Bill Text: MN HF2773 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Mille Lacs, Isanti, and Kanabec Counties; nursing facility operating payment rates modified.
Sponsorship: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2014-03-06 - Introduction and first reading, referred to Health and Human Services Finance [HF2773 Detail]
Download: Minnesota-2013-HF2773-Introduced.html
1.2relating to human services; modifying nursing facility operating payment rates
1.3for certain facilities;amending Minnesota Statutes 2012, section 256B.431, by
1.4adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 256B.431, is amended by adding a
1.7subdivision to read:
1.8 Subd. 46. Rate increase for facilities in Mille Lacs, Isanti, and Kanabec
1.9Counties. (a) Effective October 1, 2014, the operating payment rates of nursing facilities
1.10in Mille Lacs, Isanti, and Kanabec Counties that are reimbursed under this section, section
1.11256B.434, or section 256B.441, shall be increased to be equal, for a resource utilization
1.12group rate with a weight of 1.00, to the geographic group III median rate for the same
1.13resource utilization group weight. The calculations under this subdivision shall be added
1.14to the rates before any other operating payment rate adjustments effective on October
1.151, 2014, are computed. The percentage of the operating payment rates to be case-mix
1.16adjusted shall be equal to the percentage that is case-mix adjusted in the September 30,
1.172014, operating payment rates.
1.18(b) Seventy-five percent of the money resulting from the rate adjustment under
1.19paragraph (a) must be used for increases in compensation-related costs for employees
1.20directly employed by the nursing facility on or after the effective date of the rate
1.21adjustment, except:
1.22(1) the administrator;
1.23(2) persons employed in the central office of a corporation that has an ownership
1.24interest in the nursing facility or exercises control over the nursing facility; and
2.1(3) persons paid by the nursing facility under a management contract.
2.2(c) The commissioner shall allow as compensation-related costs all costs for:
2.3(1) wage and salary increases effective after May 25, 2014;
2.4(2) the employer's share of FICA taxes, Medicare taxes, state and federal
2.5unemployment taxes, and workers' compensation;
2.6(3) the employer's share of health and dental insurance, life insurance, disability
2.7insurance, long-term care insurance, uniform allowance, and pensions; and
2.8(4) other benefits provided and workforce needs, including the recruiting and
2.9training of employees, subject to the approval of the commissioner.
2.10(d) The portion of the rate adjustment under paragraph (a) that is not subject to the
2.11requirements of paragraph (b) shall be provided to nursing facilities effective October 1,
2.122014. Nursing facilities may apply for the portion of the rate adjustment under paragraph
2.13(a) that is subject to the requirements of paragraph (b). The application must be submitted
2.14to the commissioner within six months of the effective date of the rate adjustment, and
2.15the nursing facility must provide additional information required by the commissioner
2.16within nine months of the effective date of the rate adjustment. The commissioner must
2.17respond to all applications within three weeks of receipt. The commissioner may waive
2.18the deadlines in the paragraph under extraordinary circumstances, to be determined at the
2.19sole discretion of the commissioner. The application must contain:
2.20(1) an estimate of the amounts of money that must be used as specified in paragraph
2.21(b);
2.22(2) a detailed distribution plan specifying the allowable compensation-related
2.23increases the nursing facility will implement to use the funds available in clause (1);
2.24(3) a description of how the nursing facility will notify eligible employees of
2.25the contents of the approved application, which must provide for giving each eligible
2.26employee a copy of the approved application, excluding the information required in clause
2.27(1), or posting a copy of the approved application, excluding the information required in
2.28clause (1), for a period of at least six weeks in an area of the nursing facility to which all
2.29eligible employees have access; and
2.30(4) instructions for employees who believe they have not received the
2.31compensation-related increases specified in clause (2), as approved by the commissioner,
2.32and which must include a mailing address, an e-mail address, and the telephone number
2.33that may be used by the employee to contact the commissioner or the commissioner's
2.34representative.
3.1(e) The commissioner shall ensure that cost increases in distribution plans under
3.2paragraph (d), clause (2), that may be included in approved applications comply with the
3.3following requirements:
3.4(1) a portion of the costs resulting from tenure-related wage or salary increases
3.5may be considered to be allowable wage increases, according to formulas that the
3.6commissioner shall provide, where employee retention is above the average statewide
3.7rate of retention of direct-care employees;
3.8(2) the annualized amount of increases in costs for the employer's share of health
3.9and dental insurance, life insurance, disability insurance, and workers' compensation
3.10shall be allowable compensation-related increases if they are effective on or after April
3.111, 2014, and prior to April 1, 2015; and
3.12(3) for nursing facilities in which employees are represented by an exclusive
3.13bargaining representative, the commissioner shall approve the application only upon
3.14receipt of a letter of acceptance of the distribution plan, in regard to members of the
3.15bargaining unit, signed by the exclusive bargaining agent and dated after May 25, 2014.
3.16Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of
3.17this provision as having been met in regard to the members of the bargaining unit.
3.18(f) The commissioner shall review applications received under paragraph (d) and
3.19shall provide the portion of the rate adjustment under paragraph (b) if the requirements of
3.20this subdivision have been met. The rate adjustment shall be effective October 1, 2014.
3.21Notwithstanding paragraph (a), if the approved application distributes less money than is
3.22available, the amount of the rate adjustment shall be reduced so that the amount of money
3.23made available is equal to the amount to be distributed.
3.24(g) The increase in this subdivision shall be applied as a percentage to operating
3.25payment rates in effect on September 30, 2014. For each facility the commissioner
3.26shall determine the operating payment rate, not including any rate components resulting
3.27from equitable cost-sharing for publicly owned nursing facility program participation
3.28under section 256B.441, subdivision 55a, or performance-based incentive payment
3.29program participation under section 256B.434, subdivision 4, paragraph (d), for a resource
3.30utilization group class with a weight of 1.00 in effect on September 30, 2014.
1.3for certain facilities;amending Minnesota Statutes 2012, section 256B.431, by
1.4adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 256B.431, is amended by adding a
1.7subdivision to read:
1.8 Subd. 46. Rate increase for facilities in Mille Lacs, Isanti, and Kanabec
1.9Counties. (a) Effective October 1, 2014, the operating payment rates of nursing facilities
1.10in Mille Lacs, Isanti, and Kanabec Counties that are reimbursed under this section, section
1.11256B.434, or section 256B.441, shall be increased to be equal, for a resource utilization
1.12group rate with a weight of 1.00, to the geographic group III median rate for the same
1.13resource utilization group weight. The calculations under this subdivision shall be added
1.14to the rates before any other operating payment rate adjustments effective on October
1.151, 2014, are computed. The percentage of the operating payment rates to be case-mix
1.16adjusted shall be equal to the percentage that is case-mix adjusted in the September 30,
1.172014, operating payment rates.
1.18(b) Seventy-five percent of the money resulting from the rate adjustment under
1.19paragraph (a) must be used for increases in compensation-related costs for employees
1.20directly employed by the nursing facility on or after the effective date of the rate
1.21adjustment, except:
1.22(1) the administrator;
1.23(2) persons employed in the central office of a corporation that has an ownership
1.24interest in the nursing facility or exercises control over the nursing facility; and
2.1(3) persons paid by the nursing facility under a management contract.
2.2(c) The commissioner shall allow as compensation-related costs all costs for:
2.3(1) wage and salary increases effective after May 25, 2014;
2.4(2) the employer's share of FICA taxes, Medicare taxes, state and federal
2.5unemployment taxes, and workers' compensation;
2.6(3) the employer's share of health and dental insurance, life insurance, disability
2.7insurance, long-term care insurance, uniform allowance, and pensions; and
2.8(4) other benefits provided and workforce needs, including the recruiting and
2.9training of employees, subject to the approval of the commissioner.
2.10(d) The portion of the rate adjustment under paragraph (a) that is not subject to the
2.11requirements of paragraph (b) shall be provided to nursing facilities effective October 1,
2.122014. Nursing facilities may apply for the portion of the rate adjustment under paragraph
2.13(a) that is subject to the requirements of paragraph (b). The application must be submitted
2.14to the commissioner within six months of the effective date of the rate adjustment, and
2.15the nursing facility must provide additional information required by the commissioner
2.16within nine months of the effective date of the rate adjustment. The commissioner must
2.17respond to all applications within three weeks of receipt. The commissioner may waive
2.18the deadlines in the paragraph under extraordinary circumstances, to be determined at the
2.19sole discretion of the commissioner. The application must contain:
2.20(1) an estimate of the amounts of money that must be used as specified in paragraph
2.21(b);
2.22(2) a detailed distribution plan specifying the allowable compensation-related
2.23increases the nursing facility will implement to use the funds available in clause (1);
2.24(3) a description of how the nursing facility will notify eligible employees of
2.25the contents of the approved application, which must provide for giving each eligible
2.26employee a copy of the approved application, excluding the information required in clause
2.27(1), or posting a copy of the approved application, excluding the information required in
2.28clause (1), for a period of at least six weeks in an area of the nursing facility to which all
2.29eligible employees have access; and
2.30(4) instructions for employees who believe they have not received the
2.31compensation-related increases specified in clause (2), as approved by the commissioner,
2.32and which must include a mailing address, an e-mail address, and the telephone number
2.33that may be used by the employee to contact the commissioner or the commissioner's
2.34representative.
3.1(e) The commissioner shall ensure that cost increases in distribution plans under
3.2paragraph (d), clause (2), that may be included in approved applications comply with the
3.3following requirements:
3.4(1) a portion of the costs resulting from tenure-related wage or salary increases
3.5may be considered to be allowable wage increases, according to formulas that the
3.6commissioner shall provide, where employee retention is above the average statewide
3.7rate of retention of direct-care employees;
3.8(2) the annualized amount of increases in costs for the employer's share of health
3.9and dental insurance, life insurance, disability insurance, and workers' compensation
3.10shall be allowable compensation-related increases if they are effective on or after April
3.111, 2014, and prior to April 1, 2015; and
3.12(3) for nursing facilities in which employees are represented by an exclusive
3.13bargaining representative, the commissioner shall approve the application only upon
3.14receipt of a letter of acceptance of the distribution plan, in regard to members of the
3.15bargaining unit, signed by the exclusive bargaining agent and dated after May 25, 2014.
3.16Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of
3.17this provision as having been met in regard to the members of the bargaining unit.
3.18(f) The commissioner shall review applications received under paragraph (d) and
3.19shall provide the portion of the rate adjustment under paragraph (b) if the requirements of
3.20this subdivision have been met. The rate adjustment shall be effective October 1, 2014.
3.21Notwithstanding paragraph (a), if the approved application distributes less money than is
3.22available, the amount of the rate adjustment shall be reduced so that the amount of money
3.23made available is equal to the amount to be distributed.
3.24(g) The increase in this subdivision shall be applied as a percentage to operating
3.25payment rates in effect on September 30, 2014. For each facility the commissioner
3.26shall determine the operating payment rate, not including any rate components resulting
3.27from equitable cost-sharing for publicly owned nursing facility program participation
3.28under section 256B.441, subdivision 55a, or performance-based incentive payment
3.29program participation under section 256B.434, subdivision 4, paragraph (d), for a resource
3.30utilization group class with a weight of 1.00 in effect on September 30, 2014.
