PART B

Sec. B-1. 22 MRSA §3187, as amended by PL 2003, c. 684, §1, is further amended by adding after the 2nd paragraph a new paragraph to read:

Beginning January 1, 2006, the principles of reimbursement must allow the retention of savings by intermediate care facilities for persons with mental retardation up to a maximum amount applicable to all those facilities during a fiscal year that is equal to the amount retained by those facilities during state fiscal year 2003-04 as adjusted by the Consumer Price Index for fiscal year 2005-06 and annually thereafter.

Sec. B-2. Review of rules and regulations. The Department of Health and Human Services shall convene a working group of department staff, providers of services in intermediate care facilities for persons with mental retardation and developmental disabilities and consumers of mental retardation and developmental disabilities services and their families to review federal regulations and state rules regarding quality assurance, health and safety in all Medicaid waiver programs. The working group shall report its recommendations to the Joint Standing Committee on Health and Human Services by January 1, 2006 and shall include recommendations that focus on outcomes rather than process to reach goals of improved quality, health and safety.

Sec. B-3. Review of administrative requirements. The Department of Health and Human Services shall convene a working group of department staff, providers of services in intermediate care facilities for persons with mental retardation and developmental disabilities and consumers of mental retardation and developmental disabilities services and their families to review federal regulations and state rules regarding administrative requirements and to conduct a cost-benefit analysis. The working group shall report its recommendations to the Joint Standing Committee on Health and Human Services by January 1, 2006 and shall include recommendations that address the quality of service and quality of life of residents of intermediate care facilities along with the requirements for administrative process and accountability. The working group must recommend a cost-benefit analysis that is based on objective