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Substance use and mental health providers urge immediate rate increases after Burns & Associates study
Summary
Treatment providers told the committee the governor’s budget omitted recommended rate increases for mental health and substance use disorder services; a recent rate study identified large shortfalls—an average 68% increase across codes and a 171% gap for one residential rate.
Substance use and mental health provider representatives urged the Human Services Committee to fund recommended rate increases identified in a recent Burns & Associates study.
Brian Zervis, executive director of the Minnesota Association of Resources for Recovery in Chemical Health (MARRC), said the study identified nine distinct substance use disorder reimbursement rates, eight of which “were identified as needing an increase.” He said averaging the recommended increases across the nine codes yields a 68% increase needed to cover the cost of delivering care.
Zervis highlighted one rate—low‑intensity residential (ASAM 3.1)—where current reimbursement of about $79 per day “is identified as needing a 171% increase.” He said failing to implement the study’s recommendations “perpetuates strain and stress on programs, on their staff, and providers,” and noted a projected state surplus of $355,000,000 by fiscal 2029 as a possible resource for investment.
Providers urged the committee to prioritize funding to implement the rate recommendations and said that higher rates would improve sustainability, staffing and patient access. No formal committee action was taken; Zervis said he would return with further proposals.
