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 Justin Eichorn (R-Grand Rapids) voted for the program extension and released the following statement:

“The innovative Minnesota reinsurance program has been a huge win for small businesses, individuals, and families who buy health insurance through the individual market,” said Eichorn. “In 2017, we saw skyrocketing health insurance premiums and this successful program has helped stabilize premiums and create greater choice for Minnesotans. More work is being done to lower health care costs, but this program has been a huge positive step in the right direction.”

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 now has 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.