SF 61

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 08:10am

A bill for an act
relating to human services; clarifying the additional local share of certain
publicly owned nursing facility costs; clarifying a publicly owned nursing facility
payment rate; amending Minnesota Statutes 2010, sections 256B.19, subdivision
1e; 256B.441, subdivision 55a.

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

Section 1.

Minnesota Statutes 2010, section 256B.19, subdivision 1e, is amended to
read:

Subd. 1e.

Additional local share of certain nursing facility costs.

Beginning
January 1, 2011, new text begin or on the first day of the second month following federal approval,
whichever occurs later, new text end local government entities that own the physical plant or are the
license holders of nursing facilities receiving rate adjustments under section 256B.441,
subdivision 55a, shall be responsible for paying the portion of nonfederal costs calculated
under section 256B.441, subdivision 55a, paragraph (d). Payments of the nonfederal share
shall be made monthly to the commissioner in amounts determined in accordance with
section 256B.441, subdivision 55a, paragraph (d). Payments for each month beginning
deleted text begin in January 2011 deleted text end new text begin on the effective date of the rate adjustment new text end through September 2015 shall
be due by the 15th day of the following month. If any provider obligated to pay an amount
under this subdivision is more than two months delinquent in the timely payment of the
monthly installment, the commissioner may withhold payments, penalties, and interest in
accordance with the methods outlined in section 256.9657, subdivision 7a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 256B.441, subdivision 55a, is amended to
read:

Subd. 55a.

Alternative to phase-in for publicly owned nursing facilities.

(a) For
operating payment rates implemented between January 1, 2011, new text begin or on the first day of the
second month following federal approval, whichever occurs later, new text end and September 30,
2015, the commissioner shall allow nursing facilities whose physical plant is owned or
whose license is held by a city, county, or hospital district to apply for a higher payment
rate under this section if the local government entity agrees to pay a specified portion of
the nonfederal share of medical assistance costs. Nursing facilities that apply shall be
eligible to select an operating payment rate, with a weight of 1.00, up to the rate calculated
in subdivision 54, without application of the phase-in under subdivision 55. The rates for
the other RUG's levels shall be computed as provided under subdivision 54.

(b) Rates determined under this subdivision shall take effect beginning January 1,
2011, new text begin or on the first day of the second month following federal approval, whichever occurs
later, new text end based on cost reports for the rate year ending September 30, 2009, and in future rate
years, rates determined for nursing facilities participating under this subdivision shall take
effect on October 1 of each year, based on the most recent available cost report.

(c) Eligible nursing facilities that wish to participate under this subdivision shall
make an application to the commissioner by September 30, 2010 new text begin , or by June 30 of any
subsequent year prior to June 30, 2015 new text end . deleted text begin Participation under this subdivision is irrevocable. deleted text end
If paragraph (a) does not result in a rate greater than what would have been provided
without application of this subdivision, a facility's rates shall be calculated as otherwise
provided and no payment by the local government entity shall be required under paragraph
(d).

(d) For each participating nursing facility, the public entity that owns the physical
plant or is the license holder of the nursing facility shall pay to the state the entire
nonfederal share of medical assistance payments received as a result of the difference
between the nursing facility's payment rate under subdivision 54, paragraph (a), and
the rates that the nursing facility would otherwise be paid without application of this
subdivision under subdivision 55 as determined by the commissioner.

(e) The commissioner may, at any time, reduce the payments under this subdivision
based on the commissioner's determination that the payments shall cause nursing facility
rates to exceed the state's Medicare upper payment limit or any other federal limitation. If
the commissioner determines a reduction is necessary, the commissioner shall reduce all
payment rates for participating nursing facilities by a percentage applied to the amount of
increase they would otherwise receive under this subdivision and shall notify participating
facilities of the reductions. If payments to a nursing facility are reduced, payments under
section 256B.19, subdivision 1e, shall be reduced accordingly.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end