The bill amends Minnesota Statutes 2024, section 256R.481, to clarify the calculation of rate adjustments for nonprofit nursing facilities located in the border cities of Breckenridge and Moorhead. It allows these facilities to apply annually for a rate add-on to their external fixed costs payment rate, with the requirement that applications be submitted within 60 days of the effective date of any add-on. The commissioner has the discretion to waive deadlines under extraordinary circumstances and is mandated to provide the add-on to eligible facilities that meet the application deadline.

Significantly, the bill modifies the calculation of the add-on by replacing references to "case mix classification PA1" with "the lowest case mix classification in effect." This change aims to ensure that the rate adjustments are based on the most current and relevant classifications. Additionally, the bill includes a provision stating that it is effective retroactively from January 1, 2026, and applies to rate years beginning on or after that date.

Statutes affected:
Introduction: 256R.481