Dear Neighbor,
On Thursday, officials from the Minnesota Department of Commerce and MNsure announced 2016 insurance prices for individuals, families and small businesses that purchase insurance coverage in the individual and small group markets.
The most concerning news is related to increases in the individual market. Average individual market increases range from 14.2% to 49% higher than last year. Many individuals and families will see increases larger than 49%. The largest carrier in MNsure – Blue Cross Blue Shield (43% of MNsure market) – has the largest average increase (+49%). This year's increase follows double and triple digit increases for parts of the state in the last two years.
Such increases are simply unaffordable. For example, for a single 40-year-old living in the metro area, the premium increase for a gold plan has gone up $113 per month.
While many factors contribute to increases in health insurance premiums, a portion of these increases can be attributed to the higher cost of insurance mandates contained in the Affordable Care Act (ACA or Obamacare) as well as the need to recoup costs from the staggering price tag for MNsure (over $150 million of taxpayer dollars).
During discussions on healthcare reform, I have strongly opposed both Obamacare and MNsure. Now that both are law, it is critical lawmakers both increase competition and improve transparency within those plans. While it should not take huge premium hikes to create an atmosphere of bipartisanship, it is my hope Democratic legislators join with Republicans to make much needed changes to MNsure in the 2016 Legislative Session.
Given the King v. Burwell decision from the U.S. Supreme Court in June which determined that federal tax credits are also available to citizens in states using the Federal Health Care Exchange under the Affordable Care Act, we should consider transitioning away from MNsure so that families can have a more user-friendly experience in their efforts to find affordable health plans that work for them.
I’m interested in your ideas as to how we can reform healthcare in Minnesota to improve access, lower costs, and protect patients. You can e-mail me at Rep.Joyce.Peppin@house.mn or call my office at 651-296-7806.
Have a wonderful weekend,
Joyce