MN HF4045

Establishes a new 2% withhold on capitation payments to managed care plans and county-based purchasing plans for each Medical Assistance enrollee, effective January 1, 2026 through December 31, 2026

Requires managed care plans to obtain signed verification of coverage forms from all enrollees confirming their name, street address, and plan assignment, with forms due to the commissioner by February 28, 2026

Withheld funds will only be returned (between July 1-31, 2027) for enrollees who submitted completed verification forms by the deadline

Enrollees who fail to submit verification forms by the deadline will be disenrolled from Medical Assistance and capitation payments for those enrollees will cease effective April 2026, subject to enrollee appeal rights

Removes outdated statutory language referencing the 2013 withhold rate of 4.5% while retaining the existing 3% performance-based withhold and 5% performance target withhold provisions