MN SF2508

Amends Minnesota Statutes section 256B.441, subdivision 53 to add a new rate adjustment component for nursing facilities in the external fixed costs calculation.

Nursing facilities must submit applications by December 31, 2014 with employee wage data (at least three months) and spending plans describing how adjustment funds will be allocated to employees earning less than $14.00 per hour.

Commissioner calculates the rate adjustment by determining annualized compensation costs based on wage increases to $9.50 minimum for lower-wage employees, tiered benefit multipliers ($0.10 to $0.50) for employees earning $8.00 to $13.00 per hour, and employer payroll taxes/benefits.

For unionized facilities, commissioner must receive signed letter of acceptance from the exclusive bargaining agent (dated after May 31, 2014) before approving the application.

Approved facilities receive the rate adjustment beginning October 1, 2014 to pay compensation costs for employees earning less than $14.00 per hour, with the adjustment continuing in subsequent years.