PreferredOne, a Minnesota-based health insurance company that bowed out of the state's exchange, has named David Crosby its new CEO, effective Aug. 10.
Crosby, 53, previously was an executive VP for commercial health plans at MVP Health Care, an insurer based in New York. Paul Geiwitz has been serving as PreferredOne's interim CEO since Marcus Merz retired at the end of last year.
Crosby will take over a provider-backed insurer that has had a tumultuous year-and-a-half stretch. PreferredOne—half-owned by Fairview Health Services and part-owned by North Memorial Health Care and PreferredOne Physician Associates—posted a net loss of $21 million in 2014.
PreferredOne was the most popular plan on Minnesota's state-run insurance exchange, MNsure, in 2014. But underpriced premiums and higher-than-expected medical claims from policyholders piled up into large losses and forced PreferredOne to abandon the exchange for this year. Many Minnesotans had to switch health plans to keep their premium subsidies under the Affordable Care Act.
The company will not offer individual health plans on MNsure for 2016, a PreferredOne spokesman said.
PreferredOne has 234,000 medical members and also performs administrative insurance tasks for self-insured employers. The company's revenue in 2014 totaled $430.2 million.