Inflation Reduction Act extends premium relief by three years
Approximately 90,000 Minnesotans will continue to save money on MinnesotaCare premiums through the end of 2025, thanks to the federal Inflation Reduction Act signed last month by President Biden.
As part of the landmark law, MinnesotaCare premiums will remain at reduced levels for an additional three years, helping workers and families maintain their access to affordable health care. MinnesotaCare covers people who earn too much to qualify for Medicaid but not enough to purchase other health insurance.
Until January 2026, people with incomes under 160% of the federal poverty level will not have to pay premiums for MinnesotaCare. People whose incomes fall between 160% and 200% of the federal poverty level will pay reduced premiums. The lower premiums began in 2021 and had been set to end in January 2023, until the new federal legislation became law.
“MinnesotaCare premium relief makes a big difference for many families,” Human Services Commissioner Jodi Harpstead said. “Continuing the savings through 2025 results in more affordable health care coverage for Minnesotans who are facing financial struggles.”
MinnesotaCare is designed to offer affordable premiums and lower out-of-pocket costs for coverage that is typically broader than insurance options available on the individual market. The program includes dental, vision and comprehensive behavioral health services.
Because of the Affordable Care Act, higher premium tax credits result in lower MinnesotaCare premiums. In 2021 and 2022, premium tax credits were increased by the American Rescue Plan Act to improve the affordability of health coverage purchased through the federal exchange or a state health insurance exchange such as MNsure. The Inflation Reduction Act extends the enhanced premium tax credits through 2025.
Minnesotans can apply for MinnesotaCare online through MNsure, with the help of a navigator, or by working with their county. Enrollment is available year-round. Visit the DHS website at mn.gov/dhs/health-care-coverage to learn about application options and find help available in several languages.
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