Minnesota Lawmakers Aim to Extend Reinsurance Program

Bill seeks to continue stabilizing individual health insurance market as key legislators depart

Published on Mar. 5, 2026

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Minnesota lawmakers are working to extend the state's reinsurance program, which helps offset high-cost insurance claims and lower premiums for residents who buy individual health plans. However, the upcoming departure of key legislative leaders who are well-versed on the program raises concerns about maintaining that institutional knowledge.

Why it matters

The reinsurance program has been crucial in keeping individual health insurance premiums affordable in Minnesota, lowering them by 47% this year. With the expiration of federal premium tax credits, continuing the reinsurance program is seen as vital to stabilizing the individual insurance market going forward.

The details

A new bill, HF3388, would extend aspects of the reinsurance program so the legislature has options for the program in 2027. If the bill isn't passed, lawmakers warn that individual premiums will 'go up substantially.' The reinsurance program was created nearly a decade ago to keep health insurance more affordable for people who buy plans on the individual market, including early retirees, people in transition, and those unable to access employer-based coverage.

  • The Minnesota Premium Security Plan, or reinsurance program, was created nearly a decade ago.
  • The reinsurance program lowered premiums by 47% this year.
  • Minnesota will need to reapply for the state innovation waiver for its reinsurance program next year.
  • HF3388 would direct the Department of Commerce to apply for another waiver for the program by Dec. 31, 2026.

The players

Rep. Tim O'Driscoll

Co-chair of the House Commerce Finance and Policy Committee and sponsor of HF3388, which would extend aspects of the reinsurance program.

Dan Endresen

Senior director of policy and government affairs at the Minnesota Council of Health Plans.

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What they’re saying

“It means that new people will be assuming those roles and that institutional knowledge, which is probably close to 70 years of knowledge plus or minus, closer to 60, is walking out the door.”

— Rep. Tim O'Driscoll, Co-chair, House Commerce Finance and Policy Committee (mn.gov)

“Reinsurance lowered premiums by 47% this year and the expiration of the federal enhanced premium tax credit necessitates the continuation of the reinsurance program to stabilize the market.”

— Dan Endresen, Senior Director of Policy and Government Affairs, Minnesota Council of Health Plans (mn.gov)

What’s next

The House Commerce Finance and Policy Committee has laid HF3388 over for possible inclusion in an omnibus bill. If the bill is not passed, lawmakers warn that individual health insurance premiums in Minnesota will 'go up substantially'.

The takeaway

As key legislative leaders with deep expertise on Minnesota's reinsurance program depart, lawmakers are working to extend the program to maintain stability in the individual health insurance market. Continuing the reinsurance initiative is seen as crucial to keeping premiums affordable for residents who buy their own coverage.