New Jersey Administrative Code
Title 10 - HUMAN SERVICES
Chapter 74 - MANAGED HEALTH CARE SERVICES FOR MEDICAID/NJ FAMILYCARE BENEFICIARIES
Subchapter 14 - CONTRACT SANCTIONS
Section 10:74-14.1 - Contract sanctions
Current through Register Vol. 56, No. 18, September 16, 2024
(a) Provisions under federal law relating to imposition of penalties upon providers of health care services can be found at Section 1903(m)(5)(A) of the Social Security Act.
(b) Monetary damages shall be imposed by DHS for failure of the contractor to comply with the timeliness and accuracy of claims processing; timeliness and accuracy of data submittals; contract terms and conditions; performance standards; and any losses of funds incurred by the State due to the contractor's non-compliance. (See 42 U.S.C. § 1396b(m)(5)(A); 30:4D-1; N.J.A.C. 10:49-1 and 10:49-11.)
(c) The contractor shall submit a corrective action plan for any deficiency identified by the Department. The contractor shall implement the corrective action established by the Department. Damages will be applied for failure to implement the corrective action plan. (See 42 U.S.C. 1396 b(m)(5)(A); 30:4D-1; N.J.A.C. 10:49-1 and 10:49-11.)
(d) The contractor shall comply with all performance standards, which shall be defined as compliance with all requirements specified in the contract. Failure to do so will result in the following sanctions:
(e) Should the contractor fail to satisfy any terms or requirements of the contract, damage to the State shall be presumed, and the contractor shall pay to the State its actual damages, which shall be as follows:
(f) Should DMAHS determine that there is egregious behavior by the managed care organization or that there is substantial risk to the health of the managed care entity's enrollees, temporary management may be imposed during the period in which improvements may be made to correct these violations. Temporary management shall remain in place until DMAHS determines that the contractor has the capability to ensure that the violations will not recur.