Officials warn federal changes, expiration of enhanced premium tax credits will sharply raise individual-market premiums as open enrollment begins

Commissioner Grace Arnold of the Minnesota Department of Commerce told the subcommittee on federal impacts that the department’s review of insurer filings shows large rate increases in the private individual market for 2026 and that federal policy changes are a key driver.

“On average, we are seeing a 21.5% increase” in the individual market for plan year 2026, Commissioner Grace Arnold said. She told lawmakers that small-group plans are seeing smaller but still significant increases, and that those figures are gross averages because individual premiums vary by age, geography and eligibility for premium tax credits.

Why it matters: MNsure, the state’s health insurance marketplace, said the scheduled expiration of the enhanced premium tax credits at the end of the calendar year will push many households to higher net premiums and could make coverage unaffordable for some. Libby Cullum, chief executive officer of MNsure, said the combination of rate hikes, the tax-credit sunset and…