1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/13/2023 12:47pm
Engrossments | ||
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Introduction | Posted on 03/16/2023 | |
1st Engrossment | Posted on 04/13/2023 |
A bill for an act
relating to state government; modifying provisions on health care administration
and affordability, the Minnesota Department of Health, health-related licensing
boards, human services background studies, behavioral health, Department of
Human Services operations and policy, economic assistance, and housing supports;
requiring reports; making forecast adjustments; appropriating money; amending
Minnesota Statutes 2022, sections 12A.08, subdivision 3; 13.3805, subdivision 1;
16A.151, subdivision 2; 62A.045; 62A.30, by adding subdivisions; 62A.673,
subdivision 2; 62J.17, subdivision 5a; 62J.692, subdivisions 1, 3, 4, 5, 8; 62J.84,
subdivisions 2, 3, 4, 6, 7, 8, 9, by adding subdivisions; 62Q.01, by adding a
subdivision; 62Q.021, by adding a subdivision; 62Q.55, subdivision 5; 62Q.556;
62Q.56, subdivision 2; 62Q.73, subdivisions 1, 7; 62U.04, subdivisions 4, 5, 5a,
11, by adding subdivisions; 62V.05, subdivision 4a, by adding a subdivision;
121A.28; 121A.335; 122A.18, subdivision 8; 144.122; 144.1481, subdivision 1;
144.1501, subdivisions 1, 2, 3, 4, 5; 144.1505; 144.2151; 144.222; 144.226,
subdivisions 3, 4; 144.382, by adding subdivisions; 144.55, subdivision 3; 144.566;
144.608, subdivision 1; 144.615, subdivision 7; 144.651, by adding a subdivision;
144.653, subdivision 5; 144.6535, subdivisions 1, 2, 4; 144.69; 144.7055; 144.7067,
subdivision 1; 144.9501, subdivisions 9, 17, 26a, 26b, by adding subdivisions;
144.9505, subdivisions 1, 1g, 1h; 144.9508, subdivision 2; 144A.06, subdivision
2; 144A.071, subdivision 2; 144A.073, subdivision 3b; 144A.474, subdivisions
3, 9, 12; 144A.4791, subdivision 10; 144E.001, subdivision 1, by adding a
subdivision; 144E.101, subdivisions 6, 7; 144E.103, subdivision 1; 144E.35;
144G.16, subdivision 7; 144G.18; 144G.57, subdivision 8; 145.411, subdivisions
1, 5; 145.423, subdivision 1; 145.87, subdivision 4; 145.924; 145.925; 145A.131,
subdivisions 1, 5; 145A.14, by adding a subdivision; 147.02, subdivision 1; 147.03,
subdivision 1; 147.037, subdivision 1; 147.141; 147A.08; 147A.16; 147B.02,
subdivisions 4, 7; 148.261, subdivision 1; 148.512, subdivisions 10a, 10b, by
adding subdivisions; 148.513, by adding a subdivision; 148.515, subdivision 6;
148.5175; 148.5195, subdivision 3; 148.5196, subdivision 1; 148.5197; 148.5198;
148B.392, subdivision 2; 148F.11, by adding a subdivision; 150A.08, subdivisions
1, 5; 150A.091, by adding a subdivision; 150A.13, subdivision 10; 151.01,
subdivision 27, by adding a subdivision; 151.065, subdivisions 1, 2, 3, 4, 6; 151.37,
subdivision 12; 151.40, subdivisions 1, 2; 151.555; 151.74, subdivisions 3, 4;
152.01, subdivision 18; 152.205; 153A.13, subdivisions 3, 4, 5, 6, 7, 9, 10, 11, by
adding subdivisions; 153A.14, subdivisions 1, 2, 2h, 2i, 2j, 4, 4a, 4b, 4c, 4e, 6, 9,
11, by adding a subdivision; 153A.15, subdivisions 1, 2, 4; 153A.17; 153A.175;
153A.18; 153A.20; 245.4661, subdivision 9; 245.4663, subdivisions 1, 4; 245.469,
subdivision 3; 245.4901, subdivision 4, by adding a subdivision; 245.735,
subdivisions 3, 5, 6, by adding subdivisions; 245A.02, subdivisions 5a, 10b;
245A.04, subdivisions 1, 7, 7a; 245A.041, by adding a subdivision; 245A.05;
245A.055, subdivision 2; 245A.06, subdivisions 1, 2, 4; 245A.07, subdivisions
2a, 3; 245A.10, subdivisions 3, 4; 245A.16, subdivision 1, by adding a subdivision;
245C.02, subdivisions 6a, 11c, 13e, by adding subdivisions; 245C.03, subdivisions
1, 1a, 4, 5, 5a; 245C.031, subdivisions 1, 4; 245C.05, subdivisions 1, 4, by adding
a subdivision; 245C.07; 245C.08, subdivision 1; 245C.10, subdivisions 1d, 2, 2a,
3, 4, 5, 6, 8, 9, 9a, 10, 11, 12, 13, 14, 15, 16, 17, 20, 21, by adding a subdivision;
245C.31, subdivision 1; 245C.32, subdivision 2; 245C.33, subdivision 4; 245G.01,
by adding a subdivision; 245G.11, subdivision 10; 245H.01, subdivision 3, by
adding a subdivision; 245H.03, subdivisions 2, 3, 4; 245H.06, subdivisions 1, 2;
245H.07, subdivisions 1, 2; 245H.13, subdivision 9; 245I.04, subdivisions 14, 16;
245I.05, subdivision 3; 245I.08, subdivisions 2, 3, 4; 245I.10, subdivisions 2, 3,
5, 6, 7, 8; 245I.11, subdivisions 3, 4; 245I.20, subdivisions 5, 6, 10, 13, 14, 16;
254B.02, subdivision 5; 254B.05, subdivisions 1, 1a; 256.01, by adding a
subdivision; 256.0471, subdivision 1; 256.478, subdivisions 1, 2, by adding
subdivisions; 256.9685, subdivisions 1a, 1b; 256.9686, by adding a subdivision;
256.969, subdivisions 2b, 9, 25, by adding a subdivision; 256B.04, subdivisions
14, 15; 256B.055, subdivision 17; 256B.056, subdivision 7, by adding a subdivision;
256B.0616, subdivisions 3, 4, 5; 256B.0622, subdivisions 7a, 7b, 7c, 8; 256B.0623,
subdivision 4; 256B.0624, subdivisions 5, 8; 256B.0625, subdivisions 3a, 5m, 9,
13c, 13e, 16, 22, 28b, 30, 31, by adding subdivisions; 256B.0631, subdivisions 1,
3; 256B.064; 256B.0757, subdivision 4c; 256B.0941, subdivision 2a, by adding
subdivisions; 256B.0946, subdivision 6; 256B.0947, subdivision 7a, by adding a
subdivision; 256B.196, subdivision 2; 256B.27, subdivision 3; 256B.434,
subdivision 4f; 256B.69, subdivisions 4, 5a, 6d, 28, 36; 256B.692, subdivisions
1, 2; 256B.75; 256B.76, subdivisions 1, 2; 256B.764; 256D.01, subdivision 1a;
256D.02, by adding a subdivision; 256D.024, subdivision 1; 256D.06, subdivision
5; 256D.07; 256I.03, subdivisions 7, 15, by adding a subdivision; 256I.04,
subdivisions 1, 2, 3; 256I.06, subdivision 3; 256I.09; 256J.08, subdivision 21;
256J.09, subdivision 3; 256J.26, subdivision 1; 256J.95, subdivision 5; 256L.03,
subdivisions 1, 5; 256L.04, subdivisions 1c, 7a, 10, by adding a subdivision;
256L.07, subdivision 1; 256L.15, subdivision 2; 256P.01, by adding subdivisions;
256P.02, subdivisions 1a, 2, by adding subdivisions; 256P.04, by adding a
subdivision; 256P.06, subdivision 3, by adding subdivisions; 260C.007, subdivision
26d; 260E.09; 270B.14, subdivision 1; 297F.10, subdivision 1; 403.161; 403.162;
518A.39, subdivision 2; 524.5-118; 609B.425, subdivision 2; 609B.435, subdivision
2; Laws 2017, First Special Session chapter 6, article 5, section 11, as amended;
Laws 2021, First Special Session chapter 7, article 6, section 26; article 16, section
2, subdivision 32, as amended; Laws 2022, chapter 99, article 1, section 46; article
3, section 9; proposing coding for new law in Minnesota Statutes, chapters 62J;
62Q; 115; 144; 144E; 145; 148; 245; 245A; 245C; 256; repealing Minnesota
Statutes 2022, sections 62J.692, subdivisions 4a, 7, 7a; 62J.84, subdivision 5;
62Q.145; 62U.10, subdivisions 6, 7, 8; 137.38, subdivision 1; 144.059, subdivision
10; 144.9505, subdivision 3; 145.1621; 145.411, subdivisions 2, 4; 145.412;
145.413, subdivisions 2, 3; 145.4131; 145.4132; 145.4133; 145.4134; 145.4135;
145.4136; 145.415; 145.416; 145.423, subdivisions 2, 3, 4, 5, 6, 7, 8, 9; 145.4235;
145.4241; 145.4242; 145.4243; 145.4244; 145.4245; 145.4246; 145.4247;
145.4248; 145.4249; 152.092; 153A.14, subdivision 5; 245A.22; 245C.02,
subdivisions 9, 14b; 245C.031, subdivisions 5, 6, 7; 245C.032; 245C.30,
subdivision 1a; 245C.301; 256.9685, subdivisions 1c, 1d; 256B.011; 256B.40;
256B.69, subdivision 5c; 256I.03, subdivision 6; 261.28; 393.07, subdivision 11;
Minnesota Rules, parts 4615.3600; 4640.1500; 4640.1600; 4640.1700; 4640.1800;
4640.1900; 4640.2000; 4640.2100; 4640.2200; 4640.2300; 4640.2400; 4640.2500;
4640.2600; 4640.2700; 4640.2800; 4640.2900; 4640.3000; 4640.3100; 4640.3200;
4640.3300; 4640.3400; 4640.3500; 4640.3600; 4640.3700; 4640.3800; 4640.3900;
4640.4000; 4640.4100; 4640.4200; 4640.4300; 4640.6100; 4640.6200; 4640.6300;
4640.6400; 4645.0300; 4645.0400; 4645.0500; 4645.0600; 4645.0700; 4645.0800;
4645.0900; 4645.1000; 4645.1100; 4645.1200; 4645.1300; 4645.1400; 4645.1500;
4645.1600; 4645.1700; 4645.1800; 4645.1900; 4645.2000; 4645.2100; 4645.2200;
4645.2300; 4645.2400; 4645.2500; 4645.2600; 4645.2700; 4645.2800; 4645.2900;
4645.3000; 4645.3100; 4645.3200; 4645.3300; 4645.3400; 4645.3500; 4645.3600;
4645.3700; 4645.3800; 4645.3805; 4645.3900; 4645.4000; 4645.4100; 4645.4200;
4645.4300; 4645.4400; 4645.4500; 4645.4600; 4645.4700; 4645.4800; 4645.4900;
4645.5100; 4645.5200; 4700.1900; 4700.2000; 4700.2100; 4700.2210; 4700.2300,
subparts 1, 3, 4, 4a, 5; 4700.2410; 4700.2420; 4700.2500; 5610.0100; 5610.0200;
5610.0300; 9505.0235; 9505.0505, subpart 18; 9505.0520, subpart 9b.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2022, section 62A.045, is amended to read:
(a) As a condition of doing business in Minnesota or providing coverage to residents of
Minnesota covered by this section, each health insurer shall comply with the requirements
deleted text begin ofdeleted text end new text begin for health insurers undernew text end the federal Deficit Reduction Act of 2005, Public Law 109-171new text begin
and the federal Consolidated Appropriations Act of 2022, Public Law 117-103new text end , including
any federal regulations adopted under deleted text begin that actdeleted text end new text begin those actsnew text end , to the extent that deleted text begin it imposesdeleted text end new text begin they
imposenew text end a requirement that applies in this state and that is not also required by the laws of
this state. This section does not require compliance with any provision of the federal deleted text begin actdeleted text end new text begin
actsnew text end prior to the effective deleted text begin datedeleted text end new text begin datesnew text end provided for deleted text begin that provisiondeleted text end new text begin those provisionsnew text end in the
federal deleted text begin actdeleted text end new text begin actsnew text end . The commissioner shall enforce this section.
For the purpose of this section, "health insurer" includes self-insured plans, group health
plans (as defined in section 607(1) of the Employee Retirement Income Security Act of
1974), service benefit plans, managed care organizations, pharmacy benefit managers, or
other parties that are by contract legally responsible to pay a claim for a health-care item
or service for an individual receiving benefits under paragraph (b).
(b) No plan offered by a health insurer issued or renewed to provide coverage to a
Minnesota resident shall contain any provision denying or reducing benefits because services
are rendered to a person who is eligible for or receiving medical benefits pursuant to title
XIX of the Social Security Act (Medicaid) in this or any other state; chapter 256 or 256B;
or services pursuant to section 252.27; 256L.01 to 256L.10; 260B.331, subdivision 2;
260C.331, subdivision 2; or 393.07, subdivision 1 or 2. No health insurer providing benefits
under plans covered by this section shall use eligibility for medical programs named in this
section as an underwriting guideline or reason for nonacceptance of the risk.
(c) If payment for covered expenses has been made under state medical programs for
health care items or services provided to an individual, and a third party has a legal liability
to make payments, the rights of payment and appeal of an adverse coverage decision for
the individual, or in the case of a child their responsible relative or caretaker, will be
subrogated to the state agency. The state agency may assert its rights under this section
within three years of the date the service was rendered. For purposes of this section, "state
agency" includes prepaid health plans under contract with the commissioner according to
sections 256B.69 and 256L.12; children's mental health collaboratives under section 245.493;
demonstration projects for persons with disabilities under section 256B.77; nursing homes
under the alternative payment demonstration project under section 256B.434; and
county-based purchasing entities under section 256B.692.
(d) Notwithstanding any law to the contrary, when a person covered by a plan offered
by a health insurer receives medical benefits according to any statute listed in this section,
payment for covered services or notice of denial for services billed by the provider must be
issued directly to the provider. If a person was receiving medical benefits through the
Department of Human Services at the time a service was provided, the provider must indicate
this benefit coverage on any claim forms submitted by the provider to the health insurer for
those services. If the commissioner of human services notifies the health insurer that the
commissioner has made payments to the provider, payment for benefits or notices of denials
issued by the health insurer must be issued directly to the commissioner. Submission by the
department to the health insurer of the claim on a Department of Human Services claim
form is proper notice and shall be considered proof of payment of the claim to the provider
and supersedes any contract requirements of the health insurer relating to the form of
submission. Liability to the insured for coverage is satisfied to the extent that payments for
those benefits are made by the health insurer to the provider or the commissioner as required
by this section.
(e) When a state agency has acquired the rights of an individual eligible for medical
programs named in this section and has health benefits coverage through a health insurer,
the health insurer shall not impose requirements that are different from requirements
applicable to an agent or assignee of any other individual covered.
(f) A health insurer must process a clean claim made by a state agency for covered
expenses paid under state medical programs within 90 business days of the claim's
submission. A health insurer must process all other claims made by a state agency for
covered expenses paid under a state medical program within the timeline set forth in Code
of Federal Regulations, title 42, section 447.45(d)(4).
(g) A health insurer may request a refund of a claim paid in error to the Department of
Human Services within two years of the date the payment was made to the department. A
request for a refund shall not be honored by the department if the health insurer makes the
request after the time period has lapsed.
Minnesota Statutes 2022, section 62A.673, subdivision 2, is amended to read:
(a) For purposes of this section, the terms defined in this subdivision
have the meanings given.
(b) "Distant site" means a site at which a health care provider is located while providing
health care services or consultations by means of telehealth.
(c) "Health care provider" means a health care professional who is licensed or registered
by the state to perform health care services within the provider's scope of practice and in
accordance with state law. A health care provider includes a mental health professional
under section 245I.04, subdivision 2; a mental health practitioner under section 245I.04,
subdivision 4; a clinical trainee under section 245I.04, subdivision 6; a treatment coordinator
under section 245G.11, subdivision 7; an alcohol and drug counselor under section 245G.11,
subdivision 5; and a recovery peer under section 245G.11, subdivision 8.
(d) "Health carrier" has the meaning given in section 62A.011, subdivision 2.
(e) "Health plan" has the meaning given in section 62A.011, subdivision 3. Health plan
includes dental plans as defined in section 62Q.76, subdivision 3, but does not include dental
plans that provide indemnity-based benefits, regardless of expenses incurred, and are designed
to pay benefits directly to the policy holder.
(f) "Originating site" means a site at which a patient is located at the time health care
services are provided to the patient by means of telehealth. For purposes of store-and-forward
technology, the originating site also means the location at which a health care provider
transfers or transmits information to the distant site.
(g) "Store-and-forward technology" means the asynchronous electronic transfer or
transmission of a patient's medical information or data from an originating site to a distant
site for the purposes of diagnostic and therapeutic assistance in the care of a patient.
(h) "Telehealth" means the delivery of health care services or consultations through the
use of real time two-way interactive audio and visual communications to provide or support
health care delivery and facilitate the assessment, diagnosis, consultation, treatment,
education, and care management of a patient's health care. Telehealth includes the application
of secure video conferencing, store-and-forward technology, and synchronous interactions
between a patient located at an originating site and a health care provider located at a distant
site. Until July 1, deleted text begin 2023deleted text end new text begin 2025new text end , telehealth also includes audio-only communication between
a health care provider and a patient in accordance with subdivision 6, paragraph (b).
Telehealth does not include communication between health care providers that consists
solely of a telephone conversation, email, or facsimile transmission. Telehealth does not
include communication between a health care provider and a patient that consists solely of
an email or facsimile transmission. Telehealth does not include telemonitoring services as
defined in paragraph (i).
(i) "Telemonitoring services" means the remote monitoring of clinical data related to
the enrollee's vital signs or biometric data by a monitoring device or equipment that transmits
the data electronically to a health care provider for analysis. Telemonitoring is intended to
collect an enrollee's health-related data for the purpose of assisting a health care provider
in assessing and monitoring the enrollee's medical condition or status.
Minnesota Statutes 2022, section 256.01, is amended by adding a subdivision to
read:
new text begin
The commissioner shall require hospitals
and primary care providers serving medical assistance and MinnesotaCare enrollees to
develop and implement protocols to provide enrollees, when appropriate, with comprehensive
and scientifically accurate information on the full range of contraceptive options, in a
medically ethical, culturally competent, and noncoercive manner. The information provided
must be designed to assist enrollees in identifying the contraceptive method that best meets
the enrollees' needs and the needs of the enrollees' families. The protocol must specify the
enrollee categories to which this requirement will be applied, the process to be used, and
the information and resources to be provided. Hospitals and providers must make this
protocol available to the commissioner upon request.
new text end
Minnesota Statutes 2022, section 256.0471, subdivision 1, is amended to read:
Any overpayment for assistance granted under
deleted text begin chapter 119B,deleted text end the MFIP program formerly codified under sections 256.031 to 256.0361deleted text begin ,deleted text end new text begin ;new text end
deleted text begin anddeleted text end the AFDC program formerly codified under sections 256.72 to 256.871; new text begin for assistance
granted under new text end chapters deleted text begin 256B for state-funded medical assistance,deleted text end new text begin 119B,new text end 256D, 256I, 256J,
new text begin and new text end 256Kdeleted text begin , and 256Ldeleted text end new text begin ; for assistance granted pursuant to section 256.045, subdivision 10,new text end
for new text begin state-funded medical assistance and new text end state-funded MinnesotaCarenew text begin under chapters 256B
and 256Lnew text end ; and new text begin for assistance granted under new text end the Supplemental Nutrition Assistance Program
(SNAP), except agency error claims, become a judgment by operation of law 90 days after
the notice of overpayment is personally served upon the recipient in a manner that is sufficient
under rule 4.03(a) of the Rules of Civil Procedure for district courts, or by certified mail,
return receipt requested. This judgment shall be entitled to full faith and credit in this and
any other state.
new text begin
This section is effective July 1, 2023.
new text end
Minnesota Statutes 2022, section 256.969, subdivision 2b, is amended to read:
(a) For discharges occurring on or after November
1, 2014, hospital inpatient services for hospitals located in Minnesota shall be paid according
to the following:
(1) critical access hospitals as defined by Medicare shall be paid using a cost-based
methodology;
(2) long-term hospitals as defined by Medicare shall be paid on a per diem methodology
under subdivision 25;
(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation
distinct parts as defined by Medicare shall be paid according to the methodology under
subdivision 12; and
(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
(b) For the period beginning January 1, 2011, through October 31, 2014, rates shall not
be rebased, except that a Minnesota long-term hospital shall be rebased effective January
1, 2011, based on its most recent Medicare cost report ending on or before September 1,
2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on
December 31, 2010. For rate setting periods after November 1, 2014, in which the base
years are updated, a Minnesota long-term hospital's base year shall remain within the same
period as other hospitals.
(c) Effective for discharges occurring on and after November 1, 2014, payment rates
for hospital inpatient services provided by hospitals located in Minnesota or the local trade
area, except for the hospitals paid under the methodologies described in paragraph (a),
clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a
manner similar to Medicare. The base year or years for the rates effective November 1,
2014, shall be calendar year 2012. The rebasing under this paragraph shall be budget neutral,
ensuring that the total aggregate payments under the rebased system are equal to the total
aggregate payments that were made for the same number and types of services in the base
year. Separate budget neutrality calculations shall be determined for payments made to
critical access hospitals and payments made to hospitals paid under the DRG system. Only
the rate increases or decreases under subdivision 3a or 3c that applied to the hospitals being
rebased during the entire base period shall be incorporated into the budget neutrality
calculation.
(d) For discharges occurring on or after November 1, 2014, through the next rebasing
that occurs, the rebased rates under paragraph (c) that apply to hospitals under paragraph
(a), clause (4), shall include adjustments to the projected rates that result in no greater than
a five percent increase or decrease from the base year payments for any hospital. Any
adjustments to the rates made by the commissioner under this paragraph and paragraph (e)
shall maintain budget neutrality as described in paragraph (c).
(e) For discharges occurring on or after November 1, 2014, the commissioner may make
additional adjustments to the rebased rates, and when evaluating whether additional
adjustments should be made, the commissioner shall consider the impact of the rates on the
following:
(1) pediatric services;
(2) behavioral health services;
(3) trauma services as defined by the National Uniform Billing Committee;
(4) transplant services;
(5) obstetric services, newborn services, and behavioral health services provided by
hospitals outside the seven-county metropolitan area;
(6) outlier admissions;
(7) low-volume providers; and
(8) services provided by small rural hospitals that are not critical access hospitals.
(f) Hospital payment rates established under paragraph (c) must incorporate the following:
(1) for hospitals paid under the DRG methodology, the base year payment rate per
admission is standardized by the applicable Medicare wage index and adjusted by the
hospital's disproportionate population adjustment;
(2) for critical access hospitals, payment rates for discharges between November 1, 2014,
and June 30, 2015, shall be set to the same rate of payment that applied for discharges on
October 31, 2014;
(3) the cost and charge data used to establish hospital payment rates must only reflect
inpatient services covered by medical assistance; and
(4) in determining hospital payment rates for discharges occurring on or after the rate
year beginning January 1, 2011, through December 31, 2012, the hospital payment rate per
discharge shall be based on the cost-finding methods and allowable costs of the Medicare
program in effect during the base year or years. In determining hospital payment rates for
discharges in subsequent base years, the per discharge rates shall be based on the cost-finding
methods and allowable costs of the Medicare program in effect during the base year or
years.
(g) The commissioner shall validate the rates effective November 1, 2014, by applying
the rates established under paragraph (c), and any adjustments made to the rates under
paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine whether the
total aggregate payments for the same number and types of services under the rebased rates
are equal to the total aggregate payments made during calendar year 2013.
(h) Effective for discharges occurring on or after July 1, 2017, and every two years
thereafter, payment rates under this section shall be rebased to reflect only those changes
in hospital costs between the existing base year or years and the next base year or years. In
any year that inpatient claims volume falls below the threshold required to ensure a
statistically valid sample of claims, the commissioner may combine claims data from two
consecutive years to serve as the base year. Years in which inpatient claims volume is
reduced or altered due to a pandemic or other public health emergency shall not be used as
a base year or part of a base year if the base year includes more than one year. Changes in
costs between base years shall be measured using the lower of the hospital cost index defined
in subdivision 1, paragraph (a), or the percentage change in the case mix adjusted cost per
claim. The commissioner shall establish the base year for each rebasing period considering
the most recent year or years for which filed Medicare cost reports are availablenew text begin , except
that the base years for the rebasing effective July 1, 2023, are calendar years 2018 and 2019new text end .
The estimated change in the average payment per hospital discharge resulting from a
scheduled rebasing must be calculated and made available to the legislature by January 15
of each year in which rebasing is scheduled to occur, and must include by hospital the
differential in payment rates compared to the individual hospital's costs.
(i) Effective for discharges occurring on or after July 1, 2015, inpatient payment rates
for critical access hospitals located in Minnesota or the local trade area shall be determined
using a new cost-based methodology. The commissioner shall establish within the
methodology tiers of payment designed to promote efficiency and cost-effectiveness.
Payment rates for hospitals under this paragraph shall be set at a level that does not exceed
the total cost for critical access hospitals as reflected in base year cost reports. Until the
next rebasing that occurs, the new methodology shall result in no greater than a five percent
decrease from the base year payments for any hospital, except a hospital that had payments
that were greater than 100 percent of the hospital's costs in the base year shall have their
rate set equal to 100 percent of costs in the base year. The rates paid for discharges on and
after July 1, 2016, covered under this paragraph shall be increased by the inflation factor
in subdivision 1, paragraph (a). The new cost-based rate shall be the final rate and shall not
be settled to actual incurred costs. Hospitals shall be assigned a payment tier based on the
following criteria:
(1) hospitals that had payments at or below 80 percent of their costs in the base year
shall have a rate set that equals 85 percent of their base year costs;
(2) hospitals that had payments that were above 80 percent, up to and including 90
percent of their costs in the base year shall have a rate set that equals 95 percent of their
base year costs; and
(3) hospitals that had payments that were above 90 percent of their costs in the base year
shall have a rate set that equals 100 percent of their base year costs.
(j) The commissioner may refine the payment tiers and criteria for critical access hospitals
to coincide with the next rebasing under paragraph (h). The factors used to develop the new
methodology may include, but are not limited to:
(1) the ratio between the hospital's costs for treating medical assistance patients and the
hospital's charges to the medical assistance program;
(2) the ratio between the hospital's costs for treating medical assistance patients and the
hospital's payments received from the medical assistance program for the care of medical
assistance patients;
(3) the ratio between the hospital's charges to the medical assistance program and the
hospital's payments received from the medical assistance program for the care of medical
assistance patients;
(4) the statewide average increases in the ratios identified in clauses (1), (2), and (3);
(5) the proportion of that hospital's costs that are administrative and trends in
administrative costs; and
(6) geographic location.
new text begin
This section is effective July 1, 2023.
new text end
Minnesota Statutes 2022, section 256.969, subdivision 9, is amended to read:
(a) For admissions
occurring on or after July 1, 1993, the medical assistance disproportionate population
adjustment shall comply with federal law and shall be paid to a hospital, excluding regional
treatment centers and facilities of the federal Indian Health Service, with a medical assistance
inpatient utilization rate in excess of the arithmetic mean. The adjustment must be determined
as follows:
(1) for a hospital with a medical assistance inpatient utilization rate above the arithmetic
mean for all hospitals excluding regional treatment centers and facilities of the federal Indian
Health Service but less than or equal to one standard deviation above the mean, the
adjustment must be determined by multiplying the total of the operating and property
payment rates by the difference between the hospital's actual medical assistance inpatient
utilization rate and the arithmetic mean for all hospitals excluding regional treatment centers
and facilities of the federal Indian Health Service; and
(2) for a hospital with a medical assistance inpatient utilization rate above one standard
deviation above the mean, the adjustment must be determined by multiplying the adjustment
that would be determined under clause (1) for that hospital by 1.1. The commissioner shall
report annually on the number of hospitals likely to receive the adjustment authorized by
this paragraph. The commissioner shall specifically report on the adjustments received by
public hospitals and public hospital corporations located in cities of the first class.
(b) Certified public expenditures made by Hennepin County Medical Center shall be
considered Medicaid disproportionate share hospital payments. Hennepin County and
Hennepin County Medical Center shall report by June 15, 2007, on payments made beginning
July 1, 2005, or another date specified by the commissioner, that may qualify for
reimbursement under federal law. Based on these reports, the commissioner shall apply for
federal matching funds.
(c) Upon federal approval of the related state plan amendment, paragraph (b) is effective
retroactively from July 1, 2005, or the earliest effective date approved by the Centers for
Medicare and Medicaid Services.
(d) Effective July 1, 2015, disproportionate share hospital (DSH) payments shall be paid
in accordance with a new methodology using 2012 as the base year. Annual payments made
under this paragraph shall equal the total amount of payments made for 2012. A licensed
children's hospital shall receive only a single DSH factor for children's hospitals. Other
DSH factors may be combined to arrive at a single factor for each hospital that is eligible
for DSH payments. The new methodology shall make payments only to hospitals located
in Minnesota and include the following factors:
(1) a licensed children's hospital with at least 1,000 fee-for-service discharges in the
base year shall receive a factor of 0.868. A licensed children's hospital with less than 1,000
fee-for-service discharges in the base year shall receive a factor of 0.7880;
(2) a hospital that has in effect for the initial rate year a contract with the commissioner
to provide extended psychiatric inpatient services under section 256.9693 shall receive a
factor of 0.0160;
(3) a hospital that has received medical assistance payment for at least 20 transplant
services in the base year shall receive a factor of 0.0435;
(4) a hospital that has a medical assistance utilization rate in the base year between 20
percent up to one standard deviation above the statewide mean utilization rate shall receive
a factor of 0.0468;
(5) a hospital that has a medical assistance utilization rate in the base year that is at least
one standard deviation above the statewide mean utilization rate but is less than two and
one-half standard deviations above the mean shall receive a factor of 0.2300; and
(6) a hospital that is a level one trauma center and that has a medical assistance utilization
rate in the base year that is at least two and deleted text begin one-halfdeleted text end new text begin one-quarternew text end standard deviations above
the statewide mean utilization rate shall receive a factor of 0.3711.
(e) For the purposes of determining eligibility for the disproportionate share hospital
factors in paragraph (d), clauses (1) to (6), the medical assistance utilization rate and
discharge thresholds shall be measured using only one year when a two-year base period
is used.
(f) Any payments or portion of payments made to a hospital under this subdivision that
are subsequently returned to the commissioner because the payments are found to exceed
the hospital-specific DSH limit for that hospital shall be redistributed, proportionate to the
number of fee-for-service discharges, to other DSH-eligible non-children's hospitals that
have a medical assistance utilization rate that is at least one standard deviation above the
mean.
(g) An additional payment adjustment shall be established by the commissioner under
this subdivision for a hospital that provides high levels of administering high-cost drugs to
enrollees in fee-for-service medical assistance. The commissioner shall consider factors
including fee-for-service medical assistance utilization rates and payments made for drugs
purchased through the 340B drug purchasing program and administered to fee-for-service
enrollees. If any part of this adjustment exceeds a hospital's hospital-specific disproportionate
share hospital limit, the commissioner shall make a payment to the hospital that equals the
nonfederal share of the amount that exceeds the limit. The total nonfederal share of the
amount of the payment adjustment under this paragraph shall not exceed $1,500,000.
Minnesota Statutes 2022, section 256.969, subdivision 25, is amended to read:
(a) Long-term hospitals shall be paid on a per diem
basis.
(b) For admissions occurring on or after April 1, 1995, a long-term hospital as designated
by Medicare that does not have admissions in the base year shall have inpatient rates
established at the average of other hospitals with the same designation. For subsequent
rate-setting periods in which base years are updated, the hospital's base year shall be the
first Medicare cost report filed with the long-term hospital designation and shall remain in
effect until it falls within the same period as other hospitals.
new text begin
(c) For admissions occurring on or after July 1, 2023, long-term hospitals must be paid
the higher of a per diem amount computed using the methodology described in subdivision
2b, paragraph (i), or the per diem rate as of July 1, 2021.
new text end
new text begin
This section is effective July 1, 2023.
new text end
Minnesota Statutes 2022, section 256.969, is amended by adding a subdivision to
read:
new text begin
(a) The commissioner must provide
separate reimbursement to hospitals for long-acting reversible contraceptives provided
immediately postpartum in the inpatient hospital setting. This payment must be in addition
to the diagnostic-related group reimbursement for labor and delivery and shall be made
consistent with section 256B.0625, subdivision 13e, paragraph (e).
new text end
new text begin
(b) The commissioner must require managed care and county-based purchasing plans
to comply with this subdivision when providing services to medical assistance enrollees.
new text end
new text begin
This section is effective January 1, 2024.
new text end
Minnesota Statutes 2022, section 256B.04, subdivision 14, is amended to read:
(a) When determined to be effective, economical, and
feasible, the commissioner may utilize volume purchase through competitive bidding and
negotiation under the provisions of chapter 16C, to provide items under the medical assistance
program including but not limited to the following:
(1) eyeglasses;
(2) oxygen. The commissioner shall provide for oxygen needed in an emergency situation
on a short-term basis, until the vendor can obtain the necessary supply from the contract
dealer;
(3) hearing aids and supplies;
(4) durable medical equipment, including but not limited to:
(i) hospital beds;
(ii) commodes;
(iii) glide-about chairs;
(iv) patient lift apparatus;
(v) wheelchairs and accessories;
(vi) oxygen administration equipment;
(vii) respiratory therapy equipment;
(viii) electronic diagnostic, therapeutic and life-support systems; and
(ix) allergen-reducing products as described in section 256B.0625, subdivision 67,
paragraph (c) or (d);
(5) nonemergency medical transportation level of need determinations, disbursement of
public transportation passes and tokens, and volunteer and recipient mileage and parking
reimbursements; deleted text begin and
deleted text end
(6) drugsdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(7) quitline services as described in section 256B.0625, subdivision 68, paragraph (c).
new text end
(b) Rate changes and recipient cost-sharing under this chapter and chapter 256L do not
affect contract payments under this subdivision unless specifically identified.
(c) The commissioner may not utilize volume purchase through competitive bidding
and negotiation under the provisions of chapter 16C for special transportation services or
incontinence products and related supplies.
new text begin
This section is effective January 1, 2024.
new text end
Minnesota Statutes 2022, section 256B.055, subdivision 17, is amended to read:
new text begin (a) new text end Medical assistance may
be paid for a person under 26 years of age who was in foster care under the commissioner's
responsibility on the date of attaining 18 years of age, and who was enrolled in medical
assistance under the state plan or a waiver of the plan while in foster care, in accordance
with section 2004 of the Affordable Care Act.
new text begin
(b) Beginning July 1, 2023, medical assistance may be paid for a person under 26 years
of age who was in foster care on the date of attaining 18 years of age and enrolled in another
state's Medicaid program while in foster care in accordance with the Substance Use-Disorder
Prevention that Promotes Opioid Recovery and Treatment for Patients and Communities
Act of 2018. Public Law 115-271, section 1002.
new text end
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 256B.0625, subdivision 3a, is amended to read:
deleted text begin
Sex reassignment
surgery is not covered.
deleted text end
new text begin
Medical assistance covers gender-affirming services.
new text end
Minnesota Statutes 2022, section 256B.0625, subdivision 9, is amended to read:
(a) Medical assistance covers new text begin medically necessary new text end dental
services.
deleted text begin
(b) Medical assistance dental coverage for nonpregnant adults is limited to the following
services:
deleted text end
deleted text begin
(1) comprehensive exams, limited to once every five years;
deleted text end
deleted text begin
(2) periodic exams, limited to one per year;
deleted text end
deleted text begin
(3) limited exams;
deleted text end
deleted text begin
(4) bitewing x-rays, limited to one per year;
deleted text end
deleted text begin
(5) periapical x-rays;
deleted text end
deleted text begin
(6) panoramic x-rays, limited to one every five years except (1) when medically necessary
for the diagnosis and follow-up of oral and maxillofacial pathology and trauma or (2) once
every two years for patients who cannot cooperate for intraoral film due to a developmental
disability or medical condition that does not allow for intraoral film placement;
deleted text end
deleted text begin
(7) prophylaxis, limited to one per year;
deleted text end
deleted text begin
(8) application of fluoride varnish, limited to one per year;
deleted text end
deleted text begin
(9) posterior fillings, all at the amalgam rate;
deleted text end
deleted text begin
(10) anterior fillings;
deleted text end
deleted text begin
(11) endodontics, limited to root canals on the anterior and premolars only;
deleted text end
deleted text begin
(12) removable prostheses, each dental arch limited to one every six years;
deleted text end
deleted text begin
(13) oral surgery, limited to extractions, biopsies, and incision and drainage of abscesses;
deleted text end
deleted text begin
(14) palliative treatment and sedative fillings for relief of pain;
deleted text end
deleted text begin
(15) full-mouth debridement, limited to one every five years; and
deleted text end
deleted text begin
(16) nonsurgical treatment for periodontal disease, including scaling and root planing
once every two years for each quadrant, and routine periodontal maintenance procedures.
deleted text end
deleted text begin
(c) In addition to the services specified in paragraph (b), medical assistance covers the
following services for adults, if provided in an outpatient hospital setting or freestanding
ambulatory surgical center as part of outpatient dental surgery:
deleted text end
deleted text begin
(1) periodontics, limited to periodontal scaling and root planing once every two years;
deleted text end
deleted text begin
(2) general anesthesia; and
deleted text end
deleted text begin
(3) full-mouth survey once every five years.
deleted text end
deleted text begin (d) Medical assistance covers medically necessary dental services for children and
pregnant women.deleted text end The following guidelines apply:
(1) posterior fillings are paid at the amalgam rate;
(2) application of sealants are covered once every five years per permanent molar deleted text begin for
children onlydeleted text end ;
(3) application of fluoride varnish is covered once every six months; and
(4) orthodontia is eligible for coverage for children only.
deleted text begin (e)deleted text end new text begin (b) new text end In addition to the services specified in deleted text begin paragraphs (b) and (c)deleted text end new text begin paragraph (a)new text end ,
medical assistance covers the following services deleted text begin for adultsdeleted text end :
(1) house calls or extended care facility calls for on-site delivery of covered services;
(2) behavioral management when additional staff time is required to accommodate
behavioral challenges and sedation is not used;
(3) oral or IV sedation, if the covered dental service cannot be performed safely without
it or would otherwise require the service to be performed under general anesthesia in a
hospital or surgical center; and
(4) prophylaxis, in accordance with an appropriate individualized treatment plan, but
no more than four times per year.
deleted text begin (f)deleted text end new text begin (c) new text end The commissioner shall not require prior authorization for the services included
in paragraph deleted text begin (e)deleted text end new text begin (b)new text end , clauses (1) to (3), and shall prohibit managed care and county-based
purchasing plans from requiring prior authorization for the services included in paragraph
deleted text begin (e)deleted text end new text begin (b)new text end , clauses (1) to (3), when provided under sections 256B.69, 256B.692, and 256L.12.
new text begin
This section is effective January 1, 2024, or upon federal approval,
whichever is later.
new text end
Minnesota Statutes 2022, section 256B.0625, subdivision 13c, is amended to
read:
The commissioner, after receiving recommendations
from professional medical associations and professional pharmacy associations, and consumer
groups shall designate a Formulary Committee to carry out duties as described in subdivisions
13 to 13g. The Formulary Committee shall be comprised of deleted text begin fourdeleted text end new text begin at least fivenew text end licensed
physicians actively engaged in the practice of medicine in Minnesota, one of whom deleted text begin must
be actively engaged in the treatment of persons with mental illnessdeleted text end new text begin is an actively practicing
psychiatrist, one of whom specializes in the diagnosis and treatment of rare diseases, one
of whom specializes in pediatrics, and one of whom actively treats persons with disabilitiesnew text end ;
at least three licensed pharmacists actively engaged in the practice of pharmacy in Minnesotanew text begin ,
one of whom practices outside the metropolitan counties listed in section 473.121, subdivision
4, one of whom practices in the metropolitan counties listed in section 473.121, subdivision
4, and one of whom is a practicing hospital pharmacistnew text end ; deleted text begin and onedeleted text end new text begin at least fournew text end consumer
deleted text begin representativedeleted text end new text begin representatives, all of whom must have a personal or professional connection
to medical assistancenew text end ; new text begin and one representative designated by the Minnesota Rare Disease
Advisory Council established under section 256.4835; new text end the remainder to be made up of health
care professionals who are licensed in their field and have recognized knowledge in the
clinically appropriate prescribing, dispensing, and monitoring of covered outpatient drugs.
Members of the Formulary Committee shall not be employed by the Department of Human
Services, but the committee shall be staffed by an employee of the department who shall
serve as an ex officio, nonvoting member of the committee. The department's medical
director shall also serve as an ex officio, nonvoting member for the committee. Committee
members shall serve three-year terms and may be reappointed by the commissioner. The
Formulary Committee shall meet at least deleted text begin twicedeleted text end new text begin oncenew text end per year. The commissioner may require
more frequent Formulary Committee meetings as needed. An honorarium of $100 per
meeting and reimbursement for mileage shall be paid to each committee member in
attendance. new text begin Notwithstanding section 15.059, subdivision 6, new text end the Formulary Committee deleted text begin expires
June 30, 2023deleted text end new text begin does not expirenew text end .
Minnesota Statutes 2022, section 256B.0625, subdivision 13e, is amended to
read:
(a) The basis for determining the amount of payment shall
be the lower of the ingredient costs of the drugs plus the professional dispensing fee; or the
usual and customary price charged to the public. The usual and customary price means the
lowest price charged by the provider to a patient who pays for the prescription by cash,
check, or charge account and includes prices the pharmacy charges to a patient enrolled in
a prescription savings club or prescription discount club administered by the pharmacy or
pharmacy chain. The amount of payment basis must be reduced to reflect all discount
amounts applied to the charge by any third-party provider/insurer agreement or contract for
submitted charges to medical assistance programs. The net submitted charge may not be
greater than the patient liability for the service. The professional dispensing fee shall be
$10.77 for prescriptions filled with legend drugs meeting the definition of "covered outpatient
drugs" according to United States Code, title 42, section 1396r-8(k)(2). The dispensing fee
for intravenous solutions that must be compounded by the pharmacist shall be $10.77 per
claim. The professional dispensing fee for prescriptions filled with over-the-counter drugs
meeting the definition of covered outpatient drugs shall be $10.77 for dispensed quantities
equal to or greater than the number of units contained in the manufacturer's original package.
The professional dispensing fee shall be prorated based on the percentage of the package
dispensed when the pharmacy dispenses a quantity less than the number of units contained
in the manufacturer's original package. The pharmacy dispensing fee for prescribed
over-the-counter drugs not meeting the definition of covered outpatient drugs shall be $3.65
for quantities equal to or greater than the number of units contained in the manufacturer's
original package and shall be prorated based on the percentage of the package dispensed
when the pharmacy dispenses a quantity less than the number of units contained in the
manufacturer's original package. The National Average Drug Acquisition Cost (NADAC)
shall be used to determine the ingredient cost of a drug. For drugs for which a NADAC is
not reported, the commissioner shall estimate the ingredient cost at the wholesale acquisition
cost minus two percent. The ingredient cost of a drug for a provider participating in the
federal 340B Drug Pricing Program shall be either the 340B Drug Pricing Program ceiling
price established by the Health Resources and Services Administration or NADAC,
whichever is lower. Wholesale acquisition cost is defined as the manufacturer's list price
for a drug or biological to wholesalers or direct purchasers in the United States, not including
prompt pay or other discounts, rebates, or reductions in price, for the most recent month for
which information is available, as reported in wholesale price guides or other publications
of drug or biological pricing data. The maximum allowable cost of a multisource drug may
be set by the commissioner and it shall be comparable to the actual acquisition cost of the
drug product and no higher than the NADAC of the generic product. Establishment of the
amount of payment for drugs shall not be subject to the requirements of the Administrative
Procedure Act.
(b) Pharmacies dispensing prescriptions to residents of long-term care facilities using
an automated drug distribution system meeting the requirements of section 151.58, or a
packaging system meeting the packaging standards set forth in Minnesota Rules, part
6800.2700, that govern the return of unused drugs to the pharmacy for reuse, may employ
retrospective billing for prescription drugs dispensed to long-term care facility residents. A
retrospectively billing pharmacy must submit a claim only for the quantity of medication
used by the enrolled recipient during the defined billing period. A retrospectively billing
pharmacy must use a billing period not less than one calendar month or 30 days.
(c) A pharmacy provider using packaging that meets the standards set forth in Minnesota
Rules, part 6800.2700, is required to credit the department for the actual acquisition cost
of all unused drugs that are eligible for reuse, unless the pharmacy is using retrospective
billing. The commissioner may permit the drug clozapine to be dispensed in a quantity that
is less than a 30-day supply.
(d) If a pharmacy dispenses a multisource drug, the ingredient cost shall be the NADAC
of the generic product or the maximum allowable cost established by the commissioner
unless prior authorization for the brand name product has been granted according to the
criteria established by the Drug Formulary Committee as required by subdivision 13f,
paragraph (a), and the prescriber has indicated "dispense as written" on the prescription in
a manner consistent with section 151.21, subdivision 2.
(e) The basis for determining the amount of payment for drugs administered in an
outpatient setting shall be the lower of the usual and customary cost submitted by the
provider, 106 percent of the average sales price as determined by the United States
Department of Health and Human Services pursuant to title XVIII, section 1847a of the
federal Social Security Act, the specialty pharmacy rate, or the maximum allowable cost
set by the commissioner. If average sales price is unavailable, the amount of payment must
be lower of the usual and customary cost submitted by the provider, the wholesale acquisition
cost, the specialty pharmacy rate, or the maximum allowable cost set by the commissioner.
The commissioner shall discount the payment rate for drugs obtained through the federal
340B Drug Pricing Program by 28.6 percent. The payment for drugs administered in an
outpatient setting shall be made to the administering facility or practitioner. A retail or
specialty pharmacy dispensing a drug for administration in an outpatient setting is not
eligible for direct reimbursement.
(f) The commissioner may establish maximum allowable cost rates for specialty pharmacy
products that are lower than the ingredient cost formulas specified in paragraph (a). The
commissioner may require individuals enrolled in the health care programs administered
by the department to obtain specialty pharmacy products from providers with whom the
commissioner has negotiated lower reimbursement rates. Specialty pharmacy products are
defined as those used by a small number of recipients or recipients with complex and chronic
diseases that require expensive and challenging drug regimens. Examples of these conditions
include, but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis C,
growth hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms of
cancer. Specialty pharmaceutical products include injectable and infusion therapies,
biotechnology drugs, antihemophilic factor products, high-cost therapies, and therapies that
require complex care. The commissioner shall consult with the Formulary Committee to
develop a list of specialty pharmacy products subject to maximum allowable cost
reimbursement. In consulting with the Formulary Committee in developing this list, the
commissioner shall take into consideration the population served by specialty pharmacy
products, the current delivery system and standard of care in the state, and access to care
issues. The commissioner shall have the discretion to adjust the maximum allowable cost
to prevent access to care issues.
(g) Home infusion therapy services provided by home infusion therapy pharmacies must
be paid at rates according to subdivision 8d.
(h) The commissioner shall contract with a vendor to conduct a cost of dispensing survey
for all pharmacies that are physically located in the state of Minnesota that dispense outpatient
drugs under medical assistance. The commissioner shall ensure that the vendor has prior
experience in conducting cost of dispensing surveys. Each pharmacy enrolled with the
department to dispense outpatient prescription drugs to fee-for-service members must
respond to the cost of dispensing survey. The commissioner may sanction a pharmacy under
section 256B.064 for failure to respond. The commissioner shall require the vendor to
measure a single statewide cost of dispensing for specialty prescription drugs and a single
statewide cost of dispensing for nonspecialty prescription drugs for all responding pharmacies
to measure the mean, mean weighted by total prescription volume, mean weighted by
medical assistance prescription volume, median, median weighted by total prescription
volume, and median weighted by total medical assistance prescription volume. The
commissioner shall post a copy of the final cost of dispensing survey report on the
department's website. The initial survey must be completed no later than January 1, 2021,
and repeated every three years. The commissioner shall provide a summary of the results
of each cost of dispensing survey and provide recommendations for any changes to the
dispensing fee to the chairs and ranking members of the legislative committees with
jurisdiction over medical assistance pharmacy reimbursement.new text begin Notwithstanding section
256.01, subdivision 42, this paragraph does not expire.
new text end
(i) The commissioner shall increase the ingredient cost reimbursement calculated in
paragraphs (a) and (f) by 1.8 percent for prescription and nonprescription drugs subject to
the wholesale drug distributor tax under section 295.52.
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision
to read:
new text begin
(a) The commissioner may enter
into a value-based purchasing arrangement for the medical assistance or MinnesotaCare
program by written arrangement with a drug manufacturer based on agreed-upon metrics.
The commissioner may enter into a contract with a vendor for the purpose of participating
in a value-based purchasing arrangement. A value-based purchasing arrangement may
include a rebate, a discount, a price reduction, risk sharing, a reimbursement, a guarantee,
shared savings payments, withholds, a bonus, or any other thing of value. A value-based
purchasing arrangement must provide the same amount or more of a value or discount in
the aggregate as would claiming the mandatory federal drug rebate under the Federal Social
Security Act, section 1927.
new text end
new text begin
(b) Nothing in this section shall be interpreted as requiring a drug manufacturer or the
commissioner to enter into an arrangement as described in paragraph (a).
new text end
new text begin
(c) Nothing in this section shall be interpreted as altering or modifying medical assistance
coverage requirements under the federal Social Security Act, section 1927.
new text end
new text begin
(d) If the commissioner determines that a state plan amendment is necessary for
implementation before implementing a value-based purchasing arrangement, the
commissioner shall request the amendment and may delay implementing this provision
until the amendment is approved.
new text end
new text begin
This section is effective July 1, 2023.
new text end
Minnesota Statutes 2022, section 256B.0625, subdivision 16, is amended to read:
Medical assistance covers abortion servicesdeleted text begin , but only if
one of the following conditions is met:deleted text end new text begin determined to be medically necessary by the treating
provider and delivered in accordance with all applicable Minnesota laws.
new text end
deleted text begin
(a) The abortion is a medical necessity. "Medical necessity" means (1) the signed written
statement of two physicians indicating the abortion is medically necessary to prevent the
death of the mother, and (2) the patient has given her consent to the abortion in writing
unless the patient is physically or legally incapable of providing informed consent to the
procedure, in which case consent will be given as otherwise provided by law;
deleted text end
deleted text begin
(b) The pregnancy is the result of criminal sexual conduct as defined in section 609.342,
subdivision 1, clauses (a), (b), (c)(i) and (ii), and (e), and subdivision 1a, clauses (a), (b),
(c)(i) and (ii), and (d), and the incident is reported within 48 hours after the incident occurs
to a valid law enforcement agency for investigation, unless the victim is physically unable
to report the criminal sexual conduct, in which case the report shall be made within 48 hours
after the victim becomes physically able to report the criminal sexual conduct; or
deleted text end
deleted text begin
(c) The pregnancy is the result of incest, but only if the incident and relative are reported
to a valid law enforcement agency for investigation prior to the abortion.
deleted text end
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 256B.0625, subdivision 22, is amended to read:
Medical assistance covers hospice care services under Public
Law 99-272, section 9505, to the extent authorized by rule, except that a recipient age 21
or under who elects to receive hospice services does not waive coverage for services that
are related to the treatment of the condition for which a diagnosis of terminal illness has
been made.new text begin Hospice respite and end-of-life care under subdivision 22a are not hospice care
services under this subdivision.
new text end
new text begin
This section is effective January 1, 2024.
new text end
Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision
to read:
new text begin
(a) Medical assistance covers hospice respite and end-of-life care if the care is
for recipients age 21 or under who elect to receive hospice care delivered in a facility that
is licensed under sections 144A.75 to 144A.755 and that is a residential hospice facility
under section 144A.75, subdivision 13, paragraph (a). Hospice care services under
subdivision 22 are not hospice respite or end-of-life care under this subdivision.
new text end
new text begin
(b) The payment rates for coverage under this subdivision must be 100 percent of the
Medicare rate for continuous home care hospice services as published in the Centers for
Medicare and Medicaid Services annual final rule updating payments and policies for hospice
care. The commissioner must seek to obtain federal financial participation for payment for
hospice respite and end-of-life care under this subdivision. Payment must be made using
state-only money, if federal financial participation is not obtained. Payment for hospice
respite and end-of-life care must be paid to the residential hospice facility and are not
included in any limit or cap amount applicable to hospice services payments to the elected
hospice services provider.
new text end
new text begin
(c) Certification of the residential hospice facility by the federal Medicare program must
not be a requirement of medical assistance payment for hospice respite and end-of-life care
under this subdivision.
new text end
new text begin
This section is effective January 1, 2024.
new text end
Minnesota Statutes 2022, section 256B.0625, subdivision 28b, is amended to
read:
Medical assistance covers doula services provided by a
certified doula as defined in section 148.995, subdivision 2, of the mother's choice. For
purposes of this section, "doula services" means childbirth education and support services,
including emotional and physical support provided during pregnancy, labor, birth, and
postpartum.new text begin The commissioner shall enroll doula agencies and individual treating doulas
to provide direct reimbursement.
new text end
new text begin
This section is effective January 1, 2024, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when federal approval is obtained.
new text end
Minnesota Statutes 2022, section 256B.0625, subdivision 30, is amended to read:
(a) Medical assistance covers rural health clinic services,
federally qualified health center services, nonprofit community health clinic services, and
public health clinic services. Rural health clinic services and federally qualified health center
services mean services defined in United States Code, title 42, section 1396d(a)(2)(B) and
(C). Payment for rural health clinic and federally qualified health center services shall be
made according to applicable federal law and regulation.
(b) A federally qualified health center (FQHC) that is beginning initial operation shall
submit an estimate of budgeted costs and visits for the initial reporting period in the form
and detail required by the commissioner. An FQHC that is already in operation shall submit
an initial report using actual costs and visits for the initial reporting period. Within 90 days
of the end of its reporting period, an FQHC shall submit, in the form and detail required by
the commissioner, a report of its operations, including allowable costs actually incurred for
the period and the actual number of visits for services furnished during the period, and other
information required by the commissioner. FQHCs that file Medicare cost reports shall
provide the commissioner with a copy of the most recent Medicare cost report filed with
the Medicare program intermediary for the reporting year which support the costs claimed
on their cost report to the state.
(c) In order to continue cost-based payment under the medical assistance program
according to paragraphs (a) and (b), an FQHC or rural health clinic must apply for designation
as an essential community provider within six months of final adoption of rules by the
Department of Health according to section 62Q.19, subdivision 7. For those FQHCs and
rural health clinics that have applied for essential community provider status within the
six-month time prescribed, medical assistance payments will continue to be made according
to paragraphs (a) and (b) for the first three years after application. For FQHCs and rural
health clinics that either do not apply within the time specified above or who have had
essential community provider status for three years, medical assistance payments for health
services provided by these entities shall be according to the same rates and conditions
applicable to the same service provided by health care providers that are not FQHCs or rural
health clinics.
(d) Effective July 1, 1999, the provisions of paragraph (c) requiring an FQHC or a rural
health clinic to make application for an essential community provider designation in order
to have cost-based payments made according to paragraphs (a) and (b) no longer apply.
(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) shall
be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
(f) Effective January 1, 2001, through December 31, 2020, each FQHC and rural health
clinic may elect to be paid either under the prospective payment system established in United
States Code, title 42, section 1396a(aa), or under an alternative payment methodology
consistent with the requirements of United States Code, title 42, section 1396a(aa), and
approved by the Centers for Medicare and Medicaid Services. The alternative payment
methodology shall be 100 percent of cost as determined according to Medicare cost
principles.
(g) Effective for services provided on or after January 1, 2021, all claims for payment
of clinic services provided by FQHCs and rural health clinics shall be paid by the
commissioner, according to an annual election by the FQHC or rural health clinic, under
the current prospective payment system described in paragraph (f) or the alternative payment
methodology described in paragraph (l).
(h) For purposes of this section, "nonprofit community clinic" is a clinic that:
(1) has nonprofit status as specified in chapter 317A;
(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
(3) is established to provide health services to low-income population groups, uninsured,
high-risk and special needs populations, underserved and other special needs populations;
(4) employs professional staff at least one-half of which are familiar with the cultural
background of their clients;
(5) charges for services on a sliding fee scale designed to provide assistance to
low-income clients based on current poverty income guidelines and family size; and
(6) does not restrict access or services because of a client's financial limitations or public
assistance status and provides no-cost care as needed.
(i) Effective for services provided on or after January 1, 2015, all claims for payment
of clinic services provided by FQHCs and rural health clinics shall be paid by the
commissioner. the commissioner shall determine the most feasible method for paying claims
from the following options:
(1) FQHCs and rural health clinics submit claims directly to the commissioner for
payment, and the commissioner provides claims information for recipients enrolled in a
managed care or county-based purchasing plan to the plan, on a regular basis; or
(2) FQHCs and rural health clinics submit claims for recipients enrolled in a managed
care or county-based purchasing plan to the plan, and those claims are submitted by the
plan to the commissioner for payment to the clinic.
(j) For clinic services provided prior to January 1, 2015, the commissioner shall calculate
and pay monthly the proposed managed care supplemental payments to clinics, and clinics
shall conduct a timely review of the payment calculation data in order to finalize all
supplemental payments in accordance with federal law. Any issues arising from a clinic's
review must be reported to the commissioner by January 1, 2017. Upon final agreement
between the commissioner and a clinic on issues identified under this subdivision, and in
accordance with United States Code, title 42, section 1396a(bb), no supplemental payments
for managed care plan or county-based purchasing plan claims for services provided prior
to January 1, 2015, shall be made after June 30, 2017. If the commissioner and clinics are
unable to resolve issues under this subdivision, the parties shall submit the dispute to the
arbitration process under section 14.57.
(k) The commissioner shall seek a federal waiver, authorized under section 1115 of the
Social Security Act, to obtain federal financial participation at the 100 percent federal
matching percentage available to facilities of the Indian Health Service or tribal organization
in accordance with section 1905(b) of the Social Security Act for expenditures made to
organizations dually certified under Title V of the Indian Health Care Improvement Act,
Public Law 94-437, and as a federally qualified health center under paragraph (a) that
provides services to American Indian and Alaskan Native individuals eligible for services
under this subdivision.
(l) All claims for payment of clinic services provided by FQHCs and rural health clinics,
that have elected to be paid under this paragraph, shall be paid by the commissioner according
to the following requirements:
(1) the commissioner shall establish a single medical and single dental organization
encounter rate for each FQHC and rural health clinic when applicable;
(2) each FQHC and rural health clinic is eligible for same day reimbursement of one
medical and one dental organization encounter rate if eligible medical and dental visits are
provided on the same day;
(3) the commissioner shall reimburse FQHCs and rural health clinics, in accordance
with current applicable Medicare cost principles, their allowable costs, including direct
patient care costs and patient-related support services. Nonallowable costs include, but are
not limited to:
(i) general social services and administrative costs;
(ii) retail pharmacy;
(iii) patient incentives, food, housing assistance, and utility assistance;
(iv) external lab and x-ray;
(v) navigation services;
(vi) health care taxes;
(vii) advertising, public relations, and marketing;
(viii) office entertainment costs, food, alcohol, and gifts;
(ix) contributions and donations;
(x) bad debts or losses on awards or contracts;
(xi) fines, penalties, damages, or other settlements;
(xii) fundraising, investment management, and associated administrative costs;
(xiii) research and associated administrative costs;
(xiv) nonpaid workers;
(xv) lobbying;
(xvi) scholarships and student aid; and
(xvii) nonmedical assistance covered services;
(4) the commissioner shall review the list of nonallowable costs in the years between
the rebasing process established in clause (5), in consultation with the Minnesota Association
of Community Health Centers, FQHCs, and rural health clinics. The commissioner shall
publish the list and any updates in the Minnesota health care programs provider manual;
(5) the initial applicable base year organization encounter rates for FQHCs and rural
health clinics shall be computed for services delivered on or after January 1, 2021, and:
(i) must be determined using each FQHC's and rural health clinic's Medicare cost reports
from 2017 and 2018;
(ii) must be according to current applicable Medicare cost principles as applicable to
FQHCs and rural health clinics without the application of productivity screens and upper
payment limits or the Medicare prospective payment system FQHC aggregate mean upper
payment limit;
(iii) must be subsequently rebased every two years thereafter using the Medicare cost
reports that are three and four years prior to the rebasing year. Years in which organizational
cost or claims volume is reduced or altered due to a pandemic, disease, or other public health
emergency shall not be used as part of a base year when the base year includes more than
one year. The commissioner may use the Medicare cost reports of a year unaffected by a
pandemic, disease, or other public health emergency, or previous two consecutive years,
inflated to the base year as established under item (iv);
(iv) must be inflated to the base year using the inflation factor described in clause (6);
and
(v) the commissioner must provide for a 60-day appeals process under section 14.57;
(6) the commissioner shall annually inflate the applicable organization encounter rates
for FQHCs and rural health clinics from the base year payment rate to the effective date by
using the CMS FQHC Market Basket inflator established under United States Code, title
42, section 1395m(o), less productivity;
(7) FQHCs and rural health clinics that have elected the alternative payment methodology
under this paragraph shall submit all necessary documentation required by the commissioner
to compute the rebased organization encounter rates no later than six months following the
date the applicable Medicare cost reports are due to the Centers for Medicare and Medicaid
Services;
(8) the commissioner shall reimburse FQHCs and rural health clinics an additional
amount relative to their medical and dental organization encounter rates that is attributable
to the tax required to be paid according to section 295.52, if applicable;
(9) FQHCs and rural health clinics may submit change of scope requests to the
commissioner if the change of scope would result in an increase or decrease of 2.5 percent
or higher in the medical or dental organization encounter rate currently received by the
FQHC or rural health clinic;
(10) for FQHCs and rural health clinics seeking a change in scope with the commissioner
under clause (9) that requires the approval of the scope change by the federal Health
Resources Services Administration:
(i) FQHCs and rural health clinics shall submit the change of scope request, including
the start date of services, to the commissioner within seven business days of submission of
the scope change to the federal Health Resources Services Administration;
(ii) the commissioner shall establish the effective date of the payment change as the
federal Health Resources Services Administration date of approval of the FQHC's or rural
health clinic's scope change request, or the effective start date of services, whichever is
later; and
(iii) within 45 days of one year after the effective date established in item (ii), the
commissioner shall conduct a retroactive review to determine if the actual costs established
under clause (3) or encounters result in an increase or decrease of 2.5 percent or higher in
the medical or dental organization encounter rate, and if this is the case, the commissioner
shall revise the rate accordingly and shall adjust payments retrospectively to the effective
date established in item (ii);
(11) for change of scope requests that do not require federal Health Resources Services
Administration approval, the FQHC and rural health clinic shall submit the request to the
commissioner before implementing the change, and the effective date of the change is the
date the commissioner received the FQHC's or rural health clinic's request, or the effective
start date of the service, whichever is later. The commissioner shall provide a response to
the FQHC's or rural health clinic's request within 45 days of submission and provide a final
approval within 120 days of submission. This timeline may be waived at the mutual
agreement of the commissioner and the FQHC or rural health clinic if more information is
needed to evaluate the request;
(12) the commissioner, when establishing organization encounter rates for new FQHCs
and rural health clinics, shall consider the patient caseload of existing FQHCs and rural
health clinics in a 60-mile radius for organizations established outside of the seven-county
metropolitan area, and in a 30-mile radius for organizations in the seven-county metropolitan
area. If this information is not available, the commissioner may use Medicare cost reports
or audited financial statements to establish base rates;
(13) the commissioner shall establish a quality measures workgroup that includes
representatives from the Minnesota Association of Community Health Centers, FQHCs,
and rural health clinics, to evaluate clinical and nonclinical measures; and
(14) the commissioner shall not disallow or reduce costs that are related to an FQHC's
or rural health clinic's participation in health care educational programs to the extent that
the costs are not accounted for in the alternative payment methodology encounter rate
established in this paragraph.
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(m) Effective July 1, 2023, an enrolled Indian health service facility or a Tribal health
center operating under a 638 contract or compact may elect to also enroll as a Tribal FQHC.
Requirements that otherwise apply to an FQHC covered in this subdivision do not apply to
a Tribal FQHC enrolled under this paragraph, except that any requirements necessary to
comply with federal regulations do apply to a Tribal FQHC. The commissioner shall establish
an alternative payment method for a Tribal FQHC enrolled under this paragraph that uses
the same method and rates applicable to a Tribal facility or health center that does not enroll
as a Tribal FQHC.
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Minnesota Statutes 2022, section 256B.0625, subdivision 31, is amended to read:
(a) Medical assistance covers medical
supplies and equipment. Separate payment outside of the facility's payment rate shall be
made for wheelchairs and wheelchair accessories for recipients who are residents of
intermediate care facilities for the developmentally disabled. Reimbursement for wheelchairs
and wheelchair accessories for ICF/DD recipients shall be subject to the same conditions
and limitations as coverage for recipients who do not reside in institutions. A wheelchair
purchased outside of the facility's payment rate is the property of the recipient.
(b) Vendors of durable medical equipment, prosthetics, orthotics, or medical supplies
must enroll as a Medicare provider.
(c) When necessary to ensure access to durable medical equipment, prosthetics, orthotics,
or medical supplies, the commissioner may exempt a vendor from the Medicare enrollment
requirement if:
(1) the vendor supplies only one type of durable medical equipment, prosthetic, orthotic,
or medical supply;
(2) the vendor serves ten or fewer medical assistance recipients per year;
(3) the commissioner finds that other vendors are not available to provide same or similar
durable medical equipment, prosthetics, orthotics, or medical supplies; and
(4) the vendor complies with all screening requirements in this chapter and Code of
Federal Regulations, title 42, part 455. The commissioner may also exempt a vendor from
the Medicare enrollment requirement if the vendor is accredited by a Centers for Medicare
and Medicaid Services approved national accreditation organization as complying with the
Medicare program's supplier and quality standards and the vendor serves primarily pediatric
patients.
(d) Durable medical equipment means a device or equipment that:
(1) can withstand repeated use;
(2) is generally not useful in the absence of an illness, injury, or disability; and
(3) is provided to correct or accommodate a physiological disorder or physical condition
or is generally used primarily for a medical purpose.
(e) Electronic tablets may be considered durable medical equipment if the electronic
tablet will be used as an augmentative and alternative communication system as defined
under subdivision 31a, paragraph (a). To be covered by medical assistance, the device must
be locked in order to prevent use not related to communication.
(f) Notwithstanding the requirement in paragraph (e) that an electronic tablet must be
locked to prevent use not as an augmentative communication device, a recipient of waiver
services may use an electronic tablet for a use not related to communication when the
recipient has been authorized under the waiver to receive one or more additional applications
that can be loaded onto the electronic tablet, such that allowing the additional use prevents
the purchase of a separate electronic tablet with waiver funds.
(g) An order or prescription for medical supplies, equipment, or appliances must meet
the requirements in Code of Federal Regulations, title 42, part 440.70.
(h) Allergen-reducing products provided according to subdivision 67, paragraph (c) or
(d), shall be considered durable medical equipment.
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(i) Seizure detection devices are covered as durable medical equipment under this
subdivision if:
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(1) the seizure detection device is medically appropriate based on the recipient's medical
condition or status; and
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(2) the recipient's health care provider has identified that a seizure detection device
would:
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(i) likely assist in reducing bodily harm to or death of the recipient as a result of the
recipient experiencing a seizure; or
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(ii) provide data to the health care provider necessary to appropriately diagnose or treat
a health condition of the recipient that causes the seizure activity.
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(j) For the purposes of paragraph (i), "seizure detection device" means a United States
Food and Drug Administration-approved monitoring device and related service or
subscription supporting the prescribed use of the device, including technology that provides
ongoing patient monitoring and alert services that detect seizure activity and transmit
notification of the seizure activity to a caregiver for appropriate medical response or collects
data of the seizure activity of the recipient that can be used by a health care provider to
diagnose or appropriately treat a health care condition that causes the seizure activity. The
medical assistance reimbursement rate for a subscription supporting the prescribed use of
a seizure detection device is 60 percent of the rate for monthly remote monitoring under
the medical assistance telemonitoring benefit.
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This section is effective January 1, 2024, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when federal approval is obtained.
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Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision
to read:
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(a) Medical assistance covers tobacco and
nicotine cessation services, drugs to treat tobacco and nicotine addiction or dependence,
and drugs to help individuals discontinue use of tobacco and nicotine products. Medical
assistance must cover services and drugs as provided in this subdivision consistent with
evidence-based or evidence-informed best practices.
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(b) Medical assistance must cover in-person individual and group tobacco and nicotine
cessation education and counseling services if provided by a health care practitioner whose
scope of practice encompasses tobacco and nicotine cessation education and counseling.
Service providers include but are not limited to the following:
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(1) mental health practitioners under section 245.462, subdivision 17;
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(2) mental health professionals under section 245.462, subdivision 18;
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(3) mental health certified peer specialists under section 256B.0615;
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(4) alcohol and drug counselors licensed under chapter 148F;
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(5) recovery peers as defined in section 245F.02, subdivision 21;
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(6) certified tobacco treatment specialists;
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(7) community health workers;
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(8) physicians;
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(9) physician assistants;
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(10) advanced practice registered nurses; or
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(11) other licensed or nonlicensed professionals or paraprofessionals with training in
providing tobacco and nicotine cessation education and counseling services.
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(c) Medical assistance covers telephone cessation counseling services provided through
a quitline. Notwithstanding section 256B.0625, subdivision 3b, quitline services may be
provided through audio-only communications. The commissioner of human services may
utilize volume purchasing for quitline services consistent with section 256B.04, subdivision
14.
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(d) Medical assistance must cover all prescription and over-the-counter pharmacotherapy
drugs approved by the United States Food and Drug Administration for cessation of tobacco
and nicotine use or treatment of tobacco and nicotine dependence, and that are subject to a
Medicaid drug rebate agreement.
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(e) Services covered under this subdivision may be provided by telemedicine.
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(f) The commissioner must not:
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(1) restrict or limit the type, duration, or frequency of tobacco and nicotine cessation
services;
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(2) prohibit the simultaneous use of multiple cessation services, including but not limited
to simultaneous use of counseling and drugs;
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(3) require counseling before receiving drugs or as a condition of receiving drugs;
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(4) limit pharmacotherapy drug dosage amounts for a dosing regimen for treatment of
a medically accepted indication as defined in United States Code, title 14, section
1396r-8(K)(6); limit dosing frequency; or impose duration limits;
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(5) prohibit simultaneous use of multiple drugs, including prescription and
over-the-counter drugs;
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(6) require or authorize step therapy; or
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(7) require or utilize prior authorization for any tobacco and nicotine cessation services
and drugs covered under this subdivision.
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This section is effective January 1, 2024.
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Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision
to read:
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(a) Medical assistance covers recuperative care
services provided in a setting that meets the requirements in paragraph (b) for recipients
who meet the eligibility requirements in paragraph (c). For purposes of this subdivision,
"recuperative care" means a model of care that prevents hospitalization or that provides
postacute medical care and support services for recipients experiencing homelessness who
are too ill or frail to recover from a physical illness or injury while living in a shelter or are
otherwise unhoused but who are not sick enough to be hospitalized, or remain hospitalized,
or to need other levels of care.
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(b) Recuperative care may be provided in any setting, including but not limited to
homeless shelters, congregate care settings, single-room occupancy settings, or supportive
housing, so long as the provider of recuperative care or provider of housing is able to provide
to the recipient within the designated setting, at a minimum:
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(1) 24-hour access to a bed and bathroom;
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(2) access to three meals a day;
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(3) availability to environmental services;
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(4) access to a telephone;
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(5) a secure place to store belongings; and
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(6) staff available within the setting to provide a wellness check as needed, but at a
minimum at least once every 24 hours.
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(c) To be eligible for this covered service, a recipient must:
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(1) be 21 years of age or older;
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(2) be experiencing homelessness;
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(3) be in need of short-term acute medical care for a period of no more than 60 days;
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(4) meet clinical criteria, as established by the commissioner, that indicates that the
recipient is in need of recuperative care; and
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(5) not have behavioral health needs that are greater than what can be managed by the
provider within the setting.
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(d) Payment for recuperative care shall consist of two components. The first component
must be for the services provided to the member and is a bundled daily per diem payment
of at least $300 per day. The second component must be for the facility costs and must be
paid using state funds equivalent to the amount paid as the medical assistance room and
board rate and annual adjustments. The eligibility standards in chapter 256I shall not apply.
The second component is only paid when the first component is paid to a provider. Providers
may opt to only be reimbursed for the first component. A provider under this subdivision
means a recuperative care provider and is defined by the standards established by the National
Institute for Medical Respite Care. Services provided within the bundled payment may
include but are not limited to:
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(1) basic nursing care, including:
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(i) monitoring a patient's physical health and pain level;
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(ii) providing wound care;
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(iii) medication support;
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(iv) patient education;
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(v) immunization review and update; and
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(vi) establishing clinical goals for the recuperative care period and discharge plan;
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(2) care coordination, including:
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(i) initial assessment of medical, behavioral, and social needs;
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(ii) development of a care plan;
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(iii) support and referral assistance for legal services, housing, community social services,
case management, health care benefits, health and other eligible benefits, and transportation
needs and services; and
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(iv) monitoring and follow-up to ensure that the care plan is effectively implemented to
address the medical, behavioral, and social needs;
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(3) basic behavioral needs, including counseling and peer support, that can be provided
in this recuperative care setting; and
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(4) services provided by a community health worker as defined under subdivision 49.
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(e) Before a recipient is discharged from a recuperative care setting, the provider must
ensure that the recipient's acute medical condition is stabilized or that the recipient is being
discharged to a setting that is able to meet that recipient's needs.
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(f) If a recipient is temporarily absent due to an admission at a residential behavioral
health facility, inpatient hospital, or nursing facility for a period of time exceeding the limits
described in paragraph (d), the agency may request in a format prescribed by the
commissioner an absence day limit exception to continue payments until the recipient is
discharged.
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(g) The commissioner shall submit an initial report to the chairs and ranking minority
members of the legislative committees with jurisdiction over health and human services
finance and policy by February 1, 2025, and a final report by February 1, 2027, on coverage
of recuperative care services. The reports must include but are not limited to:
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(1) a list of the recuperative care services in Minnesota and the number of recipients;
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(2) the estimated return on investment, including health care savings due to reduced
hospitalizations;
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(3) follow-up information, if available, on whether recipients' hospital visits decreased
since recuperative care services were provided compared to before the services were
provided; and
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(4) any other information that can be used to determine the effectiveness of the program
and its funding, including recommendations for improvements to the program.
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This section is effective January 1, 2024.
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Minnesota Statutes 2022, section 256B.196, subdivision 2, is amended to read:
(a) For the purposes of this subdivision and subdivision
3, the commissioner shall determine the fee-for-service outpatient hospital services upper
payment limit for nonstate government hospitals. The commissioner shall then determine
the amount of a supplemental payment to Hennepin County Medical Center and Regions
Hospital for these services that would increase medical assistance spending in this category
to the aggregate upper payment limit for all nonstate government hospitals in Minnesota.
In making this determination, the commissioner shall allot the available increases between
Hennepin County Medical Center and Regions Hospital based on the ratio of medical
assistance fee-for-service outpatient hospital payments to the two facilities. The commissioner
shall adjust this allotment as necessary based on federal approvals, the amount of
intergovernmental transfers received from Hennepin and Ramsey Counties, and other factors,
in order to maximize the additional total payments. The commissioner shall inform Hennepin
County and Ramsey County of the periodic intergovernmental transfers necessary to match
federal Medicaid payments available under this subdivision in order to make supplementary
medical assistance payments to Hennepin County Medical Center and Regions Hospital
equal to an amount that when combined with existing medical assistance payments to
nonstate governmental hospitals would increase total payments to hospitals in this category
for outpatient services to the aggregate upper payment limit for all hospitals in this category
in Minnesota. Upon receipt of these periodic transfers, the commissioner shall make
supplementary payments to Hennepin County Medical Center and Regions Hospital.
(b) For the purposes of this subdivision and subdivision 3, the commissioner shall
determine an upper payment limit for physicians and other billing professionals affiliated
with Hennepin County Medical Center and with Regions Hospital. The upper payment limit
shall be based on the average commercial rate or be determined using another method
acceptable to the Centers for Medicare and Medicaid Services. The commissioner shall
inform Hennepin County and Ramsey County of the periodic intergovernmental transfers
necessary to match the federal Medicaid payments available under this subdivision in order
to make supplementary payments to physicians and other billing professionals affiliated
with Hennepin County Medical Center and to make supplementary payments to physicians
and other billing professionals affiliated with Regions Hospital through HealthPartners
Medical Group equal to the difference between the established medical assistance payment
for physician and other billing professional services and the upper payment limit. Upon
receipt of these periodic transfers, the commissioner shall make supplementary payments
to physicians and other billing professionals affiliated with Hennepin County Medical Center
and shall make supplementary payments to physicians and other billing professionals
affiliated with Regions Hospital through HealthPartners Medical Group.
(c) Beginning January 1, 2010, Ramsey County may make monthly voluntary
intergovernmental transfers to the commissioner in amounts not to exceed $6,000,000 per
year. The commissioner shall increase the medical assistance capitation payments to any
licensed health plan under contract with the medical assistance program that agrees to make
enhanced payments to Regions Hospital. The increase shall be in an amount equal to the
annual value of the monthly transfers plus federal financial participation, with each health
plan receiving its pro rata share of the increase based on the pro rata share of medical
assistance admissions to Regions Hospital by those plans. For the purposes of this paragraph,
"the base amount" means the total annual value of increased medical assistance capitation
payments, including the voluntary intergovernmental transfers, under this paragraph in
calendar year 2017. For managed care contracts beginning on or after January 1, 2018, the
commissioner shall reduce the total annual value of increased medical assistance capitation
payments under this paragraph by an amount equal to ten percent of the base amount, and
by an additional ten percent of the base amount for each subsequent contract year until
December 31, 2025. Upon the request of the commissioner, health plans shall submit
individual-level cost data for verification purposes. The commissioner may ratably reduce
these payments on a pro rata basis in order to satisfy federal requirements for actuarial
soundness. If payments are reduced, transfers shall be reduced accordingly. Any licensed
health plan that receives increased medical assistance capitation payments under the
intergovernmental transfer described in this paragraph shall increase its medical assistance
payments to Regions Hospital by the same amount as the increased payments received in
the capitation payment described in this paragraph. This paragraph expires January 1, 2026.
(d) For the purposes of this subdivision and subdivision 3, the commissioner shall
determine an upper payment limit for ambulance services affiliated with Hennepin County
Medical Center and the city of St. Paul, and ambulance services owned and operated by
another governmental entity that chooses to participate by requesting the commissioner to
determine an upper payment limit. The upper payment limit shall be based on the average
commercial rate or be determined using another method acceptable to the Centers for
Medicare and Medicaid Services. The commissioner shall inform Hennepin County, the
city of St. Paul, and other participating governmental entities of the periodic
intergovernmental transfers necessary to match the federal Medicaid payments available
under this subdivision in order to make supplementary payments to Hennepin County
Medical Center, the city of St. Paul, and other participating governmental entities equal to
the difference between the established medical assistance payment for ambulance services
and the upper payment limit. Upon receipt of these periodic transfers, the commissioner
shall make supplementary payments to Hennepin County Medical Center, the city of St.
Paul, and other participating governmental entities. A tribal government that owns and
operates an ambulance service is not eligible to participate under this subdivision.
(e) For the purposes of this subdivision and subdivision 3, the commissioner shall
determine an upper payment limit for physicians, dentists, and other billing professionals
affiliated with the University of Minnesota and University of Minnesota Physicians. The
upper payment limit shall be based on the average commercial rate or be determined using
another method acceptable to the Centers for Medicare and Medicaid Services. The
commissioner shall inform the University of Minnesota Medical School and University of
Minnesota School of Dentistry of the periodic intergovernmental transfers necessary to
match the federal Medicaid payments available under this subdivision in order to make
supplementary payments to physicians, dentists, and other billing professionals affiliated
with the University of Minnesota and the University of Minnesota Physicians equal to the
difference between the established medical assistance payment for physician, dentist, and
other billing professional services and the upper payment limit. Upon receipt of these periodic
transfers, the commissioner shall make supplementary payments to physicians, dentists,
and other billing professionals affiliated with the University of Minnesota and the University
of Minnesota Physicians.
(f) The commissioner shall inform the transferring governmental entities on an ongoing
basis of the need for any changes needed in the intergovernmental transfers in order to
continue the payments under paragraphs (a) to (e), at their maximum level, including
increases in upper payment limits, changes in the federal Medicaid match, and other factors.
(g) The payments in paragraphs (a) to (e) shall be implemented independently of each
other, subject to federal approval and to the receipt of transfers under subdivision 3.
(h) All of the data and funding transactions related to the payments in paragraphs (a) to
(e) shall be between the commissioner and the governmental entities.new text begin The commissioner
shall not make payments to governmental entities eligible to receive payments described
in paragraphs (a) to (e) that fail to submit the data needed to compute the payments within
24 months of the initial request from the commissioner.
new text end
(i) For purposes of this subdivision, billing professionals are limited to physicians, nurse
practitioners, nurse midwives, clinical nurse specialists, physician assistants,
anesthesiologists, certified registered nurse anesthetists, dentists, dental hygienists, and
dental therapists.
new text begin
This section is effective July 1, 2023.
new text end
Minnesota Statutes 2022, section 256B.69, subdivision 5a, is amended to read:
(a) Managed care contracts under this section and
section 256L.12 shall be entered into or renewed on a calendar year basis. The commissioner
may issue separate contracts with requirements specific to services to medical assistance
recipients age 65 and older.
(b) A prepaid health plan providing covered health services for eligible persons pursuant
to chapters 256B and 256L is responsible for complying with the terms of its contract with
the commissioner. Requirements applicable to managed care programs under chapters 256B
and 256L established after the effective date of a contract with the commissioner take effect
when the contract is next issued or renewed.
(c) The commissioner shall withhold five percent of managed care plan payments under
this section and county-based purchasing plan payments under section 256B.692 for the
prepaid medical assistance program pending completion of performance targets. Each
performance target must be quantifiable, objective, measurable, and reasonably attainable,
except in the case of a performance target based on a federal or state law or rule. Criteria
for assessment of each performance target must be outlined in writing prior to the contract
effective date. Clinical or utilization performance targets and their related criteria must
consider evidence-based research and reasonable interventions when available or applicable
to the populations served, and must be developed with input from external clinical experts
and stakeholders, including managed care plans, county-based purchasing plans, and
providers. The managed care or county-based purchasing plan must demonstrate, to the
commissioner's satisfaction, that the data submitted regarding attainment of the performance
target is accurate. The commissioner shall periodically change the administrative measures
used as performance targets in order to improve plan performance across a broader range
of administrative services. The performance targets must include measurement of plan
efforts to contain spending on health care services and administrative activities. The
commissioner may adopt plan-specific performance targets that take into account factors
affecting only one plan, including characteristics of the plan's enrollee population. The
withheld funds must be returned no sooner than July of the following year if performance
targets in the contract are achieved. The commissioner may exclude special demonstration
projects under subdivision 23.
(d) The commissioner shall require that managed care plans:
(1) use the assessment and authorization processes, forms, timelines, standards,
documentation, and data reporting requirements, protocols, billing processes, and policies
consistent with medical assistance fee-for-service or the Department of Human Services
contract requirements for all personal care assistance services under section 256B.0659 and
community first services and supports under section 256B.85; and
(2) by January 30 of each year that follows a rate increase for any aspect of services
under section 256B.0659 or 256B.85, inform the commissioner and the chairs and ranking
minority members of the legislative committees with jurisdiction over rates determined
under section 256B.851 of the amount of the rate increase that is paid to each personal care
assistance provider agency with which the plan has a contract.
deleted text begin
(e) Effective for services rendered on or after January 1, 2012, the commissioner shall
include as part of the performance targets described in paragraph (c) a reduction in the health
plan's emergency department utilization rate for medical assistance and MinnesotaCare
enrollees, as determined by the commissioner. For 2012, the reduction shall be based on
the health plan's utilization in 2009. To earn the return of the withhold each subsequent
year, the managed care plan or county-based purchasing plan must achieve a qualifying
reduction of no less than ten percent of the plan's emergency department utilization rate for
medical assistance and MinnesotaCare enrollees, excluding enrollees in programs described
in subdivisions 23 and 28, compared to the previous measurement year until the final
performance target is reached. When measuring performance, the commissioner must
consider the difference in health risk in a managed care or county-based purchasing plan's
membership in the baseline year compared to the measurement year, and work with the
managed care or county-based purchasing plan to account for differences that they agree
are significant.
deleted text end
deleted text begin
The withheld funds must be returned no sooner than July 1 and no later than July 31 of
the following calendar year if the managed care plan or county-based purchasing plan
demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate
was achieved. The commissioner shall structure the withhold so that the commissioner
returns a portion of the withheld funds in amounts commensurate with achieved reductions
in utilization less than the targeted amount.
deleted text end
deleted text begin
The withhold described in this paragraph shall continue for each consecutive contract
period until the plan's emergency room utilization rate for state health care program enrollees
is reduced by 25 percent of the plan's emergency room utilization rate for medical assistance
and MinnesotaCare enrollees for calendar year 2009. Hospitals shall cooperate with the
health plans in meeting this performance target and shall accept payment withholds that
may be returned to the hospitals if the performance target is achieved.
deleted text end
deleted text begin
(f) Effective for services rendered on or after January 1, 2012, the commissioner shall
include as part of the performance targets described in paragraph (c) a reduction in the plan's
hospitalization admission rate for medical assistance and MinnesotaCare enrollees, as
determined by the commissioner. To earn the return of the withhold each year, the managed
care plan or county-based purchasing plan must achieve a qualifying reduction of no less
than five percent of the plan's hospital admission rate for medical assistance and
MinnesotaCare enrollees, excluding enrollees in programs described in subdivisions 23 and
28, compared to the previous calendar year until the final performance target is reached.
When measuring performance, the commissioner must consider the difference in health risk
in a managed care or county-based purchasing plan's membership in the baseline year
compared to the measurement year, and work with the managed care or county-based
purchasing plan to account for differences that they agree are significant.
deleted text end
deleted text begin
The withheld funds must be returned no sooner than July 1 and no later than July 31 of
the following calendar year if the managed care plan or county-based purchasing plan
demonstrates to the satisfaction of the commissioner that this reduction in the hospitalization
rate was achieved. The commissioner shall structure the withhold so that the commissioner
returns a portion of the withheld funds in amounts commensurate with achieved reductions
in utilization less than the targeted amount.
deleted text end
deleted text begin
The withhold described in this paragraph shall continue until there is a 25 percent
reduction in the hospital admission rate compared to the hospital admission rates in calendar
year 2011, as determined by the commissioner. The hospital admissions in this performance
target do not include the admissions applicable to the subsequent hospital admission
performance target under paragraph (g). Hospitals shall cooperate with the plans in meeting
this performance target and shall accept payment withholds that may be returned to the
hospitals if the performance target is achieved.
deleted text end
deleted text begin
(g) Effective for services rendered on or after January 1, 2012, the commissioner shall
include as part of the performance targets described in paragraph (c) a reduction in the plan's
hospitalization admission rates for subsequent hospitalizations within 30 days of a previous
hospitalization of a patient regardless of the reason, for medical assistance and MinnesotaCare
enrollees, as determined by the commissioner. To earn the return of the withhold each year,
the managed care plan or county-based purchasing plan must achieve a qualifying reduction
of the subsequent hospitalization rate for medical assistance and MinnesotaCare enrollees,
excluding enrollees in programs described in subdivisions 23 and 28, of no less than five
percent compared to the previous calendar year until the final performance target is reached.
deleted text end
deleted text begin
The withheld funds must be returned no sooner than July 1 and no later than July 31 of
the following calendar year if the managed care plan or county-based purchasing plan
demonstrates to the satisfaction of the commissioner that a qualifying reduction in the
subsequent hospitalization rate was achieved. The commissioner shall structure the withhold
so that the commissioner returns a portion of the withheld funds in amounts commensurate
with achieved reductions in utilization less than the targeted amount.
deleted text end
deleted text begin
The withhold described in this paragraph must continue for each consecutive contract
period until the plan's subsequent hospitalization rate for medical assistance and
MinnesotaCare enrollees, excluding enrollees in programs described in subdivisions 23 and
28, is reduced by 25 percent of the plan's subsequent hospitalization rate for calendar year
2011. Hospitals shall cooperate with the plans in meeting this performance target and shall
accept payment withholds that must be returned to the hospitals if the performance target
is achieved.
deleted text end
deleted text begin (h)deleted text end new text begin (e)new text end Effective for services rendered on or after January 1, 2013, through December
31, 2013, the commissioner shall withhold 4.5 percent of managed care plan payments under
this section and county-based purchasing plan payments under section 256B.692 for the
prepaid medical assistance program. The withheld funds must be returned no sooner than
July 1 and no later than July 31 of the following year. The commissioner may exclude
special demonstration projects under subdivision 23.
deleted text begin (i)deleted text end new text begin (f) new text end Effective for services rendered on or after January 1, 2014, the commissioner shall
withhold three percent of managed care plan payments under this section and county-based
purchasing plan payments under section 256B.692 for the prepaid medical assistance
program. The withheld funds must be returned no sooner than July 1 and no later than July
31 of the following year. The commissioner may exclude special demonstration projects
under subdivision 23.
deleted text begin (j)deleted text end new text begin (g)new text end A managed care plan or a county-based purchasing plan under section 256B.692
may include as admitted assets under section 62D.044 any amount withheld under this
section that is reasonably expected to be returned.
deleted text begin (k)deleted text end new text begin (h)new text end Contracts between the commissioner and a prepaid health plan are exempt from
the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph (a),
and 7.
deleted text begin (l)deleted text end new text begin (i)new text end The return of the withhold under paragraphs (h) and (i) is not subject to the
requirements of paragraph (c).
deleted text begin (m)deleted text end new text begin (j)new text end Managed care plans and county-based purchasing plans shall maintain current
and fully executed agreements for all subcontractors, including bargaining groups, for
administrative services that are expensed to the state's public health care programs.
Subcontractor agreements determined to be material, as defined by the commissioner after
taking into account state contracting and relevant statutory requirements, must be in the
form of a written instrument or electronic document containing the elements of offer,
acceptance, consideration, payment terms, scope, duration of the contract, and how the
subcontractor services relate to state public health care programs. Upon request, the
commissioner shall have access to all subcontractor documentation under this paragraph.
Nothing in this paragraph shall allow release of information that is nonpublic data pursuant
to section 13.02.
new text begin
This section is effective January 1, 2024.
new text end
Minnesota Statutes 2022, section 256B.76, subdivision 1, is amended to read:
(a) Effective for services rendered on or after
October 1, 1992, the commissioner shall make payments for physician services as follows:
(1) payment for level one Centers for Medicare and Medicaid Services' common
procedural coding system codes titled "office and other outpatient services," "preventive
medicine new and established patient," "delivery, antepartum, and postpartum care," "critical
care," cesarean delivery and pharmacologic management provided to psychiatric patients,
and level three codes for enhanced services for prenatal high risk, shall be paid at the lower
of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 30, 1992;
(2) payments for all other services shall be paid at the lower of (i) submitted charges,
or (ii) 15.4 percent above the rate in effect on June 30, 1992; and
(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th
percentile of 1989, less the percent in aggregate necessary to equal the above increases
except that payment rates for home health agency services shall be the rates in effect on
September 30, 1992.
(b) Effective for services rendered on or after January 1, 2000, payment rates for physician
and professional services shall be increased by three percent over the rates in effect on
December 31, 1999, except for home health agency and family planning agency services.
The increases in this paragraph shall be implemented January 1, 2000, for managed care.
(c) Effective for services rendered on or after July 1, 2009, payment rates for physician
and professional services shall be reduced by five percent, except that for the period July
1, 2009, through June 30, 2010, payment rates shall be reduced by 6.5 percent for the medical
assistance and general assistance medical care programs, over the rates in effect on June
30, 2009. This reduction and the reductions in paragraph (d) do not apply to office or other
outpatient visits, preventive medicine visits and family planning visits billed by physicians,
advanced practice nurses, or physician assistants in a family planning agency or in one of
the following primary care practices: general practice, general internal medicine, general
pediatrics, general geriatrics, and family medicine. This reduction and the reductions in
paragraph (d) do not apply to federally qualified health centers, rural health centers, and
Indian health services. Effective October 1, 2009, payments made to managed care plans
and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall
reflect the payment reduction described in this paragraph.
(d) Effective for services rendered on or after July 1, 2010, payment rates for physician
and professional services shall be reduced an additional seven percent over the five percent
reduction in rates described in paragraph (c). This additional reduction does not apply to
physical therapy services, occupational therapy services, and speech pathology and related
services provided on or after July 1, 2010. This additional reduction does not apply to
physician services billed by a psychiatrist or an advanced practice nurse with a specialty in
mental health. Effective October 1, 2010, payments made to managed care plans and
county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect
the payment reduction described in this paragraph.
(e) Effective for services rendered on or after September 1, 2011, through June 30, 2013,
payment rates for physician and professional services shall be reduced three percent from
the rates in effect on August 31, 2011. This reduction does not apply to physical therapy
services, occupational therapy services, and speech pathology and related services.
(f) Effective for services rendered on or after September 1, 2014, payment rates for
physician and professional services, including physical therapy, occupational therapy, speech
pathology, and mental health services shall be increased by five percent from the rates in
effect on August 31, 2014. In calculating this rate increase, the commissioner shall not
include in the base rate for August 31, 2014, the rate increase provided under section
256B.76, subdivision 7. This increase does not apply to federally qualified health centers,
rural health centers, and Indian health services. Payments made to managed care plans and
county-based purchasing plans shall not be adjusted to reflect payments under this paragraph.
(g) Effective for services rendered on or after July 1, 2015, payment rates for physical
therapy, occupational therapy, and speech pathology and related services provided by a
hospital meeting the criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause
(4), shall be increased by 90 percent from the rates in effect on June 30, 2015. Payments
made to managed care plans and county-based purchasing plans shall not be adjusted to
reflect payments under this paragraph.
(h) Any ratables effective before July 1, 2015, do not apply to early intensive
developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
new text begin
(i) The commissioner may reimburse the cost incurred to pay the Department of Health
for metabolic disorder testing of newborns who are medical assistance recipients when the
sample is collected outside of an inpatient hospital setting or freestanding birth center setting
because the newborn was born outside of a hospital setting or freestanding birth center
setting or because it is not medically appropriate to collect the sample during the inpatient
stay for the birth.
new text end
Minnesota Statutes 2022, section 256B.76, subdivision 2, is amended to read:
(a) Effective for services rendered deleted text begin on or afterdeleted text end new text begin fromnew text end
October 1, 1992,new text begin to December 31, 2023,new text end the commissioner shall make payments for dental
services as follows:
(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 percent
above the rate in effect on June 30, 1992; and
(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th percentile
of 1989, less the percent in aggregate necessary to equal the above increases.
(b) deleted text begin Beginningdeleted text end new text begin Fromnew text end October 1, 1999,new text begin to December 31, 2023,new text end the payment for tooth
sealants and fluoride treatments shall be the lower of (1) submitted charge, or (2) 80 percent
of median 1997 charges.
(c) Effective for services rendered deleted text begin on or afterdeleted text end new text begin fromnew text end January 1, 2000,new text begin to December 31,
2023,new text end payment rates for dental services shall be increased by three percent over the rates in
effect on December 31, 1999.
(d) Effective for services provided deleted text begin on or afterdeleted text end new text begin fromnew text end January 1, 2002,new text begin to December 31,
2023,new text end payment for diagnostic examinations and dental x-rays provided to children under
age 21 shall be the lower of (1) the submitted charge, or (2) 85 percent of median 1999
charges.
(e) The increases listed in paragraphs (b) and (c) shall be implemented January 1, 2000,
for managed care.
(f) Effective for dental services rendered on or after October 1, 2010, by a state-operated
dental clinic, payment shall be paid on a reasonable cost basis that is based on the Medicare
principles of reimbursement. This payment shall be effective for services rendered on or
after January 1, 2011, to recipients enrolled in managed care plans or county-based
purchasing plans.
(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics in
paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal year, a
supplemental state payment equal to the difference between the total payments in paragraph
(f) and $1,850,000 shall be paid from the general fund to state-operated services for the
operation of the dental clinics.
deleted text begin
(h) Effective for services rendered on or after January 1, 2014, through December 31,
2021, payment rates for dental services shall be increased by five percent from the rates in
effect on December 31, 2013. This increase does not apply to state-operated dental clinics
in paragraph (f), federally qualified health centers, rural health centers, and Indian health
services. Effective January 1, 2014, payments made to managed care plans and county-based
purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment
increase described in this paragraph.
deleted text end
deleted text begin
(i) Effective for services provided on or after January 1, 2017, through December 31,
2021, the commissioner shall increase payment rates by 9.65 percent for dental services
provided outside of the seven-county metropolitan area. This increase does not apply to
state-operated dental clinics in paragraph (f), federally qualified health centers, rural health
centers, or Indian health services. Effective January 1, 2017, payments to managed care
plans and county-based purchasing plans under sections 256B.69 and 256B.692 shall reflect
the payment increase described in this paragraph.
deleted text end
deleted text begin
(j) Effective for services provided on or after July 1, 2017, through December 31, 2021,
the commissioner shall increase payment rates by 23.8 percent for dental services provided
to enrollees under the age of 21. This rate increase does not apply to state-operated dental
clinics in paragraph (f), federally qualified health centers, rural health centers, or Indian
health centers. This rate increase does not apply to managed care plans and county-based
purchasing plans.
deleted text end
deleted text begin (k)deleted text end new text begin (h)new text end Effective for services provided on or after January 1, 2022, the commissioner
shall exclude from medical assistance and MinnesotaCare payments for dental services to
public health and community health clinics the 20 percent increase authorized under Laws
1989, chapter 327, section 5, subdivision 2, paragraph (b).
deleted text begin (l)deleted text end new text begin (i)new text end Effective for services provided deleted text begin on or afterdeleted text end new text begin fromnew text end January 1, 2022,new text begin to December 31,
2023,new text end the commissioner shall increase payment rates by 98 percent for all dental services.
This rate increase does not apply to state-operated dental clinics, federally qualified health
centers, rural health centers, or Indian health services.
deleted text begin (m)deleted text end new text begin (j)new text end Managed care plans and county-based purchasing plans shall reimburse providers
at a level that is at least equal to the rate paid under fee-for-service for dental services. If,
for any coverage year, federal approval is not received for this paragraph, the commissioner
must adjust the capitation rates paid to managed care plans and county-based purchasing
plans for that contract year to reflect the removal of this provision. Contracts between
managed care plans and county-based purchasing plans and providers to whom this paragraph
applies must allow recovery of payments from those providers if capitation rates are adjusted
in accordance with this paragraph. Payment recoveries must not exceed an amount equal
to any increase in rates that results from this provision. If, for any coverage year, federal
approval is not received for this paragraph, the commissioner shall not implement this
paragraph for subsequent coverage years.
new text begin
(k) Effective for services provided on or after January 1, 2024, payment for dental
services must be the lower of submitted charges or the percentile of 2018-submitted charges
from claims paid by the commissioner so that the total aggregate expenditures does not
exceed the total spend as outlined in the applicable paragraphs (a) to (k). This paragraph
does not apply to federally qualified health centers, rural health centers, state-operated dental
clinics, or Indian health centers.
new text end
new text begin
(l) Beginning January 1, 2028, and every three years thereafter, the commissioner shall
rebase payment rates for dental services to a percentile of submitted charges for the applicable
base year using charge data from claims paid by the commissioner so that the total aggregate
expenditures does not exceed the total spend as outlined in paragraph (k) plus the change
in the Medicare Economic Index (MEI). In 2028, the change in the MEI must be measured
from midyear of 2025 and 2027. For each subsequent rebasing, the change in the MEI must
be measured between the years that are one year after the rebasing years. The base year
used for each rebasing must be the calendar year that is two years prior to the effective date
of the rebasing. This paragraph does not apply to federally qualified health centers, rural
health centers, state-operated dental clinics, or Indian health centers.
new text end
new text begin
This section is effective January 1, 2024, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when federal approval is obtained.
new text end
Minnesota Statutes 2022, section 256B.764, is amended to read:
(a) Effective for services rendered on or after July 1, 2007, payment rates for family
planning services shall be increased by 25 percent over the rates in effect June 30, 2007,
when these services are provided by a community clinic as defined in section 145.9268,
subdivision 1.
(b) Effective for services rendered on or after July 1, 2013, payment rates for family
planning services shall be increased by 20 percent over the rates in effect June 30, 2013,
when these services are provided by a community clinic as defined in section 145.9268,
subdivision 1. The commissioner shall adjust capitation rates to managed care and
county-based purchasing plans to reflect this increase, and shall require plans to pass on the
full amount of the rate increase to eligible community clinics, in the form of higher payment
rates for family planning services.
new text begin
(c) Effective for services provided on or after January 1, 2024, payment rates for family
planning and abortion services shall be increased by ten percent. This increase does not
apply to federally qualified health centers, rural health centers, or Indian health services.
new text end
Minnesota Statutes 2022, section 256L.03, subdivision 1, is amended to read:
(a) "Covered health services" means the health
services reimbursed under chapter 256B, with the exception of special education services,
home care nursing services, adult dental care services other than services covered under
section 256B.0625, subdivision 9, orthodontic services, nonemergency medical transportation
services, personal care assistance and case management services, community first services
and supports under section 256B.85, behavioral health home services under section
256B.0757, housing stabilization services under section 256B.051, and nursing home or
intermediate care facilities services.
deleted text begin
(b) No public funds shall be used for coverage of abortion under MinnesotaCare except
where the life of the female would be endangered or substantial and irreversible impairment
of a major bodily function would result if the fetus were carried to term; or where the
pregnancy is the result of rape or incest.
deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end Covered health services shall be expanded as provided in this section.
deleted text begin (d)deleted text end new text begin (c)new text end For the purposes of covered health services under this section, "child" means an
individual younger than 19 years of age.
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 256L.03, subdivision 5, is amended to read:
(a) Co-payments, coinsurance, and deductibles do not apply to
children under the age of 21 and to American Indians as defined in Code of Federal
Regulations, title 42, section 600.5.
(b) The commissioner deleted text begin shalldeleted text end new text begin mustnew text end adjust co-payments, coinsurance, and deductibles for
covered services in a manner sufficient to maintain the actuarial value of the benefit to 94
percent. The cost-sharing changes described in this paragraph do not apply to eligible
recipients or services exempt from cost-sharing under state law. The cost-sharing changes
described in this paragraph shall not be implemented prior to January 1, 2016.
(c) The cost-sharing changes authorized under paragraph (b) must satisfy the requirements
for cost-sharing under the Basic Health Program as set forth in Code of Federal Regulations,
title 42, sections 600.510 and 600.520.
new text begin
(d) Cost-sharing must not apply to drugs used for tobacco and nicotine cessation or to
tobacco and nicotine cessation services covered under section 256B.0625, subdivision 68.
new text end
new text begin
This section is effective January 1, 2024.
new text end
Laws 2021, First Special Session chapter 7, article 6, section 26, is amended to
read:
Notwithstanding Laws 2020, First Special Session chapter 7, section 1, subdivision 2,
as amended by Laws 2020, Third Special Session chapter 1, section 3, when the peacetime
emergency declared by the governor in response to the COVID-19 outbreak expires, is
terminated, or is rescinded by the proper authority, the following modifications issued by
the commissioner of human services pursuant to Executive Orders 20-11 and 20-12, and
including any amendments to the modification issued before the peacetime emergency
expires, shall remain in effect until July 1, deleted text begin 2023deleted text end new text begin 2025new text end :
(1) CV16: expanding access to telemedicine services for Children's Health Insurance
Program, Medical Assistance, and MinnesotaCare enrollees; and
(2) CV21: allowing telemedicine alternative for school-linked mental health services
and intermediate school district mental health services.
new text begin
Minnesota Rules, part 9505.0235,
new text end
new text begin
is repealed the day following final enactment.
new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Commission" means the Health Care Affordability Commission.
new text end
new text begin
(c) "Commissioner" means the commissioner of health.
new text end
new text begin
(d) "Health care entity" includes but is not limited to clinics, hospitals, ambulatory
surgical centers, physician organizations, accountable care organizations, integrated provider
and plan systems, county-based purchasing plans, and health plan companies.
new text end
new text begin
(e) "Health care provider" or "provider" means a health care professional who is licensed
or registered by the state to perform health care services within the provider's scope of
practice and in accordance with state law.
new text end
new text begin
(f) "Health plan" means a health plan as defined in section 62A.011, subdivision 3.
new text end
new text begin
(g) "Health plan company" means a health carrier as defined under section 62A.011,
subdivision 2.
new text end
new text begin
(h) "Hospital" means an entity licensed under sections 144.50 to 144.58.
new text end
new text begin
(a) The commissioner of health shall establish a
health care affordability commission that shall consist of the following 15 members:
new text end
new text begin
(1) two members with expertise and experience in advocating on behalf of patients;
new text end
new text begin
(2) two Minnesota residents who are health care consumers, one residing in greater
Minnesota and one residing in a metropolitan area, one of whom represents an underserved
community;
new text end
new text begin
(3) one member representing Indian Tribes;
new text end
new text begin
(4) two members of the business community who purchase health insurance for their
employees, one of whom purchases coverage in the small group market;
new text end
new text begin
(5) two members representing public purchasers of health insurance for their employees;
new text end
new text begin
(6) one licensed and certified health care provider employed at a federally qualified
health center;
new text end
new text begin
(7) one member representing a health care entity or urban hospitals;
new text end
new text begin
(8) one member representing rural hospitals;
new text end
new text begin
(9) one member representing health plans;
new text end
new text begin
(10) one member who is an expert in health care financing and administration; and
new text end
new text begin
(11) one member who is an expert in health economics.
new text end
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(b) All members appointed must have the knowledge and demonstrated expertise in one
of the following areas of expertise, and each area of expertise must be met by at least one
member of the commission:
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(1) health care finance, health economics, and health care management or administration
at a senior level;
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(2) health care consumer advocacy;
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(3) representing the health care workforce as a leader in a labor organization;
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(4) purchasing health insurance representing business management or health benefits
administration;
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(5) delivering primary care, health plan administration, or public or population health;
or
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(6) addressing health disparities and structural inequities.
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(c) No member may participate in commission proceedings involving an individual
provider, purchaser, or patient or a specific activity or transaction if the member has direct
financial interest in the outcome of the commission's proceedings other than as an individual
consumer of health care services.
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(a) The commissioners of health, human services, and commerce shall
make recommendations for commission membership. Commission members shall be
appointed by the governor. The initial appointments to the commission shall be made by
September 1, 2023. The initial appointed commission members shall serve staggered terms
of three or four years determined by lot by the secretary of state. Following the initial
appointments, the commission members shall serve four-year terms. Members may not
serve more than two consecutive terms.
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(b) The commission is governed by section 15.0575, except as otherwise provided in
this section.
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(c) A commission member may resign at any time by giving written notice to the
commission.
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(a) The governor shall annually designate a member to
serve as chair of the commission. The chair shall serve for one year. If there is a vacancy
for any cause, the governor shall make an appointment for that category of membership and
expertise, to become immediately effective.
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(b) The commission shall elect a vice-chair and other officers from its membership as
it deems necessary.
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Commission members may be compensated according to
section 15.0575.
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(a) Meetings of the commission, including any public hearings, are
subject to chapter 13D.
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(b) The commission must meet publicly on at least a monthly basis until the initial growth
targets are established.
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(c) After the initial growth targets are established, the commission shall meet at least
quarterly to consider summary data presented by the commissioner, draft report findings,
consider updates to the health care spending growth target program and growth target levels,
discuss findings with health care providers and payers, and identify additional analyses and
strategies to limit health care spending growth.
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At least annually, the commission shall hold public hearings to
present findings from spending growth target monitoring. The commission shall also regularly
hold public hearings to take testimony from stakeholders on health care spending growth,
setting and revising health care spending growth targets, and the impact of spending growth
and growth targets on health care access and quality and as needed to perform assigned
duties.
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(a) The commission shall hire a
full-time executive director and administrative staff who shall serve in the unclassified
service. The executive director must have significant knowledge and expertise in health
economics and demonstrated experience in health policy.
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(b) The attorney general shall provide legal services to the commission.
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(c) The commissioner of health shall provide technical assistance to the commission
related to collecting data, analyzing health care trends and costs, and setting health care
spending growth targets.
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The commissioner of health shall provide office space,
equipment and supplies, and analytic staff support to the commission and the Health Care
Affordability Advisory Council.
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(a) The commissioner, in consultation with the
commissioners of commerce and human services, shall provide staff support to the
commission, including performing and procuring consulting and analytic services. The
commissioner shall:
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(1) establish the form and manner of data reporting, including reporting methods and
dates, consistent with program design and timelines formalized by the commission;
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(2) under the authority in chapter 62J, collect data identified by the commission for use
in the program in a form and manner that ensures the collection of high-quality, transparent
data;
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(3) provide analytical support, including by conducting background research or
environmental scans, evaluating the suitability of available data, performing needed analysis
and data modeling, calculating performance under the spending trends, and researching
drivers of spending growth trends;
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(4) assist health care entities subject to the targets with reporting of data, internal analysis
of spending growth trends, and, as necessary, methodological issues;
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(5) synthesize information and report to the commission; and
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(6) make appointments and staff the Health Care Affordability Advisory Council under
section 62J.0414.
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(b) In carrying out the duties required by this section, the commissioner may contract
with entities with expertise in health economic, health finance, and actuarial science.
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(a) The commission or commissioner may request
that a state agency provide the commission with data as defined in sections 62J.04 and
295.52 in a usable format as requested by the commission, at no cost to the commission.
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(b) The commission may request from a state agency unique or custom data sets, and
the agency may charge the commission for providing the data at the same rate the agency
would charge any other public or private entity. The commission may grant the commissioner
access to this data.
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(c) Any information provided to the commission or commissioner by a state agency
must be de-identified. For purposes of this subdivision, "de-identified" means the process
used to prevent the identity of a person from being connected with information and ensuring
all identifiable information has been removed.
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(d) Any data submitted to the commission or the commissioner shall retain their original
classification under the Minnesota Data Practices Act in chapter 13.
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(e) The commissioner, under the authority of chapter 62J, may collect data necessary
for the performance of its duties, and shall collect this data in a form and manner that ensures
the collection of high-quality, transparent data.
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(a) The commission shall monitor
the administration and reform of the health care delivery and payment systems in the state.
The commission shall:
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(1) set health care spending growth targets for the state;
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(2) enhance the transparency of provider organizations;
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(3) monitor the adoption and effectiveness of alternative payment methodologies;
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(4) foster innovative health care delivery and payment models that lower health care
cost growth while improving the quality of patient care;
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(5) monitor and review the impact of changes within the health care marketplace; and
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(6) monitor patient access to necessary health care services.
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(b) The commission shall establish goals to reduce health care disparities in racial and
ethnic communities and to ensure access to quality care for persons with disabilities or with
chronic or complex health conditions.
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The commission shall monitor
efforts to reform the health care delivery and payment system in Minnesota to understand
emerging trends in the commercial health insurance market, including large self-insured
employers and the state's public health care programs, in order to identify opportunities for
state action to achieve:
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(1) improved patient experience of care, including quality, access to care, and satisfaction;
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(2) improved health of all populations, including a reduction in health disparities; and
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(3) a reduction in the growth of health care costs.
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The commission
shall make periodic recommendations for legislative policy, market, or any other reforms
to:
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(1) lower the rate of growth in commercial health care costs and public health care
program spending in the state;
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(2) positively impact the state's rankings in the areas listed in this subdivision and
subdivision 2; and
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(3) improve the quality and value of care for all Minnesotans, and for specific populations
adversely affected by health disparities.
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The commission is responsible for the
development, establishment, and operation of the health care spending growth target program,
determining the health care entities subject to health care spending growth targets, and
reporting on progress toward targets to the legislature and the public.
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(a) The commission shall develop and
maintain the health care spending growth target program, and report to the legislature and
the public on progress toward achieving growth targets. The commission shall conduct all
activities necessary for the successful implementation of the program, in order to limit health
care spending growth. The commission shall:
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(1) establish a statement of purpose;
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(2) develop a methodology to establish health care spending growth targets and the
economic indicators to be used in establishing the initial and subsequent target levels;
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(3) establish health care spending growth targets that:
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(i) use a clear and operational definition of total state health care spending;
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(ii) promote a predictable and sustainable rate of growth for total health care spending,
as measured by an established economic indicator, such as the rate of increase in the state
economy, the personal income of state residents, or a combination;
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(iii) apply to all health care providers and all health plan companies in the state's health
care system; and
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(iv) are measurable on a per capita basis, statewide basis, health plan basis, and health
care provider basis; and
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(4) establish a methodology for calculating health care cost growth that:
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(i) allows measurement statewide and for each health care provider and health plan
company, and at the discretion of the commission allows accounting for variability by age
and sex;
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(ii) takes into consideration the need for variability in targets across public and private
payers;
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(iii) incorporates health equity considerations; and
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(iv) considers the impact of targets on health care access and disparities.
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(b) The commission, when developing this methodology, shall determine which health
care entities are subject to targets, and at what level of aggregation.
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The commission shall identify the data to be used for
tracking performance toward achieving health care spending growth targets, and adopt
methods of data collection. In identifying data and methods, the commission shall:
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(1) consider the availability, timeliness, quality, and usefulness of existing data;
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(2) assess the need for additional investments in data collection, data validation, or
analysis capacity to support efficient collection and aggregation of data to support the
commission's activities;
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(3) limit the reporting burden to the greatest extent possible; and
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(4) identify and define the health care entities that are required to report to the
commissioner.
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The commission shall establish requirements for
health care providers and health plan companies to report data and other information
necessary to calculate health care cost growth. Health care providers and health plans must
report data in the form and manner established by the commission.
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(a) The commission, by June 15, 2024, shall
establish annual health care spending growth targets consistent with the methodology in
subdivision 2 for each of the next five calendar years, with the goal of limiting health care
spending growth. The commission may continue to establish annual health care spending
growth targets for subsequent years.
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(b) The commission shall regularly review all components of the program methodology,
including economic indicators and other factors, and, as appropriate, revise established
health care spending growth target levels. Any changes to health care spending growth
target levels require a two-thirds majority vote of the commission.
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(a) In developing the health care
spending growth target program, the commission may:
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(1) evaluate and ensure that the program does not place a disproportionate burden on
communities most impacted by health disparities, the providers who primarily serve
communities most impacted by health disparities, or individuals who reside in rural areas
or have high health care needs;
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(2) consider payment models that help ensure financial sustainability of rural health care
delivery systems and the ability to provide population health;
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(3) consider the addition of quality of care performance measures or minimum primary
care spending goals;
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(4) allow setting growth targets that encourage an individual health care entity to serve
populations with greater health care risks by incorporating:
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(i) a risk factor adjustment reflecting the health status of the entity's patient mix; and
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(ii) an equity adjustment accounting for the social determinants of health and other
factors related to health equity for the entity's patient mix;
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(5) ensure that growth targets:
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(i) encourage the growth of the Minnesota health care workforce, including the need to
provide competitive wages and benefits;
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(ii) do not limit the use of collective bargaining or place a floor or ceiling on health care
workforce compensation; and
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(iii) promote workforce stability and maintain high-quality health care jobs; and
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(6) consult with stakeholders representing patients, health care providers, payers of
health care services, and others.
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(b) Based on an analysis of drivers of health care spending by the commissioner and
evidence from public testimony, the commissioner shall explore strategies, new policies,
and future legislative proposals that can contribute to achieving health care spending growth
targets or limiting health care spending growth without increasing disparities in access to
health care, including the establishment of accountability mechanisms for health care entities.
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(a) The commission shall submit the reports specified in this section
to the chairs and ranking minority members of the legislative committees with primary
jurisdiction over health care. These reports must be made available to the public.
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(b) The commission shall submit written progress updates about the development and
implementation of the health care growth target program by February 15, 2024, and February
15, 2025. The updates must include reporting on commission membership and activities,
program design decisions, planned timelines for implementation of the program, progress
of implementation, and comprehensive methodological details underlying program design
decisions.
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(c) The commission shall submit by March 31, 2026, and by March 31 annually thereafter,
reports on health care spending trends related to the health care growth targets. The
commission may delegate preparation of the reports to the commissioner and any contractors
the commissioner determines are necessary. The reports must include:
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(1) aggregate spending growth for entities subject to health care growth targets relative
to established target levels;
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(2) findings from the analyses of cost drivers of health care spending growth;
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(3) estimates of the impact of health care spending growth on Minnesota residents,
including for those communities most impacted by health disparities, including an analysis
of Minnesota residents' access to insurance and care, the value of health care, and the state's
ability to pursue other spending priorities;
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(4) the potential and observed impact of the health care growth targets on the financial
viability of the rural health care delivery system;
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(5) changes in the health care spending growth methodology under consideration;
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(6) recommended policy changes that may affect health care spending growth trends,
including broader and more transparent adoption of value-based payment arrangements;
and
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(7) an overview of health care entities subject to health care growth targets that have
implemented or completed a performance improvement plan.
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(a) For purposes of this section, the following definitions
have the meanings given.
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(b) "Council" means the Health Care Affordability Advisory Council.
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