Minnesota’s Biggest (And Cheapest) Obamacare Insurer Drops Out Over Overwhelming Costs

◼ The largest insurer with the lowest premium rates on Minnesota’s Obamacare exchange is dropping out because the government health-exchange is unsustainable, the company announced Tuesday. - Daily Caller

PreferredOne Health Insurance told MNsure, the state-run exchange, Tuesday morning that it would not continue to offer its popular insurance plans on the marketplace in 2015. It’s “purely a business decision,” spokesman Steve Peterson told KSTP-TV. The company is losing money on administrative costs for plans offered on the bureaucratic and glitchy government exchange.

Part of the problem, according to PreferredOne, is that MNsure hasn’t even been able to verify its customers’ information. PreferredOne said that some of its customers have turned out not to even live in Minnesota....

This leaves Minnesota Obamacare customers in a tricky situation. PreferredOne had significantly lower rates than any other insurer on the exchange. When these plans disappear, customers will see a significant rate hike if they choose to continue on the Obamacare exchange, independent of yearly rate hikes.

Minnesota is scheduled to announce premium rates for 2015 Obamacare plans in October and signs point to looming price hikes that will hit Minnesotans doubly hard.