1.1                          A bill for an act
  1.2             relating to human services; requiring nursing facility 
  1.3             case-mix payment rates to be based upon statewide 
  1.4             averages; amending Minnesota Statutes 2002, sections 
  1.5             256B.431, by adding a subdivision; 256B.434, by adding 
  1.6             a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 256B.431, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 40.  [CASE-MIX RATES BASED ON STATEWIDE AVERAGE.] For 
  1.11  rate years beginning on or after July 1, 2004, the commissioner 
  1.12  shall determine operating payment rates for all nursing 
  1.13  facilities reimbursed under this section using statewide average 
  1.14  per diem rates for each of the 34 RUG-III case-mix 
  1.15  classifications, based on the payment rates in effect for the 
  1.16  previous rate year.  The commissioner shall calculate separate 
  1.17  statewide average case-mix per diem rates for freestanding 
  1.18  nursing facilities, hospital-attached nursing facilities, 
  1.19  facilities with short length of stays, and facilities providing 
  1.20  services under Minnesota Rules, parts 9570.2000 to 9570.3400, 
  1.21  and shall reimburse facilities in each group for operating costs 
  1.22  for rate years beginning on or after July 1, 2004, using the 
  1.23  statewide average case-mix classification per diems for that 
  1.24  group, rather than the facility-specific case-mix classification 
  1.25  per diems in effect for each facility.  The commissioner shall 
  1.26  apply any inflation adjustments authorized by law to these 
  2.1   statewide average case-mix per diem rates. 
  2.2      Sec. 2.  Minnesota Statutes 2002, section 256B.434, is 
  2.3   amended by adding a subdivision to read: 
  2.4      Subd. 17.  [CASE-MIX RATES BASED ON STATEWIDE AVERAGE 
  2.5   RATE.] For rate years beginning on or after July 1, 2004, the 
  2.6   commissioner shall determine operating payment rates for all 
  2.7   nursing facilities reimbursed under this section using statewide 
  2.8   average per diem rates for each of the 34 RUG-III case-mix 
  2.9   classifications, based on the payment rates in effect for the 
  2.10  previous rate year.  The commissioner shall calculate separate 
  2.11  statewide average case-mix per diem rates for freestanding 
  2.12  nursing facilities, hospital-attached nursing facilities, 
  2.13  facilities with short length of stays, and facilities providing 
  2.14  services under Minnesota Rules, parts 9570.2000 to 9570.3400, 
  2.15  and shall reimburse facilities in each group for operating costs 
  2.16  for rate years beginning on or after July 1, 2004, using the 
  2.17  statewide average case-mix classification per diems for that 
  2.18  group, rather than the facility-specific case-mix classification 
  2.19  per diems in effect for each facility.  The commissioner shall 
  2.20  apply any inflation adjustment provided under this section to 
  2.21  these statewide average case-mix per diem rates.