HF 3729 - Health Insurance Reform Summary

• Individual Market Premium Restrictions: Limits premium rate variations for individual health plans to ±25% from standard rates based only on age, tobacco use, and geographic rating area (single state rating); eliminates risk pool nonrenewals and creates fixed indemnity insurance benefit tiers.

• Minnesota Health Risk Pool Program: Establishes a new risk pool association to reimburse health carriers for high-cost individuals with qualifying conditions (46 conditions listed including AIDS/HIV, cancer, diabetes); funded through assessments on insurers and tax revenues.

• Mid-Sized Group Coverage: Allows groups of 50-100 employees with premium variations of ±25% and limits annual renewal increases to 15% plus inflation; removes prior geographic rating restrictions.

• Unified Personal Health Premium Accounts & Healthy Minnesota Contribution: Creates trust accounts funded by multiple sources (employers, individuals, government) to pay health insurance premiums; establishes defined contribution program for eligible MinnesotaCare enrollees with family income at 200% federal poverty level or higher.

• Federal Waiver Request & Repeals: Requests federal 1332 waivers to implement these changes; repeals prior Minnesota health plan market rules (Chapter 62K) and consolidates regulations effective January 1, 2021.