ST. PAUL, Minn. (AP) - The insurance company with the lowest rates and most customers on Minnesota's health care exchange has told state officials that it's pulling out of MNsure.

The decision by Golden Valley-based PreferredOne deals a major blow to the exchange as the next open enrollment period approaches. It likely means higher rates for consumers next year and could have repercussions in the governor's race.

A joint statement by MNsure CEO Scott Leitz and PreferredOne CEO Marcus Merz says they'll work closely to minimize the impact to current enrollees.

PreferredOne had 59 percent of the individual market for MNsure enrollees as of Aug. 6.

PreferredOne spokesman Steve Peterson told the station that continuing to offer insurance through MNsure is "not administratively and financially sustainable."