Minnesota’s Premium Security Plan, the state-based reinsurance program that has successfully stabilized and reduced premiums in Minnesota’s individual health insurance market, is in jeopardy of being discontinued. NFIB has been a strong voice for saving this critical plan.
The House DFL majority caucus and Governor Walz’s administration are pushing for the state to discontinue the fifth and final year of the reinsurance program that was created through a federal waiver. Instead, they are looking to the availability of federal tax credits for those buying insurance in the individual market although they are temporary and end in 2022.
It is estimated that up to 50,000 individuals could be ineligible for the federal tax credits and will likely receive large premium increases if the reinsurance program is ended. Also, insurers have estimated that if the reinsurance plan is not retained, individual market rates will increase by 25% or more for everyone in 2022 making health insurance unaffordable for many individuals. NFIB is pushing hard in the current special session to save this critical program. The special session which just convened is expected to last about 10 days.