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. Projections indicate the move could reduce premiums by approximately 18 percent.
“Our state had the reputation of being a national leader in health insurance but, unfortunately, some of the good services we provided were diminished with the implementation of Obamacare and MNsure,” said Rep. Paul Anderson, R-Starbuck. “This bill would help us restore some of what was lost, increasing access to insurance and reducing costs for the people in our state who need it 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.
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