Red Lake Nation News - Babaamaajimowinan (Telling of news in different places)

Thousands on Medicaid, MinnesotaCare to switch plans as Medica drops contract


ST. PAUL -- More than 300,000 Minnesotans on public health programs could have to switch to a new plan next year after insurer Medica couldn’t agree on a new contract with the state of Minnesota.

The move is fallout from last year, when Minnesota for the first time issued contracts to manage Medicaid and MinnesotaCare plans based on competitive bidding. Medica was among the carriers submitting winning bids — bids far below what the state paid in previous years. As a result of the low bids, officials forecast savings to taxpayers of about $450 million in the first year alone.

But Medica now says its winning bids may have been far too low.


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