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HF2506 (Legislative Session 94 (2025-2026))

Premium subsidy program administered by MNsure established, sunset for Minnesota premium security plan provided, and money appropriated.

Related bill: SF1024

AI Generated Summary

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.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025HouseFloorActionIntroduction and first reading, referred toCommerce Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new requirement for the association to notify health carriers of reinsurance payments by June 30 of the year following the applicable benefit year."
      ],
      "removed": [],
      "summary": "This bill involves amendments to the administration of the Minnesota premium security plan under section 62E.23.",
      "modified": [
        "Clarifications on the disbursement of reinsurance payments."
      ]
    },
    "citation": "62E.23"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References to exclusions from eligibility for the premium subsidy program for individuals enrolled in public program coverage under section 256B.055.",
      "modified": []
    },
    "citation": "256B.055"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References to exclusions from eligibility for the premium subsidy program for individuals enrolled in public program coverage under section 256L.04.",
      "modified": []
    },
    "citation": "256L.04"
  }
]

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