State regulators are making a last-ditch effort to recruit more health insurers to the MNsure exchange, particularly to sell coverage outside the Twin Cities metro area for 2017.
In a request for proposals this week, regulators asked interested parties to propose waivers of state laws or rules that would allow them to newly offer coverage to residents outside the seven-county metropolitan area.
Insurers would provide at least one health plan option that could be sold through MNsure in one or more counties, according to an Aug. 15 notice from the state departments of health and commerce.
The timing of the request is unusual because open enrollment for 2017 health plans is less than three months away. It suggests significant concern about a lack of competition in the individual market, where there already were fears that premiums could spike.
"This is a distress call," said Stephen Parente, a health insurance expert at the University of Minnesota. "This is for the 2017 year, and you're putting it out on August 15th? You should be putting this out on Jan. 15th or Feb. 15th."
MNsure and health insurance exchanges for all other states were launched for 2014 under the federal health law. Concern about competition on the exchanges has been growing in recent months as three of the largest national insurers announced pullbacks, along with similar moves by regional players.
On Friday, the health care consulting firm Avalere published a report predicting a sharp decline in competition in several states.
MNsure is an option for the roughly 5 percent of state residents who buy health insurance on their own.