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Serving Northern St. Louis County, Minnesota

Dayton proposes health care public option

Proposal would open MinnesotaCare to anyone in the individual insurance market

Marshall Helmberger
Posted 1/25/17

REGIONAL— Gov. Mark Dayton attracted bigger headlines than usual for his State of the State address, on Monday, after he collapsed towards the end of the 45-minute speech before the full …

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Dayton proposes health care public option

Proposal would open MinnesotaCare to anyone in the individual insurance market

Posted

REGIONAL— Gov. Mark Dayton attracted bigger headlines than usual for his State of the State address, on Monday, after he collapsed towards the end of the 45-minute speech before the full Legislature.

Dayton appeared to recover moments later and was reportedly back at work the following day. But the incident overshadowed what was probably the governor’s most significant proposal, expanded eligibility for MinnesotaCare, which he had saved for the final portion of his address.

On Tuesday, Gov. Dayton’s office released the details of his proposal to greatly expand eligibility for MinnesotaCare, the state’s own public insurance option, which is currently limited to low-income (under 200 percent of the federal poverty level) Minnesotans.

Gov. Dayton said allowing middle class Minnesotans to buy into the state’s “public option,” would expand consumer choice and provide quality coverage at an affordable price with the individual insurance market. The average monthly adult premium for MinnesotaCare is $469, or about 12 percent cheaper than the average private sector plan offered on the MNsure exchange. Minnesotans who purchased MinnesotaCare coverage through the MNsure exchange could also qualify for additional premium support, just as with private plans offered through the exchange.

And the MinnesotaCare coverage typically leaves beneficiaries with far fewer out-of-pocket expenses. Deductibles are just $2.95 per adult per month, and most co-pays are very modest. That compares to many private sector plans, offered through the MNsure exchange, that include deductibles as high as $14,000.

While MinnesotaCare was initially implemented under a Republican governor, it has enjoyed less GOP support in more recent years and it’s unclear whether the Republican-dominated Legislature will support the governor’s proposal.

Last year, the state Senate, then led by DFLers, approved a measure that would have taken a similar approach, but the House never heard the bill and it failed to advance.

Republican leaders have already indicated they will be focused on spending reductions and tax cuts in the current legislative session.

The MinnesotaCare proposal was just one of a number of items that the governor had been expected to outline during this week’s address. Dayton’s $45.8 billion spending plan also reiterated his desire for an additional $75 million for his voluntary preschool program.