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Law Against raising medical premium twice in one year? Please help! Minnesota

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  • Law Against raising medical premium twice in one year? Please help! Minnesota

    Our medical coverage renews on Feb. 1st. As with every year, our premiums went up. No surprise there. Hence, our employees premium payroll deductions will increase accordingly. Our premiums are divided into age banded groups (different premium for each age banded group 25-29, 30-34, etc.)

    One particular employee is arguing because his premium rate (and premium payroll deduction) increased with the renewal and it will increase again next month because he will be turning 50 and will move into a different age banded group that has a higher premium rate. His birthday and our renewal date just happen to be one month apart. We obviously do not have any control over the premium rates our provider has given us.

    He says the state of Minnesota has a law preventing us from increasing his rate/premium payroll deduction twice in one year. I have never heard of such a law.

    Can someone shed some light on this? If so, can you also provide your information resource? Thanks!

  • cbg
    replied
    Good point - my state does allow age banded rates for disability, life and LTC.

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  • hr for me
    replied
    You might also check with your broker/carrier since they also should be able to point you to some resources. And let you know what your contract with them states. (I am also in a state that doesn't allowed age-banded rates for health insurance. We do have age-banded for other insurance benefits -- life/std/ltd and those follow age at time of renewal each year.)

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  • cbg
    replied
    I didn't think so. If the state is going to allow age banded rates at all, there has to be some provision for the (majority of) people whose birthdays do not necessarily coincide with the change of plan year.

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  • mnhrrep
    replied
    I did ask him to show me the specific law or statute he was citing and he said he couldn't remember where he read it. Might have been online, etc. Since I myself have never heard of such a law, I figured I would research further in the event that there was something out there I was not aware of. I did tell him that I was not aware of any such law or statute.

    Thanks for your feedback. Our state does allow age banded rates so I was almost 100% sure that we were in the right on this one.

    I did also speak with our Dept. of Commerce and it appears we ARE in the right. No such law or statute in MN.

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  • cbg
    replied
    From my perspective, you're doing this the wrong way around. Instead of him saying, There's a law that you can't.... and your then going to look for the law, when he says, There's a law that you can't.... you say, Show it to me.

    Put the burden on him to show you the law. Don't take it upon yourself to go looking for it.

    That being said, my state doesn't permit age banded rates any more so I have no direct experience with this. But it seems to me that if your state allows them (and I know some states do) this can't be a unique situation. Your dept of insurance would probably have the answer.

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