OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments

May 10, 2004 The federal Office of Budget and Management (OMB) circular was cited by the federal Centers for Medicare & Medicaid Services (CMS) in a notice to the State of Washington in which CMS informed the state that its contracting procedures for the Regional Support Networks (RSN) that are paid a capitated rate manage Medicaid specialty mental health services were out of compliance with federal procurement rules. The state gives the counties first right of refusal for the RSN contracts; only one of the 11 RSNs was selected via a competitive process. Most of the RSNs are operated by . . .