(Saint Paul, MN – Insurance News 360) – 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 3-12 percent and higher. Health insurers submitted proposed rates for all 87 counties.
Insurers submitted proposed 2019 rates to the Minnesota Commerce Department on June 1. 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 rates for 2019 are available on the Minnesota Commerce Department’s website (mn.gov/commerce).
Public comments accepted until August 15
Members of the public are invited to comment on insurers’ preliminary proposed rates for 2019 as the Commerce Department conducts its review.
Submit comments through Aug. 15 via email to firstname.lastname@example.org.
Open enrollment begins on Nov. 1 and runs through Dec. 15, 2018.
Four percent of Minnesotans buy health insurance in the individual market; 5 percent through small group market
Individual health plans provide coverage for Minnesotans who purchase their own insurance instead of from an employer or public program. About four percent of Minnesotans are covered through the individual health insurance market – with most buying coverage through MNsure.
Small group health plans cover businesses and organizations with 2 -50 full-time employees. About five percent of Minnesotans currently get their coverage through the small group health insurance market.
The Commerce Department will review each proposed rate filing, and the Minnesota Department of Health will review provider networks to ensure they meet state and federal adequacy requirements.
That rate review must show justification by the benefits for consumers, and the insurance company’s ability to pay 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, free preventive care, adequacy of the provider network and the procedures an individual must follow to enroll or have a claim paid.
Source: Minnesota Department of Commerce.