MN health plan for working poor wins federal funds

The federal government has approved MinnesotaCare as the nation's first "Basic Health Plan," making it eligible for continuing funding under the Affordable Care Act.

MinnesotaCare provides care for people who do not qualify for Medicaid but can't afford the out-of-pocket costs related to private health plans, even with tax credits.

Lucinda Jesson, Minnesota's commissioner of human services, said some of the federal dollars allocated for insurance subsidies will now help pay for MinnesotaCare. She said the federal money will help assure MinnesotaCare's future.

"What the federal government basically says is, 'Look, states, we'll give you the opportunity to take 95 percent of what we'd otherwise pay for premiums and cost-sharing for someone who goes to the exchange, and give it to you to fund your own program for poor working adults,'" she said.

"Our MinnesotaCare program has been in existence for the last 20 years, and it's really done a lot to make sure that poor working families have health coverage, and this is a new way to fund it."

Jesson said the amount of federal money will be determined each quarter, based on MinnesotaCare enrollment.