ST. PAUL, MN - Governor Tim Walz today discussed his plan to hold health insurance providers accountable, save taxpayer dollars, and lower health insurance costs. The proposal would shift the responsibility for the state share of reinsurance to insurers rather than taxpayers.

Governor Walz’s proposal comes as the Trump Administration pushes for $880 billion in cuts to federal Medicaid through 2034, which would shift costs to states and put millions of Americans, including thousands of Minnesotans, at risk of becoming uninsured.

"As President Trump looks to fund tax cuts for the wealthy by cutting health care for millions of Americans, we're going to save Minnesotans money by making sure the insurance industry is paying their fair share," said Governor Walz. "We’re helping ensure that families can afford their life-saving medication and emergency care."

In 2022, Governor Walz signed legislation to extend Minnesota’s reinsurance program – a program created to help stabilize high health insurance premiums in the individual insurance market. This session, the Governor’s proposal would shift the responsibility for the state share of reinsurance to insurers rather than taxpayers. Under this plan, insurance companies will be required to create a fund that covers high-cost procedures, like premature births or cancer treatments, for people on the individual market.

The Governor’s plan also increases the surcharge currently levied on health maintenance organizations from 0.6% to 1.25% of total premium revenue, to ensure large health care corporations pay their fair share.