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Equity measures highlighted in human services’ portion of governor’s budget

Department of Human Services officials began their presentation on Gov. Tim Walz’s 2020-21 biennial budget before the House Health and Human Services Finance Committee Thursday.

The budget calls for $274 million in Fiscal Years 2020 and 2021 to support provisions intended to improve access to services and reduce disparities.

The budget, which represents a 0.68 percent increase from the base, is “not just a fiscal document,” but also “a moral document,” Commissioner Tony Lourey said.

“We at DHS are proud to be a part of making this happen,” he said

The budget would spend:

  • $58.6 million for children and families;
  • $45 million for long-term services and supports;
  • $42.1 million for child care investments and integrity measures;
  • $33.5 million for behavioral health;
  • $20 million for systems modernization;
  • $11.2 million for direct care and treatment;
  • $7.9 million for vulnerable adults;
  • $4 million to ONECare;
  • $936,000 for program integrity; and
  • $815,000 for federal compliance and technical changes.

ONECare MN would create a comprehensive health coverage option available in the individual market as a platinum-level “Buy-in” product starting in 2023. It would also give access to silver- and gold-level products for regions without affordable and comprehensive health care options offered by the market, Lourey said.

The budget would dedicate $3.4 million for this program in the upcoming biennium, along with an additional $575,000 for a pharmacy coverage component and $55,000 for a dental benefits provision, according to the presentation.

ONECare MN is slated to cost $142.5 million in the 2022-23 biennium, with an additional $11 million for pharmacy and $13.3 million for dental.

After an initial start-up period, ONECare MN is expected to “pay for itself,” Lourey said.

The budget also calls for the repeal of a sunset on the 2 percent “provider tax” that impacts hospitals, ambulatory surgical centers, health care providers, and wholesale drug distributors to ensure “long-term funding” for Medicaid and MinnesotaCare, Lourey said.

Other budget provisions discussed Thursday include:

  • $43.1 million to increase the cash grant by $100 per month for households on the Minnesota Family Investment Program and Diversionary Work Program;
  • $26.4 million to the Child Care Assistance Program to serve 1,000 families on the waitlist for Basic Sliding Fee Child Care;
  • $9.4 million to expand school-linked mental health services to serve an additional 7,000 students;
  • $9 million to fund culturally appropriate intervention services for families and to expand the American Indian Child Welfare Initiative to include the Red Lake Nation and the Mille Lacs Band of Ojibwe;
  • $6.1 million to create a regional Child Welfare Training Academy for child welfare workers and conduct a one-time study of caseloads; and
  • $2.4 million to expand the Transition to Community initiative and increase the program’s capacity to support seniors.

 


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