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Minnesota Legislature

Office of the Revisor of Statutes

62J.04 MONITORING THE RATE OF GROWTH OF HEALTH CARE SPENDING.
    Subdivision 1. Cost containment goals. (a) The commissioner of health shall set annual cost
containment goals for public and private spending on health care services for Minnesota residents,
as provided in paragraph (b). The cost containment goals must be set at levels the commissioner
determines to be realistic and achievable but that will reduce the rate of growth in health care
spending by at least ten percent per year for the next five years. The commissioner shall set
cost containment goals based on available data on spending and growth trends, including data
from group purchasers, national data on public and private sector health care spending and cost
trends, and trend information from other states.
(b) The commissioner shall set the following annual cost containment goals for public and
private spending on health care services for Minnesota residents:
(1) for calendar year 1994, the cost containment goal must not exceed the change in the
regional Consumer Price Index for urban consumers for calendar year 1993 plus 6.5 percentage
points;
(2) for calendar year 1995, the cost containment goal must not exceed the change in the
regional Consumer Price Index for urban consumers for calendar year 1994 plus 5.3 percentage
points;
(3) for calendar year 1996, the cost containment goal must not exceed the change in the
regional Consumer Price Index for urban consumers for calendar year 1995 plus 4.3 percentage
points;
(4) for calendar year 1997, the cost containment goal must not exceed the change in the
regional Consumer Price Index for urban consumers for calendar year 1996 plus 3.4 percentage
points; and
(5) for calendar year 1998, the cost containment goal must not exceed the change in the
regional Consumer Price Index for urban consumers for calendar year 1997 plus 2.6 percentage
points.
The commissioner shall adjust the cost containment goal set for calendar year 1995 to recover
savings in health care spending required for the period July 1, 1993, to December 31, 1993.
(c) The commissioner shall publish:
(1) the projected cost containment goal in the State Register by April 15 of the year
immediately preceding the year in which the cost containment goal will be effective except for the
year 1993, in which the cost containment goal shall be published by July 1, 1993;
(2) the quarterly change in the regional Consumer Price Index for urban consumers; and
(3) the Centers for Medicare and Medicaid Services forecast for total growth in the national
health care expenditures.
    Subd. 1a. Cost containment goals. The commissioner shall publish the final adjusted cost
containment goal in the State Register by January 31 of the year that the cost containment goal
is to be in effect. The adjusted cost containment goal must reflect the actual regional Consumer
Price Index for urban consumers for the previous calendar year, and may deviate from the
previously published projected cost containment goal to reflect differences between the actual
regional Consumer Price Index for urban consumers and the projected Consumer Price Index
for urban consumers. The commissioner shall report to the legislature by February 15 of each
year on the implementation of the cost containment goal. This annual report shall describe the
differences between the projected increase in health care expenditures, the actual expenditures
based on data collected, and the impact and validity of cost containment goals within the overall
health care reform strategy.
    Subd. 2.[Renumbered 62J.35, subdivision 1]
    Subd. 2a.[Renumbered 62J.35, subd 2]
    Subd. 2b.[Renumbered 62J.35, subd 3]
    Subd. 3. Cost containment duties. The commissioner shall:
(1) establish statewide and regional cost containment goals for total health care spending
under this section and collect data as described in sections 62J.38 to 62J.41 to monitor statewide
achievement of the cost containment goals;
(2) divide the state into no fewer than four regions, with one of those regions being the
Minneapolis/St. Paul metropolitan statistical area but excluding Chisago, Isanti, Wright, and
Sherburne Counties, for purposes of fostering the development of regional health planning and
coordination of health care delivery among regional health care systems and working to achieve
the cost containment goals;
(3) monitor the quality of health care throughout the state and take action as necessary to
ensure an appropriate level of quality;
(4) issue recommendations regarding uniform billing forms, uniform electronic billing
procedures and data interchanges, patient identification cards, and other uniform claims and
administrative procedures for health care providers and private and public sector payers. In
developing the recommendations, the commissioner shall review the work of the work group on
electronic data interchange (WEDI) and the American National Standards Institute (ANSI) at the
national level, and the work being done at the state and local level. The commissioner may adopt
rules requiring the use of the Uniform Bill 82/92 form, the National Council of Prescription Drug
Providers (NCPDP) 3.2 electronic version, the Centers for Medicare and Medicaid Services 1500
form, or other standardized forms or procedures;
(5) undertake health planning responsibilities;
(6) authorize, fund, or promote research and experimentation on new technologies and
health care procedures;
(7) within the limits of appropriations for these purposes, administer or contract for statewide
consumer education and wellness programs that will improve the health of Minnesotans and
increase individual responsibility relating to personal health and the delivery of health care
services, undertake prevention programs including initiatives to improve birth outcomes, expand
childhood immunization efforts, and provide start-up grants for worksite wellness programs;
(8) undertake other activities to monitor and oversee the delivery of health care services in
Minnesota with the goal of improving affordability, quality, and accessibility of health care for
all Minnesotans; and
(9) make the cost containment goal data available to the public in a consumer-oriented
manner.
    Subd. 4.[Repealed, 1997 c 225 art 2 s 63]
    Subd. 5. Appeals. A person aggrieved may appeal a decision made under this chapter
through a contested case proceeding governed under chapter 14. The notice of appeal must be
served on the commissioner within 30 days of receiving notice of the decision. The commissioner
shall decide the contested case.
    Subd. 6. Rulemaking. The commissioner shall adopt rules under chapter 14 to implement
this chapter.
    Subd. 7.[Repealed, 1997 c 225 art 2 s 63]
    Subd. 8.[Repealed, 1994 c 625 art 8 s 74]
    Subd. 9. Growth limits; federal programs. The commissioners of health and human
services shall establish a rate methodology for Medicare and Medicaid risk-based contracting with
health plan companies that is consistent with statewide growth limits. The methodology shall be
presented for review by the Minnesota Health Care Commission and the Legislative Commission
on Health Care Access prior to the submission of a waiver request to the Centers for Medicare
and Medicaid Services and subsequent implementation of the methodology.
History: 1992 c 549 art 1 s 3; 1993 c 247 art 1 s 1-6; 1993 c 345 art 1 s 1; art 3 s 2-4,18;
art 5 s 7,8; art 6 s 2,3; 1994 c 625 art 8 s 16-18; 1995 c 234 art 3 s 2; art 5 s 2; 1997 c 150 s
1-3; 1997 c 187 art 1 s 5; 1998 c 254 art 1 s 11; 1999 c 245 art 2 s 2; 2000 c 260 s 83; 2002 c
277 s 32; 1Sp2003 c 14 art 7 s 88