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Dayton, health plans agree to profit limit

ST. PAUL -- The Dayton administration and Minnesota's major health-care plans agreed today that profits from state managed-care contracts will be capped at 1 percent of revenue this year.

"I applaud UCare, HealthPartners, Medica, and BlueCross BlueShield for their civic responsibility in recognizing the state's dire financial condition, and helping to reduce our rising health care costs," Gov. Mark Dayton said. "I thank them and Human Services Commissioner Lucinda Jesson for their outstanding leadership in working together to reach this agreement."

Starting next year, Dayton has ordered health plans to be subject to competitive bidding, which he said should keep down prices.

This year, health plans will give the state any profits above 1 percent of revenue.

On Friday, the four plans announced their average profit for state-funded contracts was 3.8 percent last year.

Don Davis
Don Davis has been the Forum Communications Minnesota Capitol Bureau chief since 2001, covering state government and politics for two dozen newspapers in the state. Don also blogs at Capital Chatter on Areavoices.
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