1.1 	A bill for an act
1.2 	relating to human services; establishing criteria for the psychiatric residential 
1.3 	treatment facilities for persons younger than 21 years of age;amending Minnesota 
1.4 	Statutes 2016, sections 245.4889, subdivision 1; 256B.0625, subdivision 45a; 
1.5 	256B.0943, subdivision 13; proposing coding for new law in Minnesota Statutes, 
1.6 	chapter 256B.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2016, section 245.4889, subdivision 1, is amended to read:
1.9 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized to 
1.10 	make grants from available appropriations to assist:
1.11 	(1) counties;
1.12 	(2) Indian tribes;
1.13 	(3) children's collaboratives under section 124D.23 or 245.493; or
1.14 	(4) mental health service providers.
1.15 	(b) The following services are eligible for grants under this section:
1.16 	(1) services to children with emotional disturbances as defined in section 245.4871, 
1.17 	subdivision 15, and their families;
1.18 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
1.19 	age 21 and their families;
1.20 	(3) respite care services for children with severe emotional disturbances who are at risk 
1.21 	of out-of-home placement;
1.22 	(4) children's mental health crisis services;
2.1 	(5) mental health services for people from cultural and ethnic minorities;
2.2 	(6) children's mental health screening and follow-up diagnostic assessment and treatment;
2.3 	(7) services to promote and develop the capacity of providers to use evidence-based 
2.4 	practices in providing children's mental health services;
2.5 	(8) school-linked mental health services;
2.6 	(9) building evidence-based mental health intervention capacity for children birth to age 
2.7 	five;
2.8 	(10) suicide prevention and counseling services that use text messaging statewide;
2.9 	(11) mental health first aid training;
2.10 	(12) training for parents, collaborative partners, and mental health providers on the 
2.11 	impact of adverse childhood experiences and trauma and development of an interactive 
2.12 	Web site to share information and strategies to promote resilience and prevent trauma;
2.13 	(13) transition age services to develop or expand mental health treatment and supports 
2.14 	for adolescents and young adults 26 years of age or younger;
2.15 	(14) early childhood mental health consultation;
2.16 	(15) evidence-based interventions for youth at risk of developing or experiencing a first 
2.17 	episode of psychosis, and a public awareness campaign on the signs and symptoms of 
2.18 	psychosis; and
2.19 	(16) psychiatric consultation for primary care practitioners.; and
2.20 	(17) start-up funding to support providers in meeting program requirements and beginning 
2.21 	operations when establishing a new children's mental health program.
2.22 	(c) Services under paragraph (b) must be designed to help each child to function and 
2.23 	remain with the child's family in the community and delivered consistent with the child's 
2.24 	treatment plan. Transition services to eligible young adults under paragraph (b) must be 
2.25 	designed to foster independent living in the community.

2.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.27 	Sec. 2. Minnesota Statutes 2016, section 256B.0625, subdivision 45a, is amended to read:
2.28 		Subd. 45a.Psychiatric residential treatment facility services for persons under 21 
2.29 	years of age. (a) Medical assistance covers psychiatric residential treatment facility services, 
2.30 	according to section 256B.0941, for persons under younger than 21 years of age. Individuals 
3.1 	who reach age 21 at the time they are receiving services are eligible to continue receiving 
3.2 	services until they no longer require services or until they reach age 22, whichever occurs 
3.3 	first.
3.4 	(b) For purposes of this subdivision, "psychiatric residential treatment facility" means 
3.5 	a facility other than a hospital that provides psychiatric services, as described in Code of 
3.6 	Federal Regulations, title 42, sections 441.151 to 441.182, to individuals under age 21 in 
3.7 	an inpatient setting.
3.8 	(c) The commissioner shall develop admissions and discharge procedures and establish 
3.9 	rates consistent with guidelines from the federal Centers for Medicare and Medicaid Services.
3.10 	(d) The commissioner shall enroll up to 150 certified psychiatric residential treatment 
3.11 	facility services beds at up to six sites. The commissioner shall select psychiatric residential 
3.12 	treatment facility services providers through a request for proposals process. Providers of 
3.13 	state-operated services may respond to the request for proposals.

3.14 	Sec. 3. [256B.0941] PSYCHIATRIC RESIDENTIAL TREATMENT FACILITY 
3.15 	FOR PERSONS UNDER 21 YEARS OF AGE.
3.16 		Subdivision 1.Eligibility. (a) An individual who is eligible for mental health treatment 
3.17 	services in a psychiatric residential treatment facility must meet all of the following criteria:
3.18 	(1) before admission, services are determined to be medically necessary by the state's 
3.19 	medical review agent according to Code of Federal Regulations, title 42, section 441.152;
3.20 	(2) is younger than 21 years of age at the time of admission. Services may continue until 
3.21 	the individual meets criteria for discharge or reaches 22 years of age, whichever occurs 
3.22 	first;
3.23 	(3) has a mental health diagnosis as defined in the most recent edition of the Diagnostic 
3.24 	and Statistical Manual for Mental Disorders, as well as clinical evidence of severe aggression, 
3.25 	or a finding that the individual is a risk to self or others;
3.26 	(4) has functional impairment and a history of difficulty in functioning safely and 
3.27 	successfully in the community, school, home, or job; an inability to adequately care for 
3.28 	one's physical needs; or caregivers, guardians, or family members are unable to safely fulfill 
3.29 	the individual's needs;
3.30 	(5) requires psychiatric residential treatment under the direction of a physician to improve 
3.31 	the individual's condition or prevent further regression so that services will no longer be 
3.32 	needed;
4.1 	(6) utilized and exhausted other community-based mental health services, or clinical 
4.2 	evidence indicates that such services cannot provide the level of care needed; and
4.3 	(7) was referred for treatment in a psychiatric residential treatment facility by a qualified 
4.4 	mental health professional licensed as defined in section 245.4871, subdivision 27, clauses 
4.5 	(1) to (6).
4.6 	(b) A mental health professional making a referral shall submit documentation to the 
4.7 	state's medical review agent containing all information necessary to determine medical 
4.8 	necessity, including a standard diagnostic assessment completed within 180 days of the 
4.9 	individual's admission. Documentation shall include evidence of family participation in the 
4.10 	individual's treatment planning and signed consent for services.
4.11 		Subd. 2.Services. Psychiatric residential treatment facility service providers must offer 
4.12 	and have the capacity to provide the following services:
4.13 	(1) development of the individual plan of care, review of the individual plan of care 
4.14 	every 30 days, and discharge planning by required members of the treatment team according 
4.15 	to Code of Federal Regulations, title 42, sections 441.155 to 441.156;
4.16 	(2) any services provided by a psychiatrist or physician for development of an individual 
4.17 	plan of care, conducting a review of the individual plan of care every 30 days, and discharge 
4.18 	planning by required members of the treatment team according to Code of Federal 
4.19 	Regulations, title 42, sections 441.155 to 441.156;
4.20 	(3) active treatment seven days per week that may include individual, family, or group 
4.21 	therapy as determined by the individual care plan;
4.22 	(4) individual therapy, provided a minimum of twice per week;
4.23 	(5) family engagement activities, provided a minimum of once per week;
4.24 	(6) consultation with other professionals, including case managers, primary care 
4.25 	professionals, community-based mental health providers, school staff, or other support 
4.26 	planners;
4.27 	(7) coordination of educational services between local and resident school districts and 
4.28 	the facility;
4.29 	(8) 24-hour nursing; and
4.30 	(9) direct care and supervision, supportive services for daily living and safety, and 
4.31 	positive behavior management.
5.1 		Subd. 3.Per diem rate. (a) The commissioner shall establish a statewide per diem rate 
5.2 	for psychiatric residential treatment facility services for individuals 21 years of age or 
5.3 	younger. The rate for a provider must not exceed the rate charged by that provider for the 
5.4 	same service to other payers. Payment must not be made to more than one entity for each 
5.5 	individual for services provided under this section on a given day. The commissioner shall 
5.6 	set rates prospectively for the annual rate period. The commissioner shall require providers 
5.7 	to submit annual cost reports on a uniform cost reporting form and shall use submitted cost 
5.8 	reports to inform the rate-setting process. The cost reporting shall be done according to 
5.9 	federal requirements for Medicare cost reports.
5.10 	(b) The following are included in the rate:
5.11 	(1) costs necessary for licensure and accreditation, meeting all staffing standards for 
5.12 	participation, meeting all service standards for participation, meeting all requirements for 
5.13 	active treatment, maintaining medical records, conducting utilization review, meeting 
5.14 	inspection of care, and discharge planning. The direct services costs must be determined 
5.15 	using the actual cost of salaries, benefits, payroll taxes, and training of direct services staff 
5.16 	and service-related transportation; and
5.17 	(2) payment for room and board provided by facilities meeting all accreditation and 
5.18 	licensing requirements for participation.
5.19 	(c) A facility may submit a claim for payment outside of the per diem for professional 
5.20 	services arranged by and provided at the facility by an appropriately licensed professional 
5.21 	who is enrolled as a provider with Minnesota health care programs. Arranged services must 
5.22 	be billed by the facility on a separate claim, and the facility shall be responsible for payment 
5.23 	to the provider. These services must be included in the individual plan of care and are subject 
5.24 	to prior authorization by the state's medical review agent.
5.25 	(d) Medicaid shall reimburse for concurrent services as approved by the commissioner 
5.26 	to support continuity of care and successful discharge from the facility. "Concurrent services" 
5.27 	means services provided by another entity or provider while the individual is admitted to a 
5.28 	psychiatric residential treatment facility. Payment for concurrent services may be limited 
5.29 	and these services are subject to prior authorization by the state's medical review agent. 
5.30 	Concurrent services may include targeted case management, assertive community treatment, 
5.31 	clinical care consultation, team consultation, and treatment planning.
5.32 	(e) Payment rates under this subdivision shall not include the costs of providing the 
5.33 	following services:
5.34 	(1) educational services;
6.1 	(2) acute medical care or specialty services for other medical conditions;
6.2 	(3) dental services; and
6.3 	(4) pharmacy drug costs.
6.4 	(f) For purposes of this section, "actual cost" means costs that are allowable, allocable, 
6.5 	reasonable, and consistent with federal reimbursement requirements in Code of Federal 
6.6 	Regulations, title 48, chapter 1, part 31, relating to for-profit entities, and the Office of 
6.7 	Management and Budget Circular Number A-122, relating to nonprofit entities.
6.8 		Subd. 4.Leave days. (a) Medical assistance covers therapeutic and hospital leave days, 
6.9 	provided the recipient was not discharged from the psychiatric residential treatment facility 
6.10 	and is expected to return to the psychiatric residential treatment facility. A reserved bed 
6.11 	must be held for a recipient on hospital leave or therapeutic leave.
6.12 	(b) A therapeutic leave day to home shall be used to prepare for discharge and 
6.13 	reintegration and shall be included in the individual plan of care. The state shall reimburse 
6.14 	75 percent of the per diem rate for a reserve bed day while the recipient is on therapeutic 
6.15 	leave. A therapeutic leave visit may not exceed three days without prior authorization.
6.16 	(c) A hospital leave day shall be a day for which a recipient has been admitted to a 
6.17 	hospital for medical or acute psychiatric care and is temporarily absent from the psychiatric 
6.18 	residential treatment facility. The state shall reimburse 50 percent of the per diem rate for 
6.19 	a reserve bed day while the recipient is receiving medical or psychiatric care in a hospital.

6.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

6.21 	Sec. 4. Minnesota Statutes 2016, section 256B.0943, subdivision 13, is amended to read:
6.22 		Subd. 13.Exception to excluded services. Notwithstanding subdivision 12, up to 15 
6.23 	hours of children's therapeutic services and supports provided within a six-month period to 
6.24 	a child with severe emotional disturbance who is residing in a hospital; a group home as 
6.25 	defined in Minnesota Rules, parts 2960.0130 to 2960.0220; a residential treatment facility 
6.26 	licensed under Minnesota Rules, parts 2960.0580 to 2960.0690; a psychiatric residential 
6.27 	treatment facility under section 256B.0625, subdivision 45a; a regional treatment center; 
6.28 	or other institutional group setting or who is participating in a program of partial 
6.29 	hospitalization are eligible for medical assistance payment if part of the discharge plan.