Small-business premiums on the rise in Minnesota
The state
Premium increases in the small-group market regularly raise concerns that companies might no longer be able to afford offering the benefit. But health coverage remains a key way for small and large employers to compete for talent in a tight labor market.
"Small group is trending up, which is a concern because we had increases last year after several stable years," said
Small-group health plans provide coverage for benefits and organizations with two to 50 full-time employees. At the end of last year, about 263,000 Minnesotans were covered by the plans.
When Commerce released rate proposals for the small-group market in July, the largest carriers were seeking average increases of 8 to 17 percent.
"In recent years, our small-group health insurance market has been relatively stable," Rothman said. "It continues to be a relatively stable market."
The average increase for most at
At
"As in years past, these rate increases reflect the general rise in costs for medical services and prescription drugs," Commerce said in a statement. "The rate increases for 2018 also reflect higher medical-utilization levels and claims reported by the insurers due to a somewhat less healthy enrollment population."
Schneeman said he's not seeing many small businesses dropping health plans, since the lack of benefits is a competitive disadvantage when it comes to hiring workers. Plus, the state's individual health insurance market has been unstable with large premium increases, decreased choices in insurance providers and tight limits on the network of doctors and hospitals available to subscribers.
"There isn't a viable individual market to send your employees to," Schneeman said via e-mail.
Twitter: @chrissnowbeck
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