Minnesota commerce commish, MnSure CEO say insurance premium spikes at heart of government shutdown

Hundreds of thousands of Minnesotans are facing sticker shock as the enrollment period for health insurance on the state marketplace opened Nov 1.

The increase is in large part due to the expiration of the Affordable Care Act — or “Obamacare” — tax credits, as well as changes in Medicaid reimbursement under President Trump’s “Big Beautiful Bill.”

The battle over tax credits and Medicaid reimbursements is at the heart of the federal government shutdown. Democrats have refused to vote yes on re-opening the government until credits and payments are restored.

Republicans say they want to negotiate the health insurance subsidies separately, and only pass what they call a “clean resolution.”

The premium increases are staggering for Minnesotans, and affect those who are purchasing their health insurance on the state-backed MnSure website.

There are 187,000 Minnesotans who buy individual policies through MnSure, and the average increase is 22%. Another 202,000 Minnesotans covered by small group plans through MnSure will see an average increase of 14%. 

State Commerce Commissioner Grace Arnold, who oversees insurance rates, and MnSure CEO Libby Caulum spoke with WCCO’s Esme Murphy on WCCO Sunday Morning at 10:30 a.m. Both blame the federal government showdown for the increases.

“The expectation for insurers is that fewer people will have coverage,” Arnold said. “The people who tend to stay in coverage are sicker.”

There is a big difference in companies’ increases. On the individual market, Medica has the biggest increase at 30%, while Quartz Health Plan is the smallest at 7%.

“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,” Caulum said.

The enrollment period is from Nov. 1, 2025, to Jan. 15, 2026. If you want benefits starting Jan. 1, 2026, you need to enroll by Dec. 15, 2025. Otherwise, your coverage will start on Feb. 1, 2026.

You can watch WCCO Sunday Morning with Esme Murphy and Adam Del Rosso every Sunday at 6 a.m. and 10:30 a.m.