News & Updates

Comparing Health Care Premium Relief Proposals

by | Jan 6, 2017 | Health Care

This week, both Governor Dayton and the Republican-led legislature released proposals to help Minnesotans deal with spikes in health care premiums. Governor Dayton originally proposed his plan in October 2016, while the GOP plan is new.

Both proposals spend about $300 million on premium relief, and include a 25 percent rebate. That’s about where the similarities end.

Governor Dayton’s plan would give a 25 percent premium rebate to all Minnesotans who purchase coverage on the individual market and whose income is above the federal tax credit eligibility, while the GOP plan would institute income caps on relief after three months. There are approximately 123,000 people in Minnesota who purchase health insurance on the individual market and don’t qualify for federal subsidies.

Under Dayton’s proposal, the rebate would be administered by health insurers, who would receive funding to reduce qualified consumers’ premiums, while the GOP plan would be administered by Minnesota Management and Budget.

 

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