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(2) upon receiving validation through the CMS registry, notify the provider of the approval. (b) If the department determines that a provider does not meet the requirements of 7 AAC 165.010 and 7 AAC 165.020, or if the department does not receive validation from CMS, the department will notify the provider of the

(1) reason for denial; and

(2) the provider’s right to request an appeal under 7 AAC 165.080. (c) If a change occurs in the information that the department used to deny participation, or that previously resulted in a failure to receive CMS validation, the provider may submit a new or updated attestation at any time during that payment year. (Eff. 6/1/2011, Register 198) Statutory Authority: Authority: AS 47.05.010 AS 47.07.030 AS 47.07.040 7 AAC 165.040. Incentive payments. (a) The department will make an incentive payment to a provider under this chapter in accordance with

(1) the requirements of 42 C.F.R. 495.308 — 495.312, revised as of September 4, 2012, and adopted by reference; and

(2) if a hospital provider, the payment schedule identified in (b) of this section. (b) If a hospital provider continues to be eligible for participation in the Alaska Medicaid electronic health record incentive program each payment year, the department will pay, as follows, the aggregate amount determined under this chapter and 42 C.F.R. 495.310, adopted by reference in (a)(1) of this section, to that provider:

(1) in the first year of participation, 50 percent of the aggregate amount;

(2) in second year of participation, 40 percent of the aggregate amount;

(3) in the third year of participation, 10 percent of the aggregate amount. (c) Before making a payment under this chapter, the department will verify that the federal