Friends and neighbors, 

This week at the Capitol, my colleagues and I in the Senate passed legislation to extend our state’s successful reinsurance program for another five years. This extension will allow insurance rates in the individual market to remain stable for Minnesotan 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 only had one health care insurance plan available. To address this, 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.   

During the first three years after the program was implemented, premiums decreased by 25.5% in Minnesota as compared with an increase of 25.9% for the United States overall. Additionally, reinsurance has proven so successful that several other states have created programs since 2017. 

Last year, this program faced a cut due to opposition from the governor. As a result, the costs picked up by the program were reduced from 80% to 60% – the largest annual increase in premiums since the program’s inception. 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. And without this program, studies suggest 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.

With the rising inflation rates affecting families’ budgets, it’s critical for families to not also be hit with high health care premiums. I am proud to have voted in favor of the reinsurance program extension to ensure affordable health care for Minnesotans. 

Additionally, the Senate also unanimously voted this week to audit the failing Southwest Light Rail project, which is years behind schedule and hundreds of millions of dollars over budget with no end in sight. The project is also under investigation for causing damage to nearby buildings, and concerns with the quality of build of this project have also been raised.

A Senate amendment to the bill increases reporting and accountability, requiring the Metropolitan Council to notify the Legislature whenever the project is expected to be delayed by 6 months or more, or total costs are expected to increase by 5%. 

The lack of transparency by the Metropolitan Council is unacceptable, and the continued delays and rising cost of the project blatantly disregards taxpayer dollars. There needs to be greater oversight. I remain committed to gathering the facts and clarifying the numerous concerns raised, and the audit we just passed will help achieve just that.

The Minnesota House recently concurred on the audit as amended by the Senate. This will now go to the governor to be signed into law.

I want to hear from you, my constituents, on issues that are important to you. Please feel free to reach out to my office with any concerns or ideas you may have. As session moves forward, I will keep your thoughts and concerns in mind as legislation comes before me. You can contact my office at sen.bruce.anderson@senate.mn or 651-296-5981.

Sincerely,

Bruce Anderson