Minnesotans shopping on the state's new health insurance exchange could pay significantly different premiums next year depending on where they live.
In the Rochester area -- where only two health insurance companies are competing for business -- a 40-year-old shopping for the cheapest "silver" level health plan would pay $299 per month, according to data released Friday by MNsure, the state's new health insurance exchange.
But the cheapest comparable health plan in the Twin Cities would cost a 40-year-old just $154 per month.
The geographic differences came to light Friday with a massive data release by state officials, who claimed that premiums overall in Minnesota's exchange will be lower than in any of the other 17 states that have released information thus.
Geographic variations in premiums stem from the degree of competition in different regions, said Mike Rothman, the commissioner of the state Commerce Department, said during a news conference at the Capitol.
While five health insurance companies will compete for business in the individual market in the Twin Cities, only two companies will do so in the Rochester area.
Overall, consumers shopping on MNsure will find at least two health plan options in every county in the state, Rothman said.
Even with all the information released Friday, Rothman said he could not say how the new MNsure premiums compare with current health insurance premiums. The federal health care overhaul law of 2010 imposes new rules on health insurance companies, Rothman said, and the rules make it very difficult for an "apples-to-apples" comparison, he said.
In a subsequent news conference at the Capitol, Rep. Joe Atkins, DFL-Inver Grove Heights, acknowledged that consumers today could, in some instances, find cheaper health insurance polices today. But buying such a health plan would be like "buying a piece of crap," Atkins said.
Republicans said the data released Friday shows that consumers will pay more for health insurance next year, but they did not offer specifics.
"How does making health insurance more expensive encourage more people to get insured?" asked Rep. Joe Hoppe, R-Chaska, in a statement.
Minnesota is creating its health insurance exchange to comply with federal health care overhaul of 2010.
The new marketplace is key to reducing the number of people who lack coverage because many buying policies through the exchange will be eligible for tax credits. Starting next year, almost all Americans will be required to purchase health insurance or pay a tax penalty.
Christopher Snowbeck can be reached at 651-228-5479. Follow him at www.twitter.com/chrissnowbeck.
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