Commerce approves rates for individual, small group insurance

The Minnesota Department of Commerce recently announced its approval of 2024 rates for Minnesotans who buy small-group and individual health insurance, underscoring the breadth of choices available to consumers and the stability of the state's insurance market. The rate approvals are part of Commerce's focus on reducing consumers' health insurance costs.

"Our announcement about 2024 rates reflects Commerce's continuous efforts to keep health insurance premiums relatively low in our state and ensure a strong marketplace," said Commerce Deputy Commissioner of Insurance Julia Dreier. "We are focused on goals to give consumers choices, to reduce economic barriers to health care, and to improve access to care when people need it. We continue to explore innovative ways to deliver that kind of health care for all Minnesotans."

APPROVED HEALTH INSURANCE RATES FOR 2024

Details of approved health insurance rates:

Individual market: Average increases range from 1.9 percent to 5.5 percent for the 167,000 Minnesotans who buy individual health plans.

Small group market: Average increases range from 4.3 percent to 7.09 percent for the three largest carriers, covering roughly 185,000 of the 229,000 Minnesotans covered by small group plans.

Cost-saving measures:

In 2023, 66,000 Minnesotans received federal tax credits that lowered the cost of their monthly premiums. Those tax credits, only available to those who buy

insurance through MNsure, are expected to save eligible households an average of $6,750 annually on their premiums in 2024.

Governor Tim Walz signed bipartisan legislation in 2022 to extend Minnesota's Premium Security Plan, also known as "reinsurance," for consumers who buy health insurance individually. Reinsurance lowers the cost of premiums by an average of 20 percent from what they would otherwise be.

Each year, Commerce receives, and reviews new rates proposed by health insurers for the coming year. The proposed rates do not reflect what the actual cost will be for consumers. Many Minnesotans who buy health insurance through MNsure, Minnesota's health insurance marketplace, receive financial help through tax credits that help lower the cost of their monthly premium.

Scenarios with examples of how tax credits through MNsure can lower health care costs can be found at MNsure.org.

"We encourage Minnesotans who buy individual insurance to use MNsure to shop and compare plans," Dreier said. "The plans offered on MNsure all offer essential benefits that Minnesotans want, like preventive care, emergency services and outpatient care."

In 2024, as in 2023, every Minnesota county will have at least two insurance carriers offering individual market plans, with most counties having three or four. Every county also will have at least 27 plan options for individual buyers.