<a id="pl.1.3"></a><var>1.3</var>rebasing;amending Minnesota Statutes 2009 Supplement, section 256B.441, <br/>
<a id="pl.1.4"></a><var>1.4</var>subdivision 55.<br/>
<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>    Section 1. Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55, <br/>
<a id="pl.1.7"></a><var>1.7</var>is amended to read:<br/>
<a id="pl.1.8"></a><var>1.8</var>    Subd. 55. <b>Phase-in of rebased operating payment rates.</b>  (a) For the rate years <br/>
<a id="pl.1.9"></a><var>1.9</var>beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated <br/>
<a id="pl.1.10"></a><var>1.10</var>under this section shall be phased in by blending the operating rate with the operating <br/>
<a id="pl.1.11"></a><var>1.11</var>payment rate determined under section 
         <statute_ref>256B.434</statute_ref>. For purposes of this subdivision, the <br/>
<a id="pl.1.12"></a><var>1.12</var>rate to be used that is determined under section 
         <statute_ref>256B.434</statute_ref> shall not include the portion of <br/>
<a id="pl.1.13"></a><var>1.13</var>the operating payment rate related to performance-based incentive payments under section <br/>
<statute_ref><a id="pl.1.14"></a><var>1.14</var>256B.434, subdivision 4
         </statute_ref>, paragraph (d). For the rate year beginning October 1, 2008, the <br/>
<a id="pl.1.15"></a><var>1.15</var>operating payment rate for each facility shall be 13 percent of the operating payment rate <br/>
<a id="pl.1.16"></a><var>1.16</var>from this section, and 87 percent of the operating payment rate from section 
         <statute_ref>256B.434</statute_ref>. <br/>
<a id="pl.1.17"></a><var>1.17</var>For the rate year beginning October 1, 2009, the operating payment rate for each facility <br/>
<a id="pl.1.18"></a><var>1.18</var>shall be 14 percent of the operating payment rate from this section, and 86 percent of <br/>
<a id="pl.1.19"></a><var>1.19</var>the operating payment rate from section 
         <statute_ref>256B.434</statute_ref>. For rate years beginning October 1, <br/>
<a id="pl.1.20"></a><var>1.20</var>2010; October 1, 2011; and October 1, 2012, no rate adjustments shall be implemented <br/>
<a id="pl.1.21"></a><var>1.21</var>under this section, but shall be determined under section 
<statute_ref>256B.434</statute_ref>. For the rate year <br/>
<a id="pl.1.22"></a><var>1.22</var>beginning October 1, 2010, the operating payment rate for each facility shall be 14 percent <br/>
<a id="pl.1.23"></a><var>1.23</var>of the operating payment rate from this section, and 86 percent of the operating payment <br/>
<a id="pl.1.24"></a><var>1.24</var>rate from section 
<statute_ref>256B.434</statute_ref>. For the rate year beginning October 1, 2011, the operating <br/>
<a id="pl.2.1"></a><var>2.1</var>payment rate for each facility shall be 31 percent of the operating payment rate from this <br/>
<a id="pl.2.2"></a><var>2.2</var>section, and 69 percent of the operating payment rate from section 
<statute_ref>256B.434</statute_ref>. For the rate <br/>
<a id="pl.2.3"></a><var>2.3</var>year beginning October 1, 2012, the operating payment rate for each facility shall be 48 <br/>
<a id="pl.2.4"></a><var>2.4</var>percent of the operating payment rate from this section, and 52 percent of the operating <br/>
<a id="pl.2.5"></a><var>2.5</var>payment rate from section 256B.434. For the rate year beginning October 1, 2013, the <br/>
<a id="pl.2.6"></a><var>2.6</var>operating payment rate for each facility shall be 65 percent of the operating payment rate <br/>
<a id="pl.2.7"></a><var>2.7</var>from this section, and 35 percent of the operating payment rate from section 
         <statute_ref>256B.434</statute_ref>. <br/>
<a id="pl.2.8"></a><var>2.8</var>For the rate year beginning October 1, 2014, the operating payment rate for each facility <br/>
<a id="pl.2.9"></a><var>2.9</var>shall be 82 percent of the operating payment rate from this section, and 18 percent of the <br/>
<a id="pl.2.10"></a><var>2.10</var>operating payment rate from section 
         <statute_ref>256B.434</statute_ref>. For the rate year beginning October 1, <br/>
<a id="pl.2.11"></a><var>2.11</var>2015, the operating payment rate for each facility shall be the operating payment rate <br/>
<a id="pl.2.12"></a><var>2.12</var>determined under this section. The blending of operating payment rates under this section <br/>
<a id="pl.2.13"></a><var>2.13</var>shall be performed separately for each RUG's class.<br/>
<a id="pl.2.14"></a><var>2.14</var>    (b) For the rate year beginning October 1, 2008, the commissioner shall apply limits <br/>
<a id="pl.2.15"></a><var>2.15</var>to the operating payment rate increases under paragraph (a) by creating a minimum <br/>
<a id="pl.2.16"></a><var>2.16</var>percentage increase and a maximum percentage increase.<br/>
<a id="pl.2.17"></a><var>2.17</var>    (1) Each nursing facility that receives a blended October 1, 2008, operating payment <br/>
<a id="pl.2.18"></a><var>2.18</var>rate increase under paragraph (a) of less than one percent, when compared to its operating <br/>
<a id="pl.2.19"></a><var>2.19</var>payment rate on September 30, 2008, computed using rates with RUG's weight of 
         <statute_ref>1.00</statute_ref>, <br/>
<a id="pl.2.20"></a><var>2.20</var>shall receive a rate adjustment of one percent.<br/>
<a id="pl.2.21"></a><var>2.21</var>    (2) The commissioner shall determine a maximum percentage increase that will <br/>
<a id="pl.2.22"></a><var>2.22</var>result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing <br/>
<a id="pl.2.23"></a><var>2.23</var>facilities with a blended October 1, 2008, operating payment rate increase under paragraph <br/>
<a id="pl.2.24"></a><var>2.24</var>(a) greater than the maximum percentage increase determined by the commissioner, when <br/>
<a id="pl.2.25"></a><var>2.25</var>compared to its operating payment rate on September 30, 2008, computed using rates with <br/>
<a id="pl.2.26"></a><var>2.26</var>a RUG's weight of 
         <statute_ref>1.00</statute_ref>, shall receive the maximum percentage increase.<br/>
<a id="pl.2.27"></a><var>2.27</var>    (3) Nursing facilities with a blended October 1, 2008, operating payment rate <br/>
<a id="pl.2.28"></a><var>2.28</var>increase under paragraph (a) greater than one percent and less than the maximum <br/>
<a id="pl.2.29"></a><var>2.29</var>percentage increase determined by the commissioner, when compared to its operating <br/>
<a id="pl.2.30"></a><var>2.30</var>payment rate on September 30, 2008, computed using rates with a RUG's weight of 
         <statute_ref>1.00</statute_ref>, <br/>
<a id="pl.2.31"></a><var>2.31</var>shall receive the blended October 1, 2008, operating payment rate increase determined <br/>
<a id="pl.2.32"></a><var>2.32</var>under paragraph (a).<br/>
<a id="pl.2.33"></a><var>2.33</var>    (4) The October 1, 2009, through October 1, 2015, operating payment rate for <br/>
<a id="pl.2.34"></a><var>2.34</var>facilities receiving the maximum percentage increase determined in clause (2) shall be <br/>
<a id="pl.2.35"></a><var>2.35</var>the amount determined under paragraph (a) less the difference between the amount <br/>
<a id="pl.3.1"></a><var>3.1</var>determined under paragraph (a) for October 1, 2008, and the amount allowed under clause <br/>
<a id="pl.3.2"></a><var>3.2</var>(2). This rate restriction does not apply to rate increases provided in any other section.<br/>
<a id="pl.3.3"></a><var>3.3</var>    (c) A portion of the funds received under this subdivision that are in excess of <br/>
<a id="pl.3.4"></a><var>3.4</var>operating payment rates that a facility would have received under section 
         <statute_ref>256B.434</statute_ref>, as <br/>
<a id="pl.3.5"></a><var>3.5</var>determined in accordance with clauses (1) to (3), shall be subject to the requirements in <br/>
<a id="pl.3.6"></a><var>3.6</var>section 
         <statute_ref>256B.434, subdivision 19</statute_ref>, paragraphs (b) to (h).<br/>
<a id="pl.3.7"></a><var>3.7</var>    (1) Determine the amount of additional funding available to a facility, which shall be <br/>
<a id="pl.3.8"></a><var>3.8</var>equal to total medical assistance resident days from the most recent reporting year times <br/>
<a id="pl.3.9"></a><var>3.9</var>the difference between the blended rate determined in paragraph (a) for the rate year being <br/>
<a id="pl.3.10"></a><var>3.10</var>computed and the blended rate for the prior year.<br/>
<a id="pl.3.11"></a><var>3.11</var>    (2) Determine the portion of all operating costs, for the most recent reporting year, <br/>
<a id="pl.3.12"></a><var>3.12</var>that are compensation related. If this value exceeds 75 percent, use 75 percent.<br/>
<a id="pl.3.13"></a><var>3.13</var>    (3) Subtract the amount determined in clause (2) from 75 percent.<br/>
<a id="pl.3.14"></a><var>3.14</var>    (4) The portion of the fund received under this subdivision that shall be subject to <br/>
<a id="pl.3.15"></a><var>3.15</var>the requirements in section 
         <statute_ref>256B.434, subdivision 19</statute_ref>, paragraphs (b) to (h), shall equal <br/>
<a id="pl.3.16"></a><var>3.16</var>the amount determined in clause (1) times the amount determined in clause (3).<br/>