The Minnesota Commerce Department today released insurers’ proposed 2018 rates for Minnesota’s individual and small group health insurance plans.

The rates are preliminary and are subject to rate review by the Commerce Department, the Commerce Department said in a Monday morning news release. Final, approved 2018 rates with more detailed plan information, including provider networks, will be publicly available by Oct 2.

This year, for the first time, insurers were required to submit two sets of proposed rates:

  1. Those that assume implementation of a new state reinsurance program in 2018, and
  2. Those that assume no reinsurance program in 2018.

Earlier this year, Minnesota enacted a law that creates the Minnesota Premium Security Plan – a reinsurance program for 2018 and beyond that is designed to stabilize premiums in the state’s individual market by providing insurers with some financial protection against especially high-cost claims. Implementation of the reinsurance program requires federal approval, which is pending. 

The actual rate change a consumer will experience in 2018 can vary from the average – with factors such as specific plan, geographic rating area and age playing major roles.

Insurer

Proposed average change with reinsurance

Proposed average change without reinsurance

Blue Plus

-1.5%   —  +11.4%

+16.4%  —  +31.7%

Group Health*

-14.5%   —  -13.4%

+3.3%   —   +4.6%

Medica Insurance Company*

-5.3%   —   +5.3 %

+15.4%   —  +29.4%

PreferredOne Insurance Company

-40.8%   —  -36.8%

-25.5%   —  -20.6%

UCare

-14.5%

+9.4%

* Current HealthPartners Insurance Company enrollees will default renew into Group Health and current Medica Health Plans of Wisconsin enrollees will default renew into Medica Insurance Company. A consumer is not required to accept the default renewal plan and may select any plan from any insurer during open enrollment.

Small group rates are likely to rise if the proposals are accepted:

Insurer*

Average Rate Change

Blue Cross

+9.2%

Blue Plus

+8.2%

Gundersen

0.0%

HealthPartners, Inc

14.3%

HealthPartners Insurance Company

+17.4  

Medica Insurance Company

+7.7   —  +12.2%

PreferredOne Community Health Plan

20.0%

PreferredOne Insurance Company

12.9%

Sanford

0.4%

* For 2018, Federated Insurance Company has announced that it is exiting the health insurance market in Minnesota and all other states in which it operates.

There is no open enrollment period in the small group market. Small employers can offer a 12-month plan that begins on the first of any month.