1.1                          A bill for an act 
  1.2             relating to human services; demonstration projects for 
  1.3             long-term care services; requiring waiver requests. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [OPEN DEMONSTRATION PROJECTS.] 
  1.6      Subdivision 1.  [REQUESTS FOR PROPOSAL.] It is the intent 
  1.7   of the state to modify the delivery of long-term care services 
  1.8   to meet the increasing demands of demographic changes in an 
  1.9   aging population.  These modifications will be designed to 
  1.10  ensure continued access to quality care for eligible persons.  
  1.11  The commissioners of the department of human services and the 
  1.12  department of health shall develop a request for proposal 
  1.13  process through which to evaluate demonstration projects for 
  1.14  approval.  The request for proposal process shall begin July 1, 
  1.15  1995, and continue thereafter.  Proposals shall be approved or 
  1.16  not approved within 60 days of receipt by the commissioners.  
  1.17  Costs incurred to develop proposals and implement projects shall 
  1.18  be an allowable cost under Minnesota Rules, chapter 9549. 
  1.19     Subd. 2.  [DEMONSTRATION PROJECT OBJECTIVES.] Demonstration 
  1.20  projects shall be fiscally responsible, seek the greatest 
  1.21  flexibility in the utilization of resources, maintain a level of 
  1.22  quality of care consistent with the demands of the state, and 
  1.23  respond to the changing demands of the marketplace.  In addition 
  1.24  to any other projects, demonstration projects may address the 
  2.1   following objectives: 
  2.2      (1) set nursing home rates through direct negotiations 
  2.3   between the department of human services and providers which 
  2.4   would eliminate the cost reporting and audit mechanism required 
  2.5   under Minnesota Rules, chapter 9549, while maintaining the 
  2.6   quality assurance survey of the department of health; 
  2.7      (2) establish a physician staff model to provide care to 
  2.8   all of the residents of a nursing home through a contract 
  2.9   between the nursing home and one or more physicians; or 
  2.10     (3) develop a capitated per diem payment model for a given 
  2.11  class of medical assistance eligible persons to be paid to a 
  2.12  single nursing home or long-term care organization to cover the 
  2.13  costs of all long-term care for that class of persons. 
  2.14     Subd. 3.  [WAIVER APPLICATION.] The commissioners shall 
  2.15  apply for all necessary federal waivers applicable to 
  2.16  demonstration projects selected by the commissioners.  All 
  2.17  necessary state waivers shall be granted for demonstration 
  2.18  projects selected by the commissioners.  A project accepted by 
  2.19  the commissioners shall commence at the time all waivers 
  2.20  necessary to implement the project are granted.