Fallon Health to exit commercial insurance business, stick to government

Massachusetts insurer Fallon Health is backing away from the commercial insurance business.

The nonprofit health insurer will instead focus solely on government plans, according to a March 31 news release. The change will take place April 1.

Fallon will narrow its strategy to offerings like Medicare Advantage and MassHealth Medicaid services, a change that has been years in the making. From 2017 to 2020, Fallon's government membership grew from 31 percent to 57 percent of its total membership. Most of Fallon's revenue — 84 percent — comes from government programs.

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