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Minnesota Legislature

Office of the Revisor of Statutes

HF 2773

as introduced - 88th Legislature (2013 - 2014) Posted on 03/06/2014 01:48pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/06/2014

Current Version - as introduced

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A bill for an act
relating to human services; modifying nursing facility operating payment rates
for certain facilities; amending Minnesota Statutes 2012, section 256B.431, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2012, section 256B.431, is amended by adding a
subdivision to read:


new text begin Subd. 46. new text end

new text begin Rate increase for facilities in Mille Lacs, Isanti, and Kanabec
Counties.
new text end

new text begin (a) Effective October 1, 2014, the operating payment rates of nursing facilities
in Mille Lacs, Isanti, and Kanabec Counties that are reimbursed under this section, section
256B.434, or section 256B.441, shall be increased to be equal, for a resource utilization
group rate with a weight of 1.00, to the geographic group III median rate for the same
resource utilization group weight. The calculations under this subdivision shall be added
to the rates before any other operating payment rate adjustments effective on October
1, 2014, are computed. The percentage of the operating payment rates to be case-mix
adjusted shall be equal to the percentage that is case-mix adjusted in the September 30,
2014, operating payment rates.
new text end

new text begin (b) Seventy-five percent of the money resulting from the rate adjustment under
paragraph (a) must be used for increases in compensation-related costs for employees
directly employed by the nursing facility on or after the effective date of the rate
adjustment, except:
new text end

new text begin (1) the administrator;
new text end

new text begin (2) persons employed in the central office of a corporation that has an ownership
interest in the nursing facility or exercises control over the nursing facility; and
new text end

new text begin (3) persons paid by the nursing facility under a management contract.
new text end

new text begin (c) The commissioner shall allow as compensation-related costs all costs for:
new text end

new text begin (1) wage and salary increases effective after May 25, 2014;
new text end

new text begin (2) the employer's share of FICA taxes, Medicare taxes, state and federal
unemployment taxes, and workers' compensation;
new text end

new text begin (3) the employer's share of health and dental insurance, life insurance, disability
insurance, long-term care insurance, uniform allowance, and pensions; and
new text end

new text begin (4) other benefits provided and workforce needs, including the recruiting and
training of employees, subject to the approval of the commissioner.
new text end

new text begin (d) The portion of the rate adjustment under paragraph (a) that is not subject to the
requirements of paragraph (b) shall be provided to nursing facilities effective October 1,
2014. Nursing facilities may apply for the portion of the rate adjustment under paragraph
(a) that is subject to the requirements of paragraph (b). The application must be submitted
to the commissioner within six months of the effective date of the rate adjustment, and
the nursing facility must provide additional information required by the commissioner
within nine months of the effective date of the rate adjustment. The commissioner must
respond to all applications within three weeks of receipt. The commissioner may waive
the deadlines in the paragraph under extraordinary circumstances, to be determined at the
sole discretion of the commissioner. The application must contain:
new text end

new text begin (1) an estimate of the amounts of money that must be used as specified in paragraph
(b);
new text end

new text begin (2) a detailed distribution plan specifying the allowable compensation-related
increases the nursing facility will implement to use the funds available in clause (1);
new text end

new text begin (3) a description of how the nursing facility will notify eligible employees of
the contents of the approved application, which must provide for giving each eligible
employee a copy of the approved application, excluding the information required in clause
(1), or posting a copy of the approved application, excluding the information required in
clause (1), for a period of at least six weeks in an area of the nursing facility to which all
eligible employees have access; and
new text end

new text begin (4) instructions for employees who believe they have not received the
compensation-related increases specified in clause (2), as approved by the commissioner,
and which must include a mailing address, an e-mail address, and the telephone number
that may be used by the employee to contact the commissioner or the commissioner's
representative.
new text end

new text begin (e) The commissioner shall ensure that cost increases in distribution plans under
paragraph (d), clause (2), that may be included in approved applications comply with the
following requirements:
new text end

new text begin (1) a portion of the costs resulting from tenure-related wage or salary increases
may be considered to be allowable wage increases, according to formulas that the
commissioner shall provide, where employee retention is above the average statewide
rate of retention of direct-care employees;
new text end

new text begin (2) the annualized amount of increases in costs for the employer's share of health
and dental insurance, life insurance, disability insurance, and workers' compensation
shall be allowable compensation-related increases if they are effective on or after April
1, 2014, and prior to April 1, 2015; and
new text end

new text begin (3) for nursing facilities in which employees are represented by an exclusive
bargaining representative, the commissioner shall approve the application only upon
receipt of a letter of acceptance of the distribution plan, in regard to members of the
bargaining unit, signed by the exclusive bargaining agent and dated after May 25, 2014.
Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of
this provision as having been met in regard to the members of the bargaining unit.
new text end

new text begin (f) The commissioner shall review applications received under paragraph (d) and
shall provide the portion of the rate adjustment under paragraph (b) if the requirements of
this subdivision have been met. The rate adjustment shall be effective October 1, 2014.
Notwithstanding paragraph (a), if the approved application distributes less money than is
available, the amount of the rate adjustment shall be reduced so that the amount of money
made available is equal to the amount to be distributed.
new text end

new text begin (g) The increase in this subdivision shall be applied as a percentage to operating
payment rates in effect on September 30, 2014. For each facility the commissioner
shall determine the operating payment rate, not including any rate components resulting
from equitable cost-sharing for publicly owned nursing facility program participation
under section 256B.441, subdivision 55a, or performance-based incentive payment
program participation under section 256B.434, subdivision 4, paragraph (d), for a resource
utilization group class with a weight of 1.00 in effect on September 30, 2014.
new text end