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:
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.
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.
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.
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.
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.
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- Repealing outdated provisions.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
- Introduction PDF file
Actions
Date | Chamber | Where | Type | Name | Committee Name |
---|---|---|---|---|---|
February 16, 2025 | House | Floor | Action | Introduction and first reading, referred to | Health Finance and Policy |
February 18, 2025 | House | Floor | Action | Author added | |
February 19, 2025 | House | Floor | Action | Authors added | |
February 19, 2025 | House | Floor | Action | Motion to recall and re-refer, motion prevailed | Human Services Finance and Policy |
February 23, 2025 | House | Floor | Action | Authors added | |
February 25, 2025 | House | Floor | Action | Authors added | |
March 02, 2025 | House | Floor | Action | Author added | |
March 04, 2025 | House | Floor | Action | Author added | |
March 09, 2025 | House | Floor | Action | Author added | |
March 16, 2025 | House | Floor | Action | Author added | |
March 25, 2025 | House | Floor | Action | Authors added | |
March 26, 2025 | House | Floor | Action | Author added | |
March 31, 2025 | House | Floor | Action | Authors 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" } ]
Sponsors
- Rep. Patty Acomb (DFL)
- Rep. Jeff Backer (R)
- Rep. Dave Baker (R)
- Rep. Robert Bierman (DFL)
- Rep. Ned Carroll (DFL)
- Rep. Steve Elkins (DFL)
- Rep. Peter Fischer (DFL)
- Rep. Mike Freiberg (DFL)
- Rep. Kaohly Her (DFL)
- Rep. Huldah Hiltsley (DFL)
- Rep. Athena Hollins (DFL)
- Rep. Kari Rehrauer (DFL)
- Rep. Liz Reyer (DFL)
- Rep. John Huot (DFL)
- Rep. Peter Johnson (DFL)
- Rep. Katie Jones (DFL)
- Rep. Heather Keeler (DFL)
- Rep. Larry Kraft (DFL)
- Rep. Tina Liebling (DFL)
- Rep. Mohamud Noor (DFL)
- Rep. Andrew Smith (DFL)
- Rep. Bianca Virnig (DFL)
- Rep. Jay Xiong (DFL)
- Rep. Cedrick Frazier (DFL)
- Rep. Leon Lillie (DFL)
- Rep. Kelly Moller (DFL)
- Rep. María Isa Pérez-Vega (DFL)