ST. PAUL, MN – Joined today by Minnesotans struggling with rising insurance premiums, Governor Mark Dayton and DFL legislators urged Republicans to pass an immediate and workable premium relief bill to ensure that all Minnesotans can afford quality health care. After nearly three months of Republican inaction, health care delayed is quickly becoming health care denied for tens of thousands of Minnesotans in dire need of health insurance premium relief.

 

“For nearly three months, I have proposed this relief, so that 125,000 Minnesotans can better afford the health care they need and deserve,” said Governor Dayton. “I urge the legislature to agree to health insurance premium relief immediately, so that we can get help to the Minnesotans who need it most.”

 

In October, Governor Dayton proposed a 25 percent health insurance premium rebate to address rising premiums for Minnesotans who purchased health insurance on the individual market in 2017, and who are not eligible for a federal tax credit due to their income.

 

“We are here to be accountable to the promise we made to help Minnesotans afford their health insurance. Today more than 125,000 Minnesotans are waiting and hoping for emergency premium relief,” said State Sen. Tony Lourey. “Real people need to make major decisions in just a few days about whether or not they will be able to afford health insurance this year. We will have failed Minnesotans if the relief we all agree is critical, is stalled for yet another week.”

 

“Minnesota families need immediate premium relief,” said State Rep. Melissa Hortman. “We owe it to Minnesotans to pass relief now and thoughtful – not reckless – reform to stabilize the market later.”

 

If the Governor’s proposal had been passed during a special session, it could have taken effect immediately in January. It would have given Minnesotans relief from the rising premiums that put health care out-of-reach. Now, Minnesotans are running out of time as they make health care decisions before enrollment concludes at the end of January.

 

“Minnesotans cannot wait. The bills the Republicans support will not get emergency relief to Minnesotans until 2018, at the earliest. Denying Minnesotans premium relief until 2018 is denying them health care,” said State Sen. Jeff Hayden. “We agree, changes to our health insurance system are needed, but those changes aren’t more important than getting Minnesotans the premium relief they need—now.”

 

“Minnesota families continue to pay too much for health insurance, caught in the middle of an unstable system that leaves too many on the hook for premium increases,” said State Rep. Erin Murphy. “In addition to the plan we've offered to provide immediate relief to Minnesota families on the individual market, we have to look ahead and confront the real challenges of creating a modern health care system that delivers affordable, high-quality care to all Minnesotans.”

 

In contrast with Governor Dayton’s plan which creates no additional costs or delays, the Republican proposal would cost Minnesota taxpayers an additional $20 million in implementation expenses. And it would further delay premium assistance for another year, while Minnesota Management and Budget set up a new bureaucracy to process applications, verify taxpayer information, and mail payments to qualifying Minnesotans.

 

Minnesotans who purchase insurance on the individual market have experienced rate increases between 50 percent and 66 percent. Hardworking Minnesota taxpayers, who are not eligible for a federal tax credit, urgently need immediate relief to afford health insurance and avoid treatment delays. Read what Minnesotans are saying.

 

Sheri and Vince Sexton run the Irish Ridge Dairy in Millville. The dairy has been in their family since 1859. And they have always purchased their own health insurance. Last year, the Sextons paid $1,580 a month for insurance coverage. This year, their premium has increased almost 40 percent to nearly $2,200 a month, with a $13,000 deductible. Despite the cost, Sheri and Vince cannot afford to go without health insurance. Vince is recovering from leukemia. And last year, Sheri was diagnosed with stage II breast cancer, resulting in a $100,000 surgical bill.

 

“Going without health insurance wasn’t an option, after we were both diagnosed with cancer. But as self-employed dairy farmers, we have always purchased our own health insurance,” said Sheri Sexton. “This year, our premiums have increased almost 40 percent to $26,000 a year with a $13,000 family deductible. We can’t afford it, especially after several years of low milk and commodity prices. We ask the Legislature to compromise with Governor Dayton and quickly pass premium relief that takes effect right away.”

 

Under Governor Dayton’s plan, Sheri and Vince would receive financial assistance as early as March 1st. That assistance would total about $6,590 in 2017. However, under the plan being proposed by Republicans in the Minnesota Legislature, the Sextons would wait until 2018 to see relief – and the financial relief they receive could be subject to federal taxes.

 

Tracie Loeffler and John Donaghy purchase health insurance for themselves and their son on the individual market. Tracie is an adjunct professor and John is a self-employed software engineer. Their premium has increased by 62 percent, and at $1,329 per month, now exceeds their monthly mortgage payment. On top of that, Tracie and John’s deductible has increased by 228 percent – from $4,000 to $13,100. Their son needs braces, which they are paying over $6,000 out-of-pocket for over the next two years, because they cannot afford dental insurance.

 

“In 2017, we will be paying over $30,000 out of pocket for healthcare expenses for our family of three, and it is utterly unsustainable. We are taking money out of our savings account to pay for our healthcare – and that is just not right,” said Tracie Loeffler. “We literally cannot afford to wait for premium relief. Our family – and tens of thousands of families just like ours – need help now. We are asking the Legislature to compromise, and quickly pass Governor Dayton’s plan for immediate financial relief.”

 

Under the premium relief plan proposed by Governor Dayton, Tracie and John would receive a 25 percent reduction in their health insurance premium, saving them nearly $4,000 this year. Under the Governor’s plan, Tracie and John would receive financial assistance as early as March 1st. However, under the plan being proposed by Republicans in the Legislature, they would be forced to wait until 2018 to see relief – and the financial relief they receive could be subject to federal taxes.

 

John Christiansen lives in Northeast Minneapolis. For decades, John received health coverage through his employer. But recently, his employer stopped providing health coverage. Now, John purchases his health insurance on the individual market. Last year, he paid $283 per month for his coverage. This year, John’s premium increased by more than 78 percent, to $505 per month. In total, that amounts to more than a $2,660 increase out of his pocket over the next year. He just had surgery, and has a preexisting condition. Because of the Affordable Care Act, John can’t be denied coverage for his condition – but the increasing costs of his premiums have caused an additional financial burden.

 

“For decades, I got great health coverage that I could afford through my employer. But recently, my co-workers and I lost that benefit, and now we have to buy our health insurance on the individual market,” said John Christiansen. “This year, like many Minnesotans, I was shocked to see my annual premium increase by more than $2,660. Having just had surgery, and now with a pre-existing condition, I need high-quality, affordable health coverage I can depend on. But a 78 percent premium increase is a tough pill to swallow. I urge the Legislature to pass Governor Dayton’s plan for immediate premium relief, because tens of thousands of Minnesotans just like me need help now – not next year, now.”

 

Under Governor Dayton’s plan, John would receive financial assistance as early as March 1st. That assistance would total about $1,515 in 2017. However, under the plan being proposed by Republicans in the Minnesota Legislature, he would wait until 2018 to see relief – and the financial relief he receives could be subject to federal taxes.

 

[FACT SHEET] See how Governor Dayton’s plan would immediately reduce health insurance premiums by 25 percent for more than 125,000 Minnesotans. [Link]