Senate File 1 passed the Minnesota State Senate during the week of January 9. Next stop is HF 1, which will be passed the week of January 16 - and then a conference committee.

SF 1 provides premium subsidies for certain non-APTC enrollees in individual health plans.

A bill summary is in the adjoining article.

​To access SF 1, click here.

​HF 1 differs from SF 1. The most current version can be access here.

Feel free to email me at

Or call my office at 651.340.1911

Useful information, data, links for Minnesota's licensed health insurance agents, brokers, and consultants. Information will be added as updates are needed.

This is a short highlight of what’s in SF 1. I am concerned that the GOP might be willing to pull out the insurance reforms in order to get Governor Dayton to sign the subsidy relief. That, in my opinion, would be a mistake. The Governor is desperate to take credit for premium relief – ask the GOP to use the leverage of the moment to persuade him to sign the entire bill as passed.

SF 1 Highlights (remember, this is all subject to a conference committee where anything and everything can change):

Premium assistance for 2017. Effective as soon as passed.

Minnesota residents who purchase qualified coverage for 2017, and meet certain income eligibility, and who are not receiving APTC. NOTE: The subsidy is a percentage of premium (see end comments).
The individual applies to the commissioner no later than 1/31/2018.
Carriers verify the applicant’s info and make app forms available on their websites.

The subsidies are:

  • 300-800% of FPG income at 25% until March 31, 2017
  • April through December 2017 – 300-400 get 30%, 400-600 get 25 percent, 600-800 percent get 20 percent paid monthly top each individual

The state spends a total of $300,157,000, of which $285 million is for subsidies. 6.7% is allocated for admin.

 Insurance Reforms:

  • Premium rates must be published within 10 days after they are filed with the Commerce Commissioner.
  • Reducing stop loss to $10,000 for small group, allowing for small groups to self-insure.
  • Allowing for-profit HMOs.
  • Allowing employers to use defined contribution health plans for individual purchase consistent with the new federal 21st Century Cures Act (see note at the end).
  • Transitional coverage for certain serious medical conditions, with money appropriated.
  • A residency verification process for applicants.
  • Creation of a reinsurance system (this is too technical for a short notice). Appropriates $150 million from general fund for 2018.
  • State innovation waiver (1332) must be requested.
  • Creation of Agriculture Co-op plans for professional farmers.


  1. The premium subsidy comes without any limits. That is, a person would receive a subsidy as a percentage of their bronze, silver, or gold premium. Those with bronze coverage receive far less than those with gold coverage. I suggested that if we must provide subsidies, they should be calculated based on the second-lowest silver plan. DFL Senator Lourey introduced that language, but it has not passed.
  2. Creating more opportunity for employer-sponsored defined contribution plans is a good idea, but without any new or affordable individual plans, I wonder if this will have any positive effect. A more comprehensive package of reforms is needed.

Agents, Brokers, Consultants

Summary of SF 1

SF 1 Passes

Agents, brokers, and consultants on my contact lists have been asking me how they could support my work. (Much of what I do for agents has been voluntary, but without support, I cannot keep it up.)

I don't have membership fees, and I have no real idea about the value of what I do is for you. But several agents, in the past, have sent $500 one time - others have sent $100 a month, or $50 a month. Fact is, many agents sending something works best.

So ponder the value of my work to you and decide how you can help.

Checks can be made payable and mailed to:

DGRCommunications, Inc.

c/o Dave Racer

1536 Barclay Street, Ste A-1

St Paul MN 55106-1406

To use a credit or debit card (you choose the dollar amount):

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