Over 70,000 Minnesotans Will Continue to Save on Health Insurance, Thanks to Inflation Reduction Act
August 17, 2022
ST. PAUL, Minn.—Today, President Biden signed into law a sweeping investment in health care affordability for Americans that will help keep health care costs in check for over 70,000 Minnesotans.
The new federal legislation, called the Inflation Reduction Act, extends enhanced subsidies for private health plans purchased through MNsure, Minnesota’s health insurance marketplace. First introduced in 2021 as part of the American Rescue Plan, the enhanced subsidies made existing tax credits more generous and expanded eligibility for tax credits to include more middle-income families. The average annual savings for MNsure enrollees is $6,100 per household for 2022.
“Today the Biden-Harris administration has enacted legislation that will reduce health care costs for Minnesotans for years. MNsure estimates the Inflation Reduction Act will continue to help lower premiums for over 70,000 Minnesotans who currently buy health insurance through MNsure, including 32,000 Minnesotans nearing retirement age,” said MNsure CEO Nate Clark. “These savings put more money back in the pockets of Minnesota’s working families and help thousands of Minnesotans maintain or access health coverage.”
MNsure estimates Minnesotans will receive up to $282 million in tax credits this year alone. Tax credits act as an instant discount for premiums and are only available to consumers who purchase coverage through MNsure. The Inflation Reduction Act extends the expanded tax credits for three years, through 2025.
In addition to saving consumers money, the enhanced subsidies have increased access to health insurance and helped cut the uninsured rate across the United States to a new all-time low of 8%. Minnesota’s uninsured rate is roughly half that, as more than 95% of Minnesotans have comprehensive health coverage. During the last open enrollment period, over 134,000 Minnesotans – a 10% increase from the year prior – signed up for 2022 coverage through MNsure.