S.F. No. 1993 provides a five percent Medical Assistance rate increase for intermediate care facilities for persons with developmental disabilities (ICF/DDs) and long-term care services, grants, and programs. 

Section 1(256B.5012, subdivision 16) adds a new subdivision.

Paragraph (a) provides a five percent rate increase for ICF/DDs effective July 1, 2014.

Paragraph (b) applies the rate increase to occupied beds and a prior salary adjustment, and excludes the property-related payment rate.

Paragraph (c) requires 75 percent of the rate increase to go toward compensation-related costs for employees, excluding central office staff and people working under a management contract.

Paragraph (d) defines compensation-related costs.

Paragraph (e) requires wage and benefit increases for public employees to comply with collective bargaining agreements and to be implemented within one month of the effective date, and prohibits the funds to be used for increases enacted prior to the effective date.

Paragraph (f) requires the Department of Human Services (DHS) to adjust grant contracts within 60 days of the rate increase.

Paragraph (g) requires the Board on Aging and Area Agencies on Aging to adjust applicable grants within 60 days of the rate increase.

Paragraph (h) requires facilities receiving the rate increase to prepare, and provide DHS upon request, a plan that estimates the portion of the rate increase used for compensation-related costs and specifies the distribution of the funds to compensate employees.

Paragraph (i) requires facilities to post the distribution plan required in paragraph (h) for at least six weeks in an area accessed by all increase-eligible employees within six months of the effective date. The posting must include information on how to contact DHS if employees believe they have not received the required compensation-related increase.

Section 2 provides a rate increase for long-term care services, grants, and programs.

Paragraph (a) provides a five percent rate increase to long-term care services, grants, and programs, effective July 1, 2014, with contracts for these services adjusted for the rate increase within 60 days.

Paragraph (b) applies the rate increase to:

• Developmental Disability, Community Alternatives for Disabled Individuals, Community Alternative Care, Brain Injury, and Elderly Waiver services
• Nursing services and home health services
• Personal care services
• Private duty nursing services
• Day training and habilitation services
• Alternative Care services
• Living skills training programs
• Semi-independent living services
• Consumer support grants
• Family support grants
• Housing access grants
• Self-advocacy grants
• Technology grants
• Community First Services and Supports
• Essential Community Supports
• Aging grants
• Deaf and hard-of-hearing grants
• Disability Linkage Line grants
• Transition initiatives grants
• Employment support grants
• Settings grants for people in the Housing Opportunity for Persons with AIDS program

Paragraph (c) requires DHS to implement the necessary adjustments to the disability waiver rate system (DWRS) in Minnesota Statutes, section 256B.14, to reflect the five percent rate increase.

Paragraph (d) adjusts the banding value in section 256B.13 to account for the five percent rate increase, effective July 1, 2014.

Paragraph (e) requires DHS to increase payments to managed care plans to account for the five percent increase, effective July 1, 2014.

Paragraph (f) requires counties to adjust Consumer-Directed Community Supports budgets to account for the five percent increase, effective July 1, 2014.

Paragraph (g) requires 75 percent of the rate increase to go toward compensation-related costs for employees, excluding central office staff and people working under a management contract.

Paragraph (h) defines compensation-related costs.

Paragraph (i) requires wage and benefit increases for public employees to comply with collective bargaining agreements and be implemented within one month of the effective date, and prohibits the funds to be used for increases enacted prior to the effective date.

Paragraph (j) requires DHS to adjust grant contracts within 60 days of the rate increase.

Paragraph (k) requires the Board on Aging and Area Agencies on Aging to adjust applicable grants within 60 days of the rate increase.

Paragraph (l) requires providers receiving the rate increase to prepare, and provide DHS upon request, a plan that estimates the portion of the rate increase used for compensation-related costs and specifies the distribution of the funds to compensate employees.

Paragraph (m) requires providers to post the distribution plan required in paragraph (l) for at least six weeks in an area accessed by all increase-eligible employees within six months of the effective date.  The posting must include information on how to contact DHS if employees believe they have not received the required compensation-related increase.

Paragraph (n) applies the provisions requiring 75 percent of the rate increase going towards compensation-related costs only to the portion that exceeds the difference between the rate set by the DWRS, and the banding value if the banding value is greater than the rate established in the DWRS, when applicable.

Section 3 is the appropriations section.

 DL/rdr