SF 1402 Minnesota Senate · 2025-2026 Regular Session

Medical assistance rate adjustments establishment for physician and professional services

SF 1402 establishes new rate adjustments for physician and professional services under Minnesota's medical assistance program (Medicaid). It increases reimbursement rates for certain residential services and requires a statewide standard reimbursement rate for behavioral health home services. The bill modifies multiple statutes (including 256.969 and 256B.0757) to adjust hospital payment methodologies while maintaining budget neutrality - ensuring total payments to providers remain stable. These changes directly affect hospitals, physicians, and behavioral health providers serving Medicaid patients across Minnesota.

Issues: ✓ Healthcare

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 13, 2025 Last action Apr 2, 2025

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What changed between versions

Introduction → 1st Engrossment · 6 edits · Mar 3, 2025

MODERATE

This bill was updated from its initial introduction to its first engrossment version, incorporating significant new provisions to fund medical assistance. The primary addition is a new assessment on health plan companies, which will generate nonfederal funds to supplement state medical assistance payments from 2026 to 2030. The bill also expanded its scope by adding new chapters to the statutes it amends and updated the repealer section to reflect the new statutory language.

Scope change

The bill's scope expanded to include a new assessment mechanism on health plan companies and added references to Chapter 295 in the list of amended statutes.

FISCAL

Introduced a new annual assessment on health plan companies for calendar years 2026 through 2029 to raise nonfederal funds for medical assistance, with rates varying based on the number of enrollees.

REQUIREMENT

Added requirements for the commissioner to seek federal waivers and approval to ensure the new assessment qualifies for federal financial participation.

SCOPE

Updated the bill's title and summary to reflect the new assessment provision and added Chapter 295 to the list of amended statutes.

TECHNICAL

Changed the document header from 'Introduction' to '1st Engrossment' and updated the posting date from February 28, 2025, to July 9, 2025.

Updated the repealer section to reference the new statutory section number (295.525) and changed the appendix notation to reflect the new bill version.

DEFINITION

Defined key terms such as 'base year,' 'enrollee,' 'health plan company,' and 'medical assistance enrollee' to clarify the application of the new assessment.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 2, 2025

Committee

Comm report: No recommendation, re-referred to Health and Human Services

upper

Mar 3, 2025

Upper · Passed

Comm report: To pass as amended and re-refer to Taxes

upper

Feb 13, 2025

Committee

Referred to Health and Human Services

upper

Feb 13, 2025

Introduced

Introduction and first reading

upper

1 primary · 3 co-sponsors