Section 144-101-III-97-E-6000 - RATE-SETTING6000.1 Payment rates and the total cost cap are established prospectively by the OMS and Department for each facility based on approved budgeted costs for the provider's fiscal year. The approved facility budget is based on a rate setting report submitted to the OMS and Department by the provider prior to the beginning of the provider's fiscal year. The budget shall be submitted on forms/media prescribed by the OMS and Department.6000.2 The provider must also submit, upon request, such data, statistics, schedules, or other information that the OMS and Department requires.6000.3 The rate for the previous period will remain in effect until a new rate is approved. Retroactive rate adjustments shall not be granted, unless approved by the OMS and Department under exceptional circumstances as determined by these two agencies.6000.4 The new rate will be effective for services provided from the first day of the month following the OMS and budget approval from the Department.6000.5 Providers must submit a rate setting report and any required supporting documentation for each facility at least 60 days prior to the start of the provider's fiscal year. The inclusive dates of the rate setting period shall be the inclusive dates of the cost reporting period as described by Chapter III, Section 3300.3. 6000.6 The OMS and Department may issue guidelines to assist providers in developing their budgets for the agreement period.6000.7 The total allowable costs for the budget period, based on prior year actual allowable costs, current year costs and funding levels, and pre approved changes expected in the budget period, as reported by the provider, are used to determine the level of reasonable costs to be recognized in setting the prospective rate and total cost cap for the budget period. Only costs that are allowable pursuant to Section 2400 are included in calculating the prospective rate.6000.8 Approval of the prospective rate and the total cost cap is at the discretion of the OMS and Department. The OMS and Department may make adjustments modifying the provider's proposal.6000.9 Calculation of the prospective rate: the total cost cap shall be divided by the estimated annual occupancy. 6000.10 Providers must ensure that the increase in reimbursement rates effective August 1, 2018 is applied in full to wages and benefits for employees who provide direct services. Providers must document compliance with this requirement in their financial records and provide such documentation upon request. The increase must be granted or paid out retroactively from the date the Department begins reimbursing the increased rates.10-144 C.M.R. ch. 101, § III-97-E-6000