Senate Democrats want special session on spiking health insurance costs

State Senate Democrats said Thursday a short-term fix is needed before big increases in individual market health insurance premiums kick in at the start of the new year.

They want Gov. Mark Dayton to call a special legislative session so they can pass a supplemental tax credit for about 5 percent of Minnesotans who purchase coverage through the state insurance exchange known as MNsure but who are not eligible for the federal tax credits available under the Affordable Care Act.

Senate Majority Leader Tom Bakk, DFL-Cook, said during a news conference that the tax credit would help take the sting out of the premium increases, which state officials recently announced will jump more than 50 percent next year.

"Families are having to make decisions whether they're going to enroll or go without insurance and pay the penalty," Bakk said. "I think we have an obligation to address what is really an emergency here, and that's all we're asking to be considered."

Bakk estimated the cost of the tax credit at more than $100 million. He said he's not worried about how to pay for it.

"We have resources to do that. The fact that last session collapsed without a tax bill, the tax bill was $460 million," he said. "So that money is sitting there. The bonding bill had about $300 million in cash in it."

Dayton wants a fix too. But he said again this week that he won't call a special session before the election.

House Speaker Kurt Daudt, R-Zimmerman, was largely dismissive of Bakk's proposal. Daudt said that House Republicans are "open to any and all ideas" to reduce health care costs. But he blamed Democrats for creating the crisis and said the DFL press conference "seemed aimed more at political cover" than serious solutions.

Republicans have been hammering DFL candidates over health care this election season. Their list of proposed remedies includes scrapping MNsure and switching to the federal exchange.

Dayton complicated matters for fellow Democrats last week when he declared that the ACA "is no longer affordable for increasing numbers of people." The comment has already made it into political ads to benefit GOP candidates.

Senate Minority Leader David Hann, R-Eden Prairie, was similarly critical. Hann called the DFL press conference "an election-year stunt."

"Why doesn't he just call and say 'governor, call a special session?' Why does he have to have a press conference to do this? Why does he have to have this media thing to do this? It has to be a very cynical attempt to distract the public into thinking that the people that created the problem are magically going to fix this, when all they're offering is band aid solutions," Hann said.