Supporters tell committee reinsurance extension steadied individual market; panel recommends passage

Senate File 3936, which would extend Minnesota's reinsurance program, drew broad support at the Commerce Committee hearing. Proponents described the program as a deliberate, bipartisan tool that stabilizes the individual insurance market by subsidizing a portion of very high-cost claims.

Jonathan CARTER, director of health-care and commerce policy for the Minnesota Chamber of Commerce, said the reinsurance program was created in 2017 to stabilize a volatile market and has pushed premiums down. "The department of commerce has estimated the program reduces premiums by about 20%," he said.

Dan ANDRESEN (Minnesota Council of Health Plans) and others told the committee the program prevented a projected 47% premium increase for 2026 when federal premium tax credits expired. Witnesses explained the programwhich uses an attachment-point model to subsidize a portion of claims between specified thresholdsis audited and reported quarterly.

Some senators questioned ongoing fiscal commitments and the mechanics of assessments and tax credits that offset premiums; supporters argued that without reinsurance the individual market would face destabilizing premium spikes and provider contraction. After discussion the committee recommended SF3936, as amended, be passed and referred to the Committee on Taxes for fiscal consideration.