State officials are hoping that new rebates for health insurance shoppers will build enrollment in the state's troubled market for people who buy health plans on their own.

On Thursday, Republican legislators passed and DFL Gov. Mark Dayton signed into law a measure providing rebates for individual market shoppers who make too much money for federal tax credits, but nonetheless are facing premium jumps of more than 50 percent.

The rebates are available only for certain people who buy in the individual market, where about 5 percent of state residents get coverage. It's the market for people who are self-employed or don't get coverage from an employer or the government.

Some shoppers likely were waiting on the Legislature to see if rebates would be available before deciding whether to buy coverage for 2017, said Myron Frans, the commissioner of Minnesota Management and Budget, during a news conference Friday at the Capitol.

"The health of the market does depend on the volume" of people signing up, Frans said. "We have been concerned that people are waiting on the sidelines. ... Our hope is that people will say: OK, with this 25 percent reduction, I can now afford health insurance."

The bipartisan agreement on a measure related to the federal Affordable Care Act (ACA) comes as political winds around the health law keep swirling.

President Donald Trump and Republicans who control Congress have pledged to repeal and replace the ACA. On Thursday, the Trump administration said it was canceling about $4 million to $5 million worth of radio and TV ads that had been placed to promote last-minute sign-ups before open enrollment ends.

"We aren't going to continue spending millions of taxpayers' dollars promoting a failed government program," a spokesman with the U.S. Department of Health and Human Services said in a statement Friday.

Individual market shoppers can purchase directly from insurance companies or through government-run exchanges like MNsure in Minnesota.

Allison O'Toole, the chief executive at MNsure, said her agency will keep running ads in Minnesota until the deadline.

"Frankly, it would be irresponsible of us to not be reaching out to consumers right now at this critical time," O'Toole told reporters.

Individual market shoppers were shocked this fall not just by premium hikes for 2017, but also tight limits on the network of doctors and hospitals available with health plans as well as enrollment caps at most health plans.

Insurers imposed the cost-saving measures after sustaining financial losses in the market, which is undergoing fundamental change due to the ACA.

People who don't get federal tax credits and sign up for individual health plans by Jan. 31 either through MNsure, or directly from insurers, will see a 25 percent discount in premium costs starting in April, O'Toole said. Rebates will be retroactive to January, as well.

"To get the automatic discount, you don't need to do anything," O'Toole said. "You don't need to contact anyone. This will be automatic, and directly from the insurer."

She encouraged shoppers not to delay, since open enrollment is scheduled to end Tuesday at midnight. "Time is short," O'Toole said.

The state has estimated that about 125,000 people will qualify for rebates, including people who make too much money for federal tax credits. The subsidies are available based on income — individuals with annual incomes below $47,520 qualify, along with a family of four that makes $97,200 or less per year.

People with incomes that could qualify for tax credits, but don't get the subsidies because they don't purchase through MNsure, nonetheless can qualify for the rebate, state officials said.

Last year, insurers in Minnesota reported that the state's individual health insurance market shrank between the end of 2015 and the second quarter of 2016. That's a troubling sign for the health of the market.

It's been tougher to get a read on the market's current size. Sign-ups through the state's MNsure exchange have come at a record pace, as Minnesotans seek tax credits to offset premium spikes, but numbers haven't been available for the "off-exchange" portion of the market.

House Speaker Kurt Daudt, R-Crown, and Dayton have asked the Trump administration to extend the open enrollment deadline for Minnesotans, but as of midday Friday there was no response.

"What we know today is the deadline is Jan. 31," Frans said. "What we know today is that we now have $312 million available to provide premium relief."

Christopher Snowbeck • 612-673-4744

Twitter: @chrissnowbeck