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HF2159 (Legislative Session 94 (2025-2026))

Nursing facility payment rates terminology corrections provided.

Related bill: SF2750

AI Generated Summary

Purpose of the Bill

The bill aims to modify the existing laws related to payment rates for nursing facilities. It seeks to make changes in the terminology and processes used for performance-based incentive payments and planned closure rate adjustments for these facilities.

Main Provisions

  • Performance-Based Incentive Payments: The bill details that the commissioner will create incentive-based payments up to 5% above a facility's operating payment rate. These payments encourage achieving specific outcomes, such as successful resident discharges, technology adoption, improved quality (as measured by the Minnesota Nursing Home Report Card), and reduced acute care costs. The commissioner can choose proposals competitively and approve them through a memorandum of understanding.

  • Planned Closure Rate Adjustment: This section describes the method for calculating financial adjustments when nursing facilities close beds. It details how the closure rate adjustment is determined and reassigned if needed. These adjustments kick in either on January 1st or July 1st, following the closure process completion.

Significant Changes to Existing Law

  • The bill updates certain procedural and calculation aspects for incentive payments and closure rate adjustments without specifying exact terminology changes but aims to refine the processes in line with state policy objectives.
  • The reassignment of planned closure rate adjustments within facilities under the same ownership is made clearer, and processes for recalculation when there is a change in regulation are laid out.

Relevant Terms

  • Nursing Facilities
  • Payment Rates
  • Performance-Based Incentives
  • Incentive Payments
  • Planned Closure Rate Adjustment
  • External Fixed Costs Payment Rate

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 11, 2025HouseFloorActionIntroduction and first reading, referred toHuman Services Finance and Policy
March 12, 2025HouseFloorActionCommittee report, to adopt
March 12, 2025HouseFloorActionSecond reading

Citations

 
[
  {
    "analysis": {
      "added": [
        "Incorporates commissioner-approved proposals through a memorandum of understanding."
      ],
      "removed": [],
      "summary": "This bill modifies performance-based incentive payments under section 256R.38 for nursing facilities.",
      "modified": [
        "Specifies incentive payments as time-limited rate adjustments included in the external fixed costs payment rate under section 256R.25."
      ]
    },
    "citation": "256R.38"
  },
  {
    "analysis": {
      "added": [
        "Allows reassignment of the closure rate adjustment to other facilities under the same ownership within three years."
      ],
      "removed": [],
      "summary": "This bill amends the planned closure rate adjustment provisions under section 256R.40, subdivision 5, for nursing facilities.",
      "modified": [
        "Updates calculation methodology for planned closure rate adjustments to reflect increases in per bed dollar amounts."
      ]
    },
    "citation": "256R.40"
  }
]

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