Minnesota's Biggest O'care Insurer Drops Out Over Overwhelming Cost

[tyroneweaver]

Minnesota s Biggest Obamacare Insurer Drops Out Over Costs The Daily Caller

Liberalism fails every-time it's tried.

 

[SmarterThanTheAverageBear]

Imagine that the company says most of the extra costs are due to the shitty website.

They've even found people who signed up for the plans who don't even live in MN.

 

[idb]

Interestingly enough, they had considerably lower premiums than any of the other insurers and they had no history of personal health insurance.
It looks like they took a gamble on securing a large customer base with low premiums and miscalculated.
That's the free-market I guess.
Company gambles, company fails.

 

[rdean]

Minnesota s Biggest Obamacare Insurer Drops Out Over Costs The Daily Caller

Liberalism fails every-time it's tried.

Wow. Two posts in and they've made you look like an idiot. That's gotta hurt.

 

[idb]

Before you ask...
Top selling insurer on MNsure won t be back this year Star Tribune

“That’s a huge blow to MNsure,” said Allan Baumgarten, an independent Twin Cities health care analyst.

Baumgarten said PreferredOne appeared to make a calculated gamble that its low premium prices would bring in enough business to enable it to cover an influx of new enrollees, even if they turned out to be sicker.

That strategy helped PreferredOne, the smallest of the five major carriers in the Twin Cities, to grab significant market share from its bigger competitors......................

Officials with the Golden Valley insurer declined to further explain why selling through the MNsure marketplace starting Nov. 15 no longer makes business sense to them.......................

PreferredOne, founded in 1984, has only recently moved into the individual market, with its bread and butter traditionally coming from large and small businesses.

 

[Rozman]

Libs are lovin them that OCare....
Ummmm Ummmm Ummmm
(That's the yummmy sound)

 

[Mr. H.]

Obama's America... where the needs of the few far outweigh the needs of the many.

 

[The Rabbi]

Its the gift that keeps on giving. We're going to shove Obamacare up Democrat asses every day until November.

Yeah, you create a program that makes incentives for older sicker people to qualify for health insurance, on the gov't dime, and suddenly you get more older sicker people taking health insurance. Wow, if only someone could have foreseen that!

 

[kiwiman127]

Interestingly enough, they had considerably lower premiums than any of the other insurers and they had no history of personal health insurance.
It looks like they took a gamble on securing a large customer base with low premiums and miscalculated.
That's the free-market I guess.
Company gambles, company fails.

That's exactly right. PreferredOne went for the 'Hail Mary" touchdown and over-threw the pass out of the end zone. Doing the same thing without being involved in MNCare probably would have yielded the same result.

"University of Minnesota health economist Roger Feldman said consumers could feel the brunt of higher prices with a competitor leaving the MNsure market. He suspects PreferredOne’s lowball bid backfired.

“These are always based on a wing and a prayer,” Feldman said. “You hope that you grab substantial increases in enrollment and that will exponentially decrease cost because of economies of scale … and then you hope it plays out right and you attract low-risk enrollees. To my knowledge, this has never worked.”
Top selling insurer on MNsure won t be back this year Star Tribune

 

[Mac1958]

That's the free-market I guess.

Well, the "free market" in health care has been completely distorted and mangled by bureaucracy. There may be no "free market" further from a free market than health care.

That said, I agree, if these guys just popped in to give it a shot, this is no surprise. Makes me wonder how much due diligence the state did on the company before it allowed them to participate.

Paid off pols, perhaps? Who knows.

.

 

[kiwiman127]

That's the free-market I guess.

Well, the "free market" in health care has been completely distorted and mangled by bureaucracy. There may be no "free market" further from a free market than health care.

That said, I agree, if these guys just popped in to give it a shot, this is no surprise. Makes me wonder how much due diligence the state did on the company before it allowed them to participate.

Paid off pols, perhaps? Who knows.

.

First of all, someone projected that PreferredOne was a new healthcare insurance company. That is not correct. PreferredOne has been in business for thirty years.
Secondly, Minnesota has probably the most regulated healthcare industry in the country. Thus, Minnesota's Number 1 standing as having the lowest healthcare costs in the country, which leads to low cost healthcare insurance.
How the state let them offer such low prices is good question. I would surmise that PreferredOne submitted their plans for review. PreferredOne may of presented an over (or under)-stated projected forecast with numbers. Or they failed in their analyses of how many high risks customers would slide through their cracks. Or, someone at the state bureaucratic level didn't do their job.
As a side note, I saw a press release stating that Minnesota would somehow help those who had signed up with PreferredOne. But nothing was specific about what they are going to do..
PreferredOne gambled and lost. This left several thousands of customers in a lurch about their healthcare insurance future. I contend that PreferredOne is responsible for this mess but I wonder out loud if MNSure also screwed up.