HF3139

Purpose of the Bill

The purpose of this bill is to establish a MinnesotaCare Plan that aligns with federal standards to provide affordable health coverage to eligible residents. It aims to enhance the MinnesotaCare program by seeking federal approval and funding adjustments through a Section 1332 waiver. Additionally, the bill proposes changes to how MinnesotaCare is administered and integrated with MNsure, Minnesota's health insurance marketplace.

Main Provisions

1. MinnesotaCare Plan Establishment:

   • The bill mandates the creation of a MinnesotaCare Plan as a qualified health plan meeting specific standards set by the commissioner of commerce.
   • Health carriers are required to offer a MinnesotaCare Plan in every county where they offer individual plans.

2. Eligibility and Coverage:

   • Individuals with incomes up to 250% of the federal poverty guidelines are eligible for the MinnesotaCare Plan.
   • Premiums and cost-sharing are structured to maintain affordability, with specific provisions for certain groups like American Indians and military families.
   • Application and eligibility determinations for MinnesotaCare Plan are to be processed through MNsure.

3. Section 1332 Waiver:

   • Minnesota will seek a federal Section 1332 waiver to receive enhanced funding equivalent to 100% of potential premium tax credits.
   • The waiver request includes measures to suspend the existing basic health program to streamline operations and funding.

4. Maintaining Benefits:

   • Current MinnesotaCare enrollees will be automatically transitioned to the new MinnesotaCare Plan without changes to their premiums, cost-sharing, or coverage benefits.

Significant Changes to Existing Law

• Amendments and Additions to Statutes:

  • The bill amends several Minnesota Statutes sections to incorporate the structured offering of the MinnesotaCare Plan and its integration into MNsure.
  • It introduces a new process for determining eligibility and enrolling individuals through an easy enrollment period managed by MNsure.

• Financial and Operational Adjustments:

  • Alters how premium assistance and cost-sharing reductions are calculated and allocated, specifying conditions where premiums are waived or adjusted based on income and demographics.

• Suspension of the Basic Health Program:

  • Temporarily suspends the state's basic health program pending federal waiver approval, maintaining a trust fund for its continued use.

Relevant Terms

• MinnesotaCare Plan
• Section 1332 waiver
• MNsure
• Premium Tax Credits
• Cost-sharing reductions
• Basic Health Program (BHP)
• Affordable Care Act (ACA)