Legislature Passes State Budget and Top MMA Priorities in One-Day Special Session

June 12, 2025

The Legislature met for a one-day special session on June 9 to approve the budget deal that leaders and Gov. Tim Walz agreed to over the weekend. Several of the MMA’s priorities were included.  

The Senate and House convened at 10 am, passed 12 budget bills, and adjourned 13 hours later. The result is passage of the balanced state budget for the next two-year period.   

One of the most controversial portions of the package was the termination of MinnesotaCare coverage for undocumented adults; coverage will continue for minors. HF 1 was the first bill heard with debate lasting more the two hours. In the end, it passed the House on a 68-65 vote with all Republicans voting for it, along with Speaker Emeritus Melissa Hortman who was required to support it under the budget agreement. Similarly, the Senate passed it on a 37-30 vote with all Republicans and three Democrats supporting. 

The House then passed the 488-page HF 2, the health and human services budget bill, which included a number of MMA priorities. Passage of this budget bill includes a new law that prohibits the ability of insurers and pharmacy benefit managers (PBMs) to force patients to change medications during the patient’s contract year. Mid-year formulary changes result in barriers for patients to get the medications that they need simply because the insurer or PBM has a financial incentive to remove a drug from the formulary. This has been an MMA legislative priority for more than five years. 

Another MMA priority that was partially included is an increase in Medical Assistance (MA) reimbursements to 100% of the Medicare level. The MMA promoted increasing all outpatient reimbursements to the Medicare level. However, this bill morphed and now only includes an increase to MA reimbursements for mental health services. This increase is paid for through a new assessment on managed care organizations that draws from federal funding. 

HF 2 also continues coverage of audio-only telehealth services for two more years, another MMA priority. Without action, this coverage would have sunset on July 1, 2025. The bill continues coverage until July 1, 2027. 

The bill also provides a one-time appropriation of $250,000 to the MMA to fund the implementation of the Treat Yourself First campaign. This campaign is designed to encourage physicians, nurses, pharmacists, optometrists, chiropractors, and other practitioners to get mental health care if they need it.   

Other key items in HF 2 include: 

  • An increase in MA inpatient reimbursements paid for through a new assessment on hospitals that provides nearly $1 billion of new federal funds. 

  • The creation of a new licensing pathway for international medical graduates (IMGs) who have not graduated from an accredited residency program. The new pathway requires a two-year limited license that requires the IMG to practice under the supervision of a licensed physician in a rural or underserved area. 

  • The creation of a new 15-person spoken language healthcare interpreter workgroup to develop recommendations to support and improve access to interpreting services. 

  • It expands the scope of practice for optometrists to allow more prescribing authority and to provide limited injections. 

  • It prohibits the performance of a “sensitive examination” of a patient, unless the patient has provided written consent for the examination. Sensitive examination is defined as a pelvic, breast, or rectal examination. 

  • It provides authority to a patient to execute a “non-opioid directive,” which allows patients the ability to provide instructions to caregivers for them not to receive opioids. It allows exemptions for emergency circumstances if the practitioner does not have access to the patient’s medical record, or if in the prescribers’ professional opinion, it is necessary to administer an opioid to treat the patient. 

  • It creates a new licensure for certified midwives. These professionals have the same education curriculum as nurse midwives, but are not required to be registered nurses. 

HF 2 is now awaiting Walz’s signature. 

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