Introduced Version
SENATE BILL No. 266
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 31-27-7.
Synopsis: Department of child services' review of base rate. Defines
"base rate", "cost report", and "residential treatment services provider".
Provides a process for residential treatment services providers to
request a review of base rates and other cost based rates approved by
the department of child services (department). Establishes that the
department shall approve certain allowable costs.
Effective: July 1, 2022.
Ford Jon
January 10, 2022, read first time and referred to Committee on Family and Children
Services.
2022 IN 266—LS 7075/DI 148 Introduced
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2021 Regular Session of the General Assembly.
SENATE BILL No. 266
A BILL FOR AN ACT to amend the Indiana Code concerning
family law and juvenile law.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 31-27-7 IS ADDED TO THE INDIANA CODE AS
2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2022]:
4 Chapter 7. Department Base Rates Review
5 Sec. 1. As used in this chapter, "base rate" has the same
6 meaning as set forth in 465 IAC 2-16-4 (as in effect on December
7 31, 2021).
8 Sec. 2. As used in this chapter, "cost report" means a report
9 submitted to the department by a residential treatment services
10 provider specifying costs incurred by the residential treatment
11 services provider during a twelve (12) month period.
12 Sec. 3. As used in this chapter, "residential treatment services
13 provider" means the following:
14 (1) A child caring institution, as defined in IC 31-9-2-16.7.
15 (2) A group home, as defined in IC 31-9-2-48.5.
16 (3) A secure private facility, as defined in IC 31-9-2-115.
17 (4) A licensed child placing agency, as defined in
2022 IN 266—LS 7075/DI 148 2
1 IC 31-9-2-17.5.
2 Sec. 4. For purposes of this chapter, the department shall
3 determine whether a cost is reasonable based on what a reasonable
4 person would pay in the same or similar circumstances for the
5 same or similar item or service.
6 Sec. 5. (a) A residential treatment services provider may request
7 a review of the base rates approved by the department if the
8 residential treatment services provider believes that an error or
9 omission was made in the:
10 (1) cost report that the residential treatment services provider
11 submitted to the department;
12 (2) department's calculation of the base rate; or
13 (3) department's determination of the reasonableness of a
14 cost.
15 (b) A request for review under subsection (a) must be:
16 (1) submitted in writing to the department; and
17 (2) received by the department not more than thirty (30) days
18 after the date on which the department mailed a rate letter to
19 the residential treatment services provider.
20 Compliance with subdivision (2) is determined in the same manner
21 by which compliance with the requirements for actions related to
22 administrative proceedings is determined under IC 4-21.5-3-1 and
23 IC 4-21.5-3-2.
24 (c) A residential treatment services provider making a request
25 for review under subsection (a) shall submit the request for review
26 in the form and manner specified by the department, including:
27 (1) identification of the current base rate and approved new
28 base rate, as applicable to a specific program or service
29 offered by the residential treatment services provider;
30 (2) an itemized statement of administrative and indirect costs
31 that the residential treatment services provider considers
32 allowable under this chapter;
33 (3) a clear, concise statement of the reasons for the requested
34 change; and
35 (4) a detailed statement supporting the requested change.
36 The department shall not accept or process an incomplete request
37 for review.
38 (d) If a residential treatment services provider that submits a
39 request for review under this chapter has a current license that is
40 subject to current revocation proceedings, the department shall not
41 act upon the request for review.
42 (e) Not more than thirty (30) days after the date on which the
2022 IN 266—LS 7075/DI 148 3
1 department receives a request for review submitted under this
2 chapter, the department shall conduct a review and send notice of
3 the department's decision to the residential treatment services
4 provider. The notice must include a robust explanation of the
5 following:
6 (1) The department's approval or denial.
7 (2) The reasonableness of each disputed cost.
8 Sec. 6. If the residential treatment services provider proves that
9 a cost was previously covered for any provider, or is associated
10 with:
11 (1) accreditation;
12 (2) staff safety;
13 (3) child safety; or
14 (4) a department requirement;
15 the department shall approve the cost.
2022 IN 266—LS 7075/DI 148