HMOs Give Millions Back To Minnesota Taxpayers

Created: 04/03/2012 6:29 PM KSTP.com By: Jay Kolls

Insurance plans that run the state's public health programs are giving back 73-million dollars. The four HMOs that run Minnesota's public health plans are Blue Cross/Blue Shield of Minnesota, Medica, U-Care and HealthPartners. Their operating income was up 21-percent in 2011, but the state negotiated a one-percent cap on their profits and that's why the money is being returned. Last year, U-Care gave back 30-million dollars and Governor Mark Dayton asked the other three HMOs to do the same. When they kept all of their profits, the Governor negotiated a one-percent cap for this year. All four HMOs and the Minnesota Department of Human Services remain under federal investigation. The Feds want to know if the state and the HMOs illegally inflated Medicaid costs to get more matching dollars from the federal government. There is also a Congressional inquiry into Minnesota's Medicaid system as well.