Plans provide $16.3 billion in
medical care in second year of health emergency
ST.
PAUL, Minn., April 1,
2022 /PRNewswire/ -- Throughout the second year of
the COVID-19 pandemic, Minnesota's
nonprofit health plans continued to put the health and financial
stability of their enrollees first. COVID-19 related costs for the
fully insured and government program markets exceeded $649 million in 2021, including $237 million in testing and vaccination costs,
and $66 million in voluntary
cost-sharing waivers, the Minnesota Council of Health Plans
announced today.
A return to more normal levels of patient care last year, which
had been deferred amid the pandemic, also caused medical expenses
in these markets to rise 15.77% over 2020 to $16.3 billion. Health plans reported a
collective operating margin of 1.35% in 2021.
As mission-based, nonprofit organizations, health plans use this
operating margin for the benefit of their enrollees, especially as
the national health emergency continues.
"It was another challenging year for Minnesotans due to
COVID-19, but health plans continued to step up to meet their
needs. This included free COVID testing and vaccinations, as well
as health plans continuing voluntary cost-sharing waivers for
inpatient treatment," said Lucas
Nesse, CEO of the Minnesota Council of Health Plans. "Health
plans are continuously adapting to support the health and safety of
Minnesotans by providing them broad access to high-quality,
equitable care."
Almost $2 billion spent on
COVID-related expenses since start of pandemic
Along with the 2.6 million Minnesotans enrolled in fully insured
and government program coverage, Council members also support
large, self-insured employers that fund insurance for 1.8 million
employees. With all markets combined, more than $1.2 billion was spent in 2021 on COVID-19
related costs, including $490 million in testing and
vaccination costs and $83 million in voluntary cost-sharing
waivers for inpatient treatment. Including all markets, total
costs related to COVID-19 have now exceeded $1.95 billion since the start of the pandemic*
through 2021.
Nonprofit health plans also continued their strong tradition of
community giving and outreach by launching several initiatives to
bolster the number of Minnesotans receiving the COVID vaccine. This
included COVID vaccination clinics in underserved communities to
ensure that vulnerable populations had equitable access to
vaccines.
Pandemic drives shift to government programs, individual
market
Total plan enrollment for the fully insured and government
program markets increased 1.6% to 2.6 million. Enrollment in
government programs increased significantly for the second year in
a row, rising 10.87% to 1.1 million, while commercial enrollment
decreased 9.26% to 834,384. Minnesota's reinsurance program has brought
much-needed stability to the individual market with enrollment
increasing 0.7% over the prior year. A recent analysis by the
Centers for Medicare and Medicaid Services concluded that 88,958
Minnesotans had coverage in 2020 that otherwise would not have had
coverage absent the reinsurance program. Health plans reported an
operating loss of 8.27% in the 2021 individual market, after
reporting a 0.66% operating loss in 2020.
"Minnesota's reinsurance
program is a proven stability and affordability tool that warrants
more permanent consideration," Nesse said.
Established in 1985, the Minnesota Council of Health Plans is an
association of licensed nonprofit health plans that includes: Blue
Cross and Blue Shield of Minnesota, HealthPartners, Medica, Sanford
Health Plan and UCare.
* COVID expenditures for 2020, which only included the fully
insured market when reported, were incorrect due to an accounting
error and should have been $293
million.
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SOURCE Minnesota Council of Health Plans