Health insurers return to profitability in Minnesota
Margins in the individual market were so high that one health insurer could be providing
For the past several years, the individual market has been a source of red ink for insurers across the country under the federal Affordable Care Act (ACA). The financial losses in
"Medical costs for people who buy insurance on their own went down per-person," said
Overall, seven nonprofit health insurers posted combined net income of
Overall results include revenue and income from selling coverage for employer groups, Medicare beneficiaries, people in state public programs and those with individual coverage. The numbers were a turnaround from a collective loss of nearly
The individual market is an option for people primarily under age 65 who are self-employed or don't get coverage from their employer. The market has undergone sweeping change since 2014 with the ACA, which stopped health insurers from denying coverage to individuals based on pre-existing conditions.
For 2017, insurers in
Since ACA changes kicked in, many insurers have struggled to charge enough in premiums to cover the cost of medical bills for individuals. As health plans have tried to catch up with premium hikes, many have speculated about a "death spiral" scenario, in which healthy individuals leave the market due to high premiums leaving only people with costly health problems.
Part of that scenario seemed to happen in
"I think what these numbers suggest is: The market shrank, but it's overall healthier than anyone expected," said
The individual market featured significant turmoil in 2017 after
On Tuesday,
Rebate reporting is not due to the federal government until
"We do expect Blue Plus to issue a partial premium rebate," the company said in a statement to the
In terms of profits from operations -- a measure that doesn't include investment income -- 2016 was the worst year in a decade for the health plans, with insurers collectively posting an operating loss of
The 0.8 percent operating margin exceeded the 10-year average of 0.43 percent, according to the
The new report covers the
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