Lowering Health Insurance for Low-Income Families Act

 

The purpose of this bill is to reduce the cost of Health insurance for families below a $55,000 income threshold by 35%.

 

The poverty rate for families in Minnesota is 5.4% as of 2023, this means over hundreds of families in Minnesota are

living multiple days without access to basic necessities. Things like food, water, education, and healthcare are harder

to access for those families. Between 2018-2020, nearly 1.7 million people in Minnesota were low-income, 20% of the

total population of Minnesota, 5,000,000 in 2020. This act addresses the gap in affordable healthcare access for

families who do not qualify for Medicaid but still face financial barriers to obtaining insurance.

 

Health insurance: A type of insurance coverage that helps pay for medical expenses, such as doctor's visits, hospital

stays, and prescription drugs.

Threshold: A predetermined level or point that, when reached, triggers a specific action, policy change, or financial

event.

Healthcare: The organized provision of medical care to individuals or a community.

Poverty: A complex condition where individuals or communities lack the basic resources to meet their essential needs.

Medicaid: A joint federal and state program in the United States that provides low-cost or free health coverage to

eligible low-income individuals, families, pregnant women, the elderly, and people with disabilities.

Subsidize: To provide financial assistance to reduce the cost of something.

Fiscal: Relating to government revenue, especially taxes.

Eligible: Having the right to do or obtain something; satisfying the appropriate conditions

 

Funding for this act will come through Minnesota’s Medicaid program (Medical Assistance) by redirecting existing funds

to help subsidize insurance programs for families earning under a total of $55,000. This money will be paired with

federal Medicaid matching funds to reduce the overall state spending required, ensuring the program stays affordable

while expanding access to reduced-priced healthcare for low-income families.

 

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This bill’s effective date will be July 1st, 2026.