1.1                          A bill for an act 
  1.2             relating to human services; making technical changes 
  1.3             in health care programs; amending Minnesota Statutes 
  1.4             2000, sections 13.05, subdivision 4; 245.4932, 
  1.5             subdivision 3; 253B.045, subdivision 2; 256.01, 
  1.6             subdivision 11; 256.023; 256.9685, subdivision 1; 
  1.7             256.9866; 256B.041, subdivision 5; 256B.0575; 
  1.8             256B.0625, subdivision 27; 256B.0629, subdivision 2; 
  1.9             256B.0915, subdivision 1c; 256B.0945, subdivision 4; 
  1.10            256B.19, subdivisions 1, 1d, 2b; 256B.37, subdivision 
  1.11            5a; 256B.692, subdivision 3; 256F.10, subdivision 9; 
  1.12            256F.13, subdivision 1; 256L.05, subdivision 3; 
  1.13            256L.07, subdivision 3; Minnesota Statutes 2001 
  1.14            Supplement, sections 245.474, subdivision 4; 
  1.15            256B.0623, subdivision 14; 256B.0625, subdivisions 13, 
  1.16            20; 256B.0915, subdivision 3; 256B.0924, subdivision 
  1.17            6; 256B.19, subdivision 1c; 256L.06, subdivision 3; 
  1.18            Laws 2001, First Special Session chapter 9, article 2, 
  1.19            section 76; repealing Minnesota Statutes 2000, 
  1.20            sections 256.025; 256B.0635, subdivision 3; 256B.19, 
  1.21            subdivision 1a; 256B.77, subdivision 24. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23     Section 1.  Minnesota Statutes 2000, section 13.05, 
  1.24  subdivision 4, is amended to read: 
  1.25     Subd. 4.  [LIMITATIONS ON COLLECTION AND USE OF DATA.] 
  1.26  Private or confidential data on an individual shall not be 
  1.27  collected, stored, used, or disseminated by political 
  1.28  subdivisions, statewide systems, or state agencies for any 
  1.29  purposes other than those stated to the individual at the time 
  1.30  of collection in accordance with section 13.04, except as 
  1.31  provided in this subdivision. 
  1.32     (a) Data collected prior to August 1, 1975, and which have 
  1.33  not been treated as public data, may be used, stored, and 
  2.1   disseminated for the purposes for which the data was originally 
  2.2   collected or for purposes which are specifically approved by the 
  2.3   commissioner as necessary to public health, safety, or welfare. 
  2.4      (b) Private or confidential data may be used and 
  2.5   disseminated to individuals or agencies specifically authorized 
  2.6   access to that data by state, local, or federal law enacted or 
  2.7   promulgated after the collection of the data. 
  2.8      (c) Private or confidential data may be used and 
  2.9   disseminated to individuals or agencies subsequent to the 
  2.10  collection of the data when the responsible authority 
  2.11  maintaining the data has requested approval for a new or 
  2.12  different use or dissemination of the data and that request has 
  2.13  been specifically approved by the commissioner as necessary to 
  2.14  carry out a function assigned by law. 
  2.15     (d) Private data may be used by and disseminated to any 
  2.16  person or agency if the individual subject or subjects of the 
  2.17  data have given their informed consent.  Whether a data subject 
  2.18  has given informed consent shall be determined by rules of the 
  2.19  commissioner.  The format for informed consent is as follows, 
  2.20  unless otherwise prescribed by the HIPAA, Standards for Privacy 
  2.21  of Individually Identifiable Health Information, 65 Fed. Reg. 
  2.22  82, 461 (2000) (to be codified as Code of Federal Regulations, 
  2.23  title 45, section 164):  informed consent shall not be deemed to 
  2.24  have been given by an individual subject of the data by the 
  2.25  signing of any statement authorizing any person or agency to 
  2.26  disclose information about the individual to an insurer or its 
  2.27  authorized representative, unless the statement is: 
  2.28     (1) in plain language; 
  2.29     (2) dated; 
  2.30     (3) specific in designating the particular persons or 
  2.31  agencies the data subject is authorizing to disclose information 
  2.32  about the data subject; 
  2.33     (4) specific as to the nature of the information the 
  2.34  subject is authorizing to be disclosed; 
  2.35     (5) specific as to the persons or agencies to whom the 
  2.36  subject is authorizing information to be disclosed; 
  3.1      (6) specific as to the purpose or purposes for which the 
  3.2   information may be used by any of the parties named in clause 
  3.3   (5), both at the time of the disclosure and at any time in the 
  3.4   future; 
  3.5      (7) specific as to its expiration date which should be 
  3.6   within a reasonable period of time, not to exceed one year 
  3.7   except in the case of authorizations given in connection with 
  3.8   applications for life insurance or noncancelable or guaranteed 
  3.9   renewable health insurance and identified as such, two years 
  3.10  after the date of the policy. 
  3.11     The responsible authority may require a person requesting 
  3.12  copies of data under this paragraph to pay the actual costs of 
  3.13  making, certifying, and compiling the copies. 
  3.14     (e) Private or confidential data on an individual may be 
  3.15  discussed at a meeting open to the public to the extent provided 
  3.16  in section 13D.05. 
  3.17     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  3.18  245.474, subdivision 4, is amended to read: 
  3.19     Subd. 4.  [STAFF SAFETY TRAINING.] The commissioner 
  3.20  shall by rule require all staff in mental health and support 
  3.21  units at regional treatment centers who have contact with 
  3.22  persons with mental illness or severe emotional disturbance to 
  3.23  be appropriately trained in violence reduction and violence 
  3.24  prevention and shall establish criteria for such training.  
  3.25  Training programs shall be developed with input from consumer 
  3.26  advocacy organizations and shall employ violence prevention 
  3.27  techniques as preferable to physical interaction. 
  3.28     Sec. 3.  Minnesota Statutes 2000, section 245.4932, 
  3.29  subdivision 3, is amended to read: 
  3.30     Subd. 3.  [PAYMENTS.] Notwithstanding section 256.025, 
  3.31  subdivision 2, Payments under sections 245.493 to 245.496 to 
  3.32  providers for services for which the collaborative elects to pay 
  3.33  the nonfederal share of medical assistance shall only be made of 
  3.34  federal earnings from services provided under sections 245.493 
  3.35  to 245.496. 
  3.36     Sec. 4.  Minnesota Statutes 2000, section 253B.045, 
  4.1   subdivision 2, is amended to read: 
  4.2      Subd. 2.  [FACILITIES.] Each county or a group of counties 
  4.3   shall maintain or provide by contract a facility for confinement 
  4.4   of persons held temporarily for observation, evaluation, 
  4.5   diagnosis, treatment, and care.  When the temporary confinement 
  4.6   is provided at a regional center, the commissioner shall charge 
  4.7   the county of financial responsibility for the costs of 
  4.8   confinement of persons hospitalized under section 253B.05, 
  4.9   subdivisions 1 and 2, and section 253B.07, subdivision 2b, 
  4.10  except that the commissioner shall bill the responsible prepaid 
  4.11  plan for medically necessary hospitalizations for individuals 
  4.12  enrolled in a prepaid plan under contract to provide medical 
  4.13  assistance, general assistance medical care, or MinnesotaCare 
  4.14  services.  If the prepaid plan determines under the terms of the 
  4.15  medical assistance, general assistance medical care, or 
  4.16  MinnesotaCare contract that a hospitalization was not medically 
  4.17  necessary health plan first.  If the person has health plan 
  4.18  coverage, but the hospitalization does not meet the criteria in 
  4.19  subdivision 6 or section 62M.07, 62Q.53, or 62Q.535, the county 
  4.20  is responsible.  "County of financial responsibility" means the 
  4.21  county in which the person resides at the time of confinement 
  4.22  or, if the person has no residence in this state, the county 
  4.23  which initiated the confinement.  The charge shall be based on 
  4.24  the commissioner's determination of the cost of care pursuant to 
  4.25  section 246.50, subdivision 5.  When there is a dispute as to 
  4.26  which county is the county of financial responsibility, the 
  4.27  county charged for the costs of confinement shall pay for them 
  4.28  pending final determination of the dispute over financial 
  4.29  responsibility.  Disputes about the county of financial 
  4.30  responsibility shall be submitted to the commissioner to be 
  4.31  settled in the manner prescribed in section 256G.09. 
  4.32     Sec. 5.  Minnesota Statutes 2000, section 256.01, 
  4.33  subdivision 11, is amended to read: 
  4.34     Subd. 11.  [CENTRALIZED DISBURSEMENT SYSTEM.] The state 
  4.35  agency may establish a system for the centralized disbursement 
  4.36  of food coupons, assistance payments, and related documents.  
  5.1   Benefits shall be issued by the state or county and funded under 
  5.2   this section according to section 256.025, subdivision 3, and 
  5.3   subject to section 256.017.  
  5.4      Sec. 6.  Minnesota Statutes 2000, section 256.023, is 
  5.5   amended to read: 
  5.6      256.023 [ONE HUNDRED PERCENT COUNTY ASSISTANCE.] 
  5.7      The commissioner of human services may maintain client 
  5.8   records and issue public assistance benefits that are over state 
  5.9   and federal standards or that are not required by state or 
  5.10  federal law, providing the cost of benefits is paid by the 
  5.11  counties to the department of human services.  Payment methods 
  5.12  for this section shall be according to section 256.025, 
  5.13  subdivision 3. 
  5.14     Sec. 7.  Minnesota Statutes 2000, section 256.9685, 
  5.15  subdivision 1, is amended to read: 
  5.16     Subdivision 1.  [AUTHORITY.] (a) The commissioner shall 
  5.17  establish procedures for determining medical assistance and 
  5.18  general assistance medical care payment rates under a 
  5.19  prospective payment system for inpatient hospital services in 
  5.20  hospitals that qualify as vendors of medical assistance.  The 
  5.21  commissioner shall establish, by rule, procedures for 
  5.22  implementing this section and sections 256.9686, 256.969, and 
  5.23  256.9695.  Services must meet the requirements of section 
  5.24  256B.04, subdivision 15, or 256D.03, subdivision 7, paragraph 
  5.25  (b), to be eligible for payment. 
  5.26     (b) The commissioner may reduce the types of inpatient 
  5.27  hospital admissions that are required to be certified as 
  5.28  medically necessary after notice in the State Register and a 
  5.29  30-day comment period. 
  5.30     Sec. 8.  Minnesota Statutes 2000, section 256.9866, is 
  5.31  amended to read: 
  5.32     256.9866 [COMMUNITY SERVICE AS A COUNTY OBLIGATION.] 
  5.33     Community service shall be an acceptable sentencing option 
  5.34  but shall not reduce the state or federal share of any amount to 
  5.35  be repaid or any subsequent recovery.  Any reduction or offset 
  5.36  of any such amount ordered by a court shall be treated as 
  6.1   follows: 
  6.2      (1) any reduction in an overpayment amount, to include the 
  6.3   amount ordered as restitution, shall not reduce the underlying 
  6.4   amount established as an overpayment by the state or county 
  6.5   agency; 
  6.6      (2) total overpayments shall continue as a debt owed and 
  6.7   may be recovered by any civil or administrative means otherwise 
  6.8   available to the state or county agency; and 
  6.9      (3) any amount ordered to be offset against any overpayment 
  6.10  shall be deducted from the county share only of any recovery and 
  6.11  shall be based on the prevailing state minimum wage.  To the 
  6.12  extent that any deduction is in fact made against any state or 
  6.13  county share, it shall be reimbursed from the county share of 
  6.14  payments to be made under section 256.025. 
  6.15     Sec. 9.  Minnesota Statutes 2000, section 256B.041, 
  6.16  subdivision 5, is amended to read: 
  6.17     Subd. 5.  [PAYMENT BY COUNTY TO STATE TREASURER.] If 
  6.18  required by federal law or rules promulgated thereunder, or by 
  6.19  authorized rule of the state agency, each county shall pay to 
  6.20  the state treasurer the portion of medical assistance paid by 
  6.21  the state for which it is responsible.  The county's share of 
  6.22  cost shall be ten percent of that portion not met by federal 
  6.23  funds. 
  6.24     The county shall advance ten percent of that portion of 
  6.25  medical assistance costs not met by federal funds, based upon 
  6.26  estimates submitted by the state agency to the county agency, 
  6.27  stating the estimated expenditures for the succeeding month.  
  6.28  Upon the direction of the county agency, payment shall be made 
  6.29  monthly by the county to the state for the estimated 
  6.30  expenditures for each month.  Adjustment of any overestimate or 
  6.31  underestimate based on actual expenditures shall be made by the 
  6.32  state agency by adjusting the estimate for any succeeding month. 
  6.33     Beginning July 1, 1991, the state will reimburse counties 
  6.34  according to the payment schedule in section 256.025 for the 
  6.35  county share of local agency expenditures under this subdivision 
  6.36  from January 1, 1991, on.  Payment to counties under this 
  7.1   subdivision is subject to the provisions of section 256.017. 
  7.2      Sec. 10.  Minnesota Statutes 2000, section 256B.0575, is 
  7.3   amended to read: 
  7.4      256B.0575 [AVAILABILITY OF INCOME FOR INSTITUTIONALIZED 
  7.5   PERSONS.] 
  7.6      When an institutionalized person is determined eligible for 
  7.7   medical assistance, the income that exceeds the deductions in 
  7.8   paragraphs (a) and (b) must be applied to the cost of 
  7.9   institutional care.  
  7.10     (a) The following amounts must be deducted from the 
  7.11  institutionalized person's income in the following order: 
  7.12     (1) the personal needs allowance under section 256B.35 or, 
  7.13  for a veteran who does not have a spouse or child, or a 
  7.14  surviving spouse of a veteran having no child, the amount of an 
  7.15  improved pension received from the veteran's administration not 
  7.16  exceeding $90 per month; 
  7.17     (2) the personal allowance for disabled individuals under 
  7.18  section 256B.36; 
  7.19     (3) if the institutionalized person has a legally appointed 
  7.20  guardian or conservator, five percent of the recipient's gross 
  7.21  monthly income up to $100 as reimbursement for guardianship or 
  7.22  conservatorship services; 
  7.23     (4) a monthly income allowance determined under section 
  7.24  256B.058, subdivision 2, but only to the extent income of the 
  7.25  institutionalized spouse is made available to the community 
  7.26  spouse; 
  7.27     (5) a monthly allowance for children under age 18 which, 
  7.28  together with the net income of the children, would provide 
  7.29  income equal to the medical assistance standard for families and 
  7.30  children according to section 256B.056, subdivision 4, for a 
  7.31  family size that includes only the minor children.  This 
  7.32  deduction applies only if the children do not live with the 
  7.33  community spouse and only to the extent that the deduction is 
  7.34  not included in the personal needs allowance under section 
  7.35  256B.35, subdivision 1, as child support garnished under a court 
  7.36  order; 
  8.1      (6) a monthly family allowance for other family members, 
  8.2   equal to one-third of the difference between 122 percent of the 
  8.3   federal poverty guidelines and the monthly income for that 
  8.4   family member; 
  8.5      (7) reparations payments made by the Federal Republic of 
  8.6   Germany and reparations payments made by the Netherlands for 
  8.7   victims of Nazi persecution between 1940 and 1945; 
  8.8      (8) all other exclusions from income for institutionalized 
  8.9   persons as mandated by federal law; and 
  8.10     (9) amounts for reasonable expenses incurred for necessary 
  8.11  medical or remedial care for the institutionalized spouse person 
  8.12  that are not medical assistance covered expenses and that are 
  8.13  not subject to payment by a third party.  
  8.14     For purposes of clause (6), "other family member" means a 
  8.15  person who resides with the community spouse and who is a minor 
  8.16  or dependent child, dependent parent, or dependent sibling of 
  8.17  either spouse.  "Dependent" means a person who could be claimed 
  8.18  as a dependent for federal income tax purposes under the 
  8.19  Internal Revenue Code. 
  8.20     (b) Income shall be allocated to an institutionalized 
  8.21  person for a period of up to three calendar months, in an amount 
  8.22  equal to the medical assistance standard for a family size of 
  8.23  one if:  
  8.24     (1) a physician certifies that the person is expected to 
  8.25  reside in the long-term care facility for three calendar months 
  8.26  or less; 
  8.27     (2) if the person has expenses of maintaining a residence 
  8.28  in the community; and 
  8.29     (3) if one of the following circumstances apply:  
  8.30     (i) the person was not living together with a spouse or a 
  8.31  family member as defined in paragraph (a) when the person 
  8.32  entered a long-term care facility; or 
  8.33     (ii) the person and the person's spouse become 
  8.34  institutionalized on the same date, in which case the allocation 
  8.35  shall be applied to the income of one of the spouses.  
  8.36  For purposes of this paragraph, a person is determined to be 
  9.1   residing in a licensed nursing home, regional treatment center, 
  9.2   or medical institution if the person is expected to remain for a 
  9.3   period of one full calendar month or more. 
  9.4      Sec. 11.  Minnesota Statutes 2001 Supplement, section 
  9.5   256B.0623, subdivision 14, is amended to read: 
  9.6      Subd. 14.  [BILLING WHEN SERVICES ARE PROVIDED BY QUALIFIED 
  9.7   STATE STAFF.] When rehabilitative services are provided by 
  9.8   qualified state staff who are assigned to pilot projects under 
  9.9   section 245.4661, the county or other local entity to which the 
  9.10  qualified state staff are assigned may consider these staff part 
  9.11  of the local provider entity for which certification is sought 
  9.12  under this section and may bill the medical assistance program 
  9.13  for qualifying services provided by the qualified state 
  9.14  staff.  Notwithstanding section 256.025, subdivision 2, Payments 
  9.15  for services provided by state staff who are assigned to adult 
  9.16  mental health initiatives shall only be made from federal funds. 
  9.17     Sec. 12.  Minnesota Statutes 2001 Supplement, section 
  9.18  256B.0625, subdivision 13, is amended to read: 
  9.19     Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs, 
  9.20  except for fertility drugs when specifically used to enhance 
  9.21  fertility, if prescribed by a licensed practitioner and 
  9.22  dispensed by a licensed pharmacist, by a physician enrolled in 
  9.23  the medical assistance program as a dispensing physician, or by 
  9.24  a physician or a nurse practitioner employed by or under 
  9.25  contract with a community health board as defined in section 
  9.26  145A.02, subdivision 5, for the purposes of communicable disease 
  9.27  control.  The commissioner, after receiving recommendations from 
  9.28  professional medical associations and professional pharmacist 
  9.29  associations, shall designate a formulary committee to advise 
  9.30  the commissioner on the names of drugs for which payment is 
  9.31  made, recommend a system for reimbursing providers on a set fee 
  9.32  or charge basis rather than the present system, and develop 
  9.33  methods encouraging use of generic drugs when they are less 
  9.34  expensive and equally effective as trademark drugs.  The 
  9.35  formulary committee shall consist of nine members, four of whom 
  9.36  shall be physicians who are not employed by the department of 
 10.1   human services, and a majority of whose practice is for persons 
 10.2   paying privately or through health insurance, three of whom 
 10.3   shall be pharmacists who are not employed by the department of 
 10.4   human services, and a majority of whose practice is for persons 
 10.5   paying privately or through health insurance, a consumer 
 10.6   representative, and a nursing home representative.  Committee 
 10.7   members shall serve three-year terms and shall serve without 
 10.8   compensation.  Members may be reappointed once.  
 10.9      (b) The commissioner shall establish a drug formulary.  Its 
 10.10  establishment and publication shall not be subject to the 
 10.11  requirements of the Administrative Procedure Act, but the 
 10.12  formulary committee shall review and comment on the formulary 
 10.13  contents.  The formulary committee shall review and recommend 
 10.14  drugs which require prior authorization.  The formulary 
 10.15  committee may recommend drugs for prior authorization directly 
 10.16  to the commissioner, as long as opportunity for public input is 
 10.17  provided.  Prior authorization may be requested by the 
 10.18  commissioner based on medical and clinical criteria before 
 10.19  certain drugs are eligible for payment.  Before a drug may be 
 10.20  considered for prior authorization at the request of the 
 10.21  commissioner:  
 10.22     (1) the drug formulary committee must develop criteria to 
 10.23  be used for identifying drugs; the development of these criteria 
 10.24  is not subject to the requirements of chapter 14, but the 
 10.25  formulary committee shall provide opportunity for public input 
 10.26  in developing criteria; 
 10.27     (2) the drug formulary committee must hold a public forum 
 10.28  and receive public comment for an additional 15 days; and 
 10.29     (3) the commissioner must provide information to the 
 10.30  formulary committee on the impact that placing the drug on prior 
 10.31  authorization will have on the quality of patient care and 
 10.32  information regarding whether the drug is subject to clinical 
 10.33  abuse or misuse.  Prior authorization may be required by the 
 10.34  commissioner before certain formulary drugs are eligible for 
 10.35  payment.  The formulary shall not include:  
 10.36     (i) drugs or products for which there is no federal 
 11.1   funding; 
 11.2      (ii) over-the-counter drugs, except for antacids, 
 11.3   acetaminophen, family planning products, aspirin, insulin, 
 11.4   products for the treatment of lice, vitamins for adults with 
 11.5   documented vitamin deficiencies, vitamins for children under the 
 11.6   age of seven and pregnant or nursing women, and any other 
 11.7   over-the-counter drug identified by the commissioner, in 
 11.8   consultation with the drug formulary committee, as necessary, 
 11.9   appropriate, and cost-effective for the treatment of certain 
 11.10  specified chronic diseases, conditions or disorders, and this 
 11.11  determination shall not be subject to the requirements of 
 11.12  chapter 14; 
 11.13     (iii) anorectics, except that medically necessary 
 11.14  anorectics shall be covered for a recipient previously diagnosed 
 11.15  as having pickwickian syndrome and currently diagnosed as having 
 11.16  diabetes and being morbidly obese; 
 11.17     (iv) drugs for which medical value has not been 
 11.18  established; and 
 11.19     (v) drugs from manufacturers who have not signed a rebate 
 11.20  agreement with the Department of Health and Human Services 
 11.21  pursuant to section 1927 of title XIX of the Social Security Act.
 11.22     The commissioner shall publish conditions for prohibiting 
 11.23  payment for specific drugs after considering the formulary 
 11.24  committee's recommendations.  An honorarium of $100 per meeting 
 11.25  and reimbursement for mileage shall be paid to each committee 
 11.26  member in attendance.  
 11.27     (c) The basis for determining the amount of payment shall 
 11.28  be the lower of the actual acquisition costs of the drugs plus a 
 11.29  fixed dispensing fee; the maximum allowable cost set by the 
 11.30  federal government or by the commissioner plus the fixed 
 11.31  dispensing fee; or the usual and customary price charged to the 
 11.32  public.  The amount of payment basis must be reduced to reflect 
 11.33  all discount amounts applied to the charge by any 
 11.34  provider/insurer agreement or contract for submitted charges to 
 11.35  medical assistance programs.  The net submitted charge may not 
 11.36  be greater than the patient liability for the service.  The 
 12.1   pharmacy dispensing fee shall be $3.65, except that the 
 12.2   dispensing fee for intravenous solutions which must be 
 12.3   compounded by the pharmacist shall be $8 per bag, $14 per bag 
 12.4   for cancer chemotherapy products, and $30 per bag for total 
 12.5   parenteral nutritional products dispensed in one liter 
 12.6   quantities, or $44 per bag for total parenteral nutritional 
 12.7   products dispensed in quantities greater than one liter.  Actual 
 12.8   acquisition cost includes quantity and other special discounts 
 12.9   except time and cash discounts.  The actual acquisition cost of 
 12.10  a drug shall be estimated by the commissioner, at average 
 12.11  wholesale price minus nine percent, except that where a drug has 
 12.12  had its wholesale price reduced as a result of the actions of 
 12.13  the National Association of Medicaid Fraud Control Units, the 
 12.14  estimated actual acquisition cost shall be the reduced average 
 12.15  wholesale price, without the nine percent deduction.  The 
 12.16  maximum allowable cost of a multisource drug may be set by the 
 12.17  commissioner and it shall be comparable to, but no higher than, 
 12.18  the maximum amount paid by other third-party payors in this 
 12.19  state who have maximum allowable cost programs.  The 
 12.20  commissioner shall set maximum allowable costs for multisource 
 12.21  drugs that are not on the federal upper limit list as described 
 12.22  in United States Code, title 42, chapter 7, section 1396r-8(e), 
 12.23  the Social Security Act, and Code of Federal Regulations, title 
 12.24  42, part 447, section 447.332.  Establishment of the amount of 
 12.25  payment for drugs shall not be subject to the requirements of 
 12.26  the Administrative Procedure Act.  An additional dispensing fee 
 12.27  of $.30 may be added to the dispensing fee paid to pharmacists 
 12.28  for legend drug prescriptions dispensed to residents of 
 12.29  long-term care facilities when a unit dose blister card system, 
 12.30  approved by the department, is used.  Under this type of 
 12.31  dispensing system, the pharmacist must dispense a 30-day supply 
 12.32  of drug.  The National Drug Code (NDC) from the drug container 
 12.33  used to fill the blister card must be identified on the claim to 
 12.34  the department.  The unit dose blister card containing the drug 
 12.35  must meet the packaging standards set forth in Minnesota Rules, 
 12.36  part 6800.2700, that govern the return of unused drugs to the 
 13.1   pharmacy for reuse.  The pharmacy provider will be required to 
 13.2   credit the department for the actual acquisition cost of all 
 13.3   unused drugs that are eligible for reuse.  Over-the-counter 
 13.4   medications must be dispensed in the manufacturer's unopened 
 13.5   package.  The commissioner may permit the drug clozapine to be 
 13.6   dispensed in a quantity that is less than a 30-day supply.  
 13.7   Whenever a generically equivalent product is available, payment 
 13.8   shall be on the basis of the actual acquisition cost of the 
 13.9   generic drug, unless the prescriber specifically indicates 
 13.10  "dispense as written - brand necessary" on the prescription as 
 13.11  required by section 151.21, subdivision 2. 
 13.12     (d) For purposes of this subdivision, "multisource drugs" 
 13.13  means covered outpatient drugs, excluding innovator multisource 
 13.14  drugs for which there are two or more drug products, which: 
 13.15     (1) are related as therapeutically equivalent under the 
 13.16  Food and Drug Administration's most recent publication of 
 13.17  "Approved Drug Products with Therapeutic Equivalence 
 13.18  Evaluations"; 
 13.19     (2) are pharmaceutically equivalent and bioequivalent as 
 13.20  determined by the Food and Drug Administration; and 
 13.21     (3) are sold or marketed in Minnesota. 
 13.22  "Innovator multisource drug" means a multisource drug that was 
 13.23  originally marketed under an original new drug application 
 13.24  approved by the Food and Drug Administration. 
 13.25     (e) The basis for determining the amount of payment for 
 13.26  drugs administered in an outpatient setting shall be the lower 
 13.27  of the usual and customary cost submitted by the provider; the 
 13.28  average wholesale price minus five percent; or the maximum 
 13.29  allowable cost set by the federal government under United States 
 13.30  Code, title 42, chapter 7, section 1396r-8(e), and Code of 
 13.31  Federal Regulations, title 42, section 447.332, or by the 
 13.32  commissioner under paragraph (c). 
 13.33     Sec. 13.  Minnesota Statutes 2001 Supplement, section 
 13.34  256B.0625, subdivision 20, is amended to read: 
 13.35     Subd. 20.  [MENTAL HEALTH CASE MANAGEMENT.] (a) To the 
 13.36  extent authorized by rule of the state agency, medical 
 14.1   assistance covers case management services to persons with 
 14.2   serious and persistent mental illness and children with severe 
 14.3   emotional disturbance.  Services provided under this section 
 14.4   must meet the relevant standards in sections 245.461 to 
 14.5   245.4888, the Comprehensive Adult and Children's Mental Health 
 14.6   Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 
 14.7   9505.0322, excluding subpart 10. 
 14.8      (b) Entities meeting program standards set out in rules 
 14.9   governing family community support services as defined in 
 14.10  section 245.4871, subdivision 17, are eligible for medical 
 14.11  assistance reimbursement for case management services for 
 14.12  children with severe emotional disturbance when these services 
 14.13  meet the program standards in Minnesota Rules, parts 9520.0900 
 14.14  to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
 14.15     (c) Medical assistance and MinnesotaCare payment for mental 
 14.16  health case management shall be made on a monthly basis.  In 
 14.17  order to receive payment for an eligible child, the provider 
 14.18  must document at least a face-to-face contact with the child, 
 14.19  the child's parents, or the child's legal representative.  To 
 14.20  receive payment for an eligible adult, the provider must 
 14.21  document: 
 14.22     (1) at least a face-to-face contact with the adult or the 
 14.23  adult's legal representative; or 
 14.24     (2) at least a telephone contact with the adult or the 
 14.25  adult's legal representative and document a face-to-face contact 
 14.26  with the adult or the adult's legal representative within the 
 14.27  preceding two months. 
 14.28     (d) Payment for mental health case management provided by 
 14.29  county or state staff shall be based on the monthly rate 
 14.30  methodology under section 256B.094, subdivision 6, paragraph 
 14.31  (b), with separate rates calculated for child welfare and mental 
 14.32  health, and within mental health, separate rates for children 
 14.33  and adults. 
 14.34     (e) Payment for mental health case management provided by 
 14.35  Indian health services or by agencies operated by Indian tribes 
 14.36  may be made according to this section or other relevant 
 15.1   federally approved rate setting methodology. 
 15.2      (f) Payment for mental health case management provided by 
 15.3   vendors who contract with a county or Indian tribe shall be 
 15.4   based on a monthly rate negotiated by the host county or tribe.  
 15.5   The negotiated rate must not exceed the rate charged by the 
 15.6   vendor for the same service to other payers.  If the service is 
 15.7   provided by a team of contracted vendors, the county or tribe 
 15.8   may negotiate a team rate with a vendor who is a member of the 
 15.9   team.  The team shall determine how to distribute the rate among 
 15.10  its members.  No reimbursement received by contracted vendors 
 15.11  shall be returned to the county or tribe, except to reimburse 
 15.12  the county or tribe for advance funding provided by the county 
 15.13  or tribe to the vendor. 
 15.14     (g) If the service is provided by a team which includes 
 15.15  contracted vendors, tribal staff, and county or state staff, the 
 15.16  costs for county or state staff participation in the team shall 
 15.17  be included in the rate for county-provided services.  In this 
 15.18  case, the contracted vendor, the tribal agency, and the county 
 15.19  may each receive separate payment for services provided by each 
 15.20  entity in the same month.  In order to prevent duplication of 
 15.21  services, each entity must document, in the recipient's file, 
 15.22  the need for team case management and a description of the roles 
 15.23  of the team members. 
 15.24     (h) The commissioner shall calculate the nonfederal share 
 15.25  of actual medical assistance and general assistance medical care 
 15.26  payments for each county, based on the higher of calendar year 
 15.27  1995 or 1996, by service date, project that amount forward to 
 15.28  1999, and transfer one-half of the result from medical 
 15.29  assistance and general assistance medical care to each county's 
 15.30  mental health grants under sections 245.4886 and 256E.12 for 
 15.31  calendar year 1999.  The annualized minimum amount added to each 
 15.32  county's mental health grant shall be $3,000 per year for 
 15.33  children and $5,000 per year for adults.  The commissioner may 
 15.34  reduce the statewide growth factor in order to fund these 
 15.35  minimums.  The annualized total amount transferred shall become 
 15.36  part of the base for future mental health grants for each county.
 16.1      (i) Any net increase in revenue to the county or tribe as a 
 16.2   result of the change in this section must be used to provide 
 16.3   expanded mental health services as defined in sections 245.461 
 16.4   to 245.4888, the Comprehensive Adult and Children's Mental 
 16.5   Health Acts, excluding inpatient and residential treatment.  For 
 16.6   adults, increased revenue may also be used for services and 
 16.7   consumer supports which are part of adult mental health projects 
 16.8   approved under Laws 1997, chapter 203, article 7, section 25.  
 16.9   For children, increased revenue may also be used for respite 
 16.10  care and nonresidential individualized rehabilitation services 
 16.11  as defined in section 245.492, subdivisions 17 and 23.  
 16.12  "Increased revenue" has the meaning given in Minnesota Rules, 
 16.13  part 9520.0903, subpart 3.  
 16.14     (j) Notwithstanding section 256B.19, subdivision 1, the 
 16.15  nonfederal share of costs for mental health case management 
 16.16  shall be provided by the recipient's county of responsibility, 
 16.17  as defined in sections 256G.01 to 256G.12, from sources other 
 16.18  than federal funds or funds used to match other federal funds.  
 16.19  If the service is provided by a tribal agency, the nonfederal 
 16.20  share, if any, shall be provided by the recipient's tribe.  
 16.21     (k) The commissioner may suspend, reduce, or terminate the 
 16.22  reimbursement to a provider that does not meet the reporting or 
 16.23  other requirements of this section.  The county of 
 16.24  responsibility, as defined in sections 256G.01 to 256G.12, or, 
 16.25  if applicable, the tribal agency, is responsible for any federal 
 16.26  disallowances.  The county or tribe may share this 
 16.27  responsibility with its contracted vendors.  
 16.28     (l) The commissioner shall set aside a portion of the 
 16.29  federal funds earned under this section to repay the special 
 16.30  revenue maximization account under section 256.01, subdivision 
 16.31  2, clause (15).  The repayment is limited to: 
 16.32     (1) the costs of developing and implementing this section; 
 16.33  and 
 16.34     (2) programming the information systems. 
 16.35     (m) Notwithstanding section 256.025, subdivision 2, 
 16.36  Payments to counties and tribal agencies for case management 
 17.1   expenditures under this section shall only be made from federal 
 17.2   earnings from services provided under this section.  Payments to 
 17.3   county-contracted vendors shall include both the federal 
 17.4   earnings and the county share. 
 17.5      (n) Notwithstanding section 256B.041, county payments for 
 17.6   the cost of mental health case management services provided by 
 17.7   county or state staff shall not be made to the state treasurer.  
 17.8   For the purposes of mental health case management services 
 17.9   provided by county or state staff under this section, the 
 17.10  centralized disbursement of payments to counties under section 
 17.11  256B.041 consists only of federal earnings from services 
 17.12  provided under this section. 
 17.13     (o) Case management services under this subdivision do not 
 17.14  include therapy, treatment, legal, or outreach services. 
 17.15     (p) If the recipient is a resident of a nursing facility, 
 17.16  intermediate care facility, or hospital, and the recipient's 
 17.17  institutional care is paid by medical assistance, payment for 
 17.18  case management services under this subdivision is limited to 
 17.19  the last 180 days of the recipient's residency in that facility 
 17.20  and may not exceed more than six months in a calendar year. 
 17.21     (q) Payment for case management services under this 
 17.22  subdivision shall not duplicate payments made under other 
 17.23  program authorities for the same purpose. 
 17.24     (r) By July 1, 2000, the commissioner shall evaluate the 
 17.25  effectiveness of the changes required by this section, including 
 17.26  changes in number of persons receiving mental health case 
 17.27  management, changes in hours of service per person, and changes 
 17.28  in caseload size. 
 17.29     (s) For each calendar year beginning with the calendar year 
 17.30  2001, the annualized amount of state funds for each county 
 17.31  determined under paragraph (h) shall be adjusted by the county's 
 17.32  percentage change in the average number of clients per month who 
 17.33  received case management under this section during the fiscal 
 17.34  year that ended six months prior to the calendar year in 
 17.35  question, in comparison to the prior fiscal year. 
 17.36     (t) For counties receiving the minimum allocation of $3,000 
 18.1   or $5,000 described in paragraph (h), the adjustment in 
 18.2   paragraph (s) shall be determined so that the county receives 
 18.3   the higher of the following amounts: 
 18.4      (1) a continuation of the minimum allocation in paragraph 
 18.5   (h); or 
 18.6      (2) an amount based on that county's average number of 
 18.7   clients per month who received case management under this 
 18.8   section during the fiscal year that ended six months prior to 
 18.9   the calendar year in question, times the average statewide grant 
 18.10  per person per month for counties not receiving the minimum 
 18.11  allocation. 
 18.12     (u) The adjustments in paragraphs (s) and (t) shall be 
 18.13  calculated separately for children and adults. 
 18.14     Sec. 14.  Minnesota Statutes 2000, section 256B.0625, 
 18.15  subdivision 27, is amended to read: 
 18.16     Subd. 27.  [ORGAN AND TISSUE TRANSPLANTS.] Medical 
 18.17  assistance coverage for organ and tissue transplant procedures 
 18.18  is limited to those procedures covered by the Medicare program; 
 18.19  heart-lung transplants for persons with primary pulmonary 
 18.20  hypertension and or approved by the Advisory Committee on Organ 
 18.21  and Tissue Transplants.  All organ transplants must be performed 
 18.22  at Minnesota transplant centers meeting united network for organ 
 18.23  sharing criteria to perform heart-lung transplants; lung 
 18.24  transplants using cadaveric donors and performed at Minnesota 
 18.25  transplant centers meeting united network for organ sharing 
 18.26  criteria to perform lung transplants; pancreas transplants for 
 18.27  uremic diabetic recipients of kidney transplants and performed 
 18.28  at Minnesota facilities meeting united network for organ sharing 
 18.29  criteria to perform pancreas transplants; and allogenic bone 
 18.30  marrow transplants for persons with stage III or IV Hodgkin's 
 18.31  disease or at Medicare-approved organ transplant centers.  Stem 
 18.32  cell or bone marrow transplant centers must meet the standards 
 18.33  established by the Foundation for the Accreditation of 
 18.34  Hematopoietic Cell Therapy or be approved by the Advisory 
 18.35  Committee on Organ and Tissue Transplants.  Transplant 
 18.36  procedures must comply with all applicable laws, rules, and 
 19.1   regulations governing (1) coverage by the Medicare program, (2) 
 19.2   federal financial participation by the Medicaid program, and (3) 
 19.3   coverage by the Minnesota medical assistance 
 19.4   program.  Transplant centers must meet american society of 
 19.5   hematology and clinical oncology criteria for bone marrow 
 19.6   transplants and be located in Minnesota to receive reimbursement 
 19.7   for bone marrow Transplants performed out of Minnesota or the 
 19.8   local trade area must be prior authorized. 
 19.9      Sec. 15.  Minnesota Statutes 2000, section 256B.0629, 
 19.10  subdivision 2, is amended to read: 
 19.11     Subd. 2.  [FUNCTION AND OBJECTIVES.] The advisory committee 
 19.12  shall meet at least twice a year.  The committee's activities 
 19.13  include, but are not limited to: 
 19.14     (1) collection of information on the efficacy and 
 19.15  experience of various forms of transplantation not approved by 
 19.16  Medicare; 
 19.17     (2) collection of information from Minnesota transplant 
 19.18  providers on available services, success rates, and the current 
 19.19  status of transplant activity in the state; 
 19.20     (3) development of guidelines for determining when and 
 19.21  under what conditions organ and tissue transplants not approved 
 19.22  by Medicare should be eligible for reimbursement by medical 
 19.23  assistance and general assistance medical care; 
 19.24     (4) providing recommendations, at least annually, to the 
 19.25  commissioner on:  (i) organ and tissue transplant procedures, 
 19.26  beyond those approved by Medicare, that should also be eligible 
 19.27  for reimbursement under medical assistance and general 
 19.28  assistance medical care; and (ii) which transplant centers 
 19.29  should be eligible for reimbursement from medical assistance and 
 19.30  general assistance medical care. 
 19.31     Sec. 16.  Minnesota Statutes 2000, section 256B.0915, 
 19.32  subdivision 1c, is amended to read: 
 19.33     Subd. 1c.  [CASE MANAGEMENT ACTIVITIES UNDER THE STATE 
 19.34  PLAN.] The commissioner shall seek an amendment to the home and 
 19.35  community-based services waiver for the elderly to implement the 
 19.36  provisions of subdivisions 1a and 1b.  If the commissioner is 
 20.1   unable to secure the approval of the secretary of health and 
 20.2   human services for the requested waiver amendment by December 
 20.3   31, 1993, the commissioner shall amend the medical assistance 
 20.4   state plan to provide that case management provided under the 
 20.5   home and community-based services waiver for the elderly is 
 20.6   performed by counties as an administrative function for the 
 20.7   proper and effective administration of the state medical 
 20.8   assistance plan.  Notwithstanding section 256.025, subdivision 
 20.9   3, The state shall reimburse counties for the nonfederal share 
 20.10  of costs for case management performed as an administrative 
 20.11  function under the home and community-based services waiver for 
 20.12  the elderly. 
 20.13     Sec. 17.  Minnesota Statutes 2001 Supplement, section 
 20.14  256B.0915, subdivision 3, is amended to read: 
 20.15     Subd. 3.  [LIMITS OF CASES, RATES, PAYMENTS, AND 
 20.16  FORECASTING.] (a) The number of medical assistance waiver 
 20.17  recipients that a county may serve must be allocated according 
 20.18  to the number of medical assistance waiver cases open on July 1 
 20.19  of each fiscal year.  Additional recipients may be served with 
 20.20  the approval of the commissioner. 
 20.21     (b) The monthly limit for the cost of waivered services to 
 20.22  an individual elderly waiver client shall be the weighted 
 20.23  average monthly nursing facility rate of the case mix resident 
 20.24  class to which the elderly waiver client would be assigned under 
 20.25  Minnesota Rules, parts 9549.0050 to 9549.0059, less the 
 20.26  recipient's maintenance needs allowance as described in 
 20.27  subdivision 1d, paragraph (a), until the first day of the state 
 20.28  fiscal year in which the resident assessment system as described 
 20.29  in section 256B.437 for nursing home rate determination is 
 20.30  implemented.  Effective on the first day of the state fiscal 
 20.31  year in which the resident assessment system as described in 
 20.32  section 256B.437 for nursing home rate determination is 
 20.33  implemented and the first day of each subsequent state fiscal 
 20.34  year, the monthly limit for the cost of waivered services to an 
 20.35  individual elderly waiver client shall be the rate of the case 
 20.36  mix resident class to which the waiver client would be assigned 
 21.1   under Minnesota Rules, parts 9549.0050 to 9549.0059, in effect 
 21.2   on the last day of the previous state fiscal year, adjusted by 
 21.3   the greater of any legislatively adopted home and 
 21.4   community-based services cost-of-living percentage increase or 
 21.5   any legislatively adopted statewide percent rate increase for 
 21.6   nursing facilities. 
 21.7      (c) If extended medical supplies and equipment or 
 21.8   environmental modifications are or will be purchased for an 
 21.9   elderly waiver client, the costs may be prorated for up to 12 
 21.10  consecutive months beginning with the month of purchase.  If the 
 21.11  monthly cost of a recipient's waivered services exceeds the 
 21.12  monthly limit established in paragraph (b), the annual cost of 
 21.13  all waivered services shall be determined.  In this event, the 
 21.14  annual cost of all waivered services shall not exceed 12 times 
 21.15  the monthly limit of waivered services as described in paragraph 
 21.16  (b).  
 21.17     (d) For a person who is a nursing facility resident at the 
 21.18  time of requesting a determination of eligibility for elderly 
 21.19  waivered services, a monthly conversion limit for the cost of 
 21.20  elderly waivered services may be requested.  The monthly 
 21.21  conversion limit for the cost of elderly waiver services shall 
 21.22  be the resident class assigned under Minnesota Rules, parts 
 21.23  9549.0050 to 9549.0059, for that resident in the nursing 
 21.24  facility where the resident currently resides until July 1 of 
 21.25  the state fiscal year in which the resident assessment system as 
 21.26  described in section 256B.437 for nursing home rate 
 21.27  determination is implemented.  Effective on July 1 of the state 
 21.28  fiscal year in which the resident assessment system as described 
 21.29  in section 256B.437 for nursing home rate determination is 
 21.30  implemented, the monthly conversion limit for the cost of 
 21.31  elderly waiver services shall be the per diem nursing facility 
 21.32  rate as determined by the resident assessment system as 
 21.33  described in section 256B.437 for that resident in the nursing 
 21.34  facility where the resident currently resides multiplied by 365 
 21.35  and divided by 12, less the recipient's maintenance needs 
 21.36  allowance as described in subdivision 1d.  The limit under this 
 22.1   clause only applies to persons discharged from a nursing 
 22.2   facility after a minimum 30-day stay and found eligible for 
 22.3   waivered services on or after July 1, 1997.  The following costs 
 22.4   must be included in determining the total monthly costs for the 
 22.5   waiver client: 
 22.6      (1) cost of all waivered services, including extended 
 22.7   medical supplies and equipment and environmental modifications; 
 22.8   and 
 22.9      (2) cost of skilled nursing, home health aide, and personal 
 22.10  care services reimbursable by medical assistance.  
 22.11     (e) Medical assistance funding for skilled nursing 
 22.12  services, private duty nursing, home health aide, and personal 
 22.13  care services for waiver recipients must be approved by the case 
 22.14  manager and included in the individual care plan. 
 22.15     (f) A county is not required to contract with a provider of 
 22.16  supplies and equipment if the monthly cost of the supplies and 
 22.17  equipment is less than $250.  
 22.18     (g) The adult foster care rate shall be considered a 
 22.19  difficulty of care payment and shall not include room and 
 22.20  board.  The adult foster care service rate shall be negotiated 
 22.21  between the county agency and the foster care provider.  The 
 22.22  elderly waiver payment for the foster care service in 
 22.23  combination with the payment for all other elderly waiver 
 22.24  services, including case management, must not exceed the limit 
 22.25  specified in paragraph (b). 
 22.26     (h) Payment for assisted living service shall be a monthly 
 22.27  rate negotiated and authorized by the county agency based on an 
 22.28  individualized service plan for each resident and may not cover 
 22.29  direct rent or food costs. 
 22.30     (1) The individualized monthly negotiated payment for 
 22.31  assisted living services as described in section 256B.0913, 
 22.32  subdivision 5, paragraph (g) or (h), and residential care 
 22.33  services as described in section 256B.0913, subdivision 5, 
 22.34  paragraph (f), shall not exceed the nonfederal share, in effect 
 22.35  on July 1 of the state fiscal year for which the rate limit is 
 22.36  being calculated, of the greater of either the statewide or any 
 23.1   of the geographic groups' weighted average monthly nursing 
 23.2   facility rate of the case mix resident class to which the 
 23.3   elderly waiver eligible client would be assigned under Minnesota 
 23.4   Rules, parts 9549.0050 to 9549.0059, less the maintenance needs 
 23.5   allowance as described in subdivision 1d, paragraph (a), until 
 23.6   the July 1 of the state fiscal year in which the resident 
 23.7   assessment system as described in section 256B.437 for nursing 
 23.8   home rate determination is implemented.  Effective on July 1 of 
 23.9   the state fiscal year in which the resident assessment system as 
 23.10  described in section 256B.437 for nursing home rate 
 23.11  determination is implemented and July 1 of each subsequent state 
 23.12  fiscal year, the individualized monthly negotiated payment for 
 23.13  the services described in this clause shall not exceed the limit 
 23.14  described in this clause which was in effect on June 30 of the 
 23.15  previous state fiscal year and which has been adjusted by the 
 23.16  greater of any legislatively adopted home and community-based 
 23.17  services cost-of-living percentage increase or any legislatively 
 23.18  adopted statewide percent rate increase for nursing facilities. 
 23.19     (2) The individualized monthly negotiated payment for 
 23.20  assisted living services described in section 144A.4605 and 
 23.21  delivered by a provider licensed by the department of health as 
 23.22  a class A home care provider or an assisted living home care 
 23.23  provider and provided in a building that is registered as a 
 23.24  housing with services establishment under chapter 144D and that 
 23.25  provides 24-hour supervision in combination with the payment for 
 23.26  other elderly waiver services, including case management, must 
 23.27  not exceed the limit specified in paragraph (b). 
 23.28     (i) The county shall negotiate individual service rates 
 23.29  with vendors and may authorize payment for actual costs up to 
 23.30  the county's current approved rate.  Persons or agencies must be 
 23.31  employed by or under a contract with the county agency or the 
 23.32  public health nursing agency of the local board of health in 
 23.33  order to receive funding under the elderly waiver program, 
 23.34  except as a provider of supplies and equipment when the monthly 
 23.35  cost of the supplies and equipment is less than $250.  
 23.36     (j) Reimbursement for the medical assistance recipients 
 24.1   under the approved waiver shall be made from the medical 
 24.2   assistance account through the invoice processing procedures of 
 24.3   the department's Medicaid Management Information System (MMIS), 
 24.4   only with the approval of the client's case manager.  The budget 
 24.5   for the state share of the Medicaid expenditures shall be 
 24.6   forecasted with the medical assistance budget, and shall be 
 24.7   consistent with the approved waiver.  
 24.8      (k) To improve access to community services and eliminate 
 24.9   payment disparities between the alternative care program and the 
 24.10  elderly waiver, the commissioner shall establish statewide 
 24.11  maximum service rate limits and eliminate county-specific 
 24.12  service rate limits. 
 24.13     (1) Effective July 1, 2001, for service rate limits, except 
 24.14  those described or defined in paragraphs (g) and (h), the rate 
 24.15  limit for each service shall be the greater of the alternative 
 24.16  care statewide maximum rate or the elderly waiver statewide 
 24.17  maximum rate. 
 24.18     (2) Counties may negotiate individual service rates with 
 24.19  vendors for actual costs up to the statewide maximum service 
 24.20  rate limit. 
 24.21     (l) Beginning July 1, 1991, the state shall reimburse 
 24.22  counties according to the payment schedule in section 256.025 
 24.23  for the county share of costs incurred under this subdivision on 
 24.24  or after January 1, 1991, for individuals who are receiving 
 24.25  medical assistance. 
 24.26     Sec. 18.  Minnesota Statutes 2001 Supplement, section 
 24.27  256B.0924, subdivision 6, is amended to read: 
 24.28     Subd. 6.  [PAYMENT FOR TARGETED CASE MANAGEMENT.] (a) 
 24.29  Medical assistance and MinnesotaCare payment for targeted case 
 24.30  management shall be made on a monthly basis.  In order to 
 24.31  receive payment for an eligible adult, the provider must 
 24.32  document at least one contact per month and not more than two 
 24.33  consecutive months without a face-to-face contact with the adult 
 24.34  or the adult's legal representative. 
 24.35     (b) Payment for targeted case management provided by county 
 24.36  staff under this subdivision shall be based on the monthly rate 
 25.1   methodology under section 256B.094, subdivision 6, paragraph 
 25.2   (b), calculated as one combined average rate together with adult 
 25.3   mental health case management under section 256B.0625, 
 25.4   subdivision 20, except for calendar year 2002.  In calendar year 
 25.5   2002, the rate for case management under this section shall be 
 25.6   the same as the rate for adult mental health case management in 
 25.7   effect as of December 31, 2001.  Billing and payment must 
 25.8   identify the recipient's primary population group to allow 
 25.9   tracking of revenues. 
 25.10     (c) Payment for targeted case management provided by 
 25.11  county-contracted vendors shall be based on a monthly rate 
 25.12  negotiated by the host county.  The negotiated rate must not 
 25.13  exceed the rate charged by the vendor for the same service to 
 25.14  other payers.  If the service is provided by a team of 
 25.15  contracted vendors, the county may negotiate a team rate with a 
 25.16  vendor who is a member of the team.  The team shall determine 
 25.17  how to distribute the rate among its members.  No reimbursement 
 25.18  received by contracted vendors shall be returned to the county, 
 25.19  except to reimburse the county for advance funding provided by 
 25.20  the county to the vendor. 
 25.21     (d) If the service is provided by a team that includes 
 25.22  contracted vendors and county staff, the costs for county staff 
 25.23  participation on the team shall be included in the rate for 
 25.24  county-provided services.  In this case, the contracted vendor 
 25.25  and the county may each receive separate payment for services 
 25.26  provided by each entity in the same month.  In order to prevent 
 25.27  duplication of services, the county must document, in the 
 25.28  recipient's file, the need for team targeted case management and 
 25.29  a description of the different roles of the team members. 
 25.30     (e) Notwithstanding section 256B.19, subdivision 1, the 
 25.31  nonfederal share of costs for targeted case management shall be 
 25.32  provided by the recipient's county of responsibility, as defined 
 25.33  in sections 256G.01 to 256G.12, from sources other than federal 
 25.34  funds or funds used to match other federal funds. 
 25.35     (f) The commissioner may suspend, reduce, or terminate 
 25.36  reimbursement to a provider that does not meet the reporting or 
 26.1   other requirements of this section.  The county of 
 26.2   responsibility, as defined in sections 256G.01 to 256G.12, is 
 26.3   responsible for any federal disallowances.  The county may share 
 26.4   this responsibility with its contracted vendors. 
 26.5      (g) The commissioner shall set aside five percent of the 
 26.6   federal funds received under this section for use in reimbursing 
 26.7   the state for costs of developing and implementing this section. 
 26.8      (h) Notwithstanding section 256.025, subdivision 2, 
 26.9   Payments to counties for targeted case management expenditures 
 26.10  under this section shall only be made from federal earnings from 
 26.11  services provided under this section.  Payments to contracted 
 26.12  vendors shall include both the federal earnings and the county 
 26.13  share. 
 26.14     (i) Notwithstanding section 256B.041, county payments for 
 26.15  the cost of case management services provided by county staff 
 26.16  shall not be made to the state treasurer.  For the purposes of 
 26.17  targeted case management services provided by county staff under 
 26.18  this section, the centralized disbursement of payments to 
 26.19  counties under section 256B.041 consists only of federal 
 26.20  earnings from services provided under this section. 
 26.21     (j) If the recipient is a resident of a nursing facility, 
 26.22  intermediate care facility, or hospital, and the recipient's 
 26.23  institutional care is paid by medical assistance, payment for 
 26.24  targeted case management services under this subdivision is 
 26.25  limited to the last 180 days of the recipient's residency in 
 26.26  that facility and may not exceed more than six months in a 
 26.27  calendar year. 
 26.28     (k) Payment for targeted case management services under 
 26.29  this subdivision shall not duplicate payments made under other 
 26.30  program authorities for the same purpose. 
 26.31     (l) Any growth in targeted case management services and 
 26.32  cost increases under this section shall be the responsibility of 
 26.33  the counties. 
 26.34     Sec. 19.  Minnesota Statutes 2000, section 256B.0945, 
 26.35  subdivision 4, is amended to read: 
 26.36     Subd. 4.  [PAYMENT RATES.] (a) Notwithstanding sections 
 27.1   256.025, subdivision 2; 256B.19; and 256B.041, payments to 
 27.2   counties for residential services provided by a residential 
 27.3   facility shall only be made of federal earnings for services 
 27.4   provided under this section, and the nonfederal share of costs 
 27.5   for services provided under this section shall be paid by the 
 27.6   county from sources other than federal funds or funds used to 
 27.7   match other federal funds.  Payment to counties for services 
 27.8   provided according to subdivision 2, paragraph (a), shall be the 
 27.9   federal share of the contract rate.  Payment to counties for 
 27.10  services provided according to subdivision 2, paragraph (b), 
 27.11  shall be a proportion of the per day contract rate that relates 
 27.12  to rehabilitative mental health services and shall not include 
 27.13  payment for costs or services that are billed to the IV-E 
 27.14  program as room and board.  
 27.15     (b) The commissioner shall set aside a portion not to 
 27.16  exceed five percent of the federal funds earned under this 
 27.17  section to cover the state costs of administering this section.  
 27.18  Any unexpended funds from the set-aside shall be distributed to 
 27.19  the counties in proportion to their earnings under this section. 
 27.20     Sec. 20.  Minnesota Statutes 2000, section 256B.19, 
 27.21  subdivision 1, is amended to read: 
 27.22     Subdivision 1.  [DIVISION OF COST.] The state and county 
 27.23  share of medical assistance costs not paid by federal funds 
 27.24  shall be as follows:  
 27.25     (1) ninety percent state funds and ten percent county 
 27.26  funds, unless otherwise provided below; 
 27.27     (2) beginning January 1, 1992, 50 percent state funds and 
 27.28  50 percent county funds for the cost of placement of severely 
 27.29  emotionally disturbed children in regional treatment centers.  
 27.30     For counties that participate in a Medicaid demonstration 
 27.31  project under sections 256B.69 and 256B.71, the division of the 
 27.32  nonfederal share of medical assistance expenses for payments 
 27.33  made to prepaid health plans or for payments made to health 
 27.34  maintenance organizations in the form of prepaid capitation 
 27.35  payments, this division of medical assistance expenses shall be 
 27.36  95 percent by the state and five percent by the county of 
 28.1   financial responsibility.  
 28.2      In counties where prepaid health plans are under contract 
 28.3   to the commissioner to provide services to medical assistance 
 28.4   recipients, the cost of court ordered treatment ordered without 
 28.5   consulting the prepaid health plan that does not include 
 28.6   diagnostic evaluation, recommendation, and referral for 
 28.7   treatment by the prepaid health plan is the responsibility of 
 28.8   the county of financial responsibility.  
 28.9      Sec. 21.  Minnesota Statutes 2001 Supplement, section 
 28.10  256B.19, subdivision 1c, is amended to read: 
 28.11     Subd. 1c.  [ADDITIONAL PORTION OF NONFEDERAL SHARE.] (a) 
 28.12  Hennepin county shall be responsible for a monthly transfer 
 28.13  payment of $1,500,000, due before noon on the 15th of each month 
 28.14  and the University of Minnesota shall be responsible for a 
 28.15  monthly transfer payment of $500,000 due before noon on the 15th 
 28.16  of each month, beginning July 15, 1995.  These sums shall be 
 28.17  part of the designated governmental unit's portion of the 
 28.18  nonfederal share of medical assistance costs, but shall not be 
 28.19  subject to payback provisions of section 256.025. 
 28.20     (b) Beginning July 1, 2001, Hennepin county's payment under 
 28.21  paragraph (a) shall be $2,066,000 each month. 
 28.22     (c) Beginning July 1, 2001, the commissioner shall increase 
 28.23  annual capitation payments to the metropolitan health plan under 
 28.24  section 256B.69 for the prepaid medical assistance program by 
 28.25  approximately $3,400,000, plus any available federal matching 
 28.26  funds, to recognize higher than average medical education costs. 
 28.27     Sec. 22.  Minnesota Statutes 2000, section 256B.19, 
 28.28  subdivision 1d, is amended to read: 
 28.29     Subd. 1d.  [PORTION OF NONFEDERAL SHARE TO BE PAID BY 
 28.30  CERTAIN COUNTIES.] In addition to the percentage contribution 
 28.31  paid by a county under subdivision 1, the governmental units 
 28.32  designated in this subdivision shall be responsible for an 
 28.33  additional portion of the nonfederal share of medical assistance 
 28.34  cost.  For purposes of this subdivision, "designated 
 28.35  governmental unit" means the counties of Becker, Beltrami, 
 28.36  Clearwater, Cook, Dodge, Hubbard, Itasca, Lake, Pennington, 
 29.1   Pipestone, Ramsey, St. Louis, Steele, Todd, Traverse, and Wadena.
 29.2      Beginning in 1994, each of the governmental units 
 29.3   designated in this subdivision shall transfer before noon on May 
 29.4   31 to the state Medicaid agency an amount equal to the number of 
 29.5   licensed beds in any nursing home owned and operated by the 
 29.6   county, with the county named as licensee, multiplied by $5,723. 
 29.7   If two or more counties own and operate a nursing home, the 
 29.8   payment shall be prorated.  These sums shall be part of the 
 29.9   designated governmental unit's portion of the nonfederal share 
 29.10  of medical assistance costs, but shall not be subject to payback 
 29.11  provisions of section 256.025. 
 29.12     Sec. 23.  Minnesota Statutes 2000, section 256B.19, 
 29.13  subdivision 2b, is amended to read: 
 29.14     Subd. 2b.  [PILOT PROJECT REIMBURSEMENT.] In counties where 
 29.15  a pilot or demonstration project is operated under the medical 
 29.16  assistance program, the state may pay 100 percent of the 
 29.17  administrative costs for the pilot or demonstration project 
 29.18  after June 30, 1990.  Reimbursement for these costs is subject 
 29.19  to section 256.025. 
 29.20     Sec. 24.  Minnesota Statutes 2000, section 256B.37, 
 29.21  subdivision 5a, is amended to read: 
 29.22     Subd. 5a.  [SUPPLEMENTAL PAYMENT BY MEDICAL ASSISTANCE.] 
 29.23  Medical assistance payment will not be made when either covered 
 29.24  charges are paid in full by a third party or the provider has an 
 29.25  agreement to accept payment for less than charges as payment in 
 29.26  full.  Payment for patients that are simultaneously covered by 
 29.27  medical assistance and a liable third party other than Medicare 
 29.28  will be determined as the lesser of clauses (1) to (3): 
 29.29     (1) the patient liability according to the provider/insurer 
 29.30  agreement; 
 29.31     (2) covered charges minus the third party payment amount; 
 29.32  or 
 29.33     (3) the medical assistance rate minus the third party 
 29.34  payment amount. 
 29.35  A negative difference will not be implemented. 
 29.36     All providers must reduce their submitted charge to medical 
 30.1   assistance programs to reflect all discount amounts applied to 
 30.2   the charge by any provider/insurer agreement or contract.  The 
 30.3   net submitted charge may not be greater than the patient 
 30.4   liability for the service. 
 30.5      Sec. 25.  Minnesota Statutes 2000, section 256B.692, 
 30.6   subdivision 3, is amended to read: 
 30.7      Subd. 3.  [REQUIREMENTS OF THE COUNTY BOARD.] A county 
 30.8   board that intends to purchase or provide health care under this 
 30.9   section, which may include purchasing all or part of these 
 30.10  services from health plans or individual providers on a 
 30.11  fee-for-service basis, or providing these services directly, 
 30.12  must demonstrate the ability to follow and agree to the 
 30.13  following requirements: 
 30.14     (1) purchase all covered services for a fixed payment from 
 30.15  the state that does not exceed the estimated state and federal 
 30.16  cost that would have occurred under the prepaid medical 
 30.17  assistance and general assistance medical care programs; 
 30.18     (2) ensure that covered services are accessible to all 
 30.19  enrollees and that enrollees have a reasonable choice of 
 30.20  providers, health plans, or networks when possible.  If the 
 30.21  county is also a provider of service, the county board shall 
 30.22  develop a process to ensure that providers employed by the 
 30.23  county are not the sole referral source and are not the sole 
 30.24  provider of health care services if other providers, which meet 
 30.25  the same quality and cost requirements are available; 
 30.26     (3) issue payments to participating vendors or networks in 
 30.27  a timely manner; 
 30.28     (4) establish a process to ensure and improve the quality 
 30.29  of care provided; 
 30.30     (5) provide appropriate quality and other required data in 
 30.31  a format required by the state; 
 30.32     (6) provide a system for advocacy, enrollee protection, and 
 30.33  complaints and appeals that is independent of care providers or 
 30.34  other risk bearers and complies with section 256B.69; 
 30.35     (7) for counties within the seven-county metropolitan area, 
 30.36  ensure that the implementation and operation of the Minnesota 
 31.1   senior health options demonstration project and the Minnesota 
 31.2   disability health options demonstration project, authorized 
 31.3   under section 256B.69, subdivision 23, will not be impeded; 
 31.4      (8) ensure that all recipients that are enrolled in the 
 31.5   prepaid medical assistance or general assistance medical care 
 31.6   program will be transferred to county-based purchasing without 
 31.7   utilizing the department's fee-for-service claims payment 
 31.8   system; 
 31.9      (9) ensure that all recipients who are required to 
 31.10  participate in county-based purchasing are given sufficient 
 31.11  information prior to enrollment in order to make informed 
 31.12  decisions; and 
 31.13     (10) ensure that the state and the medical assistance and 
 31.14  general assistance medical care recipients will be held harmless 
 31.15  for the payment of obligations incurred by the county if the 
 31.16  county, or a health plan providing services on behalf of the 
 31.17  county, or a provider participating in county-based purchasing 
 31.18  becomes insolvent, and the state has made the payments due to 
 31.19  the county under this section. 
 31.20     Sec. 26.  Minnesota Statutes 2000, section 256F.10, 
 31.21  subdivision 9, is amended to read: 
 31.22     Subd. 9.  [PAYMENTS.] Notwithstanding section 256.025, 
 31.23  subdivision 2, Payments to certified providers for child welfare 
 31.24  targeted case management expenditures under section 256B.094 and 
 31.25  this section shall only be made of federal earnings from 
 31.26  services provided under section 256B.094 and this section.  
 31.27  Payments to contracted vendors shall include both the federal 
 31.28  earnings and the nonfederal share. 
 31.29     Sec. 27.  Minnesota Statutes 2000, section 256F.13, 
 31.30  subdivision 1, is amended to read: 
 31.31     Subdivision 1.  [FEDERAL REVENUE ENHANCEMENT.] (a) [DUTIES 
 31.32  OF THE COMMISSIONER OF HUMAN SERVICES.] The commissioner of 
 31.33  human services may enter into an agreement with one or more 
 31.34  family services collaboratives to enhance federal reimbursement 
 31.35  under Title IV-E of the Social Security Act and federal 
 31.36  administrative reimbursement under Title XIX of the Social 
 32.1   Security Act.  The commissioner may contract with the department 
 32.2   of children, families, and learning for purposes of transferring 
 32.3   the federal reimbursement to the commissioner of children, 
 32.4   families, and learning to be distributed to the collaboratives 
 32.5   according to clause (2).  The commissioner shall have the 
 32.6   following authority and responsibilities regarding family 
 32.7   services collaboratives: 
 32.8      (1) the commissioner shall submit amendments to state plans 
 32.9   and seek waivers as necessary to implement the provisions of 
 32.10  this section; 
 32.11     (2) the commissioner shall pay the federal reimbursement 
 32.12  earned under this subdivision to each collaborative based on 
 32.13  their earnings.  Notwithstanding section 256.025, subdivision 2, 
 32.14  Payments to collaboratives for expenditures under this 
 32.15  subdivision will only be made of federal earnings from services 
 32.16  provided by the collaborative; 
 32.17     (3) the commissioner shall review expenditures of family 
 32.18  services collaboratives using reports specified in the agreement 
 32.19  with the collaborative to ensure that the base level of 
 32.20  expenditures is continued and new federal reimbursement is used 
 32.21  to expand education, social, health, or health-related services 
 32.22  to young children and their families; 
 32.23     (4) the commissioner may reduce, suspend, or eliminate a 
 32.24  family services collaborative's obligations to continue the base 
 32.25  level of expenditures or expansion of services if the 
 32.26  commissioner determines that one or more of the following 
 32.27  conditions apply: 
 32.28     (i) imposition of levy limits that significantly reduce 
 32.29  available funds for social, health, or health-related services 
 32.30  to families and children; 
 32.31     (ii) reduction in the net tax capacity of the taxable 
 32.32  property eligible to be taxed by the lead county or 
 32.33  subcontractor that significantly reduces available funds for 
 32.34  education, social, health, or health-related services to 
 32.35  families and children; 
 32.36     (iii) reduction in the number of children under age 19 in 
 33.1   the county, collaborative service delivery area, subcontractor's 
 33.2   district, or catchment area when compared to the number in the 
 33.3   base year using the most recent data provided by the state 
 33.4   demographer's office; or 
 33.5      (iv) termination of the federal revenue earned under the 
 33.6   family services collaborative agreement; 
 33.7      (5) the commissioner shall not use the federal 
 33.8   reimbursement earned under this subdivision in determining the 
 33.9   allocation or distribution of other funds to counties or 
 33.10  collaboratives; 
 33.11     (6) the commissioner may suspend, reduce, or terminate the 
 33.12  federal reimbursement to a provider that does not meet the 
 33.13  reporting or other requirements of this subdivision; 
 33.14     (7) the commissioner shall recover from the family services 
 33.15  collaborative any federal fiscal disallowances or sanctions for 
 33.16  audit exceptions directly attributable to the family services 
 33.17  collaborative's actions in the integrated fund, or the 
 33.18  proportional share if federal fiscal disallowances or sanctions 
 33.19  are based on a statewide random sample; and 
 33.20     (8) the commissioner shall establish criteria for the 
 33.21  family services collaborative for the accounting and financial 
 33.22  management system that will support claims for federal 
 33.23  reimbursement. 
 33.24     (b)  [FAMILY SERVICES COLLABORATIVE RESPONSIBILITIES.] The 
 33.25  family services collaborative shall have the following authority 
 33.26  and responsibilities regarding federal revenue enhancement: 
 33.27     (1) the family services collaborative shall be the party 
 33.28  with which the commissioner contracts.  A lead county shall be 
 33.29  designated as the fiscal agency for reporting, claiming, and 
 33.30  receiving payments; 
 33.31     (2) the family services collaboratives may enter into 
 33.32  subcontracts with other counties, school districts, special 
 33.33  education cooperatives, municipalities, and other public and 
 33.34  nonprofit entities for purposes of identifying and claiming 
 33.35  eligible expenditures to enhance federal reimbursement, or to 
 33.36  expand education, social, health, or health-related services to 
 34.1   families and children; 
 34.2      (3) the family services collaborative must continue the 
 34.3   base level of expenditures for education, social, health, or 
 34.4   health-related services to families and children from any state, 
 34.5   county, federal, or other public or private funding source 
 34.6   which, in the absence of the new federal reimbursement earned 
 34.7   under this subdivision, would have been available for those 
 34.8   services, except as provided in subdivision 1, paragraph (a), 
 34.9   clause (4).  The base year for purposes of this subdivision 
 34.10  shall be the four-quarter calendar year ending at least two 
 34.11  calendar quarters before the first calendar quarter in which the 
 34.12  new federal reimbursement is earned; 
 34.13     (4) the family services collaborative must use all new 
 34.14  federal reimbursement resulting from federal revenue enhancement 
 34.15  to expand expenditures for education, social, health, or 
 34.16  health-related services to families and children beyond the base 
 34.17  level, except as provided in subdivision 1, paragraph (a), 
 34.18  clause (4); 
 34.19     (5) the family services collaborative must ensure that 
 34.20  expenditures submitted for federal reimbursement are not made 
 34.21  from federal funds or funds used to match other federal funds.  
 34.22  Notwithstanding section 256B.19, subdivision 1, for the purposes 
 34.23  of family services collaborative expenditures under agreement 
 34.24  with the department, the nonfederal share of costs shall be 
 34.25  provided by the family services collaborative from sources other 
 34.26  than federal funds or funds used to match other federal funds; 
 34.27     (6) the family services collaborative must develop and 
 34.28  maintain an accounting and financial management system adequate 
 34.29  to support all claims for federal reimbursement, including a 
 34.30  clear audit trail and any provisions specified in the agreement; 
 34.31  and 
 34.32     (7) the family services collaborative shall submit an 
 34.33  annual report to the commissioner as specified in the agreement. 
 34.34     Sec. 28.  Minnesota Statutes 2000, section 256L.05, 
 34.35  subdivision 3, is amended to read: 
 34.36     Subd. 3.  [EFFECTIVE DATE OF COVERAGE.] (a) The effective 
 35.1   date of coverage is the first day of the month following the 
 35.2   month in which eligibility is approved and the first premium 
 35.3   payment has been received.  As provided in section 256B.057, 
 35.4   coverage for newborns is automatic from the date of birth and 
 35.5   must be coordinated with other health coverage.  The effective 
 35.6   date of coverage for eligible newly adoptive children added to a 
 35.7   family receiving covered health services is the date of entry 
 35.8   into the family.  The effective date of coverage for other new 
 35.9   recipients added to the family receiving covered health services 
 35.10  is the first day of the month following the month in which 
 35.11  eligibility is approved or at renewal, whichever the family 
 35.12  receiving covered health services prefers.  All eligibility 
 35.13  criteria must be met by the family at the time the new family 
 35.14  member is added.  The income of the new family member is 
 35.15  included with the family's gross income and the adjusted premium 
 35.16  begins in the month the new family member is added.  
 35.17     (b) The initial premium must be received eight by the last 
 35.18  working days prior to the end day of the month for coverage to 
 35.19  begin the first day of the following month.  
 35.20     (c) Benefits are not available until the day following 
 35.21  discharge if an enrollee is hospitalized on the first day of 
 35.22  coverage.  
 35.23     (d) Notwithstanding any other law to the contrary, benefits 
 35.24  under sections 256L.01 to 256L.18 are secondary to a plan of 
 35.25  insurance or benefit program under which an eligible person may 
 35.26  have coverage and the commissioner shall use cost avoidance 
 35.27  techniques to ensure coordination of any other health coverage 
 35.28  for eligible persons.  The commissioner shall identify eligible 
 35.29  persons who may have coverage or benefits under other plans of 
 35.30  insurance or who become eligible for medical assistance. 
 35.31     Sec. 29.  Minnesota Statutes 2001 Supplement, section 
 35.32  256L.06, subdivision 3, is amended to read: 
 35.33     Subd. 3.  [ADMINISTRATION AND COMMISSIONER'S DUTIES.] (a) 
 35.34  Premiums are dedicated to the commissioner for MinnesotaCare. 
 35.35     (b) The commissioner shall develop and implement procedures 
 35.36  to:  (1) require enrollees to report changes in income; (2) 
 36.1   adjust sliding scale premium payments, based upon changes in 
 36.2   enrollee income; and (3) disenroll enrollees from MinnesotaCare 
 36.3   for failure to pay required premiums.  Failure to pay includes 
 36.4   payment with a dishonored check, a returned automatic bank 
 36.5   withdrawal, or a refused credit card or debit card payment.  The 
 36.6   commissioner may demand a guaranteed form of payment, including 
 36.7   a cashier's check or a money order, as the only means to replace 
 36.8   a dishonored, returned, or refused payment. 
 36.9      (c) Premiums are calculated on a calendar month basis and 
 36.10  may be paid on a monthly, quarterly, or annual basis, with the 
 36.11  first payment due upon notice from the commissioner of the 
 36.12  premium amount required.  The commissioner shall inform 
 36.13  applicants and enrollees of these premium payment options. 
 36.14  Premium payment is required before enrollment is complete and to 
 36.15  maintain eligibility in MinnesotaCare.  Premium payments 
 36.16  received before noon are credited the same day.  Premium 
 36.17  payments received after noon are credited on the next working 
 36.18  day.  
 36.19     (d) Nonpayment of the premium will result in disenrollment 
 36.20  from the plan effective for the calendar month for which the 
 36.21  premium was due.  Persons disenrolled for nonpayment or who 
 36.22  voluntarily terminate coverage from the program may not reenroll 
 36.23  until four calendar months have elapsed.  Persons disenrolled 
 36.24  for nonpayment who pay all past due premiums as well as current 
 36.25  premiums due, including premiums due for the period of 
 36.26  disenrollment, within 20 days of disenrollment, shall be 
 36.27  reenrolled retroactively to the first day of disenrollment.  
 36.28  Persons disenrolled for nonpayment or who voluntarily terminate 
 36.29  coverage from the program may not reenroll for four calendar 
 36.30  months unless the person demonstrates good cause for 
 36.31  nonpayment.  Good cause does not exist if a person chooses to 
 36.32  pay other family expenses instead of the premium.  The 
 36.33  commissioner shall define good cause in rule. 
 36.34     Sec. 30.  Minnesota Statutes 2000, section 256L.07, 
 36.35  subdivision 3, is amended to read: 
 36.36     Subd. 3.  [OTHER HEALTH COVERAGE.] (a) Families and 
 37.1   individuals enrolled in the MinnesotaCare program must have no 
 37.2   health coverage while enrolled or for at least four months prior 
 37.3   to application and renewal.  Children enrolled in the original 
 37.4   children's health plan and children in families with income 
 37.5   equal to or less than 150 percent of the federal poverty 
 37.6   guidelines, who have other health insurance, are eligible if the 
 37.7   coverage: 
 37.8      (1) lacks two or more of the following: 
 37.9      (i) basic hospital insurance; 
 37.10     (ii) medical-surgical insurance; 
 37.11     (iii) prescription drug coverage; 
 37.12     (iv) dental coverage; or 
 37.13     (v) vision coverage; 
 37.14     (2) requires a deductible of $100 or more per person per 
 37.15  year; or 
 37.16     (3) lacks coverage because the child has exceeded the 
 37.17  maximum coverage for a particular diagnosis or the policy 
 37.18  excludes a particular diagnosis. 
 37.19     The commissioner may change this eligibility criterion for 
 37.20  sliding scale premiums in order to remain within the limits of 
 37.21  available appropriations.  The requirement of no health coverage 
 37.22  does not apply to newborns. 
 37.23     (b) Medical assistance, general assistance medical care, 
 37.24  and the Civilian Health and Medical Program of the Uniformed 
 37.25  Service, CHAMPUS, or other coverage provided under United States 
 37.26  Code, title 10, subtitle A, part II, chapter 55, are not 
 37.27  considered insurance or health coverage for purposes of the 
 37.28  four-month requirement described in this subdivision. 
 37.29     (c) For purposes of this subdivision, Medicare Part A or B 
 37.30  coverage under title XVIII of the Social Security Act, United 
 37.31  States Code, title 42, sections 1395c to 1395w-4, is considered 
 37.32  health coverage.  An applicant or enrollee may not refuse 
 37.33  Medicare coverage to establish eligibility for MinnesotaCare. 
 37.34     (d) Applicants who were recipients of medical assistance or 
 37.35  general assistance medical care within one month of application 
 37.36  must meet the provisions of this subdivision and subdivision 2. 
 38.1      Sec. 31.  Laws 2001, First Special Session chapter 9, 
 38.2   article 2, section 76, is amended to read: 
 38.3      Sec. 76.  [REPEALER.] 
 38.4      (a) Minnesota Statutes 2000, section 256B.0635, subdivision 
 38.5   3, and 256B.19, subdivision 1b, are is repealed effective July 
 38.6   1, 2001. 
 38.7      (b) Minnesota Statutes 2000, section 256L.02, subdivision 
 38.8   4, is repealed effective January 1, 2003. 
 38.9      Sec. 32.  [REVISOR INSTRUCTION.] 
 38.10     In the next edition of Minnesota Statutes and Minnesota 
 38.11  Rules, the revisor shall replace the terms "Health Care 
 38.12  Financing Administration" and "federal Department of Health, 
 38.13  Education and Welfare" with "Centers for Medicare and Medicaid 
 38.14  Services" wherever it refers to the federal agency that provides 
 38.15  funding for the medical assistance program. 
 38.16     Sec. 33.  [REPEALER WITHOUT EFFECT.] 
 38.17     The repeal of Minnesota Statutes 2000, section 256B.0635, 
 38.18  subdivision 3, by Laws 2001, First Special Session chapter 9, 
 38.19  article 2, section 76, with an effective date of July 1, 2001, 
 38.20  is without effect and section 256B.0635, subdivision 3, remains 
 38.21  in effect after June 30, 2001. 
 38.22     Sec. 34.  [REPEALER.] 
 38.23     (a) Minnesota Statutes 2000, section 256B.0635, subdivision 
 38.24  3, is repealed effective July 1, 2002. 
 38.25     (b) Minnesota Statutes 2000, sections 256.025; 256B.19, 
 38.26  subdivision 1a; and 256B.77, subdivision 24, are repealed.