Bill Text: MN SF61 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Publicly owned nursing facility additional local share of costs and payment rate clarification
Sponsorship: N/A
Status: (Introduced - Dead) 2011-01-20 - Referred to Health and Human Services [SF61 Detail]
Download: Minnesota-2011-SF61-Introduced.html
1.2relating to human services; clarifying the additional local share of certain
1.3publicly owned nursing facility costs; clarifying a publicly owned nursing facility
1.4payment rate;amending Minnesota Statutes 2010, sections 256B.19, subdivision
1.51e; 256B.441, subdivision 55a.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 256B.19, subdivision 1e, is amended to
1.8read:
1.9 Subd. 1e. Additional local share of certain nursing facility costs. Beginning
1.10January 1, 2011, or on the first day of the second month following federal approval,
1.11whichever occurs later, local government entities that own the physical plant or are the
1.12license holders of nursing facilities receiving rate adjustments under section256B.441 ,
1.13subdivision 55a, shall be responsible for paying the portion of nonfederal costs calculated
1.14under section256B.441 , subdivision 55a, paragraph (d). Payments of the nonfederal share
1.15shall be made monthly to the commissioner in amounts determined in accordance with
1.16section256B.441 , subdivision 55a, paragraph (d). Payments for each month beginning
1.17in January 2011 on the effective date of the rate adjustment through September 2015 shall
1.18be due by the 15th day of the following month. If any provider obligated to pay an amount
1.19under this subdivision is more than two months delinquent in the timely payment of the
1.20monthly installment, the commissioner may withhold payments, penalties, and interest in
1.21accordance with the methods outlined in section256.9657 , subdivision 7a.
1.22EFFECTIVE DATE.This section is effective the day following final enactment.
2.1 Sec. 2. Minnesota Statutes 2010, section 256B.441, subdivision 55a, is amended to
2.2read:
2.3 Subd. 55a. Alternative to phase-in for publicly owned nursing facilities. (a) For
2.4operating payment rates implemented between January 1, 2011, or on the first day of the
2.5second month following federal approval, whichever occurs later, and September 30,
2.62015, the commissioner shall allow nursing facilities whose physical plant is owned or
2.7whose license is held by a city, county, or hospital district to apply for a higher payment
2.8rate under this section if the local government entity agrees to pay a specified portion of
2.9the nonfederal share of medical assistance costs. Nursing facilities that apply shall be
2.10eligible to select an operating payment rate, with a weight of1.00 , up to the rate calculated
2.11in subdivision 54, without application of the phase-in under subdivision 55. The rates for
2.12the other RUG's levels shall be computed as provided under subdivision 54.
2.13(b) Rates determined under this subdivision shall take effect beginning January 1,
2.142011, or on the first day of the second month following federal approval, whichever occurs
2.15later, based on cost reports for the rate year ending September 30, 2009, and in future rate
2.16years, rates determined for nursing facilities participating under this subdivision shall take
2.17effect on October 1 of each year, based on the most recent available cost report.
2.18(c) Eligible nursing facilities that wish to participate under this subdivision shall
2.19make an application to the commissioner by September 30, 2010, or by June 30 of any
2.20subsequent year prior to June 30, 2015.Participation under this subdivision is irrevocable.
2.21If paragraph (a) does not result in a rate greater than what would have been provided
2.22without application of this subdivision, a facility's rates shall be calculated as otherwise
2.23provided and no payment by the local government entity shall be required under paragraph
2.24(d).
2.25(d) For each participating nursing facility, the public entity that owns the physical
2.26plant or is the license holder of the nursing facility shall pay to the state the entire
2.27nonfederal share of medical assistance payments received as a result of the difference
2.28between the nursing facility's payment rate under subdivision 54, paragraph (a), and
2.29the rates that the nursing facility would otherwise be paid without application of this
2.30subdivision under subdivision 55 as determined by the commissioner.
2.31(e) The commissioner may, at any time, reduce the payments under this subdivision
2.32based on the commissioner's determination that the payments shall cause nursing facility
2.33rates to exceed the state's Medicare upper payment limit or any other federal limitation. If
2.34the commissioner determines a reduction is necessary, the commissioner shall reduce all
2.35payment rates for participating nursing facilities by a percentage applied to the amount of
2.36increase they would otherwise receive under this subdivision and shall notify participating
3.1facilities of the reductions. If payments to a nursing facility are reduced, payments under
3.2section256B.19 , subdivision 1e, shall be reduced accordingly.
3.3EFFECTIVE DATE.This section is effective the day following final enactment.
1.3publicly owned nursing facility costs; clarifying a publicly owned nursing facility
1.4payment rate;amending Minnesota Statutes 2010, sections 256B.19, subdivision
1.51e; 256B.441, subdivision 55a.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 256B.19, subdivision 1e, is amended to
1.8read:
1.9 Subd. 1e. Additional local share of certain nursing facility costs. Beginning
1.10January 1, 2011, or on the first day of the second month following federal approval,
1.11whichever occurs later, local government entities that own the physical plant or are the
1.12license holders of nursing facilities receiving rate adjustments under section
1.13subdivision 55a, shall be responsible for paying the portion of nonfederal costs calculated
1.14under section
1.15shall be made monthly to the commissioner in amounts determined in accordance with
1.16section
1.17
1.18be due by the 15th day of the following month. If any provider obligated to pay an amount
1.19under this subdivision is more than two months delinquent in the timely payment of the
1.20monthly installment, the commissioner may withhold payments, penalties, and interest in
1.21accordance with the methods outlined in section
1.22EFFECTIVE DATE.This section is effective the day following final enactment.
2.1 Sec. 2. Minnesota Statutes 2010, section 256B.441, subdivision 55a, is amended to
2.2read:
2.3 Subd. 55a. Alternative to phase-in for publicly owned nursing facilities. (a) For
2.4operating payment rates implemented between January 1, 2011, or on the first day of the
2.5second month following federal approval, whichever occurs later, and September 30,
2.62015, the commissioner shall allow nursing facilities whose physical plant is owned or
2.7whose license is held by a city, county, or hospital district to apply for a higher payment
2.8rate under this section if the local government entity agrees to pay a specified portion of
2.9the nonfederal share of medical assistance costs. Nursing facilities that apply shall be
2.10eligible to select an operating payment rate, with a weight of
2.11in subdivision 54, without application of the phase-in under subdivision 55. The rates for
2.12the other RUG's levels shall be computed as provided under subdivision 54.
2.13(b) Rates determined under this subdivision shall take effect beginning January 1,
2.142011, or on the first day of the second month following federal approval, whichever occurs
2.15later, based on cost reports for the rate year ending September 30, 2009, and in future rate
2.16years, rates determined for nursing facilities participating under this subdivision shall take
2.17effect on October 1 of each year, based on the most recent available cost report.
2.18(c) Eligible nursing facilities that wish to participate under this subdivision shall
2.19make an application to the commissioner by September 30, 2010, or by June 30 of any
2.20subsequent year prior to June 30, 2015.
2.21If paragraph (a) does not result in a rate greater than what would have been provided
2.22without application of this subdivision, a facility's rates shall be calculated as otherwise
2.23provided and no payment by the local government entity shall be required under paragraph
2.24(d).
2.25(d) For each participating nursing facility, the public entity that owns the physical
2.26plant or is the license holder of the nursing facility shall pay to the state the entire
2.27nonfederal share of medical assistance payments received as a result of the difference
2.28between the nursing facility's payment rate under subdivision 54, paragraph (a), and
2.29the rates that the nursing facility would otherwise be paid without application of this
2.30subdivision under subdivision 55 as determined by the commissioner.
2.31(e) The commissioner may, at any time, reduce the payments under this subdivision
2.32based on the commissioner's determination that the payments shall cause nursing facility
2.33rates to exceed the state's Medicare upper payment limit or any other federal limitation. If
2.34the commissioner determines a reduction is necessary, the commissioner shall reduce all
2.35payment rates for participating nursing facilities by a percentage applied to the amount of
2.36increase they would otherwise receive under this subdivision and shall notify participating
3.1facilities of the reductions. If payments to a nursing facility are reduced, payments under
3.2section
3.3EFFECTIVE DATE.This section is effective the day following final enactment.
