Dayton Plans to Provide a 25 Percent Health Insurance Premium Rebate
Premiums have been on the rise for those enrolled in plans under the Affordable Care Act
On Thursday, October 27, Governor Mark Dayton announced his detailed plan to provide a 25-percent health insurance premium rebate, in an effort to address rising premiums for the 123,000 Minnesotans expected to purchase health insurance on the individual market in 2017.
The Governor’s plan would provide rebates to Minnesotans, reducing rate increases from 55-percent to 16-percent on average, while reducing monthly premium bills by 25-percent.
Around 2-percent of Minnesotans purchase their insurance policies through the Individual Market and are above the income eligibility for federal tax credits.
For Minnesotans, who make more than $47,520 for an individual or $97,200 for a family of four, and are not eligible for a federal tax credit, the Governor’s direct relief will reduce average 2017 rate increases from 55-percent to a 16-percent increase.
In a statement, Governor Mark Dayton said, “Our Administration drafted this rebate proposal with the following key objectives. One, we have to be able to start it and administer it under sever time constraints. Those realities greatly limit our options.
“Two, the program has to provide immediate financial assistance to the people, who would otherwise face excessive insurance price increases.
“And three, the program can cost no more than the amount of the additional surplus, currently estimated to be $313 million, which under current law, would be added to the existing $1.9 billion Budgeted Reserve Fund, when the next Budget Forecast is released on December 2nd.”
The Affordable Care Act (ACA) does not allow insurers to deny coverage to individuals due to previous or present medical conditions, and insurance companies cannot impose lifetime limits on people’s healthcare needs. The ACA also allows people to keep their children insured under their policies until the age of 26.
How Would Minnesotans Receive the Rebate?:
- Available to these Minnesotans when they pay their monthly premiums to health insurers.
- Administered by the health insurers, who would receive state funding to reduce these consumers’ monthly premium bill by 25-percent form 2017 projections.
- Fastest, most efficient way to keep more money in the pockets of Minnesotans who do not qualify for tax credits.
Click here for more information on Gov. Dayton’s detailed proposal.