Implementation Timeline for 2013 Home Care Legislation

July 1, 2013 / Chapter 108 (the Health and Human Services Omnibus bill, with the 2013 Home Care Legislation) is effective.
Oct. 1, 2013 / Beginning October 1, 2013, changes in ownership applications will require payment of the new fees listed in section 144A.472.Change of ownership applicants will be issued a new home care license based on the licensure law in effect on June 30, 2013.
Nov. 30, 2013 / Last day MDH will accept new home care license applications under the law/rules in effect on June 30. 2013.
Dec. 1-31, 2013 / MDH accepts no new home care license applications during the month of December, 2013.
Jan. 2, 2014 / New home care providers must apply for a temporary basic or temporary comprehensive license and must comply with the requirements in the 2013 home care legislation.
July 1, 2014 / Previously licensed Class B, Class A or Class F licensees must comply with the requirements in the 2013 home care legislation on their regularly scheduled renewal date on or after July 1, 2014. For those that will have a significant increase in the annual renewal fee, this will be the first year of the phase-in of the annual license fee based on revenue from home care services.
Renewal and change of ownership applications of home care licenses issued beginning July 1, 2014, will be issued according to the 2013 legislation and, upon license renewal or issuance of a new license for a change of ownership, providers must comply with sections 144A.43 to 144A.4798 in the 2013 legislation. Prior to renewal, providers must comply with the home care licensure law in effect on June 30, 2013—in other words, the previous law and the rules at Part 4668. .
June 30, 2015 / By June 30, 2015, all home care providers must have either a temporary license or a basic or comprehensive home care license. For licensees that will have a significant increase in the annual renewal fee, when they renew their license between July 1, 2015 and June 30, 2016, this will be the second (and last) year of the phase-in of the annual license fee.
July 1, 2016 / All home care providers must pay the fee for a temporary license or for a renewal license based on the fee schedule in the 2013 home care legislation.

FEES

Change of Ownership – As of Oct. 1, 2013, change of ownership applications must pay the following application fee:

  • Basic home care provider -- $2,100
  • Comprehensive home care provider -- $4,200

Temporary Licensees – As of January 2, 2014, applicants for a temporary license must pay the following application fee:

  • Basic home care provider -- $2,100
  • Comprehensive home care provider -- $4,200

Renewing Licensees --Home Care Agencies licensed on June 30, 2013, and renewing on or after July 1, 2014, must pay a renewal fee based on revenues*derived from the provision of home care services during the calendar year prior to the year in which the application is submitted, according to the following schedule:

Provider Annual Revenue from Home Care services
in the previous year / Renewal Fee
no more than $25,000
Note: For fiscal year 2014 only, the fees for providers with revenues no more than $25,000 the fee will be $125 / $200
greater than $25,000 and no more than $50,000
Note: For fiscal year 2014 only, the fees for providers with revenues greater than $25,000 and no more than $100,000 will be $313 / $400
greater than $50,000 and no more than $100,000
Note: For fiscal year 2014 only, the fees for providers with revenues greater than $25,000 and no more than $100,000 will be $313 / $500
greater than $100,000 and no more than $250,000 / $828
greater than $250,000 and no more than $350,000 / $1,242
greater than $350,000 and no more than $450,000 / $1,656
greater than $450,000 and no more than $550,000 / $2,070
greater than $550,000 and no more than $650,000 / $2,485
greater than $650,000 and no more than $750,000 / $2,898
greater than $750,000 and no more than $850,000 / $3,313
greater than $850,000 and no more than $950,000 / $3,727
greater than $950,000 and no more than $1,100,000 / $4,141
greater than $1,100,000 and no more than $1,275,000 / $4,969
greater than $1,275,000 and no more than $1,500,000 / $5,797
greater than $1,500,000 / $6,625

* At each annual renewal, a home care provider may elect to pay the highest
renewal fee for its license category, and not provide annual revenue information to the
commissioner.

Phase in of Renewal License Fees –Based on the successful negotiations of the LTC Imperative and MHCA, the fees charged for licenses renewed between July 1, 2014, and June 30, 2016, shall be the lesser of 200 percent or $1,000, except where the 200 percent or $1,000 increase exceeds the actual renewal fee charged, with a maximum renewal fee of $6,625. Here are twohypothetical examples:

1)A Class F provider has been paying $625 for its annual license. Based on revenue, its renewal fee after July 1, 2014, would be $2,070. This increase in renewal fee is more than a 200 percent or $1,000 increase, so the phase-in applies.

  • 200 percent of $625 would be $1,250. The new fee of $2,070 exceeds 200 percent andis more than $1,000higher than the previous fee, so at the first renewal after July 1, 2014, the provider would pay $1,250.
  • At the next year’s renewal, the provider would pay the scheduled fee of $2, 070 since that amount is less than either a 200 percent($2,500) or $1,000 ($2,250)increase over the previous year’s renewal fee.

2)A Class F provider has been paying $400 for its annual license, but based on revenue, after July 1, 2014, the renewal fee would be $1,656.

  • 200 percent of $400 would be $800, so during the first renewal after July 1, 2014, the provider would pay $800, which is less than $400 + $1,000.
  • At the next year’s renewal, 200 percent would be $1,600, which is still less than the full renewal fee of $1,656 and less than $1,000 more than the previous renewal fee ($1,800), so the provider would pay $1,600.
  • The following year, the provider would pay the full fee of $1,656.