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iii. Eighty five percent (85%) compliance rate for the RMTS must be met in the following quarter. c) Non -response rates greater than fifteen percent (15%) for three (3) consecutive quarters: HCA will notify the affected Contractor via certified mail of the denied reimbursement for the third consecutive quarter and prohibited participation in MAC. None of the affected Contractors may claim for any denied or reduced reimbursement from the three consecutive quarters of non-compliance. The Contractor may be prohibited from participating in MAC for the following quarter (4th consecutive quarter), and will be notified as such through the HCA notification. 4. CORRECTIVE ACTION PLANS HCA will pursue a corrective action plan if a Contractor fails to meet any MAC program requirements described in the CAP, Manual, this Agreement, or as determined by HCA. HCA will pursue a corrective action plan if the contractor fails to address or correct any problems timely and sufficiently as determined by HCA. The Contractor must develop and submit a corrective action plan response to HCA for approval within thirty (30) days of HCA's notification. If a Contractor fails to meet the requirements outlined in the corrective action plan, HCA will impose sanctions that may include, but are not limited to; conducting more frequent reviews, delayed or denied payment of MAC claims, recoupment of funds, or termination of this Agreement. Examples of Contractor actions that may result in corrective action and/or sanctions include, but are not limited to: a) Repeated and/or uncorrected errors in financial reporting; b) Failure to maintain adequate documentation; c) Failure to cooperate with state or federal staff; d) Failure to provide accurate and timely information to state or federal staff as required; e) Failure to meet time study minimum response rates; f) Failure to meet statistical validity requirements; and g) Failure to comply with the terms and conditions of this agreement. 5. ADMINISTRATIVE FEE HCA charges MAC contractors an administrative fee to offset HCA's costs for the administration of the MAC program. The rate is based on the costs associated with the staff effort spent on MAC related work for an entire State Fiscal Year (SFY) and is billed as a line item on the quarterly claim form A -19- 1A submitted by the MAC contractor. This cost is divided by the dollar amount of administrative claims submitted by the participating contractors in the MAC program for the same SFY. The calculated rate is used on the claims for the subsequent SFY. At the end of the period, the rate used will be validated using the actual claimed expenditures for that period and any variances will be settled with the contractor during the second quarter of the new SFY. Local Health Jurisdiction Page 50 of 59 Medicaid Administrative Claiming Washington State Health Care Authority Contract # K3069