Minnesota Gets First New HMO Since 1988

ST. PAUL, Minn. (AP) — A new health maintenance organization has been authorized to operate in Minnesota for the first time in 14 years.

Gundersen Lutheran Health Plan, Inc., of Onalaska, Wis., plans to operate in four southeastern Minnesota counties — Fillmore, Houston, Olmsted and Winona.

Gundersen will be the ninth HMOoperating in Minnesota, which only allows nonprofit or governmental HMOs.

Gundersen’s HMOstarted in 1995 as a way for the company to finance its employees’ health care. It was expanded to provide benefit plans for other area businesses and now has more than 90,000 members. It also does business in Wisconsin and Iowa.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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