Today, Senate Republicans passed legislation to extend the successful reinsurance program in Minnesota for three years. Extending the program ensures insurance rates in the individual market will remain stable, and without any additional cost to the taxpayers.
“Reinsurance works,” said Senator Paul Gazelka (R-Nisswa). “It has been effective in stabilizing the market and proven to be cost-effective for the state. Insurance premiums were down 20 percent last year, after several years of double-digit increases. When I look back on the priorities we made to control health care costs, I’m proud to say we have delivered on that promise.”
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.
“The reinsurance bill made insurance more affordable for farmers, individuals, and small business owners,” Senator Gary Dahms (R-Redwood Falls) author of the bill said during the floor discussion. He added, “Additionally, rural counties were facing no options for insurance, and since passing reinsurance, every county has at least one option for coverage, if not more.”