Nonprofit insurers repay $73M to state, feds under earnings cap

Minnesota's nonprofit health plans will pay a total of $73 million to the state and federal governments based on an agreement to institute a 1 percent cap on profits they earned through Medicaid.

After Blue Cross Blue Shield of Minnesota, HealthPartners, Medica and UCare reported record profits in 2010, Gov. Mark Dayton negotiated a deal with the nonprofit insurers to limit future earnings, according to the Minneapolis St. Paul Business Journal.

Here's how the $73 million breaks down among the four insurers: HealthPartners $31 million, Medica $25 million, Blue Cross Blue Shield of Minnesota $9 million and UCare $8 million. The payments are based on each insurer's 2011 financial reports, the Minneapolis Star-Tribune reported.

The nonprofit insurers collectively increased their operating earnings by 21 percent last year, earning $355.7 million on premium revenue of $19.8 billion. Plus, their financial reserves rose almost 12 percent to $2.8 billion last year. Without the 1 percent cap, the four health plans would have earned almost $431 million, reported the Pioneer Press.

To learn more:
- read the Minneapolis Star-Tribune article
- see the Minneapolis St. Paul Business Journal article
- check out the Pioneer Press article

Suggested Articles

New York has required insurers to defer premium payments for individual and small group plans if the customers are under financial hardship.

The Pew Charitable Trusts is calling for federal policymakers to move forward with data-sharing regulations in the midst of the COVID-19 outbreak.

Humana is launching new initiatives aimed at easing the administrative burden on providers as they treat patients with COVID-19.