A closer look at the individual market buyers illustrates who stands to benefit if Congress does so. While Minnesota data isn’t available, analysis of national data is available from KFF, a respected health policy nonprofit.
“On average, 8% of adults under age 65 who usually worked more than 20 hours per week in 2023 got their coverage in the individual market,” according to the KFF report. But in certain occupations, “more than a quarter” do so. These include chiropractors and dentists, real estate brokers and farmers, ranchers and agricultural managers. That last group is an especially important part of Minnesota’s economy, and on average, 27% buy coverage on their own, KFF reports.
MNsure is the state’s official online insurance marketplace. CEO Libby Caulum said in a statement this week that “Without enhanced premium tax credits, nearly 90,000 Minnesotans will see an increase in what they pay for coverage.”
If Congress doesn’t act, ACA subsidies will once again cut off at incomes exceeding 400% of the federal poverty level. In my reporting, many retirees and farmers have incomes just over this line: $62,600 for an individual or $84,600 for a couple, according to U.S. Department of Health and Human Services data. The rate hikes just announced will make affordability a challenge for those in this group.
If Congress doesn’t act, ACA subsidies will still be available for plans sold on MNsure for those with incomes under 400% of the federal poverty level who meet other eligibility criteria. But the assistance available will be less generous, with Minnesotans earning between 200% and 250% of the federal poverty level especially taking a hard hit. They could see average monthly costs nearly double, from about $150 to $283 a month.
The Minnesota Farmers Union is sounding the alarm about the impact on farmers if the ACA enhanced aid expires. “Rising prices for health insurance are another added burden for independent family farmers, forcing some to choose between buying health insurance, making their operating loan payments or, in some cases, putting food on the table,” said MFU President Gary Wertish.