Minnesota health plan shoppers brace for premium jumps
But the market for individuals and families -- about 5 percent of state residents -- changed significantly in 2014 with the federal health law, which stopped insurers from denying coverage to those with preexisting health problems.
In 2014, claims exceeded premiums in the market by some
The mismatch helps explain why the roughly 270,000 consumers in the market could experience sticker shock on Thursday with the expected release of preliminary rate requests for 2017.
"I know the cost is going to go up," said
On Thursday, the federal government is expected to release information on preliminary rate requests for health insurers selling in
The announcement will launch a public comment period that leads up to the release of final rates on
Across the country, while some health insurers have reported success in the individual market others have announced pullbacks due to mounting financial losses.
Dropouts by all insurers from
"I think we'll be lucky if it's [only] 40 percent," he said.
Self-employed people, and those who don't get coverage from their employer, buy health insurance in the individual market, which does not include people covered through
Health insurers in
In June,
In the wake of the news, the
"I'm expecting premiums to go up faster in 2017 in most states -- faster than they have in past years," Cox said. "And I don't see any reason why
In 2014, individual market rates through MNsure in
The benchmark premium for a 40-year-old in
Rates vary by region. In
If rates jump, MNsure officials want consumers to know that federal tax credits are available to individuals at certain income levels who buy coverage through the state's health insurance exchange. That's a message that will be more important than ever for 2017, said
"The reality is, these premiums for some families -- it's their family premium or their mortgage," Coleman said. "These are becoming very challenging costs from a budget perspective. And some families will have to consider that trade-off."
Currently, a majority of individual market shoppers are in health plans they purchased outside the exchange. Across the individual market, the mismatch between premiums collected and claims paid tells only part of the story about financial losses for health insurers, said
Beyond paying claims, health plans pay taxes and have overhead costs that also have driven red ink in the individual market, Schowalter said. Even after factoring the financial safety nets in the health law, the trade group estimates that most carriers in the state have collectively seen about
The information released Thursday likely won't include information about the geographic reach of health plan offerings, or how health plans are trying to control cost by limiting the network of doctors and hospitals that's open to patients. So, the focus will be on the rates.
"I am expecting another painful set of discussions about how to pay for really expensive care," Schowalter said.
"Everyone knew that the federal changes were going to create a long and bumpy road," he said. "But it is much longer and a lot bumpier than anyone expected."
Twitter: @chrissnowbeck
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