Engrossments
Introduction		Posted on 02/09/2017
1st Engrossment		Posted on 03/31/2017

ARTICLE 1

HEALTH CARE

Section 1.

Minnesota Statutes 2016, section 3.972, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Audits of Department of Human Services. new text end

new text begin (a) To ensure continuous
legislative oversight and accountability, the legislative auditor shall give high priority to
auditing the programs, services, and benefits administered by the Department of Human
Services. The audits shall determine whether the department offered programs and provided
services and benefits only to eligible persons and organizations, and complied with applicable
legal requirements.
new text end

new text begin (b) The legislative auditor shall, no less than three times each year, test a representative
sample of persons enrolled in medical assistance and MinnesotaCare to determine whether
they are eligible to receive benefits under those programs. The legislative auditor shall report
the results to the commissioner of human services and recommend corrective actions, which
the commissioner must implement within 20 business days. The legislative auditor shall
monitor the commissioner's implementation of corrective actions and periodically report
the results to the Legislative Audit Commission and the chairs and ranking minority members
of the legislative committees with jurisdiction over health and human services policy and
finance. The legislative auditor's reports to the commission and the chairs and ranking
minority members must include recommendations for any legislative actions needed to
ensure that medical assistance and MinnesotaCare benefits are provided only to eligible
persons.
new text end

Sec. 2.

Minnesota Statutes 2016, section 245.4889, subdivision 1, is amended to read:

Subdivision 1.

Establishment and authority.

(a) The commissioner is authorized to
make grants from available appropriations to assist:

(1) counties;

(2) Indian tribes;

(3) children's collaboratives under section 124D.23 or 245.493; or

(4) mental health service providers.

(b) The following services are eligible for grants under this section:

(1) services to children with emotional disturbances as defined in section 245.4871,
subdivision 15, and their families;

(2) transition services under section 245.4875, subdivision 8, for young adults under
age 21 and their families;

(3) respite care services for children with severe emotional disturbances who are at risk
of out-of-home placement;

(4) children's mental health crisis services;

(5) mental health services for people from cultural and ethnic minorities;

(6) children's mental health screening and follow-up diagnostic assessment and treatment;

(7) services to promote and develop the capacity of providers to use evidence-based
practices in providing children's mental health services;

(8) school-linked mental health services;

(9) building evidence-based mental health intervention capacity for children birth to age
five;

(10) suicide prevention and counseling services that use text messaging statewide;

(11) mental health first aid training;

(12) training for parents, collaborative partners, and mental health providers on the
impact of adverse childhood experiences and trauma and development of an interactive
Web site to share information and strategies to promote resilience and prevent trauma;

(13) transition age services to develop or expand mental health treatment and supports
for adolescents and young adults 26 years of age or younger;

(14) early childhood mental health consultation;

(15) evidence-based interventions for youth at risk of developing or experiencing a first
episode of psychosis, and a public awareness campaign on the signs and symptoms of
psychosis; deleted text beginand
deleted text end

(16) psychiatric consultation for primary care practitionersdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (17) start-up funding to support providers in meeting program requirements and beginning
operations when establishing a new children's mental health program.
new text end

(c) Services under paragraph (b) must be designed to help each child to function and
remain with the child's family in the community and delivered consistent with the child's
treatment plan. Transition services to eligible young adults under paragraph (b) must be
designed to foster independent living in the community.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2016, section 256.9686, subdivision 8, is amended to read:

Subd. 8.

Rate year.

"Rate year" means a calendar year from January 1 to December 31.new text begin
Effective with the 2012 base year, rate year means a state fiscal year from July 1 to June
30.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2016, section 256.969, subdivision 1, is amended to read:

Subdivision 1.

Hospital cost index.

(a) The hospital cost index shall be the change in
the Centers for Medicare and Medicaid Services Inpatient Hospital Market Basket. The
commissioner shall use the indices as forecasted for the midpoint of the prior rate year to
the midpoint of the current rate year.

(b) new text beginExcept as authorized under this section, new text endfor fiscal years beginning on or after July
1, 1993, the commissioner of human services shall not provide automatic annual inflation
adjustments for hospital payment rates under medical assistance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 256.969, subdivision 2b, is amended to read:

Subd. 2b.

Hospital payment rates.

(a) For discharges occurring on or after November
1, 2014, hospital inpatient services for hospitals located in Minnesota shall be paid according
to the following:

(1) critical access hospitals as defined by Medicare shall be paid using a cost-based
methodology;

(2) long-term hospitals as defined by Medicare shall be paid on a per diem methodology
under subdivision 25;

(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation
distinct parts as defined by Medicare shall be paid according to the methodology under
subdivision 12; and

(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.

(b) For the period beginning January 1, 2011, through October 31, 2014, rates shall not
be rebased, except that a Minnesota long-term hospital shall be rebased effective January
1, 2011, based on its most recent Medicare cost report ending on or before September 1,
2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on
December 31, 2010. For rate setting periods after November 1, 2014, in which the base
years are updated, a Minnesota long-term hospital's base year shall remain within the same
period as other hospitals.

(c) Effective for discharges occurring on and after November 1, 2014, payment rates
for hospital inpatient services provided by hospitals located in Minnesota or the local trade
area, except for the hospitals paid under the methodologies described in paragraph (a),
clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a
manner similar to Medicare. The base year for the rates effective November 1, 2014, shall
be calendar year 2012. The rebasing under this paragraph shall be budget neutral, ensuring
that the total aggregate payments under the rebased system are equal to the total aggregate
payments that were made for the same number and types of services in the base year. Separate
budget neutrality calculations shall be determined for payments made to critical access
hospitals and payments made to hospitals paid under the DRG system. Only the rate increases
or decreases under subdivision 3a or 3c that applied to the hospitals being rebased during
the entire base period shall be incorporated into the budget neutrality calculation.

(d) For discharges occurring on or after November 1, 2014, through the next rebasing
that occurs, the rebased rates under paragraph (c) that apply to hospitals under paragraph
(a), clause (4), shall include adjustments to the projected rates that result in no greater than
a five percent increase or decrease from the base year payments for any hospital. Any
adjustments to the rates made by the commissioner under this paragraph and paragraph (e)
shall maintain budget neutrality as described in paragraph (c).

(e) For discharges occurring on or after November 1, 2014, through the nextnew text begin twonew text end rebasing
deleted text begin that occursdeleted text endnew text begin periodsnew text end the commissioner may make additional adjustments to the rebased rates,
and when evaluating whether additional adjustments should be made, the commissioner
shall consider the impact of the rates on the following:

(1) pediatric services;

(2) behavioral health services;

(3) trauma services as defined by the National Uniform Billing Committee;

(4) transplant services;

(5) obstetric services, newborn services, and behavioral health services provided by
hospitals outside the seven-county metropolitan area;

(6) outlier admissions;

(7) low-volume providers; and

(8) services provided by small rural hospitals that are not critical access hospitals.

(f) Hospital payment rates established under paragraph (c) must incorporate the following:

(1) for hospitals paid under the DRG methodology, the base year payment rate per
admission is standardized by the applicable Medicare wage index and adjusted by the
hospital's disproportionate population adjustment;

(2) for critical access hospitals, payment rates for discharges between November 1, 2014,
and June 30, 2015, shall be set to the same rate of payment that applied for discharges on
October 31, 2014;

(3) the cost and charge data used to establish hospital payment rates must only reflect
inpatient services covered by medical assistance; and

(4) in determining hospital payment rates for discharges occurring on or after the rate
year beginning January 1, 2011, through December 31, 2012, the hospital payment rate per
discharge shall be based on the cost-finding methods and allowable costs of the Medicare
program in effect during the base year or years.new text begin In determining hospital payment rates for
discharges in subsequent base years, the per discharge rates shall be based on the cost-finding
methods and allowable costs of the Medicare program in effect during the base year or
years.
new text end

(g) The commissioner shall validate the rates effective November 1, 2014, by applying
the rates established under paragraph (c), and any adjustments made to the rates under
paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine whether the
total aggregate payments for the same number and types of services under the rebased rates
are equal to the total aggregate payments made during calendar year 2013.

(h) Effective for discharges occurring on or after July 1, 2017, and every two years
thereafter, payment rates under this section shall be rebased to reflect only those changes
in hospital costs between the existing base year and the next base year. new text beginChanges in costs
between base years shall be measured using the lower of the hospital cost index defined in
subdivision 1, paragraph (a), or the percentage change in the case mix adjusted cost per
claim. new text endThe commissioner shall establish the base year for each rebasing period considering
the most recent year for which filed Medicare cost reports are available. The estimated
change in the average payment per hospital discharge resulting from a scheduled rebasing
must be calculated and made available to the legislature by January 15 of each year in which
rebasing is scheduled to occur, and must include by hospital the differential in payment
rates compared to the individual hospital's costs.

(i) Effective for discharges occurring on or after July 1, 2015,new text begin inpatientnew text end payment rates
for critical access hospitals located in Minnesota or the local trade area shall be determined
using a new cost-based methodology. The commissioner shall establish within the
methodology tiers of payment designed to promote efficiency and cost-effectiveness.
Payment rates for hospitals under this paragraph shall be set at a level that does not exceed
the total cost for critical access hospitals as reflected in base year cost reports. Until the
next rebasing that occurs, the new methodology shall result in no greater than a five percent
decrease from the base year payments for any hospital, except a hospital that had payments
that were greater than 100 percent of the hospital's costs in the base year shall have their
rate set equal to 100 percent of costs in the base year. The rates paid for discharges on and
after July 1, 2016, covered under this paragraph shall be increased by the inflation factor
in subdivision 1, paragraph (a). The new cost-based rate shall be the final rate and shall not
be settled to actual incurred costs. Hospitals shall be assigned a payment tier based on the
following criteria:

(1) hospitals that had payments at or below 80 percent of their costs in the base year
shall have a rate set that equals 85 percent of their base year costs;

(2) hospitals that had payments that were above 80 percent, up to and including 90
percent of their costs in the base year shall have a rate set that equals 95 percent of their
base year costs; and

(3) hospitals that had payments that were above 90 percent of their costs in the base year
shall have a rate set that equals 100 percent of their base year costs.

(j) The commissioner may refine the payment tiers and criteria for critical access hospitals
to coincide with the next rebasing under paragraph (h). The factors used to develop the new
methodology may include, but are not limited to:

(1) the ratio between the hospital's costs for treating medical assistance patients and the
hospital's charges to the medical assistance program;

(2) the ratio between the hospital's costs for treating medical assistance patients and the
hospital's payments received from the medical assistance program for the care of medical
assistance patients;

(3) the ratio between the hospital's charges to the medical assistance program and the
hospital's payments received from the medical assistance program for the care of medical
assistance patients;

(4) the statewide average increases in the ratios identified in clauses (1), (2), and (3);

(5) the proportion of that hospital's costs that are administrative and trends in
administrative costs; and

(6) geographic location.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 6.

Minnesota Statutes 2016, section 256.969, is amended by adding a subdivision to
read:

new text begin Subd. 2e. new text end

new text begin Alternate inpatient payment rate. new text end

new text begin (a) If the days, costs, and revenues
associated with patients who are eligible for medical assistance and also have private health
insurance are required to be included in the calculation of the hospital-specific
disproportionate share hospital payment limit for a rate year, then the commissioner, effective
retroactively to rate years beginning on or after January 1, 2015, shall compute an alternate
inpatient payment rate for a Minnesota hospital that is designated as a children's hospital
and enumerated as such by Medicare. The commissioner shall reimburse the hospital for a
rate year at the higher of the amount calculated under the alternate payment rate or the
amount calculated under subdivision 9.
new text end

new text begin (b) The alternate payment rate must meet the criteria in clauses (1) to (4):
new text end

new text begin (1) the alternate payment rate shall be structured to target a total aggregate reimbursement
amount equal to two percent less than each children's hospital's cost coverage percentage
in the applicable base year for providing fee-for-service inpatient services under this section
to patients enrolled in medical assistance;
new text end

new text begin (2) costs shall be determined using the most recently available medical assistance cost
report provided under subdivision 4b, paragraph (a), clause (3), for the applicable base year.
Costs shall be determined using standard Medicare cost finding and cost allocation methods
and applied in the same manner as the costs were in the rebasing for the applicable base
year. If the medical assistance cost report is not available, costs shall be determined in the
interim using the Medicare Cost Report;
new text end

new text begin (3) in any rate year in which payment to a hospital is made using the alternate payment
rate, no payments shall be made to the hospital under subdivision 9; and
new text end

new text begin (4) if the alternate payment amount increases payments at a rate that is higher than the
inflation factor applied over the rebasing period, the commissioner shall take this into
consideration when setting payment rates at the next rebasing.
new text end

Sec. 7.

Minnesota Statutes 2016, section 256.969, subdivision 3a, is amended to read:

Subd. 3a.

Payments.

(a) Acute care hospital billings under the medical assistance program
must not be submitted until the recipient is discharged. However, the commissioner shall
establish monthly interim payments for inpatient hospitals that have individual patient
lengths of stay over 30 days regardless of diagnostic category. Except as provided in section
256.9693, medical assistance reimbursement for treatment of mental illness shall be
reimbursed based on diagnostic classifications. Individual hospital payments established
under this section and sections 256.9685, 256.9686, and 256.9695, in addition to third-party
and recipient liability, for discharges occurring during the rate year shall not exceed, in
aggregate, the charges for the medical assistance covered inpatient services paid for the
same period of time to the hospital. Services that have rates established under subdivision
deleted text begin 11 ordeleted text end 12, must be limited separately from other services. After consulting with the affected
hospitals, the commissioner may consider related hospitals one entity and may merge the
payment rates while maintaining separate provider numbers. The operating and property
base rates per admission or per day shall be derived from the best Medicare and claims data
available when rates are established. The commissioner shall determine the best Medicare
and claims data, taking into consideration variables of recency of the data, audit disposition,
settlement status, and the ability to set rates in a timely manner. The commissioner shall
notify hospitals of payment rates 30 days prior to implementation. The rate setting data
must reflect the admissions data used to establish relative values. The commissioner may
adjust base year cost, relative value, and case mix index data to exclude the costs of services
that have been discontinued by deleted text beginthedeleted text end October 1 of the year preceding the rate year or that are
paid separately from inpatient services. Inpatient stays that encompass portions of two or
more rate years shall have payments established based on payment rates in effect at the time
of admission unless the date of admission preceded the rate year in effect by six months or
more. In this case, operating payment rates for services rendered during the rate year in
effect and established based on the date of admission shall be adjusted to the rate year in
effect by the hospital cost index.

(b) For fee-for-service admissions occurring on or after July 1, 2002, the total payment,
before third-party liability and spenddown, made to hospitals for inpatient services is reduced
by .5 percent from the current statutory rates.

(c) In addition to the reduction in paragraph (b), the total payment for fee-for-service
admissions occurring on or after July 1, 2003, made to hospitals for inpatient services before
third-party liability and spenddown, is reduced five percent from the current statutory rates.
Mental health services within diagnosis related groups 424 to 432 or corresponding
APR-DRGs, and facilities defined under subdivision 16 are excluded from this paragraph.

(d) In addition to the reduction in paragraphs (b) and (c), the total payment for
fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for
inpatient services before third-party liability and spenddown, is reduced 6.0 percent from
the current statutory rates. Mental health services within diagnosis related groups 424 to
432 or corresponding APR-DRGs, and facilities defined under subdivision 16 are excluded
from this paragraph. Payments made to managed care plans shall be reduced for services
provided on or after January 1, 2006, to reflect this reduction.

(e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for
fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made
to hospitals for inpatient services before third-party liability and spenddown, is reduced
3.46 percent from the current statutory rates. Mental health services with diagnosis related
groups 424 to 432 or corresponding APR-DRGs, and facilities defined under subdivision
16 are excluded from this paragraph. Payments made to managed care plans shall be reduced
for services provided on or after January 1, 2009, through June 30, 2009, to reflect this
reduction.

(f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for
fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2011, made
to hospitals for inpatient services before third-party liability and spenddown, is reduced 1.9
percent from the current statutory rates. Mental health services with diagnosis related groups
424 to 432 or corresponding APR-DRGs, and facilities defined under subdivision 16 are
excluded from this paragraph. Payments made to managed care plans shall be reduced for
services provided on or after July 1, 2009, through June 30, 2011, to reflect this reduction.

(g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for
fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for inpatient
services before third-party liability and spenddown, is reduced 1.79 percent from the current
statutory rates. Mental health services with diagnosis related groups 424 to 432 or
corresponding APR-DRGs, and facilities defined under subdivision 16 are excluded from
this paragraph. Payments made to managed care plans shall be reduced for services provided
on or after July 1, 2011, to reflect this reduction.

(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total payment
for fee-for-service admissions occurring on or after July 1, 2009, made to hospitals for
inpatient services before third-party liability and spenddown, is reduced one percent from
the current statutory rates. Facilities defined under subdivision 16 are excluded from this
paragraph. Payments made to managed care plans shall be reduced for services provided
on or after October 1, 2009, to reflect this reduction.

(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total payment
for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for
inpatient services before third-party liability and spenddown, is reduced 1.96 percent from
the current statutory rates. Facilities defined under subdivision 16 are excluded from this
paragraph. Payments made to managed care plans shall be reduced for services provided
on or after January 1, 2011, to reflect this reduction.

(j) Effective for discharges on and after November 1, 2014, from hospitals paid under
subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this subdivision
must be incorporated into the rebased rates established under subdivision 2b, paragraph (c),
and must not be applied to each claim.

(k) Effective for discharges on and after July 1, 2015, from hospitals paid under
subdivision 2b, paragraph (a), clauses (2) and (3), the rate adjustments in this subdivision
must be incorporated into the rates and must not be applied to each claim.

new text begin (l) Effective for discharges on and after July 1, 2017, from hospitals paid under
subdivision 2b, paragraph (a), clause (2), the rate adjustments in this subdivision must be
incorporated into the rates and must not be applied to each claim.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 8.

Minnesota Statutes 2016, section 256.969, subdivision 4b, is amended to read:

Subd. 4b.

Medical assistance cost reports for services.

(a) A hospital that meets one
of the following criteria must annually submit to the commissioner medical assistance cost
reports within six months of the end of the hospital's fiscal year:

(1) a hospital designated as a critical access hospital that receives medical assistance
payments; deleted text beginor
deleted text end

(2) a Minnesota hospital or out-of-state hospital located within a Minnesota local trade
area that receives a disproportionate population adjustment under subdivision 9new text begin; or
new text end

new text begin (3) a Minnesota hospital that is designated as a children's hospital and enumerated as
such by Medicarenew text end.

For purposes of this subdivision, local trade area has the meaning given in subdivision
17.

(b) The commissioner shall suspend payments to any hospital that fails to submit a report
required under this subdivision. Payments must remain suspended until the report has been
filed with and accepted by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2015.
new text end

Sec. 9.

Minnesota Statutes 2016, section 256.969, subdivision 8, is amended to read:

Subd. 8.

Unusual length of stay experience.

(a) The commissioner shall establish day
outlier thresholds for each diagnostic category established under subdivision 2 at two standard
deviations beyond the mean length of stay. Payment for the days beyond the outlier threshold
shall be in addition to the operating and property payment rates per admission established
under subdivisions 2 and 2b. Payment for outliers shall be at 70 percent of the allowable
operating cost, after adjustment by the case mix index, hospital cost index, relative values
and the disproportionate population adjustment. The outlier threshold for neonatal and burn
diagnostic categories shall be established at one standard deviation beyond the mean length
of stay, and payment shall be at 90 percent of allowable operating cost calculated in the
same manner as other outliers. A hospital may choose an alternative to the 70 percent outlier
payment that is at a minimum of 60 percent and a maximum of 80 percent if the
commissioner is notified in writing of the request by October 1 of the year preceding the
rate year. The chosen percentage applies to all diagnostic categories except burns and
neonates. The percentage of allowable cost that is unrecognized by the outlier payment shall
be added back to the base year operating payment rate per admission.

(b) Effective fornew text begin admissions andnew text end transfers occurring on and after November 1, 2014, the
commissioner shall establish payment rates for outlier payments that are based on Medicare
methodologies.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 256.969, subdivision 8c, is amended to read:

Subd. 8c.

Hospital residents.

new text begin(a) new text endFor discharges occurring on or after November 1,
2014, payments for hospital residents shall be made as follows:

(1) payments for the first 180 days of inpatient care shall be the APR-DRG system plus
any outliers; and

(2) payment for all medically necessary patient care subsequent to the first 180 days
shall be reimbursed at a rate computed by multiplying the statewide average cost-to-charge
ratio by the usual and customary charges.

new text begin (b) For discharges occurring on or after July 1, 2017, payment for hospital residents
shall be equal to the payments under subdivision 8, paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 11.

Minnesota Statutes 2016, section 256.969, subdivision 9, is amended to read:

Subd. 9.

Disproportionate numbers of low-income patients served.

(a) For admissions
occurring on or after July 1, 1993, the medical assistance disproportionate population
adjustment shall comply with federal law and shall be paid to a hospital, excluding regional
treatment centers and facilities of the federal Indian Health Service, with a medical assistance
inpatient utilization rate in excess of the arithmetic mean. The adjustment must be determined
as follows:

(1) for a hospital with a medical assistance inpatient utilization rate above the arithmetic
mean for all hospitals excluding regional treatment centers and facilities of the federal Indian
Health Service but less than or equal to one standard deviation above the mean, the
adjustment must be determined by multiplying the total of the operating and property
payment rates by the difference between the hospital's actual medical assistance inpatient
utilization rate and the arithmetic mean for all hospitals excluding regional treatment centers
and facilities of the federal Indian Health Service; and

(2) for a hospital with a medical assistance inpatient utilization rate above one standard
deviation above the mean, the adjustment must be determined by multiplying the adjustment
that would be determined under clause (1) for that hospital by 1.1. The commissioner shall
report annually on the number of hospitals likely to receive the adjustment authorized by
this paragraph. The commissioner shall specifically report on the adjustments received by
public hospitals and public hospital corporations located in cities of the first class.

(b) Certified public expenditures made by Hennepin County Medical Center shall be
considered Medicaid disproportionate share hospital payments. Hennepin County and
Hennepin County Medical Center shall report by June 15, 2007, on payments made beginning
July 1, 2005, or another date specified by the commissioner, that may qualify for
reimbursement under federal law. Based on these reports, the commissioner shall apply for
federal matching funds.

(c) Upon federal approval of the related state plan amendment, paragraph (b) is effective
retroactively from July 1, 2005, or the earliest effective date approved by the Centers for
Medicare and Medicaid Services.

(d) Effective July 1, 2015, disproportionate share hospital (DSH) payments shall be paid
in accordance with a new methodology using 2012 as the base year. Annual payments made
under this paragraph shall equal the total amount of payments made for 2012. A licensed
children's hospital shall receive only a single DSH factor for children's hospitals. Other
DSH factors may be combined to arrive at a single factor for each hospital that is eligible
for DSH payments. The new methodology shall make payments only to hospitals located
in Minnesota and include the following factors:

(1) a licensed children's hospital with at least 1,000 fee-for-service discharges in the
base year shall receive a factor of 0.868. A licensed children's hospital with less than 1,000
fee-for-service discharges in the base year shall receive a factor of 0.7880;

(2) a hospital that has in effect for the initial rate year a contract with the commissioner
to provide extended psychiatric inpatient services under section 256.9693 shall receive a
factor of 0.0160;

(3) a hospital that has received payment from the fee-for-service program for at least 20
transplant services in the base year shall receive a factor of 0.0435;

(4) a hospital that has a medical assistance utilization rate in the base year between 20
percent up to one standard deviation above the statewide mean utilization rate shall receive
a factor of 0.0468;

(5) a hospital that has a medical assistance utilization rate in the base year that is at least
one standard deviation above the statewide mean utilization rate but is less than three standard
deviations above the mean shall receive a factor of 0.2300; and

(6) a hospital that has a medical assistance utilization rate in the base year that is at least
three standard deviations above the statewide mean utilization rate shall receive a factor of
0.3711.

(e) Any payments or portion of payments made to a hospital under this subdivision that
are subsequently returned to the commissioner because the payments are found to exceed
the hospital-specific DSH limit for that hospital shall be redistributed, proportionate to the
number of fee-for-service discharges, to other DSH-eligible deleted text beginnonchildren'sdeleted text endnew text begin non-children'snew text end
hospitals that have a medical assistance utilization rate that is at least one standard deviation
above the mean.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 12.

Minnesota Statutes 2016, section 256.969, subdivision 12, is amended to read:

Subd. 12.

Rehabilitation hospitals and distinct parts.

(a) Units of hospitals that are
recognized as rehabilitation distinct parts by the Medicare program shall have separate
provider numbers under the medical assistance program for rate establishment and billing
purposes only. These units shall also have operating payment rates and the disproportionate
population adjustment, if allowed by federal law, established separately from other inpatient
hospital services.

(b) The commissioner shall establish separate relative values under subdivision 2 for
rehabilitation hospitals and distinct parts as defined by the Medicare program. Effective for
discharges occurring on and after November 1, 2014, the commissioner, to the extent
possible, shall replicate the existing payment rate methodology under the new diagnostic
classification system. The result must be budget neutral, ensuring that the total aggregate
payments under the new system are equal to the total aggregate payments made for the same
number and types of services in the base year, calendar year 2012.

(c) For individual hospitals that did not have separate medical assistance rehabilitation
provider numbers or rehabilitation distinct parts in the base year, hospitals shall provide the
information needed to separate rehabilitation distinct part cost and claims data from other
inpatient service data.

new text begin (d) Effective with discharges on or after July 1, 2017, payment to rehabilitation hospitals
shall be established under subdivision 2b, paragraph (a), clause (4).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 13.

Minnesota Statutes 2016, section 256B.04, subdivision 12, is amended to read:

Subd. 12.

Limitation on services.

(a) Place limits on the types of services covered by
medical assistance, the frequency with which the same or similar services may be covered
by medical assistance for an individual recipient, and the amount paid for each covered
service. The state agency shall promulgate rules establishing maximum reimbursement rates
for emergency and nonemergency transportation.

The rules shall provide:

(1) an opportunity for all recognized transportation providers to be reimbursed for
nonemergency transportation consistent with the maximum rates established by the agency;new text begin
and
new text end

(2) reimbursement of public and private nonprofit providers serving the disabled
population generally at reasonable maximum rates that reflect the cost of providing the
service regardless of the fare that might be charged by the provider for similar services to
individuals other than those receiving medical assistance or medical care under this chapterdeleted text begin;
anddeleted text endnew text begin.
new text end

deleted text begin (3) reimbursement for each additional passenger carried on a single trip at a substantially
lower rate than the first passenger carried on that trip.
deleted text end

(b) The commissioner shall encourage providers reimbursed under this chapter to
coordinate their operation with similar services that are operating in the same community.
To the extent practicable, the commissioner shall encourage eligible individuals to utilize
less expensive providers capable of serving their needs.

(c) For the purpose of this subdivision and section 256B.02, subdivision 8, and effective
on January 1, 1981, "recognized provider of transportation services" means an operator of
special transportation service as defined in section 174.29 that has been issued a current
certificate of compliance with operating standards of the commissioner of transportation
or, if those standards do not apply to the operator, that the agency finds is able to provide
the required transportation in a safe and reliable manner. Until January 1, 1981, "recognized
transportation provider" includes an operator of special transportation service that the agency
finds is able to provide the required transportation in a safe and reliable manner.

Sec. 14.

Minnesota Statutes 2016, section 256B.0625, subdivision 3b, is amended to read:

Subd. 3b.

Telemedicine services.

(a) Medical assistance covers medically necessary
services and consultations delivered by a licensed health care provider via telemedicine in
the same manner as if the service or consultation was delivered in person. Coverage is
limited to three telemedicine services per enrollee per calendar week. Telemedicine services
shall be paid at the full allowable rate.

(b) The commissioner shall establish criteria that a health care provider must attest to
in order to demonstrate the safety or efficacy of delivering a particular service via
telemedicine. The attestation may include that the health care provider:

(1) has identified the categories or types of services the health care provider will provide
via telemedicine;

(2) has written policies and procedures specific to telemedicine services that are regularly
reviewed and updated;

(3) has policies and procedures that adequately address patient safety before, during,
and after the telemedicine service is rendered;

(4) has established protocols addressing how and when to discontinue telemedicine
services; and

(5) has an established quality assurance process related to telemedicine services.

(c) As a condition of payment, a licensed health care provider must document each
occurrence of a health service provided by telemedicine to a medical assistance enrollee.
Health care service records for services provided by telemedicine must meet the requirements
set forth in Minnesota Rules, part 9505.2175, subparts 1 and 2, and must document:

(1) the type of service provided by telemedicine;

(2) the time the service began and the time the service ended, including an a.m. and p.m.
designation;

(3) the licensed health care provider's basis for determining that telemedicine is an
appropriate and effective means for delivering the service to the enrollee;

(4) the mode of transmission of the telemedicine service and records evidencing that a
particular mode of transmission was utilized;

(5) the location of the originating site and the distant site;

(6) if the claim for payment is based on a physician's telemedicine consultation with
another physician, the written opinion from the consulting physician providing the
telemedicine consultation; and

(7) compliance with the criteria attested to by the health care provider in accordance
with paragraph (b).

(d) For purposes of this subdivision, unless otherwise covered under this chapter,
"telemedicine" is defined as the delivery of health care services or consultations while the
patient is at an originating site and the licensed health care provider is at a distant site. A
communication between licensed health care providers, or a licensed health care provider
and a patient that consists solely of a telephone conversation, e-mail, or facsimile transmission
does not constitute telemedicine consultations or services. Telemedicine may be provided
by means of real-time two-way, interactive audio and visual communications, including the
application of secure video conferencing or store-and-forward technology to provide or
support health care delivery, which facilitate the assessment, diagnosis, consultation,
treatment, education, and care management of a patient's health care.

(e) For purposes of this section, "licensed health care provider" deleted text beginis defineddeleted text end new text beginmeans a
licensed health care provider new text endunder section 62A.671, subdivision 6new text begin,new text endnew text begin and a mental health
practitioner defined under section 245.462, subdivision 17, or 245.4871, subdivision 26,
working under the general supervision of a mental health professionalnew text end; "health care provider"
is defined under section 62A.671, subdivision 3; and "originating site" is defined under
section 62A.671, subdivision 7.

Sec. 15.

Minnesota Statutes 2016, section 256B.0625, subdivision 13, is amended to read:

Subd. 13.

Drugs.

(a) Medical assistance covers drugs, except for fertility drugs when
specifically used to enhance fertility, if prescribed by a licensed practitioner and dispensed
by a licensed pharmacist, by a physician enrolled in the medical assistance program as a
dispensing physician, or by a physician, physician assistant, or a nurse practitioner employed
by or under contract with a community health board as defined in section 145A.02,
subdivision 5, for the purposes of communicable disease control.

(b) The dispensed quantity of a prescription drug must not exceed a 34-day supply,
unless authorized by the commissioner.

(c) For the purpose of this subdivision and subdivision 13d, an "active pharmaceutical
ingredient" is defined as a substance that is represented for use in a drug and when used in
the manufacturing, processing, or packaging of a drug becomes an active ingredient of the
drug product. An "excipient" is defined as an inert substance used as a diluent or vehicle
for a drug. The commissioner shall establish a list of active pharmaceutical ingredients and
excipients which are included in the medical assistance formulary. Medical assistance covers
selected active pharmaceutical ingredients and excipients used in compounded prescriptions
when the compounded combination is specifically approved by the commissioner or when
a commercially available product:

(1) is not a therapeutic option for the patient;

(2) does not exist in the same combination of active ingredients in the same strengths
as the compounded prescription; and

(3) cannot be used in place of the active pharmaceutical ingredient in the compounded
prescription.

(d) Medical assistance covers the following over-the-counter drugs when prescribed by
a licensed practitioner or by a licensed pharmacist who meets standards established by the
commissioner, in consultation with the board of pharmacy: antacids, acetaminophen, family
planning products, aspirin, insulin, products for the treatment of lice, vitamins for adults
with documented vitamin deficiencies, vitamins for children under the age of seven and
pregnant or nursing women, and any other over-the-counter drug identified by the
commissioner, in consultation with the formulary committee, as necessary, appropriate, and
cost-effective for the treatment of certain specified chronic diseases, conditions, or disorders,
and this determination shall not be subject to the requirements of chapter 14. A pharmacist
may prescribe over-the-counter medications as provided under this paragraph for purposes
of receiving reimbursement under Medicaid. When prescribing over-the-counter drugs under
this paragraph, licensed pharmacists must consult with the recipient to determine necessity,
provide drug counseling, review drug therapy for potential adverse interactions, and make
referrals as needed to other health care professionals. deleted text beginOver-the-counter medications must
be dispensed in a quantity that is the lowest of: (1) the number of dosage units contained in
the manufacturer's original package; (2) the number of dosage units required to complete
the patient's course of therapy; or (3) if applicable, the number of dosage units dispensed
from a system using retrospective billing, as provided under subdivision 13e, paragraph
(b).
deleted text end

(e) Effective January 1, 2006, medical assistance shall not cover drugs that are coverable
under Medicare Part D as defined in the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003, Public Law 108-173, section 1860D-2(e), for individuals eligible
for drug coverage as defined in the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003, Public Law 108-173, section 1860D-1(a)(3)(A). For these
individuals, medical assistance may cover drugs from the drug classes listed in United States
Code, title 42, section 1396r-8(d)(2), subject to this subdivision and subdivisions 13a to
13g, except that drugs listed in United States Code, title 42, section 1396r-8(d)(2)(E), shall
not be covered.

(f) Medical assistance covers drugs acquired through the federal 340B Drug Pricing
Program and dispensed by 340B covered entities and ambulatory pharmacies under common
ownership of the 340B covered entity. Medical assistance does not cover drugs acquired
through the federal 340B Drug Pricing Program and dispensed by 340B contract pharmacies.

Sec. 16.

Minnesota Statutes 2016, section 256B.0625, subdivision 13e, is amended to
read:

Subd. 13e.

Payment rates.

(a) new text beginEffective April 1, 2017, or upon federal approval,
whichever is later, new text endthe basis for determining the amount of payment shall be the lower of
the deleted text beginactual acquisition costsdeleted text endnew text begin ingredient costnew text end of the drugs deleted text beginor the maximum allowable cost by
the commissionerdeleted text end plus the deleted text beginfixeddeleted text endnew text begin professionalnew text end dispensing fee; or the usual and customary
price charged to the public. new text beginThe usual and customary price is defined as the lowest price
charged by the provider to a patient who pays for the prescription by cash, check, or charge
account and includes those prices the pharmacy charges to customers enrolled in a
prescription savings club or prescription discount club administered by the pharmacy or
pharmacy chain. new text endThe amount of payment basis must be reduced to reflect all discount
amounts applied to the charge by any new text beginthird-party new text endprovider/insurer agreement or contract for
submitted charges to medical assistance programs. The net submitted charge may not be
greater than the patient liability for the service. The deleted text beginpharmacydeleted text endnew text begin professionalnew text end dispensing fee
shall be deleted text begin$3.65deleted text endnew text begin $11.35new text end for deleted text beginlegend prescription drugsdeleted text endnew text begin prescriptions filled with legend drugs
meeting the definition of "covered outpatient drugs" according to United States Code, title
42, section 1396r-8(k)(2)new text end, except that the dispensing fee for intravenous solutions which
must be compounded by the pharmacist shall be deleted text begin$8deleted text endnew text begin $11.35new text end per bagdeleted text begin, $14 per bag for cancer
chemotherapy products, and $30 per bag for total parenteral nutritional products dispensed
in one liter quantities, or $44 per bag for total parenteral nutritional products dispensed in
quantities greater than one literdeleted text end. new text beginThe professional dispensing fee for prescriptions filled with
over-the-counter drugs meeting the definition of covered outpatient drugs shall be $11.35
for dispensed quantities equal to or greater than the number of units contained in the
manufacturer's original package. The professional dispensing fee shall be prorated based
on the percentage of the package dispensed when the pharmacy dispenses a quantity less
than the number of units contained in the manufacturer's original package. new text endThe pharmacy
dispensing fee for new text beginprescribed new text endover-the-counter drugs new text beginnot meeting the definition of covered
outpatient drugs new text endshall be $3.65deleted text begin, except that the fee shall be $1.31 for retrospectively billing
pharmacies when billing for quantities less than the number of units contained in the
manufacturer's original package. Actual acquisition cost includes quantity and other special
discounts except time and cash discounts. The actual acquisitiondeleted text endnew text begin for quantities equal to or
greater than the number of units contained in the manufacturer's original package and shall
be prorated based on the percentage of the package dispensed when the pharmacy dispenses
a quantity less than the number of units contained in the manufacturer's original package.
The National Average Drug Acquisition Cost (NADAC) shall be used to determine the
ingredientnew text end cost of a drug deleted text beginshall be estimated by the commissioner at wholesale acquisition
cost plus four percent for independently owned pharmacies located in a designated rural
area within Minnesota, and at wholesale acquisition cost plus two percent for all other
pharmacies. A pharmacy is "independently owned" if it is one of four or fewer pharmacies
under the same ownership nationally. A "designated rural area" means an area defined as
a small rural area or isolated rural area according to the four-category classification of the
Rural Urban Commuting Area system developed for the United States Health Resources
and Services Administration. Effective January 1, 2014, the actual acquisitiondeleted text endnew text begin. For drugs
for which a NADAC is not reported, the commissioner shall estimate the ingredient cost at
wholesale acquisition cost minus two percent. The commissioner shall establish the ingredientnew text end
cost of a drug acquired through the federal 340B Drug Pricing Program deleted text beginshall be estimated
by the commissioner at wholesale acquisition cost minus 40 percentdeleted text endnew text begin at a 340B Drug Pricing
Program maximum allowable cost. The 340B Drug Pricing Program maximum allowable
cost shall be comparable to, but no higher than, the 340B Drug Pricing Program ceiling
price established by the Health Resources and Services Administrationnew text end. Wholesale acquisition
cost is defined as the manufacturer's list price for a drug or biological to wholesalers or
direct purchasers in the United States, not including prompt pay or other discounts, rebates,
or reductions in price, for the most recent month for which information is available, as
reported in wholesale price guides or other publications of drug or biological pricing data.
The maximum allowable cost of a multisource drug may be set by the commissioner and it
shall be comparable todeleted text begin, butdeleted text endnew text begin the actual acquisition cost of the drug product andnew text end no higher
than, the maximum amount paid by other third-party payors in this state who have maximum
allowable cost programsnew text begin and no higher than the NADAC of the generic productnew text end.
Establishment of the amount of payment for drugs shall not be subject to the requirements
of the Administrative Procedure Act.

(b) Pharmacies dispensing prescriptions to residents of long-term care facilities using
an automated drug distribution system meeting the requirements of section 151.58, or a
packaging system meeting the packaging standards set forth in Minnesota Rules, part
6800.2700, that govern the return of unused drugs to the pharmacy for reuse, may employ
retrospective billing for prescription drugs dispensed to long-term care facility residents. A
retrospectively billing pharmacy must submit a claim only for the quantity of medication
used by the enrolled recipient during the defined billing period. A retrospectively billing
pharmacy must use a billing period not less than one calendar month or 30 days.

(c) deleted text beginAn additional dispensing fee of $.30 may be added to the dispensing fee paid to
pharmacists for legend drug prescriptions dispensed to residents of long-term care facilities
when a unit dose blister card system, approved by the department, is used. Under this type
of dispensing system, the pharmacist must dispense a 30-day supply of drug. The National
Drug Code (NDC) from the drug container used to fill the blister card must be identified
on the claim to the department. The unit dose blister card containing the drug must meet
the packaging standards set forth in Minnesota Rules, part 6800.2700, that govern the return
of unused drugs to the pharmacy for reuse.deleted text end A pharmacy provider using packaging that meets
the standards set forth in Minnesota Rules, part 6800.2700, is required to credit the
department for the actual acquisition cost of all unused drugs that are eligible for reuse,
unless the pharmacy is using retrospective billing. The commissioner may permit the drug
clozapine to be dispensed in a quantity that is less than a 30-day supply.

(d) deleted text beginWhenever a maximum allowable cost has been set fordeleted text end new text beginIf a pharmacy dispenses new text enda
multisource drug, deleted text beginpayment shall be the lower of the usual and customary price charged to
the public ordeleted text end thenew text begin ingredient cost shall be the NADAC of the generic product or thenew text end maximum
allowable cost established by the commissioner unless prior authorization for the brand
name product has been granted according to the criteria established by the Drug Formulary
Committee as required by subdivision 13f, paragraph (a), and the prescriber has indicated
"dispense as written" on the prescription in a manner consistent with section 151.21,
subdivision 2.

(e) The basis for determining the amount of payment for drugs administered in an
outpatient setting shall be the lower of the usual and customary cost submitted by the
provider, 106 percent of the average sales price as determined by the United States
Department of Health and Human Services pursuant to title XVIII, section 1847a of the
federal Social Security Act, the specialty pharmacy rate, or the maximum allowable cost
set by the commissioner. If average sales price is unavailable, the amount of payment must
be lower of the usual and customary cost submitted by the provider, the wholesale acquisition
cost, the specialty pharmacy rate, or the maximum allowable cost set by the commissioner.
Effective January 1, 2014, the commissioner shall discount the payment rate for drugs
obtained through the federal 340B Drug Pricing Program by 20 percent. The payment for
drugs administered in an outpatient setting shall be made to the administering facility or
practitioner. A retail or specialty pharmacy dispensing a drug for administration in an
outpatient setting is not eligible for direct reimbursement.

(f) The commissioner may deleted text beginnegotiate lower reimbursement ratesdeleted text endnew text begin establish maximum
allowable cost ratesnew text end for specialty pharmacy products deleted text beginthan the ratesdeleted text endnew text begin that are lower than the
ingredient cost formulasnew text end specified in paragraph (a). The commissioner may require
individuals enrolled in the health care programs administered by the department to obtain
specialty pharmacy products from providers deleted text beginwith whom the commissioner has negotiated
lower reimbursement ratesdeleted text endnew text begin able to provide enhanced clinical services and willing to accept
the specialty pharmacy reimbursementnew text end. Specialty pharmacy products are defined as those
used by a small number of recipients or recipients with complex and chronic diseases that
require expensive and challenging drug regimens. Examples of these conditions include,
but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis C, growth
hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms of cancer.
Specialty pharmaceutical products include injectable and infusion therapies, biotechnology
drugs, antihemophilic factor products, high-cost therapies, and therapies that require complex
care. The commissioner shall consult with the formulary committee to develop a list of
specialty pharmacy products subject to deleted text beginthis paragraphdeleted text endnew text begin maximum allowable cost
reimbursementnew text end. In consulting with the formulary committee in developing this list, the
commissioner shall take into consideration the population served by specialty pharmacy
products, the current delivery system and standard of care in the state, and access to care
issues. The commissioner shall have the discretion to adjust the deleted text beginreimbursement ratedeleted text endnew text begin maximum
allowable costnew text end to prevent access to care issues.

(g) Home infusion therapy services provided by home infusion therapy pharmacies must
be paid at rates according to subdivision 8d.

new text begin (h) Effective for prescriptions filled on or after April 1, 2017, or upon federal approval,
whichever is later, the commissioner shall increase the ingredient cost reimbursement
calculated in paragraphs (a) and (f) by two percent for prescription and nonprescription
drugs subject to the wholesale drug distributor tax under section 295.52.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from April 1, 2017, or from
the effective date of federal approval, whichever is later. The commissioner of human
services shall notify the revisor of statutes when federal approval is obtained.
new text end

Sec. 17.

Minnesota Statutes 2016, section 256B.0625, subdivision 17, is amended to read:

Subd. 17.

Transportation costs.

(a) "Nonemergency medical transportation service"
means motor vehicle transportation provided by a public or private person that serves
Minnesota health care program beneficiaries who do not require emergency ambulance
service, as defined in section 144E.001, subdivision 3, to obtain covered medical services.

(b) Medical assistance covers medical transportation costs incurred solely for obtaining
emergency medical care or transportation costs incurred by eligible persons in obtaining
emergency or nonemergency medical care when paid directly to an ambulance company,
deleted text begin common carrierdeleted text endnew text begin nonemergency medical transportation companynew text end, or other recognized
providers of transportation services. Medical transportation must be provided by:

(1) nonemergency medical transportation providers who meet the requirements of this
subdivision;

(2) ambulances, as defined in section 144E.001, subdivision 2;

(3) taxicabsnew text begin that meet the requirements of this subdivisionnew text end;

(4) public transit, as defined in section 174.22, subdivision 7; or

(5) not-for-hire vehicles, including volunteer drivers.

(c) Medical assistance covers nonemergency medical transportation provided by
nonemergency medical transportation providers enrolled in the Minnesota health care
programs. All nonemergency medical transportation providers must comply with the
operating standards for special transportation service as defined in sections 174.29 to 174.30
and Minnesota Rules, chapter 8840, and in consultation with the Minnesota Department of
Transportation. All nonemergency medical transportation providers shall bill for
nonemergency medical transportation services in accordance with Minnesota health care
programs criteria. Publicly operated transit systems, volunteers, and not-for-hire vehicles
are exempt from the requirements outlined in this paragraph.

(d) An organization may be terminated, denied, or suspended from enrollment if:

(1) the provider has not initiated background studies on the individuals specified in
section 174.30, subdivision 10, paragraph (a), clauses (1) to (3); or

(2) the provider has initiated background studies on the individuals specified in section
174.30, subdivision 10, paragraph (a), clauses (1) to (3), and:

(i) the commissioner has sent the provider a notice that the individual has been
disqualified under section 245C.14; and

(ii) the individual has not received a disqualification set-aside specific to the special
transportation services provider under sections 245C.22 and 245C.23.

(e) The administrative agency of nonemergency medical transportation must:

(1) adhere to the policies defined by the commissioner in consultation with the
Nonemergency Medical Transportation Advisory Committee;

(2) pay nonemergency medical transportation providers for services provided to
Minnesota health care programs beneficiaries to obtain covered medical services;

(3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled
trips, and number of trips by mode; and

(4) by July 1, 2016, in accordance with subdivision 18e, utilize a Web-based single
administrative structure assessment tool that meets the technical requirements established
by the commissioner, reconciles trip information with claims being submitted by providers,
and ensures prompt payment for nonemergency medical transportation services.

(f) Until the commissioner implements the single administrative structure and delivery
system under subdivision 18e, clients shall obtain their level-of-service certificate from the
commissioner or an entity approved by the commissioner that does not dispatch rides for
clients using modes of transportation under paragraph (i), clauses (4), (5), (6), and (7).

(g) The commissioner may use an order by the recipient's attending physician or a medical
or mental health professional to certify that the recipient requires nonemergency medical
transportation services. Nonemergency medical transportation providers shall perform
driver-assisted services for eligible individuals, when appropriate. Driver-assisted service
includes passenger pickup at and return to the individual's residence or place of business,
assistance with admittance of the individual to the medical facility, and assistance in
passenger securement or in securing of wheelchairsnew text begin, child seats,new text end or stretchers in the vehicle.

Nonemergency medical transportation providers must take clients to the health care
provider using the most direct route, and must not exceed 30 miles for a trip to a primary
care provider or 60 miles for a trip to a specialty care provider, unless the client receives
authorization from the local agency.

Nonemergency medical transportation providers may not bill for separate base rates for
the continuation of a trip beyond the original destination. Nonemergency medical
transportation providers must maintain trip logs, which include pickup and drop-off times,
signed by the medical provider or client, whichever is deemed most appropriate, attesting
to mileage traveled to obtain covered medical services. Clients requesting client mileage
reimbursement must sign the trip log attesting mileage traveled to obtain covered medical
services.

(h) The administrative agency shall use the level of service process established by the
commissioner in consultation with the Nonemergency Medical Transportation Advisory
Committee to determine the client's most appropriate mode of transportation. If public transit
or a certified transportation provider is not available to provide the appropriate service mode
for the client, the client may receive a onetime service upgrade.

(i) The covered modes of transportationdeleted text begin, which may not be implemented without a new
rate structure,deleted text end are:

(1) client reimbursement, which includes client mileage reimbursement provided to
clients who have their own transportation, or to family or an acquaintance who provides
transportation to the client;

(2) volunteer transport, which includes transportation by volunteers using their own
vehicle;

(3) unassisted transport, which includes transportation provided to a client by a taxicab
or public transit. If a taxicab or public transit is not available, the client can receive
transportation from another nonemergency medical transportation provider;

(4) assisted transport, which includes transport provided to clients who require assistance
by a nonemergency medical transportation provider;

(5) lift-equipped/ramp transport, which includes transport provided to a client who is
dependent on a device and requires a nonemergency medical transportation provider with
a vehicle containing a lift or ramp;

(6) protected transport, which includes transport provided to a client who has received
a prescreening that has deemed other forms of transportation inappropriate and who requires
a provider: (i) with a protected vehicle that is not an ambulance or police car and has safety
locks, a video recorder, and a transparent thermoplastic partition between the passenger and
the vehicle driver; and (ii) who is certified as a protected transport provider; and

(7) stretcher transport, which includes transport for a client in a prone or supine position
and requires a nonemergency medical transportation provider with a vehicle that can transport
a client in a prone or supine position.

(j) The local agency shall be the single administrative agency and shall administer and
reimburse for modes defined in paragraph (i) according to paragraphs (m) and (n) when the
commissioner has developed, made available, and funded the Web-based single
administrative structure, assessment tool, and level of need assessment under subdivision
18e. The local agency's financial obligation is limited to funds provided by the state or
federal government.

(k) The commissioner shall:

(1) in consultation with the Nonemergency Medical Transportation Advisory Committee,
verify that the mode and use of nonemergency medical transportation is appropriate;

(2) verify that the client is going to an approved medical appointment; and

(3) investigate all complaints and appeals.

(l) The administrative agency shall pay for the services provided in this subdivision and
seek reimbursement from the commissioner, if appropriate. As vendors of medical care,
local agencies are subject to the provisions in section 256B.041, the sanctions and monetary
recovery actions in section 256B.064, and Minnesota Rules, parts 9505.2160 to 9505.2245.

(m) Payments for nonemergency medical transportation must be paid based on the client's
assessed mode under paragraph (h), not the type of vehicle used to provide the service. The
medical assistance reimbursement rates for nonemergency medical transportation services
that are payable by or on behalf of the commissioner for nonemergency medical
transportation services are:

(1) $0.22 per mile for client reimbursement;

(2) up to 100 percent of the Internal Revenue Service business deduction rate for volunteer
transport;

(3) equivalent to the standard fare for unassisted transport when provided by public
transit, and $11 for the base rate and $1.30 per mile when provided by a nonemergency
medical transportation provider;

(4) $13 for the base rate and $1.30 per mile for assisted transport;

(5) $18 for the base rate and $1.55 per mile for lift-equipped/ramp transport;

(6) $75 for the base rate and $2.40 per mile for protected transport; and

(7) $60 for the base rate and $2.40 per mile for stretcher transport, and $9 per trip for
an additional attendant if deemed medically necessary.

(n) The base rate for nonemergency medical transportation services in areas defined
under RUCA to be super rural is equal to 111.3 percent of the respective base rate in
paragraph (m), clauses (1) to (7). The mileage rate for nonemergency medical transportation
services in areas defined under RUCA to be rural or super rural areas is:

(1) for a trip equal to 17 miles or less, equal to 125 percent of the respective mileage
rate in paragraph (m), clauses (1) to (7); and

(2) for a trip between 18 and 50 miles, equal to 112.5 percent of the respective mileage
rate in paragraph (m), clauses (1) to (7).

(o) For purposes of reimbursement rates for nonemergency medical transportation
services under paragraphs (m) and (n), the zip code of the recipient's place of residence
shall determine whether the urban, rural, or super rural reimbursement rate applies.

(p) For purposes of this subdivision, "rural urban commuting area" or "RUCA" means
a census-tract based classification system under which a geographical area is determined
to be urban, rural, or super rural.

new text begin (q) The commissioner, when determining reimbursement rates for nonemergency medical
transportation under paragraphs (m) and (n), shall exempt all modes of transportation listed
under paragraph (i) from Minnesota Rules, part 9505.0445, item R, subitem (2).
new text end

Sec. 18.

Minnesota Statutes 2016, section 256B.0625, subdivision 17b, is amended to
read:

Subd. 17b.

Documentation required.

(a) As a condition for payment, nonemergency
medical transportation providers must document each occurrence of a service provided to
a recipient according to this subdivision. Providers must maintain odometer and other records
sufficient to distinguish individual trips with specific vehicles and drivers. The documentation
may be collected and maintained using electronic systems or software or in paper form but
must be made available and produced upon request. Program funds paid for transportation
that is not documented according to this subdivision shall be recovered by the department.

(b) A nonemergency medical transportation provider must compile transportation records
that meet the following requirements:

(1) the record must be in English and must be legible according to the standard of a
reasonable person;

(2) the recipient's name must be on each page of the record; and

(3) each entry in the record must document:

(i) the date on which the entry is made;

(ii) the date or dates the service is provided;

(iii) the printed last name, first name, and middle initial of the driver;

(iv) the signature of the driver attesting to the following: "I certify that I have accurately
reported in this record the trip miles I actually drove and the dates and times I actually drove
them. I understand that misreporting the miles driven and hours worked is fraud for which
I could face criminal prosecution or civil proceedings.";

(v) the signature of the recipient or authorized party attesting to the following: "I certify
that I received the reported transportation service.", or the signature of the provider of
medical services certifying that the recipient was delivered to the provider;

(vi) the address, or the description if the address is not available, of both the origin and
destination, and the mileage for the most direct route from the origin to the destination;

(vii) the mode of transportation in which the service is provided;

(viii) the license plate number of the vehicle used to transport the recipient;

(ix) whether the service was ambulatory or nonambulatory deleted text beginuntil the modes under
subdivision 17 are implementeddeleted text end;

(x) the time of the pickup and the time of the drop-off with "a.m." and "p.m."
designations;

(xi) the name of the extra attendant when an extra attendant is used to provide special
transportation service; and

(xii) the electronic source documentation used to calculate driving directions and mileage.

Sec. 19.

Minnesota Statutes 2016, section 256B.0625, is amended by adding a subdivision
to read:

new text begin Subd. 17c. new text end

new text begin Nursing facility transports. new text end

new text begin A Minnesota health care program enrollee
residing in, or being discharged from, a licensed nursing facility is exempt from a level of
need determination and is eligible for nonemergency medical transportation services until
the enrollee no longer resides in a licensed nursing facility, as provided in section 256B.04,
subdivision 14a.
new text end

Sec. 20.

Minnesota Statutes 2016, section 256B.0625, subdivision 18h, is amended to
read:

Subd. 18h.

Managed care.

new text begin(a) new text endThe following subdivisions deleted text begindo notdeleted text end apply to managed
care plans and county-based purchasing plans:

(1) subdivision 17, paragraphs deleted text begin(d) to (k)deleted text endnew text begin (a), (b), (i), and (n)new text end;

(2) subdivision deleted text begin18edeleted text endnew text begin 18new text end; and

(3) subdivision deleted text begin18gdeleted text endnew text begin 18anew text end.

new text begin (b) A nonemergency medical transportation provider must comply with the operating
standards for special transportation service specified in sections 174.29 to 174.30 and
Minnesota Rules, chapter 8840. Publicly operated transit systems, volunteers, and not-for-hire
vehicles are exempt from the requirements in this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 21.

Minnesota Statutes 2016, section 256B.0625, subdivision 30, is amended to read:

Subd. 30.

Other clinic services.

(a) Medical assistance covers rural health clinic services,
federally qualified health center services, nonprofit community health clinic services, and
public health clinic services. Rural health clinic services and federally qualified health center
services mean services defined in United States Code, title 42, section 1396d(a)(2)(B) and
(C). Payment for rural health clinic and federally qualified health center services shall be
made according to applicable federal law and regulation.

(b) A federally qualified health center new text begin(FQHC) new text endthat is beginning initial operation shall
submit an estimate of budgeted costs and visits for the initial reporting period in the form
and detail required by the commissioner. deleted text beginA federally qualified health centerdeleted text endnew text begin An FQHCnew text end that
is already in operation shall submit an initial report using actual costs and visits for the
initial reporting period. Within 90 days of the end of its reporting period, deleted text begina federally qualified
health centerdeleted text endnew text begin an FQHCnew text end shall submit, in the form and detail required by the commissioner,
a report of its operations, including allowable costs actually incurred for the period and the
actual number of visits for services furnished during the period, and other information
required by the commissioner. deleted text beginFederally qualified health centersdeleted text endnew text begin FQHCsnew text end that file Medicare
cost reports shall provide the commissioner with a copy of the most recent Medicare cost
report filed with the Medicare program intermediary for the reporting year which support
the costs claimed on their cost report to the state.

(c) In order to continue cost-based payment under the medical assistance program
according to paragraphs (a) and (b), deleted text begina federally qualified health centerdeleted text endnew text begin an FQHCnew text end or rural
health clinic must apply for designation as an essential community provider within six
months of final adoption of rules by the Department of Health according to section 62Q.19,
subdivision 7. For those deleted text beginfederally qualified health centersdeleted text endnew text begin FQHCsnew text end and rural health clinics
that have applied for essential community provider status within the six-month time
prescribed, medical assistance payments will continue to be made according to paragraphs
(a) and (b) for the first three years after application. For deleted text beginfederally qualified health centersdeleted text endnew text begin
FQHCsnew text end and rural health clinics that either do not apply within the time specified above or
who have had essential community provider status for three years, medical assistance
payments for health services provided by these entities shall be according to the same rates
and conditions applicable to the same service provided by health care providers that are not
deleted text begin federally qualified health centersdeleted text endnew text begin FQHCsnew text end or rural health clinics.

(d) Effective July 1, 1999, the provisions of paragraph (c) requiring deleted text begina federally qualified
health centerdeleted text endnew text begin an FQHCnew text end or a rural health clinic to make application for an essential community
provider designation in order to have cost-based payments made according to paragraphs
(a) and (b) no longer apply.

(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) shall
be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.

(f) Effective January 1, 2001, new text beginthrough December 31, 2018, new text endeach deleted text beginfederally qualified
health centerdeleted text endnew text begin FQHCnew text end and rural health clinic may elect to be paid either under the prospective
payment system established in United States Code, title 42, section 1396a(aa), or under an
alternative payment methodology consistent with the requirements of United States Code,
title 42, section 1396a(aa), and approved by the Centers for Medicare and Medicaid Services.
The alternative payment methodology shall be 100 percent of cost as determined according
to Medicare cost principles.

new text begin (g) Effective for services provided on or after January 1, 2019, all claims for payment
of clinic services provided by FQHCs and rural health clinics shall be paid by the
commissioner, according to an annual election by the FQHC or rural health clinic, under
the current prospective payment system described in paragraph (f), the alternative payment
methodology described in paragraph (f), or the alternative payment methodology described
in paragraph (l).
new text end

deleted text begin (g)deleted text endnew text begin (h)new text end For purposes of this section, "nonprofit community clinic" is a clinic that:

(1) has nonprofit status as specified in chapter 317A;

(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);

(3) is established to provide health services to low-income population groups, uninsured,
high-risk and special needs populations, underserved and other special needs populations;

(4) employs professional staff at least one-half of which are familiar with the cultural
background of their clients;

(5) charges for services on a sliding fee scale designed to provide assistance to
low-income clients based on current poverty income guidelines and family size; and

(6) does not restrict access or services because of a client's financial limitations or public
assistance status and provides no-cost care as needed.

deleted text begin (h)deleted text endnew text begin (i)new text end Effective for services provided on or after January 1, 2015, all claims for payment
of clinic services provided by deleted text beginfederally qualified health centersdeleted text endnew text begin FQHCsnew text end and rural health
clinics shall be paid by the commissioner. new text beginEffective for services provided on or after January
1, 2015, through July 1, 2017, new text endthe commissioner shall determine the most feasible method
for paying claims from the following options:

(1) deleted text beginfederally qualified health centersdeleted text endnew text begin FQHCsnew text end and rural health clinics submit claims
directly to the commissioner for payment, and the commissioner provides claims information
for recipients enrolled in a managed care or county-based purchasing plan to the plan, on
a regular basis; or

(2) deleted text beginfederally qualified health centersdeleted text endnew text begin FQHCsnew text end and rural health clinics submit claims for
recipients enrolled in a managed care or county-based purchasing plan to the plan, and those
claims are submitted by the plan to the commissioner for payment to the clinic.

new text begin Effective for services provided on or after January 1, 2019, FQHCs and rural health clinics
shall submit claims directly to the commissioner for payment and the commissioner shall
provide claims information for recipients enrolled in a managed care plan or county-based
purchasing plan to the plan on a regular basis to be determined by the commissioner.
new text end

deleted text begin (i)deleted text endnew text begin (j)new text end For clinic services provided prior to January 1, 2015, the commissioner shall
calculate and pay monthly the proposed managed care supplemental payments to clinics,
and clinics shall conduct a timely review of the payment calculation data in order to finalize
all supplemental payments in accordance with federal law. Any issues arising from a clinic's
review must be reported to the commissioner by January 1, 2017. Upon final agreement
between the commissioner and a clinic on issues identified under this subdivision, and in
accordance with United States Code, title 42, section 1396a(bb), no supplemental payments
for managed care plan or county-based purchasing plan claims for services provided prior
to January 1, 2015, shall be made after June 30, 2017. If the commissioner and clinics are
unable to resolve issues under this subdivision, the parties shall submit the dispute to the
arbitration process under section 14.57.

deleted text begin (j)deleted text endnew text begin (k)new text end The commissioner shall seek a federal waiver, authorized under section 1115 of
the Social Security Act, to obtain federal financial participation at the 100 percent federal
matching percentage available to facilities of the Indian Health Service or tribal organization
in accordance with section 1905(b) of the Social Security Act for expenditures made to
organizations dually certified under Title V of the Indian Health Care Improvement Act,
Public Law 94-437, and as a deleted text beginfederally qualified health centerdeleted text endnew text begin FQHCnew text end under paragraph (a)
that provides services to American Indian and Alaskan Native individuals eligible for
services under this subdivision.

new text begin (l) Effective for services provided on or after January 1, 2019, all claims for payment
of clinic services provided by FQHCs and rural health clinics shall be paid by the
commissioner according to the current prospective payment system described in paragraph
(f), or an alternative payment methodology with the following requirements:
new text end

new text begin (1) each FQHC and rural health clinic must receive a single medical and a single dental
organization rate;
new text end

new text begin (2) the commissioner shall reimburse FQHCs and rural health clinics for allowable costs,
including direct patient care costs and patient-related support services, based upon Medicare
cost principles that apply at the time the alternative payment methodology is calculated;
new text end

new text begin (3) the 2019 payment rates for FQHCs and rural health clinics:
new text end

new text begin (i) must be determined using each FQHC's and rural health clinic's Medicare cost reports
from 2015 and 2016. A provider must submit the required cost reports to the commissioner
within six months of the second base year calendar or fiscal year end. Cost reports must be
submitted six months before the quarter in which the base rate will take effect;
new text end

new text begin (ii) must be according to current Medicare cost principles applicable to FQHCs and rural
health clinics at the time of the alternative payment rate calculation without the application
of productivity screens and upper payment limits or the Medicare prospective payment
system FQHC aggregate mean upper payment limit; and
new text end

new text begin (iii) must provide for a 60-day appeals process;
new text end

new text begin (4) the commissioner shall inflate the base year payment rate for FQHCs and rural health
clinics to the effective date by using the Bureau of Economic Analysis's personal consumption
expenditures medical care inflator;
new text end

new text begin (5) the commissioner shall establish a statewide trend inflator using 2015-2020 costs
replacing the use of the personal consumption expenditures medical care inflator with the
2023 rate calculation forward;
new text end

new text begin (6) FQHC and rural health clinic payment rates shall be rebased by the commissioner
every two years using the methodology described in clause (3), using the provider's Medicare
cost reports from the previous third and fourth years. In nonrebasing years, the commissioner
shall adjust using the Medicare economic index until 2023 when the statewide trend inflator
is available;
new text end

new text begin (7) the commissioner shall increase payments by two percent according to Laws 2003,
First Special Session chapter 14, article 13C, section 2, subdivision 6. This is an add-on to
the rate and must not be included in the base rate calculation;
new text end

new text begin (8) for FQHCs and rural health clinics seeking a change of scope of services:
new text end

new text begin (i) the commissioner shall require FQHCs and rural health clinics to submit requests to
the commissioner, if the change of scope would result in the medical or dental payment rate
currently received by the FQHC or rural health clinic increasing or decreasing by at least
2-1/2 percent;
new text end

new text begin (ii) FQHCs and rural health clinics shall submit the request to the commissioner within
seven business days of submission of the scope change to the federal Health Resources
Services Administration;
new text end

new text begin (iii) the effective date of the payment change is the date the Health Resources Services
Administration approves the FQHC's or rural health clinic's change of scope request;
new text end

new text begin (iv) for change of scope requests that do not require Health Resources Services
Administration approval, FQHCs and rural health clinics shall submit the request to the
commissioner before implementing the change, and the effective date of the change is the
date the commissioner receives the request from the FQHC or rural health clinic; and
new text end

new text begin (v) the commissioner shall provide a response to the FQHC's or rural health clinic's
change of scope request within 45 days of submission and provide a final decision regarding
approval or disapproval within 120 days of submission. If more information is needed to
evaluate the request, this timeline may be waived by mutual agreement of the commissioner
and the FQHC or rural health clinic; and
new text end

new text begin (9) the commissioner shall establish a payment rate for new FQHC and rural health
clinic organizations, considering the following factors:
new text end

new text begin (i) a comparison of patient caseload of FQHCs and rural health clinics within a 60-mile
radius for organizations established outside the seven-county metropolitan area and within
a 30-mile radius for organizations within the seven-county metropolitan area; and
new text end

new text begin (ii) if a comparison is not feasible under item (i), the commissioner may use Medicare
cost reports or audited financial statements to establish the base rate.
new text end

Sec. 22.

Minnesota Statutes 2016, section 256B.0625, subdivision 45a, is amended to
read:

Subd. 45a.

Psychiatric residential treatment facility services for persons under 21
years of age.

(a) Medical assistance covers psychiatric residential treatment facility servicesnew text begin,
according to section 256B.0941,new text end for persons deleted text beginunderdeleted text endnew text begin younger thannew text end 21 years of age. Individuals
who reach age 21 at the time they are receiving services are eligible to continue receiving
services until they no longer require services or until they reach age 22, whichever occurs
first.

(b) For purposes of this subdivision, "psychiatric residential treatment facility" means
a facility other than a hospital that provides psychiatric services, as described in Code of
Federal Regulations, title 42, sections 441.151 to 441.182, to individuals under age 21 in
an inpatient setting.

(c) deleted text beginThe commissioner shall develop admissions and discharge procedures and establish
rates consistent with guidelines from the federal Centers for Medicare and Medicaid Services.
deleted text end

deleted text begin (d)deleted text end The commissioner shall enroll up to 150 certified psychiatric residential treatment
facility services beds at up to six sites. The commissioner shall select psychiatric residential
treatment facility services providers through a request for proposals process. Providers of
state-operated services may respond to the request for proposals.

Sec. 23.

Minnesota Statutes 2016, section 256B.0625, subdivision 60a, is amended to
read:

Subd. 60a.

Community new text beginmedical response new text endemergency medical technician services.

(a) Medical assistance covers services provided by a communitynew text begin medical responsenew text end emergency
medical technician (CEMT) who is certified under section 144E.275, subdivision 7, when
the services are provided in accordance with this subdivision.

(b) A CEMT may provide a deleted text beginposthospital dischargedeleted text end new text beginpostdischargenew text end visitnew text begin, after discharge
from a hospital or skilled nursing facility,new text end when ordered by a treating physician. The
deleted text begin posthospital dischargedeleted text end new text beginpostdischargenew text end visit includes:

(1) verbal or visual reminders of discharge orders;

(2) recording and reporting of vital signs to the patient's primary care provider;

(3) medication access confirmation;

(4) food access confirmation; and

(5) identification of home hazards.

(c) An individual who has repeat ambulance calls due to fallsdeleted text begin, has been discharged from
a nursing home,deleted text end or has been identified by the individual's primary care provider as at risk
for nursing home placement, may receive a safety evaluation visit from a CEMT when
ordered by a primary care provider in accordance with the individual's care plan. A safety
evaluation visit includes:

(1) medication access confirmation;

(2) food access confirmation; and

(3) identification of home hazards.

(d) A CEMT shall be paid at $9.75 per 15-minute increment. A safety evaluation visit
may not be billed for the same day as a deleted text beginposthospital dischargedeleted text end new text beginpostdischargenew text end visit for the
same individual.

Sec. 24.

Minnesota Statutes 2016, section 256B.0625, subdivision 64, is amended to read:

Subd. 64.

Investigational drugs, biological products, and devices.

Medical assistance
and the early periodic screening, diagnosis, and treatment (EPSDT) program do not cover
costs incidental to, associated with, or resulting from the use of investigational drugs,
biological products, or devices as defined in section 151.375deleted text begin.deleted text endnew text begin, except that stiripentol may
be covered by the EPSDT program, only if all of the following conditions are met:
new text end

new text begin (1) the use of stiripentol is determined to be medically necessary;
new text end

new text begin (2) stiripentol is covered only for eligible enrollees with a documented diagnosis of
Dravet syndrome, regardless of whether an SCN1A genetic mutation is found, or children
with Malignant Migrating Partial Epilepsy in Infancy due to an SCN2A genetic mutation;
new text end

new text begin (3) all other available covered prescription medications that are medically necessary for
the patient have been tried without successful outcomes; and
new text end

new text begin (4) the United States Food and Drug Administration has approved the treating physician's
individual patient investigational new drug application (IND) for the use of stiripentol for
treatment.
new text end

new text begin This provision related to coverage of stiripentol does not apply to MinnesotaCare
coverage under chapter 256L.
new text end

Sec. 25.

Minnesota Statutes 2016, section 256B.0644, is amended to read:

256B.0644 REIMBURSEMENT UNDER OTHER STATE HEALTH CARE
PROGRAMS.

(a) A vendor of medical care, as defined in section 256B.02, subdivision 7, and a health
maintenance organization, as defined in chapter 62D, must participate as a provider or
contractor in the medical assistance program and MinnesotaCare as a condition of
participating as a provider in health insurance plans and programs or contractor for state
employees established under section 43A.18, the public employees insurance program under
section 43A.316, for health insurance plans offered to local statutory or home rule charter
city, county, and school district employees, the workers' compensation system under section
176.135, and insurance plans provided through the Minnesota Comprehensive Health
Association under sections 62E.01 to 62E.19. The limitations on insurance plans offered to
local government employees shall not be applicable in geographic areas where provider
participation is limited by managed care contracts with the Department of Human Services.new text begin
This section does not apply to dental service providers providing dental services outside
the seven-county metropolitan area.
new text end

(b) For providers other than health maintenance organizations, participation in the medical
assistance program means that:

(1) the provider accepts new medical assistance and MinnesotaCare patients;

(2) for providers other than dental service providers, at least 20 percent of the provider's
patients are covered by medical assistance and MinnesotaCare as their primary source of
coverage; or

(3) for dental service providersnew text begin providing dental services in the seven-county metropolitan
areanew text end, at least ten percent of the provider's patients are covered by medical assistance and
MinnesotaCare as their primary source of coverage, or the provider accepts new medical
assistance and MinnesotaCare patients who are children with special health care needs. For
purposes of this section, "children with special health care needs" means children up to age
18 who: (i) require health and related services beyond that required by children generally;
and (ii) have or are at risk for a chronic physical, developmental, behavioral, or emotional
condition, including: bleeding and coagulation disorders; immunodeficiency disorders;
cancer; endocrinopathy; developmental disabilities; epilepsy, cerebral palsy, and other
neurological diseases; visual impairment or deafness; Down syndrome and other genetic
disorders; autism; fetal alcohol syndrome; and other conditions designated by the
commissioner after consultation with representatives of pediatric dental providers and
consumers.

(c) Patients seen on a volunteer basis by the provider at a location other than the provider's
usual place of practice may be considered in meeting the participation requirement in this
section. The commissioner shall establish participation requirements for health maintenance
organizations. The commissioner shall provide lists of participating medical assistance
providers on a quarterly basis to the commissioner of management and budget, the
commissioner of labor and industry, and the commissioner of commerce. Each of the
commissioners shall develop and implement procedures to exclude as participating providers
in the program or programs under their jurisdiction those providers who do not participate
in the medical assistance program. The commissioner of management and budget shall
implement this section through contracts with participating health and dental carriers.

(d) A volunteer dentist who has signed a volunteer agreement under section 256B.0625,
subdivision 9a, shall not be considered to be participating in medical assistance or
MinnesotaCare for the purpose of this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon receipt of any necessary federal
waiver or approval. The commissioner of human services shall notify the revisor of statutes
if a federal waiver or approval is sought and, if sought, when a federal waiver or approval
is obtained.
new text end

Sec. 26.

Minnesota Statutes 2016, section 256B.0755, is amended to read:

256B.0755 deleted text beginHEALTH CARE DELIVERY SYSTEMSdeleted text endnew text begin INTEGRATED HEALTH
PARTNERSHIPnew text end DEMONSTRATION PROJECT.

Subdivision 1.

Implementation.

(a) The commissioner shall develop and authorize a
demonstration project to test alternative and innovative deleted text beginhealth care delivery systemsdeleted text endnew text begin
integrated health partnershipsnew text end, including accountable care organizations that provide services
to a specified patient population for an agreed-upon total cost of care or risk/gain sharing
payment arrangement. The commissioner shall develop a request for proposals for
participation in the demonstration project in consultation with hospitals, primary care
providers, health plans, and other key stakeholders.

(b) In developing the request for proposals, the commissioner shall:

(1) establish uniform statewide methods of forecasting utilization and cost of care for
the appropriate Minnesota public program populations, to be used by the commissioner for
deleted text begin the health care delivery systemdeleted text endnew text begin integrated health partnershipnew text end projects;

(2) identify key indicators of quality, access, patient satisfaction, and other performance
indicators that will be measured, in addition to indicators for measuring cost savings;

(3) allow maximum flexibility to encourage innovation and variation so that a variety
of provider collaborations are able to become deleted text beginhealth care delivery systemsdeleted text endnew text begin integrated health
partnerships and they can be customized for the special needs and barriers of patient
populations experiencing health disparities due to social, economic, racial, or ethnic factorsnew text end;

(4) encourage and authorize different levels and types of financial risk;

(5) encourage and authorize projects representing a wide variety of geographic locations,
patient populations, provider relationships, and care coordination models;

(6) encourage projects that involve close partnerships between the deleted text beginhealth care delivery
systemdeleted text endnew text begin integrated health partnershipsnew text end and counties and nonprofit agencies that provide
services to patients enrolled with the deleted text beginhealth care delivery systemdeleted text endnew text begin integrated health
partnershipsnew text end, including social services, public health, mental health, community-based
services, and continuing care;

(7) encourage projects established by community hospitals, clinics, and other providers
in rural communities;

(8) identify required covered services for a total cost of care model or services considered
in whole or partially in an analysis of utilization for a risk/gain sharing model;

(9) establish a mechanism to monitor enrollment;

(10) establish quality standards for the deleted text begindelivery systemdeleted text endnew text begin integrated health partnershipnew text end
demonstrationsnew text begin that are appropriate for the particular patient population to be servednew text end; and

(11) encourage participation of privately insured population so as to create sufficient
alignment in deleted text begindemonstration systemsdeleted text endnew text begin integrated health partnershipsnew text end.

(c) To be eligible to participate in the demonstration project, deleted text begina health care delivery systemdeleted text endnew text begin
an integrated health partnershipnew text end must:

(1) provide required covered services and care coordination to recipients enrolled in the
deleted text begin health care delivery systemdeleted text endnew text begin integrated health partnershipnew text end;

(2) establish a process to monitor enrollment and ensure the quality of care provided;

(3) in cooperation with counties and community social service agencies, coordinate the
delivery of health care services with existing social services programs;

(4) provide a system for advocacy and consumer protection; and

(5) adopt innovative and cost-effective methods of care delivery and coordination, which
may include the use of allied health professionals, telemedicine, patient educators, care
coordinators, and community health workers.

(d) deleted text beginA health care delivery systemdeleted text endnew text begin An integrated health partnershipnew text end demonstration may
be formed by the following groups of providers of services and suppliers if they have
established a mechanism for shared governance:

(1) professionals in group practice arrangements;

(2) networks of individual practices of professionals;

(3) partnerships or joint venture arrangements between hospitals and health care
professionals;

(4) hospitals employing professionals; and

(5) other groups of providers of services and suppliers as the commissioner determines
appropriate.

A managed care plan or county-based purchasing plan may participate in this
demonstration in collaboration with one or more of the entities listed in clauses (1) to (5).

deleted text begin A health care delivery systemdeleted text endnew text begin An integrated health partnershipnew text end may contract with a
managed care plan or a county-based purchasing plan to provide administrative services,
including the administration of a payment system using the payment methods established
by the commissioner for health care delivery systems.

(e) The commissioner may require deleted text begina health care delivery systemdeleted text endnew text begin an integrated health
partnershipnew text end to enter into additional third-party contractual relationships for the assessment
of risk and purchase of stop loss insurance or another form of insurance risk management
related to the delivery of care described in paragraph (c).

Subd. 2.

Enrollment.

(a) Individuals eligible for medical assistance or MinnesotaCare
shall be eligible for enrollment in deleted text begina health care delivery systemdeleted text endnew text begin an integrated health
partnershipnew text end.

(b) Eligible applicants and recipients may enroll in deleted text begina health care delivery systemdeleted text endnew text begin an
integrated health partnershipnew text end if deleted text begina systemdeleted text endnew text begin an integrated health partnershipnew text end serves the county
in which the applicant or recipient resides. If more than one deleted text beginhealth care delivery systemdeleted text endnew text begin
integrated health partnershipnew text end serves a county, the applicant or recipient shall be allowed to
choose among the deleted text begindelivery systemsdeleted text endnew text begin integrated health partnershipsnew text end.

new text begin (c)new text end The commissioner may assign an applicant or recipient to deleted text begina health care delivery
systemdeleted text endnew text begin an integrated health partnershipnew text end if deleted text begina health care delivery systemdeleted text endnew text begin an integrated health
partnershipnew text end is available and no choice has been made by the applicant or recipient.

Subd. 3.

Accountability.

(a) deleted text beginHealth care delivery systemsdeleted text endnew text begin Integrated health partnershipsnew text end
must accept responsibility for the quality of care based on standards established under
subdivision 1, paragraph (b), clause (10), and the cost of care or utilization of services
provided to its enrollees under subdivision 1, paragraph (b), clause (1).new text begin Accountability
standards must be appropriate to the particular population served.
new text end

(b) deleted text beginA health care delivery systemdeleted text endnew text begin An integrated health partnershipnew text end may contract and
coordinate with providers and clinics for the delivery of services and shall contract with
community health clinics, federally qualified health centers, community mental health
centers or programs, county agencies, and rural clinics to the extent practicable.

(c) deleted text beginA health care delivery systemdeleted text endnew text begin An integrated health partnershipnew text end must indicate how it
will coordinate with other services affecting its patients' health, quality of care, and cost of
care that are provided by other providers, county agencies, and other organizations in the
local service area. The deleted text beginhealth care delivery systemdeleted text endnew text begin integrated health partnershipnew text end must indicate
how it will engage other providers, counties, and organizations, including county-based
purchasing plans, that provide services to patients of the deleted text beginhealth care delivery systemdeleted text endnew text begin
integrated health partnershipnew text end on issues related to local population health, including applicable
local needs, priorities, and public health goals. The deleted text beginhealth care delivery systemdeleted text endnew text begin integrated
health partnershipnew text end must describe how local providers, counties, organizations, including
county-based purchasing plans, and other relevant purchasers were consulted in developing
the application to participate in the demonstration project.

Subd. 4.

Payment system.

(a) In developing a payment system for deleted text beginhealth care delivery
systemsdeleted text endnew text begin integrated health partnershipsnew text end, the commissioner shall establish a total cost of care
benchmark or a risk/gain sharing payment model to be paid for services provided to the
recipients enrolled in deleted text begina health care delivery systemdeleted text endnew text begin an integrated health partnershipnew text end.

(b) The payment system may include incentive payments to deleted text beginhealth care delivery systemsdeleted text endnew text begin
integrated health partnershipsnew text end that meet or exceed annual quality and performance targets
realized through the coordination of care.

(c) An amount equal to the savings realized to the general fund as a result of the
demonstration project shall be transferred each fiscal year to the health care access fund.

new text begin (d) The payment system shall include a population-based payment that supports care
coordination services for all enrollees served by the integrated health partnerships, and is
risk-adjusted to reflect varying levels of care coordination intensiveness for enrollees with
chronic conditions or limited English skills, or who are homeless or experience health
disparities or other barriers to health care. The population-based payment shall be a
per-member per-month payment paid at least on a quarterly basis. Integrated health
partnerships receiving this payment must continue to meet cost and quality metrics under
the program to maintain eligibility for the population-based payment. An integrated health
partnership is eligible to receive a payment under this paragraph even if the partnership is
not participating in a risk-based or gain-sharing payment model and regardless of the size
of the patient population served by the integrated health partnership. Any integrated health
partnership participant certified as a health care home under section 256B.0751 that agrees
to a payment method that includes population-based payments for care coordination is not
eligible to receive health care home payment or care coordination fee authorized under
section 62U.23 or 256B.0753, subdivision 1, or in-reach care coordination under section
256B.0625, subdivision 56, for any medical assistance or MinnesotaCare recipients enrolled
or attributed to the integrated health partnership under this demonstration.
new text end

Subd. 5.

Outpatient prescription drug coverage.

Outpatient prescription drug coverage
may be provided through accountable care organizations only if the delivery method qualifies
for federal prescription drug rebates.

Subd. 6.

Federal approval.

The commissioner shall apply for any federal waivers or
other federal approval required to implement this section. The commissioner shall also apply
for any applicable grant or demonstration under the Patient Protection and Affordable Health
Care Act, Public Law 111-148, or the Health Care and Education Reconciliation Act of
2010, Public Law 111-152, that would further the purposes of or assist in the establishment
of accountable care organizations.

Subd. 7.

Expansion.

The commissioner shall expand the demonstration project to include
additional medical assistance and MinnesotaCare enrollees, and shall seek participation of
Medicare in demonstration projects. The commissioner shall seek to include participation
of privately insured persons and Medicare recipients in the health care delivery
demonstration. As part of the demonstration expansion, the commissioner may procure the
services of the health care delivery systems authorized under this section by geographic
area, to supplement or replace the services provided by managed care plans operating under
section 256B.69.

Sec. 27.

new text begin [256B.0759] HEALTH CARE DELIVERY SYSTEMS DEMONSTRATION
PROJECT.
new text end

new text begin Subdivision 1. new text end

new text begin Implementation. new text end

new text begin (a) The commissioner shall develop and implement a
demonstration project to test alternative and innovative health care delivery system payment
and care models that provide services to medical assistance and MinnesotaCare enrollees
for an agreed-upon, prospective per capita or total cost of care payment. The commissioner
shall implement this demonstration project in coordination with, and as an expansion of,
the demonstration project authorized under section 256B.0755.
new text end

new text begin (b) In developing the demonstration project, the commissioner shall:
new text end

new text begin (1) establish uniform statewide methods of forecasting utilization and cost of care for
the medical assistance and MinnesotaCare populations to be served under the health care
delivery system project;
new text end

new text begin (2) identify key indicators of quality, access, and patient satisfaction, and identify methods
to measure cost savings;
new text end

new text begin (3) allow maximum flexibility to encourage innovation and variation so that a variety
of provider collaborations are able to participate as health care delivery systems, and health
care delivery systems can be customized to address the special needs and barriers of patient
populations;
new text end

new text begin (4) authorize participation by health care delivery systems representing a variety of
geographic locations, patient populations, provider relationships, and care coordination
models;
new text end

new text begin (5) recognize the close partnerships between health care delivery systems and the counties
and nonprofit agencies that also provide services to patients enrolled in the health care
delivery system, including social services, public health, mental health, community-based
services, and continuing care;
new text end

new text begin (6) identify services to be included under a prospective per capita payment model, and
project utilization and cost of these services under a total cost of care risk/gain sharing
model;
new text end

new text begin (7) establish a mechanism to monitor enrollment and attribute enrollees to a specific
health care delivery system; and
new text end

new text begin (8) establish quality standards for delivery systems that are appropriate for the specific
patient populations served.
new text end

new text begin Subd. 2. new text end

new text begin Requirements for health care delivery systems. new text end

new text begin (a) To be eligible to participate
in the demonstration project, a health care delivery system must:
new text end

new text begin (1) provide required services and care coordination to individuals enrolled in the health
care delivery system;
new text end

new text begin (2) establish a process to monitor enrollment and ensure the quality of care provided;
new text end

new text begin (3) in cooperation with counties and community social service agencies, coordinate the
delivery of health care services with existing social services programs;
new text end

new text begin (4) provide a system for advocacy and consumer protection; and
new text end

new text begin (5) adopt innovative and cost-effective methods of care delivery and coordination, which
may include the use of allied health professionals, telemedicine and patient educators, care
coordinators, community paramedics, and community health workers.
new text end

new text begin (b) A health care delivery system may be formed by the following types of health care
providers, if they have established, as applicable, a mechanism for shared governance:
new text end

new text begin (1) health care providers in group practice arrangements;
new text end

new text begin (2) networks of health care providers in individual practice;
new text end

new text begin (3) partnerships or joint venture arrangements between hospitals and health care providers;
new text end

new text begin (4) hospitals employing or contracting with the necessary range of health care providers;
and
new text end

new text begin (5) other entities, as the commissioner determines appropriate.
new text end

new text begin (c) A health care delivery system must contract with a third-party administrator to provide
administrative services, including the administration of the payment system established
under the demonstration project. The third-party administrator must conduct an assessment
of risk, and must purchase stop-loss insurance or another form of insurance risk management
related to the delivery of care. The commissioner may waive the requirement for contracting
with a third-party administrator if the health care delivery system can demonstrate to the
commissioner that it can satisfactorily perform all of the duties assigned to the third-party
administrator.
new text end

new text begin Subd. 3. new text end

new text begin Enrollment. new text end

new text begin (a) Individuals eligible for medical assistance or MinnesotaCare
shall be eligible for enrollment in a health care delivery system. Individuals required to
enroll in the prepaid medical assistance program or prepaid MinnesotaCare may opt out of
receiving care from a managed care or county-based purchasing plan, and elect to receive
care through a health care delivery system established under this section.
new text end

new text begin (b) Eligible applicants and recipients may enroll in a health care delivery system if the
system serves the county in which the applicant or recipient resides. If more than one health
care delivery system serves a county, the applicant or recipient may choose among the
delivery systems.
new text end

new text begin (c) The commissioner shall assign an applicant or recipient to a health care delivery
system if:
new text end

new text begin (1) the applicant or recipient is currently or has recently been attributed to the health
care delivery system as part of an integrated health partnership under section 256B.0755;
or
new text end

new text begin (2) no choice has been made by the applicant or recipient. In this case, the commissioner
shall assign an applicant or recipient based on geographic criteria or based on the health
care providers from whom the applicant or recipient has received prior care.
new text end

new text begin Subd. 4. new text end

new text begin Accountability. new text end

new text begin (a) Health care delivery systems are responsible for the quality
of care based on standards established by the commissioner, and for enrollee cost of care
and utilization of services. The commissioner shall adjust accountability standards including
the quality, cost, and utilization of care to take into account the social, economic, racial, or
ethnic barriers experienced by the health care delivery system's patient population.
new text end

new text begin (b) A health care delivery system must contract with community health clinics, federally
qualified health centers, community mental health centers or programs, county agencies,
and rural health clinics to the extent practicable.
new text end

new text begin (c) A health care delivery system must indicate to the commissioner how it will coordinate
its services with those delivered by other providers, county agencies, and other organizations
in the local service area. The health care delivery system must indicate how it will engage
other providers, counties, and organizations that provide services to patients of the health
care delivery system on issues related to local population health, including applicable local
needs, priorities, and public health goals. The health care delivery system must describe
how local providers, counties, and organizations were consulted in developing the application
submitted to the commissioner requiring participation in the demonstration project.
new text end

new text begin Subd. 5. new text end

new text begin Payment system. new text end

new text begin The commissioner shall develop a payment system for the
health care delivery system project that includes prospective per capita payments, total cost
of care benchmarks, and risk/gain sharing payment options. The payment system may
include incentive payments to health care delivery systems that meet or exceed annual
quality and performance targets through the coordination of care.
new text end

new text begin Subd. 6. new text end

new text begin Federal waiver or approval. new text end

new text begin The commissioner shall seek all federal waivers
or approval necessary to implement the health care delivery system demonstration project.
The commissioner shall notify the chairs and ranking minority members of the legislative
committees with jurisdiction over health and human services policy and finance of any
federal action related to the request for waivers and approval.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018, or upon receipt of
federal waivers or approval, whichever is later. The commissioner of human services shall
notify the revisor of statutes when federal approval is obtained.
new text end

Sec. 28.

new text begin [256B.0941] PSYCHIATRIC RESIDENTIAL TREATMENT FACILITY
FOR PERSONS YOUNGER THAN 21 YEARS OF AGE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin (a) An individual who is eligible for mental health treatment
services in a psychiatric residential treatment facility must meet all of the following criteria:
new text end

new text begin (1) before admission, services are determined to be medically necessary by the state's
medical review agent according to Code of Federal Regulations, title 42, section 441.152;
new text end

new text begin (2) is younger than 21 years of age at the time of admission. Services may continue until
the individual meets criteria for discharge or reaches 22 years of age, whichever occurs
first;
new text end

new text begin (3) has a mental health diagnosis as defined in the most recent edition of the Diagnostic
and Statistical Manual for Mental Disorders, as well as clinical evidence of severe aggression,
or a finding that the individual is a risk to self or others;
new text end

new text begin (4) has functional impairment and a history of difficulty in functioning safely and
successfully in the community, school, home, or job; an inability to adequately care for
one's physical needs; or caregivers, guardians, or family members are unable to safely fulfill
the individual's needs;
new text end

new text begin (5) requires psychiatric residential treatment under the direction of a physician to improve
the individual's condition or prevent further regression so that services will no longer be
needed;
new text end

new text begin (6) utilized and exhausted other community-based mental health services, or clinical
evidence indicates that such services cannot provide the level of care needed; and
new text end

new text begin (7) was referred for treatment in a psychiatric residential treatment facility by a qualified
mental health professional licensed as defined in section 245.4871, subdivision 27, clauses
(1) to (6).
new text end

new text begin (b) A mental health professional making a referral shall submit documentation to the
state's medical review agent containing all information necessary to determine medical
necessity, including a standard diagnostic assessment completed within 180 days of the
individual's admission. Documentation shall include evidence of family participation in the
individual's treatment planning and signed consent for services.
new text end

new text begin Subd. 2. new text end

new text begin Services. new text end

new text begin Psychiatric residential treatment facility service providers must offer
and have the capacity to provide the following services:
new text end

new text begin (1) development of the individual plan of care, review of the individual plan of care
every 30 days, and discharge planning by required members of the treatment team according
to Code of Federal Regulations, title 42, sections 441.155 to 441.156;
new text end

new text begin (2) any services provided by a psychiatrist or physician for development of an individual
plan of care, conducting a review of the individual plan of care every 30 days, and discharge
planning by required members of the treatment team according to Code of Federal
Regulations, title 42, sections 441.155 to 441.156;
new text end

new text begin (3) active treatment seven days per week that may include individual, family, or group
therapy as determined by the individual care plan;
new text end

new text begin (4) individual therapy, provided a minimum of twice per week;
new text end

new text begin (5) family engagement activities, provided a minimum of once per week;
new text end

new text begin (6) consultation with other professionals, including case managers, primary care
professionals, community-based mental health providers, school staff, or other support
planners;
new text end

new text begin (7) coordination of educational services between local and resident school districts and
the facility;
new text end

new text begin (8) 24-hour nursing; and
new text end

new text begin (9) direct care and supervision, supportive services for daily living and safety, and
positive behavior management.
new text end

new text begin Subd. 3. new text end

new text begin Per diem rate. new text end

new text begin (a) The commissioner shall establish a statewide per diem rate
for psychiatric residential treatment facility services for individuals 21 years of age or
younger. The rate for a provider must not exceed the rate charged by that provider for the
same service to other payers. Payment must not be made to more than one entity for each
individual for services provided under this section on a given day. The commissioner shall
set rates prospectively for the annual rate period. The commissioner shall require providers
to submit annual cost reports on a uniform cost reporting form and shall use submitted cost
reports to inform the rate-setting process. The cost reporting shall be done according to
federal requirements for Medicare cost reports.
new text end

new text begin (b) The following are included in the rate:
new text end

new text begin (1) costs necessary for licensure and accreditation, meeting all staffing standards for
participation, meeting all service standards for participation, meeting all requirements for
active treatment, maintaining medical records, conducting utilization review, meeting
inspection of care, and discharge planning. The direct services costs must be determined
using the actual cost of salaries, benefits, payroll taxes, and training of direct services staff
and service-related transportation; and
new text end

new text begin (2) payment for room and board provided by facilities meeting all accreditation and
licensing requirements for participation.
new text end

new text begin (c) A facility may submit a claim for payment outside of the per diem for professional
services arranged by and provided at the facility by an appropriately licensed professional
who is enrolled as a provider with Minnesota health care programs. Arranged services must
be billed by the facility on a separate claim, and the facility shall be responsible for payment
to the provider. These services must be included in the individual plan of care and are subject
to prior authorization by the state's medical review agent.
new text end

new text begin (d) Medicaid shall reimburse for concurrent services as approved by the commissioner
to support continuity of care and successful discharge from the facility. "Concurrent services"
means services provided by another entity or provider while the individual is admitted to a
psychiatric residential treatment facility. Payment for concurrent services may be limited
and these services are subject to prior authorization by the state's medical review agent.
Concurrent services may include targeted case management, assertive community treatment,
clinical care consultation, team consultation, and treatment planning.
new text end

new text begin (e) Payment rates under this subdivision shall not include the costs of providing the
following services:
new text end

new text begin (1) educational services;
new text end

new text begin (2) acute medical care or specialty services for other medical conditions;
new text end

new text begin (3) dental services; and
new text end

new text begin (4) pharmacy drug costs.
new text end

new text begin (f) For purposes of this section, "actual cost" means costs that are allowable, allocable,
reasonable, and consistent with federal reimbursement requirements in Code of Federal
Regulations, title 48, chapter 1, part 31, relating to for-profit entities, and the Office of
Management and Budget Circular Number A-122, relating to nonprofit entities.
new text end

new text begin Subd. 4. new text end

new text begin Leave days. new text end

new text begin (a) Medical assistance covers therapeutic and hospital leave days,
provided the recipient was not discharged from the psychiatric residential treatment facility
and is expected to return to the psychiatric residential treatment facility. A reserved bed
must be held for a recipient on hospital leave or therapeutic leave.
new text end

new text begin (b) A therapeutic leave day to home shall be used to prepare for discharge and
reintegration and shall be included in the individual plan of care. The state shall reimburse
75 percent of the per diem rate for a reserve bed day while the recipient is on therapeutic
leave. A therapeutic leave visit may not exceed three days without prior authorization.
new text end

new text begin (c) A hospital leave day shall be a day for which a recipient has been admitted to a
hospital for medical or acute psychiatric care and is temporarily absent from the psychiatric
residential treatment facility. The state shall reimburse 50 percent of the per diem rate for
a reserve bed day while the recipient is receiving medical or psychiatric care in a hospital.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 29.

Minnesota Statutes 2016, section 256B.0943, subdivision 13, is amended to read:

Subd. 13.

Exception to excluded services.

Notwithstanding subdivision 12, up to 15
hours of children's therapeutic services and supports provided within a six-month period to
a child with severe emotional disturbance who is residing in a hospital; deleted text begina group home as
defined in Minnesota Rules, parts 2960.0130 to 2960.0220;deleted text end a residential treatment facility
licensed under Minnesota Rules, parts 2960.0580 to 2960.0690; new text begina psychiatric residential
treatment facility under section 256B.0625, subdivision 45a; new text enda regional treatment center;
or other institutional group setting or who is participating in a program of partial
hospitalization are eligible for medical assistance payment if part of the discharge plan.

Sec. 30.

Minnesota Statutes 2016, section 256B.0945, subdivision 2, is amended to read:

Subd. 2.

Covered services.

All services must be included in a child's individualized
treatment or multiagency plan of care as defined in chapter 245.

For facilities that are not institutions for mental diseases according to federal statute and
regulation, medical assistance covers mental health-related services that are required to be
provided by a residential facility under section 245.4882 and administrative rules promulgated
thereunder, except for room and board.new text begin For residential facilities determined by the federal
Centers for Medicare and Medicaid Services to be an institution for mental diseases, medical
assistance covers medically necessary mental health services provided by the facility
according to section 256B.055, subdivision 13, except for room and board.
new text end

Sec. 31.

Minnesota Statutes 2016, section 256B.0945, subdivision 4, is amended to read:

Subd. 4.

Payment rates.

(a) Notwithstanding sections 256B.19 and 256B.041, payments
to counties for residential services provided new text beginunder this section new text endby a residential facility shallnew text begin:
new text end

new text begin (1) for services provided by a residential facility that is not an institution for mental
diseases, new text endonly be made of federal earnings for services provided deleted text beginunder this sectiondeleted text end, and the
nonfederal share of costs for services provided under this section shall be paid by the county
from sources other than federal funds or funds used to match other federal funds. Payment
to counties for services provided according to this section shall be a proportion of the per
day contract rate that relates to rehabilitative mental health services and shall not include
payment for costs or services that are billed to the IV-E program as room and boarddeleted text begin.deleted text endnew text begin; and
new text end

new text begin (2) for services provided by a residential facility that is determined to be an institution
for mental diseases, be equivalent to the federal share of the payment that would have been
made if the residential facility were not an institution for mental diseases. The portion of
the payment representing what would be the nonfederal shares shall be paid by the county.
Payment to counties for services provided according to this section shall be a proportion of
the per day contract rate that relates to rehabilitative mental health services and shall not
include payment for costs or services that are billed to the IV-E program as room and board.
new text end

(b) Per diem rates paid to providers under this section by prepaid plans shall be the
proportion of the per-day contract rate that relates to rehabilitative mental health services
and shall not include payment for group foster care costs or services that are billed to the
county of financial responsibility. Services provided in facilities located in bordering states
are eligible for reimbursement on a fee-for-service basis only as described in paragraph (a)
and are not covered under prepaid health plans.

(c) Payment for mental health rehabilitative services provided under this section by or
under contract with an American Indian tribe or tribal organization or by agencies operated
by or under contract with an American Indian tribe or tribal organization must be made
according to section 256B.0625, subdivision 34, or other relevant federally approved
rate-setting methodology.

(d) The commissioner shall set aside a portion not to exceed five percent of the federal
funds earned for county expenditures under this section to cover the state costs of
administering this section. Any unexpended funds from the set-aside shall be distributed to
the counties in proportion to their earnings under this section.

Sec. 32.

Minnesota Statutes 2016, section 256B.15, subdivision 1, is amended to read:

Subdivision 1.

Policy and applicability.

(a) It is the policy of this state that individuals
or couples, either or both of whom participate in the medical assistance program, use their
own assets to pay their share of the cost of their care during or after their enrollment in the
program according to applicable federal law and the laws of this state. The following
provisions apply:

(1) subdivisions 1c to 1k shall not apply to claims arising under this section which are
presented under section 525.313;

(2) the provisions of subdivisions 1c to 1k expanding the interests included in an estate
for purposes of recovery under this section give effect to the provisions of United States
Code, title 42, section 1396p, governing recoveries, but do not give rise to any express or
implied liens in favor of any other parties not named in these provisions;

(3) the continuation of a recipient's life estate or joint tenancy interest in real property
after the recipient's death for the purpose of recovering medical assistance under this section
modifies common law principles holding that these interests terminate on the death of the
holder;

(4) all laws, rules, and regulations governing or involved with a recovery of medical
assistance shall be liberally construed to accomplish their intended purposes;

(5) a deceased recipient's life estate and joint tenancy interests continued under this
section shall be owned by the remainderpersons or surviving joint tenants as their interests
may appear on the date of the recipient's death. They shall not be merged into the remainder
interest or the interests of the surviving joint tenants by reason of ownership. They shall be
subject to the provisions of this section. Any conveyance, transfer, sale, assignment, or
encumbrance by a remainderperson, a surviving joint tenant, or their heirs, successors, and
assigns shall be deemed to include all of their interest in the deceased recipient's life estate
or joint tenancy interest continued under this section; and

(6) the provisions of subdivisions 1c to 1k continuing a recipient's joint tenancy interests
in real property after the recipient's death do not apply to a homestead owned of record, on
the date the recipient dies, by the recipient and the recipient's spouse as joint tenants with
a right of survivorship. Homestead means the real property occupied by the surviving joint
tenant spouse as their sole residence on the date the recipient dies and classified and taxed
to the recipient and surviving joint tenant spouse as homestead property for property tax
purposes in the calendar year in which the recipient dies. For purposes of this exemption,
real property the recipient and their surviving joint tenant spouse purchase solely with the
proceeds from the sale of their prior homestead, own of record as joint tenants, and qualify
as homestead property under section 273.124 in the calendar year in which the recipient
dies and prior to the recipient's death shall be deemed to be real property classified and
taxed to the recipient and their surviving joint tenant spouse as homestead property in the
calendar year in which the recipient dies. The surviving spouse, or any person with personal
knowledge of the facts, may provide an affidavit describing the homestead property affected
by this clause and stating facts showing compliance with this clause. The affidavit shall be
prima facie evidence of the facts it states.

(b) For purposes of this section, "medical assistance" includes the medical assistance
program under this chapter, the general assistance medical care program formerly codified
under chapter 256D, and alternative care for nonmedical assistance recipients under section
256B.0913.

(c) For purposes of this section, deleted text beginbeginning January 1, 2010,deleted text end "medical assistance" does
not include Medicare cost-sharing benefits in accordance with United States Code, title 42,
section 1396p.

(d) All provisions in this subdivision, and subdivisions 1d, 1f, 1g, 1h, 1i, and 1j, related
to the continuation of a recipient's life estate or joint tenancy interests in real property after
the recipient's death for the purpose of recovering medical assistance, are effective only for
life estates and joint tenancy interests established on or after August 1, 2003. For purposes
of this paragraph, medical assistance does not include alternative care.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies retroactively to estate claims pending on or after July 1, 2016, and to the estates of
people who died on or after July 1, 2016.
new text end

Sec. 33.

Minnesota Statutes 2016, section 256B.15, subdivision 1a, is amended to read:

Subd. 1a.

Estates subject to claims.

(a) If a person receives medical assistance hereunder,
on the person's death, if single, or on the death of the survivor of a married couple, either
or both of whom received medical assistance, or as otherwise provided for in this section,
the amount paid for medical assistance as limited under subdivision 2 for the person and
spouse shall be filed as a claim against the estate of the person or the estate of the surviving
spouse in the court having jurisdiction to probate the estate or to issue a decree of descent
according to sections 525.31 to 525.313.

(b) For the purposes of this section, the person's estate must consist of:

(1) the person's probate estate;

(2) all of the person's interests or proceeds of those interests in real property the person
owned as a life tenant or as a joint tenant with a right of survivorship at the time of the
person's death;

(3) all of the person's interests or proceeds of those interests in securities the person
owned in beneficiary form as provided under sections 524.6-301 to 524.6-311 at the time
of the person's death, to the extent the interests or proceeds of those interests become part
of the probate estate under section 524.6-307;

(4) all of the person's interests in joint accounts, multiple-party accounts, and pay-on-death
accounts, brokerage accounts, investment accounts, or the proceeds of those accounts, as
provided under sections 524.6-201 to 524.6-214 at the time of the person's death to the
extent the interests become part of the probate estate under section 524.6-207; and

(5) assets conveyed to a survivor, heir, or assign of the person through survivorship,
living trust, or other arrangements.

(c) For the purpose of this section and recovery in a surviving spouse's estate for medical
assistance paid for a predeceased spouse, the estate must consist of all of the legal title and
interests the deceased individual's predeceased spouse had in jointly owned or marital
property at the time of the spouse's death, as defined in subdivision 2b, and the proceeds of
those interests, that passed to the deceased individual or another individual, a survivor, an
heir, or an assign of the predeceased spouse through a joint tenancy, tenancy in common,
survivorship, life estate, living trust, or other arrangement. A deceased recipient who, at
death, owned the property jointly with the surviving spouse shall have an interest in the
entire property.

(d) For the purpose of recovery in a single person's estate or the estate of a survivor of
a married couple, "other arrangement" includes any other means by which title to all or any
part of the jointly owned or marital property or interest passed from the predeceased spouse
to another including, but not limited to, transfers between spouses which are permitted,
prohibited, or penalized for purposes of medical assistance.

(e) A claim shall be filed if medical assistance was rendered for either or both persons
under one of the following circumstances:

deleted text begin (1) the person was over 55 years of age, and received services under this chapter prior
to January 1, 2014;
deleted text end

deleted text begin (2)deleted text endnew text begin (1)new text end the person resided in a medical institution for six months or longer, received
services under this chapter, and, at the time of institutionalization or application for medical
assistance, whichever is later, the person could not have reasonably been expected to be
discharged and returned home, as certified in writing by the person's treating physician. For
purposes of this section only, a "medical institution" means a skilled nursing facility,
intermediate care facility, intermediate care facility for persons with developmental
disabilities, nursing facility, or inpatient hospital;

deleted text begin (3)deleted text endnew text begin (2)new text end the person received general assistance medical care services under the program
formerly codified under chapter 256D; or

deleted text begin (4)deleted text endnew text begin (3)new text end the person was 55 years of age or older and received medical assistance services
deleted text begin on or after January 1, 2014,deleted text end that consisted of nursing facility services, home and
community-based services, or related hospital and prescription drug benefits.

(f) The claim shall be considered an expense of the last illness of the decedent for the
purpose of section 524.3-805. Notwithstanding any law or rule to the contrary, a state or
county agency with a claim under this section must be a creditor under section 524.6-307.
Any statute of limitations that purports to limit any county agency or the state agency, or
both, to recover for medical assistance granted hereunder shall not apply to any claim made
hereunder for reimbursement for any medical assistance granted hereunder. Notice of the
claim shall be given to all heirs and devisees of the decedent, and to other persons with an
ownership interest in the real property owned by the decedent at the time of the decedent's
death, whose identity can be ascertained with reasonable diligence. The notice must include
procedures and instructions for making an application for a hardship waiver under subdivision
5; time frames for submitting an application and determination; and information regarding
appeal rights and procedures. Counties are entitled to one-half of the nonfederal share of
medical assistance collections from estates that are directly attributable to county effort.
Counties are entitled to ten percent of the collections for alternative care directly attributable
to county effort.

new text begin EFFECTIVE DATE. new text end

Sec. 34.

Minnesota Statutes 2016, section 256B.15, subdivision 2, is amended to read:

Subd. 2.

Limitations on claims.

deleted text begin (a) For services rendered prior to January 1, 2014, the
claim shall include only the total amount of medical assistance rendered after age 55 or
during a period of institutionalization described in subdivision 1a, paragraph (e), and the
total amount of general assistance medical care rendered under the program formerly codified
under chapter 256D, and shall not include interest.
deleted text end

deleted text begin (b) For services rendered on or after January 1, 2014,deleted text end new text begin(a) new text endThe claim shall include only:

(1) the amount of medical assistance rendered to recipients 55 years of age or older deleted text beginanddeleted text end
that consisted of nursing facility services, home and community-based services, and related
hospital and prescription drug services; deleted text beginand
deleted text end

(2) the total amount of medical assistance rendered during a period of institutionalization
described in subdivision 1a, paragraph (e), clause deleted text begin(2).deleted text endnew text begin (1); and
new text end

new text begin (3) the total amount of general assistance medical care rendered under the program
formerly codified under chapter 256D.
new text end

The claim shall not include interest. For the purposes of this section, "home and
community-based services" has the same meaning it has when used in United States Code,
title 42, section 1396p(b)(1)(B)(i), and includes the alternative care program under section
256B.0913new text begin, even for periods when alternative care services receive only state fundingnew text end.

deleted text begin (c)deleted text endnew text begin (b)new text end Claims that have been allowed but not paid shall bear interest according to section
524.3-806, paragraph (d). A claim against the estate of a surviving spouse who did not
receive medical assistance, for medical assistance rendered for the predeceased spouse,
shall be payable from the full value of all of the predeceased spouse's assets and interests
which are part of the surviving spouse's estate under subdivisions 1a and 2b. Recovery of
medical assistance expenses in the nonrecipient surviving spouse's estate is limited to the
value of the assets of the estate that were marital property or jointly owned property at any
time during the marriage. The claim is not payable from the value of assets or proceeds of
assets in the estate attributable to a predeceased spouse whom the individual married after
the death of the predeceased recipient spouse for whom the claim is filed or from assets and
the proceeds of assets in the estate which the nonrecipient decedent spouse acquired with
assets which were not marital property or jointly owned property after the death of the
predeceased recipient spouse. Claims for alternative care shall be net of all premiums paid
under section 256B.0913, subdivision 12, on or after July 1, 2003, and shall be limited to
services provided on or after July 1, 2003. Claims against marital property shall be limited
to claims against recipients who died on or after July 1, 2009.

new text begin EFFECTIVE DATE. new text end

Sec. 35.

Minnesota Statutes 2016, section 256B.196, subdivision 2, is amended to read:

Subd. 2.

Commissioner's duties.

(a) For the purposes of this subdivision and subdivision
3, the commissioner shall determine the fee-for-service outpatient hospital services upper
payment limit for nonstate government hospitals. The commissioner shall then determine
the amount of a supplemental payment to Hennepin County Medical Center and Regions
Hospital for these services that would increase medical assistance spending in this category
to the aggregate upper payment limit for all nonstate government hospitals in Minnesota.
In making this determination, the commissioner shall allot the available increases between
Hennepin County Medical Center and Regions Hospital based on the ratio of medical
assistance fee-for-service outpatient hospital payments to the two facilities. The commissioner
shall adjust this allotment as necessary based on federal approvals, the amount of
intergovernmental transfers received from Hennepin and Ramsey Counties, and other factors,
in order to maximize the additional total payments. The commissioner shall inform Hennepin
County and Ramsey County of the periodic intergovernmental transfers necessary to match
federal Medicaid payments available under this subdivision in order to make supplementary
medical assistance payments to Hennepin County Medical Center and Regions Hospital
equal to an amount that when combined with existing medical assistance payments to
nonstate governmental hospitals would increase total payments to hospitals in this category
for outpatient services to the aggregate upper payment limit for all hospitals in this category
in Minnesota. Upon receipt of these periodic transfers, the commissioner shall make
supplementary payments to Hennepin County Medical Center and Regions Hospital.

(b) For the purposes of this subdivision and subdivision 3, the commissioner shall
determine an upper payment limit for physicians and other billing professionals affiliated
with Hennepin County Medical Center and with Regions Hospital. The upper payment limit
shall be based on the average commercial rate or be determined using another method
acceptable to the Centers for Medicare and Medicaid Services. The commissioner shall
inform Hennepin County and Ramsey County of the periodic intergovernmental transfers
necessary to match the federal Medicaid payments available under this subdivision in order
to make supplementary payments to physicians and other billing professionals affiliated
with Hennepin County Medical Center and to make supplementary payments to physicians
and other billing professionals affiliated with Regions Hospital through HealthPartners
Medical Group equal to the difference between the established medical assistance payment
for physician and other billing professional services and the upper payment limit. Upon
receipt of these periodic transfers, the commissioner shall make supplementary payments
to physicians and other billing professionals affiliated with Hennepin County Medical Center
and shall make supplementary payments to physicians and other billing professionals
affiliated with Regions Hospital through HealthPartners Medical Group.

(c) Beginning January 1, 2010, Hennepin County and Ramsey County may make monthly
voluntary intergovernmental transfers to the commissioner in amounts not to exceed
$12,000,000 per year from Hennepin County and $6,000,000 per year from Ramsey County.
The commissioner shall increase the medical assistance capitation payments to any licensed
health plan under contract with the medical assistance program that agrees to make enhanced
payments to Hennepin County Medical Center or Regions Hospital. The increase shall be
in an amount equal to the annual value of the monthly transfers plus federal financial
participation, with each health plan receiving its pro rata share of the increase based on the
pro rata share of medical assistance admissions to Hennepin County Medical Center and
Regions Hospital by those plans. Upon the request of the commissioner, health plans shall
submit individual-level cost data for verification purposes. The commissioner may ratably
reduce these payments on a pro rata basis in order to satisfy federal requirements for actuarial
soundness. If payments are reduced, transfers shall be reduced accordingly. Any licensed
health plan that receives increased medical assistance capitation payments under the
intergovernmental transfer described in this paragraph shall increase its medical assistance
payments to Hennepin County Medical Center and Regions Hospital by the same amount
as the increased payments received in the capitation payment described in this paragraph.

(d) For the purposes of this subdivision and subdivision 3, the commissioner shall
determine an upper payment limit for ambulance services affiliated with Hennepin County
Medical Center and the city of St. Paulnew text begin, and ambulance services owned and operated by
another governmental entity that chooses to participate by requesting the commissioner to
determine an upper payment limitnew text end. The upper payment limit shall be based on the average
commercial rate or be determined using another method acceptable to the Centers for
Medicare and Medicaid Services. The commissioner shall inform Hennepin County deleted text beginanddeleted text endnew text begin,new text end
the city of St. Paulnew text begin, and other participating governmental entitiesnew text end of the periodic
intergovernmental transfers necessary to match the federal Medicaid payments available
under this subdivision in order to make supplementary payments to Hennepin County
Medical Center deleted text beginanddeleted text endnew text begin,new text end the city of St. Paulnew text begin, and other participating governmental entitiesnew text end equal
to the difference between the established medical assistance payment for ambulance services
and the upper payment limit. Upon receipt of these periodic transfers, the commissioner
shall make supplementary payments to Hennepin County Medical Center deleted text beginanddeleted text endnew text begin,new text end the city of
St. Pauldeleted text begin.deleted text endnew text begin, and other participating governmental entities. A tribal government that owns and
operates an ambulance service is not eligible to participate under this subdivision.
new text end

(e)new text begin For the purposes of this subdivision and subdivision 3, the commissioner shall
determine an upper payment limit for physicians, dentists, and other billing professionals
affiliated with the University of Minnesota and University of Minnesota Physicians. The
upper payment limit shall be based on the average commercial rate or be determined using
another method acceptable to the Centers for Medicare and Medicaid Services. The
commissioner shall inform the University of Minnesota Medical School and University of
Minnesota School of Dentistry of the periodic intergovernmental transfers necessary to
match the federal Medicaid payments available under this subdivision in order to make
supplementary payments to physicians, dentists, and other billing professionals affiliated
with the University of Minnesota and the University of Minnesota Physicians equal to the
difference between the established medical assistance payment for physician, dentist, and
other billing professional services and the upper payment limit. Upon receipt of these periodic
transfers, the commissioner shall make supplementary payments to physicians, dentists,
and other billing professionals affiliated with the University of Minnesota and the University
of Minnesota Physicians.
new text end

new text begin (f) Beginning January 1, 2018, the University of Minnesota Medical School and the
University of Minnesota School of Dentistry may make monthly voluntary intergovernmental
transfers to the commissioner in amounts not to exceed $20,000,000 per year from the
University of Minnesota Medical School and $6,000,000 per year from the University of
Minnesota School of Dentistry. The commissioner shall increase the medical assistance
capitation payments to any licensed health plan under contract with the medical assistance
program that agrees to make enhanced payments to the University of Minnesota and the
University of Minnesota Physicians. The increase shall be in an amount equal to the annual
value of the monthly transfers plus federal financial participation, with each health plan
receiving its pro rata share of the increase based on the pro rata share of medical assistance
services by physicians, dentists, and other billing professionals affiliated with the University
of Minnesota and the University of Minnesota Physicians. Upon the request of the
commissioner, health plans shall submit individual-level cost data for verification purposes.
The commissioner may ratably reduce these payments on a pro rata basis in order to satisfy
federal requirements for actuarial soundness. If payments are reduced, transfers shall be
reduced accordingly. Any licensed health plan that receives increased medical assistance
capitation payments under the intergovernmental transfer described in this paragraph shall
increase its medical assistance payments to the University of Minnesota and the University
of Minnesota Physicians by the same amount as the increased payments received in the
capitation payment described in this paragraph.
new text end

new text begin (g)new text end The commissioner shall inform the transferring governmental entities on an ongoing
basis of the need for any changes needed in the intergovernmental transfers in order to
continue the payments under paragraphs (a) to deleted text begin(d)deleted text endnew text begin (f)new text end, at their maximum level, including
increases in upper payment limits, changes in the federal Medicaid match, and other factors.

deleted text begin (f)deleted text endnew text begin (h)new text end The payments in paragraphs (a) to deleted text begin(d)deleted text endnew text begin (f)new text end shall be implemented independently of
each other, subject to federal approval and to the receipt of transfers under subdivision 3.

new text begin (i) All of the data and funding transactions related to the payments in paragraphs (a) to
(f) shall be between the commissioner and the governmental entities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (d) is effective July 1, 2017, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when federal approval is received.
new text end

Sec. 36.

Minnesota Statutes 2016, section 256B.196, subdivision 3, is amended to read:

Subd. 3.

Intergovernmental transfers.

Based on the determination by the commissioner
under subdivision 2, Hennepin County and Ramsey County shall make periodic
intergovernmental transfers to the commissioner for the purposes of subdivision 2, paragraphs
(a) and (b). All of the intergovernmental transfers made by Hennepin County shall be used
to match federal payments to Hennepin County Medical Center under subdivision 2,
paragraph (a), and to physicians and other billing professionals affiliated with Hennepin
County Medical Center under subdivision 2, paragraph (b). All of the intergovernmental
transfers made by Ramsey County shall be used to match federal payments to Regions
Hospital under subdivision 2, paragraph (a), and to physicians and other billing professionals
affiliated with Regions Hospital through HealthPartners Medical Group under subdivision
2, paragraph (b).new text begin All of the intergovernmental transfer payments made by the University of
Minnesota Medical School and the University of Minnesota School of Dentistry shall be
used to match federal payments to the University of Minnesota and the University of
Minnesota Physicians under subdivision 2, paragraphs (e) and (f).
new text end

Sec. 37.

Minnesota Statutes 2016, section 256B.196, subdivision 4, is amended to read:

Subd. 4.

Adjustments permitted.

(a) The commissioner may adjust the
intergovernmental transfers under subdivision 3 and the payments under subdivision 2,
based on the commissioner's determination of Medicare upper payment limits,
hospital-specific charge limits, hospital-specific limitations on disproportionate share
payments, medical inflation, actuarial certification, new text beginaverage commercial rates for physician
and other professional services, new text endand cost-effectiveness for purposes of federal waivers. Any
adjustments must be made on a proportional basis. The commissioner may make adjustments
under this subdivision only after consultation with the affected countiesnew text begin, university schools,new text end
and hospitals. All payments under subdivision 2 and all intergovernmental transfers under
subdivision 3 are limited to amounts available after all other base rates, adjustments, and
supplemental payments in chapter 256B are calculated.

(b) The ratio of medical assistance payments specified in subdivision 2 to the voluntary
intergovernmental transfers specified in subdivision 3 shall not be reduced except as provided
under paragraph (a).

Sec. 38.

Minnesota Statutes 2016, section 256B.69, subdivision 5a, is amended to read:

Subd. 5a.

Managed care contracts.

(a) Managed care contracts under this section and
section 256L.12 shall be entered into or renewed on a calendar year basis. The commissioner
may issue separate contracts with requirements specific to services to medical assistance
recipients age 65 and older.

(b) A prepaid health plan providing covered health services for eligible persons pursuant
to chapters 256B and 256L is responsible for complying with the terms of its contract with
the commissioner. Requirements applicable to managed care programs under chapters 256B
and 256L established after the effective date of a contract with the commissioner take effect
when the contract is next issued or renewed.

(c) The commissioner shall withhold five percent of managed care plan payments under
this section and county-based purchasing plan payments under section 256B.692 for the
prepaid medical assistance program pending completion of performance targets. Each
performance target must be quantifiable, objective, measurable, and reasonably attainable,
except in the case of a performance target based on a federal or state law or rule. Criteria
for assessment of each performance target must be outlined in writing prior to the contract
effective date. Clinical or utilization performance targets and their related criteria must
consider evidence-based research and reasonable interventions when available or applicable
to the populations served, and must be developed with input from external clinical experts
and stakeholders, including managed care plans, county-based purchasing plans, and
providers. The managed care or county-based purchasing plan must demonstrate, to the
commissioner's satisfaction, that the data submitted regarding attainment of the performance
target is accurate. The commissioner shall periodically change the administrative measures
used as performance targets in order to improve plan performance across a broader range
of administrative services. The performance targets must include measurement of plan
efforts to contain spending on health care services and administrative activities. The
commissioner may adopt plan-specific performance targets that take into account factors
affecting only one plan, including characteristics of the plan's enrollee population. The
withheld funds must be returned no sooner than July of the following year if performance
targets in the contract are achieved. The commissioner may exclude special demonstration
projects under subdivision 23.

(d) The commissioner shall require that managed care plans use the assessment and
authorization processes, forms, timelines, standards, documentation, and data reporting
requirements, protocols, billing processes, and policies consistent with medical assistance
fee-for-service or the Department of Human Services contract requirements consistent with
medical assistance fee-for-service or the Department of Human Services contract
requirements for all personal care assistance services under section 256B.0659.

(e) Effective for services rendered on or after January 1, 2012, the commissioner shall
include as part of the performance targets described in paragraph (c) a reduction in the health
plan's emergency department utilization rate for medical assistance and MinnesotaCare
enrollees, as determined by the commissioner. For 2012, the reduction shall be based on
the health plan's utilization in 2009. To earn the return of the withhold each subsequent
year, the managed care plan or county-based purchasing plan must achieve a qualifying
reduction of no less than ten percent of the plan's emergency department utilization rate for
medical assistance and MinnesotaCare enrollees, excluding enrollees in programs described
in subdivisions 23 and 28, compared to the previous measurement year until the final
performance target is reached. When measuring performance, the commissioner must
consider the difference in health risk in a managed care or county-based purchasing plan's
membership in the baseline year compared to the measurement year, and work with the
managed care or county-based purchasing plan to account for differences that they agree
are significant.

The withheld funds must be returned no sooner than July 1 and no later than July 31 of
the following calendar year if the managed care plan or county-based purchasing plan
demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate
was achieved. The commissioner shall structure the withhold so that the commissioner
returns a portion of the withheld funds in amounts commensurate with achieved reductions
in utilization less than the targeted amount.

The withhold described in this paragraph shall continue for each consecutive contract
period until the plan's emergency room utilization rate for state health care program enrollees
is reduced by 25 percent of the plan's emergency room utilization rate for medical assistance
and MinnesotaCare enrollees for calendar year 2009. Hospitals shall cooperate with the
health plans in meeting this performance target and shall accept payment withholds that
may be returned to the hospitals if the performance target is achieved.

(f) Effective for services rendered on or after January 1, 2012, the commissioner shall
include as part of the performance targets described in paragraph (c) a reduction in the plan's
hospitalization admission rate for medical assistance and MinnesotaCare enrollees, as
determined by the commissioner. To earn the return of the withhold each year, the managed
care plan or county-based purchasing plan must achieve a qualifying reduction of no less
than five percent of the plan's hospital admission rate for medical assistance and
MinnesotaCare enrollees, excluding enrollees in programs described in subdivisions 23 and
28, compared to the previous calendar year until the final performance target is reached.
When measuring performance, the commissioner must consider the difference in health risk
in a managed care or county-based purchasing plan's membership in the baseline year
compared to the measurement year, and work with the managed care or county-based
purchasing plan to account for differences that they agree are significant.

The withheld funds must be returned no sooner than July 1 and no later than July 31 of
the following calendar year if the managed care plan or county-based purchasing plan
demonstrates to the satisfaction of the commissioner that this reduction in the hospitalization
rate was achieved. The commissioner shall structure the withhold so that the commissioner
returns a portion of the withheld funds in amounts commensurate with achieved reductions
in utilization less than the targeted amount.

The withhold described in this paragraph shall continue until there is a 25 percent
reduction in the hospital admission rate compared to the hospital admission rates in calendar
year 2011, as determined by the commissioner. The hospital admissions in this performance
target do not include the admissions applicable to the subsequent hospital admission
performance target under paragraph (g). Hospitals shall cooperate with the plans in meeting
this performance target and shall accept payment withholds that may be returned to the
hospitals if the performance target is achieved.

(g) Effective for services rendered on or after January 1, 2012, the commissioner shall
include as part of the performance targets described in paragraph (c) a reduction in the plan's
hospitalization admission rates for subsequent hospitalizations within 30 days of a previous
hospitalization of a patient regardless of the reason, for medical assistance and MinnesotaCare
enrollees, as determined by the commissioner. To earn the return of the withhold each year,
the managed care plan or county-based purchasing plan must achieve a qualifying reduction
of the subsequent hospitalization rate for medical assistance and MinnesotaCare enrollees,
excluding enrollees in programs described in subdivisions 23 and 28, of no less than five
percent compared to the previous calendar year until the final performance target is reached.

The withheld funds must be returned no sooner than July 1 and no later than July 31 of
the following calendar year if the managed care plan or county-based purchasing plan
demonstrates to the satisfaction of the commissioner that a qualifying reduction in the
subsequent hospitalization rate was achieved. The commissioner shall structure the withhold
so that the commissioner returns a portion of the withheld funds in amounts commensurate
with achieved reductions in utilization less than the targeted amount.

The withhold described in this paragraph must continue for each consecutive contract
period until the plan's subsequent hospitalization rate for medical assistance and
MinnesotaCare enrollees, excluding enrollees in programs described in subdivisions 23 and
28, is reduced by 25 percent of the plan's subsequent hospitalization rate for calendar year
2011. Hospitals shall cooperate with the plans in meeting this performance target and shall
accept payment withholds that must be returned to the hospitals if the performance target
is achieved.

(h) Effective for services rendered on or after January 1, 2013, through December 31,
2013, the commissioner shall withhold 4.5 percent of managed care plan payments under
this section and county-based purchasing plan payments under section 256B.692 for the
prepaid medical assistance program. The withheld funds must be returned no sooner than
July 1 and no later than July 31 of the following year. The commissioner may exclude
special demonstration projects under subdivision 23.

(i) Effective for services rendered on or after January 1, 2014, the commissioner shall
withhold three percent of managed care plan payments under this section and county-based
purchasing plan payments under section 256B.692 for the prepaid medical assistance
program. The withheld funds must be returned no sooner than July 1 and no later than July
31 of the following year. The commissioner may exclude special demonstration projects
under subdivision 23.

(j) A managed care plan or a county-based purchasing plan under section 256B.692 may
include as admitted assets under section 62D.044 any amount withheld under this section
that is reasonably expected to be returned.

(k) Contracts between the commissioner and a prepaid health plan are exempt from the
set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph (a), and
7.

(l) The return of the withhold under paragraphs (h) and (i) is not subject to the
requirements of paragraph (c).

(m) Managed care plans and county-based purchasing plans shall maintain current and
fully executed agreements for all subcontractors, including bargaining groups, for
administrative services that are expensed to the state's public health care programs.
Subcontractor agreements determined to be material, as defined by the commissioner after
taking into account state contracting and relevant statutory requirements, must be in the
form of a written instrument or electronic document containing the elements of offer,
acceptance, consideration, payment terms, scope, duration of the contract, and how the
subcontractor services relate to state public health care programs. Upon request, the
commissioner shall have access to all subcontractor documentation under this paragraph.
Nothing in this paragraph shall allow release of information that is nonpublic data pursuant
to section 13.02.

new text begin (n) Effective for services provided on or after January 1, 2018, through December 31,
2018, the commissioner shall withhold two percent of the capitation payment provided to
managed care plans under this section, and county-based purchasing plans under section
256B.692, for each medical assistance enrollee. The withheld funds must be returned no
sooner than July 1 and no later than July 31 of the following year, for capitation payments
for enrollees for whom the plan has submitted to the commissioner a verification of coverage
form completed and signed by the enrollee. The verification of coverage form must be
developed by the commissioner and made available to managed care and county-based
purchasing plans. The form must require the enrollee to provide the enrollee's name, street
address, and the name of the managed care or county-based purchasing plan selected by or
assigned to the enrollee, and must include a signature block that allows the enrollee to attest
that the information provided is accurate. A plan shall request that all enrollees complete
the verification of coverage form, and shall submit all completed forms to the commissioner
by February 28, 2018. If a completed form for an enrollee is not received by the commissioner
by that date:
new text end

new text begin (1) the commissioner shall not return to the plan funds withheld for that enrollee;
new text end

new text begin (2) the commissioner shall cease making capitation payments to the plan for that enrollee,
effective with the April 2018 coverage month; and
new text end

new text begin (3) the commissioner shall disenroll the enrollee from medical assistance, subject to any
enrollee appeal.
new text end

Sec. 39.

Minnesota Statutes 2016, section 256B.69, is amended by adding a subdivision
to read:

new text begin Subd. 36. new text end

new text begin Competitive bidding and procurement. new text end

new text begin (a) For managed care organization
contracts effective on or after January 1, 2019, the commissioner shall utilize a competitive
price and technical bidding program on a regional basis for nonelderly adults and children
who are not eligible on the basis of a disability and are enrolled in medical assistance and
MinnesotaCare. If the commissioner utilizes a competitive price bidding program, the
commissioner shall establish geographic regions for the purposes of competitive price
bidding. The commissioner shall not implement a competitive price bidding program for
more than 40 percent of the regions during each procurement. The commissioner shall
ensure that there is an adequate choice of managed care organizations based on the potential
enrollment, in a manner that is consistent with the requirements of section 256B.694. The
commissioner shall operate the competitive bidding program by region, but shall award
contracts by county and shall allow managed care organizations with a service area consisting
of only a portion of a region to bid on those counties within their service area only. For
purposes of this subdivision, "managed care organization" means a demonstration provider
as defined in subdivision 2, paragraph (b).
new text end

new text begin (b) The commissioner shall provide the scoring weight of selection criteria to be assigned
in the procurement process and include the scoring weight in the request for proposals.
Substantial weight shall be given to county board resolutions and priority areas identified
by counties.
new text end

new text begin (c) If a best and final offer is requested, each responding managed care organization
must be offered the opportunity to submit a best and final offer.
new text end

new text begin (d) The commissioner, when evaluating proposals, shall consider network adequacy for
dental and other services.
new text end

new text begin (e) Notwithstanding sections 13.591 and 13.599, after the managed care organizations
are notified about the award determination, but before contracts are signed, the commissioner
shall provide each managed care organization with its own scoring sheet and supporting
information. The scoring sheet shall not be made available to other managed care
organizations until final contracts are signed.
new text end

new text begin (f) A managed care organization that is aggrieved by the commissioner's decision related
to the selection of managed care organizations to deliver services in a county or counties
may appeal the commissioner's decision using the process outlined in section 256B.69,
subdivision 3a, paragraph (d), except that the recommendation of the three-person mediation
panel shall be binding on the commissioner.
new text end

new text begin (g) The commissioner shall contract for an independent evaluation of the competitive
price bidding process. The contractor must solicit recommendations from all parties
participating in the competitive price bidding process for service delivery in calendar year
2019 on how the competitive price bidding process may be improved for service delivery
in calendar year 2020 and annually thereafter. The commissioner shall make evaluation
results available to the public on the department's Web site.
new text end

Sec. 40.

Minnesota Statutes 2016, section 256B.75, is amended to read:

256B.75 HOSPITAL OUTPATIENT REIMBURSEMENT.

(a) For outpatient hospital facility fee payments for services rendered on or after October
1, 1992, the commissioner of human services shall pay the lower of (1) submitted charge,
or (2) 32 percent above the rate in effect on June 30, 1992, except for those services for
which there is a federal maximum allowable payment. Effective for services rendered on
or after January 1, 2000, payment rates for nonsurgical outpatient hospital facility fees and
emergency room facility fees shall be increased by eight percent over the rates in effect on
December 31, 1999, except for those services for which there is a federal maximum allowable
payment. Services for which there is a federal maximum allowable payment shall be paid
at the lower of (1) submitted charge, or (2) the federal maximum allowable payment. Total
aggregate payment for outpatient hospital facility fee services shall not exceed the Medicare
upper limit. If it is determined that a provision of this section conflicts with existing or
future requirements of the United States government with respect to federal financial
participation in medical assistance, the federal requirements prevail. The commissioner
may, in the aggregate, prospectively reduce payment rates to avoid reduced federal financial
participation resulting from rates that are in excess of the Medicare upper limitations.

(b) Notwithstanding paragraph (a), payment for outpatient, emergency, and ambulatory
surgery hospital facility fee services for critical access hospitals designated under section
144.1483, clause (9), shall be paid on a cost-based payment system that is based on the
cost-finding methods and allowable costs of the Medicare program. Effective for services
provided on or after July 1, 2015, rates established for critical access hospitals under this
paragraph for the applicable payment year shall be the final payment and shall not be settled
to actual costs.new text begin Effective for services delivered on or after the first day of the hospital's fiscal
year ending in 2016, the rate for outpatient hospital services shall be computed using
information from each hospital's Medicare cost report as filed with Medicare for the year
that is two years before the year that the rate is being computed. Rates shall be computed
using information from Worksheet C series until the department finalizes the medical
assistance cost reporting process for critical access hospitals. After the cost reporting process
is finalized, rates shall be computed using information from Title XIX Worksheet D series.
The outpatient rate shall be equal to ancillary cost plus outpatient cost, excluding costs
related to rural health clinics and federally qualified health clinics, divided by ancillary
charges plus outpatient charges, excluding charges related to rural health clinics and federally
qualified health clinics.
new text end

(c) Effective for services provided on or after July 1, 2003, rates that are based on the
Medicare outpatient prospective payment system shall be replaced by a budget neutral
prospective payment system that is derived using medical assistance data. The commissioner
shall provide a proposal to the 2003 legislature to define and implement this provision.

(d) For fee-for-service services provided on or after July 1, 2002, the total payment,
before third-party liability and spenddown, made to hospitals for outpatient hospital facility
services is reduced by .5 percent from the current statutory rate.

(e) In addition to the reduction in paragraph (d), the total payment for fee-for-service
services provided on or after July 1, 2003, made to hospitals for outpatient hospital facility
services before third-party liability and spenddown, is reduced five percent from the current
statutory rates. Facilities defined under section 256.969, subdivision 16, are excluded from
this paragraph.

(f) In addition to the reductions in paragraphs (d) and (e), the total payment for
fee-for-service services provided on or after July 1, 2008, made to hospitals for outpatient
hospital facility services before third-party liability and spenddown, is reduced three percent
from the current statutory rates. Mental health services and facilities defined under section
256.969, subdivision 16, are excluded from this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 41.

new text begin [256B.7635] REIMBURSEMENT FOR EVIDENCE-BASED PUBLIC
HEALTH NURSE HOME VISITS.
new text end

new text begin Effective for services provided on or after January 1, 2018, prenatal and postpartum
follow-up home visits provided by public health nurses or registered nurses supervised by
a public health nurse using evidence-based models shall be paid a minimum of $140 per
visit. Evidence-based postpartum follow-up home visits must be administered by home
visiting programs that meet the United States Department of Health and Human Services
criteria for evidence-based models and are identified by the commissioner of health as
eligible to be implemented under the Maternal, Infant, and Early Childhood Home Visiting
program. Home visits must target mothers and their children beginning with prenatal visits
through age three for the child.
new text end

Sec. 42.

Minnesota Statutes 2016, section 256B.766, is amended to read:

256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.

(a) Effective for services provided on or after July 1, 2009, total payments for basic care
services, shall be reduced by three percent, except that for the period July 1, 2009, through
June 30, 2011, total payments shall be reduced by 4.5 percent for the medical assistance
and general assistance medical care programs, prior to third-party liability and spenddown
calculation. Effective July 1, 2010, the commissioner shall classify physical therapy services,
occupational therapy services, and speech-language pathology and related services as basic
care services. The reduction in this paragraph shall apply to physical therapy services,
occupational therapy services, and speech-language pathology and related services provided
on or after July 1, 2010.

(b) Payments made to managed care plans and county-based purchasing plans shall be
reduced for services provided on or after October 1, 2009, to reflect the reduction effective
July 1, 2009, and payments made to the plans shall be reduced effective October 1, 2010,
to reflect the reduction effective July 1, 2010.

(c) Effective for services provided on or after September 1, 2011, through June 30, 2013,
total payments for outpatient hospital facility fees shall be reduced by five percent from the
rates in effect on August 31, 2011.

(d) Effective for services provided on or after September 1, 2011, through June 30, 2013,
total payments for ambulatory surgery centers facility fees, medical supplies and durable
medical equipment not subject to a volume purchase contract, prosthetics and orthotics,
renal dialysis services, laboratory services, public health nursing services, physical therapy
services, occupational therapy services, speech therapy services, eyeglasses not subject to
a volume purchase contract, hearing aids not subject to a volume purchase contract, and
anesthesia services shall be reduced by three percent from the rates in effect on August 31,
2011.

(e) Effective for services provided on or after September 1, 2014, payments for
ambulatory surgery centers facility fees, hospice services, renal dialysis services, laboratory
services, public health nursing services, eyeglasses not subject to a volume purchase contract,
and hearing aids not subject to a volume purchase contract shall be increased by three percent
and payments for outpatient hospital facility fees shall be increased by three percent.
Payments made to managed care plans and county-based purchasing plans shall not be
adjusted to reflect payments under this paragraph.

(f) Payments for medical supplies and durable medical equipment not subject to a volume
purchase contract, and prosthetics and orthotics, provided on or after July 1, 2014, through
June 30, 2015, shall be decreased by .33 percent. Payments for medical supplies and durable
medical equipment not subject to a volume purchase contract, and prosthetics and orthotics,
provided on or after July 1, 2015, shall be increased by three percent from the rates as
determined under paragraphs (i) and (j).

(g) Effective for services provided on or after July 1, 2015, payments for outpatient
hospital facility fees, medical supplies and durable medical equipment not subject to a
volume purchase contract, prosthetics and orthotics, and laboratory services to a hospital
meeting the criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause (4),
shall be increased by 90 percent from the rates in effect on June 30, 2015. Payments made
to managed care plans and county-based purchasing plans shall not be adjusted to reflect
payments under this paragraph.

(h) This section does not apply to physician and professional services, inpatient hospital
services, family planning services, mental health services, dental services, prescription
drugs, medical transportation, federally qualified health centers, rural health centers, Indian
health services, and Medicare cost-sharing.

(i) Effective for services provided on or after July 1, 2015, the following categories ofnew text begin
medical supplies andnew text end durable medical equipment shall be individually priced items: enteral
nutrition and supplies, customized and other specialized tracheostomy tubes and supplies,
electric patient lifts, and durable medical equipment repair and service. This paragraph does
not apply to medical supplies and durable medical equipment subject to a volume purchase
contract, products subject to the preferred diabetic testing supply program, and items provided
to dually eligible recipients when Medicare is the primary payer for the item. The
commissioner shall not apply any medical assistance rate reductions to durable medical
equipment as a result of Medicare competitive bidding.

(j) Effective for services provided on or after July 1, 2015, medical assistance payment
rates for durable medical equipment, prosthetics, orthotics, or supplies shall be increased
as follows:

(1) payment rates for durable medical equipment, prosthetics, orthotics, or supplies that
were subject to the Medicare competitive bid that took effect in January of 2009 shall be
increased by 9.5 percent; and

(2) payment rates for durable medical equipment, prosthetics, orthotics, or supplies on
the medical assistance fee schedule, whether or not subject to the Medicare competitive bid
that took effect in January of 2009, shall be increased by 2.94 percent, with this increase
being applied after calculation of any increased payment rate under clause (1).

This paragraph does not apply to medical supplies and durable medical equipment subject
to a volume purchase contract, products subject to the preferred diabetic testing supply
program, items provided to dually eligible recipients when Medicare is the primary payer
for the item, and individually priced items identified in paragraph (i). Payments made to
managed care plans and county-based purchasing plans shall not be adjusted to reflect the
rate increases in this paragraph.

new text begin (k) Effective for nonpressure support ventilators provided on or after January 1, 2016,
the rate shall be the lower of the submitted charge or the Medicare fee schedule rate. Effective
for pressure support ventilators provided on or after January 1, 2016, the rate shall be the
lower of the submitted charge or 47 percent above the Medicare fee schedule rate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2016.
new text end

Sec. 43.

new text begin [256B.90] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin For the purposes of sections 256B.90 to 256B.92, the following
terms have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of human services.
new text end

new text begin Subd. 3. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Human Services.
new text end

new text begin Subd. 4. new text end

new text begin Hospital. new text end

new text begin "Hospital" means a public or private institution licensed as a hospital
under section 144.50 that participates in medical assistance.
new text end

new text begin Subd. 5. new text end

new text begin Medical assistance. new text end

new text begin "Medical assistance" means the state's Medicaid program
under title XIX of the Social Security Act and administered according to this chapter.
new text end

new text begin Subd. 6. new text end

new text begin Potentially avoidable complication. new text end

new text begin "Potentially avoidable complication"
means a harmful event or negative outcome with respect to an individual, including an
infection or surgical complication, that: (1) occurs after the individual's admission to a
hospital or long-term care facility; and (2) may have resulted from the care, lack of care, or
treatment provided during the hospital or long-term care facility stay rather than from a
natural progression of an underlying disease.
new text end

new text begin Subd. 7. new text end

new text begin Potentially avoidable event. new text end

new text begin "Potentially avoidable event" means a potentially
avoidable complication, potentially avoidable readmission, or a combination of those events.
new text end

new text begin Subd. 8. new text end

new text begin Potentially avoidable readmission. new text end

new text begin "Potentially avoidable readmission" means
a return hospitalization of an individual within a period specified by the commissioner that
may have resulted from deficiencies in the care or treatment provided to the individual
during a previous hospital stay or from deficiencies in posthospital discharge follow-up.
Potentially avoidable readmission does not include a hospital readmission necessitated by
the occurrence of unrelated events after the discharge. Potentially avoidable readmission
includes the readmission of an individual to a hospital for: (1) the same condition or
procedure for which the individual was previously admitted; (2) an infection or other
complication resulting from care previously provided; or (3) a condition or procedure that
indicates that a surgical intervention performed during a previous admission was unsuccessful
in achieving the anticipated outcome.
new text end

Sec. 44.

new text begin [256B.91] MEDICAL ASSISTANCE OUTCOMES-BASED PAYMENT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The commissioner must establish and implement a medical
assistance outcomes-based payment program as a hospital outcomes program under section
256B.92 to provide hospitals with information and incentives to reduce potentially avoidable
events.
new text end

new text begin Subd. 2. new text end

new text begin Potentially avoidable event methodology. new text end

new text begin (a) The commissioner shall issue
a request for proposals to select a methodology for identifying potentially avoidable events
and for the costs associated with these events, and for measuring hospital performance with
respect to these events.
new text end

new text begin (b) The commissioner shall develop definitions for each potentially avoidable event
according to the selected methodology.
new text end

new text begin (c) To the extent possible, the methodology shall be one that has been used by other title
XIX programs under the Social Security Act or by commercial payers in health care outcomes
performance measurement and in outcome-based payment programs. The methodology
shall be open, transparent, and available for review by the public.
new text end

new text begin Subd. 3. new text end

new text begin Medical assistance system waste. new text end

new text begin (a) The commissioner must conduct a
comprehensive analysis of relevant state databases to identify waste in the medical assistance
system.
new text end

new text begin (b) The analysis must identify instances of potentially avoidable events in medical
assistance, and the costs associated with these events. The overall estimate of waste must
be broken down into actionable categories including but not limited to regions, hospitals,
MCOs, physicians, service lines, diagnosis-related groups, medical conditions and procedures,
patient characteristics, provider characteristics, and medical assistance program type.
new text end

new text begin (c) Information collected from this analysis must be utilized in hospital outcomes
programs described in this section.
new text end

Sec. 45.

new text begin [256B.92] HOSPITAL OUTCOMES PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The hospital outcomes program shall:
new text end

new text begin (1) target reduction of potentially avoidable readmissions and complications;
new text end

new text begin (2) apply to all state acute care hospitals participating in medical assistance. Program
adjustments may be made for certain types of hospitals; and
new text end

new text begin (3) be implemented in two phases: performance reporting and outcomes-based financial
incentives.
new text end

new text begin Subd. 2. new text end

new text begin Phase 1; performance reporting. new text end

new text begin (a) The commissioner shall develop and
maintain a reporting system to provide each hospital in Minnesota with regular confidential
reports regarding the hospital's performance for potentially avoidable readmissions and
potentially avoidable complications.
new text end

new text begin (b) The commissioner shall:
new text end

new text begin (1) conduct ongoing analyses of relevant state claims databases to identify instances of
potentially avoidable readmissions and potentially avoidable complications, and the
expenditures associated with these events;
new text end

new text begin (2) create or locate state readmission and complications norms;
new text end

new text begin (3) measure actual-to-expected hospital performance compared to state norms;
new text end

new text begin (4) compare hospitals with peers using risk adjustment procedures that account for the
severity of illness of each hospital's patients;
new text end

new text begin (5) distribute reports to hospitals to provide actionable information to create policies,
contracts, or programs designed to improve target outcomes; and
new text end

new text begin (6) foster collaboration among hospitals to share best practices.
new text end

new text begin (c) A hospital may share the information contained in the outcome performance reports
with physicians and other health care providers providing services at the hospital to foster
coordination and cooperation in the hospital's outcome improvement and waste reduction
initiatives.
new text end

new text begin Subd. 3. new text end

new text begin Phase 2; outcomes-based financial incentives. new text end

new text begin Twelve months after
implementation of performance reporting under subdivision 2, the commissioner must
establish financial incentives for a hospital to reduce potentially avoidable readmissions
and potentially avoidable complications.
new text end

new text begin Subd. 4. new text end

new text begin Rate adjustment methodology. new text end

new text begin (a) The commissioner must adjust the
reimbursement that a hospital receives under the All Patients Refined Diagnosis-Related
Group inpatient prospective payment system based on the hospital's performance exceeding,
or failing to achieve, outcome results based on the rates of potentially avoidable readmissions
and potentially avoidable complications.
new text end

new text begin (b) The rate adjustment methodology must:
new text end

new text begin (1) apply to each hospital discharge;
new text end

new text begin (2) determine a hospital-specific potentially avoidable outcome adjustment factor based
on the hospital's actual versus expected risk-adjusted performance compared to the state
norm;
new text end

new text begin (3) be based on a retrospective analysis of performance prospectively applied;
new text end

new text begin (4) include both rewards and penalties; and
new text end

new text begin (5) be communicated to a hospital in a clear and transparent manner.
new text end

new text begin Subd. 5. new text end

new text begin Amendment of contracts. new text end

new text begin The commissioner must amend contracts with
participating hospitals as necessary to incorporate the financial incentives established under
this section.
new text end

new text begin Subd. 6. new text end

new text begin Budget neutrality. new text end

new text begin The hospital outcomes program shall be implemented in a
budget-neutral manner with respect to aggregate Medicaid hospital expenditures.
new text end

Sec. 46.

Minnesota Statutes 2016, section 256L.15, subdivision 2, is amended to read:

Subd. 2.

Sliding fee scale; monthly individual or family income.

(a) The commissioner
shall establish a sliding fee scale to determine the percentage of monthly individual or family
income that households at different income levels must pay to obtain coverage through the
MinnesotaCare program. The sliding fee scale must be based on the enrollee's monthly
individual or family income.

(b) Beginning deleted text beginJanuary 1, 2014deleted text endnew text begin October 1, 2017new text end, MinnesotaCare enrollees shall pay
premiums according to the premium scale specified in paragraph (d).

(1) children 20 years of age or younger; and

(2) individuals with household incomes below 35 percent of the federal poverty
guidelines.

(d) The following premium scale is established for each individual in the household who
is 21 years of age or older and enrolled in MinnesotaCare:

Federal Poverty Guideline Greater than or Equal to	Less than	Individual Premium Amount
35%	55%	deleted text begin $4 deleted text end new text begin $5 new text end
55%	80%	deleted text begin $6 deleted text end new text begin $7 new text end
80%	90%	deleted text begin $8 deleted text end new text begin $11 new text end
90%	100%	deleted text begin $10 deleted text end new text begin $12 new text end
100%	110%	deleted text begin $12 deleted text end new text begin $13 new text end
110%	120%	deleted text begin $14 deleted text end new text begin $15 new text end
120%	130%	deleted text begin $15 deleted text end new text begin $16 new text end
130%	140%	deleted text begin $16 deleted text end new text begin $18 new text end
140%	150%	deleted text begin $25 deleted text end new text begin $32 new text end
150%	160%	deleted text begin $29 deleted text end new text begin $40 new text end
160%	170%	deleted text begin $33 deleted text end new text begin $48 new text end
170%	180%	deleted text begin $38 deleted text end new text begin $56 new text end
180%	190%	deleted text begin $43 deleted text end new text begin $65 new text end
190%		deleted text begin $50 deleted text end new text begin $75 new text end
new text begin 200% new text end		new text begin $85 new text end

Sec. 47. new text beginCAPITATION PAYMENT DELAY.
new text end

new text begin (a) The commissioner of human services shall delay $135,000,000 of the medical
assistance and MinnesotaCare capitation payment to managed care plans and county-based
purchasing plans due in May 2019 and the payment due in April 2019 for special needs
basic care until July 1, 2019. The payment shall be made no earlier than July 1, 2019, and
no later than July 31, 2019.
new text end

new text begin (b) The commissioner of human services shall delay $135,000,000 of the medical
assistance and MinnesotaCare capitation payment to managed care plans and county-based
purchasing plans due in the second quarter of calendar year 2021 and the April 2021 payment
for special needs basic care until July 1, 2021. The payment shall be made no earlier than
July 1, 2021, and no later than July 31, 2021.
new text end

Sec. 48. new text beginCHILDREN'S MENTAL HEALTH REPORT AND RECOMMENDATIONS.
new text end

new text begin The commissioner of human services shall conduct a comprehensive analysis of
Minnesota's continuum of intensive mental health services and shall develop
recommendations for a sustainable and community-driven continuum of care for children
with serious mental health needs, including children currently being served in residential
treatment. The commissioner's analysis shall include, but not be limited to:
new text end

new text begin (1) data related to access, utilization, efficacy, and outcomes for Minnesota's current
system of residential mental health treatment for a child with a severe emotional disturbance;
new text end

new text begin (2) potential expansion of the state's psychiatric residential treatment facility (PRTF)
capacity, including increasing the number of PRTF beds and conversion of existing children's
mental health residential treatment programs into PRTFs;
new text end

new text begin (3) the capacity need for PRTF and other group settings within the state if adequate
community-based alternatives are accessible, equitable, and effective statewide;
new text end

new text begin (4) recommendations for expanding alternative community-based service models to
meet the needs of a child with a serious mental health disorder who would otherwise require
residential treatment and potential service models that could be utilized, including data
related to access, utilization, efficacy, and outcomes;
new text end

new text begin (5) models of care used in other states; and
new text end

new text begin (6) analysis and specific recommendations for the design and implementation of new
service models, including analysis to inform rate setting as necessary.
new text end

new text begin The analysis shall be supported and informed by extensive stakeholder engagement.
Stakeholders include individuals who receive services, family members of individuals who
receive services, providers, counties, health plans, advocates, and others. Stakeholder
engagement shall include interviews with key stakeholders, intentional outreach to individuals
who receive services and the individual's family members, and regional listening sessions.
new text end

new text begin The commissioner shall provide a report with specific recommendations and timelines
for implementation to the legislative committees with jurisdiction over children's mental
health policy and finance by November 15, 2018.
new text end

Sec. 49. new text beginENCOUNTER REPORTING OF 340B ELIGIBLE DRUGS.
new text end

new text begin (a) The commissioner of human services, in consultation with federally qualified health
centers, managed care organizations, and contract pharmacies shall develop a report on the
feasibility of a process to identify and report at point of sale the 340B drugs that are dispensed
to enrollees of managed care organizations who are patients of a federally qualified health
center to exclude these claims from the Medicaid drug rebate program and ensure that
duplicate discounts for drugs do not occur.
new text end

new text begin (b) By January 1, 2018, the commissioner shall present the report to the chairs and
ranking minority members of the house of representatives and senate committees with
jurisdiction over medical assistance.
new text end

Sec. 50. new text beginRATE-SETTING ANALYSIS REPORT.
new text end

new text begin The commissioner of human services shall conduct a comprehensive analysis report of
the current rate-setting methodology for outpatient, professional, and physician services
that do not have a cost-based, federally mandated, or contracted rate. The report shall include
recommendations for changes to the existing fee schedule that utilizes the Resource-Based
Relative Value System (RBRVS), and alternate payment methodologies for services that
do not have relative values, to simplify the fee for service medical assistance rate structure
and to improve consistency and transparency. In developing the report, the commissioner
shall consult with outside experts in Medicaid financing. The commissioner shall provide
a report on the analysis to the chairs and ranking minority members of the legislative
committees with jurisdiction over health and human services finance by November 1, 2019.
new text end

Sec. 51. new text beginSTUDY OF PAYMENT RATES FOR DURABLE MEDICAL EQUIPMENT
AND SUPPLIES.
new text end

new text begin The commissioner of human services shall study the impact of basing medical assistance
payment for durable medical equipment and medical supplies on Medicare payment rates,
as limited by the payment provisions in the 21st Century Cures Act, Public Law 114-255,
on access by medical assistance enrollees to these items. The study must include
recommendations for ensuring and improving access by medical assistance enrollees to
durable medical equipment and medical supplies. The commissioner shall report study
results and recommendations to the chairs and ranking minority members of the legislative
committees with jurisdiction over health and human services policy and finance by February
1, 2018.
new text end

Sec. 52. new text beginFEDERAL APPROVAL.
new text end

new text begin The commissioner of human services shall request any federal waivers and approvals
necessary to allow the state to retain federal funds accruing in the state's basic health program
trust fund, and expend those funds for purposes other than those specified in Code of Federal
Regulations, title 42, part 600.705. The commissioner shall report any federal action regarding
this request to the chairs and ranking minority members of the legislative committees with
jurisdiction over health and human services policy and finance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 53. new text beginFEDERAL WAIVER OR APPROVAL.
new text end

new text begin The commissioner of human services shall seek any federal waiver or approval necessary
to implement Minnesota Statutes, section 256B.0644.
new text end

ARTICLE 2

CONTINUING CARE

Section 1.

Minnesota Statutes 2016, section 144.0724, subdivision 6, is amended to read:

Subd. 6.

Penalties for late or nonsubmission.

(a) A facility that fails to complete or
submit an assessment according to subdivisions 4 and 5 for a RUG-IV classification within
seven days of the time requirements listed in the Long-Term Care Facility Resident
Assessment Instrument User's Manual is subject to a reduced rate for that resident. The
reduced rate shall be the lowest rate for that facility. The reduced rate is effective on the
day of admission for new admission assessments, on the ARD for significant change in
status assessments, or on the day that the assessment was due for all other assessments and
continues in effect until the first day of the month following the date of submission and
acceptance of the resident's assessment.

(b) If loss of revenue due to penalties incurred by a facility for any period of 92 days
are equal to or greater than deleted text begin1.0deleted text endnew text begin 0.1new text end percent of the total operating costs on the facility's most
recent annual statistical and cost report, a facility may apply to the commissioner of human
services for a reduction in the total penalty amount. The commissioner of human services,
in consultation with the commissioner of health, may, at the sole discretion of the
commissioner of human services, limit the penalty for residents covered by medical assistance
to deleted text begin15deleted text endnew text begin tennew text end days.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2016, section 144.562, subdivision 2, is amended to read:

Subd. 2.

Eligibility for license condition.

(a) A hospital is not eligible to receive a
license condition for swing beds unless (1) it either has a licensed bed capacity of less than
50 beds defined in the federal Medicare regulations, Code of Federal Regulations, title 42,
section 482.66, or it has a licensed bed capacity of 50 beds or more and has swing beds that
were approved for Medicare reimbursement before May 1, 1985, or it has a licensed bed
capacity of less than 65 beds and the available nursing homes within 50 miles have had, in
the aggregate, an average occupancy rate of 96 percent or higher in the most recent two
years as documented on the statistical reports to the Department of Health; and (2) it is
located in a rural area as defined in the federal Medicare regulations, Code of Federal
Regulations, title 42, section 482.66.

(b) Except for those critical access hospitals established under section 144.1483, clause
(9), and section 1820 of the federal Social Security Act, United States Code, title 42, section
1395i-4, that have an attached nursing home or that owned a nursing home located in the
same municipality as of May 1, 2005, eligible hospitals are allowed a total of 2,000 days
of swing bed use per year. Critical access hospitals that have an attached nursing home or
that owned a nursing home located in the same municipality as of May 1, 2005, are allowed
swing bed use as provided in federal law.

(c) Except for critical access hospitals that have an attached nursing home or that owned
a nursing home located in the same municipality as of May 1, 2005, the commissioner of
health may approve swing bed use beyond 2,000 days as long as there are no Medicare
certified skilled nursing facility beds available within 25 miles of that hospital that are
willing to admit the patientnew text begin and the patient agrees to the referral being sent to the skilled
nursing facilitynew text end. Critical access hospitals exceeding 2,000 swing bed days must maintain
documentation that they have contacted skilled nursing facilities within 25 miles to determine
if any skilled nursing facility beds are available that are willing to admit the patientnew text begin and the
patient agrees to the referral being sent to the skilled nursing facilitynew text end.

(d) After reaching 2,000 days of swing bed use in a year, an eligible hospital to which
this limit applies may admit six additional patients to swing beds each year without seeking
approval from the commissioner or being in violation of this subdivision. These six swing
bed admissions are exempt from the limit of 2,000 annual swing bed days for hospitals
subject to this limit.

(e) A health care system that is in full compliance with this subdivision may allocate its
total limit of swing bed days among the hospitals within the system, provided that no hospital
in the system without an attached nursing home may exceed 2,000 swing bed days per year.

Sec. 3.

Minnesota Statutes 2016, section 144A.74, is amended to read:

144A.74 MAXIMUM CHARGES.

A supplemental nursing services agency must not bill or receive payments from a nursing
home licensed under this chapter at a rate higher than 150 percent of the sum of the weighted
average wage rate, plus a factor determined by the commissioner to incorporate payroll
taxes as defined in deleted text beginMinnesota Rules, part 9549.0020, subpart 33deleted text endnew text begin section 256R.02, subdivision
37new text end, for the applicable employee classification for the geographic group to which the nursing
home is assigned under Minnesota Rules, part 9549.0052. The weighted average wage rates
must be determined by the commissioner of human services and reported to the commissioner
of health on an annual basis. Wages are defined as hourly rate of pay and shift differential,
including weekend shift differential and overtime. Facilities shall provide information
necessary to determine weighted average wage rates to the commissioner of human services
in a format requested by the commissioner. The maximum rate must include all charges for
administrative fees, contract fees, or other special charges in addition to the hourly rates for
the temporary nursing pool personnel supplied to a nursing home.new text begin A nursing home that pays
for the actual travel and housing costs for supplemental nursing services agency staff working
at the facility and that pays these costs to the employee, the agency, or another vendor, is
not violating the limitation on charges described in this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2016, section 245D.03, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

(a) The commissioner shall regulate the provision of home
and community-based services to persons with disabilities and persons age 65 and older
pursuant to this chapter. The licensing standards in this chapter govern the provision of
basic support services and intensive support services.

(b) Basic support services provide the level of assistance, supervision, and care that is
necessary to ensure the health and welfare of the person and do not include services that
are specifically directed toward the training, treatment, habilitation, or rehabilitation of the
person. Basic support services include:

(1) in-home and out-of-home respite care services as defined in section 245A.02,
subdivision 15, and under the brain injury, community alternative care, community access
for disability inclusion, developmental disability, and elderly waiver plans, excluding
out-of-home respite care provided to children in a family child foster care home licensed
under Minnesota Rules, parts 2960.3000 to 2960.3100, when the child foster care license
holder complies with the requirements under section 245D.06, subdivisions 5, 6, 7, and 8,
or successor provisions; and section 245D.061 or successor provisions, which must be
stipulated in the statement of intended use required under Minnesota Rules, part 2960.3000,
subpart 4;

(2) adult companion services as defined under the brain injury, community access for
disability inclusion, and elderly waiver plans, excluding adult companion services provided
under the Corporation for National and Community Services Senior Companion Program
established under the Domestic Volunteer Service Act of 1973, Public Law 98-288;

(3) personal support as defined under the developmental disability waiver plan;

(4) 24-hour emergency assistance, personal emergency response as defined under the
community access for disability inclusion and developmental disability waiver plans;

(5) night supervision services as defined under the brain injury waiver plan; and

(6) homemaker services as defined under the community access for disability inclusion,
brain injury, community alternative care, developmental disability, and elderly waiver plans,
excluding providers licensed by the Department of Health under chapter 144A and those
providers providing cleaning services only.

(c) Intensive support services provide assistance, supervision, and care that is necessary
to ensure the health and welfare of the person and services specifically directed toward the
training, habilitation, or rehabilitation of the person. Intensive support services include:

(1) intervention services, including:

(i) behavioral support services as defined under the brain injury and community access
for disability inclusion waiver plans;

(ii) in-home or out-of-home crisis respite services as defined under the developmental
disability waiver plan; and

(iii) specialist services as defined under the current developmental disability waiver
plan;

(2) in-home support services, including:

(i) in-home family support and supported living services as defined under the
developmental disability waiver plan;

(ii) independent living services training as defined under the brain injury and community
access for disability inclusion waiver plans; and

(iii) semi-independent living services;

(3) residential supports and services, including:

(i) supported living services as defined under the developmental disability waiver plan
provided in a family or corporate child foster care residence, a family adult foster care
residence, a community residential setting, or a supervised living facility;

(ii) foster care services as defined in the brain injury, community alternative care, and
community access for disability inclusion waiver plans provided in a family or corporate
child foster care residence, a family adult foster care residence, or a community residential
setting; and

(iii) residential services provided to more than four persons with developmental
disabilities in a supervised living facility, including ICFs/DD;

(4) day services, including:

(i) structured day services as defined under the brain injury waiver plan;

(ii) day training and habilitation services under sections 252.41 to 252.46, and as defined
under the developmental disability waiver plan; and

(iii) prevocational services as defined under the brain injury and community access for
disability inclusion waiver plans; and

(5) deleted text beginsupported employment as defined under the brain injury, developmental disability,
and community access for disability inclusion waiver plans.deleted text endnew text begin employment exploration services
as defined under the brain injury, community alternative care, community access for disability
inclusion, and developmental disability waiver plans;
new text end

new text begin (6) employment development services as defined under the brain injury, community
alternative care, community access for disability inclusion, and developmental disability
waiver plans; and
new text end

new text begin (7) employment support services as defined under the brain injury, community alternative
care, community access for disability inclusion, and developmental disability waiver plans.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon federal approval. The commissioner
of human services shall notify the revisor of statutes when federal approval is obtained.
new text end

Sec. 5.

Minnesota Statutes 2016, section 252.27, subdivision 2a, is amended to read:

Subd. 2a.

Contribution amount.

(a) The natural or adoptive parents of a minor child,
including a child determined eligible for medical assistance without consideration of parental
income, must contribute to the cost of services used by making monthly payments on a
sliding scale based on income, unless the child is married or has been married, parental
rights have been terminated, or the child's adoption is subsidized according to chapter 259A
or through title IV-E of the Social Security Act. The parental contribution is a partial or full
payment for medical services provided for diagnostic, therapeutic, curing, treating, mitigating,
rehabilitation, maintenance, and personal care services as defined in United States Code,
title 26, section 213, needed by the child with a chronic illness or disability.

(b) For households with adjusted gross income equal to or greater than 275 percent of
federal poverty guidelines, the parental contribution shall be computed by applying the
following schedule of rates to the adjusted gross income of the natural or adoptive parents:

(1) if the adjusted gross income is equal to or greater than 275 percent of federal poverty
guidelines and less than or equal to 545 percent of federal poverty guidelines, the parental
contribution shall be determined using a sliding fee scale established by the commissioner
of human services which begins at deleted text begin2.23deleted text endnew text begin 1.6725new text end percent of adjusted gross income at 275
percent of federal poverty guidelines and increases to deleted text begin6.08deleted text end new text begin4.56 new text endpercent of adjusted gross
income for those with adjusted gross income up to 545 percent of federal poverty guidelines;

(2) if the adjusted gross income is greater than 545 percent of federal poverty guidelines
and less than 675 percent of federal poverty guidelines, the parental contribution shall be
deleted text begin 6.08deleted text end new text begin4.56 new text endpercent of adjusted gross income;

(3) if the adjusted gross income is equal to or greater than 675 percent of federal poverty
guidelines and less than 975 percent of federal poverty guidelines, the parental contribution
shall be determined using a sliding fee scale established by the commissioner of human
services which begins at deleted text begin6.08deleted text end new text begin4.56 new text endpercent of adjusted gross income at 675 percent of federal
poverty guidelines and increases to deleted text begin8.1deleted text endnew text begin 6.075new text end percent of adjusted gross income for those
with adjusted gross income up to 975 percent of federal poverty guidelines; and

(4) if the adjusted gross income is equal to or greater than 975 percent of federal poverty
guidelines, the parental contribution shall be deleted text begin10.13deleted text end new text begin7.5975 new text endpercent of adjusted gross income.

If the child lives with the parent, the annual adjusted gross income is reduced by $2,400
prior to calculating the parental contribution. If the child resides in an institution specified
in section 256B.35, the parent is responsible for the personal needs allowance specified
under that section in addition to the parental contribution determined under this section.
The parental contribution is reduced by any amount required to be paid directly to the child
pursuant to a court order, but only if actually paid.

(c) The household size to be used in determining the amount of contribution under
paragraph (b) includes natural and adoptive parents and their dependents, including the
child receiving services. Adjustments in the contribution amount due to annual changes in
the federal poverty guidelines shall be implemented on the first day of July following
publication of the changes.

(d) For purposes of paragraph (b), "income" means the adjusted gross income of the
natural or adoptive parents determined according to the previous year's federal tax form,
except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds
have been used to purchase a home shall not be counted as income.

(e) The contribution shall be explained in writing to the parents at the time eligibility
for services is being determined. The contribution shall be made on a monthly basis effective
with the first month in which the child receives services. Annually upon redetermination
or at termination of eligibility, if the contribution exceeded the cost of services provided,
the local agency or the state shall reimburse that excess amount to the parents, either by
direct reimbursement if the parent is no longer required to pay a contribution, or by a
reduction in or waiver of parental fees until the excess amount is exhausted. All
reimbursements must include a notice that the amount reimbursed may be taxable income
if the parent paid for the parent's fees through an employer's health care flexible spending
account under the Internal Revenue Code, section 125, and that the parent is responsible
for paying the taxes owed on the amount reimbursed.

(f) The monthly contribution amount must be reviewed at least every 12 months; when
there is a change in household size; and when there is a loss of or gain in income from one
month to another in excess of ten percent. The local agency shall mail a written notice 30
days in advance of the effective date of a change in the contribution amount. A decrease in
the contribution amount is effective in the month that the parent verifies a reduction in
income or change in household size.

(g) Parents of a minor child who do not live with each other shall each pay the
contribution required under paragraph (a). An amount equal to the annual court-ordered
child support payment actually paid on behalf of the child receiving services shall be deducted
from the adjusted gross income of the parent making the payment prior to calculating the
parental contribution under paragraph (b).

(h) The contribution under paragraph (b) shall be increased by an additional five percent
if the local agency determines that insurance coverage is available but not obtained for the
child. For purposes of this section, "available" means the insurance is a benefit of employment
for a family member at an annual cost of no more than five percent of the family's annual
income. For purposes of this section, "insurance" means health and accident insurance
coverage, enrollment in a nonprofit health service plan, health maintenance organization,
self-insured plan, or preferred provider organization.

Parents who have more than one child receiving services shall not be required to pay
more than the amount for the child with the highest expenditures. There shall be no resource
contribution from the parents. The parent shall not be required to pay a contribution in
excess of the cost of the services provided to the child, not counting payments made to
school districts for education-related services. Notice of an increase in fee payment must
be given at least 30 days before the increased fee is due.

(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, in
the 12 months prior to July 1:

(1) the parent applied for insurance for the child;

(2) the insurer denied insurance;

(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted a
complaint or appeal, in writing, to the commissioner of health or the commissioner of
commerce, or litigated the complaint or appeal; and

(4) as a result of the dispute, the insurer reversed its decision and granted insurance.

For purposes of this section, "insurance" has the meaning given in paragraph (h).

A parent who has requested a reduction in the contribution amount under this paragraph
shall submit proof in the form and manner prescribed by the commissioner or county agency,
including, but not limited to, the insurer's denial of insurance, the written letter or complaint
of the parents, court documents, and the written response of the insurer approving insurance.
The determinations of the commissioner or county agency under this paragraph are not rules
subject to chapter 14.

Sec. 6.

Minnesota Statutes 2016, section 252.41, subdivision 3, is amended to read:

Subd. 3.

Day training and habilitation services for adults with developmental
disabilities.

new text begin(a) new text end"Day training and habilitation services for adults with developmental
disabilities" means services that:

(1) include supervision, training, assistance, deleted text beginand supported employment,deleted text endnew text begin center-basednew text end
work-related activities, or other community-integrated activities designed and implemented
in accordance with the individual service and individual habilitation plans required under
Minnesota Rules, parts 9525.0004 to 9525.0036, to help an adult reach and maintain the
highest possible level of independence, productivity, and integration into the community;
and

(2) are provided by a vendor licensed under sections 245A.01 to 245A.16 and 252.28,
subdivision 2, to provide day training and habilitation services.

new text begin (b) new text endDay training and habilitation services reimbursable under this section do not include
special education and related services as defined in the Education of the Individuals with
Disabilities Act, United States Code, title 20, chapter 33, section 1401, clauses (6) and (17),
or vocational services funded under section 110 of the Rehabilitation Act of 1973, United
States Code, title 29, section 720, as amended.

new text begin (c) Day training and habilitation services do not include employment exploration,
employment development, or employment supports services as defined in the home and
community-based services waivers for people with disabilities authorized under sections
256B.092 and 256B.49.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon federal approval. The commissioner
of human services shall notify the revisor of statutes when federal approval is obtained.
new text end

Sec. 7.

new text begin [256.9755] CAREGIVER SUPPORT PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Program goals. new text end

new text begin It is the goal of all area agencies on aging and caregiver
support programs to support family caregivers of persons with Alzheimer's disease or other
related dementias who are living in the community by:
new text end

new text begin (1) promoting caregiver support programs that serve Minnesotans in their homes and
communities; and
new text end

new text begin (2) providing, within the limits of available funds, the caregiver support services that
will enable the family caregiver to access caregiver support programs in the most
cost-effective and efficient manner.
new text end

new text begin Subd. 2. new text end

new text begin Authority. new text end

new text begin The Minnesota Board on Aging shall allocate to area agencies on
aging the state and federal funds which are received for the caregiver support program in a
manner consistent with federal requirements.
new text end

new text begin Subd. 3. new text end

new text begin Caregiver support services. new text end

new text begin Funds allocated to an area agency on aging for
caregiver support services must be used in a manner consistent with the National Family
Caregiver Support Program to reach family caregivers of persons with Alzheimer's disease
or related dementias. The funds must be used to provide social, nonmedical,
community-based services and activities that provide respite for caregivers and social
interaction for participants.
new text end

Sec. 8.

Minnesota Statutes 2016, section 256B.0625, subdivision 6a, is amended to read:

Subd. 6a.

Home health services.

Home health services are those services specified in
Minnesota Rules, part 9505.0295 and sections 256B.0651 and 256B.0653. Medical assistance
covers home health services at a recipient's home residencenew text begin or in the community where
normal life activities take the recipientnew text end. Medical assistance does not cover home health
services for residents of a hospital, nursing facility, or intermediate care facility, unless the
commissioner of human services has authorized skilled nurse visits for less than 90 days
for a resident at an intermediate care facility for persons with developmental disabilities,
to prevent an admission to a hospital or nursing facility or unless a resident who is otherwise
eligible is on leave from the facility and the facility either pays for the home health services
or forgoes the facility per diem for the leave days that home health services are used. Home
health services must be provided by a Medicare certified home health agency. All nursing
and home health aide services must be provided according to sections 256B.0651 to
256B.0653.

Sec. 9.

Minnesota Statutes 2016, section 256B.0653, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For the purposes of this section, the following terms have the
meanings given.

(a) "Assessment" means an evaluation of the recipient's medical need for home health
agency services by a registered nurse or appropriate therapist that is conducted within 30
days of a request.

(b) "Home care therapies" means occupational, physical, and respiratory therapy and
speech-language pathology services provided in the home by a Medicare certified home
health agency.

(c) "Home health agency services" means services delivered deleted text beginin the recipient's home
residence, except as specified in section 256B.0625,deleted text end by a home health agency to a recipient
with medical needs due to illness, disability, or physical conditionsnew text begin in settings permitted
under section 256B.0625, subdivision 6anew text end.

(d) "Home health aide" means an employee of a home health agency who completes
medically oriented tasks written in the plan of care for a recipient.

(e) "Home health agency" means a home care provider agency that is Medicare-certified.

(f) "Occupational therapy services" mean the services defined in Minnesota Rules, part
9505.0390.

(g) "Physical therapy services" mean the services defined in Minnesota Rules, part
9505.0390.

(h) "Respiratory therapy services" mean the services defined in chapter 147C.

(i) "Speech-language pathology services" mean the services defined in Minnesota Rules,
part 9505.0390.

(j) "Skilled nurse visit" means a professional nursing visit to complete nursing tasks
required due to a recipient's medical condition that can only be safely provided by a
professional nurse to restore and maintain optimal health.

(k) "Store-and-forward technology" means telehomecare services that do not occur in
real time via synchronous transmissions such as diabetic and vital sign monitoring.

(l) "Telehomecare" means the use of telecommunications technology via live, two-way
interactive audiovisual technology which may be augmented by store-and-forward
technology.

(m) "Telehomecare skilled nurse visit" means a visit by a professional nurse to deliver
a skilled nurse visit to a recipient located at a site other than the site where the nurse is
located and is used in combination with face-to-face skilled nurse visits to adequately meet
the recipient's needs.

Sec. 10.

Minnesota Statutes 2016, section 256B.0653, subdivision 3, is amended to read:

Subd. 3.

Home health aide visits.

(a) Home health aide visits must be provided by a
certified home health aide using a written plan of care that is updated in compliance with
Medicare regulations. A home health aide shall provide hands-on personal care, perform
simple procedures as an extension of therapy or nursing services, and assist in instrumental
activities of daily living as defined in section 256B.0659, including assuring that the person
gets to medical appointments if identified in the written plan of care. Home health aide
visits deleted text beginmustdeleted text endnew text begin maynew text end be provided in the recipient's homenew text begin or in the community where normal life
activities take the recipientnew text end.

(b) All home health aide visits must have authorization under section 256B.0652. The
commissioner shall limit home health aide visits to no more than one visit per day per
recipient.

(c) Home health aides must be supervised by a registered nurse or an appropriate therapist
when providing services that are an extension of therapy.

Sec. 11.

Minnesota Statutes 2016, section 256B.0653, subdivision 4, is amended to read:

Subd. 4.

Skilled nurse visit services.

(a) Skilled nurse visit services must be provided
by a registered nurse or a licensed practical nurse under the supervision of a registered nurse,
according to the written plan of care and accepted standards of medical and nursing practice
according to chapter 148. Skilled nurse visit services must be ordered by a physician and
documented in a plan of care that is reviewed and approved by the ordering physician at
least once every 60 days. All skilled nurse visits must be medically necessary and provided
in the recipient's home residencenew text begin or in the community where normal life activities take the
recipient,new text end except as allowed under section 256B.0625, subdivision 6a.

(b) Skilled nurse visits include face-to-face and telehomecare visits with a limit of up
to two visits per day per recipient. All visits must be based on assessed needs.

(c) Telehomecare skilled nurse visits are allowed when the recipient's health status can
be accurately measured and assessed without a need for a face-to-face, hands-on encounter.
All telehomecare skilled nurse visits must have authorization and are paid at the same
allowable rates as face-to-face skilled nurse visits.

(d) The provision of telehomecare must be made via live, two-way interactive audiovisual
technology and may be augmented by utilizing store-and-forward technologies. Individually
identifiable patient data obtained through real-time or store-and-forward technology must
be maintained as health records according to sections 144.291 to 144.298. If the video is
used for research, training, or other purposes unrelated to the care of the patient, the identity
of the patient must be concealed.

(e) Authorization for skilled nurse visits must be completed under section 256B.0652.
A total of nine face-to-face skilled nurse visits per calendar year do not require authorization.
All telehomecare skilled nurse visits require authorization.

Sec. 12.

Minnesota Statutes 2016, section 256B.0653, subdivision 5, is amended to read:

Subd. 5.

Home care therapies.

(a) Home care therapies include the following: physical
therapy, occupational therapy, respiratory therapy, and speech and language pathology
therapy services.

(b) Home care therapies must be:

(1) provided in the recipient's residencenew text begin or in the community where normal life activities
take the recipientnew text end after it has been determined the recipient is unable to access outpatient
therapy;

(2) prescribed, ordered, or referred by a physician and documented in a plan of care and
reviewed, according to Minnesota Rules, part 9505.0390;

(3) assessed by an appropriate therapist; and

(4) provided by a Medicare-certified home health agency enrolled as a Medicaid provider
agency.

(c) Restorative and specialized maintenance therapies must be provided according to
Minnesota Rules, part 9505.0390. Physical and occupational therapy assistants may be used
as allowed under Minnesota Rules, part 9505.0390, subpart 1, item B.

(d) For both physical and occupational therapies, the therapist and the therapist's assistant
may not both bill for services provided to a recipient on the same day.

Sec. 13.

Minnesota Statutes 2016, section 256B.0653, subdivision 6, is amended to read:

Subd. 6.

Noncovered home health agency services.

The following are not eligible for
payment under medical assistance as a home health agency service:

(1) telehomecare skilled nurses services that is communication between the home care
nurse and recipient that consists solely of a telephone conversation, facsimile, electronic
mail, or a consultation between two health care practitioners;

(2) the following skilled nurse visits:

(i) for the purpose of monitoring medication compliance with an established medication
program for a recipient;

(ii) administering or assisting with medication administration, including injections,
prefilling syringes for injections, or oral medication setup of an adult recipient, when, as
determined and documented by the registered nurse, the need can be met by an available
pharmacy or the recipient or a family member is physically and mentally able to
self-administer or prefill a medication;

(iii) services done for the sole purpose of supervision of the home health aide or personal
care assistant;

(iv) services done for the sole purpose to train other home health agency workers;

(v) services done for the sole purpose of blood samples or lab draw when the recipient
is able to access these services outside the home; and

(vi) Medicare evaluation or administrative nursing visits required by Medicare;

(3) home health aide visits when the following activities are the sole purpose for the
visit: companionship, socialization, household tasks, transportation, and education; deleted text beginand
deleted text end

(4) home care therapies provided in other settings such as a clinicdeleted text begin, day program,deleted text end or as
an inpatient or when the recipient can access therapy outside of the recipient's residencenew text begin;
and
new text end

new text begin (5) home health agency services without qualifying documentation of a face-to-face
encounter as specified in subdivision 7new text end.

Sec. 14.

Minnesota Statutes 2016, section 256B.0653, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Face-to-face encounter. new text end

new text begin (a) A face-to-face encounter by a qualifying provider
must be completed for all home health services regardless of the need for prior authorization,
except when providing a onetime perinatal visit by skilled nursing. The face-to-face encounter
may occur through telemedicine as defined in section 256B.0625, subdivision 3b. The
encounter must be related to the primary reason the recipient requires home health services
and must occur within the 90 days before or the 30 days after the start of services. The
face-to-face encounter may be conducted by one of the following practitioners, licensed in
Minnesota:
new text end

new text begin (1) a physician;
new text end

new text begin (2) a nurse practitioner or clinical nurse specialist;
new text end

new text begin (3) a certified nurse midwife; or
new text end

new text begin (4) a physician assistant.
new text end

new text begin (b) The allowed nonphysician practitioner, as described in this subdivision, performing
the face-to-face encounter must communicate the clinical findings of that face-to-face
encounter to the ordering physician. Those clinical findings must be incorporated into a
written or electronic document included in the recipient's medical record. To assure clinical
correlation between the face-to-face encounter and the associated home health services, the
physician responsible for ordering the services must:
new text end

new text begin (1) document that the face-to-face encounter, which is related to the primary reason the
recipient requires home health services, occurred within the required time period; and
new text end

new text begin (2) indicate the practitioner who conducted the encounter and the date of the encounter.
new text end

new text begin (c) For home health services requiring authorization, including prior authorization, home
health agencies must retain the qualifying documentation of a face-to-face encounter as part
of the recipient health service record, and submit the qualifying documentation to the
commissioner or the commissioner's designee upon request.
new text end

Sec. 15.

Minnesota Statutes 2016, section 256B.431, subdivision 30, is amended to read:

Subd. 30.

Bed layaway and delicensure.

(a) For rate years beginning on or after July
1, 2000, a nursing facility reimbursed under this section which has placed beds on layaway
shall, for purposes of application of the downsizing incentive in subdivision 3a, paragraph
(c), and calculation of the rental per diem, have those beds given the same effect as if the
beds had been delicensed so long as the beds remain on layaway. At the time of a layaway,
a facility may change its single bed election for use in calculating capacity days under
Minnesota Rules, part 9549.0060, subpart 11. The property payment rate increase shall be
effective the first day of the monthnew text begin of January or July, whichever occurs firstnew text end following the
deleted text begin monthdeleted text endnew text begin datenew text end in which the layaway of the beds becomes effective under section 144A.071,
subdivision 4b.

(b) For rate years beginning on or after July 1, 2000, notwithstanding any provision to
the contrary under section 256B.434, a nursing facility reimbursed under that section which
has placed beds on layaway shall, for so long as the beds remain on layaway, be allowed
to:

(1) aggregate the applicable investment per bed limits based on the number of beds
licensed immediately prior to entering the alternative payment system;

(2) retain or change the facility's single bed election for use in calculating capacity days
under Minnesota Rules, part 9549.0060, subpart 11; and

(3) establish capacity days based on the number of beds immediately prior to the layaway
and the number of beds after the layaway.

The commissioner shall increase the facility's property payment rate by the incremental
increase in the rental per diem resulting from the recalculation of the facility's rental per
diem applying only the changes resulting from the layaway of beds and clauses (1), (2), and
(3). If a facility reimbursed under section 256B.434 completes a moratorium exception
project after its base year, the base year property rate shall be the moratorium project property
rate. The base year rate shall be inflated by the factors in section 256B.434, subdivision 4,
paragraph (c). The property payment rate increase shall be effective the first day of the
monthnew text begin of January or July, whichever occurs firstnew text end following the deleted text beginmonthdeleted text endnew text begin datenew text end in which the
layaway of the beds becomes effective.

(c) If a nursing facility removes a bed from layaway status in accordance with section
144A.071, subdivision 4b, the commissioner shall establish capacity days based on the
number of licensed and certified beds in the facility not on layaway and shall reduce the
nursing facility's property payment rate in accordance with paragraph (b).

(d) For the rate years beginning on or after July 1, 2000, notwithstanding any provision
to the contrary under section 256B.434, a nursing facility reimbursed under that section,
which has delicensed beds after July 1, 2000, by giving notice of the delicensure to the
commissioner of health according to the notice requirements in section 144A.071, subdivision
4b, shall be allowed to:

(1) aggregate the applicable investment per bed limits based on the number of beds
licensed immediately prior to entering the alternative payment system;

(2) retain or change the facility's single bed election for use in calculating capacity days
under Minnesota Rules, part 9549.0060, subpart 11; and

(3) establish capacity days based on the number of beds immediately prior to the
delicensure and the number of beds after the delicensure.

The commissioner shall increase the facility's property payment rate by the incremental
increase in the rental per diem resulting from the recalculation of the facility's rental per
diem applying only the changes resulting from the delicensure of beds and clauses (1), (2),
and (3). If a facility reimbursed under section 256B.434 completes a moratorium exception
project after its base year, the base year property rate shall be the moratorium project property
rate. The base year rate shall be inflated by the factors in section 256B.434, subdivision 4,
paragraph (c). The property payment rate increase shall be effective the first day of the
monthnew text begin of January or July, whichever occurs firstnew text end following the deleted text beginmonthdeleted text endnew text begin datenew text end in which the
delicensure of the beds becomes effective.

(e) For nursing facilities reimbursed under this section or section 256B.434, any beds
placed on layaway shall not be included in calculating facility occupancy as it pertains to
leave days defined in Minnesota Rules, part 9505.0415.

(f) For nursing facilities reimbursed under this section or section 256B.434, the rental
rate calculated after placing beds on layaway may not be less than the rental rate prior to
placing beds on layaway.

(g) A nursing facility receiving a rate adjustment as a result of this section shall comply
with section deleted text begin256B.47deleted text endnew text begin 256R.06new text end, subdivision deleted text begin2deleted text endnew text begin 5new text end.

(h) A facility that does not utilize the space made available as a result of bed layaway
or delicensure under this subdivision to reduce the number of beds per room or provide
more common space for nursing facility uses or perform other activities related to the
operation of the nursing facility shall have its property rate increase calculated under this
subdivision reduced by the ratio of the square footage made available that is not used for
these purposes to the total square footage made available as a result of bed layaway or
delicensure.

Sec. 16.

Minnesota Statutes 2016, section 256B.434, subdivision 4, is amended to read:

Subd. 4.

Alternate rates for nursing facilities.

new text beginEffective for the rate years beginning
on and after January 1, 2018,new text end a nursing facility's deleted text begincase mixdeleted text endnew text begin propertynew text end payment deleted text beginratesdeleted text endnew text begin ratenew text end for
the second and subsequent years of a facility's contract under this section are the previous
rate year's deleted text begincontractdeleted text endnew text begin propertynew text end payment deleted text beginratesdeleted text endnew text begin ratenew text end plus an inflation adjustment deleted text beginand, for facilities
reimbursed under this section or section 256B.431, an adjustment to include the cost of any
increase in Health Department licensing fees for the facility taking effect on or after July
1, 2001deleted text end. The index for the inflation adjustment must be based on the change in the Consumer
Price Index-All Items (United States City average) (CPI-U) forecasted by the deleted text begincommissioner
of management and budget's national economic consultantdeleted text endnew text begin Reports and Forecasts Division
of the Department of Human Servicesnew text end, as forecasted in the fourth quarter of the calendar
year preceding the rate year. The inflation adjustment must be based on the 12-month period
from the midpoint of the previous rate year to the midpoint of the rate year for which the
rate is being determined. deleted text beginFor the rate years beginning on July 1, 1999, July 1, 2000, July 1,
2001, July 1, 2002, July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006, July 1, 2007, July
1, 2008, October 1, 2009, and October 1, 2010, this paragraph shall apply only to the
property-related payment rate. For the rate years beginning on October 1, 2011, October 1,
2012, October 1, 2013, October 1, 2014, October 1, 2015, January 1, 2016, and January 1,
2017, the rate adjustment under this paragraph shall be suspended. Beginning in 2005,
adjustment to the property payment rate under this section and section 256B.431 shall be
effective on October 1. In determining the amount of the property-related payment rate
adjustment under this paragraph, the commissioner shall determine the proportion of the
facility's rates that are property-related based on the facility's most recent cost report.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17.

Minnesota Statutes 2016, section 256B.4913, subdivision 4a, is amended to read:

Subd. 4a.

Rate stabilization adjustment.

(a) For purposes of this subdivision,
"implementation period" means the period beginning January 1, 2014, and ending on the
last day of the month in which the rate management system is populated with the data
necessary to calculate rates for substantially all individuals receiving home and
community-based waiver services under sections 256B.092 and 256B.49. "Banding period"
means the time period beginning on January 1, 2014, and ending upon the expiration of the
12-month period defined in paragraph (c), clause (5).

(b) For purposes of this subdivision, the historical rate for all service recipients means
the individual reimbursement rate for a recipient in effect on December 1, 2013, except
that:

(1) for a day service recipient who was not authorized to receive these waiver services
prior to January 1, 2014; added a new service or services on or after January 1, 2014; or
changed providers on or after January 1, 2014, the historical rate must be the new text beginweighted
average new text endauthorized rate for the provider new text beginnumber new text endin the county of service, effective December
1, 2013; or

(2) for a unit-based service with programming or a unit-based service without
programming recipient who was not authorized to receive these waiver services prior to
January 1, 2014; added a new service or services on or after January 1, 2014; or changed
providers on or after January 1, 2014, the historical rate must be the weighted average
authorized rate for each provider number in the county of service, effective December 1,
2013; or

(3) for residential service recipients who change providers on or after January 1, 2014,
the historical rate must be set by each lead agency within their county aggregate budget
using their respective methodology for residential services effective December 1, 2013, for
determining the provider rate for a similarly situated recipient being served by that provider.

(c) The commissioner shall adjust individual reimbursement rates determined under this
section so that the unit rate is no higher or lower than:

(1) 0.5 percent from the historical rate for the implementation period;

(2) 0.5 percent from the rate in effect in clause (1), for the 12-month period immediately
following the time period of clause (1);

(3) 0.5 percent from the rate in effect in clause (2), for the 12-month period immediately
following the time period of clause (2);

(4) 1.0 percent from the rate in effect in clause (3), for the 12-month period immediately
following the time period of clause (3);

(5) 1.0 percent from the rate in effect in clause (4), for the 12-month period immediately
following the time period of clause (4); and

(6) no adjustment to the rate in effect in clause (5) for the 12-month period immediately
following the time period of clause (5). During this banding rate period, the commissioner
shall not enforce any rate decrease or increase that would otherwise result from the end of
the banding period. The commissioner shall, upon enactment, seek federal approval for the
addition of this banding period.

(d) The commissioner shall review all changes to rates that were in effect on December
1, 2013, to verify that the rates in effect produce the equivalent level of spending and service
unit utilization on an annual basis as those in effect on October 31, 2013.

(e) By December 31, 2014, the commissioner shall complete the review in paragraph
(d), adjust rates to provide equivalent annual spending, and make appropriate adjustments.

(f) During the banding period, the Medicaid Management Information System (MMIS)
service agreement rate must be adjusted to account for change in an individual's need. The
commissioner shall adjust the Medicaid Management Information System (MMIS) service
agreement rate by:

(1) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or 9, for the
individual with variables reflecting the level of service in effect on December 1, 2013;

(2) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or 9, for the
individual with variables reflecting the updated level of service at the time of application;
and

(3) adding to or subtracting from the Medicaid Management Information System (MMIS)
service agreement rate, the difference between the values in clauses (1) and (2).

(g) This subdivision must not apply to rates for recipients served by providers new to a
given county after January 1, 2014. Providers of personal supports services who also acted
as fiscal support entities must be treated as new providers as of January 1, 2014.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18.

Minnesota Statutes 2016, section 256B.4913, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin New services. new text end

new text begin (a) A service added to section 256B.4914 after January 1, 2014,
is not subject to rate stabilization adjustment in this section.
new text end

new text begin (b) Employment support services authorized after January 1, 2018, under the new
employment support services definition according to the home and community-based services
waivers for people with disabilities under sections 256B.092 and 256B.49 are not subject
to rate stabilization adjustment in this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 19.

Minnesota Statutes 2016, section 256B.4914, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have the
meanings given them, unless the context clearly indicates otherwise.

(b) "Commissioner" means the commissioner of human services.

(c) "Component value" means underlying factors that are part of the cost of providing
services that are built into the waiver rates methodology to calculate service rates.

(d) "Customized living tool" means a methodology for setting service rates that delineates
and documents the amount of each component service included in a recipient's customized
living service plan.

(e) "Disability waiver rates system" means a statewide system that establishes rates that
are based on uniform processes and captures the individualized nature of waiver services
and recipient needs.

(f) "Individual staffing" means the time spent as a one-to-one interaction specific to an
individual recipient by staff to provide direct support and assistance with activities of daily
living, instrumental activities of daily living, and training to participants, and is based on
the requirements in each individual's coordinated service and support plan under section
245D.02, subdivision 4b; any coordinated service and support plan addendum under section
245D.02, subdivision 4c; and an assessment tool. Provider observation of an individual's
needs must also be considered.

(g) "Lead agency" means a county, partnership of counties, or tribal agency charged
with administering waivered services under sections 256B.092 and 256B.49.

(h) "Median" means the amount that divides distribution into two equal groups, one-half
above the median and one-half below the median.

(i) "Payment or rate" means reimbursement to an eligible provider for services provided
to a qualified individual based on an approved service authorization.

(j) "Rates management system" means a Web-based software application that uses a
framework and component values, as determined by the commissioner, to establish service
rates.

(k) "Recipient" means a person receiving home and community-based services funded
under any of the disability waivers.

(l) "Shared staffing" means time spent by employees, not defined under paragraph (f),
providing or available to provide more than one individual with direct support and assistance
with activities of daily living as defined under section 256B.0659, subdivision 1, paragraph
(b); instrumental activities of daily living as defined under section 256B.0659, subdivision
1, paragraph (i); ancillary activities needed to support individual services; and training to
participants, and is based on the requirements in each individual's coordinated service and
support plan under section 245D.02, subdivision 4b; any coordinated service and support
plan addendum under section 245D.02, subdivision 4c; an assessment tool; and provider
observation of an individual's service need. Total shared staffing hours are divided
proportionally by the number of individuals who receive the shared service provisions.

(m) "Staffing ratio" means the number of recipients a service provider employee supports
during a unit of service based on a uniform assessment tool, provider observation, case
history, and the recipient's services of choice, and not based on the staffing ratios under
section 245D.31.

(n) "Unit of service" means the following:

(1) for residential support services under subdivision 6, a unit of service is a day. Any
portion of any calendar day, within allowable Medicaid rules, where an individual spends
time in a residential setting is billable as a day;

(2) for day services under subdivision 7:

(i) for day training and habilitation services, a unit of service is either:

(A) a day unit of service is defined as six or more hours of time spent providing direct
services and transportation; or

(B) a partial day unit of service is defined as fewer than six hours of time spent providing
direct services and transportation; and

(C) for new day service recipients after January 1, 2014, 15 minute units of service must
be used for fewer than six hours of time spent providing direct services and transportation;

(ii) for adult day and structured day services, a unit of service is a day or 15 minutes. A
day unit of service is six or more hours of time spent providing direct services;

(iii) for prevocational services, a unit of service is a day or an hour. A day unit of service
is six or more hours of time spent providing direct service;

(3) for unit-based services with programming under subdivision 8:

(i) for supported living services, a unit of service is a day or 15 minutes. When a day
rate is authorized, any portion of a calendar day where an individual receives services is
billable as a day; and

(ii) for all other services, a unit of service is 15 minutes; and

(4) for unit-based services without programming under subdivision 9deleted text begin:
deleted text end

deleted text begin (i) for respite servicesdeleted text end, a unit of service is deleted text begina day ordeleted text end 15 minutes. deleted text beginWhen a day rate is
authorized, any portion of a calendar day when an individual receives services is billable
as a day; and
deleted text end

deleted text begin (ii) for all other services, a unit of service is 15 minutes.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon federal approval. The commissioner
of human services shall notify the revisor of statutes when federal approval is obtained.
new text end

Sec. 20.

Minnesota Statutes 2016, section 256B.4914, subdivision 3, is amended to read:

Subd. 3.

Applicable services.

Applicable services are those authorized under the state's
home and community-based services waivers under sections 256B.092 and 256B.49,
including the following, as defined in the federally approved home and community-based
services plan:

(1) 24-hour customized living;

(2) adult day care;

(3) adult day care bath;

(4) behavioral programming;

(5) companion services;

(6) customized living;

(7) day training and habilitation;

(8) housing access coordination;

(9) independent living skills;

(10) in-home family support;

(11) night supervision;

(12) personal support;

(13) prevocational services;

(14) residential care services;

(15) residential support services;

(16) respite services;

(17) structured day services;

deleted text begin (18) supported employment services;
deleted text end

deleted text begin (19)deleted text endnew text begin (18)new text end supported living services;

deleted text begin (20)deleted text endnew text begin (19)new text end transportation services; deleted text beginand
deleted text end

new text begin (20) independent living skills specialist services;
new text end

new text begin (21) employment exploration services;
new text end

new text begin (22) employment development services;
new text end

new text begin (23) employment support services; and
new text end

deleted text begin (21)deleted text endnew text begin (24)new text end other services as approved by the federal government in the state home and
community-based services plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon federal approval, except clause
(20) is effective January 1, 2020. The commissioner of human services shall notify the
revisor of statutes when federal approval is obtained.
new text end

Sec. 21.

Minnesota Statutes 2016, section 256B.4914, subdivision 5, is amended to read:

Subd. 5.

Base wage index and standard component values.

(a) The base wage index
is established to determine staffing costs associated with providing services to individuals
receiving home and community-based services. For purposes of developing and calculating
the proposed base wage, Minnesota-specific wages taken from job descriptions and standard
occupational classification (SOC) codes from the Bureau of Labor Statistics as defined in
the most recent edition of the Occupational Handbook must be used. The base wage index
must be calculated as follows:

(1) for residential direct care staff, the sum of:

(i) 15 percent of the subtotal of 50 percent of the median wage for personal and home
health aide (SOC code 39-9021); 30 percent of the median wage for nursing deleted text beginaidedeleted text endnew text begin assistantnew text end
(SOC code deleted text begin31-1012deleted text endnew text begin 31-1014new text end); and 20 percent of the median wage for social and human
services aide (SOC code 21-1093); and

(ii) 85 percent of the subtotal of 20 percent of the median wage for home health aide
(SOC code 31-1011); 20 percent of the median wage for personal and home health aide
(SOC code 39-9021); 20 percent of the median wage for nursing deleted text beginaidedeleted text endnew text begin assistantnew text end (SOC code
deleted text begin 31-1012deleted text endnew text begin 31-1014new text end); 20 percent of the median wage for psychiatric technician (SOC code
29-2053); and 20 percent of the median wage for social and human services aide (SOC code
21-1093);

(2) for day services, 20 percent of the median wage for nursing deleted text beginaidedeleted text endnew text begin assistantnew text end (SOC code
deleted text begin 31-1012deleted text endnew text begin 31-1014new text end); 20 percent of the median wage for psychiatric technician (SOC code
29-2053); and 60 percent of the median wage for social and human services aide (SOC code
21-1093);

(3) for residential asleep-overnight staff, the wage deleted text beginwill be $7.66 per hourdeleted text endnew text begin is the minimum
wage in Minnesota for large employersnew text end, except in a family foster care setting, the wage is
deleted text begin $2.80 per hourdeleted text endnew text begin 36 percent of the minimum wage in Minnesota for large employersnew text end;

(4) for behavior program analyst staff, 100 percent of the median wage for mental health
counselors (SOC code 21-1014);

(5) for behavior program professional staff, 100 percent of the median wage for clinical
counseling and school psychologist (SOC code 19-3031);

(6) for behavior program specialist staff, 100 percent of the median wage for psychiatric
technicians (SOC code 29-2053);

(7) for supportive living services staff, 20 percent of the median wage for nursing deleted text beginaidedeleted text endnew text begin
assistantnew text end (SOC code deleted text begin31-1012deleted text endnew text begin 31-1014new text end); 20 percent of the median wage for psychiatric
technician (SOC code 29-2053); and 60 percent of the median wage for social and human
services aide (SOC code 21-1093);

(8) for housing access coordination staff, deleted text begin50deleted text endnew text begin 100new text end percent of the median wage for
community and social services specialist (SOC code 21-1099); deleted text beginand 50 percent of the median
wage for social and human services aide (SOC code 21-1093);
deleted text end

(9) for in-home family support staff, 20 percent of the median wage for nursing aide
(SOC code 31-1012); 30 percent of the median wage for community social service specialist
(SOC code 21-1099); 40 percent of the median wage for social and human services aide
(SOC code 21-1093); and ten percent of the median wage for psychiatric technician (SOC
code 29-2053);

(10) for independent living skills staff, 40 percent of the median wage for community
social service specialist (SOC code 21-1099); 50 percent of the median wage for social and
human services aide (SOC code 21-1093); and ten percent of the median wage for psychiatric
technician (SOC code 29-2053);

new text begin (11) for independent living skills specialist staff, 100 percent of mental health and
substance abuse social worker (SOC code 21-1023);
new text end

deleted text begin (11)deleted text endnew text begin (12) new text end for deleted text beginsupporteddeleted text end employment new text beginsupports services new text endstaff, deleted text begin20deleted text endnew text begin 50new text end percent of the median
wage for deleted text beginnursing aidedeleted text endnew text begin rehabilitation counselornew text end (SOC code deleted text begin31-1012deleted text endnew text begin 21-1015new text end); deleted text begin20 percent of
the median wage for psychiatric technician (SOC code 29-2053);deleted text end and deleted text begin60deleted text endnew text begin 50new text end percent of the
median wage for new text begincommunity and new text endsocial deleted text beginand humandeleted text end services deleted text beginaidedeleted text endnew text begin specialistnew text end (SOC code
deleted text begin 21-1093deleted text endnew text begin 21-1099new text end);

new text begin (13) for employment exploration services staff, 50 percent of the median wage for
rehabilitation counselor (SOC code 21-1015); and 50 percent of the median wage for
community and social services specialist (SOC code 21-1099);
new text end

new text begin (14) for employment development services staff, 50 percent of the median wage for
education, guidance, school, and vocational counselors (SOC code 21-1012); and 50 percent
of the median wage for community and social services specialist (SOC code 21-1099);
new text end

deleted text begin (12)deleted text endnew text begin (15)new text end for adult companion staff, 50 percent of the median wage for personal and
home care aide (SOC code 39-9021); and 50 percent of the median wage for nursing deleted text beginaides,
orderlies, and attendantsdeleted text endnew text begin assistantnew text end (SOC code deleted text begin31-1012deleted text endnew text begin 31-1014new text end);

deleted text begin (13)deleted text endnew text begin (16)new text end for night supervision staff, 20 percent of the median wage for home health
aide (SOC code 31-1011); 20 percent of the median wage for personal and home health
aide (SOC code 39-9021); 20 percent of the median wage for nursing deleted text beginaidedeleted text endnew text begin assistantnew text end (SOC
code deleted text begin31-1012deleted text endnew text begin 31-1014new text end); 20 percent of the median wage for psychiatric technician (SOC
code 29-2053); and 20 percent of the median wage for social and human services aide (SOC
code 21-1093);

deleted text begin (14)deleted text endnew text begin (17)new text end for respite staff, 50 percent of the median wage for personal and home care
aide (SOC code 39-9021); and 50 percent of the median wage for nursing deleted text beginaides, orderlies,
and attendantsdeleted text endnew text begin assistantnew text end (SOC code deleted text begin31-1012deleted text endnew text begin 31-1014new text end);

deleted text begin (15)deleted text endnew text begin (18)new text end for personal support staff, 50 percent of the median wage for personal and
home care aide (SOC code 39-9021); and 50 percent of the median wage for nursing deleted text beginaides,
orderlies, and attendantsdeleted text endnew text begin assistantnew text end (SOC code deleted text begin31-1012deleted text endnew text begin 31-1014new text end);

deleted text begin (16)deleted text endnew text begin (19)new text end for supervisory staff, the basic wage is $17.43 per hour with exception of the
supervisor of behavior analyst and behavior specialists, which must be $30.75 per hour;

deleted text begin (17)deleted text endnew text begin (20)new text end for registered nurse, the basic wage is $30.82 per hour; and

deleted text begin (18)deleted text endnew text begin (21)new text end for licensed practical nursenew text begin staffnew text end, deleted text beginthe basic wage is $18.64 per hourdeleted text endnew text begin 100 percent
of the median wage for licensed practical nurses (SOC code 29-2061)new text end.

(b) Component values for residential support services are:

(1) supervisory span of control ratio: 11 percent;

(2) employee vacation, sick, and training allowance ratio: 8.71 percent;

(3) employee-related cost ratio: 23.6 percent;

(4) general administrative support ratio: 13.25 percent;

(5) program-related expense ratio: 1.3 percent; and

(6) absence and utilization factor ratio: 3.9 percent.

(1) supervisory span of control ratio: 11 percent;

(2) employee vacation, sick, and training allowance ratio: 8.71 percent;

(3) employee-related cost ratio: 23.6 percent;

(4) general administrative support ratio: 3.3 percent;

(5) program-related expense ratio: 1.3 percent; and

(6) absence factor: 1.7 percent.

(d) Component values for day services for all services are:

(1) supervisory span of control ratio: 11 percent;

(2) employee vacation, sick, and training allowance ratio: 8.71 percent;

(3) employee-related cost ratio: 23.6 percent;

(4) program plan support ratio: 5.6 percent;

(5) client programming and support ratio: ten percent;

(6) general administrative support ratio: 13.25 percent;

(7) program-related expense ratio: 1.8 percent; and

(8) absence and utilization factor ratio: deleted text begin3.9deleted text endnew text begin 5.9new text end percent.

(e) Component values for unit-based services with programming are:

(1) supervisory span of control ratio: 11 percent;

(2) employee vacation, sick, and training allowance ratio: 8.71 percent;

(3) employee-related cost ratio: 23.6 percent;

(4) program plan supports ratio: deleted text begin3.1deleted text endnew text begin 15.5new text end percent;

(5) client programming and supports ratio: deleted text begin8.6deleted text endnew text begin 4.7new text end percent;

(6) general administrative support ratio: 13.25 percent;

(7) program-related expense ratio: 6.1 percent; and

(8) absence and utilization factor ratio: 3.9 percent.

(f) Component values for unit-based services without programming except respite are:

(1) supervisory span of control ratio: 11 percent;

(2) employee vacation, sick, and training allowance ratio: 8.71 percent;

(3) employee-related cost ratio: 23.6 percent;

(4) program plan support ratio: deleted text begin3.1deleted text endnew text begin 7.0new text end percent;

(5) client programming and support ratio: deleted text begin8.6deleted text endnew text begin 2.3new text end percent;

(6) general administrative support ratio: 13.25 percent;

(7) program-related expense ratio: deleted text begin6.1deleted text endnew text begin 2.9new text end percent; and

(8) absence and utilization factor ratio: 3.9 percent.

(g) Component values for unit-based services without programming for respite are:

(1) supervisory span of control ratio: 11 percent;

(2) employee vacation, sick, and training allowance ratio: 8.71 percent;

(3) employee-related cost ratio: 23.6 percent;

(4) general administrative support ratio: 13.25 percent;

(5) program-related expense ratio: deleted text begin6.1deleted text endnew text begin 2.9new text end percent; and

(6) absence and utilization factor ratio: 3.9 percent.

(h) On July 1, 2017, the commissioner shall update the base wage index in paragraph
(a) based on the wage data by standard occupational code (SOC) from the Bureau of Labor
Statistics available on December 31, 2016. The commissioner shall publish these updated
values and load them into the rate management system. deleted text beginThis adjustment occurs every five
years. For adjustments in 2021 and beyond, the commissioner shall use the data available
on December 31 of the calendar year five years prior.deleted text endnew text begin On January 1, 2022, and every two
years thereafter, the commissioner shall update the base wage index in paragraph (a) based
on the most recently available wage data by standard occupational code (SOC) from the
Bureau of Labor Statistics. The commissioner shall publish these updated values and load
them into the rate management system.
new text end

(i) On July 1, 2017, the commissioner shall update the framework components in
deleted text begin paragraphs (b) to (g)deleted text endnew text begin paragraph (d), clause (5); paragraph (e), clause (5); and paragraph (f),
clause (5)new text end; subdivision 6, clauses (8) and (9); and subdivision 7, clauses new text begin(10), new text end(16)new text begin,new text end and (17),
for changes in the Consumer Price Index. The commissioner will adjust these values higher
or lower by the percentage change in the Consumer Price Index-All Items, United States
city average (CPI-U) from January 1, 2014, to January 1, 2017. The commissioner shall
publish these updated values and load them into the rate management system. deleted text beginThis adjustment
occurs every five years. For adjustments in 2021 and beyond, the commissioner shall use
the data available on January 1 of the calendar year four years prior and January 1 of the
current calendar year.deleted text endnew text begin On January 1, 2022, and every two years thereafter, the commissioner
shall update the framework components in paragraph (d), clause (5); paragraph (e), clause
(5); and paragraph (f), clause (5); subdivision 6, clauses (8) and (9); and subdivision 7,
clauses (10), (16), and (17), for changes in the Consumer Price Index. The commissioner
shall adjust these values higher or lower by the percentage change in the Consumer Price
Index-All Items, United States city average (CPI-U) from the date of the previous update
to the date of the data most recently available prior to the scheduled update. The
commissioner shall publish these updated values and load them into the rate management
system.
new text end

new text begin (j) In this subdivision, if Bureau of Labor Statistics occupational codes or Consumer
Price Index items are unavailable in the future, the commissioner shall recommend to the
legislature codes or items to update and replace missing component values.
new text end

new text begin (k) The commissioner must ensure that wage values and component values in subdivisions
5 to 9 reflect the cost to provide the service. As determined by the commissioner, in
consultation with stakeholders identified in section 256B.4913, subdivision 5, a provider
enrolled to provide services with rates determined under this section must submit business
cost data to the commissioner to support research on the cost of providing services that have
rates determined by the disability waiver rates system. Required business cost data includes,
but is not limited to:
new text end

new text begin (1) worker wage costs;
new text end

new text begin (2) benefits paid;
new text end

new text begin (3) supervisor wage costs;
new text end

new text begin (4) executive wage costs;
new text end

new text begin (5) vacation, sick, and training time paid;
new text end

new text begin (6) taxes, workers' compensation, and unemployment insurance costs paid;
new text end

new text begin (7) administrative costs paid;
new text end

new text begin (8) program costs paid;
new text end

new text begin (9) transportation costs paid;
new text end

new text begin (10) vacancy rates; and
new text end

new text begin (11) other data relating to costs required to provide services requested by the
commissioner.
new text end

new text begin (l) A provider must submit cost component data at least once in any five-year period,
on a schedule determined by the commissioner, in consultation with stakeholders identified
in section 256B.4913, subdivision 5. If a provider fails to submit required reporting data,
the commissioner shall provide notice to providers that have not provided required data 30
days after the required submission date, and a second notice for providers who have not
provided required data 60 days after the required submission date. The commissioner shall
temporarily suspend payments to the provider if cost component data is not received 90
days after the required submission date. Withheld payments shall be made once data is
received by the commissioner.
new text end

new text begin (m) The commissioner shall conduct a random audit of data submitted under paragraph
(k) to ensure data accuracy. The commissioner shall analyze cost documentation in paragraph
(k) and provide recommendations for adjustments to cost components.
new text end

new text begin (n) The commissioner shall analyze cost documentation in paragraph (k) and, in
consultation with stakeholders identified in section 256B.4913, subdivision 5, may submit
recommendations on component values and inflationary factor adjustments to the chairs
and ranking minority members of the legislative committees with jurisdiction over human
services every four years beginning January 1, 2020. The commissioner shall make
recommendations in conjunction with reports submitted to the legislature according to
subdivision 10, paragraph (e). The commissioner shall release business cost data in an
aggregate form, and business cost data from individual providers shall not be released except
as provided for in current law.
new text end

new text begin (o) The commissioner, in consultation with stakeholders identified in section 256B.4913,
subdivision 5, shall develop and implement a process for providing training and technical
assistance necessary to support provider submission of cost documentation required under
paragraph (k).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) The amendments to paragraphs (a) to (g) are effective January
1, 2018, except paragraph (d), clause (8), is effective January 1, 2019.
new text end

new text begin (b) The amendments to paragraphs (h) to (o) are effective the day following final
enactment.
new text end

Sec. 22.

Minnesota Statutes 2016, section 256B.4914, subdivision 6, is amended to read:

Subd. 6.

Payments for residential support services.

(a) Payments for residential support
services, as defined in sections 256B.092, subdivision 11, and 256B.49, subdivision 22,
must be calculated as follows:

(1) determine the number of shared staffing and individual direct staff hours to meet a
recipient's needs provided on site or through monitoring technology;

(2) personnel hourly wage rate must be based on the 2009 Bureau of Labor Statistics
Minnesota-specific rates or rates derived by the commissioner as provided in subdivision
5. This is defined as the direct-care rate;

(3) for a recipient requiring customization for deaf and hard-of-hearing language
accessibility under subdivision 12, add the customization rate provided in subdivision 12
to the result of clause (2). This is defined as the customized direct-care rate;

(4) multiply the number of shared and individual direct staff hours provided on site or
through monitoring technology and nursing hours by the appropriate staff wages in
subdivision 5, paragraph (a), or the customized direct-care rate;

(5) multiply the number of shared and individual direct staff hours provided on site or
through monitoring technology and nursing hours by the product of the supervision span
of control ratio in subdivision 5, paragraph (b), clause (1), and the appropriate supervision
wage in subdivision 5, paragraph (a), clause deleted text begin(16)deleted text endnew text begin (19)new text end;

(6) combine the results of clauses (4) and (5), excluding any shared and individual direct
staff hours provided through monitoring technology, and multiply the result by one plus
the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (b),
clause (2). This is defined as the direct staffing cost;

(7) for employee-related expens

HF 945

Bill Text Versions

Current Version - 1st Engrossment

ARTICLE 1

HEALTH CARE

Section 1.

new text begin Subd. 2a. new text end

new text begin Audits of Department of Human Services. new text end

Sec. 2.

Subdivision 1.

Establishment and authority.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

Subd. 8.

Rate year.

new text begin EFFECTIVE DATE. new text end

Sec. 4.

Subdivision 1.

Hospital cost index.

new text begin EFFECTIVE DATE. new text end

Sec. 5.

Subd. 2b.

Hospital payment rates.

new text begin EFFECTIVE DATE. new text end

Sec. 6.

new text begin Subd. 2e. new text end

new text begin Alternate inpatient payment rate. new text end

Sec. 7.

Subd. 3a.

Payments.

new text begin EFFECTIVE DATE. new text end

Sec. 8.

Subd. 4b.

Medical assistance cost reports for services.

new text begin EFFECTIVE DATE. new text end

Sec. 9.

Subd. 8.

Unusual length of stay experience.

new text begin EFFECTIVE DATE. new text end

Sec. 10.

Subd. 8c.

Hospital residents.

new text begin EFFECTIVE DATE. new text end

Sec. 11.

Subd. 9.

Disproportionate numbers of low-income patients served.

new text begin EFFECTIVE DATE. new text end

Sec. 12.

Subd. 12.

Rehabilitation hospitals and distinct parts.

new text begin EFFECTIVE DATE. new text end

Sec. 13.

Subd. 12.

Limitation on services.

Sec. 14.

Subd. 3b.

Telemedicine services.

Sec. 15.

Subd. 13.

Drugs.

Sec. 16.

Subd. 13e.

Payment rates.

new text begin EFFECTIVE DATE. new text end

Sec. 17.

Subd. 17.

Transportation costs.

Sec. 18.

Subd. 17b.

Documentation required.

Sec. 19.

new text begin Subd. 17c. new text end

new text begin Nursing facility transports. new text end

Sec. 20.

Subd. 18h.

Managed care.

new text begin EFFECTIVE DATE. new text end

Sec. 21.

Subd. 30.

Other clinic services.

Psychiatric residential treatment facility services for persons under 21
years of age.

256B.0644 REIMBURSEMENT UNDER OTHER STATE HEALTH CARE
PROGRAMS.

256B.0755 deleted text beginHEALTH CARE DELIVERY SYSTEMSdeleted text endnew text begin INTEGRATED HEALTH
PARTNERSHIPnew text end DEMONSTRATION PROJECT.

new text begin [256B.0759] HEALTH CARE DELIVERY SYSTEMS DEMONSTRATION
PROJECT.
new text end

new text begin [256B.0941] PSYCHIATRIC RESIDENTIAL TREATMENT FACILITY
FOR PERSONS YOUNGER THAN 21 YEARS OF AGE.
new text end