SF 2884

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

A bill for an act
relating to human services; requiring certain pension benefit costs to be
recognized for purposes of calculating nursing facility payment rates; amending
Minnesota Statutes 2007 Supplement, section 256B.434, subdivision 20.

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

Section 1.

Minnesota Statutes 2007 Supplement, section 256B.434, subdivision 20,
is amended to read:

Subd. 20.

Payment of Public Employees Retirement Association costs.

new text begin (a)
new text end Nursing facilities that participate in the Public Employees Retirement Association (PERA)
shall have the component of their payment rate associated with the costs of PERA
determined for each rate year. Effective for rate years beginning on and after October
1, 2007, the commissioner shall determine the portion of the payment rate in effect on
September 30 each year and shall subtract that amount from the payment rate to be
effective on the following October 1. The portion that shall be deemed to be included in
the September 30, 2007, rate that is associated with PERA costs shall be the allowed costs
in the facility's base for determining rates under this section, divided by the resident days
reported for that year. The commissioner shall add to the payment rate to be effective on
October 1 each year an amount equal to the reported costs associated with PERA, for the
year ending on the most recent September 30 for which data is available, divided by total
resident days for that year, as reported by the facility and audited under section 256B.441.

new text begin (b) For the rate years beginning on and after October 1, 2008, the following nursing
facilities shall have their employee pension benefit costs reported on their statistical and
cost report treated as Public Employees Retirement Association (PERA) contributions for
the purpose of computing payment rates under this section and section 256B.441:
new text end

new text begin (1) a facility in Meeker County that was licensed for 58 beds as of December 1, 2007;
new text end

new text begin (2) a facility in McLeod County that was licensed for 120 beds as of December
1, 2007;
new text end

new text begin (3) a facility in Jackson County that was licensed for 43 beds as of December 1,
2007; and
new text end

new text begin (4) a facility in Pennington County that was licensed for 52 beds as of December
1, 2007.
new text end