PreferredOne – a carrier with a 59 percent share of Minnesota individual public exchange plan enrollment – has decided to pull out of the state’s exchange in 2015.
Managers of MNsure, a state-based Patient Protection and Affordable Care Act (PPACA) exchange, said they believe customers will be able to choose qualified health plans (QHPs) from at least four other carriers for 2015. State law gives consumers who already have PreferredOne QHP coverage the right to renew their coverage next year, but PreferredOne can increase the premiums.
Scott Leitz, the chief executive officer of MNsure, and Marcus Merz, the CEO of PreferredOne, put out a joint statement saying “both organizations understand that MNsure is still an evolving partnership.”
PreferredOne said in a separate statement that its 31,000 exchange QHP enrollees account for just a small share of the company’s total enrollment but use up a significant share of its administrative resources. “We feel continuing on MNsure was not sustainable,” the company said.
PreferredOne kept prices low this year partly by setting deductibles for coverage with a “metal level” relatively high. For a 49-year-old single nonsmoker in Minneapolis, for example, silver-level coverage now costs about $205 per month for a QHP with a $3,500 annual deductible.