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 rate adjustment for nursing home wage standards, which will be effective for rate years beginning January 1, 2026, and January 1, 2027. Facilities must report employee wage rates and submit applications for rate adjustments, which will be calculated based on specific wage thresholds for various nursing positions.

Additionally, the bill modifies existing provisions regarding external fixed costs, including the addition of a rate adjustment for nursing home wage standards and updates to the base wages and payroll taxes and benefits factors used in determining reimbursement rates. The effective dates for these changes are set for January 1, 2026, and January 1, 2027, contingent upon federal approval, with retroactive applications to the respective rate years. The commissioner of human services is tasked with notifying the revisor of statutes upon obtaining federal approval.

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