MN SF2413

Imposes a new assessment on hospitals participating in Minnesota's Medical Assistance program, calculated as a percentage of net inpatient and outpatient revenue from Medicare cost reports, with quarterly payments due January 1, April 1, July 1, and October 1

Exempts or discounts assessments for long-term care hospitals, critical access hospitals, rural independent hospitals, children's hospitals, Indian Health Service facilities, state-operated facilities, and nonstate government teaching hospitals with high Medicaid utilization and level 1 trauma centers

Creates a Hospital Directed Payment Program requiring managed care plans to make quarterly directed payments to hospitals based on average commercial payer rates, with payments incorporated into capitation rates and subject to federal approval from the Centers for Medicare and Medicaid Services

Prohibits health plans and hospitals from factoring directed payments into rate negotiations, and prohibits hospitals from passing assessment costs directly to patients or non-Medicaid payers

Establishes a Hospital Directed Payment Program Account in the state treasury to fund the nonfederal share of directed payments, with annual reports to the legislature required beginning January 15, 2027, and an effective date of January 1, 2026, or upon federal approval