"The risk adjustment program has been highly volatile. It hasn't worked as intended," CEO
In a federal lawsuit filed last year, the company argued that it has been punished for offering lower-cost products because the risk adjustment payments are based in part on how a company's premiums compare to statewide averages. It said its premiums were substantially lower than average not because its customers were healthier but because its business model focused on keeping costs low and because its members were more likely to purchase less-expensive plans.
Policelli said the company has had to spend about a third of the amount it collects in premiums on risk adjustment payments, and for 2018, was seeking to increase premiums by 30 percent. Further, as a cooperative, the company was not allowed to expand beyond the individual and small-group market.
"We're forced to be in the penalty box, basically," he said.
Minuteman started in
Minuteman is the second co-op to stop offering plans in
Nationally, competition in many markets has dwindled to one insurer, or in some cases, none. Insurers are retreating from some markets or charging a lot more to stay in others. And
"Today's announcement by
Policelli said the new company,
"There were some good ideas and some bad ideas in the ACA, and I think there are good ideas and bad ideas in the new Republican version being kicked around," he said. "I don't think anyone has a monopoly on genius."
Open enrollment is