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entity is financially responsible; then the Department may decline to pay for part or all of the costs associated with the medically necessary care. 3.8.2.3 The Department agrees to reimburse the Contractor for emergency medical costs incurred by a Department offender under the conditions of this Contract. Emergency medical care costs may include a facility fee, physician services, labs and x-rays. The Department is not obligated to reimburse the Contractor for medical care or treatment provided to a Department offender without the Department's pre-authorization in a nonemergency, or without the notice required by paragraph 3.8.1.4 in emergency situations. 3.8.2.4 The Department may, at its option, request that the Contractor return a Department offender to the Department's custody for medical reasons. The Department's medical financial responsibilities under this Contract terminate when the Department takes custody of the offender, when the Department's sanction has been served, or when the Department's hold or detainer is no longer valid, whichever is earlier. 3.8.2.5 The Department at its sole discretion may provide Department offenders prescription medications, or reimburse the Contractor for prescription medications that the Contractor provides, as long as the Contractor- provided prescription medications are consistent with the Offender Health Plan and the Formulary. Restricted Formulary and non- Formulary medications must be pre-authorized by the Department's Utilization Management Office . See Attachment B. Section 3.8.3 Safe Transfer of Care. 3.8.3.1 HIP AA -Both parties agree to follow the Health Insurance Portability and Accountability Act of 1996 (HIP AA). HIPP A protects the privacy of individually identifiable protected health information. It allows the exchange of this information between the Department and the Contractor for the purpose of billing and payment. This allows the Contractor to provide the Department with information documenting the Contractor's treatment activities so that the Contractor can receive reimbursement under this Contract for costs of health care provided to Department offenders. See CFR 45 § 164.506. HIPP A also clarifies the standard for use and disclosure for correctional institutions and other law enforcement custodial situations in CFR 45 §164.512 . 3.8.3.2 The Contractor agrees to consult with a registered nurse at the receiving facility and/or the Department's Utilization Management Office prior to transferring a Department offender for medical reasons. "Transferring," State of Washington Department of Corrections K9561 (4) Page 9 of 25 158362