House Passes MinnesotaCare Public Option

Saint Paul, Minn. – Last night, the Minnesota House passed a MinnesotaCare Public Option proposal (HF2930) in the health omnibus budget bill that expands access to affordable health coverage. The bill would allow more residents the option of buying into MinnesotaCare, paying a premium based on their income – including all Minnesotans without status. A broad coalition of labor, rural, immigrant, arts and advocacy groups thanked lawmakers for passing the public option bill, and urged the Minnesota Senate to adopt the House language on immigrant inclusion.

The MinnesotaCare Public Option bill expands eligibility to Minnesotans enrolled in the individual health insurance market who earn more than the current MinnesotaCare income limit, which is 200% of the federal poverty line or $55,000 per year for a family of four. The MinnesotaCare Public Option immigrant inclusion provision would end the ban on eligibility for undocumented immigrants, allowing them to enroll in MinnesotaCare and contribute to their coverage at the same affordable premiums paid by other Minnesotans at their income level.

“An estimated 51,000 Minnesotans without status are uninsured, which is a moral failing that compromises health and raises costs for all of us,” said Robert Haider, legislative director of TakeAction Minnesota. “Thank you to the Minnesota House for passing a MinnesotaCare Public Option that doesn’t leave anyone behind.”

Dozens of community, faith, health, farmer and immigrant organizations including the Minnesota Medical Association, health plans, and hospitals support the MinnesotaCare immigrant inclusion policy. Coalition partners urged lawmakers to adopt the House MinnesotaCare language during conference committee. If adopted, Minnesota would join the District of Columbia, Illinois, New York, Oregon, and California in providing health coverage to individuals regardless of immigration status. The Senate version (SF2995) only allows children without status to access MinnesotaCare, which would leave behind thousands of Minnesotans without status who are frontline workers.

Approximately 300,000 Minnesotans are uninsured, and a disproportionate number of uninsured Minnesotans are Black, Indigenous, and/or people of color. An estimated 17% are undocumented immigrants. The MinnesotaCare Public Option proposal would reduce the number of uninsured Minnesotans and provide an affordable option to individuals and families on the individual market, who can often face high healthcare costs including deductibles from $7,000 to $20,000, along with premiums and out-of-pocket costs. These high costs are particularly burdensome to people whose incomes vary year to year, including farmers and artists.

Minnesota’s current approach to subsidizing the individual marketplace is expensive and unsustainable. Currently, about $570 million per biennium goes to federal subsidies for 69,000 Minnesotans on the individual market through Advanced Premium Tax Credits. Over $1 billion on reinsurance has not fixed Minnesota's failing individual health insurance market or expanded coverage. Instead of continuing to spend enormous resources subsidizing a broken health insurance system, Minnesota can use our healthcare dollars toward a better quality, affordable public health insurance option.

The MinnesotaCare Public Option would be paid for with state and federal funds, premiums, and cost-sharing. Premiums will be set by state agencies to ensure affordability and prevent sudden increases in costs. If the MinnesotaCare Public Option is passed this year, agencies will begin conducting an actuarial analysis to determine how many Minnesotans are likely to enroll in the public option and determine the premium costs. Minnesota’s Department of Health Services will also start the process of applying for the federal waiver to redirect federal healthcare dollars to the public option. Learn more mncarenow.org.