SF2413

Purpose of the Bill

This bill aims to impose a financial assessment on hospitals that participate in Minnesota's medical assistance program. The collected funds are to be used specifically for the state's nonfederal share of a new payment program to hospitals operating under medical assistance.

Main Provisions

• Hospital Assessment: Eligible hospitals must pay a quarterly assessment based on a percentage of their net inpatient and outpatient revenue. The exact percentage rates will be determined annually.
• Payment Schedule: Payments are due quarterly on January 1, April 1, July 1, and October 1, with invoices sent out one month prior.
• Notifications and Adjustments: Hospitals will receive notifications about expected assessments by October 15 each year. There are provisions for adjustments if mergers occur or if hospitals underpay or overpay.
• Special Circumstances: Specific hospitals may receive exemptions or discounts from the assessment:
  • Long-term care hospitals
  • Critical access hospitals or rural hospitals
  • Children's hospitals
  • Federal Indian Health Service facilities
  • State-owned or operated treatment centers
  • Non-state government teaching hospitals with high medical assistance utilization
  • A cap ensuring no single hospital system pays over a certain percentage of total assessments.

Significant Changes to Existing Law

• The bill adds new subdivisions to the Minnesota Statutes Chapter 256B to accommodate these assessments.
• The changes ensure the collected revenue is strictly used for their intended purpose in the directed payment program.
• The commissioner ensures compliance with federal law and adjusts assessments as needed to maintain state compliance.

Relevant Terms

• Medical Assistance Program
• Hospital Assessment
• Net Inpatient and Outpatient Revenue
• Directed Payment Program
• Exemptions for Specific Hospital Types
• Federal Approval and Compliance