This week, Senator Zack Duckworth (R-Lakeville) joined in the Senate’s bipartisan passage of legislation that extends Minnesota’s successful reinsurance program for another five years, securing stable insurance rates in the individual market for Minnesota families. 

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.  

“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 consumers and ensuring that Minnesotans have access to some of the lowest health insurance rates in the country. By renewing this proven program, we can preserve affordable health care,” said Duckworth.

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. Additionally, reinsurance has proven so successful that several other states have created programs since 2017. 

The bill would return the coinsurance level to 80% which will save the average enrollee $130 per month compared to $100 at the 60% level. Without the program, the Center of Medicaid Studies suggests premiums could rise as much as 36% in the individual marketplace in 2023. According to the Department of Commerce, it is estimated 15,000 Minnesotans will lose health insurance without the program. 

The bill now awaits action by the House of Representatives.