HF 886

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/18/2013 04:45pm

A bill for an act
relating to human services; providing nursing facility and elderly waiver rate
increases; amending Minnesota Statutes 2012, section 256B.434, by adding a
subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 256B.434, is amended by adding a
subdivision to read:

new text begin Subd. 19a. new text end

new text begin Nursing facility rate adjustments beginning October 1, 2013, and
October 1, 2014. new text end

new text begin (a) For the rate years beginning October 1, 2013, and October 1, 2014,
the commissioner shall make available to each nursing facility reimbursed under this
section or any other section the following operating payment rate adjustments:
new text end

new text begin (1) a two percent increase to address general cost increases and staffing needs;
new text end

new text begin (2) a quality add-on equal to:
new text end

new text begin (i) a two percent increase on October 1, 2013, for each nursing facility that is
a registered participant for the national program Advancing Excellence in America's
Nursing Homes and sets two goals under that program's specified enrollment options; and
new text end

new text begin (ii) up to a two percent increase on October 1, 2014. Each facility shall report to
the Department of Human Services in a manner prescribed by the commissioner on the
progress toward the two goals set under item (i). A facility is eligible for a one percent
rate increase for each goal that the facility has established a baseline, and demonstrated
sustained improvement, up to a maximum two percent rate increase; and
new text end

new text begin (3) a one percent increase to address workforce needs. Spending to address these
needs shall be in addition to the amount identified in clause (1). For this increase, in
addition to the staffing costs allowed under clause (1), funds can be spent on additional
efforts to address workforce needs including the recruiting and training of employees.
new text end

new text begin (b) Seventy-three percent of the money resulting from the rate adjustments under
paragraph (a), clauses (1) and (3), must be used for increases in compensation-related
costs for employees directly employed by the nursing facility on or after the effective
date of the rate adjustment, except:
new text end

new text begin (1) the administrator;
new text end

new text begin (2) persons employed in the central office of a corporation that has an ownership
interest in the nursing facility or exercises control over the nursing facility; and
new text end

new text begin (3) persons paid by the nursing facility under a management contract.
new text end

new text begin (c) The commissioner shall allow as compensation-related costs all costs for:
new text end

new text begin (1) wages and salaries;
new text end

new text begin (2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers'
compensation;
new text end

new text begin (3) the employer's share of health and dental insurance, life insurance, disability
insurance, long-term care insurance, uniform allowance, and pensions; and
new text end

new text begin (4) other benefits provided and workforce needs including the recruiting and training
of employees, subject to the approval of the commissioner.
new text end

new text begin (d) Nursing facilities may apply for the portion of the rate adjustment under
paragraph (a), clauses (1) and (3), that is subject to the requirements in paragraph
(b). The application must be submitted to the commissioner within six months of the
effective date of the rate adjustment, and the nursing facility must provide additional
information required by the commissioner within nine months of the effective date of
the rate adjustment. The commissioner must respond to all applications within three
weeks of receipt. The commissioner may waive the deadlines in this paragraph under
extraordinary circumstances, to be determined at the sole discretion of the commissioner.
The application must contain:
new text end

new text begin (1) an estimate of the amounts of money that must be used as specified in paragraph
(b);
new text end

new text begin (2) a detailed distribution plan specifying the allowable compensation-related and
wage increases the nursing facility will implement to use the funds available in clause (1);
new text end

new text begin (3) a description of how the nursing facility will notify eligible employees of
the contents of the approved application, which must provide for giving each eligible
employee a copy of the approved application, excluding the information required in clause
(1), or posting a copy of the approved application, excluding the information required in
clause (1), for a period of at least six weeks in an area of the nursing facility to which all
eligible employees have access; and
new text end

new text begin (4) instructions for employees who believe they have not received the
compensation-related or wage increases specified in clause (2), as approved by the
commissioner, and which must include a mailing address, e-mail address, and the
telephone number that may be used by the employee to contact the commissioner or the
commissioner's representative.
new text end

new text begin (e) For the October 1, 2013, rate increases, the commissioner shall ensure that cost
increases in distribution plans under paragraph (d), clause (2), that may be included in
approved applications, comply with the following requirements:
new text end

new text begin (1) a portion of the costs resulting from tenure-related wage or salary increases
may be considered to be allowable wage increases, according to formulas that the
commissioner shall provide, where employee retention is above the average statewide
rate of retention of direct care employees;
new text end

new text begin (2) the annualized amount of increases in costs for the employer's share of health
and dental insurance, life insurance, disability insurance, and workers' compensation
shall be allowable compensation-related increases if they are effective on or after April
1, 2013, and prior to April 1, 2014; and
new text end

new text begin (3) for nursing facilities in which employees are represented by an exclusive
bargaining representative, the commissioner shall approve the application only upon
receipt of a letter of acceptance of the distribution plan, in regard to members of the
bargaining unit, signed by the exclusive bargaining agent and dated after May 25, 2013.
Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of
this provision as having been met in regard to the members of the bargaining unit.
new text end

new text begin (f) For the October 1, 2014, rate increases, the commissioner shall ensure that cost
increases in distribution plans under paragraph (d), clause (2), that may be included in
approved applications, comply with the following requirements:
new text end

new text begin (1) costs to be incurred during the applicable rate year resulting from wage and
salary increases effective after October 1, 2013, and prior to the first day of the nursing
facility's payroll period that includes October 1, 2014, shall be allowed if they were not
used in the prior year's application;
new text end

new text begin (2) a portion of the costs resulting from tenure-related wage or salary increases
may be considered to be allowable wage increases, according to formulas that the
commissioner shall provide, where employee retention is above the average statewide
rate of retention of direct care employees;
new text end

new text begin (3) the annualized amount of increases in costs for the employer's share of health
and dental insurance, life insurance, disability insurance, and workers' compensation
shall be allowable compensation-related increases if they are effective on or after April
1, 2014, and prior to April 1, 2015; and
new text end

new text begin (4) for nursing facilities in which employees are represented by an exclusive
bargaining representative, the commissioner shall approve the application only upon
receipt of a letter of acceptance of the distribution plan, in regard to members of the
bargaining unit, signed by the exclusive bargaining agent and dated after May 25, 2014.
Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of
this provision as having been met in regard to the members of the bargaining unit.
new text end

new text begin (g) The commissioner shall review applications received under paragraphs (e)
and (f) and shall provide the portion of the rate adjustment under paragraph (b) if the
requirements of this statute have been met.
new text end

new text begin (h) The increases in this subdivision shall be applied as a total percentage for all
three items above to operating rates effective September 30, 2013, and September 30,
2014, except that they shall not increase any performance-based incentive payments under
section 256B.434, subdivision 4, paragraph (d), awarded prior to October 1, 2013. For any
employees represented by a collective bargaining unit, an agreement negotiated between the
bargaining unit and the employer satisfies the requirement for a plan under paragraph (d).
new text end

Sec. 2. new text begin RATE ADJUSTMENTS FOR OCTOBER 1, 2013, AND OCTOBER 1,
2014, FOR THE ELDERLY WAIVER PROGRAM.
new text end

new text begin (a) Effective October 1, 2013, and October 1, 2014, the elderly waiver rates,
including all components and limits, shall be increased by the following:
new text end

new text begin (1) a two percent increase to address general cost increases and staffing needs;
new text end

new text begin (2) a two percent increase for implementing a new quality improvement program.
The quality improvement program shall be designed to improve recipient outcomes and
shall be detailed on a report to be completed by September 30 of each year and shall be
provided to the commissioner upon request; and
new text end

new text begin (3) a one percent increase to address workforce needs. Spending to address these
needs shall be in addition to the amount identified in clause (1). In addition to the staffing
costs allowed under clause (1), these funds may be spent on additional efforts to address
workforce needs including recruiting and training of employees.
new text end

new text begin (b) A managed care plan receiving state payments for the services in this section
must include these increases in their payments to providers on a prospective basis,
effective on January 1 following the effective date of the rate increase.
new text end

new text begin (c) Providers that receive a rate increase under this section shall use 73
percent of the additional revenue from paragraph (a), clauses (1) and (3), to increase
compensation-related costs for employees directly employed by the program on or after
the effective date of the rate adjustments, except:
new text end

new text begin (1) the administrator;
new text end

new text begin (2) persons employed in the central office of a corporation or entity that has an
ownership interest in the provider or exercises control over the provider; and
new text end

new text begin (3) persons paid by the provider under a management contract.
new text end

new text begin Compensation-related costs include: wages and salaries; FICA taxes, Medicare taxes,
state and federal unemployment taxes, and workers' compensation; and the employer's
share of health and dental insurance, life insurance, disability insurance, long-term care
insurance, uniform allowance, and pensions.
new text end

new text begin (d) For public employees, the increase for wages and benefits for certain staff is
available and pay rates must be increased only to the extent that they comply with laws
governing public employees collective bargaining. Money received by a provider for pay
increases under this section may be used only for increases implemented on or after the
first day of the rate period in which the increase is available and must not be used for
increases implemented prior to that date.
new text end

new text begin (e) Providers that receive a rate adjustment under paragraph (a) that is subject to
paragraph (c) shall provide to the commissioner, and those counties with whom they have
a contract, within six months after the effective date of each rate adjustment, a letter, in
a format specified by the commissioner, that provides assurances that the provider has
developed and implemented a compensation plan and complied with paragraph (c). The
provider shall keep on file, and produce for the commissioner or county upon request, its
plan, which must specify:
new text end

new text begin (1) an estimate of the amounts of money that must be used as specified in paragraph
(c); and
new text end

new text begin (2) a detailed distribution plan specifying the allowable compensation-related and
wage increases the provider will implement to use the funds available in clause (1).
new text end

new text begin (f) Within six months after the effective date of each rate adjustment, the provider
shall post this plan, excluding the information required in paragraph (e), clause (1), for
a period of at least six weeks in an area of the provider's operation to which all eligible
employees have access and provide instructions for employees who believe they have
not received the wage and other compensation-related increases specified in paragraph
(e), clause (2). Instructions must include a mailing address, e-mail address, and the
telephone number that may be used by the employee to contact the commissioner or the
commissioner's representative. Providers shall also make assurances to the commissioner
and counties with whom they have a contract that they have complied with the requirement
in this paragraph.
new text end

new text begin (g) The increases in this section shall be applied as a total percentage for all three
items above to the elderly waiver rates, including all components and limits, effective
September 30, 2013, and September 30, 2014. For any employees represented by a
collective bargaining unit, an agreement negotiated between the bargaining unit and the
employer satisfies the requirement for a plan under paragraph (e).
new text end