This bill amends various sections of Minnesota Statutes related to human services, specifically focusing on elderly waiver rates and nursing facility reimbursement rates. Key changes include the introduction of a "known cost change factor," which accounts for increases in minimum wages for nursing home employees, and adjustments to the calculation of direct care costs and other care-related costs per resident day. The bill also establishes a new section for rate adjustments related to nursing home wage standards, which will be effective for rate years beginning January 1, 2026, and January 1, 2027. Additionally, it modifies the external fixed costs payment rate to include a new adjustment for nursing home wage standards, which will expire on January 1, 2029.

The bill specifies that the amendments will take effect on various dates, primarily January 1, 2026, or upon federal approval, whichever is later, and will apply retroactively to the rate years beginning on those dates. The commissioner of human services is tasked with notifying the revisor of statutes when federal approval is obtained. Other provisions include updates to the base wages and payroll taxes and benefits factor, ensuring that these are aligned with the most recent data and standards. Overall, the bill aims to enhance the financial support for nursing facilities while ensuring fair compensation for their employees.

Statutes affected:
Introduction: 256R.02, 256R.23, 256R.24, 256R.25, 256B.436, 256S.211, 256S.213