HEALTH INSURANCE GROUP FINDS MNSURE 2015 RATES ANNOUNCEMENT MISLEADING, FLAWED AND INCOMPLETE

Minnesota Association of Health Underwriters calls for release of all rates for

individual plans so informed decisions can be made on enrollment; says MNsure’s rate

comparisons aren’t on comparable groups; 2015 rate is tied to a base that omits most

people covered by MNsure in 2014; average increase announced does not reflect the

increase those enrolled will receive

The organization representing Minnesota’s health insurance agents finds major

deficiencies in MNsure’s statements about premiums for 2015, saying you have to do

the assessment on comparable groups and this method is flawed, misleading and

incomplete.
Alycia Riedl, immediate past president and board chair of the Minnesota Association

of Health Underwriters, says the 4.5 percent increase suggested by MNsure is

significantly underestimated for most people who enrolled in policies through

MNsure. According to Riedl, the question that needs to be answered is “What is the

average increase for individuals that are enrolled today, not what is the average

increase of all of the plans that have been approved to be offered through MNsure in

2015?”
Asking why all of the individual rates for 2015 are not being released, as they were

last year, Riedl says consumers and agents can’t make any valid comparison of all

private insurance options and costs without complete transparency of all individual

plan rates for 2015, not just those that are offered through MNsure. Minnesota

consumers are not able to compare all choices that will be available to them, which

puts them at a disadvantage in being able to make a fully informed decision.
“Congratulations on maintaining low premium rates for 2015 are premature, at best,

since most observers foresee a significant increase for most individual

policyholders,” said Riedl.
She explained PreferredOne, the largest and lowest cost insurer of individuals

enrolled through MNsure in 2014, has withdrawn from the state based exchange. Those

individuals that receive tax subsidies with a PreferredOne policy will need to find

another insurer that is offering policies through MNsure to ensure they continue to

get them next year. For consumers that do not qualify for, or do not want to accept

a tax subsidy, they will be able to renew directly with PreferredOne or purchase

another policy directly from another insurance company. “But, the reality is that

renewal rates can be expected to be significantly greater,” she said, adding that

PreferredOne spokesman Steve Peterson has said that continuing to offer insurance

through MNsure is “not administratively and financially sustainable.” According to

Riedl, “This begs the question of how will consumers be able to make an educated

decision if they don’t have all the information to evaluate each plan?”
MAHU urges the Department of Commerce and the Governor to release all information on

premium increases now so that consumers can make wise decisions, rather than rely on

sweeping generalities. “It is hard to understand how the Department of Commerce and

MNsure can speak of the lowest rates in metropolitan areas when all of the rates

have not been disclosed,” said Riedl.
MNsure has also announced that there is more assistance available for consumers.

“What they are really saying is that rates have increased, therefore more people

will qualify for tax subsidies,” said Riedl. “We know this is a good thing for

MNsure’s operating budget, but how is that a good thing for consumers and

taxpayers?”
MAHU reminds the public that independent health insurance agents can provide advice,

advocate for, and support individuals on a full range of health insurance providers,

and that there is no additional cost to the consumer if they work with an

independent agent who can help them enroll in a policy through MNsure, or directly

through a private insurer.

http://www.emahu.org/