HF 3391

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/04/2024 04:30pm

A bill for an act
relating to human services; providing funding to nursing facilities for
compensation-related costs.

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

Section 1. new text begin NURSING FACILITY FUNDING FOR COMPENSATION-RELATED
COSTS.
new text end

new text begin Subdivision 1. new text end

new text begin Temporary rate increase. new text end

new text begin Effective July 1, 2024, through December
31, 2026, the total payment rate for all facilities reimbursed under Minnesota Statutes,
chapter 256R, must be increased by $52 per resident day.
new text end

new text begin Subd. 2. new text end

new text begin Attestation; employees directly employed by the facility. new text end

new text begin To be eligible to
receive a payment under this section, a nursing facility must attest to the commissioner of
human services that the additional revenue will be used exclusively to increase
compensation-related costs for employees directly employed by the facility on or after July
1, 2024, excluding:
new text end

new text begin (1) owners of the building and operation;
new text end

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

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

new text begin (4) persons providing separately billable services.
new text end

new text begin Subd. 3. new text end

new text begin Contracted employees. new text end

new text begin Contracted housekeeping, dietary, and laundry
employees providing services on site at the nursing facility are eligible for
compensation-related cost increases under this section, provided the agency that employs
the employees submits to the nursing facility proof of the costs of the increases provided
to those employees.
new text end

new text begin Subd. 4. new text end

new text begin Compensation-related costs. new text end

new text begin For purposes of this section, compensation-related
costs include:
new text end

new text begin (1) permanent new increases to wages and salaries implemented on or after July 1, 2024,
and before September 1, 2024, for nursing facility employees;
new text end

new text begin (2) permanent new increases to wages and salaries implemented on or after July 1, 2024,
and before September 1, 2024, for employees in the organization's shared services
departments of hospital-attached nursing facilities for the nursing-facility-allocated share
of wages; and
new text end

new text begin (3) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment
taxes, PERA, workers' compensation, and pension and employee retirement accounts directly
associated with the wage and salary increases in clauses (1) and (2) incurred no later than
December 31, 2026, and paid for no later than June 30, 2027.
new text end

new text begin Subd. 5. new text end

new text begin Distribution plan. new text end

new text begin A facility that receives a rate increase under this section
must complete a distribution plan in the form and manner determined by the commissioner.
This plan must specify the total amount of money the facility is estimated to receive from
this rate increase and how that money will be distributed to increase the allowable
compensation-related costs described in subdivision 4 for employees described in
subdivisions 2 and 3. This estimate must be calculated by: (1) multiplying $52 and the sum
of the medical assistance and private pay resident days as defined in Minnesota Statutes,
section 256R.02, subdivision 45, for the period beginning October 1, 2022, through
September 30, 2023; (2) dividing the sum of clause (1) by 365; and (3) multiplying the
result of clause (2) by 915. A facility must submit its distribution plan to the commissioner
by October 1, 2024. The commissioner may review the distribution plan to ensure that the
payment rate adjustment per resident day is used in accordance with this section. The
commissioner may allow for a distribution plan amendment under exceptional circumstances
to be determined at the sole discretion of the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Distribution plan summary. new text end

new text begin By September 1, 2024, a facility must post the
distribution plan summary and leave it posted for a period of at least six months in an area
of the facility to which all employees have access. The posted distribution plan summary
must be in the form and manner determined by the commissioner. The distribution plan
summary must include instructions regarding how to contact the commissioner or the
commissioner's representative if an employee believes the employee is covered by subdivision
2 or 3 and has not received the compensation-related increases described in subdivision 4.
The instruction to employees must include the email address and telephone number that
may be used by the employee to contact the commissioner's representative. The posted
distribution plan summary must demonstrate how the increase in subdivision 1 received by
the nursing facility from July 1, 2024, through December 31, 2026, will be used in full to
pay the compensation-related costs in subdivision 4 for employees described in subdivisions
2 and 3.
new text end

new text begin Subd. 7. new text end

new text begin Overpayments and recoveries. new text end

new text begin If the nursing facility expends less on new
compensation-related costs than the amount made available by the rate increase in this
section for that purpose, the amount of this rate adjustment must be reduced to equal the
amount expended by the facility for purposes authorized under this section. If the facility
fails to post the distribution plan summary as required, fails to submit its distribution plan
to the commissioner by the due date, or uses these funds for unauthorized purposes, these
rate increases must be treated as an overpayment and subsequently recovered.
new text end

new text begin Subd. 8. new text end

new text begin Treatment as an applicable credit prohibited. new text end

new text begin The commissioner must not
treat payments received under this section as an applicable credit for purposes of setting
total payment rates under Minnesota Statutes, chapter 256R.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when approval is obtained.
new text end