As spending on medical claims continued to climb, Minnesota's largest insurance companies posted a combined annual operating profit of 0.57 percent, or $120 million, last year across public and private health plan options.
It was the smallest margin since 2008, according to financial data released Monday by the Minnesota Council of Health Plans.
Rising medical claims combined with stiffer competition among the plans helped keep overall profit margins slim, said Julie Brunner, executive director for the industry group.
"We hear stories about companies moving from one insurer to another for 1 or 2 percent — it's a very competitive market," Brunner said. "But we continue to see the cost of health care grow, which is of concern."
The report consolidates financial performance across seven nonprofit insurance companies — Blue Cross and Blue Shield of Minnesota, HealthPartners, UCare, Medica, Preferred One, Metropolitan Health Plan and Sanford Health Plan of Minnesota.
Costs rose by double digits for outpatient hospital care, emergency room visits, prescription drugs, and addiction and mental health treatment during the year, according to the report.
Insurers collected 5.8 percent more revenue in premiums, or $21 billion, while health care spending was up 7.4 percent, to $19 billion. On a per-person basis, the plans spent 5 percent more on care, compared to a nearly flat 0.4 percent rise during the previous year.
The data combines results across both private and public health plan offerings — including policies that cover individuals and businesses as well as managed care plans that cover Minnesotans enrolled in public programs, such as Medical Assistance and MinnesotaCare.