PreferredOne reports significant losses after huge jump in health plan enrollment

Author:
Updated:
Original:

The company touted for helping MNSure offer some of the lowest health insurance premiums in the country in 2014 is reporting massive financial losses.

Golden Valley-based PreferredOne reports it lost $139 million in the individual market last year, according to the Star Tribune. (“Individual market” refers to health insurance bought directly by individuals outside of employer groups, according to NPR and Kaiser Health News.)

The paper says PreferredOne went from covering 14,000 individual policies in 2013, to 83,000 the next year.

How did more sign-ups lead to losing money?

The company told the Star Tribune it thinks it covered a large number of high-risk people who were previously unable to get insurance, and the claims that came with those customers weren't worth the risk.

PreferredOne made headlines when it pulled out of the health insurance exchange despite having been its largest carrier, accounting for nearly 60 percent of the plans purchased through MNsure. The company cited administrative costs associated with covering the plans as one of its reasons for exiting, according to the Minneapolis / St. Paul Business Journal.

Now, Blue Cross Blue Shield seems to be filling the vacuum left by PreferredOne. According to a Pioneer Press blog, the company – along with a related carrier, Blue Plus – is now MNSure’s largest carrier, making up more than half of its business.

Next Up

court gavel

8 people charged in Medicaid fraud scheme totaling $860K

Collectively, they're charged with 46 counts of felony theft.

vaping

Minnesota gets mixed grades on its tobacco report card

In Minnesota, the economic cost due to smoking is $2.519 million with 5,910 deaths per year attributed to smoking.

Hardy Wills-Traxler

Charges: Man stabbed his father, set his home on fire

The 25-year-old has been charged with second-degree murder and first-degree arson.

Impound lot

Crowded impound lot raises COVID concerns after Minneapolis snow emergency

A vehicle owner complains about the tightly-packed impound lot following the weekend's snow.

covid-19, coronavirus

Here is Minnesota's COVID-19 update for Wednesday, Jan. 27

The latest update from the state health department.

charley's

Charges: Bar owner, employee served underage drinkers during shutdown

The bar hosted 20-30 people on Dec. 4, 2020, charges say.

police lights

Driver wearing bulletproof vest strikes pedestrian in Rochester

The 21-year-old claimed the vest keeps him warm, according to police.

Screen Shot 2019-08-19 at 8.08.05 PM

6 men charged in connection to 'disturbing trend' of carjackings, shootings

The men are accused of three carjackings in one day, as well as other crimes.

YouTube TV, FSN

Report: Fox Sports North is becoming Bally Sports North

The rebranding will reportedly happen prior to the start of the MLB season.

walmart mask

Wisconsin Senate votes to end statewide mask mandate

The joint resolution now heads to the Republican-controlled state assembly.

Related