SF4506

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