Minnesota health insurers are seeking big premium increases for 2025, including double-digit hikes for enrollees in the individual and small employer markets.
The proposal, announced last month by the Minnesota Department of Commerce, is the latest sign of rising health care costs as the nation emerges from the COVID-19 public health emergency.
Eagan-based Blue Cross Blue Shield, Minnesota’s largest nonprofit health insurer, is seeking double-digit rate increases in both markets. Department of Commerce DataThe company did not immediately respond to a request for comment.
“These are the initial rates proposed and submitted, but the rates are subject to review by the Departments of Commerce and Health,” state officials said in a statement. “The rates ultimately approved may differ from these proposed rates for a variety of reasons.”
About 163,000 state residents will have individual market insurance in 2023, most of it sold through the MNsure health insurance exchange, and the proposed rates don’t reflect the significant savings many who shop on MNsure get through federal tax credits.
In 2023, more than 209,000 Minnesotans will be insured through small group plans.
The three largest retail marketplace companies are seeking average price increases ranging from about 8% to about 13%, according to data released last month by the Commerce Department. By contrast, over the past two years, the average increases proposed by the three companies have not exceeded 8%.
In the market where small employers buy insurance, the three largest insurers are proposing increases ranging from nearly 4% to nearly 16%. Rates comparable to previous years’ proposed rates were not immediately available, but these insurers in the small group market have generally been approved for increases ranging from 2% to 7% in recent years.
Small employer groups typically employ fewer than 50 workers.
In the individual market, Blue Cross’s HMO division requested a 12.75% average rate increase next year, the largest rate increase proposed across that market. In the small group insurance market, Blue Cross requested an average rate increase of 15.78% for customers who buy through its health insurance division and an average rate increase of 10.47% for customers who buy the company’s HMO insurance.
Blue Cross’s operating profit fell about 40 percent last year to $103.7 million, marking the health insurer’s fourth consecutive profitable year.
This is a developing story, check back for updates.
