The document discusses Blue Cross Blue Shield of Minnesota's proposed average 54% premium increase for individual and family health insurance plans in 2016. It provides details on the rate filing process and review by regulators, and notes that final approved rates will be available later this year before open enrollment begins on November 1st. It also explains that tax credits may help reduce the cost for many eligible individuals and families.

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Medicare Annual Enrollment (usually age 65 or over). The next Annual Enrollment
Period is scheduled to begin October 15, 2015 and end on December 7, 2015. Coverage
will be effective on January 1, 2016.
People “aging in” to Medicare in 2016 can continue to enroll for their respective effective
dates (i.e. September 1st, October 1st, November 1st, or December 1st).
Health Insurance Enrollment (usually under age 65). The next open enrollment period is
scheduled to begin November 1, 2015 and end on January 31, 2016. Effective dates will
be January 1, 2016 and beyond.
Update on the 2016 Individual and Family
Plans
In May, Blue Cross and Blue Shieldof Minnesota submittedinitial filings for 2016 premiums relatedto
products available in the Minnesota individual health insurance market.
If you are under the age of 65 and purchase your plan directly from Blue Cross, through an agent or broker,
or through MNsure, youhave an individual and family plan and the following information will apply to
your health plan.
If you have a Medicare product or receive Blue Cross coverage through your or your spouse’s employer,
these rates changes do not apply to your health plan.
If you have an individual and family plan, we want to help youunderstand the process for how 2016
premiums are set. The following information can assist youin understanding what information is available
now and when youcan expect further details on your plan options for next year.
1. Why are rates for 2016 products being discussed now?

2. The Affordable Care Act requires that certain proposed premium increases for individual and family plans be
available for publicreview. This process only applies to proposals that include an average increase of 10
percent or more.
This level of transparency gives consumers ample time to provide comment to regulators on assumptions
and evidence that Blue Cross and other health insurers include in their requiredfilings.
The filings available through the rate review process include average increase for an insurer’s family and
individual plans. They do not contain any member-specificpricing details.
2. What is included in the Blue Cross filing for 2016 prices?
Blue Cross fileda rate request for individual and family plans that reflects an average 54 percent price
increase over our 2015 individual market rates, effective January 1, 2016.
We understand the impact this difficult decision will have on our members. Ultimately, the rapidly rising
costs of coveredbenefits and other challenging market factors made this a necessary step. We ended 2014
with a significant financial deficit for this business, in excess of $135 million. Unfortunately, the same
challenges remain in place for 2015.
3. Where can I find the filings for 2016 prices?
Our rate filings are accessible now on ratereview.healthcare.gov. Consumers can view all of the supporting
information for proposed2016 rates. All proposedrates need to be reviewedand approvedby the Minnesota
Department of Commerce before goinginto effect.
4. What will be the price of my current Blue Cross plan in 2016?
The anticipated new price for your Blue Cross plan in 2016 will be mailedlater this year, prior to the start of
open enrollment in November. Final prices are subject to approval by the Department of Commerce.
5. How will this affect my rate if I selected my current Blue Cross
plan through
MNsure?
All of our individual and family products for 2016 will be available both on and off MNsure. MNsure
continues to be the only enrollment option that can apply federal tax credits for lowering health insurance
costs.
For eligible individuals andfamilies, these tax credits may be able to substantially reduce the out-of-pocket
impact of premium increases. We are confident that the overall amount of tax credits in Minnesota will
increase in 2016, and that more Minnesotans will be able to receive those credits.
Tax credit eligibility is determinedby a combination of householdincome andinsurance prices. For more
information on whether youare eligible for tax credits, go to http://kff.org/interactive/subsidy-calculator/.
(Note: these premium calculations are an estimate of 2015 costs and do not reflect the 2016 premium changes.

3. We anticipate these tools will be updated in early October when final premium information is available.)
6. When can I shop and compare my coverage options for 2016?
The next open enrollment periodfor individual andfamily plans begins on November 1, 2015 for all plans
effective on or after January 1,
7. Will there be additional plan offerings from Blue Cross that
offer a lower price than my current plan?
Each year, Blue Cross reviews our product portfolio to offer the widest possible range of choice among
benefits, networks and price points. Our 2016 plans will offer a similar amount of choice for individuals
interestedin coverage from Blue Cross.
8. How did Blue Cross determine the proposed prices for 2016?
There are two primary factors that drive rates: the cost of the products and services being providedand the
amount that those products and services are used.
As an example of rising costs, the cost of prescription medicines, particularly new specialty medicines, has
been increasing rapidly. In addition, the amount of health care services needed by our members in individual
and family plans has exceeded projections. As a result, we are spending substantially more for coveredcare
than we receive in premiums.
Planning for 2016 prices requires us to estimate future costs by looking very closely at current information
and trends within our business. This is a highly regulatedprocess involving the Minnesota Department of
Commerce andthe Minnesota Department of Health.
Because of this oversight, Blue Cross provides a significant amount of cost and claims data to our regulators.
Determining actual prices is the last step in this analysis. Premiums are the outcome of how we can continue
to pay for all coveredbenefits in a predictable and sustainable manner.
9. Can I switch my plan for the rest of 2015?
In most cases, the only time the law allows for enrollment in a new plan is during the open enrollment
period. However, if you have special circumstances that are definedas “eligiblelife events,” such as
marriage, divorce, birth of a child, or loss of employment, youcan switch from your current plan to another
2015 plan. This proposedincrease does not affect your current rate for the remainder of 2015.
©2015 Blue Cross and Blue Shieldof Minnesota. All rights reserved.
Blue Cross® and Blue Shield® of Minnesota and Blue Plus® are nonprofit independent licensees of the Blue
Cross and Blue ShieldAssociation.