Legislature Heads to Special Session, MMA Priorities Still in Discussions

May 22, 2025

The Minnesota Legislature did not come to an agreement on the state budget before the Constitutional deadline of May 19, so it will need a special session to complete its work. As News Now went to press, timing and how long the session will last is still up in the air.  

Legislative leaders and Gov. Tim Walz reached an agreement on the global spending numbers for each area of the budget on May 15, but left the details of how to reach the spending amounts to each separate conference committee. Those committees have been meeting since May 15, mostly behind closed doors, to finalize the deal. 

In the Health and Human Services area, one of the big sticking points is related to continued coverage of MinnesotaCare for Minnesotans without legal residency status. This coverage began on January 1, 2025, and saw nearly three-times as many people enrolled than had been projected. The agreement among leaders was to stop that coverage for adults, but continue it for children. This compromise was strongly opposed by many Democratic legislators, including Sen. Alice Mann, MD. 

Another sticking point is how to pay for continuing Minnesota’s reinsurance program that works to reduce premiums for those purchasing individual coverage. The agreement is for the program to be funded through the Health Care Access Fund for one year, then to be funded through an assessment on insurers for the next five years. The insurers will get most of the assessment back through a tax credit in the future. 

One of the MMA’s top priorities has been agreed to – the continuation of insurance coverage for audio-only telehealth services for at least two more years.  

Legislative leaders also agreed to use a new assessment on managed care organizations that was proposed by the MMA to increase Medical Assistance reimbursements to the Medicare level. There is still debate, however, on whether the increase will include all outpatient services, or just those related to mental health services. 

Also undecided is legislation that would prohibit insurers and pharmacy benefit managers (PBMs) from forcing a patient to change medications during a contract year because the insurer or PBM changes their drug formulary. 

The final MMA priority that remains undecided is a one-time allocation to support the Treat Yourself First campaign, which is designed to reduce the stigma related to mental health treatments and to encourage practitioners of all types to get care if needed.  

While discussions continue, the hope is to hold the special session before the end of May. The governor is the only person who can call a special session, but he wants to wait until all agreements are finalized, so they will only meet for one to three days to pass all of the needed bills.