After offering some of the lowest premiums in the country in 2014, Golden Valley, Minn.—based insurer PreferredOne will be increasing premiums substantially on 2015 individual market plans, according to a StarTribune report.
Due to high claims costs, individuals who renew their coverage with PreferredOne for next year will likely see premiums jump 40 percent to 60 percent, depending on their age, geography and smoking status.
PreferredOne — one of the top sellers on MNsure last year — announced in September that it would not be selling policies on Minnesota's exchange again for 2015 since it questioned the sustainability of the exchange business. Because PreferredOne is being sold outside the exchange, there are no federal tax credits available to discount the premium costs.
Customers of the health insurer will receive letters around the end of October explaining exactly what changes to expect should they choose to renew their coverage, according to the report.