Minnesota Health Market Review 2025: Hmos Suffer $1 Billion Revenue Loss As Enrollment Drops

(MENAFN- GlobeNewsWire - Nasdaq) HMO profitability plunged in 2024, with enrollee numbers dropping by 168,000. Medicaid managed care plans saw significant losses, with premium revenues declining by over $1 billion. However, Medicare Advantage plans grew by 8.7%. Part One of the 2025 Minnesota Health Market Review details these shifts, with Part Two focusing on hospital systems.

Dublin, June 10, 2025 (GLOBE NEWSWIRE) -- The "Minnesota Health Market Review 2025 (Part 1)" report has been added to ResearchAndMarkets.com's offering.

HMO profitability plunged in 2024, as HMOs and County-Based Purchasing plans reported lower revenues, higher medical expenses and large losses on operations. The number of enrollees in Medicaid managed care plans dropped by about 207,000 in 2023 and 2024, although it is still higher than before the COVID-19 pandemic.

The analyst reports on these and other findings in Part One of Minnesota Health Market Review 2025. This is the 36th edition of the report, which was first published in 1990.

The new report finds that:

• Total enrollment in HMOs and County-Based Purchasing (CBP) plans dropped by 168,000 or 9.7% in 2024. While membership in Medicare Advantage plans grew by 8.7%, enrollment in Medicaid and other state programs decreased by 15%, as the state completed re-evaluating the eligibility of Medicaid recipients.
• As enrollment dropped, premium revenues for HMOs dropped by more than $1 billion, or 6.5%. However, their medical costs increased, and they had combined underwriting losses of $1.067 billion. UCare had the largest underwriting losses at $606.5 million, followed by HealthPartners ($170.9 million) and Medica Health Plans ($154.3 million). Hennepin Health had underwriting losses of $56.2 million.
• Most of the losses were in two key lines of business: Medicaid and other public programs and Medicare Advantage. HMOs and county plans lost $640.4 million on Medicaid plans in 2024 after reporting underwriting profits of $367.8 million in 2023 and $726.5 million in 2022, their best results ever. Even with the large losses in 2024, Medicaid plans have posted underwriting income of $939.5 million in the last 10 years. That includes the results for Minnesota Senior Health Options, a managed care program for beneficiaries of both Medicare and Medicaid, where the health plans have reported combined underwriting income of $720.3 million in the last nine years.
• Enrollment in Medicare Advantage plans has grown steadily since 2016, but they have not been profitable in Minnesota since 2022. In 2024, UCare lost $266.7 million on its Medicare Advantage plans, including $102.3 million in reserves set aside in anticipation of future revenue shortfalls. It already spent $47 million from that reserve in the first quarter of 2025 but still lost $25.5 million. Other health plans reported improved results in the first three months of 2025.
• Data from 2023 show that 96% of Minnesotans have health insurance, but that is likely to drop sharply if the budget bill passed by the U.S. House of Representatives is enacted. Cuts to Medicaid are projected to result in about 253,000 Minnesotans losing Medicaid benefits. Changes to subsidies sold on the MNsure exchange, where individual enrollment has grown to 167,000, will likely result in thousands losing coverage.

Key Topics Covered:

• Introduction
• Market Structure
• Health Plan Companies
• Network Arrangements and Provider Systems
• Trend Analysis
• Health Plan Enrollment
• Individual Markets and MNsure
• State Health Care Programs
• Medicare Health Plans
• Health Plan Profitability
• Financial Results by Line of Business
• Health Plan Capital
• A Look Ahead

For more information about this report visit

About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

CONTACT: CONTACT: Laura Wood,Senior Press Manager ... For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900

MENAFN10062025004107003653ID1109656775