HF 657

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:40am

A bill for an act
relating to human services; designating critical access nursing facilities;
providing a rate decrease for certain nursing facilities; appropriating any cost
savings; amending Minnesota Statutes 2008, section 256B.441, by adding
subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 59. new text end

new text begin Critical access nursing facilities. new text end

new text begin (a) The commissioner, in consultation
with the commissioner of health, shall designate qualifying nursing facilities as critical
access nursing facilities.
new text end

new text begin (b) A nursing facility may apply to be designated a critical access nursing facility
if it meets the following criteria:
new text end

new text begin (1) it is located more than 20 miles, defined as official mileage as reported by the
Minnesota Department of Transportation, from the nearest licensed and certified nursing
facility or hospital with swing beds;
new text end

new text begin (2) it is located in a county that would be in the lowest quartile of counties measured
in terms of the number of licensed and certified nursing facility beds per 1,000 residents
age 65 or older, if the nursing facility were to close; and
new text end

new text begin (3) it agrees to permanently delicense all beds in layaway status under section
144A.071, subdivision 4b, at the time of designation.
new text end

new text begin (c) The operating payment rates for a nursing facility designated as a critical access
nursing facility shall be the greater of:
new text end

new text begin (1) rates determined by the commissioner under this section, beginning October
1, 2009, without application of the phase-in period in subdivision 55. For purposes of
determining the operating payment rate limits in subdivision 50, the facility shall be
included in peer group I; or
new text end

new text begin (2) operating payment rates determined by the commissioner for the rate year
beginning October 1, 2009, that are equal for a RUG's rate level with a weight of 1.00
to the peer group I median operating payment rate for that RUG's level. The percentage
of operating payment rate to be case-mix adjusted shall be equal to the percentage of
allowable costs that are case-mix adjusted in the facility's most recent available and audited
annual statistical and cost report. This paragraph applies only if it results in a rate increase.
new text end

new text begin (d) The commissioner shall request applications from eligible nursing facilities for
critical access nursing facility status designation within 60 days of enactment of this
subdivision and may request additional applications at any time.
new text end

new text begin (e) The commissioner of health shall give priority to a critical access nursing facility
for approval of nursing home moratorium exception proposals under section 144A.073.
new text end

Sec. 2.

Minnesota Statutes 2008, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 60. new text end

new text begin Rate decrease for certain nursing facilities. new text end

new text begin Effective October 1, 2009,
operating payment rates of all nursing facilities that are reimbursed under this section or
section 256B.434, shall be decreased to be equal, for a RUG's rate with a weight of 1.00,
to the peer group I median rate for the same RUG's weight, but no facility's rate shall be
decreased more than five percent. The percentage of the operating payment rate for each
facility to be case-mix adjusted shall be equal to the percentage that is case-mix adjusted
in that facility's September 30, 2009, operating payment rate. This subdivision shall apply
only if it results in a rate decrease. Decreases determined under this subdivision shall be
subtracted from rates after the blending required by subdivision 55, paragraph (a).
new text end

Sec. 3. new text begin APPROPRIATIONS.
new text end

new text begin All savings to the general fund resulting from implementation of Minnesota Statutes,
section 256B.441, subdivision 60, are appropriated to the commissioner of human services
for general fund costs related to funding critical access nursing facilities as described in
Minnesota Statutes, section 256B.441, subdivision 59.
new text end