2001 Minnesota Statutes

     256B.5012 ICF/MR payment system implementation. 

    Subdivision 1.    Total payment rate.  The total payment 
 rate effective October 1, 2000, for existing ICF/MR facilities 
 is the total of the operating payment rate and the property 
 payment rate plus inflation factors as defined in this section.  
 The initial rate year shall run from October 1, 2000, through 
 December 31, 2001.  Subsequent rate years shall run from January 
 1 through December 31 beginning in the year 2002. 

    Subd. 2.    Operating payment rate.  (a) The operating 
 payment rate equals the facility's total payment rate in effect 
 on September 30, 2000, minus the property rate.  The operating 
 payment rate includes the special operating rate and the 
 efficiency incentive in effect as of September 30, 2000.  Within 
 the limits of appropriations specifically for this purpose, the 
 operating payment shall be increased for each rate year by the 
 annual percentage change in the Employment Cost Index for 
 Private Industry Workers - Total Compensation, as forecasted by 
 the commissioner of finance's economic consultant, in the second 
 quarter of the calendar year preceding the start of each rate 
 year.  In the case of the initial rate year beginning October 1, 
 2000, and continuing through December 31, 2001, the percentage 
 change shall be based on the percentage change in the Employment 
 Cost Index for Private Industry Workers - Total Compensation for 
 the 15-month period beginning October 1, 2000, as forecast by 
 Data Resources, Inc., in the first quarter of 2000. 

    (b) Effective October 1, 2000, the operating payment rate 
 shall be adjusted to reflect an occupancy rate equal to 100 
 percent of the facility's capacity days as of September 30, 2000.

    Subd. 3.    Property payment rate.  (a) The property 
 payment rate effective October 1, 2000, is based on the 
 facility's modified property payment rate in effect on September 
 30, 2000.  The modified property payment rate is the actual 
 property payment rate exclusive of the effect of gains or losses 
 on disposal of capital assets or adjustments for excess 
 depreciation claims.  Effective October 1, 2000, a facility 
 minimum property rate of $8.13 shall be applied to all existing 
 ICF/MR facilities.  Facilities with a modified property payment 
 rate effective September 30, 2000, which is below the minimum 
 property rate shall receive an increase effective October 1, 
 2000, equal to the difference between the minimum property 
 payment rate and the modified property payment rate in effect as 
 of September 30, 2000.  Facilities with a modified property 
 payment rate at or above the minimum property payment rate 
 effective September 30, 2000, shall receive the modified 
 property payment rate effective October 1, 2000. 

    (b) Within the limits of appropriations specifically for 
 this purpose, facility property payment rates shall be increased 
 annually for inflation, effective January 1, 2002.  The increase 
 shall be based on each facility's property payment rate in 
 effect on September 30, 2000.  Modified property payment rates 
 effective September 30, 2000, shall be arrayed from highest to 
 lowest before applying the minimum property payment rate in 
 paragraph (a).  For modified property payment rates at the 90th 
 percentile or above, the annual inflation increase shall be 
 zero.  For modified property payment rates below the 90th 
 percentile but equal to or above the 75th percentile, the annual 
 inflation increase shall be one percent.  For modified property 
 payment rates below the 75th percentile, the annual inflation 
 increase shall be two percent.  

    Subd. 4.    ICF/MR rate increases beginning July 1, 2001, 
 and July 1, 2002.  (a) For the rate years beginning July 1, 
 2001, and July 1, 2002, the commissioner shall make available to 
 each facility reimbursed under this section an adjustment to the 
 total operating payment rate of 3.5 percent.  Of this 
 adjustment, two-thirds must be used as provided under paragraph 
 (b) and one-third must be used for operating costs. 

    (b) The adjustment under this paragraph must be used to 
 increase the wages and benefits and pay associated costs of all 
 employees except administrative and central office employees, 
 provided that this increase must be used only for wage and 
 benefit increases implemented on or after the first day of the 
 rate year and must not be used for increases implemented prior 
 to that date. 

    (c) For each facility, the commissioner shall make 
 available an adjustment using the percentage specified in 
 paragraph (a) multiplied by the total payment rate, excluding 
 the property-related payment rate, in effect on the preceding 
 June 30.  The total payment rate shall include the adjustment 
 provided in section 256B.501, subdivision 12. 

    (d) A facility whose payment rates are governed by closure 
 agreements, receivership agreements, or Minnesota Rules, part 
 9553.0075, is not eligible for an adjustment otherwise granted 
 under this subdivision.  

    (e) A facility may apply for the payment rate adjustment 
 provided under paragraph (b).  The application must be made to 
 the commissioner and contain a plan by which the facility will 
 distribute the adjustment in paragraph (b) to employees of the 
 facility.  For facilities in which the employees are represented 
 by an exclusive bargaining representative, an agreement 
 negotiated and agreed to by the employer and the exclusive 
 bargaining representative constitutes the plan.  A negotiated 
 agreement may constitute the plan only if the agreement is 
 finalized after the date of enactment of all rate increases for 
 the rate year.  The commissioner shall review the plan to ensure 
 that the payment rate adjustment per diem is used as provided in 
 this subdivision.  To be eligible, a facility must submit its 
 plan by March 31, 2002, and March 31, 2003, respectively.  If a 
 facility's plan is effective for its employees after the first 
 day of the applicable rate year that the funds are available, 
 the payment rate adjustment per diem is effective the same date 
 as its plan. 

    (f) A copy of the approved distribution plan must be made 
 available to all employees by giving each employee a copy or by 
 posting it in an area of the facility to which all employees 
 have access.  If an employee does not receive the wage and 
 benefit adjustment described in the facility's approved plan and 
 is unable to resolve the problem with the facility's management 
 or through the employee's union representative, the employee may 
 contact the commissioner at an address or telephone number 
 provided by the commissioner and included in the approved plan. 

    HIST: 1999 c 245 art 3 s 33; 1Sp2001 c 9 art 5 s 30