Committee lays over bill to update FQHC reimbursement timing

ST. PAUL — The Health Finance and Policy Committee on Feb. 23 considered House File 2760, a bill aimed at updating how Minnesota sets Federally Qualified Health Center reimbursement. Lawmakers agreed to lay the bill over for further drafting.

Representative Mohamud (Mahamud) said recent federal Medicaid reductions increased pressure on clinics and that shortening the cost-report look-back from three-to-four years to one-to-two years would let rates better reflect current operational costs. Becky Howard, senior director of administration at Community Health Service Inc., told the committee the change would help health centers adopt new service models (collaborative care, expanded prenatal services) without waiting several years for rate rebasing.

Dr. Ryan Kelly (an internal medicine–pediatrics physician at an FQHC) described how integrated teams and quick adjustments can prevent emergency-department use and improve whole-person care, and he urged support for the bill while acknowledging some technical language needs work. Members asked for additional drafting on timing and audit windows before the bill returns to committee.