Federal policy changes mean significant health insurance premium increases for many Minnesotans

The Minnesota Department of Commerce announced today that significant health insurance rate hikes are ahead for Minnesota's individual and small group plans for the 2026 coverage year. Under the finalized rates, Minnesotans covered through the individual market face an average rate increase of 21.5%, while those in small group plans face a 14.2% increase.

Critically, without the state's extension of a program called reinsurance, health plans estimated that Minnesotans in the individual market would have faced a 69% rate increase.

MNsure Chief Executive Officer Libby Caulum stressed that the enhanced premium tax credits have a demonstrated track record of success: increased affordability, coverage gains, and driving down Minnesota's uninsured rate to a new record low. "We hope that Congress will take swift action to make the enhanced tax credits permanent, because every Minnesotan who has been able to stay covered with this financial help is another Minnesotan able to access the health care they need," said Caulum.

"In Minnesota, we acted quickly to protect families and small businesses, and it made a big difference," said Minnesota Department of Commerce Commissioner Grace Arnold at a State Capitol news conference. "We extended a reinsurance program that offsets high-cost claims and stabilizes premiums in the individual market. As steep as these rate increases are, without reinsurance, they would have soared to nearly 70%."

Plans and premiums shift every year—but this year, Minnesotans could feel it more than ever, added MNsure CEO Caulum. In addition to rising rates, the end of enhanced federal savings will have a noticeable impact on the bottom line for many Minnesotans. "Without enhanced premium tax credits, nearly 90,000 Minnesotans will see an increase in what they pay for coverage," Caulum said. "That is why it is more important than ever for Minnesotans to take the time and make a plan to review their coverage, talk to an expert, and check their options at MNsure.org."

MNsure is Minnesota's official health insurance marketplace. MNsure provides a one-stop shop where individuals and families who don't have access to affordable health insurance through their jobs can apply, compare plans and enroll in health coverage.

Even if Congress rolls back extra savings, many Minnesotans can still access financial help through MNsure to lower their health care costs. For example:

A 30-year-old in Marshall earning $34,000 per year can cut their monthly premium for a bronze plan in half, from $448 to $216 per month, after tax credits.

A couple in their early 60s in Detroit Lakes with an annual income of $63,000 can enroll in a gold plan and save $1,500 per month (over $18,000 annually) with tax credits.

A family of four in Dakota County with a combined income of $105,000 can save over $500 per month (about $7,000 annually) on their silver plan with tax credits.

On average, MNsure estimates eligible households will save about $600 per month on their health insurance premiums in 2026. More scenarios are available in the MNsure plan and premium scenarios packet (PDF).

With the open enrollment period approaching, state agencies urge Minnesotans to review their health plan options early, seek assistance, and be prepared for possible changes in their coverage or costs.

For more information about plan options and enrollment resources, visit MNsure or contact the Minnesota Department of Commerce.