HF 3442

1st Committee Engrossment - 86th Legislature (2009 - 2010) Posted on 03/19/2013 07:29pm

1.1A bill for an act

1.2relating to human services; changing the phase-in for nursing facility rate
1.3rebasing;amending Minnesota Statutes 2009 Supplement, section 256B.441,
1.4subdivision 55.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55,
1.7is amended to read:
1.8    Subd. 55. Phase-in of rebased operating payment rates. (a) For the rate years
1.9beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated
1.10under this section shall be phased in by blending the operating rate with the operating
1.11payment rate determined under section 256B.434. For purposes of this subdivision, the
1.12rate to be used that is determined under section 256B.434 shall not include the portion of
1.13the operating payment rate related to performance-based incentive payments under section
1.14256B.434, subdivision 4 , paragraph (d). For the rate year beginning October 1, 2008, the
1.15operating payment rate for each facility shall be 13 percent of the operating payment rate
1.16from this section, and 87 percent of the operating payment rate from section 256B.434.
1.17For the rate year beginning October 1, 2009, the operating payment rate for each facility
1.18shall be 14 percent of the operating payment rate from this section, and 86 percent of
1.19the operating payment rate from section 256B.434. For rate years beginning October 1,
1.202010; October 1, 2011; and October 1, 2012, no rate adjustments shall be implemented
1.21under this section, but shall be determined under section 256B.434. For the rate year
1.22beginning October 1, 2010, the operating payment rate for each facility shall be 14 percent
1.23of the operating payment rate from this section, and 86 percent of the operating payment
1.24rate from section 256B.434. For the rate year beginning October 1, 2011, the operating
2.1payment rate for each facility shall be 31 percent of the operating payment rate from this
2.2section, and 69 percent of the operating payment rate from section 256B.434. For the rate
2.3year beginning October 1, 2012, the operating payment rate for each facility shall be 48
2.4percent of the operating payment rate from this section, and 52 percent of the operating
2.5payment rate from section 256B.434. For the rate year beginning October 1, 2013, the
2.6operating payment rate for each facility shall be 65 percent of the operating payment rate
2.7from this section, and 35 percent of the operating payment rate from section 256B.434.
2.8For the rate year beginning October 1, 2014, the operating payment rate for each facility
2.9shall be 82 percent of the operating payment rate from this section, and 18 percent of the
2.10operating payment rate from section 256B.434. For the rate year beginning October 1,
2.112015, the operating payment rate for each facility shall be the operating payment rate
2.12determined under this section. The blending of operating payment rates under this section
2.13shall be performed separately for each RUG's class.
2.14    (b) For the rate year beginning October 1, 2008, the commissioner shall apply limits
2.15to the operating payment rate increases under paragraph (a) by creating a minimum
2.16percentage increase and a maximum percentage increase.
2.17    (1) Each nursing facility that receives a blended October 1, 2008, operating payment
2.18rate increase under paragraph (a) of less than one percent, when compared to its operating
2.19payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00,
2.20shall receive a rate adjustment of one percent.
2.21    (2) The commissioner shall determine a maximum percentage increase that will
2.22result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing
2.23facilities with a blended October 1, 2008, operating payment rate increase under paragraph
2.24(a) greater than the maximum percentage increase determined by the commissioner, when
2.25compared to its operating payment rate on September 30, 2008, computed using rates with
2.26a RUG's weight of 1.00, shall receive the maximum percentage increase.
2.27    (3) Nursing facilities with a blended October 1, 2008, operating payment rate
2.28increase under paragraph (a) greater than one percent and less than the maximum
2.29percentage increase determined by the commissioner, when compared to its operating
2.30payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00,
2.31shall receive the blended October 1, 2008, operating payment rate increase determined
2.32under paragraph (a).
2.33    (4) The October 1, 2009, through October 1, 2015, operating payment rate for
2.34facilities receiving the maximum percentage increase determined in clause (2) shall be
2.35the amount determined under paragraph (a) less the difference between the amount
3.1determined under paragraph (a) for October 1, 2008, and the amount allowed under clause
3.2(2). This rate restriction does not apply to rate increases provided in any other section.
3.3    (c) A portion of the funds received under this subdivision that are in excess of
3.4operating payment rates that a facility would have received under section 256B.434, as
3.5determined in accordance with clauses (1) to (3), shall be subject to the requirements in
3.6section 256B.434, subdivision 19, paragraphs (b) to (h).
3.7    (1) Determine the amount of additional funding available to a facility, which shall be
3.8equal to total medical assistance resident days from the most recent reporting year times
3.9the difference between the blended rate determined in paragraph (a) for the rate year being
3.10computed and the blended rate for the prior year.
3.11    (2) Determine the portion of all operating costs, for the most recent reporting year,
3.12that are compensation related. If this value exceeds 75 percent, use 75 percent.
3.13    (3) Subtract the amount determined in clause (2) from 75 percent.
3.14    (4) The portion of the fund received under this subdivision that shall be subject to
3.15the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal
3.16the amount determined in clause (1) times the amount determined in clause (3).