Minnesota lawmakers seek to extend health insurance waiver

If Minnesotans don’t have access to health insurance, they often use emergency rooms for their health care. If they can’t afford that care, it ends up as uncompensated care absorbed into a hospital or clinic’s budget.

In Greater Minnesota, that leads to residents left without any health care options because hospitals and clinics cannot afford to stay open, said Rep. Tim O'Driscoll (R-Sartell).

Minnesota has a state innovation waiver from the U.S. Department of Health and Human Services for its Minnesota Premium Security Plan, which reduces premiums for residents who buy their insurance on the individual marketplace. The state needs to reapply for a waiver to begin in 2028 and O’Driscoll is sponsoring HF827 to do so.

Without the waiver, premiums in the individual health insurance market could increase by 25%, potentially causing people to drop their health insurance. The reinsurance program impacts about 180,000 Minnesotans and legislators owe it to them to do what they can to not increase their premiums, O’Driscoll said.

“I am asking for your support for your neighbors, for those who use Fairview, those who use the rural hospitals, the sickest of the sick who cannot find coverage anywhere else.”

Approved, as amended, by the House Commerce Finance and Policy Committee Tuesday, the bill was sent to the House Health Finance and Policy Committee.

The bill also includes a provision to fund the final two years of the state’s current waiver through 2027. There’s several ways the state can fund it and legislators are tasked this session to come to an agreement on one of the options.

The bill calls for $504.8 million to be transferred from the General Fund to the Premium Security Plan account in fiscal year 2026. Although the General Fund is listed as the funding source in the bill, O’Driscoll said that may change by the end of session.

Rep. Steve Elkins (DFL-Bloomington) offered, then withdrew, an amendment that laid out a proposal from Gov. Tim Walz to assess members of the Minnesota Comprehensive Health Association to pay for the cost of it. The association includes about 300 members, but not all of them are health insurance providers.