ST. PAUL, MN –Senate Republicans warned the 2022 preliminary health insurance rate increases demonstrate a clear need for a continued reinsurance program to provide stability in the individual market. The largest preliminary increases proposed were from UCare at 13.2 %, and HealthPartners at 11.3%. Not far behind was Medica at 9%.

“The new rate release confirms what we’ve been saying all along: if we want to provide relief for Minnesotans a full investment in reinsurance works,” Sen. Michelle Benson, Chair of the Senate Health and Human Services Committee said.“Gov. Walz’s plans to end reinsurance will hurt people across the state who rely on the individual market, and with the program slated to end in 2023 it is imperative he joins the Senate Republicans and extend and fully fund this successful program. Minnesota has a long history of maintaining a stable and affordable health insurance system and the work legislative republicans have done to repair the damage of the Affordable Care Act, including reinsurance has worked for consumers. We know what works, let’s get this done.”

“These preliminary rates remind me of the mess Obamacare made of the individual market; massive double-digit increases that happened in 2016 could be the reality once again, ”Senate Majority Leader Paul Gazelka said.“We have one year of reinsurance set and Senate Republicans will keep working towards a second year to offset the individual market from unstable increases. COVID costs are certainly going to affect rates, but it’s a reminder that when the government offers healthcare for free, someone else is always going to pay.”

Minnesota’s individual market saw huge increases that nearly led to its collapse before 2017. Republicans, holding legislative majorities in the House and Senate in 2017, successfully implemented reinsurance to stabilize the market. Since then, the individual market has actually seen a decrease in the cost of premiums.

Continuing reinsurance requires additional funding and requesting a waiver from the federal government for 2023, moves that House and Senate DFL and the Walz administration have opposed.