New Mexico Register / Volume XXXIII, Issue 7 / April 5, 2022
NOTICE
OF RULEMAKING AND PUBLIC HEARING
The Aging & Long-Term Services
Department (Department) is proposing to repeal and replace New Mexico
Administrative Code (NMAC) Rule 9.2.24 NMAC - Rate and Fee Increases by
Continuing Care Communities.
Authority for the proposed rule’s repeal
and replacement is provided by Subsection E of Section 9-23-6 NMSA 1978, which
states the following: “The secretary may make and adopt such reasonable
procedural rules as may be necessary to carry out the duties of the department
and its divisions.”
The Department will hold a public
hearing via Zoom link on Thursday May 19, 2022, from 9:00
a.m. to 12:00 p.m. to take comments regarding the proposed amendments to
9.2.24 NMAC.
Notice Date: April 5, 2022
Hearing Date and Time: May 19, 2022, from 9:00 a.m. to 12:00 p.m.
Adoption Date: Proposed as July 1, 2022
Statutory Authority: The Continuing Care Act, Sections 24-17-1 through 24-17-18 NMSA 1978.
The Zoom link for the public hearing:
https://altsd.zoom.us/j/85026024411
Passcode: 287846
To attend the hearing by telephone please
dial: (877) 853-5257 (Toll Free)
Meeting ID: 850 2602 4411
Passcode: 287846
Copies
of the notice of rulemaking and proposed rule are available on the New Mexico
Sunshine Portal at https://ssp.nm.gov/ and on
the ALTSD website at https://nmaging.state.nm.us/news-events/ccrc-rule-making.
Background
The purpose of the proposed repeal
and replacement of the rule is to comply with amendments made to the Continuing
Care Act, Sections 24-17-1 through 24-17-18 NMSA 1978. The proposed rule will provide guidance on
the administration of the Continuing Care Act in accordance with New Mexico
law. The rule will no longer only
address rate and fee increases by Continuing Care Communities. The rule will now be entitled “The Administration
of the Continuing Care Act.”
The Department is proposing to repeal
and replace the rule, and is proposing the following substantive changes:
9.2.24.7 NMAC
Some definitions from the repealed
rule are being maintained, including “expenses,” “GAAP,” “gift income,”
“income,” “net income,” “resident,” and “return on investment.” Some
definitions are being maintained but amended, including “cost of care,” “cost
of operating the continuing care community,” “economic necessity,” and
“investment income.” New definitions include “affiliate,” “ALTSD,” “community,”
“continuing care,” “fees,” “liquid reserves,” “net operating expenses,” “person,”
“policy,” “provider,” “reserves,” “type A agreement,” and “type B agreement.”
9.2.24.8 NMAC
This section clarifies that the
continuing care contract shall clearly indicate which of the four factors
referenced in this rule it will utilize for rate and fee increases.
9.2.24.9 NMAC
This section from the repealed rule is
being maintained, except that Subsection B now refers to “assets less
liabilities” instead of “owners’ investment.”
9.2.24.10 NMAC
This section from the repealed rule
is being maintained, except that Subsection A now clarifies that rate and fee
increases based on cost of care increases for providing medical care or
health-related supportive services are governed by the continuing care
contract.
9.2.24.11 NMAC
This section on historical and
current data from the repealed rule is being maintained and renumbered, except
that Subsection A now allows for a deviation from historical data when exigent
circumstances exist, and Subsection C now differentiates between publicly
available data and non-public data.
9.2.24.12 NMAC
This section from the repealed rule
is being maintained and renumbered, except that it now clarifies that
reasonable return on investment pertains to rate and fee increases.
9.2.24.13 NMAC
This section from the repealed rule
is being maintained and renumbered.
9.2.24.14 NMAC
This section from the repealed rule
is being maintained and renumbered.
9.2.24.15 NMAC
This section discusses liquid
reserves and other reserves and delineates the requirements for a certificate
of compliance and a corrective action plan. The prior section on reserves in
the repealed rule is not being maintained in the new rule.
9.2.24.16 NMAC
This section outlines the
requirements for a Continuing Care Community’s annual disclosure statement.
9.2.24.17 NMAC
This section outlines the
requirements for actuarial studies.
9.2.24.18 NMAC
This section outlines the process
for the issuance of a notice of violation to a Continuing Care Community.
Throughout the proposed rule, changes
have been made to address formatting requirements.
The register for the proposed repeal
and replacement of this rule will be available April 5, 2022, on the ALTSD web site at https://nmaging.state.nm.us/news-events/ccrc-rule-making. If you do not have internet access, a copy of
the proposed rule may be requested by contacting ALTSD in Santa Fe at (505) 670-5141.
Interested
parties may submit written comments directly to: Aging & Long-Term Services Department,
Office of the Secretary, ATT: Continuing Care Act Rules Public Comments, 2550
Cerrillos Rd., Santa Fe, New Mexico 87505.
If
you are a person with a disability and you require this information in an
alternative format or require a special accommodation to participate in the
public hearing, please contact ALTSD in Santa Fe at (505) 670-5141. The Department requests at least ten (10)
days advance notice to provide requested alternative formats and special
accommodations.
Copies of all comments will be made
available by ALTSD upon request by providing copies directly to a requestor or
by making them available on the ALTSD website or at an ALTSD location nearest
to the county of the requestor.