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SF4506 (Legislative Session 94 (2025-2026))

Reimbursement rates for high-intensity residential substance use disorder services modification

Related bill: HF4355

AI Generated Summary

Purpose

  • This bill changes how the state pays for certain substance use disorder (SUD) treatment services, specifically high-intensity residential services, by updating base payment rates starting in 2026 and providing a separate rate for adolescent high-intensity programs starting in 2027.

Main Provisions

  • Amends Minnesota Statutes to adjust base payment rates for SUD treatment services (section 254B.0505, subdivision 1).
  • For services provided on or after January 1, 2026:
    • Low-intensity residential services: base rate is 100% of the modeled rate from the final report required by Laws 2021 First Special Session chapter 7 article 17 section 1.18.
    • High-intensity residential services: base rate is 83% of the modeled rate from the final report required by Laws 2021 First Special Session chapter 7 article 17 section 18.
    • Treatment coordination services: base rate is 100% of the modeled rate from the final report required by Laws 2021 First Special Session chapter 7 article 17 section 18.
  • For services provided on or after January 1, 2027:
    • The base payment rate for high-intensity residential services provided by adolescent treatment programs (under section 254B.0505 subdivision 1 clause 9) will be equal to 130% of the base rate for high-intensity services described above, after any adjustments described in subdivision 2.

Effective Dates and Implementation

  • 2026: The rates for low-intensity residential, high-intensity residential, and treatment coordination services take effect as percentages of the modeled rate from the specified final report.
  • 2027: The higher rate for adolescent high-intensity programs takes effect (130% of the base high-intensity rate, with any applicable adjustments).

Significance and Changes to Law

  • Introduces a tiered base payment structure that ties reimbursements to a previously developed modeled rate from a final report.
  • Creates a distinct, higher payment level for adolescent high-intensity residential programs starting in 2027, relative to the general high-intensity rate.
  • Changes are limited to base payment rates for SUD treatment services under the cited statute and are funded through the Minnesota Department of Human Services’ rate-setting framework.

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

Relevant Terms

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 17, 2026SenateActionIntroduction and first reading
March 17, 2026SenateActionReferred toHuman Services

Citations

 
[
  {
    "analysis": {
      "added": [
        "Low-intensity residential services base rate set at 100% of the modeled rate.",
        "High-intensity residential services base rate set at 83% of the modeled rate.",
        "Treatment coordination services base rate set at 100% of the modeled rate.",
        "For high-intensity services provided by adolescent treatment programs under §254B.0505, subd. 1, clause 9, the base rate to be 130% of the base rate starting January 1, 2027, after any adjustments under subdivision 2."
      ],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes 2025 Supplement, §254B.0509, Subd. 1 to set base payment rates for substance use disorder treatment services: low-intensity residential services at 100% of the modeled rate; high-intensity residential services at 83% of the modeled rate; and treatment coordination services at 100% of the modeled rate, with effective dates noted for 2026 and 2027.",
      "modified": [
        "Minnesota Statutes 2025 Supplement §254B.0509, subd. 1"
      ]
    },
    "citation": "254B.0509",
    "subdivision": "1"
  },
  {
    "analysis": {
      "added": [
        "130% of the base payment rate for high-intensity services under §254B.0505, subd. 1, clause 9 for adolescent treatment programs, beginning January 1, 2027."
      ],
      "removed": [],
      "summary": "This bill modifies the rate for high-intensity residential services for adolescent treatment programs by linking the rate under §254B.0505, subd. 1, clause 9 to 130% of the base rate, effective January 1, 2027, after adjustments under subdivision 2.",
      "modified": [
        "§254B.0505, subd. 1, clause 9 now establishes a rate of 130% of the base rate for adolescent high-intensity services, subject to adjustments."
      ]
    },
    "citation": "254B.0505",
    "subdivision": "1"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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