FOR IMMEDIATE RELEASE
January 9, 2013
STATE REP. THOMAS HUNTLEY CO-AUTHORS BILL ESTABLISHING
A HEALTH INSURANCE EXCHANGE
St. Paul, Minnesota — Today, Rep. Thomas Huntley (DFL – Duluth) announced that he has signed on as a co-author on bipartisan legislation to establish a health insurance exchange. The exchange will be an online marketplace where Minnesotans can compare and purchase health insurance coverage. Health insurance exchanges are a key component of the Affordable Care Act.
State Representative Joe Atkins (DFL – Inver Grove Heights) and State Senator Tony Lourey (DFL – Kerrick) are the lead authors on the bill. The legislation is also co-authored by two leading House Republicans: Rep. Greg Davids (R – Preston), the GOP Lead on the House Tax Committee, and Rep. Jim Abeler (R – Anoka), GOP Lead on the House Health and Human Services Finance Committee.
As chairman of the House’s Health and Human Services Finance Committee, Huntley is charged with the implementation of much of the Affordable Care Act. He is looking forward to the challenge.
“This is, I believe, the most important moment in health care history in the United States since 1965 when we came up with Medicare and Medicaid,” Huntley said. “This year you’re going to see the biggest change in our health care system. It’s still going to be in the part market, most of it. It’s going to be the same providers we’ve had, but they’re going to be paid a little different. And hopefully we will be a dramatic reduction in health care costs.”
“It will dramatically change our health care system,” Huntley said. “And Minnesota is again leading the way.”
The health insurance exchange is projected to serve one out of every five Minnesotans — more than 1.2 million Minnesotans. Atkins described it as “a Minnesota-made online marketplace where individuals, families and small businesses will be able to get quality, affordable health coverage that fits their budget.”
Minnesota families are projected to save over $1 billion by using the exchange to purchase insurance — with the average family saving $500 and a lower-income family saving approximately $1,800.
Nearly 200,000 small businesses employees are also expected to access coverage through the exchange. Small businesses currently pay on average 18 percent more than large businesses, an average of $11,000 per year for a family coverage. Small employers are projected to save up to 7.5 percent off of premium costs in the exchange and those eligible for tax credits will save even more. Small business owners would be able to choose the plan for their workers, or let their employees choose the plan that’s right for them.
“This is a key moment in my 20 years in the Legislature. I think this will be the most important year I will be here.”
The bill funds operation of the exchange by charging health insurance companies a 3.5 percent surcharge on premiums of the health plans purchased through the exchange.
Enrollment in the Minnesota Health Insurance Exchange begins October 1, 2013, with plan coverage starting January 1, 2014. Minnesota’s Blueprint Certification Application, submitted to the U.S. Department of Health and Human Services on November 16, 2012, stated that the legislature would make policy decisions by March 31, 2012. If states are unable to set up an exchange, the federal government will step in and establish it for them.
The legislature is expected to take quick action on an exchange with committee hearings planned for next week.