S.F. 2310 provides a five percent increase for the individual reimbursement rates under the disability waivers, to intermediate care facilities for persons with developmental disabilities, and to home and community-based service providers.

Section 1 [256B.4915 – Disability waiver reimbursement rate adjustments] requires the Commissioner of Human Services to increase the historical individual reimbursement rates and each of the component rates of the disability waiver rate setting (DWRS) system by an amount equal to each reimbursement rate increase effective on or after July 1, 2016.  Section 3 of this bill authorizes a five percent increase in the rates paid to providers for home and community-based services provided under the disability waivers.  That increase, therefore, applies to this section.

Section 2 (256B.5012 – ICF/DD rate increase effective July 1, 2016) requires the Commissioner of Human Services to increase each facility’s operating payment rate by five percent over the rate in effect on June 30, 2016. 

Paragraph (a) specifies that the rate increase consists of a three percent increase for workforce compensation, a one percent increase for quality improvement efforts, and a one percent increase for community integration improvement efforts.

Paragraph (b) describes how the commissioner must apply the rate increase and specifies that the five percent increase is in addition to the salary adjustment under Minnesota Statutes, section 256B.501, subdivision 12.

Paragraph (c) requires facilities to devote 90 percent of the three percent increase for workforce compensation to compensation-related costs.

Paragraph (d) defines compensation-related costs.

Paragraph (e) requires 90 percent of the three percent rate increase for workforce compensation be distributed to public employees under a collective bargaining agreement in a manner consistent with the laws governing public employees’ collective bargaining.  Paragraph (e) also limits the timeframe during which pay rate increases for public employees may be implemented.

Paragraph (f) requires facilities to obtain from an exclusive bargaining representative a letter of acceptance of a plan for the distribution of 90 percent of the three percent rate increase for workforce compensation to members of the bargaining unit.

Paragraph (g) requires the commissioner to amend grant contracts to pass through, within 60 days, the three percent rate increase for workforce compensation.

Paragraph (h) requires facilities to develop and submit to the commissioner a plan for the distribution to employees of 90 percent of the three percent rate increase for workforce compensation.

Paragraph (i) requires facilities to post notice of its distribution plan in a manner accessible to employees and provide instructions for employees to contact the commissioner if they believe the plan has not been properly implemented.

Paragraph (j) specifies the requirements facilities must fulfill to receive the one percent rate increase for quality improvement.

Paragraph (k) specifies the requirements facilities must fulfill to receive the one percent rate increase for community integration improvement efforts.

Section 3 [256B.745 – Home and community-based service provider rate and grant increases] requires the Commissioner of Human Services to increase by five percent the reimbursement rates paid to providers for home and community-based services as well as county and tribal contracts.

Subdivision 1 (Rate and grant increases) specifies that the five percent rate increase consists of a three percent increase for workforce compensation, a one percent increase for quality improvement efforts, and a one percent increase for community integration improvement efforts.

Subdivision 2 (Eligible services, grants, and programs) lists all the eligible waiver services, state plan services, extended state plan services, grants, and programs that are eligible to receive the five percent rate increase.

Subdivision 3 (Managed care and county-based purchasing plans) requires the commissioner to increase capitation rates for eligible services, grants, and programs by five percent and requires managed care and county-based purchasing plans to pass through the five percent increase to providers.

Subdivision 4 (Consumer–directed community supports) requires counties to increase consumer-directed community supports by five percent.

Subdivision 5 (Workforce compensation component) requires providers to devote 90 percent of the three percent increase for workforce compensation to compensation-related costs.

Subdivision 6 (Compensation-related costs) defines compensation-related costs.

Subdivision 7 (Public employees under collective bargaining agreement) requires 90 percent of the three percent rate increase for workforce compensation be distributed to public employees under a collective bargaining agreement in a manner consistent with the laws governing public employees’ collective bargaining.  Subdivision 7 also limits the timeframe during which pay rate increases for public employees may be implemented.

Subdivision 8 (Employees represented by an exclusive bargaining representative) requires providers to obtain from an exclusive bargaining representative a letter of acceptance of a plan for the distribution of 90 percent of the three percent rate increase for workforce compensation to members of the bargaining unit.

Subdivision 9 (State grant contracts) requires the commissioner to amend grant contracts to pass through, within 60 days, the three percent rate increase for workforce compensation.

Subdivision 10 (Board on Aging; area agencies on aging) requires the Board on Aging and its area agencies on aging to amend grant contracts to pass through, within 60 days, the three percent rate increase for workforce compensation.

Subdivision 11 (Distribution plans) requires providers to develop and submit to the commissioner a plan for the distribution of 90 percent of the three percent rate increase for workforce compensation to employees.  Subdivision 11 also requires providers to post notice of their distribution plan in a manner accessible to employees and provide instructions for employees to contact the commissioner if they believe the plan has not been properly implemented.

Subdivision 12 (Quality component) specifies the requirements providers must fulfill to receive the one percent rate increase for quality improvement efforts.

Subdivision 13 (Person-centered component) specifies the requirements providers must fulfill to receive the one percent rate increase for community integration improvement efforts for services provided under the elderly waiver or through the alternative care program.  Providers can receive the additional one percent increase for community integration improvement efforts by meeting the requirements for the one percent increase for quality improvement efforts.

Subdivision 14 (Exceptions)

Paragraph (a) lists the services for which providers will receive the one percent rate increase for quality improvement efforts without pursuing a quality improvement project and the one percent rate increase for community integrations improvement efforts without pursuing a community integration improvement project.  These services are:

1. Nursing services and home health services

2. Personal care services and qualified professional supervision of personal care services

3. Home care nursing services

4. Community first services and supports

5. Living skills training, and

6. Semi-independent living services

And services under the following grants:

1. Consumer support grants

2. Family support grants

3. Housing access grants

4. Self-advocacy grants

5. Technology grants

6. Aging grants

7. Deaf and hard-of-hearing grants

8. Disability Linkage Line grants

9. Home and community-based transition initiative grants

10. Employment support grants, and

11. Grants to people who are eligible for the Housing Opportunities for Persons with AIDS program.

Paragraph (b) exempts home-delivered meals and congregate dining services from the requirement to devote 90 percent of the three percent increase for workforce compensation to compensation-related costs, from the requirement to pursue a quality improvement project in order to receive the one percent increase for quality improvement, and from the requirement to pursue a community integration improvement project in order to receive the one percent increase for community integration improvement.

Section 4 [Repealer] repeals obsolete language related to past ICF/DD rate adjustments.