(St@teside Published February 27, 2007)

Minnesota:

Minnesota: Governor Pawlenty (R) announced his " Healthy Connections " proposal in early January. His plan includes several components:

• Modernizing MinnesotaCare: The Governor intends to improve the state's Medicaid program by making existing premiums for children more affordable. Additionally, eligibility for children under age 21 will be expanded from 275 percent FPL to 300 percent FPL. The state will also create a new private sector option-MinnesotaCare II-which will be available for children above 200 percent FPL. Private health plans with greater than 3 percent market share in the individual market will be required to offer the new plan that, according to the state, will offer significantly reduced premiums with the hopes that more children and their families will enroll. The plan also includes special accounts to encourage healthy behaviors.

• Tax Incentives: Employers with 10 or more employees will be required to establish Section 125 plans which allow employees to purchase health insurance with pre-tax dollars. The state, however, will not mandate that employers offer or contribute to health insurance coverage.

• Minnesota Health Insurance Exchange: Governor Pawlenty is interested in implementing a model similar to the Massachusetts Connector. The Exchange will be the vehicle through which eligible individuals can access the MinnesotaCare II plans. As in Massachusetts, the Exchange will facilitate the purchase of insurance by employers. Likewise, the entity also allows employees to purchase health insurance with pre-tax dollars and part-time employees can combine contributions from various employers. Policies in the individual market will only be available through the Exchange.