To ensure the accuracy of MLR reporting, CMS conducts selected reviews of reports submitted under Sec. 422.2460 to determine that that the MLRs and remittance amounts under Sec. 422.2410(b) and sanctions under Sec. 422.2410(c) and (d), were accurately calculated, reported, and applied.
(a) The reviews include a validation of amounts included in both the numerator and denominator of the MLR calculation reported to CMS.
(b) MA organizations are required to maintain evidence of the amounts reported to CMS and to validate all data necessary to calculate MLRs.
(c)(1) Documents and records must be maintained for 10 years from the date such calculations were reported to CMS with respect to a given MLR reporting year.
(1) Documents and records must be maintained for 10 years from the date such calculations were reported to CMS with respect to a given MLR reporting year.
(2) MA organizations must require any third party vendor supplying drug or medical cost contracting and claim adjudication services to the MA organization to provide all underlying data associated with MLR reporting to that MA organization in a timely manner, when requested by the MA organization, regardless of current contractual limitations, in order to validate the accuracy of MLR reporting.
(d) Reports submitted under Sec. 422.2460, calculations, or any other MLR submission required by this subpart found to be materially incorrect or fraudulent--
(1) Is noted by CMS;
(2) Appropriate remittance amounts are recouped by CMS; and
(3) Sanctions may be imposed by CMS as provided in Sec. 422.752. Subpart Y [Reserved]