Is MinnesotaCare based on gross or net income?
Modified adjusted gross income (MAGI)5 is the income methodology used to determine eligibility for MinnesotaCare applicants and enrollees.
How Is Income Counted? MNsure uses “modified adjusted gross income” (MAGI) to determine the programs and savings you are eligible for. For most people, it's identical or very close to adjusted gross income (AGI), which is a line on your federal tax return.
MAGI, on the other hand, provides a more comprehensive and equitable measurement of your financial resources. This is why Covered California, in line with federal guidelines, opts for MAGI rather than gross or net income for determinations related to eligibility and financial assistance.
MinnesotaCare is for families with income at or below 200% of the Federal Poverty Guidelines (FPG) ($29,160 per year for an individual; $60,000 for a family of four), but above 138% of FPG ($20,120 for an individual; $41,400 for a family of four). MinnesotaCare counts most types of earned and unearned income you have.
Under the Affordable Care Act, eligibility for income-based Medicaid and subsidized health insurance through the Marketplaces is calculated using a household's Modified Adjusted Gross Income (MAGI).
Coverage Options through MNsure
Medical Assistance: Covers low-income Minnesotans, including children and pregnant women, as well as people with disabilities. There is no monthly premium. Enrollment is available year-round. MinnesotaCare: Covers lower-income Minnesotans who aren't eligible for Medical Assistance.
| FPG% | Family Size | Monthly Premium Per Person |
|---|---|---|
| 1 | ||
| 140-149% | 16,996- 18,209 | $25 |
| 150-159% | 18,210- 19,423 | $37 |
| 160-169% | 19,424- 20,637 | $44 |
If you are self-employed and have a net profit for the year, you can claim medical insurance premiums you pay for yourself, your spouse and your dependents. This is a standard deduction for medical insurance that is used to reduce your AGI — it's not an overall cost itemization.
Nontaxable income won't be taxed, whether or not you enter it on your tax return. The following items are deemed nontaxable by the IRS: Inheritances, gifts and bequests. Cash rebates on items you purchase from a retailer, manufacturer or dealer.
The income range is $30,000 to $120,000 in 2024 for a family of four. (Income limits may be higher in Alaska and Hawaii because the federal poverty level is higher in those states.)
Is MinnesotaCare the same as Medicaid?
Medical Assistance (MA) is Minnesota's Medicaid program for people with low income. MA does not require you to pay a monthly premium. MA members have small co-pays for some services, usually $1 - $3. MinnesotaCare is a program for Minnesotans with low incomes who do not have access to affordable health care coverage.
People whose eligibility for MA is closed may be eligible for retroactive MinnesotaCare. Retroactive MinnesotaCare may help pay medical expenses during the time between closure of MA and enrollment in MinnesotaCare.
No, the revenues from applying the insurance premiums tax to health maintenance organizations (HMOs) and nonprofit health services corporations (such as Blue Cross) are deposited in the health care access fund and used to pay for MinnesotaCare.
Your AGI is calculated before you take your standard or itemized deduction on Form 1040. Important reminder: If you are using the IRS Free File Guided Tax Software and you are filing using the Married Filing Jointly filing status, the $79,000 AGI eligibility amount applies to your combined AGI.
You don't need to include a capital gain if it's from the sale of your main home you owned for at least 5 years (and the profit is less than $250,000).
Your MAGI (modified adjusted gross income) is your AGI plus certain deductions you must “add back.” These deductions include IRA contributions, student loan interest, one-half of self-employment tax, qualified tuition expenses, and more.
Wages, salaries, tips, etc. Taxable interest. Taxable amount of pension, annuity or IRA distributions. Taxable and non-taxable Social Security and Social Security Disability Income (SSDI)
MinnesotaCare is paid for with state and federal tax dollars, provider taxes and premiums paid by people who are enrolled. It takes 30-45 days to process the application. Enrollees pay a monthly premium based on family size, income and the number of people in their family who are covered.
Within three weeks of when you sent or gave us your application, you should receive one or more of the following: A Minnesota Health Care Programs (MHCP) ID card. This means you have health care coverage. A health plan enrollment letter or a health plan selection packet with information about selecting a plan.
MinnesotaCare cost sharing includes deductibles, medical visit and prescription copays. Adults age 21 or older have a: Monthly deductible. Copays for non-preventative visits.
Can you have MinnesotaCare and Medicare at the same time?
You may qualify for MA to pay for services that Medicare does not cover. There are also special programs to help pay your Medicare costs, such as premiums, deductibles and copays. You cannot qualify for MinnesotaCare if you are enrolled or can enroll in Medicare.
MinnesotaCare and some bases of eligibility for Medical Assistance (MA) do not have an asset test. This means a person's assets are not counted to decide if he or she qualifies. A basis of eligibility for MA is a grouping of people based on a set of factors.
The AGI calculation is relatively straightforward. It is equal to the total income you report that's subject to income tax—such as earnings from your job, self-employment, dividends and interest from a bank account—minus specific deductions, or “adjustments” that you're eligible to take.
Benefits are generally included in the employee's wage for tax purposes, except those benefits that qualify for exclusion.
If you must pay higher premiums, we use a sliding scale to calculate the adjustments, based on your “modified adjusted gross income” (MAGI). Your MAGI is your total adjusted gross income and tax-exempt interest income.
