description and flow chart of the applicant’s appeals
process.

9. If applicable, please provide the name of the claims systems that applicant
tested to demonstrate the systems’ ability to pay Medicare FFS payments.

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4.2

Minimum Enrollment Waiver Request Upload Document

Minimum Enrollment Waiver Request Upload Document
Please complete and upload this document into HPMS per the HPMS MA Application User Guide
instructions.

Minimum Enrollment Waiver Request Upload Document
Applicant’s Contract Name (as provided in HPMS):
Enter contract name here.
Applicant’s CMS Contract Number:
Enter contract number here.
1. a) Does the contract applicant (organization) have previous experience in managing and
providing health care services under a risk-based payment arrangement to at least as many
individuals as the applicable minimum enrollment for the entity as described in 42 CFR
§422.514? (yes/no).
b) If response in 1(a) is yes, please describe the extent of this experience.
Enter your response to #1 here. If more space is required please attach additional sheets.
2. a) Does the contract applicant’s parent organization have previous experience in managing
and providing health care services under a risk-based payment arrangement to at least as
many individuals as the applicable minimum enrollment for the entity as described in 42
CFR §422.514? (yes/no).
b) If response in 2(a) is yes, please describe the extent of this experience.
Enter your response to #2 here. If more space is required please attach additional sheets.
3. a) Does the contract applicant’s management and providers have previous experience in
managing and providing health care services under a risk-based payment arrangement to at
least as many individuals as the applicable minimum enrollment for the entity as described
in 42 CFR §422.514? (yes/no).
b) If response in 3(a) is yes, please describe the extent of this experience.
Enter your response to #3 here. If more space is required please attach additional sheets.
4. a) Does the applicant have stop-loss insurance? (yes/no)
b) If response in 4(a) is yes, please provide evidence of this stop-loss insurance.
Enter your response to #4 here. If more space is required please attach additional sheets.
5. Please describe any factors, such as specific populations your organization intends to
serve or geographic locations, which may result in low enrollment?
Enter your response to #5 here. If more space is required please attach additional sheets.
6. Please describe how your organization is able to establish a marketing and enrollment
process that allows your organization to meet the applicable minimum enrollment
requirements specified in 42 CFR §422.514.
Enter your response to #6 here. If more space is required please attach additional sheets.

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4.3

Two Year Prohibition Waiver Request Upload Document

Two Year Prohibition Waiver Request Upload Document
Please complete and upload this document into HPMS per the HPMS MA Application User Guide
instructions.

Two Year Prohibition Waiver Request Upload Document
Applicant’s Contract Name (as provided in HPMS):
Enter contract name here.
Applicant’s CMS Contract Number:
Enter contract number here.
Date of Contract Non- Renewal :
Enter date here.

Under 42 CFR 422.506(a)(4)(a) CMS will not enter into a contract with an Medicare
Advantage (MA) Organization for 2 years unless there are special circumstances that
warrant special consideration as determined by CMS.
If organization attests “yes” to attestation #1 under Administrative Management the MA
Organization is required to submit the Two Year Prohibition Waiver Request Upload
Document for review and consideration by CMS.
The MA organization should provide a description of the circumstance that warrant special
consideration related to the non-renewal of your MA contract. (Please limit your response to
1 pages or less)
Enter response to the statement above (Please limit your response to 1 page)

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4.4

CMS State Certification Form
INSTRUCTIONS
(MA State Certification Form)

General:
This form is required to be submitted with all MA applications. The MA applicant is
required to complete the items above the line (items 1 - 4), then forward the document to
the appropriate State Agency Official who should complete those items below the line
(items 5-8). After completion, the State Agency Official should return this document to
the applicant organization for submission to CMS as part of its application for a MA
contract.
The questions provided must be answered completely. If additional space is needed to
respond to the questions, please add pages as necessary. Provide additional information
whenever you believe further explanation will clarify the response.
The MA State Certification Form demonstrates to CMS that the MA contract being
sought by the applicant organization is within the scope of the license granted by the
appropriate State regulatory agency, that the organization meets state solvency
requirements and that it is authorized to bear risk. A determination on the organization’s
MA application will be based upon the organization’s entire application that was
submitted to CMS, including documentation of appropriate licensure.
Items 1 - 4 (to be completed by the applicant):
1. List the name, d/b/a (if applicable) and complete address of the organization
that is seeking to enter into the MA contract with CMS.
2. Indicate the type of license (if any) the applicant organization currently holds
in the State where the applicant organization is applying to offer an MA
contract.
3. Specify the type of MA contract the applicant organization is seeking to enter
into with CMS.
4. Enter the National Association of Insurance Commissioners (NAIC) number
if there is one.
New Federal Preemption Authority – The Medicare Modernization Act amended section
1856(b)(3) of the SSA to significantly broaden the scope of Federal preemption of State
laws governing plans serving Medicare beneficiaries. Current law provides that the
provisions of Title XVIII of the SSA supersede State laws or regulations, other than laws
relating to licensure or plan solvency, with respect to MA plans.
Items 5 - 8 (to be completed by State Official):

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5. List the reviewer’s pertinent information in the event CMS needs to
communicate with the individual conducting the review at the State level.
6. List the requested information regarding other State departments/agencies
required to review requests for licensure.
7. A. Circle where appropriate to indicate whether the applicant meets State
financial solvency requirements.
B. Indicate State Agency or Division, including contact name and complete
address, that is responsible for assessing whether the applicant meets State
financial solvency requirements.
8. A. Circle where appropriate to indicate whether the applicant meets State
licensure requirements.
B. Indicate State Agency or Division, including contact name and complete
address, that is responsible for assessing whether the applicant meets State
licensing requirements.
MEDICARE ADVANTAGE (MA)
STATE CERTIFICATION REQUEST

MA applicants should complete items 1-4.
1. MA applicant Information (Organization that has applied for MA contract(s)):
Name
_______________________________________________________________
D/B/A (if applicable)
___________________________________________________
Address
_____________________________________________________________
City/State/Zip
________________________________________________________
2. Type of State license or Certificate of Authority currently held by referenced
applicant: (Circle more than one if entity holds multiple licenses)
● HMO ● PSO ● PPO ● Indemnity ● Other ________
Comments:
3. Type of MA application filed by the applicant with the Centers for Medicare
& Medicaid Services (CMS): (Circle all that are appropriate)

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● HMO ● PPO ● MSA ● PFFS ● Religious/Fraternal
Requested Service Area:
_______________________________________________________________
4. National Association of Insurance Commissioners (NAIC) number:
____________
I certify that ____________________’s application to CMS is for the type of MA plan(s)
and the service area(s) indicated above in questions 1-3.
______________________________
MAO
______________________________
Date
______________________________
CEO/CFO Signature
_____________________________
Title

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(An appropriate State official must complete items 5-8)
Please note that under section 1856(b)(3) of the SSA and 42 CFR 422.402, other than
laws related to State licensure or solvency requirements, the provisions of title
XVIII of the SSA preempt State laws with respect to MA plans.
5. State official reviewing MA State Certification Request:
Reviewer’s Name
_______________________________________________________________
State Oversight/Compliance Officer
_______________________________________________________________
Agency Name
_______________________________________________________________
Address
_______________________________________________________________
Address
_______________________________________________________________
City/State
_______________________________________________________________
Telephone
_______________________________________________________________
_
E-Mail Address
_______________________________________________________________
6. Name of other State agencies (if any) whose approval is required for
licensure:
Agency______________________________________________
Contact Person________________________________________
Address______________________________________________
City/State____________________________________________
Telephone____________________________________________
E-Mail Address _______________________________________
7. Financial Solvency:
Does the applicant organization named in item 1 above meet State financial
solvency requirements? (Please circle the correct response)
● Yes ● No
Please indicate which State Agency or Division is responsible for assessing
whether the named applicant organization meets State financial solvency
requirements.

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_______________________________________________________________
8. State Licensure:
Does the applicant organization named in item 1 above meet State Licensure
requirements? (Please circle the correct response)
● Yes ● No
Please indicate which State Agency or Division is responsible for assessing
whether this organization meets State licensure requirements.
______________________________________________________________

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State Certification
I hereby certify to the Centers for Medicare & Medicaid Services (CMS) that the above
organization (doing business as (d/b/a) _________________________) is:
(Check one)
________licensed in the State of ___________ as a risk bearing entity, or
________ authorized to operate as a risk bearing entity in the State of
________________
And
(Check one)
________is in compliance with State solvency requirements, or
________State solvency requirement not applicable [please explain below].
By signing the certification, the State of __________ is certifying that the organization is
licensed and/or that the organization is authorized to bear the risk associated with the MA
product circled in item 3 above. The State is not being asked to verify plan eligibility for
the Medicare managed care products(s) or CMS contract type(s) requested by the
organization, but merely to certify to the requested information based on the
representation by the organization named above.

______________________________
Agency
______________________________
Date
______________________________
Signature
_____________________________
Title

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4.5

Part C Application Certification Form

, attest to the following:
(NAME & TITLE)

1. I have read the contents of the completed application and the information contained
herein is true, correct, and complete. If I become aware that any information in this
application is not true, correct, or complete, I agree to notify the Centers for Medicare
& Medicaid Services (CMS) immediately and in writing.
2. I authorize CMS to verify the information contained herein. I agree to notify CMS in
writing of any changes that may jeopardize my ability to meet the qualifications
stated in this application prior to such change or within 30 days of the effective date
of such change. I understand that such a change may result in termination of the
approval.
3. I agree that if my organization meets the minimum qualifications, is Medicareapproved, and my organization enters into a Part C contract with CMS, I will abide
by the requirements contained in Section 3 of this Application and provide the
services outlined in my application.
4. I agree that CMS may inspect any and all information necessary, including inspecting
of the premises of the applicants organization or plan to ensure compliance with
stated Federal requirements, including specific provisions for which I have attested. I
further agree to immediately notify CMS if, despite these attestations, I become aware
of circumstances that preclude full compliance by January 1 of the upcoming contract
year with the requirements stated here in this application as well as in Part 422 of 42
CFR of the regulation.
5. I understand that in accordance with 18 U.S.C. §1001, any omission,
misrepresentation or falsification of any information contained in this application or
contained in any communication supplying information to CMS to complete or
clarify this application may be punishable by criminal, civil, or other administrative
actions including revocation of approval, fines, and/or imprisonment under Federal
law.
6. I further certify that I am an authorized representative, officer, chief executive officer,
or general partner of the business organization that is applying for qualification to
enter into a Part C contract with CMS.
7. I acknowledge that I am aware that there is operational policy guidance, including the
forthcoming Call Letter, relevant to this application that is posted on the CMS
website and that it is continually updated. Organizations submitting an application in
response to this solicitation acknowledge that they will comply with such guidance
should they be approved for a Part C contract.

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Authorized Representative Name (printed)

Title

Authorized Representative Signature

Date (MM/DD/YYYY)

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4.6

RPPO State Licensure Table

Complete a separate table for each MA Region which the applicant proposes to serve
pursuant to this application. Please make copies as necessary.
Entity Name: ____________________________
MA Region: _____________________________
State
(Two
Letter
Abbrev.)

Is
Applicant
Licensed
in State?
Yes or No

2017 Part C Application

If No, Give
Date
Application
was Filed
with State

Type of License
Held or
Requested

FINAL

Does State have
Restricted
Reserve
Requirements (or
Legal
Equivalent)? If
Yes, Give
Amount

State Regulator’s
Name, Address
Phone #

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4.7

RPPO State Licensure Attestation

By signing this attestation, I agree that the applicant has applied to be licensed, in each
state of its regional service area(s) in which it is not already licensed, sufficient to
authorize applicant to operate as a risk bearing entity that may offer health benefits,
including an MA Regional Preferred Provider Organization (RPPO) product.
I understand that, in order to offer an MA RPPO plan, section 1858(d) of the SSA, as
added by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003
(P.L. 108-173), requires an entity to be licensed in at least one state in each of the RPPO
Regions it seeks to cover in order to receive a temporary licensure waiver. This
temporary waiver is to allow for the timely processing, as determined by CMS, of
licensure applications for other states within the requested RPPO Region.
I understand that my organization will be required to provide documentary evidence of its
filing or licensure status for each state of its regional service area(s) consistent with this
attestation. I further understand that CMS may contact the relevant state regulators to
confirm the information provided in this attestation as well as the status of applicants
licensure request(s).
I further agree to immediately notify CMS if, despite this attestation, I become aware of
circumstances that indicate noncompliance with the requirements indicated above.
Name of Organization: ____________________________________________________
Printed Name of CEO: ____________________________________________________
Signature: ____________________________________________________

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4.8

RPPO Essential Hospital Designation Table

ESSENTIAL HOSPITAL DESIGNATION TABLE
Please complete this form with the indicated information about each hospital that
applicant seeks to have designated as essential. Please note that, under Section 1858(h)
of the Social Security Act (the Act) and 42 CFR 422.112(c)(3), applicant organization
must have made a good faith effort to contract with each hospital that it seeks to have
designated as essential. A “good faith” effort is defined as having offered the hospital a
contract providing for payment rates in amounts no less than the amount the hospital
would have received had payment been made under section 1886(d) of the Act. The
attestation on the following page must be completed and submitted with the completed
chart.
Hospital name Contact person
and address
and phone
(including
county)

Happy Care
Medical
Center

Hospital
NPI
Number

Any Body, CFO
(123) 456-7890

Hospital
Method by which
Type/Provide
offer was
r ID Number communicated

Acute Care/
210076

2 Letter Offers
followed by 2
phone calls

123 Happy
Street, City,
State 12345

ABC County

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Date(s) offer
refused/how
refused

Why hospital is needed to meet
RPPO’s previously submitted
access standards, including
distance from named hospital to
next closest Medicare
participating contracted
hospital

Letter dated
8/02/05.
Confirmed by
phone call with
CFO

Nearest Medicare participating
inpatient facility with which
applicant contracts is in downtown
Wines Place, AZ – 35 or more
miles away from beneficiaries in
ABC County. Applicants hospital
access standard is 98% of
beneficiaries in ABC County and
northern half of DEF County have
access to inpatient facility within
30 miles drive.

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4.9

RPPO Essential Hospital Attestation
RPPO Attestation Regarding Designation of “Essential” Hospitals
Applicant Organization named below (the Organization) attests that it made a good
faith effort consistent with Section 1858(h) of the SSA and 42 CFR 422.112(c)(3), to
contract with each hospital identified by the Organization in the attached chart at rates
no less than current Medicare inpatient fee-for-service amounts and that, in each case,
the hospital refused to enter into a contract with the Organization.
CMS is authorized to inspect any and all books or records necessary to substantiate
the information in this attestation and the corresponding designation requests.
The Organization agrees to notify CMS immediately upon becoming aware of any
occurrence or circumstance that would make this attestation inaccurate with respect to
any of the designated hospitals. I possess the requisite authority to execute this
attestation on behalf of the Organization.
Name of Organization: ______________________________________________
Printed Name of CEO: ______________________________________________
Signature:_________________________________________________________
Medicare Advantage RPPO Application/Contract Number(s):
R#_____ ______ ______ ______ ______ ______ ______ ______ ______ ______
Note: This attestation form must be signed by any organization that seeks to
designate one or more hospitals as “essential.”

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4.10 Partial County Justification
Instructions: MA applicants requesting service areas that include one or more partial counties
must upload a completed Partial County Justification with the MA Application.
Complete and upload a Partial County Justification form for each partial county in your
proposed service area. This form is appropriate for organizations (1) entering into a new partial
county or (2) expanding a current partial county by one or more zip codes when the resulting
service area will continue to be a partial county. In this scenario, the Justification pertains to the
proposed zip codes versus the zip codes already approved by CMS.
MA applicants expanding from a partial county to a full county do NOT need to submit a Partial
County Justification.
Beginning with the CY2016 applications, HPMS will automatically assess the contracted
provider and facility networks against the CMS criteria. If the ACC report shows that a
provider or facility fails the network criteria, the applicant must submit an Exception Request
using the same process available to full-county applicants.
CMS has revised its partial county guidance to eliminate the use of the inability to establish
economically viable contracts as a partial county justification.
NOTE: CMS requests that you limit this document to 20 pages.
SECTION I: Partial County Explanation
Using just a few sentences, briefly describe why you are proposing a partial county.
SECTION II: Partial County Requirements
The Medicare Managed Care Manual Chapter 4, Section 140.3 provides guidance on partial
county requirements. The following questions pertain to those requirements; refer to Section
140.3 when responding to them.
Explain how and submit documentation to show that the partial county meets all three of the
following criteria:
1. Necessary – It is not possible to establish a network of providers to serve the entire
county.
Describe the evidence that you are providing to substantiate the above statement that it is
not possible to establish a network to serve the entire county and (if applicable) attach it
to this form:
2. Non-discriminatory – You must be able to substantiate both of the following
statements:
The racial and economic composition of the population in the portion of the county
you are proposing is comparable to the excluded portion of the county.

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Using U.S. census data (or data from another comparable source), compare the racial
and economic composition of the included and excluded portions of the proposed
county service area.
The anticipated health care costs of the portion of the county you are proposing to
serve is similar to the area of the county that will be excluded from the service area.
Describe the evidence that you are providing to substantiate the above statement and
(if applicable) attach it to this form:
3. In the best interest of beneficiaries – The partial county must be in the best interest of
the beneficiaries who are in the pending service area.
Describe the evidence that you are providing to substantiate the above statement and (if
applicable) attach it to this form:
SECTION III: Geography
1. Describe the geographic areas for the county, both inside and outside the proposed
service area, including the major population centers, transportation arteries, significant
topographic features (e.g., lakes, mountain ranges, etc.), and any other geographic
factors that affected your service area designation.

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5 APPENDIX I: Solicitations for Special Needs Plan (SNP)
Application
5.1 Background
The purpose of this section is to provide instructions to the applicant related to the
submission of a SNP application. Applicants that do not have a CMS contract and are
requesting to offer a SNP must complete the MA application, including the SNP
application. The timeline for submitting the SNP application is the same as the MA
application timeline.
Every applicant that proposes to offer a SNP must obtain additional CMS approval as a
Medicare Advantage Prescription Drug (MA-PD) plan. A CMS MA-PD contract that is
offering a new SNP, or that is expanding the service area of a CMS-approved SNP, needs
to complete only the SNP application portion of the MA application if CMS has already
approved the service area for the MA contract. Otherwise, if the MA organization is
planning to expand its contract service area, it must complete both a SNP application and
an MA Service Area Expansion (SAE) application for the approval of the MA service
area.
For further guidance regarding SNPs refer to Chapter 16 B Special Needs Plans of the
MMCM.
5.2 Instructions
1. The SNP application contains a list of questions and attestations requiring a
“yes” or “no” response and requires the applicant to upload documentation
in support of responses to the questions and attestations. This is generally
similar to the format of the MA application.
2. All SNP applications must be submitted electronically through the Health Plan
Management System (HPMS) to CMS by the MA application due date. CMS will
not accept a SNP application submitted on paper.
3. The applicant to should read the sections carefully in order to provide the
information as requested.

5.3 Initial (new) SNP
•

An initial applicant, seeking to offer a SNP must submit a MA-PD
application in conjunction with the SNP Proposal.

•

An applicant, including an existing MA Organization, offering a new SNP
must submit their SNP proposal by completing HPMS SNP Proposal

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template and submitting all completed upload documents per HPMS User
Guide instructions. A SNP proposal must be completed for each SNP type
to be offered by the MAO.
•

A SNP can only be offered in an MA-approved service area. If the
applicant has applied for a new MA service area, approval of the new SNP
or SNP SAE is contingent upon approval of the new or expanded MA
service area. If the MA service area is not approved due to unresolved
deficiencies, the new SNP or SNP SAE Proposal will not be approved.

•

All applicants requesting to offer a dual-eligible SNP must have a State
Medicaid Agency contract or be in negotiation with the State Medicaid
Agency toward that goal. A dual-eligible SNP must have a State Medicaid
Agency contract in place prior to the beginning of the 2017 contract year
and the contract must overlap the entire CMS MA contract year.

In general, CMS recommends and encourages MA applicants to refer to 42 CFR 422
regulations to clearly understand the nature of the requirement. Nothing in this
solicitation is intended to supersede the regulations at 42 CFR 422. Failure to reference
a regulatory requirement does not affect the applicability of such requirement. Other
associated MA and Part D applications must also be completed and submitted.
Applicants must read HPMS memos and visit the CMS web site periodically to stay
informed about new or revised guidance documents.
5.4 SNP Service Area Expansion (SAE)
An MA organization currently offering a SNP that wants to expand the service area of
this SNP must adhere to the same requirements for submission of an initial SNP proposal,
that is to say they must complete an HPMS SNP Proposal and all completed upload
documents per HPMS User Guide instructions. Please note that the Model of Care Matrix
Upload Document and the Model of Care Narrative are no longer required to be
submitted with the SAE application. The service area of the proposed SNP cannot
exceed the existing or pending service area for the MA contract.
5.5 Renewal SNPs that are Not Expanding their Service Area:
An MA organization currently offering a SNP that requires re-approval under the
National Committee for Quality Assurance (NCQA) SNP Approval process should only
submit its Model of Care written narrative and Model of Care Matrix Upload Document
in the HPMS Model of Care Module, and will not be required to submit any other portion
of the MA application or SNP proposal, unless specifically noted (e.g., in the instructions
for submission of contracts with State Medicaid Agencies). Any SNP that received a two
or three year approval will not be required to submit any other portion of the MA
application or SNP proposal unless specifically noted (e.g., to meet the requirement for
contracting with a State Medicaid Agency). (Note: The Affordable Care Act amended
section 1859(f) of the Social Security Act to require that all SNPs be approved by NCQA

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starting January 1, 2012, and subsequent years. 42 C.F.R. §§ 422.4(a) (iv), 422.101(f),
and 422.152(g) specify that the NCQA approval process be based on evaluation and
approval of the model of care (MOC), as per CMS guidance.

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5.6 D-SNP State Medicaid Agency(ies) Contract(s)
Attestation

Response

State Medicaid Agency Contracts
1. Applicant either: (1) has an existing, executed contract(s) with the State
Medicaid Agency in the state(s) in which the applicant seeks to operate for
the MA application year; or (2) does not have an executed State Medicaid
Agency Contract, but has contacted the requisite State Medicaid Agency,
initiated contract negotiations and will have a signed contract(s) for the MA
application year by July 1, 2016.

Yes/No

Note: Applicants for dual-eligible SNPs (initial, existing, and
existing/expanding) must have a signed State Medicaid Agency(ies)
contract by the CMS specified deadline. A current evergreen, multi
year, or future contract must be uploaded each application cycle or
year.

2. Applicant wishes the contract with the State Medicaid Agency(ies) be
reviewed to determine if it qualifies as a fully integrated dual eligible
SNP (FIDE).

Yes/No
If yes, Upload the
completed FIDE SNP
Contract Matrix with
your State Medicaid
Agency Contract
before July 1, 2016.

3. If the applicant attested to having an existing, executed contract(s) with
the State Medicaid Agency in the state(s) in which the applicant seeks to
operate for the MA application year, upload a copy of ALL executed State
Medicaid Agency Contract(s).

Upload executed
contracts for each
State Medicaid
Agency.

4. If the applicant attested to having an existing, executed contract(s) with
the State Medicaid Agency in the state(s) in which the applicant seeks to
operate for the MA application year, also upload the D-SNP State Medicaid
Agency Contract Matrix Upload Document.

Upload D-SNP State
Medicaid Agency
Contract Matrix
Upload Document

5.7 I-SNP Attestations
Attestation

Response

I-SNP Individuals Residing ONLY in Institutions
1. Applicant will only enroll institutionalized individuals
residing in a long term care facility under contract with or
owned by the organization offering the SNP.

Yes/No

2. If applicant answered "Yes" to statement #1, download the
I-SNP Individuals Residing Only in Institutions Upload
I-SNP Individuals Residing Only in
Document, fully complete it, and upload the completed
Institutions Upload Document
document.
Attestation

Response

I-SNP Individuals Residing ONLY in the Community
1. Applicant will enroll individuals who are institutional
equivalents residing in the community.

Yes/No

2. If applicant answered "Yes" to statement #1, download the I-SNP Residing Only in the
I-SNP Residing Only in the Community Upload Document,
Community Upload Document

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fully complete it, and upload the completed document.
3. If the applicant answered “Yes” to statement #1, upload a
copy of the respective State’s level of care (LOC) assessment
tool to determine eligibility for each institutional equivalent
beneficiary. NOTE: The applicant must use the respective
State (LOC) assessment tool to determine eligibility for
institutional equivalent individuals living in the community.

Copy of the respective State’s level
of care (LOC) assessment tool to
determine eligibility for each
institutional equivalent beneficiary

Attestation

Response

I-SNP Individuals Residing in BOTH Institutions and the Community
1. Applicant will enroll individuals who are both
institutionalized and institutional equivalents residing in
the community.

Yes/No

2. If the applicant answered “Yes” to statement #1,
download the I-SNP Individuals Residing in Both
Institutions and the Community Upload Document, fully
complete it, and upload the completed document.

I-SNP Individuals Residing in Both
Institutions and the Community Upload
Document

3. If the applicant answered “Yes” to statement #1, upload
a copy of the respective State’s level of care (LOC)
assessment tool to determine eligibility for each
institutional equivalent beneficiary. NOTE: The applicant
must use the respective State (LOC) assessment tool to
determine eligibility for institutional equivalent individuals
living in the community.

Copy of the respective State’s level of
care (LOC) assessment tool to
determine eligibility for each
institutional equivalent beneficiary.

5.8 C-SNP, D-SNP and I-SNP ESRD Waiver Request
Attestation
ESRD Waiver Requests

Response

1. Applicant is applying to offer a SNP targeting individuals having ESRD. Yes/No
2. If applicant answered "Yes" to statement #1, download the SNP ESRD
Waiver Request Upload Document, fully complete it, and upload the
completed document.

Upload ESRD Upload
Document.

5.9 Model of Care Attestations
Attestation

Response

Written Model of Care
1. Applicant has submitted a written description of its Model of Care
Yes/No
as defined in the Model of Care Matrix upload document.
2. Upload a copy of the written Model of Care.

Upload

3. Download the Model of Care Matrix Upload Document, fully
complete it, and upload the completed document.

Upload

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5.10 Health Risk Assessment Attestations
Attestation
Health Risk Assessment

Response

1. Applicant conducts a comprehensive initial health risk assessment of the medical,
functional, cognitive, and psychosocial status as well as annual health risk reassessments for
each beneficiary which includes some or all of the following:
a. conduct an initial comprehensive health risk assessment within 90
days of enrollment and use the results to develop the individualized Yes/No
care plan for each beneficiary
b. conduct annual comprehensive health risk assessment and the
results are used to update the individualized care plan for each
Yes/No
beneficiary
c. comprehensive initial and annual health risk assessment examines
Yes/No
covers medical, psychosocial, cognitive, and functional status
d. comprehensive health risk assessment is conducted face-to-face by
Yes/No
the applicant
e. comprehensive health risk assessment is conducted telephonically
Yes/No
by the applicant
f. comprehensive health risk assessment is conducted by having the
Yes/No
beneficiary complete an electronic or paper-based questionnaire
2. Applicant develops or selects and utilizes a comprehensive risk assessment tool that will
be reviewed during oversight activities and consists of:
a. an existing validated health risk assessment tool
Yes/No
b. a plan-developed health risk assessment tool
Yes/No
c. an electronic health risk assessment tool
Yes/No
d. a paper health risk assessment tool
Yes/No
e. uses a standardized health risk assessment tool for all beneficiaries Yes/No
f. periodically reviews the effectiveness of the health risk assessment Yes/No
tool
3. Upload a copy of the applicants comprehensive health risk assessment tool.
4. Applicant has a process to conduct authoritative health risk assessment, analyze identified
health risks, and stratify them to develop an individualized care plan that mitigates health
risks through some of the following methods:
a. Comprehensive health risk analysis is conducted by a credentialed Yes/No
healthcare professional
b. Applicant notifies the Interdisciplinary Care Team, respective
Yes/No
providers, and beneficiary about the results of the health risk analysis
c. Applicant tracks and trends population health risk data to inform Yes/No
the development of specialized benefits and services
d. Applicant uses predictive modeling or other software to stratify
Yes/No

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beneficiary health risks for the development of an individualized care
plan
e. Applicant manually analyzes health risk data to stratify beneficiary Yes/No
health risks for the development of an individualized care plan

5.11 SNP Quality Improvement Program Requirements
Attestation

Response

SNP Quality Improvement Program Requirements
1.

Applicant has a written plan including policies, procedures, and a
systematic methodology to conduct an overall quality improvement
program that is specific to its targeted special needs individuals. 42
CFR §152(g)

Yes/No

Applicant conducts an annual review of the effectiveness of its quality Yes/No
improvement program.

For each special needs plan, applicant collects, analyzes, and reports
data that measure health outcomes and indices of quality pertaining to
the management of care for its targeted special needs population (i.e.,
dual-eligible, institutionalized, or chronic condition) at the plan level.

Yes/No

For each special needs plan, applicant collects, analyzes, and reports
data that measure access to care (e.g., service and benefit utilization
rates, or timeliness of referrals or treatment).

Yes/No

For each special needs plan, applicant collects, analyzes, and reports
data that measure improvement in beneficiary health status (e.g.,
quality of life indicators, depression scales, or chronic disease
outcomes).

Yes/No

For each special needs plan, applicant collects, analyzes, and reports
Yes/No
data that measure staff implementation of the SNP model of care (e.g.,
National Committee for Quality Assurance accreditation measures or
medication reconciliation associated with care setting transitions
indicators).

For each special needs plan, applicant collects, analyzes, and reports
Yes/No
data that measure comprehensive health risk assessment (e.g., accuracy
of acuity stratification, safety indicators, or timeliness of initial
assessments or annual reassessments).

For each special needs plan, applicant collects, analyze, and reports
data that measure implementation of an individualized plan of care
(e.g., rate of participation by IDT members and beneficiaries in care
planning).

Yes/No

For each special needs plan, applicant collects, analyzes, and reports
data that measure use and adequacy of a provider network having
targeted clinical expertise (e.g., service claims, pharmacy claims,
diagnostic reports, etc.)

Yes/No

10. For each special needs plan, applicant collects, analyzes, and reports Yes/No
data that measure delivery of add-on services and benefits that meet the
specialized needs of the most vulnerable beneficiaries (frail, disabled,
near the end-of-life, etc.).
11. For each special needs plan, applicant collects, analyzes, and reports
data that measure provider use of evidence-based practices and/or

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nationally recognized clinical protocols.
12. For each special needs plan, applicant collects, analyzes, and reports
Yes/No
data that measure the effectiveness of communication (e.g., call center
utilization rates, rates of beneficiary involvement in care plan
development, analysis of beneficiary or provider complaints, etc.).
13. For each special needs plan, applicant collects, analyzes, and reports
data that measure CMS-required data on quality and outcomes
measures that will enable beneficiaries to compare health coverage
options. These data include HEDIS, HOS, and/or CAHPS data.

Yes/No

14. For each special needs plan, applicant collects, analyzes, and reports
data that measure CMS-required Part C Reporting Data Elements that
will enable CMS to monitor plan performance.

Yes/No

15. For each special needs plan, applicant collects, analyzes, and reports
CMS-required Medication Therapy Management measures that will
enable CMS to monitor plan performance.

Yes/No

16. For each special needs plan, applicant can demonstrate it has a
provider network having targeted clinical expertise as evidenced by
measures from medication management, disease management, or
behavioral health domains.

Yes/No

17. For each special needs plan, applicants agrees to disseminate the
results of the transitions of care analysis to the interdisciplinary care
team.

Yes/No

18. Applicant can provide CMS with documentation on policies and
procedures that will enable CMS to monitor the plans model of care
performance.

Yes/No

5.12 Past Performance Attestation
Attestation

Response
Past Performance

1. The Medicare Advantage plan(s) currently offered by the
applicant, applicant’s parent organization, or subsidiary of the
applicant’s parent organization has been operational since January 1,
2015 or earlier. (If the applicant, applicants parent organization, or a Yes/No/NA
subsidiary of applicants parent organization does not have any
existing contracts with CMS to operate a Medicare Advantage Plan,
select “NA”.)

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5.13 D-SNP State Medicaid Agency Contract Matrix
Please complete and upload this document into HPMS per HPMS MA Application User
Guide Instructions for completed (i.e., signed) contracts with the State Medicaid Agency.
This applies to previously signed contracts that are still effective due to it being a multiyear contract or an evergreen contract.
STATE CONTRACT/SUB CONTRACT REQUIREMENTS
Plan Name: ____________________________ PBP: __________ Date: __________________
State Contract Name: _____________________ Service Area: _________________________

CMS Regulations – 42 CFR 422.107 (c)

Page
Number(s)

1. MA organizations responsibility, including financial
obligations, to provide or arrange for Medicaid benefits.
2. Category(ies) of eligibility for dual-eligible
beneficiaries enrolled under the SNP, as described
under the Statute at sections 1902(a), 1902(f), 1902(p),
and 1905.
NOTE: If applicable, please use State aid codes to identify
category of duals being enrolled.
* As defined under the State Medicaid plan

3. Medicaid benefits covered under the SNP
4. Cost-sharing protections covered under the SNP
5. Identification and sharing of information on Medicaid
provider participation
6. Verification of enrollee’s eligibility for both Medicare
and Medicaid
7.

Service area covered by the SNP

8. The contract period for the SNP

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Section
Number

5.14 Fully Integrated Dual Eligible (FIDE) Special Needs Plan (SNP) Contract
Review Matrix
Plans should use this document to identify where each FIDE SNP element is met within
their contract(s). The matrix will be used to assist the Centers for Medicare and
Medicaid Services (CMS) in conducting the FIDE SNP determination reviews.
FULLY INTEGRATED DUAL ELIGIBLE (FIDE) SPECIAL NEEDS PLAN (SNP) CONTRACT
REVIEW MATRIX
Plan Name: ____________________________ PBP: __________ Date: __________________
State Contract Name: _____________________ Service Area: _________________________

Meeting the definition of a FIDE SNP – CMS 4144-F

Page
Section
Number(s) Number

(1) Enroll special needs individuals entitled to medical assistance
under a Medicaid State plan, as defined in section 1859(b)(6)(B)(ii)
of the Act and § 422.2.
(2) Provide dual eligible beneficiaries access to Medicare and
Medicaid benefits under a single managed care organization
(MCO).
(3) Have a capitated contract with a State Medicaid agency that
includes coverage of specified primary, acute and long-term care
benefits and services, consistent with State policy, under risk-based
financing. Under the risk-based financing, the plan must be at risk
for substantially all of the services, including risk for nursing
facility services for at least six months (or one-hundred and eighty
days) of the contract year.
(4) Coordinate the delivery of covered Medicare and Medicaid
health and long term care services, using aligned care management
and specialty care network methods for high-risk beneficiaries.
(5) Employ policies and procedures approved by CMS and the State
to coordinate or integrate member materials, including enrollment,
communications, grievance and appeals, and quality assurance.

5.15 I-SNP Upload Documents
I-SNP Individuals Residing Only in Institutions
Please complete and upload this document into HPMS per the HPMS MA Application User
Guide instructions.
I-SNP Individuals Residing Only in Institutions Upload Document
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Applicants Contract Name (as provided in HPMS):
Enter contract name here.
CMS Contract Number:
Enter CMS contract number here.
1. Provide a list of contracted long-term care facilities.
Name of Contracted LongMedicaid Provider #
term Care Facilities
Enter name of long-term care
Enter Medicaid provider #
facilities here.
here.

Facilities Address
Enter facilities address here.

2. Provide attestation for Special Needs Plans (SNP) Serving institutionalized beneficiaries.
Attestation for Special Needs Plans (SNP) Serving Institutionalized Beneficiaries
I attest that in the event the above referenced organization has a CMS approved institutional SNP,
the organization will only enroll beneficiaries in the SNP who (1) reside in a Long Term Care
(LTC) facility under contract with or owned by the organization offering the SNP to provide
services in accordance with the institutional SNP Model of Care approved by CMS, or (2) agree to
move to such a facility following enrollment. I further attest that the contract with all LTCs
stipulates that the MAO has the authority to conduct on-site visits to observe care, review
credentialing and competency assessment records, review beneficiary medical records, and meet
with LTC personnel to assure quality and safe care of its beneficiaries.
I attest that in the event the above referenced organization has a CMS approved institutional SNP to
provide services to community dwelling beneficiaries who otherwise meet the institutional status as
determined by the State, the SNP will assure that the necessary arrangements with community
resources are in place to ensure beneficiaries will be assessed and receive services as specified by
the SNP Model of Care.
I attest that if a SNP enrollee changes residence, the SNP will have appropriate documentation that
it is prepared to implement the SNP Model of Care at the beneficiary’s new residence, or disenroll
the beneficiary according to CMS enrollment/disenrollment policies and procedures. Appropriate
documentation includes the executed MAO contract with the LTC facility to provide the SNP
Model of Care, and written documentation of the necessary arrangements in the community setting
to ensure beneficiaries will be assessed and receive services as required under the SNP Model of
Care.
_________________________________________ ____________________________
CEO
DATE

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I-SNP Individuals Residing Only in the Community
Please complete and upload this document into HPMS per the HPMS MA Application User Guide instructions.

I-SNP Individuals Residing Only in the Community Upload Document
Applicants Contract Name (as provided in HPMS):
Enter contract name here.
CMS Contract Number:
Enter CMS contract number here.
1. Provide the name of the entity(ies) performing the level of care (LOC) assessment for enrolling individuals
living in the community.
Enter name of the entity(ies) performing the LOC assessment here.
2. Provide the address of the entity(ies) performing the LOC assessment.
Enter the address of the entity(ies) performing the LOC assessment here.
3. Provide the relevant credential (e.g., RN for registered nurse, LSW for licensed social worker, etc.) of the
staff from the entity(ies) performing the LOC assessment.
Enter the relevant credential from the staff of the entity(ies) performing the LOC assessment here.
4. Provide a list of assisted-living facilities (if applicant is contracting with ALFs)
Name of Assisted-living Facilities
Medicaid Provider #
Facilities Address
Enter Name of assisted-living facilities
here.
Enter Medicaid provider # here.
Enter facilities address here.

I-SNP Individuals Residing in Both Institutions and the Community
Please complete and upload this document into HPMS per the HPMS MA Application User
Guide instructions.
I-SNP Individuals Residing in Both Institutions and the Community Upload Document
Applicants Contract Name (as provided in HPMS):
Enter contract name here.
CMS Contract Number:
Enter CMS contract number here.
1. For institutionalized individuals, provide a list of contracted long-term care facilities.
Name of Contracted Long-term
Medicaid Provider #
Facilities Address
Care Facilities
Enter name of long-term care
facilities here.
Enter Medicaid provider # here. Enter facilities address here.

2. For institutionalized individuals, provide the following attestation by the authorized
signatory.

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Attestation for Special Needs Plans (SNP) Serving Institutionalized Beneficiaries
I attest that in the event the above referenced organization has a CMS approved institutional SNP,
the organization will only enroll beneficiaries in the SNP who (1) reside in a Long Term Care (LTC)
facility under contract with or owned by the organization offering the SNP to provide services in
accordance with the institutional SNP Model of Care approved by CMS, or (2) agree to move to
such a facility following enrollment. I further attest that the contract with all LTCs stipulates that the
MAO has the authority to conduct on-site visits to observe care, review credentialing and
competency assessment records, review beneficiary medical records, and meet with LTC personnel
to assure quality and safe care of its beneficiaries.
I attest that in the event the above referenced organization has a CMS approved institutional SNP to
provide services to community dwelling beneficiaries who otherwise meet the institutional status as
determined by the State, the SNP will assure that the necessary arrangements with community
resources are in place to ensure beneficiaries will be assessed and receive services as specified by the
SNP Model of Care.
I attest that if a SNP enrollee changes residence, the SNP will have appropriate documentation that it
is prepared to implement the SNP Model of Care at the beneficiary’s new residence, or disenroll the
beneficiary according to CMS enrollment/disenrollment policies and procedures. Appropriate
documentation includes the executed MAO contract with the LTC facility to provide the SNP Model
of Care, and written documentation of the necessary arrangements in the community setting to
ensure beneficiaries will be assessed and receive services as required under the SNP Model of Care.
__________________________________ ____________________________
CEO
DATE
3. For institutional equivalent individuals residing in the community, provide the name,
address, and relevant professional credential (e.g., RN for registered nurse, LSW for
licensed social worker, etc.) of the entity(ies) performing the mandatory level of care (LOC)
assessment for enrolling eligible individuals.
Name:
_________________________________________________________________________________
Address:
_______________________________________________________________________________
Professional Credential:
___________________________________________________________________
4. For institutional equivalent individuals residing in the community, provide a list of
applicable assisted-living facilities or other residential facilities.
a. Applicant is contracting with assisted-living facilities or other residential facilities. _____ Yes
_____ No
b. If applicant is contracting with assisted-living facilities or other residential facilities, enter the
requested information below.
Name of Assisted-living or
Medicaid Provider #
Facilities Address
Other Residential Facilities
Enter Name of assisted-living or Enter Medicaid provider # here. Enter facilities address here.

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other residential facilities here.

5.16 ESRD Waiver Request Upload Document
Please complete and upload this document into HPMS per the HPMS MA Application User
Guide instructions.
ESRD Waiver Request Upload Document
Applicants Contract Name (as provided in HPMS):
Enter contract name here.
Applicants CMS Contract Number:
Enter contract number here.
1. Provide a description of how applicant intends to monitor and serve the unique needs of
the ESRD enrollees including care coordination. Describe how/why services you provide
are relevant to ESRD enrollees. Include a clinical and social profile of ESRD beneficiaries,
their most frequent co-morbidities, problems with Activities of Daily Living (ADLs), living
arrangements, etc.
Enter your response to #1 here.
2. Provide a description of any additional service(s) provided to members with ESRD.
Include a description of how/why these services are relevant to ESRD enrollees. Only list
benefits that are already required for a Medicare Advantage plan to the extent that the
applicant offers enhancements to these benefit(s) that specifically address the needs of the
ESRD membership. As examples, additional benefits to be described may include but are
not limited to:
• Transportation
• Support groups (e.g. beneficiary; family; caregiver)
• Self-care education (e.g., nutrition; wound care)
Enter your response to #2 here.
3. Provide a description of the interdisciplinary care team’s coordination role in the
assessment and delivery of services needed by members with ESRD. Include specific
details about the interaction of the different interdisciplinary care team members during
both assessment and delivery of services, and address how the interdisciplinary care team
will engage the beneficiary and his/her family and caregiver(s).
Enter your response to #3 here.
4. If the applicant is delegating the ESRD care, care management, or care coordination
services in any capacity to another organization the applicant must:
a. Name the organization(s)
b. Indicate which aspect(s) of care are delegated to each organization (health plan and
delegated organization(s)), and define the areas for which each party is responsible
c. Describe the legal relationships between the applicant and the organization(s), and

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d. Attach a copy of the fully executed contract between the health plan and the
organization(s)
Enter your response to #4 here.
5. Provide a list of the contracted nephrologist(s). Beneficiary access to contracted
nephrologists must meet the current HSD criteria.
Name of Contracted
Medicare Provider #
Provider Address
Nephrologist(s)
Enter name of contracted
Enter Medicare provider #
Enter provider address
nephrologist(s) here.
here.
here.

6. Provide a list of the contracted dialysis facility(ies). Beneficiary access to contracted
dialysis facilities must meet the current HSD criteria.
Name of Contracted Dialysis
Medicare Provider #
Facilities Address
Facility(ies)
Enter name of contracted dialysis
Enter Medicare provider #
Enter facilities address
facility(ies) here.
here.
here.

7. Describe the dialysis options available to beneficiaries (e.g., home dialysis; nocturnal
dialysis).
Enter your response to #7 here.
8. Provide a list of the contracted kidney transplant facility(ies).
Name of Contracted Kidney
Medicare Provider #
Transplant Facility(ies)
Enter name of contracted kidney
Enter Medicare provider #
transplant facility(ies) here.
here.

Facilities Address
Enter facilities address
here.

9. Describe beneficiary access to contracted kidney transplant facility(ies), including the
average distance beneficiaries in each county served by the applicants SNP must travel to
reach a contracted kidney transplant facility. In instances where the contracted kidney
transplant facility(ies) are not within the local patterns of care for a given country,
provide a justification for this deviation, and describe the transportation services and
accommodations which will be made available to beneficiaries.
Enter your response to #9 here.
Please use the following table to provide distance information.
County, ST
Average Distance
Enter the service area county and state
Enter the average distance (in miles)
(County, ST) here.
beneficiaries must travel here.

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5.17 Model of Care Matrix Upload Document
Please complete and upload this document into HPMS per HPMS MA Application User Guide instructions.
Applicants Contract Name (as provided in HPMS)
Enter contract name here.
Applicants CMS Contract Number
Enter contract number here.
Care Management Plan Outlining the Model of Care
In the following table, list the document, page number, and section of the corresponding description in your care
management plan for each model of care element.
Corresponding Document
Page Number/Section

Model of Care Elements

1. Description of the SNP Population:
Element A: Description of the Overall SNP Population: The identification and
comprehensive description of the SNP-specific population is an integral
component of the MOC because all of the other elements depend on the firm
foundation of a comprehensive population description. The organization must
provide information about its overall service area population. Information about
national population statistics is not sufficient. It must provide an overview that
fully addresses the full continuum of care of current and potential SNP
beneficiaries, including end-of-life needs and considerations, if relevant to the
target population served by the SNP. The description of the SNP population must
include, but not be limited to, the following:
 Clear documentation of how the health plan staff determines or will determine,
verify, and track eligibility of SNP beneficiaries.
 A detailed profile of the medical, social, cognitive, environmental, living
conditions, and co-morbidities associated with the SNP population in the
plan’s geographic service area.
 Identification and description of the health conditions impacting SNP
beneficiaries, including specific information about other characteristics that
affect health such as, population demographics (e.g. average age, gender,
ethnicity, and potential health disparities associated with specific groups such
as: language barriers, deficits in health literacy, poor socioeconomic status,
cultural beliefs/barriers, caregiver considerations, other).
 Define unique characteristics for the SNP population served:
 C-SNP: What are the unique chronic care needs for beneficiaries enrolled in
a C-SNP? Include limitations and barriers that pose potential challenges for
these C-SNP beneficiaries.
 D-SNP: What are the unique health needs for beneficiaries enrolled in a DSNP? Include limitations and barriers that pose potential challenges for these
D-SNP beneficiaries.

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 I-SNP: What are the unique health needs for beneficiaries enrolled in an ISNP? Include limitations and barriers that pose potential challenges for
these I-SNP beneficiaries as well as information about the facilities and/or
home and community-based services in which your beneficiaries reside.
Element B: Sub-Population: Most Vulnerable Beneficiaries
As a SNP, you must include a complete description of the specially-tailored
services for beneficiaries considered especially vulnerable using specific terms
and details (e.g., members with multiple hospital admissions within three
months, “medication spending above $4,000”). The description must
differentiate between the general SNP population and that of the most vulnerable
members, as well as detail additional benefits above and beyond those available
to general SNP beneficiaries Other information specific to the description of the
most vulnerable beneficiaries must include, but not be limited to, the following:
 A description of the internal health plan procedures for identifying the most
vulnerable beneficiaries within the SNP.
 A description of the relationship between the demographic characteristics of
the most vulnerable beneficiaries with their unique clinical requirements.
Explain in detail how the average age, gender, ethnicity, language barriers,
deficits in health literacy, poor socioeconomic status and other factor(s)
affect the health outcomes of the most vulnerable beneficiaries.
 The identification and description of the established partnerships with
community organizations that assist in identifying resources for the most
vulnerable beneficiaries, including the process that is used to support
continuity of community partnerships and facilitate access to community
services by the most vulnerable beneficiaries and/or their caregiver(s).
2. Care Coordination:
Care coordination helps ensure that SNP beneficiaries’ healthcare needs,
preferences for health services and information sharing across healthcare staff and
facilities are met over time. Care coordination maximizes the use of effective,
efficient, safe, and high-quality patient services that ultimately lead to improved
healthcare outcomes, including services furnished outside the SNP’s provider
network as well as the care coordination roles and responsibilities overseen by the
beneficiaries’ caregiver(s). The following MOC sub-elements are essential
components to consider in the development of a comprehensive care coordination
program; no sub-element must be interpreted as being of greater importance than
any other. All five sub-elements below, taken together, must comprehensively
address the SNPs’ care coordination activities.
A. SNP Staff Structure
 Fully define the SNP staff roles and responsibilities across all health plan
functions that directly or indirectly affect the care coordination of beneficiaries
enrolled in the SNP. This includes, but is not limited to, identification and
detailed explanation of:
 Specific employed and/or contracted staff responsible for performing
administrative functions, such as: enrollment and eligibility verification,
claims verification and processing, other.
 Employed and/or contracted staff that perform clinical functions, such as:
direct beneficiary care and education on self-management techniques, care
coordination, pharmacy consultation, behavioral health counseling, other.

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








Employed and/or contracted staff that performs administrative and clinical
oversight functions, such as: license and competency verification, data
analyses to ensure appropriate and timely healthcare services, utilization
review, ensuring that providers use appropriate clinical practice guidelines
and integrate care transitions protocols.
Provide a copy of the SNP’s organizational chart that shows how staff
responsibilities identified in the MOC are coordinated with job titles. If
applicable, include a description of any instances when a change to staff
title/position or level of accountability was required to accommodate
operational changes in the SNP.
Identify the SNP contingency plan(s) used to ensure ongoing continuity of
critical staff functions.
Describe how the SNP conducts initial and annual MOC training for its
employed and contracted staff, which may include, but not be limited to,
printed instructional materials, face-to-face training, web-based instruction,
and audio/video-conferencing.
Describe how the SNP documents and maintains training records as
evidence to ensure MOC training provided to its employed and contracted
staff was completed. For example, documentation may include, but is not
limited to: copies of dated attendee lists, results of MOC competency
testing, web-based attendance confirmation, and electronic training records.
Explain any challenges associated with the completion of MOC training for
SNP employed and contracted staff and describe what specific actions the
SNP will take when the required MOC training has not been completed or
has been found to be deficient in some way.

B. Health Risk Assessment Tool (HRAT)
The quality and content of the HRAT should identify the medical, functional,
cognitive, psychosocial and mental health needs of each SNP beneficiary. The
content of, and methods used to conduct the HRAT have a direct effect on the
development of the Individualized Care Plan and ongoing coordination of
Interdisciplinary Care Team activities; therefore, it is imperative that the MOC
include the following:
 A clear and detailed description of the policies and procedures for completing
the HRAT including:
 Description of how the HRAT is used to develop and update, in a timely
manner, the Individualized Care Plan (MOC Element 2C) for each
beneficiary and how the HRAT information is disseminated to and used
by the Interdisciplinary Care Team (MOC Element 2D).
 Detailed explanation for how the initial HRAT and annual reassessment
are conducted for each beneficiary.
 Detailed plan and rationale for reviewing, analyzing, and stratifying (if
applicable) the results of the HRAT, including the mechanisms to ensure
communication of that information to the Interdisciplinary Care Team,
provider network, beneficiaries and/or their caregiver(s), as well as other
SNP personnel that may be involved with overseeing the SNP
beneficiary’s plan of care. If stratified results are used, include a detailed
description of how the SNP uses the stratified results to improve the care
coordination process.
C. Individualized Care Plan (ICP)

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 The ICP components must include, but are not limited to: beneficiary selfmanagement goals and objectives; the beneficiary’s personal healthcare
preferences; description of services specifically tailored to the beneficiary’s
needs; roles of the beneficiaries’ caregiver(s); and identification of goals met
or not met.
 When the beneficiary’s goals are not met, provide a detailed description of
the process employed to reassess the current ICP and determine appropriate
alternative actions.
 Explain the process and which SNP personnel are responsible for the
development of the ICP, how the beneficiary and/or his/her caregiver(s) or
representative(s) is involved in its development and how often the ICP is
reviewed and modified as the beneficiary’s healthcare needs change. If a
stratification model is used for determining SNP beneficiaries’ health care
needs, then each SNP must provide a detailed explanation of how the
stratification results are incorporated into each beneficiary’s ICP.
 Describe how the ICP is documented and updated as well as, where the
documentation is maintained to ensure accessibility to the ICT, provider
network, beneficiary and/or caregiver(s).
 Explain how updates and/or modifications to the ICP are communicated to the
beneficiary and/or their caregiver(s), the ICT, applicable network providers,
other SNP personnel and other stakeholders as necessary.
D. Interdisciplinary Care Team (ICT)
 Provide a detailed and comprehensive description of the composition of the
ICT; include how the SNP determines ICT membership and a description of
the roles and responsibilities of each member. Specify how the expertise and
capabilities of the ICT members align with the identified clinical and social
needs of the SNP beneficiaries, and how the ICT members contribute to
improving the health status of SNP beneficiaries. If a stratification model is
used for determining SNP beneficiaries’ health care needs, then each SNP
must provide a detailed explanation of how the stratification results are used
to determine the composition of the ICT.
 Explain how the SNP facilitates the participation of beneficiaries and their
caregivers as members of the ICT.
 Describe how the beneficiary’s HRAT (MOC Element 2B) and ICP (MOC
Element 2C) are used to determine the composition of the ICT; including
those cases where additional team members are needed to meet the unique
needs of the individual beneficiary.
 Explain how the ICT uses healthcare outcomes to evaluate established
processes to manage changes and/or adjustments to the beneficiary’s health
care needs on a continuous basis.
 Identify and explain the use of clinical managers, case managers or others who
play critical roles in ensuring an effective interdisciplinary care process is
being conducted.
 Provide a clear and comprehensive description of the SNP’s communication
plan that ensures exchanges of beneficiary information is occurring regularly
within the ICT, including not be limited to, the following:
 Clear evidence of an established communication plan that is overseen by
SNP personnel who are knowledgeable and connected to multiple facets of
the SNP MOC. Explain how the SNP maintains effective and ongoing
communication between SNP personnel, the ICT, beneficiaries, caregiver(s),

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community organizations and other stakeholders.
 The types of evidence used to verify that communications have taken place,
e.g., written ICT meeting minutes, documentation in the ICP, other.
 How communication is conducted with beneficiaries who have hearing
impairments, language barriers and/or cognitive deficiencies.
E. Care Transitions Protocols
 Explain how care transitions protocols are used to maintain continuity of care
for SNP beneficiaries. Provide details and specify the process and rationale for
connecting the beneficiary to the appropriate provider(s).
 Describe which personnel (e.g., case manager) are responsible for
coordinating the care transition process and ensuring that follow-up services
and appointments are scheduled and performed as defined in MOC Element
2A.
 Explain how the SNP ensures elements of the beneficiary’s ICP are transferred
between healthcare settings when the beneficiary experiences an applicable
transition in care. This must include the steps that need to take place before,
during and after a transition in care has occurred.
 Describe, in detail, the process for ensuring the SNP beneficiary and/or
caregiver(s) have access to and can adequately utilize the beneficiaries’
personal health information to facilitate communication between the SNP
beneficiary and/or their caregiver(s) with healthcare providers in other
healthcare settings and/or health specialists outside their primary care network.
 Describe how the beneficiary and/or caregiver(s) will be educated about
indicators that his/her condition has improved or worsened and how they will
demonstrate their understanding of those indicators and appropriate selfmanagement activities.
 Describe how the beneficiary and/or caregiver(s) are informed about who their
point of contact is throughout the transition process.
3. SNP Provider Network:
The SNP Provider Network is a network of healthcare providers who are
contracted to provide health care services to SNP beneficiaries The SNP is
responsible for a network description that must include relevant facilities and
practitioners necessary to address the health care need of the target population as
identified in MOC 1, and provide oversight information for all of its network
types. Each SNP is responsible for ensuring their MOC identifies, fully describes,
and implements the following for its SNP Provider Network:
A. Specialized Expertise
 Provide a complete and detailed description of the specialized expertise
available to SNP beneficiaries in the SNP provider network that corresponds
to the SNP population identified in MOC Element 1.
 Explain how the SNP oversees its provider network facilities and ensures its
providers are actively licensed and competent (e.g., confirmation of applicable
board certification) to provide specialized healthcare services to SNP
beneficiaries. Specialized expertise may include, but is not limited to: internal
medicine, endocrinologists, cardiologists, oncologists,, mental health
specialists, other.
 Describe how providers collaborate with the ICT (MOC Element 2D) and the
beneficiary, contribute to the ICP (MOC Element 2C) and ensure the delivery

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of necessary specialized services. For example, describe: how providers
communicate SNP beneficiaries’ care needs to the ICT and other stakeholders;
how specialized services are delivered to the SNP beneficiary in a timely and
effective way; and how reports regarding services rendered are shared with the
ICT and how relevant information is incorporated into the ICP.
B. Use of Clinical Practice Guidelines & Care Transitions Protocols
 Explain the processes for ensuring that network providers utilize appropriate
clinical practice guidelines and nationally-recognized protocols. This may
include, but is not limited to: use of electronic databases, web technology, and
manual medical record review to ensure appropriate documentation.
 Define any challenges encountered with overseeing patients with complex
healthcare needs where clinical practice guidelines and nationally-recognized
protocols may need to be modified to fit the unique needs of vulnerable SNP
beneficiaries. Provide details regarding how these decisions are made,
incorporated into the ICP (MOC Element 2C), communicated with the ICT
(MOC Element 2D) and acted upon.
 Explain how SNP providers ensure care transitions protocols are being used
to maintain continuity of care for the SNP beneficiary as outlined in MOC
Element 2E.
C. MOC Training for the Provider Network
 Explain, in detail, how the SNP conducts initial and annual MOC training for
network providers and out-of-network providers seen by beneficiaries on a
routine basis. This could include, but not be limited to: printed instructional
materials, face-to-face training, web-based instruction, audio/videoconferencing, and availability of instructional materials via the SNP plans’
website.
 Describe how the SNP documents and maintains training records as evidence
of MOC training for their network providers. Documentation may include, but
is not limited to: copies of dated attendee lists, results of MOC competency
testing, web-based attendance confirmation, electronic training records, and
physician attestation of MOC training.
 Explain any challenges associated with the completion of MOC training for
network providers and describe what specific actions the SNP Plan will take
when the required MOC training has not been completed or is found to be
deficient in some way.
4. MOC Quality Measurement & Performance Improvement:
The goals of performance improvement and quality measurement are to improve
the SNP’s ability to deliver healthcare services and benefits to its SNP
beneficiaries in a high-quality manner. Achievement of those goals may result
from increased organizational effectiveness and efficiency by incorporating
quality measurement and performance improvement concepts used to drive
organizational change. The leadership, managers and governing body of a SNP
organization must have a comprehensive quality improvement program in place to
measure its current level of performance and determine if organizational systems
and processes must be modified based on performance results.
A. MOC Quality Performance Improvement Plan
 Explain, in detail, the quality performance improvement plan and how it

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





ensures that appropriate services are being delivered to SNP beneficiaries.
The quality performance improvement plan must be designed to detect
whether the overall MOC structure effectively accommodates beneficiaries’
unique healthcare needs. The description must include, but is not limited to,
the following:
The complete process, by which the SNP continuously collects, analyzes,
evaluates and reports on quality performance based on the MOC by using
specified data sources, performance and outcome measures. The MOC
must also describe the frequency of these activities.
Details regarding how the SNP leadership, management groups and other
SNP personnel and stakeholders are involved with the internal quality
performance process.
Details regarding how the SNP-specific measurable goals and health
outcomes objectives are integrated in the overall performance improvement
plan (MOC Element 4B).
Process it uses or intends to use to determine if goals/outcomes are met,
there must be specific benchmarks and timeframes, and must specify the remeasurement plan for goals not achieved.

B. Measureable Goals & Health Outcomes for the MOC
 Identify and clearly define the SNP’s measureable goals and health outcomes
and describe how identified measureable goals and health outcomes are
communicated throughout the SNP organization. Responses must include but
not be limited to, the following:
 Specific goals for improving access and affordability of the healthcare
needs outlined for the SNP population described in MOC Element 1.
 Improvements made in coordination of care and appropriate delivery of
services through the direct alignment of the HRAT, ICP, and ICT.
 Enhancing care transitions across all healthcare settings and providers for
SNP beneficiaries.
 Ensuring appropriate utilization of services for preventive health and
chronic conditions.
 Identify the specific beneficiary health outcomes measures that will be used
to measure overall SNP population health outcomes, including the specific
data source(s) that will be used.
 Describe, in detail, how the SNP establishes methods to assess and track the
MOC’s impact on the SNP beneficiaries’ health outcomes.
 Describe, in detail, the processes and procedures the SNP will use to
determine if the health outcomes goals are met or not met.
 Explain the specific steps the SNP will take if goals are not met in the
expected time frame.
C. Measuring Patient Experience of Care (SNP Member Satisfaction)
 Describe the specific SNP survey(s) used and the rationale for selection of
that particular tool(s) to measure SNP beneficiary satisfaction.
 Explain how the results of SNP member satisfaction surveys are integrated
into the overall MOC performance improvement plan, including specific
steps to be taken by the SNP to address issues identified in response to
survey results.
D. Ongoing Performance Improvement Evaluation of the MOC

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 Explain, in detail, how the SNP will use the results of the quality
performance indicators and measures to support ongoing improvement of the
MOC, including how quality will be continuously assessed and evaluated.
 Describe the SNP’s ability to improve, on a timely basis, mechanisms for
interpreting and responding to lessons learned through the MOC performance
evaluation process.
 Describe how the performance improvement evaluation of the MOC will be
documented and shared with key stakeholders.
E. Dissemination of SNP Quality Performance related to the MOC
 Explain, in detail, how the SNP communicates its quality improvement
performance results and other pertinent information to its multiple
stakeholders, which may include, but not be limited to: SNP leadership, SNP
management groups, SNP boards of directors, SNP personnel & staff, SNP
provider networks, SNP beneficiaries and caregivers, the general public, and
regulatory agencies on a routine basis.
 This description must include, but is not limited to, the scheduled frequency
of communications and the methods for ad hoc communication with the
various stakeholders, such as: a webpage for announcements; printed
newsletters; bulletins; and other announcement mechanisms.
 Identify the individual(s) responsible for communicating performance
updates in a timely manner as described in MOC Element 2A.

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APPENDIX II: Employer/Union-Only Group Waiver Plans
(EGWPs) MAO “800 Series”

6.1 Background
The MMA provides employers and unions with a number of options for providing
coverage to their Medicare-eligible members. Under the MMA, these options include
purchasing benefits from sponsors of prescription drug-only plans (PDPs), making
special arrangements with Medicare Advantage Organizations (MAOs) and Section 1876
Cost Plans to purchase customized benefits, including drug benefits, for their members,
and directly contracting with CMS to become Part D or MAO plan sponsors themselves.
Each of these approaches involves the use of CMS waivers authorized under Sections
1857(i) or 1860D-22(b) of the SSA. Under this authority, CMS may waive or modify
requirements that “hinder the design of, the offering of, or the enrollment in” employersponsored group plans. CMS may exercise its waiver authority for PDPs, MAOs and
Cost Plan Sponsors that offer employer/union-only group waiver plans (EGWPs).
EGWPs are also known as “800 series” plans because of the way they are enumerated in
CMS systems.
Which Applicants Should Complete this Appendix?
This appendix is to be used by MAOs seeking to offer the following new “800 series”
EGWPs: Private Fee-For-Service (PFFS) Plans, Local Coordinated Care Plans (CCPs),
Regional Preferred Provider Organization Plans (RPPOs), and Regular Medical Savings
Accounts (MSAs). CMS issues separate contract numbers for each type of offering and
thus a separate application is required for each corresponding contract. However,
applicants may submit one application to be eligible to offer new MA-only and new MAPD EGWPs under the same contract number. All applications are required to be
submitted electronically in the HPMS. Please follow the application instructions below
and submit the required material in support of your application to offer new “800 series”
EGWPs.
For waiver guidance and rules on Part C and Part D Employer contracts, see Chapter 9 of
the MMCM and Chapter 12 of the Prescription Drug Benefit Manual.
6.2

Instructions
•

New MAO applicants seeking to offer new “800 series” EGWPs are applicants
that have not previously applied to offer plans to individual beneficiaries or “800
series” EGWPs.
Note: All new MAOs intending to offer Part D EGWPs (i.e., MA-PDs) must also
complete the 2017 Solicitation for Applications for New Medicare Advantage
Prescription Drug Plan (MA-PD) Sponsors. The 2017 Solicitation for
Applications for New Medicare Advantage Prescription Drug Plan (MA-PD)

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Sponsors must also be submitted electronically through HPMS. These
requirements are also applicable to new MAOs applying to offer “800 series”
Regular MSA or Demonstration MSA plans that do not intend to offer plans to
individual beneficiaries in 2017. Together these documents will comprise a
completed application for new MAOs. Failure to complete, if applicable, the 2017
Solicitation for Applications for New Medicare Advantage Prescription Drug
Plan (MA-PD) Sponsors, may result in a denial of the EGWP application.
•

Existing MAOs that currently offer plans to individual beneficiaries under an
existing contract but have not previously applied to offer EGWPs (MA-only or
MA-PD) under this same contract.
Note: Existing MAOs are only required to complete this appendix.

Separate Applications Required For Each Contract Number
A separate application must be submitted for each contract number under which the
MAO applicant is applying to offer new “800 series” EGWPs.
6.3

Request for Additional Waivers/Modification of Requirements (Optional)

As a part of the application process, applicants may submit individual
waiver/modification requests to CMS. The applicant should submit this additional
waiver/modification request as an upload via HPMS to the Attestation Waiver Request in
the appropriate MA or Part D supplemental upload pages.
These requests must be identified as requests for additional waivers/modifications and
must fully address the following items:
•

Specific provisions of existing statutory, regulatory, and/or CMS policy
requirement(s) the entity is requesting to be waived/modified (please identify the
specific requirement (e.g., “42 CFR § 422.66,” or “Section 40.4 of Chapter 2 of
the MMCM and whether you are requesting a waiver or a modification of these
requirements);

•

How the particular requirements hinder the design of, the offering of, or the
enrollment in, the employer-sponsored group plan;

•

Detailed description of the waiver/modification requested, including how the
waiver/modification will remedy the impediment (i.e., hindrance) to the design of,
the offering of, or the enrollment in, the employer-sponsored group plan;

•

Other details specific to the particular waiver/modification that would assist CMS
in the evaluation of the request; and

•

Contact information (contract number, name, position, phone, fax and email
address) of the person who is available to answer inquiries about the
waiver/modification request.

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6.4

Attestations

EGWP Attestation for Contract _________
1. MSA applicants:
• If applicant is seeking to offer MSA “800 series” EGWPs, applicant may
designate national service areas and provide coverage to employer group
members wherever they reside (i.e., nationwide). Note that CMS has not
issued any waiver permitting MAOs to offer non-calendar year MSA plans.
Therefore, MAOs may only offer calendar year MSA plans.
Network PFFS applicants:
• If applicant is seeking to offer individual plans in any part of a state, applicant
may designate statewide service areas for its “800-series” plan of the same
type (i.e. HMO, PPO or PFFS) and provide coverage to employer group
members residing anywhere in the entire state. Note that all employer PFFS
plans must be network based.
For Local CCP applicants:
• If applicant is seeking to offer individual plans in any part of a state, the
applicant may designate statewide service areas and provide coverage to
employer group members residing anywhere in the entire state.
However, to enable employers and unions to offer CCPs to all their Medicare eligible
retirees wherever they reside, an MAO offering a local CCP in a given service area (i.e., a
state) can extend coverage to an employer’s or union sponsor’s beneficiaries residing
outside of that service area when the MAO, either by itself or through partnerships with
other MAOs, is able to meet CMS provider network adequacy requirements and provide
consistent benefits to those beneficiaries. Applicants who are eligible for this waiver at
the time of application or who may become eligible at any time during the contract year
are strongly encouraged to designate their service area broadly (e.g., multiple states,
national) to allow for the possibility of enrolling members during the contract year if
adequate networks are in place. No mid-year service area expansions will be
permitted. Applicants offering both individual and “800 series” plans will be required to
have Part C or D networks in place for those designated EGWP service areas outside of
their individual plan service areas.
RPPO applicants:
• Applicants offering individual plans in any region may provide coverage to
employer group members residing throughout the entire region (i.e., RPPOs
must have the same service area for its EGWPs as for its individual plans).
I certify that I am an authorized representative, officer, chief executive officer, or
general partner of the business organization that is applying for qualification to offer
EGWPs in association with my organization’s MA contract with CMS. I have read,

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understand, and agree to comply with the above statement about service areas. If I need
further information, I will contact one of the individuals listed in the instructions for this
appendix.
{Entity MUST complete to be considered a complete application.}
2. CERTIFICATION
Note: Any specific certifications below that reference Part D are not applicable to MAO
applicants applying to offer an MSA product because these entities cannot offer Part D
under these contracts. Entities can offer Part D benefits through a separate standalone
Prescription Drug Plan (PDP); however, a separate application is required to offer “800
series” PDPs.
All provisions of the 2017 MA Applications and the 2017 Solicitation for Applications
for New Medicare Advantage Prescription Drug Plan (MA-PD) Sponsors apply to all
employer/union-group waiver plan benefit packages offered by MAOs except where the
provisions are specifically modified and/or superseded by particular employer/union-only
group waiver guidance, including those waivers/modifications set forth below.
For existing MAOs, this appendix comprises the entire “800 series” EGWP application
for MAOs.
I, the undersigned, certify to the following:
1) Applicant is applying to offer new employer/union-only group waiver (“800
series”) plans and agrees to be subject to and comply with all CMS
employer/union-only group waiver guidance.
2) New MAO applicants seeking to offer an EGWP (“800 series” plan) must submit
and complete the entire EGWP application for MAOs which consists of: this
appendix, along with the 2017 MA Application and the 2017 Solicitation for
Applications for New Medicare Advantage Prescription Drug Plan (MA-PD)
Sponsors (if applicable).
3) Applicant agrees to restrict enrollment in its EGWPs to those Medicare eligible
individuals eligible for the employer’s/union’s employment-based group
coverage. (See 42 CFR section 422.106(d)(2))
4) Applicant understands and agrees that it is not required to submit a 2017 Part D
bid (i.e., bid pricing tool) in order to offer its EGWPs. (Section 2.7 of the 2017
Solicitation for New Medicare Advantage Prescription Drug Plan (MA-PD)
Sponsors)
5) In order to be eligible for the CMS retail pharmacy access waiver of 42 CFR §
423.120(a)(1), applicant attests that its retail pharmacy network is sufficient to

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meet the needs of its enrollees throughout the employer/union-only group waiver
service area, including situations involving emergency access, as determined by
CMS. Applicant acknowledges and understands that CMS reviews the adequacy
of the applicants pharmacy networks and may potentially require expanded access
in the event of beneficiary complaints or for other reasons it determines in order
to ensure that the applicants network is sufficient to meet the needs of its
employer group population. (See the 2017 Solicitation for New Medicare
Advantage Prescription Drug Plan (MA-PD) Sponsors)
6) MAO applicant understands and agrees that as a part of the underlying
application, it submits a Part D retail pharmacy network list, and other pharmacy
access submissions (mail order, home infusion, long-term care, I/T/U) in the 2017
Solicitation for Applications for New Medicare Advantage Prescription Drug Plan
(MA-PD) Sponsors for its designated EGWP service area at the time of
application.
7) Applicant understands that its EGWPs are not included in the processes for autoenrollment (for full-dual eligible beneficiaries) or facilitated enrollment (for other
low income subsidy eligible beneficiaries).
8) Applicant understands that CMS has waived the requirement that the EGWPs
must provide beneficiaries the option to pay their premiums through Social
Security withholding. Thus, the premium withhold option will not be available for
enrollees in 42 CFR § 422.64 and 42 CFR § 423.48 to submit information to
CMS, including the requirement to submit information (e.g., pricing and
pharmacy network information) to be publicly reported on www.medicare.gov,
Medicare Plan Finder (“MPF”). Applicants EGWPs. (Sections 3.6.A10 and
3.24.A2-A4 of the 2017 Solicitation for New Medicare Advantage Prescription
Drug Plan (MA-PD) Sponsors)
9) Applicant understands that dissemination/disclosure materials for its EGWPs are
not subject to the requirements contained in 42 CFR § 422.2262 or 42 CFR §
423.2262 to be submitted for review and approval by CMS prior to use. However,
applicant agrees to submit these materials to CMS at the time of use in accordance
with the procedures outlined in Chapter 9 of the MMCM. Applicant also
understands CMS reserves the right to review these materials in the event of
beneficiary complaints or for any other reason it determines to ensure the
information accurately and adequately informs Medicare beneficiaries about their
rights and obligations under the plan. (See the 2017 Solicitation for New
Medicare Advantage Prescription Drug Plan (MA-PD) Sponsors)
10) Applicant understands that its EGWPs is not subject to the requirements regarding
the timing for issuance of certain disclosure materials, such as the Annual Notice
of Change/ Evidence of Coverage (ANOC/EOC), Summary of Benefits (SB),
Formulary, and LIS rider when an employer’s or union’s open enrollment period
does not correspond to Medicare’s Annual Coordinated Election Period. For these

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employers and unions, the timing for issuance of the above disclosure materials
should be appropriately based on the employer/union sponsor’s open enrollment
period. For example, the Annual Notice of Change/Evidence of Coverage
(ANOC/EOC), Summary of Benefits (SB), LIS rider, and Formulary are required
to be received by beneficiaries no later than 15 days before the beginning of the
employer/union group health plan’s open enrollment period. The timing for other
disclosure materials that are based on the start of the Medicare plan (i.e., calendar)
year should be appropriately based on the employer/union sponsor’s plan year.
(Section 3.14.A.11 of the 2017 Solicitation for New Medicare Advantage
Prescription Drug Plan (MA-PD) Sponsors)
11) Applicant understands that the dissemination/disclosure requirements set forth in
42 CFR § 422.111 and 42 CFR § 423.128 do not apply to its EGWPs when the
employer/union sponsor is subject to alternative disclosure requirements (e.g., the
Employee Retirement Income Security Act of 1974 (“ERISA”)) and complies
with such alternative requirements. Applicant complies with the requirements for
this waiver contained in employer/union-only group waiver guidance, including
those requirements contained in Chapter 9 of the MMCM. (Sections 3.14.A.1-2, 9
of the 2017 Solicitation for New Medicare Advantage Prescription Drug Plan
(MA-PD) Sponsors)
12) Applicant understands that its EGWPs are not subject to the Part D beneficiary
customer service call center hours and call center performance requirements.
Applicant has a sufficient mechanism is available to respond to beneficiary
inquiries and provides customer service call center services to these members
during normal business hours. However, CMS may review the adequacy of these
call center hours and potentially require expanded beneficiary customer service
call center hours in the event of beneficiary complaints or for other reasons in
order to ensure that the entity’s customer service call center hours are sufficient to
meet the needs of its enrollee population. (Section 3.14.A.6 of the 2017
Solicitation for New Medicare Advantage Prescription Drug Plan (MA-PD)
Sponsors)
13) Applicant understands that its EGWPs are not subject to the requirements
contained in 42 CFR § 422.64 and 42 CFR § 423.48 to submit information to
CMS, including the requirements to submit information (e.g., pricing and
pharmacy network information) to be publicly reported on www.medicare.gov,
Medicare Plan Finder (“MPF”). (Sections 3.8.A and 3.17.A.14 of the 2017
Solicitation for New Medicare Advantage Prescription Drug Plan (MA-PD)
Sponsors)
14) In order to be eligible for the CMS service area waiver for Local CCPs that allows
an MAO to extend coverage to employer group members outside of its individual
plan service area, applicant attests it has at the time of application or will have at
the time of enrollment, Part C networks adequate to meet CMS requirements and
is able to provide consistent benefits to those beneficiaries, either by itself or

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through partnerships with other MAOs. If applicant is also applying to offer Part
D, applicant attests that such expanded service areas will have convenient Part D
pharmacy access sufficient to meet the needs of these enrollees.
15) MSA employer/union-only group waiver plan applicants understand that they will
be permitted to enroll members through a Special Election Period (SEP) as
specified in Chapter 2, Section 30.4.4.1, of the MMCM.
16) This Certification is deemed to incorporate any changes that are required by
statute to be implemented during the term of the contract, and any regulations and
policies implementing or interpreting such statutory provisions.
17) I have read the contents of the completed application and certify that the
information contained herein is true, correct, and complete. If I become aware that
any information in this appendix is not true, correct, or complete, I agree to notify
CMS immediately and in writing.
18) I authorize CMS to verify the information contained herein. I agree to notify CMS
in writing of any changes that may jeopardize my ability to meet the
qualifications stated in this appendix prior to such change or within 30 days of the
effective date of such change. I understand that such a change may result in
revocation of the approval.
19) I understand that in accordance with 18 U.S.C.§. 1001, any omission,
misrepresentation or falsification of any information contained in this appendix or
contained in any communication supplying information to CMS to complete or
clarify this appendix may be punishable by criminal, civil, or other administrative
actions including revocation of approval, fines, and/or imprisonment under
Federal law.
20) I acknowledge that I am aware that there is operational policy guidance, including
the forthcoming Call Letter, relevant to this appendix that is posted on the CMS
website and that it is continually updated. Organizations submitting an application
in response to this solicitation acknowledge that they will comply with such
guidance at the time of application submission.
I certify that I am an authorized representative, officer, chief executive officer, or
general partner of the business organization that is applying for qualification to offer
EGWPs in association with my organization’s MA contract with CMS. I have read
and agree to comply with the above certifications.
{Entity MUST check box to be considered a complete application.}
{Entity MUST create 800-series PBPs during plan creation and designate EGWP
service areas.}

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7 APPENDIX III: Employer/Union Direct Contract for MA
7.1

Background

The MMA provides employers and unions with a number of options for providing
medical and prescription drug coverage to their Medicare-eligible employees, members,
and retirees. Under the MMA, these options include making special arrangements with
MAOs and Section 1876 Cost Plans to purchase customized benefits, including drug
benefits, for their members; purchasing benefits from sponsors of standalone prescription
drug plans (PDPs); and directly contracting with CMS to become a Direct Contract MA,
MA-PD or PDP sponsor themselves. Each of these approaches involves the use of CMS
waivers authorized under Section 1857(i) or 1860D-22(b) of the SSA. Under this
authority, CMS may waive or modify requirements that “hinder the design of, the
offering of, or the enrollment in” employer or union-sponsored group plans.
Which Applicants Should Complete This Appendix?
This appendix is to be used by employers or unions seeking to contract directly with
CMS to become a Direct Contract MAO for its Medicare-eligible active employees
and/or retirees. A Direct Contract MAO can be a:
i. Coordinated Care Plan (CCP) or
ii. Private Fee-For-Service (PFFS) Plan.
Please follow the application instructions below and submit the required material in
support of your application.
7.2

Instructions

All Direct Contract MA applicants must complete and submit the following:
(1) The 2017 MA Application. This portion of the appendix is submitted electronically
through the HPMS.
(2) The 2017 Part C Financial Solvency & Capital Adequacy Documentation Direct
Contract MA Application. This portion of the appendix is submitted electronically
through HPMS.
(3) The 2017 Direct Contract MA Attestations. This portion of the appendix is submitted
electronically through HPMS. A copy of these attestations is included with this appendix.
(4) The 2017 Request for Additional Waivers/Modification of Requirements (Optional).
This portion of the application is submitted electronically through HPMS. This
submission is optional and should be submitted only if the Direct Contract MA applicant
is seeking new waivers or modifications of CMS requirements.
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All of the above enumerated submissions will comprise a completed application for new
Direct Contract MA applicants. Failure to complete and submit item numbers 1 through 3
above will result in a denial of the Direct Contract MA application (item number 4 is
optional, as noted above).
Please note that in addition to this Appendix, all Direct Contract MA applicants
seeking to contract directly with CMS to offer Part D coverage must also complete
the 2017 Solicitation for Applications for New Medicare Advantage Prescription Drug
Plan (MA-PD) Sponsors and the 2017 Solicitation for Applications for New
Employer/Union Direct Contract Medicare Advantage Prescription Drug Plan (MAPD) Sponsors.
7.3

Request for Additional Waivers/Modification of Requirements (Optional)

Applicants may submit individual waiver/modification requests to CMS. The applicant
should submit these additional waiver/modifications via hard copy in accordance with the
instructions above.
These requests must be identified as requests for additional waivers/modifications and
must fully address the following items:
•

Specific provisions of existing statutory, regulatory, and/or CMS policy
requirement(s) the entity is requesting to be waived/modified (please identify the
specific requirement (e.g., “42 CFR § 422.66,” or “Section 40.4 of Chapter 2 of
the MMCM) and whether you are requesting a waiver or a modification of these
requirements);

•

How the particular requirements hinder the design of, the offering of, or the
enrollment in, the employer-sponsored group plan;

•

Detailed description of the waiver/modification requested including how the
waiver/modification will remedy the impediment (i.e., hindrance) to the design of,
the offering of, or the enrollment in, the employer-sponsored group plan;

•

Other details specific to the particular waiver/modification that would assist CMS
in the evaluation of the request; and

•

Contact information (contract number, name, position, phone, fax and email
address) of the person who is available to answer inquiries about the
waiver/modification request.

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7.4

Attestations

Direct Contract MA Attestations
1.SERVICE AREA REQUIREMENTS
In general, MAOs can cover beneficiaries only in the service areas in which they are state
licensed and approved by CMS to offer benefits. CMS has waived these requirements for
Direct Contract MA applicants (Direct Contract CCP and/or Direct Contract PFFS
MAOs). Applicants can extend coverage to all of their Medicare-eligible
employees/retirees, regardless of whether they reside in one or more other MAO regions
in the nation. In order to provide coverage to retirees wherever they reside, Direct
Contract MA applicants must set their service area to include all areas where retirees may
reside during the plan year (no mid-year service area expansions will be permitted).
Direct Contract MA applicants that offer Part D (i.e., MA-PDs) will be required to submit
pharmacy access information for the entire defined service area during the application
process and demonstrate sufficient access in these areas in accordance with employer
group waiver pharmacy access policy.
I certify that I am an authorized representative, officer, chief executive officer, or
general partner of the business organization that is applying for qualification to offer a
Direct Contract MA plan. I have read, understand, and agree to comply with the above
statement about service areas. If I need further information, I will contact one of the
individuals listed in the instructions for this appendix.
{Entity MUST check box for their application to be considered complete.}
2.CERTIFICATION
All provisions of the 2017 MA Application apply to all plan benefit packages offered by
Direct Contract MAO except where the provisions are specifically modified and/or
superseded by particular employer/union-only group waiver guidance, including those
waivers/modifications set forth below (specific sections of the 2017 MA Application that
have been waived or modified for new Direct Contract MAOs are noted in parentheses).
I, the undersigned, certify to the following:
1) Applicant is applying to offer new employer/union Direct Contract MA plans and
agrees to be subject to and comply with all CMS employer/union-only group waiver
guidance.
2) Applicant understands and agrees that it must complete and submit the 2017 MA
Application in addition to this 2017 Initial Application for Employer/Union Direct
Contract MAOs application in its entirety and the Part C Financial Solvency & Capital
Adequacy Documentation for Direct Contract applicants).

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Note: Applicant understands and agrees that to offer prescription drug benefits, it must
also submit the 2017 Solicitation for Applications for New Medicare Advantage
Prescription Drug Plan (MA-PD) Sponsors and the 2017 Solicitation for Applications for
New Employer/Union Direct Contract Medicare Advantage Prescription Drug Plan (MAPD) Sponsors.
3) In general, an MAO must be organized and licensed under state law as a risk-bearing
entity eligible to offer health insurance or health benefits coverage in each state in which
it offers coverage (42 CFR § 422.400). However, CMS has waived the state licensing
requirement for all Direct Contract MAOs. As a condition of this waiver, applicant
understands that CMS will require such entities to meet the financial solvency and capital
adequacy standards contained in this appendix. (See State Licensure Section of the 2017
MA Application)
4) Applicant agrees to restrict enrollment in its Direct Contract MA plans to those
Medicare-eligible individuals eligible for the employer’s/union’s employment-based
group coverage.
5) In general, MAOs must meet minimum enrollment standards as set forth in 42 CFR §
422.514(a). Applicant understands that it will not be subject to the minimum enrollment
requirements set forth in 42 CFR § 422.514(a).
6) Applicant understands that dissemination/disclosure materials for its Direct Contract
MAO plans are not subject to the requirements contained in 42 CFR § 422.2262 to be
submitted for review and approval by CMS prior to use. However, applicant agrees to
submit these materials to CMS at the time of use in accordance with the procedures
outlined in Chapter 9 of the MMCM. Applicant also understands that CMS reserves the
right to review these materials in the event of beneficiary complaints, or for any other
reason it determines, to ensure the information accurately and adequately informs
Medicare beneficiaries about their rights and obligations under the plan. (See Medicare
Operations Section of the 2017 MA Application)
7) Applicant understands that its Direct Contract MA plans will not be subject to the
requirements regarding the timing for issuance of certain disclosure materials, such as the
Annual Notice of Change/ Evidence of Coverage (ANOC/EOC), Summary of Benefits
(SB), Formulary, and LIS rider when an employer’s or union’s open enrollment period
does not correspond to Medicare’s Annual Coordinated Election Period. For these
employers and unions, the timing for issuance of the above disclosure materials should be
appropriately based on the employer/union sponsor’s open enrollment period. For
example, the Annual Notice of Change/Evidence of Coverage (ANOC/EOC), Summary
of Benefits (SB), LIS rider, and Formulary are required to be received by beneficiaries no
later than 15 days before the beginning of the employer/union group health plan’s open
enrollment period. The timing for other disclosure materials that are based on the start of
the Medicare plan (i.e., calendar) year should be appropriately based on the
employer/union sponsor’s plan year. (See Medicare Operations Section of the 2017 MA
Application)

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8) Applicant understands that the dissemination/disclosure requirements set forth in 42
CFR § 422.111 will not apply to its Direct Contract MA plans when the employer/union
sponsor is subject to alternative disclosure requirements (e.g., ERISA) and complies with
such alternative requirements. Applicant agrees to comply with the requirements for this
waiver contained in employer/union-only group waiver guidance, including those
requirements contained in Chapter 9 of the MMCM. (See Medicare Operations Section
3.13 of the 2017 MA Application)
9) Applicant understands that its Direct Contract MA plans are not subject to the MA
beneficiary customer service call center hours and call center performance requirements.
Applicant has a sufficient mechanism available to respond to beneficiary inquiries
and will provide customer service call center services to these members during normal
business hours. However, CMS may review the adequacy of these call center hours and
potentially require expanded beneficiary customer service call center hours in the event
of beneficiary complaints or for other reasons in order to ensure that the entity’s customer
service call center hours are sufficient to meet the needs of its enrollee population. (See
Medicare Operations Section of the 2017 MA Application)
10) Applicant understands that its Direct Contract MA plans are not subject to the
requirements contained in 42 CFR § 422.64 to submit information to CMS, including the
requirements to submit information (e.g., pricing and provider network information) to be
publicly reported on http://www.medicare.gov (Medicare Options Compare).
11) Applicant understands that the management and operations requirements of 42 CFR §
422.503(b)(4)(i)-(iii) are waived if the employer or union (or to the extent applicable, the
business associate with which it contracts for benefit services) is subject to ERISA
fiduciary requirements or similar state or federal law standards. However, such entities
(or their business associates) are not relieved from the record retention standards
applicable to other MAOs set forth in 42 CFR 422.504(d). (See Fiscal Soundness Section
of the 2017 MA Application)
12) In general, MAOs must report certain information to CMS, to their enrollees, and to
the general public (such as the cost of their operations and financial statements) under 42
CFR § 422.516(a). Applicant understands that in order to avoid imposing additional and
possibly conflicting public disclosure obligations that would hinder the offering of
employer sponsored group plans, CMS modifies these reporting requirements for Direct
Contract MAOs to allow information to be reported to enrollees and to the general public
to the extent required by other laws (including ERISA or securities laws) or by contract.
13) In general, MAOs are not permitted to enroll beneficiaries who do not meet the MA
eligibility requirements of 42 CFR § 422.50(a), which include the requirement to be
entitled to Medicare Part A. (42 CFR § 422.50(a)(1)). Applicant understands that under
certain circumstances, as outlined in section 30.1.4 of Chapter 9 of the MMCM, Direct
Contract MAOs are permitted to enroll beneficiaries who are not entitled to Medicare

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Part A into Part B-only plan benefit packages. (See Medicare Operations Section of the
2017 MA Application)
14) In general, MAOs are not permitted to enroll beneficiaries who have end-stage renal
disease (ESRD). Applicant understands that under certain circumstances, as outlined in
section 20.2.3 of Chapter 2 of the MMCM, Direct Contract MAOs are permitted to enroll
beneficiaries who have ESRD. (See Medicare Operations Section of the 2017 MA
Application)
15) This Certification is deemed to incorporate any changes that are required by statute to
be implemented during the term of the contract, and any regulations and policies
implementing or interpreting such statutory provisions.
16) I have read the contents of the completed application and the information contained
herein is true, correct, and complete. If I become aware that any information in this
appendix is not true, correct, or complete, I agree to notify CMS immediately and in
writing.
17) I authorize CMS to verify the information contained herein. I agree to notify CMS in
writing of any changes that may jeopardize my ability to meet the qualifications stated in
this appendix prior to such change or within 30 days of the effective date of such change.
I understand that such a change may result in revocation of the approval.
18) I understand that in accordance with 18 U.S.C.§.§ 1001, any omission,
misrepresentation or falsification of any information contained in this appendix or
contained in any communication supplying information to CMS to complete or clarify
this appendix may be punishable by criminal, civil, or other administrative actions,
including revocation of approval, fines, and/or imprisonment under Federal law.
19) I acknowledge that I am aware that there is operational policy guidance, including the
forthcoming Call Letter, relevant to this appendix that is posted on the CMS website and
that it is continually updated. Organizations submitting an application in response to this
solicitation acknowledge that they will comply with such guidance should they be
approved to offer employer/union-only group waiver plans in association with the
organization’s MA contract with CMS.
I certify that I am an authorized representative, officer, chief executive officer, or
general partner of the business organization that is applying for qualification to offer a
Direct Contract MAO plan. I have read and agree to comply with the above certifications.
{Entity MUST check box for their application to be considered complete.}

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7.5

Part C Financial Solvency & Capital Adequacy Documentation For Direct
Contract MAO applicants:

Background and Instructions
An MAO generally must be licensed by at least one state as a risk-bearing entity
(42 CFR 422.400). CMS has waived the requirement for Direct Contract MAOs.
Direct Contract MAOs are not required to be licensed, but must meet CMS MA
Part C financial solvency and capital adequacy requirements. Each Direct
Contract MAO applicant must demonstrate that it meets the financial solvency
requirements set forth in this appendix and provide all required information set
forth below. CMS has the discretion to approve, on a case-by-case basis, waivers
of such requirements if the Direct Contract MAO can demonstrate that its fiscal
soundness is commensurate with its financial risk and that through other means
the entity can ensure that claims for benefits paid for by CMS and beneficiaries
will be covered. In all cases, CMS will require that the employers’/unions’
contracts and sub-contracts provide beneficiary hold-harmless provisions.
The information required in this Appendix must be submitted in hardcopy in
accordance with the instructions above.
I. EMPLOYER/UNION ORGANIZATIONAL INFORMATION
A. Complete the information in the table below.
INDENTIFY YOUR ORGANIZATION BY PROVIDING THE FOLLOWING INFORMATION:
Type of DIRECT CONTRACT MEDICARE ADVANTAGE PLAN requested (Check all that apply):
Coordinated Care Plan :

HMO/POS

LPPO

Open Access (Non-Network) PFFS Plan
Contracted Network PFFS Plan
Organization’s Full Legal Name:

Full Address Of Your Organization’s Headquarters (Street, City, State, Zip):

Tax Status: For Profit

Not For Profit

Is Applicant Subject To ERISA? Yes

Type Of Entity (Check All That Apply) :
Employer

Labor Union

Publicly-Traded Corporation

Fund Established by One or More Employers or Labor Organizations
Privately-Held Corporation

Government

Church Group

Other (list Type) _____________________________________________

Name of Your Organization’s Parent Organization, if any:

State in Which your Organization is Incorporated or Otherwise Organized to do Business:

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B. Summary Description
Briefly describe the organization in terms of its history and its present operations. Cite
significant aspects of its current financial, general management, and health services
delivery activities. Please include the following:
A.

The size of the Medicare population currently served by the applicant, and
if any, the maximum number of Medicare beneficiaries that could be
served by a Direct Contract MAO.
B. The manner in which benefits are currently provided to the current
Medicare population served by the applicant, and if any, the number of
beneficiaries in each employer sponsored group option currently made
available by the Direct Contract MAO applicant and how these options are
currently funded (i.e., self-funded or fully insured).
C. The current benefit design for each of the options described in B above,
including premium contributions made by the employer and/or the retiree,
deductibles, co-payments, or co-insurance, etc. (applicant may attach a
summary plan description of its benefits or other relevant materials
describing these benefits.)
D. Information about other Medicare contracts held by the applicant, (i.e.,
1876, fee for service, PPO, etc.). Provide the names and contact
information for all CMS personnel with whom applicant works on their
other Medicare contract(s).
E. The factors that are most important to applicant in deciding to apply to
become a Direct Contract MAO for its retirees and how becoming a Direct
Contract MAO will benefit the applicant and its retirees.

C. If the applicant is a state agency, labor organization, or a trust established by one
or more employers or labor organizations, applicant must provide the required
information listed below:
State Agencies:
If applicant is a state agency, instrumentality or subdivision, please provide the
relationship between the entity that is named as the Direct Contract MAO applicant and
the state or commonwealth with respect to which the Direct Contract MAO applicant is
an agency, instrumentality or subdivision. Also, applicant must provide the source of
applicants revenues, including whether applicant receives appropriations and/or has the
authority to issue debt.
Labor Organizations:
If applicant is a labor organization, including a fund or trust, please provide the
relationship (if any) between applicant and any other related labor organizations such as
regional, local or international unions, or welfare funds sponsored by such related labor

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organizations. If applicant is a jointly trusted Taft-Hartley fund, please include the names
and titles of labor-appointed and management-appointed trustees.
Trusts:
If applicant is a trust such as a voluntary employee beneficiary association under Section
501(c)(9) of the Internal Revenue Code, please provide the names of the individual
trustees and the bank, trust company or other financial institution that has custody of
applicants assets.
D. Policymaking Body (42 CFR 422.503(b)(4)(i)-(iii)
In general, an entity seeking to contract with CMS as a Direct Contract MAO must have
policymaking bodies exercising oversight and control to ensure actions are in the best
interest of the organization and its enrollees, appropriate personnel and systems relating
to medical services, administration and management, and at a minimum an executive
manager whose appointment and removal are under the control of the policymaking
body.
An employer or union directly contracting with CMS as a Direct Contract MAO may be
subject to other, potentially different standards governing its management and operations,
such as the Employee Retirement Income Security Act of 1974 (“ERISA”) fiduciary
requirements, state law standards, and certain oversight standards created under the
Sarbanes-Oxley Act. In most cases, they will also contract with outside vendors (i.e.,
business associates) to provide health benefit plan services. To reflect these issues and
avoid imposing additional (and potentially conflicting) government oversight that may
hinder employers and unions from considering applying to offer Direct Contract MA
Plans, the management and operations requirements under 42 CFR 422.503(b)(4)(i)-(iii)
are waived if the employer or union (or to the extent applicable, the business associate
with which it contracts for health benefit plan services) is subject to ERISA fiduciary
requirements or similar state or federal laws and standards. However, such entities (or
their business associates) are not relieved from the record retention standards applicable
to other MAOs.
In accordance with the terms of this waiver, please provide the following information:
A. List the members of the organization's policymaking body (name, position,
address, telephone number, occupation, term of office and term expiration date).
Indicate whether any of the members are employees of the applicant.
B. If the applicant is a line of business rather than a legal entity, does the Board of
Directors of the corporation serve as the policymaking body of the organization?
If not, describe the policymaking body and its relationship to the corporate
board.

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C. Does the Federal Government or a state regulate the composition of the
policymaking body? If yes, please identify all Federal and state regulations that
govern your policymaking body (e.g., ERISA).
II. FINANCIAL SOLVENCY
A. Please provide a copy of the applicants most recent independently certified
audited statements.
B. Please submit an attestation signed by the Chairman of the Board, Chief
Executive Officer and Chief Financial Officer or Trustee or other equivalent
official attesting to the following:
1. The applicant will maintain a fiscally sound operation and will notify CMS
within 10 business days if it becomes fiscally unsound during the contract
period.
2. The applicant is in compliance with all applicable Federal and state
requirements and is not under any type of supervision, corrective action
plan, or special monitoring by the Federal or state government or a state
regulator. Note: If the applicant cannot attest to this compliance, a
written statement of the reasons must be provided.
III. FINANCIAL DOCUMENTATION
A. Minimum Net Worth at the Time of Application - Documentation of
Minimum Net Worth
At the time of application, the applicant must demonstrate financial solvency
through furnishing two years of independently audited financial statements to
CMS. These financial statements must demonstrate a required minimum net
worth at the time of application of the greater of $3.0 million or the number of
expected individuals to be covered under the Direct Contract MAO Plan times (X)
$800.00. Complete the following:
1. Minimum Net Worth: $
2. Number of expected individuals to be covered under the Direct Contract
MAO Plan times (X) $800.00 = $______________________.
Note: If the Direct Contract MAO applicant is also applying to offer a Direct
Contract MAO that provides Part D coverage (i.e., MA-PD), it must
complete and submit the corresponding Direct Contract MA-PD application
with this appendix and meet the Part D Minimum Net Worth requirements
stated in the separate Direct Contract MA-PD application.
If the applicant has not been in operation at least twelve months, it may choose to:
1) obtain independently audited financial statements for a shorter time period; or
2) demonstrate that it has the minimum net worth through presentation of un2017 Part C Application

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audited financial statements that contain sufficient detail to allow CMS to verify
the validity of the financial presentation. The un-audited financial statements must
be accompanied by an actuarial opinion from a qualified actuary regarding the
assumptions and methods used in determining loss reserves, actuarial liabilities
and related items.
A “qualified actuary” for purposes of this appendix means a member in good
standing of the American Academy of Actuaries, a person recognized by the
Academy as qualified for membership, or a person who has otherwise
demonstrated competency in the field of actuarial science and is satisfactory to
CMS.
If the Direct Contract MAO applicants auditor is not one of the 10 largest national
accounting firms in accordance with the list of the 100 largest public accounting
firms published by the CCH Public Accounting Report, the applicant should
enclose proof of the auditor’s good standing from the relevant state board of
accountancy.
A. Minimum Net Worth On and After Effective Date of Contract
The applicant must have net worth as of the effective date of the contract of the
greatest of the following financial thresholds; $3.0 Million; or, an amount equal
to eight percent of annual health care expenditures, using the most recent financial
statements filed with CMS; or the number of expected individuals to be covered
under the Direct Contract MAO Plan times (X) $800.00.
B. Liquidity at the Time of Application ($1.5 Million)
The applicant must have sufficient cash flow to meet its financial obligations as
they become due. The amount of the minimum net worth requirement to be met
by cash or cash equivalents is $1.5 Million. Cash equivalents are short-term
highly liquid investments that can be readily converted to cash. To be classified as
cash equivalents, investments must have a maturity date not longer than three
months from the date of purchase.
Note: If the Direct Contract MAO applicant is also applying to offer a Direct
Contract MA Plan that provides Part D coverage (i.e., MA-PD), it must
complete and submit the corresponding Direct Contract MA-PD application
and meet the Part D Liquidity requirements stated in the separate Direct
Contract MA-PD application.
C. Liquidity On and After Effective Date of Contract
After the effective date of the contract, an applicant must maintain the greater of
$1.5 Million or 40 percent of the minimum net worth requirement outlined in
Section III.B above in cash or cash equivalents.

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In determining the ability of an applicant to meet the requirements of this
paragraph D, CMS will consider the following:
1. The timeliness of payment;
2. The extent to which the current ratio is maintained at 1:1 or greater, or
whether there is a change in the current ratio over a period of time; and
3. The availability of outside financial resources.
CMS may apply the following corresponding corrective remedies:
1. If a Direct Contract MAO fails to pay obligations as they become due, CMS
will require the Direct Contract MAO to initiate corrective action to pay all
overdue obligations.
2. CMS may require the Direct Contract MAO to initiate corrective action if
either of the following is evident:
(a) The current ratio declines significantly; or
(b) There is a continued downward trend in the current ratio.
The corrective action may include a change in the distribution of assets, a
reduction of liabilities, or alternative arrangements to secure additional
funding to restore the current ratio to at least 1:1.
3. If there is a change in the availability of outside resources, CMS will require
the Direct Contract MAO to obtain funding from alternative financial
resources.
D. Methods of Accounting
A Direct Contract MAO applicant generally must use the standards of Generally
Accepted Accounting Principles (GAAP). GAAP are those accounting principles
or practices prescribed or permitted by the Financial Accounting Standards Board.
However, a Direct Contract MAO whose audited financial statements are
prepared using accounting principles or practices other than GAAP, such as a
governmental entity that reports in accordance with the principles promulgated by
the Governmental Accounting Standards Board (GASB), may utilize such
alternative standard.
E. Bonding and Insurance
An applicant may request a waiver in writing of the bonding and/or insurance
requirements set forth at 42 CFR 422.503(b)(4)(iv) and (v). Relevant
considerations will include demonstration that either or both of the foregoing
requirements are unnecessary based on the entity’s individualized circumstances,
including maintenance of similar coverage pursuant to other law, such as the
bonding requirement at ERISA Section 412. If the waiver request is based on the
existence of alternative coverage, the applicant must describe such alternative
coverage and enclose proof of the existence of such coverage.

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F. Additional Information
A Direct Contract MAO applicant must furnish the following financial information
to CMS to the extent applicable:
1. Self-Insurance/Self Funding- If the Direct Contract MAO applicants PFFS
Plan(s) will be self-insured or self-funded, it must forward proof of stop-loss
coverage (if any) through copies of policy declarations.
2. Trust- If the Direct Contract MAO applicant maintains one or more trusts with
respect to its health plan(s), a copy of the trust documents, and if the trust is
intended to meet the requirements of Section 501(c)(9) of the Internal Revenue
Code, the most recent IRS approval letter.
3. Forms 5500 and M-1- The two most recent annual reports on Forms 5500 and
M-1 (to the extent applicable) for the Direct Contract MAO applicants health
plans that cover prescription drugs for individuals who are Part D eligible.
4. ERISA Section 411(a) Attestation- The Direct Contract MAO (including a
Direct Contract MAO that is exempt from ERISA) must provide a signed
attestation that no person serves as a fiduciary, administrator, trustee, custodian,
counsel, agent, employee, consultant, adviser or in any capacity that involves
decision-making authority, custody, or control of the assets or property of any
employee benefit plan sponsored by the Direct Contract MAO applicant, if he or
she has been convicted of, or has been imprisoned as a result of his or her
conviction, of one of the felonies set forth in ERISA Section 411(a), for 13
years after such conviction or imprisonment (whichever is later).
5. Defined Benefit Pension Plan- If the Direct Contract MAO applicant sponsors
one or more defined benefit pension plans (within the meaning of ERISA
Section 3(35)) that is subject to the requirements of Title IV of ERISA, the
latest actuarial report for each such plan.
6. Multi-Employer Pension Plan- If the Direct Contract MAO applicant is a
contributing employer with respect to one or more multi-employer pension
plans within the meaning of ERISA Section 3(37), the latest estimate of
contingent withdrawal liability.
7. Tax-Exempt Direct Contract MAOs (Only)- a copy of the most recent IRS
tax-exemption.
IV. INSOLVENCY REQUIREMENTS
A. Hold Harmless and Continuation of Coverage/Benefits.
The Direct Contract MAO shall be subject to the same hold harmless and
continuation of coverage/benefit requirements as other MAOs.
B. Deposit Requirements - Deposit at the Time of Application

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A Direct Contract MAO generally must forward confirmation of its
establishment and maintenance of a deposit of at least $1.0 Million to be held in
accordance with CMS requirements by a qualified U.S. financial institution. A
“qualified financial institution” means an institution that:
1. Is organized or (in the case of a U.S. office of a foreign banking
organization) licensed, under the laws of the United States or any state
thereof; and
2. Is regulated, supervised, and examined by the U.S. Federal or state
authorities having regulatory authority over banks and trust companies.
The purpose of this deposit is to help ensure continuation of services, protect the
interest of Medicare enrollees, and pay costs associated with any receivership or
liquidation. The deposit may be used to satisfy the minimum net worth
requirement set forth in Section III above.
A Direct Contract MAO may request a waiver in writing of this requirement.
Note: In addition to the requirements in this appendix, if the Direct
Contract MAO is also applying to offer a Direct Contract MA Plan that
provides Part D coverage (i.e., MA-PD), it must complete and submit the
corresponding Direct Contract MA-PD application within this appendix
and meet the Part D Deposit requirements stated in the separate Direct
Contract MA-PD application.
Deposit On and After Effective Date of Contract
Based on the most recent financial statements filed with CMS, CMS will
determine the adequacy of the deposit under this Section and inform the Direct
Contract MAO as to the necessity for any increased deposit. Factors CMS will
consider shall include the total amount of health care expenditures during the
applicable period, the amount of expenditures that are uncovered, and the length
of time necessary to pay claims.
Rules Concerning Deposit
1. The deposit must be held in trust and restricted for CMS’ use in the event of
insolvency to pay related costs and/or to help ensure continuation of services.
2. All income from the deposit are considered assets of the Direct Contract MAO
and may be withdrawn from the deposit upon CMS’ approval. Such approval
is not to be withheld unreasonably.
3. On prior written approval from CMS, a Direct Contract MAO that has made a
deposit under this Section may withdraw such deposit or any part thereof if:
(a) a substitute deposit of cash or securities of equal amount and value is
made;

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(b) the fair market value of the assets held in trust exceeds the required
amount for the deposit; or
(c) the required deposit is reduced or eliminated.
V.

GUARANTEES (only applies to an applicant that utilizes a Guarantor)
A. General policy
The Direct Contract PFFS MAO, or the legal entity of which the Direct Contract
PFFS MAO is a component, may apply to CMS to use the financial resources of a
Guarantor for the purpose of meeting the requirements of a Direct Contract MAO
set forth above. CMS has the sole discretion to approve or deny the use of a
Guarantor.
B. Request to Use a Guarantor
To apply to use the financial resources of a Guarantor, a Direct Contract MAO must
submit to CMS:
1.

Documentation that the Guarantor meets the requirements for a Guarantor
under paragraph (C) of this section; and

The Guarantor's independently audited financial statements for the current
year-to-date and for the two most recent fiscal years. The financial statements
must include the Guarantor's balance sheets, profit and loss statements, and
cash flow statements.

C. Requirements for Guarantor
To serve as a Guarantor, an organization must meet the following requirements:
1. Be a legal entity authorized to conduct business within a state of the United
States.
2. Not be under Federal or state bankruptcy or rehabilitation proceedings.
3. Have a net worth (not including other guarantees, intangibles and restricted
reserves) equal to three times the amount of the Direct Contract PFFS MAO
guarantee.
4. If a state insurance commissioner or other state official with authority for riskbearing entities regulates the Guarantor, it must meet the net worth requirement
in Section III above with all guarantees and all investments in and loans to
organizations covered by guarantees excluded from its assets.

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5. If the Guarantor is not regulated by a state insurance commissioner or other
similar state official, it must meet the net worth requirement in Section III above
with all guarantees and all investments in and loans to organizations covered by
a guarantee and to related parties (subsidiaries and affiliates) excluded from its
assets.
D. Guarantee Document
If the guarantee request is approved, a Direct Contract MAO must submit to CMS a
written guarantee document signed by an appropriate Guarantor. The guarantee
document must:
1. State the financial obligation covered by the guarantee;
2. Agree to:
(a) Unconditionally fulfill the financial obligation covered by the guarantee;
and
(b) Not subordinate the guarantee to any other claim on the resources of the
Guarantor;
3. Declare that the Guarantor must act on a timely basis, in any case not more
than five business days, to satisfy the financial obligation covered by the
guarantee; and
4. Meet any other conditions as CMS may establish from time to time.
E. Ongoing Guarantee Reporting Requirements
A Direct Contract MAO must submit to CMS the current internal financial
statements and annual audited financial statements of the Guarantor according to
the schedule, manner, and form that CMS requires.
F. Modification, Substitution, and Termination of a Guarantee
A Direct Contract MAO cannot modify, substitute or terminate a guarantee unless
the Direct Contract MAO:
1. Requests CMS' approval at least 90 days before the proposed effective date of
the modification, substitution, or termination;
2. Demonstrates to CMS' satisfaction that the modification, substitution, or
termination will not result in insolvency of the Direct Contract MAO; and
3. Demonstrates how the Direct Contract MAO will meet the requirements of
this Section.
G. Nullification
If at any time the Guarantor or the guarantee ceases to meet the requirements of
this section, CMS will notify the Direct Contract MAO that it ceases to recognize

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the guarantee document. In the event of this nullification, a Direct Contract MAO
must:
1. Meet the applicable requirements of this section within 15 business days; and
2. If required by CMS, meet a portion of the applicable requirements in less than
the 15 business days in paragraph (G.1.) of this section.
VI. ONGOING FINANCIAL SOLVENCY/CAPITAL ADEQUACY REPORTING
REQUIREMENTS
An approved Direct Contract MAO is required to update the financial information set
forth in Sections III and IV above to CMS on an ongoing basis. The schedule,
manner, form and type of reporting, will be in accordance with CMS requirements.

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8 APPENDIX IV: Medicare Cost Plan Service Area
Expansion Application
8.1

State Licensure

To ensure that all Cost Plan contractors operate in compliance with state and federal
regulations, CMS requires Cost Plan contractors to be licensed under state law. This will
ensure that Cost Plan contractors adhere to state regulations aimed at protecting Medicare
beneficiaries. The following attestations were developed based on regulations at 42 CFR
417.404.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: STATE LICENSURE

YES

1. Applicant is licensed under State law as a riskbearing entity eligible to offer health insurance or
health benefits coverage in each State in which
the applicant proposes to offer the managed care
product. In addition, the scope of the license or
authority allows the applicant to offer the type of
managed care product that it intends to offer in
the state or states.
•

If “Yes”, upload in HPMS an executed
copy of a state license certificate and the
CMS State Certification Form for each
state being requested.

•

Note: Applicant must meet and document
all applicable licensure and certification
requirements no later than the applicants
final upload opportunity, which is in
response to CMS’ NOID communication.
2. Applicant is currently under some type of
supervision, corrective action plan or special
monitoring by the State licensing authority in any
State. This means that the applicant has to
disclose actions in any state against the legal
entity which filed the application.
•

If “Yes”, upload in HPMS an explanation

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N/A

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: STATE LICENSURE

YES

N/A

of the specific actions taken by the State
licensing authority.
3. Applicant conducts business as "doing business
as" (d/b/a) or uses a name different than the name
shown on its Articles of Incorporation.
•

If “Yes”, upload in HPMS a copy of the
state approval for the d/b/a.
4. For states or territories whose license(s) renew
after the first Monday in June, applicant agrees to
(1) upload, in addition to the current license, a
copy of its completed license renewal application
or other documentation (e.g., invoice from
payment of renewal fee, invoice from prior year
for licenses which renew late in the calendar year
to show when and how they renewed the previous
year; emails between the applicant and the State
verifying the process is being followed) to show
that the renewal process is being completed in a
timely manner, and (2) electronically send a copy
of the renewed license to the CMS Regional
Office Account Manager promptly upon issuance
and no later than 12/31/16.
•Note: If the applicant does not have a license that
renews after the first Monday in June, then the
applicant should respond "N/A".
5. Applicant has marketing representatives and/or
agents who are licensed or regulated by the State
in which the proposed service area is located.
• If the State in which the proposed service
area is located doesn’t require marketing
representatives/agents to be licensed,
applicant should respond “N/A”.
B. In HPMS, upload an executed copy of the State Licensing Certificate and the CMS
State Certification Form for each state being requested, if applicant answers “Yes” to
the corresponding question above.

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C. In HPMS, upload the State Corrective Plans / State Monitoring Explanation (as
applicable), if applicant answers “Yes” to the corresponding question above.
D. In HPMS, upload the State Approval for d/b/a, if applicant answers “Yes” to the
corresponding question above.
8.2

Service Area

The purpose of the service area attestation is to clearly define which areas will be served
by the MAO. A service area for local plans is defined as a geographic area composed of a
county or multiple counties, while a service area for MA regional plans is a region
approved by CMS. The following attestation was developed to implement the regulations
of 42 CFR 422.2.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: SERVICE AREA

YES

1. Applicant meets the county integrity rule as outlined in
Chapter 4 of the MMCM and will serve the entire county.
•

If "No”, complete CMS’ Partial County Justification
document.
Note: Applicant may only designate or request a partial county service area during
the initial SAE application submission.
B. In HPMS, on the Contract Management/Contract Service Area/Service Area Data
page, enter the state and county information for the area the applicant proposes to
serve. Applicants that do not meet the county integrity rule and applying for a partial
county must complete CMS’ Partial County Justification document.
8.3

CMS Provider Participation Contracts & Agreements

This section contains attestations that address the requirements of 42 CFR 417.472 which
requires that MAOs have oversight for contractors, subcontractors, and other entities.
The intent of the regulations is to ensure services provided by these parties meet
contractual obligations, laws, regulations and CMS instructions. The MAO is held
responsible for compliance of its providers and subcontractors with all contractual, legal,
regulatory, and operational obligations. Beneficiaries shall be protected from payment or
fees that are the obligation of the MAO. Further guidance is provided in Chapter 11 of
the MMCM.

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A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: PROVIDER CONTRACTS AND
AGREEMENTS

YES

1. Applicant has executed provider, facility, and supplier
contracts in place to demonstrate adequate access and
availability of covered services throughout the requested
service area.
2. Applicant agrees to have all provider contracts and/or
agreements available upon request.
8.4

Contracts for Administrative & Management Services

This section describes the requirements the applicant must demonstrate to ensure any
contracts for administrative/management services comply with the requirements of all
Medicare laws, regulations, and CMS instructions in accordance with 42 CFR 417.412.
Further guidance is provided in Chapter 11 of the MMCM.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: CONTRACTS FOR ADMINISTRATIVE
MANAGEMENT SERVICES

YES

1. Applicant has contracts with related entities, contractors and
subcontractors (first tier, downstream, and related entities) to
perform, implement or operate any aspect of the Cost Plan
operations.
2. Applicant has administrative/management contract/agreement
with a delegated entity to manage/handle all staffing needs
with regards to the operation of all or a portion of the Cost
Plan.
3. Applicant has an administrative/management
contract/agreement with a delegated entity to perform all or a
portion of the systems or information technology to operate
the Cost Plan.
4. Applicant has an administrative/management
contract/agreement with a delegated entity to perform all or a

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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE FOLLOWING
STATEMENTS: CONTRACTS FOR ADMINISTRATIVE
MANAGEMENT SERVICES

YES

portion of the claims administration, processing and/or
adjudication functions.
5. Applicant has an administrative/management
contract/agreement with a delegated entity to perform all or a
portion of the enrollment, disenrollment and membership
functions.
6. Applicant has an administrative/management
contract/agreement with a delegated entity to perform any
and/or all marketing including delegated sales broker and
agent functions.
7. Applicant has an administrative/management
contract/agreement with a delegated entity to perform all or a
portion of the credentialing functions.
8. Applicant has an administrative/management
contract/agreement with a delegated entity to perform all or a
portion of call center operations.
9. Applicant has an administrative/management
contract/agreement with a delegated entity to perform all or a
portion of the financial services.
10. Applicant has an administrative/management
contract/agreement with a delegated entity to delegate all or a
portion of other services that are not listed.
11. Applicant agrees that as it implements, acquires, or upgrades
health information technology (HIT) systems, where
available, the HIT systems and products will meet standards
and implementation specifications adopted under section
3004 of the Public Health Services Act as added by section
13101 of the American Recovery and Reinvestment Act of
2009, P.L. 111-5.
B. In HPMS, enter the Delegated Business Functions under the Part C Data Link.
Note: If the applicant plans to delegate a specific function but cannot at this time
name the entity with which the applicant will contract, enter "Not Yet Determined" so
that CMS is aware of the applicants plans to delegate that function. If the applicant
delegates a particular function to a number of different entities (e.g., claims
processing to multiple medical groups), then list the five most significant entities for
each delegated business function identified and in the list for the sixth, enter
"Multiple Additional Entities".

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8.5

Health Services Management & Delivery

The purpose of the Health Service Management and Delivery attestations is to ensure that
all applicants deliver timely and accessible health services for Medicare beneficiaries.
CMS recognizes the importance of ensuring continuity of care and developing policies
for medical necessity determinations. In efforts to accomplish this, Cost Plan contractors
will be required to select, evaluate, and credential providers that meet CMS’ standards, in
addition, to ensuring the availability of a range of providers necessary to meet the health
care needs of Medicare beneficiaries. The following attestations were developed to
implement the regulations of 42 CFR 417.414, 417.416.
A. In HPMS, complete the table below:

RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: HEALTH SERVICES
MANAGEMENT AND DELIVERY

YES

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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: HEALTH SERVICES
MANAGEMENT AND DELIVERY

YES

d. Effectively addressing and overcoming barriers to
enrollee compliance with prescribed treatments and
regimens; and
e. Addressing diverse patient populations in a
culturally competent manner.
Applicant agrees to establish policies, procedures, and
standards that:
a. Ensure and facilitate the availability, convenient
and timely access to all Medicare covered services
as well as any supplemental services offered by the
MAO;
b. Ensure access to medically necessary care and the
development of medically necessary individualized
care plans for enrollees;
c. Promptly and efficiently coordinate and facilitate
access to clinical information by all providers
involved in delivering the individualized care plan
of the enrollee;
d. Communicate and enforce compliance by providers
with medical necessity determinations; and
e. Do not discriminate against Medicare enrollees.
Applicant has verified that contracted providers included
in the MA Facility Table are Medicare certified and the
applicant certifies that it will only contract with Medicare
certified providers in the future.
Applicant agrees to provide all services covered by
Medicare Part A and Part B and to comply with CMS
national coverage determinations, general coverage
guidelines included in Original Medicare manuals and
instructions, and the written coverage decisions of local
Medicare contractors with jurisdiction for claims in the
geographic service area covered by the MAO.
Applicant agrees that it will provide all medically
necessary transplant services to its Medicare enrollees in
full agreement with the CMS guidance found in Chapter 4,
Benefits and Beneficiary Protections, Medicare Managed
Care Manual at 10.11.
Applicants offering coordinated care plans agree that when
providing transplant services at clinical locations outside
of the plan’s service area, in accordance with the

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RESPOND ‘YES’ OR ‘NO’ TO EACH OF THE
FOLLOWING STATEMENTS: HEALTH SERVICES
MANAGEMENT AND DELIVERY

YES

MA Provider Table
MA Facility Table
Part C Application Certification

A. In HPMS, upload a completed and signed Adobe.pdf format copy of the Part C
Application Certification Form.
Note: Once the Part C application is complete, applicants seeking to offer a Part D plan
must complete the Part D application in HPMS. PFFS and Cost Plan SAE organizations
have the option to offer Part D plans. MSAs are not allowed to offer Part D plans.

8.7

Full Financial Risk
A. In HPMS, upload a description of any risk sharing with providers and provide
physician incentive plans (PIP) disclosure for the new providers in the expanded
areas.

8.8

Budget Forecast
A. In HPMS, upload a copy of the Cost Budget for the expanded service area.

Note: The cost budget must be based on the Cost plan financial and statistical records that
can be verified by qualified auditors. The cost data must be based on an approved method
of cost finding and on the accrual method of accounting.

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File Type	application/pdf
File Title	PART 1 GENERAL INFORMATION
Author	Emmanuelle Goodrich
File Modified	2015-09-18
File Created	2015-09-18