Health insurers in Minnesota's individual market say they want to cut premiums next year — the latest sign of stability in a market that for several years was plagued by premium spikes under the federal Affordable Care Act.
The Minnesota Department of Commerce on Friday released data showing the four largest carriers in the market are seeking average rate decreases that generally range from 7 to 12 percent, depending on the insurance company.
The rate proposals reflect a newfound profitability for insurers in the market during 2017, plus the impact of a state-funded reinsurance program that's helping to cover the cost for subscribers with unusually expensive medical conditions.
"I have yet to see a state report across-the-board decreases as Minnesota has," said Sabrina Corlette, a researcher at the Center for Health Insurance Reforms at Georgetown University.
The numbers released Friday apply only to the individual market, which primarily serves people under age 65 who are self-employed or don't get coverage from their employer. This spring, 162,000 Minnesotans were buying coverage in the market, where consumers can purchase via the state's MNsure exchange or directly from some carriers.
The information on requested rates comes as new questions are brewing at the federal level about the future of the Affordable Care Act.
Last week, the Trump administration said it would no longer defend key parts of the ACA in an ongoing legal challenge to the law. Yet Thursday, officials with MNsure — the health insurance exchange created by Minnesota as part of ACA law — advised consumers to look at the rate requests and see how much they could save via ACA tax credits available through the exchange.
While the individual market is relatively small, it's been the focus of sweeping change — and intense political debate — with the ACA. Among other things, the health law starting in 2014 eliminated pre-existing condition exclusions widely unpopular with consumers.