MNsure 2026 Rate Increases: Medica’s 31% Shock and What It Means for You

Medica Insurance Company filed a 30.76% rate increase for individual health insurance plans sold through MNsure in 2026 — the largest single-carrier increase on Minnesota’s marketplace. Across all carriers, individual market premiums rose an average of 21.5%, the most significant rate hike since 2017, affecting approximately 187,000 Minnesotans in the individual market (Minnesota Department of Commerce, October 2025).

The pain is compounded for nearly 90,000 Minnesotans who relied on enhanced federal premium tax credits: those subsidies expired on December 31, 2025, adding an average of $177 per month — $2,124 per year — to out-of-pocket costs (MNsure). Early data confirms the fallout: MNsure’s final 2026 enrollment dropped to approximately 139,000 qualified health plans — down 8.1% from 2025, with a 50% increase in cancellations and a 112% increase in enrollees switching to cheaper plans (MNsure Board / ACA Signups, February 2026).

Why Did MNsure Premiums Increase So Much in 2026?

Minnesota’s 2026 premium increases stem from two converging forces: rising healthcare costs and the expiration of enhanced federal subsidies.

Healthcare spending has risen nationwide, driven by higher prices from hospitals, physicians, and pharmaceutical companies. The Minnesota Department of Commerce noted that actual rate changes vary by plan, geographic area, and age (MN Dept of Commerce).

But the larger factor is the expiration of enhanced Advanced Premium Tax Credits (APTCs). First created through the American Rescue Plan Act in 2021 and extended via the Inflation Reduction Act of 2022, these credits expired December 31, 2025. Congress failed to renew them — the Lower Health Care Costs Act (S 3385) fell short of 60 votes in the Senate in December 2025. The dispute contributed to the longest federal government shutdown in U.S. history — 43 days (ASTHO, January 2026).

Which MNsure Carriers Raised Rates the Most?

The range is dramatic — Medica’s 30.76% increase is more than four times Quartz’s 7.40%. Shopping and comparing carriers could save hundreds monthly on your premium.

*HealthPartners Insurance Co. is new to MNsure for 2026; many enrollees transitioning from HealthPartners, Inc. Source: MN Dept of Commerce

Key changes: Quartz exited Olmsted County. No catastrophic plans on MNsure for 2026 — existing enrollees transitioned to bronze. And all bronze plans now qualify as HSA-eligible HDHPs (MNsure, November 2025).

Small Group Market (Employers)

For small group coverage, the average increase is 14.2%:

How Does the Subsidy Cliff Affect Minnesota Premiums?

The expiration creates a “subsidy cliff” — a sudden increase in what Minnesotans actually pay, on top of rate increases. According to the Minnesota Medical Association, 62% of MNsure enrollees (approximately 89,000 Minnesotans) saw decreased subsidies, and roughly 19,500 lost all financial assistance (MN Medical Association).

Starting in 2026, individuals earning more than approximately $62,600/year ($84,600 for couples) won’t qualify for any credits (MNsure). Nationally, KFF estimates marketplace premiums spiked 114% ($1,016/year) (KFF, October 2025). Over 62,000 Minnesotans could drop insurance altogether due to unaffordability (MN Budget Project, October 2025).

Real-World Impact: MNsure Premium Examples

*Still qualifies for significant credits under non-enhanced rules. Source: MNsure Scenarios, Oct 2025

“Without enhanced premium tax credits, nearly 90,000 Minnesotans will see an increase in what they pay for coverage. That is why it is more important than ever for Minnesotans to take the time and make a plan to review their coverage.”

“This is the most significant rate hike since 2017. The average premium increase on the individual market will go up 22 percent, while the small group market sees a 14 percent increase.”

What Are the Cheapest Health Insurance Options on MNsure for 2026?

MNsure estimates 46% of enrollees still qualify for APTCs, saving eligible households an average of $600/month — over $7,000/year (MNsure, October 2025). Here are five strategies to lower your costs:

1. 1
   Shop and compare carriers. The 23-point gap between Medica (30.76%) and Quartz (7.40%) means switching could save hundreds monthly. Use MNsure’s Shop and Compare tool at MNsure.org.
2. 2
   Consider a bronze plan with an HSA. All bronze plans on MNsure now qualify as HSA-eligible for 2026. The 2026 HSA limit is $4,300 individual / $8,550 family (IRS). Nationally, 59% of enrollees chose bronze in 2026, up from 49% in 2025.
3. 3
   Check MinnesotaCare eligibility. Income between 138–200% FPL? You may qualify for MinnesotaCare with low premiums and year-round enrollment.
4. 4
   Verify remaining tax credit eligibility. Original ACA credits remain for incomes 100–400% FPL. Log into your MNsure account to check your updated subsidy.
5. 5
   Talk to a free MNsure-certified broker. Free expert help, no upselling. Call 1-855-366-7873 or visit MNsure.org to find a certified broker near you.

Will Congress Restore Enhanced Tax Credits in 2026?

On January 8, 2026, the U.S. House passed a three-year extension by 230–196, with 17 Republicans breaking from party leadership (Ballotpedia, January 2026). A bipartisan Senate group is crafting a two-year compromise with income caps and HSA reforms. However, “Congressional efforts to extend the ACA PTCs have stalled, and the path forward is unclear” (ASTHO, January 2026).

If Congress acts retroactively, MNsure has indicated it will automatically apply updated savings to existing enrollees. We will update this article as developments occur.

Missed Open Enrollment? Here Are Your Options

MNsure’s open enrollment ended January 15, 2026. You can still enroll through a Special Enrollment Period with a qualifying life event: losing employer coverage, marriage, a new baby, or moving (MNsure). MinnesotaCare and Medical Assistance accept applications year-round. For help exploring all your options, Navitize’s health insurance guide walks you through each step.