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. The application must be submitted within 60 days of the effective date of any add-on, although the commissioner has the discretion to waive this deadline under extraordinary circumstances.

Significantly, the bill changes the basis for calculating the add-on by replacing the reference to "case mix classification PA1" with "the lowest case mix classification in effect." This adjustment aims to ensure that the rate add-on reflects the median total payment rate for the lowest case mix classification in cities adjacent to Breckenridge and Moorhead. Additionally, the bill specifies that the changes will take effect retroactively from January 1, 2026, and will apply to rate years beginning on or after that date.

Statutes affected:
Introduction: 256R.481