Senate Advances Health Care Reinsurance Plan

On a 37 to 29 vote, the Senate advanced a plan Wednesday, March 15, that would help protect health insurance companies in the individual market from paying exorbitant health coverage costs through a public reinsurance program. Sponsored by Senator Gary Dahms, GOP-Redwood Falls, the bill is intended to lower premiums for Minnesotans securing their health insurance in the individual market.

The bulk of Senate debate on the measure focused on an amendment offered by Senator Tony Lourey, DFL-Kerrick, which would allow Minnesotans in the individual market to purchase their health insurance through an expanded MinnesotaCare program, which currently helps low income Minnesotans with incomes above the eligibility threshold for Medicaid. MinnesotaCare is funded by a tax on health care providers and Minnesota hospitals. The amendment failed on a 33-33 vote.

Under the bill approved by Senate, the state would reimburse insurance companies for 80 percent of their costs from claims exceeding $45,000, up to $250,000 per person in the individual marketplace. The projected cost over the next biennium is $600 million dollars, to be funded largely through transfers from the Health Care Access Fund and the budget reserve.