PDD-50-15-00012-P Amendments to Reimbursement Methodology for Continuing Residential Leases

12/16/15 N.Y. St. Reg. PDD-50-15-00012-P

NEW YORK STATE REGISTER

VOLUME XXXVII, ISSUE 50

December 16, 2015

RULE MAKING ACTIVITIES

OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PDD-50-15-00012-P

Amendments to Reimbursement Methodology for Continuing Residential Leases

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

Amendment of section 635-6.3 of Title 14 NYCRR.

Statutory authority:

Mental Hygiene Law, section 13.09(b)

Subject:

Amendments to Reimbursement Methodology for Continuing Residential Leases.

Purpose:

To make changes concerning reimbursement methodology for lease costs for continuing residential lease arrangements.

Text of proposed rule:

• Section 635-6.3(b) is amended as follows:

(b) This subdivision governs the allowability of lease costs applicable to continuing residential lease arrangements for periods after December 31, 2011, for which periods OPWDD has not approved lease costs for an entire calendar year. This subdivision applies to residential lease renewals which are not renewals pursuant to an option to renew.

(1) There shall be an allowable lease cost, exclusive of any ancillary costs, for an entire calendar year. The allowable lease cost, exclusive of any ancillary costs, for a calendar year shall be the base lease amount for such calendar year [increased] adjusted by [the] an annual [increase] percentage for such calendar year.

(2) Base lease amount. The base lease amount for a calendar year shall be the allowable lease cost calculated in accordance with this section in effect on December 31st of the prior calendar year, exclusive of any ancillary costs (see paragraph [4] 3 of this subdivision).

[(3) Annual increase percentage.

(i) The annual increase percentage for 2012 is 1.97 percent.

(ii) The annual increase percentage for 2013 is 2.5 percent.

(iii) The annual increase percentage for 2014 is 2.6 percent.]

Note: Existing paragraphs (4) and (5) are renumbered to be (3) and (4).

Text of proposed rule and any required statements and analyses may be obtained from:

Office of Counsel, Office for People With Developmental Disabilities (OPWDD), 44 Holland Avenue, 3rd floor, Albany, NY 12229, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Additional matter required by statute:

Pursuant to the requirements of the State Environmental Quality Review Act, OPWDD, as lead agency, has determined that the action described herein will have no effect on the environment, and an E.I.S. is not needed.

Regulatory Impact Statement

1. Statutory Authority: OPWDD has the authority to adopt rules and regulations necessary and proper to implement any matter under its jurisdiction as stated in the New York State (NYS) Mental Hygiene Law Section 13.09(b).

2. Legislative Objectives: The proposed amendments further the legislative objective embodied in section 13.09(b) of the Mental Hygiene Law. The proposed amendments make changes to regulations concerning reimbursement methodology for lease costs for continuing residential lease arrangements.

3. Needs and Benefits: In 2012, OPWDD implemented methodology for an annual calendar year increase in the allowable lease costs for continuing residential lease arrangements. Since then, OPWDD has updated the lease increase percentage in regulation in accordance with section 43.02 of the Mental Hygiene Law, which required OPWDD to publish its reimbursement methodology in regulation. In 2015, this provision of the Mental Hygiene Law was amended to designate the commissioner of the Department of Health with rulemaking authority for OPWDD’s reimbursement methodology. The proposed amendments would update language in the regulation to refer to the annual increase as an annual adjustment to reflect how reimbursement for continuing residential leases is currently determined, and to remove the past increase percentages since OPWDD no longer has this rulemaking authority.

4. Costs:

a. Costs to the Agency and to the State and its local governments.

OPWDD does not anticipate costs to the State in its role paying for Medicaid as a result of these amendments. The amendments merely update reimbursement methodology language for continuing residential leases to reflect current practice in determining reimbursement for these leases and the recent change in rulemaking authority.

The proposed amendments will not result in any costs to OPWDD as a provider of services for the same reasons stated above.

There will be no impact to local governments as a result of any of these amendments.

b. Costs to private regulated parties: There are no initial capital investment costs or initial non-capital expenses for either of these amendments.

There will be no costs to regulated parties as a result of these amendments. As stated above, the amendments merely update reimbursement methodology language for continuing residential leases to reflect current practice in determining reimbursement for these leases and the recent change in rulemaking authority.

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

6. Paperwork: No additional paperwork is required by the proposed amendments.

7. Duplication: The amendments do not duplicate any existing requirements that are applicable to services for individuals with developmental disabilities.

8. Alternatives: OPWDD did not consider any alternatives to the proposed amendments as the amendments need to be updated as proposed in order to reflect current practice in determining reimbursement for continuing residential leases and the recent change in rulemaking authority.

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: OPWDD intends to finalize the proposed amendments as soon as possible within the time frames mandated by the State Administrative Procedure Act. These amendments will not impose any new requirements with which regulated parties are expected to comply.

Regulatory Flexibility Analysis

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 amendments update the reimbursement methodology language for continuing residential lease arrangements to reflect the current practice in determining reimbursement for these leases and the recent change in rulemaking authority. 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.

Rural Area Flexibility Analysis

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

The proposed amendments update the reimbursement methodology language for continuing residential lease arrangements to reflect the current practice in determining reimbursement for these leases and the recent change in rulemaking authority. 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 in rural areas and local governments.

Job Impact Statement

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

The proposed amendments update the reimbursement methodology language for continuing residential lease arrangements to reflect the current practice in determining reimbursement for these leases and the recent change in rulemaking authority. The amendments will not result in costs, including staffing costs, or new compliance requirements for regulated parties and, consequently, the amendments will not have a substantial impact on jobs or employment opportunities in New York State.