HI SCR79

Requests the Director of Human Services to rebase Medicaid payment rates for intermediate care facilities for individuals with intellectual disabilities effective July 1, 2015, using cost reports from the base year ending June 30, 2013.

Current basic prospective payment system rates have been in effect since 2007 based on fiscal year 2005 cost data, exceeding the 8-year maximum allowed under Hawaii Administrative Rules.

Urges the Director of Health to include sufficient funding in the 2015-2017 biennium budget to cover any rate increases resulting from the rebasing.

Notes that mandatory inflation adjustments to payment rates have been suspended since fiscal year 2012 despite regulatory requirements, creating financial hardship for facility operators.

Applies to seventeen intermediate care facilities with a combined maximum of eighty-two beds serving individuals with intellectual and developmental disabilities on Medicaid.