Update: Minnesota Premium Security Plan & Individual Market Rates
Two weeks ago, The Minnesota Department of Commerce announced on its website a plan to phase out the state-based reinsurance program for the individual market, known as the Minnesota Premium Security Plan. The government subsidy program, put in place in 2018, has had the effect of holding down premiums by approximately 20% from what they would have been in 2018-2021. Without this program in 2022, rates were expected to increase by about 20% from what they would have been if the program continued.
On Saturday, June 26, the Minnesota State Legislature took action, passing a bill to continue the Minnesota Premium Security Plan. The bill is currently with the governor and once signed, the program will continue in 2022 and we no longer expect the 20% increase in individual market rates that was previously communicated.
Proposed carrier rates for 2022 are expected in the coming weeks. The first information will become public on or around July 23 from the Minnesota Department of Commerce. Additional information will be made available from the Centers for Medicare & Medicaid Services on Healthcare.gov on or around August 1.
Final rates for the Minnesota individual market must be made available by October 2, 2021 (30 days prior to the start of open enrollment).
We will update you as we learn more. For more information or if you have questions, contact us.