MN HF1705

The legislative auditor is requested to study disparities in health insurance rates across Minnesota's nine geographic rating areas and recommend ways to reduce or eliminate rate differences in individual and small group markets.

The study must identify factors causing higher rates in certain areas, analyze the impact of referral centers on rates in southeastern Minnesota, examine strategies used by individuals and employers to obtain insurance in lower-cost areas, and estimate effects on remaining enrollees.

The legislative auditor must develop and examine at least three options for redrawing geographic rating area boundaries, with at least one option reducing the total number of areas, while considering provider networks, referral patterns, and federal regulatory requirements.

Health carriers, health systems, and the commissioners of health and commerce must cooperate by providing data limited to 2014 rate and form filings; the auditor may only disclose data in aggregate form and cannot release private or nonpublic data.

The legislative auditor must submit a completed report with study findings and recommendations by January 1, 2020, to legislative committees with jurisdiction over health care and health insurance, with unspecified funding appropriated from the general fund for fiscal year 2020.