Minnesota Medicaid Managed Care Program Will Stop Contracting With For-Profit Insurers In 2025

Under new legislation signed May 24, 2024, the Minnesota Department of Human Services (DHS) will no longer award Medicaid managed care contracts to for-profit health plans. The new law applies to contracts that go into effect on or after January 1, 2025. It also applies to contracts for the State Employee Group Insurance Program. The legislation, Minnesota House File 5247, is an omnibus bill. Many of the provisions affect various taxes.

Until 2017, DHS had restricted Medicaid MCO contracts to non-profit organizations. The legislature changed its requirements to allow for-profit health plans to compete under the same . . .