Section 503 of CHIPRA requires State CHIP programs to follow the requirements of Section 1902(bb) of the Social Security Act (the Act), which implemented a prospective payment system for Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs) under the Medicaid program in 200 1.
To comply with section 1902(bb) of the Act, State CHIP programs are required to develop a prospective payment system (PPS) or an alternative payment methodology (APM) agreed to by the FQHCs and RHCs to pay for these services.