Minnesota Health Insurance: 2021 Coverage Guide

Fran Majidi
September 10, 2020

If you live in Minnesota and are shopping for health insurance, you have options, but you need to understand how to choose the right coverage. We want to help. Below, we have listed the types of insurance available and the levels of coverage offered in Minnesota as well as pointers on how to determine which coverage is right for you. Do keep in mind that you can only buy health insurance during the open enrollment period, unless you have a qualifying event. If you miss the deadline, you may have to wait another year to get insured.

When Is Open Enrollment in Minnesota?

November 1, 2020 - December 15, 2020. Coverage begins January 2021.

How to Get Health Insurance in Minnesota

It’s a good idea to have a projection of healthcare costs for the following year based on the previous year. This information will determine which type of coverage is right for you, and which level tier will be most economical. The younger and healthier you are, the less coverage you’ll need. If you see care providers frequently, a higher premium plan may actually save you money, despite costing more each month.

Once you figure out which level plan will bring you the most savings, you can then compare health insurance companies and health insurance quotes. After you submit the form to SmartFinancial you’ll get several health insurance options, and we’ll match you with the right agent in your area. There’s no obligation to buy, and you can ask important questions.

What Types of Health Insurance Are Available in Minnesota?

HMOs, EPOs, PPOs and POS plans are available in Minnesota. Most of these plans have a network of providers, which makes getting the care you need even more affordable. If you have doctors that are not in the networks you’re considering, you may opt for a PPO plan, which will still partially cover your visits. It’s important to note that plans are also broken down into tiers: bronze, silver and gold. Gold plans cover 80% of all costs and have lower deductibles than the lesser tiers. Bronze plans only cover 60% of costs and silver plans cover 70%.

Does Health Insurance Cover Pre-existing Conditions?

Marketplace health plans cannot deny anyone health insurance coverage based on pre-existing conditions.

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Do I Qualify for a Special Enrollment Period?

Common reasons people qualify for a special enrollment period:

  • Lost or quit a job. You may have lost a job, changed jobs or even started your own business. If you’re without health insurance, you may qualify to buy coverage during the special enrollment period.
  • Turned 26. If you were on your parents’ health insurance plan but are no longer eligible for coverage because you turned 26, you can buy a new health plan.
  • Moved out of state or out of a coverage area. Your health plan may only be valid in one state or county. If you move and lose coverage, you can sign up for a new health plan.
  • Cobra coverage deadline. If you have a Cobra extension and reached the deadline, you can enroll in a new health plan.
  • Divorce. If you share health insurance coverage with your spouse, you can enroll in a new health plan if you divorce.
  • Marriage. If you recently married, you may add your spouse to your policy (or vice versa). You may also start a new policy together.
  • Birth or adoption of a child. If you welcomed a new child into your family outside the open enrollment date, you can still buy health insurance for that child.
  • Death of spouse or partner. If you were covered under your spouse or partner’s health plan but that person passed away, you may enroll in an individual plan.
  • Spouse of partner loses coverage. If you had health insurance coverage through a partner or spouse but that person lost coverage for any qualifying reason, you are eligible to buy a plan with or without that spouse/partner again.

Is Health Insurance Required in Minnesota?

No, only California, Massachusetts, New Jersey, Vermont, Rhode Island, and DC still require health insurance. Otherwise, there is a tax penalty. Even though it’s not required in every state, buying health insurance is necessary to avoid medical bankruptcy.

How Much Is Health Insurance in Minnesota?

The average cost of health insurance in Minnesota for a 40 year old is about $300 a month. Health insurance is less expensive, the younger you are. Tobacco use increases health insurance rates.

How to Save on Health Insurance in Minnesota

To save money on health insurance in Michigan, compare rates based on the tier system. Beforehand, you’ll want to estimate your medical costs.

Medicare in Minnesota

Medicare is health insurance coverage for Americans ages 65 years and older. The government also allows younger people with disabilities to enroll in the program. Individuals with End-Stage Renal Disease (a permanent kidney failure treated with dialysis or a transplant) can also sign up as can some individuals with severe mental health issues. Others who qualify for Medicare disability coverage are individuals with Amyotrophic Lateral Sclerosis (also called Lou Gehrig’s Disease). Most beneficiaries will receive Original Medicare (Parts A and B). Some people buy Medicare Advantage, which includes Part A and B as well as offering vision, dental and prescription drug coverage.

How Many People Are on Medicare in Minnesota?

18% of the population in Minnesota is on Medicare.

How Much Is Medicare in Minnesota?

If you do not qualify for Medicare, you can buy it for $458 a month for Part A in 2020 and a standard monthly premium for Medicare Part B was $144.60 for 2020, or even higher depending on income. .

Original Medicare vs Medicare Advantage: What’s the Difference?

Medicare is a government subsidized health plan that is available to qualified Americans age 65 and older. Medicare Advantage is sold through private health insurance companies, but these policies are also regulated by the government. Medicare Advantage plans offer the same benefits as Medicare Parts A and B. Medicare Advantage plans also offer more coverage for dental, vision, hearing and prescription drugs. Medicare Advantage plans have a maximum out-of-pocket limit. For 2020, it was $6,700 but many plans set their maximums at a much lower cost. That is why it’s important to compare companies. People who opt for original Medicare can buy Medicare Supplements to help with out-of-pocket costs. You cannot buy both Medicare Advantage and Medicare Supplements. If you enroll in a Medicare Advantage Plan during open enrollment, you will automatically be disenrolled from original Medicare.

How to Get Medicare Coverage in Minnesota

If you receive social security payments, you may automatically enroll in Medicare, but you may have to sign up if you do not receive payments. The easiest way to enroll in Medicare is by working with a trusted insurance agent to get the coverages you want. Just enter your zip code and answer a few simple questions.

Types of Medicare Plans Available

Original Medicare, Medicare Advantage, Medicare Cost Plans (only offered in certain areas), Demonstration/Pilot Programs (also called Research Studies; only offered in certain areas) and Programs of All-Inclusive Care for the Elderly (PACE).

How Do I Qualify for Medicare?

To qualify for Medicare you must be a citizen of the U.S. or have been a legal resident for at least five years. If you are age 65 or older and you/your spouse have worked for at least 10 years (40 quarters) or you have a disability, Amyotrophic Lateral Sclerosis (ALS) or end-stage renal disease (ESRD), you most likely qualify for Medicare.

How Can I Save on Medicare in Minnesota?

You can save on Medicare by signing up for Part B as soon as you’re eligible. People who enroll late must pay a penalty every year. If you’re interested in buying Medicare Advantage, you can shop and compare Medicare plans for the best value.

Minnesota State Health System Ranking

  • Minnesota: Overall State Ranking: 3 of 51
  • Minnesota: Overall Performance: Better than Average
  • Minnesota: Access & Affordability: 9
  • Minnesota: Prevention & Treatment: 3
  • Minnesota: Avoidable Hospital Use & Cost: 11
  • Minnesota: Healthy Lives: 2
  • Minnesota: Health Care Disparities: 5
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Minnesota Health Insurance Coverage

The people of Minnesota have different kinds of health insurance while some Minnesota residents are not insured at all. See the breakdown below:

  • Private coverage: 60%
  • Medicaid: 17%
  • Medicare: 18%
  • Uninsured: 5%

Minnesota Health Insurance Companies

  • Grup Health Plan, Inc.
  • HealthPartners Administrators Inc.
  • HealthPartners, Inc.
  • BCBSM Inc. (Blue Cross Blue Shield of Minnesota)
  • Medica Health Plans (MHP)
  • Medica Health Plans of Wisconsin (MHPW)
  • Medica Insurance Company (MIC)
  • Medica Self-Insured (MSI)
  • PreferredOne Community Health Plan
  • PreferredOne Insurance Company (PIC)
  • Aetna Life Insurance Company (Minnesota)
  • UnitedHealthcare Military & Veterans Services, LLC
  • Blue Plus (HMO Minnesota)
  • Compass Rose Health Plan

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