1.1                          A bill for an act 
  1.2             relating to health care; modifying reimbursement 
  1.3             methodologies for certain services; increasing 
  1.4             reimbursement rates for certain services; 
  1.5             appropriating money; amending Minnesota Statutes 1994, 
  1.6             section 256B.0627, by adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 256B.0627, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 5a.  [REIMBURSEMENT METHODOLOGY.] (a) For the home 
  1.11  care services of nursing, home health aide, physical therapy, 
  1.12  occupational therapy, and speech therapy rendered on or after 
  1.13  July 1, 1995, payments to all providers statewide must be the 
  1.14  lower of the provider's submitted charge or the current 
  1.15  cost-per-visit limits established by Medicare for a freestanding 
  1.16  home care agency in the seven-county metropolitan area.  These 
  1.17  limits must be adjusted annually on July 1 based on changes in 
  1.18  the Medicare cost-per-visit limits. 
  1.19     (b) For the home care service of respiratory therapy 
  1.20  rendered on or after July 1, 1995, payments must be the lower of 
  1.21  the provider's submitted charge or $50.80.  The payment limit 
  1.22  must be adjusted annually on July 1 based on the Data Resources, 
  1.23  Inc., forecast for change in the Consumer Price Index-All Items 
  1.24  (U.S. city average)(CPI-U). 
  1.25     Sec. 2.  [INFLATION ADJUSTMENT.] 
  1.26     Notwithstanding Minnesota Statutes, section 256B.0625, 
  2.1   subdivision 19b, the commissioner of human services shall 
  2.2   increase reimbursement rates for personal care services and 
  2.3   private duty nursing services by four percent in the fiscal year 
  2.4   beginning July 1, 1995, and by an additional four percent in the 
  2.5   fiscal year beginning July 1, 1996.  These increases shall 
  2.6   become part of the base level appropriation for the biennium 
  2.7   beginning July 1, 1997. 
  2.8      Sec. 3.  [APPROPRIATION.] 
  2.9      $....... is appropriated from the general fund to the 
  2.10  commissioner of human services for the purposes of sections 1 
  2.11  and 2, to be available until June 30, 1997.