Posted: 03/14/17 14:56
by Dave Mindeman
It must be in the Republican legislative DNA to always find a way to give business and corporations extra benefits.
Case in point is the MN House GOP reinsurance bill.
First of all, what is it?
The so-called reinsurance plan would have the state share in the costliest claims....It works like this: Insurance companies that incur a subscriber's claims exceeding $50,000 and up to $250,000 would have a portion of those costs covered by a new state fund. A board would determine what percentage each payer shoulders. The theory is that cost-sharing will improve premium rates for everyone because the risk tied to those sickest patients wouldn't be borne as much by the healthier subscribers.
So, the state steps in and helps the insurer cover the costs of a contracted client. The taxpayers kick in and help out the insurer...because in theory, they will pass on this benefit in their overall premiums.
Governor Dayton foresees a problem...
Dayton wants assurances about the plan's effect on rates and their willingness to keep offering individual market insurance. It can't be just a blank check to the insurance industry, he said.
There it is. Where is there any guarantee that insurance companies won't just take the state benefit and simply add it to their bottom line calculation? What premium benefit will happen? Frankly, I am guessing none. They can say anything. They can pretend anything. All we will know is that the reinsurance money will help cover an insurance company obligation.
The House voted down the Minnesota Care buy-in amendment. This would have allowed people with bigger claims to take a public option. By far, this would have been the preferable way to do it.
If you think about it, the taxpayers pay either way. At least with the Minnesota Care buy in, we know where it is going and what it is doing.
Republicans are only giving insurers another gift.