Red ink at Minnesota Blue Cross spells more Medicare Advantage troubles ahead - strib
Surging medical costs drove big financial losses last year at Blue Cross and Blue Shield of Minnesota and prompted the Eagan-based health insurer to set aside $150 million for ongoing cost challenges, particularly in the Medicare program.
The results, which were released Wednesday, April 1, suggest another turbulent open enrollment season could be coming this fall for seniors.
Health insurers across the country were already raising alarms over the prospect of diminished coverage next year, including benefit reductions and higher premiums. That’s because federal officials in January proposed not raising 2027 payment rates to private Medicare Advantage health plans.
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Blue Cross attributed the loss to “unfavorable performance” in federal and state government health programs. Contributing factors included increasing costs from hospital inpatient services and more use of costly specialty medications, such as GLP-1s for diabetes and weight loss.
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At Minnesota-based UnitedHealthcare, the nation’s largest Medicare Advantage health insurer, executives warned of the potential for reduced choice, reduced access and affordability challenges for seniors in 2027.
Final Medicare Advantage rates could be released as early as this week.
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