This bill amends various sections of Minnesota Statutes related to human services, specifically focusing on the reimbursement rates for elderly waivers and nursing facilities. Key changes include the introduction of a "known cost change factor," which will be calculated based on the average increase in minimum wages for nursing home employees, and the establishment of a rate adjustment for nursing home wage standards. The bill also modifies the calculation methods for direct care costs and other care-related costs per resident day, ensuring that these calculations incorporate the new known cost change factor. Additionally, it specifies that the effective dates for these changes will be contingent upon federal approval, with retroactive applications to the rate years beginning January 1, 2026, and January 1, 2027.

Furthermore, the bill outlines the process for nursing facilities to apply for rate adjustments based on wage standards, detailing the necessary documentation and timelines for submission. It mandates that nursing facilities report employee wage rates and includes specific calculations for determining annualized compensation costs for various nursing roles. The bill also updates the methodology for establishing base wages and updating rates, ensuring that these processes reflect the most current data available. Overall, the legislation 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