An Act To Provide Certain Requirements for Rules Related to Rate Setting for Mental Retardation Services and Mental Health Managed Care
Maine Legislature, Session 123, LD 1118
Committee: Health and Human Services
Sponsors: MILLS
Amends: 34-B MRSA §5432

Legislative Document 
No.Ill8 
S.P.370 
March 6, 2007 
An Act To Provide Certain Requirements for Rules Related to Rate 
Setting for Mental Retardation Services and Mental Health 
Managed Care 
Reference to the Committee on Health and Human Services suggested and ordered printed. 
Presented by Senator MILLS of Somerset. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 34-B MRSA §5432, sub-§3, as amended by PL 1993, c. 410, Pt. CCC, 
§35, is further amended to read: 
3. Rules. Adopt rules, according to the Maine Administrative Procedure Act, Title 
5, chapter 375, relating to the administration of the services authorized by this article and 
adopt nonemergency major substantive rules, according to Title 5, chapter 375, 
subchapter 2-A, relating to rate setting pursuant to Public Law 2005, chapter 12, Part 
BBBB and Public Law 2005, chapter 519, Part CCC. 
Sec. 2. 
Methodology for provider rate setting under the mental 
retardation waiver. In implementing the pilot program and subsequent rate setting for 
all providers under the mental retardation waiver as required by Public Law 2005, chapter 
519, Part CCC, the Department of Health and Human Services shall develop a 
methodology that includes: 
1. Plans to allocate resources based on uniform standards for assessing the service 
needs of each person receiving services pursuant to the Maine Revised Statutes, Title 34-
B, chapter 5, subchapter 3, article 2; 
2. 
Adjustments for regional housing cost variations as determined for each of 
Maine's 31 labor market areas; 
3. Employee-related expenses defined to incorporate staff turnover and retention 
costs; 
4. 
Operation expenses defined to incorporate administrative overhead, licensing 
costs and costs related to ensuring the health and safety of persons receiving services 
pursuant to Title 34-B, chapter 5, subchapter 3, article 2; and 
5. Transportation costs. 
Sec. 3. Rulemaking for managed behavioral health care services system. 
All rules adopted by the Department of Health and Human Services in implementing 
managed behavioral health care services pursuant to Public Law 2005, chapter 457, Part 
PP; Public Law 2005, chapter 519, Part ZZZ; and Resolve 2005, chapter 203, must be 
non emergency major substantive rules as defined in the Maine Revised Statutes, Title 5, 
chapter 375, subchapter 2-A. 
SUMMARY 
This bill requires the Department of Health and Human Services to adopt 
nonemergency major substantive rules for rate setting for providers of mental retardation 
community services. The bill requires the department, in implementing the pilot program 
and subsequent rate setting for all providers under the mental retardation waiver, to 
establish methodology that includes resource allocation plans based on uniform standards 
for assessing the service needs of each person receiving services, adjustments for regional 
housing 
cost 
variations, 
employee-related 
expenses, 
operation 
expenses 
and 
transportation costs. It requires the department to adopt nonemergency major substantive 
rules for implementing managed behavioral health care services. 
P"!be 2 - 123LR1412(OI)-1