On Thursday, the Senate Commerce Committee focused on the successful Minnesota Premium Security Plan, known as “reinsurance” around the Capitol. Reinsurance lowers the cost of the individual market health insurance plans by covering some of the more expensive care costs for people in the individual market. The program keeps the individual health insurance market stable, improves access to providers, and has proven to lower costs.

The committee hearing started with a presentation for the Minnesota Department of Commerce. The agency provided an overview of reinsurance and its importance. The full presentation is available here.

Next, Senator Gary Dahms (R – Redwood Falls) presented his reinsurance extension legislation, Senate File 333. This bill provides a continuation of Minnesota’s reinsurance program by appropriating $512 million from the state’s general fund to the Premium Security Plan account in fiscal years 2026 and 2027. The transfer is a one-time allocation, and the program will be subject to oversight and reporting for effectiveness.

“In 2017, I carried the bill that started the reinsurance program,” said Senator Dahms. “Back in 2022, I championed legislation to provide a 3-year extension of this successful program. Reinsurance has proven results of lowering insurance costs for Minnesota consumers. It is crucial that this program is extended as it will ensure continued access to affordable healthcare, stabilize the insurance market, and keep costs manageable for consumers.”

Senate File 333 passed out of the Senate Commerce and Consumer Protection Committee with bipartisan support and now moves to the Health and Human Services Committee.