Minnesota's 2026
Health Insurance Crisis
ARPA enhanced subsidies expired December 31, 2025. Nearly 90,000 Minnesotans face an average 21.5% premium increase.
What Happened?
Understanding the 2026 health insurance crisis
The American Rescue Plan Act (ARPA) of 2021 provided enhanced premium tax credits that made health insurance more affordable for millions of Americans. These enhancements were extended through the Inflation Reduction Act until December 31, 2025.
As of January 1, 2026, these enhanced subsidies have expired. Despite multiple legislative attempts, Congress did not pass an extension. The subsidy rules have reverted to the original pre-2021 ACA structure, which includes the 400% Federal Poverty Level (FPL) "subsidy cliff."
For Minnesota specifically, this coincides with the largest premium increases since 2017, averaging 21.5% across all individual market insurers. Commerce Commissioner Grace Arnold called the increases "a real gut punch" for Minnesota families.
Key Changes in 2026
What's Gone (ARPA Benefits Lost)
- Enhanced tax credits above 400% FPL
- 8.5% income cap on premiums
- Subsidies for higher earners (above 400% FPL)
- Average $500/month in enhanced credits
What Remains (Standard ACA Benefits)
- Standard premium tax credits (under 400% FPL)
- Cost-sharing reductions for Silver plans
- Pre-existing condition protections
- MN Reinsurance (20-25% premium reduction)
Check Your Impact
See how the 2026 changes affect your household
2026 Crisis Impact Calculator
See how ARPA subsidy expiration affects you
Include all income sources for everyone in your household
Include yourself, spouse, and dependents you'll claim on taxes
This calculator provides estimates only. Actual subsidy amounts depend on specific plan costs and other factors. Visit MNsure.org for official calculations.
Who Is Affected?
Hardest Hit Groups
- Greater Minnesota residents: Often face higher premiums due to fewer provider options
- Adults over 55: A couple in their early 60s in Mankato with $89,000 income could see monthly premiums surge from $474 to approximately $2,000 (322% increase)
- Families just above 400% FPL: Earning $128,601 as a family of 4 means zero subsidy eligibility
2026 Premium Increases by Insurer
Approved by Minnesota Department of Commerce
2026 Minnesota Insurer Rate Changes
Approved by MN Department of Commerce, effective January 1, 2026
The "Subsidy Cliff" Explained
Income thresholds that determine your subsidy eligibility
2026 Federal Poverty Level (FPL) Thresholds
Income above 400% FPL = No subsidy eligibility (the "subsidy cliff")
| Household Size | 100% FPL | 400% FPL (Subsidy Cliff) |
|---|---|---|
| 1 person | $15,650 | $62,600 |
| 2 persons | $21,150 | $84,600 |
| 3 persons | $26,650 | $106,600 |
| 4 persons | $32,150 | $128,600 |
| 5 persons | $37,650 | $150,600 |
| 6 persons | $43,150 | $172,600 |
⚠️ Real Example: The Subsidy Cliff in Action
A 60-year-old couple earning $85,000 (just above 400% FPL for 2 people at $84,600) could face approximately $22,600 annually in premiums—roughly 25% of their income. Under enhanced credits, their premiums would have been capped at 8.5% of income (~$7,225).
Critical Dates
Don't miss these important deadlines
What You Can Do Now
Steps to protect yourself and find affordable coverage
Check Your Eligibility
Use the calculator above or visit MNsure to see your exact subsidy amount for 2026.
Visit MNsureCompare Plans Carefully
Consider switching to a different metal tier or insurer. A Bronze plan may save money if you're healthy.
Learn About PlansCheck for Medicaid/MinnesotaCare
If income dropped, you may now qualify for Medical Assistance or MinnesotaCare with lower costs.
Learn MoreConsider an HSA Plan
High-deductible plans with Health Savings Accounts can reduce taxable income and save long-term.
What is an HSA?Act Before January 15
Open enrollment ends January 15, 2026. Missing this deadline means waiting until next year (or a qualifying event).
Deadline approaching!Get Free Help
MNsure navigators and brokers provide free assistance with enrollment. Don't navigate this alone.
Find a NavigatorMinnesota's Response
State programs that help reduce costs
Minnesota Premium Security Plan (Reinsurance)
Minnesota's reinsurance program was extended through 2027 during the June 2025 special legislative session. The program has $335.6 million allocated for 2026.
Impact:
- • Keeps premiums approximately 20-25% lower than they would otherwise be
- • Without reinsurance, 2026 premiums would have increased 47% to 69%
- • Helps stabilize the individual market
However: Minnesota has not enacted a state-funded subsidy program to replace the expired federal enhanced credits. Commerce Commissioner Arnold stated: "Minnesota shouldn't have to cover for a broken federal government."
Additional Resources
Don't Wait — Act Before January 15
Open enrollment closes soon. Check your options now and ensure you have coverage for 2026.