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organization based on the criteria established in (a)(ii) of this 1 subsection. 2 (d) By September 15, 2023, and annually thereafter, the authority 3 shall notify each managed care organization of the performance 4 measures for the organization for the subsequent plan year. 5 (e) Two percent of the total plan year funding provided to each 6 managed care organization that provides services to clients under 7 chapter 70.320 RCW shall be withheld. At least 75 percent of the 8 withhold shall be held contingent on each managed care organization's 9 performance on the seven performance measures identified in this 10 subsection. Each managed care organization may earn back the annual 11 withhold if the external quality improvement organization finds that 12 the managed care organization: 13 (i) Made statistically significant improvement in the seven 14 performance measures as compared to the preceding plan year; or 15 (ii) Scored in the top national medicaid quartile of the 16 performance measures. 17 (f) The amount of withhold annually paid to each managed care 18 organization shall be proportional to findings of statistically 19 significant improvement or top national medicaid quartile scoring by 20 a managed care organization. 21 (g) For no more than two of the four quality focus performance 22 measures, the authority may use an alternate methodology to 23 approximate top national medicaid quartile performance where top 24 quartile performance data is unavailable. 25 (h) For the purposes of this subsection, "external quality 26 improvement organization" means an organization that meets the 27 competence and independence requirements under 42 C.F.R. Sec. 28 438.354, as it existed on the effective date of this section. 29 (i) By September 15, 2023, the authority, in collaboration with 30 the medical assistance expenditure forecast work group, shall develop 31 new performance measures for the 2025 plan year. Quality focus 32 performance measures chosen by the authority must, at a minimum: 33 (A) Be chosen from the statewide common measure set; 34 (B) Reflect specific measures where a managed care organization 35 has poor performance; 36 (C) Be substantive and clinically meaningful in promoting health 37 status; 38 (D) Include ways to improve behavioral health reporting; 39 (E) Be selected with consideration to health equity; 40 p. 223 ESSB 5187.SL