Minneapolis-based Medica says it will offer in-network access to the Mayo Clinic in Rochester and its system of clinics beginning July 1 for new enrollees in 22 southern Minnesota counties.
In-network coverage will be available to people who buy individual or family health insurance policies. Medica members who have group-sponsored coverage already have in-network access to Mayo physicians and services.
The agreement sets a new standard in health insurance because it pays for value, said Dr. John Noseworthy, president and CEO of Mayo Clinic.
"Under the arrangement, Mayo will be paid based on how well it manages the population's health from a clinical quality perspective as well as the overall cost of care," Noseworthy said. "It is an incentive-based form of payment."
Medica says details of the financial agreement with Mayo won't be released because they are considered proprietary.
But Medica Vice President Dannette Coleman said there won't be an additional premium to access Mayo.
"That's the goal: to provide the most affordable, competitively priced product for our customers and for the patients of the Mayo Clinic and the Mayo Clinic Health System," Coleman said.