Session Update: Senate Passes Plan to Maintain Premium Affordability

The three percent of Minnesotans who purchase their health insurance coverage through the individual market would see the program that aids premium affordability extended through 2022, under a bill passed by the Minnesota Senate Monday, March 1. The Minnesota Premium Security Plan, also known as reinsurance, was created in 2017 to stabilize the individual insurance marketplace as some areas of Minnesota faced steep premium increases or few to no coverage options.

Senator Gary Dahms, R-Redwood Falls, author of SF 694, reminded members that the extension would complete the five-year federal waiver the state received to implement the program while acknowledging that more work needs to be done to provide affordable health care to Minnesotans. “Let’s keep in mind that Minnesota doesn’t have the structure at this point to go to a single-payer program, and so we need to be making sure that we can do the best we can,” he said.

DFL lawmakers expressed frustration with the status quo of Minnesota’s health care coverage options and with the program extension, arguing that the state needs a more comprehensive approach to providing and paying for the health care needs of residents. “If we think about where we’re at right now, what this bill is doing is, once again, sending millions of dollars to the health insurance industry for them to do the job that they’re supposed to do,” said Senator Erin Murphy, DFL-St. Paul.

SF 694 passed by a vote of 39-28.