Good news! Yesterday, the Minnesota Senate approved SF 694, the health insurance reinsurance program, by a vote of 39 to 28.
Thanks to all of the MIIAB members who contacted their legislators in favor of this legislation which is critical to the stability of the individual health insurance market—your participation played a key role in yesterday’s victory.
SF 694 now moves to the DFL controlled House, where it is likely to meet more resistance, with opponents arguing that the Legislature needs to act on more comprehensive proposals to address the availability and affordability of health insurance.
Stay tuned for more updates and opportunities to support this important legislation and to help preserve the private health insurance market!
Here are some additional details about the debate on the Senate Floor
Bill sponsor Senator Gary Dahms (R) argued that this legislation is necessary to continue a program that has successfully stabilized the individual health insurance market. He pointed out that prior to it's creation, premiums in the individual markets were rising quickly and that in a number of counties in the state were there were no health plan's offering individual coverage. Since 2017, individual premiums have stabilized and individuals now have a choice of at least two health plans in each county.
Opponents, led by Senators Erin Murphy (DFL) and John Marty (DFL) pressed the case that the reinsurance program is providing a financial benefit to health insurers at a time when they are earning record profits and paying large salaries to their CEO's. They also argued that while the program has stabilized the individual market, it has done nothing to improve health outcomes or address affordability. An amendment was offered to limit the salaries of CEOs of health plan's participating in the program to that of the President of the United States. That amendment was ruled not germane to the legislation and therefore was not considered. Both Marty and Murphy support a Minnesota Care buy-in.
The bill passed with 3 DFLers and the two Independents joining all 34 Senate Republicans in supporting the bill.
