MINNESOTA – Minnesotans who purchase health insurance through teh Affordable Care Act (ACA) marketplace can expect an average premium increase of 21.5% in 2026, according too health policy expert James Planalp.while lower than the national average of a 100% increase, the rise will translate to roughly $177 more per month for many, as federal financial assistance decreases alongside rising costs.
The premium hikes are driven by broader inflationary pressures impacting healthcare costs nationwide.A state reinsurance program established in 2017 has mitigated some of the increase for Minnesota residents, but that program is set to expire in 2027.
“That’s going to mean that people are paying more out of pocket for their premiums for those plans, they’re getting less federal financial assistance,” Planalp said. “And what that means is, we’re seeing, according to MNsure, an increase of about $177 per month. It’s better here in Minnesota, but it still hurts.”
Middle-income individuals are expected to be disproportionately affected, wiht some perhaps losing federal subsidies altogether. Despite record ACA enrollment in Minnesota – 193,805 residents were covered in 2025 – Planalp fears a drop in coverage for 2026 as affordability becomes a greater barrier.
“Health insurance, part of the reason that we have it is indeed to protect people from really, potentially ruinous bills if they were to become seriously injured or ill,” Planalp cautioned. “You just don’t know what you’re going to face,and there are real risks to not having health insurance.”
planalp emphasized that rising healthcare costs are a systemic issue extending beyond the ACA. “Health care costs have been increasing at a faster rate than overall inflation,and that’s something that the US has to get a handle on,or these issues with increasing health insurance costs are going to be a perpetual issue,and they can bankrupt families,and they can bankrupt our economy,” he said.
Minnesotans enrolling in ACA plans for 2026 are encouraged to compare options on the MNsure website and can schedule in-person assistance with MNsure. Planalp advises against automatically renewing existing plans,given the potential for savings by shopping around.
