► Minuteman Health NewsroomJune 23, 2017

Minuteman Health, Inc. Management seeks to organize a new insurance company to begin writing business as of January 1, 2018; Minuteman Health, Inc. will stop writing business as of January 1

Boston, MA—Minuteman Health (www.minutemanhealth.org) management announced today that it is seeking to organize a new company, Minuteman Insurance Company, to begin writing business as of January 1, 2018. Minuteman Health, Inc., will stop writing business as of January 1. During this time period, member benefits and providers will be paid fully and current members will see no interruption in coverage. Management’s goal is to facilitate a smooth transition of members from the old entity, Minuteman Health, to the new entity, Minuteman Insurance.

Minuteman Health, Inc. (“MHI”) is an HMO authorized to do business in Massachusetts and New Hampshire. Since beginning operations in 2014 as a Consumer Operated and Oriented Plan (“COOP”) program of the Patient Protection and Affordable Care Act (“ACA”), its membership has grown to approximately 37,000 members. MHI partners with low cost, high quality providers in order to offer affordable health insurance plans to customers and businesses.

“Offering our members a quality, more affordable coverage option has been Minuteman’s mission from day one,” said Minuteman Health chief executive officer Tom Policelli. “We want to continue that mission in 2018 and beyond through the new company we are currently working to organize. Forming Minuteman Insurance Company will allow us to address numerous federal restrictions and work to make our coverage available to more people.”

While MHI’s loss experience on its business has been favorable, the negative impact of the ACA-imposed risk adjustment program has been substantial. Risk adjustment is the ACA program that was intended to shift money from health insurers which have healthier members to health insurers who have less healthy than average members. Unfortunately, the program has not worked as intended. It has been difficult for insurers to predict their risk adjustment obligations which has led some to withdraw from the ACA market. The program also unfairly penalizes issuers like MHI that are small, low cost, and experience high growth. The significant negative impact from risk adjustment has been the principal driver of a reduction in MHI’s surplus and capital over time. In addition, MHI is subject to certain COOP rules that limits MHI’s ability to adjust its business model to mitigate the impact of the dysfunctional risk adjustment program.

With the most recent risk adjustment information provided by CMS on June 16, 2017, and after consultation with its insurance regulators in Massachusetts and New Hampshire, MHI has announced that it will stop writing business as of January 1, 2018. While MHI will not be writing insurance as of January 1, 2018, its existing policies will remain in effect for the rest of this year and claims under those policies will continue to be paid without interruption.

MHI’s senior leadership is actively seeking to organize a new Massachusetts health insurer to begin operations on January 1, 2018 in Massachusetts and New Hampshire. The new entity would not be subject to COOP rules, and therefore can take affirmative steps to mitigate the impact of the risk adjustment program. The new entity has filed license applications in both states and efforts to secure the capital needed are far advanced. The goal of the new company is provide the same affordable coverage by working with the same select network of providers. Leadership hopes to fully organize the new insurer in the coming months so that it can offer insurance coverage as of January 1, 2018 and to provide continuity of coverage for current Minuteman Health members. 

About Minuteman

Minuteman Health, Inc. is a health maintenance organization (HMO) committed to providing high-quality care, cutting administrative costs and reducing premiums for individuals and employers in Massachusetts and New Hampshire.

Minuteman Health’s In-Plan Provider Network offers high-quality care at lower costs and currently includes over 11,700 In-Plan Physicians, Hospitals, Community Health Centers, Urgent Care Facilities, Behavioral Health providers, Walk-In Health Care Clinics and other health care providers practicing at over 21,500 locations throughout New Hampshire and Massachusetts. Updates on Minuteman Health’s growing provider network can be found at www.minutemanhealth.org.

Minuteman is marketed in Massachusetts through its website, brokers, Health Services Administrators (www.HSAinsurance.com) and the Massachusetts Health Connector. It is marketing in New Hampshire through its website, brokers, and the Federal Healthcare Exchange.


Media Contact:

Jim Borghesani


Lisa McTighe
Director of Marketing and Communications