2006 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.
(c) Effective July 1, 2001, the operating payment rate shall be adjusted for the increases in
the Department of Health licensing fees that were authorized in section 144.122.
    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.
    Subd. 5. Rate increase effective June 1, 2003. For rate periods beginning on or after
June 1, 2003, the commissioner shall increase the total operating payment rate for each facility
reimbursed under this section by $3 per day. The increase shall not be subject to any annual
percentage increase.
    Subd. 6. ICF/MR rate increases October 1, 2005, and October 1, 2006. (a) For the rate
periods beginning October 1, 2005, and October 1, 2006, the commissioner shall make available
to each facility reimbursed under this section an adjustment to the total operating payment rate of
2.2553 percent.
(b) 75 percent of the money resulting from the rate adjustment under paragraph (a) must
be used to increase wages and benefits and pay associated costs for employees, except for
administrative and central office employees. 75 percent of the money received by a facility as a
result of the rate adjustment provided in paragraph (a) must be used only for wage, benefit, and
staff increases implemented on or after the effective date of the rate increase each year, and must
not be used for increases implemented prior to that date. The wage adjustment eligible employees
may receive may vary based on merit, seniority, or other factors determined by the provider.
(c) For each facility, the commissioner shall make available an adjustment, based on
occupied beds, using the percentage specified in paragraph (a) multiplied by the total payment
rate, including variable rate but excluding the property-related payment rate, in effect on the
preceding day. 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 portion of the payment rate adjustment provided under
paragraph (a) for employee wages and benefits and associated costs. The application must be
made to the commissioner and contain a plan by which the facility will distribute the funds
according to paragraph (b). 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, 2006, and December 31, 2006, respectively. If a facility's plan is effective for its
employees after the first day of the applicable rate period 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.
History: 1999 c 245 art 3 s 33; 1Sp2001 c 9 art 5 s 30; 2002 c 375 art 2 s 42; 2002 c 379 art
1 s 113; 1Sp2003 c 14 art 2 s 38; 1Sp2005 c 4 art 7 s 45; 2006 c 282 art 20 s 27