1.1A bill for an act
1.2relating to human services; modifying certain nursing facility operating payment
1.3rates;amending Minnesota Statutes 2012, section 256B.431, by adding a
1.4subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2012, section 256B.431, is amended by adding a
1.7subdivision to read:
1.8    Subd. 46. Rate increase for nonprofit facilities in border cities. Effective October
1.91, 2014, and annually thereafter, operating payment rates of a nonprofit nursing facility
1.10that exists on January 1, 2014, is located anywhere within the boundaries of the cities of
1.11Moorhead or Breckenridge, and is reimbursed under this section or section 256B.434 or
1.12256B.441 shall be adjusted to be equal, for a RUG's operating payment rate with a weight
1.13of 1.00, to the median RUG's rate, including comparable rate components as determined
1.14by the commissioner, for the equivalent RUG's weight of the nonprofit nursing facility or
1.15facilities located in an adjacent city and cities contiguous to the adjacent city in another
1.16state. The percentage of the operating payment rate for each facility to be case-mix adjusted
1.17shall be equal to the percentage that is case-mix adjusted in that facility's June 30, 2014,
1.18operating payment rate. This subdivision shall apply only if it results in a rate increase.
1.19Each October 1, the annual adjustment under this subdivision shall not exceed ten percent
1.20of the facility's operating payment rate in effect on September 30 of that year. A portion,
1.21as determined by the commissioner, of any new rate increase as a result of the annual rate
1.22adjustment under this subdivision shall be used for wages and benefits as specified for
1.23concurrent or the most recent rate increases for other Minnesota nursing facilities. If, in
1.24a given year, rate equality is achieved under this subdivision, a nursing facility eligible
2.1under this subdivision shall not be eligible for an operating payment rate adjustment
2.2provided under this section, section 256B.434 or 256B.441, or any other section of law.