1.1                          A bill for an act 
  1.2             relating to human services; providing for certain 
  1.3             rates imposed on intermediate care facilities. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [RATE CLARIFICATION.] 
  1.6      For the rate years beginning October 1, 1997, and October 
  1.7   1, 1998, the commissioner of human services shall exempt 
  1.8   intermediate care facilities for the mentally retarded (ICF/MR) 
  1.9   from reductions to the payment rates under Minnesota Statutes, 
  1.10  section 256B.501, subdivision 5b, paragraph (d), clause (6), if 
  1.11  the facility: 
  1.12     (1) has had a settle-up payment rate established in the 
  1.13  reporting year preceding the rate year for the one-time rate 
  1.14  adjustment; 
  1.15     (2) is a newly established facility; 
  1.16     (3) is an A to B conversion that has been converted under 
  1.17  Minnesota Statutes, section 252.292, since rate year 1990; 
  1.18     (4) has a payment rate subject to a community conversion 
  1.19  project under Minnesota Statutes, section 252.292; 
  1.20     (5) has a payment rate established under Minnesota 
  1.21  Statutes, section 245A.12 or 245A.13; 
  1.22     (6) is a facility created by the relocation of more than 25 
  1.23  percent of the capacity of a related facility during the 
  1.24  reporting year; or 
  2.1      (7) is a downsizing project that was authorized by 
  2.2   Minnesota Statutes, section 252.291, subdivision 3, in the 
  2.3   reporting year preceding the rate year. 
  2.4      Sec. 2.  [ICF/MR REIMBURSEMENT OCTOBER 1, 1997, TO OCTOBER 
  2.5   1, 1999.] 
  2.6      (a) Notwithstanding any contrary provision in Minnesota 
  2.7   Statutes, section 256B.501, for the rate years beginning October 
  2.8   1, 1997, and October 1, 1998, the commissioner of human services 
  2.9   shall, for purposes of the spend-up limit, array facilities 
  2.10  within each grouping established under Minnesota Statutes, 
  2.11  section 256B.501, subdivision 5b, paragraph (d), clause (4), by 
  2.12  each facility's cost per resident day.  A facility's cost per 
  2.13  resident day shall be determined by dividing its allowable 
  2.14  historical general operating cost for the reporting year by the 
  2.15  facility's resident days for the reporting year.  Facilities 
  2.16  with a cost per resident day at or above the median shall be 
  2.17  limited to the lesser of: 
  2.18     (1) the current reporting year's cost per resident day; or 
  2.19     (2) the prior report year's cost per resident day plus the 
  2.20  inflation factor as established under Minnesota Statutes, 
  2.21  section 256B.501, subdivision 3c, clause (2), increased by three 
  2.22  percentage points. 
  2.23  In no case shall the amount of this reduction exceed:  three 
  2.24  percent for a facility with a licensed capacity greater than 16 
  2.25  beds; two percent for a facility with a licensed capacity of 9 
  2.26  to 16 beds; and one percent for a facility with a licensed 
  2.27  capacity of 8 or fewer beds. 
  2.28     (b) The commissioner shall not apply the limits established 
  2.29  under Minnesota Statutes, section 256B.501, subdivision 5b, 
  2.30  paragraph (d), clause (8), for the rate years beginning October 
  2.31  1, 1997, and October 1, 1998.