Minnetonka, Minn.-based Medica eliminated approximately 100 full-time jobs following the insurer's decision to drop a contract to manage Minnesota's public health insurance programs, reports Star Tribune.
Medica said in a statement to Star Tribune the job cuts were effective immediately, with more to come in the future. The eliminated positions represent roughly 5 percent of the payer's workforce.
In November, Medica told state officials payment rates for Medicaid and MinnesotaCare were unsustainable, citing nearly $150 million in losses on the health plans in 2016. Medica projected it would lose another $100 million on the business this year had it continued to manage care for the programs.
The insurer's contract with the state's Medicaid and MinnesotaCare programs ends April 30. Medica manages care for about 300,000 individuals under the programs. Those individuals will need to select another plan for coverage beginning May. 1, according to the report.
The Minnesota Department of Human Services said it hopes to notify affected enrollees no later than March 1, according to the report.