Dayton: Insurance rate hikes “very serious problem”
DFL Gov. Mark Dayton says the escalation of health insurance rates under the federal Affordable Care Act is a “very serious problem” and he wants to see the next president and Congress make changes.
Dayton, who has been a big supporter of the federal law and its state implementation, told reporters Wednesday that he’s also looking at ways the state can address the issue during the 2017 legislative session.
“The reality is the Affordable Care Act is no longer affordable for increasing numbers of people,” Dayton said.
Dayton said some level of reinsurance under public plans for catastrophic coverage could help bring down rates. He said he also wants to look at additional flexibility for insurers. Dayton said Congress needs to expand the tax credits available for people buying insurance under the ACA.
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Dayton said the ACA has many good features, including its requirement that people with preexisting conditions cannot be denied coverage. But he said state and federal government leaders need to remedy some problems.
“It has some blemishes right now and serious deficiencies,” he said.
The governor’s comments came a week and a half after state officials announced that the individual market will see premium increases next year of 50 to 67 percent. Dayton pointed out that the percentages are high because Minnesota’s base rates were relatively low. He also noted that Minnesota is not alone in dealing with big increases.
About 5 percent of Minnesotans currently get their coverage on the individual market.
Dayton said he might consider a special legislative session to take action before January. But he said he doesn’t want to discuss that option with legislative leaders until after the election, because “it’s too politically charged.”
Minnesota Republicans have been harsh critics of the law and its state implementation. They’ve been using the issue against Democrats as part of this year’s campaign.