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Minnesota Legislature

Office of the Revisor of Statutes

HF 2829

as introduced - 89th Legislature (2015 - 2016) Posted on 03/15/2016 09:42am

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

Bill Text Versions

Engrossments
Introduction Posted on 03/10/2016

Current Version - as introduced

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A bill for an act
relating to human services; modifying reimbursement rates for intermediate
care facilities for persons with developmental disabilities and home and
community-based services providers;amending Minnesota Statutes 2014,
section 256B.5012, by adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapter 256B.

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

Section 1.

new text begin [256B.4915] DISABILITY WAIVER REIMBURSEMENT RATE
ADJUSTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Historical rate. new text end

new text begin The commissioner of human services shall adjust
the historical rates calculated in section 256B.4913, subdivision 4a, paragraph (b), in
effect during the banding period under section 256B.4913, subdivision 4a, paragraph (a),
for each reimbursement rate increase effective on or after July 1, 2015.
new text end

new text begin Subd. 2. new text end

new text begin Residential support services. new text end

new text begin The commissioner of human services shall
adjust the rates calculated in section 256B.4914, subdivision 6, paragraphs (b) and (c), for
each reimbursement rate increase effective on or after July 1, 2015.
new text end

new text begin Subd. 3. new text end

new text begin Day programs. new text end

new text begin The commissioner of human services shall adjust the rates
calculated in section 256B.4914, subdivision 7, for each reimbursement rate increase
effective on or after July 1, 2015.
new text end

new text begin Subd. 4. new text end

new text begin Unit-based services with programming. new text end

new text begin The commissioner of human
services shall adjust the rate calculated in section 256B.4914, subdivision 8, for each
reimbursement rate increase effective on or after July 1, 2015.
new text end

new text begin Subd. 5. new text end

new text begin Unit-based services without programming. new text end

new text begin The commissioner of human
services shall adjust the rate calculated in section 256B.4914, subdivision 9, for each
reimbursement rate increase effective on or after July 1, 2015.
new text end

Sec. 2.

Minnesota Statutes 2014, section 256B.5012, is amended by adding a
subdivision to read:


new text begin Subd. 17. new text end

new text begin ICF/DD rate increases effective July 1, 2015, and July 1, 2016. new text end

new text begin (a)
For the rate periods beginning July 1, 2015, and July 1, 2016, the commissioner shall
increase operating payments for each facility reimbursed under this section in each rate
year equal to five percent of the operating payment rates in effect on June 30, 2015, and
June 30, 2016, respectively.
new text end

new text begin (b) For each facility, the commissioner shall apply the rate increase based on
occupied beds, using the percentage specified in this subdivision multiplied by the total
payment rate, including the variable rate but excluding the property-related payment
rate in effect on the preceding date. The total rate increase shall include the adjustment
provided in section 256B.501, subdivision 12.
new text end

new text begin (c) Facilities that receive a rate increase under this subdivision shall use 75 percent
of the additional revenue to increase compensation-related costs for employees directly
employed by the facility on or after the effective dates of the rate adjustments in paragraph
(a), except:
new text end

new text begin (1) persons employed in the central office of a corporation or entity that has an
ownership interest in the facility or exercises control over the facility; and
new text end

new text begin (2) persons paid by the facility under a management contract.
new text end

new text begin (d) Compensation-related costs include:
new text end

new text begin (1) wages and salaries;
new text end

new text begin (2) the employer's share of FICA taxes, Medicare taxes, state and federal
unemployment taxes, workers' compensation, and mileage reimbursement;
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, pensions, and contributions to
employee retirement accounts; and
new text end

new text begin (4) other benefits provided and workforce needs, including the recruiting and
training of employees as specified in the distribution plan required under paragraph (h).
new text end

new text begin (e) For public employees under a collective bargaining agreement, the increases for
wages and benefits for certain staff are available and pay rates must be increased only to
the extent that the increases comply with laws governing public employees' collective
bargaining. Money received by a facility under paragraph (c) for pay increases for public
employees must be used only for pay increases implemented between July 1, 2015, and
August 1, 2015, for the July 1, 2015, increase and between July 1, 2016, and August 1,
2016, for the July 1, 2016, increase.
new text end

new text begin (f) For a facility that has employees that are represented by an exclusive bargaining
representative, the provider shall obtain a letter of acceptance of the distribution plan
required under paragraph (h), in regard to the members of the bargaining unit, signed by
the exclusive bargaining agent. Upon receipt of the letter of acceptance, the facility shall
be deemed to have met all the requirements of this subdivision in regard to the members
of the bargaining unit. Upon request, the facility shall produce the letter of acceptance for
the commissioner.
new text end

new text begin (g) The commissioner shall amend state grant contracts that include direct
personnel-related grant expenditures to include the allocation for the portion of the contract
related to employee compensation. Grant contracts for compensation-related services
must be amended to pass through these adjustments within 60 days of the effective date of
each increase and must be retroactive to the effective date of the rate adjustment.
new text end

new text begin (h) A facility that receives a rate adjustment under paragraph (a) that is subject to
paragraphs (c) and (d) shall prepare, and upon request, submit to the commissioner a
distribution plan that specifies the amount of money the facility expects to receive that is
subject to the requirements of paragraphs (c) and (d), including how that money will be
distributed to increase compensation for employees.
new text end

new text begin (i) Within six months of the effective date of each rate adjustment, the facility shall
post the distribution plan required under paragraph (h) for a period of at least six weeks in
an area of the facility's operation to which all eligible employees have access and shall
provide instructions for employees who do not believe they have received the wage and
other compensation-related increases specified in the distribution plan. The instructions
must include a mailing address, e-mail address, and telephone number that an employee
may use to contact the commissioner or the commissioner's representative.
new text end

Sec. 3. new text begin PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY 1,
2015, AND JULY 1, 2016.
new text end

new text begin (a) The commissioner of human services shall increase reimbursement rates, grants,
allocations, individual limits, and rate limits, as applicable, by five percent for the rate
periods beginning July 1, 2015, and July 1, 2016, for services rendered on or after those
dates. County or tribal contracts for services specified in this section must be amended to
pass through these rate increases within 60 days of the effective date of each increase.
new text end

new text begin (b) The rate changes described in this section must be provided to:
new text end

new text begin (1) home and community-based waivered services for persons with developmental
disabilities, including consumer-directed community supports, under Minnesota Statutes,
section 256B.092;
new text end

new text begin (2) waivered services under community alternatives for disabled individuals,
including consumer-directed community supports, under Minnesota Statutes, section
256B.49;
new text end

new text begin (3) community alternative care waivered services, including consumer-directed
community supports, under Minnesota Statutes, section 256B.49;
new text end

new text begin (4) brain injury waivered services, including consumer-directed community
supports, under Minnesota Statutes, section 256B.49;
new text end

new text begin (5) home and community-based waivered services for the elderly under Minnesota
Statutes, section 256B.0915;
new text end

new text begin (6) nursing services and home health services under Minnesota Statutes, section
256B.0625, subdivision 6a;
new text end

new text begin (7) personal care services and qualified professional supervision of personal care
services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
new text end

new text begin (8) home care nursing services under Minnesota Statutes, section 256B.0625,
subdivision 7;
new text end

new text begin (9) community first services and supports under Minnesota Statutes, section 256B.85;
new text end

new text begin (10) essential community supports under Minnesota Statutes, section 256B.0922;
new text end

new text begin (11) day training and habilitation services for adults with developmental disabilities
under Minnesota Statutes, sections 252.41 to 252.46, including the additional cost to
counties of the rate adjustments on day training and habilitation services, provided as a
social service;
new text end

new text begin (12) alternative care services under Minnesota Statutes, section 256B.0913;
new text end

new text begin (13) living skills training programs for persons with intractable epilepsy who need
assistance in the transition to independent living under Laws 1988, chapter 689;
new text end

new text begin (14) semi-independent living services (SILS) under Minnesota Statutes, section
252.275;
new text end

new text begin (15) consumer support grants under Minnesota Statutes, section 256.476;
new text end

new text begin (16) family support grants under Minnesota Statutes, section 252.32;
new text end

new text begin (17) housing access grants under Minnesota Statutes, section 256B.0658;
new text end

new text begin (18) self-advocacy grants under Laws 2009, chapter 101;
new text end

new text begin (19) technology grants under Laws 2009, chapter 79;
new text end

new text begin (20) aging grants under Minnesota Statutes, sections 256.975 to 256.977 and
256B.0917;
new text end

new text begin (21) deaf and hard-of-hearing grants, including community support services for deaf
and hard-of-hearing adults with mental illness who use or wish to use sign language as their
primary means of communication under Minnesota Statutes, section 256.01, subdivision 2;
new text end

new text begin (22) deaf and hard-of-hearing grants under Minnesota Statutes, sections 256C.233,
256C.25, and 256C.261;
new text end

new text begin (23) Disability Linkage Line grants under Minnesota Statutes, section 256.01,
subdivision 24
;
new text end

new text begin (24) transition initiative grants under Minnesota Statutes, section 256.478;
new text end

new text begin (25) employment support grants under Minnesota Statutes, section 256B.021,
subdivision 6
; and
new text end

new text begin (26) grants provided to people who are eligible for the Housing Opportunities for
Persons with AIDS program under Minnesota Statutes, section 256B.492.
new text end

new text begin (c) A managed care plan or county-based purchasing plan receiving state payments
for the services, grants, and programs in paragraph (b) must include these increases in
their payments to providers. For the purposes of this subdivision, entities that provide care
coordination are providers. To implement the rate increases in paragraph (a), capitation
rates paid by the commissioner to managed care plans and county-based purchasing plans
under Minnesota Statutes, section 256B.69, shall reflect a five percent increase for the
services, grants, and programs specified in paragraph (b) for each period beginning July 1,
2015, and July 1, 2016.
new text end

new text begin (d) Counties shall increase the budget for each recipient of consumer-directed
community supports by the amounts in paragraph (a) on the effective dates in paragraph (a).
new text end

new text begin (e) Providers that receive a rate increase under paragraph (a) shall use 75 percent
of the additional revenue to increase compensation-related costs for employees directly
employed by the program on or after the effective date of each rate adjustment in
paragraph (a), except:
new text end

new text begin (1) persons employed in the central office of a corporation or entity that has an
ownership interest in the provider or exercises control over the provider; and
new text end

new text begin (2) persons paid by the provider under a management contract.
new text end

new text begin (f) Compensation-related costs include:
new text end

new text begin (1) wages and salaries;
new text end

new text begin (2) the employer's share of FICA taxes, Medicare taxes, state and federal
unemployment taxes, workers' compensation, and mileage reimbursement;
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, pensions, and contributions to
employee retirement accounts; and
new text end

new text begin (4) other benefits provided and workforce needs, including the recruiting and
training of employees as specified in the distribution plan required under paragraph (k).
new text end

new text begin (g) For public employees under a collective bargaining agreement, the increases
for wages and benefits are available and pay rates must be increased only to the extent
that the increases comply with laws governing public employees' collective bargaining.
Money received by a provider for pay increases for public employees under paragraph (e)
must be used only for pay increases implemented between July 1, 2015, and August 1,
2015, for the July 1, 2015, increase and between July 1, 2016, and August 1, 2016, for
the July 1, 2016, increase.
new text end

new text begin (h) For a provider that has employees who are represented by an exclusive bargaining
representative, the provider shall obtain a letter of acceptance of the distribution plan
required under paragraph (k), in regard to the members of the bargaining unit, signed by
the exclusive bargaining agent. Upon receipt of the letter of acceptance, the provider shall
be deemed to have met all the requirements of this section in regard to the members of
the bargaining unit. Upon request, the provider shall produce the letter of acceptance for
the commissioner.
new text end

new text begin (i) The commissioner shall amend state grant contracts that include direct
personnel-related grant expenditures to include the allocation for the portion of the
contract related to employee compensation. Grant contracts for compensation-related
services must be amended to pass through these adjustments within 60 days of the
effective date of each increases under paragraph (a) and must be retroactive to the effective
date of each rate adjustment.
new text end

new text begin (j) The Board on Aging and its area agencies on aging shall amend their grants that
include direct personnel-related grant expenditures to include the rate adjustments for the
portion of the grant related to employee compensation. Grants for compensation-related
services must be amended to pass through these adjustments within 60 days of the
effective date of each increase under paragraph (a) and must be retroactive to the effective
date of each rate adjustment.
new text end

new text begin (k) A provider that receives a rate adjustment under paragraph (a) that is subject to
paragraph (e) shall prepare, and upon request, submit to the commissioner a distribution
plan that specifies the amount of money the provider expects to receive that is subject
to the requirements of paragraph (e), including how that money will be distributed to
increase compensation for employees.
new text end

new text begin (l) Within six months of the effective date of each rate adjustment, the provider shall
post the distribution plan required under paragraph (k) for a period of at least six weeks in
an area of the provider's operation to which all eligible employees have access and shall
provide instructions for employees who do not believe they have received the wage and
other compensation-related increases specified in the distribution plan. The instructions
must include a mailing address, e-mail address, and telephone number that the employee
may use to contact the commissioner or the commissioner's representative.
new text end