St. Paul, MN — State officials held a press conference yesterday to sound the alarm about dramatic increases in health insurance costs for Minnesotans, driven by recent federal policy changes and the pending expiration of enhanced federal subsidies.

Minnesota Department of Commerce Commissioner Grace Arnold, MNsure’s Senior Director of Public Affairs Erika Helvick Anderson, and State Representative Robert Bierman, Co-Chair of the Health Finance and Policy Committee, shared an urgent message as the state heads into the 2026 open enrollment season: the rollback of enhanced federal subsidies and other harmful provisions in H.R. 1 are directly driving up the cost of insurance and threatening the stability in Minnesota's health care system. 

“The reconciliation bill pushed through by a Republican-led Congress is an attack on the healthcare system that Minnesotans trust and rely on for care,” said Arnold. “Congress and President Trump had an opportunity to extend these additional tax credits and failed to do so. This is a huge step backward for affordability and access to health insurance for thousands of Minnesotans.” 

According to preliminary filings from insurers, Minnesota’s individual market premiums are expected to rise by an average of 16.2% and premiums in the small group market are expected to rise an average of 12.7% — the steepest increases since 2017. The brunt of these rate hikes will fall on middle-class Minnesotans, especially farmers, small business owners, and individuals aged 55 and older. 

Arnold emphasized that while Minnesota extended its bipartisan reinsurance program to cushion the blow, the program is only a temporary measure and is funded by state taxpayers. Without it, premiums would be an estimated 25% higher. 

MNsure’s Erika Helvick Anderson detailed how the expiration of enhanced premium tax credits at the end of 2025 will significantly impact Minnesotans' ability to afford coverage. MNsure estimates that 62% of enrollees will see their costs go up in 2026. Nearly 90,000 Minnesotans will have a higher monthly premium bill, and over 19,500 will lose access to all financial help. 

Helvick Anderson highlighted two real-world examples of how federal inaction will impact families: 

• A couple in their early 60s in Mankato with an income of $89,000 could see premiums rise from under $500 to nearly $2,000 per month—an increase of more than 300%.  
• A family of three in Ramsey County earning $112,000 could face a $170 monthly increase by losing eligibility for tax credits.

Additionally, recent federal rules will cut benefits, increase red tape, and reduce enrollment windows, threatening to push even more Minnesotans out of coverage altogether. 

“Minnesotans recognize the importance of having health coverage, but these changes could mean that insurance for many working families will suddenly be out of reach,” Helvick Anderson stated. “Some could decide to go without coverage altogether – which could lead to more uncompensated care at our hospitals, an older and sicker risk pool remaining, and higher costs of care for all.” 

Representative Robert Bierman echoed concerns about the consequences of the Trump administration’s policies. 

“Make no mistake, the increasing cost of health insurance is directly connected to H.R. 1 and the failure to extend the advanced premium tax credits,” said Bierman.  

Bierman stressed that the Minnesota Legislature acted in bipartisan fashion to protect residents by extending the state’s Reinsurance Program. But he was clear: state efforts are not enough without federal partnership. 

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Minnesota Department of Commerce
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