Risk Adjustment Creates Insurance Shortfall


Three Minnesota health plans are facing a multi-million dollar funding shortfall, after the federal government decided to freeze “risk adjustment” payments.

The Federal Centers for Medicare and Medicaid Services said Saturday that a court decision earlier this year means it must put the financial transfers on hold.

The transfers shift money from some insurers to carriers that cover people with more expensive health conditions.

The plans effected; $44 million to Blue Cross/Blue Shield .. $17 million to UCare and just over $10 million to Medica – all very familiar names to policy holders in the listening area ..


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