My Business Model Sucks — YOU Take It

Minnesota has one of the oldest High Risk Pools, Minnesota Comprehensive Health Insurance, in the country.  All told, there are 35 of them and the Gopher State has been at it since 1976.  It’s mission, a noble one.

Since becoming operational in 1977, MCHA has served as an insurance safety net for Minnesotans who have been turned down for individual health insurance due to pre-existing conditions.

Sounds great.  And to a whole bunch of people it is.  With pre-existing conditions they are able to find health insurance where normally they might not be able to.  Only problem?

In 2008, MCHA spent $136.5 million more paying for medical care and administrative costs than it collected in premiums and other revenue.  In 2009, those losses are projected at $150 million.

That’s a whole lotta money.  Now, without going into the Oughts and Ought Nots of the thing, the point remains; that’s a lot of money.  And the main strategy of the MCHA to get to the point where they don’t lose that kinda money year over year?  Obama’s Health Insurance Reform.  Yup.  The only way for the MCHA to quit losing money is to go out of business.

And the only way for the United States to AVOID losing money is to STAY out of business.

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