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TIL CreativesMinnesota's state reinsurance program helps reduce the hit from an expected 100% rise down to about 21.5% for ACA marketplace enrollees Minnesota residents purchasing health insurance through the Affordable Care Act (ACA) marketplace should prepare for significant premium increases averaging 21.5% in 2026. This surge follows the expiration of enhanced federal premium tax credits provided during the pandemic and rising healthcare costs that have outpaced inflation. Although the nationwide average premium increase may double, Minnesota's state reinsurance program helps reduce the hit from an expected 100% rise down to about 21.5% for ACA marketplace enrollees.Colin Planalp, Senior Research Fellow at the State Health Access Data Assistance Center, explains that Minnesotans will see their monthly premiums rise by roughly $177 due to diminished federal assistance and escalating healthcare expenses. READ MORE: November 1 countdown: Insurance costs about to spike for millions of Americans - details to knowThe state reinsurance program, created in 2017, plays a crucial role in keeping increases comparatively moderate. Despite this, many Minnesotans face tough choices as higher insurance costs compete with other household expenses like rent and car payments.Live EventsThe Minnesota Commerce Department approved these rate hikes after insurers submitted requests reflecting growing costs in pharmaceuticals, medical care, and risk adjustments. Julia Dreier, Deputy Commissioner of Insurance, emphasized that approving the increase was necessary to prevent insurers from operating at a loss amid rising healthcare costs.The expiration of enhanced subsidies combined with the anticipated end of state reinsurance funding could lead to even steeper increases, potentially up to 55%, and the loss of coverage for approximately 93,000 Minnesotans, as warned by chief executives of Minnesota's major nonprofit health insurers.Currently, 187,000 Minnesotans buy individual policies through the MNsure marketplace, where the average premium increase is noted at 22%. Additionally, 202,000 Minnesotans with small group plans through MNsure face an average increase of 14%.Overall, unless Congress acts to extend or restore enhanced federal premium tax credits, Minnesotans may confront a challenging healthcare market with higher premiums and reduced coverage options in 2026.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onMinnesota health insurance premiumsMinnesotahealth insuranceAffordable Care Actreinsurance programfederal premium tax creditshealthcare expenses (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onMinnesota health insurance premiumsMinnesotahealth insuranceAffordable Care Actreinsurance programfederal premium tax creditshealthcare expenses(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless Explore More Stories123
