Created: 04/27/2014 2:10 PM KAALtv.com
PreferredOne grabs big share of Minnesota market
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ST. PAUL, Minn. (AP) - A Minnesota health insurance company didn't expect to offer some of the nation's lowest premiums - it just turned out that way for PreferredOne.
CEO Marcus Merz says they were as surprised as anyone.
PreferredOne had been a small player in Minnesota's market for individuals who buy health insurance without help from their employers. So Merz says the Golden Valley-based company figured it had to offer competitive prices.
The strategy seems to be working on Minnesota's online health care marketplace. PreferredOne has about 59 percent of the MNsure market, while Blue Cross and Blue Shield has about 24 percent.
PreferredOne's "Select" network allows consumers to save about 10 percent on their premiums because it steers them to a limited number of doctors and hospitals.