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RELEASE: Average MNsure Premium Increase Reaches Historic High

Thursday, September 1, 2016

Skyrocketing health care costs will hurt Minnesota families

 

ST. PAUL, MN—Health insurance premium rates through the failed $400 million MNsure website have reached historic levels. Preliminary rate increases were released through Healthcare.Gov on Thursday afternoon. Minnesota families and individuals who buy insurance on their own could pay an average increase around 60 percent, the highest average increase of any year since Governor Dayton and Democrats established MNsure.

"Every year Minnesotans are reminded of the broken promises Democrats made when they brought MNsure to Minnesota three years ago," said Speaker Kurt Daudt (R-Crown). "Once again, families who were told they would save $500 per year will instead see their health plans get more expensive."

Thursday’s preliminary rate increases are on top of increases of up to 17 percent and 49 percent in the past two years. In the first two years of MNsure, the average cost of a modest health insurance policy has gone up $2,760 per year in Southeast Minnesota, $4,800 per year for a family of four in the Twin Cities, and even more in other parts of the state[1]. Over 75 percent of people who buy health insurance on their own do not receive any financial assistance from MNsure[2].

Earlier this year, Democrats proposed hiking the MNsure Tax by $40 million[3] and raising health care costs by $1 billion by permanently restoring the sick tax[4].

"It's unfortunate that the only answers from Minnesota Democrats have been a billion dollar increase in health care taxes and eliminating health care options for working families. Minnesotans deserve solutions that reduce health insurance prices and ensure competition throughout the state," added Rep. Greg Davids (R-Preston) Co-Chair of the MNsure Legislative Oversight Committee.

This year, Davids chief authored legislation to reduce the MNsure tax which would have saved families at least $22 million over the next three years[5]. The measure passed the House, but was vocally opposed by DFL legislators.

“While Democrats offer tax increases to make your health care more expensive, Republicans are fighting to lower your health care costs and increase your health care choices,” concluded Speaker Daudt.

The preliminary rates remain under review by the Minnesota Department of Commerce to be finalized later this month.

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[1] Comparison of Health Care Coverage & Plan Rates for 2014, MN.gov, September 6, 2013 & Health Care Coverage & Plan Rates for 2016. MN.gov, October 2015

[2] Board of Directors Meeting, July 20, 2016 (Approx. 256,000/300,000 in individual market do not receive credit)

[3] See House File 2414, March 8, 2016 & the Health Care Financing Task Force Final Report, January 28, 2016

[4] See House File 2490, March 10, 2016 & the Health Care Financing Task Force Final Report, January 28, 2016

[5] 2016 House Journal Page 7846