Purpose of the Bill

The bill aims to establish an "ambulance provider assessment program" to support ambulance services by providing supplemental medical assistance payments. It also exempts certain ambulance services from the MinnesotaCare provider tax, mandates reporting, and allocates funding.

Main Provisions

• Ambulance Provider Assessment Fee: The bill introduces a quarterly ambulance service assessment fee applied to ambulance providers' gross revenues. This fee is designed to contribute to the state's Medicaid expenditures eligible for federal financial participation. It excludes services operated by public entities, like municipal departments, and air ambulance services.

• Ambulance Fee Fund: Revenues from the assessment fee, along with federal financial participation and other appropriations, will be collected into a dedicated fund. This fund will be used to make supplemental payments to ambulance providers, aiming to raise their Medicaid payments to be on par with average commercial insurance rates.

• Supplemental Payment Usage: Funds are restricted to supplementing existing ambulance service payments and aren't permitted to replace current general fund allocations. The fund will be managed to maximize federal matching funds.

• Rulemaking and Reporting: The bill provides authority for rulemaking related to implementing the program and requires annual reports to legislative committees on the fund's expenditures starting January 1, 2027.

• Federal Approval: The entire program's implementation depends on approval from the Centers for Medicare and Medicaid Services (CMS). All funds will be returned to providers if federal approval is not granted or withdrawn.

Significant Changes to Existing Law

• The bill proposes an amendment to existing Minnesota statutes by adding a new subdivision and repealing a previous one, especially related to the MinnesotaCare provider tax and ambulance services.

Relevant Terms

ambulance provider assessment, medical assistance payments, MinnesotaCare provider tax, ambulance services, federal financial participation, supplemental payments, Medicaid, Centers for Medicare and Medicaid Services (CMS)