1.1                          A bill for an act 
  1.2             relating to human services; defining uncertified 
  1.3             boarding care home; changing rate paid for uncertified 
  1.4             boarding care homes; amending Minnesota Statutes 1994, 
  1.5             sections 256I.03, by adding a subdivision; and 
  1.6             256I.05, subdivision 1c. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 256I.03, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 7.  [UNCERTIFIED BOARDING CARE HOME.] "Uncertified 
  1.11  boarding care home" means residences that are licensed by the 
  1.12  commissioner of health as a boarding care home, but are not 
  1.13  certified for the purposes of the medical assistance program. 
  1.14     Sec. 2.  Minnesota Statutes 1994, section 256I.05, 
  1.15  subdivision 1c, is amended to read: 
  1.16     Subd. 1c.  [RATE INCREASES.] A county agency may not 
  1.17  increase the rates negotiated for group residential housing 
  1.18  above those in effect on June 30, 1993, except:  
  1.19     (a) A county may increase the rates for group residential 
  1.20  housing settings to the MSA equivalent rate for those settings 
  1.21  whose current rate is below the MSA equivalent rate.  
  1.22     (b) A county agency may increase the rates for residents in 
  1.23  adult foster care whose difficulty of care has increased.  The 
  1.24  total group residential housing rate for these residents must 
  1.25  not exceed the maximum rate specified in subdivisions 1 and 1a.  
  1.26  County agencies must not include nor increase group residential 
  2.1   housing difficulty of care rates for adults in foster care whose 
  2.2   difficulty of care is eligible for funding by home and 
  2.3   community-based waiver programs under title XIX of the Social 
  2.4   Security Act.  
  2.5      (c) The room and board rates will be increased each year 
  2.6   when the MSA equivalent rate is adjusted for SSI cost-of-living 
  2.7   increases by the amount of the annual SSI increase, less the 
  2.8   amount of the increase in the medical assistance personal needs 
  2.9   allowance under section 256B.35.  
  2.10     (d) When a group residential housing rate is used to pay 
  2.11  for an individual's room and board, or other costs necessary to 
  2.12  provide room and board, the rate payable to the residence must 
  2.13  continue for up to 18 calendar days per incident that the person 
  2.14  is temporarily absent from the residence, not to exceed 60 days 
  2.15  in a calendar year, if the absence or absences have received the 
  2.16  prior approval of the county agency's social service staff.  
  2.17  Prior approval is not required for emergency absences due to 
  2.18  crisis, illness, or injury.  
  2.19     (e) For facilities meeting substantial change criteria 
  2.20  within the prior year.  Substantial change criteria exists if 
  2.21  the group residential housing establishment experiences a 25 
  2.22  percent increase or decrease in the total number of its beds, if 
  2.23  the net cost of capital additions or improvements is in excess 
  2.24  of 15 percent of the current market value of the residence, or 
  2.25  if the residence physically moves, or changes its licensure, and 
  2.26  incurs a resulting increase in operation and property costs. 
  2.27     (f) Until June 30, 1994, a county agency may increase by up 
  2.28  to five percent the total rate paid for recipients of assistance 
  2.29  under sections 256D.01 to 256D.21 or 256D.33 to 256D.54 who 
  2.30  reside in residences that are licensed by the commissioner of 
  2.31  health as a boarding care home, but are not certified for the 
  2.32  purposes of the medical assistance program.  However, an 
  2.33  increase under this clause must not exceed an amount equivalent 
  2.34  to 65 percent of the 1991 medical assistance reimbursement rate 
  2.35  for nursing home resident class A, in the geographic grouping in 
  2.36  which the facility is located, as established under Minnesota 
  3.1   Rules, parts 9549.0050 to 9549.0058. 
  3.2      (g) By July 1, 1996, a county agency must increase the 
  3.3   total rate paid for recipients of assistance under sections 
  3.4   256D.01 to 256D.21 or 256D.33 to 256D.54 who reside in 
  3.5   uncertified boarding care homes, as follows. 
  3.6      (1) For uncertified boarding care homes with 60 or less 
  3.7   beds, and with a rate that does not exceed an amount equivalent 
  3.8   to 65 percent of the 1994 medical assistance reimbursement rate 
  3.9   for nursing home resident class A in the geographic grouping in 
  3.10  which the facility is located, as established under Minnesota 
  3.11  Rules, parts 9549.0050 to 9549.0058, the new rate shall equal 
  3.12  the greater of 110 percent of the current rate or the maximum 
  3.13  group residential rate for recipients of waiver services under 
  3.14  section 256I.05, subdivision 1a. 
  3.15     (2) For uncertified boarding care homes with more than 60 
  3.16  beds, and with a rate that does not exceed an amount equivalent 
  3.17  to 65 percent of the 1994 medical assistance reimbursement rate 
  3.18  for nursing home resident class A in the geographic grouping in 
  3.19  which the facility is located, as established under Minnesota 
  3.20  Rules, parts 9549.0050 to 9549.0058, the rate increase shall 
  3.21  equal 110 percent of the current rate. 
  3.22     (3) Beginning in 1997 and annually thereafter, the 
  3.23  commissioner of human services shall:  index all uncertified 
  3.24  boarding care home rates from the prior year by the percentage 
  3.25  change in the Data Resources Inc., Nursing Home Market Basket 
  3.26  between the midpoint of the current rate year and the midpoint 
  3.27  of the previous rate year; and mandate that county agencies 
  3.28  provide this indexed inflation adjustment for uncertified 
  3.29  boarding care homes annually on July 1.