In MCHP’s overview of financial results for the Minnesota health insurance industry, the council reported payers saw $687 million in operating losses in 2016. The council’s analysis included yearly financial reports from state insurers and health maintenance organizations.
The report found 2016 premium revenue increased 4 percent year-over-year to roughly $25.9 billion for Minnesota payers. However, this was offset by expenses that increased 6 percent year-over-year to $26.6 billion.
More than half of insurers’ losses were attributed to state public programs, followed by sustained losses in the individual market, according to MCHP. In addition, Minnesota’s individual market expenses for 2016 were $275.3 million more than premiums received. However, federal funding reduced the loss to $222.7 million.
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