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S.F. No. 3116 - Intermediate Care Facility for Persons with Developmental Disabilities (ICF/DD) Payment Rates Modifications
Author: Senator Bruce D. Anderson
Prepared By: Liam Monahan, Senate Analyst (651/296-1791)
Date: February 24, 2020


SF No. 3116 increases ICF/DD operating rates approximately 10.25 percent over three years and indexes future additional operating rate increases to changes in the disability waiver rate system.  SF No. 3116 also increases a component of the ICF/DD operating rate related to increases in the service and staffing needs of individuals.

Section 1 (256B.5012, paragraph (d)) effective for fiscal year 2025,  indexes future ICF/DD rate increases to the percent increase in the base wage index under the disability waiver rate system.

Section 2 (256B.5012, subdivision 18) effective for fiscal year 2021, increases ICF/DD rates by five percent over the rates in effect on July 30, 2020.

Section 3 (256B.5012, subdivision 19) effective for fiscal year 2023, increases ICF/DD rates by five percent over the rates in effect on July 30, 2022.

Section 4 (256B.5013, subdivision 1, paragraph (a)) modifies the conditions under which an intermediate care facility for persons with developmental disabilities is eligible for an increased ICF/DD rate to enable the facility to meet a particular individual’s documented increase in need. This paragraph also removes an existing 12-month limit on the increased rate and allows the increased rate to remain in place unless the needs of the particular individual for whom the increased rate was granted change.

New Paragraph (b) requires the county of financial responsibility to act on an increased rate request within 30 days of the request.

Old paragraphs (c) to (e) remove various requirements of counties and facilities related to justifying the use of funds made available through an increased rate, report on the uses of the funds, and prevent funds from being diverted away from providing services to the individual for whom the increased rate was granted.

New paragraph (c) adds cognitive needs and increased staffing needs as additional circumstances under which a county can recommend that a requested increased rate be granted.

New Paragraph (d) specifies the information a facility must provide when making a request for an increased rate.

Section 5 (256B.5013, subdivision 6) makes a conforming change to the duties of the commissioner of human services.

Section 6 (256B.5015, subdivision 2, paragraph (a)) increases the rate for services during the day from 75 percent of the rate that would have been paid for an individual to participate in day training and habilitation to 100 percent of that rate.

Paragraph (b) specifies the conditions under which an individual qualifies for services during the day, and thus for reimbursement for those services under paragraph (a).

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