Much to the dismay of people who buy health insurance on their own, premiums for thousands in Minnesota's individual market are going way up.
The state Commerce Department said Thursday that rates will increase an average of nearly 50 percent at Blue Cross and Blue Shield of Minnesota — the largest insurer in the market — and anywhere from 14 percent to 39 percent on average at four other insurers in the state that sell the policies.
The jumps apply only to the state's individual market, where about 6 percent of state residents, or 300,000 people, currently buy coverage.
Even so, the increases renewed a broader debate about the Affordable Care Act and the state's MNsure exchange, as consumers started scrambling for ways to deal with the financial pain.
"I can't take an additional $8,000 automatic increase in medical without doing something about it," said Cindy Penning, 58, of Wilmont who currently buys individual coverage for her family of five.
Penning echoed the advice offered by state officials on Thursday by saying she would shop for a different insurance policy with more affordable premiums. She will also search out whether the family qualifies for tax credits through MNsure.
Kristi Nelson of Hastings said she will look for ways to handle next year's increase, too, but said future spikes would prompt her to consider dropping coverage. "You can only afford what you can afford," Nelson said.
Premium increases announced Thursday were justified by actuarial evidence showing that care costs are exceeding premium revenue, said Commerce Commissioner Mike Rothman during a news conference near the Capitol. Rothman said insurers pointed to sicker, more costly patients in the individual market, plus rising prices for health care services.