Dear Neighbor,
The House Environment, Natural Resources and Agriculture Finance Committee held a series of meetings earlier this week to hear testimony on several topics. Among them was the subject of air pollution and its effect on human health. A doctor from the Gillette Children’s Hospital told committee members that asthma is the leading cause of health-related absence from school for children.
We also heard of a program called Project Green Fleet that’s a voluntary effort to improve air quality and protect public health. One of the project’s main goals has been to upgrade the pollution control equipment on all older diesel-powered school buses used in Minnesota. We were told more than 3,000 buses have been retrofitted so far, and that fewer than 100 remain to complete the entire project.
Reports show problems with MNsure
I sent a legislative column to newspapers in the district this week and part of my message was about struggles with our state’s new health insurance program. In case you missed it, here’s a trimmed-down version of what I wrote:
Reports fill the news seemingly every day with revelations about problems with the new insurance exchanges, both at the national level and here in Minnesota. Among them are issues with processing applications, incorrect program determination and tax credit calculations, problems with the electronic transfer of information to health carriers, the inability to handle paper applications, security concerns, and lengthy call-center wait times.
Aside from those technical issues, I have heard from residents who are seeing their health insurance premiums increase dramatically. They are frustrated and wonder why. Premiums are based, at least partly, on claims experience, which is a look back at usage in a particular group of insured people. Another factor in determining rates is a projection looking forward at future claims; something called “perceived risk.” If it’s determined that usage is expected to increase, premium rates will be adjusted upward to reflect that.
Under the Affordable Care Act (ACA), no one can be denied coverage because of pre-existing conditions. That is a good feature for those with medical conditions. However, rates will, in all likelihood, be established higher for everyone because of the perceived risk of increased usage for those with pre-existing conditions.
Another factor that concerns me about the viability of the new health insurance system is the low number of younger people signing up for coverage. If sign-up of this age group remains below forecast, it could greatly affect the price of premiums next year in a negative way.
Sincerely,
Paul