Health insurance rates for 2019 announced

Oct. 03--MANKATO -- The average Minnesotan shopping for health insurance on the individual market this fall will see lower premiums compared to last year, but rate changes on the small group market are more of a mixed bag.

The Minnesota Department of Commerce announced rates Tuesday for the two insurance markets, which cover about 9 percent of all Minnesotans who have health coverage.

Blue Plus and Medica -- the companies offering individual market plans in southern and western Minnesota -- will have average rate decreases of 28 percent and 12 percent.

Cost changes in the small group market, providing coverage for organizations with two to 50 full-time employees, aren't quite as rosy. Rate changes across all companies offering plans range from a 2 percent decrease to a nearly 12 percent increase.

While decreased rates for Minnesotans buying individual insurance this year are a positive development, it doesn't make up for the exorbitant increases of past years. As recently as 2017, rate increases ranged from 50 to 67 percent. Many had those premiums greatly reduced through special funding from the Legislature.

But taking into account the decreases or modest increases last year and decreases across the board this year, the signs of a stabilizing market are there, said Commissioner Jessica Looman of the state department of commerce, in a release.

"This positive trend is important for Minnesotans who buy their own health insurance and who benefit from the comprehensive coverage these plans offer, including coverage for preexisting medical conditions," she said.

A higher percentage of healthy, and therefore less costly, enrollees than in the past helps keep the costs lower. Minnesota's reinsurance program, set to expire in 2019, also helps. The department of commerce estimates the 2019 rates are about 20 percent less expensive than they'd be without the program.

Char Vrieze, executive director at 40 Square, a health care co-operative providing insurance options to Minnesota farmers and their employees, said she's concerned about what will happen to the individual rates once the reinsurance funding goes away.

"That's something to keep in mind," she said. "While it may look wonderful this year for folks and their pocketbooks, next year may be another year without the reinsurance program."

The health care co-op was started for farmers in response to concerns about rising health care prices. This will be its second enrollment period for the co-op, which has 442 members in a region including Mankato and surrounding counties.

Jake's Stadium Pizza owners Wally and Brenda Boyer have contended with rising health insurance costs on the individual market in recent years. Wally now qualifies for Medicare, but said his wife still buys insurance for herself.

It remains a burden keeping up with the costs, he said, even if the rates are decreasing from last year to now.

"It's still costing us so much more than it used to," he said.

The two don't qualify for tax credits through MNsure, Minnesota's health insurance marketplace. Individuals earning as much as $48,560 per year and families of four earning as much as $100,400 a year could qualify for the tax credits, according to MNsure.

"Many Minnesotans and their families may be leaving money on the table and we encourage Minnesotans to visit MNsure.org," said MNsure CEO Nate Clark, in a release. "MNsure is the only place consumers can receive tax credits, and all plans available through MNsure offer comprehensive coverage that covers pre-existing conditions."

Specific details on plans available this year should be available soon through MNsure or the insurers. MNsure's open enrollment period for health insurance begins Nov. 1 and ends Jan. 13.

Follow Brian Arola @BrianArolaMFP.

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