Changes to intermediate care facility reimbursement funds advance

Senators gave second-round approval April 30 to a bill intended to improve utilization of a reimbursement fund for intermediate care facilities for individuals with developmental disabilities, known as ICF/MR.

LB23, introduced by Kearney Sen. Galen Hadley, would change allocations of the state’s ICF/MR Reimbursement Protection Fund.

The bill would require the state Department of Health and Human Services (DHHS), beginning July 1, 2014, to use the ICF/MR Reimbursement Protection Fund – including the matching federal participation funds – to enhance rates paid under Medicaid to ICF/MR and for annual contributions to community-based programs for persons with developmental disabilities.

Beginning July 1, 2014, the bill allows for the tax to end if federal participation funds become unavailable or if money in the ICF/MR Reimbursement Protection Fund is appropriated, transferred or otherwise expended for any use other than permitted by law.

The bill also incorporates LB343, originally introduced by Lincoln Sen. Colby Coash, which would replace the term “mental retardation” in state law with the term “intellectual disability.”

As amended on general file, the bill would require, beginning in fiscal year 2014-15, that funds be remitted from the ICF/MR Reimbursement Protection Fund as follows:
• the first $55,000 for administration of the fund;
• the amount needed to reimburse the cost of the tax to ICF/MR;
• $312,000 for community-based services for persons with developmental disabilities; and
• the remaining proceeds of the tax amount available in the fund to enhance rates in non-state-operated ICF/MR by increasing the annual inflation factor to the extent allowed by such proceeds and any funds appropriated by the Legislature.

Hadley offered an amendment on select file to specify that $1 million would be remitted to the state’s General Fund prior to distribution of the remaining proceeds to enhance rates to ICF/MR not operated by the state.

The amendment also would require DHHS to provide an annual report to the Legislature regarding the amounts collected from each tax and the amount of each disbursement from the fund.

Following adoption of the Hadley amendment on a 33-0 vote, senators advanced the bill to final reading by voice vote.