• Assurant
• Blue Cross and Blue Shield
• PreferredOne

Click for more options

• UCare

• Supplemental Medigap Insurance
• Medicare Advantage Insurance
• Blue Cross and Blue Shield

Click for more options

• Humana
• SecureHorizons by UnitedHealthcare
• Unicare Life & Health Ins. Company
• Universal American
• WellCare

What is a Minnesota Health Insurance Exchange?

What is a health insurance exchange?

The basic idea of a health insurance exchange is similar to the concept of a stock exchange or farmers market - an exchange serves as a market clearinghouse, but not as a regulator or purchaser. It functions as a single place where people can go to find out about their health insurance options, and improves market competition among health plans by providing more complete and understandable access to information about the products and pricing available in the market.

In combination with other health care market reforms, an exchange could provide additional benefits. For example, the concept of a health insurance exchange was originally promoted as a way to facilitate "defined contribution" approaches to health insurance benefits; as explained in more detail later in this report, Minnesota would likely need to change some of its laws related to issuance and premium rating of health insurance coverage in order to make this feasible. Used in this way, an exchange could improve portability of coverage and choice of plans. It could also provide an avenue for people who are usually not eligible for employer plans (such as part-time employees) to gain access to limited employer contributions toward health insurance, and could even allow people with multiple jobs to combine contributions from more than one employer. If the State decides to require employers to offer Section 125 plans, the exchange would reduce administrative burden on employers by providing a single place for employers to remit money withheld from employees' paychecks for health insurance coverage (see Text Box on Section 125 plans), and could also serve as a source of education and technical assistance to employers.

The Health Care Transformation Task Force and the Legislative Commission on Health Care Access are considering comprehensive health care reforms in Minnesota to improve health care access, contain cost, and improve quality. The Health Care Transformation Task Force has proposed, and the Legislative Commission on Health Care Access is considering, a health insurance exchange to (1) improve market functioning and (2) facilitate the implementation of other reforms (such as insurance market reforms, an individual responsibility to purchase coverage, and a requirement that employers offer Section 125 plans).

The next section of this report describes research that the Minnesota Department of Health conducted in order to answer the questions posed by the Legislature, and the final section describes the study recommendations.