Senator Weber Supports Successful Reinsurance Program, Protecting Minnesota Families from Rising Health Care Costs

Today, the Senate passed legislation to extend Minnesota’s successful reinsurance program for another five years. Extending the program ensures insurance rates in the individual market will remain stable for Minnesota families. 


“”In 2016, Minnesota faced the collapse of its individual insurance market, but Senate Republicans managed to save it by implementing reinsurance,” Senator Bill Weber (R-Luverne) said. “The program stabilized costs, which led to a significant decrease in premium rates across the state and ensured Minnesotans would always have options. We helped farmers, small businesses, and families when the state was on the brink of losing individual health care coverage. This is a proven program that delivers results, and I will continue to support it to keep Minnesotans’ health care costs as low as possible.”

In 2016 insurance premiums for the individual market increased by double digits, as high as 49%, due to changes from the Affordable Care Act. Additionally, some counties had just one health care insurance plan available to them. Senate Republicans acted in 2017 to lower premiums and increase competition among providers by passing Minnesota’s reinsurance program. Following reinsurance implementation, costs stabilized, and every county in Minnesota has at least two health care plan options to choose from.  

The reinsurance program has proven to be extremely effective at lowering costs for consumers. Over the first three years after the implementation of the program, premiums decreased by 25.5 percent in Minnesota as compared with an increase of 25.9 percent for the United States overall. The program has led to Minnesota enjoying some of the lowest health insurance rates in the country. Additionally, reinsurance has proven so successful that several other states have created programs since 2017. 

Last year the program faced a cut due to opposition from Governor Walz. The costs picked up by the program were reduced from 80% to 60%, which led to the largest annual increase in premiums since the program’s inception. The Senate Republican bill would return the coinsurance level to 80% which will save the average enrollee $130 per month compared to $100 at the 60% level. Without the program, the Center of Medicaid Studies suggests premiums could rise as much as 36% in the individual marketplace in 2023. According to the Department of Commerce, it is estimated 15,000 Minnesotans will lose health insurance without the program.