Health Insurers Propose Decreased Average Rates for Minnesota’s 2019 Individual Market

ST. PAUL, Minnesota, June 15 -- The Minnesota Department of Commerce issued the following news release:

Health insurance companies are proposing mostly decreased premium rates for 2019 in Minnesota's individual health insurance market. The average proposed rates show decreases that range from three percent to more than 12 percent. Health insurers submitted proposed rates for all 87 counties.

Insurers submitted proposed 2019 rates to the Minnesota Commerce Department on June 1 to be made public on June 15. These preliminary rates will be reviewed by the Department and final, approved 2019 rates will be announced by October 2, 2018.

The proposed rates include the Minnesota Premium Security Plan, a state-based reinsurance program enacted in 2017 and in effect for 2019. For an insurer, reinsurance offsets 80 percent of an individual's total annual medical claims costs between $50,000 and $250,000. State law authorizes up to $542 million in 2018-2019 for the reinsurance program.

Proposed 2019 rates are now posted on the Minnesota Commerce Department's website (mn.gov/commerce). Also available are proposed 2019 rates for small group health plans that serve employers with 2-50 employees.

Public comments accepted until August 15

The insurers' proposed 2019 rates are preliminary and must be reviewed by the Commerce Department.

As part of the rate review process, the Commerce Department is accepting public comments on the insurers' 2019 rate proposals through August 15, 2018. Minnesotans can submit comments to [email protected].

The 2019 open enrollment period to buy health insurance begins on November 1, 2018, and is currently scheduled to continue through December 15, 2018.

About four percent of Minnesotans buy health insurance in the individual market

Individual health plans provide coverage for Minnesotans who purchase their own insurance rather than receiving coverage through their employer or a public program such as Medicare, Medical Assistance (Medicaid) or MinnesotaCare. About four percent of Minnesotans currently get their coverage through the individual health insurance market - with most buying coverage through MNsure.

Small group health plans provide coverage for businesses and organizations with 2 to 50 full-time employees. An estimated five percent of Minnesotans currently get their coverage through the small group health insurance market. Employers purchase the coverage through insurance brokers/agents or directly from the insurers.

Proposed rates are reviewed by Minnesota Departments of Commerce and Health

On behalf of Minnesota consumers, the Commerce Department will review each insurer's proposed rate filing. The Minnesota Department of Health also reviews the insurers' provider networks to ensure they meet state and federal adequacy requirements.

In the rate review, insurers' rates must be justified both by the benefits that consumers receive for their premiums and by the insurance company's ability to pay expected medical claims costs based on premium revenue.

Insurers must also comply with state and federal laws that protect consumers, including coverage for pre-existing conditions and free preventive care, the adequacy of the provider network and the procedures an individual must follow to enroll or have a claim paid.