SF 3019

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 04/13/2010 11:24am

A bill for an act
relating to human services; authorizing a rate increase for publicly owned
nursing facilities; requiring a local share of nonfederal medical assistance costs;
amending Minnesota Statutes 2008, sections 256B.19, by adding a subdivision;
256B.441, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2008, section 256B.19, is amended by adding a
subdivision to read:

new text begin Subd. 1e. new text end

new text begin Additional local share of certain nursing facility costs. new text end

new text begin Beginning
January 1, 2011, local government entities that own 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 in January 2011 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 end

Sec. 2.

Minnesota Statutes 2008, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 55a. new text end

new text begin Alternative to phase-in for publicly owned nursing facilities. new text end

new text begin (a) For
operating payment rates implemented between January 1, 2011, and September 30, 2015,
the commissioner shall allow nursing facilities owned 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. Publicly
owned nursing facilities that apply shall be eligible for a payment rate up to the rate
calculated in subdivision 54, without application of the phase-in under subdivision 55.
new text end

new text begin (b) Rates determined under this subdivision shall take effect beginning January 1,
2011, 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.
new text end

new text begin (c) Eligible nursing facilities that wish to participate under this subdivision shall
make an application to the commissioner by September 30, 2010. Participation under this
subdivision is irrevocable. 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).
new text end

new text begin (d) For each participating nursing facility, the public entity that owns 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 and the rate that the nursing facility would otherwise be paid under
subdivision 55 as determined by the commissioner.
new text end

new text begin (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 end

Sec. 3. new text begin EFFECTIVE UPON FEDERAL APPROVAL.
new text end

new text begin Sections 1 and 2 shall be implemented only upon federal approval. The
commissioner of human services shall delay the effective date of sections 1 and 2
if necessary in order to avoid loss of enhanced federal Medicaid matching funds as
authorized by the American Recovery and Reinvestment Act of 2009 and extended by
any subsequent law.
new text end