It is possible to achieve a healthcare system that takes care of everyone. One step towards achieving our vision of ensuring every Minnesotan has access to affordable and reliable coverage is the Public Option. The Public Option will make healthcare coverage more affordable and reliable for everyone by allowing more Minnesotans to access MNCare.
Public Option FAQ
What is MinnesotaCare? Established in 1992 with bipartisan leadership, MinnesotaCare is a public healthcare program for low-income working individuals. It is funded through state, federal, and enrollee contributions.
Why do we need a MinnesotaCare Public Option? Many Minnesotans struggle to afford health insurance coverage. On the individual market, deductibles for a family can range between $7,000 and $20,000 per year, in addition to costly monthly premiums and out-of-pocket costs. The MinnesotaCare Public Option would provide a public health insurance option to more people who currently earn too much to qualify for MinnesotaCare.
Who would be eligible for the Public Option? The MinnesotaCare Public Option would allow individuals and families earning up to 400% of the FPG to qualify for MinnesotaCare with a sliding scale premium: $60,240/year for a single person or $124,800/year for a family of four. MinnesotaCare is currently only available to those under 200% of the FPG. People who are self-employed, small business owners, artists, freelancers, farmers, people in their mid-20s aging off their parents’ insurance, older adults who do not yet qualify for Medicare, people who are uninsured, and anyone who has difficulty affording quality health insurance coverage is most likely to choose the Public Option.
What would the premiums be? The premiums for the MinnesotaCare Public Option will vary based on income. State agencies will establish premiums to ensure affordability and prevent sudden increases in cost. Unlike other insurance plans, MinnesotaCare does not differentiate premiums based on age or geography. People who are eligible for MinnesotaCare under the current income limit (200% of the FPG) will continue to pay the same premiums.
How will we pay for it? The MinnesotaCare Public Option will be funded through federal and state dollars, individual premiums, and cost-sharing. The federal government heavily subsidizes the individual insurance market, and this proposal would leverage those dollars toward a public option that provides better coverage at a lower cost to individuals.
Can we increase provider rates in the Public Option? We are advocating for the Public Option to increase reimbursement rates to 100 percent of Medicare rates.
