Governor Mark Dayton won’t sign a reinsurance bill into law, but he won’t veto it either. Legislation can become law without the governor’s signature by waiting three days.
The reinsurance legislation will make more than $500 million available for Minnesota insurance companies to cover high-risk insurance holders.
In a letter to Speaker Kurt Daudt, Governor Dayton says that, although he thinks reinsurance should be paid for with a tax on the insurance industry, he will not prevent the Republican plan from becoming law.
Unfortunately, two of my main concerns about the bill were not addressed in the final
Conference Report. The first was the source of funding for the insurance subsidies. In my
March 29th letter to the two of you, I reiterated what I had been saying during previous
weeks: “The conference report uses the Health Care Access Fund and the General Fund to
cover the state responsibility for reinsurance. I believe reinsurance should be funded by a tax
on the industry itself, as was the Minnesota Comprehensive Health Association. The General
Fund and Health Care Access Fund dollars should be used for statewide priorities like
schools, early childhood education and health care for low-income Minnesotans.
Furthermore, it is unwise to use Health Care Access Fund dollars without repealing the sunset
of the two percent provider tax that sustains the fund.”
However, I agree with you, this bill’s authors, and those legislative leaders, who
believe that this subsidy must be committed to the health insurance industry at this time, to
try to induce their participation in Minnesota’s Individual Market in 2018 at the lowest
possible rates. Thus I will allow this measure to become law by not acting upon it within the
requisite three days, which end at midnight tonight. I will deposit, without signature, in the
office of the Secretary of state, Chapter 13, House File 5.