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Study: Health Overhaul To Raise Minnesota Claims Costs

Doctor meeting with patient
Adam Berry, Getty Images

MINNEAPOLIS (AP) — A new study says medical claim costs for Minnesotans with individual health insurance policies won’t jump as much as the projected national average.

The study by the Society of Actuaries projects that medical claim costs will rise by a national average of 32 percent per person in the individual health insurance market by 2017 under President Barack Obama’s overhaul. For Minnesota, the projected increase is 18.9 percent.

Claims costs are the main driver of health insurance premiums. The projected higher claim costs are partly due to sicker people joining the pool.

The Obama administration says the study ignores cost-relief strategies in the plan and the potential price-cutting impacts of competition.

Officials setting up Minnesota’s health care exchange say they haven’t seen the report and can’t comment on it.

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