1.1                          A bill for an act 
  1.2             relating to human services; establishing annual rate 
  1.3             increases for certain facilities and programs; 
  1.4             amending Minnesota Statutes 2000, sections 256B.435, 
  1.5             subdivision 3; 256B.5012, subdivision 2; and 256B.765. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 256B.435, 
  1.8   subdivision 3, is amended to read: 
  1.9      Subd. 3.  [PAYMENT RATE PROVISIONS.] (a) For rate years 
  1.10  beginning on or after July 1, 2001 2003, within the limits of 
  1.11  appropriations specifically for this purpose, the commissioner 
  1.12  shall determine operating cost payment rates for each licensed 
  1.13  and certified nursing facility by indexing its operating cost 
  1.14  payment rates in effect on June 30, 2001 2003, for inflation.  
  1.15  For rate years beginning on or after July 1, 2001 2003, the 
  1.16  inflation factor must be based on the change in the Employment 
  1.17  Cost Index for Private Industry Workers - Total Compensation as 
  1.18  forecasted by the commissioner of finance's national economic 
  1.19  consultant, in the fourth quarter preceding the rate year.  The 
  1.20  forecasted index for operating cost payment rates shall be based 
  1.21  on the 12-month period from the midpoint of the nursing 
  1.22  facility's prior rate year to the midpoint of the rate year for 
  1.23  which the operating payment rate is being determined.  The 
  1.24  operating cost payment rate to be inflated shall be the total 
  1.25  payment rate in effect on June 30, 2001 2003, minus the portion 
  2.1   determined to be the property-related payment rate, minus the 
  2.2   per diem amount of the preadmission screening cost included in 
  2.3   the nursing facility's last payment rate established under 
  2.4   section 256B.431. 
  2.5      (b) The inflation adjustment in paragraph (a) is dependent 
  2.6   on a legislative appropriation of the amount specified in the 
  2.7   budget forecast as required to pay the adjustment.  The 
  2.8   commissioner of finance, for information purposes, may include 
  2.9   in the biennial budget document information on the cost of this 
  2.10  rate adjustment. 
  2.11     (b) (c) A per diem amount for preadmission screening will 
  2.12  be added onto the contract payment rates according to the method 
  2.13  of distribution of county allocation described in section 
  2.14  256B.0911, subdivision 6, paragraph (a). 
  2.15     (c) (d) For rate years beginning on or after July 1, 2001, 
  2.16  the commissioner may implement a new method of payment for 
  2.17  property-related costs that addresses the capital needs of 
  2.18  facilities.  The new property payment system or systems, if 
  2.19  implemented, shall replace the current methods of setting 
  2.20  property payment rates under sections 256B.431 and 256B.434. 
  2.21     Sec. 2.  Minnesota Statutes 2000, section 256B.5012, 
  2.22  subdivision 2, is amended to read: 
  2.23     Subd. 2.  [OPERATING PAYMENT RATE.] (a) The operating 
  2.24  payment rate equals the facility's total payment rate in effect 
  2.25  on September 30, 2000 June 30, 2003, minus the property rate.  
  2.26  The operating payment rate includes the special operating rate 
  2.27  and the efficiency incentive in effect as of September 30, 2000 
  2.28  June 30, 2003.  Within the limits of appropriations specifically 
  2.29  for this purpose, The operating payment shall be increased for 
  2.30  each rate year on July 1, 2003, and on each succeeding July 1 by 
  2.31  the annual percentage change in the Employment Cost Index for 
  2.32  Private Industry Workers - Total Compensation, as forecasted by 
  2.33  the commissioner of finance's economic consultant, in the second 
  2.34  fourth quarter of the calendar year preceding the start of 
  2.35  each rate fiscal year.  In the case of the initial rate year 
  2.36  beginning October 1, 2000, and continuing through December 31, 
  3.1   2001, the percentage change shall be based on the percentage 
  3.2   change in the Employment Cost Index for Private Industry Workers 
  3.3   - Total Compensation for the 15-month period beginning October 
  3.4   1, 2000, as forecast by Data Resources, Inc., in the first 
  3.5   quarter of 2000. 
  3.6      (b) The inflation adjustment in paragraph (a) is dependent 
  3.7   on a legislative appropriation of the amount specified in the 
  3.8   budget forecast as required to pay the adjustment.  The 
  3.9   commissioner of finance, for information purposes, may include 
  3.10  in the biennial budget document information on the cost of this 
  3.11  rate adjustment. 
  3.12     (b) (c) Effective October 1, 2000, the operating payment 
  3.13  rate shall be adjusted to reflect an occupancy rate equal to 100 
  3.14  percent of the facility's capacity days as of September 30, 2000.
  3.15     Sec. 3.  Minnesota Statutes 2000, section 256B.765, is 
  3.16  amended to read: 
  3.17     256B.765 [PROVIDER RATE INCREASES.] 
  3.18     (a) Effective July 1, 2001 2003, within the limits of 
  3.19  appropriations specifically for this purpose, the commissioner 
  3.20  shall provide an annual inflation adjustment for the providers 
  3.21  listed in paragraph (c).  The index for the inflation adjustment 
  3.22  must be based on the change in the Employment Cost Index for 
  3.23  Private Industry Workers - Total Compensation forecasted by Data 
  3.24  Resources, Inc., as forecasted in the fourth quarter of the 
  3.25  calendar year preceding the fiscal year.  The commissioner shall 
  3.26  increase reimbursement or allocation rates by the percentage of 
  3.27  this adjustment, and county boards shall adjust provider 
  3.28  contracts as needed. 
  3.29     (b) The commissioner of finance shall include an annual 
  3.30  inflationary adjustment in reimbursement rates for the providers 
  3.31  listed in paragraph (c) using the inflation factor specified in 
  3.32  paragraph (a) as a budget change request in each biennial 
  3.33  detailed expenditure budget submitted to the legislature under 
  3.34  section 16A.11.  The inflation adjustment in paragraph (a) is 
  3.35  dependent on a legislative appropriation of the amount specified 
  3.36  in the budget forecast as required to pay the adjustment.  The 
  4.1   commissioner of finance, for information purposes, may include 
  4.2   in the biennial budget document information on the cost of this 
  4.3   rate adjustment.  
  4.4      (c) The annual adjustment under paragraph (a) shall be 
  4.5   provided for to home and community-based waiver services for 
  4.6   persons with mental retardation or related conditions under 
  4.7   section 256B.501; home and community-based waiver services for 
  4.8   the elderly under section 256B.0915; waivered services under 
  4.9   community alternatives for disabled individuals under section 
  4.10  256B.49; community alternative care waivered services under 
  4.11  section 256B.49; traumatic brain injury waivered services under 
  4.12  section 256B.49; nursing services and home health services under 
  4.13  section 256B.0625, subdivision 6a; personal care services and 
  4.14  nursing supervision of personal care services under section 
  4.15  256B.0625, subdivision 19a; private duty nursing services under 
  4.16  section 256B.0625, subdivision 7; day training and habilitation 
  4.17  services for adults with mental retardation or related 
  4.18  conditions under sections 252.40 to 252.46; physical therapy 
  4.19  services under sections 256B.0625, subdivision 8, and 256D.03, 
  4.20  subdivision 4; occupational therapy services under sections 
  4.21  256B.0625, subdivision 8a, and 256D.03, subdivision 4; 
  4.22  speech-language therapy services under section 256D.03, 
  4.23  subdivision 4, and Minnesota Rules, part 9505.0390; respiratory 
  4.24  therapy services under section 256D.03, subdivision 4, and 
  4.25  Minnesota Rules, part 9505.0295; alternative care services under 
  4.26  section 256B.0913; adult residential program grants under 
  4.27  Minnesota Rules, parts 9535.2000 to 9535.3000; adult and family 
  4.28  community support grants under Minnesota Rules, parts 9535.1700 
  4.29  to 9535.1760; adult mental health integrated fund grants under 
  4.30  section 245.4661; semi-independent living services under section 
  4.31  252.275 including SILS funding under county social services 
  4.32  grants formerly funded under chapter 256I; and community support 
  4.33  services for deaf and hard-of-hearing adults with mental illness 
  4.34  who use or wish to use sign language as their primary means of 
  4.35  communication; and living skills training programs for persons 
  4.36  with intractable epilepsy who need assistance in the transition 
  5.1   to independent living.