HF664 (Legislative Session 94 (2025-2026))
Medical assistance income limit increased for persons with disabilities and persons age 65 and over.
Related bill: SF548
AI Generated Summary
Purpose
The bill aims to make it easier for certain Minnesota residents to qualify for Medical Assistance (MA) by raising the income limits for eligibility, specifically for people with disabilities and people age 65 and over. It also adjusts how income is counted when determining eligibility.
Main Provisions
- Amends Minnesota Statutes 2024 section 256B.056 subdivision 4 to set updated income limits for MA eligibility.
- Group A (MA categories 7, 7a, and 12): income up to 100% of the federal poverty guidelines (FPG). Recipients of Supplemental Security Income (SSI) may use the SSI standard as the income limit (as of each January). This section also references an effective date tied to SSI rules.
- Group B (parents or caretaker relatives, 256B.055 3a): income up to 133% of the FPG for the household size.
- Group C (persons described in 256B.055 15): income up to 133% of the FPG for the household size.
- Group D (child age 19 to 20, 256B.055 16): income up to 133% of the FPG for the household size.
- Group E (child under age 19, 256B.055 3a): income up to 275% of the FPG for the household size.
- Group F (income calculation rules): For persons in Groups A–E who are not residents of long-term care facilities, the commissioner must disregard certain increases in income as allowed by federal law (Public Laws 94-566, sections 503, 99272, and 99509).
- Special note: For those in Group A, veteran aid and attendance benefits and VA unusual medical expense payments are treated as income for the purposes of determining MA eligibility (i.e., they count toward the income limit).
Significant Changes to Existing Law
- Broadens MA eligibility by raising income limits for several groups, including many with disabilities and seniors.
- Expands the use of higher income thresholds (133% or 275% of FPG, depending on group) for determining MA eligibility.
- Introduces income counting rules that disregard certain income increases for non-long-term-care residents, aligning with federal law, while simultaneously counting certain veteran-related payments as income in some cases.
- Clarifies how household size affects the income limits for each eligible group.
Practical Effects
- More people with disabilities and older adults could qualify for MA because higher incomes will be allowed under the new thresholds.
- Families with children (including those under 19) may see changes in MA eligibility due to higher income limits for some child categories.
- The way Veterans benefits and certain medical expenses impact eligibility will differ depending on the group, potentially changing who qualifies.
Relevant Dates and Context - The provisions reference specific MA eligibility groups and how income is calculated, including SSI rules and federal income disregards. The text also ties some rules to federal law and historical Public Law references.
Relevant Terms - Medical Assistance (MA) - Federal Poverty Guidelines (FPG) - Supplemental Security Income (SSI) standard - Household size - Not residents of long-term care facilities - Veteran aid and attendance benefits - VA unusual medical expense payments - Public Laws 94-566 (and referenced sections 503, 99272, 99509) - Minnesota Statutes 256B.056 subdivision 4 - Minnesota Statutes 256B.055 subdivisions 7, 7a, 12, 3a, 15, 16
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 13, 2025 | House | Action | Introduction and first reading, referred to | Health Finance and Policy | |
| February 19, 2025 | House | Action | Motion to recall and re-refer, motion prevailed | Human Services Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Raises the income limit for medical assistance eligibility to up to 100–133 percent of the federal poverty guidelines for individuals described in sections 256B.055 subdivisions 7, 7a, and 12.",
"Requires disregard of increases in income for computing eligibility for certain applicants in accordance with Public Laws 94-566 sections 503, 99272, and 99509.",
"Specifies that veteran aid and attendance benefits and Veterans Administration unusual medical expense payments are considered income to the recipient."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024 section 256B.056 subdivision 4 to modify income eligibility for medical assistance and clarifies related income-disregard rules.",
"modified": [
"Clarifies the method of computing income for MA eligibility for non-residents of long-term care facilities in light of federal disregard provisions."
]
},
"citation": "256B.056",
"subdivision": "4"
},
{
"analysis": {
"added": [
"Income limit for MA eligibility under 256B.055 subdivisions 7, 7a, and 12 is raised to up to 100–133 percent of the federal poverty guidelines."
],
"removed": [],
"summary": "This bill increases the medical assistance income limit for individuals eligible under 256B.055 subdivisions 7, 7a, and 12 to a higher percentage of the federal poverty guidelines.",
"modified": [
"Expands eligibility criteria to higher income thresholds for these specific subgroups."
]
},
"citation": "256B.055",
"subdivision": "7, 7a, 12"
},
{
"analysis": {
"added": [
"Income limit for MA eligibility under 256B.055 subdivision 3a raised to 133 percent of the federal poverty guidelines."
],
"removed": [],
"summary": "This bill increases the income limit for medical assistance under 256B.055 subdivision 3a to 133 percent of the federal poverty guidelines.",
"modified": []
},
"citation": "256B.055",
"subdivision": "3a"
},
{
"analysis": {
"added": [
"Income limit for MA eligibility under 256B.055 subdivision 15 raised to 133 percent of the federal poverty guidelines."
],
"removed": [],
"summary": "This bill increases the income limit for medical assistance under 256B.055 subdivision 15 to 133 percent of the federal poverty guidelines.",
"modified": []
},
"citation": "256B.055",
"subdivision": "15"
},
{
"analysis": {
"added": [
"Income limit for MA eligibility under 256B.055 subdivision 16 raised to 133 percent of the federal poverty guidelines."
],
"removed": [],
"summary": "This bill increases the income limit for medical assistance under 256B.055 subdivision 16 to 133 percent of the federal poverty guidelines for the specified group.",
"modified": []
},
"citation": "256B.055",
"subdivision": "16"
},
{
"analysis": {
"added": [
"Disregard increases in income in computing MA eligibility as required by Public Laws 94-566 sections 503, 99272, and 99509."
],
"removed": [],
"summary": "This bill incorporates provisions from Public Laws 94-566 regarding disregard of income increases when computing medical assistance eligibility for certain groups.",
"modified": [
"Applies federal disregard rules to income computations for MA eligibility for specified paragraphs."
]
},
"citation": "Public Law 94-566",
"subdivision": "section 503, 99272, 99509"
}
]Progress through the legislative process
In Committee