The new report finds that:
Although enrollment in Medicaid health plans dropped by 3% in 2019, they added 69,000 new enrollees in the first half of 2020. As a result of the COVID-19 pandemic and the economic downturn, an estimated 56,000 adults in Minnesota lost their employer-sponsored coverage and are uninsured. About 150,000 others enrolled in Medicaid, including about 69,000 who have joined Medicaid HMO plans.
In 2019, enrollment in Minnesota HMOs grew by about 1% as Medicare plans added 48,000 new members but commercial and Medicaid plans lost members. Enrollment in HMOs grew to 1.366 million, with 67.3% of them in Medicaid and MinnesotaCare. Medica and UCare added the newest enrollees. Blue Cross Blue Shield lost almost 58,000 enrollees. Humana Insurance Company increased its Minnesota premiums by about $614 million to $1.084 billion, adding about 77,000 enrollees to its Medicare Advantage products.
After posting strong profits in 2017 and 2018, Minnesota HMOs reported losses of $70.2 million in 2019 or 0.7% of operating revenues. While Medica’s HMO had a net income of $56.9 million, HealthPartners lost $86.1 million and UCare lost $31 million. HealthPartners did make money on its individual plans, benefitting from Minnesota’s reinsurance program. Net income for Blue Plus dropped from $141 million in 2018 to $7.1 million in 2019. Much of the was due to a drop in the profitability of its individual plans. Blue Plus lost $11.7 million on individual plans in 2019 after reporting an underwriting income of $54.6 million in 2018.
Of the other insurance companies, Medica Insurance Company, which now sells individual plans in nine states, reported a net income of $365.1 million in 2019. That is across all of its states, although Minnesota accounts for about 46% of its revenues. Its individual and group plans in Minnesota were very profitable, earning combined underwriting income of about $86 million. Blue Cross Blue Shield had losses of $77 million in 2019 and reported losses in three of the last four years. In its first full year, Allina Health Aetna Insurance lost $18.5 million, about half from its operations and a half from amortizing an intangible asset, namely discounts on care provided by Allina hospitals and physicians. Allina-Aetna gained about 8,900 enrollees in 2019 and added about 4,000 Medicare Advantage members at the beginning of 2020.
Even though many health plans lost money in the first quarter of 2020, sometimes from investment losses, they should finish the year with good profits. Claims have been low so far because non-emergency surgeries were suspended, and many families were reluctant to go to clinics for routine care or to hospitals for acute care.
2. Market Structure
- Health Plan Companies
- Network Arrangements and Provider Systems
3. Trend Review
- Health Plan Enrollment
- Individual Markets and MNsure
- State Healthcare Programs
- Medicare Health Plans
- Health Plan Net Income
- Financial Results by Line of Business
- Administrative Expenses
- Health Plan Capital
4. A Look Ahead