St. Paul, MN – 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 taxpayers. The measure passed with bipartisan support. Senator Julia Coleman (R-Chanhassen) voted for the program extension and released the following statement:

“The Minnesota premium support reinsurance program has helped stabilize out of control health care premiums for many Minnesota families, small businesses, and individuals. I am glad to vote to continue this successful program,” said Coleman. “Moving forward, I am committed to building off this success and working with my colleagues to lower health care costs and improve access for all Minnesotans.”

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.