SF 2076

Introduction - 83rd Legislature (2003 - 2004)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to human services; modifying the 
  1.3             MinnesotaCare tax for patient services provided to 
  1.4             certain facilities; amending Minnesota Statutes 2003 
  1.5             Supplement, sections 295.50, subdivision 9b; 295.53, 
  1.6             subdivision 1.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.9   295.50, subdivision 9b, is amended to read: 
  1.10     Subd. 9b.  [PATIENT SERVICES.] (a) "Patient services" means 
  1.11  inpatient and outpatient services and other goods and services 
  1.12  provided by hospitals, surgical centers, or health care 
  1.13  providers.  They include the following health care goods and 
  1.14  services provided to a patient or consumer: 
  1.15     (1) bed and board; 
  1.16     (2) nursing services and other related services; 
  1.17     (3) use of hospitals, surgical centers, or health care 
  1.18  provider facilities; 
  1.19     (4) medical social services; 
  1.20     (5) drugs, biologicals, supplies, appliances, and 
  1.21  equipment; 
  1.22     (6) other diagnostic or therapeutic items or services; 
  1.23     (7) medical or surgical services; 
  1.24     (8) items and services furnished to ambulatory patients not 
  1.25  requiring emergency care; and 
  1.26     (9) emergency services; and 
  2.1      (10) covered services listed in section 256B.0625 and in 
  2.2   Minnesota Rules, parts 9505.0170 to 9505.0475. 
  2.3      (b) "Patient services" does not include:  
  2.4      (1) services provided to nursing homes licensed under 
  2.5   chapter 144A; 
  2.6      (2) examinations for purposes of utilization reviews, 
  2.7   insurance claims or eligibility, litigation, and employment, 
  2.8   including reviews of medical records for those purposes; 
  2.9      (3) services provided to and by community residential 
  2.10  mental health facilities licensed under Minnesota Rules, parts 
  2.11  9520.0500 to 9520.0690 (Rule 36) and to and by children's 
  2.12  residential treatment programs licensed under Minnesota Rules, 
  2.13  parts 9545.0905 to 9545.1125 (Rule 5); 
  2.14     (4) services provided to and by community support programs 
  2.15  and family community support programs approved under Minnesota 
  2.16  Rules, parts 9535.1700 to 9535.1760, or certified as mental 
  2.17  health rehabilitative services under chapter 256B; 
  2.18     (5) services provided to and by community mental health 
  2.19  centers as defined in section 245.62, subdivision 2; 
  2.20     (6) services provided to and by assisted living programs 
  2.21  and congregate housing programs; and 
  2.22     (7) hospice care services; 
  2.23     (8) home and community-based waivered services under 
  2.24  sections 256B.0915, 256B.49, 256B.491, and 256B.501; 
  2.25     (9) targeted case management services under sections 
  2.26  256B.0621; 256B.0625, subdivisions 20, 20a, 33, and 44; and 
  2.27  256B.094; and 
  2.28     (10) services provided to the following:  supervised living 
  2.29  facilities for persons with mental retardation or related 
  2.30  conditions, licensed under Minnesota Rules, parts 4665.0100 to 
  2.31  4665.9900; housing with services establishments required to be 
  2.32  registered under chapter 144D; board and lodging establishments 
  2.33  providing only custodial services that are licensed under 
  2.34  chapter 157 and registered under section 157.17 to provide 
  2.35  supportive services or health supervision services; adult foster 
  2.36  homes as defined in Minnesota Rules, part 9555.5105; day 
  3.1   training and habilitation services for adults with mental 
  3.2   retardation and related conditions as defined in section 252.41, 
  3.3   subdivision 3; boarding care homes as defined in Minnesota 
  3.4   Rules, part 4655.0100; adult day care centers as defined in 
  3.5   Minnesota Rules, part 9555.9600; and home health agencies as 
  3.6   defined in Minnesota Rules, part 9505.0175, subpart 15. 
  3.7      Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  3.8   295.53, subdivision 1, is amended to read: 
  3.9      Subdivision 1.  [EXEMPTIONS.] (a) The following payments 
  3.10  are excluded from the gross revenues subject to the hospital, 
  3.11  surgical center, or health care provider taxes under sections 
  3.12  295.50 to 295.59: 
  3.13     (1) payments received for services provided under the 
  3.14  Medicare program, including payments received from the 
  3.15  government, and organizations governed by sections 1833 and 1876 
  3.16  of title XVIII of the federal Social Security Act, United States 
  3.17  Code, title 42, section 1395, and enrollee deductibles, 
  3.18  coinsurance, and co-payments, whether paid by the Medicare 
  3.19  enrollee or by a Medicare supplemental coverage as defined in 
  3.20  section 62A.011, subdivision 3, clause (10), or by Medicaid 
  3.21  payments under title XIX of the federal Social Security Act.  
  3.22  Payments for services not covered by Medicare are taxable; 
  3.23     (2) payments received for home health care services; 
  3.24     (3) payments received from hospitals or surgical centers 
  3.25  for goods and services on which liability for tax is imposed 
  3.26  under section 295.52 or the source of funds for the payment is 
  3.27  exempt under clause (1), (7), (10), or (14); 
  3.28     (4) payments received from health care providers for goods 
  3.29  and services on which liability for tax is imposed under this 
  3.30  chapter or the source of funds for the payment is exempt under 
  3.31  clause (1), (7), (10), or (14); 
  3.32     (5) amounts paid for legend drugs, other than nutritional 
  3.33  products, to a wholesale drug distributor who is subject to tax 
  3.34  under section 295.52, subdivision 3, reduced by reimbursements 
  3.35  received for legend drugs otherwise exempt under this chapter; 
  3.36     (6) payments received by a health care provider or the 
  4.1   wholly owned subsidiary of a health care provider for care 
  4.2   provided outside Minnesota; 
  4.3      (7) payments received from the chemical dependency fund 
  4.4   under chapter 254B; 
  4.5      (8) payments received in the nature of charitable donations 
  4.6   that are not designated for providing patient services to a 
  4.7   specific individual or group; 
  4.8      (9) payments received for providing patient services 
  4.9   incurred through a formal program of health care research 
  4.10  conducted in conformity with federal regulations governing 
  4.11  research on human subjects.  Payments received from patients or 
  4.12  from other persons paying on behalf of the patients are subject 
  4.13  to tax; 
  4.14     (10) payments received from any governmental agency for 
  4.15  services benefiting the public, not including payments made by 
  4.16  the government in its capacity as an employer or insurer or 
  4.17  payments made by the government for services provided under 
  4.18  general assistance medical care, the MinnesotaCare program, or 
  4.19  the medical assistance, general assistance medical care, or the 
  4.20  MinnesotaCare program governed by title XIX of the federal 
  4.21  Social Security Act, United States Code, title 42, section 1396 
  4.22  et seq., notwithstanding payments made under the Medicare 
  4.23  program, as provided in clause (1); 
  4.24     (11) government payments received by a regional treatment 
  4.25  center the commissioner of human services for state-operated 
  4.26  services; 
  4.27     (12) payments received by a health care provider for 
  4.28  hearing aids and related equipment or prescription eyewear 
  4.29  delivered outside of Minnesota; 
  4.30     (13) payments received by an educational institution from 
  4.31  student tuition, student activity fees, health care service 
  4.32  fees, government appropriations, donations, or grants, and for 
  4.33  health and related services identified in and provided under a 
  4.34  recipient's individualized education plan.  Fee for service 
  4.35  payments and payments for extended coverage are taxable; and 
  4.36     (14) payments received under the federal Employees Health 
  5.1   Benefits Act, United States Code, title 5, section 8909(f), as 
  5.2   amended by the Omnibus Reconciliation Act of 1990. 
  5.3      (b) Payments received by wholesale drug distributors for 
  5.4   legend drugs sold directly to veterinarians or veterinary bulk 
  5.5   purchasing organizations are excluded from the gross revenues 
  5.6   subject to the wholesale drug distributor tax under sections 
  5.7   295.50 to 295.59.