MN officials push health coverage sign-ups as deadline nears

State officials are making a final pitch for Minnesotans to sign up for health insurance before open enrollment is scheduled to close on Tuesday.

They're banking on $312 million in funds from the state to entice people who've delayed in signing up for insurance plans because of the cost. Gov. Mark Dayton signed a bill this week that offers a 25 percent discount on health insurance premiums for plans purchased through MNsure or the individual market in 2017.

Those who are eligible will receive the discount automatically, said Minnesota Management and Budget Commissioner Myron Frans.

"We have been concerned that people are waiting on the sidelines," Frans said. "We know there are some people who are, we don't know how many, and our hope is that people will now say 'OK, with this 25 percent reduction, I can now afford health insurance.'"

There's no income cap on the discount, but people who receive insurance through their employer aren't eligible. Those who already receive federal tax credits for their insurance also aren't eligible. But the federal tax credits for health insurance will typically amount to more than the new state discount anyway, said Allison O'Toole, CEO of MNsure, the state-sponsored health care insurance exchange.

"The tax credits have tripled this year," O'Toole said. "They're averaging over $600 a month, or $7,500 a year. That is real money for Minnesotans, and the vast, vast amount of the time will be more than the 25 percent rebate."

She said the discounts will likely show up on bills starting in April, and will apply retroactively to payments made starting in January.

The open enrollment period closes at midnight on Tuesday, Jan. 31.

The average price of premiums for individual and families jumped by more than 50 percent this year, according to state officials.

Already, 106,000 people have signed up for MNsure for 2017, an increase of 30 percent over 2016, O'Toole said. About 125,000 Minnesotans are eligible for the new discount, which could affect premiums next year if the state sees more people enroll.

"The health of the market does depend on the volume," Frans said. "Our belief is that if we have very strong numbers, it may in fact help improve the overall insurance premium next year."

Dayton sent a letter earlier this week to the U.S. Department of Health and Human Services to ask that the state's open enrollment deadline be extended until Feb. 28, but hasn't yet received a response. The previous Obama administration denied a similar request for an extension.

The $312 million in state funding to keep down premiums is only in place for 2017.

Dayton proposed earlier this week that the general public be allowed to sign up for the state's MinnesotaCare health insurance program. Officials in Dayton's administration estimate that an additional 100,000 people could enroll in the program if a cap on income was lifted.

That proposal was immediately criticized by some top state Republicans. Even if it does pass, it would require federal approval.