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Minnesota Legislature

Office of the Revisor of Statutes

SF 1987

as introduced - 88th Legislature (2013 - 2014) Posted on 02/28/2014 08:56am

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

Current Version - as introduced

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A bill for an act
relating to human services; modifying reimbursement rates for intermediate
care facilities for persons with developmental disabilities and home and
community-based services providers; appropriating money; amending Minnesota
Statutes 2012, section 256B.5012, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2012, section 256B.5012, is amended by adding a
subdivision to read:


new text begin Subd. 16. new text end

new text begin ICF/DD rate increases effective July 1, 2014. new text end

new text begin (a) For the rate period
beginning July 1, 2014, the commissioner shall increase operating payments for each
facility reimbursed under this section equal to five percent of the operating payment
rates in effect on June 30, 2014.
new text end

new text begin (b) For each facility, the commissioner shall apply the rate increase based on
occupied beds, using the percentage specified in this subdivision multiplied by the total
payment rate, including the variable rate but excluding the property-related payment
rate in effect on the preceding date. The total rate increase shall include the adjustment
provided in section 256B.501, subdivision 12.
new text end

new text begin (c) Facilities that receive a rate increase under this subdivision shall use 75 percent
of the additional revenue to increase compensation-related costs for employees directly
employed by the facility on or after the effective date of the rate adjustments, except:
new text end

new text begin (1) persons employed in the central office of a corporation or entity that has an
ownership interest in the facility or exercises control over the facility; and
new text end

new text begin (2) persons paid by the facility under a management contract.
new text end

new text begin (d) Compensation-related costs include:
new text end

new text begin (1) wages and salaries;
new text end

new text begin (2) the employer's share of FICA taxes, Medicare taxes, state and federal
unemployment taxes, workers' compensation, and mileage reimbursement;
new text end

new text begin (3) the employer's share of health and dental insurance, life insurance, disability
insurance, long-term care insurance, uniform allowance, pensions, and contributions to
employee retirement accounts; and
new text end

new text begin (4) other benefits provided and workforce needs, including the recruiting and
training of employees as specified in the distribution plan required under paragraph (h).
new text end

new text begin (e) For public employees, the increase for wages and benefits for certain staff is
available and pay rates must be increased only to the extent that the increases comply with
laws governing public employees' collective bargaining. Money received by a facility for
pay increases for public employees under this subdivision may be used only for increases
implemented within one month of the effective date of the rate increase and must not be
used for increases implemented prior to that date.
new text end

new text begin (f) The commissioner shall amend state grant contracts that include direct
personnel-related grant expenditures to include the allocation for the portion of the contract
related to employee compensation. Grant contracts for compensation-related services
must be amended to pass through these adjustments within 60 days of the effective date of
the increase and must be retroactive to the effective date of the rate adjustment.
new text end

new text begin (g) The Board on Aging and its area agencies on aging shall amend their grants that
include direct personnel-related grant expenditures to include the rate adjustment for the
portion of the grant related to employee compensation. Grants for compensation-related
services must be amended to pass through these adjustments within 60 days of the effective
date of the increase and must be retroactive to the effective date of the rate adjustment.
new text end

new text begin (h) A facility that receives a rate adjustment under paragraph (a) that is subject to
paragraphs (c) and (d) shall prepare, and produce for the commissioner upon request, a
plan that specifies the amount of money the facility expects to receive that is subject to
the requirements of paragraphs (c) and (d), as well as how that money will be distributed
to increase compensation for employees.
new text end

new text begin (i) Within six months after the effective date of the rate adjustment, the facility shall
post the distribution plan required under paragraph (h) for a period of at least six weeks in
an area of the facility's operation to which all eligible employees have access and shall
provide instructions for employees who believe they have not received the wage and
other compensation-related increases specified in the distribution plan. Instructions must
include a mailing address, e-mail address, and telephone number that an employee may
use to contact the commissioner or the commissioner's representative. Facilities shall also
make assurances to the commissioner and counties with whom they have a contract that
they have complied with this subdivision.
new text end

Sec. 2. new text begin PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY
1, 2014.
new text end

new text begin (a) The commissioner of human services shall increase reimbursement rates, grants,
allocations, individual limits, and rate limits, as applicable, by five percent for the rate
period beginning July 1, 2014, for services rendered on or after those dates. County or
tribal contracts for services specified in this section must be amended to pass through
these rate increases within 60 days of the effective date.
new text end

new text begin (b) The rate changes described in this section must be provided to:
new text end

new text begin (1) home and community-based waivered services for persons with developmental
disabilities or related conditions, including consumer-directed community supports, under
Minnesota Statutes, section 256B.501;
new text end

new text begin (2) waivered services under community alternatives for disabled individuals,
including consumer-directed community supports, under Minnesota Statutes, section
256B.49;
new text end

new text begin (3) community alternative care waivered services, including consumer-directed
community supports, under Minnesota Statutes, section 256B.49;
new text end

new text begin (4) brain injury waivered services, including consumer-directed community
supports, under Minnesota Statutes, section 256B.49;
new text end

new text begin (5) home and community-based waivered services for the elderly under Minnesota
Statutes, section 256B.0915;
new text end

new text begin (6) nursing services and home health services under Minnesota Statutes, section
256B.0625, subdivision 6a;
new text end

new text begin (7) personal care services and qualified professional supervision of personal care
services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
new text end

new text begin (8) private duty nursing services under Minnesota Statutes, section 256B.0625,
subdivision 7;
new text end

new text begin (9) day training and habilitation services for adults with developmental disabilities
or related conditions under Minnesota Statutes, sections 252.41 to 252.46, including the
additional cost of rate adjustments on day training and habilitation services, provided as a
social service, under Minnesota Statutes, section 256M.60;
new text end

new text begin (10) alternative care services under Minnesota Statutes, section 256B.0913;
new text end

new text begin (11) living skills training programs for persons with intractable epilepsy who need
assistance in the transition to independent living under Laws 1988, chapter 689;
new text end

new text begin (12) semi-independent living services (SILS) under Minnesota Statutes, section
252.275, including SILS funding under county social services grants formerly funded
under Minnesota Statutes, chapter 256M;
new text end

new text begin (13) consumer support grants under Minnesota Statutes, section 256.476;
new text end

new text begin (14) family support grants under Minnesota Statutes, section 252.32;
new text end

new text begin (15) housing access grants under Minnesota Statutes, section 256B.0658;
new text end

new text begin (16) self-advocacy grants under Laws 2009, chapter 101; and
new text end

new text begin (17) technology grants under Laws 2009, chapter 79.
new text end

new text begin (c) For individual service rates determined under Minnesota Statutes, section
256B.4914, the commissioner shall adjust the calculations in subdivisions 6, 7, 8, and
9, after any adjustments under Minnesota Statutes, section 256B.4914, subdivision 16,
to reflect a five percent increase.
new text end

new text begin (d) The commissioner shall increase the banding values for all service recipients as
defined in Minnesota Statutes, section 256B.4913, subdivision 4a, paragraph (b), by five
percent, effective July 1, 2014.
new text end

new text begin (e) A managed care plan receiving state payments for the services in this section
must include these increases in their payments to providers. To implement the rate increase
in this section, capitation rates paid by the commissioner to managed care organizations
under Minnesota Statutes, section 256B.69, shall reflect a five percent increase for the
services specified in this section for the period beginning July 1, 2014.
new text end

new text begin (f) Counties shall increase the budget for each recipient of consumer-directed
community supports by the amounts in paragraph (a) on the effective dates in paragraph (a).
new text end

new text begin (g) Providers that receive a rate increase under this section shall use 75 percent of
the additional revenue to increase compensation-related costs for employees directly
employed by the program on or after the effective date of the rate adjustments, except:
new text end

new text begin (1) persons employed in the central office of a corporation or entity that has an
ownership interest in the provider or exercises control over the provider; and
new text end

new text begin (2) persons paid by the provider under a management contract.
new text end

new text begin (h) Compensation-related costs include:
new text end

new text begin (1) wages and salaries;
new text end

new text begin (2) the employer's share of FICA taxes, Medicare taxes, state and federal
unemployment taxes, workers' compensation, and mileage reimbursement;
new text end

new text begin (3) the employer's share of health and dental insurance, life insurance, disability
insurance, long-term care insurance, uniform allowance, pensions, and contributions to
employee retirement accounts; and
new text end

new text begin (4) other benefits provided and workforce needs, including the recruiting and
training of employees as specified in the distribution plan required under paragraph (l).
new text end

new text begin (i) For public employees, the increase for wages and benefits for certain staff is
available and pay rates must be increased only to the extent that the increases comply with
laws governing public employees' collective bargaining. Money received by a provider
for pay increases for public employees under this section may be used only for increases
implemented within one month of the effective date of the rate increase and must not be
used for increases implemented prior to that date.
new text end

new text begin (j) The commissioner shall amend state grant contracts that include direct
personnel-related grant expenditures to include the allocation for the portion of the contract
related to employee compensation. Grant contracts for compensation-related services
must be amended to pass through these adjustments within 60 days of the effective date of
the increase and must be retroactive to the effective date of the rate adjustment.
new text end

new text begin (k) The Board on Aging and its area agencies on aging shall amend their grants that
include direct personnel-related grant expenditures to include the rate adjustment for the
portion of the grant related to employee compensation. Grants for compensation-related
services must be amended to pass through these adjustments within 60 days of the effective
date of the increase and must be retroactive to the effective date of the rate adjustment.
new text end

new text begin (l) A provider that receives a rate adjustment under paragraph (a) that is subject to
paragraphs (g) and (h) shall prepare, and produce for the commissioner upon request, a
plan that specifies the amount of money the provider expects to receive that is subject to
the requirements of paragraphs (g) and (h), as well as how that money will be distributed
to increase compensation for employees.
new text end

new text begin (m) Within six months after the effective date of each rate adjustment, the provider
shall post the distribution plan required under paragraph (l) for a period of at least six
weeks in an area of the provider's operation to which all eligible employees have access
and shall provide instructions for employees who believe they have not received the wage
and other compensation-related increases specified in the distribution plan. Instructions
must include a mailing address, e-mail address, and telephone number that the employee
may use to contact the commissioner or the commissioner's representative. Providers shall
also make assurances to the commissioner and counties with whom they have a contract
that they have complied with this section.
new text end

new text begin (n) For providers with rates established under Minnesota Statutes, section 256B.4914,
and with a banding value established under Minnesota Statutes, section 256B.4913,
subdivision 4a, paragraph (b), that is greater than the rate established under Minnesota
Statutes, section 256B.4914, the requirements of paragraphs (g) and (h) of this section
shall only apply to the portion of the rate increase that exceeds the difference between
the rate established under Minnesota Statutes, section 256B.4914, and the banding value
established under Minnesota Statutes, section 256B.4913, subdivision 4a, paragraph (b).
new text end

Sec. 3. new text beginAPPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the commissioner of human services
for the fiscal year beginning July 1, 2014, for the purposes of sections 1 and 2.
new text end