Minnesota health insurers have proposed new rates for the upcoming enrollment period and for the second year in a row, people are seeing double digit increases in their health insurance premiums. According to Star Tribune, the five percent of Minnesotans (270,000 people) who obtain their health insurance coverage in the individual market will be asked to pay an average of 36 to 67 percent higher premium than what they were paying last year.
The proposed rates will be reviewed and then the final rate increases are expected to be released on Sept. 30, affecting people who do not have health insurance through an employer or are self-employed. The reality is that health insurance companies need to increase premiums so that cost of claims being made can be met. In the past three years, Blue Cross Blue Shield of Minnesota has lost about half a billion dollars alone, causing them to almost entirely remove themselves from offering individual plans for 2017. Other companies have chosen to increase their premiums so that they can counteract the financial burden of claims being made.
Why so inconsistent? The amount of financial loss that the insurers experience can be tied to the overall health of the people they insure. The fact is, people who seek health insurance coverage through the individual market are generally less healthy. Insurers need to account for whatever issues might arise because of that. The result? Higher premiums.
If you're seeking some assistance to get through the upcoming enrollment period smoothly, and would like someone to answer your questions and elaborate on your concerns, you may contact one of our experienced brokers by visiting the Minnesota Health Insurance Network website for a health insurance quote or by calling 952-224-0123.
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