TEFRA is No Longer a Burden to Special Needs Families in Minnesota

Effective July 1, 2023, parents in Minnesota are no longer required to pay a Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) fee.

TEFRA is a federal law allowing states to establish programs that provide health care services to children with disabilities, including intellectual and developmental disabilities (IDD). It also allowed for these programs to charge a monthly premium – a “TEFRA fee” – to families whose income exceeded a certain threshold, which could range from hundreds to thousands of dollars monthly.

The TEFRA fees charged to some families were close to the cost of the services for which they qualified. The burden of TEFRA fees on a family’s budget, along with the bureaucracy and paperwork required for the program, led many families to not take advantage of benefits that they desperately needed, or to only get a portion of them paying out of pocket.

Increasing Community Inclusivity

The new Minnesota law from HF 1434 that eliminated TEFRA fees will help families access more of the services, support and equipment necessary for the care of their children with disabilities without financial pressure. This is an important step for community inclusivity and equity.

More Information and Support

Family Navigation Services at LBSA can be a guide for families with members that have intellectual and developmental disabilities who are looking for resources or going through a transition in life. Schedule a free Family Navigation Services consultation now.

Sam Gershman

Sam Gershman

Family Navigation Specialist

Main: 507-645-8866 Direct: 507-581-7078