ST. PAUL, Minn. — On Wednesday, February 26, the Minnesota Senate Health and Human Services Committee heard Senate File 1402, authored by Senator Melissa H. Wiklund (DFL – Bloomington). This bill aims to build and protect Minnesota’s physical and mental health care capacity by addressing low reimbursement rates in Medicaid outpatient services. Using the 2024 Department of Human Services outpatient rate study, this bill proposes staggered rate increases over the next three years, ultimately reaching 100% of Medicare or similar for all services covered in the bill.
“This bill is foundational in our mission to meet the needs of Minnesotans, especially our children who are at the forefront of a mental health crisis,” said Senator Wiklund. “Too many children and families are waiting weeks, months, and sometimes years to access this vital health care. By using a fiscally responsible, innovative approach, we can move our state forward into a health care system that meets the needs of Minnesota families and supports our medical care providers.”
Increasingly in Minnesota, children experiencing an array of mental health challenges are boarding in hospitals, juvenile detention facilities, or with county services because of a lack of access to early intervention or intensive community-based care.
Meanwhile, the cost of providing care is increasing, and reimbursement rates have stagnated. In many cases, mental health and other outpatient medical services are provided at a rate woefully under actual cost. Providers across the state are shrinking or closing services. And many more operate on slim margins and struggle to maintain current service levels and staffing at existing rates.
Minnesota has not done enough to access federal funds to support our public programs. This proposal gives us the opportunity to change that.
The bill is supported by the Minnesota Chapter of the American Academy of Pediatrics, Children’s Minnesota, and many mental health care providers across the state. Many letters of support can be found here.
The bill was referred to the Senate Taxes Committee. You can view the entire bill presentation here.
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