HF 4428

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/13/2026 04:33 p.m.

A bill for an act
relating to health care; establishing community engagement requirements for the
medical assistance program; amending Minnesota Statutes 2024, section 268.19,
subdivision 1a; Minnesota Statutes 2025 Supplement, sections 268.19, subdivision
1; 270B.14, subdivision 1; proposing coding for new law in Minnesota Statutes,
chapter 256B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [256B.0562] COMMUNITY ENGAGEMENT REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Demonstrating community engagement. new text end

new text begin (a) To be eligible for medical
assistance, an applicable individual must demonstrate compliance with the community
engagement requirements under this section at application and renewal, unless the applicable
individual qualifies for an exception under subdivision 2 or 3. For purposes of this section,
"applicable individual" means an individual eligible for medical assistance under section
256B.055, subdivision 15.
new text end

new text begin (b) At application, an applicable individual must demonstrate either compliance with
the requirements in the two consecutive months immediately preceding the month in which
the applicable individual applies for medical assistance, or exception from the requirements
in the month of application.
new text end

new text begin (c) At renewal, an applicable individual must demonstrate either compliance with the
requirements in at least two months since application or last renewal, or exception from the
requirements in the month of renewal. The two months are not required to be consecutive.
The commissioner must not determine the specific months for which an applicable individual
must be in compliance.
new text end

new text begin (d) To comply with the community engagement requirements in a given month, an
applicable individual must do one or more of the following:
new text end

new text begin (1) work at least 80 hours;
new text end

new text begin (2) complete at least 80 hours of community service;
new text end

new text begin (3) participate in a work program, as defined in United States Code, title 7, section
2015(o)(1), for at least 80 hours;
new text end

new text begin (4) be enrolled at least half-time in an educational program, including but not limited to
an institution of higher education and a program of career and technical education;
new text end

new text begin (5) engage in any combination of the activities described in clauses (1) to (4) for a total
of at least 80 hours;
new text end

new text begin (6) have a monthly income that is equal to or greater than the federal minimum wage
multiplied by 80 hours; or
new text end

new text begin (7) have had an average monthly income over the preceding six months that is equal to
or greater than the federal minimum wage multiplied by 80 hours, and be a seasonal worker,
as defined under United States Code, title 26, section 45R(d)(5)(B).
new text end

new text begin Subd. 2. new text end

new text begin Exceptions. new text end

new text begin (a) An applicable individual is not subject to the community
engagement requirements for part or all of a month in which the applicable individual is:
new text end

new text begin (1) an individual enrolled under section 256B.055, subdivision 17;
new text end

new text begin (2) an American Indian or Alaska Native who is an Indian, Urban Indian, or California
Indian as defined under United States Code, title 25, section 1603, or has otherwise been
determined eligible as an Indian for the Indian Health Service by the United States
Department of Health and Human Services;
new text end

new text begin (3) a parent, guardian, caretaker relative, or family caregiver of a dependent child who
is 13 years of age and under or of an individual with a disability;
new text end

new text begin (4) a veteran with a disability rated as total under United States Code, title 38, section
1155;
new text end

new text begin (5) receiving benefits under the Minnesota family investment program under chapter
142G and meeting the work activity and participation requirements under that chapter;
new text end

new text begin (6) a member of a household that receives Supplemental Nutrition Assistance Program
(SNAP) benefits under the federal Food and Nutrition Act of 2008 and is not exempt from
a work requirement under the act;
new text end

new text begin (7) a participant in a drug addiction or alcohol treatment and rehabilitation program, as
defined under United States Code, title 7, section 2012;
new text end

new text begin (8) an inmate of a public institution; or
new text end

new text begin (9) an individual who is medically frail or otherwise has special medical needs, in
accordance with guidance issued by the United States Department of Health and Human
Services. This includes but is not limited to an individual who: is blind or has a disability;
has a substance use disorder; has a disabling mental disorder; has a physical, intellectual,
or developmental disability that significantly impairs the individual's ability to perform one
or more activities of daily living; or has a serious or complex medical condition.
new text end

new text begin (b) The commissioner must develop standard forms that health care providers must
complete in order for an individual to apply for an exception from the community engagement
requirements on the basis of being medically frail or physically or mentally unfit for
employment. An individual seeking these exceptions must submit a completed form to the
county agency.
new text end

new text begin (c) Enrollees who are excepted from the community engagement requirements under
this subdivision must report any changes related to the enrollee's exception status within
ten days of the change to the county agency. The agency must redetermine eligibility for
the exception when a change in exception status is reported and at the time of the enrollee's
renewal.
new text end

new text begin Subd. 3. new text end

new text begin Short-term hardship exception. new text end

new text begin (a) The commissioner must deem an applicable
individual as meeting the community engagement requirements for a given month if for
part or all of the month the applicable individual:
new text end

new text begin (1) requests an exception on the basis of receiving inpatient hospital services, nursing
facility services, services in an intermediate care facility for persons with developmental
disabilities, inpatient psychiatric hospital services, or such other services of similar acuity,
including but not limited to outpatient care relating to the above-listed services, in accordance
with guidance issued by the United States Department of Health and Human Services;
new text end

new text begin (2) requests an exception on the basis of having to travel outside of the individual's
community for an extended period of time to receive medical services necessary to treat a
serious or complex medical condition, either for the individual or the individual's dependent,
when the services are not available in the individual's community of residence;
new text end

new text begin (3) resides in a county or equivalent unit of local government in which an emergency
or disaster has been declared under the National Emergencies Act or the Robert T. Stafford
Disaster Relief and Emergency Assistance Act; or
new text end

new text begin (4) resides in a county or equivalent unit of local government that has an unemployment
rate that is at or above the lesser of eight percent or 1.5 times the national unemployment
rate, and for which the United States Department of Health and Human Services has granted
an exception based on a request from the commissioner.
new text end

new text begin (b) The commissioner must grant short-term hardship exceptions required under this
subdivision in accordance with standards specified by the United States Department of
Health and Human Services.
new text end

new text begin Subd. 4. new text end

new text begin Determining and verifying compliance. new text end

new text begin (a) The commissioner must determine
whether an individual is subject to, compliant with, or excepted from the community
engagement requirements using processes established by the commissioner that rely on
information available to the commissioner through periodic data matching under section
256B.0561 and other electronic data sources. The commissioner must not request additional
information or documentation from an applicable individual unless the commissioner is
unable to make a determination using the information available to the commissioner.
new text end

new text begin (b) The commissioner is prohibited from relying on managed care plans, county-based
purchasing plans, or contractors with direct or indirect financial relationships with managed
care or county-based purchasing plans to make determinations about whether an individual
is subject to, compliant with, or excepted from the community engagement requirements.
new text end

new text begin Subd. 5. new text end

new text begin Failure to satisfy community engagement requirements. new text end

new text begin (a) If the
commissioner cannot establish an applicable individual's compliance with or exception from
the community engagement requirements, the commissioner must provide notice of
noncompliance and allow the applicant or beneficiary 30 calendar days from the date the
notice is received to demonstrate compliance with or exception from the requirements. The
notice must include:
new text end

new text begin (1) information about how to demonstrate compliance with or exception from the
requirements; and
new text end

new text begin (2) information about how to reapply for medical assistance if the individual's application
is denied or if the beneficiary is disenrolled.
new text end

new text begin (b) An enrolled beneficiary continues to be eligible for medical assistance during the
30-day period under paragraph (a).
new text end

new text begin (c) The commissioner must suspend medical assistance benefits for applicable individuals
who do not satisfy the community engagement requirements. The commissioner must
reinstate the medical assistance benefits once the applicable individual satisfies the
requirements for a calendar month. Medical assistance benefits must be reinstated the first
day of the month following the month for which the individual has satisfied the community
engagement requirements.
new text end

new text begin (d) If the commissioner determines that an individual is subject to but not compliant
with the community engagement requirements after the 30-day period, then the commissioner
must:
new text end

new text begin (1) determine whether the individual has any other basis for eligibility for medical
assistance or another insurance affordability program;
new text end

new text begin (2) provide written notice and fair hearing rights in accordance with Code of Federal
Regulations, title 42, part 431, subpart E; and
new text end

new text begin (3) if there is no other basis for medical assistance eligibility, deny the application or
terminate eligibility by the end of the month that follows the 30-day period.
new text end

new text begin Subd. 6. new text end

new text begin Outreach to applicable individuals. new text end

new text begin (a) By September 1, 2026, the
commissioner must notify medical assistance enrollees who may be applicable individuals
about the community engagement requirements.
new text end

new text begin (b) Beginning January 1, 2027, the commissioner must semiannually notify medical
assistance enrollees who may be applicable individuals about the community engagement
requirements.
new text end

new text begin (c) The notifications required under this subdivision must include, at a minimum:
new text end

new text begin (1) information about how to comply with the community engagement requirements;
new text end

new text begin (2) an explanation of who is considered an applicable individual;
new text end

new text begin (3) the list of exceptions to the community engagement requirements and how to obtain
an exception from the requirements;
new text end

new text begin (4) information about how to report a change in status that could result in the individual
qualifying for an exception, meeting an exception, or being subject to the community
engagement requirements after an exception ends; and
new text end

new text begin (5) information about the consequences of not complying with the community engagement
requirements.
new text end

new text begin (d) The commissioner must provide the notices required under this subdivision by mail
or an electronic format, if elected by the individual, and one or more additional formats
deemed appropriate by the United States Department of Health and Human Services.
new text end

new text begin Subd. 7. new text end

new text begin Additional requirements for the commissioner. new text end

new text begin The commissioner, in
collaboration with county agencies, must implement strategies to assist applicable individuals
in meeting the community engagement requirements and link applicable individuals to
additional resources for job training or other employment services, child care assistance,
transportation, or other supports to help applicable individuals prepare for work, maintain
employment, or increase earnings.
new text end

Sec. 2.

Minnesota Statutes 2025 Supplement, section 268.19, subdivision 1, is amended
to read:

Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered from
any person under the administration of the Minnesota Unemployment Insurance Law are
private data on individuals or nonpublic data not on individuals as defined in section 13.02,
subdivisions 9 and 12, and may not be disclosed except according to a district court order
or section 13.05. A subpoena is not considered a district court order. These data may be
disseminated to and used by the following agencies without the consent of the subject of
the data:

(1) state and federal agencies specifically authorized access to the data by state or federal
law;

(2) any agency of any other state or any federal agency charged with the administration
of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment offices
for the purpose of assisting individuals in obtaining employment;

(4) the public authority responsible for child support in Minnesota or any other state in
accordance with section 518A.83;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota
laws;

(7) public and private agencies responsible for administering publicly financed assistance
programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry, the Department of Commerce, and the Bureau
of Criminal Apprehension for uses consistent with the administration of their duties under
Minnesota law;

(9) the Department of Human Services and the Office of Inspector General and its agents
within the Department of Human Services, including county fraud investigators, for
investigations related to recipient or provider fraud and employees of providers when the
provider is suspected of committing public assistance fraud;

(10) the Department of Human Services for the purpose of evaluating medical assistance
services deleted text begin and deleted text end new text begin , new text end supporting program improvement new text begin , and administering section 256B.0562 new text end ;

(11) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program and other cash assistance programs, the Supplemental Nutrition Assistance Program,
and the Supplemental Nutrition Assistance Program Employment and Training program by
providing data on recipients and former recipients of Supplemental Nutrition Assistance
Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child
care assistance under chapter 142E, or medical programs under chapter 256B or 256L or
formerly codified under chapter 256D;

(12) local and state welfare agencies for the purpose of identifying employment, wages,
and other information to assist in the collection of an overpayment debt in an assistance
program;

(13) local, state, and federal law enforcement agencies for the purpose of ascertaining
the last known address and employment location of an individual who is the subject of a
criminal investigation;

(14) the United States Immigration and Customs Enforcement has access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency;

(15) the Department of Health for the purposes of epidemiologic investigations;

(16) the Department of Corrections for the purposes of case planning and internal research
for preprobation, probation, and postprobation employment tracking of offenders sentenced
to probation and preconfinement and postconfinement employment tracking of committed
offenders;

(17) the state auditor to the extent necessary to conduct audits of job opportunity building
zones as required under section 469.3201;

(18) the Office of Higher Education for purposes of supporting program improvement,
system evaluation, and research initiatives including the Statewide Longitudinal Education
Data System;

(19) the Family and Medical Benefits Division of the Department of Employment and
Economic Development to be used as necessary to administer chapter 268B; and

(20) the executive director or interim executive director of the Minnesota Secure Choice
Retirement Program established under chapter 187 for the purposes of assisting with
communication with employers and to verify employer compliance with chapter 187.

(b) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation under section 268.182 are confidential as to data on individuals
and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3
and 13, and must not be disclosed except under statute or district court order or to a party
named in a criminal proceeding, administrative or judicial, for preparation of a defense.

(c) Data gathered by the department in the administration of the Minnesota unemployment
insurance program must not be made the subject or the basis for any suit in any civil
proceedings, administrative or judicial, unless the action is initiated by the department.

Sec. 3.

Minnesota Statutes 2024, section 268.19, subdivision 1a, is amended to read:

Subd. 1a.

Wage detail data.

(a) Wage and employment data gathered under section
268.044 may be disseminated to and used, without the consent of the subject of the data,
by an agency of another state that is designated as the performance accountability and
consumer information agency for that state under Code of Federal Regulations, volume 20,
part 663.510(c), in order to carry out the requirements of the Workforce Investment Act of
1998, United States Code, title 29, sections 2842 and 2871.

(b) The commissioner may enter into a data exchange agreement with an employment
and training service provider under section 116L.17, or the Workforce Investment Act of
1998, United States Code, title 29, section 2864, under which the commissioner, with the
consent of the subject of the data, may furnish data on the quarterly wages paid and number
of hours worked on those individuals who have received employment and training services
from the provider. With the initial consent of the subject of the data, this data may be shared
for up to three years after termination of the employment and training services provided to
the individual without execution of an additional consent. This data is furnished solely for
the purpose of evaluating the employment and training services provided. The data subject's
ability to receive service is not affected by a refusal to give consent under this paragraph.
The consent form must state this fact.

new text begin (c) Wage and employment data gathered under section 268.044 may be disseminated to
and used by the commissioner of human services for the purpose of administering section
256B.0562 without the consent of the subject data.
new text end

Sec. 4.

Minnesota Statutes 2025 Supplement, section 270B.14, subdivision 1, is amended
to read:

Subdivision 1.

Disclosure to commissioner of human services.

(a) The commissioner
shall provide the records and information necessary to administer the supplemental housing
allowance to the commissioner of human services.

(b) At the request of the commissioner of human services, the commissioner of revenue
shall electronically match the Social Security or individual taxpayer identification numbers
and names of participants in the telephone assistance plan operated under sections 237.69
to 237.71, with those of property tax refund filers under chapter 290A or renter's credit filers
under section 290.0693, and determine whether each participant's household income is
within the eligibility standards for the telephone assistance plan.

(c) The commissioner may provide records and information collected under sections
295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
102-234. Upon the written agreement by the United States Department of Health and Human
Services to maintain the confidentiality of the data, the commissioner may provide records
and information collected under sections 295.50 to 295.59 to the Centers for Medicare and
Medicaid Services section of the United States Department of Health and Human Services
for purposes of meeting federal reporting requirements.

(d) The commissioner may provide records and information to the commissioner of
human services as necessary to administer the early refund of refundable tax credits.

(e) The commissioner may disclose information to the commissioner of human services
as necessary for income verification for eligibility and premium payment under the
MinnesotaCare program, under section 256L.05, subdivision 2, as well as the medical
assistance program under chapter 256B.

(f) The commissioner may disclose information to the commissioner of human services
necessary to verify whether applicants or recipients for general assistance and the Minnesota
supplemental aid program have claimed refundable tax credits under chapter 290 and the
property tax refund under chapter 290A, and the amounts of the credits.

(g) At the request of the commissioner of human services and when authorized in writing
by the taxpayer, the commissioner of revenue may match the business legal name or
individual legal name, and the Minnesota tax identification number, federal Employer
Identification Number, or Social Security number of the applicant under section 142C.03;
245A.04, subdivision 1; or 245I.20; or license or certification holder. The commissioner of
revenue may share the matching with the commissioner of human services. The matching
may only be used by the commissioner of human services to determine eligibility for provider
grant programs and to facilitate the regulatory oversight of license and certification holders
as it relates to ownership and public funds program integrity. This paragraph applies only
if the commissioner of human services and the commissioner of revenue enter into an
interagency agreement for the purposes of this paragraph.

new text begin (h) The commissioner may disclose return information to the commissioner of human
services for the purpose of administering section 256B.0562.
new text end