This bill establishes a hospital directed payment program in Minnesota, introducing an assessment on hospitals participating in the state's medical assistance program. It amends Minnesota Statutes by adding new subdivisions to sections 256.9657 and 256B.1973, detailing the definitions, requirements, and procedures for the assessment and directed payments. Hospitals will be assessed based on their net inpatient and outpatient revenues, with specific payment deadlines. Revenue generated from these assessments will exclusively fund the nonfederal share of the directed payment program, and certain hospitals may qualify for discounts or exemptions to comply with federal regulations.

Additionally, the bill creates a dedicated account within the state treasury for managing hospital payments, prohibits transfers to the general fund, and requires the commissioner of human services to provide annual reports on the account's activities starting January 15, 2027. The commissioner is also tasked with conducting a claims analysis by October 1, 2025, and seeking federal approval for the program, while ensuring consultation with the Minnesota Hospital Association and nonexempt hospitals during the design phase. The provisions related to the hospital directed payment program will take effect upon federal approval, while the implementation section will be effective immediately after final enactment.

Statutes affected:
Introduction: 256.9657, 256B.1973