Minnesota Health Insurance Premiums Jump 20% for 2026, Reinsurance Program Prevents Steeper Hike

(KNSI) — Policyholders are likely experiencing sticker shock after the Minnesota Department of Commerce finalized rates for health insurance carriers for 2026, showing an increase of 20% for policies sold on MNsure, the state’s individual marketplace. The jump, however, could have been worse.

The Minnesota State Legislature earlier this year voted in favor of continuing the state’s reinsurance program. The plan was introduced in 2017 to help stabilize high health insurance premiums on the individual market. It does this by buying down the higher rates initially authorized by the Department of Commerce, allowing consumers to purchase their health insurance at a lower rate. As a result, premiums for those buying insurance on their own are about 20% lower on average than what they otherwise would have been without the program.

State Representative Tim O’Driscoll (R-Sartell), co-chair of the Minnesota House Commerce Finance and Policy Committee, said that while no one’s happy about a 20% increase, it could have been 40% without the continuance of the reinsurance program.

The current authorization for reinsurance expires at the end of 2027.

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