This bill establishes a new hospital assessment program in Minnesota, mandating that eligible hospitals participating in the medical assistance program pay assessments based on their net inpatient and outpatient revenues, which are due quarterly. The revenue generated from these assessments will exclusively fund the nonfederal share of the directed payment program. The bill also provides specific exemptions and discounts for certain hospitals, such as long-term care and critical access hospitals, to ensure compliance with federal requirements. Additionally, it outlines the creation of a hospital directed payment program, contingent on federal approval, which will supplement existing medical assistance reimbursements and includes guidelines for payment methodologies and timelines.

Furthermore, the bill creates a hospital directed payment program account within the state treasury to manage funds for hospital payments, prohibiting transfers to the general fund and requiring annual reports from the commissioner of human services starting January 15, 2027. The implementation process for the assessment and directed payment program is also detailed, with the commissioner required to begin claims analysis by October 1, 2025, and seek federal approval in consultation with the Minnesota Hospital Association. If federal approval is obtained, a public review period for the approved terms will follow, with this section becoming effective immediately after final enactment.

Statutes affected:
Introduction: 256.9657, 256B.1973