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SF 2401

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to human services; increasing the boarding 
  1.3             care capacity reimbursed by medical assistance for 
  1.4             certain licensed boarding care homes; amending 
  1.5             Minnesota Statutes 1996, section 256B.431, subdivision 
  1.6             4.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 256B.431, 
  1.9   subdivision 4, is amended to read: 
  1.10     Subd. 4.  [SPECIAL RATES.] (a) For the rate years beginning 
  1.11  July 1, 1983, and July 1, 1984, a newly constructed nursing 
  1.12  facility or one with a capacity increase of 50 percent or more 
  1.13  may, upon written application to the commissioner, receive an 
  1.14  interim payment rate for reimbursement for property-related 
  1.15  costs calculated pursuant to the statutes and rules in effect on 
  1.16  May 1, 1983, and for operating costs negotiated by the 
  1.17  commissioner based upon the 60th percentile established for the 
  1.18  appropriate group under subdivision 2a, to be effective from the 
  1.19  first day a medical assistance recipient resides in the facility 
  1.20  or for the added beds.  For newly constructed nursing facilities 
  1.21  which are not included in the calculation of the 60th percentile 
  1.22  for any group, subdivision 2f, the commissioner shall establish 
  1.23  by rule procedures for determining interim operating cost 
  1.24  payment rates and interim property-related cost payment rates.  
  1.25  The interim payment rate shall not be in effect for more than 17 
  1.26  months.  The commissioner shall establish, by emergency and 
  2.1   permanent rules, procedures for determining the interim rate and 
  2.2   for making a retroactive cost settle-up after the first year of 
  2.3   operation; the cost settled operating cost per diem shall not 
  2.4   exceed 110 percent of the 60th percentile established for the 
  2.5   appropriate group.  Until procedures determining operating cost 
  2.6   payment rates according to mix of resident needs are 
  2.7   established, the commissioner shall establish by rule procedures 
  2.8   for determining payment rates for nursing facilities which 
  2.9   provide care under a lesser care level than the level for which 
  2.10  the nursing facility is certified.  
  2.11     (b) For the rate years beginning on or after July 1, 1985, 
  2.12  a newly constructed nursing facility or one with a capacity 
  2.13  increase of 50 percent or more may, upon written application to 
  2.14  the commissioner, receive an interim payment rate for 
  2.15  reimbursement for property related costs, operating costs, and 
  2.16  real estate taxes and special assessments calculated under rules 
  2.17  promulgated by the commissioner. 
  2.18     (c) For rate years beginning on or after July 1, 1983, the 
  2.19  commissioner may exclude from a provision of 12 MCAR S 2.050 any 
  2.20  facility that is licensed by the commissioner of health only as 
  2.21  a boarding care home, certified by the commissioner of health as 
  2.22  an intermediate care facility, is licensed by the commissioner 
  2.23  of human services under Minnesota Rules, parts 9520.0500 to 
  2.24  9520.0690, and has less than five ten percent of its licensed 
  2.25  boarding care capacity reimbursed by the medical assistance 
  2.26  program.  Until a permanent rule to establish the payment rates 
  2.27  for facilities meeting these criteria is promulgated, the 
  2.28  commissioner shall establish the medical assistance payment rate 
  2.29  as follows:  
  2.30     (1) The desk audited payment rate in effect on June 30, 
  2.31  1983, remains in effect until the end of the facility's fiscal 
  2.32  year.  The commissioner shall not allow any amendments to the 
  2.33  cost report on which this desk audited payment rate is based.  
  2.34     (2) For each fiscal year beginning between July 1, 1983, 
  2.35  and June 30, 1985, the facility's payment rate shall be 
  2.36  established by increasing the desk audited operating cost 
  3.1   payment rate determined in clause (1) at an annual rate of five 
  3.2   percent.  
  3.3      (3) For fiscal years beginning on or after July 1, 1985, 
  3.4   but before January 1, 1988, the facility's payment rate shall be 
  3.5   established by increasing the facility's payment rate in the 
  3.6   facility's prior fiscal year by the increase indicated by the 
  3.7   consumer price index for Minneapolis and St. Paul.  
  3.8      (4) For the fiscal year beginning on January 1, 1988, the 
  3.9   facility's payment rate must be established using the following 
  3.10  method:  The commissioner shall divide the real estate taxes and 
  3.11  special assessments payable as stated in the facility's current 
  3.12  property tax statement by actual resident days to compute a real 
  3.13  estate tax and special assessment per diem.  Next, the prior 
  3.14  year's payment rate must be adjusted by the higher of (1) the 
  3.15  percentage change in the consumer price index (CPI-U U.S. city 
  3.16  average) as published by the Bureau of Labor Statistics between 
  3.17  the previous two Septembers, new series index (1967-100), or (2) 
  3.18  2.5 percent, to determine an adjusted payment rate.  The 
  3.19  facility's payment rate is the adjusted prior year's payment 
  3.20  rate plus the real estate tax and special assessment per diem. 
  3.21     (5) For fiscal years beginning on or after January 1, 1989, 
  3.22  the facility's payment rate must be established using the 
  3.23  following method:  The commissioner shall divide the real estate 
  3.24  taxes and special assessments payable as stated in the 
  3.25  facility's current property tax statement by actual resident 
  3.26  days to compute a real estate tax and special assessment per 
  3.27  diem.  Next, the prior year's payment rate less the real estate 
  3.28  tax and special assessment per diem must be adjusted by the 
  3.29  higher of (1) the percentage change in the consumer price index 
  3.30  (CPI-U U.S. city average) as published by the Bureau of Labor 
  3.31  Statistics between the previous two Septembers, new series index 
  3.32  (1967-100), or (2) 2.5 percent, to determine an adjusted payment 
  3.33  rate.  The facility's payment rate is the adjusted payment rate 
  3.34  plus the real estate tax and special assessment per diem. 
  3.35     (6) For the purpose of establishing payment rates under 
  3.36  this paragraph, the facility's rate and reporting years coincide 
  4.1   with the facility's fiscal year.  
  4.2      (d) A facility that meets the criteria of paragraph (c) 
  4.3   shall submit annual cost reports on forms prescribed by the 
  4.4   commissioner.  
  4.5      (e) For the rate year beginning July 1, 1985, each nursing 
  4.6   facility total payment rate must be effective two calendar 
  4.7   months from the first day of the month after the commissioner 
  4.8   issues the rate notice to the nursing facility.  From July 1, 
  4.9   1985, until the total payment rate becomes effective, the 
  4.10  commissioner shall make payments to each nursing facility at a 
  4.11  temporary rate that is the prior rate year's operating cost 
  4.12  payment rate increased by 2.6 percent plus the prior rate year's 
  4.13  property-related payment rate and the prior rate year's real 
  4.14  estate taxes and special assessments payment rate.  The 
  4.15  commissioner shall retroactively adjust the property-related 
  4.16  payment rate and the real estate taxes and special assessments 
  4.17  payment rate to July 1, 1985, but must not retroactively adjust 
  4.18  the operating cost payment rate. 
  4.19     (f) For the purposes of Minnesota Rules, part 9549.0060, 
  4.20  subpart 13, item F, the following types of transactions shall 
  4.21  not be considered a sale or reorganization of a provider entity: 
  4.22     (1) the sale or transfer of a nursing facility upon death 
  4.23  of an owner; 
  4.24     (2) the sale or transfer of a nursing facility due to 
  4.25  serious illness or disability of an owner as defined under the 
  4.26  social security act; 
  4.27     (3) the sale or transfer of the nursing facility upon 
  4.28  retirement of an owner at 62 years of age or older; 
  4.29     (4) any transaction in which a partner, owner, or 
  4.30  shareholder acquires an interest or share of another partner, 
  4.31  owner, or shareholder in a nursing facility business provided 
  4.32  the acquiring partner, owner, or shareholder has less than 50 
  4.33  percent ownership after the acquisition; 
  4.34     (5) a sale and leaseback to the same licensee which does 
  4.35  not constitute a change in facility license; 
  4.36     (6) a transfer of an interest to a trust; 
  5.1      (7) gifts or other transfers for no consideration; 
  5.2      (8) a merger of two or more related organizations; 
  5.3      (9) a transfer of interest in a facility held in 
  5.4   receivership; 
  5.5      (10) a change in the legal form of doing business other 
  5.6   than a publicly held organization which becomes privately held 
  5.7   or vice versa; 
  5.8      (11) the addition of a new partner, owner, or shareholder 
  5.9   who owns less than 20 percent of the nursing facility or the 
  5.10  issuance of stock; or 
  5.11     (12) an involuntary transfer including foreclosure, 
  5.12  bankruptcy, or assignment for the benefit of creditors. 
  5.13     Any increase in allowable debt or allowable interest 
  5.14  expense or other cost incurred as a result of the foregoing 
  5.15  transactions shall be a nonallowable cost for purposes of 
  5.16  reimbursement under Minnesota Rules, parts 9549.0010 to 
  5.17  9549.0080.