The Minnesota Department of Commerce has announced significant increases in health insurance rates for 2026, impacting individuals enrolled in MNsure, the state’s health insurance marketplace. Under the new rates, those covered through the individual market—specifically, Affordable Care Act plans—will experience an average increase of 22%. Meanwhile, small group plans will see a 14% rise in costs.
The rate increases are largely attributed to escalating healthcare expenses and the impending expiration of enhanced tax credits under the Affordable Care Act (ACA). According to data from the Minnesota Department of Health, approximately 163,000 individuals are enrolled in the individual market, while around 200,000 are part of the small group market.
The announcement coincided with the recent shutdown of the federal government, which has been partly fueled by ongoing disputes regarding healthcare funding, including the expiration of ACA credits and proposed cuts to Medicaid. Governor Tim Walz and health officials in Minnesota previously held a press conference urging Congress to act quickly to extend these vital tax credits.
Libby Caulum, CEO of MNsure, emphasized the importance of these credits, stating, “We hope that Congress will take swift action to make the enhanced tax credits permanent, because every Minnesotan who has been able to stay covered with this financial help is another Minnesotan able to access the healthcare they need.” This statement highlights the critical role these tax credits play in maintaining coverage for many residents.
The Department of Commerce traditionally announces health insurance rates on October 1 each year, just ahead of the open enrollment period that begins on November 1. The new premiums will take effect on January 1, 2026, coinciding with the expiration of ACA credits.
As Caulum pointed out, if Congress does not act to extend the ACA credits before the end of the year, nearly 90,000 Minnesotans could face increased monthly premiums. She noted that MNsure is prepared to make technical adjustments if necessary, but time is limited. “As soon as the rate release happens, there’s a whole host of things that MNsure does to get ready for open enrollment,” she explained, stressing the urgency to avoid confusion among enrollees.
The substantial increases in rates underscore the ongoing challenges facing the healthcare system in Minnesota and across the United States. As policymakers grapple with funding and coverage issues, the impact on residents remains a pressing concern.
