ST. PAUL –Minnesota Management and Budget (MMB) Commissioner Myron Frans has assessed the Premium Assistance Program and determined there will be sufficient appropriated funds to continue providing the full 25% subsidy to eligible Minnesotans through the end of 2017. 

“Our goal was to provide immediate relief to eligible Minnesotans from rising health care premiums, and to date over 105,000 people have seen this discount on their monthly invoice. I consider that a huge success,” MMB Commissioner Myron Frans said. “The Premium Assistance Program is a first of its kind effort for Minnesota: A collaboration between the state, the Governor, the Legislature, and the health plans, aimed at providing immediate relief to Minnesota families. This discount is having a real impact on people throughout the state, and we can now say that there is enough money to maintain a 25 percent subsidy for all eligible Minnesotans through the end of 2017.”

According to MMB data, the average savings for a single person receiving the subsidy is $155.26 per month. The average savings for a family of four receiving the subsidy is $421.36 per month.

According to the Commissioner’s assessment, the Premium Assistance Program is expected to spend less than $200 million through the end of the year to reimburse health insurance companies for providing the premium subsidy to eligible Minnesotans. MMB has currently made reimbursement payments in the amount of $54,775,026.29. An additional review of the program’s appropriation will take place as part of the November forecast, where the Commissioner is required to certify the extent to which appropriations exceed obligations for the Premium Assistance Program.

The Premium Assistance Program is made possible by a $312 million dollar investment by Governor Mark Dayton and the Minnesota Legislature. That amount was determined by projections based on 2015 and 2016 insurance market enrollment. The program provides eligible policy holders with a 25 percent discount on their insurance premiums throughout 2017. The program is open to Minnesotans who are enrolled in the individual insurance market, who fulfilled their monthly premium payment, are not participants of any Minnesota public health care programs, and do not receive federal subsidies through an advance premium tax credit on their monthly bill.

Contact: Keith Hovis, Minnesota Management & Budget
Director of Communications
651-259-3666, Keith.Hovis@state.mn.us