AI Generated Summary
Purpose of the Bill
This bill aims to modify the payment rates for hospital inpatient services in Minnesota by updating and adjusting the methodologies used, ensuring that they remain aligned with Medicare standards and reflect contemporary hospital costs.
Main Provisions
- Critical Access Hospitals: Defined by Medicare, these will be paid based on a specific cost-based methodology.
- Long-term and Rehabilitation Hospitals: Long-term hospitals are to be paid per day and rehabilitation hospitals will follow Medicare-recognized methodologies.
Diagnosis-Related Group (DRG): Other hospitals will be paid using a DRG methodology, aligning with Medicare standards.
Rebasing Payment Rates: Every two years, starting July 1, 2017, payment rates will be updated to reflect changes in hospital costs. New rates apply to hospitals beyond critical access, incorporating projected costs, Medicare adjustments, and budget neutrality.
Adjustments for Specific Services: The commissioner can adjust rates considering impacts on pediatric, behavioral health, trauma, transplant, and obstetric services, among others.
Rebasing Schedule: Payment rates will reflect changes in hospital costs by comparing base and future rate years, with specific factors like pandemic impacts considered.
Critical Access Hospital Rates: From July 1, 2015, payment for critical access hospitals will use a new cost-based methodology with payment tiers promoting efficiency.
Significant Changes to Existing Law
- Updated Base Year Calculations: Aligns hospital payments more closely with current costs and Medicare standards.
- New Cost-Based Methodology for Certain Hospitals: Aims to better reflect the true costs of critical access hospitals.
- Incorporation of Hospital Costs: Payment rates will mirror actual costs and be adjusted for inflation based on the hospital cost index.
Relevant Terms
critical access hospitals, Medicare, hospital inpatient services, diagnosis-related group (DRG), payment rates, rebasing, cost-based methodology, long-term hospitals, budget neutrality, pediatric services, behavioral health services, trauma services, transplant services, obstetric services, geographic location, medical assistance payments
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 16, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 16, 2025 | Senate | Floor | Action | Referred to | Health and Human Services |
Citations
[
{
"analysis": {
"added": [
"A new payment methodology for critical access hospitals using a cost-based methodology."
],
"removed": [
"Previous uniform payment structure for critical access hospitals."
],
"summary": "This bill modifies hospital payment rates for hospital inpatient services by amending Minnesota Statutes section 256.969, subdivision 2b.",
"modified": [
"Rebasing of payment rates to account for changes in hospital costs between base years."
]
},
"citation": "256.969"
}
]