Loophole could let some health plans escape consumer protection laws

Some out-of-state health plans sold through online exchanges could escape consumer protection laws in Minnesota and other states, says a trade group that represents Minnesota health insurance plans.

Exchanges will allow consumers to compare and buy health insurance. A group of insurance regulators said there is a potential loophole in the federal health care law that could exempt some multi-state plans from state regulations when the law takes effect in 2014.

Potentially, health plans operating in multiple states could be exempt from Minnesota's consumer protection laws, allowing those multi-state plans to attract healthier clientele could leaving other insurers with more expensive and costly enrollees.

And that would be a bad idea, said Julie Brunner of the Minnesota Council of Health Plans.

"We have high thresholds for financial solvency; we have quality improvement and reporting requirements; the appeals and grievance procedures have been in Minnesota for years," Brunner said. "We just got all of those things in place. That's not true in every state."