Ala. Admin. Code r. 560-X-22-.07

Current through Register Vol. 43, No. 1, October 31, 2024

Section 560-X-22-.07 - Medicaid Inflation Index

(1) The Medicaid Inflation Index will be used in lieu of budgeting to adjust certain actual allowable costs from one reporting period for the purpose of computing the per diem rate payable for a subsequent reporting period and for such other adjustments as may be specified in this chapter.

(2) The Medicaid Inflation Index shall be based upon the economic indicators as published by Data Resources, Inc., (DRI) for the Department of Health and Human Services. The indicators shall be the Market Basket Index of Operating Costs - Skilled Nursing Facility, which are published quarterly, whereas the Medicaid fiscal year for cost reporting and rate setting purposes ends on June 30th. Therefore, the Medicaid Inflation Index for a rate period will be the DRI Index for the twelve-month period ending on the calendar quarter for which the index has been published or made available at October 1st of each year.

(3) The Medicaid Inflation Index will be established each October 1st for the current fiscal year based upon the information then available to Medicaid and will not be adjusted again until the next following October 1st, regardless of any later release of revised or additional information relevant to the determination of the index.

(4) Interim Inflation Factor. The interim rate shall be the lower of the latest allowable computed rate [Rule 560-X-22-.05(l)(b)] or the ceiling rate per day. The applicable allowable rate per day shall be trended by the Alabama Medicaid trend factor. The trend factor shall be the National Forecast-Nursing Home Market Basket for the following fiscal year as published by Data Resources, Inc. This forecast is published quarterly; therefore, the latest forecast available at June 1st each year shall be used.

Ala. Admin. Code r. 560-X-22-.07

Rule effective 10/1/1982. Amended effective 9/8/1984; July 9, 1985. Emergency rule effective 10/1/1990. Amended effective 10/1/1990; December 14, 1990. Amended: Filed December 8, 1997; effective 1/12/1998.

Author: Susan Mims

Statutory Authority: State Plan; Title XIX, Social Security Act; 42 C.F.R., §§ 447.200 - .272.