MINNEAPOLIS (AP) — State and federal officials have come up with a way to preserve Minnesota’s subsidized health care for the working poor when the federal health overhaul takes effect.

Around 130,000 Minnesotans are currently enrolled in MinnesotaCare, which helps cover premiums for people who make too much to enroll in Medicaid but not enough to afford regular insurance. However, the program as currently structured conflicts with the federal health law, meaning many participants were facing the prospect of sharply higher premiums.

The state Department of Human Services says Wednesday’s announcement from its federal counterpart means at least 38,000 and possibly more than 90,000 people will get to stay in MinnesotaCare with affordable premiums. Many of the rest are expected to qualify for an expanded Medicaid program awaiting approval from the Legislature.

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