The House Human Services Finance and Policy Committee meeting on January 23, 2025, highlighted significant concerns regarding the Governor's proposed budget for the Department of Human Services (DHS) and the Department of Health (MDH).

A key issue raised was the lack of an inflation factor for the elderly waiver program, which is essential for low-income seniors to access services such as assisted living and home care. This absence means that rates for these services will remain stagnant, regardless of rising costs associated with worker compensation, healthcare benefits, or the increasing needs of residents.

Additionally, the MDH budget proposes a substantial 54% increase in fees for assisted living providers. This move has raised alarms about the growing affordability crisis in assisted living, particularly affecting middle-income Minnesotans. Stakeholders expressed concern that these fee hikes would exacerbate existing financial challenges rather than provide relief.

The meeting also touched on proposed changes regarding the use of funds from provider-assessed fines and penalties, although details on this topic were less emphasized.

Overall, the discussions underscored the pressing need for a reevaluation of budget strategies to ensure that vulnerable populations, particularly seniors, receive the necessary support without facing increased financial burdens. The committee's deliberations will likely influence future legislative actions aimed at addressing these critical issues.