Changes to intermediate care facility reimbursement funds approved

Senators gave final approval May 29 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, changes allocation of the state’s ICF/MR Reimbursement Protection Fund.

The bill requires 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.

LB23 requires, 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;
• $1 million to the state’s General Fund; 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.

DHHS is required to provide an annual report to the Legislature regarding the amounts collected from each tax and the amount of each disbursement from the fund.

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

The bill passed 46-0.