House Health Approves MnCARE Public Option/Single Payor Study Bills

The House Health Finance and Policy Committee on Tuesday heard two bills that have big implications for the private health insurance marketplace:

HF96 (Long, DFL-Minneapolis) establishes the MinnesotaCare public option for persons with incomes over the MinnesotaCare income limit of 200 percent of the federal poverty guidelines (FPG). Implementation of the public option would be effective January 1, 2026, but only if the Commissioner of Human Services certifies to the Legislature it will not result in the loss of federal basic health program funding. The bill also makes other changes to MinnesotaCare, including requiring a study of a small employer public option and providing eligibility for undocumented noncitizens.  The bill was supported by advocacy and labor organizations and opposed by the Agents Coalition, the Chamber of Commerce and the Minnesota Hospital Association.  The Agents Coalition represents multiple insurance associations, including NAIFA. Testifying for the Coalition, Shawnee Christensen said that the bill would result in low payments to providers, allow the state plan to compete with the private market with no reserve requirements or having to meet current licensing and regulatory requirements placed on private insurers.  The bill was laid over for possible inclusion in the omnibus health finance bill. This means it will be included in the larger health finance bill that funds much of DHS,  a bill all but guaranteed to pass.

February Budget Forecast to be Released on Monday

Big Picture Issues

Walz Releases Budget

Walz Set to Release Budget
Governor Tim Walz will release his budget proposal on Tuesday, a plan expected to call for record spending as well as major policy initiatives. The State’s record $17.6 billion budget surplus will allow the Governor to make significant spending increases. Walz began rolling out pieces of the budget this week. On Tuesday Walz proposed spending $5.2 billion on schools, including more money for special education, mental health and free breakfast and lunch for all students. He also wants to expand Minnesota’s child and dependent care tax credit to help about 100,000 families with day care costs. Families earning less than $200,000 could get up to $4,000 for one child, $8,000 for two children and $10,500 if they have three kids. Walz also wants to create a new Department of Children, Youth and Families from portions of the Education, Human Services and Corrections Departments. His office said he is also thinking of dividing the Department of Human Services into three separate agencies. On Thursday Walz announced plans to spend $4.1 billion on economic development, job training, family medical leave and tax breaks for small businesses. His health care budget ideas are expected to be released on Monday        

Big Picture Issues                 

Quote of the Week: "I would expect this would be the fastest start anyone can remember for bills moving through the Minnesota legislature. …It will be a very busy January!” House Speaker Melissa Hortman commenting on the start of the 2023 session.

Here in Minnesota, a multi-million dollar cash advantage combined with a more sophisticated data and get-out-the-vote system and a strong pro-choice message created a blue wave that gave the DFL control of the Governor’s office, the Senate and the House for the first time since 2014.  This means the DFL can set and pass an agenda without having to compromise with Republicans.  The fights in St. Paul will now be between a progressive Senate and House and a liberal Governor to their Right. 

Deal Reached to Resolve Budget Stalemate

17 Days to Go With Low Expectations