Maple Grove, MN—House Republicans are sounding the alarm over a looming health care cost crisis following Friday's news that final MNsure rates will rise up to 67 percent and that the Minnesota Department of Commerce has approved enrollment caps limiting Minnesotans' access to federal financial assistance and ability to find health care coverage. Friday's rate increases are on top of increases of up to 17 percent and 49 percent in the past two years. Over 75 percent of people who buy health insurance on their own do not receive any financial assistance from MNsure [1], undermining MNsure's claims that tax credits will offset massive rate increases.
“It’s disappointing to see Minnesotans paying more because of MNsure’s failure,” said Rep. Dennis Smith, R-Maple Grove. “We’ve been working to reform this broken program, but legislative Democrats refuse to play ball.”
Earlier this year, Democrats proposed hiking the MNsure Tax by $40 million [2] and raising health care costs by $1 billion through permanently restoring the sick tax [3]. This year, Republicans authored legislation to reduce the MNsure Tax which would have saved families at least $22 million over the next three years [4]. The measure passed the House, but was vocally opposed by DFL legislators.
On Friday, Republicans sent a letter to Governor Dayton demanding immediate action on a law signed by him in 2015 requiring the Department of Commerce to seek a federal waiver that would allow Minnesotans to access tax credits off of the MNsure exchange.
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[1][1] Board of Directors Meeting, July 20, 2016 (Approx. 256,000/300,000 in individual market do not receive credit)
[2][2] See House File 2414, March 8, 2016 & the Health Care Financing Task Force Final Report, January 28, 2016
[3][3] See House File 2490, March 10, 2016 & the Health Care Financing Task Force Final Report, January 28, 2016
[4][4] 2016 House Journal Page 7846