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Office of the Revisor of Statutes

HF 3571

1st Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:29 p.m.

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers
1.1A bill for an act 1.2relating to human services; authorizing a rate increase for publicly owned 1.3nursing facilities; requiring a local share of nonfederal medical assistance costs; 1.4amending Minnesota Statutes 2008, sections 256B.19, by adding a subdivision; 1.5256B.441, by adding a subdivision. 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7    Section 1. Minnesota Statutes 2008, section 256B.19, is amended by adding a 1.8subdivision to read: 1.9    new text begin Subd. 1e.new text end new text begin Additional local share of certain nursing facility costs.new text end new text begin Beginning new text end 1.10new text begin January 1, 2011, local government entities that own the physical plant or are the license new text end 1.11new text begin holder of nursing facilities receiving rate adjustments under section 256B.441, subdivision new text end 1.12new text begin 55a, shall be responsible for paying the portion of nonfederal costs calculated under new text end 1.13new text begin section 256B.441, subdivision 55a, paragraph (d). Payments of the nonfederal share new text end 1.14new text begin shall be made monthly to the commissioner in amounts determined in accordance with new text end 1.15new text begin section 256B.441, subdivision 55a, paragraph (d). Payments for each month beginning new text end 1.16new text begin in January 2011 through September 2015 shall be due by the 15th day of the following new text end 1.17new text begin month. If any provider obligated to pay an amount under this subdivision is more than two new text end 1.18new text begin months delinquent in the timely payment of the monthly installment, the commissioner new text end 1.19new text begin may withhold payments, penalties, and interest in accordance with the methods outlined in new text end 1.20new text begin section 256.9657, subdivision 7a.new text end 1.21    Sec. 2. Minnesota Statutes 2008, section 256B.441, is amended by adding a 1.22subdivision to read: 1.23    new text begin Subd. 55a.new text end new text begin Alternative to phase-in for publicly owned nursing facilities.new text end new text begin (a) For new text end 1.24new text begin operating payment rates implemented between January 1, 2011, and September 30, 2015, new text end 2.1new text begin the commissioner shall allow nursing facilities whose physical plant is owned or whose new text end 2.2new text begin license is held by a city, county, or hospital district to apply for a higher payment rate new text end 2.3new text begin under this section if the local government entity agrees to pay a specified portion of the new text end 2.4new text begin nonfederal share of medical assistance costs. Nursing facilities that apply shall be eligible new text end 2.5new text begin for a payment rate up to the rate calculated in subdivision 54, without application of the new text end 2.6new text begin phase-in under subdivision 55.new text end 2.7new text begin (b) Rates determined under this subdivision shall take effect beginning January 1, new text end 2.8new text begin 2011, based on cost reports for the rate year ending September 30, 2009, and in future rate new text end 2.9new text begin years, rates determined for nursing facilities participating under this subdivision shall take new text end 2.10new text begin effect on October 1 of each year, based on the most recent available cost report.new text end 2.11new text begin (c) Eligible nursing facilities that wish to participate under this subdivision shall new text end 2.12new text begin make an application to the commissioner by September 30, 2010. Participation under this new text end 2.13new text begin subdivision is irrevocable. If paragraph (a) does not result in a rate greater than what new text end 2.14new text begin would have been provided without application of this subdivision, a facility's rates shall be new text end 2.15new text begin calculated as otherwise provided and no payment by the local government entity shall new text end 2.16new text begin be required under paragraph (d).new text end 2.17new text begin (d) For each participating nursing facility, the public entity that owns the physical new text end 2.18new text begin plant or is the license holder of the nursing facility shall pay to the state the entire new text end 2.19new text begin nonfederal share of medical assistance payments received as a result of the difference new text end 2.20new text begin between the nursing facility's payment rate under subdivision 54 and the rate that the new text end 2.21new text begin nursing facility would otherwise be paid under subdivision 55 as determined by the new text end 2.22new text begin commissioner.new text end 2.23new text begin (e) The commissioner may, at any time, reduce the payments under this subdivision new text end 2.24new text begin based on the commissioner's determination that the payments shall cause nursing facility new text end 2.25new text begin rates to exceed the state's Medicare upper payment limit or any other federal limitation. If new text end 2.26new text begin the commissioner determines a reduction is necessary, the commissioner shall reduce all new text end 2.27new text begin payment rates for participating nursing facilities by a percentage applied to the amount of new text end 2.28new text begin increase they would otherwise receive under this subdivision and shall notify participating new text end 2.29new text begin facilities of the reductions. If payments to a nursing facility are reduced, payments under new text end 2.30new text begin section 256B.19, subdivision 1e, shall be reduced accordingly.new text end