House, Senate OK omnibus budget bill for health, children and families

— UPDATED at 6:22 p.m. with Senate vote

Curbing long-term growth in health care spending is one aspect of a $7 billion health, human services, children and family budget bill.

On a 73-58 vote, the House passed SSHF2 Monday afternoon, the Senate did the same 34-33, and the bill heads to Gov. Tim Walz.

The package includes scores of policy and budget provisions covering reimbursements to health care providers through Medical Assistance and MinnesotaCare, along with licensing fees, fraud prevention, eye exams, security at child care centers, newborn screenings, homelessness prevention, opioid education and hot tubs at vacation rentals.

Rep. Robert Bierman (DFL-Apple Valley), the bill sponsor, said it would improve access in many ways, especially for mental health care. “I would judge this the most forward movement I have seen in mental health care in Minnesota in the seven years I have been in this body.”

However, General Fund spending would decrease by $69.46 million for the 2026-27 biennium compared to the February forecast base. This would mostly come from a reduction to the Department of Human Services.

[MORE: View the spreadsheet and bill summary]

Health and human services

The bill aims to curb long-term growth in health care spending, with provisions such as creating a pharmacy benefit manager for patients on Medical Assistance and uniform administration of nonemergency medical transportation.

Additionally, the bill would increase rates paid to mental health providers. It would increase dispensing fees to certain pharmacies and financial support to some ambulance services.

Moreover, the bill aims to provide additional funding to hospitals without affecting the state budget with a directed payment program such as that used in most states.

The bill would not increase the provider tax but would increase some fees used for licenses and inspections to cover agency costs in those areas.

Among other provisions in the bill are ones that would:

• establish a dementia services program;
• report data on health care provider facility fees;
• set qualifications for central service technicians, who decontaminate medical equipment;
• expand the scope of practice for optometrists;
• lessen regulations for hot tubs in private rentals; and
• provide a smoother path for physicians’ assistants, midwives and foreign-trained physicians to practice in Minnesota.

[MORE: Legislators navigate cuts, compromises; House OKs health policy bill; omnibus budget clears House]

Children, youth and families

The children and families portion of the bill would provide funding to upgrade the technology system for child welfare and for food banks and shelves in Minnesota.

“I think it's a really great bill,” said Rep. Carlie Kotyza-Witthuhn (DFL-Eden Prairie), co-chair of the House Children and Families Finance and Policy Committee. “Of course, we all have hesitation about what we were not able to include in the bill this session. But the things that we were able to include are going to make a huge difference.”

The bill would provide $35 million for an upgrade and modernization of the Social Service Information System used for child welfare cases while also providing a $12 million investment in attacking food insecurity throughout the state with $5 million appropriated for regional food banks, $5 million for food shelf programs, $1 million for prepared meals, and another $1 million for food sovereignty programs.

“It does make improvements to our child care system to lower costs, not by a lot, but we're moving in the right direction,” said. Rep. Nolan West (R-Blaine), co-chair of the House Children and Families Finance and Policy Committee. “It moves in the right direction. The fact that we're able to at least move stuff down the line and set us up nicely for next year makes it something that I could support.”

Some policy provisions would:

• allow a child care program license holder to request interpretive guidance on a correction order;
• direct a child care program to publicly post licensing actions accompanied by a maltreatment investigation for four years;
• make the diaper distribution grant program a sole-source grant to the Diaper Bank of Minnesota;
• provide that child care centers must have video security cameras and comply with specified requirements if they are required to post a maltreatment investigation memorandum;
• provide that technology grants for child care programs cover the cost of video security cameras;
• explicitly establish the Office of the Ombudsperson for Family Child Care providers; and
• direct the Department of Children, Youth, and Families to establish and implement specified IT systems for early care and education programs, to the extent funding is available.

[MORE: Compromise sends omnibus bill to next committee stop; $2.14 billion funding bill aims to boost child welfare, early childhood programs

— Session Daily writer Todd Abeln contributed to this story.