by Mish
The Obamacare exchanges in Minnesota are near collapse.
The state’s insurance regulator says Minnesota health-care is in an “emergency situation” and calls the average 60% hike a “stopgap for 2017”.
Please considerNear ‘Collapse,’ Minnesota to Raise Obamacare Rates by Half.
Minnesota will let the health insurers in its Obamacare market raise rates by at least 50 percent next year, after the individual market there came to the brink of collapse, the state’s commerce commissioner said Friday.
The increases range from 50 percent to 67 percent, Commissioner Mike Rothman’s office said in a statement. Rothman, who regulates the state’s insurers, is an appointee under Governor Mark Dayton, a Democrat. The rate hike follows increases for this year of 14 percent to 49 percent.
“It’s in an emergency situation — we worked hard and avoided a collapse.” Rothman said in a telephone interview. “It’s a stopgap for 2017.”
On average, rates in the state will rise by about 60 percent, said Shane Delaney, a spokesman for MNSure, the state’s marketplace for Obamacare plans. About 250,000 people, or 5 percent of the state’s population, were covered under plans bought on the individual market, including plans bought on the Affordable Care Act markets as well as outside it.
Lie of the Day
The lie of the day comes from Jonathan Gold, a spokesman for the U.S. Department of Health and Human Services.
Minnesotans would still have affordable options for coverage next year said Gold. “Headline rate changes do not reflect what these consumers actually pay because tax credits reduce the cost of coverage below the sticker price.”
Of the about 70,000 people who had insurance on the Obamacare markets this year, 63 percent got subsidies last year, according to the commissioner’s office.
For at least 37% of Minnesotans Obamacare is hugely unaffordable. For those who got small subsidies, Obamacare is hugely unaffordable. We do not have breakdowns by subsidy amount, but I suspect at lest 65% do not feel Obamcare is affordable.
Those nearly broke with massive subsidies may view Obamacare as “affordable”. Businesses sure don’t and neither do those who get little or no subsidies.
Also in the not-affordable class are millions of healthy millennials who have to dramatically overpay so that a small subset of people benefit mightily.
Government in Action
Government in action:Obamacare was supposed to increase competition and reduce costs. Instead it decreased competition and increased costs.
— Mike “Mish” Shedlock (@MishGEA) November 1, 2016
Mike “Mish” Shedlock
