On Monday, the Minnesota Senate voted to pass legislation extending Minnesota’s successful reinsurance program for another year. Extending the program ensures insurance rates in the individual market will remain stable, and without any additional cost to the taxpayers. The measure passed with bipartisan support. Senator Mark Johnson (R-East Grand Forks) voted for the program extension and released the following statement:
“Over the past four years, the reinsurance program has helped stabilize health insurance premiums on the individual market for many Minnesota families, individuals, and small business owners. For the sake of the individual market in Northwest Minnesota, it is important we keep this successful program running,” said Johnson. “Back in 2017, we had some insurance premiums increasing by almost fifty-percent and entire counties in Northwest Minnesota with one or even zero insurance providers. I am glad I supported the program back in 2017 to help rescue Northwest Minnesota families from skyrocketing premiums and am hopeful this successful program can continue.”
In 2016 insurance premiums for the individual market increased by double digits, as high as 49%, due to changes from the Affordable Care Act. Furthermore, many counties only had one insurance company to choose from. Minnesota continues to have some of the lowest rates in the country, every county has at least two providers, and a new provider has started offering plans in the state. The original $542 million for operations was offset by federal funding and the federal dollars will continue through 2022 with this extension.
The Governor’s proposed budget did not include reauthorizing the state’s successful reinsurance program. The state risks destabilizing the individual health insurance market, drastic increases in premium costs, and could lose approximately $90 million in federal money if the program expires. Reinsurance has been proven so effective it is being implemented in several other states across the nation.
