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Governor Dayton’s First Budget Proposal Would Reduce Health Insurance Premiums by 25 Percent for 125,000 Minnesotans

1/3/2017 8:58:19 AM

Governor Dayton has pursued health insurance premium relief for Minnesotans for more than two months, since first proposing the idea for a possible special session

The Governor’s budget proposal would reduce the average premium increase from 55 to 16 percent for affected Minnesotans, and could take effect by March 1st if enacted today
 
ST. PAUL, MN – Governor Mark Dayton today released his first budget proposal of the 2017 legislative session, calling for a 25 percent reduction in health insurance premiums for the more than 125,000 Minnesotans facing significant increases in the individual market. 
 
“For more than two months, I have proposed this relief, so that 125,000 Minnesotans can better afford the health care they need and deserve,” said Governor Dayton. “I urge the legislature to agree to health insurance premium relief immediately, so that we can get help to the Minnesotans who need it most.”
 
The Governor’s plan would reduce the average premium increase facing Minnesotans in the individual market from 55 percent to 16 percent. Under the Governor’s plan, some families could save as much as $594 per month on their health insurance premiums. If approved today, Minnesotans could start seeing relief by March 1st, with subsidies being retroactive, to reimburse the high costs some Minnesotans are already paying. Governor Dayton is calling for legislators to approve this relief by this Friday, January 6, 2017. 
 
Governor Dayton first proposed a premium relief plan in October. But legislative leaders were unable to come to agreement on the plan, leaving more than 125,000 Minnesotans facing rising health insurance premiums. If the Governor’s proposal had been passed during a special session, it could have taken effect immediately in January, and would have given Minnesotans some certainty about what their premium costs would be, and what they could afford.
 
About Governor Dayton’s 25 Percent Health Insurance Premium Reduction
As part of his 2017 Budget for a Better Minnesota, Governor Dayton is calling for a 25 percent health insurance premium reduction to address rising health insurance premiums for the 125,000 Minnesotans expected to purchase health insurance on the individual market in 2017 who do not receive federal tax credits. 
 
The Governor’s direct relief would reduce average 2017 rate increases from 55 percent to 16 percent for individuals with incomes over $47,520 and families of four with incomes over $97,200, but who did not receive federal tax credits.
 
How 25 Percent Relief Would Impact Different Premium Scenarios 
Below, see how the Governor’s proposed 25 percent health insurance premium relief would impact different premium scenarios for a silver plan.
 
 

Premium Scenario

Monthly Premium, 
Current Projected*

Monthly Premium, 
Dayton Plan

Monthly Projected Rebate

Family of four (two 50-year-old parents and two kids) in Rochester

$2,378

$1,784

$594

Family of four (two 50-year-old parents and two kids) in Duluth

$1,934

$1,451

$483

Family of four (two 50-year-old parents and two kids) in the Metro Area

$1,652

$1,239

$413

55-year-old in Rochester

$968

$726

$242

55-year-old in Duluth

$775

$581

$194

55-year-old in the Metro Area

$638

$479

$159

40-year-old in Rochester

$555

$416

$139

40-year-old in Duluth

$444

$333

$111

40-year-old in the Metro Area

$366

$275

$91

[FACT SHEET] See how Governor Dayton’s plan would reduce health insurance premiums by 25 percent for more than 196,000 Minnesotans. [Link]

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