1.1                          A bill for an act 
  1.2             relating to human services; providing an annual 
  1.3             adjustment in hospital payment rates; appropriating 
  1.4             money; amending Minnesota Statutes 2000, section 
  1.5             256.969, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 256.969, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [HOSPITAL COST INDEX.] (a) The hospital 
  1.10  cost index shall be the change in the Consumer Price Index-All 
  1.11  Items (United States city average) (CPI-U) forecasted by Data 
  1.12  Resources, Inc.  The commissioner shall use the indices as 
  1.13  forecasted in the third quarter of the calendar year prior to 
  1.14  the rate year.  The hospital cost index may shall be used to 
  1.15  adjust the base year operating payment rate through the rate 
  1.16  year on an annually compounded basis.  
  1.17     (b) For fiscal years beginning on or after July 1, 1993 
  1.18  2002, the commissioner of human services shall not provide 
  1.19  automatic annual inflation adjustments for hospital payment 
  1.20  rates under medical assistance, nor under and general assistance 
  1.21  medical care,. except that the inflation adjustments under 
  1.22  paragraph (a) for medical assistance, excluding general 
  1.23  assistance medical care, shall apply through calendar year 
  1.24  2001.  The index for calendar year 2000 shall be reduced 2.5 
  1.25  percentage points to recover overprojections of the index from 
  2.1   1994 to 1996.  The commissioner of finance shall include as a 
  2.2   budget change request in each biennial detailed expenditure 
  2.3   budget submitted to the legislature under section 16A.11 annual 
  2.4   adjustments in hospital payment rates under medical assistance 
  2.5   and general assistance medical care, based upon the hospital 
  2.6   cost index. 
  2.7      Sec. 2.  [APPROPRIATION.] 
  2.8      $....... is appropriated from the general fund to the 
  2.9   commissioner of human services for fiscal year 2003 for the 
  2.10  purposes of section 1.