Minnesota’s preliminary rates for the state’s 2018 individual insurance market were revealed by the Department of Commerce on Monday revealing that recent legislative reforms have reversed a multi-year pattern of double-digit premium increases that have plagued the state since the implementation of Obamacare and its implementation in Minnesota-MNsure.
“Minnesota’s individual health insurance market has been on a tumultuous course since the implementation of Obamacare/ MNsure. After a continuous trend of double-digit premium increases, that market once stood on the brink of collapse,” said Senator Mary Kiffmeyer (R-Big Lake) “Thankfully, with Republican implemented legislation of a previous successful reinsurance program, tens of thousands of Minnesotans now stand to see their premiums decrease for the first time in years.”
When approved by the federal government, the Republican led Minnesota Premium Security Plan will bring about premium decreases for thousands of Minnesotans across the state. In comparison, the average rates on the individual market had increased by double digits every year since 2014, including a catastrophic 60 percent rise in 2017. Because of the reinsurance program, all current insurers will continue to provide coverage for the state’s individual market next year. Without reform, the Minnesota Department of Commerce had predicted that rates would have continued to rise, increasing as much as 30 percent in the coming year.
“Republicans in the legislature are committed to continue to implement common sense reform,” added Senator Kiffmeyer “Through our work at the Capitol we can continue to aim to lower costs, increase care options and restore our state’s status as a health care leader.”
Proposed Average Change with Reinsurance
Proposed Average Change without Reinsurance
-1.5% — +11.4%
+16.4% — +31.7%
-14.5% — -13.4%
+3.3% — +4.6%
Medica Insurance Company*
-5.3% — +5.3 %
+15.4% — +29.4%
PreferredOne Insurance Company
-40.8% — -36.8%
-25.5% — -20.6%
Final rates for the 2018 individual market are expected to be released in the fall of this year after further negotiating and information.