HF 3636

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to human services; modifying the phase-in of rebased nursing facility
operating cost payment rates; amending Minnesota Statutes 2007 Supplement,
section 256B.441, subdivisions 1, 55.

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

Section 1.

Minnesota Statutes 2007 Supplement, section 256B.441, subdivision 1,
is amended to read:

Subdivision 1.

Rebasing of nursing facility operating cost payment rates.

(a)
The commissioner shall rebase nursing facility operating cost payment rates to align
payments to facilities with the cost of providing care. The rebased operating cost payment
rates shall be calculated using the statistical and cost report filed by each nursing facility
for the report period ending one year prior to the rate year.

(b) The new operating cost payment rates based on this section shall take effect
beginning with the rate year beginning October 1, 2008, and shall be phased in over eight
rate years through October 1, 2015. new text begin For each year of the phase-in, the operating cost
payment rates shall be calculated using the statistical and cost report filed by each nursing
facility for the report period ending one year prior to the rate year.
new text end

(c) Operating cost payment rates shall be rebased on October 1, 2016, and every
two years after that date.

(d) Each cost reporting year shall begin on October 1 and end on the following
September 30. Beginning in 2006, a statistical and cost report shall be filed by each
nursing facility by January 15. Notice of rates shall be distributed by August 15 and the
rates shall go into effect on October 1 for one year.

(e) Effective October 1, 2014, property rates shall be rebased in accordance with
section 256B.431 and Minnesota Rules, chapter 9549. The commissioner shall determine
what the property payment rate for a nursing facility would be had the facility not had its
property rate determined under section 256B.434. The commissioner shall allow nursing
facilities to provide information affecting this rate determination that would have been
filed annually under Minnesota Rules, chapter 9549, and nursing facilities shall report
information necessary to determine allowable debt. The commissioner shall use this
information to determine the property payment rate.

Sec. 2.

Minnesota Statutes 2007 Supplement, section 256B.441, subdivision 55,
is amended to read:

Subd. 55.

Phase-in of rebased operating cost payment rates.

(a) For the rate years
beginning October 1, 2008, to October 1, 2012, the operating cost payment rate calculated
under this section shall be phased in by blending the operating cost rate with the operating
cost payment rate determined under section 256B.434. For the rate year beginning
October 1, 2008, the operating cost payment rate for each facility shall be 13 percent of
the operating cost payment rate from this section, and 87 percent of the operating cost
payment rate from section 256B.434. For the rate year beginning October 1, 2009, the
operating cost payment rate for each facility shall be 14 percent of the operating cost
payment rate from this section, and 86 percent of the operating cost payment rate from
section 256B.434. For the rate year beginning October 1, 2010, the operating cost payment
rate for each facility shall be 14 percent of the operating cost payment rate from this
section, and 86 percent of the operating cost payment rate from section 256B.434. For the
rate year beginning October 1, 2011, the operating cost payment rate for each facility shall
be 31 percent of the operating cost payment rate from this section, and 69 percent of the
operating cost payment rate from section 256B.434. For the rate year beginning October 1,
2012, the operating cost payment rate for each facility shall be 48 percent of the operating
cost payment rate from this section, and 52 percent of the operating cost payment rate
from section 256B.434. For the rate year beginning October 1, 2013, the operating cost
payment rate for each facility shall be 65 percent of the operating cost payment rate from
this section, and 35 percent of the operating cost payment rate from section 256B.434. For
the rate year beginning October 1, 2014, the operating cost payment rate for each facility
shall be 82 percent of the operating cost payment rate from this section, and 18 percent
of the operating cost payment rate from section 256B.434. For the rate year beginning
October 1, 2015, the operating cost payment rate for each facility shall be the operating
cost payment rate determined under this section. The blending of operating cost payment
rates under this section shall be performed separately for each RUG's class.

new text begin (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 increase.
new text end

new text begin (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 percent.
new text end

new text begin (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 increase.
new text end

new text begin (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).
new text end

deleted text begin (b) deleted text end new text begin (c) new text end A portion of the funds received under this subdivision that are in excess of
operating cost 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).

(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 year.

(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 percent.

(3) Subtract the amount determined in clause (2) from 75 percent.

(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).