Vulnerable Minnesotans could face trouble getting rides to medical appointments next week

A group of non-emergency medical transportation (NEMT) providers notified Minnesota Department of Human Services (DHS) officials Thursday that they might not pick up Medicaid passengers as of June 1, due to sky-rocketing expenses, including gas prices, after a budget impasse at the Capitol. 

The state statute sets the rates paid to NEMT providers for Medicaid passengers who need rides to medical appointments.

“It was a very hard decision to send out that letter,” said Tarek Menesi, CFO at Driving Miss Daisy in Golden Valley, one of around 100 providers that notified the state.

Menesi said he can’t afford to pick up Medicaid riders due to rising expenses in the industry, including record fuel prices, but will now focus on picking up private insurance riders.

“It’s not a choice — the private pay pays enough to pay the bills and pay payroll,” Menesi said. “The state-funded rates are not enough.”

The provider’s letter to DHS mentioned their support of a 17% rate increase from the state senate.

Minnesota Department of Human Services Statement:

“Fewer non-emergency medical transportation providers means some people on Medicaid could have trouble getting to needed appointments. Right now, we don’t know the scope of the impact because we don’t know how many providers may plan to reduce services. We’ve reached out to providers to understand what changes they are planning and are waiting for more information. In the meantime, the department is coordinating with counties and preparing information to members who may need assistance finding a different transportation provider or exploring telehealth options when appropriate.

“Rates for non-emergency medical transportation are set in statute. The department recognizes the impact of rising fuel costs on transportation providers, but we cannot increase rates without legislative authority.”

Statement from DHS Assistant Commissioner Cynthia MacDonald

“I’m shocked at the tone of that memo, this is not a surprise,” said State Senator Jim Abeler (R-Anoka).

Testimony from the industry, Senator Abeler said, was heard in the final days of the session in committee.

“We’ve had testimony after testimony from drivers, recently and in the past, warning of the impending collapse of medical transportation service, now it’s happened, they weren’t crying wolf,” Abeler said.

The NEMT providers who notified the state hope lawmakers return in a special session to address their concerns.