Purpose

• To remove the sunset provision on certain nursing facility property rate increases and to set specific new property rate increases for certain nursing facilities, effective January 1, 2025. The bill amends the rule that previously limited how long these property rate increases could stay in place, and instead ties their continuation to the facility’s eventual transition to a property payment rate or to a hard end date.

Main Provisions

• The bill changes Minnesota Statutes 2024 section 256B.434 subdivision 4k to say that a property rate increase granted under this subdivision ends when one of two conditions occurs: (a) the facility’s property rate transitions to a property payment rate under section 256R.26, subdivision 8; or (b) May 31, 2026, whichever happens first.
• It directs the commissioner to increase the property rate for four specific nursing facilities by specified percentages on January 1, 2025:
  • St. Paul facility located at 1415 Almond Avenue in Ramsey County: increase by 10.65%.
  • Duluth facility located at 3111 Church Place in St. Louis County: increase by 20.81%.
  • Chatfield facility located at 1102 Liberty Street SE in Fillmore County: increase by 21.35%.
  • Fergus Falls facility located at 1131 South Mabelle Avenue in Ottertail County: increase by 38.56% (effective January 1, 2025 through June 30, 2025).

Effective Dates and Transition

• January 1, 2025: the specified property rate increases take effect for the named facilities.
• The increased property rates for these facilities remain in effect until the earlier of:
  • the date the facility’s property rate transitions to a property payment rate under section 256R.26, subdivision 8, or
  • May 31, 2026.

Significant Changes to Existing Law

• Removes the sunset timing that previously limited how long certain nursing facility property rate increases could stay in place.
• Creates a date-based and transition-based endpoint for these increases, rather than allowing an indefinite continuation.

Scope and Limitations

• The changes apply only to the four named nursing facilities and their specific addresses; other facilities are not affected by these particular rate increases under this bill.
• The bill focuses on property rate increases under the specified subdivision and does not address other types of rate adjustments or broader policy changes beyond the sunset removal and these targeted increases.

Relevant Terms - property rate increase - nursing facility - sunset (sunset provision) - transition to a property payment rate - section 256R.26, subdivision 8 - Minnesota Statutes 2024 section 256B.434 subdivision 4k - St. Paul facility at 1415 Almond Avenue, Ramsey County - Duluth facility at 3111 Church Place, St. Louis County - Chatfield facility at 1102 Liberty Street SE, Fillmore County - Fergus Falls facility at 1131 South Mabelle Avenue, Ottertail County - January 1, 2025 - May 31, 2026 - percentage increases: 10.65%, 20.81%, 21.35%, 38.56% - Commissioner (of Minnesota Health/Department of Human Services context)