Minnesota Faces Health Insurance Premium Hikes Amid Shutdown

Hundreds of thousands of residents in Minnesota are grappling with significant increases in health insurance premiums as the enrollment period for the state’s health insurance marketplace opened on November 1, 2025. The average rise in premiums is largely attributed to the expiration of tax credits associated with the Affordable Care Act, commonly referred to as “Obamacare,” along with changes in Medicaid reimbursement policies under the administration of former President Donald Trump.

The escalating costs have become a focal point of the ongoing federal government shutdown, which has stalled negotiations over tax credits and Medicaid reimbursements. While Democrats have insisted that any resolution must restore these financial supports, Republicans advocate for a “clean resolution” that separates health insurance subsidies from the broader budget discussions.

Grace Arnold, the Minnesota Commerce Commissioner who oversees insurance rates, and Libby Caulum, CEO of MnSure, articulated their concerns during an interview with WCCO’s Esme Murphy. Both officials attribute the premium hikes to the federal government impasse, stating that the expectation among insurers is that fewer individuals will maintain coverage. Arnold noted, “The people who tend to stay in coverage are sicker,” highlighting the potential implications for those requiring medical care.

Impact on Minnesotans and Coverage Options

The premium increases are particularly severe for those purchasing health insurance through the MnSure platform. Approximately 187,000 individuals who buy individual policies are facing an average increase of 22%. Additionally, around 202,000 Minnesotans covered by small group plans will experience an average rise of 14%. The disparities among insurance providers are notable, with Medica imposing the largest individual market increase at 30%, while Quartz Health Plan is reporting the smallest increase at 7%.

In light of these developments, Caulum encouraged residents to explore their options on the MnSure website, stating, “You can come to our website, MnSure.org, look at all those options. You can switch plans if you find a better deal for you and your family.”

The open enrollment period will run until January 15, 2026. To ensure coverage begins on January 1, individuals must enroll by December 15, 2025; otherwise, their coverage will commence on February 1, 2026.

As the situation evolves, Minnesotans are urged to remain informed about their health insurance options and to pay close attention to the ongoing political negotiations that could significantly impact their coverage and costs.