Dannette Coleman, Medica's senior vice president for individual and family business, said in an interview that the Mayo health plan will have bronze-, silver- and gold-tier options on the exchange. Medica also will offer a catastrophic option, a level in which people pay very low monthly premiums but face much higher out-of-pocket costs if they need care.
Roughly half of all individual exchange plans nationwide during last year's open-enrollment period offered limited groups of providers. Research has shown many consumers have responded positively to narrow networks. Coleman said Medica offers several other HMO-style plans in the individual and group market, as more people are willing to choose a more-restrictive provider network as long as upfront costs are lower.
“We've found members really like having that as an option,” Coleman said.
Even with a high-profile provider like Mayo, Medica's new plan appears to have monthly premiums that are in line with state averages. A Medica spokesman released 2015 rates for the Mayo plan, which showed catastrophic coverage will cost the average 40-year-old about $162 per month. Bronze, silver and gold plans vary depending on cost-sharing options. But for a 40-year-old who buys the plan with copays, the bronze, silver and gold monthly premiums will cost $257, $292 and $347, respectively. Those figures are just slightly higher than the average premiums of other health plans on Minnesota's exchange, called MNsure, for 2015.
MNsure has seen some setbacks going into the 2015 enrollment period. The most popular plan on the exchange last year, PreferredOne, said in September that it was dropping out due to financial and administrative burdens.
Follow Bob Herman on Twitter: @MHbherman