Reinsurance Bill Passes Through House Committee

March 10, 2022

A bill that would extend the state’s reinsurance program through 2023 passed through the House Health Finance and Policy Committee this week.  

The bill, HF3717 (Rep. Zach Stephensen-DFL, Coon Rapids), is the companion bill to SF3472 (Sen. Gary Dahms - R, Redwood Falls), which passed through a Senate committee last week.  

As previously reported, the reinsurance program is designed to reduce the cost of premiums for those purchasing coverage in the individual market. It is funded with both federal and state money. It subsidizes insurers by paying a portion of medical bills over a certain threshold. Minnesota’s reinsurance program is scheduled to end when we reach the end of a five-year waiver received from Center for Medicare and Medicaid Services (CMS). The waiver can be renewed through action by the Legislature.  

This bill was previously heard in the House Commerce Committee, where it was amended to include language that would give consumers who purchase coverage in the individual and small-group markets an option of buying a plan that restructures the out-of-pocket copayment costs for prescription drugs to be extended through the calendar year. The MMA signed onto a letter with 22 patient advocacy, medicine, pharmacy, and other health organizations in support of this language. 

While the House will likely pass the copay language, it is expected that the Senate’s version of the bill will not. Republicans in the House committees criticized Stephenson’s decision to attach this amendment, among others, to the reinsurance bill. Senate leadership is expected to take a similar view on this. 

An amendment included a proposal to study payment reform, including a public option, was also added to the bill before being referred to the Ways and Means Committee. The legislation will likely go to a conference committee for negotiations after each chamber finishes committee hearings and holding initial floor votes.