Minnesota’s MNsure program, the state’s health insurance exchange, had a rough rollout last fall, and it’s having a rough first year.

This month PreferredOne, the insurance company in with the lowest rates and the most enrollees in MNsure, announced it is pulling out of the program. Preferred One is pulling out because of business reasons. It says the program is not financially and administratvely sustainable. Basically, it costs PreferredOne more than its worth to stay with the program.

Those who signed up with PreferredOne last year through MNsure for coverage in 2014 can still renew for next year, but they will not be eligible for the federal health insurance subsidies.

This is becoming a political issue in the state governor’s race. Gov. Mark Dayton has been the main cheerleader for the program, and his Republican challenger Jeff Johnson is tieing him to the program’s failures.

This is a serious hit for the MNsure program. If the companies that are participating can’t make money from their participation, they will pull out, and their customers will wind up paying more.

The state needs to get this problem fixed.