For more information contact: Jason Wenisch 651-296-2317
ST. PAUL – Help could soon be on the way to small business owners burdened with paying over-inflated health care costs. A bill chief-authored by State Representative Rod Hamilton (R-Mountain Lake) that would reduce health insurance premiums for small business owners has been passed by the Legislature and presented to the Governor.
“The current law is so outdated that the rural Minnesota is actually subsidizing the Metro Area,” Hamilton said. “Small business owners expect to pay the true cost of health care, and this legislation gives them that opportunity.”
Hamilton’s proposal allows health plans to create regions of seven neighboring counties, and eliminating the requirement that regional plan premiums cannot vary by more than 20%. Currently, plans can only have three regions. 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% - yet small business owners are forced to pay the artificially-mandated costs. He said his bill will increase competition, which is expected to decrease premium rates.
“I’m pleased the Legislature finally recognized the injustice being placed on our rural businessmen,” Hamilton said. “Without our small businesses, rural Minnesota would collapse. Hopefully, they will find this change beneficial.”
Hamilton’s bill was part of a larger health care cost savings package approved by the Legislature. Hamilton is also authoring an initiative that would increase Medical Assistance payment rates for rural nursing homes, which he expects to see extensive debate next session.