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Reinsurance Slows Health Rates in Minnesota

Health insurance rate increases requested for 2018 in Minnesota are relatively modest partly because of a new reinsurance program under which the state will help pay the largest claims...
September 6, 2017

Health insurance rate increases requested for 2018 in Minnesota are relatively modest partly because of a new reinsurance program under which the state will help pay the largest claims. State officials and insurers say that, as a result of the program, premiums next year will be about 20 percent lower than they would otherwise have been.

Minnesota has budgeted about $270 million in each of the next two years for the program, which potentially benefits all of the 160,000 people buying insurance on their own, not just those with large claims. The program will be invisible to consumers, and they will not have to file additional paperwork or do anything different from what they ordinarily do.

HealthPartners, a Minnesota company that provides coverage to 62,000 people who purchase insurance on their own, has proposed rate reductions that average 13 percent to 15 percent next year. Without the reinsurance program, it would require rate increases of 3 percent to 5 percent, it said in filings with the Minnesota Commerce Department.

 

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