MEDIA STATEMENT
TakeAction Minnesota Statement on Reinsurance Deal
ST. PAUL, MINN—The state Senate passed a reinsurance deal off the floor tonight. The bill is headed to the state House. TakeAction Minnesota released the following statement:
“The reinsurance bill voted out of conference committee today was rightly opposed by both Health and Human Services Chairs Tina Liebling and Jen Schultz. It’s a bad deal for Minnesotans.
Extending reinsurance means spending over $1 billion since 2017 to prop up a failing health care system while doing nothing to address out of control health care or prescription drug costs
Since 2017, reinsurance has cost Minnesota approximately $500 million in federal cuts to MinnesotaCare.
The three-year reinsurance deal only protects MinnesotaCare for one and a half years. It does not guarantee the Health Care Access Fund will be held harmless from federal cuts.
Reinsurance subsidizes a market that is over 50% Bronze plans with deductibles so high people cannot afford the health care they need while doing nothing to address the underlying costs of coverage and care.
The House DFL has proposals to lower health care costs from the MinnesotaCare Buy-In to a Prescription Drug Affordability Board passed last year. Without additional policy, reinsurance truly is a $700 million bridge to nowhere. Minnesota can do better. We thank legislators who are voicing concerns and voting no.”
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TakeAction Minnesota is a statewide, multiracial grassroots organization advancing justice and equity through organizing, policy, and campaigns. Offices are located in St. Paul, Duluth, and St. Cloud.
