Medica said in a statement to Star Tribune the job cuts were effective immediately, with more to come in the future. The eliminated positions represent roughly 5 percent of the payer’s workforce.
In November, Medica told state officials payment rates for Medicaid and MinnesotaCare were unsustainable, citing nearly $150 million in losses on the health plans in 2016. Medica projected it would lose another $100 million on the business this year had it continued to manage care for the programs.
The insurer’s contract with the state’s Medicaid and MinnesotaCare programs ends April 30. Medica manages care for about 300,000 individuals under the programs. Those individuals will need to select another plan for coverage beginning May. 1, according to the report.
The Minnesota Department of Human Services said it hopes to notify affected enrollees no later than March 1, according to the report.
More articles on payer issues:
GOP Sen. Bill Cassidy proposes plan to let states choose to keep ACA
CMS finalizes rule on Medicaid managed care pass-through payments: 5 things to know
NC, federal officials ask judge to lift order preventing governor from expanding Medicaid
