Minnesota's Obamacare exchanges are in an 'emergency situation'

Before you go, we thought you'd like these...
Before you go close icon

Another state is seeing its Affordable Care Act (ACA), better known as Obamacare, exchanges hit some serious roadblocks.

In a release on Friday, Minnesota Commerce Commissioner Mike Rothman, who oversees the exchanges on which people in Minnesota not receiving insurance through their employer or government programs like Medicare and Medicaid, said premiums will rise as much as 67% for some insurers.

According to the release, Rothman said the exchanges are "very near collapse" as Blue Cross Blue Shield pulled out of the market, citing large financial losses. This exit is indicative of the mood of the other insurers, who Rothman described as "prepared to exit this market."

Part of the problem is the federal reinsurance program which used to assist insurers that may have taken on sicker patients and endured losses is expiring this year, removing a safety net for many insurers.

"The Commerce Department pursued every option within its power to avert a collapse this year," said Rothman in the release. "We succeeded in saving the market for 2017, with only Blue Cross leaving. But the rates insurers are charging will increase significantly to address their expected costs and the loss of federal reinsurance support."

11 PHOTOS
SCOTUS hears Obamacare contraceptives challenge
See Gallery
SCOTUS hears Obamacare contraceptives challenge
Nuns, including Sister Maria Kolbe, right, of the Order of St. Francis, from Mishawaka, Ind., rally outside the Supreme Court in Washington, Wednesday, March 23, 2016, as the court hears arguments to allow birth control in healthcare plans in the Zubik vs. Burwell case. The Supreme Court is taking up a challenge from faith-based groups that object to an Obama administration effort to ensure their employees and students can get cost-free birth control. (AP Photo/Jacquelyn Martin)
WASHINGTON, DC - MARCH 23: Nuns supporting Little Sisters of the Poor, attend a rally in front of the US Supreme Court, March 23, 2016 in Washington, DC. Today the high court will hear arguments in Little Sisters v. Burwell, which will examine whether the governments new health care regulation will require the Little Sisters to change their healthcare plan, to other services that violate Catholic teaching. (Photo by Mark Wilson/Getty Images)
WASHINGTON, DC - MARCH 23: Nuns supporting Little Sisters of the Poor, attend a rally in front of the US Supreme Court, March 23, 2016 in Washington, DC. Today the high court will hear arguments in Little Sisters v. Burwell, which will examine whether the governments new health care regulation will require the Little Sisters to change their healthcare plan, to other services that violate Catholic teaching. (Photo by Mark Wilson/Getty Images)
WASHINGTON, DC - MARCH 23: Nuns supporting Little Sisters of the Poor, attend a rally in front of the US Supreme Court, March 23, 2016 in Washington, DC. Today the high court will hear arguments in Little Sisters v. Burwell, which will examine whether the governments new health care regulation will require the Little Sisters to change their healthcare plan, to other services that violate Catholic teaching. (Photo by Mark Wilson/Getty Images)
WASHINGTON, DC - MARCH 23: Nuns supporting Little Sisters of the Poor, attend a rally in front of the US Supreme Court, March 23, 2016 in Washington, DC. Today the high court will hear arguments in Little Sisters v. Burwell, which will examine whether the governments new health care regulation will require the Little Sisters to change their healthcare plan, to other services that violate Catholic teaching. (Photo by Mark Wilson/Getty Images)
WASHINGTON, DC - MARCH 23: Nuns supporting Little Sisters of the Poor, attend a rally in front of the US Supreme Court, March 23, 2016 in Washington, DC. Today the high court will hear arguments in Little Sisters v. Burwell, which will examine whether the governments new health care regulation will require the Little Sisters to change their healthcare plan, to other services that violate Catholic teaching. (Photo by Mark Wilson/Getty Images)
WASHINGTON, DC - MARCH 23: Nuns supporting Little Sisters of the Poor, attend a rally in front of the US Supreme Court, March 23, 2016 in Washington, DC. Today the high court will hear arguments in Little Sisters v. Burwell, which will examine whether the governments new health care regulation will require the Little Sisters to change their healthcare plan, to other services that violate Catholic teaching. (Photo by Mark Wilson/Getty Images)
Kate Perelman of Silver Spring, Md., left, with Americans United for Separation of Church and State, holds a sign saying "Notorious IUD" as a play on words with the nickname for Supreme Court Justice Ruth Bader Ginsburg, as she, and others, rally in support of birth control access regardless of employer, Wednesday, March 23, 2016, outside the Supreme Court in Washington. The Supreme Court is taking up a challenge from faith-based groups that object to an Obama administration effort to ensure their employees and students can get cost-free birth control. (AP Photo/Jacquelyn Martin)
FILE - In this March 25, 2015, file photo, Margot Riphagen, of New Orleans, wears a birth control pills costume as she protests in front of the Supreme Court in Washington, as the court heard oral arguments in the challenges of President Barack Obama's health care law requirement that businesses provide their female employees with health insurance that includes access to contraceptives. Some insurance plans offered on the health marketplaces violate the lawâs requirements for womenâs health, according to a new report from a womenâs legal advocacy group. The National Womenâs Law Center analyzed plans in 15 states over two years and found some excluded dependents from maternity coverage, prohibited coverage of breast pumps or failed to cover all federally approved birth control methods. (AP Photo/Charles Dharapak, File)
FILE - In this March 25, 2015, file photo, protestors one wearing a birth control pills costume participate in a demonstration in front of the Supreme Court in Washington, as the court heard oral arguments in the challenges of President Barack Obama's health care law requirement that businesses provide their female employees with health insurance that includes access to contraceptives. Religion, birth control and the Obama health care overhaul are about to collide at the Supreme Court yet again. Faith-affiliated charities, colleges and hospitals that oppose some or all contraception as immoral are battling the Obama administration over rules that allow them to opt out of covering the contraceptives for women that are among a range of preventive services that must be included in health plans at no extra cost. (AP Photo/Charles Dharapak, File)
HIDE CAPTION
of
SEE ALL
BACK TO SLIDE
SHOW CAPTION

According to the St. Paul Pioneer Press, Rothman described it in even more dire terms.

"These rising insurance rates are unsustainable and unfair," Rothman told Pioneer Press' David Montgomery. "This is a real emergency situation."

The issues facing Minnesota are familiar, states like Tennessee are also seeing large premium increases and a lack of competition among providers as companies exit the market. Even large, national insurers like Aetna, Humana, and UnitedHealthcare have been rolling back their Obamacare coverage.

Thankfully, only 250,000 people, or 5% of the population in the state, get their insurance through the exchanges. Additionally, subsidies are available for people that make $47,520 or less a year, or for a family of four making less than $97,200 in total.

Rothman said that for those not receiving subsidies, the premium increases are "unsustainable and unfair" and called for reform. Unfortunately, on the federal level the standoff between the Republican-led legislature and President Obama make any reform unlikely until at least after the election.

The Center of Medicare and Medicaid Services, the federal regulator that oversees the marketplaces, has announced reforms that could help alleviate some of the issues and mitigate losses for insurance companies. Additionally, a push by the Department of Health and Human Services to get young people to sign up for Obamacare, which would reduce losses for insurers, was rolled out last week.

These reforms, however, are of little solace for Minnesotans this year.

NOW WATCH: KRUGMAN: Obamacare was done 'on the cheap' and now it is struggling

See Also:

SEE ALSO: A startup specifically designed to sell Obamacare is quitting Obamacare

SEE ALSO: The White House is kicking off a big push to fix Obamacare's largest problem


Read Full Story

Sign up for Breaking News by AOL to get the latest breaking news alerts and updates delivered straight to your inbox.

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners