[{"_1":2,"_124":-5,"_125":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100,112],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6373207,"mediaKeyId","2146190-71190d1f0bca1ede0c3ebe5909fe92d2","parentId",2146190,"title","Hospitals and insurers oppose pharmacy carve‑out and higher HMO surcharge in governor’s DHS budget","audioSeconds",1101,"startMs",1782000,"endMs",2883000,"viewUrl","/Search/View?dp=1&key=2146190-71190d1f0bca1ede0c3ebe5909fe92d2&start=1782&end=2883","thumbnailUrl","https://assets.pipeline.soar.com/2146190-71190d1f0bca1ede0c3ebe5909fe92d2/thumbnail_1782000.jpg","articleUrl","/articles/6373207/Minnesota/Hospitals-and-insurers-oppose-pharmacy-carveout-and-higher-HMO-surcharge-in-governors-DHS-budget","mediaUrl","https://secure.pipeline.soar.com/6373207-a188678bafd67b950451967497c812de/orig.mp4?Expires=1771056204&Signature=QCe1IaAua~djyRbqArpVSjU-UC6fNtYbhmpRFyCa15xz7WCpUDmAIXGNjC9UvaxNmSeBhuhCeNiSZT7iycvjpbgb6G~O79cByHV4bG-xdwdPiN5hHN9pKZWt3UQPoG0m67qdgzesizOW~eMlWBJQgm-QctPW95ERjU~AGEvHFxN4-HaRzXZHqsY7SkBS6~22xijwEqM9E3Htye~YurxoRfQQotboNOJRDnRHeKCZ3OmY7dxMwRymRKsfxFD-L0m9rNCVQT7SDL63cmGi-ew-OG-9GDZwftO7soa4ZeYOl7nvbKevOuNvnjPS~N9GBBKp60i9qtHjmAU3aJIn96NkFw__&Key-Pair-Id=KUT5TJCACFTXG","author","MNHouseInfo","date","2025-01-23T00:00:00Z","article","Representatives of Minnesota’s nonprofit insurers and hospitals told the Human Services Committee they oppose several health care financing proposals in the governor’s DHS budget, saying the changes could raise costs for enrollees and harm safety‑net providers.

Dan Endresen of the Minnesota Council of Health Plans described two concerns: a proposed increase in the HMO surcharge from 0.6% to 1.25% and proposals to carve out pharmacy and non‑emergency medical transportation (NEMT) from the state’s managed care model. Endresen said adding taxes to insurance “increases the cost paid by enrollees and small businesses” and noted the fully insured market already bears several premium‑based assessments.

Endresen also argued that carving out pharmacy and NEMT would fragment care coordination. “Prescription drugs and NEMT services are important components of a health care, and carving these benefits out will remove the vital opportunities to coordinate that care,” he said, warning members would face multiple points of contact rather than a single managed care organization.

Danny Acker of the Minnesota Hospital Association said the Department of Human Services’ pharmacy carve‑out proposal would jeopardize roughly $86,000,000 in annual outpatient savings generated through the federal 340B drug pricing program. “If the state were to take all of that in Medicaid rebates, the federal share is actually withheld, so about 70% of that $86,000,000 would just stay in Washington, DC and not come to Minnesota,” he said. Acker urged lawmakers to consider alternate models used in Kentucky and Ohio that keep pharmacy benefits inside managed care while addressing PBM practices.

Both witnesses urged legislators to prioritize enrollee experience and warned that previous single‑administrator carve outs (for other products) produced unintended consequences. No formal votes were taken in the hearing; witnesses said they will review bill language as it is released and return as needed.","mediaType","Video","parentTitle","House Human Services Finance and Policy Committee 1/23/25","oneSentenceSummary","Representatives of Minnesota’s nonprofit insurers and hospitals told the Human Services Committee they oppose several health care financing proposals in the governor’s DHS budget, saying the changes could raise costs for enrollees and harm safety‑net providers.","taxTitle","2025 Legislature MN, Minnesota","taxId",77817,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6373212,"Long‑term care advocates say governor’s budget underfunds nursing homes, risks reducing bed capacity",168,671000,839000,"/Search/View?dp=1&key=2146190-71190d1f0bca1ede0c3ebe5909fe92d2&start=671&end=839","https://assets.pipeline.soar.com/2146190-71190d1f0bca1ede0c3ebe5909fe92d2/thumbnail_671000.jpg","/articles/6373212/Minnesota/Longterm-care-advocates-say-governors-budget-underfunds-nursing-homes-risks-reducing-bed-capacity","https://secure.pipeline.soar.com/6373212-24cb5fb8ec10b833a879a48fbf9d1442/orig.mp4?Expires=1771056204&Signature=jF9OW9oWZO8kiALvu3q~G4JxvjtW2~sOT~Fb3GksVnX4kRN-xeE3PWsKfdlTqY4PLIseDKaVLpeUSSdBy~UdDgtZvSU8Anzf6U-ewcM~1Iw-3x0AnpSkWGgv-Ov6IvcMXlQFNzEFRHjjfSds9ZAoo1kRf6loLZ~ypEa1NXgfIlIBicKRiJQzcoR5qXNs6zZFGcehuPdtUvAba~ltJ3rTrzXQDQo-XS75i-LDfeis71VyrfXLhx3P5P7bGStlv-QDb74jzM4Ovdt0v8KjrFmxUS58UM~Ly9~OW3fr0da832EJpwTYWXH-sf9T1HZm6co8~pOqyvIBTFnXjFVKzFmEFw__&Key-Pair-Id=KUT5TJCACFTXG","Long‑term care providers told the House Human Services Committee the governor’s budget would underfund nursing homes at a time of persistent workforce shortages and bed losses across Minnesota.

Kyle Burnt, speaking for the Long Term Care Imperative, said more than 2,400 nursing home beds have been removed from service statewide since 2020 and 16 nursing homes in greater Minnesota have closed. He said the governor’s proposal to limit future rate increases with a 2% cap, limit health insurance costs included in rate setting, and phase out planned closure rate agreements and single‑bed incentives would produce a $218,000,000 cut over four years.

Erin Hubert, also with the Long Term Care Imperative, said the elderly waiver that helps low‑income seniors access assisted living and home care “does not have any sort of inflation factor,” meaning rates would not rise if costs increase. She also called attention to a proposed 54% fee increase for assisted living providers in the MDH budget narrative and raised concerns about changes to the use of provider assessed fine and penalty funds.

Burnt warned that mandated requirements from the Nursing Home Workforce Standards Board are not fully funded in the governor’s proposal; he estimated those requirements would cost about $150,000,000 and that combined with the proposed cuts and the underfunding would represent, in his words, a $350,000,000 impact.

Committee members asked witnesses about the number of facilities that would be affected. Hubert estimated there are roughly 315–320 nursing homes statewide and said she “doesn't envision that any of them would have no impact as a result of the governor’s budget,” adding that “you could safely assume that every nursing home and every nursing home bed would be impacted.”

Members and witnesses noted the link between funding and staffing: lower reimbursement can force facilities to take beds out of service because they cannot staff them. Representative Murphy described this as a “snowball” effect in which losing workforce capacity leads to reduced wings or units at facilities, further reducing access.

Witnesses said they will return with legislative proposals to offset cuts and to fund implementation costs tied to workforce standards. The committee did not take votes; DHS and MDH were expected to appear in later hearings to respond to these concerns.","Leading Age Minnesota and the Long Term Care Imperative told the House committee that proposed caps and underfunding for mandated standards would cut hundreds of millions from nursing home funding, risk closures and exacerbate workforce shortages.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6373216,"Providers warn governor’s budget cuts would deepen workforce crisis for disability waiver services",120,176000,296000,"/Search/View?dp=1&key=2146190-71190d1f0bca1ede0c3ebe5909fe92d2&start=176&end=296","https://assets.pipeline.soar.com/2146190-71190d1f0bca1ede0c3ebe5909fe92d2/thumbnail_176000.jpg","/articles/6373216/Minnesota/Providers-warn-governors-budget-cuts-would-deepen-workforce-crisis-for-disability-waiver-services","https://secure.pipeline.soar.com/6373216-9297bd836c2bf4054b9853661ea43ff5/orig.mp4?Expires=1771056204&Signature=YfbK3VdNVEV5vr9025SpIFFfiylQk1ZJYczQ7e2PNhuY2mz031uxu0Y~67qlnUNF1etx~AzSU3Tu0JBRnnyeOuThvCVpwMsek2z7WJXIRO7E9pTqadJGOV1vDRg8gIdf~lhMEeDAoMpflgVsFJwDKChWjg3TZnDtFWMIfrT4CpKKAfHc7AOYd71WglAQ4DqCnszU~5Ltl1YF29ZLyo92aBIKtCxD~Nt4lz7l9J0Yze~8tVUprRow7lQFFYCInVGYEOhkYio-ks3q8zlPxScU7OjsV8mPfuN0Gu5y9SkOrkoixozuQoL9DRsSK-tUINJ1KoV4R4wnjJjzzlU1YtpNkg__&Key-Pair-Id=KUT5TJCACFTXG","Chair Rep. Fue Lee's Human Services Committee heard nearly three hours of public testimony warning that the governor’s budget proposal for human services would destabilize disability waiver services and the workforce that provides them.

Johnny Tvets, policy manager for ARM, a trade association representing disability waiver residential providers, told the committee that the proposal to “cap inflationary adjustments at 2%” would “exacerbate an already dire workforce crisis.” He said direct support professionals, “who are a majority women and people of color,” earn about $17 per hour and that the cap would “further erode their wages.”

The concern was echoed by Sarah Grafstrom, senior director of state and federal policy for ARM, who described local consequences if homes close: “When an individual's home closes, that means the family is now looking at, well, what do I do to support my loved one? Do I bring them home with me? Do I find a different home that maybe isn't in my community?”

Laurie Schluttenhofer, co‑president and CEO of Services for Opportunity Partners and a board member of MORE (Minnesota Organization for Habilitation and Rehabilitation), said two specific budget provisions would hit day and employment services. She cited a proposed reduction in the “absence and utilization factor” from 9.4% to 3.9% and said her organization saw an 11% absence rate in 2024. “Bringing this factor down to 3.9 would … equate … into over a 5% reduction in the rates paid to provide those services,” she said. Schluttenhofer also warned that capping future inflationary adjustments would make it harder to maintain competitive wages.

Speakers from multiple provider groups and members of the committee stressed the link between reimbursement, staff pay and program continuity: lower reimbursement forces providers to cut staff or close homes, disrupting people’s long‑standing residences and supports. Testimony cited a package of proposals—limiting rate exceptions, capping billable days at 351 per year and limiting individualized home supports with training to eight hours per day—that ARM estimated would cut about $600,000,000 from disability waiver services over four years.

Committee members responded with questions about local impacts and the timing of rate adjustments. Representative Gander said she has “worked with group home residents for a very long time” and described staff as “just subsisting,” and Representative Murphy and others pressed witnesses on how funding shortfalls translate into closed beds and reduced community access.

The committee did not take formal action; members noted DHS declined an invitation to testify today and that DHS and MDH will appear in future hearings to provide the administration’s view. Providers said they plan to return with legislative proposals aimed at restoring or protecting funding and at addressing workforce needs.

The committee’s public hearing record includes written testimony from additional providers that expands on the staffing and rate‑setting concerns raised in person.","Trade groups and nonprofit providers told the House Human Services Committee the governor’s proposal to cap inflationary rate adjustments and other limits would reduce wages, force closures and cut roughly $600 million from disability waiver services over four years.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6373198,"Substance use and mental health providers urge immediate rate increases after Burns & Associates study",143,2470000,2613000,"/Search/View?dp=1&key=2146190-71190d1f0bca1ede0c3ebe5909fe92d2&start=2470&end=2613","https://assets.pipeline.soar.com/2146190-71190d1f0bca1ede0c3ebe5909fe92d2/thumbnail_2470000.jpg","/articles/6373198/Minnesota/Substance-use-and-mental-health-providers-urge-immediate-rate-increases-after-Burns-Associates-study","https://secure.pipeline.soar.com/6373198-4813e71ea86265379d54c95170546e95/orig.mp4?Expires=1771056204&Signature=iOugW~d-ScM1CfwlCC1yxXAqFZBFyZOr1qVI45QfQ7YTtECYFXAh6jGcCSf8O9WtkZB6y8i9iaUy07NmvjqYMG1UTVyi2OOmODkfuzRY25zS2kPT7n0X-crraav44V57loq6qWKPXmN~FPQ93oS9oQi5bFx2ZtO7lmAD6tOjA5KxPL7rQzPBd38DP9LS3WgpvRjfPyXxjny220uRBeUXeqtIwu3FdZe4TsQSNvT2F3iH2Vxwc3LGgamH1Rae7TzntUN8HzAcG5sTWunGOvzT6XvcAJZt4l4~Fs~v9NQUhBDHtXW9W31sU4CjEKHl8QFgK6aYUo6ESYaS8rBAgOGN0Q__&Key-Pair-Id=KUT5TJCACFTXG","Substance use and mental health provider representatives urged the Human Services Committee to fund recommended rate increases identified in a recent Burns & Associates study.

Brian Zervis, executive director of the Minnesota Association of Resources for Recovery in Chemical Health (MARRC), said the study identified nine distinct substance use disorder reimbursement rates, eight of which “were identified as needing an increase.” He said averaging the recommended increases across the nine codes yields a 68% increase needed to cover the cost of delivering care.

Zervis highlighted one rate—low‑intensity residential (ASAM 3.1)—where current reimbursement of about $79 per day “is identified as needing a 171% increase.” He said failing to implement the study’s recommendations “perpetuates strain and stress on programs, on their staff, and providers,” and noted a projected state surplus of $355,000,000 by fiscal 2029 as a possible resource for investment.

Providers urged the committee to prioritize funding to implement the rate recommendations and said that higher rates would improve sustainability, staffing and patient access. No formal committee action was taken; Zervis said he would return with further proposals.","Treatment providers told the committee the governor’s budget omitted recommended rate increases for mental health and substance use disorder services; a recent rate study identified large shortfalls—an average 68% increase across codes and a 171% gap for one residential rate.",{"_33":113,"_35":36,"_37":38,"_39":114,"_41":115,"_43":116,"_45":117,"_47":118,"_49":119,"_51":120,"_53":121,"_55":56,"_57":58,"_59":122,"_61":62,"_63":64,"_65":123,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6373202,"Hospitals and health systems back extension of audio‑only telehealth in DHS budget",47,2939000,2986000,"/Search/View?dp=1&key=2146190-71190d1f0bca1ede0c3ebe5909fe92d2&start=2939&end=2986","https://assets.pipeline.soar.com/2146190-71190d1f0bca1ede0c3ebe5909fe92d2/thumbnail_2939000.jpg","/articles/6373202/Minnesota/Hospitals-and-health-systems-back-extension-of-audioonly-telehealth-in-DHS-budget","https://secure.pipeline.soar.com/6373202-ba85b07a903fc6509113445d31215552/orig.mp4?Expires=1771056204&Signature=J2SqwPecAAF6I3RmejL9ZttBxh~fUuXc3VaXTaK8XF5BHs-Bpc~wX6WRwc6gG1FQLNsZZjdvkcEytuegvJyC5YtxGPtzBN-vhgIiX7XSWF3FKM7NEhj7I7zXAnBSRnIqaSLrjp1edR8dg34HFoBq73qAjx5IxEv7N4Ws50WrmNVgw6P~V0Jaq~pvSoH2VK0FAwt3YL58PBi9Dz6SJsGzHARudcLhPjfBUna3HupJm1Sb8A103ktUSuGn1833TCHenh~wH9WkronWs8lAOa2WEa49mEkME8v14QA9J2jtOgmVa67LgdZD6~-JYiigMJViVXlQ4gC68fnrAkZjf0bs-Q__&Key-Pair-Id=KUT5TJCACFTXG","The Minnesota Hospital Association told the Human Services Committee it strongly supports the governor’s proposal to extend access to audio‑only telehealth.

Danny Acker, director of state government relations at the association, said audio‑only telehealth “increases access to equitable care for patients with behavioral health and chronic care conditions and individuals with limited broadband access.” He added that audio‑only services help rural and urban hospitals provide care coordination that can prevent emergency visits and reduce other acute care use.

Acker urged lawmakers to preserve audio‑only telehealth statewide, describing it as a tool that “allows for capacity to remain at sustainable levels that serves patients when they need care.” No committee action was taken during the hearing; the testimony indicated hospitals support the administration’s telehealth extension.","The Minnesota Hospital Association urged the committee to preserve audio‑only telehealth, saying it improves access to behavioral and chronic care for patients with limited broadband and helps reduce acute care visits.","actionData","errors"]

Article not found

Hospitals and insurers oppose pharmacy carve‑out and higher HMO surcharge in governor’s DHS budget

Long‑term care advocates say governor’s budget underfunds nursing homes, risks reducing bed capacity

Providers warn governor’s budget cuts would deepen workforce crisis for disability waiver services

Substance use and mental health providers urge immediate rate increases after Burns & Associates study

Hospitals and health systems back extension of audio‑only telehealth in DHS budget