Special Session Coming Soon, But Still No Date Set

June 5, 2025

After another week of closed-door negotiations on the state budget, legislative leaders and Gov. Tim Walz have been unable to reach a final deal.  

As of noon June 5, speculation is that the special session could begin June 7 and be completed by June 9, but until all of the bills are finalized and drafted, Walz refuses to set a date. 

In years past, special sessions have generally lasted one day. For that to happen, there needs to be an agreement to suspend the state Constitution and waive the requirement that bills lay over for at least three days. Suspension of the Constitution requires a three-fifths majority vote, and with the margins in both bodies so close, it is unclear whether this scenario is possible. 

The Health and Human Services (HHS) bill is just one of many that have not been finalized. It is also one of the most complex because of the many different programs it funds and their dependence on federal dollars.  

While not finalized, here are some of the key areas that the MMA believes have been decided: 

• All sides have agreed to increase Medical Assistance (MA) payments for inpatient services. This is funded through a new assessment on hospitals that is used to increase federal funds. The hospitals get the amount of the assessment back through increased MA payments. This funding model was developed by the Minnesota Hospital Association and is supported by all of Minnesota’s hospitals. 

• On the outpatient side, all sides have agreed to a new assessment on managed care organizations (MCOs) that is also used to increase federal funds, for which the MCOs will get 99% back through increased MA payments. What is still being finalized is whether those increased funds will be used to increase all outpatient payments to the Medicare level, or just used to increase payments for outpatient mental health services. While there is clearly a crisis with access to mental health services, MA payments for all outpatient services are approximately 30% less than Medicare and creates a large financial burden on clinics to participate in the MA program. 

• Other items in the HHS budget bill that have not been finalized include the MMA priority to limit insurers and pharmacy benefit managers from forcing enrollees to change medications during the enrollee’s contract year. These changes potentially harm patient outcomes and are only done for the financial benefit of the insurer. The other uncertain MMA priority is one-time funding for the MMA’s Treat Yourself First campaign, which is designed to reduce the stigma for healthcare practitioners to receive mental health help if they need it.