The State of Missouri, Department of Social Services, Division of Medical Services, proposes to amend the Medicaid State Plan to modify the current methodology for establishing reimbursement rates for targeted case management services for persons who have mental retardation and developmental disabilities.  A uniform, weighted average, hourly rate that includes an inflation factor will be calculated from the cost based rates of all current providers.
The State of Missouri is seeking a uniform reimbursement rate that is more reasonably related to provider costs. Providers are currently reimbursed at prior year cost with no adjustment allowance for current year cost increases.
The initial uniform prospective hourly fee for case management will be established based on the weighted average hourly cost of all providers as calculated from providers' most recent available cost reports.  The initial calculated fee, which will be based on costs for FY '00, will include an annual and, if appropriate, partial year inflation factor.  Annually thereafter until rebasing, on July 1 the previous year's uniform hourly fee will be adjusted by the Consumer Price Index as determined by the Bureau of Labor Statistics or, if available, a Missouri-specific health care index of inflation.  The uniform prospective hourly fee will be rebased at least once every ten (10) years.  For each rebasing year, the uniform prospective hourly fee will be calculated in the same manner as the initial fee described above.
 The estimated annual cost of applying the new methodology is $3 million. The effective date of this change is the date of the public notice.
 Targeted case management services for persons who have mental retardation and developmental disabilities is administered by the Missouri Department of Mental Health, Division of Mental Retardation and Developmental Disabilities. Comments and or questions regarding this notice may be sent to the Missouri Department of Mental Health, 1706 E. Elm Street, Jefferson City, MO, 65101, to the attention of Randy Hodill.