Bait and switch: Key MNsure company pulls out
The big news today in Minnesota is the withdrawal of PreferredOne from the state ACA exchange, MNsure. Nearly six in ten patients chose it this year, presumably because it had the lowest prices nationwide. But it won't be offered on the exchange next year -- so patients will either have to do without the tax credits that made it so affordable, or switch to an insurer with a higher premium.
PreferredOne's single year on the Obamacare exchange did allow it to effectively grab a sizable market share (it surged from 6% to 28%) from dominant BlueCross BlueShield. And now that they have that foothold, they apparently think it will be more profitable to sell outside the exchange.
I wonder if this is the case in other states. I've read that in New York, for example, some companies offered deliberately underpriced plans this first year to gain customers. Will their prices rise next year, or will they too take their winnings and pull out of the exchanges?