Medical Reserves

When we pay our health insurance premiums, we expect our money to pay for medical care. So why do Minnesota’s health insurers set aside some of the premiums we pay? The answer is simple. Insurers need to save a portion of our premiums to make sure clinics and hospitals, home care companies and pharmacies get paid, even when times are tough.
Being financially responsible means saving for a rainy day. All kinds of organizations— counties and hospitals, factories and school districts, corner businesses and multinational corporations—set aside a portion of their income to make sure they can keep paying for care when facing unpredictable expenses and hard times. The same is true for Minnesota’s health insurance companies.

As more people have health insurance and care keeps getting more expensive, medical reserves must grow too. In all, the health insurers that work with the Council could pay for about three months of care with what is in medical reserves.  Learn more here.

You’ll find more information on how many people have insurance and how expensive care is in this report.