HF 2740

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 05/05/2014 12:20pm

A bill for an act
relating to workers' compensation; providing for a diagnosis related group system
for payment of inpatient hospital services; appropriating money.

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

Section 1. new text begin TRANSFER.
new text end

new text begin By June 30, 2015, the commissioner of management and budget shall transfer
$10,000,000 in assets of the workers' compensation assigned risk plan under Minnesota
Statutes, section 79.252, to the general fund.
new text end

Sec. 2. new text begin WORKERS' COMPENSATION SYSTEM; DIAGNOSIS RELATED
GROUP SYSTEM; APPROPRIATION.
new text end

new text begin (a) $10,000,000 in fiscal year 2015 is appropriated from the general fund to
the commissioner of labor and industry for development and implementation of a
Medicare-based diagnosis related group (MS-DRG) system for payment of workers'
compensation inpatient hospital services. Of the amount appropriated, up to $100,000
may be used by the commissioner to develop and implement the MS-DRG system. Funds
available under this section may also be used by the commissioner for rebates to hospitals,
insurers, and self-insured employers to defray reasonable and necessary costs related
to implementation of a MS-DRG system or other related system reform. Rebates are
available only after documentation of the expenditures has been submitted to and accepted
by the commissioner. Individual rebates to a hospital system, insurer, or self-insured
employer may not exceed $....... This is a onetime appropriation and is available until
June 30, 2017. Notwithstanding Minnesota Statutes, section 16A.28, the commissioner
of management and budget shall transfer any balance of this appropriation remaining on
June 30, 2017, to the assigned risk plan.
new text end

new text begin (b) For the purposes of this section, reasonable and necessary system reform and
implementation costs include, but are not limited to:
new text end

new text begin (1) the cost of analyzing data to determine the anticipated costs and savings of
implementing the MS-DRG system;
new text end

new text begin (2) the cost of analyzing system or organizational changes necessary for
implementation;
new text end

new text begin (3) the cost of determining how an organization would implement MS-DRG grouper
software;
new text end

new text begin (4) the cost of upgrading existing MS-DRG software or purchasing new MS-DRG
software and other technology upgrades needed for implementation;
new text end

new text begin (5) the cost of educating and training staff about the MS-DRG system as applied
to workers' compensation; and
new text end

new text begin (6) the cost of integrating the MS-DRG grouper software with electronic billing
and remittance systems.
new text end