Changes to Minnesota’s Individual Market Rates—What Brokers and Employers Need to Know

What We Know Now

The Minnesota Department of Commerce recently announced on its website a plan to phase out the state-based reinsurance program for the individual market, known as the Minnesota Premium Security Plan. The government subsidy program, put in place in 2018, has had the effect of holding down premiums by approximately 20% from what they would have been in 2018-2021. Without this program in 2022, rates are expected to increase by about 20% from what they would have been if the program continued.

The Bottom Line for Minnesota Employers

For those offering employer sponsored plans through the individual market using Individual Coverage HRAs (ICHRAs), you’ll likely notice an increase in rates this enrollment season.

What We’ll Learn Soon

Proposed carrier rates for 2022 are expected in the coming weeks. The first information will become public on or around July 1 from the Minnesota Department of Commerce. Additional information will be made available from the Centers for Medicare & Medicaid Services on Healthcare.gov on or around August 1.

Final rates for the Minnesota individual market must be made available by October 2, 2021 (30 days prior to the start of open enrollment).

Exploring Your Options for 2022

For Minnesota employers offering employer sponsored plans through ICHRAs, these rate changes may be significant enough to prompt you to evaluate your options this year. With Gravie’s ICHRA solution, employers are in control of their defined contribution budget – the fixed dollar amount that employees can use to select the plan that works for them. Employers can work with their brokers and Gravie to determine the best plan forward in 2022.

For employers with 15 or more employees, Gravie’s Comfort plan offers an incredible value for members with 100% coverage on most common healthcare services, at a cost comparable to most traditional group health plans. With Comfort, employers can thrill employees with a health plan that makes it easy and affordable to get the care they need. Compared to copay and HSA plans, Comfort members on average save $100 per month on out-of-pocket costs.

For more information about how these increased rates could affect you or your business, or to discuss your health plan options for 2022, contact us.