Minnesota DHS rolls out eligibility tool ahead of federal Medicaid work requirement changes
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Minnesotans between the ages of 21 and 64 who apply for Medicaid will need to demonstrate that they have been working, attending school or volunteering for at least 80 hours each month to qualify for or retain health insurance under the joint federal-state program.
This requirement comes after President Donald Trump signed a sweeping tax and spending bill into law last July. State Medicaid programs must update their existing rules to comply with the new requirements set by the U.S. Centers for Medicare & Medicaid Services.
The new work rules will take effect on Jan. 1, 2027. This change is expected to result in an increase in uninsured individuals in the state.
To assist residents, the Minnesota Department of Human Services has launched a new tool available until Aug. 31. It is designed to help individuals navigate the upcoming federal Medicaid work requirements.
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The state has technical resources to support the tool only until the end of August and is exploring additional options.
While Medicaid enrollees can still report exemptions and qualifying activities after Aug. 31, they may need to call or visit their county, tribe or the Minnesota Department of Human Services for guidance.
Medicaid, known as Medical Assistance in Minnesota, provides health coverage for 1.2 million residents, offering affordable health insurance to more than one in five Minnesotans, including children, people with disabilities and seniors.
To qualify for Medical Assistance, individuals must still meet specific income requirements based on factors such as age, pregnancy status and family size. Enrollees do not pay a premium for coverage, nor do they share costs for comprehensive health services.
Currently, Medicaid enrollees are required to prove their eligibility at least once a year. But the new law will change this, mandating states to check recipients' eligibility every six months. Some individuals may lose their eligibility or decide to opt out of Medicaid as these changes roll out over the coming years.
Individuals enrolled in Medical Assistance can check whether they meet the federal work reporting requirements set for 2027, as well as review a list of exemptions by using the new lookup tool provided by DHS.
To prepare for their 2027 renewal, Medical Assistance enrollees can report how they plan to qualify for an exemption from work requirements or how they will fulfill a qualifying activity.
The human services department said many people may already meet the requirements or qualify for an exemption, and sharing this information will not affect current coverage.
“Insurance supports people’s overall health, and these new federal administrative barriers will make it harder for some Minnesotans to get and keep Medical Assistance,” DHS’s temporary commissioner John Connolly said in a statement. “While most Medicaid recipients already work or meet the requirements in other ways, we are encouraging people to prepare now for the challenges of more paperwork. We want all eligible Minnesotans to keep their coverage.”
Approximately 243,000 Minnesotans on Medical Assistance will be required to meet federal work requirements. A significant number of these individuals are expected to lose their health coverage, according to DHS, because they may not meet the requirements or may fail to submit the necessary paperwork demonstrating compliance every six months.
A 2023 analysis by KFF shows that most Medicaid enrollees in the U.S. are employed.
According to the Urban Institute, about 91 percent of enrollees are working, enrolled in school, searching for employment or dealing with health issues that limit their job opportunities.
Work requirements do not apply to individuals receiving Medical Assistance due to a disability, parents living with children under the age of 19, individuals who are 65 or older, those who are 20 or younger, and pregnant people.
Certain exemptions from work requirements include American Indian or Alaska Native individuals, those living in a household receiving Supplemental Nutrition Assistance Program benefits who are subject to SNAP work rules and individuals who meet the work requirements for the Minnesota Family Investment Program.
Exemptions also apply to those participating in drug or alcohol treatment and rehabilitation programs, individuals who are medically frail or living with a serious, complex, or chronic medical condition, or who are undergoing regular therapy, as well as caregivers of disabled individuals.
