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Lawsuit restores $85 million in federal health care funding for MinnesotaCare

8/29/2018 10:49:58 AM

Contact:
For media inquiries only
Jeanine Nistler
Communications
651-431-4395
Jeanine.Nistler@state.mn.us
 
Minnesota will receive an estimated $85 million in additional funding for MinnesotaCare in 2018 as a result of a lawsuit filed against the federal government. MinnesotaCare, Minnesota’s basic health program, was expanded under the Affordable Care Act to provide insurance to people whose incomes are just above requirements for Medicaid eligibility.
 
“Last fall, without analysis or justification, the federal government cut funding for MinnesotaCare, eliminating cost-sharing related payments,” said Human Services Commissioner Emily Piper. “I am pleased today they acknowledge Minnesota is entitled to return of some of that funding. We are assessing whether this sufficiently addresses our concerns raised in the lawsuit.” 
 
Minnesota and New York filed the lawsuit after the Centers for Medicare & Medicaid Services (CMS) reduced payments to basic health plans. The reduction was related to President Trump’s decision to eliminate cost-sharing subsides for insurance purchased in the individual market. 
 
After the lawsuit was filed, CMS consulted with Minnesota and New York on a new formula for basic health plans. The revised payment rate returns approximately 72 percent of the federal funding that was taken away in December 2017. It is not yet clear whether CMS will make similar adjustments for 2019. 
 
MinnesotaCare provides insurance for 89,000 low-income, working Minnesotans.
 
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