On Monday June 9th, a bill passed the MN Legislature that would increase Medicare (MA) rates for mental health services in MN starting in 2026. While this bill does not include pay parity for Marriage and Family Services, there is still a lot to celebrate. The bill states all mental health services covered by MA in MN would be increased to match Federal Medicare rates. In addition, the current “masters-level cutback”, which reimburses masters-level clinicians at 80% of the MA rate, will be eliminated. This means masters-level clinicians will see an additional 20% rate increase for MA services!

The major caveat is that funding for these rate increases is tied to a “provider tax” on health plans (insurance companies). This funding mechanism requires federal approval, before the rate increases can take effect in MN. Unfortunately, a pending federal rule on provider taxes and the current iteration of the “One Big Beautiful Bill Act” would eliminate the funding sources needed for the MA rate increases.

MAMFT is working with our advocacy partners on options to support this rate increase at the federal level. Stay tuned for more updates, as we will need member support in contacting our federal representatives from Minnesota on this issue. If you have any questions, or want to join MAMFT’s Advocacy Committee, please contact President@mamft.net for more information.