1 | 1 | | 1.1 A bill for an act |
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2 | 2 | | 1.2 relating to human services; requiring individual pricing of phototherapy lights; |
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3 | 3 | | 1.3 making technical changes; amending Minnesota Statutes 2024, section 256B.766. |
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4 | 4 | | 1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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5 | 5 | | 1.5 Section 1. Minnesota Statutes 2024, section 256B.766, is amended to read: |
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6 | 6 | | 1.6 256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES. |
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7 | 7 | | 1.7 Subdivision 1.Payment reductions for base care services effective July 1, 2009.(a) |
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8 | 8 | | 1.8Effective for services provided on or after July 1, 2009, total payments for basic care services, |
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9 | 9 | | 1.9shall be reduced by three percent, except that for the period July 1, 2009, through June 30, |
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10 | 10 | | 1.102011, total payments shall be reduced by 4.5 percent for the medical assistance and general |
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11 | 11 | | 1.11assistance medical care programs, prior to third-party liability and spenddown calculation. |
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12 | 12 | | 1.12 Subd. 2.Classification of therapies as basic care services.Effective July 1, 2010, The |
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13 | 13 | | 1.13commissioner shall classify physical therapy services, occupational therapy services, and |
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14 | 14 | | 1.14speech-language pathology and related services as basic care services. The reduction in this |
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15 | 15 | | 1.15paragraph subdivision 1 shall apply to physical therapy services, occupational therapy |
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16 | 16 | | 1.16services, and speech-language pathology and related services provided on or after July 1, |
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17 | 17 | | 1.172010. |
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18 | 18 | | 1.18 Subd. 3.Payment reductions to managed care plans effective October 1, 2009.(b) |
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19 | 19 | | 1.19Payments made to managed care plans and county-based purchasing plans shall be reduced |
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20 | 20 | | 1.20for services provided on or after October 1, 2009, to reflect the reduction in subdivision 1 |
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21 | 21 | | 1.21effective July 1, 2009, and payments made to the plans shall be reduced effective October |
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22 | 22 | | 1.221, 2010, to reflect the reduction in subdivision 1 effective July 1, 2010. |
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23 | 23 | | 1Section 1. |
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24 | 24 | | 25-02749 as introduced02/05/25 REVISOR AGW/HL |
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25 | 25 | | SENATE |
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26 | 26 | | STATE OF MINNESOTA |
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27 | 27 | | S.F. No. 2670NINETY-FOURTH SESSION |
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28 | 28 | | (SENATE AUTHORS: MAYE QUADE, Utke, Boldon, Hoffman and Abeler) |
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29 | 29 | | OFFICIAL STATUSD-PGDATE |
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30 | 30 | | Introduction and first reading03/17/2025 |
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31 | 31 | | Referred to Health and Human Services 2.1 Subd. 4.Temporary payment reductions effective September 1, 2011.(c) (a) Effective |
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32 | 32 | | 2.2for services provided on or after September 1, 2011, through June 30, 2013, total payments |
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33 | 33 | | 2.3for outpatient hospital facility fees shall be reduced by five percent from the rates in effect |
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34 | 34 | | 2.4on August 31, 2011. |
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35 | 35 | | 2.5 (d) (b) Effective for services provided on or after September 1, 2011, through June 30, |
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36 | 36 | | 2.62013, total payments for ambulatory surgery centers facility fees, medical supplies and |
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37 | 37 | | 2.7durable medical equipment not subject to a volume purchase contract, prosthetics and |
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38 | 38 | | 2.8orthotics, renal dialysis services, laboratory services, public health nursing services, physical |
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39 | 39 | | 2.9therapy services, occupational therapy services, speech therapy services, eyeglasses not |
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40 | 40 | | 2.10subject to a volume purchase contract, hearing aids not subject to a volume purchase contract, |
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41 | 41 | | 2.11and anesthesia services shall be reduced by three percent from the rates in effect on August |
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42 | 42 | | 2.1231, 2011. |
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43 | 43 | | 2.13 Subd. 5.Payment increases effective September 1, 2014.(e) (a) Effective for services |
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44 | 44 | | 2.14provided on or after September 1, 2014, payments for ambulatory surgery centers facility |
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45 | 45 | | 2.15fees, hospice services, renal dialysis services, laboratory services, public health nursing |
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46 | 46 | | 2.16services, eyeglasses not subject to a volume purchase contract, and hearing aids not subject |
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47 | 47 | | 2.17to a volume purchase contract shall be increased by three percent and payments for outpatient |
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48 | 48 | | 2.18hospital facility fees shall be increased by three percent. |
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49 | 49 | | 2.19 (b) Payments made to managed care plans and county-based purchasing plans shall not |
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50 | 50 | | 2.20be adjusted to reflect payments under this paragraph subdivision. |
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51 | 51 | | 2.21 Subd. 6.Temporary payment reductions effective July 1, 2014.(f) Payments for |
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52 | 52 | | 2.22medical supplies and durable medical equipment not subject to a volume purchase contract, |
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53 | 53 | | 2.23and prosthetics and orthotics, provided on or after July 1, 2014, through June 30, 2015, shall |
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54 | 54 | | 2.24be decreased by .33 percent. |
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55 | 55 | | 2.25 Subd. 7.Payment increases effective July 1, 2015.(a) Payments for medical supplies |
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56 | 56 | | 2.26and durable medical equipment not subject to a volume purchase contract, and prosthetics |
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57 | 57 | | 2.27and orthotics, provided on or after July 1, 2015, shall be increased by three percent from |
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58 | 58 | | 2.28the rates as determined under paragraphs (i) and (j) subdivisions 9 and 10. |
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59 | 59 | | 2.29 (g) (b) Effective for services provided on or after July 1, 2015, payments for outpatient |
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60 | 60 | | 2.30hospital facility fees, medical supplies and durable medical equipment not subject to a |
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61 | 61 | | 2.31volume purchase contract, prosthetics, and orthotics to a hospital meeting the criteria specified |
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62 | 62 | | 2.32in section 62Q.19, subdivision 1, paragraph (a), clause (4), shall be increased by 90 percent |
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63 | 63 | | 2.33from the rates in effect on June 30, 2015. |
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64 | 64 | | 2Section 1. |
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65 | 65 | | 25-02749 as introduced02/05/25 REVISOR AGW/HL 3.1 (c) Payments made to managed care plans and county-based purchasing plans shall not |
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66 | 66 | | 3.2be adjusted to reflect payments under this paragraph (b). |
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67 | 67 | | 3.3 Subd. 8.Exempt services.(h) This section does not apply to physician and professional |
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68 | 68 | | 3.4services, inpatient hospital services, family planning services, mental health services, dental |
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69 | 69 | | 3.5services, prescription drugs, medical transportation, federally qualified health centers, rural |
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70 | 70 | | 3.6health centers, Indian health services, and Medicare cost-sharing. |
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71 | 71 | | 3.7 Subd. 9.Individually priced items.(i) (a) Effective for services provided on or after |
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72 | 72 | | 3.8July 1, 2015, the following categories of medical supplies and durable medical equipment |
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73 | 73 | | 3.9shall be individually priced items: customized and other specialized tracheostomy tubes |
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74 | 74 | | 3.10and supplies, electric patient lifts, phototherapy lights, and durable medical equipment repair |
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75 | 75 | | 3.11and service. |
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76 | 76 | | 3.12 (b) This paragraph subdivision does not apply to medical supplies and durable medical |
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77 | 77 | | 3.13equipment subject to a volume purchase contract, products subject to the preferred diabetic |
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78 | 78 | | 3.14testing supply program, and items provided to dually eligible recipients when Medicare is |
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79 | 79 | | 3.15the primary payer for the item. |
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80 | 80 | | 3.16 (c) The commissioner shall not apply any medical assistance rate reductions to durable |
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81 | 81 | | 3.17medical equipment as a result of Medicare competitive bidding. |
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82 | 82 | | 3.18 Subd. 10.Rate increases effective July 1, 2015.(j) (a) Effective for services provided |
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83 | 83 | | 3.19on or after July 1, 2015, medical assistance payment rates for durable medical equipment, |
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84 | 84 | | 3.20prosthetics, orthotics, or supplies shall be increased as follows: |
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85 | 85 | | 3.21 (1) payment rates for durable medical equipment, prosthetics, orthotics, or supplies that |
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86 | 86 | | 3.22were subject to the Medicare competitive bid that took effect in January of 2009 shall be |
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87 | 87 | | 3.23increased by 9.5 percent; and |
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88 | 88 | | 3.24 (2) payment rates for durable medical equipment, prosthetics, orthotics, or supplies on |
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89 | 89 | | 3.25the medical assistance fee schedule, whether or not subject to the Medicare competitive bid |
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90 | 90 | | 3.26that took effect in January of 2009, shall be increased by 2.94 percent, with this increase |
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91 | 91 | | 3.27being applied after calculation of any increased payment rate under clause (1). |
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92 | 92 | | 3.28 This (b) Paragraph (a) does not apply to medical supplies and durable medical equipment |
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93 | 93 | | 3.29subject to a volume purchase contract, products subject to the preferred diabetic testing |
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94 | 94 | | 3.30supply program, items provided to dually eligible recipients when Medicare is the primary |
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95 | 95 | | 3.31payer for the item, and individually priced items identified in paragraph (i) subdivision 9. |
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96 | 96 | | 3.32 (c) Payments made to managed care plans and county-based purchasing plans shall not |
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97 | 97 | | 3.33be adjusted to reflect the rate increases in this paragraph subdivision. |
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98 | 98 | | 3Section 1. |
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99 | 99 | | 25-02749 as introduced02/05/25 REVISOR AGW/HL 4.1 Subd. 11.Rates for ventilators.(k) (a) Effective for nonpressure support ventilators |
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100 | 100 | | 4.2provided on or after January 1, 2016, the rate shall be the lower of the submitted charge or |
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101 | 101 | | 4.3the Medicare fee schedule rate. |
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102 | 102 | | 4.4 (b) Effective for pressure support ventilators provided on or after January 1, 2016, the |
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103 | 103 | | 4.5rate shall be the lower of the submitted charge or 47 percent above the Medicare fee schedule |
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104 | 104 | | 4.6rate. |
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105 | 105 | | 4.7 (c) For payments made in accordance with this paragraph subdivision, if, and to the |
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106 | 106 | | 4.8extent that, the commissioner identifies that the state has received federal financial |
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107 | 107 | | 4.9participation for ventilators in excess of the amount allowed effective January 1, 2018, |
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108 | 108 | | 4.10under United States Code, title 42, section 1396b(i)(27), the state shall repay the excess |
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109 | 109 | | 4.11amount to the Centers for Medicare and Medicaid Services with state funds and maintain |
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110 | 110 | | 4.12the full payment rate under this paragraph subdivision. |
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111 | 111 | | 4.13 Subd. 12.Rates subject to the upper payment limit.(l) Payment rates for durable |
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112 | 112 | | 4.14medical equipment, prosthetics, orthotics or supplies, that are subject to the upper payment |
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113 | 113 | | 4.15limit in accordance with section 1903(i)(27) of the Social Security Act, shall be paid the |
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114 | 114 | | 4.16Medicare rate. Rate increases provided in this chapter shall not be applied to the items listed |
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115 | 115 | | 4.17in this paragraph subdivision. |
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116 | 116 | | 4.18 Subd. 13.Temporary rates for enteral nutrition and supplies.(m) (a) For dates of |
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117 | 117 | | 4.19service on or after July 1, 2023, through June 30, 2025, enteral nutrition and supplies must |
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118 | 118 | | 4.20be paid according to this paragraph subdivision. If sufficient data exists for a product or |
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119 | 119 | | 4.21supply, payment must be based upon the 50th percentile of the usual and customary charges |
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120 | 120 | | 4.22per product code submitted to the commissioner, using only charges submitted per unit. |
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121 | 121 | | 4.23Increases in rates resulting from the 50th percentile payment method must not exceed 150 |
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122 | 122 | | 4.24percent of the previous fiscal year's rate per code and product combination. Data are sufficient |
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123 | 123 | | 4.25if: (1) the commissioner has at least 100 paid claim lines by at least ten different providers |
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124 | 124 | | 4.26for a given product or supply; or (2) in the absence of the data in clause (1), the commissioner |
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125 | 125 | | 4.27has at least 20 claim lines by at least five different providers for a product or supply that |
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126 | 126 | | 4.28does not meet the requirements of clause (1). If sufficient data are not available to calculate |
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127 | 127 | | 4.29the 50th percentile for enteral products or supplies, the payment rate must be the payment |
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128 | 128 | | 4.30rate in effect on June 30, 2023. |
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129 | 129 | | 4.31 (b) This subdivision expires June 30, 2024. |
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130 | 130 | | 4.32 Subd. 14.Rates for enteral nutrition and supplies.(n) For dates of service on or after |
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131 | 131 | | 4.33July 1, 2025, enteral nutrition and supplies must be paid according to this paragraph |
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132 | 132 | | 4.34subdivision and updated annually each January 1. If sufficient data exists for a product or |
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133 | 133 | | 4Section 1. |
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134 | 134 | | 25-02749 as introduced02/05/25 REVISOR AGW/HL 5.1supply, payment must be based upon the 50th percentile of the usual and customary charges |
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135 | 135 | | 5.2per product code submitted to the commissioner for the previous calendar year, using only |
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136 | 136 | | 5.3charges submitted per unit. Increases in rates resulting from the 50th percentile payment |
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137 | 137 | | 5.4method must not exceed 150 percent of the previous year's rate per code and product |
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138 | 138 | | 5.5combination. Data are sufficient if: (1) the commissioner has at least 100 paid claim lines |
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139 | 139 | | 5.6by at least ten different providers for a given product or supply; or (2) in the absence of the |
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140 | 140 | | 5.7data in clause (1), the commissioner has at least 20 claim lines by at least five different |
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141 | 141 | | 5.8providers for a product or supply that does not meet the requirements of clause (1). If |
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142 | 142 | | 5.9sufficient data are not available to calculate the 50th percentile for enteral products or |
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143 | 143 | | 5.10supplies, the payment must be the manufacturer's suggested retail price of that product or |
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144 | 144 | | 5.11supply minus 20 percent. If the manufacturer's suggested retail price is not available, payment |
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145 | 145 | | 5.12must be the actual acquisition cost of that product or supply plus 20 percent. |
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146 | 146 | | 5Section 1. |
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147 | 147 | | 25-02749 as introduced02/05/25 REVISOR AGW/HL |
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