Minnesota DFL lawmakers introduce new medical debt legislation
Many Minnesota families are buried under a pile of medical debt, and the state's top attorney wants to change that.
Minnesota Attorney General Keith Ellison, alongside two Minnesota lawmakers and St. Paul Mayor Melvin Carter, said a new proposal could erase hundreds of thousands in medical bills.
"We have an opportunity in this moment to lift some of the burden some of the weight from people's shoulders," said Sen. Liz Boldon, DFL – Rochester.
Under the proposed Minnesota Medical Debt Reset Act, $5 million of state funding would go toward buying and forgiving medical debt and help hundreds of thousands of Minnesotans. The work would be accomplished by partnering with a debt-forgiveness nonprofit that purchases medical debt from health care providers, for pennies on the dollar.
The nonprofit known as "Undue Medical Debt" said this plan would help up to 400,000 Minnesotans and relieve $500 million of medical debt.
To qualify, Minnesotans must have a household income at or below 400% of federal poverty guidelines or medical debt equal to or exceeding 5% of their household income.
"Nobody chooses to fall into medical debt," said Jenn Schultz from St. Paul.
Schultz is a four-time cancer survivor, who, despite being fully insured, said she had to decide between paying her bills or buying groceries, after racking up thousands in medical debt.
Schultz said she benefited from a very similar program in St. Paul that the city said abolished $40 million of medical debt for thousands of residents.
Schultz is now hoping this statewide effort can help others in the same way.
"Medical debt should not be a side effect of my medical diagnosis," said Schultz.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
9 hours ago
- Yahoo
Former Stewartville home park community operator agrees to pay $135,000 in settlement
Jun. 12—ST. PAUL — The former owner and operator of a manufactured home park community in Stewartville agreed to pay $135,000 after facing allegations that it submitted false claims to the Minnesota Housing Finance Agency. The state alleged that Sun Communities, Inc. violated three counts of the Minnesota False Claims Act, an act that works to combat fraud against the government. The civil complaint, filed in March 2024, alleged that Sun Communities attempted to evict several tenants for not paying their rent. However, in these instances, Sun Communities received the tenants' payments through RentHelpMN, a federally funded program created after COVID-19 that provides financial support to help Minnesota families pay rent. According to the complaint, Sun Communities "repeatedly affirmed" that it would not evict tenants for not paying rent after receiving their rent payments through the program. RentHelpMN required landlords like Sun Communities to comply with the "statutory and regulatory prohibition on evicting tenants." The state alleged that Sun Communities applied RentHelpMN to pay for "unlawful late fees, pet fees" and other unauthorized fees. Hennepin County District Judge Susan Burke ordered that $33,824.09 of the $135,000 be paid as restitution, which will be credited to the Minnesota Housing Finance Agency. "What Sun Communities did was unlawful," Attorney General Keith Ellison said in a release. "The pandemic created economic hardship, so the government stepped up and helped struggling families make rent payments. It is disappointing that any property owner would accept those payments and then still try to evict their tenants. Today, we are holding one of those property owners accountable. I am grateful to the whistleblower who helped bring this wrongdoing to light, and I encourage other Minnesotans who believe government funds are being misused to contact my office." Taft Stettinius & Hollister LLP, who represented Sun Communities, did not immediately respond for comment. Sun Communities, Inc. previously owned and operated the community located at 105 20 St. NW, Stewartville.
Yahoo
11 hours ago
- Yahoo
Here's how the House GOP's proposed Medicaid cuts could impact Minnesota
Thousands of protestors gathered at the Minnesota State Capitol as part of the nationwide "Hands Off" protests condemning several actions of the Trump administration Saturday, April 5, 2025. (Photo by Nicole Neri/Minnesota Reformer) Minnesota could lose up the half a billion dollars annually if a GOP-backed tax bill becomes federal law, Minnesota's Medicaid director warned Thursday. That could mean fewer services or tighter restrictions on eligibility, affecting health care for hundreds of thousands of Minnesotans and the hospitals and other providers that treat them. The bill, which has already passed the U.S. House on a 215-214 vote, is still far off from becoming law; Senate Republicans are drafting their own version, and the GOP remains deeply split over how to pay for tax cuts, which is their ultimate goal. For now, the House legislation is the most detailed public plan for how Republicans will fund an extension of President Donald Trump's 2017 tax cuts, plus a bunch more. The tax cuts passed by the House would decrease federal revenue by about $3.7 trillion over the next ten years, according to the nonpartisan Congressional Budget Office. To offset the loss of income, Republicans want to cut spending by $1.3 trillion, mostly by targeting Medicaid and SNAP, which helps low-income people buy food. (The $2.4 trillion gap between the revenue and spending cuts would be added to the federal debt, which will in turn increase what taxpayers must shell out in interest payments, which have surpassed $1 trillion annually.) Medicaid pays for health care for the elderly, low-income and disabled. The cost is shared between states and the federal government; last year, Minnesota spent $18 billion on Medical Assistance, which is Minnesota's version of Medicaid. The federal government covered $11 billion of that. More than 1.2 million Minnesotans rely on Medical Assistance, and deep cuts would cause 'serious harm' to Minnesotans, said John Connolly, Minnesota's Medicaid director. 'Our position at the Minnesota Department of Human Services is that the bill currently on the table is inefficient, ineffective and fundamentally unfair,' Connolly said during a press briefing. Minnesota is already grappling with how to pay for care for an aging population as health care costs continue to rise. The state Legislature made $270 million in cuts to Medical Assistance this year, as spending on the program has risen faster than tax revenues. DHS estimates that if the U.S. House tax bill were to become law, the state would lose out on $500 million per year. The bill would cause between 152,000 and 253,000 Minnesotans to lose health insurance, according to Kaiser Family Foundation. It would also push costs onto state and local governments, Connolly said, by requiring county and tribal governments to verify participants' eligibility twice as often as they do now, and increasing the administrative burden for the state. The largest chunk of the possible cuts to Minnesota comes from a provision that would reduce Medicaid reimbursements for states that subsidize health insurance for undocumented people. The Legislature voted this week to remove eligibility of undocumented adults for MinnesotaCare, a state- and federally-funded health insurance program for the working poor that is separate from Medical Assistance. As long as undocumented children remain eligible for MinnesotaCare — and if the House language becomes law — Minnesota would still have its federal funding cut by about $330 million, according to DHS. Senate Republicans are wary of deep Medicaid cuts, and are instead expected to target SNAP, the New York Times reported Thursday. The Senate has not yet introduced its version of the tax bill. A proposal to shift 25% of federal SNAP benefit costs onto states would shift up to $220 million annual cost to Minnesota, according to the state Department of Youth and Family Services. More than 440,000 Minnesotans rely on SNAP benefits, according to DCYF. More than one-third are children, 18% are seniors and 14% are adults with a disability. If these federal cost shifts and cuts become law, the Minnesota Legislature would likely be forced to return to St. Paul for a special session to either raise taxes, cut services or move money around to fulfill lawmakers' constitutional obligation to balance the budget.
Business Wire
20 hours ago
- Business Wire
Affinity Plus Foundation, FHLB Des Moines Award $1 Million in Grants to 41 Minnesota Nonprofit Organizations
ST. PAUL, Minn.--(BUSINESS WIRE)--The Affinity Plus Foundation, in partnership with the Federal Home Loan Bank of Des Moines (FHLB Des Moines), is excited to announce $1 million in Member Impact Fund grants to 41 nonprofit organizations across Minnesota. The Member Impact Fund matches up to $3 for every $1 contributed by FHLB Des Moines member institutions, supporting affordable housing and community development initiatives statewide. In partnership with FHLB Des Moines, the Affinity Plus Foundation announces $1 million in Member Impact Fund grants to 41 nonprofit organizations across Minnesota to support housing and community development initiatives statewide. Share "Through this grant program, we are able to significantly expand our local charitable impact and support the incredible work of nonprofits serving our communities,' said Jacquie Twedt, Board Chair of the Affinity Plus Foundation. 'Whether it's building transitional housing, delivering financial education, or improving food security, these organizations are the backbone of a stronger Minnesota." The Affinity Plus Foundation has been a proud partner of many of these nonprofit organizations for several years. Together, they remain dedicated to improving their communities through affordable housing, community development and basic needs programs. Notable Grant Recipients Joy Collaborative ($140,000): Construction of a mobile 'Joy Zone' for sensory-friendly respite at events for youth and adults with disabilities or life-limiting diseases. Lutheran Social Services ($100,000): Statewide re-activation of Train the Trainer financial education for nonprofit educators. New Pathways ($100,000): Funding towards a new, state of the art transitional housing center for families in Isanti County, including on-site resources for families experiencing homelessness. Kitchen Coalition/Second Harvest Heartland ($45,000): Providing additional culturally connected 'heat & eat' meals for food-insecure Minnesotans, expansion of local meal distribution partners. Minnesota Council for Economic Education ($15,000): High School Personal Finance workshops certify high school educators to deliver required personal finance curriculum, making these life skills more accessible to students. The donation will expand the organization's capacity to offer this workshop to 15 additional educators. 'The Member Impact Fund continues to be a powerful resource in supporting our members as they expand access to affordable housing and drive community development,' said Kris Williams, president and CEO of FHLB Des Moines. 'It's inspiring to see the partnerships centered around improving local communities in such a variety of ways.' Community & Regional Grant Recipients Grants were also awarded to nonprofits making a difference in affordable housing, housing stability, and food security, including: Housing Stability Grants ($25,000 each): One Roof Community Housing (Duluth), St. Vincent de Paul dba St. Phillips Conference (Bemidji), ServeMinnesota (statewide), Northwoods Habitat for Humanity (Bemidji), Neighborhood House (St. Paul), Habitat for Humanity of Morrison County (Little Falls), Women's Shelter & Support Center (Rochester), Relationship Safety Alliance (Brainerd), Life House (Duluth), Habitat for Humanity serving Winona County (Winona), Twin Cities Habitat for Humanity (St. Paul), Community Action Center (Northfield), Partnership for Affordable Housing (Mankato), Fergus Falls Habitat for Humanity (Fergus Falls), Habitat for Humanity of Douglas County (Alexandria), Committee Against Domestic Abuse (Mankato). Food Security Grants ($10,000 each): Feeding Our Community Partners (Mankato), Open Arms of Minnesota (St. Paul), Duluth Community School Collaborative (Duluth), North Country Food Bank (East Grand Forks), Kaitlyn's Kloset (Eagan), Open Hands Midway (St. Paul), The Sanneh Foundation (St. Paul), Neighbors, Inc. (South St. Paul), Outreach Food Shelf (Alexandria), Bridges of Hope (Brainerd), United Way of Bemidji Area (Bemidji), Open Cupboard (Oakdale), Emergency Community Help Organization (ECHO, Mankato), Valley Outreach (Stillwater), Channel One Regional Food Bank (Rochester), Rural Enrichment & Counseling Headquarters (REACH, Moorhead), People's Church (Bemidji), The Food Group Minnesota (Minneapolis), The Open Door Pantry (Eagan), Second Harvest Northland (Grand Rapids). About the Affinity Plus Foundation The Affinity Plus Foundation, a 501(c)(3) nonprofit established by Affinity Plus Federal Credit Union and based in St. Paul, Minn., is committed to building stronger communities through brighter financial futures for all. Through initiatives focused on housing stability, financial well-being, food security and access to education, the Affinity Plus Foundation creates lasting impact in the communities it serves. Since its inception in 2000, the Affinity Plus Foundation has awarded more than $2 million in grants and scholarships, empowering individuals and organizations to overcome barriers and achieve brighter financial futures. Learn more about the Foundation's mission and programs at About Federal Home Loan Bank of Des Moines Federal Home Loan Bank of Des Moines is deeply committed to strengthening communities, serving 13 states and three U.S. Pacific territories as a member-owned cooperative. The bank works with more than 1,200 member institutions to support affordable housing, economic development, and community improvement. Learn more at
