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. 2024 Jun 3;11(3):2.
eCollection 2024 Jun.

Assessing the Impact of Individual Market Reforms in Minnesota

Preethi Rao, Federico Girosi, Christine Eibner

Assessing the Impact of Individual Market Reforms in Minnesota

Preethi Rao et al. Rand Health Q. .

Abstract

Starting in 2026, Minnesota could experience disruptions to its health insurance marketplace caused by the anticipated sunset of federal premium subsidy enhancements, made available through the Inflation Reduction Act of 2022, as well as the expiration of state funding for its reinsurance program. With reduced premium subsidies, fewer people might enroll in marketplace plans, which could lead to higher premiums and market instability. The expiration of reinsurance, which partially offsets insurers' claims costs for people with high expenditures, could exacerbate these issues. In this study, researchers estimate the effects of implementing state-funded subsidies to bolster Minnesota's marketplace given these anticipated changes. They also study the impact of replacing the state's Basic Health Program with a similarly structured marketplace plan. The policy reforms that researchers consider were developed by the Minnesota Council of Health Plans and share similar goals with legislation recently proposed by Minnesota policymakers, such as HF 96, a bill authorizing study of a public option that also proposed to temporarily enhance marketplace subsidies.

Keywords: Affordable Care Act; Health Insurance Markets; Minnesota.

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Figures

Figure 1
Figure 1
Individual Market Enrollment and Uninsurance in Minnesota Across Scenarios, 2025 and 2026
Figure 2
Figure 2
Statewide Average Individual Market Annual Premiums for a 40-Year-Old Nonsmoker Across Scenarios, 2025 and 2026
Figure 3
Figure 3
State Spending on Individual Market and MinnesotaCare BHP Enrollees Across Scenarios, 2025 and 2026
See this image and copyright information in PMC

References

    1. Centers for Medicare & Medicaid Services Basic Health Program. December 18, 2023. https://www.medicaid.gov/basic-health-program/index.html , “. ,” webpage, undated. As of . :
    1. Corlette Sabrina, Lucia Kevin, Kona Maanasa States Step Up to Protect Consumers in Wake of Cuts to ACA Cost-Sharing Reduction Payments The Commonwealth Fund blog. October 27, 2017. , “. ,” . , .
    1. Keith Katie Congress Extends Enhanced ACA Subsidies Health Affairs October 11, 2022;41(11) , “. ,” . , Vol. , No. , . - PubMed
    1. “Premium Security Plan Account: Governor's Revised Recommendations Minnesota Legislative Reference Library. ,” . , undated.
    1. Public Law 111–148 Patient Protection and Affordable Care Act. March 23, 2010. , , .

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