The truth about rising MNsure rates

On October 1, the Minnesota Department of Commerce announced that MNsure health insurance premiums will rise 2026, with increases ranging from about 7% to 31% depending on the plan, region, and age of the enrollee. Small group plans will also face premium hikes, though smaller ones.
With hundreds of thousands of Minnesotans once again facing higher health insurance premiums, many of my colleagues on the other side of the aisle have been quick to point fingers at events happening (and not yet happening) in Washington. But the reality of the situation is the main drivers of these increases can be found in the decisions made by leaders right here at home.
During their two years of full control, Democrats imposed a series of new mandates and restrictions that have made healthcare much more expensive. Many of us warned this is what would happen, but our concerns were rebuffed.
Instead of focusing on policies that could lower prices and give providers more flexibility, they spent our entire $18 billion surplus, increased state spending by 40% practically overnight, and raised taxes by $10 billion. It left Minnesota facing a projected $6 billion deficit at the start of 2025. Had we not been so reckless in 2023 and 2024, the legislature would have been in a better position to keep costs down and help families afford their daily lives, instead of looking at cuts to important programs.
When searching for the causes, you could even go all the way back to the Affordable Care Act, which has failed to live up to its big and bold promises. The ACA forced Minnesota to shut down its successful high-risk insurance pool known as MCHA. That program was funded by a 2% provider tax and was working quite well for Minnesota families. The tax remains in place, but the money has effectively become a $2 billion slush fund for government spending. Meanwhile, healthcare costs continue to increase.
If there is one small silver lining, it’s that the 2026 rate increases would have been much higher, but this year we were able to pass an extension of Minnesota’s successful reinsurance program, which I strongly support. Without reinsurance, premiums would have risen by nearly 50%, according to the Department of Commerce. Instead, the average increase will be closer to 22%. That is still painful for families, but it also shows reinsurance continues to be one of the most effective tools we have to keep costs in check.
We have seen what works and what does not. Next session, we need to take a hard look at the mandates and restrictions that have contributed to these rising premiums and focus on policies that truly make health care more affordable for Minnesotans.
Senator Carla Nelson represents District 24 which includes all of Dodge County and parts of western Olmsted County.