Minnesota Democrats pledge to work on lowering healthcare costs next session

Minnesota Democrats, who after Tuesday's election took back total control of the state capitol, pledge to work on lowering healthcare costs when they return for the next legislative session in January. 

Democrats are on track for sizable majorities in both the state House and Senate and DFL Sen. Amy Klobuchar will become the state's first female governor. The governor-elect during a Wednesday news conference after her victory listed tackling high healthcare costs as among her top priorities. 

Her plan includes bulk purchasing prescription drugs and extending the reinsurance program that lowers costs for people enrolled in the individual market through MNsure, the state's Affordable Care Act marketplace. She also wants to create a state tax credit to lower premiums for those Minnesotans if the federal government doesn't reinstate expired subsidies that eased the financial burden. She will need to work with the Legislature on some of these issues. 

Healthcare was among the top three issues voters cited when it came to influencing their support for governor, according to a Minnesota Star Tribune poll last month. 

Rep. Zack Stephenson, the House DFL leader, said that was a consistent concern he heard when door-knocking this campaign. 

"We heard stories all across Minnesota about people struggling with their health insurance and with big pharmaceuticals. We'll keep the focus on affordability," he told reporters Tuesday.

The Legislature recently capped co-pays at $25 a month for life-saving prescription drugs like insulin and epipens. He suggested there would be more efforts on drug prices, which Klobuchar also underscored. 

Health insurance premiums for nearly 400,000 Minnesotans who get coverage through MNsure's individual and small group plans through will see rates rise 10 to 20%, according to the Minnesota Department of Commerce. 

It would've been nearly a 58% hike if not for the state reinsurance program, which will need to be extended by lawmakers next session. Minnesotans who get insurance through their employers could pay more out-of-pocket, too. One analysis of employers found they estimate a 8% increase in benefit costs that they may need to shift to employees. 

Leaders are also worried about the cuts to Medicaid from the so-called "One Big Beautiful Bill" approved by the outgoing GOP-led Congress that take effect next year—though the incoming Congress led by Democrats will push to reverse those changes. 

"This state has always been a thought leader in healthcare and a problem solver. It's one of the hardest issues we're going to face. They've taken away a lot of tools that we have relied on. We're going to have to write a new chapter. We're up for that," said DFL Senate Majority Leader Erin Murphy.

The finer details of policy proposals from legislative Democrats will be sorted in the coming weeks and months. Klobuchar already said she may diverge with members of her own party, whose members "aren't going to like everything I do." 

But she said they ultimately share the same goals. 

"There may be differences here and there on the policies on how to break down costs, but there is agreement that that should be the purpose of the Minnesota state government," Klobuchar said.