Minnesota’s reinsurance program was initially established in 2017 and helps stabilize high premiums in the ACA individual insurance market. The governor’s proposal would shift the responsibility for the state share of reinsurance to insurers and require the creation of a fund that covers high-cost procedures such as premature births and cancer treatments for people on the individual market.
The proposal would also increase the state’s HMO tax from 0.6% to 1.25% of a company’s total premium revenue. The new insurance plan comes after House Republicans passed a budget resolution Feb. 25 directing the Energy and Commerce Committee, which oversees Medicare and Medicaid, to cut $880 billion in federal spending between fiscal years 2025 and 2034.
At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 2–3 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.
