Looks like health insurance premiums will rise once again for Minnesotans who have to purchase their own coverage for 2017.
Proposed health insurance rates have been submitted to the Minnesota Commerce department for approval with requested increases as high as 100%. The Minnesota Insurance department usually approves less than the requested increase but I suspect increases of 30% will be approved.
Here’s a comment by one Minnesota insurer of their requested rate increase on one of their individual health insurance plans be raised a minimum 48% and maximum of 100%…stating, “The biggest driver of the rate change is the increasing illness level of individual policy holders.
PIC has worked with outside consultants to estimate the risk adjustment payment or receipt due in 2016. Even with the risk adjustments, PICs individual product requires this rate increase. In 2017 the reinsurance program is eliminated, which accounts for approximately 14 percent of the rate increase.
Based on conversations with consultants we understand that high cost individuals are leaving group coverage and entering the individual market, contributing to the high cost increases. An additional driver of higher trends is the failure of younger, healthier individuals to participate in the individual market. As costs increase, healthier people leave the market and the remaining less-healthy people have higher average cost. These conditions have worsened since 2014 and are expected to continue to deteriorate.”