Health Tradition Health Plan executives announced Thursday they are in the process of discontinuing their business lines within the next two years.
Earlier, Health Tradition said it was exiting the Marketplace Exchange on healthcare.gov for individuals and small business effective at the end of the year. It is also leaving the Medicaid market in Wisconsin (BadgerCare) along with state employee and local group plans effective December 31.
For businesses, a statement from Health Tradition said member services would continue into 2019 to resolve any claims or outstanding issues.
In all, Health Tradition said some 30,000 members are affected by the decisions. Thirty employees with Health Tradition will also lose their jobs, although some may transfer to other positions within Mayo.
“We did not make this decision lightly,” said Joe Kruse, Regional Chair Administration for Mayo Clinic Health System, Southwest Wisconsin Region, said in the statement. “While Health Tradition has been a successful plan for many years, it is a very small plan by industry standards. With the uncertainty and volatility within the health care and insurance environment, after careful deliberation we determined that the business model is no longer sustainable.”
Mayo is working with other insurance carriers to assist Health Tradition members: