Dayton plots big budget with public health insurance option - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
January 24, 2017 Newswires
Share
Share
Post
Email

Dayton plots big budget with public health insurance option

Associated Press

ST. PAUL, Minn. (AP) — Democratic Gov. Mark Dayton on Tuesday proposed massive expansions to education options, health insurance offerings and more this year.

Major portions of Dayton's wish list will be whittled down or erased entirely by Republicans who control the Legislature. Republicans say they'll push for lower spending and to put more of a $1.4 billion budget surplus toward tax relief. The governor's nearly $46 billion proposed budget was largely overshadowed by his collapse during Monday night's State of the State address and his announcement Tuesday that he was recently diagnosed with prostate cancer.

Here's a look at some of Dayton's ideas:

BY THE NUMBERS

Dayton's proposed budget clocks in at $45.8 billion, a roughly 10 percent increase from the state's current budget. His first offer kicks off the push-and-pull with the Legislature as they try to set the next two-year budget.

Much of the new money would go toward education, with $75 million set aside to expand a new preschool program to more schools and an additional $371 million to increase the state's per-pupil funding formula by 2 percent in each of the next two years. Republican legislative leaders said there were things to like in the governor's proposal but said they were dismayed by the topline number.

"Do I think 10 percent is too much? Yes," Republican House Speaker Kurt Daudt said. "I probably think 5 percent is too much."

The budget work won't begin in earnest until after lawmakers get a final update on the state's financial position in late February. The Legislature has to pass a new budget by late May.

HEALTH INSURANCE

Dayton's announcement of his most dramatic proposal was derailed by his collapse Monday evening.

His prepared remarks for the State of the State, which he finished out Tuesday, laid out his plan to create a public health insurance option by allowing every Minnesota resident to purchase MinnesotaCare, one of the state-sponsored programs for low-income families.

If passed, residents could start buying state-negotiated plans in 2018. State officials say it wouldn't require ongoing state funding, but would need $12 million in startup costs. They estimate it would double MinnesotaCare enrollment to more than 200,000. Dayton pitched it as an answer to the skyrocketing costs and instability for shoppers who buy coverage on their own.

"Why would we deny our citizens that chance to get a better deal?" Dayton said.

It would be the first so-called public option in the country, and would require federal approval even as President Donald Trump's administration looks to dismantle the Affordable Care Act. Some top Republicans called Dayton's idea a non-starter.

"Starting another potential government program at that time doesn't seem like a great idea," Peppin quote.

REHASH

Dayton's proposal will bring familiar debates back to the Minnesota Legislature.

Lawmakers are well-versed in Dayton's preschool initiative, having approved a slimmed-down version that put out $25 million for schools in impoverished districts to set up early education programs. Dayton urged lawmakers that more funding was needed to help thousands more of Minnesota's youngest learners.

Also, he's reviving his push for a gasoline tax — another non-starter for Republicans, who say it's unnecessary — to fund a major bridge and road repair effort. His proposal calls for a per-gallon tax increase of 10 cents would help improve infrastructure across the state.

Older

The Latest: Insurers propose alternative to federal mandate

Newer

The Latest: Governors ask House to continue Medicaid help

Advisor News

  • The overlooked retirement security risk that must be addressed
  • What advisors should know about hedge funds in retirement planning
  • Retirement control is top success measure for middle class, ACLI says
  • Industry groups applaud House passage of Financial Exploitation Prevention Act
  • Younger workers more likely to be eligible for a retirement plan after changing jobs
More Advisor News

Annuity News

  • Malibu Life Holdings Completes Acquisition of TruSpire, Establishing Malibu USA and Accelerating Entry into the U.S. Retail Annuity Market
  • Why job boards are failing insurance agencies
  • MassMutual Ranks No. 100 on the 2026 Fortune 500® List
  • What’s fueling record annuity growth?
  • Jackson Named InvestmentNews 2026 Annuities Provider of the Year
More Annuity News

Health/Employee Benefits News

  • Former city DPW director wants opportunity to 'defend my actions' in light of separation agreement
  • CDPHP, MVP Health Care among insurers seeking rate increases
  • How health insurers get a free pass to deny coverage from a 52‑year‑old law meant to protect worker pensions
  • Reports from Capital One AG Describe Recent Advances in Managed Care (Factors Affecting Medical Appointment Adherence among Adolescents and Young Adults with Kidney Disease: A Longitudinal Cohort Study): Managed Care
  • Studies from University of Alabama Further Understanding of Neurology (Understanding stroke caregiving in rural contexts: a qualitative study of family caregivers’ cultural values, coping behaviors, and technology use): Health and Medicine – Neurology
More Health/Employee Benefits News

Life Insurance News

  • NAIFA praises House committee approval of Clarity for Compensation Act
  • PHL Variable liquidation pushed out to 2027, Connecticut regulators say
  • ‘Recession-Proof’ Insurance Is Trending. Safety Net or Scam?
  • Winged Keel Group Expands National Presence and PPLI Leadership, Welcomes SBSI, Inc. (dba NFP Insurance Solutions)
  • MassMutual Ranks No. 100 on the 2026 Fortune 500® List
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

A MYGA for Clients Hesitant to Commit to One Long-Term Rate
First-year certainty. Annual rate updates. Get the CurrentRate® MYGA Sales Kit.

Elite Networking & Insights Await at the Event of the Year
The industry's premier conference for leaders driving what’s next in financial services.

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet