Mark Dayton’s explanation for why PreferredOne is leaving MNsure is stunning:

Gov. Mark Dayton says a key provider’s decision to drop out of the state-run health exchange is competition in action.

Gov. Dayton either doesn’t understand free market capitalism or he’s doing his best to hide the fact that MNsure is a failure. The other possibility is that he’s hiding the fact that MNsure is a failure and he doesn’t understand free market capitalism.

PreferredOne’s decision was based on MNsure’s problems:

“PreferredOne Spokesman Steve Peterson tells Hauser this is “purely a business decision.” He says the company decided continuing to offer insurance through MNsure is “not administratively and financially sustainable going forward.”

“Our MNsure individual product membership is only a small percentage of the entire PreferredOne enrollment but is taking a significant amount of our resources to support administratively,” a company statement says.

Competition didn’t drive PreferredOne from the market. MNsure’s administrative requirements drove PreferredOne’s decision. PreferredOne’s decision was also driven by the fact that government regulations made it virtually impossible for them to make a profit. Why would a company volunteer to do tons of work and not get paid for that work?

Dayton says the company gained market share due to its low rates.

PreferredOne dropped out because it’s impossible to continue to offer those low rates. That means rates will increase this fall.

3 Responses to “Dayton: MNsure is competition in action”

  • walter hanson says:

    Hey Mark. Preferred one said the website was causing extra work. costing money which they didn’t have. Maybe when every buck counts if the website worked the way it was suppose to work they wouldn’t have to spend the money.

    Walter Hanson
    Minneapolis, MN

  • Rex Newman says:

    The Governor is correct. This is indeed competition in action. Competitors that cannot make money in a market do indeed drop out. And more the market is burdened (rigged?) with taxes and regulations, the more must drop out. Unless they’re subsidized, of course, which I think was the goal all along, make private insurance unworkable to create single payer by default.

  • Karen says:

    The issue is that Democrats DO believe companies should work for little or no profit for the common good. I’m sure if you discussed how the minimum wage issue is affecting Capitol Tavern, which he has an interest in, he would say his employees are much better off and he’s all warm and fuzzy about it. In a year or so he will get out of the business.

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