09/12/17. A. Admission - must satisfy: 1 or all of Care is court ordered according to Medical Policy MP/C001 Court Ordered Mental Health; or

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1 Reference #: MC/M006 Page: 1 of 4 PRODUCT APPLICATION: PreferredOne Administrative Services, Inc. (PAS) ERISA PreferredOne Administrative Services, Inc. (PAS) Non-ERISA PreferredOne Community Health Plan (PCHP) PreferredOne Insurance Company (PIC) Individual PreferredOne Insurance Company (PIC) Large Group PreferredOne Insurance Company (PIC) Small Group Please refer to the member s benefit document for specific information. To the extent there is any inconsistency between this policy and the terms of the member s benefit plan or certificate of coverage, the terms of the member s benefit plan document will govern. Benefits must be available for health care services. Health care services must be ordered by a physician, physician assistant, or nurse practitioner. Health care services must be medically necessary, applicable conservative treatments must have been tried, and the most cost-effective alternative must be requested for coverage consideration. PURPOSE: The intent of this criteria document is to ensure services are medically necessary. GUIDELINES: Medical Necessity Criteria Must satisfy both of the following: I and II I. Member Requirements A. Admission - must satisfy: 1 or all of Care is court ordered according to Medical Policy MP/C001 Court Ordered Mental Health; or 2. The member's clinical condition meets criteria for a DSM mental disorder diagnosis; and 3. The member demonstrates a significant impairment and/or decrease in functioning; and. 4. The member resides in a safe environment and is medically stable for this level of care; and 5. Within 30 days prior to admission, the member was assessed by a licensed health care professional appropriate to this program and deemed to be safe for this level of care. 6. The member must satisfy one of the following: a-c a. An adequate trial of ongoing, active outpatient treatment (such as, but not limited to, weekly psychotherapy) has not been sufficient in meeting treatment goals, or such therapy is clearly inappropriate or unsafe at this time; or b. Is transitioning from an acute care setting; or c. Is unlikely to improve in less intensive outpatient treatment due to the severity of symptoms and/or comorbid condition

2 Reference #: MC/M006 Page: 2 of 4 B. Continued treatment must satisfy: 1 or all of Care is court ordered according to Medical Policy MP/C001 Court Ordered Mental Health; or 2. The member s clinical condition continues to meet criteria for a DSM mental disorder diagnosis; and 3. The member continues to demonstrate impairment and/or decrease in functioning that requires continued treatment at this level of care; and 4. Care is directed by an individualized treatment plan that is based on a physical and mental status examination that includes comprehensive diagnostic assessments per DSM; and 5. Treatment goals are realistically achievable and directed toward re-stabilization to allow treatment to continue in a less restrictive environment; and 6. The member continues to regularly attend and actively participate in the program - one of the following: a or b a. There is substantial risk of decompensation from baseline level of functioning if the member is discharged to a less intensive treatment setting; or b. The member has yet to complete the goals and objectives of the individualized treatment plan that is necessary to facilitate transition to a less intensive treatment setting. 7. Regularly scheduled comprehensive multi-disciplinary assessments of diagnosis and treatment are performed in a timely manner that includes comprehensive diagnostic assessments per DSM. C. Discharge must satisfy one or more of the following: 1-8 [Note: Discharge criteria do not apply to court-ordered care according to Medical Policy MP/C001 Court Ordered Mental Health] 1. The member's symptomatology and level of functioning have improved sufficiently to allow transition to a less intensive level of care; or 2. The member is persistently not attending or refuses to participate or cooperate in the PHP Program, despite repeated staff attempts to engage the member and address nonparticipation issues; or 3. The member has met the treatment goals and objectives on their individualized treatment plan; or 4. The member's symptomatology and level of functioning have not improved or have deteriorated requiring an alternative treatment setting; or. 5. Care is custodial or maintenance in nature; or 6. Ongoing substance use or abuse that would preclude or decrease the effectiveness of treatment (may merit need for substance abuse evaluation or treatment); or 7. The member demonstrates severe exacerbation of symptoms and/or disruptive or unsafe behaviors that require a more intensive level of treatment; or

3 Reference #: MC/M006 Page: 3 of 4 8. Therapeutic Pass that is out of compliance with Medical Policy MP/T004 Therapeutic Pass (would indicate a stability consistent with a lower level of care) II. Program requirements must satisfy all of the following: A-C A. The program must have a contractual relationship with a mental health system of care that includes mental health emergency and inpatient services and regular consultation with a staff board certified or eligible psychiatrist; and B. The program must provide all of the following: At least 4 days but not more that 5 out of 7 calendar days of partial hospitalization services; and 2. Ensure a minimum of 20 service components and a minimum of 20 hours in a 7 calendar day period; and 3. Ensure a minimum of services per day one of the following: a or b a. For adults, age 18 years or over, 5 to 6 hours of services per day; or b. For children, under age 18, 4 to 5 hours of services per day 4. Include, at a minimum, one session of individual, group, or family psychotherapy and two or more other services, such as activity therapy or training and education; and C. Specific goals for completion should be in place within three (3) days of admission. DEFINITIONS: DSM: The most current edition of the American Psychiatric Association Diagnostic and Statistical Manual of Mental Health disorders. BACKGROUND: This criteria document is based on expert professional practice guidelines. Partial hospitalization is defined as a "multi-disciplinary, time-limited, ambulatory, active treatment program that offers therapeutically intensive, coordinated and structured clinical services within a stable therapeutic milieu" for patients experiencing significant impairment resulting from psychiatric, emotional or behavioral disorders. The Partial Hospitalization Program must be licensed by the state and supervised by licensed mental health professionals. The attending M.D. will examine the patient and document progress no less frequently than every three program days.

4 Reference #: MC/M006 Page: 4 of 4 FOR INTERNAL USE ONLY COVERAGE: Prior Authorization: No Coverage is subject to the member s contract benefits. RELATED CRITERIA/POLICIES: Process Manual UR015Use of Medical Policy and Criteria Medical Policy: MP/C001 Court Ordered Mental Health Medical Policy: MP/C009 Coverage Determination Guidelines Medical Policy: MP/T004 Therapeutic Pass REFERENCES: 1. Minnesota Department of Human Services. Partial Hospitalization Program Retrieved from thod=latestreleased&ddocname=id_ Accessed on 07/13/ Centers for Medicare and Medicaid Services. Local Coverage Determination (LCD): Psychiatric Partial Hospitalization Program. Revision 01/01/17. Retrieved from sota&keyword=partial+hospitalization&keywordlookup=title&keywordsearchtype=and&bc=gaaaab AAAAAAAA%3d%3d&. Accessed on 07/13/ Hennepin County Medical Center. Partial Hospital Program. Retrieved from Accessed on 07/13/17. DOCUMENT HISTORY: Created Date: 01/86 Reviewed Date: 11/13/07, 05/13/08, 01/04/11, 12/08/11, 12/07/12, 12/06/13, 03/04/14, 03/04/15, 03/04/16, 07/06/16, 07/05/17 Revised Date: 08/09/05, 08/08/06, 04/07/09, 01/06/10, 04/01/14

5 PreferredOne Community Health Plan Nondiscrimination Notice PreferredOne Community Health Plan ( PCHP ) complies with applicable Federal civil rights laws and does not discriminate on the basis of race, color, national origin, age, disability, or sex. PCHP does not exclude people or treat them differently because of race, color, national origin, age, disability, or sex. PCHP: Provides free aids and services to people with disabilities to communicate effectively with us, such as: Qualified sign language interpreters Written information in other formats (large print, audio, accessible electronic formats, other formats) Provides free language services to people whose primary language is not English, such as: Qualified interpreters Information written in other languages If you need these services, contact a Grievance Specialist. If you believe that PCHP has failed to provide these services or discriminated in another way on the basis of race, color, national origin, age, disability, or sex, you can file a grievance with: Grievance Specialist PreferredOne Community Health Plan PO Box Minneapolis, MN Phone: (TTY: ) Fax: customerservice@preferredone.com You can file a grievance in person or by mail, fax, or . If you need help filing a grievance, a Grievance Specialist is available to help you. You can also file a civil rights complaint with the U.S. Department of Health and Human Services, Office for Civil Rights, electronically through the Office for Civil Rights Complaint Portal, available at or by mail or phone at: U.S. Department of Health and Human Services 200 Independence Avenue, SW Room 509F, HHH Building Washington, D.C , (TDD) Complaint forms are available at Language Assistance Services NDR PCHP LV (10/16)

6 PreferredOne Insurance Company Nondiscrimination Notice PreferredOne Insurance Company ( PIC ) complies with applicable Federal civil rights laws and does not discriminate on the basis of race, color, national origin, age, disability, or sex. PIC does not exclude people or treat them differently because of race, color, national origin, age, disability, or sex. PIC: Provides free aids and services to people with disabilities to communicate effectively with us, such as: Qualified sign language interpreters Written information in other formats (large print, audio, accessible electronic formats, other formats) Provides free language services to people whose primary language is not English, such as: Qualified interpreters Information written in other languages If you need these services, contact a Grievance Specialist. If you believe that PIC has failed to provide these services or discriminated in another way on the basis of race, color, national origin, age, disability, or sex, you can file a grievance with: Grievance Specialist PreferredOne Insurance Company PO Box Minneapolis, MN Phone: (TTY: ) Fax: customerservice@preferredone.com You can file a grievance in person or by mail, fax, or . If you need help filing a grievance, a Grievance Specialist is available to help you. You can also file a civil rights complaint with the U.S. Department of Health and Human Services, Office for Civil Rights, electronically through the Office for Civil Rights Complaint Portal, available at or by mail or phone at: U.S. Department of Health and Human Services 200 Independence Avenue, SW Room 509F, HHH Building Washington, D.C , (TDD) Complaint forms are available at Language Assistance Services NDR PIC LV (10/16)

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