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South Country reports $21.1 million 2024 loss, urges state changes and watches KARMA bill
Summary
South Country Health Alliance officials told the Wabasha County Board on June 3 that the plan posted a $21.1 million net loss for 2024, booked an $11.4 million premium deficiency reserve for 2025 and is monitoring state policies and utilization trends that drove higher costs.
South Country Health Alliance officials updated the Wabasha County Board on the plan's 2024 finances, telling the board the insurer posted a $21.1 million net loss, booked an $11,422,000 premium deficiency reserve and is monitoring several state policy changes that drove higher costs.
Scott Sheffman, chief financial officer for South Country Health Alliance, told commissioners the plan recorded a net operating loss of $9.7 million in 2024 and established an $11.4 million premium deficiency reserve for contract year 2025. "Our loss ratio last year was 96.9 percent," Sheffman said, meaning about $0.97 of every premium dollar went to pay claims.
The reserve, Sheffman said, is an accounting step: if contracted premiums are inadequate to cover expected 2025 claims, a plan must book that shortfall in the prior year. "We will release one‑twelfth of that reserve each month in 2025 to offset expected losses," he said.
Why it matters: South Country…
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