EAGAN, Minn. — Small businesses will no longer be able to purchase health care plans from the Minnesota Exchange.
The Star Tribune reports that Blue Cross Blue Shield, the Minnesota-based health insurance giant, announced that it would be pulling its small business health insurance plans from the MNSure exchange due to “low enrollment and high administrative costs.”
The decision came a day before the Minnesota Department of Commerce released projected numbers for the 2018 health insurance rates on Monday.
As reported by Alpha News, rates for health insurance will solely depend on whether the federal government approves the reinsurance plan passed by Minnesota legislators and Gov. Mark Dayton.
With the reinsurance plan in place, individuals seeking health insurance could see increases up to 11 percent or a decrease in rates up to 41 percent.
If the Fed chooses to deny approval for the reinsurance program, rates could increase anywhere from three percent to 32 percent.
For Minnesota small businesses, they will now have to seek health coverage through the insurance companies.
The IRS has a section dedicated to small business tax credits – one credit includes buying health insurance through the state exchange.
MNSure CEO Allison O’Toole tells Christopher Snowbeck of the Star Tribune that MNSure will work with small businesses so they can continue to receive tax credits.