Lawsuit Restores $85 Million for MinnesotaCare

Minnesota will receive $85 million after they filed a lawsuit against the federal government because payments from the Centers for Medicare & Medicaid Services (CMS) were reduced to MinnesotaCare in 2017.

The reducing payments came after MinnesotaCare was expanded under the Affordable Care Act, providing insurance to people that have income just above the requirement for Medicaid eligibility.

The reduction in payments to MinnesotaCare by the CMS was related to President Trump’s decision to eliminate cost-sharing subsides for insurance purchased in the individual market.

“Last fall, without analysis or justification, the federal government cut funding for MinnesotaCare, eliminating cost-sharing related payments,” said Human Services Commissioner Emily Piper, in a statement released by the Minnesota’s Department of Human Services. “I am pleased today they acknowledge Minnesota is entitled to return of some of that funding. We are assessing whether this sufficiently addresses our concerns raised in the lawsuit.”

The lawsuit resulted in the CMS working with Minnesota to design a new formula for MinnesotaCare. The revised plan returns approximately 72 percent of the federal funding that was taken away in December 2017. It is not yet clear whether the CMS will make similar adjustments for 2019.

The money will more specifically be used for doctor visits, prescriptions, and hospital stays according to the Minnesota Department of Human Services.

MinnesotaCare provides insurance for 89,000 low-income, working Minnesotans.

New York also filed a similar lawsuit regarding their basic health plan and also prevailed.