Minnesota Legislature
HF 1626
as introduced - 88th Legislature (2013 - 2014) Posted on 03/18/2013 02:58pm
Current Version - as introduced
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A bill for an act
relating to human services; modifying payment rates for nursing facilities;
amending Minnesota Statutes 2012, section 256B.441, subdivisions 55, 62.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 256B.441, subdivision 55, is amended to
read:
Subd. 55.
Phase-in of rebased operating payment rates.
(a) For the rate years
beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated
under this section shall be phased in by blending the operating rate with the operating
payment rate determined under section 256B.434. For purposes of this subdivision, the
rate to be used that is determined under section 256B.434 shall not include the portion of
the operating payment rate related to performance-based incentive payments under section
256B.434, subdivision 4, paragraph (d)deleted text begin .deleted text end new text begin :
new text end
new text begin (1) new text end for the rate year beginning October 1, 2008, the operating payment rate for each
facility shall be 13 percent of the operating payment rate from this section, and 87 percent
of the operating payment rate from section 256B.434deleted text begin .deleted text end new text begin ;new text end
new text begin (2) new text end for the rate period from October 1, 2009, to September 30, 2013, no rate
adjustments shall be implemented under this section, but shall be determined under
section 256B.434deleted text begin .deleted text end new text begin ;new text end
new text begin (3) new text end for the rate year beginning October 1, 2013, the operating payment rate for each
facility shall be deleted text begin 65deleted text end new text begin 85new text end percent of the operating payment rate from this section, and deleted text begin 35deleted text end new text begin 15
new text end percent of the operating payment rate from section 256B.434deleted text begin .deleted text end new text begin ;
new text end
new text begin (4)new text end for the rate year beginning October 1, 2014, the operating payment rate for each
facility shall be 82 percent of the operating payment rate from this section, and 18 percent
of the operating payment rate from section 256B.434deleted text begin .deleted text end new text begin ; and
new text end
new text begin (5)new text end for the rate year beginning October 1, 2015, the operating payment rate for
each facility shall be the operating payment rate determined under this section. The
blending of operating payment rates under this section shall be performed separately for
each RUG's class.
(b) For the rate year beginning October 1, 2008, the commissioner shall apply limits
to the operating payment rate increases under paragraph (a) by creating a minimum
percentage increase and a maximum percentage increasedeleted text begin .deleted text end new text begin :
new text end
(1) each nursing facility that receives a blended October 1, 2008, operating payment
rate increase under paragraph (a) of less than one percent, when compared to its operating
payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00,
shall receive a rate adjustment of one percentdeleted text begin .deleted text end new text begin ;
new text end
(2) the commissioner shall determine a maximum percentage increase that will
result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing
facilities with a blended October 1, 2008, operating payment rate increase under paragraph
(a) greater than the maximum percentage increase determined by the commissioner, when
compared to its operating payment rate on September 30, 2008, computed using rates with
a RUG's weight of 1.00, shall receive the maximum percentage increasedeleted text begin .deleted text end new text begin ;
new text end
(3) nursing facilities with a blended October 1, 2008, operating payment rate
increase under paragraph (a) greater than one percent and less than the maximum
percentage increase determined by the commissioner, when compared to its operating
payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00,
shall receive the blended October 1, 2008, operating payment rate increase determined
under paragraph (a)deleted text begin .deleted text end new text begin ; and
new text end
(4) the October 1, 2009, through October 1, 2015, operating payment rate for
facilities receiving the maximum percentage increase determined in clause (2) shall be
the amount determined under paragraph (a) less the difference between the amount
determined under paragraph (a) for October 1, 2008, and the amount allowed under clause
(2). This rate restriction does not apply to rate increases provided in any other section.
(c) A portion of the funds received under this subdivision that are in excess of
operating payment rates that a facility would have received under section 256B.434, as
determined in accordance with clauses (1) to (3), shall be subject to the requirements in
section 256B.434, subdivision 19, paragraphs (b) to (h)deleted text begin .deleted text end new text begin :
new text end
(1) determine the amount of additional funding available to a facility, which shall be
equal to total medical assistance resident days from the most recent reporting year times
the difference between the blended rate determined in paragraph (a) for the rate year being
computed and the blended rate for the prior yeardeleted text begin .deleted text end new text begin ;
new text end
(2) determine the portion of all operating costs, for the most recent reporting year,
that are compensation related. If this value exceeds 75 percent, use 75 percentdeleted text begin .deleted text end new text begin ;
new text end
(3) subtract the amount determined in clause (2) from 75 percentdeleted text begin .deleted text end new text begin ; and
new text end
(4) the portion of the fund received under this subdivision that shall be subject to the
requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal the
amount determined in clause (1) times the amount determined in clause (3).
Sec. 2.
Minnesota Statutes 2012, section 256B.441, subdivision 62, is amended to read:
Subd. 62.
Repeal of rebased operating payment rates.
Notwithstanding
subdivision 54 or 55, no further steps toward phase-in of rebased operating payment rates
shall be takennew text begin , except for subdivision 55, paragraph (a), clause (3)new text end .