Julia Dreyer highlights Minnesota's successful reinsurance program to stabilize health insurance costs

In a recent meeting of the Minnesota Senate Committee on Commerce and Consumer Protection, Deputy Commissioner of Insurance Julia Dreyer provided a comprehensive overview of the state's reinsurance program, known as the Minnesota Premium Security Plan. This program plays a crucial role in stabilizing the individual health insurance market, particularly for the 187,000 Minnesotans who rely on it for coverage.

Dreyer emphasized the importance of reinsurance, which essentially acts as insurance for insurance companies, helping them manage the costs associated with high-risk patients. Without continued support for the program, there is a significant risk of a 25% premium increase for individuals in the market, which could lead to a loss of coverage for many and increased reliance on emergency care.

The reinsurance program was established in 2017 in response to a crisis in Minnesota's individual insurance market, which had seen premiums soar by 155% from 2014 to 2017. The program has since stabilized the market, allowing for multiple carriers to operate in every county and reducing premiums by approximately 20%. Dreyer noted that the program has successfully maximized federal funding, receiving over $650 million to keep premiums low and ensure a variety of plan options for consumers.

The Minnesota Comprehensive Health Association (MSHA) oversees the day-to-day operations of the reinsurance program, drawing on its experience managing the state's high-risk pool prior to the Affordable Care Act. This collaboration has been essential in maintaining the program's effectiveness and ensuring that it meets federal requirements.

As the committee discussed the future of the reinsurance program, the urgency for legislative action was clear. Without it, the stability achieved over the past few years could be jeopardized, impacting thousands of Minnesotans who depend on affordable health insurance. The meeting underscored the critical nature of ongoing support for the reinsurance program as lawmakers consider the implications for health care access and affordability in the state.