MNsure Bulletin: Congress is cutting tax credits

MNsure sent this bulletin at 09/04/2025 12:00 PM CDT

September 4, 2025

A Word from the CEO

Big changes are coming to health insurance in Minnesota.

This summer, Congress and the Trump administration passed a new budget law and a federal rule. The new federal health policies will impact many Minnesotans.

They will make health insurance more expensive, harder to get, and harder to maintain. This includes private health plans sold through MNsure.

We’re here to help you through any uncertainty or confusion. MNsure is doing everything we can to help as many people as possible have the security of health insurance.

That’s why we’re focusing on the federal changes in this edition. We're committed to letting you know when things change and what you need to do to stay covered.

We'll continue to use this newsletter to share updates. Forward this email to friends and family and encourage them to subscribe.

Libby Caulum
MNsure CEO

Health insurance costs are going up. MNsure is here to help!

Congress is Cutting Tax Credits

For the last four years, federal laws made private health plans more affordable. Expanded eligibility for discounts (tax credits) meant more families could get help. And larger amounts meant those families saved more money. Unfortunately, these enhanced benefits are scheduled to end on December 31, 2025.

Congress and President Trump had an opportunity to extend these savings with the “One Big Beautiful Bill Act” — but they didn’t. This means costs will be going up for most of our enrollees in 2026.

Starting January 1, 2026:

There will still be tax credits for people who qualify. But the amount of financial help you can get will be smaller.
Minnesotans who make around $62,000 per year (about $84,000 for a couple) won’t qualify for any tax credits.

Cutting the tax credits will make it difficult for many people to afford their health insurance. There’s still time for Congress to act, but time is running out.

Timberjay: “Phaseout of insurance tax credits will hit many family budgets”

For months, MNsure has been sounding the alarm about how costs will rise next year if Congress doesn’t act. Thousands of individuals, families and small business owners are likely to face higher prices due to federal policies.

About 90,000 Minnesotans will pay more for coverage next year — on average, about $177 more each month, a 54% increase. The increases will be worst for our enrollees in greater Minnesota and those ages 55+.

Many families will face tough choices if they see sudden price hikes of 50% or more. The Timberjay recently reported the sticker shock families in northeastern Minnesota could see:

"Tens of thousands of Minnesotans, including more than 13,000 in the Eighth Congressional District, are facing hefty increases in their health insurance premiums beginning in January.

"On average, the phaseout of the enhanced credit will add about $186 to the monthly health insurance premium for more than 13,000 residents of northeastern Minnesota who buy their coverage through MNsure. Some will face much larger increases, however, notes [MNsure CEO Libby] Caulum, since the phaseout will mean some families will lose their premium tax credit altogether, which could add several hundred dollars, and even more, a month to their insurance costs.”

Dive deeper:

MNsure district-by-district fact sheets about cost increases (PDF)

MPR News: “Minnesota health insurance premiums set to rise in 2026”

MinnPost: “Key ACA subsidy could end, increasing MNsure premiums and ranks of uninsured”

New Red Tape, Eligibility Limits Ahead

Other federal changes roll back previous policies and limit MNsure’s ability to make decisions that we know benefit Minnesotans and help them stay enrolled in health insurance.

For example, federal changes will:

Shorten MNsure’s enrollment period. Fewer days to shop and enroll, beginning fall 2026.
Put new limits on who can get tax credits. Many lawfully present immigrants will no longer qualify for tax credits, starting with plan year 2027.
End automatic re-enrollment for most enrollees. People who need access to tax credits to afford their coverage will need to take extra steps to maintain eligibility, starting with plan year 2028.

Read more about federal changes at mnsure.org/fedchanges