Bill > SF1725

This bill modifies several provisions related to nursing facility reimbursement rates and wage standards, with a primary focus on establishing and implementing minimum wage standards for nursing home workers. Specifically, the bill introduces a "known cost change factor" that will allow nursing facilities to adjust their cost calculations based on increases in minimum wages for employees, and creates a new rate adjustment mechanism to help facilities meet wage standards set by the Nursing Home Workforce Standards Board. For the rate years beginning January 1, 2026 and 2027, nursing facilities will be eligible for rate adjustments that help them raise wages for different categories of workers, including all nursing home workers, certified nursing assistants, trained medication aides, and licensed practical nurses, with minimum hourly wages ranging from $19.00 to $27.00 in 2026, and increasing to $20.50 to $28.50 in 2027. To receive these rate adjustments, facilities must submit detailed applications showing their current wage rates and a spending plan for allocation of the additional funds. The bill also updates how base wages are established, using the most recent Standard Occupational Classification codes and Minnesota-specific wage data, and requires the commissioner of human services to update component rates annually. These provisions are designed to improve compensation and workforce stability in nursing homes, with most changes set to take effect on January 1, 2026 or 2027, pending federal approval.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1725&ssn=0&y=2025