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.