SAINT PAUL, Minn. – Today, the Minnesota House approved legislation to reauthorize the state’s Premium Security Plan, also known as the Reinsurance Program, through 2027. The bill also authorizes the Minnesota Department of Human Services to consult with relevant federal agencies to develop a study of Minnesota’s health care insurance systems and develop a proposal for a public health insurance option.
Rep. Jen Schultz, author of legislation to create a MinnesotaCare Buy-In option, voted for the bill.
“We know reinsurance is a bridge to nowhere. We can’t continue to pour billions of dollars worth of subsidies into insurance companies with no measurable outcomes to show for it,” Rep. Schultz said. “Meanwhile, we have about 4.5% of our population without insurance, and a much higher percentage with insurance they can’t afford to use. The study called for by this legislation will give us the information we need to build a health care system that expands access to health care and works better for our state. A public option like the MinnesotaCare Buy-In is the bridge to the high-quality, affordable health insurance families, small businesses, and all Minnesotans deserve.”
Under the bill, DHS would be required to present a report comparing service delivery and payment system models. The current delivery model would be compared with at least two alternative models, which must include a state-based model in which the state bears insurance risk and may contract with a third-party administrator for claims processing and plan administration.
The study of a public option must include information about the impact on the current market, actuarial and financial analysis, and the cost of implementation, while requiring the new program to protect MinnesotaCare.
The legislation also included a variety of other health care reforms, including a requirement for individual and small group health plans to have fixed co-pays for prescription drugs, with coverage applied before a deductible is met. The bill also contains a measure requiring health plans and Medical Assistance to cover three postnatal visits, a requirement for DHS to adjust cost-sharing so the MinnesotaCare actuarial benefit is 94% or more, which will help maintain or lower cost-sharing for people in MinnesotaCare, and creates a mental health parity and substance abuse accountability office within the Department of Commerce.