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ICF/DD Manual

ICF/DD Manual

Cost of living adjustment

Page posted: 01/01/06

Page reviewed: 6/24/11

Page updated: 11/27/2007

Legal authority

Minn. Stat.§256B.5012, subd. 6

Definition

Cost of living adjustment (COLA): Rate increase available to ICF/DD when legislative action and appropriation occurs.

Eligibility

The Minnesota Legislature has historically implemented COLAs annually for licensed ICF/DDs. Facilities whose rates are governed by closure agreements or receivership agreements are not eligible for COLAs.

Rate increase

There are no currently mandated COLAs.

Distribution plan

ICFs may apply for a portion of the payment rate increase provided for employee wages, benefits and associated costs. Distribution plans identify how ICF/DDs distribute the funds. To receive the compensation-related component of the COLAs, ICFs must submit the ICF/DD distribution plans to DHS for approval.

DHS issues bulletins with every legislated COLA that describes the legislative language and distribution plan to be completed. Refer to DHS – Long-term services and supports rates changes

Billing

Use the UB-92 paper form or submit via MN-ITS.

DHS automatically adjusts claims paid before DHS enters the new rate with the next facility payment. If you have questions, contact the MHCP Provider Resource Center at (651) 431-2700 or (800) 366-5411.

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