Gaps in Minnesota’s Health Insurance Legislation Criticized

June 13, 2008| Posted in Articles

Minnesota receives praise nationally for its low uninsured rate, but a new report criticizes the state for leaving some people with little or no benefits when they need them most.

The advocacy group Families USA criticized Minnesota as one of 21 states that allow individual health plans to exclude coverage of pre-existing conditions for a year or longer. Minnesota also permits delays in the underwriting process, a practice that allows insurers to restrict or revoke coverage in individual plans long after people have purchased them, according to the report.

Leaders of TakeAction Minnesota, a social justice advocacy group, released the local version of the report Thursday. At least one Minnesota lawmaker joined them in calling for new policies that limit the ability of insurance companies to exclude the sickest people from their plans.

“This report confirms that Minnesota’s health care system discriminates against the sickest among us, forcing them to pay more for coverage if they can get coverage at all, and allowing the coverage to be revoked after the fact,” said Rep. Paul Thissen, DFL-Minneapolis, who chairs the House Health and Human Services Committee.

Kathy French, of Rochester, Minn., joined in their pleas. The father of her son has Crohn’s disease but can’t obtain affordable coverage, leaving him with untreated pain and discomfort that limits his ability to work or even leave home.

Danette Steinwall said she gave up an exciting job with a start-up company because the individual plan she purchased for her family denied coverage of her husband and daughter because of their pre-existing conditions.

About 7 percent of Minnesotans purchase individual plans. The remainder obtain coverage through employers or government programs. About 9 percent of Minnesotans have no insurance.

Not all the findings were negative. Families USA gave Minnesota credit for policies that track coverage denials by insurers and allow people to appeal denial decisions.

The state also offers a special plan – funded by insurance companies – that covers individuals when they can’t find other affordable benefits.

Lawmakers and insurers have discussed changes in recent years that would improve the availability and depth of plans on the individual market. These plans can’t afford to add only the sick people, though, said Eileen Smith of the Minnesota Council of Health Plans. They also need a substantial number of healthy enrollees to spread out the cost and the risk.

“It’s been talked about,” Smith said. “It’s just a matter of figuring out how to do it without having the whole individual market collapse.”