Skip to main content
Updated:
Original:

Why is health insurance more pricey in southeastern MN? Maybe it's Mayo

Author:

The advent of MNsure has made it clear that southeastern Minnesotans pay more for health insurance than those who live in other parts of the state.

Now the "Why" question is getting more attention. And, as MPR reports, the people answering it are looking at the Mayo Clinic as the most likely explanation.

A University of Minnesota expert tells MPR that Mayo's dominance in the region makes it an expensive market for any competitor to enter. Consequently, Mayo has little competition and its prices - which are at the high end -- become the standard for the region.

The president of the health care analysis group Minnesota Community Measurement recently told the Winona Post that insurance providers have always charged more in southeastern Minnesota. Jim Chase tells the paper the arrival of the state's health insurance exchange has only made the disparity more stark.

The high premiums and lack of options may lead some businesses to look at moving to other parts of the state. KAAL visited with one small business owner who has facilities in both Rochester and Bloomington. Diane Eide tells the station her Bloomington office had 60 health plans to choose from, while the one in Rochester had only one.

State Rep. Tina Liebling told the Rochester Post Bulletin last month she planned to meet with Mayo officials about their rate structure, saying "I think Mayo is going to have to take a hard look at that problem." A Mayo spokesman told the newspaper the clinic objects to the fee-for-service model that MNsure uses, preferring to measure the total cost of treating a disease.

Next Up

Screen Shot 2020-08-14 at 6.45.53 PM

Teen arrested over fatal shooting of 5-year-old boy in Brooklyn Park

Police say the teen was filming a social media video while handling a gun.

Joe Biden

President Biden coming to Minnesota to promote Bipartisan Infrastructure Law

Tuesday's trip follows passage of the $1.2 trillion Bipartisan Infrastructure Deal.

Kirill Kaprizov

Kaprizov gets into the holiday spirit to rout Jets

Kirill Kaprizov's four points led the Wild to a 7-1 victory.

Kirk Cousins

Coller: Cure to Vikings' disrupted season lies in an explosive passing game

The Vikings go to San Francisco knowing that a win would be a huge boost to their playoff hopes.

unsplash football helmet ground

Judge upholds star QBs suspension for state championship game

Sam Backer, of Chatfield Senior High, won't be allowed to play in Friday's title game.

Screen Shot 2021-11-25 at 7.53.37 AM

Another 5,000 lbs. of goldfish removed from Carver County lakes

It all likely stemmed from people dumping their pets into local waters a few years ago.

Rosaleia Shelton

Appeal to find 19-year-old missing from Bloomington

The teen left her home on Monday afternoon.

hospital, emergency room

Deaths of twin fetuses after woman was shot ruled a double homicide

The woman was shot in the abdomen in mid-September.

Payton Willis / Gopher Basketball

Gophers improve to 5-0 with win over Jacksonville

The Gophers are establishing momentum early in the season.

Related