HMO profits from Minnesota state programs jump to $675.8M with enrollment surge

HMO profits from state government programs more than doubled last year to about $675.8 million, a Star Tribune analysis shows, partly because enrollees required fewer health care services than expected.

The jump in operating income continued a pandemic trend of growing HMO profitability across the country due to historic enrollment expansion. Membership surged after states halted Medicaid eligibility re-determinations during the COVID-19 public health emergency.

Last year's margins in Minnesota were unusually high, however, and driven by a 10% increase in per-person revenue to the HMOs while per-person expenses grew just 4.5%, according to the Star Tribune review of regulatory filings released in April.

https://www.startribune.com/hmo-profits-from-minnesota-state-programs-jump-to-675-8m-with-enrollment-surge/600271525/