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256B.0641 RECOVERY OF OVERPAYMENTS.
    Subdivision 1. Recovery procedures; sources. Notwithstanding section 256B.72 or any
law or rule to the contrary, when the commissioner or the federal government determines that an
overpayment has been made by the state to any medical assistance vendor, the commissioner shall
recover the overpayment as follows:
(1) if the federal share of the overpayment amount is due and owing to the federal
government under federal law and regulations, the commissioner shall recover from the medical
assistance vendor the federal share of the determined overpayment amount paid to that provider
using the schedule of payments required by the federal government;
(2) if the overpayment to a medical assistance vendor is due to a retroactive adjustment
made because the medical assistance vendor's temporary payment rate was higher than the
established desk audit payment rate or because of a department error in calculating a payment
rate, the commissioner shall recover from the medical assistance vendor the total amount of
the overpayment within 120 days after the date on which written notice of the adjustment is
sent to the medical assistance vendor or according to a schedule of payments approved by the
commissioner; and
(3) a medical assistance vendor is liable for the overpayment amount owed by a long-term
care provider if the vendors or their owners are under common control or ownership.
    Subd. 2. Overpayments to prior owners. The current owner of a nursing home, boarding
care home, or intermediate care facility for persons with developmental disabilities is liable for
the overpayment amount owed by a former owner for any facility sold, transferred, or reorganized
after May 15, 1987. Within 12 months of a written request by the current owner, the commissioner
shall conduct a field audit of the facility for the auditable rate years during which the former
owner owned the facility and issue a report of the field audit within 15 months of the written
request. Nothing in this subdivision limits the liability of a former owner.
    Subd. 3. Facility in receivership. Subdivision 2 does not apply to the change of ownership
of a facility to a nonrelated organization while the facility to be sold, transferred or reorganized is
in receivership under section 245A.12 or 245A.13, and the commissioner during the receivership
has not determined the need to place residents of the facility into a newly constructed or newly
established facility. Nothing in this subdivision limits the liability of a former owner.
History: 1Sp1985 c 9 art 2 s 39; 1987 c 133 s 1; 1991 c 292 art 6 s 46; 1995 c 207 art 7
s 22; 2005 c 56 s 1

Official Publication of the State of Minnesota
Revisor of Statutes