As we move into the tenth week of the legislative session, Minnesota Academy of Family Physicians (MAFP) lobbyist Megan Verdeja breaks down what’s happening at the Minnesota State Capitol and provides an update on health care bills.
Committees reviewed a range of legislation, including efforts to address workforce shortages, expand insurance coverage and improve school health services. Key proposals included increasing hospital Medicaid reimbursement rates, preventing mid-year changes to prescription drug formularies and establishing a School Health Advisory Committee.
Additionally, Senator Justin Eichorn (Republican – District 06) resigned following felony charges.
Committee Hearing Highlights
Last week saw several legislative hearings. Highlights follow.
SENATE HEALTH AND HUMAN SERVICES (HHS) COMMITTEE
On Tuesday, March 18, 2025, the Senate HHS Committee heard a series of health care bills:
S.F. 2322 (Senator Wiklund) establishes the Minnesota Health Care Workforce Advisory Council. Most committee remarks centered on the need to address workforce shortages in health care. The bill passed by a voice vote and was referred to the State and Local Government Committee. Read a summary of S.F. 2322.
S.F. 2413 (Senator Mann) creates a new assessment on hospitals to increase Medical Assistance reimbursement rates. The Minnesota Hospital Association, as well as some individual hospitals, testified in support of the bill. Supporters stated that by adopting a Medicaid Directed Payment Program, Minnesota could capture more than $1 billion in additional federal Medicaid funding, and that it would not require new state spending, since hospitals contribute through an assessment that is then matched with federal funds. Committee members raised concerns about what would happen if the federal funds were no longer available, but no clear answer was provided. The bill was passed by a voice vote and was sent to the Tax Committee. Read a summary of S.F. 2413.
HOUSE COMMERCE FINANCE AND POLICY COMMITTEE
H.F. 2403 (Representative O’Driscoll): On Wednesday, March 19, 2025, the House Commerce Finance and Policy Committee heard H.F. 2403. The bill addresses Medicare supplement policies and individual health plans, including:
- Allowing Medicare supplement policies to factor in late enrollment and reenrollment when determining premiums.
- Requiring a 10% premium increase for individuals who enroll in a supplement policy outside their initial Medicare Part B enrollment period and are no longer eligible for a guaranteed issue period.
- Listing circumstances under which an individual health plan cannot be renewed.
- Requiring health carriers that want to discontinue a particular type of individual health plan to follow notice and offer requirements and granting Commerce the authority to disapprove the discontinuation.
The Leukemia and Lymphoma Society testified in support of protecting consumer access. Questions revolved around rates for the different types of Medicare plans, enrollment periods and qualifications for enrollment.
The bill was laid over for possible inclusion in a future omnibus bill.
SENATE EDUCATION POLICY COMMITTEE
S.F. 1354 (Senator Boldon): On Wednesday, March 19, 2025, the Senate Education Policy Committee heard S.F. 1354, which would establish a School Health Advisory Committee. The bill includes a family physician as a member of the committee, which is tasked with advising the Governor and legislature on policies and practices related to school health.
Schools are seeing increased concerns related to managing acute and chronic health conditions, mental health issues and health fragility. The bill supports a coordinated approach to services. Read a summary of S.F. 1354.
HOUSE HEALTH COMMITTEE
On Wednesday, March 19, 2025, the House Health Committee heard a series of health care bills addressing insurance coverage and medication pricing.
H.F. 1878 (Representative Keeler) would cover traditional health care practices under Medical Assistance. Proponents indicated that traditional practices have been proven successful in improving health outcomes. The bill was laid over for possible inclusion in a future omnibus bill.
H.F. 1652 (Representative Elkins) is the MAFP’s priority bill prohibiting mid-year formulary changes. Family physician and Minnesota Medical Association Immediate Past President Laurel Ries, MD, testified in support, along with NAMI Minnesota. The Minnesota Council of Health Plans (MCHP) raised concerns, as the bill enacts new regulations on health plans, and they contend they have little control over pricing set by drug manufacturers. The bill was laid over for possible inclusion in a future omnibus bill. Read a summary of H.F. 1652.
H.F. 1075 (Representative Elkins) requires pharmacy benefit managers and health carriers to use prescription drug rebates and other compensation to benefit covered people. Again, the MCHP testified in opposition, stating that rebates are spread out and used to lower prices for everyone. The bill was laid over for possible inclusion in a future omnibus bill. Read a summary of H.F. 1075.
H.F. 2007 (Representative Nadeau) established a spoken language health care interpreter work group. The MAFP is a member of the coalition supporting this bill, which was also laid over for possible inclusion in a future omnibus bill. Read a summary of H.F. 2007.
HOUSE HHS COMMITTEE
H.F. 1994 (Representative Frederick): On Thursday, March 20, 2025, the House HHS Committee heard H.F. 1994, which increases base year payment rates for substance use disorder treatments and requires annual inflationary adjustments to payment rates. Treatment facilities testified about the potential for going out of business if rates cannot be increased. The bill was laid over for possible inclusion in a future omnibus bill. Read a summary of H.F. 1994.
H.F. 1995 (Representative Frederick): The committee also heard H.F. 1995, which changes the language of a chemical use assessment to a “whole” assessment and provides coverage for these assessments under Medicaid. The bill passed on a unanimous voice vote and was referred to the Judiciary Committee.
SENATE COMMERCE COMMITTEE
S.F. 1024 (Senator Wiklund): On Thursday, March 20, 2025, the Senate Commerce Committee heard the DFL’s proposal on health care reinsurance, which aims to sunset the current reinsurance program and replace it with a new premium subsidy program to help individuals pay for their coverage in the individual market. The bill was previously heard in the HHS committee. A roll call vote ended in a 5-5 tie, so the bill was not passed out of committee. Read a summary of S.F. 1024.
Senator Eichorn Resigns
Minnesota State Senator Justin Eichorn (Republican – District 06) was arrested on Monday, March 17, 2025, in Bloomington during a law enforcement sting operation. Authorities allege that Eichorn engaged in online communications with undercover detectives posing as a 17-year-old girl and arranged to meet for sexual activities. He was apprehended without incident upon arrival at the agreed location.
Following the arrest, Eichorn was charged in federal court with attempted coercion and enticement of a minor. In response to these serious allegations, leaders within the Minnesota Republican Party, including Senate Minority Leader Mark Johnson (East Grand Forks) and House Speaker Lisa Demuth (Cold Spring), called for his immediate resignation, emphasizing the need for elected officials to uphold the public’s trust.
This will trigger a special election in District 6. However, this vacancy will not change the power structure of the Senate: 34 Democrats and now 32 Republicans.
