SAINT PAUL (October 1, 2019) – Minnesota’s individual and small group health insurance market rates for 2020 reflect stabilized markets, according to information released today by the Minnesota Department of Commerce in advance of the open enrollment period beginning November 1. 

“Rates for health insurance plans in the individual and small group markets for 2020 indicate that Minnesota has stable health insurance markets. However, many Minnesotans still struggle to afford health insurance, due in part to the combination of expensive premiums and out-of-pocket costs,” said Minnesota Commerce Commissioner Steve Kelley. 

With Blue Plus joining Medica in offering statewide plans, every county in Minnesota will have at least two insurers offering coverage in the individual market, and every county will have at least 14 separate health insurance plan options available in the individual market. Additionally, three insurers—UCare, HealthPartners and Medica—will not have enrollment caps in 2020.

The small group market serves employers with fewer than 50 full-time workers who purchase insurance for their employees. Individual market rates apply to health insurance plans that Minnesotans purchase for themselves and their families through MNsure, insurance agents or the insurance companies directly. The rates do not affect Minnesotans who are covered by large employer-based insurance or public programs like Medicare, Medicaid and MinnesotaCare.

In the small group market, the 2020 average rate changes range from a 9.43 percent decrease to an 8.87 percent increase. In the individual market, the 2020 average rate changes range from a 20 percent decrease to a 0.18 percent increase. 

Small Group Final Rate Changes

Individual Market Final Rate Changes

The actual rate change that a consumer will experience in 2020 can vary depending on factors such as specific plan, geographic rating area and age. 

The Commerce Department website has a rate change summary with more details.

Commerce works to stabilize the market

On behalf of Minnesota consumers, the Department of Commerce reviews health insurance rate proposals to make sure they meet actuarial standards and comply with state and federal consumer protection laws. The Minnesota Department of Health evaluates the plans for network adequacy, while MNsure operates the state’s health insurance marketplace where individuals and families can shop, compare and choose health insurance coverage, and receive tax credits if they qualify.

Rate changes for 2020 indicate that Minnesota’s individual health insurance market has stabilized from the dramatic market fluctuations that occurred in 2016 and 2017. This is due, in part, to Commerce’s role in establishing Minnesota’s reinsurance program.  

Minnesota enacted its reinsurance program, known as the Minnesota Premium Security Plan, to offset the expense to insurers of high-cost medical claims. Specifically, the program reimburses insurers for 80 percent of an individual’s annual claims costs that fall between approximately $50,000 and $250,000.

“The work done by Commerce to implement the reinsurance program in 2017 is one tool used by the State to ensure the existence of a stable marketplace for consumers to purchase health coverage,” said Kelley. “But as Minnesota consumers are experiencing, the program does not address the underlying costs of health care. Commerce and the entire Walz-Flanagan administration will continue to look for policy solutions to not only stabilize, but address the overall costs of health care for all Minnesotans.” 

Open enrollment begins November 1

Today’s rate announcement comes in advance of the annual open enrollment period, which begins on November 1 and continues through December 23, 2019. Insurance companies, insurance agents and MNsure will have specific plan information available for consumers soon.

Minnesotans can view available 2020 plans through MNsure starting on October 15. MNsure’s shop and compare tool allows consumers to find the plan that offers the best value for their health needs and budget. For the continuity of their own health care, consumers should carefully review a plan’s provider network to see what doctors, clinics and hospitals are included.

MNsure is the only place consumers can access federal tax credits that can reduce premium costs. For 2020 plans, the tax credits are available to households with incomes up to 400 percent of the federal poverty level, which in 2019 is $49,960 for an individual and $103,000 for a family of four. Additional income guidelines are available on the MNsure website. Approximately 60 percent of current MNsure enrollees are receiving tax credits.

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Wherever you are in Minnesota, the Department of Commerce is with you every day. Whether you’re filling up on gas, purchasing a home, working to reduce energy consumption or rebuilding after a disaster—we are with you, no matter what.

The Minnesota Commerce Department oversees more than 20 regulated industries, ensuring that Minnesota businesses are strong and Minnesota consumers are protected. Our mission is to protect the public interest, advocate for Minnesota consumers, ensure a strong, competitive and fair marketplace, strengthen the state’s economic future and serve as a trusted public resource for consumers and businesses.

Media Contact
Emmalynn Bauer
Director of Communications
Minnesota Department of Commerce
p: 651-539-1463 | emma.bauer@state.mn.us