On Monday, the Senate passed bipartisan legislation to extend Minnesota’s successful reinsurance program for another year. Extending the program ensures insurance rates in the individual market will remain stable and without any additional cost to the taxpayers. 

The original $542 million for operations was offset by federal funding, and the federal dollars will continue through 2022 with this extension. Reinsurance has been proven so effective it is being implemented in several other states across the nation.  

“After years of skyrocketing premium increases, reinsurance has brought stability to the individual health insurance market that Minnesotans critically needed,” Senator Rich Draheim (Madison Lake) said. “While the program has provided critical relief to countless families, farmers, small business owners, and people with preexisting conditions across the state, it is not the final solution to fixing our health care woes. As we continue through this session and term, I will work to support healthcare solutions that not only lower our cost of care but increase access to doctors and vital services for all Minnesotans.”

In 2016 insurance premiums for the individual market increased by double digits, as high as 49%, due to the Affordable Care Act’s changes. Furthermore, many counties only had one insurance company to choose from. Minnesota continues to enjoy some of the lowest rates in the country, every county has at least two providers, and a new provider has started offering plans in the state. 

Governor Walz, in his proposed budget, did not include reauthorizing the state’s successful reinsurance program. The state risks destabilizing the individual health insurance market, drastic increases in premium costs, and could lose approximately $90 million in federal money if the program expires.