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HF2557 (Legislative Session 94 (2025-2026))

Hospital surcharge redirected to health care access fund.

Related bill: SF3124

AI Generated Summary

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

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025HouseFloorActionIntroduction and first reading, referred toHealth Finance and Policy
March 31, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies the direction of funds to the health care access fund."
      ],
      "removed": [],
      "summary": "This bill addresses changes to the hospital surcharge which is redirected to the health care access fund according to section 256.9657.",
      "modified": [
        "Adjusts the surcharge rate and mentions exclusions for certain hospitals."
      ]
    },
    "citation": "256.9657"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references sections 256.9685 to 256.9695 for rate setting purposes.",
      "modified": [
        "Clarifies the exclusion of hospital surcharge as an allowable cost in these sections."
      ]
    },
    "citation": "256.9685 to 256.9695"
  }
]

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