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S.F. No. 792 - Nursing Facility and Elderly Waiver Provider Rate Modification
 
Author: Senator Kent Eken
 
Prepared By:
 
Date: April 10, 2013



 

Section 1 (256B.434, subdivision 19a) adds a new subdivision providing a nursing facility rate increase in 2013 and 2014.

Paragraph (a) provides a two percent increase on October 1, 2013, for costs and staffing needs to facilities participating in, and setting two goals under, the Advancing Excellence in America’s Nursing Home program; provides up to a two percent rate increase on October 1, 2014; up to one percent for progressing toward each goal under the Advancing Excellence program; and an additional one percent increase in both 2013 and 2014 to address workforce needs.

Paragraph (b) requires that 73 percent of the increase for costs and staffing needs in paragraph (a) must be used for compensation-related costs to employees, with exceptions for certain types of employees.

Paragraph (c) lists the allowable compensation-related costs described in paragraph (b).

Paragraph (d) describes the application process for receiving a portion of the rate increase for costs and staffing needs under paragraph (a), subject to the requirements in paragraph (b), including: estimated compensation-related funds; a distribution plan for the compensation-related funds; a description of the employee notification process; and instructions to employees on how to inform the Department of Human Services (DHS) if compensation-related wage increases are not realized.

Paragraph (e) outlines the requirements of distribution plans under paragraph (d) for the 2013 rate increase, including: allowable wage increases based on tenure; increases for insurance benefits; and increased requirements for facilities with employees under collective bargaining agreements.

Paragraph (f) outlines the requirements of distribution plans under paragraph (d) for the 2014 rate increase, including: 2013 costs allowed under paragraph (e) do not apply in 2014; allowable wage increases based on tenure; increases for insurance benefits; increase requirements facilities with employees under collective bargaining agreements.

Paragraph (g) requires DHS to provide a rate increase under paragraph (b) if the requirements authorized in paragraphs (e) and (f) are met.

Paragraph (h) applies the rate increase in this new subdivision to operating rates effective September 30, 2013, and September 30, 2014, excluding performance-based incentive payments.

Section 2 provides a rate increase to providers of services under the Elderly Waiver program.

Paragraph (a) provides increases in both 2013 and 2014 for costs and staffing needs (two percent each year); implementing a quality improvement program (two percent each year); and workforce development (one percent each year).

Paragraph (b) requires managed care plans receiving payments for elderly waiver services to include these increases in provider payments, prospectively, on January 1 following the rate increase effective date.

Paragraph (c) requires that 73 percent of the increase for costs and staffing needs in paragraph (a) must be used for compensation-related costs to employees, with exceptions for certain types of employees; defines compensation-related costs.

Paragraph (d) requires wage and benefit increases for public employees to comply with collective bargaining laws, and must be used for pay increases on or after the new rate increases and not used for previous pay increases.

Paragraph (e) requires providers receiving the rate increase to provide DHS with a letter verifying the requirements outlines in paragraph (c) are met, and specifies the estimated compensation-related funds and a distribution plan for the compensation-related funds.

Paragraph (f) requires providers receiving a rate increase to post the distribution plan in a place accessible to all employees, along with instructions on how to inform the DHS if compensation-related wage increases are not realized.

Paragraph (g) applies the rate increase in this uncodified section of law to operating rates effective September 30, 2013, and September 30, 2014, and allows an agreement negotiated between bargaining units and employers meet the verification requirement in paragraph (e).

 
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