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Section 1332 State Innovation Waiver

About the Minnesota Premium Security Plan 

In 2017, to help stabilize high health insurance premiums in the individual insurance market, Minnesota established a state-run reinsurance program. This program, or the Minnesota Premium Security Plan (MPSP), reduces premiums and increases the affordability of health insurance in Minnesota’s individual health insurance market. As a result of the program, premiums for Minnesotans buying insurance on their own are about 20 percent lower on average than what they would otherwise would have been without reinsurance. 

These lower premiums also lower the amount of money the federal government spends on tax credits provided to people who purchase coverage on MNsure. The federal government passes along these savings to Minnesota to help fund the state’s reinsurance program. 

Reinsurance Program Authority

Minnesota received authority from the U.S. Department of Health and Human Services and the U.S. Department of Treasury to operate a state-run reinsurance program between 2018-2022 via a 1332 waiver. States must reapply to continue this program every five years. In July 2022, Commerce received permission  to continue the Premium Security Plan through 2027. 

Comments on Minnesota’s 1332 waiver extension may also be submitted to

More Information

Persons with disabilities who require reasonable accommodations to participate in the forum should contact Megan Prail at 651-539-1446 or at least five days in advance of the meeting to make appropriate arrangements. Documents can be made available in alternative formats (e.g., large print or audio) by calling 651-539-1446. Persons with hearing loss or speech disabilities may call through their preferred Telecommunications Relay Service.

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