The ICF/ID Assessment is a health-care related tax permitted by federal regulation and imposed by the Department of Human Services. Currently, the assessment is 6% of your revenues (depending on which revenue basis ODP selects). The primary purpose of the assessment is to allow the Commonwealth to draw down additional federal funds, which, by the way, cannot be used for the ICF appropriation.
In the rate setting process, the amount of the annual assessment is added into your approved funding level, whether your funding level is determined by the standard interim rate methodology or the waiver of the standard interim rate methodology. After the beginning of the fiscal year, ODP typically issues revised rate correspondence to all providers for the purpose of removing the prior year assessment and including the new year's assessment. This letter should be issued in July, but in the last several years, they have not issued the letter until September and October, causing some confusion. Regardless, the revised rate is retroactive to July 1 of the fiscal year to which the assessment applies. Even though the rate is effective on July 1 of the new fiscal year, it is still technically the previous year's rate---just changed for the assessment--it is NOT your final rate. You will see another revised interim rate after cost reports are filed and after waiver requests are reviewed. In the last several years, this has occurred March and after, sometimes after the close of the fiscal year. AZTAC can verify the calculations in the rate correspondence for you if you fax or email the document to email@example.com.
The assessment is collected via quarterly payments, with the last quarter being collected monthly. Although ODP will calculate these amounts for you, it is the provider's responsibility to verify and sign off on them in a timely manner.
It is important to monitor you expenses to be sure that you are paying the amount of the assessment in each fiscal year, no more, no less.
AZTAC tracks the ICF/MR assessments carefully. Except when ODP changes their methodology, which they have done in recent years, we can pre-calculate your assessment, and verify the quarterly reports from the ODP. Simply fax or email any correspondence that your receive from the Department, and we will verify the numbers for you.