1.1 A bill for an act
1.2 relating to human services; modifying nonemergency medical transportation
1.3 provisions; amending Minnesota Statutes 2024, sections 256B.04, subdivisions
1.4 12, 14; 256B.0625, subdivision 17, by adding a subdivision; repealing Minnesota
1.5 Statutes 2024, section 256B.0625, subdivisions 18b, 18e, 18h.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2024, section 256B.04, subdivision 12, is amended to read:
1.8 Subd. 12.Limitation on services.(a) The commissioner shall place limits on the types
1.9of services covered by medical assistance, the frequency with which the same or similar
1.10services may be covered by medical assistance for an individual recipient, and the amount
1.11paid for each covered service. The state agency shall promulgate rules establishing maximum
1.12reimbursement rates for emergency and nonemergency transportation.
1.13 The rules shall provide:
1.14 (1) an opportunity for all recognized transportation providers to be reimbursed for
1.15nonemergency transportation consistent with the maximum rates established by the agency;
1.16and
1.17 (2) reimbursement of public and private nonprofit providers serving the population with
1.18a disability generally at reasonable maximum rates that reflect the cost of providing the
1.19service regardless of the fare that might be charged by the provider for similar services to
1.20individuals other than those receiving medical assistance or medical care under this chapter.
1.21This paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1,
1.222027, for prepaid medical assistance.
1Section 1.
25-03141 as introduced03/03/25 REVISOR AGW/NS
SENATE
STATE OF MINNESOTA
S.F. No. 2896NINETY-FOURTH SESSION
(SENATE AUTHORS: COLEMAN, Hoffman and Abeler)
OFFICIAL STATUSD-PGDATE
Introduction and first reading03/24/2025
Referred to Human Services 2.1 (b) The commissioner shall encourage providers reimbursed under this chapter to
2.2coordinate their operation with similar services that are operating in the same community.
2.3To the extent practicable, the commissioner shall encourage eligible individuals to utilize
2.4less expensive providers capable of serving their needs. This paragraph expires July 1, 2026,
2.5for medical assistance fee-for-service and January 1, 2027, for prepaid medical assistance.
2.6 (c) For the purpose of this subdivision and section 256B.02, subdivision 8, and effective
2.7on January 1, 1981, "recognized provider of transportation services" means an operator of
2.8special transportation service as defined in section 174.29 that has been issued a current
2.9certificate of compliance with operating standards of the commissioner of transportation
2.10or, if those standards do not apply to the operator, that the agency finds is able to provide
2.11the required transportation in a safe and reliable manner. Until January 1, 1981, "recognized
2.12transportation provider" includes an operator of special transportation service that the agency
2.13finds is able to provide the required transportation in a safe and reliable manner. This
2.14paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1, 2027,
2.15for prepaid medical assistance.
2.16 (d) Effective July 1, 2026, for medical assistance fee-for-service and January 1, 2027,
2.17for prepaid medical assistance, the commissioner shall place limits on the types of services
2.18covered by medical assistance, the frequency with which the same or similar services may
2.19be covered by medical assistance for an individual recipient, and the amount paid for each
2.20covered service.
2.21 EFFECTIVE DATE.This section is effective the day following final enactment.
2.22 Sec. 2. Minnesota Statutes 2024, section 256B.04, subdivision 14, is amended to read:
2.23 Subd. 14.Competitive bidding.(a) When determined to be effective, economical, and
2.24feasible, the commissioner may utilize volume purchase through competitive bidding and
2.25negotiation under the provisions of chapter 16C, to provide items under the medical assistance
2.26program including but not limited to the following:
2.27 (1) eyeglasses;
2.28 (2) oxygen. The commissioner shall provide for oxygen needed in an emergency situation
2.29on a short-term basis, until the vendor can obtain the necessary supply from the contract
2.30dealer;
2.31 (3) hearing aids and supplies;
2.32 (4) durable medical equipment, including but not limited to:
2Sec. 2.
25-03141 as introduced03/03/25 REVISOR AGW/NS 3.1 (i) hospital beds;
3.2 (ii) commodes;
3.3 (iii) glide-about chairs;
3.4 (iv) patient lift apparatus;
3.5 (v) wheelchairs and accessories;
3.6 (vi) oxygen administration equipment;
3.7 (vii) respiratory therapy equipment;
3.8 (viii) electronic diagnostic, therapeutic and life-support systems; and
3.9 (ix) allergen-reducing products as described in section 256B.0625, subdivision 67,
3.10paragraph (c) or (d);
3.11 (5) nonemergency medical transportation level of need determinations, disbursement of
3.12public transportation passes and tokens, and volunteer and recipient mileage and parking
3.13reimbursements;
3.14 (6) drugs; and
3.15 (7) quitline services as described in section 256B.0625, subdivision 68, paragraph (c).
3.16This paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1,
3.172027, for prepaid medical assistance.
3.18 (b) Effective July 1, 2026, for medical assistance fee-for-service and January 1, 2027,
3.19for prepaid medical assistance, when determined to be effective, economical, and feasible,
3.20the commissioner may utilize volume purchase through competitive bidding and negotiation
3.21under the provisions of chapter 16C to provide items under the medical assistance program,
3.22including but not limited to the following:
3.23 (1) eyeglasses;
3.24 (2) oxygen. The commissioner shall provide for oxygen needed in an emergency situation
3.25on a short-term basis, until the vendor can obtain the necessary supply from the contract
3.26dealer;
3.27 (3) hearing aids and supplies;
3.28 (4) durable medical equipment, including but not limited to:
3.29 (i) hospital beds;
3.30 (ii) commodes;
3Sec. 2.
25-03141 as introduced03/03/25 REVISOR AGW/NS 4.1 (iii) glide-about chairs;
4.2 (iv) patient lift apparatus;
4.3 (v) wheelchairs and accessories;
4.4 (vi) oxygen administration equipment;
4.5 (vii) respiratory therapy equipment; and
4.6 (viii) electronic diagnostic, therapeutic, and life-support systems;
4.7 (5) nonemergency medical transportation; and
4.8 (6) drugs.
4.9 (b) (c) Rate changes and recipient cost-sharing under this chapter and chapter 256L do
4.10not affect contract payments under this subdivision unless specifically identified.
4.11 (c) (d) The commissioner may not utilize volume purchase through competitive bidding
4.12and negotiation under the provisions of chapter 16C for special transportation services or
4.13incontinence products and related supplies. This paragraph expires July 1, 2026, for medical
4.14assistance fee-for-service and January 1, 2027, for prepaid medical assistance.
4.15 (e) Effective July 1, 2026, for medical assistance fee-for-service and January 1, 2027,
4.16for prepaid medical assistance, the commissioner may not utilize volume purchase through
4.17competitive bidding and negotiation under the provisions of chapter 16C for incontinence
4.18products and related supplies.
4.19 EFFECTIVE DATE.This section is effective the day following final enactment.
4.20 Sec. 3. Minnesota Statutes 2024, section 256B.0625, subdivision 17, is amended to read:
4.21 Subd. 17.Transportation costs.(a) "Nonemergency medical transportation service"
4.22means motor vehicle transportation provided by a public or private person that serves
4.23Minnesota health care program beneficiaries who do not require emergency ambulance
4.24service, as defined in section 144E.001, subdivision 3, to obtain covered medical services.
4.25 (b) For purposes of this subdivision, "rural urban commuting area" or "RUCA" means
4.26a census-tract based classification system under which a geographical area is determined
4.27to be urban, rural, or super rural. This paragraph expires July 1, 2026, for medical assistance
4.28fee-for-service and January 1, 2027, for prepaid medical assistance.
4.29 (c) Medical assistance covers medical transportation costs incurred solely for obtaining
4.30emergency medical care or transportation costs incurred by eligible persons in obtaining
4.31emergency or nonemergency medical care when paid directly to an ambulance company,
4Sec. 3.
25-03141 as introduced03/03/25 REVISOR AGW/NS 5.1nonemergency medical transportation company, or other recognized providers of
5.2transportation services. Medical transportation must be provided by:
5.3 (1) nonemergency medical transportation providers who meet the requirements of this
5.4subdivision;
5.5 (2) ambulances, as defined in section 144E.001, subdivision 2;
5.6 (3) taxicabs that meet the requirements of this subdivision;
5.7 (4) public transportation, within the meaning of "public transportation" as defined in
5.8section 174.22, subdivision 7; or
5.9 (5) not-for-hire vehicles, including volunteer drivers, as defined in section 65B.472,
5.10subdivision 1, paragraph (p).
5.11 (d) Medical assistance covers nonemergency medical transportation provided by
5.12nonemergency medical transportation providers enrolled in the Minnesota health care
5.13programs. All nonemergency medical transportation providers must comply with the
5.14operating standards for special transportation service as defined in sections 174.29 to 174.30
5.15and Minnesota Rules, chapter 8840, and all drivers must be individually enrolled with the
5.16commissioner and reported on the claim as the individual who provided the service. All
5.17nonemergency medical transportation providers shall bill for nonemergency medical
5.18transportation services in accordance with Minnesota health care programs criteria. Publicly
5.19operated transit systems, volunteers, and not-for-hire vehicles are exempt from the
5.20requirements outlined in this paragraph.
5.21 (e) An organization may be terminated, denied, or suspended from enrollment if:
5.22 (1) the provider has not initiated background studies on the individuals specified in
5.23section 174.30, subdivision 10, paragraph (a), clauses (1) to (3); or
5.24 (2) the provider has initiated background studies on the individuals specified in section
5.25174.30, subdivision 10, paragraph (a), clauses (1) to (3), and:
5.26 (i) the commissioner has sent the provider a notice that the individual has been
5.27disqualified under section 245C.14; and
5.28 (ii) the individual has not received a disqualification set-aside specific to the special
5.29transportation services provider under sections 245C.22 and 245C.23.
5.30 (f) The administrative agency of nonemergency medical transportation must:
5.31 (1) adhere to the policies defined by the commissioner;
5Sec. 3.
25-03141 as introduced03/03/25 REVISOR AGW/NS 6.1 (2) pay nonemergency medical transportation providers for services provided to
6.2Minnesota health care programs beneficiaries to obtain covered medical services;
6.3 (3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled
6.4trips, and number of trips by mode; and
6.5 (4) by July 1, 2016, in accordance with subdivision 18e, utilize a web-based single
6.6administrative structure assessment tool that meets the technical requirements established
6.7by the commissioner, reconciles trip information with claims being submitted by providers,
6.8and ensures prompt payment for nonemergency medical transportation services. This
6.9paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1, 2027,
6.10for prepaid medical assistance.
6.11 (g) Effective July 1, 2026, for medical fee-for-service and January 1, 2027, for prepaid
6.12medical assistance, the administrative agency of nonemergency medical transportation must:
6.13 (1) adhere to the policies defined by the commissioner;
6.14 (2) pay nonemergency medical transportation providers for services provided to
6.15Minnesota health care programs beneficiaries to obtain covered medical services; and
6.16 (3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled
6.17trips, and number of trips by mode.
6.18 (g) (h) Until the commissioner implements the single administrative structure and delivery
6.19system under subdivision 18e, clients shall obtain their level-of-service certificate from the
6.20commissioner or an entity approved by the commissioner that does not dispatch rides for
6.21clients using modes of transportation under paragraph (l) (n), clauses (4), (5), (6), and (7).
6.22This paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1,
6.232027, for prepaid medical assistance.
6.24 (h) (i) The commissioner may use an order by the recipient's attending physician,
6.25advanced practice registered nurse, physician assistant, or a medical or mental health
6.26professional to certify that the recipient requires nonemergency medical transportation
6.27services. Nonemergency medical transportation providers shall perform driver-assisted
6.28services for eligible individuals, when appropriate. Driver-assisted service includes passenger
6.29pickup at and return to the individual's residence or place of business, assistance with
6.30admittance of the individual to the medical facility, and assistance in passenger securement
6.31or in securing of wheelchairs, child seats, or stretchers in the vehicle.
6.32 (i) (j) Nonemergency medical transportation providers must take clients to the health
6.33care provider using the most direct route, and must not exceed 30 miles for a trip to a primary
6Sec. 3.
25-03141 as introduced03/03/25 REVISOR AGW/NS 7.1care provider or 60 miles for a trip to a specialty care provider, unless the client receives
7.2authorization from the local agency. This paragraph expires July 1, 2026, for medical
7.3assistance fee-for-service and January 1, 2027, for prepaid medical assistance.
7.4 (k) Effective July 1, 2026, for medical assistance fee-for-service and January 1, 2027,
7.5for prepaid medical assistance, nonemergency medical transportation providers must take
7.6clients to the health care provider using the most direct route and must not exceed 30 miles
7.7for a trip to a primary care provider or 60 miles for a trip to a specialty care provider, unless
7.8the client receives authorization from the administrator.
7.9 (j) (l) Nonemergency medical transportation providers may not bill for separate base
7.10rates for the continuation of a trip beyond the original destination. Nonemergency medical
7.11transportation providers must maintain trip logs, which include pickup and drop-off times,
7.12signed by the medical provider or client, whichever is deemed most appropriate, attesting
7.13to mileage traveled to obtain covered medical services. Clients requesting client mileage
7.14reimbursement must sign the trip log attesting mileage traveled to obtain covered medical
7.15services.
7.16 (k) (m) The administrative agency shall use the level of service process established by
7.17the commissioner to determine the client's most appropriate mode of transportation. If public
7.18transit or a certified transportation provider is not available to provide the appropriate service
7.19mode for the client, the client may receive a onetime service upgrade.
7.20 (l) (n) The covered modes of transportation are:
7.21 (1) client reimbursement, which includes client mileage reimbursement provided to
7.22clients who have their own transportation, or to family or an acquaintance who provides
7.23transportation to the client;
7.24 (2) volunteer transport, which includes transportation by volunteers using their own
7.25vehicle;
7.26 (3) unassisted transport, which includes transportation provided to a client by a taxicab
7.27or public transit. If a taxicab or public transit is not available, the client can receive
7.28transportation from another nonemergency medical transportation provider;
7.29 (4) assisted transport, which includes transport provided to clients who require assistance
7.30by a nonemergency medical transportation provider;
7.31 (5) lift-equipped/ramp transport, which includes transport provided to a client who is
7.32dependent on a device and requires a nonemergency medical transportation provider with
7.33a vehicle containing a lift or ramp;
7Sec. 3.
25-03141 as introduced03/03/25 REVISOR AGW/NS 8.1 (6) protected transport, which includes transport provided to a client who has received
8.2a prescreening that has deemed other forms of transportation inappropriate and who requires
8.3a provider: (i) with a protected vehicle that is not an ambulance or police car and has safety
8.4locks, a video recorder, and a transparent thermoplastic partition between the passenger and
8.5the vehicle driver; and (ii) who is certified as a protected transport provider; and
8.6 (7) stretcher transport, which includes transport for a client in a prone or supine position
8.7and requires a nonemergency medical transportation provider with a vehicle that can transport
8.8a client in a prone or supine position.
8.9 (m) (o) The local agency shall be the single administrative agency and shall administer
8.10and reimburse for modes defined in paragraph (l) (n) according to paragraphs (p) and (q)
8.11(r) to (t) when the commissioner has developed, made available, and funded the web-based
8.12single administrative structure, assessment tool, and level of need assessment under
8.13subdivision 18e. The local agency's financial obligation is limited to funds provided by the
8.14state or federal government. This paragraph expires July 1, 2026, for medical assistance
8.15fee-for-service and January 1, 2027, for prepaid medical assistance.
8.16 (n) (p) The commissioner shall:
8.17 (1) verify that the mode and use of nonemergency medical transportation is appropriate;
8.18 (2) verify that the client is going to an approved medical appointment; and
8.19 (3) investigate all complaints and appeals.
8.20 (o) (q) The administrative agency shall pay for the services provided in this subdivision
8.21and seek reimbursement from the commissioner, if appropriate. As vendors of medical care,
8.22local agencies are subject to the provisions in section 256B.041, the sanctions and monetary
8.23recovery actions in section 256B.064, and Minnesota Rules, parts 9505.2160 to 9505.2245.
8.24This paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1,
8.252027, for prepaid medical assistance.
8.26 (p) (r) Payments for nonemergency medical transportation must be paid based on the
8.27client's assessed mode under paragraph (k) (m), not the type of vehicle used to provide the
8.28service. The medical assistance reimbursement rates for nonemergency medical transportation
8.29services that are payable by or on behalf of the commissioner for nonemergency medical
8.30transportation services are:
8.31 (1) $0.22 per mile for client reimbursement;
8.32 (2) up to 100 percent of the Internal Revenue Service business deduction rate for volunteer
8.33transport;
8Sec. 3.
25-03141 as introduced03/03/25 REVISOR AGW/NS 9.1 (3) equivalent to the standard fare for unassisted transport when provided by public
9.2transit, and $12.10 for the base rate and $1.43 per mile when provided by a nonemergency
9.3medical transportation provider;
9.4 (4) $14.30 for the base rate and $1.43 per mile for assisted transport;
9.5 (5) $19.80 for the base rate and $1.70 per mile for lift-equipped/ramp transport;
9.6 (6) $75 for the base rate and $2.40 per mile for protected transport; and
9.7 (7) $60 for the base rate and $2.40 per mile for stretcher transport, and $9 per trip for
9.8an additional attendant if deemed medically necessary. This paragraph expires July 1, 2026,
9.9for medical assistance fee-for-service and January 1, 2027, for prepaid medical assistance.
9.10 (s) Effective July 1, 2026, for medical assistance fee-for-service and January 1, 2027,
9.11for prepaid medical assistance, payments for nonemergency medical transportation must
9.12be paid based on the client's assessed mode under paragraph (m), not the type of vehicle
9.13used to provide the service.
9.14 (q) (t) The base rate for nonemergency medical transportation services in areas defined
9.15under RUCA to be super rural is equal to 111.3 percent of the respective base rate in
9.16paragraph (p) (r), clauses (1) to (7). The mileage rate for nonemergency medical
9.17transportation services in areas defined under RUCA to be rural or super rural areas is:
9.18 (1) for a trip equal to 17 miles or less, equal to 125 percent of the respective mileage
9.19rate in paragraph (p) (r), clauses (1) to (7); and
9.20 (2) for a trip between 18 and 50 miles, equal to 112.5 percent of the respective mileage
9.21rate in paragraph (p) (r), clauses (1) to (7). This paragraph expires July 1, 2026, for medical
9.22assistance fee-for-service and January 1, 2027, for prepaid medical assistance.
9.23 (r) (u) For purposes of reimbursement rates for nonemergency medical transportation
9.24services under paragraphs (p) and (q) (r) to (t), the zip code of the recipient's place of
9.25residence shall determine whether the urban, rural, or super rural reimbursement rate applies.
9.26This paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1,
9.272027, for prepaid medical assistance.
9.28 (s) (v) The commissioner, when determining reimbursement rates for nonemergency
9.29medical transportation under paragraphs (p) and (q), shall exempt all modes of transportation
9.30listed under paragraph (l) (n) from Minnesota Rules, part 9505.0445, item R, subitem (2).
9.31 (t) (w) Effective for the first day of each calendar quarter in which the price of gasoline
9.32as posted publicly by the United States Energy Information Administration exceeds $3.00
9Sec. 3.
25-03141 as introduced03/03/25 REVISOR AGW/NS 10.1per gallon, the commissioner shall adjust the rate paid per mile in paragraph (p) (r) by one
10.2percent up or down for every increase or decrease of ten cents for the price of gasoline. The
10.3increase or decrease must be calculated using a base gasoline price of $3.00. The percentage
10.4increase or decrease must be calculated using the average of the most recently available
10.5price of all grades of gasoline for Minnesota as posted publicly by the United States Energy
10.6Information Administration. This paragraph expires July 1, 2026, for medical assistance
10.7fee-for-service and January 1, 2027, for prepaid medical assistance.
10.8 EFFECTIVE DATE.This section is effective the day following final enactment.
10.9 Sec. 4. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision
10.10to read:
10.11 Subd. 18i.Administration of nonemergency medical transportation.Effective July
10.121, 2026, for medical assistance fee-for-service and January 1, 2027, for prepaid medical
10.13assistance, the commissioner must contract either statewide or regionally for the
10.14administration of the nonemergency medical transportation program in compliance with
10.15the provisions of this chapter. The contract must include the administration of the
10.16nonemergency medical transportation benefit for those enrolled in managed care as described
10.17in section 256B.69.
10.18 EFFECTIVE DATE.This section is effective the day following final enactment.
10.19Sec. 5. REPEALER.
10.20 Minnesota Statutes 2024, section 256B.0625, subdivisions 18b, 18e, and 18h, are
10.21repealed.
10.22 EFFECTIVE DATE.This section is effective July 1, 2026, for medical assistance
10.23fee-for-service and January 1, 2027, for prepaid medical assistance.
10Sec. 5.
25-03141 as introduced03/03/25 REVISOR AGW/NS 256B.0625 COVERED SERVICES.
Subd. 18b.Broker dispatching prohibition.Except for establishing level of service process,
the commissioner shall not use a broker or coordinator for any purpose related to nonemergency
medical transportation services under subdivision 18.
Subd. 18e.Single administrative structure and delivery system.The commissioner, in
coordination with the commissioner of transportation, shall implement a single administrative
structure and delivery system for nonemergency medical transportation, beginning the latter of the
date the single administrative assessment tool required in this subdivision is available for use, as
determined by the commissioner or by July 1, 2016.
In coordination with the Department of Transportation, the commissioner shall develop and
authorize a web-based single administrative structure and assessment tool, which must operate 24
hours a day, seven days a week, to facilitate the enrollee assessment process for nonemergency
medical transportation services. The web-based tool shall facilitate the transportation eligibility
determination process initiated by clients and client advocates; shall include an accessible automated
intake and assessment process and real-time identification of level of service eligibility; and shall
authorize an appropriate and auditable mode of transportation authorization. The tool shall provide
a single framework for reconciling trip information with claiming and collecting complaints regarding
inappropriate level of need determinations, inappropriate transportation modes utilized, and
interference with accessing nonemergency medical transportation. The web-based single
administrative structure shall operate on a trial basis for one year from implementation and, if
approved by the commissioner, shall be permanent thereafter.
Subd. 18h.Nonemergency medical transportation provisions related to managed care.(a)
The following nonemergency medical transportation (NEMT) subdivisions apply to managed care
plans and county-based purchasing plans:
(1) subdivision 17, paragraphs (a), (b), (i), and (n);
(2) subdivision 18; and
(3) subdivision 18a.
(b) A nonemergency medical transportation provider must comply with the operating standards
for special transportation service specified in sections 174.29 to 174.30 and Minnesota Rules,
chapter 8840. Publicly operated transit systems, volunteers, and not-for-hire vehicles are exempt
from the requirements in this paragraph.
(c) Managed care plans and county-based purchasing plans must provide a fuel adjustment for
NEMT rates when fuel exceeds $3 per gallon. If, for any contract year, federal approval is not
received for this paragraph, the commissioner must adjust the capitation rates paid to managed care
plans and county-based purchasing plans for that contract year to reflect the removal of this provision.
Contracts between managed care plans and county-based purchasing plans and providers to whom
this paragraph applies must allow recovery of payments from those providers if capitation rates are
adjusted in accordance with this paragraph. Payment recoveries must not exceed the amount equal
to any increase in rates that results from this paragraph. This paragraph expires if federal approval
is not received for this paragraph at any time.
1R
APPENDIX
Repealed Minnesota Statutes: 25-03141