(a) Statutory basis. This subpart is based on sections 1932(c)(2), 1903(a)(3)(C)(ii), and 1902(a)(4) of the Act.
(b) Scope. This subpart sets forth requirements for annual external quality reviews of each contracting managed care organization (MCO) and prepaid inpatient health plan (PIHP), including--
(1) Criteria that States must use in selecting entities to perform the reviews;
(2) Specifications for the activities related to external quality review;
(3) Circumstances under which external quality review may use the results of Medicare quality reviews or private accreditation reviews; and
(4) Standards for making available the results of the reviews.
(c) Applicability. The provisions of this subpart apply to MCOs, PIHPs, and to health insuring organizations (HIOs) that began on or after January 1, 1986 that the statute does not explicitly exempt from requirements in section 1903(m) of the Act.