SF3124

Purpose of the Bill

This bill aims to update the way hospital surcharges in Minnesota are allocated by redirecting them from a previous account to the health care access fund.

Main Provisions

• The bill amends an existing statute to require Minnesota hospitals to direct their surcharges to the health care access fund.
• The surcharge applies to net patient revenues, excluding net Medicare revenues.
• All Minnesota hospitals, except those under the federal Indian Health Service and regional treatment centers, will adhere to this requirement.

Significant Changes to Existing Law

• The hospital surcharge, which was initially directed to the medical assistance account, will now be redirected to the health care access fund.
• This change only affects the allocation of funds and does not alter the surcharge rates, which remain at 1.4% of the net patient revenues, increased to 1.56% since July 1, 1994.

Relevant Terms

• Hospital surcharge
• Health care access fund
• Medical assistance account
• Net patient revenues
• Medicare revenues
• Federal Indian Health Service
• Regional treatment centers