MN SF1616

Establishes an alternate inpatient payment rate for Minnesota children's hospitals designated and enumerated by Medicare, effective retroactively from January 1, 2015, when certain conditions are met regarding inclusion of dual-eligible patients in disproportionate share hospital payment calculations

Requires the commissioner to reimburse children's hospitals at the higher of either the alternate payment rate or the standard subdivision 9 rate, with the alternate rate targeting two percent less reimbursement than each hospital's cost coverage percentage for medical assistance fee-for-service inpatient services

Specifies that costs under the alternate payment rate must be determined using the most recently available medical assistance cost report and standard Medicare cost finding and allocation methods, with interim use of Medicare cost reports if medical assistance reports are unavailable

Prohibits payments under the standard subdivision 9 method in any rate year when the alternate payment rate is used, and requires the commissioner to consider excessive payment increases above inflation factors when setting rates at the next rebasing

Requires Minnesota children's hospitals designated by Medicare to submit annual medical assistance cost reports to the commissioner within six months of fiscal year end, with payment suspension for non-compliance