Idaho Administrative Code › Title IDAPA 16 - Health and Welfare, Department of › Rule 16.03.10 - MEDICAID ENHANCED PLAN BENEFITS › SUB-PART: CHILDREN'S DEVELOPMENTAL DISABILITIES (DD) HOME AND COMMUNITY-BASED SERVICES (HCBS) STATE PLAN OPTION › Section 16.03.10.591 - ICF/IID: NONALLOWABLE COSTS

Current through August 31, 2023
The following definitions and explanations apply to
				  nonallowable costs: (3-17-22)
01.
Accelerated Depreciation
. Depreciation in excess of calculated
				straight line depreciation, except as otherwise provided is nonallowable.
				(3-17-22)
02.
Acquisitions
. Costs of corporate acquisitions, such as purchase of
				corporate stock as an investment, are nonallowable. (3-17-22)
03.
Charity Allowances
. Cost of
				free care or discounted services are nonallowable. (3-17-22)
04.
Consultant Fees
. Costs
				related to the payment of consultant fees in excess of the lowest rate
				available to a facility are nonallowable. It is the provider's responsibility
				to make efforts to obtain the lowest rate available to that facility. The
				efforts may include personally contacting possible consultants or advertising.
				The lowest rate available to a facility is the lower of the actual rate paid by
				the facility or the lowest rate available to the facility, as determined by
				departmental inquiry directly to various consultants. Costs in excess of the
				lowest rate available will be disallowed effective thirty (30) days after a
				facility is notified, unless the provider shows by clear and convincing
				evidence it would have been unable to comply with state and federal standards
				had the lowest rate consultant been retained or that it tried to but was unable
				to retain the lowest rate consultant. This subsection in no way limits the
				Department's ability to disallow excessive consultant costs under other
				sections of this chapter, such as Section
				589 or
				595 of these rules, when
				applicable. (3-17-22)
05.
Fees
. Franchise fees are nonallowable, see PRM, Section
				2133.1. (3-17-22)
06.
Fund Raising
. Certain fund
				raising expenses are nonallowable, see PRM, Section
				2136.2. (3-17-22)
07.
Goodwill
. Costs associated
				with goodwill as defined in Section
				011 of these rules are
				nonallowable. (3-17-22)
08.
Holding Companies
. All home office costs associated with holding
				companies are nonallowable see PRM, Section
				2150.2A. (3-17-22)
09.
Interest
. Interest to
				finance nonallowable costs are nonallowable. (3-17-22)
10.
Medicare Costs
. All costs
				of Medicare Part A or Part B services incurred by Medicare certified
				facilities, including the overhead costs relating to these services are
				nonallowable. (3-17-22)
11.
Nonpatient Care Related Activities
. All activities not related to
				patient care are nonallowable. (3-17-22)
12.
Organization
. Organization
				costs are nonallowable, see PRM, Section
				2134. (3-17-22)
13.
Pharmacist Salaries
.
				Salaries and wages of pharmacists are nonallowable. (3-17-22)
14.
Prescription Drugs
.
				Prescription drug costs are nonallowable. (3-17-22)
15.
Related Party Interest
.
				Interest on related party loans are nonallowable, see PRM, Sections
				218.1 and
				218.2. (3-17-22)
16.
Related Party Nonallowable
				Costs
. All costs nonallowable to providers are nonallowable to a related
				party, whether or not they are allocated. (3-17-22)
17.
Related Party Refunds
. All
				refunds, allowances, and terms, will be deemed to be allocable to the members
				of related organizations, on the basis of their participation in the related
				purchases, costs, etc. (3-17-22)
18.
Self-Employment Taxes
.
				Self-employment taxes, as defined by the Internal Revenue Service, that apply
				to facility owners are nonallowable. (3-17-22)
19.
Telephone Book Advertising
.
				Telephone book advertising costs in excess of the base charge for a quarter
				column advertisement for each telephone book advertised in are nonallowable.
				(3-17-22)
20.
Vending
				Machines
. Costs of vending machines and cost of the product to stock the
				machine are nonallowable costs. (3-17-22)