S.F. No. 3263 Summary

• Increases reimbursement rates by 5 percent effective July 1, 2016, for intermediate care facilities for persons with developmental disabilities (ICF/DD), with the increase composed of 3 percent workforce compensation, 1 percent quality component, and 1 percent person-centered component.

• Requires facilities to use 90 percent of workforce compensation funds for direct employee compensation-related costs, excluding central office and management contract employees, with distribution plans subject to commissioner approval.

• Extends 5 percent rate increases effective July 1, 2016, to home and community-based services providers across 26 eligible service categories, with identical component breakdowns (3 percent workforce, 1 percent quality, 1 percent person-centered).

• Mandates providers submit documentation by June 30, 2017, demonstrating quality improvement and person-centered community integration projects to receive the quality and person-centered portions of rate increases.

• Repeals previous ICF/DD rate adjustment provisions (subdivisions 4-11 and 14 of section 256B.5012) and requires county contracts to pass through rate increases within 60 days.