As we move into the eighth week of the legislative session, activity at the Capitol continues to pick up. MAFP lobbyist Megan Verdeja shares the latest legislative updates on key health care-related hearings and bills moving through committees.
Last week, the Minnesota Academy of Family Physicians (MAFP) was actively engaged in multiple discussions on health care policy, including Medical Assistance rate reimbursement, coverage for the Psychiatric Collaborative Care Model and broader reforms to patient-centered care.
With the latest budget forecast adding uncertainty to long-term state funding, legislators are facing tough decisions about spending priorities. Meanwhile, Democrat David Gottfried‘s win in the Roseville special election has tied the Minnesota House (67 Republicans, 67 Democrats), shifting the balance of power and influencing which bills move forward in coming weeks.
Committee Hearing Updates
Last week saw several key legislative hearings. Highlights follow.
HOUSE HUMAN SERVICES COMMITTEE
Medical Assistance (MA) Rate Reimbursement (HF 1005):
- Testimony: MAFP President Roli Dwivedi, MD, FAAFP, testified on behalf of the MAFP in support of the bill.
- Key Takeaway: There was bipartisan agreement that MA rates are too low, but funding remains a concern.
- Status: The bill was laid over in committee.
- Read a summary of HF 1005.
MA Coverage of the Psychiatric Collaborative Care Model (HF 958):
- Key Takeaway: The bill received bipartisan support during member comments.
- Status: It was laid over for possible inclusion in an omnibus bill.
- Read a summary of HF 958.
HOUSE COMMERCE COMMITTEE
Health Care Reinsurance (HF 837):
- Supporters Say: Reinsurance is needed to keep premiums down. State health insurers already contribute to reinsurance through taxes and assessments that go into the general fund, the proposed source for the program.
- Opposition Says: Reinsurance can be seen as a subsidy to well-funded health plan companies. Instead, an assessment on health plans should fund the program. SEIU, a health care workers’ union, argued in opposition testimony that funding should go toward MA reimbursement rates rather than a giveaway to health plans.
- Key Exchange: Representative Chair O’Driscoll, the bill’s author, countered that if people can no longer afford their premiums on the public market, they will be pushed into MA, further exacerbating the issue of low reimbursement rates.
- Status: The bill passed along party lines and is now headed to the House Health Committee.
SENATE HEALTH AND HUMAN SERVICES COMMITTEE
Patient-Centered Care Program (SF 1059):
- Proposal: The bill proposes removing managed care from MA by having the Department of Human Services (DHS) make direct payments to providers.
- Supporters Say: This will improve care coordination.
- Opposition Says: The Minnesota Council of Health Plans testified in opposition, stating that DHS is currently studying alternative options to the Managed Care Organization (MCO) model; therefore, moving forward with this proposal seems premature. They contend that the MCO model helps build health equity and brings financial stability to the state by assuming the risk. GOP members of the committee expressed concerns about adding more pressure on DHS to oversee this program when it is already struggling to manage oversight of the waiver system. Additionally, concerns were raised about the cost to the state given the current fiscal situation.
- Status: The bill was laid over for possible inclusion in an omnibus bill.
Spoken Language Health Care Interpreter Working Group (SF 2043):
- MAFP Position: The MAFP is supportive of increasing access to interpreter services and has reached out to the bill author to offer support.
- Next Steps: The MAFP will set up a task force on interpreter access this summer.
Certified Midwife Licensure (SF 832):
- Key Takeaway: Member comments provided bipartisan support of the bill as a way to address maternal health care deserts, particularly in Greater Minnesota.
- Status: The bill passed unanimously and was referred to the Senate Judiciary Committee.
SENATE HUMAN SERVICES COMMITTEE
Substance Use Disorder Treatment Payment Rates (SF 1826):
- Proposal: This bill seeks to establish new payment rates for substance use disorder treatment services and to recodify vendor eligibility for payments from the behavioral health fund.
- Key Changes: It implements a base year payment rate structure effective January 1, 2026, which will set specific payment rates for various levels of care, including outpatient and residential treatment services, and mandates annual adjustments based on the Medicare Economic Index, beginning January 1, 2027. The bill also provides for enhanced payment rates for programs offering specific services, such as on-site childcare and culturally responsive programs. It allows for telehealth services while establishing client-to-staff ratio requirements for group treatment settings.
- Status: The bill was laid over for possible inclusion in an omnibus bill.
SENATE STATE AND LOCAL GOVERNMENT COMMITTEE
International Medical Graduate Licensing (SF 509):
- Key Takeaway: The bill was previously amended in the Senate Health and Human Services Committee to address some of the concerns shared with the author from the MAFP.
- Status: It passed with bipartisan support and was referred to the Senate Finance Committee.
