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Committee deadlocks on reinsurance measures after close roll calls
Summary
Lawmakers debated bills to preserve Minnesota's individual-market reinsurance program and to authorize the Department of Commerce to seek a federal waiver. Two related motions failed on 10–10 ties; proponents urged preserving waiver authority while opponents called for more study of financing and long-term costs.
Committee members spent significant time on two related measures designed to preserve Minnesota's reinsurance program and secure the federal waiver that allows the program to operate. The bills addressed both policy language and potential financing mechanisms: House File 3388 included financing (an assessment mechanism) while House File 4106 removed the assessment and sought only to preserve authority to apply for a federal waiver.
Business groups told the committee that reinsurance had been an important stabilizer for Minnesota's individual insurance market. A representative of the Minnesota Business Partnership and a Minnesota Chamber witness cited Department of Commerce estimates the program historically reduced premiums by roughly 20% and that, with the program in place for 2026, premiums were about 47% lower than they would otherwise have been, figures they said justified preserving the program’s waiver authority.
Opponents warned reinsurance is a temporary stopgap and urged waiting for an incoming finance study on long-term mechanisms and alternatives; they also criticized directing public funds toward insurance companies without clearer cost‑benefit evidence. After debate the committee held roll-call votes; one motion on the reinsurance package resulted in a 10–10 tie and failed to advance, and a later motion on the related bill that removed the assessment likewise failed on a 10–10 tie. No reinsurance bill advanced out of the committee at this meeting.
