1. (a) Contracts. All contracts under this part must include all of the following:

   1. (1) Include provisions that define a sound and complete procurement contract, as required by 2 CFR parts 200 and 300.
   2. (2) Identify the population covered by the contract.
   3. (3) Specify any procedures for enrollment or reenrollment of the covered population.
   4. (4) Specify the amount, duration, and scope of medical services to be provided or paid for.
   5. (5) Provide that the agency and HHS may evaluate through inspection or other means, the quality, appropriateness and timeliness of services performed under the contract.
   6. (6) Specify procedures and criteria for terminating the contract, including a requirement that the contractor promptly supply all information necessary for the reimbursement of any outstanding Medicaid claims.
   7. (7) Provide that the contractor maintains an appropriate record system for services to enrolled beneficiaries.
   8. (8) Provide that the contractor safeguards information about beneficiaries as required by part 431, subpart F of this chapter.
   9. (9) Specify any activities to be performed by the contractor that are related to third party liability requirements in part 433, subpart D of this chapter.
   10. (10) Specify which functions may be subcontracted.
   11. (11) Provide that any subcontracts meet the requirements of paragraph (b) of this section.

   12. (12) Specify the following:

       1. (i) No payment will be made by the contractor to a provider for provider-preventable conditions, as identified in the State plan.
       2. (ii) The contractor will require that all providers agree to comply with the reporting requirements in § 447.26(d) of this subchapter as a condition of payment from the contractor.
       3. (iii) The contractor will comply with such reporting requirements to the extent the contractor directly furnishes services.
2. (b) Subcontracts. All subcontracts must be in writing and fulfill the requirements of this part that are appropriate to the service or activity delegated under the subcontract.
3. (c) Continued responsibility of contractor. No subcontract terminates the legal responsibility of the contractor to the agency to assure that all activities under the contract are carried out.

[48 FR 54020, Nov. 30, 1983, as amended at 67 FR 41095, June 14, 2002; 76 FR 32837, June 6, 2011; 81 FR 3011, Jan. 20, 2016; 89 FR 80069, Oct. 2, 2024]