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 16.03.10.630 - ICF/IID: PROPERTY RENTAL RATE REIMBURSEMENT

Current through August 31, 2023
ICFs/IID will be paid a property rental rate. Property taxes,
				  property insurance, and depreciation expense or major moveable equipment will
				  be reimbursed as costs exempt from limitations. The property rental rate does
				  not include compensation for minor movable equipment. The property rental rate
				  is paid in lieu of payment for amortization, depreciation, and interest for
				  financing the cost of land and depreciable assets. See Sections
				  56-108 and
				  56-109, Idaho Code, for further
				  clarification. (3-17-22)
01.
Property Rental Rate
. The property rental rate is based upon
				current construction costs, the age of the facility, the type of facility, and
				major expenditures made to improve the facility, or a rate based upon property
				costs as of January 1, 1985. The amount paid for each Medicaid day of care will
				be phased in according to the following: (3-17-22)
a. R = "Property Base" x 40 - "Age" / 40 x
				"change in building costs" where: (3-17-22)
b. "R" = the property rental rate.
				(3-17-22)
c. "Property Base" =
				eleven dollars and twenty-two cents ($11.22) except for ICF/IID living units
				not able to accommodate residents requiring wheelchairs beginning October 1,
				1996. Property base = seven dollars and twenty-two cents ($7.22) for ICF/IID
				living units not able to accommodate residents requiring wheelchairs.
				(3-17-22)
d. "Change in building
				costs" = 1.0 from October 1, 1996, through December 31, 1996. For ICF/IID
				facilities, the most recent index available when it is first necessary to set a
				prospective rate for a period that includes all or part of the calendar year,
				will be used. (3-17-22)
e. "Age" of
				facility - The effective age of the facility in years will be set by
				subtracting the year in which the facility, or portion thereof, was constructed
				from the year in which the rate is to be applied. No facility or portion
				thereof will be assigned an age of more than thirty (30) years, however:
				(3-17-22)
i. If adequate information is not
				submitted by the facility to document that the facility, or portion thereof, is
				newer than thirty (30) years, the age will be set at thirty (30) years.
				Adequate documentation will include, but not be limited to, such documents as
				copies of building permits, tax assessors' records, receipts, invoices,
				building contract, and original notes of indebtedness. An age will be
				determined for each building. A weighted average using the age and square
				footage of the buildings will become the effective age of the facility. The age
				of each building will be based upon the date when construction on that building
				was completed. This age will be adjusted to reflect major building expansion or
				remodeling prior to April 1, 1985, if that expenditure was large enough to
				reduce the age of the facility by two (2) or more years according to the
				following formula:
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Where:
r = Reduction in the age of the facility in
								years.
A = Age of the building at the time when
								construction was completed.
E = Actual expenses for the construction provided
								that the total costs must have been incurred within twenty-four (24) months of
								the completion of the construction.
S = The number of square feet in the building at
								the end of construction.
C = The cost of construction for the buildings in
								the year when construction was completed according to the schedule in
								Subsection 630.01.d.ii.
If the result of this calculation, "r" is equal to or greater
				  than two point zero (2.0), the age of the building in years will be reduced by
				  this number, rounded to the nearest whole number for rate setting purposes. In
				  no case will the age be less than zero (0). (3-17-22)
ii. For rates paid after June 30, 1989, the
				effective age of a facility will be further adjusted when the cost of major
				repairs, replacement, remodeling, or renovation of a building initiated after
				April 1, 1985, results in the change in age by at least one (1) year when
				applied to the formula in Subsection
				630.01.d.i. However, such
				change will not decrease the effective age of a facility beyond the point where
				the increase in the property rental rate is greater than three-fourths (3/4) of
				the difference between the property rental rate "r" for a new facility at the
				time of the proposed rate revision and the property rental rate for which the
				facility was eligible immediately before the adjustment. The cost used for "C"
				will be adjusted according to costs published by Marshall Swift Valuation
				Service to reflect current construction costs for average Class D convalescent
				hospitals. It is the provider's responsibility to notify the Department and
				document costs. The Department will adjust the age after documentation of
				costs. (3-17-22)
iii. In the event
				that new requirements are imposed by state or federal agencies, the Department
				will reimburse the expenditures directly related to these requirements as an
				increase in the property rental rate if the expense is in excess of one hundred
				dollars ($100) per bed. If the cost related to the requirement is less than one
				hundred dollars ($100) per bed, the Department will, within twelve (12) months
				of verification of expenditure, reimburse the Medicaid share of the entire cost
				of such new requirements, as a one (1) time payment to the facility.
				(3-17-22)
iv. At no time will the
				property rental rate paid to a facility be less than the greater of the rate
				allowable to that facility on December 31, 1988, the rate allowable immediately
				following the first opening of a new facility after December 31, 1988, or the
				rate allowable immediately following the last, if any, age revision after
				December 31, 1988. However, subsequent to the application of this provision,
				before any property rental rate increase may be made for current or successor
				operators, the final settlement amount of any increase in the property rental
				rate will first be offset by an amount equal to the impact on final settlement
				of any rate decrease that would have occurred if the provisions of Subsections
				630.01.d.iii. and
				630.01.d.iv. of these rules had not been applied. This is intended to allow the
				postponement of the financial burden to providers of property rental rate
				decreases and to allow an equal offset of the financial burden to the state of
				subsequent property rate increases for a current or successor provider.
				(3-17-22)
v. Effective October 1,
				1996, for ICF/IID facilities, "age of facility" will be a revised age that is
				the lesser of the age established under other provisions of this Section or the
				age that most closely yields the rate allowable to existing facilities as of
				September 30, 1996, under Subsection
				630.01 of these rules. This
				revised age will not increase over time.
				(3-17-22)