This bill establishes a new hospital assessment program in Minnesota, requiring eligible hospitals that participate in the medical assistance program to pay assessments based on their net inpatient and outpatient revenues, with payments due quarterly. The revenue generated from these assessments will exclusively fund the nonfederal share of a 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 regulations. Additionally, it creates a hospital directed payment program that mandates managed care organizations to make quarterly supplemental payments to eligible providers, while ensuring that these payments do not replace existing medical assistance reimbursements.

Furthermore, the legislation establishes a hospital directed payment program account within the state treasury, which is designed to support health and human services initiatives and prohibits transfers to the general fund. The bill requires annual reporting to legislative committees on the account's activities and financial uses, with the effective date contingent upon federal approval by January 1, 2026, or later. The commissioner of human services is responsible for conducting claims analysis, seeking federal approval for the program by October 1, 2025, and consulting with the Minnesota Hospital Association. If federal approval is granted, a public review period will follow for the approved terms, and this section of the bill will take effect immediately upon final enactment.

Statutes affected:
Introduction: 256.9657, 256B.1973