Minnesota Finds a Way to Slow Soaring Health Premiums
The state of Minnesota is stabilizing its individual marketplaces and beating national trends through the use of reinsurance of its health risk. Anyone familiar with self-insurance knows the concept of reinsurance, where upon the high risk is sold off to another insurance carrier. What Minnesota is doing with its risk pool, therefore, isn’t a radical concept, but a pragmatic one. Perhaps that is the bill creating its reinsurance program, the Minnesota Premium Security Plan, became law within three months of being introduced — lightning speed when compared with the pace in Congress. Hopefully Congress can look to Minnesota for ideas to help the ACA.
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