North Shore Health leaders discuss rising insurance costs
Nov. 1 marked the start of open enrollment for the health insurance marketplace, and many people are seeing their premiums rise.
Those who use Premium Tax Credits (PTC) to purchase individual insurance through the marketplace are seeing the steepest increases as the credits expire — an issue at the center of the record-setting federal government shutdown.
Even those with employer-sponsored health insurance are likely to see steep increases. During the October board meeting, the North Shore Health board discussed a 14% increase in employee health insurance. North Shore Health currently uses Blue Cross and Blue Shield for its employer-sponsored health insurance.
“We looked at Medica. Medica came in at the 9% [increase] with some slightly different plan design options,” North Shore Health CEO Kimber Wraalstad said when asked about alternative health plans.
The rising cost of insurance reflects broader increases in the cost of health care. According to a study by the Peterson Center on Healthcare and the Kaiser Family Foundation, insurers commonly estimate about a 9% increase in health-care prices.
“There are an awful lot of high-cost treatments now,” Wraalstad told WTIP. “Robotic surgeries that people are having, or specialty drugs, you know. So we all are hearing about the GLP drugs or the anti obesity drugs. They’re really expensive, and so those are driving up some of those costs.”
Inflation, tariffs, and labor expenses have also contributed to higher health-care costs.
The price increases have led some insurance carriers to announce they will drop Medicare Advantage plans in 2026. UCare, Humana, and HealthPartners plan to stop offering those plans in certain Minnesota counties.
People who currently have Medicare Advantage coverage may have difficulty obtaining a regular Medicare supplement plan and could be denied coverage.
Wraalstad recommends that those needing help navigating Medicare contact Aging Pathways at 800-333-2433.
The cascading effect of rising premiums has been an increase in the number of uninsured individuals. When uninsured people seek emergency care, hospitals still provide treatment, but that care often goes uncompensated, resulting in bad debt for the hospital.
“People are less likely to go and seek the care that they need if they don’t have insurance,” Wraalstad said. “Well, you’re going to let something get so so bad. It’s going to cost more on the back end.”
According to a 2024 Kaiser Family Foundation report, the number of people receiving PTCs doubled between 2020, when the subsidies were instituted, and 2024. The report also estimates the cost of making the enhanced subsidies permanent at about $335 billion.
While low-income people make up most of the growth in Affordable Care Act marketplace enrollment and older Americans rely on Medicare, rising insurance costs affect everyone. The Center on Budget and Policy Priorities notes, “If the PTC enhancements expire, premium costs will soon increase for people across states, ages, and income levels.”
WTIP spoke with Wraalstad and North Shore Health Board Chair Randy Wiitala about the current landscape of health insurance. The full audio of that conversation is available below.
Josh Hinke November 8, 2025
