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
The purpose of this bill is to establish a new premium subsidy program in Minnesota, administered by MNsure, to help individuals afford health insurance in the individual market. Additionally, the bill aims to phase out the existing Minnesota Premium Security Plan, a reinsurance program.
Main Provisions
Premium Subsidy Program Establishment: Starting January 1, 2026, MNsure will administer a program that provides subsidies to eligible individuals who purchase personal health insurance plans. The subsidy amount is 20% of the gross premium.
Eligibility for Subsidies: The program targets Minnesota residents who do not receive federal premium tax credits, are not enrolled in public health programs, and who buy individual health plans. It also includes those who had to repay tax credits because their income exceeded allowable limits.
Funding and Payments: The bill provides that subsidies are paid to health carriers on behalf of eligible individuals. Health carriers then apply these payments to reduce the premium cost for individuals. Additionally, retroactive payments will be made to those who must pay back federal tax credits if their income is too high.
Repealing Current Laws: The bill repeals several sections of Minnesota's current statutes (62E.21 to 62E.25), thereby ending the Minnesota Premium Security Plan by December 31, 2025. This plan previously provided reinsurance to stabilize premiums in the individual market.
Financial Appropriation: Funds are appropriated from the general fund for fiscal year 2026 to launch and support the subsidy program. Any leftover funds can be used in 2027.
Significant Changes
- The bill terminates the current reinsurance program, replacing it with direct subsidies to individuals, thus changing the way financial aid is distributed in the health insurance market.
- It integrates new data-sharing protocols to efficiently administer the subsidy program while protecting private data.
Relevant Terms
premium subsidy, MNsure, Minnesota Premium Security Plan, reinsurance, health insurance, individual market, subsidy program, health carriers, public program enrollment, premium tax credit.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 16, 2025 | House | Floor | Action | Introduction and first reading, referred to | Commerce Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"New notification requirements for receiving federal funds."
],
"removed": [],
"summary": "This bill amends section 62E.23 subdivision 1 regarding the administration of the Minnesota premium security plan.",
"modified": [
"Clarifications on what the funds should not be used for."
]
},
"citation": "62E.23",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references section 256B.055 as it relates to the eligibility for public program coverage.",
"modified": []
},
"citation": "256B.055",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references section 256L.04 as it relates to the eligibility for public program coverage.",
"modified": []
},
"citation": "256L.04",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references section 16A.124 subdivision 3 concerning the classification of health carriers as vendors.",
"modified": []
},
"citation": "16A.124",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references section 16A.103 regarding the forecasting obligations for premium subsidies.",
"modified": []
},
"citation": "16A.103",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references section 13.02 concerning data practices and definitions.",
"modified": []
},
"citation": "13.02",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references chapter 297I in relation to calculating premiums taxes.",
"modified": []
},
"citation": "297I",
"subdivision": ""
}
]