Bloomington-based HealthPartners said it will start selling Medicare health plans next year in North Dakota and South Dakota in conjunction with Sanford Health, a large operator of hospitals and clinics in the region.
Currently, a relatively small share of those with Medicare coverage in the Dakotas receive their benefits through private health plans, which is an increasingly popular option across the country. So, leaders of the two health care organizations said they plan on growing that portion of the Medicare market.
The westward move represents the second Medicare expansion in as many years for HealthPartners, although the health plan has seen only modest growth thus far from policies it started selling this year in parts of Illinois and Iowa.
"When you move into a new marketplace, sometimes it takes a while for seniors to become familiar with what your offering is," said Andrea Walsh, the chief executive at HealthPartners. "So, while it gets a slow start, we believe, ultimately, seniors in North and South Dakota are going to find ... it'll be an attractive product."
Medicare beneficiaries can get coverage through the traditional government program, which often is paired with a "Medigap" supplemental insurance policy, or through health plans where private insurers manage care.
In 2017, one in three Medicare beneficiaries, or about 19 million people, are enrolled in a Medicare health plan, according to the California-based Kaiser Family Foundation. The rate is higher in Minnesota (56 percent) but lower in North Dakota (17 percent) and South Dakota (20 percent).
Among Medicare health plans in the Dakotas, Minnetonka-based Medica is currently the dominant carrier with more than three-quarters of the market in both states, according to researchers at the Kaiser foundation.
Currently, Kentucky-based Humana is the second largest Medicare health plan in North and South Dakota; the company said it will offer new plans and benefits in those states for 2018.
