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SF2413 (Legislative Session 94 (2025-2026))

Hospital assessment requirement provision and hospitals in the medical assistance program directed payments requirement provision

Related bill: HF2057

AI Generated Summary

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

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025SenateFloorActionIntroduction and first reading
March 12, 2025SenateFloorActionReferred toHealth and Human Services
March 19, 2025SenateFloorActionComm report: To pass as amended and re-refer toTaxes
March 19, 2025SenateFloorActionAuthor added
March 23, 2025SenateFloorActionAuthor added
March 23, 2025SenateFloorActionAuthor added
April 01, 2025SenateFloorActionComm report: No recommendation, re-referred toHealth and Human Services
April 01, 2025SenateFloorActionComm report: No recommendation, re-referred toHealth and Human Services

Citations

 
[
  {
    "analysis": {
      "added": [
        "Defines terms for hospital assessment, specifies assessment timing and procedures, and outlines conditions and exemptions for the assessments."
      ],
      "removed": [],
      "summary": "The bill amends section 256.9657 by adding a subdivision related to hospital assessments.",
      "modified": []
    },
    "citation": "256.9657"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section 256B.1974 is referenced concerning the nonfederal share of the directed payment program.",
      "modified": []
    },
    "citation": "256B.1974"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section 256B.1975 is established as the hospital directed payment program account.",
      "modified": []
    },
    "citation": "256B.1975"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Code of Federal Regulations title 42 section 412.23 is referenced regarding definitions and exemptions for certain types of hospitals.",
      "modified": []
    },
    "citation": "412.23"
  }
]

Sponsors