Minnesota Health Insurance Rates to Rise in 2026 Amid ACA Tax Credit Expiry

The Minnesota Department of Commerce announced significant health insurance premium increases for 2026, with individual market rates rising by 22% and small group plans increasing by 14%. These hikes are driven by rising healthcare costs and the expiration of enhanced Affordable Care Act (ACA) tax credits. This announcement coincides with a federal government shutdown partly tied to disputes over healthcare funding, including the end of ACA tax credits and Medicaid funding issues.

Approximately 163,000 Minnesotans participate in the individual market while 200,000 are in the small group market. State officials including Governor Tim Walz and MNSure leadership have urged Congress to extend the enhanced tax credits to mitigate the financial impact on consumers. However, with open enrollment beginning November 1 and premiums effective January 1, the timeline for adjustments is constrained.

MNSure estimates nearly 90,000 Minnesotans could experience premium increases if Congress does not extend the ACA credits. While technical adjustments to the rates are possible if credits are extended, there is limited time to implement changes prior to open enrollment, potentially causing confusion among consumers and stakeholders.