HF2557

Purpose of the Bill

The bill aims to redirect funds collected from a hospital surcharge to the health care access fund, which supports Minnesota's health care programs.

Main Provisions

• The bill modifies existing law regarding hospital surcharges.
• It mandates that each Minnesota hospital, excluding those run by the federal Indian Health Service and regional treatment centers, must continue contributing a surcharge on net patient revenues.
• The surcharge rate specified is 1.4 percent of the net patient revenues, minus Medicare revenues, reported to the health care cost information system.
• This surcharge rate is increased to 1.56 percent starting July 1, 1994.

Significant Changes

• The bill changes how the collected hospital surcharge is allocated, specifically directing these funds to the health care access fund instead of the medical assistance account.
• It clarifies that the hospital surcharge is not considered an allowable cost when setting rates for hospitals under certain state statutes.

Relevant Terms

hospital surcharge, health care access fund, net patient revenues, Medicare revenues, federal Indian Health Service, regional treatment centers, rate setting, medical assistance account