Senator Zach Duckworth (R-Lakeville) joined in the Senate’s bipartisan passage of a three-year extension for the successful Minnesota Premium Security Plan, also known as “reinsurance.” Renewing this program lowers the cost of individual market health insurance plans.

“Minnesota families are already bearing the heavy brunt of inflation in their day-to-day lives. The state’s reinsurance program has been historically effective at lowering costs for folks and ensuring that they have access to some of the most affordable health insurance rates in the country. By extending this program, we can keep health care costs down and ensure stable rates for Minnesotans and their loved ones,” said Duckworth.

The agreement provides three years of funding and is the longest extension the legislature has agreed upon in order to achieve the stability of market rates. In 2016, insurance premiums for the individual market increased by double digits, as high as 49%, due to changes from the Affordable Care Act. Additionally, some counties had just one health care insurance plan available to them. Senate Republicans acted in 2017 to lower premiums and increase competition among providers by passing Minnesota’s reinsurance program. Following reinsurance implementation, costs stabilized and every county in Minnesota has at least two health care plan options to choose from.   

Over time, the reinsurance program has proven to be extremely effective at lowering costs for consumers. Over the first three years after the implementation of the program, premiums decreased by 25.5 percent in Minnesota as compared with an increase of 25.9 percent for the United States overall. The program has led to Minnesota enjoying some of the lowest health insurance rates in the country. Additionally, reinsurance has proven so successful that several other states have created programs since 2017.  

This bill was signed into law by Governor Walz on April 1.