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The Star Tribune Editorial Board argues against cutting reimbursement to Minnesota’s mental health providers, especially given the reduction in children’s residential treatment facilities and increased need for services. The board points out that lawmakers previously passed a policy that sunsets critical access payments for mental health clinics and providers in 2025, which will significantly decrease funding. The board calls for Minnesota lawmakers to delay or eliminate the sunset, or find other solutions, while considering additional emergency relief for mental health providers.
Minnesota’s Mental Health Care Crisis Worsened by Funding Cuts
Minnesota’s mental health providers are in a precarious situation as potentially disastrous reimbursement cuts loom. The problem is particularly sensitive now due to a decrease in licensed beds in children’s residential treatment facilities in the state, which has reduced from 2,474 to 1,586 from 2005 to 2023, according to AspireMN.
Dr. Gigi Chawla, vice president and chief of general pediatrics at Children’s Minnesota, highlighted the harsh impacts of these declining resources. In 2023, children in the state spent a collective total of over 1,600 days in hospitals waiting for the right mental health treatment setting.
Adult mental health providers, like North Memorial Health, are also grappling with resource constraints. North Memorial Health recently announced its decision to discontinue outpatient mental health services at its Robbinsdale medical center in August.
Without immediate action from Minnesota lawmakers, last year’s misguided reimbursement cut will exacerbate the situation, reducing care options for those suffering from mental illnesses. The cut, which goes into effect on January 1, 2025, totals more than $25 million over three years, according to the Minnesota Mental Health Legislative Network.
Low reimbursement rates for patients enrolled in Medicaid, especially those dealing with mental health issues, have always been a concern in Minnesota. KFF, a noted health policy organization, reports that “nearly 40% of the nonelderly adult Medicaid population had a mental health or substance use disorder in 2020.”
With Minnesota’s Medicaid enrollment at 1.4 million according to KFF estimates, the effects of the cut will be widespread. This puts pressure on state lawmakers to reconsider the impending critical access funding sunset.
Minnesota Hospital Association (MHA) asserts that a lack of community-based mental health treatment puts strains on the entire state health care system. The caregivers are already stretched thin and face long wait times, boarding crises in emergency rooms, and increased risks.
In 2023, lawmakers did pass a 3% rate boost for mental health providers. However, it falls short of covering the discrepancy between care costs and reimbursement.
A recent report reiterated that state reimbursement rates have not kept pace with inflation and do not cover care costs. If rate adjustment recommendations from the study were implemented, the state would face costs of about $820 million over three years.
Until broader rate reform is possible, it’s crucial to refrain from further cuts to mental health care rates. Lawmakers should at least delay or eliminate the 2023 sunset and consider emergency relief for mental health providers.
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