HF1005 (Legislative Session 94 (2025-2026))

Medical assistance rate adjustments established for physician professional services, residential service rates increased, and statewide reimbursement rate for behavioral health home services required.

Related bill: SF1402

AI Generated Summary

This legislative bill, referred to as H.F. No. 1005, covers several adjustments to Minnesota's health insurance system:

  1. Adjustments in Medical Assistance Rate:

    • Rate adjustments for physician and professional services.
    • Increasing rates for certain residential services.
    • Establishing a statewide reimbursement rate for behavioral health home services.
  2. Hospital Payment Rate Changes:

    • Payment methodologies are defined for different types of hospitals, including critical access hospitals, long-term hospitals, and rehabilitation facilities, with methodologies ranging from cost-based to per diem and DRG-based systems.
    • Defines new rebasing rules for the period from January 1, 2011, to October 31, 2014.
    • Adjustments to payment rates after November 1, 2014, to maintain budget neutrality.
    • Considerations for specific services such as pediatric and trauma services in setting rates.
  3. Specific Provisions for Critical Access Hospitals:

    • Implementation of a new cost-based methodology effective July 1, 2015.
    • Payment rates set to not exceed the total cost reflected in base year cost reports.
    • Criteria for setting payment tiers based on historical payment percentages relative to costs.
  4. Reimbursement and Monitoring Changes:

    • Introduces new capitation payments and monitoring of payment rates for managed care plans.
    • Periodic updates and refinements to payment methodologies to ensure continued relevance and fairness in compensation.
  5. Special Provisions for Obstetric and Gynecologic Services:

    • Ensuring reimbursement rates for these services are at least equal to 100% of the Medicare Physician Fee Schedule starting January 1, 2026.
  6. Procedural Adjustments:

    • Repealing outdated provisions.
    • Proposing new coding for updated laws within the health sector.

In summary, H.F. No. 1005 aims to revise how hospitals and healthcare providers are reimbursed under Minnesota's Medical Assistance program, aligning payment methodologies with recent cost reports and medical service value, while ensuring that reimbursement processes are precise, updated, and fair across services and provider types.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 16, 2025HouseFloorActionIntroduction and first reading, referred toHealth Finance and Policy
February 18, 2025HouseFloorActionAuthor added
February 19, 2025HouseFloorActionAuthors added
February 19, 2025HouseFloorActionMotion to recall and re-refer, motion prevailedHuman Services Finance and Policy
February 23, 2025HouseFloorActionAuthors added
February 25, 2025HouseFloorActionAuthors added
March 02, 2025HouseFloorActionAuthor added
March 04, 2025HouseFloorActionAuthor added
March 09, 2025HouseFloorActionAuthor added
March 16, 2025HouseFloorActionAuthor added
March 25, 2025HouseFloorActionAuthors added
March 26, 2025HouseFloorActionAuthor added
March 31, 2025HouseFloorActionAuthors added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Budget neutrality calculations to ensure aggregate payments are maintained."
      ],
      "removed": [
        "Outdated provisions for rate rebasing prior to November 2014."
      ],
      "summary": "This section addresses amendments to the hospital payment rates under Minnesota Statutes 256.969, subdivision 2b.",
      "modified": [
        "Rebasement methodology and inclusion of factors for cost-index changes."
      ]
    },
    "citation": "256.969, subdivision 2b"
  },
  {
    "analysis": {
      "added": [
        "A rate factor specific to each hospital that qualifies under medical education and research cost distribution."
      ],
      "removed": [],
      "summary": "Adjusts provisions related to medical education and research cost distribution.",
      "modified": [
        "Inclusion of a rate factor in hospital payments for specific hospitals qualifying for medical education and research cost distribution."
      ]
    },
    "citation": "62J.692, subdivision 4"
  }
]