Purpose of the Bill

The purpose of this bill is to establish an ambulance provider assessment program in Minnesota. This program aims to enhance the financial support provided to ambulance services by offering supplemental medical assistance payments, exempting certain ambulance services from the MinnesotaCare provider tax, and ensuring federal financial participation maximizes available funds.

Main Provisions

1. Ambulance Provider Assessment Fee:

   • The bill introduces a quarterly ambulance service assessment fee on licensed ambulance providers (except governmental and air ambulance services).
   • This fee is assessed on the gross revenues of these services and funds state medical assistance expenditures eligible for federal participation.

2. Ambulance Fee Fund:

   • A new fund in the state treasury will collect revenues from the assessment fee and federal financial participation.
   • The fund is appropriated annually to provide supplemental payments to ambulance providers, ensuring their payments from medical assistance match average commercial insurance rates.

3. Use of Funds:

   • Money in the fund will not replace existing general fund appropriations.
   • Supplemental payments to ambulance providers will occur quarterly and require consultation with the Minnesota Ambulance Association.
   • The commissioner must report annual expenditures to legislative committees.

4. Federal Approval:

   • The program is contingent upon federal approval. If denied or withdrawn, remaining funds will be returned to ambulance providers.
   • Necessary submissions for federal approval include Medicaid state plan amendments and other related documents.

5. Exemptions and Repeals:

   • The bill repeals a specific section of the Minnesota Statutes, enhancing clarity and removal of outdated provisions.

Significant Changes

• New Tax and Fund Structure: Implements a new healthcare-related tax specific to ambulance providers as well as a designated fund for managing the generated revenues.
• Increased Payments: Establishes a mechanism for augmenting Medicaid payments to ambulance providers, aligning them with rates typical of commercial insurers.
• Policy Oversight: Introduces an annual reporting requirement to maintain transparency with legislative oversight bodies.

Relevant Terms

ambulance provider, ambulance service assessment fee, supplemental medical assistance payments, MinnesotaCare provider tax, federal financial participation, Medicaid state plan, ambulance fee fund, commercial insurance rate, Minnesota Ambulance Association.