HF87

This Minnesota bill is designed to create a new program that imposes an assessment fee on ambulance providers, which excludes public and air ambulance services. Revenue from this fee will fund a special account aimed at supplementing the amount ambulance providers receive from medical assistance payments, raising their compensation closer to the average rates paid by commercial insurance. The intent is to ensure that ambulance services receive fair compensation for their services without exceeding specific federal limits.

The fee will be collected quarterly based on the gross revenue of each ambulance provider and managed by the state's Department of Human Services. The program includes a provision where the collected fees, along with any federal matching funds and interest, are transferred into a dedicated fund. Money from this fund will then be used exclusively to enhance payments to ambulance providers through a systematic quarterly distribution.

The implementation and continuation of this program depend on approval and continued acceptance from federal Medicaid oversight bodies. If federal approval is not granted or is withdrawn, any remaining funds will be returned to the ambulance providers. The bill mandates annual reporting to legislative bodies on the financial status and impacts of this fund, starting from January 2027.

Additionally, certain ambulance services are to be exempt from the existing MinnesotaCare provider tax, aiming to alleviate financial burdens on these providers. The commissioner of human services is also given authority to make necessary rule changes to effectively implement and manage this new program.