MN leaders conflicted over insurance solutions
Individual insurance buyers face 50 to 67 percent average increases to their plans. Some people have even seen their insurance costs double.
And the increases seem to leave everyone with more than a few questions.
"If it doubled this year, what the hell's it going to do next year?" said
Individual insurance costs have steadily increased in
That's due in part to the way the state's insurance market is set up. Residents in rural areas are older and in need of more health care than people living in the metro, which means rural people will pay higher insurance costs on average because they're more likely to use health care.
In addition, fewer health care providers serve rural areas compared to
So residents in areas like south-central
What's more, individual insurance costs have increased in particular as more older people decided to buy individual plans rather than insurance through work.
"In the past, the individual rates were so favorable," said
That's no longer the case, in part due to changes
The ACA made it illegal for companies to deny coverage to buyers with pre-existing medical conditions. In the past, the state had a high-risk individual insurance pool to cover those buyers through the
MCHA closed down in 2015, however, forcing about 26,000 enrollees to switch their plans.
Those enrollees needed much more coverage than the average family, and costs soon built up. Less than 1 percent of Minnesotans, about 5,300 people, account for more than
"A small number of people need expensive care, and in the past we had shared that throughout the community, throughout the state," said
Rising costs have forced some companies to abandon the individual insurance market. PreferredOne quit offering individual insurance on the MNsure insurance exchange in 2015, and
The remaining companies then have to shoulder even more costs, causing the state to sign off on enrollment caps for some companies.
State officials have warned all eligible insurance companies are ready to abandon the individual insurance market in 2017 if something doesn't change.
What's the solution?
Lawmakers are trying to pass insurance reform and short-term relief for individual insurance buyers this year, but those efforts will likely be complicated by partisan gridlock between Democrat and Republican legislators.
Dayton has championed a
Yet Dayton's proposal would take about two months to put into effect, and critics point out some of that money would go to residents who can already afford the high insurance increases.
The
About
"It is just spreading the really high medical bills so that everyone continues to have access to care," Schowalter said. "Reinsurance makes sure that nobody, no insurer, no community is unable to get care for the people who are there."
State officials and a few other organizations including the
The
Dayton previously has said he won't sign a relief effort if it includes reinsurance efforts or other parts of long-term reform, which lawmakers also must tackle this session.
Both sides appear to agree on bringing back a reinsurance pool for high-risk buyers.
For all their work, state lawmakers won't make as much of an impact this year on insurance prices compared to
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