Indiana Administrative Code › Title 405 - OFFICE OF THE SECRETARY OF FAMILY AND SOCIAL SERVICES › Article 1 - MEDICAID PROVIDERS AND SERVICES › Rule 12 - Rate-Setting Criteria for Nonstate-Owned Intermediate Care Facilities for the Mentally Retarded and Community Residential Facilities for the Developmentally Disabled › Section 12-20 - Allowable costs; calculation of allowable owner or related party compensation; wages; salaries; fees; fringe benefits

Current through July 10, 2024
Authority: IC
				  12-15-1-10; IC
				  12-15-21-2
Affected: IC
				  12-13-7-3; IC 12-15
Sec. 20.
(a)
				Compensation for owner, related party, management, general line personnel, and
				consultants who perform management functions, or any individual or entity
				rendering services above the department head level shall be subject to the
				annual limitations described in this section. All compensation received by the
				parties as described in this subsection shall be reported and separately
				identified on the financial report form even though such payment may exceed the
				limitations. This compensation is allowed to cover costs for all
				administrative, policy making, decision making, and other management functions
				above the department head level. This includes wages, salaries, and fees for
				owner, administrator, assistant administrator, individuals within management,
				contractors, and consultants who perform management functions, as well as any
				other individual or entity performing such tasks.
(b) The maximum amount of owner, related
				party, management compensation for the parties identified in subsection (a)
				shall be the lesser of the amount under subsection (d), as updated by the
				office on July 1 of each year by determining the average rate of change of the
				most recent twelve (12) quarters of the Gross National Product Implicit Price
				Deflator, or the amount of patient or resident related wages, salaries, or fees
				actually paid or withdrawn which were properly reported to the Internal Revenue
				Service as wages, salaries, fringe benefits, expenses, or fees. If liabilities
				are established, they shall be paid within seventy-five (75) days after the end
				of the accounting period or such costs shall be disallowed.
(c) In addition to wages, salaries, and fees
				paid to owners under subsection (b), the office will allow up to twelve percent
				(12%) of the appropriate schedule for fringe benefits, business expenses
				charged to an operation, and other assets actually withdrawn that are patient
				or resident related. These expenses include fringe benefits that do not meet
				nondiscriminatory requirements of the Internal Revenue Code, entertainment,
				travel, or continuing education. Other assets actually withdrawn include only
				those items that were actually accrued and subsequently paid during the cost
				reporting period in which personal services were rendered and reported to the
				Internal Revenue Service as fringe benefits, expenses, or fees. If liabilities
				are established, they shall be paid within seventy-five (75) days after the end
				of the accounting period or such costs shall be disallowed.
(d) The owner, related party, and management
				compensation and expense limitation per operation effective July 1, 1993, shall
				be as follows:
Owner and Management
								Compensation
Owner's Expense
Beds
Allowance
(12% × bed allowance)
10
$18,527
$2,223
20
$24,717
$2,966
30
$30,887
$3,706
40
$37,049
$4,446
50
$43,241
$5,189
60
$46,948
$5,634
70
$50,657
$6,079
80
$54,362
$6,523
90
$58,055
$6,967
100
$61,763
$7,412
110
$66,731
$8,007
120
$71,663
$8,600
130
$76,628
$9,195
140
$81,546
$9,786
150
$86,496
$10,380
160
$91,427
$10,971
170
$96,378
$11,565
180
$101,313
$12,157
190
$106,262
$12,751
200
$111,196
$13,343
200 and over
$111,196 plus $225 per bed over 200
$13,343 plus $27 per bed over 200
This subsection applies to each provider of a certified
				  Medicaid operation. The unused portions of the allowance for one (1) operation
				  shall not be carried over to other operations.