ST. PAUL — Financial help for Minnesota residents paying massive health insurance premium hikes has cleared the Minnesota Legislature and been signed by Gov. Mark Dayton.

The Minnesota Senate approved a bill Thursday using $325 million in state funds to cut monthly premiums by 25 percent. Minnesota Public Radio News reports the House passed it 108-19 later Thursday.

Rep. Jeanne Poppe, DFL-Austin, praised the passing of the bill in a statement Thursday.

“The reforms in the bill will have to be monitored judiciously. We defended the protections for those with pre-existing conditions originally under threat thanks to residents of Minnesota who made their voices heard on that issue.”

Poppe was also pleased a provision allowing agricultural cooperatives to form joint self-insured plans remained in the final bill.

“This is a creative solution that should help ease some of the burden on Minnesotans affected by the premium increases,” she said in the statement.

Meanwhile Republicans, like Rep. Peggy Bennett of Albert Lea, hinted at the move being the first step in health care reforms.

“This bill provides badly needed relief, but also has key reforms in it that will increase competition and choice, and preserve access for those receiving life-saving care,” she said in a statement. “Obviously, this is just a first step. We’ve got lots of work to do in the area of health insurance and health care, but I’m pleased we were able to get this done in the first month of session.”

The state support is only available to shoppers who buy coverage on their own and don’t get federal subsidies. Those consumers are paying between 50 percent to 67 percent more in premiums this year.

State officials estimate 125,000 residents will start getting the relief in April.

Many Democrats objected to an included measure that allows for-profits to start selling coverage in Minnesota.