Examining Minnesota reinsurance [Fergus Falls Daily Journal, Minn.] – InsuranceNewsNet

Jul. 14—The Minnesota Department of Commerce reinsurance program, termed Minnesota’s premium security plan, has been approved for extension from 2023-27.

The program reduces premiums and financially aids in the procurement of health insurance for people who choose to purchase coverage on their own, with proponents touting that it will stabilize Minnesota’s individual health insurance market and lower costs for consumers across the state.

The MDC application cited data collected from 2018-22 illustrating a 15-20% average decrease in premiums across the state when compared to estimated costs without the program.

Gov. Tim Walz headed talks to implement the waiver extension and signed the bill (Chapter 44, SF 3472) into law on Apr. 1, 2022 — the legislation also requires that health plans cover postnatal visits and offer products with more affordable prescription drug benefits.

The program was initially conceived in 2017, and has since experienced apparent success. Individual insurance markets have appeared to stabilize and in 2022, there are only seven counties in the state offering less than three individual market plan offerings.

Commerce commissioner, Grace Arnold, notes the importance of the renewed reinsurance waivers. “Reinsurance has been an important tool for the state of Minnesota to help keep health insurance accessible for Minnesota consumers who buy their own insurance. Going forward, our goal is to make progress on making health coverage more affordable through innovations and health system reforms.”

The individual health plan market exists for individuals not insured through employers and ineligible for Medicare or Medicaid.

As of 2022, approximately 3% or roughly 163,000 people in the state have these plans.

More information regarding individual health plans can be found here: mn.gov/commerce/industries/insurance/reinsurance.

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