have cold feet and are ready to bail.
With less than 4 months of credible claim data to work with the "Blue Ox" of Minnesota is pulling the plug.
PreferredOne, the insurer that sold nearly 60 percent of all private health plans on Minnesota's Obamacare exchange, on Tuesday said it would leave that marketplace. PreferredOne's plans were the lowest-cost options on that exchange, known as MNSure.
PreferredOne cited the costs of doing business on MNSure as the reason for its surprising decision, saying that selling plans is "not administratively and financially sustainable going forward,"
- abandon almost 100 years of risk model pricing
- are told what is to be covered
- are told who is to be covered (anyone who can fog a mirror)
- have pricing margins dictated by DC
- if rates are deemed too high (arbitrarily, no guidelines of course) are required to back down
- are prevented from asking health questions other than tobacco use
- must apply community, unisex rating models with strict 3:1 age banding
PreferredOne's relatively low-priced plans on MNSure for the 2014 enrollment season were a big reason why 59 percent of the 47,902 people who bought health coverage on the exchange by mid-April selected the insurer.
Those customers now face the prospects of higher rates if they want to remain in those same plans next year, as is their option, while existing customers of other insurers and new customers in the market will have fewer price options from which to choose.