Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 3390

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/21/2024 03:59pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/01/2024

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7
1.8 1.9 1.10 1.11 1.12 1.13
1.14 1.15 1.16
1.17 1.18 1.19 1.20 1.21 1.22
2.1 2.2 2.3
2.4 2.5 2.6 2.7 2.8
2.9 2.10 2.11
2.12 2.13 2.14 2.15 2.16
2.17 2.18 2.19
2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32
4.1 4.2 4.3
4.4 4.5 4.6 4.7 4.8 4.9 4.10
4.11 4.12 4.13
4.14 4.15 4.16 4.17 4.18
4.19 4.20 4.21
4.22 4.23 4.24 4.25 4.26 4.27
4.28 4.29 4.30

A bill for an act
relating to human services; modifying nursing facility payment rates; modifying
elderly waiver rates; amending Minnesota Statutes 2022, sections 256R.02, by
adding a subdivision; 256R.23, subdivisions 2, 3; 256R.24, subdivision 1;
Minnesota Statutes 2023 Supplement, sections 256R.25; 256S.211, subdivisions
1, 2; 256S.213, subdivision 1.

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

Section 1.

Minnesota Statutes 2022, section 256R.02, is amended by adding a subdivision
to read:


new text begin Subd. 25b. new text end

new text begin Known cost change factor. new text end

new text begin "Known cost change factor" means 1.00 plus
the forecasted percentage change in the CPI-U index from April 1 of the reporting period
to July 1 of the rate year as determined by the national economic consultant used by the
commissioner of management and budget.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the rate year beginning January 1,
2025, or upon federal approval, whichever occurs later. The commissioner of human services
shall notify the revisor of statutes when federal approval is obtained.
new text end

Sec. 2.

Minnesota Statutes 2022, section 256R.23, subdivision 2, is amended to read:


Subd. 2.

Calculation of direct care cost per standardized day.

Each facility's direct
care cost per standardized day isnew text begin calculated as follows: (1) multiplynew text end the facility's direct care
costs deleted text begin divideddeleted text end new text begin and the known cost change factor; and (2) divide the result of clause (1)new text end by
the sum of the facility's standardized days. A facility's direct care cost per standardized day
is the facility's cost per day for direct care services associated with a case mix index of 1.00.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the rate year beginning January 1,
2025, or upon federal approval, whichever occurs later. The commissioner of human services
shall notify the revisor of statutes when federal approval is obtained.
new text end

Sec. 3.

Minnesota Statutes 2022, section 256R.23, subdivision 3, is amended to read:


Subd. 3.

Calculation of other care-related cost per resident day.

Each facility's other
care-related cost per resident day is deleted text begin itsdeleted text end new text begin calculated as follows: (1) multiply the facility'snew text end other
care-related costsdeleted text begin , divideddeleted text end new text begin and the known cost change factor; and (2) divide the result of
clause (1)
new text end by the sum of the facility's resident days.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the rate year beginning January 1,
2025, or upon federal approval, whichever occurs later. The commissioner of human services
shall notify the revisor of statutes when federal approval is obtained.
new text end

Sec. 4.

Minnesota Statutes 2022, section 256R.24, subdivision 1, is amended to read:


Subdivision 1.

Determination of other operating cost per day.

Each facility's other
operating cost per day is deleted text begin itsdeleted text end new text begin calculated as follows: (1) multiply the facility'snew text end other operating
costs deleted text begin divideddeleted text end new text begin and the known cost change factor; and (2) divide the result of clause (1)new text end by
the sum of the facility's resident days.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the rate year beginning January 1,
2025, or upon federal approval, whichever occurs later. The commissioner of human services
shall notify the revisor of statutes when federal approval is obtained.
new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 256R.25, is amended to read:


256R.25 EXTERNAL FIXED COSTS PAYMENT RATE.

(a) The payment rate for external fixed costs is the sum of the amounts in paragraphs
(b) to (p).

(b) For a facility licensed as a nursing home, the portion related to the provider surcharge
under section 256.9657 is equal to $8.86 per resident day. For a facility licensed as both a
nursing home and a boarding care home, the portion related to the provider surcharge under
section 256.9657 is equal to $8.86 per resident day multiplied by the result of its number
of nursing home beds divided by its total number of licensed beds.

(c) The portion related to the licensure fee under section 144.122, paragraph (d), is the
amount of the fee divided by the sum of the facility's resident days.

(d) The portion related to development and education of resident and family advisory
councils under section 144A.33 is $5 per resident day divided by 365.

(e) The portion related to scholarships is determined under section 256R.37.

(f) The portion related to planned closure rate adjustments is as determined under section
256R.40, subdivision 5, and Minnesota Statutes 2010, section 256B.436.

(g) The portion related to consolidation rate adjustments shall be as determined under
section 144A.071, subdivisions 4c, paragraph (a), clauses (5) and (6), and 4d.

(h) The portion related to single-bed room incentives is as determined under section
256R.41.

(i) The portions related to real estate taxes, special assessments, and payments made in
lieu of real estate taxes directly identified or allocated to the nursing facility are the allowable
amounts divided by the sum of the facility's resident days. Allowable costs under this
paragraph for payments made by a nonprofit nursing facility that are in lieu of real estate
taxes shall not exceed the amount which the nursing facility would have paid to a city or
township and county for fire, police, sanitation services, and road maintenance costs had
real estate taxes been levied on that property for those purposes.

(j) The portion related to employer health insurance costs is deleted text begin thedeleted text end new text begin calculated as follows:
(1) multiply the facility's
new text end allowable new text begin employer health insurance new text end costs deleted text begin divideddeleted text end new text begin and the known
cost change factor; and (2) divide the result of clause (1)
new text end by the sum of the facility's resident
days.

(k) The portion related to the Public Employees Retirement Association is the allowable
costs divided by the sum of the facility's resident days.

(l) The portion related to quality improvement incentive payment rate adjustments is
the amount determined under section 256R.39.

(m) The portion related to performance-based incentive payments is the amount
determined under section 256R.38.

(n) The portion related to special dietary needs is the amount determined under section
256R.51.

(o) The portion related to the rate adjustments for border city facilities is the amount
determined under section 256R.481.

(p) The portion related to the rate adjustment for critical access nursing facilities is the
amount determined under section 256R.47.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the rate year beginning January 1,
2025, or upon federal approval, whichever occurs later. The commissioner of human services
shall notify the revisor of statutes when federal approval is obtained.
new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 256S.211, subdivision 1, is amended
to read:


Subdivision 1.

Establishing base wages.

When establishing and updating the base wages
according to section 256S.212, the commissioner shall use standard occupational
classification (SOC) codes from the Bureau of Labor Statistics as defined in the new text begin most recent
new text end edition of the Occupational Handbook deleted text begin published immediately prior to January 1, 2019,deleted text end
using Minnesota-specific wages taken from job descriptions.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025, or upon federal approval,
whichever occurs later. The commissioner of human services shall notify the revisor of
statutes when federal approval is obtained.
new text end

Sec. 7.

Minnesota Statutes 2023 Supplement, section 256S.211, subdivision 2, is amended
to read:


Subd. 2.

Updating rates.

On January 1, 2024, new text begin and each January 1 thereafter, new text end the
commissioner shall update component rates and rates according to sections 256S.212 to
256S.215, using the data referenced in subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025, or upon federal approval,
whichever occurs later. The commissioner of human services shall notify the revisor of
statutes when federal approval is obtained.
new text end

Sec. 8.

Minnesota Statutes 2023 Supplement, section 256S.213, subdivision 1, is amended
to read:


Subdivision 1.

Payroll taxes and benefits factor.

The payroll taxes and benefits factor
is the sum of net payroll taxes and benefits, divided by the sum of all salaries for all nursing
facilities on the most recent and available cost report.new text begin The commissioner must update the
payroll taxes and benefits factor each January 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025, or upon federal approval,
whichever occurs later. The commissioner of human services shall notify the revisor of
statutes when federal approval is obtained.
new text end