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Amanda Tinsley
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Amanda.Tinsley@house.mn.gov
News Release
O’DRISCOLL: STATE’S REINSURANCE PROGRAM LOWERS HEALTH INSURANCE PREMIUMS FOR 2026
ST. PAUL – The Minnesota Department of Commerce has finalized rates for health insurance carriers for the upcoming year, noting that premiums will rise by 20% for policies sold on the state’s individual marketplace in 2026.
State Representative Tim O’Driscoll (R-Sartell), co-chair of the Minnesota House Commerce Finance and Policy Committee, said the premium increases would have been much worse if the legislature had not continued the state’s successful reinsurance program.
“Although no one is excited about a 20% premium increase, it could have been more than a 40% jump without Minnesota’s reinsurance program,” O’Driscoll said.
People who purchase health insurance on the state’s individual marketplace (MNsure) do not receive group policy pricing, as they are not receiving their insurance through an employer. Because of this, they likely pay the highest premium prices being offered.
O’Driscoll said the reinsurance program was developed to provide stability and predictability to volatile pricing in the health insurance market. It does this buying down the higher rates initially authorized by the Department of Commerce, allowing consumers to purchase their health insurance at a lower rate.
Since reinsurance took effect, O’Driscoll said rates have stabilized and the number of carriers offering coverage has grown, providing shoppers with a better selection of health insurance alternatives.
The current authorization for reinsurance expires at the end of the year 2027.
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