Minnesota Health Insurance

Buying health insurance can be an intimidating process, particularly in a state like Minnesota where health insurance regulations are fairly relaxed.  Fortunately, by learning about the rules and standards that are in place before you buy, you can avoid any pitfalls that might make it harder to get the coverage you’re looking for.  Below is a brief summary of things you should know before you start shopping for new health coverage in Minnesota.

• All health insurance sold in Minnesota is required by law to include a guarantee of its renewability.  In other words, so long as you are making your premium payments, you will always be able to renew your health insurance policy.  Your insurer is also prohibited from cancelling your insurance when you experience health problems.
• Pre-existing conditions, defined as an illness or injury that was treated or diagnosed within six months before your coverage began, may be excluded from coverage by your insurer for up to one year.  However, if you maintain continuous coverage between plans, your previous waiting periods will be credited toward any new one that is imposed.
• For the most part, health insurance companies are left entirely to their own discretion in whether they choose to accept or reject any new application for health coverage.  Restrictions on pricing, as well as how those prices are determined, are also minimal.  Certain HMOS, however, are required to hold a two-week open-enrollment period each year, during which any applicant must be accepted.
• Small businesses with between 2 and 50 employees are automatically eligible to purchase any group health plan— or one with comparable coverage— that is currently being offered to other small companies in Minnesota.  The pricing may vary dramatically from company to company, but only within certain broad limits.
• Availability of these group insurance policies may depend on whether enough of the company’s employees can participate in the company plan, and the insurance provider may also require that the employer cover some portion of each employee’s premiums.  Failure to meet the requirements of a given health plan can lead to termination of coverage.  No small business’s coverage may be cancelled on the grounds of health problems among the insured, however.
• Self-employed individuals with no other employees are not treated as “small businesses” for the purpose of buying health insurance in Minnesota, so if you fall in this category you will typically be looking for an individual policy.  Fortunately, you may be eligible to deduct a sizable portion of your premiums from your tax liability.

Minnesota’s lax health insurance laws can make the marketplace a bit harder to navigate for those that are not fully informed, so it’s in your best interest to learn as much as you can about the subject before you start shopping around.  If you’re willing to take the time to weigh every offer against those made by competing companies, you’re much more likely to find reasonably-priced health insurance that fits your needs.

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