ST. PAUL – The Minnesota House of Representatives on Monday approved a bill which aims to provide double-digit reductions on health insurance premiums by mitigating the impact of high-risk consumers in the individual market.
Dubbed the Minnesota Premium Security Plan, the proposal would establish a state-based reinsurance program administered by the Minnesota Comprehensive Health Association, which for more than 40 years ran a high-risk pool that brought stability to the individual market and ensured the sickest Minnesotans had access to coverage.
“Minnesota long has been considered a leader in health care and this helps us restore some of what was lost through the implementation of Obamacare,” said Rep. Jim Knoblach, R-St. Cloud. “Prior to the enactment of Obamacare, Minnesota had the Minnesota Comprehensive Health Association, which helped achieve the goals of this new program. While current federal laws prohibit us from bringing back MCHA exactly as it was, this new reinsurance program should help further improve the individual insurance market, increasing accessibility and reducing premiums by around 18 percent for those who need care the most.”
The new program would be funded by existing revenue sources. The MCHA board, comprised of members of the public and health plan experts, would design payment parameters to mitigate risk, stabilize or reduce premium rates, increase participation, and account for federal funding available for the plan.
Parameters would be submitted to the Department of Commerce for approval. The board also would have the authority to audit eligible health carriers and is required to contract with an independent auditor for an annual reinsurance program.
The House bill (H.F. 5) passed 78-53. The Senate is expected to vote on a similar proposal in the coming weeks.
-30-