(g) At the discretion of the commissioner, the voluntary agency must execute, at the time the FDC loan is made or at any time during the term of such loan:

(1) an assignment to OPWDD of a portion of the facility’s periodic rate or fee reimbursement which it receives [pursuant to section 681.12, 686.13 or 690.12 of this Title] as a result of services rendered to OPWDD and/or the New York State Medicaid program; or

(2) an assignment of all or a portion of any other periodic rate or fee reimbursement receivable by such voluntary agency [pursuant to this Chapter] as a result of services rendered to OPWDD and/or the New York State Medicaid program; or

• Existing clause 621.11(a)(8) is amended as follows:

(8) costs incurred prior to the date of the first admission, during the period described in section[s] [681.12(c)(5)(i),] 686.13(c)(4)(i) [and 690.12(d)(2)(viii)(a)] of this Chapter, including personal service, utilities, taxes, insurance, employee training, housekeeping, repair and maintenance, security, and administrative expenses;

• Existing clause 621.11(a)(9) is amended as follows:

(9) operational costs for up to three months from the date of the first admission, subject to the immediate repayment, at the discretion of the commissioner, of any or all of that portion of the loan principal attributable to such costs. For facilities for which the voluntary agency receives reimbursement rates or fees [pursuant to Part 681, 686, or 690 of this Chapter] as a result of services rendered to OPWDD and/or the New York State Medicaid program, such repayment may be based on an assignment to OPWDD of the voluntary agency’s rate or fee reimbursement for operational costs during such period, which may, at the discretion of the commissioner, be required from the voluntary agency in the format prescribed by the commissioner;

• Existing clause 621.11(a)(13)

(13) such other costs as the commissioner may determine to be reasonable and necessary; provided that such costs are allowable pursuant to the Medicare Provider Reimbursement Manual. [The availability of that document is set forth in section 681.12(c)(10)(i) of this Chapter.]

• Subsection 621.12(b) is amended as follows:

(b) Charges for operational period. The charge payable to OPWDD by the voluntary agency during the period from the occupancy date to the end of the loan term shall be an annual charge of.2 of one percent of the mortgage loan, payable on a monthly or other periodic basis pursuant to an assignment which shall be required from the voluntary agency to OPWDD to be made in the format prescribed by the commissioner. For facilities for which the voluntary agency receives reimbursement rates or fees [pursuant to Part 681, 686, or 690 of this Chapter] as a result of services rendered to OPWDD and/or the New York State Medicaid program, such assignment may require the annual charge to be paid from the periodic payment of the voluntary agency’s rate or fee reimbursement.

• Subsection 621.12(d) is amended as follows:

(d) MCFFA annual administrative charges. The annual administrative charges imposed by MCFFA shall be payable to OPWDD by the voluntary agency from the date of the mortgage loan closing, on a monthly or other periodic basis pursuant to an assignment which shall be required from the voluntary agency to OPWDD to be made in the format prescribed by the Commissioner. For facilities for which the voluntary agency receives reimbursement rates or fees [pursuant to Part 681, 686, or 690 of this Chapter] as a result of services rendered to OPWDD and/or the New York State Medicaid program, such assignment may require the annual charge to be paid from the periodic payment of the voluntary agency’s rate or fee reimbursement.

• Subsection 641-2.1 is amended as follows:

[On and after July 1, 2014, r] Rates of reimbursement for intermediate care facilities for persons with developmental disabilities (ICF/DD), other than those operated by OPWDD, shall be determined in accordance with 10 NYCRR Part 86-11. The rates of payment made for services rendered to title XIX recipients established in accordance with the methodology contained in 10 NYCRR Part 86-11 shall be contingent upon Federal financial participation (FPP) and approval. [this Subpart.]

• Subsections 641-2.2 – 641-2.10 are repealed in their entirety.

• Subpart 676.11 is repealed and reserved.

• Subpart 690.7 is repealed and a new section (a) shall be inserted as follows:

Rates of payment made for day treatment services rendered to title XIX recipients shall be at the levels set forth in the approved New York Medicaid State Plan. The rates shall be contingent upon Federal financial participation (FPP) and approval.

• Existing sections (d) and (e) of Part 680.12 are repealed and a new section (d) shall be inserted as follows:

Rates of payment made for specialty hospital services rendered to title XIX recipients shall be at the levels set forth in the approved New York Medicaid State Plan. The rates shall be contingent upon Federal financial participation (FPP) and approval.

• Existing section (f) of Part 680.12 is re-lettered to (e) and reads as follows:

o [(f)] (e) Audits.

• Existing Subpart 681.14(a) is deleted.

• New Subpart 681.14(a) is added to read as follows:

• Remainder of Subpart 681.14 is repealed.

1. Statutory Authority:

a. The Office for People With Developmental Disabilities (OPWDD) has the statutory responsibility to provide and encourage the provision of appropriate programs, supports, and services in the areas of care, treatment, habilitation, rehabilitation, and other education and training of persons with intellectual and developmental disabilities, as stated in Mental Hygiene Law (MHL) Section 13.07.

b. OPWDD has the statutory authority to adopt rules and regulations necessary and proper to implement any matter under its jurisdiction as stated in MHL Section 13.09(b).

c. OPWDD has the statutory authority to adopt regulations concerned with the operation of programs and the provision of services, as stated in MHL Section 16.00. The regulation also ensures compliance by OPWDD certified and operated residences with the proper provision of services.

d. OPWDD and the New York State Department of Health (DOH) have the statutory authority to develop rate setting methodologies and to promulgate rules and regulations regarding rate setting methodologies applying to facilities under the jurisdiction of OPWDD, pursuant to Mental Hygiene Law Section 43.02.

2. Legislative Objectives: The proposed regulations amend and repeal rate setting regulations that are no longer in use, inconsistent with the New York Medicaid State Plan, or are duplicative of regulations promulgated by DOH, which is the single State Medicaid Agency.

3. Needs and Benefits: These changes are necessary to amend and repeal rate setting regulations which are obsolete, inconsistent with payment methodologies in the New York Medicaid State Plan, or duplicative of regulations promulgated by DOH as the single State Medicaid Agency. These regulatory changes include:

• Amendment of 14 NYCRR Subparts 641-2 and 681.14 to repeal those regulations and to clarify that rate setting regulations for Intermediate Care Facilities for Individuals with Intellectual Disabilities are found at 10 NYCRR Subpart 86-11, promulgated by the New York State Department of Health as the single State Medicaid Agency.

• Amendment of 14 NYCRR Subparts 680.12 and 690.7 to repeal rate setting regulations that apply to OPWDD Specialty Hospitals and day treatment facilities, respectively, and replace with a reference to the approved New York Medicaid State Plan, as the existing regulations are inconsistent with the reimbursement fees that are set forth in the State Plan approved by the federal Centers for Medicare and Medicaid Services.

• Repeal and reserve 14 NYCRR Subpart 676.11 and 690.7 which contain obsolete reimbursement provisions for OPWDD diagnostic and research clinics.

• Amend portions of 14 NYCRR Subpart 621 to eliminate references to the sections proposed to be repealed.

4. Costs:

a. Costs to the Agency and to the State and its local governments: These regulations will not have any fiscal impact on local governments. There are no anticipated costs to OPWDD in its role as a provider of services to comply with the new requirements.

b. Costs to private regulated parties: These regulations will not have any fiscal impact on private regulated parties.

5. Local Government Mandates: There are no new requirements imposed by the rule on any other county, city, town, village; or school, fire, or other special district.

6. Paperwork: The proposed amendments would not increase paperwork requirements.

7. Duplication: The proposed regulations do not duplicate any existing State or Federal requirements on this topic.

8. Alternatives: No alternatives were considered as these are repeals of outdated regulations.

9. Federal Standards: The proposed amendments do not exceed any minimum standards of the federal government for the same or similar subject areas.

10. Compliance Schedule: Regulated parties are expected to comply with the proposed regulations when they become effective.

A regulatory flexibility analysis for small businesses and local governments is not being submitted because these amendments will not impose any adverse economic impact or reporting, record keeping or other compliance requirements on small businesses. There are no professional services, capital, or other compliance costs imposed on small businesses as a result of these amendments.

The proposed regulations amend Title 14 NYCRR Parts 621, 676.11, 641-2, 690.7, 680.12 and 681.14 to amend and repeal rate setting regulations which are obsolete, inconsistent with payment methodologies in the New York Medicaid State Plan, or duplicative of regulations promulgated by the New York State Department of Health as the single State Medicaid Agency. The amendments will not result in costs or new compliance requirements for regulated parties and consequently, the amendments will not have any adverse effects on providers of small business and local governments.

A Rural Area Flexibility Analysis for these amendments is not being submitted because the regulation will not impose any disproportionate adverse impact or significant reporting, record keeping or other compliance requirements on public or private entities in rural areas, as these are changes to repeal obsolete or duplicative rate setting regulations. There are no professional services, capital, or other compliance costs imposed on public or private entities in rural areas as a result of the proposed regulation.

The proposed regulation amends 14 NYCRR Parts 621, 676.11, 641-2, 690.7, 680.12 and 681.14 to amend and repeal rate setting regulations which are obsolete, inconsistent with payment methodologies in the New York Medicaid State Plan, or duplicative of regulations promulgated by the New York State Department of Health as the single State Medicaid Agency. The regulation will not result in an adverse impact on rural communities because the regulation applies to all providers of these services.

A Job Impact Statement for the proposed regulation is not being submitted because it is apparent from the nature and purpose of the regulation that they will not have a substantial adverse impact on jobs and/or employment opportunities.

The proposed regulation amends 14 NYCRR Parts 621, 676.11, 641-2, 690.7, 680.12 and 681.14 to amend and repeal rate setting regulations which are obsolete, inconsistent with payment methodologies in the New York Medicaid State Plan, or duplicative of regulations promulgated by the New York State Department of Health as the single State Medicaid Agency. The regulation will not have a substantial impact on jobs or employment opportunities in New York State.