Governor Tim Walz and Commerce Commissioner Grace Arnold recently discussed plans to make health care costs more affordable in Minnesota. They’re focusing on reducing the financial burden on taxpayers.
The proposed change involves shifting some costs of the state’s reinsurance program from taxpayers to insurance companies. This program helps individuals who don’t get insurance through their jobs or qualify for Medicare or Medicaid.
Launched in 2017, Minnesota’s reinsurance program aims to stabilize high health insurance premiums. It does this by reimbursing insurers for costly claims using state funds. In 2022, the program was extended for another five years.
Walz’s new proposal would require insurers to maintain a fund specifically for covering expensive medical procedures. This way, they are more responsible for high costs.
Additionally, Walz wants to increase the surcharge on health maintenance organizations (HMOs) from 0.6% to 1.25% of total premium revenue. This change aims to ensure that large health care companies contribute fairly to the system.
These initiatives may help create a more stable and affordable health care environment for Minnesotans, making sure everyone has access to the care they need.
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Governor Tim Walz,Health Insurance,Healthcare,Minnesota,Money
