The Minnesota Department of Commerce released final rates for the state’s 2018 individual health insurance market, revealing that recent legislative reforms will result in premium savings of 20% on average. Due to reinsurance, a program supported by senator rich draheim, Minnesotans will not only experience lower rates on the individual market, but also be able to purchase plans in every county statewide with no enrollment caps. This stands in stark contrast to last year when customers faced rate increases of 50-67%, with some individuals finding no options at all in their respective counties.
“After years of premium increases, the individual health insurance market in Minnesota has finally stabilized,” said Sen. Draheim. “Reinsurance is an important first step in fixing our healthcare, however further reforms are needed. I will continue to support healthcare solutions that not only lower our cost of care, but increase access to doctors and vital services for all Minnesotans.”
The legislature’s reinsurance plan received a waiver from the federal government in order to modify the affordable care act (Obamacare). Currently, Minnesota is one of only two states implementing reinsurance. Without reform, the Minnesota Department of Commerce had predicted that premium rates would have continued to grow, increasing by as much as 30 percent over the coming year.