SF 286

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to human services; adjusting medical assistance operating payment
rates for low-payment rate nursing facilities; appropriating money; amending
Minnesota Statutes 2006, section 256B.434, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2006, section 256B.434, is amended by adding a
subdivision to read:

new text begin Subd. 19. new text end

new text begin Adjustment for low-payment rate facilities. new text end

new text begin (a) For the rate years
beginning October 1, 2007, and October 1, 2008, the commissioner shall adjust operating
payment rates for low-payment rate nursing facilities reimbursed under this section and
licensed under chapter 144A, in accordance with this subdivision.
new text end

new text begin (b) The commissioner shall determine a value for an operating payment rate with
a RUGS index of 1.00, such that the cost to increase the operating payment rate for all
nursing facilities with operating payment rates less than that value by an amount equal
to 50 percent of the difference between their operating payment rate with a RUGS index
equal to 1.00 and the value determined under this paragraph not to exceed an increase of
six percent of a facility's operating payment rate with a RUGS index equal to 1.00, does
not exceed the amount appropriated for this purpose.
new text end

new text begin (c) Effective September 30, 2007, and September 30, 2008, the commissioner shall
identify all nursing facilities with operating payment rates with a RUGS index equal to
1.00, that are less than the value determined in paragraph (b).
new text end

new text begin (d) Effective October 1, 2007, and October 1, 2008, the commissioner shall provide
each nursing facility identified in paragraph (c) with an increase in their operating payment
rate with a RUGS index of 1.00 that is equal to 50 percent of the difference between their
operating payment rate with a RUGS index equal to 1.00, and the value determined in
paragraph (b), but not to exceed an increase of six percent of the operating payment rate
with a RUGS index equal to 1.00.
new text end

new text begin (e) The commissioner shall apportion the amount of the RUGS index equal to 1.00
computed in paragraph (d) between case mix and noncase mix per diems in proportion to
the amounts in effect on September 30, 2007. The commissioner shall multiply the case
mix portion by the RUGS indices and add the noncase mix portion to that product to
determine the other RUGS operating rates.
new text end

new text begin (f) The rate adjustment provided in paragraph (d) shall be added after any other
rate adjustments effective on the same day.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $4,500,000 in the fiscal year beginning July 1, 2007, and $11,250,000 in the fiscal
year beginning July 1, 2008, are appropriated from the general fund to the commissioner
of human services to provide rate adjustments to low-payment rate nursing facilities
under section 1.
new text end