Purpose of the Bill

The bill aims to impose an assessment on eligible hospitals in Minnesota that participate in the medical assistance program. It seeks to ensure that hospitals contribute financially to a program supporting Minnesota's Medicaid payments, known as the directed payment program.

Main Provisions

• Hospital Assessment: The bill introduces an assessment imposed on hospitals based on a percentage of their net inpatient and outpatient revenues. Each eligible hospital must contribute to the hospital directed payment program account, used by the state to fund the nonfederal share of this program.

• Payment Schedule: Hospitals are required to pay these assessments quarterly, with payments due on January 1, April 1, July 1, and October 1. Notices for payment are sent out ahead of these due dates.

• Adjustments and Exemptions:

  • Certain hospitals, such as long-term care hospitals, critical access hospitals, and children's hospitals, are given discounts or exemptions from the assessments to comply with federal requirements.
  • Hospitals such as state-owned facilities and federal Indian Health Service facilities are fully exempt.
  • The bill ensures that no single hospital system is too heavily burdened by setting limits on the percentage of total assessments any one system must pay.

• Use of Revenue: Collected assessments can only be used to pay the nonfederal share needed for the directed payment program.

Significant Changes to Existing Law

• Amendments are made to the Minnesota Statutes 2024, adding new subdivisions to sections 256.9657 and 256B.1973, codifying the assessment structure and its administration as a part of state law.
• Introduces new statutes in Chapter 256B to create the legal framework for these assessments and their management.

Relevant Terms

• Hospital assessment
• Medical assistance program
• Directed payment program
• Nonfederal share
• Medicaid payments
• Critical access hospital
• Children's hospital
• Quarterly payments