Minnesota committee advances reinsurance bill, debate centers on how to pay for it

Rep. Driscoll's House File 837 to extend Minnesota's reinsurance program was advanced out of the House Commerce, Finance and Policy Committee on March 4, 2025, with the committee voting to refer the bill, as amended, to the Health Finance and Policy Committee.

The bill's author, Representative Driscoll, presented the measure and an A1 amendment that updates the bill's fiscal numbers. The committee heard more than a dozen testifiers representing insurers, labor, business groups and providers, and engaged in extended discussion about several competing financing options for continuing reinsurance, including a governor-backed industry assessment that would levy fees on health insurers.

The reinsurance program reimburses a portion of very large claims in Minnesota's individual market to reduce premiums for enrolled consumers. Supporters said the program has reduced premiums substantially and stabilized the market; opponents said directing roughly a half-billion dollars through the general fund to insurers is a poor long-term solution and pressed for an industry assessment to fund the program instead.

Dan Andreessen, with the Minnesota Council of Health Plans, told the committee that "Minnesota's reinsurance program has been a resounding success in stabilizing the market and reducing…