Haw. Code R. § 17-1739.2-14 - Application of inflation and other adjustments to establish provider-specific prospective payment rates

(a) Annual cost increases shall be recognized by applying the inflation adjustment to the provider's historical costs or basic PPS rates, or both. This provision shall not apply to Acuity Level A and Acuity Level C facilities. The provisions of section 17-1739.2-21 shall apply to Acuity Level A and Acuity Level C facilities.

(b) For years in which the department performs a rebasing, cost increases attributable to inflation that have occurred since the base year shall be recognized as follows:

(1) The basic PPS rates shall be standardized to remove the effects of varying fiscal year ends;

(2) The basic PPS rates shall be multiplied by one plus the cumulative inflation adjustment;

(3) For the purpose of determining the inflation adjustment, the department shall use the most current and accurate data that is then available; and

(4) To ensure the prospective nature of the system, the data shall not be retroactively modified or adjusted.

(c) For years when the department does not perform a rebasing, cost increases due to inflation for the upcoming rate year shall be recognized as follows:

(1) The department shall multiply the adjusted PPS rate (excluding any rate reconsideration increases) in effect on June 30th of the immediately preceding fiscal year by one plus the inflation adjustment for the following state fiscal year.

(2) To ensure the prospective nature of the payment methodology, the inflation adjustment shall not be retroactively modified or adjusted.

Notes

Haw. Code R. § 17-1739.2-14

[Eff 09/01/03] (Auth: HRS § 346-59; 42 U.S.C. §1396 a) (Imp: 42 C.F.R. §447.252)