Health, human services law aims to maintain services while curbing spending growth

A new law directing billions in spending supports subsidized health insurance, foster care, drinking water testing, and dozens of other initiatives designed to improve Minnesotans’ well-being.

The law’s net General Fund appropriation for the Departments of Health, Human Services and Children, Youth, and Families is $7.01 billion for the 2026-27 biennium.

Sponsored by Rep. Robert Bierman (DFL-Apple Valley) and Sen. Melissa Wiklund (DFL-Bloomington), the law takes effect July 1, 2025, unless otherwise noted.

Special Session 2025: SSHF2*/SSSF6/CH3

Social media warning

Effective July 1, 2026, social media platforms must have a mental health warning that appears each time a user accesses the platform and only disappears when the user either exits the platform or acknowledges the potential for harm and chooses to proceed.

The warning label’s text must warn the user of potential mental health impacts from using social media and provide resources to address potential mental health impacts, including the national suicide hotline number and website.

Social media platforms will be banned from allowing a user to disable the warning label, providing the warning label in only the platform’s terms and conditions and including extraneous information in the warning label that obscures its visibility or prominence. (Art. 19, Secs. 13-14)

Health care finance

To respond to projected budget shortfalls driven in part by rising health care costs, the law includes targeted adjustments to revenues and spending. Modifications to MinnesotaCare and Medical Assistance programs aim to reduce spending while maintaining or increasing payments to struggling sectors of the health care industry.

To that end, the law will:

• seek federal approval for a directed payment system, which would increase Medical Assistance payments to hospitals without affecting state spending by shifting more of the cost to the federal government;

• seek federal approval to provide an assessment on managed care organizations — expected to raise an additional $207.42 million — to help increase Medical Assistance reimbursement rates for some mental health services;

• pay certain independent pharmacies an additional $4.50 per prescription filled through the Medical Assistance program;

• establish a uniform non-emergency medical transport program for Medical Assistance and MinnesotaCare, anticipated to save $48.34 million;

• repeal permission to seek federal approval for a public option, saving $21 million;

• establish a Minnesota-specific prescription drug cost survey and contract with a single pharmacy benefits manager for the Medical Assistance and MinnesotaCare programs, which together are expected to produce net savings of $960,000 for the 2026-27 biennium; and

• establish a county-administered rural Medical Assistance program to “facilitate integration of health care, public health, and social services to address health-related social needs in rural communities.” Rural areas could see savings through longer-term contracts with services providers. (Art. 4, Sec. 8; Art. 8, Secs. 3-5, 7-8, 13-14, 18-25, 28-29, 33, 35, 41-43)

Additionally, nonprofit health care organizations will be able to access capital to finance health care facility construction projects, similar to educational institutions, with the formation of the Minnesota Health and Education Facilities Authority, which has an upper limit of $2.75 billion in bonding for health care facilities. (Art. 7, Secs. 1-31)

The law will also modify some Medical Assistance reimbursements beginning Jan. 1, 2026. This includes setting annual limits on visits to occupational and physical therapists, ending payments for chiropractic care for adults, and establishing coverage for home births and long-term ambulatory electrocardiograms.

Additionally, Medical Assistance will cover traditional health care practices starting Jan. 1, 2027, given federal approval. (Art. 8, Secs. 10-11, 12, 17, 27, 39)

Health care policies

Scores of policy provisions address how health care is provided and paid for, along with some operations overseen by the Departments of Health and Human Services.

The law will establish a dementia service program to coordinate policies and programs, share data and incorporate detection and risk-reduction strategies into Health Department programs.

Except in certain circumstances, prior consent must be given before physicians or students perform sensitive exams, such as pelvic or prostate exams.

Hot tubs at short-term rentals (such as VRBO) won’t be regulated as public pools and can be used by renters, provided warnings are posted, the water temperature is not above 106 degrees Fahrenheit, and the tub is tested before check-in.

Pediatricians will have to inform parents about the signs of abuse in infants and how to report suspected physical abuse.

Access to audio-only telehealth will be extended through June 30, 2027.

Mid-year changes to drug formularies won’t be allowed starting Jan. 1, 2026. (Art. 1, Secs. 24, 45, 47; Art. 2, Sec. 30; Art. 4, Secs. 1-2, 4; Art. 8, Secs. 1, 9)

Health Department fee increases

The law increases fees charged for a range of Health Department activities to fund its work inspecting and licensing everything from restaurants to water supplies to nuclear medicine to assisted living facilities.

The new fees will include:

• $1,600 to inspect a pool (up from $1,500);

• $325 to apply for a variance on a well (up from $275);

• $2,000 plus $125 per resident to license an assisted living facility (up from $2,000 plus $75 per resident); and

• $75 for a special event food stand license (up from $55 annually). (Art. 1, Secs. 1-23, 27-44, 46, 49-51, 57, 66-67, 76, 80-84, 87, 92-95, 98-99)

Long-term care, assisted living

The law will create a fifth level of violations at home care or assisted living facilities, with a Level 5 violation being a violation that results in serious injury or death. Fines start at level 2 at $500. Level 5 has a fine of $5,000 per violation and possible loss of license.

Additionally, the law will give some flexibility to a critical access hospital in Cook County in its use of beds for long-term care. (Art. 1, Secs. 59-65, 68-75)

Emergency medical services

The law aims to support emergency responders, especially in areas with fewer calls, where overhead costs can be overwhelming.

Among the budgeted items are:

• $16.42 million for an ambulance operating deficit program;

• $8.58 million to establish an uncompensated care payment program for rural emergency medical services;

• $2 million for a training and staffing grant program; and

• $400,000 to increase reimbursements for educational costs for attendants working at services responding to 5,000 or fewer calls per year. (Article 5)

Health commissions, committees

The law will alter, extend and create several new advisory councils, committees or boards. This includes:

• making the Newborn Hearing Screening Advisory Council permanent, effective June 15, 2025;

• creating a Maternal and Child Health Advisory Committee out of a task force;

• creating a Spoken Language Health Care Interpreter work group to improve access to critical health care interpreting services across the state. A report is due the Legislature by Nov. 1, 2026; and

• establishing a dental access working group to make recommendations to the Department of Human Services on a dental payment rate structure for Medical Assistance and MinnesotaCare. By March 1, 2027, the department must develop an implementation plan and timeline to effectuate the working group recommendations. (Art. 1, Secs. 58, 77, 96; Art. 8, Sec. 36)

Information collection, dissemination

The Health Department must collect data on epilepsy and seizure disorders, including outcomes and mortality rates to be used for a statewide coordination plan. Information without identification attached will be made public.

Explanations of insurance benefits can be transferred electronically, though people can continue to get paper copies should they choose.

Hospitals closing emergency rooms, inpatient or emergency department services, including inpatient maternity care, must schedule a public hearing to include remote participation. The hearing room must be big enough for anticipated attendance and must be scheduled so there's an opportunity for at least one hour of public input.

Health care facilities will have to report facility fees charged in 2026 to recoup costs outside physicians’ services such as building maintenance, medical record systems, administrative costs and other operational expenses.

Within funding limits, the Health Department must conduct maternal death studies. (Art. 1, Sec. 97, Art. 2, Secs. 4-5, 27; Art. 6, Sec. 3)

Accreditation, scope of practice

The law will expand the scope of practice for optometrists, allowing them to perform some procedures previously limited to ophthalmologists; establish a limited license for graduates of foreign medical schools; and establish a new certified midwife licensure process, available to those with a graduate-level degree in midwifery. (Art. 3, Secs. 1-5, 20-77, 124-125; Art. 6, Secs. 5-6)

Department of Children, Youth, and Families funding

The budget for the Department of Children, Youth, and Families includes an additional $35 million to upgrade the child welfare information technology system; $5 million for regional food banks; and $5 million for food shelf programs.

Child protection and welfare policy

Several provisions modify existing law when a relative such as a grandparent, sibling, aunt or uncle seeks to provide foster care for their relative.

The definition of a “person who is related” will include an important friend of the child or their parent.

A relative seeking to provide family foster care must be licensed, but their domestic partner does not.

A child foster care license holder who is related to the child will be required to complete a minimum of six hours of in-service training per year.

The African American Child and Family Well-Being Advisory Council will be established in the Department of Children, Youth, and Families.

The definition of "habitual truant" will be changed to mean a child who is at least 12 years old and less than 18 years old, instead of anyone under age 17. A person mandated to report school attendance will be required to immediately report if a child has at least seven unexcused absences in a current school year.

The court will be required to conduct a review during the 90-day period prior to the 18th birthday of a child in foster care, which should include a report on future plans, such as extended foster care, independent living or reunification with family.

The local welfare agency will be responsible for investigating an allegation of sexual abuse, neglect, physical abuse, or labor trafficking, including if the alleged abuse occurred in another state or country, but the child's residence is in Minnesota. (Art. 10, Secs. 1-7, 11, 14, 21, 27, 33-34, 39)

Child protection and welfare finance

The Department of Children, Youth, and Families may contract with a licensed child-placing agency or Tribal social services agency to provide permanency services for children in out-of-home care.

The law will modify the Minnesota Indian Family Preservation Act grant payment timelines and reporting requirements from quarterly to at least annually and will remove the annual cap on special focus grant awards under the program.

A scan of out-of-school and youth programming for youth under 21 years of age is required. (Art. 11, Secs. 1-4, 7)

Early care and learning policy, finance

The Diaper Bank of Minnesota will be the sole-source grant holder for the diaper distribution grant program.

The Office of Restorative Practices will be established within the Department of Children, Youth, and Families.

Effective July 1, 2026, licensed child care centers that are required to post a maltreatment investigation memorandum must have video security cameras in public and shared areas. Recordings must be kept at least 28 days. Child care centers may apply for technology grants up to $4,000 to help cover the costs of video security cameras and related training.

A legal, non-licensed family child care provider who is unrelated to the child they care for will be required to complete two hours of training in caring for children every 12 months, effective Oct. 1, 2025.

The quality parenting initiative grant program will be administered by the Department of Children, Youth, and Families instead of the Department of Human Services. (Art. 12, Sec. 1; Art. 13, Secs. 1-4, 11, 13-14)

Children, Youth, and Families licensing and certification policy

The law will define "education” to determine qualifications to work in a child care center, effective Aug. 1, 2025.

Child foster care license holders will be required to apply for and be granted a new license to operate the program or the program will be required not to be operated after the expiration date.

Effective July 1, 2026, an applicant or license holder may ask the Department of Children, Youth, and Families to provide interpretive guidance on the applicable rule or statute underlying the correction order.

The law will direct a child care program to publicly post licensing actions accompanied by a maltreatment investigation for four years.

The law makes permanent a temporary policy that allows an aide in a licensed child care center to substitute for a teacher during morning arrival and afternoon departure times if the total arrival and departure time does not exceed 25% of the center's daily hours of operation.

Substitutes and unsupervised volunteers at child care centers will be required to complete at least two hours of training each year.

A standardized timeline and standards will be required to be developed for the conduct of licensors when conducting inspections of licensed child care centers, effective July 1, 2026.

The law establishes a timeframe for county licensors to respond to requests from family child care providers and will require that county licensors use the electronic licensing inspection tool when doing an inspection of family child care programs. (Art. 14, Secs. 1-4, 8, 11, 20-21)

Behavioral Health

The definition of “child” in the Children’s Mental Health Act will include a person 18 to 21 years of age receiving continuous children’s mental health targeted case management services.

Evidence-based interventions will be added for youth and young adults at risk of developing or experiencing an early episode of bipolar disorder to children’s mental health grants.

The Department of Human Services will be required to support the Mental Health Collaboration Hub's pilot project.

A pilot project for the Lower Sioux Indian community will be established to provide mental health case management services to individuals with complex post-traumatic stress disorder. (Art. 15, Secs. 4-6, 8)

Foster care fees, adoption background studies

Fees for child foster care and adoption background studies will be set at a maximum of $44 per study. The law will add child torture to the list of crimes that permanently disqualifies an individual for licensed family foster. (Art. 16, Secs. 10, 13)

Human services program integrity

The law will allow the Department of Human Services to exchange information, including claims data, with state or federal agencies, professional boards, departments, or programs for the purpose of investigating or prosecuting a criminal, civil, or administrative proceedings related to suspected fraud or exclusion from any program administered by a state or federal agency.

The department may temporarily suspend a license if the license holder or controlling individual is the subject of a pending administrative, civil, or criminal investigation or subject to an administrative or civil action related to fraud against a program administered by a state or federal agency. (Art. 17, Secs. 3, 6)

Miscellaneous policy

The Health Department will fund distribution of opiate antagonists to Tribal colleges.

People may instruct health care providers not to administer an opioid through a prior directive. (Art. 19, Secs. 1-6)

SF0823* / HF0202 / CH3