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(St. Paul) … Today the Minnesota Council of Health Plans unveiled its plan to give small employers and Minnesotans more choices in health care coverage. The council, which represents the state's nonprofit health plans, will work to reform outdated insurance regulations and reduce government-imposed costs that limit choices.
"Employers are asking for innovative new health plan products that will increase employees' choices and reduce costs," said Phil Griffin, president of the council. "Our hands are tied by state regulations that worked in the 80s when they were written but are now outdated."
"Rising costs, the internet and workforce changes call for new approaches to health coverage. Minnesota will not maintain its position as a national health care leader unless the legislature changes outdated laws to allow health plans to respond to what today's consumers want," said Michael Scandrett, executive director of the Minnesota Council of Health Plans.
The council's proposal would give small employers the option of buying some of the innovative new coverage plans that are being developed for larger employers. Because larger employers are exempt from state laws under the federal ERISA law, they are able to offer new options to their employees that cannot, under current law, be offered by small employers.
Highlights of the council's plan include:
- increase the range of affordable coverage options by repealing state regulations that limit health plan innovation and product flexibility.
- repeal costly state mandated benefit requirements.
- repeal the state's small employer tax penalty.
- reduce the legal and administrative costs caused by excessive and complex state regulations and reporting requirements
- increase options for seniors seeking Medicare HMO coverage and prescription drug benefits.
"The state currently imposes four premium taxes on small employers, putting them at a competitive disadvantage compared to larger employers who enjoy a federal exemption," said Scandrett. "Our plan will end the small employer tax penalty."
A Minnesota Taxpayer Association study found small employers pay triple the amount of health care taxes paid by Minnesota's larger employers. These taxes boost health care costs and are unfairly hidden from consumers, the report said. The council will ask the Minnesota Legislature to repeal all health care taxes, beginning with premium-based taxes and assessments.
To help consumers sort through their new options, the council will also work with the Minnesota Business Partnership, Minnesota Chamber of Commerce, Minnesota Medical Association, the Minnesota Hospital and Healthcare Partnership and the State of Minnesota to increase individual understanding of factors driving costs and gain greater consumer input into coverage decisions. "As we provide more options we also must provide better information to help consumers make informed choices," said Scandrett.
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