MN HF3571

Authorizes rate increases for publicly owned nursing facilities beginning January 1, 2011, with local government entities required to pay a portion of nonfederal medical assistance costs.

Allows nursing facilities owned or licensed by cities, counties, or hospital districts to apply for higher payment rates if the local government entity agrees to pay a specified portion of nonfederal medical assistance costs.

Requires eligible nursing facilities to apply by September 30, 2010, with participation being irrevocable and rates taking effect January 1, 2011, based on cost reports for the rate year ending September 30, 2009.

Mandates local government entities pay monthly to the state commissioner the entire nonfederal share of medical assistance payments received as a result of the rate difference, with payments due by the 15th of the following month from January 2011 through September 2015.

Allows the commissioner to reduce payment rates if they would exceed the state's Medicare upper payment limit or other federal limitation, and requires proportional reduction of local government entity payments under this provision.