HF3763 (Legislative Session 94 (2025-2026))
Community engagement requirements for the medical assistance program established.
AI Generated Summary
Purpose
This bill adds a community engagement requirement to eligibility for Minnesota Medical Assistance (MA). It requires people who qualify for MA to demonstrate engagement in certain activities each month, with various exceptions and supports to help them comply. It also updates data-sharing rules to support program administration and enforcement.
What the bill would change (Main Provisions)
- Define “applicable individual” as someone eligible for MA under current law, who must meet community engagement requirements at application and at renewal, unless exempt.
- For application, the individual must show compliance in the two consecutive months before applying, or qualify for an exception in the month of application. For renewal, compliance must be shown in at least two months since the last application/renewal, not necessarily in consecutive months.
- In a given month, an applicable individual must meet one of several activities totaling at least 80 hours:
- Work at least 80 hours
- Complete at least 80 hours of community service
- Participate in a work program (as defined in federal law) for at least 80 hours
- Be enrolled at least half-time in an educational program (including higher education or career/technical education)
- Any combination of the above totaling at least 80 hours
- Have monthly income at least the federal minimum wage multiplied by 80 hours
- Have an average monthly income over the prior six months at least the federal minimum wage times 80 hours and be a seasonal worker
- Introduce broad exceptions to the requirements (see next section) and create a process for obtaining exceptions if medically frail or otherwise unable to work.
- Establish a short-term hardship exception allowing coverage for part or all of a month if the person is hospitalized, in a nursing facility or similar care setting, or must travel outside the local community for necessary medical treatment, among other stated circumstances.
- Require the commissioner to determine compliance or exemptions using data already available (data matching and electronic sources) and limit reliance on contractors with financial ties to managed care or county programs for these determinations.
- Implement a 30-day window if noncompliance is found, giving the person time to demonstrate compliance or obtain an exception; enrollees stay eligible during that 30-day period. If no basis for MA eligibility remains, eligibility can be denied or terminated after the 30-day period.
- Notify MA enrollees about the requirements by specific deadlines (by Sept 1, 2026 for initial notice; semiannual notices beginning in 2027) and include clear information on how to comply, who is exempt, and how to report changes.
- Require the commissioner, with county agencies, to develop and implement supports to help applicable individuals meet the requirements, including linking to job training, employment services, childcare assistance, transportation, and other supports.
- Make related changes to data sharing and privacy to support program administration (see Data Changes section).
Exceptions to the community engagement requirements
An applicable individual is not subject to the requirements for part or all of a month if they are: - Enrolled under the MA program for certain exemptions - An American Indian or Alaska Native as defined under federal law, or eligible as an Indian for Indian Health Service - A parent/guardian/caregiver of a dependent child 13 or younger or of a person with a disability - A veteran with a disability rated as total - A SNAP household member not exempt from work requirements - A participant in a drug or alcohol treatment program - An inmate of a public institution - An individual who is medically frail or has a significant medical/physical/mental disability or other serious condition (as defined by guidelines)
Short-term hardship exceptions (additional detail)
- The commissioner must deem an applicable individual compliant for a month if they are receiving certain inpatient or targeted services, or must travel outside the community to obtain necessary care for a serious/complex medical condition for themselves or a dependent.
- Applies in specified emergency or disaster contexts or in areas with high unemployment and certain federal approvals.
How compliance is determined and verified
- The commissioner will determine compliance using data available through periodic data matching and other electronic sources.
- The department must not require unnecessary additional information beyond what is already available.
- Determinations about compliance cannot be delegated to managed care plans or county purchasing plans with direct or indirect financial ties for these purposes.
Consequences for noncompliance
- If compliance cannot be established after the 30-day notice period, the commissioner must determine if there are any other eligibility bases or terminate MA eligibility by the end of the following month if no other basis exists.
- Enrollees who are not meeting requirements can be suspended from MA when noncompliance is confirmed and reinstated once the requirements are met for a month.
Outreach and communication
- The commissioner must notify MA enrollees about the community engagement requirements by specific deadlines and semiannually thereafter.
- Notices must cover how to comply, who qualifies, how to obtain exceptions, how to report status changes, and consequences of noncompliance.
- Notices may be delivered by mail or electronic formats chosen by the individual, with other reasonable formats available.
Agency responsibilities and supports
- The commissioner, in collaboration with county agencies, must implement strategies to help applicable individuals meet the requirements and connect them with resources such as job training, childcare assistance, transportation, and other supports to prepare for work or increase earnings.
Data sharing and privacy changes (related to MA and other programs)
- Updates to data use and sharing across multiple agencies (including Human Services, Revenue, Labor and Industry, Education, and others) to support eligibility determinations, program integrity, and cross-program monitoring.
- Specific provisions allow sharing wage data, tax data, and other data with DHS, the IRS, and other state/federal agencies under defined conditions, with restrictions to protect privacy and to ensure data used only for authorized purposes (e.g., determining MA eligibility, administering related programs, or evaluating services).
- Some data-sharing provisions specify when data can be disseminated without subject consent and under what reporting or enforcement contexts.
Related statutory amendments (overview)
- Minnesota Statutes 2025 Supplement section 268.19, subdivision 1 (data privacy and sharing related to unemployment data) updated to permit certain disclosures to support unemployment and employment services and program administration.
- Minnesota Statutes 2024 section 268.19 subdivision 1a amended to address wage detail data sharing and potential data exchanges with employment service providers; authorization for data exchanges for evaluating employment services.
- Minnesota Statutes 2025 Supplement section 270B.14 subdivision 1 amended to include data exchanges and matching for purposes of administering housing assistance, tax credits, and related programs, with conditions for confidentiality and interagency agreements.
- Overall, changes are designed to facilitate cross-agency data sharing to support program administration, eligibility determinations, and enforcement, while preserving data privacy where required.
Implementation timeline (highlights)
- Notice to MA enrollees about community engagement requirements required by September 1, 2026.
- Semiannual notices to MA enrollees beginning January 1, 2027.
- Commissioner's collaboration with counties to implement engagement supports is an ongoing obligation.
Summary of potential impacts
- MA eligibility now hinges on monthly community engagement activities (80 hours) with several ways to meet the requirement, plus a broad set of exemptions.
- Individuals may face suspension of MA benefits if they fail to meet the requirements and do not qualify for an exception, though supports and pathways to regain eligibility are provided.
- The bill expands data-sharing across agencies to improve program administration and compliance monitoring, with safeguards for privacy and authorized uses.
Practical implications for MA applicants/recipients
- If you are MA-eligible, you may need to plan monthly activities (work, volunteer/community service, schooling, or income-based alternatives) to stay eligible.
- If you have a disability, caregiving responsibilities, or other qualifying circumstances, you may qualify for exemptions.
- Expect periodic notices explaining your status, how to comply, and how verification will be handled.
- Agencies will offer help with job training, childcare, transportation, and other supports to assist with meeting the engagement requirements.
Relevant Terms - community engagement requirements - applicable individual - medical assistance (MA) - work hours (80 hours) - community service - work program (federal definition) - educational program (half-time or more) - income equal to federal minimum wage × 80 hours - seasonal worker (average monthly income ≥ wage × 80 hours) - exemptions/exception from requirements - short-term hardship exception - inpatient hospital services - nursing facility / intermediate care facility for people with developmental disabilities - medically frail - data matching - electronic data sources - not relying on managed care plans for determinations - notice and fair hearing rights - 30-day compliance window - suspension and reinstate MA - outreach to enrollees - collaboration with counties - job training and employment supports (childcare, transportation) - wage detail data - data sharing between state agencies (DHS, Revenue, L&I, DOE, etc.) - confidentiality and privacy protections - interagency data exchange agreements - data dissemination for program administration and evaluation
Bill text versions
- Introduction PDF PDF file
Past committee meetings
- Health Finance and Policy on: March 04, 2026 13:00
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 26, 2026 | House | Action | Introduction and first reading, referred to | Health Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Adds or clarifies allowances for disseminating wage data to multiple agencies for employment and program purposes."
],
"removed": [],
"summary": "Minnesota Statutes 2024 section 268.19 subdivision 1a is addressed to wage detail data and its dissemination/uses; the bill provides data-sharing and confidentiality context for wage data.",
"modified": [
"Modifies the scope and handling of wage detail data under 268.19 subdivision 1a."
]
},
"citation": "268.19 subdivision 1a",
"subdivision": "subdivision 1a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Minnesota Statutes 2025 Supplement section 268.19 subdivision 1 is amended to read the use of wage data and related disclosures.",
"modified": [
"Updates or aligns the use/disclosure framework for wage data with other provisions (in context with 268.19 subdivision 1a)."
]
},
"citation": "268.19 subdivision 1",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
"Creates or expands interagency data matching between agencies (e.g., Revenue and Human Services) for program eligibility and administration."
],
"removed": [],
"summary": "Minnesota Statutes 2025 Supplement section 270B.14 subdivision 1 is amended to govern disclosure and data matching to administer related programs.",
"modified": [
"Extends data-sharing authority to support Medicaid-related administration and federal reporting requirements."
]
},
"citation": "270B.14 subdivision 1",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines an 'applicable individual' for the medical assistance program by reference to Minnesota Statutes 256B.055, subdivision 15.",
"modified": [
"Uses 256B.055, subdivision 15 to determine who is subject to community engagement requirements."
]
},
"citation": "256B.055 subdivision 15",
"subdivision": "subdivision 15"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References an exception category for certain individuals under 256B.055, subdivision 17 (e.g., enrollees or exemptions related to MA program rules).",
"modified": [
"Incorporates specific exemption pathways related to 256B.055 subdivision 17 into the community engagement framework."
]
},
"citation": "256B.055 subdivision 17",
"subdivision": "subdivision 17"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Incorporates federal definitions of American Indian or Alaska Native for purposes of exceptions or eligibility determinations.",
"modified": [
"Uses 25 U.S.C. § 1603 to define who qualifies as an American Indian or Alaska Native for exemption purposes."
]
},
"citation": "25 U.S.C. § 1603",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References disability ratings for veterans (total disability) in connection with exemptions from engagement requirements.",
"modified": [
"Utilizes 38 U.S.C. § 1155 as a basis for veteran-related exemptions."
]
},
"citation": "38 U.S.C. § 1155",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites federal law defining or describing a work or treatment program relevant to the community engagement options.",
"modified": [
"Incorporates federal program definitions under 7 U.S.C. § 2012 to inform engagement activities."
]
},
"citation": "7 U.S.C. § 2012",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites a federal tax credit provision used in data-sharing contexts for eligibility and income reporting.",
"modified": [
"References 26 U.S.C. § 45R(d)(5B) in relation to reporting of refundable tax credits and related income data."
]
},
"citation": "26 U.S.C. § 45R(d)(5B)",
"subdivision": "subdivision 5B"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites federal regulations (WIA-related) governing data use in employment and training services.",
"modified": [
"Incorporates 20 C.F.R. § 663.510c to govern data sharing for employment and training purposes."
]
},
"citation": "20 C.F.R. § 663.510c",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites federal regulations governing fair hearings and certain determinations under Medicaid/assistive programs.",
"modified": [
"References 42 C.F.R. Part 431 Subpart E for due process/fair hearing rights in determinations."
]
},
"citation": "42 C.F.R. Part 431 Subpart E",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References the Medicaid Voluntary Contribution and Provider-Specific Tax Amendments of 1991 (Public Law 102-234).",
"modified": [
"Incorporates PL 102-234 to support federal reporting and program integrity data flows."
]
},
"citation": "Public Law 102-234",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites Wage and Employment data provisions under the Workforce Investment Act (WIA) and related data usage.",
"modified": [
"Uses 29 U.S.C. § 2842 to authorize data sharing for evaluation and program improvement under WIA."
]
},
"citation": "29 U.S.C. § 2842",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites WIA-related provisions (data exchange or related program requirements).",
"modified": [
"References 29 U.S.C. § 2871 in connection with data sharing and program evaluation."
]
},
"citation": "29 U.S.C. § 2871",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites WIA-related provisions for data use in employment and training program administration.",
"modified": [
"Uses 29 U.S.C. § 2864 to support interagency data sharing and program administration."
]
},
"citation": "29 U.S.C. § 2864",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota statutes governing SNAP-related or work-reporting exceptions in the context of employment requirements and assistance programs.",
"modified": [
"Cites 237.69–237.71 to frame exceptions related to work requirements under public assistance."
]
},
"citation": "Minnesota Statutes sections 237.69 to 237.71",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites the renters credit-related section used in data matching and eligibility contexts.",
"modified": [
"Uses 290.0693 in data matching related to refundable or tax credits as part of eligibility verification."
]
},
"citation": "Minnesota Statutes section 290.0693",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites data-sharing provisions related to refunds and tax-related administrative data.",
"modified": [
"References 295.50–295.59 in interagency data exchanges for tax-related and refund-processing purposes."
]
},
"citation": "Minnesota Statutes sections 295.50 to 295.59",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites authority for data exchanges with employment/training service providers under section 116L.17.",
"modified": [
"Uses 116L.17 to support data-sharing with service providers for employment services."
]
},
"citation": "Minnesota Statutes section 116L.17",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites wage data collection provisions referenced in 268.044 that feed into the wage detail data framework.",
"modified": [
"Links data gathered under 268.044 to dissemination and evaluation uses in 268.19-related provisions."
]
},
"citation": "Minnesota Statutes 268.044",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites agency authority related to unemployment data and related investigations as part of data-sharing frameworks.",
"modified": [
"Incorporates 268.182 in interagency data-sharing and data-maintenance contexts."
]
},
"citation": "Minnesota Statutes section 268.182",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites section governing state authority over economic development and related programs, including welfare and job-creating zones.",
"modified": [
"References 469.3201 to support cross-cutting program and data-sharing activities tied to local zones."
]
},
"citation": "Minnesota Statutes section 469.3201",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites the Minnesota Child Support and related programs (Chapter 142G) in context of interagency data exchanges.",
"modified": [
"References Chapter 142G for child support and related program data sharing."
]
},
"citation": "Minnesota Statutes chapter 142G",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites the Minnesota Secure Choice Retirement Program established under chapter 187 in outreach or data-sharing contexts.",
"modified": [
"Uses Chapter 187 to connect employment/retirement program data or communications with employers."
]
},
"citation": "Minnesota Statutes chapter 187",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Federal regulation governing fair hearings and related procedures for health programs.",
"modified": [
"Incorporates 42 C.F.R. Part 431 Subpart E to ensure fair hearing rights in eligibility determinations."
]
},
"citation": "42 C.F.R. Part 431 Subpart E",
"subdivision": ""
}
]Progress through the legislative process
In Committee