On 12th Anniversary of the Affordable Care Act, MNsure CEO calls on Congress to extend cost savings for Minnesota families

March 23 marked the 12th anniversary of the Affordable Care Act (ACA), which enacted patient protections that make health coverage fairer and easier to understand, and the financial help that makes it more affordable. With the help of the ACA and MNsure, Minnesota’s health insurance marketplace, Minnesota’s uninsured rate has gone from above 9 percent in 2010 to 4 percent today.

While the ACA helped thousands of Minnesotans access comprehensive health coverage, the 2021 federal American Rescue Plan (ARP) COVID Relief package made the most significant improvements to the law since its inception. In Minnesota, the ARP lowered costs for tens of thousands, and expanded access to subsidies to those who had previously been ineligible. The cost savings made available through the ARP drove the highest enrollment on record for MNsure. Over 134,000 Minnesotans — a 10 percent increase from last year — signed up for coverage for 2022.

“The actions the Biden Administration and Congress took last year to expand federal advanced premium tax credits through the American Rescue Plan have made a huge difference for Minnesotans who buy their health coverage through MNsure,” said MNsure CEO Nate Clark. “More Minnesotans across the state are accessing and maintaining health coverage they can afford. Unfortunately, these cost savings, which have helped so many, will be unavailable in 2023 if Congress does not act again.”

Failure to extend these benefits could increase the out-of-pockets costs of thousands of Minnesotans. MNsure estimates that about 70,000 Minnesotans who currently access premium tax credits through the marketplace will be impacted when the new plan year starts in January, and over 10,500 are estimated to lose access to all of their current financial help.

Without an extension, MNsure estimates that net premium spending may increase by 30 percent to 40 percent — or an average of $1,314 per year for those receiving premium tax credits across the state — and some regions could see even bigger increases. The average increase for Minnesotans in southern Minnesota, from Worthington to Rochester, could see an increase of about $1,500 per year without an extension. Northeastern Minnesota families could see increases of about $1,470 per year.

“On this 12th anniversary of the Affordable Care Act, we’re asking lawmakers to once again support Minnesota families by enacting an extension of these cost savings,” said Clark. “Our hope is that Congress will act soon to extend these benefits beyond the end of 2022 and provide certainty to the thousands of Minnesotans across the state who depend on these expanded benefits to access and maintain the health coverage they need.”