Bill > SF1622

This bill modifies reimbursement procedures for Federally Qualified Health Centers (FQHCs) and rural health clinics in Minnesota, primarily focusing on how these healthcare providers are paid under the state's medical assistance program. The key provisions include establishing a new alternative payment methodology where clinics can choose between a prospective payment system or an alternative method that reimburses 100% of their costs based on Medicare cost principles. The bill introduces more detailed guidelines for calculating encounter rates, including annual inflation adjustments using the CMS FQHC Market Basket inflator, and allows clinics to submit change of scope requests if their service delivery changes significantly (by 2.5% or more). The legislation also provides a mechanism for clinics to appeal rate calculations, establishes a quality measures workgroup, and creates a pathway for Indian health service facilities and Tribal health centers to enroll as Tribal FQHCs with some modified requirements. Notably, the bill adjusts how base year rates are calculated, specifically changing the base year cost report years from three and four years prior to one and two years prior, and includes provisions to exclude cost reports from years significantly impacted by pandemics or public health emergencies.

Health and Social Services

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1622&ssn=0&y=2025