ST. PAUL – The largest, most affordable provider through Minnesota’s state health insurance program has announced it will cease offering MNsure plans, the latest in a string of concerning developments for the fledgling program.
PreferredOne, which provides insurance for nearly 60 percent of MNsure enrollees, said Tuesday it will withdraw from the exchange in 2015, leaving only four carriers remaining in the MNsure exchange.
“This is highly concerning and is likely to result in even less choice for consumers,” said Rep. Jeff Howe, R-Rockville. “Many people who least can afford it will have to decide between staying with their current provider, paying a much higher premium, or both. Some may not have any choice as this is just the first company to pull the plug. We can only hope that others won’t follow, otherwise we will be faced with a reduction in marketplace competition and higher costs.”
Excessive customer wait times, data breaches, a broken website and concern over sustainability have plagued MNsure since its inception less than one year ago. The program director was on vacation as many Minnesotans learned of these problems, leading to her abrupt departure. To the surprise to many Minnesotans, 14 MNsure executives each received bonuses in excess of $26,000.
“MNsure proponents created an agency with no legislative oversight and now we are seeing exactly why that was such a bad idea,” Howe said. “You can’t turn a blind eye to all these problems, yet that is what they have done. MNsure needs to be fixed and the current administration has failed to provide leadership by either developing solutions or listening to ones that have been offered. They put Minnesotans in a position where we are crossing our fingers as we await the new premiums that are to be released in October.”
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