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State Representative Rod Hamilton
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-5373
For more information contact: Jason Wenisch 651-296-2317
NEWS RELEASE
HAMILTON’S RURAL HEALTH CARE INITIATIVE PASSES HOUSE
ST. PAUL – A bill chief-authored by State Representative Rod Hamilton (R-Mountain Lake) that would reduce health insurance premiums for small business owners has been approved in the Minnesota House of Representatives. Hamilton’s bill was amended to a larger House health care cost savings package.
“The current system is hampered by obsolete regulation that maintains artificially high health care prices in rural Minnesota,” Hamilton said. “This bill will help rates reflect the true cost of care.”
Current law limits premium rates for small businesses through geographic regions. Under this statute, rates cannot vary among regions by more than 20%, and rural premium rates cannot exceed rates in the Metro Area.
Hamilton found that in many cases, the rural rates are now well below what is paid in the Metro area – in some cases by more than 30%. Hamilton’s bill would remove the 20% disparity rate between different geographical areas and add new regions – a move that is expected to increase competition and decrease rates for small business owners.
“Small employers in our rural areas have been overcharged on health care premiums for far too long,” Hamilton said. “This legislation will allow them to pay actual costs – not mandated costs - in their respective area.”
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