MN HF2885

Establishes a rate adjustment for nursing facilities effective October 1, 2014, to address compensation costs for employees earning less than $14 per hour.

Requires the commissioner to calculate compensation costs using three components: wage increases to $9.50/hour minimum, tiered supplemental payments based on wage ranges from $8 to $13/hour, and employer payroll taxes and benefits attributable to those amounts.

Nursing facilities must submit applications by December 31, 2014, including at least three months of employee wage data and a spending plan describing how adjustment funds will be allocated to compensate low-wage workers.

For unionized facilities, the commissioner must receive written acceptance of the spending plan from the exclusive bargaining agent dated after May 31, 2014, before approving the rate adjustment.

Includes the calculated rate adjustment in the external fixed-cost portion of total payment rates under Minnesota Statutes 256B.441, subdivision 53, with adjustments continuing in subsequent years.