Facing a $200 million loss in 2024, Bloomington, Minn.-based HealthPartners is scaling back its health plan operations, the Minnesota Star-Tribune reported April 30.
As of April 1, HealthPartners has exited Minnesota’s Special Needs Basic Care Medicaid program, per the Star-Tribune. Around 6,200 members will need to switch to a new managed care plan as a result.
HealthPartners also paused enrollment in other Medicaid plans.
At the system’s annual meeting April 29, Penny Cermak, CFO of HealthPartners, said state payment rates for Medicaid are unsustainably low, according to the Star-Tribune.
HealthPartners, which operates more than 90 clinics and hospitals and offers Medicare, Medicaid and commercial plans in five states, reported a $200 million operating loss in 2024.
Several other health plans posted losses in 2024, citing climbing medical costs and demand for expensive drugs.
Becker’s has reached out to HealthPartners for comment and will update this article if more information becomes available.
Read the full Star-Tribune report here.
