Purpose

• Create a method for the Behavioral Health Fund to pay for withdrawal management debt that cannot be collected from clients.
• Extend access to behavioral health fund services.
• Add a pilot program for more options in licensing inspections for substance use disorder treatment programs.
• Allow counties to temporarily take on administrative duties related to the behavioral health fund.
• Make related changes to adolescent substance use disorder treatment funding, startup and capacity-building grants, and reporting requirements.
• Amend Minnesota statutes to implement these changes.

Main provisions

• New Subdivision 2a to 254B.03: Behavioral health fund payment for uncollectible withdrawal management debt.
  • The commissioner must develop criteria to identify uncollectible withdrawal management debt.
  • Criteria must include at least:
  • Services were provided by an eligible vendor under a current agreement with the commissioner.
  • The client was not eligible for behavioral health fund–paid substance use disorder treatment at the time.
  • The provider billed any available third-party payer; the claim was denied; the remaining balance is the client’s responsibility.
  • The provider billed the client for the remaining balance (including copayments, coinsurance, and deductibles) and made reasonable efforts to collect.
  • The remaining balance is at least 90 days past due.
  • The criteria may not require:
  • The program to enroll the client in a payment plan.
  • The program to refer the debt to a collection agency.
• Implementation timing and scope:
  • Beginning with services provided on or after July 1, 2027, the commissioner shall pay withdrawal management programs from the behavioral health fund for uncollectible debt, up to the rate determined for the services under the applicable chapter.
• Overall effect:
  • Creates a mechanism to reimburse withdrawal management programs for debts that are uncollectible under the specified conditions, aiming to reduce program losses and support continued service provision.

Significant changes to existing law

• Adds a new provision (Subd. 2a) to 254B.03 addressing how uncollectible withdrawal management debt will be handled financially through the Behavioral Health Fund.
• Establishes clear criteria to determine when debt is uncollectible.
• Prohibits certain collection-related requirements (no obligation to enroll in a payment plan or to refer debt to a collection agency) as part of the uncollectible debt determination.
• Extends the timing of payments to withdrawal management programs from the Behavioral Health Fund to cover uncollectible debt starting July 1, 2027, and ties payment amounts to the rate for these services under the statute.

Implementation and related items

• Pilot program for additional alternative licensing inspections for substance use disorder treatment programs.
• Authorization for counties to temporarily retain administrative functions related to the Behavioral Health Fund.
• Modifications to adolescent substance use disorder treatment rates.
• Revisions to funding for withdrawal management startup and capacity-building grants.
• Requirement for reporting on these changes.

Impact considerations

• For providers: A potential source of payment when clients have unpaid, uncollectible balances, reducing revenue shortfalls.
• For clients: Possible assurance that withdrawal management services can continue even if they cannot pay the full balance, though it does not eliminate the client’s responsibility for any portion that isn’t uncollectible under the new rules.
• For the system: A structured process to determine and pay for uncollectible debt, along with accompanying program and licensing provisions and reporting requirements.

Relevant Terms - Behavioral health fund - withdrawal management - uncollectible debt - eligible vendor - third-party payment source - copayments - coinsurance - deductibles - past due - payment plan - collection agency - July 1, 2027 - rate - Minnesota Statutes 2024 254B.03 - 62J.808