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HF4355 (Legislative Session 94 (2025-2026))

Reimbursement rates for high-intensity residential substance use disorder services modified.

Related bill: SF4506

AI Generated Summary

Purpose

This bill changes how the state pays for certain substance use disorder (SUD) treatment services. It sets specific base payment rates for different types of residential and support services and updates how much providers will be reimbursed starting in 2026 and 2027.

Main Provisions

  • Amends Minnesota Statutes 254B.0509 subdivision 1 to define base payment rates for SUD treatment services.
  • Effective January 1, 2026:
    • Low-intensity residential services: base rate set at 100% of the modeled rate from the final report required by Laws 2021 First Special Session chapter 7 article 17 section 18.
    • High-intensity residential services: base rate set at 83% of the modeled rate from the same final report.
    • Treatment coordination services: base rate set at 100% of the modeled rate from the final report.
  • Effective January 1, 2027:
    • For high-intensity residential services provided by adolescent treatment programs (as described in section 254B.0505 subdivision 1 clause 9), the base rate will be equal to 130% of the base rate for high-intensity services described above (i.e., 130% of the adult high-intensity base rate), after any adjustments made under subdivision 2.
  • The rates are tied to the modeled rates in the specified 2021 final report and apply to services under section 254B.0505 subdivision 1.

Effective Dates and Scope

  • January 1, 2026: Implement 100% of modeled rate for low-intensity residential, 83% of modeled rate for high-intensity residential, and 100% of modeled rate for treatment coordination.
  • January 1, 2027: For adolescent high-intensity residential services (clause 9), set at 130% of the base high-intensity rate, subject to adjustments under subdivision 2.

Significance and Changes to Law

  • Creates a defined, rate-based payment framework for three service categories (low-intensity residential, high-intensity residential, and treatment coordination) using rates derived from a prior modeling study.
  • Establishes a higher pay level for adolescent high-intensity residential services starting in 2027, improving reimbursement relative to the adult high-intensity base rate.
  • Part of a broader update to how Minnesota reimburses SUD treatment services under the referenced statutes and reports.

Notes

  • The changes rely on the modeled rates from the final report required by Laws 2021 First Special Session chapter 7 article 17 section 18.
  • The 2027 adolescent rate is contingent on adjustments described in subdivision 2.

Relevant Terms - base payment rates - low-intensity residential services - high-intensity residential services - treatment coordination services - modeled rate - final report (Laws 2021 First Special Session chapter 7 article 17 section 18) - adolescent treatment programs - section 254B.0505 subdivision 1 - clause 9 - January 1, 2026 - January 1, 2027 - subdivision 2 - 83 percent - 100 percent - 130 percent

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2026HouseActionIntroduction and first reading, referred toHuman Services Finance and Policy
March 18, 2026HouseActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Base payment rate for low-intensity residential services set at 100 percent of the modeled rate described in the final report required by Laws 2021 First Special Session chapter 7 article 17 section 18.",
        "Base payment rate for high-intensity residential services set at 83 percent of the modeled rate described in the final report.",
        "Base payment rate for treatment coordination services set at 100 percent of the modeled rate described in the final report.",
        "For services provided on or after January 1, 2027, the base rate for high-intensity services provided by adolescent treatment programs (254B.0505, subd. 1, clause 9) shall equal 130 percent of the base rate for high-intensity services, after adjustments under subdivision 2."
      ],
      "removed": [
        "Previous language establishing base rates in 254B.0509, subdivision 1 is replaced by the new schedule."
      ],
      "summary": "The bill amends Minnesota Statutes 2025 Supplement section 254B.0509, subdivision 1 to establish base payment rates for substance use disorder treatment services and to set future rates for adolescent high-intensity services. Rates apply to services described in section 254B.0505, subdivision 1, with 2026 effective dates and a 2027 adjustment for adolescent programs.",
      "modified": [
        "The calculation of base rates is tied to the modeled rate in the final report described in Laws 2021 First Special Session chapter 7 article 17 section 18.",
        "Adds a 2027 rate for adolescent high-intensity services (clause 9) at 130 percent of the base rate after adjustments."
      ]
    },
    "citation": "254B.0509",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Reference to 254B.0505, subdivision 1, clause 9 to determine the high-intensity adolescent program rate (130% of base) after adjustments under subdivision 2."
      ],
      "removed": [],
      "summary": "The bill uses 254B.0505, subdivision 1, clause 9 as the reference point for the adolescent high-intensity base rate; it does not amend 254B.0505 itself but relies on clause 9 to establish the 130 percent target for high-intensity services under the 254B.0509 framework.",
      "modified": [
        "No direct modification to 254B.0505; the bill directs the rate computation via clause 9 for adolescent programs."
      ]
    },
    "citation": "254B.0505",
    "subdivision": "subdivision 1, clause 9"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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