Board Updates MMA’s Position on Public Option Support

March 10, 2022

The MMA Board of Trustees adopted a new policy at its March 7 meeting that defines requirements for the MMA to lend its support to any state-level public option proposals for Minnesota. The policy was submitted via The Pulse by the MMA Policy Council.  

Last year, the Policy Council identified as its number one priority the “public option” or a government-run health plan that would compete with private plans to provide more affordable health insurance coverage for Minnesotans. 

The policy says the MMA will only advocate for the public option if it follows these standards: 

• Plans offered under a public option must result in lower premiums than private plans with equivalent actuarial values. 

• The public option may not offer plans with actuarial values below 70%. 

• The public option must include offerings in the individual market and may include offerings in the small and large group markets. 

• The public option must reimburse professional services at rates no lower than Medicare levels. The state should meaningfully engage providers for input on appropriate reimbursement levels. 

• The public option shall not require provider participation as a requirement for state licensure 

• The public option should not depend solely on provider reimbursement caps to offer more affordable products. The MMA supports medical loss ratio (MLR) requirements above the current 80% minimum for plans offered under the public option. 

• The state should not use its own funds to subsidize premiums or cost-sharing under the public option. Enrollees eligible for advance premium tax credits and cost-sharing reductions under existing federal law should be allowed to use said credits and reductions toward the purchase of plans offered under the public option. 

• Prior to the implementation of the public option, the state should contract with a nonpartisan research entity to conduct an actuarial analysis to provide a best estimate as to the net effects of the public option on the uninsured and underinsured rates in Minnesota. This analysis should examine potential effects of the public option on provider cost-shifting, the stability of private plan premiums, and healthcare supply. 

• Should a public option be implemented, the state should publish easily accessible public data at least biennially to monitor relevant performance metrics, including, but not limited to, variables listed in the previous subsection. 

Eighty-five members voted on the policy proposal, with 72 voting yes, 10 voting no and three not taking a position.  
 
The Pulse, available only to MMA members, can be used to submit policy proposals for MMA consideration, vote on policy proposals prior to MMA Board action, and provide feedback on decisions made by the MMA Board.