The looming double whammy is a significant health care issue in Minnesota, but unfortunately it has been kept under the radar this election season. It should be front and center for voters. Although only about 3% of Minnesotans purchase insurance on the individual health market, it is a critical access point for entrepreneurs, consultants, farmers, and other self-employed individuals.
Extending reinsurance or finding alternatives will be an urgent issue for lawmakers, and voters should be aware of this as elections for the Minnesota House of Representatives take place this fall.
Reauthorizing, or possibly making permanent, enhanced Affordable Care Act subsidies should also be a top priority for federal lawmakers early next year. Voters should also keep this in mind, as all seats in the U.S. House of Representatives and one seat in the state’s Senate will be up for grabs in November.
Rep. Jeanne Shaheen (D-Wis.) and Rep. Tammy Baldwin (D-Wis.) have successfully introduced legislation to make the enhanced subsidies permanent. Minnesota’s two senators, Amy Klobuchar and Tina Smith, are both co-sponsors. “We can’t go back. Millions of people in this country rely on these tax credits to keep their premiums low, and for people who are going to the doctor and trying to stay healthy. , eliminating the tax credit would be a pain,” Smith said this week. “We need to expand these credits and give families peace of mind.”
But the upcoming election and packed agenda create uncomfortable uncertainty about doing so. Cost is also a concern, with a June 24 Congressional Budget Office analysis saying that making the subsidy expansion permanent “would increase net direct spending by $275 billion over the 2025-2034 period.” concludes. At the same time, the analysis concludes that: Permanent subsidies would mean “an average of 3.4 million more people would enroll in health insurance each year from 2025 to 2034 than under current law.”
Additional MCHP data increases the need for state and federal action. If the subsidies are not extended and the state Legislature does not reauthorize the reinsurance program, the insurance group estimates that this combination will cause premiums to rise more than 50% in Minnesota in 2026. “Without action, as many as 93,000 Minnesotans will be uninsured and unable to pay their premiums by 2026,” according to a Randland study provided by the city council.
