###### Editorial Note on [Part 422](/current/title-42/part-422?toc=1)

#### Editorial Note:

Nomenclature changes to part 422 appear at [70 FR 4741](https://www.federalregister.gov/citation/70-FR-4741), Jan. 28, 2005.

#### § 422.116 Network adequacy.

(a) *General rules* —

(1) *Access.*

(i) A network-based MA plan, as described in [§ 422.2](/on/2024-09-17/title-42/section-422.2) but not including MSA plans, must demonstrate that it has an adequate contracted provider network that is sufficient to provide access to covered services in accordance with access standards described in section 1852(d)(1) of the Act and in [§§ 422.112(a)](/on/2024-09-17/title-42/section-422.112#p-422.112(a)) and [422.114(a)(1)](/on/2024-09-17/title-42/section-422.114#p-422.114(a)(1)) and by meeting the standard in [paragraph (a)(2)](/on/2024-09-17/title-42/section-422.116#p-422.116(a)(2)) of this section. When required by CMS, an MA organization must attest that it has an adequate network for access and availability of a specific provider or facility type that CMS does not independently evaluate in a given year.

(ii) Beginning with contract year 2024, an applicant for a new or expanding service area must demonstrate compliance with this section as part of its application for a new or expanding service area and CMS may deny an application on the basis of an evaluation of the applicant's network for the new or expanding service area.

(2) *Standards.* An MA plan must meet maximum time and distance standards and contract with a specified minimum number of each provider and facility-specialty type.

(i) Each contract provider type must be within maximum time and distance of at least one beneficiary (in the MA Medicare Sample Census) in order to count toward the minimum number.

(ii) The minimum number criteria and the time and distance criteria vary by the county type.

(3) *Applicability of MA network adequacy criteria.*

(i) The following providers and facility types do not count toward meeting network adequacy criteria:

(A) Specialized, long-term care, and pediatric/children's hospitals.

(B) Providers that are only available in a residential facility.

(C) Providers and facilities contracted with the organization only for its commercial, Medicaid, or other products.

(ii) [Reserved]

(4) *Annual updates by CMS.* CMS annually updates and makes the following available:

(i) A Health Service Delivery (HSD) Reference file that identifies the following:

(A) All minimum provider and facility number requirements.

(B) All provider and facility time and distance standards.

(C) Ratios established in [paragraph (e)](/on/2024-09-17/title-42/section-422.116#p-422.116(e)) of this section in advance of network reviews for the applicable year.

(ii) A Provider Supply file that lists available providers and facilities and their corresponding office locations and specialty types.

(A) The Provider Supply file is updated annually based on information in the Integrated Data Repository (IDR), which has comprehensive claims data, and information from public sources.

(B) CMS may also update the Provider Supply file based on findings from validation of provider information submitted on Exception Requests to reflect changes in the supply of health care providers and facilities.

(b) *Provider and facility-specialty types.* The provider and facility-specialty types to which the network adequacy evaluation under this section applies are specified in this [paragraph (b)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)).

(1) *Provider-specialty types.* The provider-specialty types are as follows:

(i) Primary Care.

(ii) Allergy and Immunology.

(iii) Cardiology.

(iv) Chiropractor.

(v) Dermatology.

(vi) Endocrinology.

(vii) ENT/Otolaryngology.

(viii) Gastroenterology.

(ix) General Surgery.

(x) Gynecology, OB/GYN.

(xi) Infectious Diseases.

(xii) Nephrology.

(xiii) Neurology.

(xiv) Neurosurgery.

(xv) Oncology—Medical, Surgical.

(xvi) Oncology—Radiation/Radiation Oncology.

(xvii) Ophthalmology.

(xviii) Orthopedic Surgery.

(xix) Physiatry, Rehabilitative Medicine.

(xx) Plastic Surgery.

(xxi) Podiatry.

(xxii) Psychiatry.

(xxiii) Pulmonology.

(xxiv) Rheumatology.

(xxv) Urology.

(xxvi) Vascular Surgery.

(xxvii) Cardiothoracic Surgery.

(xxviii) Clinical Psychology.

(xxix) Clinical Social Work.

(2) *Facility-specialty types.* The facility specialty types are as follows:

(i) Acute Inpatient Hospitals.

(ii) Cardiac Surgery Program.

(iii) Cardiac Catheterization Services.

(iv) Critical Care Services—Intensive Care Units (ICU).

(v) Surgical Services (Outpatient or ASC).

(vi) Skilled Nursing Facilities.

(vii) Diagnostic Radiology.

(viii) Mammography.

(ix) Physical Therapy.

(x) Occupational Therapy.

(xi) Speech Therapy.

(xii) Inpatient Psychiatric Facility Services.

(xiii) Outpatient Infusion/Chemotherapy.

(xiv) Outpatient behavioral health, which can include marriage and family therapists (as defined in section 1861(lll) of the Act), mental health counselors (as defined in section 1861(lll) of the act), opioid treatment programs (as defined in section 1861(jjj) of the act), community mental health centers (as defined in section 1861(ff)(3)(b) of the act), or those of the following who regularly furnish or will regularly furnish behavioral health counseling or therapy services including psychotherapy or prescription of medication for substance use disorders; physician assistants, nurse practitioners and clinical nurse specialists (as defined in section 1861(aa)(5) of the Act); addiction medicine physicians; or outpatient mental health and substance use treatment facilities.

(A) To be considered as regularly furnishing behavioral health services for the purposes of this regulation, a physician assistant (PA), nurse practitioner (NP), and clinical nurse specialist (CNS) must have furnished specific psychotherapy or medication prescription services (including, buprenorphine and methadone, for substance use disorders) to at least 20 patients within a 12-month period. CMS will identify, by detailed descriptions or Healthcare Common Procedure Coding System (HCPCS) code(s), the specific services in the HSD Reference File described in [paragraph (a)(4)(i)](/on/2024-09-17/title-42/section-422.116#p-422.116(a)(4)(i)) of this section.

(B) To determine that a PA, NP, or CNS meets the standard in [paragraph (b)(2)(xiv)(A)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)(2)(xiv)(A)) of this section, an MA organization must do all of the following:

(*1*) On an annual basis, independently verify that the provider has furnished such services within a recent 12-month period, using reliable information about services furnished by the provider such as the MA organization's claims data, prescription drug claims data, electronic health records, or similar data.

(*2*) If there is insufficient evidence of past practice by the provider, have a reasonable and supportable basis for concluding that the provider will meet the standard in [paragraph (b)(2)(xiv)(A)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)(2)(xiv)(A)) of this section in the next 12 months.

(*3*) Submit evidence and documentation to CMS, upon request and in the form and manner specified by CMS, of the MA organization's determination that the provider meets the standard in [paragraph (b)(2)(xiv)(A)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)(2)(xiv)(A)) of this section.

(3) *Removal of a provider or facility-specialty type.* CMS may remove a specialty or facility type from the network adequacy evaluation for a particular year by not including the type in the annual publication of the HSD reference file.

(c) *County type designations.* Counties are designated as a specific type using the following population size and density parameters:

(1) *Large metro.* A large metro designation is assigned to any of the following combinations of population sizes and density parameters:

(i) A population size greater than or equal to 1,000,000 persons with a population density greater than or equal to 1,000 persons per square mile.

(ii) A population size greater than or equal to 500,000 and less than or equal to 999,999 persons with a population density greater than or equal to 1,500 persons per square mile.

(iii) Any population size with a population density of greater than or equal to 5,000 persons per square mile.

(2) *Metro.* A metro designation is assigned to any of the following combinations of population sizes and density parameters:

(i) A population size greater than or equal to 1,000,000 persons with a population density greater than or equal to 10 persons per square mile and less than or equal to 999.9 persons per square mile.

(ii) A population size greater than or equal to 500,000 persons and less than or equal to 999,999 persons with a population density greater than or equal to 10 persons per square mile and less than or equal to 1,499.9 persons per square mile.

(iii) A population size greater than or equal to 200,000 persons and less than or equal to 499,999 persons with a population density greater than or equal to 10 persons per square mile and less than or equal to 4,999.9 persons per square mile.

(iv) A population size greater than or equal to 50,000 persons and less than or equal to 199,999 persons with a population density greater than or equal to 100 persons per square mile and less than or equal to 4999.9 persons per square mile.

(v) A population size greater than or equal to 10,000 persons and less than or equal to 49,999 persons with a population density greater than or equal to 1,000 persons per square mile and less than or equal to 4999.9 persons per square mile.

(3) *Micro.* A micro designation is assigned to any of the following combinations of population sizes and density parameters:

(i) A population size greater than or equal to 50,000 persons and less than or equal to 199,999 persons with a population density greater than or equal to 10 persons per square mile and less than or equal to 99.9 persons per square mile.

(ii) A population size greater than or equal to 10,000 persons and less than or equal to 49,999 persons with a population density greater than or equal to 50 persons per square mile and less than 999.9 persons per square mile.

(4) *Rural.* A rural designation is assigned to any of the following combinations of population sizes and density parameters:

(i) A population size greater than or equal to 10,000 persons and less than or equal to 49,999 persons with a population density of greater than or equal to 10 persons per square mile and less than or equal to 49.9 persons per square mile.

(ii) A population size less than 10,000 persons with a population density greater than or equal 50 persons per square mile and less than or equal to 999.9 persons per square mile.

(5) *Counties with extreme access considerations (CEAC).* For any population size with a population density of less than 10 persons per square mile.

(d) *Maximum time and distance standards* —

(1) *General rule.* CMS determines and annually publishes maximum time and distance standards for each combination of provider or facility specialty type and each county type in accordance with [paragraphs (d)(2)](/on/2024-09-17/title-42/section-422.116#p-422.116(d)(2)) and [(3)](/on/2024-09-17/title-42/section-422.116#p-422.116(d)(3)) of this section.

(i) Time and distance metrics measure the relationship between the approximate locations of beneficiaries and the locations of the network providers and facilities.

(ii) [Reserved]

(2) *By county designation.* The following base maximum time (in minutes) and distance (in miles) standards apply for each county type designation, unless modified through customization as described in [paragraph (d)(3)](/on/2024-09-17/title-42/section-422.116#p-422.116(d)(3)) of this section.

Table 1 to Paragraph (d)(2)

| Provider/facility type | Large metro | | Metro | | Micro | | Rural | | CEAC | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Max time | Max distance | Max time | Max distance | Max time | Max distance | Max time | Max distance | Max time | Max distance |
| Primary Care | 10 | 5 | 15 | 10 | 30 | 20 | 40 | 30 | 70 | 60 |
| Allergy and Immunology | 30 | 15 | 45 | 30 | 80 | 60 | 90 | 75 | 125 | 110 |
| Cardiology | 20 | 10 | 30 | 20 | 50 | 35 | 75 | 60 | 95 | 85 |
| Chiropractor | 30 | 15 | 45 | 30 | 80 | 60 | 90 | 75 | 125 | 110 |
| Clinical Psychology | 20 | 10 | 45 | 30 | 60 | 45 | 75 | 60 | 145 | 130 |
| Dermatology | 20 | 10 | 45 | 30 | 60 | 45 | 75 | 60 | 110 | 100 |
| Endocrinology | 30 | 15 | 60 | 40 | 100 | 75 | 110 | 90 | 145 | 130 |
| ENT/Otolaryngology | 30 | 15 | 45 | 30 | 80 | 60 | 90 | 75 | 125 | 110 |
| Gastroenterology | 20 | 10 | 45 | 30 | 60 | 45 | 75 | 60 | 110 | 100 |
| General Surgery | 20 | 10 | 30 | 20 | 50 | 35 | 75 | 60 | 95 | 85 |
| Gynecology, OB/GYN | 30 | 15 | 45 | 30 | 80 | 60 | 90 | 75 | 125 | 110 |
| Infectious Diseases | 30 | 15 | 60 | 40 | 100 | 75 | 110 | 90 | 145 | 130 |
| Licensed Clinical Social Work | 20 | 10 | 30 | 20 | 50 | 35 | 75 | 60 | 125 | 110 |
| Nephrology | 30 | 15 | 45 | 30 | 80 | 60 | 90 | 75 | 125 | 110 |
| Neurology | 20 | 10 | 45 | 30 | 60 | 45 | 75 | 60 | 110 | 100 |
| Neurosurgery | 30 | 15 | 60 | 40 | 100 | 75 | 110 | 90 | 145 | 130 |
| Oncology—Medical, Surgical | 20 | 10 | 45 | 30 | 60 | 45 | 75 | 60 | 110 | 100 |
| Oncology—Radiation/Radiation Oncology | 30 | 15 | 60 | 40 | 100 | 75 | 110 | 90 | 145 | 130 |
| Ophthalmology | 20 | 10 | 30 | 20 | 50 | 35 | 75 | 60 | 95 | 85 |
| Orthopedic Surgery | 20 | 10 | 30 | 20 | 50 | 35 | 75 | 60 | 95 | 85 |
| Outpatient Behavioral Health | 20 | 10 | 40 | 25 | 55 | 40 | 60 | 50 | 110 | 100 |
| Physiatry, Rehabilitative Medicine | 30 | 15 | 45 | 30 | 80 | 60 | 90 | 75 | 125 | 110 |
| Plastic Surgery | 30 | 15 | 60 | 40 | 100 | 75 | 110 | 90 | 145 | 130 |
| Podiatry | 20 | 10 | 45 | 30 | 60 | 45 | 75 | 60 | 110 | 100 |
| Psychiatry | 20 | 10 | 45 | 30 | 60 | 45 | 75 | 60 | 110 | 100 |
| Pulmonology | 20 | 10 | 45 | 30 | 60 | 45 | 75 | 60 | 110 | 100 |
| Rheumatology | 30 | 15 | 60 | 40 | 100 | 75 | 110 | 90 | 145 | 130 |
| Urology | 20 | 10 | 45 | 30 | 60 | 45 | 75 | 60 | 110 | 100 |
| Vascular Surgery | 30 | 15 | 60 | 40 | 100 | 75 | 110 | 90 | 145 | 130 |
| Cardiothoracic Surgery | 30 | 15 | 60 | 40 | 100 | 75 | 110 | 90 | 145 | 130 |
| Acute Inpatient Hospitals | 20 | 10 | 45 | 30 | 80 | 60 | 75 | 60 | 110 | 100 |
| Cardiac Surgery Program | 30 | 15 | 60 | 40 | 160 | 120 | 145 | 120 | 155 | 140 |
| Cardiac Catheterization Services | 30 | 15 | 60 | 40 | 160 | 120 | 145 | 120 | 155 | 140 |
| Critical Care Services—Intensive Care Units (ICU) | 20 | 10 | 45 | 30 | 160 | 120 | 145 | 120 | 155 | 140 |
| Surgical Services (Outpatient or ASC) | 20 | 10 | 45 | 30 | 80 | 60 | 75 | 60 | 110 | 100 |
| Skilled Nursing Facilities | 20 | 10 | 45 | 30 | 80 | 60 | 75 | 60 | 95 | 85 |
| Diagnostic Radiology | 20 | 10 | 45 | 30 | 80 | 60 | 75 | 60 | 110 | 100 |
| Mammography | 20 | 10 | 45 | 30 | 80 | 60 | 75 | 60 | 110 | 100 |
| Physical Therapy | 20 | 10 | 45 | 30 | 80 | 60 | 75 | 60 | 110 | 100 |
| Occupational Therapy | 20 | 10 | 45 | 30 | 80 | 60 | 75 | 60 | 110 | 100 |
| Speech Therapy | 20 | 10 | 45 | 30 | 80 | 60 | 75 | 60 | 110 | 100 |
| Inpatient Psychiatric Facility Services | 30 | 15 | 70 | 45 | 100 | 75 | 90 | 75 | 155 | 140 |
| Outpatient Infusion/Chemotherapy | 20 | 10 | 45 | 30 | 80 | 60 | 75 | 60 | 110 | 100 |

(3) *By customization.* When necessary due to utilization or supply patterns, CMS may set maximum time and distance standards for provider or facility types for specific counties by customization in accordance with the following rules:

(i) CMS maps provider location data from the Provider Supply file against its MA Medicare Sample Census (which provides MA enrollee population distribution data) or uses claims data to identify the distances beneficiaries travel according to the usual patterns of care for the county.

(ii) CMS identifies the distance at which 90 percent of the population would have access to at least one provider or facility in the applicable specialty type.

(iii) The resulting distance is then rounded up to the next multiple of 5, and a multiplier specific to the county designation is applied to determine the analogous maximum time.

(iv) Customization may only be used to increase the base time and distance standards specified in [paragraph (d)(2)](/on/2024-09-17/title-42/section-422.116#p-422.116(d)(2)) of this section and may not be used to decrease the base time and distance standards.

(4) *Percentage of beneficiaries residing within maximum time and distance standards.* MA plans must ensure both of the following:

(i) At least 85 percent of the beneficiaries residing in micro, rural, or CEAC counties have access to at least one provider/facility of each specialty type within the published time and distance standards.

(ii) At least 90 percent of the beneficiaries residing in large metro and metro counties have access to at least one provider/facility of each specialty type within the published time and distance standards.

(5) *MA telehealth providers.* An MA plan receives a 10 percentage point credit towards the percentage of beneficiaries residing within published time and distance standards for the applicable provider specialty type and county when the plan includes one or more telehealth providers that provide additional telehealth benefits, as defined in [§ 422.135](/on/2024-09-17/title-42/section-422.135), in its contracted networks for the following provider specialty types:

(i) Dermatology.

(ii) Psychiatry.

(iii) Cardiology.

(iv) Neurology.

(v) Otolaryngology.

(vi) Ophthalmology.

(vii) Allergy and Immunology.

(viii) Nephrology.

(ix) Primary Care.

(x) Gynecology/OB/GYN.

(xi) Endocrinology.

(xii) Infectious Diseases.

(xiii) Clinical Psychology.

(xiv) [Reserved]

(xv) Outpatient Behavioral Health, described in [paragraph (b)(2)(xiv)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)(2)(xiv)) of this section.

(xvi)-(xxiii) [Reserved]

(xxiv) Clinical Social Work.

(6) *State Certificate of Need (CON) laws.* In a State with CON laws, or other state imposed anti-competitive restrictions that limit the number of providers or facilities in the State or a county in the State, CMS will award the MA organization a 10-percentage point credit towards the percentage of beneficiaries residing within published time and distance standards for affected providers and facilities in [paragraph (b)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)) of this section or, when necessary due to utilization or supply patterns, customize the base time and distance standards.

(7) *New or expanding service area applicants.* Beginning with contract year 2024, an applicant for a new or expanding service area receives a 10-percentage point credit towards the percentage of beneficiaries residing within published time and distance standards for the contracted network in the pending service area, at the time of application and for the duration of the application review. In addition, applicants may use a Letter of Intent (LOI), signed by both the MA organization (MAO) and the provider or facility with which the MAO has started or intends to negotiate, in lieu of a signed contract at the time of application and for the duration of the application review, to meet network standards. As part of the network adequacy review process, applicants must notify CMS of their use of LOIs to meet network standards in lieu of a signed contract and submit copies upon request and in the form and manner directed by CMS. At the beginning of the applicable contract year, the credit and the use of LOIs no longer apply and if the application is approved, the MA organization must be in full compliance with this section, including having signed contracts with the provider or facility.

(e) *Minimum number standard.* CMS annually determines the minimum number standard for each provider and facility-specialty type as follows:

(1) *General rule.* The provider or facility must—

(i) Be within the maximum time and distance of at least one beneficiary in order to count towards the minimum number standard (requirement); and

(ii) Not be a telehealth-only provider.

(2) *Minimum number requirement for provider and facility-specialty types.* The minimum number for provider and facility-specialty types are as follows:

(i) For provider-specialty types described in [paragraph (b)(1)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)(1)) of this section, CMS calculates the minimum number as specified in [paragraph (e)(3)](/on/2024-09-17/title-42/section-422.116#p-422.116(e)(3)) of this section.

(ii) For facility-specialty types described in [paragraph (b)(2)(i)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)(2)(i)) of this section, CMS calculates the minimum number as specified in [paragraph (e)(3)](/on/2024-09-17/title-42/section-422.116#p-422.116(e)(3)) of this section.

(iii) For facility-specialty types described in [paragraphs (b)(2)(ii)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)(2)(ii)) through [(xiv)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)(2)(xiv)) of this section, the minimum requirement number is 1.

(3) *Determination of the minimum number of for certain provider and facility-specialty types.* For specialty types in [paragraphs (b)(1)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)(1)) and [(b)(2)(i)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)(2)(i)) of this section, CMS multiplies the minimum ratio by the number of beneficiaries required to cover, divides the resulting product by 1,000, and rounds it up to the next whole number.

(i)

(A) The minimum ratio for provider specialty types represents the minimum number of providers per 1,000 beneficiaries.

(B) The minimum ratio for facility specialty type specified in [paragraph (b)(2)(i)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)(2)(i)) of this section (acute inpatient hospital) represents the minimum number of beds per 1,000 beneficiaries.

(C) The minimum ratios are as follows:

Table 2 to Paragraph (e)(3)(i)(C)

| Minimum ratio | Large metro | Metro | Micro | Rural | CEAC |
| --- | --- | --- | --- | --- | --- |
| Primary Care | 1.67 | 1.67 | 1.42 | 1.42 | 1.42 |
| Allergy and Immunology | 0.05 | 0.05 | 0.04 | 0.04 | 0.04 |
| Cardiology | 0.27 | 0.27 | 0.23 | 0.23 | 0.23 |
| Chiropractor | 0.10 | 0.10 | 0.09 | 0.09 | 0.09 |
| Clinical Psychology | 0.15 | 0.15 | 0.13 | 0.13 | 0.13 |
| Clinical Social Work | 0.25 | 0.25 | 0.22 | 0.22 | 0.22 |
| Dermatology | 0.16 | 0.16 | 0.14 | 0.14 | 0.14 |
| Endocrinology | 0.04 | 0.04 | 0.03 | 0.03 | 0.03 |
| ENT/Otolaryngology | 0.06 | 0.06 | 0.05 | 0.05 | 0.05 |
| Gastroenterology | 0.12 | 0.12 | 0.10 | 0.10 | 0.10 |
| General Surgery | 0.28 | 0.28 | 0.24 | 0.24 | 0.24 |
| Gynecology, OB/GYN | 0.04 | 0.04 | 0.03 | 0.03 | 0.03 |
| Infectious Diseases | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Nephrology | 0.09 | 0.09 | 0.08 | 0.08 | 0.08 |
| Neurology | 0.12 | 0.12 | 0.10 | 0.10 | 0.10 |
| Neurosurgery | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Oncology—Medical, Surgical | 0.19 | 0.19 | 0.16 | 0.16 | 0.16 |
| Oncology—Radiation/Radiation Oncology | 0.06 | 0.06 | 0.05 | 0.05 | 0.05 |
| Ophthalmology | 0.24 | 0.24 | 0.20 | 0.20 | 0.20 |
| Orthopedic Surgery | 0.20 | 0.20 | 0.17 | 0.17 | 0.17 |
| Physiatry, Rehabilitative Medicine | 0.04 | 0.04 | 0.03 | 0.03 | 0.03 |
| Plastic Surgery | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Podiatry | 0.19 | 0.19 | 0.16 | 0.16 | 0.16 |
| Psychiatry | 0.14 | 0.14 | 0.12 | 0.12 | 0.12 |
| Pulmonology | 0.13 | 0.13 | 0.11 | 0.11 | 0.11 |
| Rheumatology | 0.07 | 0.07 | 0.06 | 0.06 | 0.06 |
| Urology | 0.12 | 0.12 | 0.10 | 0.10 | 0.10 |
| Vascular Surgery | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Cardiothoracic Surgery | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Acute Inpatient Hospitals | 12.2 | 12.2 | 12.2 | 12.2 | 12.2 |

(ii)

(A) *Number of beneficiaries required to cover.*

(*1*) The number of beneficiaries required to cover is calculated by multiplying the 95th percentile base population ratio by the total number of Medicare beneficiaries residing in a county.

(*2*) CMS uses its MA State/County Penetration data to calculate the total number of beneficiaries residing in a county.

(B) *95th percentile base population ratio.*

(*1*) The 95th percentile base population ratio is:

(*i*) Calculated annually for each county type and varies over time as MA market penetration and plan enrollment change across markets; and

(*ii*) Represents the proportion of Medicare beneficiaries enrolled in the 95th percentile MA plan (that is, 95 percent of plans have enrollment lower than this level).

(*2*) CMS calculates the 95th percentile base population ratio as follows:

(*i*) Uses its most recent List of PFFS Network Counties to exclude any private-fee-for-service (PFFS) plans in non-networked counties from the calculation at the county-type level.

(*ii*) Uses its most recent MA State/County Penetration data to determine the number of eligible Medicare beneficiaries in each county.

(*iii*) Uses its Monthly MA Enrollment By State/County/Contract data to determine enrollment at the contract ID and county level, including only enrollment in regional preferred provider organization (RPPO), local preferred provider organization (LPPO), HMO, HMO/provider sponsored organization (POS), healthcare prepayment plans under section 1833 of the Act, and network PFFS plan types.

(*iv*) Calculates penetration at the contract ID and county level by dividing the number of enrollees for a given contract ID and county by the number of eligible beneficiaries in that county.

(*v*) Groups counties by county designation to determine the 95th percentile of penetration among MA plans for each county type.

(f) *Exception requests.*

(1) An MA plan may request an exception to network adequacy criteria in [paragraphs (b)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)) through [(e)](/on/2024-09-17/title-42/section-422.116#p-422.116(e)) of this section when either [paragraph (f)(1)(i)](/on/2024-09-17/title-42/section-422.116#p-422.116(f)(1)(i)) or [(ii)](/on/2024-09-17/title-42/section-422.116#p-422.116(f)(1)(ii)) of this section is met:

(i)

(A) Certain providers or facilities are not available for the MA plan to meet the network adequacy criteria as shown in the Provider Supply file for the year for a given county and specialty type; and

(B) The MA plan has contracted with other providers and facilities that may be located beyond the limits in the time and distance criteria, but are currently available and accessible to most enrollees, consistent with the local pattern of care.

(ii)

(A) A facility-based Institutional-Special Needs Plan (I-SNP) is unable to contract with certain specialty types required under [§ 422.116(b)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)) because of the way enrollees in facility-based I-SNPs receive care; or

(B) A facility-based I-SNP provides sufficient and adequate access to basic benefits through additional telehealth benefits (in compliance with [§ 422.135](/on/2024-09-17/title-42/section-422.135)) when using telehealth providers of the specialties listed in [paragraph (d)(5)](/on/2024-09-17/title-42/section-422.116#p-422.116(d)(5)) of this section in place of in-person providers to fulfill network adequacy standards in [paragraphs (b)](/on/2024-09-17/title-42/section-422.116#p-422.116(b)) through [(e)](/on/2024-09-17/title-42/section-422.116#p-422.116(e)) of this section.

(2) In evaluating exception requests, CMS considers whether—

(i) The current access to providers and facilities is different from the HSD reference and Provider Supply files for the year;

(ii) There are other factors present, in accordance with [§ 422.112(a)(10)(v)](/on/2024-09-17/title-42/section-422.112#p-422.112(a)(10)(v)), that demonstrate that network access is consistent with or better than the original Medicare pattern of care; and

(iii) Approval of the exception is in the best interests of beneficiaries.

(iv) As applicable, the facility-based I-SNP submits:

(A) Evidence of the inability to contract with certain specialty types required under this section due to the way enrollees in facility-based I-SNPs receive care; or

(B) Substantial and credible evidence that sufficient and adequate access to basic benefits is provided to enrollees using additional telehealth benefits (in compliance with [§ 422.135](/on/2024-09-17/title-42/section-422.135)) furnished by providers of the specialties listed in [paragraph (d)(5)](/on/2024-09-17/title-42/section-422.116#p-422.116(d)(5)) of this section and the facility-based I-SNP covers out-of-network services furnished by a provider in person when requested by the enrollee as provided in [§ 422.135(c)(1)](/on/2024-09-17/title-42/section-422.135#p-422.135(c)(1)) and [(2)](/on/2024-09-17/title-42/section-422.135#p-422.135(c)(2)), with in-network cost sharing for the enrollee.

(3) Any MA organization that receives the exception provided for facility-based I-SNPs must agree to offer only facility-based I-SNPs under the MA contract that receives the exception.

[[85 FR 33904](https://www.federalregister.gov/citation/85-FR-33904), June 2, 2020, as amended at [87 FR 27895](https://www.federalregister.gov/citation/87-FR-27895), May 9, 2022; [88 FR 22330](https://www.federalregister.gov/citation/88-FR-22330), Apr. 12, 2023; [89 FR 30819](https://www.federalregister.gov/citation/89-FR-30819), Apr. 23, 2024; [89 FR 63827](https://www.federalregister.gov/citation/89-FR-63827), Aug. 6, 2024]