Fairview's exit from Minn. exchange expected to shake up market

In a surprising move that will shake up Minnesota's state-run Obamacare exchange, PreferredOne, a large provider-run health plan affiliated with Fairview Health Services, will drop out of the MNsure exchange for 2015, company and state officials announced last week.

The Minnesota-based carrier—owned by Fairview Health Services, Minneapolis; North Memorial Health Care, Robbinsdale; and Golden Valley-based PreferredOne Physician Associates—offered some of the lowest premiums on the state-run exchange for 2014 and captured 53% of individual-market enrollment. The plan significantly beat out legacy insurers such as Blue Cross and Blue Shield of Minnesota.

In announcing the exit from the MNsure marketplace for 2015, MNsure CEO Scott Leitz and PreferredOne CEO Marcus Merz in a joint statement called the exchange an “evolving partnership.” They also acknowledged that PreferredOne's decision will affect 2015 rates and enrollment. The executives said both organizations would work to minimize the move's impact on enrollees.—James Nord