SAINT PAUL – Minnesotans can now see proposed 2018 rate
information submitted by Minnesota insurers to the Minnesota Commerce
Department for individual health insurance plans, including those that will be
sold through MNsure.
All insurers that currently offer health plans in
Minnesota’s individual market have filed rate proposals for 2018.
The insurers’ rate proposals, which are preliminary and
must be reviewed by the Commerce Department, are available on the Commerce website (mn.gov/commerce). Also
available are proposed 2018 rates for small group health plans that serve
employers with 2-50 employees.
Final 2018 rates will be announced by October 2. The 2018
open enrollment period to buy health insurance begins on November 1 and is
scheduled to continue through December 15.
The individual market rate proposals apply only to
Minnesotans who directly purchase their own health insurance policies. Most
Minnesotans receive coverage from employer-based insurance or public programs
such as Medicare, Medical Assistance (Medicaid) and MinnesotaCare.
As of April this year, about 166,000 Minnesotans have
coverage through the individual market.
This year, for the first time, insurers were required to
submit two sets of proposed rates: One set with, and one set without, a new
state reinsurance program.
Earlier this year, Minnesota enacted a law to create the
Minnesota Premium Security Plan. This reinsurance program is designed to help
stabilize premiums in the state’s individual market, providing a financial
backstop against especially high-cost claims.
Implementation of the reinsurance program is contingent
on federal approval, which is pending. The state's application for what is
known as a 1332 waiver application was submitted by the Commerce Department to
the U.S. Department of Health and Human Services.
“To date, we have received positive feedback from federal
officials to get their approval for the reinsurance program,” said Commerce
Commissioner Mike Rothman. “We are still waiting to receive that approval and
hope federal authorities decide by the end of August in order to help finalize
the lower rates with reinsurance for 2018.”
Despite uncertainties about potential Congressional
action on health reform, the Commerce Department instructed insurers to prepare
their rate proposals based on existing federal laws and regulations that
currently apply for 2018.
On behalf of Minnesota consumers, the Commerce Department
will conduct a rigorous, thorough rate review of each insurer’s rate proposal.
Rates must be justified both by the benefits that
consumers receive for their premiums and by the insurance company’s ability to
pay expected medical claims costs based on premium revenue.
Insurers must also comply with state and federal laws
that protect consumers, including coverage for pre-existing conditions and free
preventive care, the adequacy of the provider network and the procedures an
individual must follow to enroll or have a claim paid.
As part of the rate review process, the Commerce
Department is accepting public comments on the insurers’ 2018 rate proposals
through August 31. Minnesotans can submit comments to healthinsurance.ratecomments@state.mn.us.
