Governor Releases Budget Recommendations, MMA Legislative Priority Included

January 30, 2025

Gov. Tim Walz released his recommendations for the 2026-2027 state budget on January 16 and they included one of the MMA’s top legislative priorities-- continued coverage for audio-only telehealth services. 

The Senate Health and Human Services Committee received an overview of the governor’s recommendation for the Department of Human Services and the Department of Health on January 28. 

Walz’s recommendations include $19.3 million in the next fiscal year for continued coverage for audio-only telehealth services, one of the MMA’s five legislative priorities. Minnesota passed a law in 2021 that covers telehealth services for patients across the state. As part of the law, the Legislature implemented a June 30, 2025, sunset date for coverage of audio-only telehealth services while the Minnesota Department of Health (MDH) studied whether that service was meeting the needs of Minnesotans.  

The MDH study found that telehealth has increased access to services, stating “a synthesis of study results suggests the overall conclusion that, to date, telehealth has expanded access to healthcare without appearing to compromise healthcare quality or patient satisfaction.” 

Additionally, the study states that the “literature review focused on audio-only telehealth found that services delivered via audio-only telehealth can be comparable to in-person services in terms of effectiveness, health outcomes, healthcare utilization, and quality of life. While use of audio-only telehealth services is generally low, use is highest among potentially vulnerable populations (e.g., older patients, sicker patients, and patients in areas with low broadband access).” 

The MMA supports this section of the governor’s budget proposal, which removes the sunset on audio-only telehealth coverage and permanently requires payment parity between all telehealth visits and in-person visits to ensure that all Minnesotans can access high-quality care. 

The MMA was disappointed that the governor did not include a recommendation to increase Medical Assistance rates. His Department of Human Services released a report in 2024 recommending that outpatient rates be increased to at least the Medicare level. Yet, this was not included in his budget. Increasing MA rates is a top priority for the MMA.