Minnesota Health Insurers Propose Higher Rates
MINNEAPOLIS (AP) — Minnesota’s four largest small-business health insurers are proposing average premium increases next year.
The Star Tribune reports that increases range from 8 to 17 percent. Some insurers say the increases are needed because enrollees are consuming more care while medical costs are rising.
The proposed increases could affect about 160,000 people. They’re also rekindling fears that some small businesses might drop group coverage.
Employers with two to 50 workers are in the small-group market in Minnesota. According to federal data, that includes more than 275,000 enrollees this year.
Mike Hickey is the state director for the National Federation of Independent Business. He says the increases are cause for concern because they’re higher than health insurance inflation.
The Minnesota Commerce Department is expected to release final rates in October.