The nonprofit health plan said it ended 2016 with a net operating loss of $322.4 million on revenue of $12.1 billion. The operating loss primarily reflects $142 million in individual segment losses, as well as larger-than-expected cost pressures and use in its Medicaid segment.
While BCBS of Minnesota’s individual market losses decreased significantly from the $265 million it shouldered in 2015, the insurer said its individual plan enrollment declined by about the same percentage. Over the past three years, BCBS of Minnesota has lost about $538 million on individual plans.
“A shrinking and unbalanced risk pool, combined with ongoing shifts and instability within state and federal rules, contributed to ongoing volatility within the individual market in 2016,” said Michael Guyette, president and CEO of BCBS of Minnesota. “The high cost of healthcare has translated to a significant jump in premiums, and the size of the individual market in Minnesota has decreased by one-third since 2014 — a trend we clearly need to reverse.”
In addition, the insurer’s health maintenance organization subsidiary, Blue Plus, reported an operating loss. The plan loss $174.7 million on revenues of $1.8 billion for 2016, primarily driven by losses in its state Medicaid program business.
Total BCBS of Minnesota member enrollment grew by about 5.5 percent, reaching 2.9 million last year.
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