1.1 	A bill for an act
1.2 	relating to human services; providing inflation
1.3 	adjustments for long-term care providers; amending
1.4 	Minnesota Statutes 2004, sections 256B.431, by adding
1.5 	a subdivision; 256B.5012, by adding a subdivision;
1.6 	256B.765.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 256B.431, is
1.9 	amended by adding a subdivision to read:
1.10 		Subd. 41.Nursing facility rate increases beginning july
1.11 	1, 2005, and july 1, 2006. For the rate years beginning July 1,
1.12 	2005, and July 1, 2006, the commissioner shall provide nursing
1.13 	facilities reimbursed under this section, section 256B.434, or
1.14 	256B.440 with an adjustment to the total operating payment rate
1.15 	of three percent.  At least two-thirds of each year's adjustment
1.16 	must be used for increased costs of employee salaries and
1.17 	benefits and associated costs for FICA, the Medicare tax,
1.18 	workers' compensation premiums, and federal and state
1.19 	unemployment insurance.  Each facility receiving an adjustment
1.20 	shall report to the commissioner, in the form and manner
1.21 	specified by the commissioner, on how the additional funding was
1.22 	used.

1.23 	Sec. 2. Minnesota Statutes 2004, section 256B.5012, is
1.24 	amended by adding a subdivision to read:
1.25 		Subd. 6.Icf/mr rate increases beginning january 1, 2006,
1.26 	and january 1, 2007. For the rate years beginning January 1,
2.1 	2006, and January 1, 2007, the commissioner shall provide
2.2 	facilities reimbursed under this section an adjustment to the
2.3 	total operating payment rate of three percent.  At least
2.4 	two-thirds of each year's adjustment must be used for increased
2.5 	costs of employee salaries and benefits and associated costs for
2.6 	FICA, the Medicare tax, workers' compensation premiums, and
2.7 	federal and state unemployment insurance.  Each facility
2.8 	receiving an adjustment shall report to the commissioner, in the
2.9 	form and manner specified by the commissioner, on how the
2.10 	additional funding was used.

2.11 	Sec. 3. Minnesota Statutes 2004, section 256B.765, is
2.12 	amended to read:
2.13 	256B.765 PROVIDER RATE INCREASES.
2.14 		Subdivision 1.Annual inflation adjustments. (a)
2.15 	Effective July 1, 2001, within the limits of appropriations
2.16 	specifically for this purpose, the commissioner shall provide an
2.17 	annual inflation adjustment for the providers listed
2.18 	in paragraph (c) subdivision 2.  The index for the inflation
2.19 	adjustment must be based on the change in the Employment Cost
2.20 	Index for Private Industry Workers - Total Compensation
2.21 	forecasted by Data Resources, Inc., as forecasted in the fourth
2.22 	quarter of the calendar year preceding the fiscal year.  The
2.23 	commissioner shall increase reimbursement or allocation rates by
2.24 	the percentage of this adjustment, and county boards shall
2.25 	adjust provider contracts as needed.
2.26 	(b) The commissioner of finance shall include an annual
2.27 	inflationary adjustment in reimbursement rates for the providers
2.28 	listed in paragraph (c) subdivision 2 using the inflation factor
2.29 	specified in paragraph (a) as a budget change request in each
2.30 	biennial detailed expenditure budget submitted to the
2.31 	legislature under section 16A.11.
2.32 	(c) Subd. 2.[ELIGIBLE PROVIDERS.] The annual adjustment
2.33 	under subdivision 1,paragraph (a),shall be provided for home
2.34 	and community-based waiver services for persons with mental
2.35 	retardation or related conditions under section 256B.501; home
2.36 	and community-based waiver services for the elderly under
3.1 	section 256B.0915; waivered services under community
3.2 	alternatives for disabled individuals under section 256B.49;
3.3 	community alternative care waivered services under section
3.4 	256B.49; traumatic brain injury waivered services under section
3.5 	256B.49; nursing services and home health services under section
3.6 	256B.0625, subdivision 6a; personal care services and nursing
3.7 	supervision of personal care services under section 256B.0625,
3.8 	subdivision 19a; private duty nursing services under section
3.9 	256B.0625, subdivision 7; day training and habilitation services
3.10 	for adults with mental retardation or related conditions under
3.11 	sections 252.40 to 252.46; physical therapy services under
3.12 	sections 256B.0625, subdivision 8, and 256D.03, subdivision 4;
3.13 	occupational therapy services under sections 256B.0625,
3.14 	subdivision 8a, and 256D.03, subdivision 4; speech-language
3.15 	therapy services under section 256D.03, subdivision 4, and
3.16 	Minnesota Rules, part 9505.0390; respiratory therapy services
3.17 	under section 256D.03, subdivision 4, and Minnesota Rules, part
3.18 	9505.0295; alternative care services under section 256B.0913;
3.19 	adult residential program grants under Minnesota Rules, parts
3.20 	9535.2000 to 9535.3000; adult and family community support
3.21 	grants under Minnesota Rules, parts 9535.1700 to 9535.1760;
3.22 	semi-independent living services under section 252.275 including
3.23 	SILS funding under county social services grants formerly funded
3.24 	under chapter 256I; and community support services for deaf and
3.25 	hard-of-hearing adults with mental illness who use or wish to
3.26 	use sign language as their primary means of communication.
3.27 		Subd. 3.Rate increase for biennium beginning july 1,
3.28 	2005. For the fiscal years beginning July 1, 2005, and July 1,
3.29 	2006, the commissioner shall increase reimbursement rates for
3.30 	the providers listed in subdivision 2 by three percent.  At
3.31 	least two-thirds of each year's adjustment must be used for
3.32 	increased costs of employee salaries and benefits and associated
3.33 	costs for FICA, the Medicare tax, workers' compensation
3.34 	premiums, and federal and state unemployment insurance.  Each
3.35 	provider receiving an adjustment shall report to the
3.36 	commissioner, in the form and manner specified by the
4.1 	commissioner, on how the additional funding was used.