Calculation clarification of border city nursing facility rate adjustments

A bill for an act

relating to human services; clarifying the calculation of border city nursing facility

rate adjustments; amending Minnesota Statutes 2024, section 256R.481.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 256R.481, is amended to read:

256R.481 RATE ADJUSTMENTS FOR BORDER CITY FACILITIES.

(a) The commissioner shall allow each nonprofit nursing facility located within the

boundaries of the city of Breckenridge or Moorhead prior to January 1, 2015, to apply once

annually for a rate add-on to the facility's external fixed costs payment rate.

(b) A facility seeking an add-on to its external fixed costs payment rate under this section

must apply annually to the commissioner to receive the add-on. A facility must submit the

application within 60 calendar days of the effective date of any add-on under this section.

The commissioner may waive the deadlines required by this paragraph under extraordinary

circumstances.

(c) The commissioner shall provide the add-on to each eligible facility that applies by

the application deadline.

(d) The add-on to the external fixed costs payment rate is the difference on January 1

of the median total payment rate for
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case mix classification PA1
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the lowest case mix

classification in effect
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of the nonprofit facilities located in an adjacent city in another state

and in cities contiguous to the adjacent city minus the eligible nursing facility's total payment

rate for
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case mix classification PA1
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the lowest case mix classification in effect
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as determined

under section
256R.22, subdivision 4
.

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EFFECTIVE DATE.

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This section is effective retroactively from January 1, 2026, and

applies to rate years beginning on or after January 1, 2026.

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