Minnetonka, Minn.-based Medica and Eagan-based Blue Cross and Blue Shield of Minnesota saw a combined loss of about $195 million on their health maintenance organization divisions in the first three quarters of this year, a Star Tribune analysis found.
Geoff Bartsh, vice president and general manager for state public programs at Medica, told Star Tribune, "The payments to the plans from the state are nowhere near adequate to cover the costs of the program." In addition, BCBS of Minnesota said while it will raise its rates next year, "we do not expect it will be enough to cover the high trends and increased population risk."
The Minnesota Department of Human Services, which administers the HMOs, said the 2016 rates were determined through competitive bids.