The Minnesota House voted Monday to approve the expansion of the state's Medical Assistance program to include more low-income and disabled people, MPR reports.
The move comes after the federal government promised to cover the full cost of new enrollees through 2016, saving the state millions in health care costs.
If approved, 35,000 more low-income Minnesotans will be eligible for subsidized health insurance by adjusting the income limits for the program.
The new income limit cutoff for a childless adult would be about $15,300 instead of the present $11,500, according to the Associated Press.
Residents enrolled in MinnesotaCare would be shifted into Medical Assistance.
The bill will got to the Democratic-led Senate, which could vote later this week. Gov. Mark Dayton also supports the bill.
Republicans have raised concerns about the federal government's commitment to pay.
The state would be required to pay a portion of the costs beginning in 2017. By 2020, the state's share would be 10 percent.