1.1                          A bill for an act 
  1.2             relating to human services; development of a long-term 
  1.3             care payment and services delivery system; 
  1.4             appropriating money.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [LONG-TERM CARE DEMONSTRATION PROJECTS.] 
  1.7      Subdivision 1.  [REQUESTS FOR PROPOSAL.] It is the intent 
  1.8   of the state to seek to bring about changes in the delivery and 
  1.9   payment of long-term care services that will assure eligibility, 
  1.10  access, and innovation through the reformation of the existing 
  1.11  delivery systems, financial incentives, and regulatory 
  1.12  mandates.  As a first phase of this long-term care reform 
  1.13  effort, the commissioner shall begin the process of approving 
  1.14  demonstration projects that are selected through a request for 
  1.15  proposal mechanism.  The commissioner shall form an advisory 
  1.16  committee to:  (1) assist in the development of requests for 
  1.17  proposals for demonstration projects that meet the guidelines 
  1.18  identified in subdivision 3; (2) monitor the progress of the 
  1.19  selected demonstration projects; and (3) analyze the success and 
  1.20  potential for expansion of selected demonstration projects.  The 
  1.21  advisory committee shall include, at a minimum, representatives 
  1.22  from the long-term care provider community, department of 
  1.23  health, department of human services, and consumers of long-term 
  1.24  care services.  Requests for proposals must be developed by July 
  1.25  1, 1995, with the selection of demonstration project recipients 
  2.1   completed on or after August 3, 1995.  Costs associated with the 
  2.2   development of request for proposal responses are allowable 
  2.3   costs under Minnesota Rules, part 9549. 
  2.4      Subd. 2.  [WAIVER APPLICATION.] The commissioner shall 
  2.5   apply for applicable state and federal waivers for the 
  2.6   demonstration projects selected according to the request for 
  2.7   proposal process including waivers of applicable antitrust 
  2.8   requirements.  The commissioner shall begin the waiver 
  2.9   application process when the advisory committee completes the 
  2.10  request for proposal development. 
  2.11     Subd. 3.  [GUIDING PRINCIPLES.] In developing requests for 
  2.12  proposal and consideration of provider selection, the 
  2.13  commissioner shall consider how the project proposal response 
  2.14  incorporates the following guiding principles: 
  2.15     (1) adapts to changing consumer needs, marketplace demands, 
  2.16  and payment sources; 
  2.17     (2) recognizes the various standards for quality from 
  2.18  consumers, payors, and providers, and whenever possible, allows 
  2.19  market forces to dictate the levels of regulation to attain 
  2.20  quality services at prices acceptable to the payors; 
  2.21     (3) promotes an environment which recognizes the value 
  2.22  limited human resources; 
  2.23     (4) provides for maximum diversity, innovation and 
  2.24  flexibility within the continuum of long-term care ranging from 
  2.25  the subacute service provision to home-based services by 
  2.26  expanding consumer choice for payment and service provision; 
  2.27     (5) is based on principles of fiscal responsibility and 
  2.28  includes incentives for efficiency for consumers, providers, and 
  2.29  payors while allowing for the greatest amount of access to 
  2.30  services possible; and 
  2.31     (6) accommodates a multitude of public and private funding 
  2.32  sources that is predictable for consumers, providers, and payors 
  2.33  both in the short term and in reflecting needs through the next 
  2.34  decade. 
  2.35     Subd. 4.  [DEMONSTRATION PROJECT PARAMETERS.] In addition 
  2.36  to meeting the general guidelines established in subdivision 3, 
  3.1   the advisory committee shall consider the following in 
  3.2   development of the request for proposals and selection of 
  3.3   demonstration projects:  (1) length of the project; (2) 
  3.4   inclusion of multiple systems; (3) consideration of both rural 
  3.5   and urban participation; (4) enrollment of diverse populations; 
  3.6   (5) consideration of a variety of services and providers; and (6)
  3.7   the extent to which there is a public and private partnership.  
  3.8   The applicability of the demonstration projects shall be limited 
  3.9   to the programs and beneficiaries to which the state makes 
  3.10  payments through medical assistance, general assistance, medical 
  3.11  care, and Minnesota supplemental aid. 
  3.12     Sec. 2.  [APPROPRIATION.] 
  3.13     $250,000 is appropriated from the general fund to the 
  3.14  commissioner of human services for administration of the 
  3.15  demonstration project process in section 1.