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Statement

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Statement

Medica Statement on 2017 Withdrawal from Minnesota Families & Children Medicaid Program

Dec. 01, 2016

MINNETONKA, Minn. — Medica's withdrawal from the Minnesota Families & Children Medicaid program is a symptom of problems with the Medicaid program, as evidenced by losses in the program for both providers and insurers nationwide.

Medica's losses in 2016, coupled with the losses we would have received if we accepted the state's final offer would put the organization's solvency at risk. While serving Medicaid enrollees is an important part of who Medica is, we cannot risk our ability to serve one million non-Medicaid members if the entire organization is at risk.

We are disappointed that Medica had to withdraw from the 2017 contract because it puts coverage of 300,000 Minnesota families and children in jeopardy. It has been a part of our business since its inception.

For that reason, Medica has in good faith been negotiating the reimbursement we receive from the Minnesota Department of Human Services. However, under proposed rates by the State, Medica's losses in Medicaid would reach unprecedented levels and put our ability to service all members at risk.

We had hoped to work with the State toward solutions that are agreeable to all parties. Medica had offered to administer this contract for the State at cost for the 2017 year. We hope DHS reconsiders and accepts our offer to continue working toward a solution that addresses the needs of Minnesota taxpayers, DHS, insurers and, most of all, the children and families covered through this program. Under the terms of Medica’s withdrawal notice, our contract with the State for the Minnesota Families & Children Medicaid program will end April 30, 2017.

Date: 3/26/2017 6:06:42 AM Version: 4.0.30319.42000 Machine Name: PWIM4-CMSWEB01