Minneapolis-based Fairview Health Services has obtained options to become the majority owner of Golden Valley, Minn.-based health insurer PreferredOne, according to a Star Tribune report.
The options were obtained by Fairview as part of a loan it provided to PreferredOne in October 2014, according to the report. However, Fairview did not divulge any specifics about if or when it would exercise the option.
PreferredOne received national attention for offering health plans with some of the lowest premiums in the country in 2014, according to the report. However, the insurer decided not to continue offering coverage through Minnesota's Patient Protection and Affordable Care Act exchange, MNsure, in 2015 and increased premiums substantially on 2015 individual market plans. Both decisions, the report notes, came after PreferredOne sustained losses in the market for individuals who purchase non-group coverage.
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