Obamacare rates for certain Minnesotans will jump nearly 50 percent in 2016, dealing a blow to supporters of the healthcare law who have said premium increases would be nominal.
Minnesota’s regulators announced that the average rate increase for Obamacare enrollees would range from 14 to 49 percent in 2016.
The state’s Department of Commerce said it still expects its insurance rates to be amongst the “lowest in the country and federal tax credits will help reduce monthly premiums.” It said 2015 rates were the lowest in the nation.
For the state’s small group market, which is for small business with up to 100 full-time employees, the rates will fluctuate from a 12 percent decrease to a 5.6 percent increase.
Minnesota officials said about 5.5 percent of residents in the state get individual policies, mainly through Obamacare, and 5.4 percent get coverage in the small group market.
But the potential 49 percent increase will surely play a part in a larger debate over the insurance rates for Obamacare enrollees.
Insurers are required under the law to disclose a proposed rate increase of 10 percent or more for Obamacare enrollees. Opponents of the law, including congressional Republicans, seized on proposed rate hikes of up to 70 percent in some states.
But supporters of the law countered that those are only proposed figures and need to be finalized.
California announced a 4 percent increase to 2016 rates and Florida nearly 10 percent.
