Minnesota’s Biggest (And Cheapest) Obamacare Insurer Drops Out Over Overwhelming Costs

Photo Credit: Reuters The largest insurer with the lowest premium rates on Minnesota’s Obamacare exchange is dropping out because the government health-exchange is unsustainable, the company announced Tuesday.

PreferredOne Health Insurance told MNsure, the state-run exchange, Tuesday morning that it would not continue to offer its popular insurance plans on the marketplace in 2015. It’s “purely a business decision,” spokesman Steve Peterson told KSTP-TV. The company is losing money on administrative costs for plans offered on the bureaucratic and glitchy government exchange.

Part of the problem, according to PreferredOne, is that MNsure hasn’t even been able to verify its customers’ information. PreferredOne said that some of its customers have turned out not to even live in Minnesota.

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