Brian Thompson, the chief executive officer of UnitedHealthcare, was fatally shot this morning in what appears to be a targeted attack in Midtown Manhattan. The incident took place just after 6:45 a.m. outside the New York Hilton Midtown, where the company was holding its annual investor conference. Police reports and statements from sources close to the investigation confirm the 50-year-old executive was shot in the chest at close range. Thompson was taken to Mount Sinai West in critical condition but did not survive his injuries.

A Targeted Attack During an Investor Event

The fatal shooting occurred at 1335 Sixth Avenue, just outside the entrance to the New York Hilton Midtown, which was hosting UnitedHealthcare's annual investor meeting. According to individuals familiar with the investigation, Thompson had arrived early to prepare for the event. The gunman, who appeared to have prior knowledge of Thompson's movements, shot him from close range before fleeing the scene. Eyewitness reports indicate the attacker escaped eastward on foot along Sixth Avenue before jumping onto a bicycle to continue his escape. Authorities have described the suspect as wearing a cream-colored jacket, a black face mask, and a gray backpack. A manhunt is currently underway as police officers canvass the area for leads.

Brian Thompson's Leadership at UnitedHealthcare

Brian Thompson was promoted to chief executive of UnitedHealthcare in April 2021, taking the reins of one of the nation’s largest health insurance providers. As the head of UnitedHealthcare, he led one unit of the larger UnitedHealth Group, a healthcare giant that touches millions of lives across the country. Thompson resided in Minnesota, but frequently traveled to New York City for company business. This targeted attack raises concerns about the safety of corporate executives, especially during high-profile events like investor conferences. Investigators are working to understand the motive behind this attack as they continue their search for the suspect.

American International Group, Inc. (AIG) has completed the sale of its global personal travel insurance and assistance business, including the Travel Guard® brand, to Zurich Insurance Group. The transaction was finalized on December 2, 2024, following the signing of the definitive agreement in June.

Key Details of the Sale

• Exclusions: The deal does not include AIG’s operations in Japan, its joint venture arrangement in India, or travel coverages provided through its Group Accident & Health business.
• Advisors: Evercore Group L.L.C. acted as AIG’s financial advisor, while Willkie Farr & Gallagher LLP and Norton Rose Fulbright LLP provided legal counsel.

About Travel Guard® Travel Guard®, a well-known personal travel insurance and assistance brand, has been a part of AIG’s portfolio for years, offering comprehensive coverage and assistance services to travelers worldwide. The sale aligns with AIG’s strategic focus on other core insurance operations. About AIG American International Group, Inc. (NYSE: AIG) is a leading global insurance organization providing solutions in approximately 190 countries and jurisdictions. AIG specializes in helping businesses and individuals protect assets and manage risks. For more details about AIG and its products, visit www.aig.com. This transaction marks a significant shift in AIG’s portfolio, as Zurich Insurance Group expands its reach in the personal travel insurance market.

Minnesota has enacted a new law requiring public agencies and their contractors to report cybersecurity incidents to state IT officials. This measure, which went into effect on December 1, 2024, aims to enhance the state’s preparedness and response to growing cyber threats.

Who Must Comply?

The law applies to a broad range of entities, including:

• Public agencies at the state, county, city, and township levels
• School districts, charter schools, intermediate districts, and cooperative units
• Public post-secondary institutions
• Government contractors and vendors

These organizations must use a standardized reporting form, available since September 30, 2024, to submit incidents to Minnesota IT Services (MNIT).

Using Data to Prevent Future Attacks

MNIT and the Minnesota Bureau of Criminal Apprehension will analyze the collected data to identify trends and common vulnerabilities. These insights will help the state anticipate and prevent future cybersecurity incidents. Eric Simmons, Director of Technology at Stillwater Area Public Schools, highlighted the importance of the new mandate, stating:

"Schools are prime attack targets, yet many lack the resources to respond effectively. Minnesota's cybersecurity incident reporting law highlights the critical collaboration between MNIT and school districts to combat growing cyber threats."

A Part of Minnesota’s Broader Cybersecurity Efforts

This law builds on Minnesota’s first-ever statewide cybersecurity plan, introduced in 2023 with nearly $24 million in state and federal funding. The plan aimed to strengthen the cyber defenses of more than 3,000 government entities across the state. MNIT has committed to providing ongoing updates and guidance to ensure compliance with the reporting requirements, furthering its mission to safeguard Minnesota’s digital infrastructure. For more information and access to the reporting form, visit Minnesota IT Services.

The Insurance Institute for Business & Home Safety (IBHS) has released its updated 2025 FORTIFIED resilient construction standards, designed to strengthen homes, commercial buildings, and multifamily properties against severe weather events. These standards, which first launched in 2010, integrate the latest building science and aim to mitigate storm damage across the U.S.

Key Updates in the 2025 FORTIFIED Standards

1. Standardized Reroofing Requirements Across Markets
   • Requirements for FORTIFIED Roof™ designations in inland areas now align with hurricane-prone regions.
   • Roof decks must adopt tighter nailing patterns.
   • Roof-mounted vents must meet testing standards to prevent wind-driven rain intrusion.
2. Enhanced Shingle Performance for Hail Resistance
   • Steep-roofed structures using asphalt shingles must select shingles rated as “Excellent” or “Good” on IBHS Impact-Resistant Shingle Performance Ratings to qualify for the hail supplement of a FORTIFIED designation.
   • Previous standards allowed asphalt shingles with a UL 2218 Class 4 impact rating, but the new protocols use manufactured hail for more realistic testing.
3. Certified Contractors for Roofing Projects
   • Roof installations must be performed by certified FORTIFIED roofing contractors to comply with the new standards.

Integration of Latest Building Science

The updates also incorporate changes from the American Society of Civil Engineers’ (ASCE) ASCE 7 standards, which set minimum design load requirements for buildings. Clarifications and amendments from FORTIFIED technical bulletins released since the last update have been integrated. Chuck Miccolis, Managing Director of Commercial Lines at IBHS, emphasized the importance of adopting cutting-edge research in the standards, stating, “Staying on the leading edge and making the best mitigation strategies available to property owners and contractors across the country is key to our mission to reduce avoidable losses caused by severe weather.”

Transition Timeline for Compliance

• FORTIFIED Home™: Contractors can begin implementing new requirements on January 1, 2025. Compliance becomes mandatory by November 1, 2025.
• FORTIFIED Commercial™ and FORTIFIED Multifamily™: Projects with applications dated after January 1, 2025, must meet the updated standards.

Nationwide Adoption and Impact

As of November 2024, approximately 70,000 properties in 31 states have adopted FORTIFIED standards, including 15,000 structures built or reroofed this year. These resilient construction measures are part of a broader effort to reduce financial losses from the increasing number of severe weather events in the U.S., which have already caused over 24 billion-dollar disasters in 2024 alone. For more details on the updated FORTIFIED standards, visit IBHS.org.

According to the 2024 Annual Retirement Study from Allianz Life Insurance Company of North America (Allianz Life), a significant number of Americans are grappling with debt that may hinder their retirement savings and overall financial stability.

Key findings reveal that 55% of Americans are actively working toward paying off debt to meet their long-term financial goals. This trend is particularly pronounced among Gen X, with 64% stating that paying off debt is a current priority, compared to 54% of millennials and boomers. Debt is a notable barrier to retirement savings, especially for those who wish they could save more. Among these individuals, 46% cite non-housing debt such as car loans, credit cards, and student loans as significant obstacles. Millennials are most affected, with 56% indicating that such debts limit their retirement savings, compared to 50% of Gen Xers and 35% of boomers. Housing debt is also a considerable challenge, with 34% of respondents stating that it prevents them from saving adequately for retirement. Gen Xers are most affected by housing debt, followed by millennials and boomers. The study also highlights the challenges of juggling multiple financial priorities. Nearly two-thirds of Americans (62%) say they are balancing too many financial goals, including saving for retirement, paying off debt, and saving for their children’s education. Millennials are especially overwhelmed, with 73% reporting difficulties in prioritizing these goals. Additionally, 40% of Americans worry that their current debt will negatively impact their future quality of life, a concern that is most prevalent among millennials (53%). Hispanic Americans (53%) are also more likely to express this worry compared to other demographic groups. Despite these widespread concerns, only 14% of Americans have discussed their debt worries with a financial professional. Allianz Life encourages individuals to create a written plan with the help of a financial professional to effectively balance debt management and long-term savings. About Allianz Life Insurance Company of North America Allianz Life Insurance Company of North America has been providing trusted financial solutions since 1896, helping millions of Americans prepare for retirement. As part of Allianz SE, a global leader in financial services, Allianz Life is dedicated to helping clients navigate financial uncertainties with innovative risk management products and personalized financial planning support.

AM Best has adjusted its 2025 outlook for the U.S. personal lines insurance segment from negative to stable, citing significant improvements in rate and pricing conditions, particularly in the auto insurance market. The change in outlook reflects better risk-adjusted capitalization among carriers, signaling a positive shift for an industry that has faced considerable headwinds in recent years. The stable outlook stems largely from the "large rate increases achieved over the last two years," according to AM Best Director Christopher Draghi. These rate hikes have helped insurers stabilize and even improve their financial footing, particularly in the personal auto sector, which had previously been under intense pressure. Improved pricing conditions have also been facilitated by more accommodating treatment from regulators, which has allowed insurers to respond more flexibly to rising costs and other economic challenges.

Positive Trends but Challenges Remain

In addition to pricing improvements, other encouraging signs include rising investment yields and the accelerated adoption of technology across the industry. As carriers modernize their operations, they are better positioned to enhance efficiency, manage risks, and adapt to an increasingly digital marketplace. However, the sector's recovery has not come without challenges. The homeowners’ line of business continues to experience significant volatility, driven by ongoing severe weather events and increased costs associated with property repairs and reinsurance. Inflation remains a persistent threat, driving up costs for labor, repair parts, and medical expenses, all of which have pressured insurers' bottom lines. Moreover, newer vehicles equipped with advanced technology come with higher replacement and repair costs, further contributing to loss severity. Reinsurance costs have also surged, accompanied by tightened terms and conditions, making it harder for some companies to maintain the same level of protection.

COVID-19 Aftermath: A Prolonged Impact

The lingering impact of the COVID-19 pandemic continues to cast a shadow over the personal lines segment. Initially, the pandemic led to a reduction in claims frequency, but subsequent disruptions—from inflation to supply chain challenges—have sharply increased loss costs. This period also saw a rise in fatalities and severe injuries, as well as increased jury awards in litigated claims, adding further strain to the balance sheets of personal lines carriers. "Carriers recognized the need to respond by aggressively pushing for higher rates to better account for these more volatile trends," Draghi added. Many insurers faced ratings downgrades, and several were forced to reassess their risk management and capitalization strategies amid mounting losses and changing reinsurance protections.

Outlook for 2025

Despite the numerous obstacles faced by U.S. personal lines insurers in recent years, the segment overall has retained solid risk-adjusted capitalization. While some carriers experienced a significant erosion of their capital cushions due to ongoing operating losses, elevated reserves, and adjustments in reinsurance programs, the industry has demonstrated resilience. As the market enters 2025, the stable outlook from AM Best serves as a reminder of the industry's adaptive capacity. Personal lines insurers are expected to remain vigilant, leveraging technological advancements and a more favorable regulatory environment to continue navigating the complex risk landscape. Still, industry participants must contend with elevated loss cost severity, weather volatility, and changing reinsurance dynamics as they look to maintain financial stability in the coming year.

Liberty Mutual Insurance today announced that Marc Orloff has been named President of Global Risk Solutions (GRS) North America, effective Jan. 1, 2025. Reporting to GRS President Neeti Bhalla Johnson, Orloff will be accountable for delivering GRS North America's financial and operational performance, which includes commercial and specialty businesses in the U.S., Canada and Bermuda and operates across Major Accounts, Middle Market and Specialty segments.

Orloff's appointment follows the announcement that Kevin Smith, currently President, Global Risk Solutions North America, has made the decision to formally retire at the end of 2024. Smith, a seasoned executive with nearly 35 years of experience across property, casualty and specialty insurance, will continue to serve GRS in an active advisory role. He will continue to report to Bhalla Johnson and remain engaged with key clients and broker partners. "It's an exciting time in GRS as we continue to leverage our full global capabilities to solve our brokers' and clients' complex risk needs. Both Marc and Kevin are tremendous leaders with deep underwriting experience, meaningful relationships with key brokers and clients, and unique insights across our North America business segments," said Bhalla Johnson. "Kevin has been instrumental in shaping and growing our North America business, and I look forward to our ongoing collaboration in his new advisory role. I am also fully confident that Marc will build on the foundation of our differentiated North America strategy as we create the (re)insurer of the future." Orloff is currently President, GRS North America, Middle Market. In this role, he is responsible for establishing a differentiated strategy and for profitably growing the franchise in targeted industries by enabling the products, services and solutions that our clients demand. He joined Liberty Mutual in 2011 and held various leadership roles of increasing responsibility in underwriting and distribution for GRS, including President, North America Field Operations, Client and Marketing, and Senior Vice President and General Manager for the Northeast region in the GRS Major Accounts group. Before joining the company, Orloff spent 10 years at Travelers Insurance in underwriting, distribution, finance and operations positions. Orloff holds a Master of Business Administration from Boston University's Questrom School of Business and a Bachelor of Arts in business administration, finance and economics from the University of Hartford. He is also a Board member of the Insurance Industry Charitable Foundation, which provides grants and volunteer opportunities across a variety of communities. "I'm incredibly pleased with the progress we've made in North America and grateful to Kevin for his ongoing leadership and counsel," said Orloff. "Looking ahead, my priority will be to continue our underwriting-led culture, focusing on intentionally shaping our portfolio, driving specialization across the markets we choose to compete in, and leaning into the depth and breadth of our expertise to seamlessly enable products for our broker and client partners." Smith started at Liberty Mutual in 2022, delivering significant improvements in GRS North America's financial and operational performance. Prior to this, Smith was President and Chief Operating Officer of CNA Insurance's specialty business, and held multiple leadership roles in underwriting, marketing and field operations at Chubb North America. "Since joining Liberty Mutual, I've been impressed by the strength of our organization and underwriting talent, who are committed to capitalizing on the extensive capabilities we've developed and delivering for our brokers and clients," said Smith. "I'm extremely confident Marc and the dedicated North America team will drive our business forward and capture the opportunity ahead of us." Dieter Korte, currently Chief Underwriting Officer, GRS North America, Middle Market, will take on the additional responsibility of interim President, GRS North America, Middle Market, as Orloff begins his new role. About Liberty Mutual Insurance At Liberty Mutual, we believe progress happens when people feel secure. By providing protection for the unexpected and delivering it with care, we help people and businesses embrace today and confidently pursue tomorrow.

Insurity, a leader in cloud-based software solutions for insurance carriers, brokers, and MGAs, hosted its largest-ever "Excellence in Insurance" conference, bringing together over 100 insurance organizations and industry analysts to explore emerging trends and strategies shaping the future of the property and casualty (P&C) insurance market. Held in Amelia Island, Florida, the four-day event provided attendees with actionable insights and practical tools to navigate the evolving insurance landscape.

Focusing on Innovation and Growth

Conference sessions centered on key areas such as optimizing total cost of ownership, maximizing returns on technology investments, and accelerating value delivery. Attendees gained firsthand insights from industry experts and tech professionals, equipping them with innovative approaches to meet the challenges of a rapidly shifting insurance environment. Insurity’s role as a trusted partner was underscored through product showcases and expert-led discussions.

Keynotes and Thought Leadership

Mainstage keynotes highlighted transformative leadership and cutting-edge solutions. Gray Nester, CIO of Brown & Brown, emphasized the importance of culture in driving growth, while Ryan Clissa of Glia demonstrated how AI-powered platforms enhance customer engagement. A CEO panel discussed strategies for adapting to new regulations, leveraging emerging technologies, and addressing changing customer needs to ensure success in 2025 and beyond.

Celebrating Excellence

The conference spotlighted success stories during its Excellence in Insurance awards, honoring seven standout organizations for their innovation and market leadership: Arch Insurance, Marsh, Amerisure, Across America Insurance Services, FHM & LUBA Workers’ Comp, American Equine Insurance Group, and High-Definition Vehicle Insurance. Award recipients shared strategies and insights, providing valuable takeaways for attendees.

Looking Ahead

Chris Lafond, CEO of Insurity, reflected on the conference’s success, noting, “With more than 500 customers, Insurity has a unique perspective on how the industry is evolving. This event deepens our understanding of what leading organizations are doing differently and why.” Lafond reaffirmed Insurity’s commitment to delivering transformative solutions to empower customers and drive innovation in the P&C insurance space. For more information on the Excellence in Insurance conference, contact Elizabeth.Hutchinson@insurity.com or visit Insurity’s website.

The National Flood Insurance Program (NFIP) is facing mounting pressure as debt climbs to $20.5 billion, premiums soar, and participation drops. In Louisiana, where floods frequently wreak havoc, homeowners and businesses are grappling with unaffordable premiums, leading many to abandon coverage. This trend is raising concerns about the future of flood insurance in the state and nationwide.

The Role of Risk Rating 2.0

The Federal Emergency Management Agency’s (FEMA) Risk Rating 2.0, introduced in 2021, aims to align flood insurance premiums with actual risks. While the program lowered costs for some, others in high-risk flood zones have seen premiums skyrocket. In Louisiana, premiums have risen by an average of 234% in the past three years, according to a report by U.S. Sen. Bill Cassidy (R-Baton Rouge). The increases have driven 52,000 policyholders in the state to cancel their policies, further straining the NFIP.

Calls for Reform

Lawmakers are debating how to address the affordability and sustainability of flood insurance. Sen. Cassidy has called for reforms to FEMA’s pricing methodology to balance affordability with accurate risk assessment. His proposal, expected in January, seeks to make flood insurance more accessible while maintaining the program’s financial viability. Some, like U.S. Sen. John Kennedy (R-Madisonville), support creating a national catastrophe fund to expand coverage beyond floods to include wildfires, earthquakes, and other disasters. By pooling a larger number of policyholders, proponents believe this approach could stabilize premiums. However, critics argue such a program could replicate NFIP’s financial challenges.

Privatization and Market-Based Solutions

Advocates of privatization, including the conservative Cato Institute, argue that transitioning flood insurance to the private market could improve efficiency and better reflect the true costs of ownership. They propose targeted subsidies for low-income homeowners to prevent undue financial burden while eliminating the broader inefficiencies of government-managed insurance. The Heritage Foundation’s Project 2025 also suggests phasing out NFIP in favor of private insurers, a stance echoed by some in President-elect Donald Trump’s incoming administration. However, prominent Louisiana lawmakers, including House Majority Leader Steve Scalise, have rejected the idea of eliminating the federal program, emphasizing its critical role for storm recovery.

Broader Implications for Disaster Coverage

There is growing interest in an “all-hazards insurance” model, which would consolidate disaster coverage for floods, fires, and other events. While the approach has garnered support from some policymakers and financial institutions, it faces resistance from trade groups concerned about replicating NFIP’s shortcomings on a larger scale. Former U.S. Sen. Mary Landrieu (D-New Orleans) has championed the idea, pointing to federal subsidies for farmers as a model for supporting affordable disaster insurance for homeowners. However, critics argue that government subsidies distort the market and fail to address systemic inefficiencies.

Urgent Need for Action

The flood insurance crisis in Louisiana underscores a broader national challenge: balancing affordability, sustainability, and risk management in disaster recovery programs. As Congress debates NFIP’s future, the stakes are high for Louisiana residents and millions of Americans who depend on affordable flood insurance to rebuild after disasters. With the December 20 deadline for NFIP reauthorization fast approaching, the debate continues over whether reforms, privatization, or a new approach entirely will shape the future of flood insurance.

The U.S. Supreme Court is poised to make a pivotal decision in the Nvidia Corp. v. Ohman securities class action case. The ruling could influence how securities plaintiffs meet heightened pleading standards and affect the directors and officers (D&O) liability insurance market, according to industry experts.

Background of the Case

The case stems from allegations against Nvidia Corp., a technology firm based in Santa Clara, California. Plaintiffs accuse the company and its executives of misrepresenting revenue attribution for a product, alleging it was driven by cryptocurrency miners rather than video gamers. In August 2023, the 9th U.S. Circuit Court of Appeals partially reversed a lower court’s dismissal, concluding that plaintiffs sufficiently alleged Nvidia CEO Jensen Huang acted with scienter, or intent to deceive, using testimony from confidential former employees and an expert consulting firm’s findings. Nvidia sought review from the Supreme Court, which agreed to hear the case in June. Oral arguments took place on November 13, 2023, with justices considering whether the case raises broader legal questions or serves as an error correction for the appeals court ruling.

Potential Implications for Pleading Standards

At issue is whether expert testimony can satisfy the Private Securities Litigation Reform Act of 1995’s (PSLRA) heightened pleading requirements. Experts believe the ruling could shape how courts handle motions to dismiss in securities cases. “Stronger pleading standards could lead to more dismissals at early stages, reducing litigation costs and potentially improving D&O insurance pricing,” said Geoffrey B. Fehling, a partner at Hunton Andrews Kurth LLP. Conversely, less stringent standards may result in more cases proceeding to discovery, raising defense and settlement costs.

Impact on D&O Insurance Market

Insurers are closely watching the case, as its outcome could influence how quickly companies exhaust self-insured retention limits and tap into D&O policies. According to Maurice Pesso of Kennedys Law LLP, “If a case bypasses dismissal, defense costs and settlements can erode or fully deplete a D&O insurance program.” Walker Newell of Woodruff Sawyer & Co. noted that the ruling’s long-term effects on the D&O market will depend on whether it changes barriers to discovery in securities class actions. “Fewer settlements resulting from higher pleading standards could eventually decrease claims frequency and improve market stability,” he said.

Awaiting the Court’s Decision

While some experts predict minimal immediate impact on the D&O market, any shift in pleading standards could have ripple effects over time. The Court’s ruling, expected in the coming months, is being closely monitored by insurers, policyholders, and legal professionals alike.

ReSource Pro, a leading strategic operations partner to insurance organizations, released a new insurance industry report on the impact of AI in the P&C insurance space. Based on insights curated from their community of over 1800+ insurance industry clients, The State of AI in P&C Insurance report examines the role of AI in retail, MGA/ wholesale and carrier markets and explores real ways that those organizations can optimize their business to capture the productivity and innovation promise of AI technology.

“Our research finds that AI is becoming increasingly integrated with other automation and decision-augmenting technologies,” noted ReSource Pro Senior Partner Mark Breading. “For insurance leaders, the time to act is now. Companies need to strengthen their digital, data ,and operational foundations while developing strategies, experimenting with AI, and exploring their business specific use cases.  Taking proactive steps to adopt and integrate AI is essential to staying competitive and helping customers manage tomorrow’s risks.”

Key findings from the report include:

• AI maturity differs across insurance, with carriers at the forefront; however, some MGAs are using AI for differentiation, and most retailers are in the early stages of exploration.
• The insurance industry will continue to shift away from one-size-fits-all coverages in favor of more customized solutions driven by artificial intelligence.
• The future of the P&C insurance industry will be shaped by the successful intersection of artificial intelligence and human expertise. Other technologies remain poised to amplify opportunities to innovate, including Internet of Things (IoT), embedded insurance, and blockchain.
• Effective AI adoption requires strong governance strategies, with a focus on regulatory compliance, data bias, and model oversight to ensure fairness and transparency.

“To take advantage of AI, you need a strong foundation and can’t lose sight of the details,” said Dan Epstein, CEO of ReSource Pro. “By doing the hard work of integrating systems, standardizing workflows, mandating data hygiene and modernizing operations, our insurance clients are well positioned to optimize AI in their end-to-end workflows where it makes the most sense.  We’re proud to support them with this complexity, so that they can turn AI into a practical tool to enhance their core expertise, their end customer experience, and drive bottom line results with near-and-long-term productivity gains."

To view the full report, visit:  https://www.resourcepro.com/ai-in-insurance/

About ReSource Pro

Focused exclusively on the insurance industry, ReSource Pro is a trusted strategic operations partner to insurance organizations seeking to increase their productivity and profitability. With a global team of more than 10,000 employees, ReSource Pro operates at the critical intersection of people, process, technology and data to serve more than 1,800 clients across the carrier, broker, wholesale and MGA segments – consistently earning a +96% client retention rate for over a decade. It offers expert advisory services, proven business process management optimization and transformative data and technology solutions. For the 15^th time since 2009, the company was recognized in 2024 by Inc. 5000 as one of the fastest growing companies in the US.

The Medicare open enrollment period for 2025 ends on December 7, and Minnesota seniors enrolled in Medicare Advantage plans are facing significant disruptions to their healthcare options. Minnesota Attorney General Keith Ellison has issued a warning that several major healthcare providers across the state will no longer accept certain Medicare Advantage plans, impacting around 60,000 of the 600,000 Minnesotans currently enrolled in these plans. "Around 600,000 Minnesotans rely on these Advantage plans, but this year, a few health care provider networks in Minnesota have opted not to participate any longer," Ellison said in a recent press conference. "This means that Medicare Advantage plan enrollees will see much higher out-of-pocket costs for services at these providers or, even worse, their services at those providers won't be covered at all." Medicare Advantage plans are popular for providing additional benefits beyond traditional Medicare, often offering dental, vision, and wellness perks. However, these plans are managed by private insurers, meaning they can sometimes restrict provider choice, and the recent changes highlight the ongoing tension between providers and insurers over reimbursement rates and service coverage.

Major Providers Dropping Coverage

Starting January 1, 2025, several major health systems will no longer be in-network for specific Medicare Advantage plans. According to the Minnesota Attorney General's office, Medicare Advantage plans through Humana will no longer be accepted at Allina Health, Avera, Essentia Health System, M Health Fairview, North Memorial, and Sanford Health. In addition, M Health Fairview will not accept Medicare Advantage plans from Aetna, and Mayo Clinic will not accept Medicare Advantage plans through HealthPartners. Allina Health released a statement clarifying that the change does not affect Humana's pharmacy plans or group retiree plans. "We negotiated in good faith with Humana over the past several months to remain a participating provider in their Medicare Advantage network. Unfortunately, Humana was unwilling to agree on a new, fair contract," the statement reads. Allina emphasized that they are proactively communicating with patients to help them understand their options and maintain access to care.

Reasons for the Changes

The Attorney General's office indicated that the reasons behind these decisions vary but primarily involve issues around reimbursement and coverage. Providers have cited insufficient reimbursements that do not cover the cost of care and delays in payments. Additionally, there are concerns that some plans are denying coverage for necessary medical services. These challenges have led many healthcare networks to reconsider their participation.

Impact on Seniors and Enrollment Trends

The fallout from these changes could be dramatic. Kelli Jo Greiner, Senior LinkAge Line Medicare product manager, expects that enrollment patterns will shift significantly. "Many people have established relationships with their providers over years and will not want to leave said provider," Greiner noted. As a result, it is likely that seniors will opt to change their Medicare Advantage plans in order to stay within the networks of their preferred healthcare providers. "I think what we are going to see is an increase in certain Medicare Advantage plans and a decrease in others as a result of this provider network problem."

Encouragement for Families to Discuss Options

With the Medicare open enrollment period closing on December 7, Ellison is urging families to have discussions about their healthcare coverage options during Thanksgiving gatherings. "There will be changes, and these things should be discussed with family," he emphasized. State officials recommend using the Medicare Plan Finder tool to explore alternative plans and determine what coverage will work best moving forward.

What Seniors Should Do Next

Affected Medicare Advantage enrollees are advised to research and evaluate their options ahead of the December 7 deadline. The changes may require switching to a different Medicare Advantage plan that remains accepted by their healthcare providers or considering original Medicare paired with a supplemental Medigap policy for broader provider access. Minnesotans who are unsure of their options can contact the Senior LinkAge Line or visit their healthcare provider’s website for updated information on which plans will be accepted in 2025. Attorney General Ellison’s office has also made resources available to help seniors navigate this complex situation and make informed decisions about their health insurance for the coming year.