HF2506

Purpose of the Bill

This bill aims to establish a new premium subsidy program to assist Minnesota residents in paying for healthcare coverage in the individual insurance market. It also looks to phase out the existing state-based reinsurance program, known as the Minnesota premium security plan, and make necessary appropriations for the new subsidy program.

Main Provisions

• Premium Subsidy Program: Starting January 1, 2026, this program will be managed by MNsure, Minnesota's health insurance marketplace. It will provide financial support to eligible individuals who purchase health plans in the individual market.

• Eligibility Criteria: The program targets Minnesota residents who do not receive an advance premium tax credit and are not enrolled in public programs like Medicaid. It includes those who must repay any advance tax credit because of later income adjustments.

• Subsidy Details: The subsidy will cover 20% of the monthly gross premium for individual health plans, impacting coverage for the eligible individual and their family.

• Administration and Payments: Health carriers will receive payments on behalf of eligible individuals from MNsure. Carriers must submit proper documentation to receive payments.

• Data Sharing: The board will handle data related to enrollment and subsidies to verify eligibility and administer the program, adhering to privacy laws.

Significant Changes to Existing Law

• End of Minnesota Premium Security Plan: The bill repeals sections of the Minnesota Statutes related to this reinsurance program. It sets December 31, 2025, as the cut-off for claims under this program.

• New Funding and Rules: Appropriates funds from the general fund for the new subsidy program, with remaining funds rolling over to the next fiscal year.

Relevant Terms

premium subsidy program, MNsure, Minnesota premium security plan, reinsurance, health insurance premium, individual market, eligible individual, gross premium, net premium, Medicaid, advance premium tax credit, appropriations, data sharing.