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Chapter 256B

Section 256B.69

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256B.69 PREPAYMENT DEMONSTRATION PROJECT.
    Subdivision 1. Purpose. The commissioner of human services shall establish a medical
assistance demonstration project to determine whether prepayment combined with better
management of health care services is an effective mechanism to ensure that all eligible individuals
receive necessary health care in a coordinated fashion while containing costs. For the purposes of
this project, waiver of certain statutory provisions is necessary in accordance with this section.
    Subd. 2. Definitions. For the purposes of this section, the following terms have the meanings
given.
(a) "Commissioner" means the commissioner of human services. For the remainder of this
section, the commissioner's responsibilities for methods and policies for implementing the project
will be proposed by the project advisory committees and approved by the commissioner.
(b) "Demonstration provider" means a health maintenance organization, community
integrated service network, or accountable provider network authorized and operating under
chapter 62D, 62N, or 62T that participates in the demonstration project according to criteria,
standards, methods, and other requirements established for the project and approved by the
commissioner. For purposes of this section, a county board, or group of county boards operating
under a joint powers agreement, is considered a demonstration provider if the county or group of
county boards meets the requirements of section 256B.692. Notwithstanding the above, Itasca
County may continue to participate as a demonstration provider until July 1, 2004.
(c) "Eligible individuals" means those persons eligible for medical assistance benefits as
defined in sections 256B.055, 256B.056, and 256B.06.
(d) "Limitation of choice" means suspending freedom of choice while allowing eligible
individuals to choose among the demonstration providers.
    Subd. 3. Geographic area. The commissioner shall designate the geographic areas in which
eligible individuals may be included in the medical assistance prepayment programs.
    Subd. 3a. County authority. (a) The commissioner, when implementing the general
assistance medical care, or medical assistance prepayment program within a county, must include
the county board in the process of development, approval, and issuance of the request for
proposals to provide services to eligible individuals within the proposed county. County boards
must be given reasonable opportunity to make recommendations regarding the development,
issuance, review of responses, and changes needed in the request for proposals. The commissioner
must provide county boards the opportunity to review each proposal based on the identification
of community needs under chapters 145A and 256E and county advocacy activities. If a county
board finds that a proposal does not address certain community needs, the county board and
commissioner shall continue efforts for improving the proposal and network prior to the approval
of the contract. The county board shall make recommendations regarding the approval of local
networks and their operations to ensure adequate availability and access to covered services.
The provider or health plan must respond directly to county advocates and the state prepaid
medical assistance ombudsperson regarding service delivery and must be accountable to the state
regarding contracts with medical assistance and general assistance medical care funds. The county
board may recommend a maximum number of participating health plans after considering the size
of the enrolling population; ensuring adequate access and capacity; considering the client and
county administrative complexity; and considering the need to promote the viability of locally
developed health plans. The county board or a single entity representing a group of county boards
and the commissioner shall mutually select health plans for participation at the time of initial
implementation of the prepaid medical assistance program in that county or group of counties and
at the time of contract renewal. The commissioner shall also seek input for contract requirements
from the county or single entity representing a group of county boards at each contract renewal
and incorporate those recommendations into the contract negotiation process. The commissioner,
in conjunction with the county board, shall actively seek to develop a mutually agreeable
timetable prior to the development of the request for proposal, but counties must agree to initial
enrollment beginning on or before January 1, 1999, in either the prepaid medical assistance and
general assistance medical care programs or county-based purchasing under section 256B.692.
At least 90 days before enrollment in the medical assistance and general assistance medical care
prepaid programs begins in a county in which the prepaid programs have not been established,
the commissioner shall provide a report to the chairs of senate and house committees having
jurisdiction over state health care programs which verifies that the commissioner complied with
the requirements for county involvement that are specified in this subdivision.
(b) At the option of the county board, the board may develop contract requirements related
to the achievement of local public health goals to meet the health needs of medical assistance
and general assistance medical care enrollees. These requirements must be reasonably related
to the performance of health plan functions and within the scope of the medical assistance and
general assistance medical care benefit sets. If the county board and the commissioner mutually
agree to such requirements, the department shall include such requirements in all health plan
contracts governing the prepaid medical assistance and general assistance medical care programs
in that county at initial implementation of the program in that county and at the time of contract
renewal. The county board may participate in the enforcement of the contract provisions related
to local public health goals.
(c) For counties in which prepaid medical assistance and general assistance medical care
programs have not been established, the commissioner shall not implement those programs if
a county board submits acceptable and timely preliminary and final proposals under section
256B.692, until county-based purchasing is no longer operational in that county. For counties in
which prepaid medical assistance and general assistance medical care programs are in existence
on or after September 1, 1997, the commissioner must terminate contracts with health plans
according to section 256B.692, subdivision 5, if the county board submits and the commissioner
accepts preliminary and final proposals according to that subdivision. The commissioner is not
required to terminate contracts that begin on or after September 1, 1997, according to section
256B.692 until two years have elapsed from the date of initial enrollment.
(d) In the event that a county board or a single entity representing a group of county boards
and the commissioner cannot reach agreement regarding: (i) the selection of participating health
plans in that county; (ii) contract requirements; or (iii) implementation and enforcement of county
requirements including provisions regarding local public health goals, the commissioner shall
resolve all disputes after taking into account the recommendations of a three-person mediation
panel. The panel shall be composed of one designee of the president of the association of
Minnesota counties, one designee of the commissioner of human services, and one designee of
the commissioner of health.
(e) If a county which elects to implement county-based purchasing ceases to implement
county-based purchasing, it is prohibited from assuming the responsibility of county-based
purchasing for a period of five years from the date it discontinues purchasing.
(f) Notwithstanding the requirement in this subdivision that a county must agree to
initial enrollment on or before January 1, 1999, the commissioner shall grant a delay in the
implementation of the county-based purchasing authorized in section 256B.692 until federal
waiver authority and approval has been granted, if the county or group of counties has submitted
a preliminary proposal for county-based purchasing by September 1, 1997, has not already
implemented the prepaid medical assistance program before January 1, 1998, and has submitted a
written request for the delay to the commissioner by July 1, 1998. In order for the delay to be
continued, the county or group of counties must also submit to the commissioner the following
information by December 1, 1998. The information must:
(1) identify the proposed date of implementation, as determined under section 256B.692,
subdivision 5
;
(2) include copies of the county board resolutions which demonstrate the continued
commitment to the implementation of county-based purchasing by the proposed date. County
board authorization may remain contingent on the submission of a final proposal which meets the
requirements of section 256B.692, subdivision 5, paragraph (b);
(3) demonstrate actions taken for the establishment of a governance structure between the
participating counties and describe how the fiduciary responsibilities of county-based purchasing
will be allocated between the counties, if more than one county is involved in the proposal;
(4) describe how the risk of a deficit will be managed in the event expenditures are greater
than total capitation payments. This description must identify how any of the following strategies
will be used:
(i) risk contracts with licensed health plans;
(ii) risk arrangements with providers who are not licensed health plans;
(iii) risk arrangements with other licensed insurance entities; and
(iv) funding from other county resources;
(5) include, if county-based purchasing will not contract with licensed health plans or
provider networks, letters of interest from local providers in at least the categories of hospital,
physician, mental health, and pharmacy which express interest in contracting for services. These
letters must recognize any risk transfer identified in clause (4), item (ii); and
(6) describe the options being considered to obtain the administrative services required in
section 256B.692, subdivision 3, clauses (3) and (5).
(g) For counties which receive a delay under this subdivision, the final proposals required
under section 256B.692, subdivision 5, paragraph (b), must be submitted at least six months prior
to the requested implementation date. Authority to implement county-based purchasing remains
contingent on approval of the final proposal as required under section 256B.692.
(h) If the commissioner is unable to provide county-specific, individual-level fee-for-service
claims to counties by June 4, 1998, the commissioner shall grant a delay under paragraph
(f) of up to 12 months in the implementation of county-based purchasing, and shall require
implementation not later than January 1, 2000. In order to receive an extension of the proposed
date of implementation under this paragraph, a county or group of counties must submit a written
request for the extension to the commissioner by August 1, 1998, must submit the information
required under paragraph (f) by December 1, 1998, and must submit a final proposal as provided
under paragraph (g).
(i) Notwithstanding other requirements of this subdivision, the commissioner shall not
require the implementation of the county-based purchasing authorized in section 256B.692 until
six months after federal waiver approval has been obtained for county-based purchasing, if the
county or counties have submitted the final plan as required in section 256B.692, subdivision
5
. The commissioner shall allow the county or counties which submitted information under
section 256B.692, subdivision 5, to submit supplemental or additional information which was not
possible to submit by April 1, 1999. A county or counties shall continue to submit the required
information and substantive detail necessary to obtain a prompt response and waiver approval. If
amendments to the final plan are necessary due to the terms and conditions of the waiver approval,
the commissioner shall allow the county or group of counties 60 days to make the necessary
amendments to the final plan and shall not require implementation of the county-based purchasing
until six months after the revised final plan has been submitted.
    Subd. 3b. Provision of data to county boards. The commissioner, in consultation with
representatives of county boards of commissioners shall identify program information and
data necessary on an ongoing basis for county boards to: (1) make recommendations to the
commissioner related to state purchasing under the prepaid medical assistance program; and (2)
effectively administer county-based purchasing. This information and data must include, but is
not limited to, county-specific, individual-level fee-for-service and prepaid health plan claims
information.
    Subd. 4. Limitation of choice. (a) The commissioner shall develop criteria to determine
when limitation of choice may be implemented in the experimental counties. The criteria shall
ensure that all eligible individuals in the county have continuing access to the full range of
medical assistance services as specified in subdivision 6.
(b) The commissioner shall exempt the following persons from participation in the project,
in addition to those who do not meet the criteria for limitation of choice:
(1) persons eligible for medical assistance according to section 256B.055, subdivision 1;
(2) persons eligible for medical assistance due to blindness or disability as determined by the
Social Security Administration or the state medical review team, unless:
(i) they are 65 years of age or older; or
(ii) they reside in Itasca County or they reside in a county in which the commissioner
conducts a pilot project under a waiver granted pursuant to section 1115 of the Social Security Act;
(3) recipients who currently have private coverage through a health maintenance
organization;
(4) recipients who are eligible for medical assistance by spending down excess income for
medical expenses other than the nursing facility per diem expense;
(5) recipients who receive benefits under the Refugee Assistance Program, established under
United States Code, title 8, section 1522(e);
(6) children who are both determined to be severely emotionally disturbed and receiving
case management services according to section 256B.0625, subdivision 20;
(7) adults who are both determined to be seriously and persistently mentally ill and received
case management services according to section 256B.0625, subdivision 20;
(8) persons eligible for medical assistance according to section 256B.057, subdivision 10; and
(9) persons with access to cost-effective employer-sponsored private health insurance
or persons enrolled in a non-Medicare individual health plan determined to be cost-effective
according to section 256B.0625, subdivision 15.
Children under age 21 who are in foster placement may enroll in the project on an elective basis.
Individuals excluded under clauses (1), (6), and (7) may choose to enroll on an elective basis. The
commissioner may enroll recipients in the prepaid medical assistance program for seniors who are
(1) age 65 and over, and (2) eligible for medical assistance by spending down excess income.
(c) The commissioner may allow persons with a one-month spenddown who are otherwise
eligible to enroll to voluntarily enroll or remain enrolled, if they elect to prepay their monthly
spenddown to the state.
(d) The commissioner may require those individuals to enroll in the prepaid medical
assistance program who otherwise would have been excluded under paragraph (b), clauses (1),
(3), and (8), and under Minnesota Rules, part 9500.1452, subpart 2, items H, K, and L.
(e) Before limitation of choice is implemented, eligible individuals shall be notified and after
notification, shall be allowed to choose only among demonstration providers. The commissioner
may assign an individual with private coverage through a health maintenance organization,
to the same health maintenance organization for medical assistance coverage, if the health
maintenance organization is under contract for medical assistance in the individual's county of
residence. After initially choosing a provider, the recipient is allowed to change that choice only
at specified times as allowed by the commissioner. If a demonstration provider ends participation
in the project for any reason, a recipient enrolled with that provider must select a new provider
but may change providers without cause once more within the first 60 days after enrollment
with the second provider.
(f) An infant born to a woman who is eligible for and receiving medical assistance and who is
enrolled in the prepaid medical assistance program shall be retroactively enrolled to the month of
birth in the same managed care plan as the mother once the child is enrolled in medical assistance
unless the child is determined to be excluded from enrollment in a prepaid plan under this section.
    Subd. 4a.[Repealed, 1996 c 451 art 5 s 39]
    Subd. 4b. Individual education plan and individualized family service plan services.
The commissioner shall amend the federal waiver allowing the state to separate out individual
education plan and individualized family service plan services for children enrolled in the
prepaid medical assistance program and the MinnesotaCare program. Effective July 1, 1999,
or upon federal approval, medical assistance coverage of eligible individual education plan
and individualized family service plan services shall not be included in the capitated services
for children enrolled in health plans through the prepaid medical assistance program and the
MinnesotaCare program. Upon federal approval, local school districts shall bill the commissioner
for these services, and claims shall be paid on a fee-for-service basis.
    Subd. 5. Prospective per capita payment. The commissioner shall establish the method and
amount of payments for services. The commissioner shall annually contract with demonstration
providers to provide services consistent with these established methods and amounts for payment.
If allowed by the commissioner, a demonstration provider may contract with an insurer,
health care provider, nonprofit health service plan corporation, or the commissioner, to provide
insurance or similar protection against the cost of care provided by the demonstration provider or
to provide coverage against the risks incurred by demonstration providers under this section. The
recipients enrolled with a demonstration provider are a permissible group under group insurance
laws and chapter 62C, the Nonprofit Health Service Plan Corporations Act. Under this type of
contract, the insurer or corporation may make benefit payments to a demonstration provider for
services rendered or to be rendered to a recipient. Any insurer or nonprofit health service plan
corporation licensed to do business in this state is authorized to provide this insurance or similar
protection.
Payments to providers participating in the project are exempt from the requirements of
sections 256.966 and 256B.03, subdivision 2. The commissioner shall complete development
of capitation rates for payments before delivery of services under this section is begun. For
payments made during calendar year 1990 and later years, the commissioner shall contract with
an independent actuary to establish prepayment rates.
By January 15, 1996, the commissioner shall report to the legislature on the methodology
used to allocate to participating counties available administrative reimbursement for advocacy
and enrollment costs. The report shall reflect the commissioner's judgment as to the adequacy
of the funds made available and of the methodology for equitable distribution of the funds. The
commissioner must involve participating counties in the development of the report.
Beginning July 1, 2004, the commissioner may include payments for elderly waiver services
and 180 days of nursing home care in capitation payments for the prepaid medical assistance
program for recipients age 65 and older. Payments for elderly waiver services shall be made no
earlier than the month following the month in which services were received.
    Subd. 5a. Managed care contracts. (a) Managed care contracts under this section and
sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year basis
beginning January 1, 1996. Managed care contracts which were in effect on June 30, 1995, and
set to renew on July 1, 1995, shall be renewed for the period July 1, 1995 through December 31,
1995 at the same terms that were in effect on June 30, 1995. 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, 256D, and 256L, is responsible for complying with the terms of its contract
with the commissioner. Requirements applicable to managed care programs under chapters 256B,
256D, and 256L, established after the effective date of a contract with the commissioner take
effect when the contract is next issued or renewed.
(c) Effective for services rendered on or after January 1, 2003, the commissioner shall
withhold five percent of managed care plan payments under this section for the prepaid medical
assistance and general assistance medical care programs 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. 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. 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 paragraph that is reasonably expected to be returned.
    Subd. 5b. Prospective reimbursement rates. (a) For prepaid medical assistance and general
assistance medical care program contract rates set by the commissioner under subdivision 5 and
effective on or after January 1, 2003, capitation rates for nonmetropolitan counties shall on
a weighted average be no less than 87 percent of the capitation rates for metropolitan counties,
excluding Hennepin County. The commissioner shall make a pro rata adjustment in capitation
rates paid to counties other than nonmetropolitan counties in order to make this provision budget
neutral. The commissioner, in consultation with a health care actuary, shall evaluate the regional
rate relationships based on actual health plan costs for Minnesota health care programs. The
commissioner may establish, based on the actuary's recommendation, new rate regions that
recognize metropolitan areas outside of the seven-county metropolitan area.
(b) This subdivision shall not affect the nongeographically based risk adjusted rates
established under section 62Q.03, subdivision 5a.
    Subd. 5c. Medical education and research fund. (a) Except as provided in paragraph
(c), the commissioner of human services shall transfer each year to the medical education and
research fund established under section 62J.692, the following:
(1) an amount equal to the reduction in the prepaid medical assistance and prepaid general
assistance medical care payments as specified in this clause. Until January 1, 2002, the county
medical assistance and general assistance medical care capitation base rate prior to plan specific
adjustments and after the regional rate adjustments under section 256B.69, subdivision 5b, is
reduced 6.3 percent for Hennepin County, two percent for the remaining metropolitan counties,
and no reduction for nonmetropolitan Minnesota counties; and after January 1, 2002, the
county medical assistance and general assistance medical care capitation base rate prior to plan
specific adjustments is reduced 6.3 percent for Hennepin County, two percent for the remaining
metropolitan counties, and 1.6 percent for nonmetropolitan Minnesota counties. Nursing facility
and elderly waiver payments and demonstration project payments operating under subdivision 23
are excluded from this reduction. The amount calculated under this clause shall not be adjusted
for periods already paid due to subsequent changes to the capitation payments;
(2) beginning July 1, 2003, $2,157,000 from the capitation rates paid under this section plus
any federal matching funds on this amount;
(3) beginning July 1, 2002, an additional $12,700,000 from the capitation rates paid under
this section; and
(4) beginning July 1, 2003, an additional $4,700,000 from the capitation rates paid under
this section.
(b) This subdivision shall be effective upon approval of a federal waiver which allows
federal financial participation in the medical education and research fund.
(c) Effective July 1, 2003, the amount reduced from the prepaid general assistance medical
care payments under paragraph (a), clause (1), shall be transferred to the general fund.
    Subd. 5d. Modification of payment dates effective January 1, 2001. Effective for services
rendered on or after January 1, 2001, capitation payments under this section and under section
256D.03 for services provided in the month of June shall be made no earlier than the first day
after the month of service.
    Subd. 5e. Medical education and research payments. For the calendar years 1999, 2000,
and 2001, a hospital that participates in funding the federal share of the medical education and
research trust fund payment under Laws 1998, chapter 407, article 1, section 3, shall not be held
liable for any amounts attributable to this payment above the charge limit of section 256.969,
subdivision 3a
. The commissioner of human services shall assume liability for any corresponding
federal share of the payments above the charge limit.
    Subd. 5f. Capitation rates. Beginning July 1, 2002, the capitation rates paid under this
section are increased by $12,700,000 per year. Beginning July 1, 2003, the capitation rates paid
under this section are increased by $4,700,000 per year.
    Subd. 5g. Payment for covered services. For services rendered on or after January 1, 2003,
the total payment made to managed care plans for providing covered services under the medical
assistance and general assistance medical care programs is reduced by .5 percent from their
current statutory rates. This provision excludes payments for nursing home services, home and
community-based waivers, and payments to demonstration projects for persons with disabilities.
    Subd. 5h. Payment reduction. In addition to the reduction in subdivision 5g, the total
payment made to managed care plans under the medical assistance program is reduced 1.0
percent for services provided on or after October 1, 2003, and an additional 1.0 percent for
services provided on or after January 1, 2004. This provision excludes payments for nursing
home services, home and community-based waivers, and payments to demonstration projects
for persons with disabilities.
    Subd. 6. Service delivery. (a) Each demonstration provider shall be responsible for the
health care coordination for eligible individuals. Demonstration providers:
(1) shall authorize and arrange for the provision of all needed health services including but
not limited to the full range of services listed in sections 256B.02, subdivision 8, and 256B.0625
in order to ensure appropriate health care is delivered to enrollees;
(2) shall accept the prospective, per capita payment from the commissioner in return for the
provision of comprehensive and coordinated health care services for eligible individuals enrolled
in the program;
(3) may contract with other health care and social service practitioners to provide services
to enrollees; and
(4) shall institute recipient grievance procedures according to the method established by the
project, utilizing applicable requirements of chapter 62D. Disputes not resolved through this
process shall be appealable to the commissioner as provided in subdivision 11.
(b) Demonstration providers must comply with the standards for claims settlement under
section 72A.201, subdivisions 4, 5, 7, and 8, when contracting with other health care and social
service practitioners to provide services to enrollees. A demonstration provider must pay a clean
claim, as defined in Code of Federal Regulations, title 42, section 447.45(b), within 30 business
days of the date of acceptance of the claim.
    Subd. 6a. Nursing home services. (a) Notwithstanding Minnesota Rules, part 9500.1457,
subpart 1, item B, up to 180 days of nursing facility services as defined in section 256B.0625,
subdivision 2
, which are provided in a nursing facility certified by the Minnesota Department of
Health for services provided and eligible for payment under Medicaid, shall be covered under the
prepaid medical assistance program for individuals who are not residing in a nursing facility at the
time of enrollment in the prepaid medical assistance program. The commissioner may develop a
schedule to phase in implementation of the 180-day provision.
(b) For individuals enrolled in the Minnesota senior health options project or in other
demonstrations authorized under subdivision 23, nursing facility services shall be covered
according to the terms and conditions of the federal agreement governing that demonstration
project.
(c) For individuals enrolled in demonstrations authorized under subdivision 23, services in an
intermediate care facility for persons with developmental disabilities shall be covered according
to the terms and conditions of the federal agreement governing the demonstration project.
    Subd. 6b. Home and community-based waiver services. (a) For individuals enrolled in the
Minnesota senior health options project authorized under subdivision 23, elderly waiver services
shall be covered according to the terms and conditions of the federal agreement governing that
demonstration project.
(b) For individuals under age 65 enrolled in demonstrations authorized under subdivision
23, home and community-based waiver services shall be covered according to the terms and
conditions of the federal agreement governing that demonstration project.
(c) The commissioner of human services shall issue requests for proposals for collaborative
service models between counties and managed care organizations to integrate the home and
community-based elderly waiver services and additional nursing home services into the prepaid
medical assistance program.
(d) Notwithstanding Minnesota Rules, part 9500.1457, subpart 1, item C, elderly waiver
services shall be covered statewide no sooner than July 1, 2006, under the prepaid medical
assistance program for all individuals who are eligible according to section 256B.0915. The
commissioner may develop a schedule to phase in implementation of these waiver services,
including collaborative service models under paragraph (c). The commissioner shall phase in
implementation beginning with those counties participating under section 256B.692, and those
counties where a viable collaborative service model has been developed. In consultation with
counties and all managed care organizations that have expressed an interest in participating in
collaborative service models, the commissioner shall evaluate the models. The commissioner shall
consider the evaluation in selecting the most appropriate models for statewide implementation.
    Subd. 6c. Dental services demonstration project. The commissioner shall establish a
dental services demonstration project in Crow Wing, Todd, Morrison, Wadena, and Cass Counties
for provision of dental services to medical assistance, general assistance medical care, and
MinnesotaCare recipients. The commissioner may contract on a prospective per capita payment
basis for these dental services with an organization licensed under chapter 62C, 62D, or 62N in
accordance with section 256B.037 or may establish and administer a fee-for-service system for
the reimbursement of dental services.
    Subd. 6d. Prescription drugs. Effective January 1, 2004, the commissioner may exclude or
modify coverage for prescription drugs from the prepaid managed care contracts entered into
under this section in order to increase savings to the state by collecting additional prescription drug
rebates. The contracts must maintain incentives for the managed care plan to manage drug costs
and utilization and may require that the managed care plans maintain an open drug formulary. In
order to manage drug costs and utilization, the contracts may authorize the managed care plans to
use preferred drug lists and prior authorization. This subdivision is contingent on federal approval
of the managed care contract changes and the collection of additional prescription drug rebates.
    Subd. 7. Enrollee benefits. All eligible individuals enrolled by demonstration providers shall
receive all needed health care services as defined in subdivision 6.
All enrolled individuals have the right to appeal if necessary services are not being
authorized as defined in subdivision 11.
    Subd. 8. Preadmission screening waiver. Except as applicable to the project's operation, the
provisions of section 256B.0911 are waived for the purposes of this section for recipients enrolled
with demonstration providers or in the prepaid medical assistance program for seniors.
    Subd. 9. Reporting. (a) Each demonstration provider shall submit information as required by
the commissioner, including data required for assessing client satisfaction, quality of care, cost,
and utilization of services for purposes of project evaluation. The commissioner shall also develop
methods of data reporting and collection in order to provide aggregate enrollee information on
encounters and outcomes to determine access and quality assurance. Required information shall
be specified before the commissioner contracts with a demonstration provider.
(b) Aggregate nonpersonally identifiable health plan encounter data, aggregate spending
data for major categories of service as reported to the commissioners of health and commerce
under section 62D.08, subdivision 3, clause (a), and criteria for service authorization and service
use are public data that the commissioner shall make available and use in public reports. The
commissioner shall require each health plan and county-based purchasing plan to provide:
(1) encounter data for each service provided, using standard codes and unit of service
definitions set by the commissioner, in a form that the commissioner can report by age, eligibility
groups, and health plan; and
(2) criteria, written policies, and procedures required to be disclosed under section 62M.10,
subdivision 7, and Code of Federal Regulations, title 42, part 438.210(b)(1), used for each type of
service for which authorization is required.
    Subd. 10. Information. Notwithstanding any law or rule to the contrary, the commissioner
may allow disclosure of the recipient's identity solely for the purposes of (a) allowing
demonstration providers to provide the information to the recipient regarding services, access to
services, and other provider characteristics, and (b) facilitating monitoring of recipient satisfaction
and quality of care. The commissioner shall develop and implement measures to protect recipients
from invasions of privacy and from harassment.
    Subd. 11. Appeals. A recipient may appeal to the commissioner a demonstration provider's
delay or refusal to provide services, according to section 256.045.
    Subd. 12.[Repealed, 1989 c 282 art 3 s 98]
    Subd. 13.[Repealed, 1989 c 282 art 3 s 98]
    Subd. 14.[Repealed, 1989 c 282 art 3 s 98]
    Subd. 15.[Repealed, 1989 c 282 art 3 s 98]
    Subd. 16. Project extension. Minnesota Rules, parts 9500.1450; 9500.1451; 9500.1452;
9500.1453; 9500.1454; 9500.1455; 9500.1456; 9500.1457; 9500.1458; 9500.1459; 9500.1460;
9500.1461; 9500.1462; 9500.1463; and 9500.1464 are extended.
    Subd. 17. Continuation of prepaid medical assistance. The commissioner may continue
the provisions of this section after June 30, 1990, in any or all of the participating counties if
necessary federal authority is granted. The commissioner may adopt permanent rules to continue
prepaid medical assistance in these areas.
    Subd. 18. Services pending appeal. If the recipient appeals in writing to the state agency
on or before the tenth day after the decision of the prepaid health plan to reduce, suspend, or
terminate services which the recipient had been receiving, and the treating physician or another
plan physician orders the services to be continued at the previous level, the prepaid health plan
must continue to provide services at a level equal to the level ordered by the plan's physician until
the state agency renders its decision.
    Subd. 19. Limitation on reimbursement; providers not with prepaid health plan. A
prepaid health plan may limit any reimbursement it may be required to pay to providers not
employed by or under contract with the prepaid health plan to the medical assistance rates for
medical assistance enrollees, and the general assistance medical care rates for general assistance
medical care enrollees, paid by the commissioner of human services to providers for services to
recipients not enrolled in a prepaid health plan.
    Subd. 20. Ombudsperson. The commissioner shall designate an ombudsperson to advocate
for persons required to enroll in prepaid health plans under this section. The ombudsperson shall
advocate for recipients enrolled in prepaid health plans through complaint and appeal procedures
and ensure that necessary medical services are provided either by the prepaid health plan directly
or by referral to appropriate social services. At the time of enrollment in a prepaid health plan,
the local agency shall inform recipients about the ombudsperson program and their right to
a resolution of a complaint by the prepaid health plan if they experience a problem with the
plan or its providers.
    Subd. 21. Prepayment coordinator. The county board shall designate a prepayment
coordinator to assist the state agency in implementing this section and section 256D.03,
subdivision 4
. Assistance must include educating recipients about available health care options,
enrolling recipients under subdivision 5, providing necessary eligibility and enrollment
information to health plans and the state agency, and coordinating complaints and appeals with
the ombudsman established in subdivision 18.
    Subd. 22. Impact on public or teaching hospitals and community clinics. (a) Before
implementing prepaid programs in counties with a county operated or affiliated public teaching
hospital or a hospital or clinic operated by the University of Minnesota, the commissioner shall
consider the risks the prepaid program creates for the hospital and allow the county or hospital the
opportunity to participate in the program, provided the terms of participation in the program are
competitive with the terms of other participants.
(b) Prepaid health plans serving counties with a nonprofit community clinic or community
health services agency must contract with the clinic or agency to provide services to clients who
choose to receive services from the clinic or agency, if the clinic or agency agrees to payment rates
that are competitive with rates paid to other health plan providers for the same or similar services.
(c) For purposes of this subdivision, "nonprofit community clinic" includes, but is not limited
to, a community mental health center as defined in sections 245.62 and 256B.0625, subdivision 5.
    Subd. 23. Alternative services; elderly and disabled persons. (a) The commissioner may
implement demonstration projects to create alternative integrated delivery systems for acute and
long-term care services to elderly persons and persons with disabilities as defined in section
256B.77, subdivision 7a, that provide increased coordination, improve access to quality services,
and mitigate future cost increases. The commissioner may seek federal authority to combine
Medicare and Medicaid capitation payments for the purpose of such demonstrations and may
contract with Medicare-approved special needs plans to provide Medicaid services. Medicare
funds and services shall be administered according to the terms and conditions of the federal
contract and demonstration provisions. For the purpose of administering medical assistance
funds, demonstrations under this subdivision are subject to subdivisions 1 to 22. The provisions
of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations, with the
exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1, items B and C, which
do not apply to persons enrolling in demonstrations under this section. An initial open enrollment
period may be provided. Persons who disenroll from demonstrations under this subdivision
remain subject to Minnesota Rules, parts 9500.1450 to 9500.1464. When a person is enrolled
in a health plan under these demonstrations and the health plan's participation is subsequently
terminated for any reason, the person shall be provided an opportunity to select a new health plan
and shall have the right to change health plans within the first 60 days of enrollment in the second
health plan. Persons required to participate in health plans under this section who fail to make a
choice of health plan shall not be randomly assigned to health plans under these demonstrations.
Notwithstanding section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220, subpart 1,
item A, if adopted, for the purpose of demonstrations under this subdivision, the commissioner
may contract with managed care organizations, including counties, to serve only elderly persons
eligible for medical assistance, elderly and disabled persons, or disabled persons only. For persons
with a primary diagnosis of developmental disability, serious and persistent mental illness, or
serious emotional disturbance, the commissioner must ensure that the county authority has
approved the demonstration and contracting design. Enrollment in these projects for persons with
disabilities shall be voluntary. The commissioner shall not implement any demonstration project
under this subdivision for persons with a primary diagnosis of developmental disabilities, serious
and persistent mental illness, or serious emotional disturbance, without approval of the county
board of the county in which the demonstration is being implemented.
(b) Notwithstanding chapter 245B, sections 252.40 to 252.46, 256B.092, 256B.501 to
256B.5015, and Minnesota Rules, parts 9525.0004 to 9525.0036, 9525.1200 to 9525.1330,
9525.1580, and 9525.1800 to 9525.1930, the commissioner may implement under this section
projects for persons with developmental disabilities. The commissioner may capitate payments for
ICF/MR services, waivered services for developmental disabilities, including case management
services, day training and habilitation and alternative active treatment services, and other services
as approved by the state and by the federal government. Case management and active treatment
must be individualized and developed in accordance with a person-centered plan. Costs under
these projects may not exceed costs that would have been incurred under fee-for-service.
Beginning July 1, 2003, and until two years after the pilot project implementation date,
subcontractor participation in the long-term care developmental disability pilot is limited to a
nonprofit long-term care system providing ICF/MR services, home and community-based waiver
services, and in-home services to no more than 120 consumers with developmental disabilities in
Carver, Hennepin, and Scott Counties. The commissioner shall report to the legislature prior to
expansion of the developmental disability pilot project. This paragraph expires two years after
the implementation date of the pilot project.
(c) Before implementation of a demonstration project for disabled persons, the commissioner
must provide information to appropriate committees of the house of representatives and senate
and must involve representatives of affected disability groups in the design of the demonstration
projects.
(d) A nursing facility reimbursed under the alternative reimbursement methodology in
section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity provide
services under paragraph (a). The commissioner shall amend the state plan and seek any federal
waivers necessary to implement this paragraph.
(e) The commissioner, in consultation with the commissioners of commerce and health, may
approve and implement programs for all-inclusive care for the elderly (PACE) according to federal
laws and regulations governing that program and state laws or rules applicable to participating
providers. The process for approval of these programs shall begin only after the commissioner
receives grant money in an amount sufficient to cover the state share of the administrative and
actuarial costs to implement the programs during state fiscal years 2006 and 2007. Grant amounts
for this purpose shall be deposited in an account in the special revenue fund and are appropriated
to the commissioner to be used solely for the purpose of PACE administrative and actuarial costs.
A PACE provider is not required to be licensed or certified as a health plan company as defined in
section 62Q.01, subdivision 4. Persons age 55 and older who have been screened by the county
and found to be eligible for services under the elderly waiver or community alternatives for
disabled individuals or who are already eligible for Medicaid but meet level of care criteria for
receipt of waiver services may choose to enroll in the PACE program. Medicare and Medicaid
services will be provided according to this subdivision and federal Medicare and Medicaid
requirements governing PACE providers and programs. PACE enrollees will receive Medicaid
home and community-based services through the PACE provider as an alternative to services for
which they would otherwise be eligible through home and community-based waiver programs
and Medicaid State Plan Services. The commissioner shall establish Medicaid rates for PACE
providers that do not exceed costs that would have been incurred under fee-for-service or other
relevant managed care programs operated by the state.
(f) The commissioner shall seek federal approval to expand the Minnesota disability
health options (MnDHO) program established under this subdivision in stages, first to regional
population centers outside the seven-county metro area and then to all areas of the state. Until
January 1, 2008, expansion for MnDHO projects that include home and community-based services
is limited to the two projects and service areas in effect on March 1, 2006. Enrollment in integrated
MnDHO programs that include home and community-based services shall remain voluntary.
Costs for home and community-based services included under MnDHO must not exceed costs that
would have been incurred under the fee-for-service program. In developing program specifications
for expansion of integrated programs, the commissioner shall involve and consult the state-level
stakeholder group established in subdivision 28, paragraph (d), including consultation on whether
and how to include home and community-based waiver programs. Plans for further expansion
of MnDHO projects shall be presented to the chairs of the house and senate committees with
jurisdiction over health and human services policy and finance by February 1, 2007.
(g) Notwithstanding section 256B.0261, health plans providing services under this
section are responsible for home care targeted case management and relocation targeted case
management. Services must be provided according to the terms of the waivers and contracts
approved by the federal government.
    Subd. 24.[Repealed, 1999 c 245 art 3 s 51]
    Subd. 24a. Social service and public health costs. The commissioner shall report on
recommendations to the legislature by January 15, 1997, identifying county social services and
public health administrative costs for each target population that should be excluded from the
overall capitation rate.
    Subd. 25. Continuation of payments through discharge. In the event a medical assistance
recipient or beneficiary enrolled in a health plan under this section is denied nursing facility
services after residing in the facility for more than 180 days, any denial of medical assistance
payment to a provider under this section shall be prospective only and payments to the provider
shall continue until the resident is discharged or 30 days after the effective date of the service
denial, whichever is sooner.
    Subd. 26. American Indian recipients. (a) Beginning on or after January 1, 1999, for
American Indian recipients of medical assistance who are required to enroll with a demonstration
provider under subdivision 4 or in a county-based purchasing entity, if applicable, under section
256B.692, medical assistance shall cover health care services provided at Indian health services
facilities and facilities operated by a tribe or tribal organization under funding authorized by
United States Code, title 25, sections 450f to 450n, or title III of the Indian Self-Determination
and Education Assistance Act, Public Law 93-638, if those services would otherwise be covered
under section 256B.0625. Payments for services provided under this subdivision shall be made
on a fee-for-service basis, and may, at the option of the tribe or tribal organization, be made
according to rates authorized under sections 256.969, subdivision 16, and 256B.0625, subdivision
34
. Implementation of this purchasing model is contingent on federal approval.
(b) The commissioner of human services, in consultation with the tribal governments, shall
develop a plan for tribes to assist in the enrollment process for American Indian recipients
enrolled in the prepaid medical assistance program under this section or the prepaid general
assistance medical care program under section 256D.03, subdivision 4, paragraph (c). This plan
also shall address how tribes will be included in ensuring the coordination of care for American
Indian recipients between Indian health service or tribal providers and other providers.
(c) For purposes of this subdivision, "American Indian" has the meaning given to persons to
whom services will be provided for in Code of Federal Regulations, title 42, section 36.12.
(d) This subdivision also applies to American Indian recipients of general assistance
medical care and to the prepaid general assistance medical care program under section 256D.03,
subdivision 4
, paragraph (c).
    Subd. 27. Information for persons with limited English-language proficiency. Managed
care contracts entered into under this section and sections 256D.03, subdivision 4, paragraph (c),
and 256L.12 must require demonstration providers to inform enrollees that upon request the
enrollee can obtain a certificate of coverage in the following languages: Spanish, Hmong, Laotian,
Russian, Somali, Vietnamese, or Cambodian. Upon request, the demonstration provider must
provide the enrollee with a certificate of coverage in the specified language of preference.
    Subd. 28. Medicare special needs plans; medical assistance basic health care. (a) The
commissioner may contract with qualified Medicare-approved special needs plans to provide
medical assistance basic health care services to persons with disabilities, including those with
developmental disabilities. Basic health care services include:
(1) those services covered by the medical assistance state plan except for ICF/MR services,
home and community-based waiver services, case management for persons with developmental
disabilities under section 256B.0625, subdivision 20a, and personal care and certain home care
services defined by the commissioner in consultation with the stakeholder group established
under paragraph (d); and
(2) basic health care services may also include risk for up to 100 days of nursing facility
services for persons who reside in a noninstitutional setting and home health services related to
rehabilitation as defined by the commissioner after consultation with the stakeholder group.
The commissioner may exclude other medical assistance services from the basic health care
benefit set. Enrollees in these plans can access any excluded services on the same basis as other
medical assistance recipients who have not enrolled.
Unless a person is otherwise required to enroll in managed care, enrollment in these plans for
Medicaid services must be voluntary. For purposes of this subdivision, automatic enrollment with
an option to opt out is not voluntary enrollment.
(b) Beginning January 1, 2007, the commissioner may contract with qualified Medicare
special needs plans to provide basic health care services under medical assistance to persons who
are dually eligible for both Medicare and Medicaid and those Social Security beneficiaries eligible
for Medicaid but in the waiting period for Medicare. The commissioner shall consult with the
stakeholder group under paragraph (d) in developing program specifications for these services.
The commissioner shall report to the chairs of the house and senate committees with jurisdiction
over health and human services policy and finance by February 1, 2007, on implementation of
these programs and the need for increased funding for the ombudsman for managed care and other
consumer assistance and protections needed due to enrollment in managed care of persons with
disabilities. Payment for Medicaid services provided under this subdivision for the months of
May and June will be made no earlier than July 1 of the same calendar year.
(c) Beginning January 1, 2008, the commissioner may expand contracting under this
subdivision to all persons with disabilities not otherwise required to enroll in managed care.
(d) The commissioner shall establish a state-level stakeholder group to provide advice on
managed care programs for persons with disabilities, including both MnDHO and contracts with
special needs plans that provide basic health care services as described in paragraphs (a) and (b).
The stakeholder group shall provide advice on program expansions under this subdivision and
subdivision 23, including:
(1) implementation efforts;
(2) consumer protections; and
(3) program specifications such as quality assurance measures, data collection and reporting,
and evaluation of costs, quality, and results.
(e) Each plan under contract to provide medical assistance basic health care services shall
establish a local or regional stakeholder group, including representatives of the counties covered
by the plan, members, consumer advocates, and providers, for advice on issues that arise in
the local or regional area.
History: 1983 c 312 art 5 s 27; 1984 c 654 art 5 s 58; 1987 c 403 art 2 s 95-101; 1988 c 689
art 2 s 182,183,268; 1989 c 209 art 1 s 23; 1989 c 282 art 3 s 87-90; 1990 c 426 art 1 s 29; 1990
c 568 art 3 s 83,84; 1991 c 292 art 7 s 25; 1994 c 529 s 11; 1995 c 207 art 6 s 90-102; art 7 s
41; 1995 c 234 art 6 s 40,41; 1996 c 451 art 2 s 33-37; art 5 s 32; 1997 c 203 art 2 s 26; art 4 s
48-55; 1998 c 407 art 3 s 17; art 4 s 44-48; 1999 c 159 s 53; 1999 c 245 art 2 s 38; art 3 s 37,38;
art 4 s 70-75; 2000 c 340 s 12,13; 2000 c 353 s 1; 2000 c 488 art 9 s 24-26; 2001 c 161 s 49;
2001 c 203 s 14; 1Sp2001 c 9 art 2 s 49-52; 2002 c 220 art 15 s 15-19; 2002 c 275 s 5; 2002 c
281 s 1; 2002 c 375 art 2 s 43; 2002 c 379 art 1 s 113; 2003 c 47 s 3,4; 2003 c 101 s 1; 1Sp2003 c
14 art 12 s 56-65; 2004 c 228 art 1 s 75; 2004 c 268 s 14; 2004 c 288 art 3 s 26; art 5 s 9; 2005 c
56 s 1; 1Sp2005 c 4 art 7 s 46; art 8 s 51; 2006 c 282 art 20 s 28-30

NOTE: The amendment to subdivision 4 by Laws 2004, chapter 268, section 14, and chapter
288, article 3, section 26, is effective upon federal approval. Laws 2004, chapter 268, section
14, and chapter 288, article 3, section 26, the effective dates.

NOTE: Subdivision 23, paragraph (b), expires February 1, 2008. Laws 2003, chapter 47,
section 5.