Narrow network including Mayo to debut on Minn. exchange

Health insurer Medica is rolling out a new narrow-network plan in Minnesota—an increasingly common option—with the Mayo Clinic as a central enticement to draw in potential enrollees.

The plan, which will be offered off and on the state exchange established by the Patient Protection and Affordable Care Act, will include only specific providers in southern Minnesota. But the insurer said monthly premiums and copayments will be affordable for those who choose the plan.

In addition to Rochester, Minn.-based Mayo and its affiliated hospitals and doctors throughout the area, the other provider groups in the narrow network are Northfield (Minn.) Hospital & Clinics and Winona (Minn.) Health. Medica is the sole owner of the plan.

Dannette Coleman, Medica's senior vice president for individual and family business, said the Mayo health plan will have bronze-, silver- and gold-tier options on the exchange. Medica also will offer a catastrophic option, a coverage level for 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.

Even with a high-profile provider like Mayo, Medica's new plan has monthly premiums that are only slightly above averages of other health plans on Minnesota's exchange.

Follow Bob Herman on Twitter: @MHbherman