Study proposes reimbursement rate fix for Minnesota’s broken mental health system

The state of Minnesota is facing a crisis in mental health care, with people in crisis being stuck in hospital emergency rooms, children waiting months for therapy, and treatment centers losing staff due to underpayment and burnout. The state’s reimbursement rates are not enough to cover the cost of care, resulting in a failing system that cannot meet the increasing demand. A long-awaited state study has revealed that reimbursement rates are not aligned with the actual cost of care, proposing a plan to adjust the rates to reflect reality. However, limited budget capacity may hinder the state’s ability to implement these changes.

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