Authorize Treatment Plan
Authorization Determination
The Authorize Treatment Plan business process encompasses both a prior authorization and post-approved treatment plan. The State Medicaid Agency (SMA) uses the Authorize Treatment Plans primarily in the care coordination setting where the care management team assesses the member’s needs, decides on a course of treatment, and completes the treatment plan. NOTE: MITA contains three (3) different authorization business processes: 1. Authorize Service - the standard process of prior authorization of services. 2. Authorize Treatment Plan - the approval of a treatment plan prepared by a care management team in a care management setting. 3. Authorize Referral - specifically the approval of a referral to another provider, requested by a primary care physician. A treatment plan prior-authorizes the named providers or provider types and services or category of services. The SMA prior authorizes individual providers for the service or category of services, and they do not have to submit their own prior authorizations or service requests. A treatment plan typically is a schedule of medical, therapeutic, and /or psychological procedures and appointments that spans a length of time designed to restore a patient's specific health condition. In contrast, the SMA limits an individual service request, primarily associated with fee-for-services payment, to focus on a specific visit, services, or products (e.g., a single specialist office visit, approval for a specific test or particular piece of Durable Medical Equipment (DME)). The prior authorized treatment plan generally begins with the receipt of an authorize treatment plan request from the care management team. The SMA staff then evaluates it based on urgency, state priority requirements, and type of service/taxonomy (speech, physical therapy, home health, behavioral, social), a validates key information, and ensures that requested plan of treatment is appropriate and medically or behaviorally necessary. After reviewing, staff approves, modifies, suspends for additional information or denies the request. Business process sends an alert to Manage Case Information business process. A post-approved treatment plan is an audit function that reviews suspended or paid claims to ensure the services were appropriate and in accordance with the treatment plan.
Business Process Template
- Care manager submits a request for treatment plan authorization.
- Provider submits a request for treatment plan authorization in accordance with state policy.
- Provider submits additional information for existing treatment plan request.
- Receive treatment plan request from Health Information Exchange (HIE) via Accredited Standards Committee (ASC) X12 278 Health Care Services Review Request and Response transaction.
- Receive treatment plan request from requestor via ASC X12 278 Health Care Services Review Request and Response transaction.
- The SMA sends the authorization response to requestor.
- Alert sent with treatment plan information to requestor via ASC X12 278 Health Care Services Review Request and Response transaction.
- If applicable, alert sent to submitter via ASC X12 TA1 Interchange Acknowledgment, 997 Functional Acknowledgment, 999 Implementation Acknowledgment and/or the 824 Application Advice transaction(s) per Trading Partner Agreement (TPA).
- Alert sent to Manage Applicant and Member Communication to send notification of authorized treatment plan response.
- Alert sent to Manage Case Information business process for purpose of responding to provider or member inquiry about the status of a treatment plan authorization or member filing of a grievance or an appeal about treatment authorization response.
- Tracking information as needed for measuring performance and business activity monitoring.
- 1. START: Receive request for Treatment Plan authorization for authorized provider or care manager.
- 2. Assign a tracking identifier.
- 3. Validate information submitted is correct and as complete as possible. Information complies with syntax criteria and requestor has completed all required fields.
- 4. Validate that the provided information is authentic. a. If applicable, alert sent to submitter via ASC X12 TA1 Interchange Acknowledgment, 997 Functional Acknowledgment, 999 Implementation Acknowledgment, and/or the 824 Application Advice transaction(s) per Trading Partner Agreement (TPA). END: Business process stops.
- 5. Prioritize authorize treatment plan request.
- 6. Validate the following:
- 7. Member eligibility
- 8. Eligibility for requesting and servicing providers
- 9. Service coverage and plan of treatment requirements
- 10. Diagnosis code
- 11. Procedure codes/or procedure groupings
- 12. Check for medical, social, and behavioral appropriateness.
- 13. Check against currently authorized treatment plans and service requests for duplication.
- 14. Coordinate services (check for duplicates) across programs and systems.
- 15. Validate completeness of supporting documentation.
- 16. Deny based on insufficient/erroneous information or treatment plan identifying services not medically, socially, and/or behaviorally necessary. Go to step 14.
- 17. Suspend the treatment plan request based on the need for additional information. Send a request for additional information. Go to step 14.
- 18. Approve plan of treatment request (this includes approved with modifications) and send approval response information to requesting parties.
- 19. Send alert to send treatment plan authorization to requestor via ASC X12 278 Health Care Services Review Request and Response transaction.
- 20. END: Send alert to notify member, care manager, and provider of authorization determination.
- Receive Inbound Transaction
- Establish Case
- Manage Case Information
- Manage Treatment Plan and Outcomes
- Send Outbound Transaction
- Manage Case Information
- Manage Applicant and Member Communication
- Manage Provider Communication
- Manage Contractor Communication
- Submit Electronic Attachment
- Manage Treatment Plan and Outcomes
- Member data store including demographic information
- Provider data store including provider network Information
- Health Information Exchange (HIE) data store including health information, clinical record, and clinical data
- Plan data store including health benefits information
- Claims data store including adjudication information
The authorize treatment plan information will conform to the format and content in accordance with state-specific reporting requirements, e.g., using a HIPAA Transaction Standard Companion Guide.
- Invalid beneficiary, invalid provider, invalid service, invalid dates, conflicting diagnosis, and treatment plan.
- Time to complete the process: e.g., Real Time response = within __ seconds, Batch Response = within __ hours
- Accuracy with which the SMA approves treatment plan = __%
- Consistency of decisions in approving or denying treatment plans = __%
- Error rate = __% or less
Source: CMS MITA 3.0 Business Process Template, Care Management BPT.pdf, pages 21-24.
Business Capability Model (11 questions)
Each capability question defines five maturity levels, from Level 1 through Level 5.
Business Capability Descriptions
Is the process primarily manual or automatic?
- LEVEL 1The process consists primarily of manual activity to accomplish tasks.
- LEVEL 2SMA uses a mix of manual and automatic processes to accomplish tasks.
- LEVEL 3SMA automates process to the full extent possible within the intrastate.
- LEVEL 4SMA automates process to the full extent possible within the region.
- LEVEL 5SMA automates process to the full extent possible across the nation.
Does the State Medicaid Agency use standards in the process?
- LEVEL 1SMA focuses on meeting compliance thresholds for state and federal regulations using state-specific standards. SMA has developed its own unique paper forms to support this process; there may be different forms for each type of treatment plan.
- LEVEL 2SMA applies a mix of HIPAA and state-specific standards. SMA has adopted the Accredited Standards Committee (ASC) X12 277 Health Care Information Status Notification and 278 Health Care Services Review Information transactions.
- LEVEL 3SMA adopts MITA Framework, industry standards, and other nationally recognized standards for intrastate exchange of information.
- LEVEL 4SMA adopts MITA Framework, industry standards, and other nationally recognized standards for clinical and regional information exchange.
- LEVEL 5SMA adopts MITA Framework, industry standards, and other nationally recognized standards for national information exchange.
How easy is it to change the business rules of Authorize Treatment Plan?
- LEVEL 1Manual rule changes require many business days for approval and implementation.
- LEVEL 2Although there may be some automation of standardized business rules definitions, changes and maintenance are labor intensive, especially in legacy applications.
- LEVEL 3Adoption of the separation of standardized intrastate business rules definitions from core programming, available in both human and machine-readable formats.
- LEVEL 4Adoption of the separation of regionally standardized business rules definitions from core programming, available in both human and machine-readable formats.
- LEVEL 5Adoption of the separation of nationally standardized business rules definitions from core programming, available in both human and machine-readable formats.
How does the State Medicaid Agency collaborate with other agencies or entities in performing the process?
- LEVEL 1Very little collaboration occurs with other agencies to standardize information exchange or business tasks.
- LEVEL 2SMA collaborates with other agencies and entities to adopt HIPAA standards and Electronic Data Interchange (EDI) transactions.
- LEVEL 3SMA collaborates with other intrastate agencies and entities to adopt national standards, and to develop and share reusable business services.
- LEVEL 4SMA collaborates with other regional agencies and entities to adopt national standards, and to develop and share reusable processes including clinical information.
- LEVEL 5SMA collaborates with agencies and entities for national (and international) interoperability improvements that maximize automation of routine operations.
Business Capability Quality: Timeliness of Process
How timely is this end-to-end process?
- LEVEL 1Process meets threshold or mandated requirements for timeliness (i.e., the process achieves results within the time specified by law or regulation).
- LEVEL 2Process timeliness improves through use of automation. Timeliness exceeds legal requirements.
- LEVEL 3Timeliness improves via state and federal collaboration, use of information sharing, standards, and regional information exchange hubs. Process completes in less than two (2) business days.
- LEVEL 4Information is available in near real time. Processes that use clinical information result in immediate action, response, and results. SMA has regional interoperability. Process completes in less than one (1) business day.
- LEVEL 5Information is available in real time. Processes improve further through connectivity with other States and with federal agencies. Most processes execute at the point of service. Results are almost immediate.
Business Capability Quality: Data Access and Accuracy
How accurate is the information in the process?
- LEVEL 1Use of direct data entry for information collection is manually intensive and susceptible to inconsistent or incorrect information. Stakeholders are unable to rely on information for decision-making.
- LEVEL 2HIPAA standard transactions improve accuracy of information but the decision-making process may be erroneous or misleading. Accuracy is higher than at Level 1.
- LEVEL 3Automation of information collection increases the reliability of SMA’s internal information. External sources of information use MITA Framework for information exchange. Decision-making is automatic using standardized business rules definitions. Accuracy is 95% or higher.
- LEVEL 4Automation of information collection increases the reliability of regional sources of information. SMA adopts MITA Framework for information exchange by regional agencies. Decision-making is automatic using regional standardized business rules definitions. Accuracy is 98% or higher.
- LEVEL 5SMA adopts MITA Framework for national information exchange. Decision-making is automatic using national standardized business rules definitions. Accuracy rating is at 99% or higher.
How accessible is the information in the process?
- LEVEL 1SMA stores information in disparate systems including paper storage and obtains information manually.
- LEVEL 2SMA stores information in disparate systems, but automation and HIPAA standards increase accessibility over Level 1.
- LEVEL 3SMA obtains information easily and exchanges with intrastate agencies and entities based on MITA Framework and industry standards. Accessibility is less than one (1) business day.
- LEVEL 4SMA obtains information easily from regional agencies and entities. Accessibility is less than one (1) business day.
- LEVEL 5SMA obtains information easily and exchanges with national agencies and entities. Accessibility is less than one (1) business day.
Business Capability Quality: Cost Effectiveness
What is the cost to support the process to the benefits of the result?
- LEVEL 1High relative cost due to low number of automatic, standardized tasks.
- LEVEL 2Automation improves process and allows focus on exception resolution, improving cost effectiveness ratio over Level 1.
- LEVEL 3SMA adopts MITA Framework, industry standards, and other nationally recognized standards further improving cost effectiveness ratio over Level 2.
- LEVEL 4SMA adopts MITA Framework, industry standards, and other nationally recognized standards for regional information exchange improving cost effectiveness ratio over Level 3.
- LEVEL 5SMA adopts MITA Framework, industry standards, and other nationally recognized standards for national (and international) information exchange. SMA increases cost effectiveness ratio over level 4.
Business Capability Quality: Effort to Perform; Efficiency
How efficient is the process?
- LEVEL 1Process is labor intensive. There is wasted effort or expense to accomplish tasks. Process meets minimum state process guidelines and SMA performance standards. Efficiency is low.
- LEVEL 2Automation and state standards increase productivity. Efficiency is higher than Level 1.
- LEVEL 3SMA adopts MITA Framework, industry standards and information exchange with intrastate agencies and entities improving efficiency to 95% or higher.
- LEVEL 4SMA adopts MITA Framework, industry standards and information exchange with regional agencies and entities improving efficiency to 98% or higher.
- LEVEL 5SMA adopts MITA Framework, industry standards and information exchange with national agencies and entities improving efficiency to 98% or higher.
Business Capability Quality: Accuracy of Process Results
How accurate are the results of the process?
- LEVEL 1Manual processes result in greater opportunity for human error. Accuracy is low.
- LEVEL 2Automation and standardized business rules definitions reduce error and improve accuracy above Level 1.
- LEVEL 3SMA adopts MITA Framework, industry standards and information exchange with intrastate agencies and entities improving accuracy to 90% or higher.
- LEVEL 4SMA adopts MITA Framework, industry standards and information exchange with regional agencies and entities improving accuracy to 98% or higher.
- LEVEL 5SMA adopts MITA Framework, industry standards and information exchange with national agencies and entities improving accuracy to 98% or higher.
Business Capability Quality: Utility or Value to Stakeholders
Does the business process satisfy stakeholders?
- LEVEL 1Stakeholders lack confidence in information negatively affecting stakeholder satisfaction with the process.
- LEVEL 2Automation and standardization provides clear and useful information. Stakeholder satisfaction is greater than Level 1.
- LEVEL 3SMA adopts MITA Framework, industry standards and information exchange with intrastate agencies and entities improving stakeholder satisfaction to 90% or higher. SMA uses survey or questionnaire for information collection.
- LEVEL 4SMA adopts MITA Framework, industry standards and information exchange with regional agencies and entities improving stakeholder satisfaction to 95% or higher.
- LEVEL 5SMA adopts MITA Framework, industry standards and information exchange with national agencies and entities improving stakeholder satisfaction to 98% or higher.
Source: CMS MITA 3.0 Business Capability Model, Care Management BCM.pdf, pages 53-58.