Bill Text: MN SF2013 | 2013-2014 | 88th Legislature | Introduced


Bill Title: Human services operations and bond requirements for medical suppliers modification

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2014-02-27 - Referred to Health, Human Services and Housing [SF2013 Detail]

Download: Minnesota-2013-SF2013-Introduced.html

1.1A bill for an act
1.2relating to human services; modifying provisions related to human services
1.3operations; modifying bond requirements for medical suppliers; repealing
1.4certain reports and obsolete rules; authorizing rulemaking; making technical
1.5changes;amending Minnesota Statutes 2012, sections 256B.5016, subdivision
1.61; 256B.69, subdivision 16; 393.01, subdivisions 2, 7; Minnesota Statutes 2013
1.7Supplement, section 256B.04, subdivision 21; Laws 2011, First Special Session
1.8chapter 9, article 9, section 17; repealing Minnesota Statutes 2012, section
1.9256.01, subdivision 32; Minnesota Rules, parts 9500.1126; 9500.1450, subpart 3;
1.109500.1452, subpart 3; 9500.1456; 9525.1580.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12    Section 1. Minnesota Statutes 2013 Supplement, section 256B.04, subdivision 21,
1.13is amended to read:
1.14    Subd. 21. Provider enrollment. (a) If the commissioner or the Centers for
1.15Medicare and Medicaid Services determines that a provider is designated "high-risk," the
1.16commissioner may withhold payment from providers within that category upon initial
1.17enrollment for a 90-day period. The withholding for each provider must begin on the date
1.18of the first submission of a claim.
1.19(b) An enrolled provider that is also licensed by the commissioner under chapter
1.20245A must designate an individual as the entity's compliance officer. The compliance
1.21officer must:
1.22(1) develop policies and procedures to assure adherence to medical assistance laws
1.23and regulations and to prevent inappropriate claims submissions;
1.24(2) train the employees of the provider entity, and any agents or subcontractors of
1.25the provider entity including billers, on the policies and procedures under clause (1);
1.26(3) respond to allegations of improper conduct related to the provision or billing of
1.27medical assistance services, and implement action to remediate any resulting problems;
2.1(4) use evaluation techniques to monitor compliance with medical assistance laws
2.2and regulations;
2.3(5) promptly report to the commissioner any identified violations of medical
2.4assistance laws or regulations; and
2.5    (6) within 60 days of discovery by the provider of a medical assistance
2.6reimbursement overpayment, report the overpayment to the commissioner and make
2.7arrangements with the commissioner for the commissioner's recovery of the overpayment.
2.8The commissioner may require, as a condition of enrollment in medical assistance, that a
2.9provider within a particular industry sector or category establish a compliance program that
2.10contains the core elements established by the Centers for Medicare and Medicaid Services.
2.11(c) The commissioner may revoke the enrollment of an ordering or rendering
2.12provider for a period of not more than one year, if the provider fails to maintain and, upon
2.13request from the commissioner, provide access to documentation relating to written orders
2.14or requests for payment for durable medical equipment, certifications for home health
2.15services, or referrals for other items or services written or ordered by such provider, when
2.16the commissioner has identified a pattern of a lack of documentation. A pattern means a
2.17failure to maintain documentation or provide access to documentation on more than one
2.18occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a
2.19provider under the provisions of section 256B.064.
2.20(d) The commissioner shall terminate or deny the enrollment of any individual or
2.21entity if the individual or entity has been terminated from participation in Medicare or
2.22under the Medicaid program or Children's Health Insurance Program of any other state.
2.23(e) As a condition of enrollment in medical assistance, the commissioner shall
2.24require that a provider designated "moderate" or "high-risk" by the Centers for Medicare
2.25and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid
2.26Services, its agents, or its designated contractors and the state agency, its agents, or its
2.27designated contractors to conduct unannounced on-site inspections of any provider location.
2.28The commissioner shall publish in the Minnesota Health Care Program Provider Manual a
2.29list of provider types designated "limited," "moderate," or "high-risk," based on the criteria
2.30and standards used to designate Medicare providers in Code of Federal Regulations, title
2.3142, section 424.518. The list and criteria are not subject to the requirements of chapter 14.
2.32The commissioner's designations are not subject to administrative appeal.
2.33(f) As a condition of enrollment in medical assistance, the commissioner shall
2.34require that a high-risk provider, or a person with a direct or indirect ownership interest in
2.35the provider of five percent or higher, consent to criminal background checks, including
2.36fingerprinting, when required to do so under state law or by a determination by the
3.1commissioner or the Centers for Medicare and Medicaid Services that a provider is
3.2designated high-risk for fraud, waste, or abuse.
3.3(g)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all
3.4durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers
3.5operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is
3.6annually renewed and designates the Minnesota Department of Human Services as the
3.7obligee, and must be submitted in a form approved by the commissioner. A medical
3.8supplier subject to the surety bond requirement in this clause is limited to a provider
3.9enrolled or eligible for enrollment as provider type 76. For purposes of this clause, the
3.10following providers are not medical suppliers and are not required to obtain a surety bond:
3.11a federally qualified health center, a home health agency, the Indian Health Service, a
3.12pharmacy, and a rural health clinic.
3.13(2) At the time of initial enrollment or reenrollment, the provider agency all medical
3.14suppliers enrolled as provider type 76 must purchase a performance bond of $50,000. If
3.15a revalidating provider's Medicaid revenue in the previous calendar year is up to and
3.16including $300,000, the provider agency must purchase a performance bond of $50,000. If
3.17a revalidating provider's Medicaid revenue in the previous calendar year is over $300,000,
3.18the provider agency must purchase a performance bond of $100,000. The performance
3.19bond must allow for recovery of costs and fees in pursuing a claim on the bond.
3.20(3) For purposes of clauses (1) and (2), "provider type 76" means a medical supplier
3.21that can purchase medical equipment or supplies for sale or rental to the general public
3.22and is able to perform or arrange for necessary repairs to and maintenance of equipment
3.23offered for sale or rental.
3.24(h) The Department of Human Services may require a provider to purchase a
3.25performance surety bond as a condition of initial enrollment, reenrollment, reinstatement,
3.26or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the
3.27department determines there is significant evidence of or potential for fraud and abuse by
3.28the provider, or (3) the provider or category of providers is designated high-risk pursuant
3.29to paragraph (a) and as per Code of Federal Regulations, title 42, section 455.450. The
3.30performance bond must be in an amount of $100,000 or ten percent of the provider's
3.31payments from Medicaid during the immediately preceding 12 months, whichever is
3.32greater. The performance bond must name the Department of Human Services as an
3.33obligee and must allow for recovery of costs and fees in pursuing a claim on the bond.

3.34    Sec. 2. Minnesota Statutes 2012, section 256B.5016, subdivision 1, is amended to read:
4.1    Subdivision 1. Managed care pilot. The commissioner may initiate a capitated
4.2risk-based managed care option for services in an intermediate care facility for persons
4.3with developmental disabilities according to the terms and conditions of the federal
4.4agreement governing the managed care pilot. The commissioner may grant a variance
4.5to any of the provisions in sections 256B.501 to 256B.5015 and Minnesota Rules, parts
4.69525.1200 to 9525.1330 and 9525.1580.

4.7    Sec. 3. Minnesota Statutes 2012, section 256B.69, subdivision 16, is amended to read:
4.8    Subd. 16. Project extension. Minnesota Rules, parts 9500.1450; 9500.1451;
4.99500.1452; 9500.1453; 9500.1454; 9500.1455; 9500.1456; 9500.1457; 9500.1458;
4.109500.1459; 9500.1460; 9500.1461; 9500.1462; 9500.1463; and 9500.1464 are extended.

4.11    Sec. 4. Minnesota Statutes 2012, section 393.01, subdivision 2, is amended to read:
4.12    Subd. 2. Selection of members, terms, vacancies. Except in counties which
4.13contain a city of the first class and counties having a poor and hospital commission, the
4.14local social services agency shall consist of seven members, including the board of county
4.15commissioners, to be selected as herein provided; two members, one of whom shall be
4.16a woman, shall be appointed by the commissioner of human services board of county
4.17commissioners, one each year for a full term of two years, from a list of residents, submitted
4.18by the board of county commissioners. As each term expires or a vacancy occurs by reason
4.19of death or resignation, a successor shall be appointed by the commissioner of human
4.20services board of county commissioners for the full term of two years or the balance of any
4.21unexpired term from a list of one or more, not to exceed three residents submitted by the
4.22board of county commissioners. The board of county commissioners may, by resolution
4.23adopted by a majority of the board, determine that only three of their members shall be
4.24members of the local social services agency, in which event the local social services agency
4.25shall consist of five members instead of seven. When a vacancy occurs on the local social
4.26services agency by reason of the death, resignation, or expiration of the term of office of a
4.27member of the board of county commissioners, the unexpired term of such member shall
4.28be filled by appointment by the county commissioners. Except to fill a vacancy the term
4.29of office of each member of the local social services agency shall commence on the first
4.30Thursday after the first Monday in July, and continue until the expiration of the term
4.31for which such member was appointed or until a successor is appointed and qualifies.
4.32If the board of county commissioners shall refuse, fail, omit, or neglect to submit one
4.33or more nominees to the commissioner of human services for appointment to the local
4.34social services agency by the commissioner of human services, as herein provided, or to
5.1appoint the three members to the local social services agency, as herein provided, by the
5.2time when the terms of such members commence, or, in the event of vacancies, for a
5.3period of 30 days thereafter, the commissioner of human services is hereby empowered
5.4to and shall forthwith appoint residents of the county to the local social services agency.
5.5The commissioner of human services, on refusing to appoint a nominee from the list of
5.6nominees submitted by the board of county commissioners, shall notify the county board
5.7of such refusal. The county board shall thereupon nominate additional nominees. Before
5.8the commissioner of human services shall fill any vacancy hereunder resulting from the
5.9failure or refusal of the board of county commissioners of any county to act, as required
5.10herein, the commissioner of human services shall mail 15 days' written notice to the board
5.11of county commissioners of its intention to fill such vacancy or vacancies unless the board
5.12of county commissioners shall act before the expiration of the 15-day period.

5.13    Sec. 5. Minnesota Statutes 2012, section 393.01, subdivision 7, is amended to read:
5.14    Subd. 7. Joint exercise of powers. Notwithstanding the provisions of subdivision 1
5.15two or more counties may by resolution of their respective boards of county commissioners,
5.16agree to combine the functions of their separate local social services agency into one local
5.17social services agency to serve the two or more counties that enter into the agreement.
5.18Such agreement may be for a definite term or until terminated in accordance with its terms.
5.19When two or more counties have agreed to combine the functions of their separate local
5.20social services agency, a single local social services agency in lieu of existing individual
5.21local social services agency shall be established to direct the activities of the combined
5.22agency. This agency shall have the same powers, duties and functions as an individual local
5.23social services agency. The single local social services agency shall have representation
5.24from each of the participating counties with selection of the members to be as follows:
5.25(a) Each board of county commissioners entering into the agreement shall on an
5.26annual basis select one or two of its members to serve on the single local social services
5.27agency.
5.28(b) Each board of county commissioners entering into the agreement shall in
5.29accordance with procedures established by the commissioner of human services, submit a
5.30list of names of three county residents, who shall not be county commissioners, to the
5.31commissioner of human services. The commissioner shall select one person from each
5.32county list county resident who is not a county commissioner to serve as a local social
5.33services agency member.
6.1(c) The composition of the agency may be determined by the boards of county
6.2commissioners entering into the agreement providing that no less than one-third of the
6.3members are appointed as provided in clause (b).

6.4    Sec. 6. Laws 2011, First Special Session chapter 9, article 9, section 17, is amended to
6.5read:
6.6    Sec. 17. SIMPLIFICATION OF ELIGIBILITY AND ENROLLMENT
6.7PROCESS.
6.8(a) The commissioner of human services shall issue a request for information for an
6.9integrated service delivery system for health care programs, food support, cash assistance,
6.10and child care. The commissioner shall determine, in consultation with partners in
6.11paragraph (c), if the products meet departments' and counties' functions. The request for
6.12information may incorporate a performance-based vendor financing option in which the
6.13vendor shares the risk of the project's success. The health care system must be developed
6.14in phases with the capacity to integrate food support, cash assistance, and child care
6.15programs as funds are available. The request for information must require that the system:
6.16(1) streamline eligibility determinations and case processing to support statewide
6.17eligibility processing;
6.18(2) enable interested persons to determine eligibility for each program, and to apply
6.19for programs online in a manner that the applicant will be asked only those questions
6.20relevant to the programs for which the person is applying;
6.21(3) leverage technology that has been operational in other state environments with
6.22similar requirements; and
6.23(4) include Web-based application, worker application processing support, and the
6.24opportunity for expansion.
6.25(b) The commissioner shall issue a final report, including the implementation plan,
6.26to the chairs and ranking minority members of the legislative committees with jurisdiction
6.27over health and human services no later than January 31, 2012.
6.28(c) The commissioner shall partner with counties, a service delivery authority
6.29established under Minnesota Statutes, chapter 402A, the Office of Enterprise Technology,
6.30other state agencies, and service partners to develop an integrated service delivery
6.31framework, which will simplify and streamline human services eligibility and enrollment
6.32processes. The primary objectives for the simplification effort include significantly
6.33improved eligibility processing productivity resulting in reduced time for eligibility
6.34determination and enrollment, increased customer service for applicants and recipients of
6.35services, increased program integrity, and greater administrative flexibility.
7.1(d) The commissioner, along with a county representative appointed by the
7.2Association of Minnesota Counties, shall report specific implementation progress to the
7.3legislature annually beginning May 15, 2012.
7.4(e) The commissioner shall work with the Minnesota Association of County Social
7.5Service Administrators and the Office of Enterprise Technology to develop collaborative
7.6task forces, as necessary, to support implementation of the service delivery components
7.7under this paragraph. The commissioner must evaluate, develop, and include as part
7.8of the integrated eligibility and enrollment service delivery framework, the following
7.9minimum components:
7.10(1) screening tools for applicants to determine potential eligibility as part of an
7.11online application process;
7.12(2) the capacity to use databases to electronically verify application and renewal
7.13data as required by law;
7.14(3) online accounts accessible by applicants and enrollees;
7.15(4) an interactive voice response system, available statewide, that provides case
7.16information for applicants, enrollees, and authorized third parties;
7.17(5) an electronic document management system that provides electronic transfer of
7.18all documents required for eligibility and enrollment processes; and
7.19(6) a centralized customer contact center that applicants, enrollees, and authorized
7.20third parties can use statewide to receive program information, application assistance,
7.21and case information, report changes, make cost-sharing payments, and conduct other
7.22eligibility and enrollment transactions.
7.23(f) (e) Subject to a legislative appropriation, the commissioner of human services
7.24shall issue a request for proposal for the appropriate phase of an integrated service delivery
7.25system for health care programs, food support, cash assistance, and child care.

7.26    Sec. 7. RULEMAKING; REDUNDANT PROVISION REGARDING
7.27TRANSITION LENSES.
7.28The commissioner of human services shall amend Minnesota Rules, part 9505.0277,
7.29subpart 3, to remove transition lenses from the list of eyeglass services not eligible for
7.30payment under the medical assistance program. The commissioner may use the good
7.31cause exemption in Minnesota Statutes, section 14.388, subdivision 1, clause (4), to adopt
7.32rules under this section. Minnesota Statutes, section 14.386, does not apply except as
7.33provided in Minnesota Statutes, section 14.388.

7.34    Sec. 8. REVISOR'S INSTRUCTION.
8.1The revisor of statutes shall remove cross-references to the sections and parts
8.2repealed in section 9 wherever they appear in Minnesota Rules and shall make changes
8.3necessary to correct the punctuation, grammar, or structure of the remaining text and
8.4preserve its meaning.

8.5    Sec. 9. REPEALER.
8.6(a) Minnesota Statutes 2012, section 256.01, subdivision 32, is repealed.
8.7(b) Minnesota Rules, parts 9500.1126; 9500.1450, subpart 3; 9500.1452, subpart 3;
8.89500.1456; and 9525.1580, are repealed.
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