Minnesota 2025-2026 Regular Session

Minnesota House Bill HF381 Compare Versions

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11 1.1 A bill for an act​
22 1.2 relating to human services; modifying policies related to establishing rates for​
33 1.3 home and community-based waiver services; increasing room and board rates for​
44 1.4 certain individuals receiving home and community-based services; amending​
55 1.5 Minnesota Statutes 2024, sections 256B.4914, subdivisions 4, 14, 17; 256I.05,​
66 1.6 subdivision 1c.​
77 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
88 1.8 Section 1. Minnesota Statutes 2024, section 256B.4914, subdivision 4, is amended to read:​
99 1.9 Subd. 4.Data collection for rate determination.(a) Rates for applicable home and​
1010 1.10community-based waivered services, including customized rates under subdivision 12, are​
1111 1.11set by the rates management system.​
1212 1.12 (b) Data and information in the rates management system must be used to calculate an​
1313 1.13individual's rate.​
1414 1.14 (c) Service providers, with information from the support plan and oversight by lead​
1515 1.15agencies, shall provide values and information needed to calculate an individual's rate in​
1616 1.16the rates management system. Lead agencies must use forms provided by the commissioner​
1717 1.17to collect this information. The determination of service levels must be part of a discussion​
1818 1.18with members of the support team as defined in section 245D.02, subdivision 34. This​
1919 1.19discussion must occur prior to the final establishment of each individual's rate. The values​
2020 1.20and information include:​
2121 1.21 (1) shared staffing hours;​
2222 1.22 (2) individual staffing hours;​
2323 1.23 (3) direct registered nurse hours;​
2424 1​Section 1.​
2525 REVISOR AGW/NS 25-00648​11/21/24 ​
2626 State of Minnesota​
2727 This Document can be made available​
2828 in alternative formats upon request​
2929 HOUSE OF REPRESENTATIVES​
3030 H. F. No. 381​
3131 NINETY-FOURTH SESSION​
3232 Authored by Curran, Gander, Baker, Schomacker, Noor and others​02/13/2025​
3333 The bill was read for the first time and referred to the Committee on Human Services Finance and Policy​ 2.1 (4) direct licensed practical nurse hours;​
3434 2.2 (5) staffing ratios;​
3535 2.3 (6) information to document variable levels of service qualification for variable levels​
3636 2.4of reimbursement in each framework;​
3737 2.5 (7) shared or individualized arrangements for unit-based services, including the staffing​
3838 2.6ratio;​
3939 2.7 (8) number of trips and miles for transportation services; and​
4040 2.8 (9) service hours provided through monitoring technology.​
4141 2.9 (d) Updates to individual data must include:​
4242 2.10 (1) data for each individual that is updated annually when renewing service plans; and​
4343 2.11 (2) requests by individuals or lead agencies to update a rate whenever there is a change​
4444 2.12in an individual's service needs, with accompanying documentation.​
4545 2.13 (e) Within 30 business days of receiving from a service provider the values and​
4646 2.14information specified in paragraph (c), lead agencies shall review and approve (1) all services​
4747 2.15reflecting each individual's needs,; and (2) the values to calculate the final payment rate for​
4848 2.16services with variables under subdivisions 6 to 9 for each individual. If the lead agency fails​
4949 2.17to approve a final payment rate for services within 30 business days of receiving the values​
5050 2.18and information specified in paragraph (c), the lead agency must pay a late payment penalty​
5151 2.19from the lead agency's own sources of revenue. The late payment penalty is equal to ten​
5252 2.20percent of the total final payment rate for the service prorated as necessary from the end of​
5353 2.21the 30-business-day service authorization approval period to the date the service provider​
5454 2.22is notified of the final payment rate for the approved services.​
5555 2.23 (f) Lead agencies must notify the individual and the service provider of the final​
5656 2.24agreed-upon values and rate, and provide information that is identical to what was entered​
5757 2.25into the rates management system. If a value used was mistakenly or erroneously entered​
5858 2.26and used to calculate a rate, a provider may petition lead agencies to correct it. Lead agencies​
5959 2.27must respond to these requests. When responding to the request, the lead agency must​
6060 2.28consider:​
6161 2.29 (1) meeting the health and welfare needs of the individual or individuals receiving​
6262 2.30services by service site, identified in their support plan under section 245D.02, subdivision​
6363 2.314b, and any addendum under section 245D.02, subdivision 4c;​
6464 2​Section 1.​
6565 REVISOR AGW/NS 25-00648​11/21/24 ​ 3.1 (2) meeting the requirements for staffing under subdivision 2, paragraphs (h), (n), and​
6666 3.2(o); and meeting or exceeding the licensing standards for staffing required under section​
6767 3.3245D.09, subdivision 1; and​
6868 3.4 (3) meeting the staffing ratio requirements under subdivision 2, paragraph (o), and​
6969 3.5meeting or exceeding the licensing standards for staffing required under section 245D.31.​
7070 3.6 EFFECTIVE DATE.This section is effective July 1, 2025.​
7171 3.7 Sec. 2. Minnesota Statutes 2024, section 256B.4914, subdivision 14, is amended to read:​
7272 3.8 Subd. 14.Exceptions.(a) In a format prescribed by the commissioner, lead agencies​
7373 3.9must identify individuals with exceptional needs that cannot be met under the disability​
7474 3.10waiver rate system. The commissioner shall use that information to evaluate and, if necessary,​
7575 3.11approve an alternative payment rate for those individuals. Whether granted, denied, or​
7676 3.12modified, the commissioner shall respond to all exception requests in writing. The​
7777 3.13commissioner shall include in the written response the basis for the action and provide​
7878 3.14notification of the right to appeal under paragraph (h).​
7979 3.15 (b) Lead agencies must act on an exception request within 30 days and notify the initiator​
8080 3.16of the request of their recommendation in writing. A lead agency shall submit all exception​
8181 3.17requests along with its recommendation to the commissioner.​
8282 3.18 (c) An application for a rate exception may be submitted for the following criteria:​
8383 3.19 (1) an individual has service needs that cannot be met through additional units of service;​
8484 3.20 (2) an individual's rate determined under subdivisions 6 to 9 is so insufficient that it has​
8585 3.21resulted in an individual receiving a notice of discharge from the individual's provider; or​
8686 3.22 (3) an individual's service needs, including behavioral changes, require a level of service​
8787 3.23which necessitates a change in provider or which requires the current provider to propose​
8888 3.24service changes beyond those currently authorized.​
8989 3.25 (d) Exception requests must include the following information:​
9090 3.26 (1) the service needs required by each individual that are not accounted for in subdivisions​
9191 3.276 to 9;​
9292 3.28 (2) the service rate requested and the difference from the rate determined in subdivisions​
9393 3.296 to 9;​
9494 3.30 (3) a basis for the underlying costs used for the rate exception and any accompanying​
9595 3.31documentation; and​
9696 3​Sec. 2.​
9797 REVISOR AGW/NS 25-00648​11/21/24 ​ 4.1 (4) any contingencies for approval.​
9898 4.2 (e) Approved rate exceptions shall be managed within lead agency allocations under​
9999 4.3sections 256B.092 and 256B.49.​
100100 4.4 (f) Individual disability waiver recipients, an interested party, or the license holder that​
101101 4.5would receive the rate exception increase may request that a lead agency submit an exception​
102102 4.6request. A lead agency that denies such a request shall notify the individual waiver recipient,​
103103 4.7interested party, or license holder of its decision and the reasons for denying the request in​
104104 4.8writing no later than 30 days after the request has been made and shall submit its denial to​
105105 4.9the commissioner in accordance with paragraph (b). The reasons for the denial must be​
106106 4.10based on the failure to meet the criteria in paragraph (c).​
107107 4.11 (g) The commissioner shall determine whether to approve or deny an exception request​
108108 4.12no more than 30 days after receiving the request. If the commissioner denies the request,​
109109 4.13the commissioner shall notify the lead agency and the individual disability waiver recipient,​
110110 4.14the interested party, and the license holder in writing of the reasons for the denial.​
111111 4.15 (h) The individual disability waiver recipient may appeal any denial of an exception​
112112 4.16request by either the lead agency or the commissioner, pursuant to sections 256.045 and​
113113 4.17256.0451. When the denial of an exception request results in the proposed demission of a​
114114 4.18waiver recipient from a residential or day habilitation program, the commissioner shall issue​
115115 4.19a temporary stay of demission, when requested by the disability waiver recipient, consistent​
116116 4.20with the provisions of section 256.045, subdivisions 4a and 6, paragraph (c). The temporary​
117117 4.21stay shall remain in effect until the lead agency can provide an informed choice of​
118118 4.22appropriate, alternative services to the disability waiver.​
119119 4.23 (i) Providers may petition lead agencies to update values that were entered incorrectly​
120120 4.24or erroneously into the rate management system, based on past service level discussions​
121121 4.25and determination in subdivision 4, without applying for a rate exception.​
122122 4.26 (j) The starting date for the rate exception will be the later of the date of the recipient's​
123123 4.27change in support or the date of the request to the lead agency for an exception.​
124124 4.28 (k) The commissioner shall track all exception requests received and their dispositions.​
125125 4.29The commissioner shall issue quarterly public exceptions statistical reports, including the​
126126 4.30number of exception requests received and the numbers granted, denied, withdrawn, and​
127127 4.31pending. The report shall include the average amount of time required to process exceptions.​
128128 4.32 (l) Approved rate exceptions remain in effect in all cases until an individual's needs​
129129 4.33change as defined in paragraph (c). Notwithstanding a change in an individual's service​
130130 4​Sec. 2.​
131131 REVISOR AGW/NS 25-00648​11/21/24 ​ 5.1needs, an approved rate exception must remain in effect in all cases if the individual's​
132132 5.2interdisciplinary team as defined in Minnesota Rules, part 9525.0004, subpart 14, determines​
133133 5.3that removing the rate exception would have a negative impact on the individual's well-being.​
134134 5.4 (m) Rates determined under subdivision 19 are ineligible for rate exceptions.​
135135 5.5 EFFECTIVE DATE.This section is effective July 1, 2025, or upon federal approval,​
136136 5.6whichever is later. The commissioner of human services shall inform the revisor of statutes​
137137 5.7when federal approval is obtained.​
138138 5.8 Sec. 3. Minnesota Statutes 2024, section 256B.4914, subdivision 17, is amended to read:​
139139 5.9 Subd. 17.Stakeholder consultation and county training.(a) The commissioner shall​
140140 5.10continue consultation at regular intervals with the existing stakeholder group established​
141141 5.11as part of the rate-setting methodology process and others, to gather input, concerns, and​
142142 5.12data, to assist in the implementation of the rate payment system, and to make pertinent​
143143 5.13information available to the public through the department's website.​
144144 5.14 (b) The commissioner shall offer training at least annually for county personnel​
145145 5.15responsible for administering the rate-setting framework in a manner consistent with this​
146146 5.16section.​
147147 5.17 (c) The commissioner shall maintain an online instruction manual explaining the​
148148 5.18rate-setting framework. The manual shall be consistent with this section, and shall be​
149149 5.19accessible to all stakeholders including recipients, representatives of recipients, county or​
150150 5.20Tribal agencies, and license holders.​
151151 5.21 (d) The commissioner shall not defer to the county or Tribal agency on matters of​
152152 5.22technical application of the rate-setting framework, and a county or Tribal agency shall not​
153153 5.23set rates in a manner that conflicts with this section.​
154154 5.24 (e) The commissioner must consult with existing stakeholder groups as required under​
155155 5.25this subdivision to periodically review, update, and revise the format by which initiators of​
156156 5.26rate exception requests and lead agencies collect and submit information about individuals​
157157 5.27with exceptional needs under subdivision 14.​
158158 5.28 EFFECTIVE DATE.This section is effective July 1, 2025.​
159159 5​Sec. 3.​
160160 REVISOR AGW/NS 25-00648​11/21/24 ​ 6.1 Sec. 4. Minnesota Statutes 2024, section 256I.05, subdivision 1c, is amended to read:​
161161 6.2 Subd. 1c.Rate increases.An agency may not increase the rates negotiated for housing​
162162 6.3support above those in effect on June 30, 1993, except as provided in paragraphs (a) to (f)​
163163 6.4(g).​
164164 6.5 (a) An agency may increase the rates for room and board to the MSA equivalent rate​
165165 6.6for those settings whose current rate is below the MSA equivalent rate.​
166166 6.7 (b) An agency may increase the rates for residents in adult foster care whose difficulty​
167167 6.8of care has increased. The total housing support rate for these residents must not exceed the​
168168 6.9maximum rate specified in subdivisions 1 and 1a. Agencies must not include nor increase​
169169 6.10difficulty of care rates for adults in foster care whose difficulty of care is eligible for funding​
170170 6.11by home and community-based waiver programs under title XIX of the Social Security Act.​
171171 6.12 (c) An agency must increase the room and board rates each year when the MSA equivalent​
172172 6.13rate is adjusted for SSI cost-of-living increases by the amount of the annual SSI increase,​
173173 6.14less the amount of the increase in the medical assistance personal needs allowance under​
174174 6.15section 256B.35.​
175175 6.16 (d) An agency may increase the rates for residents in facilities meeting substantial change​
176176 6.17criteria within the prior year. Substantial change criteria exist if the establishment experiences​
177177 6.18a 25 percent increase or decrease in the total number of its beds, if the net cost of capital​
178178 6.19additions or improvements is in excess of 15 percent of the current market value of the​
179179 6.20residence, or if the residence physically moves, or changes its licensure, and incurs a resulting​
180180 6.21increase in operation and property costs.​
181181 6.22 (e) Until June 30, 1994, an agency may increase by up to five percent the total rate paid​
182182 6.23for recipients of assistance under sections 256D.01 to 256D.21 or 256D.33 to 256D.54 who​
183183 6.24reside in residences that are licensed by the commissioner of health as a boarding care home,​
184184 6.25but are not certified for the purposes of the medical assistance program. However, an increase​
185185 6.26under this clause must not exceed an amount equivalent to 65 percent of the 1991 medical​
186186 6.27assistance reimbursement rate for nursing home resident class A, in the geographic grouping​
187187 6.28in which the facility is located, as established under Minnesota Rules, parts 9549.0051 to​
188188 6.299549.0058.​
189189 6.30 (f) Notwithstanding the provisions of subdivision 1, an agency may increase the monthly​
190190 6.31room and board rates by $50 per month for residents in settings under section 256I.04,​
191191 6.32subdivision 2a, paragraph (b), clause (2). Participants in the Minnesota supportive housing​
192192 6.33demonstration program under section 256I.04, subdivision 3, paragraph (a), clause (3), may​
193193 6.34not receive the increase under this paragraph.​
194194 6​Sec. 4.​
195195 REVISOR AGW/NS 25-00648​11/21/24 ​ 7.1 (g) Notwithstanding subdivision 1, an agency must negotiate a single-occupancy monthly​
196196 7.2room and board rate add-on for any recipient of housing support who cannot live with others​
197197 7.3and is residing in a facility licensed under chapter 245A as a community residential setting.​
198198 7.4A single-occupancy monthly room and board rate add-on is in addition to the monthly room​
199199 7.5and board rate under subdivision 1. The single-occupancy monthly room and board rate​
200200 7.6add-on must not exceed $1,000 per month plus an annual percentage adjustment to the​
201201 7.7allowable monthly add-on equal to the percentage change in the MSA equivalent rate​
202202 7.8resulting from the adjustment to the MSA equivalent rate specified under section 256I.03,​
203203 7.9subdivision 11a. To be eligible for a single-occupancy monthly room and board rate add-on,​
204204 7.10the determination that a recipient of housing support cannot live with others must be​
205205 7.11documented in the individual's support plan. For the purposes of this paragraph, "community​
206206 7.12residential setting" and "support plan" have the meanings giving in section 245D.02.​
207207 7.13 EFFECTIVE DATE.This section is effective July 1, 2025.​
208208 7.14 Sec. 5. DIRECTION TO COMMISSIONER; ENVIRONMENT AL ACCESSIBILITY​
209209 7.15ADAPTATIONS COVERED SERVICE MODIFICATIONS.​
210210 7.16 By December 1, 2025, the commissioner of human services must submit to the federal​
211211 7.17Centers for Medicare and Medicaid Services all necessary amendments to home and​
212212 7.18community-based services waiver plans to include as a covered service under environmental​
213213 7.19accessibility adaptations the repair of property damage caused by an individual receiving​
214214 7.20services under the waivers.​
215215 7.21 EFFECTIVE DATE.This section is effective July 1, 2025.​
216216 7​Sec. 5.​
217217 REVISOR AGW/NS 25-00648​11/21/24 ​