Medicaid Monitor
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Medicaid Monitor
Policy Intelligence
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Federal Policy·MN·June 23, 2026

New Federal Medicaid Rules Threaten Minnesota Mental Health System

New federal Medicaid regulations implementing provisions of the 2025 Congressional Budget Reconciliation Bill are set to impact Minnesota's mental health system. The regulations could affect the state's decades-long efforts to build a recovery-oriented mental health system focused on community integration and employment support. The changes appear to limit or restructure mental health coverage in ways that could disrupt existing service delivery models. Managed care organizations operating mental health programs in Minnesota will need to prepare for these changes.

Why it matters for managed care

MCOs with behavioral health carve-ins or specialty mental health contracts in Minnesota face potential network disruption, benefit redesign requirements, and changes to reimbursement structures under new federal Medicaid rules stemming from budget reconciliation legislation.

Behavioral Health · Managed Care

Read the full article at minnesotareformer.com

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