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Sen. Amy Klobuchar pitching state tax credit to lower premiums
The plan would use MNsure to help about 90,000 people offset higher monthly premiums as federal Affordable Care Act subsidies expire.
On Friday, U.S. Sen. Amy Klobuchar, the DFL candidate for Minnesota governor, proposed a state tax credit delivered through MNsure to backfill expired federal health insurance subsidies.
Roughly 90,000 Minnesotans face increased premiums due to the 2026 expiration of federal Affordable Care Act enhanced credits. Klobuchar noted 10 states, including New Mexico, have already implemented similar measures.
Klobuchar argued the credit would support rural small businesses and farmers while claiming the federal government has money "held up" that should return to the state.
Minnesota House Speaker Lisa Demuth criticized the proposal, stating Klobuchar lacks credibility on healthcare. A spokesperson said Demuth would instead "increase competition and plan choices for Minnesotans."
With the November election approaching, the Legislature's makeup remains uncertain. Republican lawmakers have generally opposed new tax credits, signaling potential hurdles for implementation.