A new health insurer in southeast Minnesota plus more competition in dozens of southern and western counties means more options and a shot at lower premiums for many buying coverage on the state's MNsure exchange.
MNsure announced Friday that consumers in 80 counties next year will see three or more health insurance companies competing on the government-run exchange. This year, only 31 counties in Minnesota are seeing that much competition in the market for individual market coverage.
Average premium increases from returning carriers will range from 1 to 4%, the state Commerce Department said Friday. Monthly costs will vary by geography and could look very different if consumers shop around for a different health plan.
"The actual rate change that a consumer will experience in 2021 can vary depending on factors such as specific plan, geographic rating area and age," Commerce said in a statement.
A 40-year-old in Rochester who currently buys the "benchmark" policy in Olmsted County and switches insurers to buy next year's benchmark health plan would see a discount in premium costs of 21%, or more than $100 per month. Commerce says that more than 50 counties across the state are seeing discounts in the price of their benchmark health plans.
In Hennepin County, the benchmark plan's monthly cost for a 40-year-old will increase by less than 2%, or about $4.40 per month. In Duluth, the cost of the benchmark health plan will increase by 8%, or about $26 per month.
About 160,000 people buy coverage in Minnesota's individual market, which generally serves self-employed people and those who don't get health benefits through their job.
Minnesota launched the MNsure exchange in 2013 as part of the federal Affordable Care Act (ACA). Consumers use the exchange to buy individual market coverage and see if they qualify for tax credits that discount premium costs.