Fallon Health to exit commercial insurance business, stick to government

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Massachusetts insurer Fallon Health is backing away from the commercial insurance business.

The nonprofit health insurer will instead focus solely on government plans, according to a March 31 news release. The change will take place April 1.

Fallon will narrow its strategy to offerings like Medicare Advantage and MassHealth Medicaid services, a change that has been years in the making. From 2017 to 2020, Fallon's government membership grew from 31 percent to 57 percent of its total membership. Most of Fallon's revenue — 84 percent — comes from government programs.

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