Subsection 144-101-III-67-31 - INFLATION ADJUSTMENT - Cost of Living Adjustment (COLA)The Department will notify the nursing facilities, through rule change, of what the COLA will be, for what applicable fiscal period, and will specify the COLA in terms of a percentage change.
31.1 The COLA will be two percent (2%) effective October 1, 2011. For each subsequent year, there will be an inflation adjustment based on the Consumer Price Index (CPI), as described in Principle 22.3.3.4 and 22.4.3. For those applicable fiscal periods where a COLA will be made, and the Department has sent forth the above notice, the following will apply: 31.1.1 Total wages, as set forth in Principle 9.5, and benefits, as set forth in Principle 1.4, for "front line employees," as defined in the Definitions subsection of this Principle, be divided by total worked hours to determine the average wage and benefit rate per hour for front line employees for the applicable fiscal period in which a COLA has been made.31.1.2 This average wage and benefit rate per hour will be compared to the average wage and benefit rate per hour for the fiscal period immediately prior to the period of the COLA in order to determine a percentage change in the average wage and benefit rate per hour.31.1.3 Nursing facilities must demonstrate a percentage change in the average wage and benefit rate per hour for front line employees that is equal to or greater than the COLA as specified in the Department's notice.31.1.4 If the percentage change in the average wage and benefit rate per hour is less than the COLA as specified within this rule, the Department will recoup, at time of audit, the difference between what the average wage and benefit rate per hour for front line employees was for the applicable fiscal period, and what it should have been if it had exactly matched the COLA as specified within this rule.31.1.5 The following applies for the COLA effective October 1, 2011: Nursing Facilities must demonstrate, to the satisfaction of the Department, a two percent (2%) increase in the average wage and benefit rate per hour for front line employees for their first fiscal years ending after July 1, 2013, from the average wage and benefit rate per hour for front line employees that was in effect for their fiscal years ending 2008. If the nursing facilities cannot demonstrate that two percent (2%) increase to the satisfaction of the Department, then the Department will recoup, at time of audit, the difference between what the average wage and benefit rate per hour for front line employees for the first fiscal years ending after July 1, 2013, should have been if it had been increased by two percent (2%) from what it was. C.M.R. 10, 144, ch. 101, ch. III, 144-101-III-67, subsec. 144-101-III-67-31