HF 2885

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/21/2014 02:55pm

A bill for an act
relating to human services; providing a nursing facility rate adjustment;
amending Minnesota Statutes 2012, section 256B.441, by adding a subdivision;
Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 53.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 53,
is amended to read:

Subd. 53.

Calculation of payment rate for external fixed costs.

The commissioner
shall calculate a payment rate for external fixed costs.

(a) For a facility licensed as a nursing home, the portion related to section 256.9657
shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care
home, the portion related to section 256.9657 shall be equal to $8.86 multiplied by the
result of its number of nursing home beds divided by its total number of licensed beds.

(b) The portion related to the licensure fee under section 144.122, paragraph (d),
shall be the amount of the fee divided by actual resident days.

(c) The portion related to scholarships shall be determined under section 256B.431,
subdivision 36.

(d) Until September 30, 2013, the portion related to long-term care consultation shall
be determined according to section 256B.0911, subdivision 6.

(e) The portion related to development and education of resident and family advisory
councils under section 144A.33 shall be $5 divided by 365.

(f) The portion related to planned closure rate adjustments shall be as determined
under section 256B.437, subdivision 6, and Minnesota Statutes 2010, section 256B.436.
Planned closure rate adjustments that take effect before October 1, 2014, shall no longer
be included in the payment rate for external fixed costs beginning October 1, 2016.
Planned closure rate adjustments that take effect on or after October 1, 2014, shall no
longer be included in the payment rate for external fixed costs beginning on October 1 of
the first year not less than two years after their effective date.

(g) The portions related to property insurance, real estate taxes, special assessments,
and payments made in lieu of real estate taxes directly identified or allocated to the nursing
facility shall be the actual amounts divided by actual resident days.

(h) The portion related to the Public Employees Retirement Association shall be
actual costs divided by resident days.

(i) The single bed room incentives shall be as determined under section 256B.431,
subdivision 42. Single bed room incentives that take effect before October 1, 2014, shall
no longer be included in the payment rate for external fixed costs beginning October 1,
2016. Single bed room incentives that take effect on or after October 1, 2014, shall no
longer be included in the payment rate for external fixed costs beginning on October 1 of
the first year not less than two years after their effective date.

(j) new text begin The portion related to the rate adjustment as provided in subdivision 64.
new text end

new text begin (k) new text end The payment rate for external fixed costs shall be the sum of the amounts in
paragraphs (a) to deleted text begin (i) deleted text end new text begin (j) new text end .

Sec. 2.

Minnesota Statutes 2012, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 64. new text end

new text begin Rate adjustment for compensation-related costs. new text end

new text begin (a) Total payment
rates of all nursing facilities that are reimbursed under this section or section 256B.434
shall be increased effective October 1, 2014, to address compensation costs for nursing
facility employees paid less than $14 per hour.
new text end

new text begin (b) Based on the application in paragraph (d), the commissioner shall calculate
the annualized compensation costs by adding the totals of clauses (1), (2), and (3). The
result must be divided by the resident days from the most recently available cost report to
determine a per diem amount, which must be included in the external fixed-cost portion of
the total payment rate under subdivision 53:
new text end

new text begin (1) the sum of the difference between $9.50 and any hourly wage rate of less than
$9.50, multiplied by the number of compensated hours at that wage rate;
new text end

new text begin (2) the sum of items (i) to (viii):
new text end

new text begin (i) for all compensated hours from $8 to $8.49 per hour, the number of compensated
hours is multiplied by $0.13;
new text end

new text begin (ii) for all compensated hours from $8.50 to $8.99 per hour, the number of
compensated hours is multiplied by $0.25;
new text end

new text begin (iii) for all compensated hours from $9 to $9.49 per hour, the number of compensated
hours is multiplied by $0.38;
new text end

new text begin (iv) for all compensated hours from $9.50 to $10.49 per hour, the number of
compensated hours is multiplied by $0.50;
new text end

new text begin (v) for all compensated hours from $10.50 to $10.99 per hour, the number of
compensated hours is multiplied by $0.40;
new text end

new text begin (vi) for all compensated hours from $11 to $11.49 per hour, the number of
compensated hours is multiplied by $0.30;
new text end

new text begin (vii) for all compensated hours from $11.50 to $11.99 per hour, the number of
compensated hours is multiplied by $0.20; and
new text end

new text begin (viii) for all compensated hours from $12 to $13 per hour, the number of
compensated hours is multiplied by $0.10; and
new text end

new text begin (3) the sum of the employer's share of FICA taxes, Medicare taxes, state and federal
unemployment taxes, workers' compensation, pensions, and contributions to employee
retirement accounts attributable to the amounts in clauses (1) and (2).
new text end

new text begin (c) For the rate year beginning October 1, 2014, nursing facilities that receive
approval of the application in paragraph (d) must receive a rate adjustment according to
paragraph (b). The rate adjustment must be used to pay compensation costs for nursing
facility employees paid less than $14 per hour. The rate adjustment must continue to be
included in the total payment rate in subsequent years.
new text end

new text begin (d) To receive a rate adjustment, nursing facilities must submit an application to the
commissioner in a form and manner determined by the commissioner. The application
shall include data for a period beginning with the first pay period after January 1, 2015,
including at least three months of employee compensated hours by wage rate, and a
spending plan that describes how the funds from the rate adjustment will be allocated
for compensation to employees paid less than $14 per hour. The application must
be submitted by December 31, 2014. The commissioner may request any additional
information needed to determine the rate adjustment within three weeks of receiving
a complete application. The nursing facility must provide any additional information
requested by the commissioner by March 31, 2015. The commissioner may waive the
deadlines in this subdivision under extraordinary circumstances.
new text end

new text begin (e) For nursing facilities in which employees are represented by an exclusive
bargaining representative, the commissioner shall approve the application submitted under
this subdivision only upon receipt of a letter of acceptance of the spending plan in regard
to members of the bargaining unit, signed by the exclusive bargaining agent and dated
after May 31, 2014. Upon receipt of the letter of acceptance, the commissioner shall
deem all requirements of this subdivision as having been met in regard to the members of
the bargaining unit.
new text end