Minnesota consumers to see major increases in their insurance premiums
Some consumers in Minnesota may see their health insurance premiums skyrocket next year. The state’s Commerce Department has announced that regulators have approved rate increases coming from some of the state’s largest insurance providers. According to the agency, rates for health coverage will rise by an average of 49% throughout Minnesota. The largest rate hikes will be coming from Blue Cross and Blue Shield of Minnesota.
Blue Cross Blue Shield intends to raise rates by an average of 49%
According to the Minnesota Commerce Department, Blue Cross and Blue Shield of Minnesota will have the highest rate increases in the state. Four other insurance providers will be raising rates by an average of 14% to 39%. The rate hikes will only apply to those purchasing coverage through the individual market, which is approximately 6% of the state’s population. The rate increases will affect an estimated 300,000 consumers that currently have health insurance coverage and intend to renew or purchase new policies next year. Rate hikes will also apply to those purchasing coverage through the state’s exchange, which is also an individual market.
Rate increases spark some controversy and concern among consumers
The major increase in premiums has caused some controversy in the state. State officials and consumers have issued some concern about the provisions of the Affordable Care Act. The federal law was designed to change the country’s health care system and make health insurance coverage more accessible to millions of people living in the United States. While the law has succeeded in expanding the availability of insurance coverage, but it has also driven up the costs of coverage by a significant degree.
Federal subsidies could help consumers afford insurance coverage despite high rate increases
Some consumers may be able to take advantage of subsidies from the federal government, which can make health insurance coverage more affordable. For some consumers, increase insurance premiums may make it impossible for them to afford their policies. As such, they may lose access to the medical care that they need.