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RELEASE: Rep. Baker Statement on Lower Health Care Costs

Wednesday, October 3, 2018

ST. PAUL, MN—On Tuesday, the Minnesota Department of Commerce released final rates for the 2019 individual insurance market. For the second consecutive year, reforms have proven to help reduce or hold flat individual market health insurance rates after years of double-digit increases following the implementation of Obamacare in Minnesota.

All five of the carriers on the individual market are lowering premiums for 2019, with average rates dropping between 7.4 percent and 27.7 percent. For example, a family of four from Grand Rapids could save $6,348 and a 61-year-old from the Twin Cities could save $4,296 next year as a result of Republican reforms compared to two years ago. The individual market serves Minnesotans who buy health insurance on their own, not through an employer or the government.

“The recent news is another positive sign that our reforms are working to make health insurance more affordable in our area and around the state,” said Rep. Dave Baker, R-Willmar. “We know there’s still more work to do to offset the mistakes of Obamacare, but we’re headed in the right direction by lowering costs and increasing care options in Greater Minnesota.”

From 2014-2017, average rates increased by double digits every year, including up to 67 percent for 2017. Thanks to reforms enacted in 2017, individual market rates for 2018 remained flat or were reduced for most Minnesotans on the individual market. The Minnesota Department of Commerce confirmed last year and this year that without Republican reforms, rates would have risen by 20 percent or more.

Republicans also pushed for and successfully passed other key reforms to increase the number of health care options for Minnesotans by expanding agriculture co-op plans, and allowing more insurers into the market, a move that is already paying dividends for seniors on Medicare and employees. Democrats pushed unsuccessfully during the 2018 session to eliminate these health plan options.

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