HF 789

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to medical assistance; establishing annual 
  1.3             rate adjustments for certain providers; modifying the 
  1.4             inflation index used to determine annual rate 
  1.5             adjustments for certain providers; amending Minnesota 
  1.6             Statutes 1998, sections 256B.435, subdivision 3; and 
  1.7             256B.5011, subdivision 3; proposing coding for new law 
  1.8             in Minnesota Statutes, chapter 256B. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [256B.29] [PROVIDER RATE INCREASES.] 
  1.11     (a) Effective July 1, 2001, within the limits of 
  1.12  appropriations specifically for this purpose, the commissioner 
  1.13  shall provide an annual inflation adjustment for the providers 
  1.14  listed in paragraph (c).  The index for the inflation adjustment 
  1.15  must be based on the change in the Employment Cost Index for 
  1.16  Private Industry Workers - Total Compensation forecasted by Data 
  1.17  Resources, Inc., as forecasted in the fourth quarter of the 
  1.18  calendar year preceding the fiscal year.  The commissioner shall 
  1.19  increase reimbursement or allocation rates by the percentage of 
  1.20  this adjustment, and county boards shall adjust provider 
  1.21  contracts as needed. 
  1.22     (b) The commissioner of finance shall include an annual 
  1.23  inflationary adjustment in reimbursement rates for the providers 
  1.24  listed in paragraph (c) using the inflation factor specified in 
  1.25  paragraph (a) as a budget change request in each biennial 
  1.26  detailed expenditure budget submitted to the legislature under 
  1.27  section 16A.11. 
  2.1      (c) The annual adjustment under paragraph (a) shall be 
  2.2   provided for home- and community-based waiver services for 
  2.3   persons with mental retardation or related conditions under 
  2.4   section 256B.501; home- and community-based waiver services for 
  2.5   the elderly under section 256B.0915; waivered services under 
  2.6   community alternatives for disabled individuals under section 
  2.7   256B.49; community alternative care waivered services under 
  2.8   section 256B.49; traumatic brain injury waivered services under 
  2.9   section 256B.49; nursing services and home health services under 
  2.10  section 256B.0625, subdivision 6a; personal care services and 
  2.11  nursing supervision of personal care services under section 
  2.12  256B.0625, subdivision 19a; private duty nursing services under 
  2.13  section 256B.0625, subdivision 7; day training and habilitation 
  2.14  services for adults with mental retardation or related 
  2.15  conditions under sections 252.40 to 252.46; physical therapy 
  2.16  services under sections 256B.0625, subdivision 8, and 256D.03, 
  2.17  subdivision 4; occupational therapy services under sections 
  2.18  256B.0625, subdivision 8a, and 256D.03, subdivision 4; 
  2.19  speech-language therapy services under section 256D.03, 
  2.20  subdivision 4, and Minnesota Rules, part 9505.0390; respiratory 
  2.21  therapy services under section 256D.03, subdivision 4, and 
  2.22  Minnesota Rules, part 9505.0295; alternative care services under 
  2.23  section 256B.0913; adult residential program grants under 
  2.24  Minnesota Rules, parts 9535.2000 to 9535.3000; adult and family 
  2.25  community support grants under Minnesota Rules, parts 9535.1700 
  2.26  to 9535.1760; semi-independent living services under section 
  2.27  252.275 including SILS funding under county social services 
  2.28  grants formerly funded under chapter 256I; and community support 
  2.29  services for deaf and hard-of-hearing adults with mental illness 
  2.30  who use or wish to use sign language as their primary means of 
  2.31  communication. 
  2.32     (d) At least 75 percent of the rate increase provided under 
  2.33  this section must be used to increase the wages and benefits of 
  2.34  employees other than administrators and central office 
  2.35  employees.  Providers must submit a plan to the commissioner 
  2.36  annually describing how the increase is being utilized.  
  3.1      Sec. 2.  Minnesota Statutes 1998, section 256B.435, 
  3.2   subdivision 3, is amended to read: 
  3.3      Subd. 3.  [PAYMENT RATE PROVISIONS.] (a) For rate years 
  3.4   beginning on or after July 1, 2000, within the limits of 
  3.5   appropriations specifically for this purpose, the commissioner 
  3.6   shall determine operating cost payment rates for each licensed 
  3.7   and certified nursing facility by indexing its operating cost 
  3.8   payment rates in effect on June 30, 2000, for inflation.  The 
  3.9   inflation factor to be used for the rate year beginning on July 
  3.10  1, 2000, must be based on the change in the Consumer Price 
  3.11  Index-All Items, United States city average (CPI-U) as 
  3.12  forecasted by Data Resources, Inc. in the fourth quarter 
  3.13  preceding the rate year.  For rate years beginning on or after 
  3.14  July 1, 2001, the inflation factor must be based on the change 
  3.15  in the Employment Cost Index for Private Industry Workers - 
  3.16  Total Compensation as forecasted by Data Resources, Inc., in the 
  3.17  fourth quarter preceding the rate year.  The CPI-U forecasted 
  3.18  index for operating cost payment rates shall be based on the 
  3.19  12-month period from the midpoint of the nursing facility's 
  3.20  prior rate year to the midpoint of the rate year for which the 
  3.21  operating payment rate is being determined. 
  3.22     (b) Beginning July 1, 2000, each nursing facility subject 
  3.23  to a performance-based contract under this section shall choose 
  3.24  one of two methods of payment for property-related costs: 
  3.25     (1) the method established in section 256B.434; or 
  3.26     (2) the method established in section 256B.431.  
  3.27  Once the nursing facility has made the election in this 
  3.28  paragraph, that election shall remain in effect for at least 
  3.29  four years or until an alternative property payment system is 
  3.30  developed. 
  3.31     (c) For rate years beginning on or after July 1, 2000, the 
  3.32  commissioner may implement a new method of payment for 
  3.33  property-related costs that addresses the capital needs of 
  3.34  nursing facilities.  Notwithstanding paragraph (b), the new 
  3.35  property payment system or systems, if implemented, shall 
  3.36  replace the current method of setting property payment rates 
  4.1   under sections 256B.431 and 256B.434.  
  4.2      Sec. 3.  Minnesota Statutes 1998, section 256B.5011, 
  4.3   subdivision 3, is amended to read: 
  4.4      Subd. 3.  [PAYMENT RATE PROVISIONS.] For rate years 
  4.5   beginning on or after October 1, 2000, within the limits of 
  4.6   appropriations specifically for this purpose, the commissioner 
  4.7   shall determine the total payment rate for each licensed and 
  4.8   certified intermediate care facility by indexing the total 
  4.9   payment rate in effect on September 30, 2000, for inflation.  
  4.10  The inflation factor to be used for the rate year beginning on 
  4.11  October 1, 2000, must be based on the change in the Consumer 
  4.12  Price Index-All Items, United States city average (CPI-U) as 
  4.13  forecasted by Data Resources, Inc. in the first quarter of the 
  4.14  calendar year during which the rate year begins.  For rate years 
  4.15  beginning on or after October 1, 2001, the inflation factor must 
  4.16  be based on the change in the Employment Cost Index for Private 
  4.17  Industry Workers - Total Compensation as forecasted by Data 
  4.18  Resources, Inc., in the fourth quarter preceding the rate year.  
  4.19  The CPI-U forecasted index for total payment rates shall be 
  4.20  based on the 12-month period from the midpoint of the facility's 
  4.21  prior rate year to the midpoint of the rate year for which the 
  4.22  operating payment rate is being determined.