1.1                          A bill for an act 
  1.2             relating to health; providing for continued cost-based 
  1.3             reimbursement for rural health clinics and federally 
  1.4             qualified health centers; appropriating money for the 
  1.5             rural hospital capital improvement grant program; 
  1.6             amending Minnesota Statutes 1999 Supplement, section 
  1.7             256B.0625, subdivision 30. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.10  256B.0625, subdivision 30, is amended to read: 
  1.11     Subd. 30.  [OTHER CLINIC SERVICES.] (a) Medical assistance 
  1.12  covers rural health clinic services, federally qualified health 
  1.13  center services, nonprofit community health clinic services, 
  1.14  public health clinic services, and the services of a clinic 
  1.15  meeting the criteria established in rule by the commissioner.  
  1.16  Rural health clinic services and federally qualified health 
  1.17  center services mean services defined in United States Code, 
  1.18  title 42, section 1396d(a)(2)(B) and (C).  Payment for rural 
  1.19  health clinic and federally qualified health center services 
  1.20  shall be made at the level of 100 percent of reasonable costs, 
  1.21  according to applicable federal law and regulation. 
  1.22     (b) A federally qualified health center that is beginning 
  1.23  initial operation shall submit an estimate of budgeted costs and 
  1.24  visits for the initial reporting period in the form and detail 
  1.25  required by the commissioner.  A federally qualified health 
  1.26  center that is already in operation shall submit an initial 
  2.1   report using actual costs and visits for the initial reporting 
  2.2   period.  Within 90 days of the end of its reporting period, a 
  2.3   federally qualified health center shall submit, in the form and 
  2.4   detail required by the commissioner, a report of its operations, 
  2.5   including allowable costs actually incurred for the period and 
  2.6   the actual number of visits for services furnished during the 
  2.7   period, and other information required by the commissioner.  
  2.8   Federally qualified health centers that file Medicare cost 
  2.9   reports shall provide the commissioner with a copy of the most 
  2.10  recent Medicare cost report filed with the Medicare program 
  2.11  intermediary for the reporting year which support the costs 
  2.12  claimed on their cost report to the state. 
  2.13     (c) In order to continue cost-based payment under the 
  2.14  medical assistance program according to paragraphs (a) and (b), 
  2.15  a federally qualified health center or rural health clinic must 
  2.16  apply for designation as an essential community provider within 
  2.17  six months of final adoption of rules by the department of 
  2.18  health according to section 62Q.19, subdivision 7.  For those 
  2.19  federally qualified health centers and rural health clinics that 
  2.20  have applied for essential community provider status within the 
  2.21  six-month time prescribed, medical assistance payments will 
  2.22  continue to be made according to paragraphs (a) and (b) for the 
  2.23  first three years after application.  For federally qualified 
  2.24  health centers and rural health clinics that either do not apply 
  2.25  within the time specified above or who have had essential 
  2.26  community provider status for three years, medical assistance 
  2.27  payments for health services provided by these entities shall be 
  2.28  according to the same rates and conditions applicable to the 
  2.29  same service provided by health care providers that are not 
  2.30  federally qualified health centers or rural health clinics.  
  2.31     (d) Effective July 1, 1999, the provisions of paragraph (c) 
  2.32  requiring a federally qualified health center or a rural health 
  2.33  clinic to make application for an essential community provider 
  2.34  designation in order to have cost-based payments made according 
  2.35  to paragraphs (a) and (b) no longer apply. 
  2.36     (e) Effective January 1, 2000, payments made according to 
  3.1   paragraphs (a) and (b) shall be limited to the cost phase-out 
  3.2   schedule of the Balanced Budget Act of 1997. 
  3.3      Sec. 2.  [APPROPRIATION.] 
  3.4      $8,500,000 is appropriated from the health care access fund 
  3.5   to the commissioner of health for the fiscal year ending June 
  3.6   30, 2001, for the rural hospital capital improvement grant 
  3.7   program described in Minnesota Statutes, section 144.148. 
  3.8      Sec. 3.  [EFFECTIVE DATE.] 
  3.9      Section 1 is effective July 1, 2000, and applies to 
  3.10  reimbursement for services provided on or after that date.