CT HB05285

Effective October 1, 2012, the Commissioner of Social Services may add a capital cost rate adjustment to community health center Medicaid rates based on year-to-year increases in allowable depreciation and interest expenses for major capital projects

Capital costs include land/building purchases, fixed assets, movable equipment, capitalized financing fees, and capitalized construction period interest for projects exceeding $2 million

The commissioner must establish separate capital cost rate adjustments for each Medicaid service provided by a center

The commissioner may revise capital cost adjustments retroactively based on actual allowable depreciation and interest expenses or actual service visit volume

Capital cost rate adjustments are prohibited for depreciation or interest expenses disapproved by the federal Department of Health and Human Services or other relevant federal or state agencies with capital expenditure approval authority