July 2025

🟦 Medicare & Medicaid Changes

The CareGiving Committee of Elders for Justice have been advocating on behalf of these changes and were active in trying to prevent these changes. They were not able to make any headway and will be working hard in the 2026 session to make their voice heard.

What can you expect?
Recent federal budget changes will impact Minnesota:

• Hospital & Nursing Home Cuts – Minnesota will lose about $500 million per year in reimbursements for hospital and nursing home care.

• Loss of Coverage – Between 170,000 and 250,000 Minnesotans could lose their health insurance.

• SNAP (Food Assistance) Cuts – Over 225,000 children, veterans, seniors, and families will see reduced benefits.

The Caregiving Committee will be hosting discussions about these changes and how they may affect you.

• 📄 Here are key details to know from the Minnesota Department of Human Services to help understand the conversation around Medicaid:
  Communication toolkit / Minnesota Department of Human Services

• 📄 Here is a summary by MN DHS of Medicaid provisions from the federal bill. (It’s a PDF document.)

🟦Medigap Penalty Alert

📄IMPORTANT information to know!

A new Minnesota law creates challenges for seniors:

• Ages 65–70 – A lifetime penalty applies if you enroll late. This penalty will grow to 35% by 2029.

• Ages 70+ – Insurance companies can now deny Medigap coverage if you have a pre-existing condition.

📄 The Minnesota State Retiree Council, AFL-CIO has a resolution explaining the penalties and the risks of switching to Medicare Advantage plans. The resolution is stated below:

Subject: Oppose the new Medigap/Medicare Supplement penalties and enrollment restrictions.
Submitted by: Minnesota State Retiree Council, AFL-CIO

Whereas: Minnesota Has Become the Only State with a Penalty on Medigap Plans

• Whereas, Medicare Advantage plans are private health insurance, and unlike
  traditional Medicare have limited networks, require pre-approval for procedures and have benefits which may fluctuate from year to year. They are “managed care” rather than “fee-for-service.”

• Whereas, Medicare Advantage currently costs the taxpayer 6% more per enrollee per year than traditional Medicare, threatening the solvency of the program. Many Advantage plans overbill the federal government by upcoding patients’ medical conditions.

• Whereas, Medicare Advantage plans have a high denial rate for pre-approval of needed medical services recommended by physicians for older adult patients that 82% of the time are fully or partially overturned on appeal.

• Whereas, the State AFL-CIO Retiree Council supports changing Federal law to end the deceptive use of "Medicare" in the marketing of private health insurance plans currently marketed as "Medicare Advantage" plans. This is to make it clear that Medicare Advantage plans are a private alternative to the government Medicare fee-for-service.

• Whereas, the State AFL-CIO Retiree Council supports changing state law to require Medicare Advantage customers to sign a disclaimer that they understand are opting out of traditional Medicare and that if they later wish to return to a traditional Medicare Supplement they will be subject to underwriting and price increases.

• Whereas, Minnesota lawmakers drastically altered state insurance laws in the 2025 legislative session that will impact Medicare-eligible Minnesotans’ ability to purchase a Medicare Supplemental insurance plan, often known as “Medigap.” The new law removes the guarantee issue—the ability to purchase a plan without denial due to pre- existing conditions—on Minnesotans over age 70.

• Whereas, Minnesotans age 65-70 purchasing a plan during open enrollment periods will be subject to a lifetime penalty up to 35% by 2029. This penalty applies to enrollments outside of a person’s initial six-month period or some other limited circumstances. Minnesota is now the only state with a government-imposed penalty on Medigap/Medicare Supplement plans.

• Now therefore be it resolved: that while the guaranteed issue for those 65-70 starting on August 1, 2026, was protected albeit with a lifetime penalty, this new law remains deeply problematic. The AFL-CIO Retiree Council will inform members and their unions of the issue and continue to engage on this issue in future legislative sessions.

• Therefore be it further resolved: that Minnesota AFL-CIO State Retiree Council stands strongly against the new Medigap/Medicare Supplement penalties and enrollment restrictions passed by the MN Legislature’s Commerce working group that could significantly impact Medicare choices for older Minnesotans – specifically: Opposed SF 2477 (Klein) / HF 2403 (O’Driscoll on behalf of Commerce Committee) that was passed as a part of an omnibus bill that includes a lifetime penalty. And, opposed, but was not passed, SF 2498 (Draheim) / HF 2335 (Elkins) that includes full repeal of guaranteed issue periods.

• Be it further resolved: that the State Retiree Council forward this resolution to the Minnesota AFL-CIO General Board for action and support on behalf of all older adult Minnesotans.

If you would like more information on medicare, please visit: https://mn.gov/commerce/insurance/health/medicare/

🟦 Broadband Access Update

Better internet access is important for seniors. Elder for Justice will meet with state leaders this summer and fall to push for improvements.

🟦 Tracking State and local elections

Elders for Justice is monitoring how the race for the soon to be vacated seat by Senator Tina Smith affects state elections. This includes the vacancy in Rep. Angie Craig’s competitive second congressional district.

Gov. Tim Walz has called for special elections to fill the seats of Sen. Bruce Anderson of Buffalo and Sen. Nicole Mitchell of Woodbury on November 4. Primary elections, if necessary, will be held on August 26.

Other Information 

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