ST. Paul, Minn. — Lawmakers worked Wednesday on a proposal that would allow all residents to purchase the state-run MinnesotaCare health plan, not just struggling low-income workers. have been.
Democratic lawmakers and Governor Tim Walz have pushed for years to expand MinnesotaCare into a low-cost “public option” for universal health insurance. Now that Democrats control both houses of the Legislature and the governor’s office, expanding the program is one of their top priorities for the 2023 session.
MinnesotaCare, established in 1992, is aimed at lower-income people who do not qualify for Medicaid and cannot afford reasonable coverage. The bill, which was first heard on Wednesday, would eliminate the current income cut of 200% of the federal poverty line.
Not a Modern Healthcare subscriber? Sign up today.
The “Public Option” is intended to help the likes of home health care worker Tavona Johnson, in Austin, whose husband was diagnosed with terminal colon cancer in 2020. She said , as a small business owner, he doesn’t have good insurance options. The hospital then asks them to be willing to pay up to $14,000 for each chemotherapy treatment if they can’t find insurance.
Johnson said at a news conference that it was eventually able to find a plan through the state-run health insurance exchange MNsure, but that the premiums were “incredibly high” to $1,300. a month, with “inconceivably high” deductibles and no prescription coverage. drugs or copays.
“We had to drain his retirement fund just to stay afloat. And we did it for a year. We have no other choice,” she said. “My husband had this life-saving treatment. I can’t just let him die.”
Her husband passed away just over a month ago.
“The money he saved and planned to use for us to retire together is gone. We have to use it to cover those medical expenses,” she said. “The money that was left for me to survive after he’s gone is gone.”
As of last July, nearly 108,000 Minnesota residents were enrolled in MinnesotaCare. The bill’s lead author, House Majority Leader Jamie Long, of Minneapolis, told reporters ahead of the hearing that he didn’t know how many more people would take advantage of the expanded option to sign up, and he There are also no figures on the amount of change. will cost the state.
The administration of former Governor Mark Dayton estimated in 2017 that removing the income cap could double enrollment in MinnesotaCare. Walz’s proposed budget for fiscal year 2024-25 includes nearly $21 million to expand the program.
Officials from business and insurance groups told the House trade committee they were concerned about the impact on struggling hospitals in rural areas, due to payments from the programs. public health insurance is often much lower than what commercial insurance plans cover and does not cover the full cost of care. . In fact, those commercial plans help subsidize patients in public plans. And those officials expressed concern that patients would move from commercial plans to MinnesotaCare, causing further imbalances in the system.
Download Modern Healthcare’s app to stay informed when there’s breaking industry news.
Representative Tim O’Driscoll, of Sartell, the top Republican on the committee, urged his colleagues to “slow this down,” adding, “we have a lot of unanswered questions.” word.”
The panel decided to vote by voice to submit the next bill among what is expected to have several committee stops.
The federal government currently collects most of the costs of MinnesotaCare. The state portion is funded by taxes on health care providers and insurance companies, plus premiums currently range from as low as $4 per month per person to $80. Free insurance for people under 21 years old. The current income limit is $29,160 for an individual or $60,000 for a family of four.
Under the proposed expansion, premiums will follow a sliding scale that the state will develop later. The state will also develop an option for businesses with less than 50 employees to participate.
The change will take effect in 2026, assuming federal government approval and eligibility will no longer depend on immigration status. During the transition, the bill would increase state subsidies for “gold” packages purchased through the MNsure exchange for 2024 and 2025.
