Minnesota Opens Medicaid, Individual Markets To For-Profit HMOs

Minnesota is implementing legislation that includes a provision that opens the state’s insurance market to allow for-profit in-state and out-of-state health insurers to operate health maintenance organizations (HMOs). It is the last state to allow for-profit health insurers to do so. The provision will allow for-profit insurers to offer Medicare Advantage HMO plans and individual insurance market HMOs, and to compete for Medicaid HMO contracts. The goal is to encourage competition among plans sold via MNSure, the state’s health insurance exchange.

Governor Mark Dayton signed Senate File 1 (SF1) on January 26 . . .