Minnesota’s Blue Cross Exits Individual Market

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Minnesota’s largest health insurer will pull the bulk of its plans off the individual market at the end of the year, forcing an estimated 103,000 residents to find new health care plans and providing the latest reminder of volatility in the market that’s been reshaped by President Barack Obama’s health care law. (Twin Cities.com Pioneer Press)

“Based on current medical claim trends, Blue Cross is projecting a total loss of more than $500 million in the individual [health plan] segment over three years,” the insurer said in an emailed statement. (National Public Radio)

All of Minnesota’s nonprofit health plans lost money last year covering consumers who bought their own health plans, but Blue Cross and Blue Shield lost the most. (Star Tribune)

However, the large Blues insurer is not completely exiting the state-based marketplace. Fully withdrawing has its consequences: Federal law bars insurers from re-entering the marketplaces for five years, assuming they discontinue all types of individual policies. (Business Insurance)

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