Indiana Administrative Code › Title 405 - OFFICE OF THE SECRETARY OF FAMILY AND SOCIAL SERVICES › Article 1 - MEDICAID PROVIDERS AND SERVICES › Rule 17 - Rate-Setting Criteria for State-Owned Intermediate Care Facilities for the Mentally Retarded › Section 17-15 - 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
				  12-15-1-15; IC
				  12-15-21-2
Affected: IC
				  12-13-7-3; IC 12-15
Sec. 15.
(a)
				Compensation for management, consultant, 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 and consultant functions above
				the department head level. This includes wages, salaries, and fees for owner,
				administrator, assistant administrator, management, contractor, and consultant
				as well as any other individual or entity performing such tasks.
(b) The maximum amount of 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				of patient related wages, salaries, or fees actually paid or withdrawn which
				were properly reported to the federal 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				charged to an operation, and other assets actually withdrawn that are patient
				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
				federal 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 management
				compensation and expense limitation per operation effective July 1, 1995, shall
				be as follows:
Owner and Management
								Compensation
Owner's Expenses
Beds
Allowance
(12% × bed allowance)
10
$21,542
$2,585
20
$28,741
$3,449
30
$35,915
$4,310
40
$43,081
$5,170
50
$50,281
$6,034
60
$54,590
$6,551
70
$58,904
$7,068
80
$63,211
$7,585
90
$67,507
$8,101
100
$71,818
$8,618
110
$77,594
$9,311
120
$83,330
$10,000
130
$89,103
$10,692
140
$94,822
$11,379
150
$100,578
$12,069
160
$106,311
$12,757
170
$112,068
$13,448
180
$117,807
$14,137
190
$123,562
$14,827
200
$129,298
$15,516
200 & over
$129,298+
$15,516+
$262/bed over 200
$31/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.