<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".03" citation="COMAR 14.31.04.03" title_num="14" subtitle_num="31" chapter_num="04" heading="Rate Setting Methodology.">
  <paragraph num="A.">
    <text>The Committee shall develop and maintain a rate setting methodology for reimbursing specified providers.</text>
  </paragraph>
  <paragraph num="B.">
    <text>Cost-Based Methodology.</text>
    <paragraph num="(1)">
      <text>Child placement agencies, educational programs, and nonresidential programs shall receive a rate based on a cost-based methodology.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The cost-based methodology determines a rate based on an individual provider’s budget, including, but not limited to:</text>
      <paragraph num="(a)">
        <text>Management and general services;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Direct services;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Education services;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Medical services; and</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Clinical services.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>The rate determination shall be calculated using:</text>
      <paragraph num="(a)">
        <text>An individual program budget application;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>A mean annual rate for a specified program category; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>A direct care cost comparison metric.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>The cost-based methodology is contained in the Manual and the Cost Guidelines, which are published on the Maryland State Department of Education website.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Class-Based Methodology.</text>
    <paragraph num="(1)">
      <text>Residential child care programs shall receive a rate based on a class-based methodology.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The class-based methodology determines a rate based on the level of services provided by the residential child care program.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The Committee shall determine the level of services the residential child care program must provide to meet the requirements of each class as defined by the Committee.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Each class is assigned a flat rate by the Committee.</text>
    </paragraph>
    <paragraph num="(5)">
      <text>The class-based methodology is contained in the Manual and the Class Guidelines, which are published on the Maryland State Department of Education website.</text>
    </paragraph>
  </paragraph>
</regulation>