(3) Requirements Any qualified independent contractor entering into a contract with the Secretary under this subsection shall meet all of the following requirements:
(A) In general
The qualified independent contractor shall perform such duties and functions and assume such responsibilities as may be required by the Secretary to carry out the provisions of this subsection, and shall have sufficient medical, legal, and other expertise (including knowledge of the program under this subchapter) and sufficient staffing to make reconsiderations under this subsection.
(B) Reconsiderations
(i) In general The qualified independent contractor shall review initial determinations. Where an initial determination is made with respect to whether an item or service is reasonable and necessary for the diagnosis or treatment of illness or injury (under section
1395y (a)(1)(A) of this title), such review shall include consideration of the facts and circumstances of the initial determination by a panel of physicians or other appropriate health care professionals and any decisions with respect to the reconsideration shall be based on applicable information, including clinical experience (including the medical records of the individual involved) and medical, technical, and scientific evidence.
(ii) Effect of national and local coverage determinations
(I) National coverage determinations If the Secretary has made a national coverage determination pursuant to the requirements established under the third sentence of section
1395y (a) of this title, such determination shall be binding on the qualified independent contractor in making a decision with respect to a reconsideration under this section.
(II) Local coverage determinations If the Secretary has made a local coverage determination, such determination shall not be binding on the qualified independent contractor in making a decision with respect to a reconsideration under this section. Notwithstanding the previous sentence, the qualified independent contractor shall consider the local coverage determination in making such decision.
(III) Absence of national or local coverage determination In the absence of such a national coverage determination or local coverage determination, the qualified independent contractor shall make a decision with respect to the reconsideration based on applicable information, including clinical experience and medical, technical, and scientific evidence.
(C) Deadlines for decisions
(i) Reconsiderations Except as provided in clauses (iii) and (iv), the qualified independent contractor shall conduct and conclude a reconsideration under subparagraph (B), and mail the notice of the decision with respect to the reconsideration by not later than the end of the 60-day period beginning on the date a request for reconsideration has been timely filed.
(ii) Consequences of failure to meet deadline In the case of a failure by the qualified independent contractor to mail the notice of the decision by the end of the period described in clause (i) or to provide notice by the end of the period described in clause (iii), as the case may be, the party requesting the reconsideration or appeal may request a hearing before the Secretary, notwithstanding any requirements for a reconsidered determination for purposes of the partys right to such hearing.
(iii) Expedited reconsiderations The qualified independent contractor shall perform an expedited reconsideration under subsection (b)(1)(F) of this section as follows:
(I) Deadline for decision Notwithstanding section
416 (j) of this title and subject to clause (iv), not later than the end of the 72-hour period beginning on the date the qualified independent contractor has received a request for such reconsideration and has received such medical or other records needed for such reconsideration, the qualified independent contractor shall provide notice (by telephone and in writing) to the individual and the provider of services and attending physician of the individual of the results of the reconsideration. Such reconsideration shall be conducted regardless of whether the provider of services or supplier will charge the individual for continued services or whether the individual will be liable for payment for such continued services.
(II) Consultation with beneficiary In such reconsideration, the qualified independent contractor shall solicit the views of the individual involved.
(III) Special rule for hospital discharges A reconsideration of a discharge from a hospital shall be conducted under this clause in accordance with the provisions of paragraphs (2), (3), and (4) of section
1320c–3 (e) of this title as in effect on the date that precedes December 21, 2000.
(iv) Extension An individual requesting a reconsideration under this subparagraph may be granted such additional time as the individual specifies (not to exceed 14 days) for the qualified independent contractor to conclude the reconsideration. The individual may request such additional time orally or in writing.
(D) Qualifications for reviewers
The requirements of subsection (g) of this section shall be met (relating to qualifications of reviewing professionals).
(E) Explanation of decision Any decision with respect to a reconsideration of a qualified independent contractor shall be in writing, be written in a manner calculated to be understood by the individual entitled to benefits under part A of this subchapter or enrolled under part B of this subchapter, or both, and shall include (to the extent appropriate) and shall include
a detailed explanation of the decision as well as a discussion of the pertinent facts and applicable regulations applied in making such decision, and
a notification of the right to appeal such determination and instructions on how to initiate such appeal under this section
and
in the case of a determination of whether an item or service is reasonable and necessary for the diagnosis or treatment of illness or injury (under section
1395y (a)(1)(A) of this title)
an explanation of the medical and scientific rationale for the decision.
(F) Notice requirements
Whenever a qualified independent contractor makes a decision with respect to a reconsideration under this subsection, the qualified independent contractor shall promptly notify the entity responsible for the payment of claims under part A of this subchapter or part B of this subchapter of such decision.
(G) Dissemination of decisions on reconsiderations Each qualified independent contractor shall make available all decisions with respect to reconsiderations of such qualified independent contractors to fiscal intermediaries (under section
1395h of this title), carriers (under section
1395u of this title), peer review organizations (under part B of subchapter XI of this chapter), Medicare+Choice organizations offering Medicare+Choice plans under part C of this subchapter, other entities under contract with the Secretary to make initial determinations under part A of this subchapter or part B of this subchapter or subchapter XI of this chapter, and to the public. The Secretary shall establish a methodology under which qualified independent contractors shall carry out this subparagraph.
(H) Ensuring consistency in decisions
Each qualified independent contractor shall monitor its decisions with respect to reconsiderations to ensure the consistency of such decisions with respect to requests for reconsideration of similar or related matters.
(I) Data collection
(i) In general Consistent with the requirements of clause (ii), a qualified independent contractor shall collect such information relevant to its functions, and keep and maintain such records in such form and manner as the Secretary may require to carry out the purposes of this section and shall permit access to and use of any such information and records as the Secretary may require for such purposes.
(ii) Type of data collected Each qualified independent contractor shall keep accurate records of each decision made, consistent with standards established by the Secretary for such purpose. Such records shall be maintained in an electronic database in a manner that provides for identification of the following:
(I) Specific claims that give rise to appeals.
(II) Situations suggesting the need for increased education for providers of services, physicians, or suppliers.
(III) Situations suggesting the need for changes in national or local coverage determination.
(IV) Situations suggesting the need for changes in local coverage determinations.
(iii) Annual reporting Each qualified independent contractor shall submit annually to the Secretary (or otherwise as the Secretary may request) records maintained under this paragraph for the previous year.
(J) Hearings by the Secretary The qualified independent contractor shall
(i) submit such information as is required for an appeal of a decision of the contractor, and
(ii) participate in such hearings as required by the Secretary.
(K) Independence requirements
(i) In general Subject to clause (ii), a qualified independent contractor shall not conduct any activities in a case unless the entity
(I) is not a related party (as defined in subsection (g)(5) of this section);
(II) does not have a material familial, financial, or professional relationship with such a party in relation to such case; and
(III) does not otherwise have a conflict of interest with such a party.
(ii) Exception for reasonable compensation Nothing in clause (i) shall be construed to prohibit receipt by a qualified independent contractor of compensation from the Secretary for the conduct of activities under this section if the compensation is provided consistent with clause (iii).
(iii) Limitations on entity compensation Compensation provided by the Secretary to a qualified independent contractor in connection with reviews under this section shall not be contingent on any decision rendered by the contractor or by any reviewing professional.