Health insurance deadline fast approaching

Dec. 16--Time is running out for Minnesotans to buy private health insurance coverage and take advantage of tax subsidies.

Consumers have until Wednesday to purchase health insurance that begins Jan. 1 through MNsure -- the state-based health insurance exchange. MNsure CEO Allison O'Toole said it is worth it for people to go to MNsure.org to see if they qualify for a tax credit. If they do, it can save them thousands of dollars per year in health insurance costs.

"Tax credits really continue to be the most important thing that people overlook," O'Toole said.

Those tax credits are especially important in Southeast Minnesota, which has the most expensive health insurance rates in the state. The statewide average tax credit is about $7,000 per year. In Rochester, the average amount is $10,766.

People with incomes up to 400 percent of the federal poverty level qualify for tax credits. That means individuals with an income of up to $48,240 and a family of four with an income of up to $98,400 would qualify.

Steady enrollment

So far, MNsure enrollments are on pace to exceed last year's sign ups. As of Thursday, 101,626 people had enrolled in qualified health plans. Last year, 103,500 had enrolled as of Jan. 9. Of those who have enrolled so far, 7.4 percent are from Southeast Minnesota.

This year's enrollment is the smoothest so far, according to O'Toole. The state's health insurance market has stabilized thanks to Minnesota lawmakers passing a $542 million reinsurance plan to help protect insurance companies against high claims. Private health insurance rates are expected to remain stable or go up slightly next year.

Appointments continue to fill up at Health Access Minnesota's office in Rochester. Denise Robertson, the organization's southeast Minnesota regional coordinator, said there has been a steady stream of people seeking assistance purchasing health insurance on MNsure.

Staffers often are faced with questions about what potential changes to the Affordable Health Care Act will mean for MNsure and the health insurance plans offered on the exchange.

Robertson said, "Almost every person asks, 'Am I still going to have this plan? If I enroll now, is this going to go away?'"

The answer is there will be no changes for 2018. Customers who buy insurance are signing a one-year contract with the health plans. As long as they continue to pay their premiums, that coverage will remain.

O'Toole said it is too soon to say whether confusion over possible federal health care changes will affect enrollment for 2018.

"Those headwinds are still strong. Time will tell if we see that play out in our numbers," she said.

The Trump administration shortened by half the enrollment period for the federal healthcare.gov exchange. It also cut the marketing budget for the federal exchange by 90 percent. MNsure's marketing budget has remained the same, and the state-based exchange is ramping up adds on TV, radio and online in the final days of open enrollment.

Don't qualify for tax credit? Expect high premiums

The customers who are in a tough position are those who make too much to qualify for a tax credit. That is especially true for residents in southeast Minnesota. Robertson said those particularly hard hit are couples who are nearing retirement age. For example, a 55-year-old Rochester resident and spouse would face paying $1,769 per month for a plan with a $12,000 annual deductible. If that same couple lived in the Twin Cities, they could get a similar plan for less than $1,000 per month.

"Those that don't qualify for a tax credit down here have really high premiums," Robertson said.

Last legislative session, lawmakers approved a 25 percent rebate to help consumers who didn't qualify for a tax credit with the cost of health insurance. That rebate will not be in effect for 2018. Once people exceed the income threshold for a tax credit, they won't be eligible for any financial help.

Robertson added, "It can literally be a $1 cutoff between whether you get a significant tax credit or you get nothing. It's a cliff."

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MNsure enrollment basics

-- Wednesday is the deadline for consumers to purchase private health insurance through MNsure for coverage beginning Jan. 1.

-- Consumers have through Jan. 14 to enroll for 2018 coverage. Those who enroll after Wednesday could purchase health insurance with coverage that begins Feb. 1.

-- People eligible for Medical Assistance or MinnesotaCare can enroll via MNsure throughout the year.

Need help enrolling?

MNsure contact center: 855-366-7873

Assisters from Health Access MN will be at the Rochester Public Library from 10 a.m. to 2 p.m. on the following Saturdays -- Dec. 16, Jan. 6 and Jan. 13. Individuals also can call Health Access MN at 507-589-8649 to make an appointment.

Walk-in assistance is available at Olmsted County Family Support & Assistance, 2117 Campus Drive SE, Suite 100, in Rochester. Times are 9 a.m. to noon and 1 p.m. to 4 p.m. Mondays through Thursdays and 9 a.m. to noon Fridays.

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