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Report: PreferredOne pulls out of MNsure

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ST. PAUL, Minn. (AP) -- The insurance company with the lowest rates and most customers on Minnesota's health care exchange is pulling out.

Golden Valley-based PreferredOne just notified MNsure and the Minnesota Department of Commerce of its decision, which comes as a major blow to the exchange as the next open enrollment period approaches.

PreferredOne spokesman Steve Peterson says continuing to offer insurance through MNsure is ''not administratively and financially sustainable.''

A company statement says MNsure policies make up only a small percentage of PreferredOne's entire enrollment, but take up a significant amount of resources to support.

PreferredOne had 59 percent of the individual market for MNsure enrollees as of Aug. 6.

Officials with PreferredOne, MNsure and the Commerce Department did not immediately return calls from The Associated Press.


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