Connecticut Administrative Code › Title 17 - Public Assistance and Welfare Services › 313b - Establishment of Rates for Community Living Arrangements Licensed by the Department of Mental Retardation › Section 17-313b-5 - Computation of per diem room and board reimbursement rates for community living arrangements owned or leased by the licensee excluding units leased in multi-unit structures

Current through July 10, 2024
The system for determining per diem rates for room and board
				payment by the Department of Income Maintenance for persons eligible pursuant
				to Chapter 302, Part III, G.S., who are residents of community living
				arrangements which are owned or leased by the licensee, excluding units leased
				in multi-unit structures which is computed in accordance with Sec.
				17-313b-6,
				shall be an individual historical cost related prospective rate system derived
				from the documents filed pursuant to Secs.
				17-313b-2
				and -3, per diem room and board reimbursement rates shall be promulgated
				annually, effective July 1, based upon costs reported in the ACOR filed the
				preceding October.
Per diem room and board reimbursement rates for community
				living arrangements owned or leased by the licensee, excluding units leased in
				multi-unit structures, shall be calculated based upon:
(1) An amount of property costs based upon a
			 fair rental value system.
(i) The fair rental
			 value amount shall be in lieu of interest on mortgages, other property
			 financing costs, depreciation on buildings and non-movable equipment and rental
			 charges. The amount shall be computed in the same manner whether the living
			 arrangement is owned or leased or whether the community living arrangement is
			 operated by an individual owner/partnership or a corporation.
(ii) The fair rental value amount consists of
			 a rental amount for use of land, buildings and non-movable equipment related to
			 resident care.
(A) The annual fair rental
			 value amount for the use of land shall be determined by multiplying the base
			 value of the land by a rate of return which is equal to one-third of the
			 Medicare rate of return for the contract year but not more than four percent
			 nor less than two and one-half percent per annum.
(B) Real propety other than land consists of:
(1) Buildings and building
			 improvements;
(2) All equipment
			 attached to buildings and considered to be real property as distinguished from
			 personal property; and
(3) Land
			 improvements, including parking lots, driveways, sidewalks, sewerage systems,
			 walls and pump houses.
The fair rental value amount is calculated to yield a constant
				amount each year in lieu of interest and depreciation costs. Such amount for
				the use of real property other than land shall be determined by amortizing the
				base value of such property over its remaining useful life and applying a rate
				of return on the unamortized base value. The base value of all real property
				other than land shall be the actual cost of the property less the accumulated
				depreciation from the date of acquisition to the date of first use as a
				licensed residence for persons with mental retardation. The remaining useful
				life is thirty years from the date of first use as a community living
				arrangement for mentally retarded persons. The annual rate of return shall be
				calculated in accordance with the procedures specified in Section
				17-311-52
				-(f) (2) (b) of the Regulations of Connecticut State Agencies as amended,
				except for the factor which is applied to the medicare rate of return which
				shall be 1.5, not 1.0.
In any situation where book values are incomplete or
				questionable and therefore may not reflect the value on the date of
				acquisition. The commissioner may disallow any claim for such unsupported
				amount or may in his discretion establish a value based on property values of
				comparable properties and/or residences.
Upon a change of ownership of a community living arrangement
				the commissioner, in consultation with the Commissioner of Mental Retardation,
				may modify the base values of the property for the new owner if deemed in the
				best interest of the clients residing in the community living arrangement and
				is appropriate, equitable and does not prejudice the interests of the
				state.
For purposes of reimbursement, a minimum residual value is
				established for real property other than land at 10% of the cost of such
				property. The amount for the use of such property shall not be less than the
				amount determined by applying the appropriate Medicare rate of return to the
				minimum residual value.
(iii) In the event of an unforeseen or
			 material change in allowable property costs, which are not reflected in the
			 cost base, the community living arrangement may submit a request, in writing,
			 to the Commissioner for an increase to reflect such change in the fair rental
			 value amount.
Based on the consideration of the date presented and any other
				factors as the Commissioner deems pertinent, the Commissioner may decide that
				an adjustment in property basis is in the best interest of the clients residing
				in the community living arrangement and is appropriate, equitable, and does not
				prejudice the interest of the state.