Commerce Department urges stable reinsurance funding, proposes fees and new consumer protections

Commissioner Grace Arnold of the Minnesota Department of Commerce told the Senate Commerce and Consumer Protection Committee on March 18 that the agency's budget includes an operating adjustment and a series of program-specific proposals intended to stabilize markets and improve consumer protection.

The chief item Arnold highlighted was a proposed funding mechanism for Minnesota's reinsurance program for the individual health insurance market, which the department calls the "premium security plan." "Reinsurance works, but funding has been a challenge," Arnold said, and the department proposes "instituting an assessment to ensure that there is [a] stable funding source for the reinsurance program." She warned that without action the premium security plan could be depleted and "Minnesotans on the individual market are at a significant risk of premium increases of 25% or more on the individual market." The department described possible downstream effects as fewer people with primary care and more reliance on emergency rooms.

Why it matters: Minnesota's reinsurance…