Rumors that Medica will cap premiums because of high profits

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Medica health plan is reportedly considering capping premiums for almost all of its health plan members. The StarTribune reports the company had a good financial year and wants to pass the good fortune on to consumers. A Medica spokesperson declined to discuss what options the company is considering. Medica and Attorney General Mike Hatch will hold a press conference tomorrow to discuss the company's finances. Last year, Medica split from Allina Hospitals and Clinics, after Hatch began investigating lavish company expenses. Medica officials told the paper they've instituted aggressive cost cuts. The company could be reaching the point where it has more in reserves than the non-profit is allowed under state law. Healthcare consultant Allan Baumgarten says he's not surprised Medica is so profitable:

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