Just wait and see how much free health care is really going to cost!

The rollout of federal health reform hit a few bumps in Minnesota on Thursday.

Bloomington-based HealthPartners said it was temporarily suspending sales of individual health insurance policies because of uncertainty created by the new federal law. Blue Cross and Blue Shield of Minnesota said it was taking similar steps.

But officials with the Medica and PreferredOne health plans said they still were selling policies in the individual market, where about 1 in 20 Minnesotans obtain health insurance coverage.

Congress passed health reform six months ago; as of Thursday, new health insurance policies had to comply with key provisions of the legislation. In Minnesota, that's meant changes to health plan policies that regulators at the Minnesota Department of Commerce must approve before companies can sell them to new customers.

The state hasn't signed off on some changes sought by HealthPartners, said Amy Von Walter, a company spokeswoman. "Due to continuing changes caused by health care reform, we temporarily have no long-term individual medical plans for sale," the insurance company says in a notice on its website. "We are currently working with regulators to get affordable products approved to sell as quickly as possible."

Blue Cross and Blue Shield of Minnesota also awaits final approval before resuming sales of its health plans for individuals, said Pam Lux, a spokeswoman for the Eagan-based insurer.

"Every single specific piece of contract language and
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benefit design hasn't been approved yet," Lux said. "We expect it will be soon, but until then, we have to hold back on writing contracts."

Current customers at both plans are not affected by the disruption. It also does not affect people covered through group health insurance plans - the majority of Minnesotans.

Beginning Thursday, newly issued policies to individuals and groups had to include benefits mandated by the federal health reform law such as enhanced coverage for preventive care and a prohibition on caps for lifetime benefits.

The law has been controversial. In August, Minnesota Gov. Tim Pawlenty said he would take whatever steps he could to impede implementation of federal reform, and it is his administration's Commerce Department that has not provided final approvals for the offerings from HealthPartners and Blue Cross.

But health plan officials say the Commerce Department has been working hard to get the situation resolved. And Nicole Garrison-Sprenger, a department spokeswoman, said HealthPartners and Blue Cross have received approval for health reform amendments to existing individual insurance products that would let them keep selling if they elected to do so.

What's happening, she said, is that the Commerce Department is still getting guidance on details of health reform from the federal government. That, in turn, has led health plans to file amendments as recently as this week for new rates and policies.

"It's up to the plans to decide whether they want to use the policies and rates that they have in place or if they would rather hold off until a new rate and policy has been approved," Garrison-Sprenger said. Some health plans have avoided the first-day hiccup by waiting to make bigger changes to individual insurance policies.

"Medica added the changes required by (health reform) last year without re-filing our products and pricing," said spokesman Greg Bury. "To account for the impact of (health reform), we will re-file our pricing for an effective date of Jan. 1."

Christopher Snowbeck can be reached at 651-228-5479.