---
kind: "section"
citation: "42 C.F.R. § 456.650"
title: "42"
number: "456.650"
heading: "Basis, purpose and scope."
url: "https://uscodex.org/cfr/42/456.650"
---

# §456.650. Basis, purpose and scope.

- (a) **Basis.** Section 1903(g) of the Act requires that FFP for long-stay inpatient services at a level of care be reduced, by a specified formula, for any quarter in which a State fails to make a satisfactory showing that it has an effective program of utilization control for that level of care.
- (b) **Purpose.** This subpart specifies—
  - (1) What States must do to make a satisfactory showing;
  - (2) How the Administrator will determine whether reductions will be imposed; and
  - (3) How the required reductions will be implemented.
- (c) **Scope.** The reductions required by this subpart do not apply to—
  - (1) Services provided under a contract with a health maintenance organization; or
  - (2) Facilities in which a QIO is performing medical and utilization reviews under contract with the Medicaid agency in accordance with [§ 431.630](/cfr/42/431.630.md) of this chapter.

## Notes

### Amendments

[44 FR 56338, Oct. 1, 1979, as amended at 50 FR 15327, Apr. 17, 1985; 51 FR 43198, Dec. 1, 1986]

### Authority

Authority: Secs. 1102 and 1903(g) of the Social Security Act (42 U.S.C. 1302 and 1396 b(g)).

### Source

Source: 44 FR 56338, Oct. 1, 1979, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302.

### Source

Source: 43 FR 45266, Sept. 29, 1978, unless otherwise noted.

### Amendments

[44 FR 56338, Oct. 1, 1979, as amended at 50 FR 15327, Apr. 17, 1985; 51 FR 43198, Dec. 1, 1986]