Two big national health insurers are moving forward with plans to become more competitive in the state's insurance markets for employer groups and individuals who qualify for Medicare.
A new joint-venture company launched last year by Minneapolis-based Allina Health System and Aetna, the Connecticut-based health insurance giant, announced details Wednesday about the insurer's executive leadership team, which includes three people with experience at other local health plans.
Meanwhile, Minnetonka-based UnitedHealthcare said it now has contracts with Mayo Clinic, Fairview Health Services and other health care providers, so the insurer can sell employer coverage this fall that provides access to a broad network of doctors and hospitals.
UnitedHealthcare has "approximately 200 people who are just dedicated to the Minnesota health plan," said Philip Kaufman, chief executive of UnitedHealthcare of Minnesota. "It's a mix. Many of them are new hires, but there certainly [are] people who have come from other parts of United."
Officials with both Allina-Aetna and UnitedHealthcare, which is the nation's largest health insurer, first announced in 2017 their plans to expand in Minnesota starting this year.
For years, Minnesota's health insurance market has been dominated by local nonprofits that could offer a wider range of products than for-profit companies. Until 2017, state law only allowed nonprofit HMOs in Minnesota and also reserved for those insurers state contracts to managed care in public programs like Medicaid.
Minnesota dropped the ban on for-profit HMOs last year, but the expansion plans at Allina-Aetna and UnitedHealthcare apparently have less to do with the HMO change than a coming shift in the Medicare market. Next year, more than 300,000 Minnesotans will change Medicare health plans when a federal law effectively eliminates "Medicare Cost" health plans in the Twin Cities and across much of the state.
The Medicare-coverage shift creates an opportunity for new players, and both UnitedHealthcare and Allina-Aetna have said they want to compete for Medicare business. Their moves depend on regulatory approval, however, so details won't be available until the fall.