Mar­cus Merz, CEO of Pre­ferredOne

Modern Healthcare - - REFORM UPDATE -

The not-for-profit in­surer, half owned by Fairview Health Ser­vices, rocked Min­nesota’s al­ready-strug­gling in­surance ex­change when it an­nounced in Septem­ber it would exit the ex­change mar­ket for 2015. This year it cap­tured nearly 60% of ex­change en­rollees on the strength of low pre­mi­ums. Pre­ferredOne said the ex­change business was “not sus­tain­able.” It re­port­edly paid $1.31 in claims for ev­ery $1 in pre­mium rev­enue for the first six months. Ex­perts said the in­surer un­der­priced its plans. Now thou­sands of Min­nesotans will have to choose a dif­fer­ent ex­change plan if they want to keep their fed­eral pre­mium sub­sidy.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.