The proposed bill seeks to implement a hospital assessment as part of Minnesota's medical assistance program, requiring eligible hospitals to pay assessments based on their net inpatient and outpatient revenues. It introduces new legal language to Minnesota Statutes by adding subdivisions to sections 256.9657 and 256B.1973, which detail the definitions, payment structures, and responsibilities of hospitals and the commissioner of human services. Hospitals will be mandated to pay quarterly assessments, with the commissioner responsible for issuing invoices and notifications. The bill also establishes a hospital directed payment program, contingent on federal approval, allowing hospitals to receive directed payments that supplement medical assistance reimbursements.

Furthermore, the bill includes provisions for discounts and exemptions to ensure compliance with federal regulations, as well as penalties for health plans that do not make timely directed payments. It requires the commissioner to publish all directed payments owed to hospitals and mandates hospitals to submit necessary documentation for assessment determination. The bill establishes a hospital directed payment program account within the state treasury to manage funds for assessments and directed payments, prohibiting transfers to other funds and requiring annual reports to legislative committees. The effective date for these provisions is set for January 1, 2026, or upon federal approval, while the section regarding claims analysis and federal approval processes is effective immediately upon final enactment.

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