When Minnesota-based insurance company PreferredOne announced they would no longer offer plans via the state health insurance exchange MNsure, we knew it would adversely affect the majority of Minnesotans who had any kind of health coverage.
Since PreferredOne offered the lowest premiums of any insurance companies on the exchange, it's no surprise that they serviced 60% of those who enrolled on MNsure. And while PreferredOne customers had the option of keeping their plans for the next plan year, they would face a double whammy of a) the obligatory annual premium increase and b) no longer being eligible for subsidies/tax credits since their plan would be outside the exchange. That's why the ridiculous spin of premiums only increasing 4.5% on health plans through MNsure was only to be believed by anyone who didn't use a scintilla of nuance.
To make up for the financial hit they took offering plans on MNsure, PreferredOne is going to have to levy substantial increases on their plans for 2015. Since I had a high premium, low deductible plan via PreferredOne outside the public exchange, I was prepared for a significant increase myself. How significant? If I am to keep the exact same individual plan (the fetching Mrs. Carlson has coverage through her employer), my monthly rate will increase a whopping 54%!
For those not numerically savvy, that's slightly higher than 4.5%.