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Providers warn of closures as Senate committee considers substance use disorder rate and program changes; several bills advanced or laid over
Summary
Treatment providers told the Senate Human Services Committee that Minnesota's Medicaid rates for substance use disorder services fall short of costs and that rural programs are closing; the committee laid over a major SUD rate bill and referred related measures to other committees after adopting an amendment to one bill.
Substance use disorder treatment providers urged the Minnesota Senate Human Services Committee on Wednesday to adopt higher Medicaid reimbursement rates and statutory clarifications to avoid further program closures, and the committee both advanced and held bills for further work.
Witnesses said cost‑based studies show statewide reimbursements lag far behind operating costs. "Minnesota's rates were over 58% below what was required for sustainability of services," said Dr. Lou Zeidner, chief executive officer of Eiosis (formerly Meridian Behavioral Health), citing the Burns & Associates analysis. Roy John Sutherland, vice president of addiction services at Nystrom & Associates, told the committee 47 programs have closed statewide in the past three years and urged…
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