438.706—Special rules for temporary management.
(a) Optional imposition of sanction.
The State may impose temporary management only if it finds (through onsite survey, enrollee complaints, financial audits, or any other means) that—
(1)
There is continued egregious behavior by the MCO, including but not limited to behavior that is described in § 438.700, or that is contrary to any requirements of sections 1903(m) and 1932 of the Act; or
(b) Required imposition of sanction.
The State must impose temporary management (regardless of any other sanction that may be imposed) if it finds that an MCO has repeatedly failed to meet substantive requirements in section 1903(m) or section 1932 of the Act, or this subpart. The State must also grant enrollees the right to terminate enrollment without cause, as described in § 438.702(a)(3), and must notify the affected enrollees of their right to terminate enrollment.
(c) Hearing.
The State may not delay imposition of temporary management to provide a hearing before imposing this sanction.
(d) Duration of sanction.
The State may not terminate temporary management until it determines that the MCO can ensure that the sanctioned behavior will not recur.