MNSure rates released

Minnesota Commerce Commissioner Mike Rothman released the individual policy premium rates, which are the lowest average rates in the country for health insurance plans sold through Minnesota’s new health insurance marketplace, MNsure, when it opens on October 1, 2013. 

Friday’s announcement follows a lengthy and thorough review of all of the new policies, which included providing detailed justification for the rates filed to ensure that the premiums charged are reasonable and necessary.  After the review process, Commissioner Rothman approved the rates for 141 plans in total, 78 of which that will be available to individuals. Minnesota’s nationally-recognized, thorough rate review process resulted in premiums for Minnesotans four to 37 percent lower than had originally been filed - providing border-to-border options for consumers across all metal levels.  

Rates for policies available on MNsure for the individual market start as low as $90.59 for a 25 year-old, non-smoker living in the Twin Cities, with options in each metal level reflecting comparable value for the price.  In addition to the competitive rates of the plans offered through MNsure, comprehensive networks are available across the state - 85 percent of Minnesota counties will have 3 or more health insurance companies to choose from - providing border-to-border choice for all Minnesotans.   

In coordination with the information released by the Commerce Department, the Minnesota Department of Health (MDH) has posted on its website a preview by carrier of the networks of clinics, hospitals, and chemical dependency treatment centers that will be available through MNsure. Health plans offered through MNsure are required to meet multiple certification standards, and the state’s Department of Health is responsible for certifying the provider networks for all MNsure carriers. MDH also reviews and approves the benefits being offered by HMO’s through MNsure and the Commerce Department reviews and approves benefits for the non-HMO insurers.

Minnesota is one of 31 states in the country that can deny rates requested by insurance companies based upon whether the rates are justified.  The Department’s actuaries conduct statistical analyses and closely scrutinize the assumptions that health insurance companies use to develop rates. The new plans and rates recently approved that will be available during open enrollment include many consumer protections. Those protections include making all health insurance available to every Minnesotan, even those with pre-existing health problems and expanded benefit sets that provide free preventive care.  Additionally, to protect consumers, Commerce Department staff reviewed all policy forms to ensure they included the consumer protections in state law.

Health plans included in MNsure will be sold during open enrollment which begins October 1, 2013 and coverage will take effect Jan. 1, 2014.  

MNsure plans are categorized as bronze, silver, gold or platinum based on how much of the cost is paid by the insured person. For example, bronze plans are likely to have lower premiums but higher out-of-pocket costs such as deductibles, co-pays and coinsurance. In addition to these four “metal levels,” high deductible “catastrophic plans” are available for young adults under age 30 and certain other qualifying individuals. All plans provide coverage for the set of essential health benefits that are now required by law.

Once a consumer decides what plan of coverage he or she wants to purchase, four factors can affect the premium rate: age, area of the state in which the person resides, whether the person uses tobacco, and how many people are covered by the plan. Minnesotans will want to visit MNsure or call the MNsure consumer call center to learn whether tax credits available exclusively through MNsure can be applied to their premiums to further lower their premium payment.

For more information on Minnesota’s health insurance rates or the rate review process in Minnesota, please visit the Commerce Department’s website to view the rates, frequently asked questions, and additional information about the new health care reform changes that begin January 1, 2014.

For more information on the 15 networks approved by the Department of Health visit MDH’s website, http://health.mn.gov/mnsurenetworks, to review computer files of each network, displaying hospitals, clinics and chemical health providers. Each PDF file is organized by provider zip code and alphabetically within zip codes. Consumers will be able to search networks on the MNsure web site beginning October 1.

The Minnesota Department of Commerce is here to help.

Call our Consumer Response Team at 651-539-1600 or toll-free at 1-800-657-3602 (in Greater Minnesota) if you have any questions about your insurance or if you believe you have been a victim of a scam or fraud. 

MNsure to Host Twitter Town Hall Monday, August 12

ST.PAUL, Minn.—Minnesotans with questions about MNsure, the state of Minnesota’s new health insurance marketplace, are invited to join the Executive Director, April Todd-Malmlov, online between 1:00-2:00 p.m. on Monday, August 12, for a Twitter Town Hall. Todd-Malmlov will respond to tweets during a live, hour-long event designed to provide an opportunity for Minnesotans to have specific questions responded to immediately.

“We’re always looking for new and dynamic ways to engage Minnesotans about MNsure,” said Todd-Malmlov, “and Twitter allows us to reach Minnesotans throughout the state. The Town Hall format makes communicating with us quick and easy and Minnesotans can get an answer in real time.”

Todd-Malmlov added that some responses may exceed the 140-character limit imposed by Twitter, in which case direct messaging will be employed. “The MNsure website, http://www.mnsure.org<http://www.mnsure.org>, is available now and is a robust source of information about how the marketplace works and what consumers and small business owners can expect when open enrollment begins October 1. We’ll share links to that information within our responses as well,” she added.

Those with questions for Todd-Malmlov are invited to submit questions from their Twitter accounts using the hashtag #AskApril. Tweets will then be responded to from MNsure’s Twitter account, @MNsure.

MNsure is a one-stop health insurance marketplace where individuals, families and small employers will be able to get quality health coverage at a fair price. MNsure will empower more than 1 million people to compare, select, and get help finding health insurance. It will facilitate enrollment in public health insurance and private insurance products, calculate eligibility for tax credits and allow Minnesotans to shop and compare between insurance products.

Enrollment in MNsure begins October 1, 2013 and runs through March 31, 2014. For more information about MNsure, how it will benefit Minnesota consumers and businesses, and how to provide input or learn more about the stakeholder process visit http://www.mnsure.org<http://www.mnsure.org>.

Commerce Department urges consumers to use caution to avoid insurance policy mill scams

SAINT PAUL, MN – Two recent investigations conducted by the Department of Commerce Fraud Bureau uncovered insurance “policy mill” schemes that resulted in felony insurance fraud and forgery charges against individuals who masqueraded as insurance agents bilking their customers out of cash and insurance coverage.

The growth of internet sales for insurance policies has provided opportunity for criminals to prey on consumers. These policy mill schemes typically involve an individual posing as a trusted insurance agent, who then uses the consumer’s information to apply for insurance policies online. Many companies issue temporary insurance cards once the application is completed, which these criminals give to their victims as proof that they have purchased “legitimate” insurance policies, when in fact, they have not. Since the policy premiums are paid with fictitious credit card or bank information, the criminal pockets the cash and the policies are cancelled by the insurance company for non-payment, leaving the victims without their cash or insurance.

“These criminals will go to great lengths and use sophisticated techniques to scam and defraud consumers,” said Commerce Commissioner Mike Rothman. “I urge consumers to educate themselves on who they are doing business with and check their license at the Department of Commerce website.”

In the case of Byron Joseph Davis of New Hope, Minnesota, who was charged with one count of felony theft and a felony count of forgery, he allegedly using the name, “Julian King” when posing as a Progressive Insurance agent, promising clients policies at a discount with an up-front cash payment. After collecting money for the policy premiums, Davis, who has an extensive criminal history, would keep the cash for himself, using fictitious credit card information to pay for the policies. In most of the incidents, the victims received cancellation notices in the mail indicating they did not have insurance coverage, but when asked, Davis allegedly assured them that they had insurance and everything would be okay.

Earlier this summer, Marlon Anton Moore, known as “Ace Boogie” to his victims, was charged with five counts of felony forgery for allegedly acting as an independent insurance agent scamming unsuspecting victims through a policy mill scheme. The complaint reports that similar to Davis, Moore would accept cash up front for insurance policies he either fraudulently obtained or manufactured, deceiving clients who believed they were purchasing legitimate auto insurance. In this case, Moore who reportedly passed himself off as an agent for both Geico and Progressive auto insurance had a lucrative scam leading investigators into an investigation of over 250 fraudulent applications for insurance policies purchased online.

To protect yourself against insurance policy mill scams, check the Department’s License Lookup Tool<http://mn.gov/commerce/insurance/consumers/tools/license-lookup.jsp> to make sure the company or individual you are or will be working with is licensed to do business in Minnesota. If they are not licensed, do not give them any personal information – credit card or bank information – or cash, and report the individual to the Commerce Department. If you receive notification that your policy has been canceled due to lack of payment, contact the insurance company directly and ask why your policy has been cancelled.

If you suspect insurance fraud, call the Commerce Fraud Bureau< http://mn.gov/commerce/topics/insurance-fraud/> tip line at 1-888-FRAUD MN (1-888-372-8366).