SF 2413 Minnesota Senate · 2025-2026 Regular Session

Hospital assessment requirement provision and hospitals in the medical assistance program directed payments requirement provision

This bill requires hospitals participating in Minnesota's medical assistance program (Medicaid) to pay annual assessments based on their inpatient and outpatient revenue, as reported in Medicare cost data. The funds collected must cover the state's share of directed payments to these hospitals under existing law. Certain hospitals - like critical access facilities, children's hospitals, Indian Health Service providers, and rural hospitals - receive exemptions or discounts to meet federal requirements. The assessments begin no earlier than January 1, 2026, pending federal approval of the bill and related changes to state law.

Bill status in committee 1 of 4 stages cleared

Introduction

Mar 2025

Committee Review

Floor Vote

Governor

Introduced Mar 13, 2025 Last action Apr 2, 2025

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What changed between versions

Introduction → 1st Engrossment · 8 edits · Mar 20, 2025

MODERATE

This bill was revised from its introduction to its first engrossment version, incorporating significant changes to how hospital assessments and directed payments are calculated, paid, and enforced. The changes clarify that assessments are paid quarterly based on annual amounts, introduce new exemptions for specific hospital types, and expand the list of entities required to make payments from 'eligible providers' to 'health plans.' Additionally, the bill now requires public notice of estimated assessment amounts and adds penalties for late payments by health plans.

Scope change

The scope of the payment obligation was expanded to explicitly include health plans (managed care organizations) as entities required to make directed payments to hospitals, whereas the original text focused primarily on eligible providers.

REQUIREMENT

Changed the payment schedule from due dates for invoices to a requirement that hospitals pay four equal quarterly installments of their total annual assessment.

Added a requirement for the commissioner to notify hospitals of their estimated annual assessment amount by October 15 each year.

Expanded the public notice requirement for assessment estimates to include all hospitals without exemptions, not just those with specific characteristics.

ELIGIBILITY

Removed language requiring discounts to meet federal law requirements and replaced it with a mandate to discount assessments to ensure no single hospital system pays more than a specific percentage of the total statewide assessments.

EXEMPTIONS

Added a new exemption category for hospitals that are nonstate government teaching hospitals with high medical assistance utilization and a level 1 trauma center.

SCOPE

Changed the language requiring payments from 'eligible providers' to 'health plans,' clarifying that managed care organizations must make quarterly directed payments to hospitals.

ENFORCEMENT

Added a specific penalty provision for health plans that are late in making required directed payments to hospitals.

DEFINITION

Updated the definition of 'health plan' to remove the term 'county-based purchasing plan' and replace it with 'managed care plan.'

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 2, 2025

Committee

Comm report: No recommendation, re-referred to Health and Human Services

upper

Mar 20, 2025

Upper · Passed

Comm report: To pass as amended and re-refer to Taxes

upper

Mar 13, 2025

Committee

Referred to Health and Human Services

upper

Mar 13, 2025

Introduced

Introduction and first reading

upper

1 primary · 2 co-sponsors