MN SF1725

Adds nursing home wage standards rate adjustments to the definition of "external fixed costs" for nursing facility reimbursement, implementing wage standards set by the Nursing Home Workforce Standards Board adopted October 28, 2024

Creates a new "known cost change factor" equal to 1.00 plus the average minimum wage increase approved by the Nursing Home Workforce Standards Board, which must be applied when calculating direct care, other care-related, and other operating costs per day

Establishes minimum hourly wage thresholds for rate year 2026: $19.00 for all nursing home workers, $22.50 for certified nursing assistants, $23.50 for trained medication aides, and $27.00 for licensed practical nurses; increases for 2027 to $20.50, $24.00, $25.00, and $28.50 respectively

Requires nursing facilities to apply by October 1 each year with employee wage data and spending plans to receive rate adjustments, with unionized facilities needing bargaining representative approval of the spending plan

Updates elderly waiver rate methodology to use the most recent Bureau of Labor Statistics occupational data instead of pre-2019 data, and requires annual updates to component rates and payroll taxes/benefits factors beginning January 1, 2026