Source: United States Senator Amy Klobuchar (D-Minn)
WASHINGTON – U.S. Senator Amy Klobuchar (D-MN) led the entire Minnesota Congressional delegation in urging the Centers for Medicare and Medicaid Services (CMS) to provide guidance on future federal funding for MinnesotaCare, the state’s Basic Health Program (BHP).
In 2016, Minnesota was one of the first states to apply for a Section 1332 State Innovation Waiver to establish a reinsurance program ensuring more Minnesotans have access to affordable, quality health care. However, the waiver request was only partially approved, a decision that led Minnesota to receive significantly less annual federal funding than expected for MinnesotaCare.
“The success of the Minnesota marketplace relies on federal resources to support the affordability of MinnesotaCare and plans purchased in the individual market through MNsure,” the lawmakers wrote in a letter to CMS Administer Chiquita Brooks-LaSure. “Without necessary federal pass-through funding for MinnesotaCare, extending the reinsurance program for Minnesota’s individual market to 2025 would cost the state $280 million in lost federal funding. In light of the significant consequences that CMS guidance could have for the thousands of Minnesotans who depend on MinnesotaCare, we urge CMS to swiftly publish guidance on the intersection between state basic health programs and reinsurance programs.”
Minnesota is currently in the midst of renewing its Section 1332 waiver, which expires at the end of this year. Last year, Klobuchar led the Minnesota delegation in calling on CMS to reconsider its decision to partially deny the state’s waiver request, and prevent Minnesota from receiving less federal funding.
In addition to Klobuchar, the letter was signed by the entire Minnesota Congressional delegation: Senator Tina Smith (D-MN), and Representatives Angie Craig (D-MN), Dean Phillips (D-MN), Betty McCollum (D-MN), Ilhan Omar (D-MN), Tom Emmer (R-MN), Pete Stauber (R-MN), and Michelle Fischbach (R-MN).
The full text of the letter is available HERE and below:
Dear Administrator Brooks-LaSure:
We write to request that the Centers for Medicare and Medicaid Services (CMS) swiftly publish guidance on the intersection of Affordable Care Act (ACA) Section 1332 State Innovation Waivers and state Basic Health Programs (BHPs). More than 166,000 Minnesotans applied for 2022 health coverage through MNsure, the state’s individual health insurance exchange. Over 32,000 of that number enrolled in MinnesotaCare, the state’s BHP, and other state Medical Assistance programs. The success of the Minnesota marketplace relies on federal resources to support the affordability of MinnesotaCare and plans purchased in the individual market through MNsure.
As you know, on September 22, 2017, the previous administration partially denied Minnesota’s Section 1332 State Innovation Waiver regarding MinnesotaCare, the state’s Basic Health Program, in part due to Minnesota’s decision to create a reinsurance program to lower premiums for consumers in the individual health insurance market. The partial denial by CMS has resulted in Minnesota receiving significantly less annual Basic Health Program funding than expected when Minnesota developed its 1332 waiver in concert with CMS in late 2016.
In correspondence to the Minnesota Departments of Human Services and Commerce dated June 21, 2021, CMS stated its intention to propose and solicit comments on potential approaches to address the intersection of 1332 waivers and Basic Health Programs. Now, nine months later, Minnesota is in the process of renewing its 1332 waiver which sunsets at the end of 2022. Without necessary federal pass-through funding for MinnesotaCare, extending the reinsurance program for Minnesota’s individual market to 2025 would cost the state $280 million in lost federal funding.
In light of the significant consequences that CMS guidance could have for the thousands of Minnesotans who depend on MinnesotaCare, we urge CMS to swiftly publish guidance on the intersection between state BHPs and reinsurance programs.
###