Federal Register / Vol. 77, No. 37 / Friday, February 24, 2012 / Notices 11127 

ESTIMATED ANNUALIZED BURDEN HOURS

Type of respondents Number of 

respondents 

Number of 

responses per 

respondent 

Average 

burden per 

response 

(in hours) 

Total burden 

(in hours) 

Cigarette Manufacturers, Packagers, and Importers ....................................... 77 1 6.5 501 

Kimberly Lane, 

Reports Clearance Officer, Centers for Disease 

Control and Prevention. 

[FR Doc. 2012–4373 Filed 2–23–12; 8:45 am] 

BILLING CODE 4163–18–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Centers for Medicare & Medicaid 

Services 

[CMS–6034–N] 

Medicaid Program; Announcement of 

Medicaid Recovery Audit Contractors 

(RACs) Contingency Fee Update 

AGENCY: Centers for Medicare & 

Medicaid Services (CMS), HHS. 

ACTION: Notice. 

SUMMARY: This notice announces an 

increase to the maximum contingency 

fee, for which Federal financial 

participation (FFP) will be available, 

that may be paid to Medicaid Recovery 

Audit Contractors (RAC) by State 

Medicaid programs as authorized by 

section 1902(a)(42)(B) of the Social 

Security Act (the Act), as amended by 

the Affordable Care Act, requiring States 

to establish Medicaid RAC programs. In 

the September 16, 2011 Federal Register 

(76 FR 57808), we published a final rule 

that ties the Medicaid RAC contingency 

fee to the Medicare Recovery Audit 

Program with an opportunity for the 

States to request an exception to exceed 

the highest fee paid to a Medicare 

Recovery Auditor. Further, we indicated 

in the final rule that we would make 

States aware of any modifications to the 

payment methodology for contingency 

fee rates and Medicaid RAC maximum 

contingency fee rates by publishing a 

notice in the Federal Register. 

Therefore, this notice will inform States 

that Medicare has increased the 

maximum contingency fee paid to 

Recovery Auditors by 5 percent for the 

recovery of overpayments only for 

durable medical equipment claims 

(DME). 

DATES: Effective Date: This notice is 

effective on March 26, 2012. 

FOR FURTHER INFORMATION CONTACT: Lori 

Bellan, (410) 786–2048; or Joanne Davis, 

(410) 786–5127. 

SUPPLEMENTARY INFORMATION: 

I. Background 

In the September 16, 2011 Federal 

Register (76 FR 57808), we published a 

final rule entitled: ‘‘Medicaid Program; 

Recovery Audit Contractors.’’ This final 

rule finalized provisions related to the 

implementation of a Medicaid Recovery 

Audit Contractor (RAC) program and 

provided guidance to States related to 

Federal/State funding of State start-up, 

operation and maintenance costs of 

Medicaid RACs and the payment 

methodology for State payments to 

Medicaid RACs. In particular, and as 

stated in 42 CFR 455.510(b), States must 

determine the contingency fee rate to be 

paid to Medicaid RACs for the 

identification and recovery of Medicaid 

provider overpayments. We also 

indicated at 42 CFR 455.510(b)(4): 

[T]he contingency fee may not exceed that of 

the highest Medicare RAC, as specified by 

CMS in the Federal Register, unless the State 

submits, and CMS approves, a waiver of the 

specified maximum rate. If a State does not 

obtain a waiver of the specified maximum 

rate, any amount exceeding the specified 

maximum rate is not eligible for FFP, either 

from the collected overpayment amounts, or 

in the form of any other administrative or 

medical assistance claimed expenditure. 

The September 16, 2011 final rule 

contains additional information about 

the process States must follow to obtain 

an exception to the specified maximum 

rate. 

II. Provisions of the Notice 

In the final rule at 42 CFR 

455.510(b)(4), we stated that the 

contingency fee paid to the Medicaid 

RAC may not exceed that of the highest 

fee paid to a Medicare Recovery 

Auditor, unless the State submits, and 

CMS approves, an exception to the 

specified maximum rate, as specified in 

the Federal Register. 

On June 1, 2011, we increased the 

contingency fee by 5 percent for the 

recovery of overpayments associated 

with DME claims that were identified by 

the Medicare Recovery Auditors. 

Therefore, the modification increases 

the maximum contingency fee paid to a 

Medicare Recovery Auditor to 17.5 

percent for DME claims only. As a result 

of this modification, we now authorize 

States to pay their respective Medicaid 

RACs a contingency fee up to 17.5 

percent of the recovered overpayment, 

the current highest contingency fee paid 

to Medicare Recovery Auditors, for the 

recovery of improper payments made 

for medical supplies, equipment and 

appliances suitable for use in the home 

found within the Medicaid home health 

services benefit authorized by section 

1905(a)(7) of the Act. We note that this 

increase in the maximum fee for which 

FFP is available for payments to 

Medicaid RACs applies only to fees paid 

for the recovery of improper payments 

of this subset of claims. The current 

highest contingency fee paid to 

Medicare Recovery Auditors for the 

recovery of improper payments made on 

all other types of claims remains the 

same at 12.5 percent; thus, the 

maximum fee that may be paid to 

Medicaid RACs for the recovery of 

improper payments on other types of 

claims similarly remains at 12.5 percent. 

This policy is consistent with section 

1902(a)(42)(B) of the Act, which 

requires States to contract with 

Medicaid RACs ‘‘in the same manner as 

the Secretary enters into contracts’’ with 

the Medicare Recovery Auditors. The 

policy is also consistent with guidance 

provided in the final rule which aligns 

the Medicare Recovery Audit Program 

and Medicaid RAC program, to the 

extent possible. 

III. Collection of Information 

Requirements 

This notice does not impose 

information collection and 

recordkeeping requirements. 

Consequently, it need not be reviewed 

by the Office of Management and 

Budget under the authority of the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 35). However, it does reference 

previously approved information 

collections. As stated in section I of this 

notice, States must submit justifications 

to CMS to receive an exception to pay 

Medicaid RACs a contingency fee that 

exceeds the highest fee paid to a 

Medicare Recovery Auditor. 

Authority: Catalog of Federal Domestic 

Assistance Program No. 93.778, Medical 

Assistance Program. 


srobinson on DSK4SPTVN1PROD with NOTICES
11128 Federal Register / Vol. 77, No. 37 / Friday, February 24, 2012 / Notices 

Dated: February 8, 2012. 

Marilyn Tavenner, 

Acting Administrator, Centers for Medicare 

& Medicaid Services. 

[FR Doc. 2012–4364 Filed 2–23–12; 8:45 am] 

BILLING CODE 4120–01–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Centers for Medicare & Medicaid 

Services 

[CMS–1591–N] 

Medicare Program; Public Meetings in 

Calendar Year 2012 for All New Public 

Requests for Revisions to the 

Healthcare Common Procedure Coding 

System (HCPCS) Coding and Payment 

Determinations 

AGENCY: Centers for Medicare & 

Medicaid Services (CMS), HHS. 

ACTION: Notice. 

SUMMARY: This notice announces the 

dates, time, and location of the 

Healthcare Common Procedure Coding 

System (HCPCS) public meetings to be 

held in calendar year 2012 to discuss 

our preliminary coding and payment 

determinations for all new public 

requests for revisions to the HCPCS. 

These meetings provide a forum for 

interested parties to make oral 

presentations or to submit written 

comments in response to preliminary 

coding and payment determinations. 

The discussion will be focused on 

responses to our specific preliminary 

recommendations and will include all 

items on the public meeting agenda. 

DATES: Meeting Dates: The following are 

the 2012 HCPCS public meeting dates: 

1. Tuesday, May 8, 2012, 9 a.m. to 5 

p.m. eastern daylight time (e.d.t.) 

(Drugs/Biologicals/ 

Radiopharmaceuticals/Radiologic 

Imaging Agents). 

2. Wednesday, May 9, 2012, 9 a.m. to 

5 p.m. e.d.t. 

(Supplies and Other). 

3. Tuesday, June 5, 2012, 9 a.m. to 5 

p.m. e.d.t. 

(Orthotics and Prosthetics) and (Durable 

Medical Equipment (DME) and 

Accessories). 

Deadlines for Primary Speaker 

Registration and Presentation Materials: 

The deadline for registering to be a 

primary speaker and submitting 

materials and writings that will be used 

in support of an oral presentation are as 

follows: 

• April 24, 2012 for the May 8, 2012 

and May 9, 2012 public meetings. 

• May 22, 2012 for the June 5, 2012 

public meeting. 

Deadline for Attendees that are 

Foreign Nationals Registration: 

Attendees that are foreign nationals (as 

described in section IV. of this notice) 

are required to identify themselves as 

such, and provide the necessary 

information for security clearance (as 

described in section IV. of this notice) 

to the public meeting coordinator at 

least 12 business days in advance of the 

date of the public meeting date the 

individual plans to attend. Therefore, 

the deadlines for attendees that are 

foreign nationals are as follows: 

• April 20, 2012 for the May 8, 2012 

and May 9, 2012 public meetings. 

• May 17, 2012 for the June 5, 2012 

public meeting. 

Deadlines for all Other Attendees 

Registration: All other individuals who 

plan to enter the building to attend the 

public meeting must register for each 

date that they plan on attending. The 

registration deadlines are different for 

each meeting. Registration deadlines are 

as follows: 

• May 1, 2012 for the May 8, 2012 

and May 9, 2012 public meeting dates. 

• May 29, 2012 for the June 5, 2012 

public meeting date. 

Deadlines for Requesting Special 

Accommodations: Individuals who plan 

to attend the public meetings and 

require sign-language interpretation or 

other special assistance must request 

these services by the following 

deadlines: 

• April 24, 2012 for the May 8, 2012 

and May 9, 2012 public meetings. 

• May 22, 2012 for the June 5, 2012 

public meeting. 

Deadline for Submission of Written 

Comments: Written comments must be 

received by the date of the meeting at 

which the code request is scheduled for 

discussion. 

ADDRESSES: Meeting Location: The 

public meetings will be held in the main 

auditorium of the central building of the 

Centers for Medicare & Medicaid 

Services, 7500 Security Boulevard, 

Baltimore, MD 21244–1850. 

Submission of Written Comments: 

Written comments may either be 

emailed to HCPCS@cms.hhs.gov or sent 

via regular mail to Jennifer Carver or 

Laury Jackson, HCPCS Public Meeting 

Coordinator, Centers for Medicare & 

Medicaid Services, 7500 Security 

Boulevard, Mail Stop C5–08–27, 

Baltimore, MD 21244–1850. 

Registration and Special 

Accommodations: Individuals wishing 

to participate or who need special 

accommodations or both must register 

by completing the on-line registration 

located at www.cms.hhs.gov/ 

medhcpcsgeninfo or by contacting one 

of the following persons: Jennifer Carver 

at (410)786–6610 or 

Jennifer.Carver@cms.hhs.gov; or Laury 

Jackson at (410) 786–9222 or 

Laury.Jackson@cms.hhs.gov. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Carver at (410) 786–6610 or 

Jennifer.Carver@cms.hhs.gov. 

Laury Jackson at (410) 786–9222 or 

Laury.Jackson@cms.hhs.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On December 21, 2000, the Congress 

passed the Medicare, Medicaid, and 

SCHIP Benefits Improvement and 

Protection Act of 2000 (BIPA) (Pub. L. 

106–554). Section 531(b) of BIPA 

mandated that we establish procedures 

that permit public consultation for 

coding and payment determinations for 

new durable medical equipment (DME) 

under Medicare Part B of title XVIII of 

the Social Security Act (the Act). The 

procedures and public meetings 

announced in this notice for new DME 

are in response to the mandate of 

section 531(b) of BIPA. 

In the November 23, 2001 Federal 

Register (66 FR 58743), we published a 

notice providing information regarding 

the establishment of the public meeting 

process for DME. It is our intent to 

distribute any materials submitted to 

CMS to the Healthcare Common 

Procedure Coding System (HCPCS) 

workgroup members for their 

consideration. CMS and the HCPCS 

workgroup members require sufficient 

preparation time to review all relevant 

materials. Therefore, we are 

implementing a 10-page submission 

limit and firm deadlines for receipt of 

any presentation materials a meeting 

speaker wishes us to consider. For this 

reason, our HCPCS Public Meeting 

Coordinators will only accept and 

review presentation materials received 

by the deadline for each public meeting, 

as specified in the DATES section of this 

notice. 

The public meeting process provides 

an opportunity for the public to become 

aware of coding changes under 

consideration, as well as an opportunity 

for CMS to gather public input. 

II. Meeting Registration 

A. Required Information for Registration 

The following information must be 

provided when registering: 

• Name. 

• Company name and address. 

• Direct-dial telephone and fax 

numbers. 


srobinson on DSK4SPTVN1PROD with NOTICES