1.1                          A bill for an act 
  1.2             relating to human services; establishing a health care 
  1.3             safety net preservation program; allowing voluntary 
  1.4             agreements to expand intergovernmental transfers; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 256B. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [256B.195] [HEALTH CARE SAFETY NET PRESERVATION 
  1.9   PROGRAM.] 
  1.10     Subdivision 1.  [INTERGOVERNMENTAL TRANSFERS AND RELATED 
  1.11  PAYMENTS.] (a) The commissioner shall execute agreements with 
  1.12  any willing nonstate government entity in order to collect 
  1.13  revenues through an intergovernmental transfer.  The 
  1.14  intergovernmental transfer, along with associated federal 
  1.15  Medicaid matching payments, shall be used to fund enhanced 
  1.16  Medicaid reimbursement for health care safety net providers 
  1.17  designated by the nonstate government entity participating in 
  1.18  the intergovernmental transfer. 
  1.19     (b) The commissioner shall establish special payments for 
  1.20  health care safety net providers designated by nonstate 
  1.21  government entities making an intergovernmental transfer under 
  1.22  this section in order to increase total Medicaid payments to 
  1.23  these providers. 
  1.24     (c) Providers receiving special payments shall be limited 
  1.25  to those nonstate health care safety net providers designated by 
  1.26  the governmental entity making the intergovernmental transfer 
  2.1   and that meet applicable federal financial qualifications. 
  2.2      Subd. 2.  [WRITTEN AGREEMENTS REQUIRED.] The commissioner 
  2.3   shall establish written agreements between the state and each of 
  2.4   the participating nonstate entities.  The agreements shall: 
  2.5      (1) identify the methodology for determining the amount of 
  2.6   funds to be transferred to the state through an 
  2.7   intergovernmental transfer; 
  2.8      (2) identify the methodology for determining the amount of 
  2.9   payments to the provider, which amount shall not be less than 
  2.10  the amount of intergovernmental transfer contributed by the 
  2.11  nonstate government entity and all federal revenue generated by 
  2.12  the intergovernmental transfer; 
  2.13     (3) identify reporting requirements pertaining to local 
  2.14  participating nonstate entities, nonstate health care safety net 
  2.15  providers, and the state; and 
  2.16     (4) describe conditions under which the agreement may be 
  2.17  amended or terminated by participating parties. 
  2.18     Subd. 3.  [DETERMINATION OF INTERGOVERNMENTAL TRANSFER 
  2.19  AMOUNTS.] Medicaid rate changes, if any, shall precede the 
  2.20  determination of intergovernmental transfer amounts determined 
  2.21  in this section.  Participation in the intergovernmental 
  2.22  transfer program shall not result in the offset of any health 
  2.23  care provider's receipt of Medicaid payment increases. 
  2.24     Subd. 4.  [STATE PLAN AMENDMENTS.] The commissioner shall 
  2.25  amend the state Medicaid plan as necessary to implement this 
  2.26  section. 
  2.27     Sec. 2.  [EFFECTIVE DATE.] 
  2.28     Section 1 is effective July 1, 2001.