I'm in Rochester, and planning a homebirth for my next pregnancy. I'm using a midwife out of northern Iowa (about an hour south of Rochester).
As far as insurance, I have Health Partners, too. I'm assuming yours is an HMO, like mine. Since it's an HMO, they only cover in-network providers at their hospitals. It's not like a PPO, where you have in-network and out-of-network providers. The only time they cover out-of-network is if it's an emergency and you're nowhere near a HealthPartners facility. When I called and asked about it, they said they accept Cigna-affiliated facilities as an out-of-network provider if you're out of town, but that's it. You can always call and argue, but HMOs are set up differently than PPOs. You can always send in a reimbursement request, but I doubt it would be covered.
Now, I believe there are a few CNMs (certified nurse midwives) in the Cities who do homebirths. THAT may be a way around the system. But you'd have to call and ask. DON'T tell them you're having a homebirth, just tell them the name of your provider (if you're going with a CNM) and ask if she is covered by HealthPartners. If they bug you about the facility, just say you haven't decided yet, and want to know if she is covered by HealthPartners. That's the only thing I can think of.
For a list of Minnesota midwives, check here: http://mfmidwifery.org/
and here: http://www.minnesotabirthnetwork.com/
It's probably too late for this now, but you can always stash away in your flexible spending account the money you need for the homebirth; at least then it's not taxed ...