Senator Goggin, Minnesota Senate approve plan to continue successful insurance affordability program
The commitment comes after the reinsurance program has delivered on its promise of improving access and affordability for health care consumers
Minnesota Senator Mike Goggin (R-Red Wing) and his Senate Republican colleagues on Monday approved legislation to extend 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.
In his recent budget proposal, Governor Tim Walz did not reauthorize this successful 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.
“It wasn’t all that long ago that our individual health insurance market was on the brink of collapse,” said Sen. Goggin. “The reinsurance program we created stabilized the market and helped thousands of Minnesotans afford health care coverage. It was so successful it has been used as a model in other states. After all the success it has had, eliminating it would be a big mistake. As we manage the Covid pandemic, it’s more important than ever that Minnesotans have dependable, affordable insurance.”
The original $542 million for operations was offset by federal funding and the federal dollars will continue through 2022 with this extension. Reinsurance has been proven so effective it is being implemented in several other states across the nation.
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 enjoy 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 reform, which was first implemented in 2017, has been lauded by both local media and national news outlets and used as a model by a number of other states.