SF 958

as introduced - 89th Legislature (2015 - 2016) Posted on 03/03/2015 08:55am

A bill for an act
relating to human services; increasing the base wage for residential
asleep-overnight staff; increasing ICF/DD payment rates to defray costs resulting
from increases in the minimum wage; amending Minnesota Statutes 2014,
sections 256B.4914, subdivision 5; 256B.5012, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 256B.4914, subdivision 5, is amended to
read:

Subd. 5.

Base wage index and standard component values.

(a) The base wage
index is established to determine staffing costs associated with providing services to
individuals receiving home and community-based services. For purposes of developing
and calculating the proposed base wage, Minnesota-specific wages taken from job
descriptions and standard occupational classification (SOC) codes from the Bureau of
Labor Statistics as defined in the most recent edition of the Occupational Handbook must
be used. The base wage index must be calculated as follows:

(1) for residential direct care staff, the sum of:

(i) 15 percent of the subtotal of 50 percent of the median wage for personal and
home health aide (SOC code 39-9021); 30 percent of the median wage for nursing aide
(SOC code 31-1012); and 20 percent of the median wage for social and human services
aide (SOC code 21-1093); and

(ii) 85 percent of the subtotal of 20 percent of the median wage for home health aide
(SOC code 31-1011); 20 percent of the median wage for personal and home health aide
(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012);
20 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20
percent of the median wage for social and human services aide (SOC code 21-1093);

(2) for day services, 20 percent of the median wage for nursing aide (SOC code
31-1012); 20 percent of the median wage for psychiatric technician (SOC code 29-2053);
and 60 percent of the median wage for social and human services aide (SOC code 21-1093);

(3) for residential asleep-overnight staff, the new text begin base new text end wage deleted text begin will be $7.66 per hour deleted text end new text begin
is either the minimum wage specified in section 177.24, subdivision 1, or the federal
minimum wage, whichever is higher new text end , except in a family foster care setting, new text begin where new text end the new text begin base
new text end wage is $2.80 per hour;

(4) for behavior program analyst staff, 100 percent of the median wage for mental
health counselors (SOC code 21-1014);

(5) for behavior program professional staff, 100 percent of the median wage for
clinical counseling and school psychologist (SOC code 19-3031);

(6) for behavior program specialist staff, 100 percent of the median wage for
psychiatric technicians (SOC code 29-2053);

(7) for supportive living services staff, 20 percent of the median wage for nursing
aide (SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC
code 29-2053); and 60 percent of the median wage for social and human services aide
(SOC code 21-1093);

(8) for housing access coordination staff, 50 percent of the median wage for
community and social services specialist (SOC code 21-1099); and 50 percent of the
median wage for social and human services aide (SOC code 21-1093);

(9) for in-home family support staff, 20 percent of the median wage for nursing
aide (SOC code 31-1012); 30 percent of the median wage for community social service
specialist (SOC code 21-1099); 40 percent of the median wage for social and human
services aide (SOC code 21-1093); and ten percent of the median wage for psychiatric
technician (SOC code 29-2053);

(10) for independent living skills staff, 40 percent of the median wage for community
social service specialist (SOC code 21-1099); 50 percent of the median wage for social
and human services aide (SOC code 21-1093); and ten percent of the median wage for
psychiatric technician (SOC code 29-2053);

(11) for supported employment staff, 20 percent of the median wage for nursing aide
(SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC
code 29-2053); and 60 percent of the median wage for social and human services aide
(SOC code 21-1093);

(12) for adult companion staff, 50 percent of the median wage for personal and home
care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides,
orderlies, and attendants (SOC code 31-1012);

(13) for night supervision staff, 20 percent of the median wage for home health aide
(SOC code 31-1011); 20 percent of the median wage for personal and home health aide
(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012);
20 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20
percent of the median wage for social and human services aide (SOC code 21-1093);

(14) for respite staff, 50 percent of the median wage for personal and home care aide
(SOC code 39-9021); and 50 percent of the median wage for nursing aides, orderlies, and
attendants (SOC code 31-1012);

(15) for personal support staff, 50 percent of the median wage for personal and home
care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides,
orderlies, and attendants (SOC code 31-1012);

(16) for supervisory staff, the basic wage is $17.43 per hour with exception of the
supervisor of behavior analyst and behavior specialists, which must be $30.75 per hour;

(17) for registered nurse, the basic wage is $30.82 per hour; and

(18) for licensed practical nurse, the basic wage is $18.64 per hour.

(b) Component values for residential support services are:

(1) supervisory span of control ratio: 11 percent;

(2) employee vacation, sick, and training allowance ratio: 8.71 percent;

(3) employee-related cost ratio: 23.6 percent;

(4) general administrative support ratio: 13.25 percent;

(5) program-related expense ratio: 1.3 percent; and

(6) absence and utilization factor ratio: 3.9 percent.

(c) Component values for family foster care are:

(1) supervisory span of control ratio: 11 percent;

(2) employee vacation, sick, and training allowance ratio: 8.71 percent;

(3) employee-related cost ratio: 23.6 percent;

(4) general administrative support ratio: 3.3 percent;

(5) program-related expense ratio: 1.3 percent; and

(6) absence factor: 1.7 percent.

(d) Component values for day services for all services are:

(1) supervisory span of control ratio: 11 percent;

(2) employee vacation, sick, and training allowance ratio: 8.71 percent;

(3) employee-related cost ratio: 23.6 percent;

(4) program plan support ratio: 5.6 percent;

(5) client programming and support ratio: ten percent;

(6) general administrative support ratio: 13.25 percent;

(7) program-related expense ratio: 1.8 percent; and

(8) absence and utilization factor ratio: 3.9 percent.

(e) Component values for unit-based services with programming are:

(1) supervisory span of control ratio: 11 percent;

(2) employee vacation, sick, and training allowance ratio: 8.71 percent;

(3) employee-related cost ratio: 23.6 percent;

(4) program plan supports ratio: 3.1 percent;

(5) client programming and supports ratio: 8.6 percent;

(6) general administrative support ratio: 13.25 percent;

(7) program-related expense ratio: 6.1 percent; and

(8) absence and utilization factor ratio: 3.9 percent.

(f) Component values for unit-based services without programming except respite
are:

(1) supervisory span of control ratio: 11 percent;

(2) employee vacation, sick, and training allowance ratio: 8.71 percent;

(3) employee-related cost ratio: 23.6 percent;

(4) program plan support ratio: 3.1 percent;

(5) client programming and support ratio: 8.6 percent;

(6) general administrative support ratio: 13.25 percent;

(7) program-related expense ratio: 6.1 percent; and

(8) absence and utilization factor ratio: 3.9 percent.

(g) Component values for unit-based services without programming for respite are:

(1) supervisory span of control ratio: 11 percent;

(2) employee vacation, sick, and training allowance ratio: 8.71 percent;

(3) employee-related cost ratio: 23.6 percent;

(4) general administrative support ratio: 13.25 percent;

(5) program-related expense ratio: 6.1 percent; and

(6) absence and utilization factor ratio: 3.9 percent.

(h) On July 1, 2017, the commissioner shall update the base wage index in paragraph
(a) based on the wage data by standard occupational code (SOC) from the Bureau of
Labor Statistics available on December 31, 2016. The commissioner shall publish these
updated values and load them into the rate management system. This adjustment occurs
every five years. For adjustments in 2021 and beyond, the commissioner shall use the data
available on December 31 of the calendar year five years prior.

(i) On July 1, 2017, the commissioner shall update the framework components
in paragraphs (b) to (g); subdivision 6, clauses (8) and (9); and subdivision 7, clauses
(16) and (17), for changes in the Consumer Price Index. The commissioner will adjust
these values higher or lower by the percentage change in the Consumer Price Index-All
Items, United States city average (CPI-U) from January 1, 2014, to January 1, 2017. The
commissioner shall publish these updated values and load them into the rate management
system. This adjustment occurs every five years. For adjustments in 2021 and beyond, the
commissioner shall use the data available on January 1 of the calendar year four years
prior and January 1 of the current calendar year.

new text begin (j) Within 12 months following any change in the minimum wage specified in
section 177.24, subdivision 1, or the federal minimum wage, the commissioner must adjust
Medicaid Management Information System (MMIS) service agreements to reflect this
change. These adjustments to MMIS must be made for banding period rates, retroactive
to the date of the minimum wage increase, under section 256B.4913, subdivision 4a, as
well as for all postbanding period rates.
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 increase to defray minimum wage increases. new text end

new text begin (a) Effective
August 1, 2015, the operating payment rates for any qualifying ICF/DD, as defined in
paragraph (b), must be increased whenever the facility can demonstrate an increase
in costs directly attributable to an increase in the minimum wage specified in section
177.24, or to an increase in the federal minimum wage. Costs directly attributable to a
legally required increase in the minimum wage include: (1) salary increases; and (2) the
employer's share of FICA, Medicare taxes, employer-sponsored retirement plans, federal
and state unemployment insurances, and workers' compensation. All increased revenue
from this rate increase must be used solely to increase the compensation of minimum
wage employees of the facility.
new text end

new text begin (b) In order to qualify for a rate increase under paragraph (a), a facility must submit
an application to the commissioner within six months following an increase in the
minimum wage. The application shall be submitted in a form and manner prescribed
by the commissioner, but must include: (1) a clear computation of the facility's total
increased costs directly attributable to the increase in the minimum wage, as defined in
paragraph (a); and (2) a plan by which the facility will distribute the increased revenue to
minimum wage employees of the facility.
new text end

new text begin (c) For each facility that applies for a rate increase under paragraph (a), the
commissioner must determine the total increased costs as a percentage of the facility's
operating payment rate in effect on the day of the minimum wage increase.
new text end

new text begin (d) For each facility reimbursed under this subdivision, the commissioner shall
increase operating payments under this section equal to the percentage determined in
paragraph (c). The commissioner shall apply the rate increase to each qualifying facility's
payment rate based on occupied beds, using the percentage specified in paragraph (c),
multiplied by the total payment rate in effect on the day prior to the minimum wage
increase, including the variable rate, but excluding the property-related payment rate.
new text end

new text begin (e) The rate increase under this subdivision is effective retroactively from the day
the minimum wage increases.
new text end