$200 million to aid health care providers in fight against COVID-19

The Legislature’s second law intended to address the COVID-19 pandemic will provide $200 million for health care providers in need of support.

The law, effective March 18, 2020, is sponsored by Rep. Tina Liebling (DFL-Rochester) and Sen. Michelle Benson (R-Ham Lake) and will create two funding pools:

• $50 million for the state’s public health response contingency account, which has rules built in that will allow the money to get where it’s needed quickly; and

• $150 million to create a health care response fund in the state treasury, which will be used to make grants. Any money left over on Feb. 1, 2021 will be returned to the General Fund and the section will sunset on June 30, 2022.

Both will be accessible by care providers including hospitals, clinics, pharmacies, nursing facilities, health care facilities, ambulance services, and settings in which assisted living services or health care services are provided.

The funds can be used to help plan, prepare for, and respond to COVID-19 in a range of ways, including:

• establishment and operation of temporary sites to provide testing services, treatment beds, or to isolate or quarantine affected people;

• temporary conversion of space;

• staff overtime, the hiring of additional staff, and training or orientation;

• consumable protective or treatment supplies and equipment;

• development and implementation of screening and testing procedures;

• patient outreach;

• emergency transportation of patients;

• specialty cleaning supplies;

• temporary systems to support patient triage, screening, and telemedicine activities;

• the purchase of replacement parts and filters for equipment;

• expenses related to the isolation or quarantine of staff; and

• for other expenses that, in the judgment of the commissioner, cannot reasonably be expected to generate income after the outbreak ends.

If proposed expenditures from the health care response fund exceed $1 million, they will be reviewed by the Legislative Advisory Commission.

Money from the $150 million fund will also be used by the Department of Health to administer the grant program, and can be used to establish temporary testing sites, if no eligible health care providers are capable of doing so.

Grants will be prioritized based on several factors including statewide and regional needs, as well as individual institution’s ability to access other funding.

They can only be accepted under the condition that providers agree not to bill uninsured patients for the cost of screening, testing, or treatment of COVID-19. They will also be required to accept the median network rate as payment in full, and not bill patients any amount in excess of the in-network cost-sharing provider rate.

These conditions will remain in effect until Feb. 1, 2021, and the department will report to the Legislature on the grants issued by Jan. 15, 2021.

Providers who receive funding from non-state sources will be required to report that funding and could be required to pay some, or all of the state funding back to the General Fund.

The law will also temporarily allow patients’ homes to count as an “originating site” for telemedicine services, which are currently limited to clinics.

HF3980/SF4334*/CH70

SF4334* / HF3980 / CH70