Health insurance rates to increase in 2026 for those in MNsure plans – Twin Cities

The Minnesota Department of Commerce on Wednesday announced the anticipated increase in health insurance rates for 2026 — a driving factor in the federal government shutdown that began at midnight.

Under the new rates, Minnesotans covered through the individual market — Affordable Care Act plans accessed through the state’s health insurance marketplace — will see an average rate increase of 22% and those in small group plans will see a 14% increase. The increases are due to both rising health care costs and the expiration of enhanced tax credits under the ACA, officials with the Department of Commerce said Wednesday.

Roughly 200,000 Minnesotans are enrolled in the small group market, while 163,000 are enrolled in the individual market, according to 2024 data from the state Department of Health.

The increased rates came just hours after the federal government shut down, in part over health care disputes such as the expiring ACA credits and Medicaid cuts. Gov. Tim Walz and Minnesota health care leaders held a press conference last month, urging Congress to extend the enhanced tax credits.

“We hope that Congress will take swift action to make the enhanced tax credits permanent, because every Minnesotan who has been able to stay covered with this financial help is another Minnesotan able to access the health care they need,” MNsure CEO Libby Caulum said in a news release Wednesday.

The Department of Commerce announces the rates every year on Oct. 1, ahead of the Nov. 1 date for open enrollment, and three months before premiums go into effect on Jan. 1, also when the ACA credits are set to expire.

Caulum said on Sept. 23 that while MNSure can “make technical changes” if Congress acts to extend ACA credits before Jan. 1, the deadline is tight.

“As soon as the rate release happens, there’s a whole host of things that MNsure does to get ready for open enrollment … so we’re really short on time here to keep it from getting confusing,” she said.

MNsure estimates that nearly 90,000 Minnesotans will see an increase in their monthly premium due to the loss of ACA credits if Congress does not extend them.