Introduction - 94th Legislature (2025 - 2026)
Posted on 07/18/2025 01:28 p.m.
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Introduction
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Posted on 02/06/2025 |
A bill for an act
relating to human services; modifying enhanced rates for community first services
and supports; establishing professional competency and shift wage differential
enhanced payment rates for community first services and supports; eliminating
medical assistance asset limits for former recipients of medical assistance for
employed persons with disabilities who are 65 and older; eliminating medical
assistance premiums for employed persons with disabilities; providing for
reimbursement of community first services and supports provided in acute care
hospital settings; amending Minnesota Statutes 2024, sections 256B.056,
subdivision 3; 256B.057, subdivision 9; 256B.85, subdivisions 7a, 16; 256B.851,
subdivisions 1, 3, 4, 5, 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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This act may be cited as the "Damon Leivestad Direct Care Sustainability Act."
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 256B.056, subdivision 3, is amended to read:
(a) To be eligible for medical
assistance, a person must not individually own more than $3,000 in assets, or if a member
of a household with two family members, spouses, or parent and child, the household must
not own more than $6,000 in assets, plus $200 for each additional legal dependent. In
addition to these maximum amounts, an eligible individual or family may accrue interest
on these amounts, but they must be reduced to the maximum at the time of an eligibility
redetermination. The accumulation of the clothing and personal needs allowance according
to section 256B.35 must also be reduced to the maximum at the time of the eligibility
redetermination. The value of assets that are not considered in determining eligibility for
medical assistance is the value of those assets excluded under the Supplemental Security
Income program for aged, blind, and disabled persons, with the following exceptions:
(1) household goods and personal effects are not considered;
(2) capital and operating assets of a trade or business that the local agency determines
are necessary to the person's ability to earn an income are not considered;
(3) motor vehicles are excluded to the same extent excluded by the Supplemental Security
Income program;
(4) assets designated as burial expenses are excluded to the same extent excluded by the
Supplemental Security Income program. Burial expenses funded by annuity contracts or
life insurance policies must irrevocably designate the individual's estate as contingent
beneficiary to the extent proceeds are not used for payment of selected burial expenses;
(5) for a person new text begin age 64 years or younger new text end who no longer qualifies as an employed person
with a disability due to loss of earnings, assets allowed while eligible for medical assistance
under section 256B.057, subdivision 9, are not considered for 12 months, beginning with
the first month of ineligibility as an employed person with a disability;
(6) deleted text begin a designated employment incentives asset account is disregarded when determining
eligibility for medical assistancedeleted text end for a person age 65 years or older deleted text begin under section 256B.055,
subdivision 7. An employment incentives asset account must only be designated by a person
who has been enrolled in medical assistance under section 256B.057, subdivision 9, for a
24-consecutive-month period. A designated employment incentives asset account contains
qualified assets owned by the person in the last month of enrollment in medical assistance
under section 256B.057, subdivision 9. Qualified assets include retirement and pension
accounts, medical expense accounts, and up to $17,000 of the person's other nonexcluded
liquid assets. An employment incentives asset account is no longer designated when a person
loses medical assistance eligibility for a calendar month or more before turning age 65. A
person who loses medical assistance eligibility before age 65 can establish a new designated
employment incentives asset account by establishing a new 24-consecutive-month period
of enrollment under section 256B.057, subdivision 9.deleted text end new text begin who no longer qualifies as an employed
person with a disability due to loss of earnings and who had been enrolled in medical
assistance under section 256B.057, subdivision 9, for a 24-consecutive-month period
immediately prior to an initial eligibility determination under section 256B.055, subdivision
7, assets allowed while eligible for medical assistance under section 256B.057, subdivision
9, are not considered at the time of an eligibility determination or at the time of a subsequent
eligibility redetermination.new text end Persons eligible under this clause are not subject to the provisions
in section 256B.059; and
(7) effective July 1, 2009, certain assets owned by American Indians are excluded as
required by section 5006 of the American Recovery and Reinvestment Act of 2009, Public
Law 111-5. For purposes of this clause, an American Indian is any person who meets the
definition of Indian according to Code of Federal Regulations, title 42, section 447.50.
(b) No asset limit shall apply to persons eligible under sections 256B.055, subdivision
15, and 256B.057, subdivision 9.
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This section is effective January 1, 2026, or upon federal approval,
whichever occurs later. The commissioner of human services shall notify the revisor of
statutes when federal approval is obtained.
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Minnesota Statutes 2024, section 256B.057, subdivision 9, is amended to read:
(a) Medical assistance may be paid for
a person who is employed and whodeleted text begin :
deleted text end
deleted text begin (1)deleted text end but for excess earnings or assets meets the definition of disabled under the
Supplemental Security Income programdeleted text begin ; anddeleted text end new text begin .
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(2) pays a premium and other obligations under paragraph (d).
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(b) For purposes of eligibility, there is a $65 earned income disregard. To be eligible
for medical assistance under this subdivision, a person must have more than $65 of earned
income, be receiving an unemployment insurance benefit under chapter 268 that the person
began receiving while eligible under this subdivision, or be receiving family and medical
leave benefits under chapter 268B that the person began receiving while eligible under this
subdivision. A person who is self-employed must file and pay all applicable taxes. Any
spousal income shall be disregarded for purposes of eligibility deleted text begin and premiumdeleted text end determinations.
(c) After the month of enrollment, a person enrolled in medical assistance under this
subdivision who would otherwise be ineligible and be disenrolled due to one of the following
circumstances may retain eligibility for up to four consecutive months after a month of job
loss if the person:
(1) is temporarily unable to work and without receipt of earned income due to a medical
condition, as verified by a physician, advanced practice registered nurse, or physician
assistant; or
(2) loses employment for reasons not attributable to the enrollee, and is without receipt
of earned income.
To receive a four-month extension of continued eligibility under this paragraph, enrollees
must verify the medical condition or provide notification of job loss,new text begin andnew text end continue to meet
all other eligibility requirementsdeleted text begin , and continue to pay all calculated premium costsdeleted text end .
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(d) All enrollees must pay a premium to be eligible for medical assistance under this
subdivision, except as provided under clause (5).
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(1) An enrollee must pay the greater of a $35 premium or the premium calculated based
on the person's gross earned and unearned income and the applicable family size using a
sliding fee scale established by the commissioner, which begins at one percent of income
at 100 percent of the federal poverty guidelines and increases to 7.5 percent of income for
those with incomes at or above 300 percent of the federal poverty guidelines.
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(2) Annual adjustments in the premium schedule based upon changes in the federal
poverty guidelines shall be effective for premiums due in July of each year.
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(3) All enrollees who receive unearned income must pay one-half of one percent of
unearned income in addition to the premium amount, except as provided under clause (5).
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(4) Increases in benefits under title II of the Social Security Act shall not be counted as
income for purposes of this subdivision until July 1 of each year.
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(5) Effective July 1, 2009, American Indians are exempt from paying premiums as
required by section 5006 of the American Recovery and Reinvestment Act of 2009, Public
Law 111-5. For purposes of this clause, an American Indian is any person who meets the
definition of Indian according to Code of Federal Regulations, title 42, section 447.50.
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deleted text begin (e)deleted text end new text begin (d)new text end A person's eligibility deleted text begin and premiumdeleted text end shall be determined by the local county agency.
deleted text begin Premiums must be paid to the commissioner. All premiums are dedicated to the
commissioner.
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deleted text begin (f) Any required premium shall be determined at application and redetermined at the
enrollee's 12-month income review or when a change in income or household size is reported.deleted text end new text begin
(e)new text end Enrollees must report any change in income or household size within 30 days of when
the change occurs. deleted text begin A decreased premium resulting from a reported change in income or
household size shall be effective the first day of the next available billing month after the
change is reported. Except for changes occurring from annual cost-of-living increases, a
change resulting in an increased premium shall not affect the premium amount until the
next 12-month review.
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(g) Premium payment is due upon notification from the commissioner of the premium
amount required. Premiums may be paid in installments at the discretion of the commissioner.
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(h) Nonpayment of the premium shall result in denial or termination of medical assistance
unless the person demonstrates good cause for nonpayment. "Good cause" means an excuse
for the enrollee's failure to pay the required premium when due because the circumstances
were beyond the enrollee's control or not reasonably foreseeable. The commissioner shall
determine whether good cause exists based on the weight of the supporting evidence
submitted by the enrollee to demonstrate good cause. Except when an installment agreement
is accepted by the commissioner, all persons disenrolled for nonpayment of a premium must
pay any past due premiums as well as current premiums due prior to being reenrolled.
Nonpayment shall include payment with a returned, refused, or dishonored instrument. The
commissioner may require a guaranteed form of payment as the only means to replace a
returned, refused, or dishonored instrument.
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deleted text begin (i)deleted text end new text begin (f)new text end For enrollees whose income does not exceed 200 percent of the federal poverty
guidelines and who are also enrolled in Medicare, the commissioner shall reimburse the
enrollee for Medicare part B premiums under section 256B.0625, subdivision 15, paragraph
(a).
deleted text begin (j)deleted text end new text begin (g)new text end The commissioner is authorized to determine that a premium amount new text begin previously
required under this subdivision new text end was calculated or billed in error, make corrections to financial
records and billing systems, and refund premiums collected in error.new text begin The commissioner
must permit any individual who was disenrolled for nonpayment of premiums previously
required under this subdivision to reapply for medical assistance under this subdivision and,
if eligible, to reenroll the individual without requiring the individual to pay past due
premiums.
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This section is effective January 1, 2026, or upon federal approval,
whichever occurs later. The commissioner of human services shall notify the revisor of
statutes when federal approval is obtained.
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Minnesota Statutes 2024, section 256B.85, subdivision 7a, is amended to read:
(a) deleted text begin An enhanced rate of 107.5 percent of the rate paid
for CFSSdeleted text end new text begin The following enhanced rate componentsnew text end must be deleted text begin paiddeleted text end new text begin appliednew text end for deleted text begin services provided
to persons who qualify for ten or more hours of CFSS per day when provided by a support
worker who meets the requirements ofdeleted text end new text begin CFSS that qualify for an enhanced rate undernew text end
subdivision 16, paragraph (e)deleted text begin .deleted text end new text begin :
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(1) for CFSS provided to persons who qualify for ten to 14.9 hours of CFSS per day,
7.5 percent;
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(2) for CFSS provided to persons who qualify for 15 to 19.9 hours of CFSS per day,
12.5 percent; and
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(3) for CFSS provided to persons who qualify for 20 or more hours of CFSS per day,
17.5 percent.
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(b) The following enhanced rate components must be applied:
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(1) for CFSS provided to persons who qualify for any number of hours of CFSS per day
when provided by an individual who is a licensed registered nurse, a licensed practical
nurse, a certified home health aide, or a certified nursing assistant, 25 percent;
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(2) for CFSS provided over a weekend to persons who qualify for any number of hours
of CFSS per day when provided between the hours of 8 p.m. on a Friday and 8 a.m. the
following Monday, ten percent; and
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(3) for CFSS provided overnight to persons who qualify for any number of hours of
CFSS per day when provided between 10 p.m. and 6 a.m., ten percent.
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deleted text begin (b)deleted text end new text begin (c)new text end An agency provider must use all additional revenue attributable to the rate
enhancements under this subdivision for the wages and wage-related costs of the support
workers, including any corresponding increase in the employer's share of FICA taxes,
Medicare taxes, state and federal unemployment taxes, and workers' compensation premiums.
The agency provider must not use the additional revenue attributable to any enhanced rate
under this subdivision to pay for mileage reimbursement, health and dental insurance, life
insurance, disability insurance, long-term care insurance, uniform allowance, contributions
to employee retirement accounts, or any other employee benefits.
deleted text begin (c)deleted text end new text begin (d)new text end Any change in the eligibility criteria for the enhanced rate for CFSS as described
in this subdivision and referenced in subdivision 16, paragraph (e), does not constitute a
change in a term or condition for individual providers as defined in section 256B.0711, and
is not subject to the state's obligation to meet and negotiate under chapter 179A.
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This section is effective January 1, 2026, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when federal approval is obtained.
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Minnesota Statutes 2024, section 256B.85, subdivision 16, is amended to read:
(a) Support workers shall:
(1) enroll with the department as a support worker after a background study under chapter
245C has been completed and the support worker has received a notice from the
commissioner that the support worker:
(i) is not disqualified under section 245C.14; or
(ii) is disqualified, but has received a set-aside of the disqualification under section
245C.22;
(2) have the ability to effectively communicate with the participant or the participant's
representative;
(3) have the skills and ability to provide the services and supports according to the
participant's CFSS service delivery plan and respond appropriately to the participant's needs;
(4) complete the basic standardized CFSS training as determined by the commissioner
before completing enrollment. The training must be available in languages other than English
and to those who need accommodations due to disabilities. CFSS support worker training
must include successful completion of the following training components: basic first aid,
vulnerable adult, child maltreatment, OSHA universal precautions, basic roles and
responsibilities of support workers including information about basic body mechanics,
emergency preparedness, orientation to positive behavioral practices, orientation to
responding to a mental health crisis, fraud issues, time cards and documentation, and an
overview of person-centered planning and self-direction. Upon completion of the training
components, the support worker must pass the certification test to provide assistance to
participants;
(5) complete employer-directed training and orientation on the participant's individual
needs;
(6) maintain the privacy and confidentiality of the participant; and
(7) not independently determine the medication dose or time for medications for the
participant.
(b) The commissioner may deny or terminate a support worker's provider enrollment
and provider number if the support worker:
(1) does not meet the requirements in paragraph (a);
(2) fails to provide the authorized services required by the employer;
(3) has been intoxicated by alcohol or drugs while providing authorized services to the
participant or while in the participant's home;
(4) has manufactured or distributed drugs while providing authorized services to the
participant or while in the participant's home; or
(5) has been excluded as a provider by the commissioner of human services, or by the
United States Department of Health and Human Services, Office of Inspector General, from
participation in Medicaid, Medicare, or any other federal health care program.
(c) A support worker may appeal in writing to the commissioner to contest the decision
to terminate the support worker's provider enrollment and provider number.
(d) A support worker must not provide or be paid for more than 310 hours of CFSS per
month, regardless of the number of participants the support worker serves or the number
of agency-providers or participant employers by which the support worker is employed.
The department shall not disallow the number of hours per day a support worker works
unless it violates other law.
(e) CFSS qualify for deleted text begin andeleted text end new text begin thenew text end enhanced deleted text begin ratedeleted text end new text begin rates described in subdivision 7a, paragraph
(a),new text end if the support worker providing the services:
(1) provides services, within the scope of CFSS described in subdivision 7, to a participant
who qualifies for ten or more hours per day of CFSS; and
(2) satisfies the current requirements of Medicare for training and competency or
competency evaluation of home health aides or nursing assistants, as provided in the Code
of Federal Regulations, title 42, section 483.151 or 484.36, or alternative state-approved
training or competency requirements.
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This section is effective January 1, 2026, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when federal approval is obtained.
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Minnesota Statutes 2024, section 256B.851, subdivision 1, is amended to read:
(a) The payment methodologies in this section apply todeleted text begin :
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deleted text begin (1)deleted text end community first services and supports (CFSS), extended CFSS, and enhanced rate
CFSS under section 256B.85deleted text begin ; anddeleted text end new text begin , subdivision 7a.
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(2) personal care assistance services under section 256B.0625, subdivisions 19a and
19c; extended personal care assistance services as defined in section 256B.0659, subdivision
1; and enhanced rate personal care assistance services under section 256B.0659, subdivision
17a.
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(b) This section does not change existing deleted text begin personal care assistance program ordeleted text end community
first services and supports policies and procedures.
new text begin
This section is effective January 1, 2026, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when federal approval is obtained.
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Minnesota Statutes 2024, section 256B.851, subdivision 3, is amended to read:
When initially establishing the base wage
component values, the commissioner must use the Minnesota-specific median wage for the
standard occupational classification (SOC) codes published by the Bureau of Labor Statistics
in the edition of the Occupational Handbook published in March 2021. The commissioner
must calculate the base wage component values as follows deleted text begin fordeleted text end :
(1) deleted text begin personal care assistance services,deleted text end new text begin fornew text end CFSSdeleted text begin , extended personal care assistance services,deleted text end
and extended CFSSdeleted text begin .deleted text end new text begin ,new text end the base wage component value equals the median wage for personal
care aide (SOC code 31-1120);
(2) deleted text begin enhanced rate personal care assistance services anddeleted text end new text begin fornew text end enhanced rate CFSSdeleted text begin .deleted text end new text begin ,new text end the
base wage component value equals the product of median wage for personal care aide (SOC
code 31-1120) and new text begin one plus new text end the deleted text begin value of thedeleted text end new text begin sum of the applicablenew text end enhanced rate new text begin components
new text end under section deleted text begin 256B.0659, subdivision 17adeleted text end new text begin 256B.85, subdivision 7anew text end ; and
(3) new text begin for new text end qualified professional services and CFSS worker training and developmentdeleted text begin .deleted text end new text begin ,new text end the
base wage component value equals the sum of 70 percent of the median wage for registered
nurse (SOC code 29-1141), 15 percent of the median wage for health care social worker
(SOC code 21-1099), and 15 percent of the median wage for social and human service
assistant (SOC code 21-1093).
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This section is effective January 1, 2026, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when federal approval is obtained.
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Minnesota Statutes 2024, section 256B.851, subdivision 4, is amended to read:
(a) The commissioner must multiply the
base wage component values in subdivision 3 by one plus the appropriate competitive
workforce factor. The product is the total wage component value.
(b) For deleted text begin personal care assistance services,deleted text end CFSS, deleted text begin extended personal care assistance
services,deleted text end extended CFSS, deleted text begin enhanced rate personal care assistance services,deleted text end and enhanced
rate CFSS, the initial competitive workforce factor is 4.7 percent.
(c) For qualified professional services and CFSS worker training and development, the
competitive workforce factor is zero percent.
new text begin
This section is effective January 1, 2026, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when federal approval is obtained.
new text end
Minnesota Statutes 2024, section 256B.851, subdivision 5, is amended to read:
(a) The commissioner must use the
following component values:
(1) employee vacation, sick, and training factor, 8.71 percent;
(2) employer taxes and workers' compensation factor, 11.56 percent;
(3) employee benefits factor, 12.04 percent;
(4) client programming and supports factor, 2.30 percent;
(5) program plan support factor, 7.00 percent;
(6) general business and administrative expenses factor, 13.25 percent;
(7) program administration expenses factor, 2.90 percent; and
(8) absence and utilization factor, 3.90 percent.
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(b) For purposes of implementation, the commissioner shall use the following
implementation components:
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(1) personal care assistance services and CFSS: 88.19 percent;
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(2) enhanced rate personal care assistance services and enhanced rate CFSS: 88.19
percent; and
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(3) qualified professional services and CFSS worker training and development: 88.19
percent.
deleted text end
deleted text begin (c) Effective January 1, 2025,deleted text end new text begin (b)new text end For purposes of implementation, the commissioner
shall use the following implementation components:
(1) deleted text begin personal care assistance services anddeleted text end CFSS: 92.08 percent;
(2) deleted text begin enhanced rate personal care assistance services anddeleted text end enhanced rate CFSS: 92.08
percent; and
(3) qualified professional services and CFSS worker training and development: 92.08
percent.
deleted text begin (d)deleted text end new text begin (c)new text end The commissioner shall use the following worker retention components:
(1) for workers who have provided fewer than 1,001 cumulative hours in personal care
assistance services or CFSS, the worker retention component is zero percent;
(2) for workers who have provided between 1,001 and 2,000 cumulative hours in personal
care assistance services or CFSS, the worker retention component is 2.17 percent;
(3) for workers who have provided between 2,001 and 6,000 cumulative hours in personal
care assistance services or CFSS, the worker retention component is 4.36 percent;
(4) for workers who have provided between 6,001 and 10,000 cumulative hours in
personal care assistance services or CFSS, the worker retention component is 7.35 percent;
and
(5) for workers who have provided more than 10,000 cumulative hours in personal care
assistance services or CFSS, the worker retention component is 10.81 percent.
deleted text begin (e)deleted text end new text begin (d)new text end The commissioner shall define the appropriate worker retention component based
on the total number of units billed for services rendered by the individual provider since
July 1, 2017. The worker retention component must be determined by the commissioner
for each individual provider and is not subject to appeal.
new text begin
This section is effective January 1, 2026, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when federal approval is obtained.
new text end
Minnesota Statutes 2024, section 256B.851, subdivision 6, is amended to read:
(a) The commissioner must determine
the rate for deleted text begin personal care assistance services,deleted text end CFSS, deleted text begin extended personal care assistance
services,deleted text end extended CFSS, deleted text begin enhanced rate personal care assistance services,deleted text end enhanced rate
CFSS, qualified professional services, and CFSS worker training and development as
follows:
(1) multiply the appropriate total wage component value calculated in subdivision 4 by
one plus the employee vacation, sick, and training factor in subdivision 5;
(2) for program plan support, multiply the result of clause (1) by one plus the program
plan support factor in subdivision 5;
(3) for employee-related expenses, add the employer taxes and workers' compensation
factor in subdivision 5 and the employee benefits factor in subdivision 5. The sum is
employee-related expenses. Multiply the product of clause (2) by one plus the value for
employee-related expenses;
(4) for client programming and supports, multiply the product of clause (3) by one plus
the client programming and supports factor in subdivision 5;
(5) for administrative expenses, add the general business and administrative expenses
factor in subdivision 5, the program administration expenses factor in subdivision 5, and
the absence and utilization factor in subdivision 5;
(6) divide the result of clause (4) by one minus the result of clause (5). The quotient is
the hourly rate;
(7) multiply the hourly rate by the appropriate implementation component under
subdivision 5. This is the adjusted hourly rate; and
(8) divide the adjusted hourly rate by four. The quotient is the total adjusted payment
rate.
(b) In processing claims, the commissioner shall incorporate the worker retention
component specified in subdivision 5, by multiplying one plus the total adjusted payment
rate by the appropriate worker retention component under subdivision 5, paragraph (d).
(c) The commissioner must publish the total final payment rates.
new text begin
This section is effective January 1, 2026, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when federal approval is obtained.
new text end
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(a) The commissioner of human services must seek to amend Minnesota's federally
approved community first services and supports program, authorized under United States
Code, title 42, sections 1915(i) and 1915(k), to reimburse for delivery of community first
services and supports under Minnesota Statutes, sections 256B.85 and 256B.851, during
an acute care stay in an acute care hospital setting that does not have the effect of isolating
individuals receiving community first services and supports from the broader community
of individuals not receiving community first services and supports, as permitted under Code
of Federal Regulations, title 42, section 441.530.
new text end
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(b) Reimbursed services must:
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(1) be identified in an individual's person-centered support plan as required under
Minnesota Statutes, section 256B.0911;
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(2) be provided to meet the needs of the person that are not met through the provision
of hospital services;
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new text begin
(3) not substitute services that the hospital is obligated to provide as required under state
and federal law; and
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(4) be designed to preserve the person's functional abilities during a hospital stay for
acute care and to ensure smooth transitions between acute care settings and home and
community-based settings.
new text end
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Paragraph (a) is effective the day following final enactment.
Paragraph (b) is effective January 1, 2026, or upon federal approval, whichever is later. The
commissioner of human services shall notify the revisor of statutes when federal approval
is obtained.
new text end