1.1                          A bill for an act 
  1.2             relating to human services; increasing the 
  1.3             compensation-related portion of nursing facility 
  1.4             operating rates; appropriating money; amending 
  1.5             Minnesota Statutes 2000, section 256B.431, by adding a 
  1.6             subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 256B.431, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 31.  [COMPENSATION-RELATED RATE INCREASES EFFECTIVE 
  1.11  JULY 1, 2001.] (a) For the rate year beginning July 1, 2001, the 
  1.12  commissioner shall increase the compensation-related portion of 
  1.13  the total operating rate for facilities reimbursed under this 
  1.14  section, section 256B.434, or any other section as follows: 
  1.15     (1) establish an average compensation-related per diem for 
  1.16  each facility equal to the sum of compensation-related per diems 
  1.17  for all case mix class rates divided by 11; 
  1.18     (2) establish a statewide weighted average 
  1.19  compensation-related per diem; 
  1.20     (3) establish a nursing facility rate ratio for each 
  1.21  facility by dividing the result determined in clause (1) by the 
  1.22  result determined in clause (2); 
  1.23     (4) establish a wage disparity ratio for each facility by 
  1.24  dividing the Medicare Wage Index applicable to each facility by 
  1.25  the nursing facility rate ratio determined in clause (3); and 
  1.26     (5) if the result in clause (4) is greater than 1.0, 
  2.1   compute the rate adjustment for each case mix level by 
  2.2   multiplying the compensation-related component of each case mix 
  2.3   class rate by an amount equal to the wage disparity ratio 
  2.4   determined in clause (4) reduced by 1.0. 
  2.5      (b) If the result in clause (4) is 1.0 or less, the 
  2.6   facility shall not receive a rate adjustment under this 
  2.7   subdivision. 
  2.8      (c) The increases under this subdivision shall be included 
  2.9   in the facility's total payment rates for the purposes of 
  2.10  determining future rates under this section or any other section.
  2.11     Sec. 2.  [APPROPRIATIONS.] 
  2.12     $....... is appropriated from the general fund to the 
  2.13  commissioner of human services for the biennium beginning July 
  2.14  1, 2001, for the purposes of section 1.