HI SCR104

Department of Human Services is requested to evaluate an alternate methodology for establishing basic prospective payment system (PPS) rates for intermediate care facilities serving individuals with intellectual disabilities.

Department is urged to adopt rules requiring rebasing of basic PPS rates using updated cost report data at least every two fiscal years, rather than the current practice of rebasing every eight years.

Department is urged to adopt rules allowing intermediate care facilities to reserve beds for up to twenty-four days per calendar year for residents absent due to hospitalization or other reasons, increasing from the current twelve-day limit.

Seventeen private, nonprofit intermediate care facilities currently serve up to eighty-two individuals with intellectual disabilities and provide twenty-four hour care, active treatment, and community living services.

Resolution notes that current payment rates do not account for increased costs related to resident care levels, employee wages and benefits, and changing regulatory requirements over the eight-year rate period.