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Capitol Corner October 2025

Friday, October 31, 2025   (0 Comments)
Posted by: Carrie Obry

 

Minnesota Medical Assistance – Directed Pharmacy Dispensing Payment Program Update

Earlier this month, a coalition of organizations representing Minnesota pharmacies and their patients sent a letter to Chad Hope, Director of the Minnesota Department of Human Services Pharmacy Policy & Medicaid Decision Support Division, requesting a status update on CMS approval of the state’s proposed Directed Pharmacy Dispensing Payment Program.

The coalition also copied Governor Walz, Senators Amy Klobuchar, and Representatives Angie Craig, Tom Emmer, Michelle Fischbach, Betty McCollum, Kelly Morrison, and Brad Finstad, seeking assistance in identifying why CMS has not yet acted on the proposal. The additional $4.50 dispensing fee for eligible Minnesota Medicaid prescription claims would provide pharmacies with a more sustainable business model for serving Medical Assistance (MA) patients.

Director Hope responded that DHS submitted the directed payment pre-print to CMS this past July, but has not yet received a response—possibly due to a backlog of submissions, the federal government shutdown, or other factors. He added that there is no further update at this time. The coalition remains hopeful that CMS approval will come soon, but if the program is not approved by the end of 2025, members intend to pursue an alternative pharmacy lifeline model.

The coalition will provide updates once DHS receives a response from CMS.

Minnesota Board of Pharmacy Legislative and Leadership Update

The Minnesota Board of Pharmacy recently notified licensees that its 2025 legislative session detailing statutory changes passed during the last session is now available on the Board’s Communications Page. Updates already in effect include revisions to internship requirements and the Medication Repository Program.

The Board also announced leadership changes:
  • Jill Phillips, Executive Director since 2022, retired in July after serving with the Board since 2017
  • Aaron Patterson, who had been serving as Interim Executive Director, was appointed the permanent Executive Director at the October Board meeting
In addition, the Task Force on Pharmacy Technician Duties and Scope of Practice continues its work, with completion expected by January. Michelle Aytay and Michael Waldt are co-chairing this Task Force and provided an update on its progress at the October meeting.

Federal Shutdown and Health System Impact

At an October 15 hearing of the Minnesota Senate Rules & Administration Subcommittee on Federal Impact to Minnesotans and Economic Stability, lawmakers heard testimony on the risks posed by the federal shutdown to Medicaid, MNsure, ACA marketplace subsidies, and public health funding.

Officials testified that:
  • The expiration of enhanced federal premium tax credits at the end of 2025 could raise costs for 90,000 Minnesotans by an average of $2,000 per year
  • Individual market premiums are projected to increase by 21.5% in 2026
  • Potential Medicaid eligibility changes could cause 170,000–180,000 Minnesotans to lose coverage
  • The Minnesota Hospital Association estimated an annual shortfall of $354 million in lost Medicaid payments and $269 million in additional charity-care costs if coverage declines
Legislators indicated that Minnesota may need to take state-level action during the 2026 session through measures such as reinsurance or targeted subsidies to protect health coverage and access. View the full hearing.

Minnesota Senate Special Elections

Special elections in Senate Districts 29 and 47 (Wright County and Woodbury) will be held on November 4. These races could affect control of the chamber and shape the 2026 political landscape. While both seats lean toward their current parties, the Woodbury race is expected to be competitive.

Federal Shutdown and SNAP Impact

In response to the federal shutdown, Minnesota established a $4 million emergency fund to support approximately 440,000 SNAP recipients at risk of benefit disruption. Governor Walz warned that if the shutdown persists, SNAP benefits will not be issued beginning November 1.

Earlier this month, the Senate Subcommittee on Federal Impact to Minnesotans and Economic Stability held a hearing highlighting the effects of potential federal food program cuts. Food shelves and hunger relief organizations testified that they are already operating at or near capacity and would struggle to meet rising demand if benefits lapse.

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