Minnesota health insurers seek premium hikes for individuals up to 12.75%

Minnesota health insurers are seeking bigger premium increases for 2025, including some double-digit hikes for people in the individual and small-employer markets.

The proposals, which the Minnesota Department of Commerce posted last month, are the latest sign health costs are on the rise as the nation emerges from the COVID-19 public health emergency.

Eagan-based Blue Cross and Blue Shield of Minnesota, the state's largest nonprofit health insurer, is seeking double-digit rate increases in both markets, according to the Commerce Department data. The company did not immediately respond to a request for comment.

"While these are initial rates as proposed and filed, rates are subject to review by the Departments of Commerce and Health," state officials said in a statement. "Final approved rates may vary from these proposed rates for many reasons."

In 2023, about 163,000 state residents had coverage through individual market policies, most sold through the MNsure health insurance exchange. The proposed rates don't reflect the significant savings many buying on MNsure receive via federal tax credits.

More than 209,000 Minnesotans have coverage through small group policies in 2023.

Data the Commerce Department posted last month shows the three largest individual market insurers are seeking average increases that range from nearly 8% to nearly 13%. During each of the past two years, by contrast, proposed average increases were no higher than 8% across these three carriers.

In the market where small employers buy coverage, the three largest carriers are proposing hikes ranging from nearly 4% to nearly 16%. While comparable proposed rates for previous years weren't immediately available, these carriers in the small group market have generally received approval for increases ranging from 2% to 7% in recent years.

Small employer groups typically employ fewer than 50 workers.

In the individual market, the HMO division at Blue Cross has requested an average rate increase for next year of 12.75%: the biggest proposed jump across this market. In the market for small group coverage, Blue Cross requested an average rate increase of 15.78% for customers buying through its health insurance division and 10.47% for those buying the company's HMO coverage.

Last year, Blue Cross saw its operating income slip about 40% to $103.7 million, continuing a string of profitable years for the health insurer.

This is a developing story. Check back for updates.

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