This bill establishes a 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. The assessments will be collected quarterly, with deadlines for payment and invoicing set by the commissioner of human services. The commissioner is responsible for providing hospitals with estimated assessment amounts and ensuring that the revenue generated is exclusively used for the nonfederal share of the directed payment program. The bill also includes provisions for discounts or exemptions for certain hospitals to facilitate federal approval and to limit the assessment burden on individual hospital systems.

Additionally, the bill creates a hospital directed payment program, contingent on federal approval, allowing eligible providers to receive directed payments without duplicating payments for the same services. The commissioner will determine payment amounts, ensuring that these directed payments supplement existing medical assistance reimbursements. Health plans are required to make timely payments and are prohibited from negotiating rates that factor in directed payments. The bill also establishes a hospital directed payment program account within the state treasury, which will manage funds for hospital payments, prohibits transfers to other funds, and requires annual reports from the commissioner to legislative committees. The implementation process includes conducting claims analysis and ensuring public consultation and transparency before seeking federal approval.

Statutes affected:
Introduction: 256.9657, 256B.1973
1st Engrossment: 256.9657, 256B.1973