ST. PAUL, Minn. (KTTC) – Minnesota Governor Tim Walz is looking to make a policy change to the state’s reinsurance program by asking insurance companies to pay what he said is a “fair share”.

The state-based reinsurance program is designed to stabilize premiums in Minnesota’s individual health insurance market by partially reimbursing insurers for high-cost claims. While Walz explained the program works, he said it’s very expensive for taxpayers with millions coming out of Minnesota’s general fund. State officials report over a two-year period, it costs $500 million.

In Walz’s latest budget proposal, he is asking insurance companies to help foot the bill by increasing the surcharge from .6% to 1.25%.

“This is a case where the state can and will shore up against some of the most drastic and, quite honestly, cruel cuts coming out of the federal government. This is an opportunity for Minnesota to continue to deliver on that high-quality care,” Walz stated.

In the proposal, this change would save the state money to use toward anticipated federal cuts to Medicaid and other areas.

“It was crafted before we got here to hold the insurance companies entirely harmless and have the taxpayers of Minnesota to foot the entire bill,” Walz said. “No one else is doing it that way because it doesn’t make any sense.”

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