Bill Text: MN HF1797 | 2013-2014 | 88th Legislature | Introduced


Bill Title: Nursing facility rate increase provided.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2013-04-22 - Introduction and first reading, referred to Health and Human Services Finance [HF1797 Detail]

Download: Minnesota-2013-HF1797-Introduced.html

1.1A bill for an act
1.2relating to human services; providing an increase to nursing facility rates;
1.3amending Minnesota Statutes 2012, section 256B.434, subdivision 19; Laws
1.42008, chapter 363, article 18, section 3, subdivision 6.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2012, section 256B.434, subdivision 19, is amended to
1.7read:
1.8    Subd. 19. Nursing facility rate increases beginning October 1, 2007 2013. (a)
1.9For the rate year beginning October 1, 2007 2013, the commissioner shall make available
1.10to each nursing facility reimbursed under this section operating payment rate adjustments
1.11equal to 1.87 five percent of the operating payment rates in effect on September 30, 2007
1.12 2013.
1.13    (b) Seventy-five percent of the money resulting from the rate adjustment under
1.14paragraph (a) must be used for increases in compensation-related costs for employees
1.15directly employed by the nursing facility on or after the effective date of the rate
1.16adjustment, except:
1.17    (1) the administrator;
1.18    (2) persons employed in the central office of a corporation that has an ownership
1.19interest in the nursing facility or exercises control over the nursing facility; and
1.20    (3) persons paid by the nursing facility under a management contract.
1.21    (c) Two-thirds of the money available under paragraph (b) must be used for wage
1.22increases for all employees directly employed by the nursing facility on or after the
1.23effective date of the rate adjustment, except those listed in paragraph (b), clauses (1) to
1.24(3). The wage adjustment that employees receive under this paragraph must be paid as
2.1an equal hourly percentage wage increase for all eligible employees. All wage increases
2.2under this paragraph must be effective on the same date. Only costs associated with the
2.3portion of the equal hourly percentage wage increase that goes to all employees shall
2.4qualify under this paragraph. Costs associated with wage increases in excess of the
2.5amount of the equal hourly percentage wage increase provided to all employees shall be
2.6allowed only for meeting the requirements in paragraph (b). This paragraph shall not
2.7apply to employees covered by a collective bargaining agreement.
2.8    (d) The commissioner shall allow as compensation-related costs all costs for:
2.9    (1) wages and salaries;
2.10    (2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers'
2.11compensation;
2.12    (3) the employer's share of health and dental insurance, life insurance, disability
2.13insurance, long-term care insurance, uniform allowance, and pensions; and
2.14    (4) other benefits provided, subject to the approval of the commissioner.
2.15    (e) The portion of the rate adjustment under paragraph (a) that is not subject to the
2.16requirements in paragraphs (b) and (c) shall be provided to nursing facilities effective
2.17October 1, 2007 2013.
2.18    (f) Nursing facilities may apply for the portion of the rate adjustment under paragraph
2.19(a) that is subject to the requirements in paragraphs (b) and (c). The application must be
2.20submitted to the commissioner within six months of the effective date of the rate adjustment,
2.21and the nursing facility must provide additional information required by the commissioner
2.22within nine months of the effective date of the rate adjustment. The commissioner must
2.23respond to all applications within three weeks of receipt. The commissioner may waive
2.24the deadlines in this paragraph under extraordinary circumstances, to be determined at the
2.25sole discretion of the commissioner. The application must contain:
2.26    (1) an estimate of the amounts of money that must be used as specified in paragraphs
2.27(b) and (c);
2.28    (2) a detailed distribution plan specifying the allowable compensation-related and
2.29wage increases the nursing facility will implement to use the funds available in clause (1);
2.30    (3) a description of how the nursing facility will notify eligible employees of
2.31the contents of the approved application, which must provide for giving each eligible
2.32employee a copy of the approved application, excluding the information required in clause
2.33(1), or posting a copy of the approved application, excluding the information required in
2.34clause (1), for a period of at least six weeks in an area of the nursing facility to which all
2.35eligible employees have access; and
3.1    (4) instructions for employees who believe they have not received the
3.2compensation-related or wage increases specified in clause (2), as approved by the
3.3commissioner, and which must include a mailing address, e-mail address, and the
3.4telephone number that may be used by the employee to contact the commissioner or the
3.5commissioner's representative.
3.6    (g) The commissioner shall ensure that cost increases in distribution plans under
3.7paragraph (f), clause (2), that may be included in approved applications, comply with the
3.8following requirements:
3.9    (1) costs to be incurred during the applicable rate year resulting from wage and
3.10salary increases effective after October 1, 2006 2012, and prior to the first day of the
3.11nursing facility's payroll period that includes October 1, 2007 2013, shall be allowed if
3.12they were not used in the prior year's application;
3.13    (2) a portion of the costs resulting from tenure-related wage or salary increases
3.14may be considered to be allowable wage increases, according to formulas that the
3.15commissioner shall provide, where employee retention is above the average statewide
3.16rate of retention of direct care employees;
3.17    (3) the annualized amount of increases in costs for the employer's share of health
3.18and dental insurance, life insurance, disability insurance, and workers' compensation shall
3.19be allowable compensation-related increases if they are effective on or after April 1, 2007
3.20 2013, and prior to April 1, 2008 2014; and
3.21    (4) for nursing facilities in which employees are represented by an exclusive
3.22bargaining representative, the commissioner shall approve the application only upon receipt
3.23of a letter of acceptance of the distribution plan, in regard to members of the bargaining
3.24unit, signed by the exclusive bargaining agent and dated after May 25, 2007 20, 2013.
3.25Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of
3.26this section as having been met in regard to the members of the bargaining unit.
3.27    (h) The commissioner shall review applications received under paragraph (f) and
3.28shall provide the portion of the rate adjustment under paragraphs (b) and (c) if the
3.29requirements of this subdivision have been met. The rate adjustment shall be effective
3.30October 1. Notwithstanding paragraph (a), if the approved application distributes less
3.31money than is available, the amount of the rate adjustment shall be reduced so that the
3.32amount of money made available is equal to the amount to be distributed.

3.33    Sec. 2. Laws 2008, chapter 363, article 18, section 3, subdivision 6, is amended to read:
3.34
Subd. 6.Continuing Care Grants
3.35
(a) Aging and Adult Services Grants
-0-
(337,000)
4.1Base Adjustment. The general fund base is
4.2increased by $71,000 in fiscal year 2010 and
4.3$70,000 in fiscal year 2011.
4.4Grants Reduction. Effective July 1, 2008,
4.5base level funding for nonforecast, general
4.6fund aging and adult services state grants
4.7issued under this paragraph shall be reduced
4.8by 1.8 percent at the allotment level.
4.9Aging and Adult Services Adjustments.
4.10For the fiscal year ending June 30, 2009,
4.11the commissioner may allocate each grant
4.12affected by rate changes under this section in
4.13such a manner across the fiscal year to achieve
4.14the necessary cost savings and minimize
4.15disruption to grantees. To implement this
4.16paragraph, the commissioner may waive the
4.17requirements of Laws 2007, chapter 147,
4.18article 7, section 71, including the employee
4.19compensation-related cost requirements.
4.20Living-At-Home/Block Nurse Program
4.21Funding. Notwithstanding the provisions
4.22of Minnesota Statutes, section 256B.0917,
4.23subdivision 8
, for the fiscal year beginning
4.24July 1, 2008, the commissioner of human
4.25services shall transfer $240,000 from the
4.26community service grant program under
4.27Minnesota Statutes, section 256B.0917,
4.28subdivision 13
, to the living-at-home/block
4.29nurse program under Minnesota Statutes,
4.30section 256B.0917, subdivision 8, to provide
4.31$20,000 each for 12 living-at-home/block
4.32nurse programs currently operating without
4.33base funding. This is onetime funding.
4.34
(b) Alternative Care Grants
-0-
(198,000)
4.35This reduction is onetime.
5.1
(c) MA Long-Term Care Facilities Grants
(2,306,000)
3,045,000
5.2Nursing Facility Rate Increase. (a) For
5.3the rate year beginning October 1, 2008,
5.4the commissioner shall make available
5.5to each nursing facility reimbursed under
5.6Minnesota Statutes, section 256B.434,
5.7operating payment rate adjustments equal to
5.81.00 percent of the operating payment rates
5.9determined by the blending in Minnesota
5.10Statutes, section 256B.441, subdivision 55,
5.11paragraph (a).
5.12(b) Seventy-five percent of the money
5.13resulting from the rate adjustment under
5.14paragraph (a) must be used for increases in
5.15compensation-related costs for employees
5.16directly employed by the nursing facility
5.17on or after the effective date of the rate
5.18adjustment, except:
5.19(1) the administrator;
5.20(2) persons employed in the central office of
5.21a corporation that has an ownership interest
5.22in the nursing facility or exercises control
5.23over the nursing facility; and
5.24(3) persons paid by the nursing facility under
5.25a management contract.
5.26(c) Two-thirds of the money available
5.27under paragraph (b) must be used for wage
5.28increases for all employees directly employed
5.29by the nursing facility on or after the effective
5.30date of the rate adjustment, except those
5.31listed in paragraph (b), clauses (1) to (3).
5.32The wage adjustment that employees receive
5.33under this paragraph must be paid as an
5.34equal hourly percentage wage increase for all
6.1eligible employees. All wage increases under
6.2this paragraph must be effective on the same
6.3date. Only costs associated with the portion
6.4of the equal hourly percentage wage increase
6.5that goes to all employees shall qualify under
6.6this paragraph. Costs associated with wage
6.7increases in excess of the amount of the equal
6.8hourly percentage wage increase provided
6.9to all employees shall be allowed only for
6.10meeting the requirements in paragraph (b).
6.11This paragraph shall not apply to employees
6.12covered by a collective bargaining agreement.
6.13(d) The commissioner shall allow as
6.14compensation-related costs all costs for:
6.15(1) wages and salaries;
6.16(2) FICA taxes, Medicare taxes, state and
6.17federal unemployment taxes, and workers'
6.18compensation;
6.19(3) the employer's share of health and
6.20dental insurance, life insurance, disability
6.21insurance, long-term care insurance, uniform
6.22allowance, and pensions; and
6.23(4) other benefits provided, subject to the
6.24approval of the commissioner.
6.25(e) The portion of the rate adjustment under
6.26paragraph (a) that is not subject to the
6.27requirements in paragraphs (b) and (c) shall
6.28be provided to nursing facilities effective
6.29October 1, 2008.
6.30(f) Nursing facilities may apply for the
6.31portion of the rate adjustment under
6.32paragraph (a) that is subject to the
6.33requirements in paragraphs (b) and (c).
6.34The application must be submitted to the
7.1commissioner within six months of the
7.2effective date of the rate adjustment, and
7.3the nursing facility must provide additional
7.4information required by the commissioner
7.5within nine months of the effective date
7.6of the rate adjustment. The commissioner
7.7must respond to all applications within
7.8three weeks of receipt. The commissioner
7.9may waive the deadlines in this paragraph
7.10under extraordinary circumstances, to be
7.11determined at the sole discretion of the
7.12commissioner. The application must contain:
7.13(1) an estimate of the amounts of money that
7.14must be used as specified in paragraphs (b)
7.15and (c);
7.16(2) a detailed distribution plan specifying the
7.17allowable compensation-related and wage
7.18increases the nursing facility will implement
7.19to use the funds available in clause (1);
7.20(3) a description of how the nursing facility
7.21will notify eligible employees of the contents
7.22of the approved application, which must
7.23provide for giving each eligible employee a
7.24copy of the approved application, excluding
7.25the information required in clause (1), or
7.26posting a copy of the approved application,
7.27excluding the information required in clause
7.28(1), for a period of at least six weeks in
7.29an area of the nursing facility to which all
7.30eligible employees have access; and
7.31(4) instructions for employees who
7.32believe they have not received the
7.33compensation-related or wage increases
7.34specified in clause (2), as approved by the
7.35commissioner, and which must include a
8.1mailing address, e-mail address, and the
8.2telephone number that may be used by the
8.3employee to contact the commissioner or the
8.4commissioner's representative.
8.5(g) The commissioner shall ensure that
8.6cost increases in distribution plans under
8.7paragraph (f), clause (2), that may be
8.8included in approved applications, comply
8.9with the following requirements:
8.10(1) costs to be incurred during the applicable
8.11rate year resulting from wage and salary
8.12increases effective after October 1, 2007, and
8.13prior to the first day of the nursing facility's
8.14payroll period that includes October 1, 2008,
8.15shall be allowed if they were not used in the
8.16prior year's application;
8.17(2) a portion of the costs resulting from
8.18tenure-related wage or salary increases
8.19may be considered to be allowable wage
8.20increases, according to formulas that the
8.21commissioner shall provide, where employee
8.22retention is above the average statewide rate
8.23of retention of direct care employees;
8.24(3) the annualized amount of increases in
8.25costs for the employer's share of health and
8.26dental insurance, life insurance, disability
8.27insurance, and workers' compensation shall
8.28be allowable compensation-related increases
8.29if they are effective on or after April 1, 2008,
8.30and prior to April 1, 2009; and
8.31(4) for nursing facilities in which employees
8.32are represented by an exclusive bargaining
8.33representative, the commissioner shall
8.34approve the application only upon receipt of
8.35a letter of acceptance of the distribution plan,
9.1in regard to members of the bargaining unit,
9.2signed by the exclusive bargaining agent and
9.3dated after May 25, 2008. Upon receipt of
9.4the letter of acceptance, the commissioner
9.5shall deem all requirements of this rider as
9.6having been met in regard to the members
9.7of the bargaining unit.
9.8(h) The commissioner shall review
9.9applications received under paragraph (f)
9.10and shall provide the portion of the rate
9.11adjustment under paragraphs (b) and (c)
9.12if the requirements of this rider have been
9.13met. The rate adjustment shall be effective
9.14October 1, 2008. Notwithstanding paragraph
9.15(a), if the approved application distributes
9.16less money than is available, the amount of
9.17the rate adjustment shall be reduced so that
9.18the amount of money made available is equal
9.19to the amount to be distributed.
9.20(i) Of the general fund appropriation,
9.21$2,877,000 in fiscal year 2009 is for the
9.22purposes of paragraphs (a) to (h).
9.23(j) Notwithstanding any contrary provision
9.24of this article, this rider shall not expire.
9.25Nursing Facility Temporary Rate
9.26Adjustment. (a) Of the general fund
9.27appropriation, $2,877,000 for fiscal year
9.282009 is to make available to nursing
9.29facilities reimbursed under Minnesota
9.30Statutes, section 256B.434, for the rate year
9.31beginning October 1, 2008, a temporary
9.32rate adjustment equal to 1.0 percent of the
9.33operating payment rates determined by the
9.34blending in Minnesota Statutes, section
9.35256B.441, subdivision 55 , paragraph (a).
10.1This rate adjustment shall be removed from
10.2the facility's operating payment rate for the
10.3rate year beginning October 1, 2009.
10.4(b) Seventy-five percent of the money
10.5resulting from the rate adjustment under
10.6paragraph (a) must be used to provide
10.7quarterly bonus payments, and to pay
10.8for associated employer costs and other
10.9benefits as specified in Minnesota Statutes,
10.10section 256B.434, subdivision 19, paragraph
10.11(d), clauses (2) to (4), for all employees
10.12directly employed by the nursing facility on
10.13December 31, 2008; March 31, 2009; June
10.1430, 2009; and September 30, 2009, except:
10.15(1) the administrator;
10.16(2) persons employed in the central office of
10.17a corporation that has an ownership interest
10.18in the nursing facility or exercises control
10.19over the nursing facility; and
10.20(3) persons paid by the nursing facility under
10.21a management contract.
10.22(c) Two-thirds of the money available under
10.23paragraph (b) must be used for an equal
10.24hourly percentage wage bonus for all eligible
10.25employees.
10.26(d) Nursing facilities may apply for the
10.27portion of the rate adjustment subject to
10.28paragraphs (b) and (c), and the commissioner
10.29shall review and act on applications,
10.30according to the procedures specified in
10.31Minnesota Statutes, section 256B.434,
10.32subdivision 19
. The portion of the rate
10.33adjustment under paragraph (a) that is not
10.34subject to the requirements in paragraphs (b)
11.1and (c) shall be provided to nursing facilities
11.2effective October 1, 2008.
11.3(e) Notwithstanding any contrary provision
11.4in this article, this rider expires December
11.531, 2009.
11.6
11.7
(d) MA Long-Term Care Waivers and Home
Care Grants
-0-
(10,643,000)
11.8Manage Growth in TBI and CADI Waiver.
11.9During the fiscal years beginning on July
11.101, 2008, July 1, 2009, and July 1, 2010,
11.11the commissioner shall allocate money
11.12for home and community-based programs
11.13covered under Minnesota Statutes, section
11.14256B.49 , to ensure a reduction in state
11.15spending that is equivalent to limiting the
11.16caseload growth of the traumatic brain injury
11.17(TBI) waiver to 200 allocations in each
11.18year of the biennium and the community
11.19alternatives for disabled individuals (CADI)
11.20waiver to 1,500 allocations each year of the
11.21biennium. Priorities for the allocation of
11.22funds must be for individuals anticipated to
11.23be discharged from institutional settings or
11.24who are at imminent risk of a placement in
11.25an institutional setting. Notwithstanding any
11.26contrary section in this article, this provision
11.27expires June 30, 2011.
11.28
(e) Mental Health Grants
-0-
(4,823,000)
11.29Base Adjustment. This reduction is onetime.
11.30Funding Usage. Up to 75 percent of the
11.31fiscal year 2010 appropriation for adult
11.32mental health grants may be used to fund
11.33calendar year 2009 allocations for these
11.34programs, with the resulting calendar year
11.35funding pattern continuing into the future.
12.1
(f) Chemical Dependency Entitlement Grants
-0-
(2,069,000)
12.2Payments for Substance Abuse Treatment.
12.3For services provided in fiscal year 2009,
12.4county-negotiated rates and provider claims
12.5to the consolidated chemical dependency
12.6fund must not exceed rates charged for
12.7services in excess of those in effect on
12.8May 31, 2008. If statutes authorize a
12.9cost-of-living adjustment during fiscal year
12.102009, then notwithstanding any law to the
12.11contrary, fiscal year 2009 rates may not
12.12exceed those in effect on May 31, 2008, plus
12.13any authorized cost-of-living adjustments.
12.14Chemical Dependency Treatment Fund
12.15Special Revenue Account. The lesser of
12.16the balance of the consolidated chemical
12.17dependency treatment fund at the close of
12.18the fiscal year 2008, or $2,784,000 must be
12.19transferred and deposited into the general
12.20fund by September 1, 2008. The lesser of
12.21the balance of the consolidated chemical
12.22dependency treatment fund at the close of
12.23the fiscal year 2009, or $2,009,000 must be
12.24transferred and deposited into the general
12.25fund by September 1, 2009.
12.26
12.27
(g) Chemical Dependency Nonentitlement
Grants
-0-
1,967,000
12.28Base Level Adjustment. The general
12.29fund base for chemical dependency
12.30nonentitlement treatment grants must be
12.31reduced by $1,686,000 for fiscal year 2010
12.32and by $1,686,000 for fiscal year 2011.
12.33White Earth treatment facility. $2,000,000
12.34is appropriated from the general fund to
12.35the commissioner of human services for a
13.1grant to the White Earth tribe to purchase
13.2or develop one or more culturally specific
13.3treatment programs or capital facilities, or
13.4both, designed to serve youth from native
13.5cultures. This appropriation is onetime and
13.6is available until spent.
13.7Grants Reduction. Effective July 1, 2008,
13.8base level funding for nonforecast, general
13.9fund chemical dependency nonentitlement
13.10grants issued under this paragraph shall be
13.11reduced by 1.8 percent at the allotment level.
13.12
(h) Other Continuing Care Grants
-0-
(4,729,000)
13.13Base Level Adjustment. The general fund
13.14base is increased by $7,283,000 in fiscal year
13.152010 and $4,921,000 in fiscal year 2011.
13.16Housing Access Grants. Of the general
13.17fund appropriation, $250,000 is appropriated
13.18in fiscal year 2009 for housing access
13.19grants under Minnesota Statutes, section
13.20256B.0658 .
13.21Funding Usage. Up to 75 percent of
13.22the fiscal year 2010 appropriation for
13.23semi-independent living services grants and
13.24family support grants may be used to fund
13.25calendar year 2009 allocations for these
13.26programs, with the resulting calendar year
13.27funding pattern continuing into the future.
13.28Grants Reduction. Effective July 1, 2008,
13.29base level funding for nonforecast, general
13.30fund other continuing care grants issued
13.31under this paragraph, except for HIV grants,
13.32shall be reduced by 1.8 percent at the
13.33allotment level. HIV grants shall be reduced
13.34by 1.7 percent at the allotment level effective
13.35July 1, 2009.
14.1Other Continuing Care Grant
14.2Adjustments. For the fiscal year ending June
14.330, 2009, the commissioner may allocate
14.4each grant affected by rate changes under
14.5this section in such a manner across the fiscal
14.6year to achieve the necessary cost savings
14.7and minimize disruption to grantees. To
14.8implement this paragraph, the commissioner
14.9may waive the requirements of Laws 2007,
14.10chapter 147, article 7, section 71, including
14.11the employee compensation-related cost
14.12requirements.
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