Minnesotans who have put up with confusing information and skyrocketing premiums are at the mercy of negotiations with the federal government.

Statement by the Minnesota Council of Health Plans on the state’s effort to lower premiums for people who buy their own health insurance policies

“Like many Minnesotans, I am deeply concerned about recent events that created new, unexpected hurdles as the state works to lower premiums for people who buy health insurance on their own. Without federal approval for what’s called a 1332 waiver, these Minnesotans will pay about 20 percent more for their policies than necessary.

Unfortunately, despite concerted effort, we are extremely late in the process and still without the clear federal approval required by state law. The state is in a difficult position. Formal federal approval is still missing and government employees suggest that that approval of the waiver means cuts to MinnesotaCare funding.

We are just more than a week away from when rates are scheduled to be announced and letters get mailed to current policyholders. Until all contingencies are understood and resolved, waiver rates won’t be final. Minnesotans who’ve been at the center of confusing information and skyrocketing premiums are now at the mercy of negotiations with the federal government.

Regarding MinnesotaCare, we supported reinsurance as a practical step to reduce premiums and ensure options for people buying insurance on their own. At no point was it considered as a transfer of federal effort from the state’s MinnesotaCare program. Minnesota’s insurers did not seek the waiver to reduce federal spending, but instead, to slow our community’s rising insurance premiums and stabilize options for Minnesotans. We still hope for approval of the state’s waiver request without any strings attached.”

-Jim Schowalter, president of the Minnesota Council of Health Plans